8-K: Sterling Bancorp Receives Regulatory Approval for Sale of Sterling Bank and Trust to EverBank Financial Corp

Sterling Bancorp, Inc. announced it has received regulatory approval from the Office of the Comptroller of the Currency for the sale of Sterling Bank and Trust, F.S.B. to EverBank Financial Corp for $261 million in cash.

Summary

• Sterling Bancorp, Inc. has received regulatory approval from the Office of the Comptroller of the Currency (OCC) for the sale of Sterling Bank and Trust, F.S.B. to EverBank Financial Corp.
• The sale will result in Sterling Bancorp receiving $261 million in cash.
• The transaction is still subject to regulatory approval from the Board of Governors of the Federal Reserve System and other closing conditions.
• Shareholders previously approved the sale at a special meeting on December 18, 2024, with over 99% of votes cast in favor and 74% of outstanding shares voting for the transaction.
• The closing of the sale is expected to occur promptly after the remaining regulatory approval is received and applicable waiting periods expire.
• The sale of the Bank's tenant-in-common loan portfolio to Bayview Acquisitions LLC is also expected to be completed within this timeframe.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive as the company has received a key regulatory approval for a significant transaction. However, the deal is not yet finalized and is subject to further regulatory approvals and closing conditions.

Positives

• The receipt of regulatory approval from the OCC is a significant step towards completing the sale to EverBank.
• The $261 million cash infusion will provide Sterling Bancorp with capital.
• Shareholder approval demonstrates strong support for the transaction.
• The expected closing will resolve uncertainty surrounding the future of Sterling Bank and Trust.

Risks

• The sale is still contingent on receiving regulatory approval from the Board of Governors of the Federal Reserve System.
• Unforeseen delays in obtaining the remaining regulatory approval could impact the closing timeline.
• The forward-looking statements are subject to risks, assumptions, estimates, and uncertainties that are difficult to predict.

Future Outlook

The closing of the sale transaction is expected to occur promptly following the expiration of all applicable waiting periods once the remaining regulatory approval from the Federal Reserve is received.

Industry Context

The banking industry is undergoing consolidation, and this acquisition reflects that trend. EverBank's acquisition of Sterling Bank and Trust will likely expand EverBank's presence in key markets such as California and New York.

Comparison to Industry Standards

• Comparing this deal to other recent bank acquisitions, the purchase price of $261 million seems reasonable given Sterling Bank and Trust's branch operations in major metropolitan areas.
• Deals such as the acquisition of MUFG Union Bank by U.S. Bancorp highlight the ongoing consolidation in the banking sector, with larger institutions seeking to expand their market share and geographic footprint.

Stakeholder Impact

• Shareholders will benefit from the cash infusion resulting from the sale.
• Employees of Sterling Bank and Trust will likely transition to EverBank following the acquisition.
• Customers of Sterling Bank and Trust will become customers of EverBank.

Next Steps

• Obtain regulatory approval from the Board of Governors of the Federal Reserve System.
• Satisfy all remaining closing conditions.
• Complete the sale of the Bank's tenant-in-common loan portfolio to Bayview Acquisitions LLC.
• Close the sale transaction promptly following the expiration of all applicable waiting periods.

Key Dates