NORSTAR &lt;NOR> TO BUY CALLICOON BANK

  Norstar Bancorp said it reached an
  agreement in principle to buy United National Bank of Callicoon
  through a stock exchange valued at 20 mln dlrs.
      Under terms of the agreement, Norstar would buy all 201,660
  shares of United's common stock at a rate of three Norstar
  shares for each United share.
      With year-end assets of 90 mln dlrs, United has branches
  six upstate New York cities, all of which will become part of
  Norstar Bank of the Hudson Valley, N.A.
      Norstar is an 11.1 billion dlr multibank financial services
  company.
  

