Sterling Bancshares of Houston said it would buy Humble National Bank for about $12 million in stock.

The deal would give Sterling its first presence in the town of Humble, a suburb of Houston.

"The acquisition geographically extends our franchise into an important segment of the Houston market," said George Martinez, chairman of $1.1 billion-asset Sterling. "We intend to establish a significant penetration in this market."

Mr. Martinez said he intends to keep Humble National's employees after completion of the deal, expected in the second quarter.

"We are committed to local decision-making and personal service while providing customers with a broader array of products and services," he said.

The $54 million-asset Humble National has one branch. Sterling operates 16 in the Houston metropolitan area.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.