Mason-Dixon Bancshares, Westminster, Md., has a deal to buy Sterling Bancorp for $10.3 million in cash. The deal, to be accounted for as a pooling of interests, is valued at 1.46 times Sterling's book value.
Sterling, based in Baltimore, is the $70 million-asset parent of Sterling Bank and Trust Co. Terms of the acquisition call for two of Sterling's four branches to become offices of Mason-Dixon's Bank of Maryland subsidiary. The two other Sterling branches are to be consolidated into existing Bank of Maryland offices.
Mason-Dixon, with $1.1 billion of assets, is the parent of two banks with 19 branches in central Maryland.
The companies hope to close the deal by yearend.