NORSTAR TO BUY SULLIVAN CO. BANK.(Business)

Byline: John L. Klucina Business writer

Norstar Bancorp, the Albany- based $11.1 billion financial services company, announced Tuesday that it has reached a tentative agreement to buy United National Bank of Callicoon, Sullivan County, for about $20 million.

United, with about $90 million in assets, has branches in Callicoon, Liberty, Monticello, Wurtsburo, Narrowsburg and Sparrowbush, also in Sullivan County. The United operation would become part of the Norstar Bank of the Hudson Valley, which is based in Newburgh.

The agreement calls for Norstar to acquire about 202,000 shares of United's common stock through an exchange of three shares of …