Sterling Bancorp will buy Long-Island Astoria Financial Corp. for $2.2 billion, creating the sixth largest regional bank in the New York City metropolitan region by deposits.
Sterling, which is based in Montebello in Rockland County, announced the merger on Tuesday. The merger will create a regional bank with a footprint in New York City, the Hudson Valley, Long Island and northern New Jersey.
“By joining forces, Astoria and Sterling will create one of the leading banking enterprises in the NYC metropolitan area and will be well positioned to deliver performance and value for our customers, shareholders, employees and communities,” said Jack L. Kopnisky, president and CEO of Sterling.
The merger agreement is a stock-for-stock transaction. Astoria’s shareholders will receive 0.875 Sterling shares for each share held. The purchase price creates an 18.6 percent premium for Astoria shareholders.
Following the merger, Sterling Bancorp will be led by Kopnisky and have approximately $29 billion in assets, $20 billion in loans and $19 billion in deposits, according to Sterling.
The transaction has been approved by the boards of both companies, but still needs approval from each company’s stockholders, as well as regulatory approval. It is expected to close in the fourth quarter of this year, according to the announcement from Sterling. The companies said following the merger the new entity will be able to offer a “diversified commercial lending focus, solid capital foundation and broad footprint in a dynamic and growing marketplace.”
Sterling has Westchester locations in Mount Kisco, Elmsford, White Plains, Port Chester, Mamaroneck and Yonkers.