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Sterling Bancorp (STL) Makes Investment in Texture Capital

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Sterling Bancorp (STL - Free Report) has announced a strategic investment in Texture Capital Holdings Corp., which operates an SEC-registered broker-dealer and Alternative Trading System through its wholly-owned subsidiary Texture Capital, Inc.

The investment underlines Sterling Bancorp’s continuous efforts to team up with financial technology companies that are focused on innovation. Such moves also offer additional scope to expand the company’s digital offerings, including its Banking as a Service (BaaS) business.

Markedly, Texture Capital offers assistance in the issuance of private placement digital securities and provides an electronic platform for institutional participants to efficiently trade in private securities markets.

It uses a blockchain ledger to record digital asset securities. With this, Texture Capital has established a compliant, blockchain-enabled marketplace to cater to institutional investors, while bolstering liquidity in the private securities market.

The platform also benefits issuers with improved control and favorable record-keeping costs.

Per Bea Ordonez, chief financial officer at Sterling Bancorp, “We are excited to partner with Texture, a company that is leveraging cutting edge technology to remove friction in the private capital markets and to develop a platform that will drive further innovation in the capital markets”.

Management at Texture Capital noted, “Sterling Bancorp enjoys both a key position in the financial industry and an executive team preparing for the digital future. We are delighted about the opportunities that lie ahead in our partnership.”

The partnership is in line with Sterling Bancorp’s investment in tech and digital partnerships through the BaaS platform. In fact, through second-quarter 2021, it added seven BaaS partnerships and made investments in several FinTech companies.

The company remains on track with its plan to merge with Webster Financial Corporation (WBS - Free Report) . Last month, both companies received respective shareholder approval for the all-stock merger. The transaction, announced this April, is expected to close in early fourth-quarter 2021, subject to regulatory consents.

Shares of Sterling Bancorp have jumped 104.1% over the past year, outperforming the industry’s rally of 71.2%.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

The company carries a Zacks Rank #3 (Hold) at present.

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