Sterling Bancorp

Last updated
Sterling Bancorp
Type Public company
NYSE: STL
Industry Financial services
Founded1888;134 years ago (1888)
DefunctFebruary 1, 2022 (2022-02-01)
FateAcquired by Webster Bank
Headquarters Montebello, New York, U.S.
Key people
Richard L. O'Toole
(Chairman)
Jack Kopnisky
(President & CEO)
Total assets US$31.33 billion (December 31, 2018) [1]

Sterling Bancorp was a regional bank holding company. It merged into Webster Financial Corporation in February 2022; their principal subsidiaries, Sterling National Bank and Webster Bank, were also merged, in the process.

Contents

Prior to the Webster merger, Sterling National Bank provided a full range of banking and financial services to business owners, their families, and consumers, primarily in the greater New York metropolitan and Hudson Valley regions. Sterling Bancorp had assets of approximately $30 billion at October 2, 2017, following its acquisition of Astoria Financial Corp. [2] Headquartered in Montebello, New York, Sterling Bancorp's shares were traded on the New York Stock Exchange. [3]

History

The entity now known as Sterling was founded in 1888 under the name Provident Bank. It later became a subsidiary of Provident New York Bancorp. [4]

On August 10, 2012, the company acquired Gotham Bank of New York, which enabled the company to expand into the New York City marketplace. [5]

On October 31, 2013, the company acquired Sterling Bancorp through a merger. Provident changed its legal name to Sterling Bancorp and the name of its principal banking subsidiary to Sterling National Bank. [6] The merger was intended to create a larger, more diversified company with a broader range of products and services for small-to-middle market commercial clients and consumers. [7]

On June 30, 2015, Sterling completed the acquisition of Hudson Valley Holding Corp., which further expanded its presence in the greater New York Metropolitan region. [7]

The company also made smaller acquisitions to add specialized products and services, most recently including Damian Services Corp., a payroll financing business (acquired March 2, 2015), [8] and a factoring portfolio from First Capital Corp. (acquired May 18, 2015). [9]

Its acquisition of Astoria Bank closed at the start of October 2017. [2]

On March 6, 2018, the company announced the acquisition of Advantage Funding Management. [10]

On April 9, 2018, the FBI raided Michael D. Cohen’s law offices to seek communications with Sterling National Bank and any information about his loans from Sterling National Bank against his taxi business. [11] [12]

In October 2019, Sterling Bancorp's Sterling National Bank agreed to acquire a portfolio of middle market commercial equipment finance loans and leases from Santander Bank. As of September 2019, the balance of the loans and leases outstanding to be acquired was $843M. [13] [14]

In April 2021, Webster Bank and Sterling Bancorp's Sterling National Bank agreed to an all stock merger in an all-stock deal worth about $10.3 billion. The merger was completed on February 1, 2022 and will keep the name Webster Bank. [15]

Differentiation

Prior to its acquisition by Webster, the company pursued a strategy of becoming a high-performing banking institution with a focus on serving small to middle market commercial businesses and affluent consumers. The bank believed this client segment is frequently underserved by larger bank competitors in its market area. Sterling employed a team-based strategy in which each client is served by a relationship team that provides a single point of contact for delivering the bank’s products and services and manages all aspects of the client relationship. [7]

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References

  1. ↑ "INSURED U.S.-CHARTERED COMMERCIAL BANKS THAT HAVE CONSOLIDATED ASSETS of $300 MILLION or MORE, RANKED by CONSOLIDATED ASSETS". December 31, 2018.
  2. 1 2 "Sterling Bancorp and Astoria Financial Corporation Complete Merger". Nasdaq. GlobeNewswire Press Release, October 2, 2017. Retrieved October 4, 2017.
  3. ↑ "NYSE quote". New York Stock Exchange. Retrieved March 30, 2016.
  4. ↑ Provident New York Bancorp 2012 Annual Report. Item 1, Business, page 16. Retrieved April 6, 2016.
  5. ↑ Stewart, Jackie. “Provident in New York to Buy Gotham Bank”, American Banker, January 18, 2012. Retrieved March 30, 2016.
  6. ↑ "Provident Bank seals merger, changes name". lohud.com. Retrieved 2019-10-08.
  7. 1 2 3 "Sterling Bancorp 2015 Annual Report Form (10-K). EDGAR. United States Securities and Exchange Commission". February 29, 2016. Retrieved March 30, 2016.
  8. ↑ Sterling Acquires Damian Services”, ABF Journal, March 3, 2015. Retrieved April 14, 2016
  9. ↑ Macheel, Tanaya. Sterling Bancorp, Seacoast Buy First Capital’s Factoring Operations”, American Banker, May 19, 2015. Retrieved April 14, 2016
  10. ↑ "BRIEF-Sterling Bancorp To Acquire Advantage Funding Management..." Reuters. 2018-03-06. Retrieved 2018-03-06.
  11. ↑ Helderman, Rosalind S.; Hamburger, Tom; Leonnig, Carol (April 12, 2018). "FBI raid sought Trump lawyer's communications with bank that loaned him money against his taxi business". The Washington Post . Retrieved April 12, 2018.
  12. ↑ Leonnig, Carol D.; Hamburger, Tom; Barrett, Devlin (April 9, 2018). "Trump attorney Cohen is being investigated for possible bank fraud, campaign finance violations". The Washington Post. Retrieved April 12, 2018.
  13. ↑ Kiesche, SA Editor Liz (2019-10-07). "Sterling National Bank to acquire $843M of leases, loans from Santander Bank NA". Seeking Alpha. Retrieved 2019-10-08.{{cite web}}: |first= has generic name (help)
  14. ↑ "Sterling National Bank to Acquire $843MM of EF Loans, Leases from Santander Bank - News | ABL Advisor". www.abladvisor.com. Retrieved 2019-10-08.
  15. ↑ Gosselin, Kenneth R. (February 1, 2022). "Webster Bank completes deal for New York lender, adding branch banking options for customers". Hartford Courant .
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