Sterling Bancorp To Acquire Lending Businesses Of Woodforest

(RTTNews) - Sterling Bancorp (STL) announced a definitive agreement to acquire the asset-based and equipment finance lending businesses of Woodforest National Bank. As of December 31, 2018, the balance of commercial loans and leases outstanding to be acquired was $504 million, with $339 million in asset-based loans and $165 million in equipment finance loans. The transaction consideration will be paid in cash. Sterling Bancorp said the acquisition will result in an increase of approximately $3 million in annual operating expenses.

Jack Kopnisky, President and CEO of Sterling noted, "The acquisition of this business is consistent with our strategy of accelerating the transition of our balance sheet to a more diversified and higher-yielding commercial loan mix, and will augment strong organic origination volumes that we anticipate in our commercial businesses in 2019."

In the quarter ended December 31, 2018, the portfolio to be acquired had a weighted average yield of approximately 5.5%, and consisted 24% of fixed rate loans and 76% floating rate loans.