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Sterling Bancorp Unit Acquires Santander Bank's $839M Loans

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Sterling Bancorp STL recently announced that its principal subsidiary, Sterling National Bank, has completed the acquisition of middle market commercial equipment finance loans and leases from Santander Bank, N.A. The terms of the deal, announced in October, were undisclosed.

The amount of equipment finance loans and leases acquired was $839 million.

The major components of the acquired portfolio were fixed rate loans and leases, and it had a weighted average tax-equivalent yield of approximately 4.3%.

At the time of the announcement of the deal, it was mentioned that the portfolio to be acquired will be merged into Sterling Bancorp’s established national Equipment Finance platform. The combined portfolio will have an outstanding balance of total loans and leases of nearly $2 billion.

Jack Kopnisky, president and CEO of Sterling Bancorp, stated, “We are pleased to complete this acquisition, which will enhance our commercial banking capabilities and augment our organic origination volumes.”

The deal is likely to boost Sterling Bancorp’s balance sheet and loan portfolio repositioning strategy, and will help it form a more diversified commercial mix. Further, the company’s inorganic efforts are expected to augment its commercial lending capabilities.

In March 2019, Sterling National Bank acquired the asset-based and equipment finance lending businesses of Woodforest National Bank. With this deal, Sterling Bancorp acquired $495 million worth commercial loans and leases, consisting of asset-based loans of $331 million and equipment finance loans of $164 million.

Prior to this, in 2018, Sterling Bancorp’s subsidiary had completed the buyout of Advantage Funding Management Co., Inc.

Currently, Sterling Bancorp carries a Zacks Rank #3 (Hold). Its shares have gained 23.3%, outperforming the industry’s rise of 15.5% in the year-to-date period.

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