Dallas, Texas 11/07/2013 (Financialstrend) – The share holders of regional bank Sterling Bancorp (NYSE:STL) got paid dividends on October 30 for the last time before its merger with Provident New York Bancorp (PBNY) became official on November 1. Going forward the merged entities will work under the common business name of Sterling National Bank. The new banking entity with combined assets of $7 billion will trade on the NYSE and will be able to service customers in the greater New York region. Post the merger the bank will assume national bank characteristics and will shed the regional bank tag.
Commenting about the successful completion of the acquisition, Jack Kopnisky who is the president and chief executive officer of the new banking group has been quoted as saying, “By adding Sterling’s highly complementary product sets to Provident’s heritage of team-based delivery, we can now offer the communities we serve a broader range of financial solutions and a commitment to go above and beyond to meet their needs. This acquisition allows us to leverage the strengths of both organizations and create a stronger bank that is poised for growth.”
As per the merger document, original share holders of Sterling Bancorp will get 1.2625 shares of the new banking stock for every single old Sterling Bankcorp share they owned. Sterling Bancorp option holders also got the option to purchase the new company’s shares from common stock. In what is turning out to be a win-win arrangement for all concerned, the former CEO of Sterling Bancorp Louis Cappelli, will don the role of Chairman of the board.
Post the merger the stock is trading at $11.97 per share and is trading at 0.59% above its 52 week high pricing. The combined entity is expected to provide a wider choice to the customer base of the bank and will add more branches in the extended New York neighbourhood.