Sterling Bancorp, Hudson Valley Announce Merger
Sterling Bancorp and Hudson Valley Holding (HVB) announced a definitive merger agreement in a stock-for-stock transaction valued at approximately $539 million, based on the closing price of Sterling common stock on November 4, 2014. The merger will create a leading regional bank specializing in serving small-to-middle market commercial and consumer clients in the greater New York metropolitan area.
The merger agreement calls for a fixed exchange ratio of 1.92 shares of Sterling common stock for each share of HCB common stock. The merger consideration represents an 18.4% premium to Hudson Valley Holding’s share price as of the close of business on November 4, 2014. Upon closing, Sterling stockholders will own approximately 69% of the stock of the combined company and HVB stockholders will own approximately 31%.
Upon completion of the merger, the new company will have approximately $10.5 billion in assets, $6.6 billion in gross loans, and deposits of more than $8.1 billion. The merger is expected to generate approximately $34 million in fully phased-in annual cost savings and is expected to be accretive to Sterling Bancorp’s earnings per share in the calendar years ending December 31, 2015 and 2016.
“We are excited by the opportunity to build on these strengths to serve our combined customer base, deliver value to stockholders, and support the economies of our local communities. Execution is the key in such transactions, and our recent experience in uniting Sterling Bancorp and Provident New York Bancorp will provide a blueprint for success, said Jack L. Kopnisky, president and CEO of Sterling.”
Stephen R. Brown, president and CEO of Hudson Valley, commented, “We look forward to joining the Sterling Bancorp franchise. Sterling Bancorp’s product offerings and resources will benefit our customers, communities and stockholders. This is an exceptional opportunity to combine two banks which share consistent core values and a relationship-based approach to customers.”
The combined company will continue to operate under the Sterling Bancorp name and its principal banking subsidiary will continue under the name Sterling National Bank.