Montebello-based Provident New York Bancorp said April 4 it would acquire New York City-based Sterling Bancorp, founded in 1929, for $344 million in a stock-for-stock transaction.
The price was fixed at the closing bell of the New York Stock Exchange April 3.
The two banks are describing the deal as a merger. The new bank will be known as Sterling National Bank.
Provident maintains 36 locations regionally in the Hudson Valley, including in Westchester, and a branch in Lodi, N.J.
Sterling maintains 17 outlets plus additional bank business offices and ATMs in New York City and on Long Island, but only a single shop in Westchester, on Executive Boulevard in Yonkers.
“This merger is a tremendous opportunity for Provident and a significant step in our strategy to expand within the greater New York metropolitan area,” said Jack L. Kopnisky, president and CEO of Provident, in a prepared statement. “It provides greater diversity of product sets, clients, and revenue streams while presenting considerable potential to build our small-to-middle market and consumer client bases.”
“The combined business will be a more effective competitor in the marketplace than either company on its own,” Kopnisky continued. “Sterling Bancorp’s established record of growth and profitability will provide continued value for shareholders of both organizations.”
Under the terms of the deal, Sterling shareholders will receive 1.2625 shares of Provident for every share of Sterling. Shareholder and regulatory approvals are required, but both banks say the deal should be complete by the fourth quarter of 2013.
Together, the banks will have nearly $7 billion in assets. Provident, with $3.8 billion in assets, describes itself as full-service bank, offering a full battery of business, commercial and consumer services, plus wealth management. Sterling, with $2.7 billion in assets, touts its service and work with the business community, professionals and individuals.
Kopnisky will be CEO of the combined company. Louis J. Cappelli, Sterling’s chairman and CEO, will be chairman of the board of directors.