The banks, which are both based in the New York metropolitan area, reached an agreement to a stock-for-stock transaction valued at $344 million. In the merger, Sterling shareholders will receive a fixed ratio of 1.2625 shares of Provident common stock for each share of Sterling common stock. Upon closing, Provident shareholders will own approximately 53% of stock in the combined company and Sterling shareholders will own approximately 47%.
According to the banks, The leadership team of the newly combined company will be assembled from both organizations, with Provident’s Jack Kopnisky serving as CEO for the combined company and Luis Massiani serving as chief financial officer. Sterling’s Louis J. Cappelli will serve as chairman of the board of directors.
The transaction, which has been approved by the boards of directors of both companies, is expected to close in the fourth calendar quarter of 2013. The transaction is subject to approval by shareholders from both companies, regulatory approval and other customary closing conditions