Sterling Bancorp, Inc. (SBT) is facing a significant shift as the company announced a definitive agreement to sell Sterling Bank to EverBank Financial Corp. for a cash consideration of $261 million. This strategic move signals the end of an era for Sterling Bancorp, as they have adopted a plan to dissolve and wind down operations as quickly as possible post-sale.
To ensure a smooth transition, trustees representing 38% of Sterling’s common stock have already agreed to vote in favor of the sale. The deal, however, remains subject to regulatory and shareholder approval and is projected to close in the first quarter of 2025.
As part of the sale to EverBank, Sterling Bank will be divesting all its residential tenant-in-common mortgage loans to Bayview Acquisitions LLC prior to the completion of the transaction. Following the sale, Sterling Bank will merge into EverBank, resulting in all branches (excluding the Michigan branch, which will be closed) operating under the EverBank brand.
For depositors, FDIC coverage will remain intact, while loan customers will transition seamlessly to EverBank’s platform. In the aftermath of the sale, Sterling plans to voluntarily delist its common stock from Nasdaq and deregister, effectively ending its reporting obligations under the Securities Exchange Act.
The market reacted negatively to the news, with SBT shares experiencing a significant drop of 19.8% to $4.61 at the last check on Monday. This decline reflects investor sentiment surrounding the future of Sterling Bancorp following the sale.
As of June 30, 2024, Sterling Bancorp held $599.8 million in cash and due from banks, providing a glimpse into their financial position prior to the acquisition.
