Sterling Bancorp

Sterling Bancorp was an American regional bank holding company headquartered in Montebello, New York. Through its principal subsidiary, Sterling National Bank, it provided commercial and consumer banking services primarily across the greater New York metropolitan area and the Hudson Valley. The institution traced its banking origins to 1888, when it was established as Provident Bank, and developed through a series of corporate reorganizations and acquisitions. The company expanded from its Hudson Valley base into New York City through the 2012 acquisition of Gotham Bank of New York. In 2013, Provident New York Bancorp merged with Sterling Bancorp and adopted the Sterling Bancorp name, while its principal bank became Sterling National Bank. This transaction gave the organization a larger platform and a brand positioned around serving small and middle-market businesses, business owners, their families, and affluent consumers. Sterling continued to broaden its regional footprint and product capabilities through the acquisition of Hudson Valley Holding Corp. in 2015, the purchase of specialized businesses and portfolios in areas such as payroll financing and factoring, and the acquisition of Astoria Financial Corp., completed in October 2017. Following the Astoria transaction, the company reported approximately $30 billion in assets as of October 2, 2017. Additional expansion efforts included the planned purchase of Advantage Funding Management and the acquisition of a middle-market commercial equipment-finance portfolio from Santander Bank. Its pre-merger strategy emphasized relationship banking rather than a purely transactional model. Sterling presented itself as a provider for commercial enterprises that could be underserved by larger banks, using relationship teams to coordinate lending, deposits, treasury services, equipment finance, factoring, payroll finance, and other financial products. It also targeted affluent consumers and business-owner households, seeking to combine commercial expertise with private-client and retail banking capabilities. Sterling Bancorp attracted public attention in 2018 when the FBI searched the offices of Michael D. Cohen in connection with records concerning Sterling National Bank and loans related to Cohen's taxi business. The event was reported as part of a wider federal investigation and did not itself establish wrongdoing by Sterling Bancorp. In April 2021, Webster Bank and Sterling National Bank agreed to an all-stock merger valued at approximately $10.3 billion at announcement. The transaction closed on February 1, 2022. The combined institution retained the Webster Bank name, ending Sterling Bancorp's existence as an independent banking holding company and brand.

Sterling Bancorp's institutional history began in 1888 with the founding of Provident Bank. The bank operated for many years as a community and regional financial institution in New York's Hudson Valley before becoming part of Provident New York Bancorp. Its later development was driven by an effort to expand geographically, increase commercial-banking capabilities, and build a broader platform for business and consumer clients. A significant expansion occurred on August 10, 2012, when the company acquired Gotham Bank of New York. The transaction gave Provident a stronger presence in New York City and supported its transition from a primarily local institution toward a larger metropolitan-area banking organization. On October 31, 2013, Provident New York Bancorp completed its merger with Sterling Bancorp. Following the transaction, the holding company adopted the Sterling Bancorp name and its principal banking subsidiary became Sterling National Bank. The combined organization sought to serve a wider range of small and middle-market commercial customers and consumers, while adding scale and product breadth. Sterling pursued further regional expansion in 2015. It acquired Hudson Valley Holding Corp. on June 30 of that year, strengthening its footprint in and around the New York metropolitan region. The company also added specialized capabilities through smaller transactions, including the acquisition of Damian Services Corp., a payroll-financing business, on March 2, 2015, and a factoring portfolio from First Capital Corp. on May 18, 2015. These transactions complemented Sterling's broader commercial-finance strategy by adding working-capital and specialized business services. The acquisition of Astoria Financial Corp., whose banking operations were associated with Astoria Bank, closed at the beginning of October 2017. It was one of Sterling's largest expansion steps and materially increased the company's scale. Sterling reported approximately $30 billion in assets as of October 2, 2017. In March 2018, it announced the acquisition of Advantage Funding Management, continuing its interest in specialized finance. Sterling also pursued equipment-finance growth: in October 2019, Sterling National Bank agreed to acquire a middle-market commercial equipment loan and lease portfolio from Santander Bank. The portfolio had approximately $843 million outstanding as of September 2019. The company operated with a relationship-banking model focused on small and middle-market businesses, business owners, affluent consumers, and related households. Rather than treating products as isolated transactions, Sterling used client relationship teams intended to coordinate lending, deposits, treasury management, equipment finance, factoring, and other services. Its geographic concentration remained centered on the greater New York metropolitan area and the Hudson Valley. Sterling also received public attention in April 2018 when the FBI searched the offices of Michael D. Cohen for communications with Sterling National Bank and information concerning loans linked to his taxi business. The search was reported as part of a wider federal investigation; the available reference material does not establish that Sterling itself was charged with wrongdoing in connection with the event. In April 2021, Webster Bank and Sterling National Bank agreed to combine in an all-stock transaction valued at approximately $10.3 billion at announcement. The merger was completed on February 1, 2022. The combined company retained the Webster Bank name, bringing Sterling Bancorp's independent corporate history to a close.

• 2022

  Merger with Webster Bank completed

  [1]Sterling Bancorpen.wikipedia.org

  The transaction closed on February 1, ending Sterling Bancorp's status as an independent holding company.

• 2021

  Webster merger announced

  [1]Sterling Bancorpen.wikipedia.org

  Sterling and Webster Bank announced an all-stock merger valued at approximately $10.3 billion at announcement.

• 2017

  Astoria Financial acquisition completed

  [1]Sterling Bancorpen.wikipedia.org

  The acquisition closed at the start of October and increased Sterling's scale to approximately $30 billion in assets as of October 2.

• 2015

  Hudson Valley Holding Corp. acquired

  [1]Sterling Bancorpen.wikipedia.org

  The acquisition expanded Sterling's regional presence in the New York metropolitan area.

• 2013

  Sterling Bancorp identity adopted

  [1]Sterling Bancorpen.wikipedia.org

  Following its merger with Sterling Bancorp, Provident New York Bancorp changed its name to Sterling Bancorp and renamed its principal bank Sterling National Bank.

• 2012

  Gotham Bank of New York acquired

  [1]Sterling Bancorpen.wikipedia.org

  The acquisition expanded Provident's presence into the New York City market.

• 1888

  Provident Bank founded

  [1]Sterling Bancorpen.wikipedia.org

  The institution that later became part of Sterling Bancorp was founded as Provident Bank.

Before its merger with Webster Bank, Sterling Bancorp positioned itself as a relationship-focused regional banking institution for small and middle-market commercial businesses, business owners, their families, and affluent consumers. Its differentiation rested on dedicated relationship teams, regional expertise in the New York metropolitan and Hudson Valley markets, and a broad set of commercial finance capabilities.

• Business banking

  Commercial banking

  Sterling National Bank's core offering served small and middle-market companies through relationship-based banking. Services included business deposits, lending, treasury management, and financing intended to support operating cash flow, expansion, and other commercial needs.

• Specialty finance

  Commercial equipment finance

  Sterling offered financing for commercial equipment through loans and leases. Its specialty-finance strategy was expanded by the planned 2019 acquisition of a middle-market equipment-finance portfolio from Santander Bank.

• Working-capital finance · 2015

  Factoring

  Factoring was one of Sterling's specialized commercial-finance capabilities. The company added a factoring portfolio from First Capital Corp. in 2015, supporting business clients that used receivables-based finance for working capital.

• Specialty commercial finance · 2015

  Payroll financing

  Sterling added payroll-financing capability through its March 2015 acquisition of Damian Services Corp. The offering complemented its focus on business owners and commercial clients with recurring payroll and operating-finance needs.

• Consumer banking

  Consumer and affluent-client banking

  Alongside its commercial franchise, Sterling National Bank served consumers, affluent individuals, and business-owner families. The offering included general banking and financial services, although the available reference material does not specify a complete product list.

• 2021

  Sterling Bancorp settles shareholder lawsuit over mortgage disclosures

  Sterling Bancorp settled a shareholder lawsuit alleging that disclosures about the company's residential lending practices violated federal securities laws. Shareholders agreed to drop all claims; the settlement included a cash payment paid by Sterling's insurance carriers, with the amount undisclosed.

  Source

Read more

• 2021

  All-stock merger with Webster BankM&A

  Background

  Sterling and Webster pursued a combination to create a larger banking organization with expanded scale.

  Action taken

  The parties announced an all-stock merger valued at approximately $10.3 billion at the time of announcement.

  Aftermath

  The merger closed on February 1, 2022, and the combined bank retained the Webster Bank name.

  Announced transaction value. Approximately $10.3 billion (April 2021 announcement)

  Source

• 2019

  Santander equipment-finance portfolio transactionM&A

  Background

  Sterling sought to extend its specialty commercial-finance platform and middle-market client relationships.

  Action taken

  Sterling National Bank agreed to acquire a portfolio of commercial equipment finance loans and leases from Santander Bank.

  Aftermath

  The portfolio had approximately $843 million in outstanding balances as of September 2019.

  Outstanding loans and leases in acquired portfolio. Approximately $843 million (September 2019)

  Source

• 2017

  Acquisition of Astoria Financial Corp.M&A

  Background

  Sterling was pursuing regional scale and a larger presence in the New York metropolitan banking market.

  Action taken

  Sterling completed the acquisition of Astoria Financial Corp. at the beginning of October.

  Aftermath

  Sterling reported approximately $30 billion in assets as of October 2, 2017.

  Source

• 2013

  Merger with Sterling BancorpM&A

  Background

  Provident New York Bancorp sought greater scale and a broader platform for commercial and consumer banking.

  Action taken

  The company merged with Sterling Bancorp, adopted the Sterling Bancorp name, and renamed its principal banking subsidiary Sterling National Bank.

  Aftermath

  The transaction established the Sterling identity used for the holding company and its principal bank.

  Source

• 2021.02.01

  Reported2021.02.01

  Sterling Bancorp settles shareholder lawsuit over mortgage disclosures[2]Sterling Bancorp settles shareholder lawsuit over mortgage disclosuresamericanbanker.com

  Sterling Bancorp settled a shareholder lawsuit alleging that disclosures about the company's residential lending practices violated federal securities laws. Shareholders agreed to drop all claims; the settlement included a cash payment paid by Sterling's insurance carriers, with the amount undisclosed.

Read more

1. 1Sterling Bancorpen.wikipedia.org
2. 2Sterling Bancorp settles shareholder lawsuit over mortgage disclosuresamericanbanker.com