EverBank Acquires Sterling Bank and Trust for $261 Million from Sterling Bancorp

Sterling Bancorp, Inc. (SBT), the holding company of Sterling Bank and Trust, F.S.B., on September 16, 2024, entered into a stock purchase agreement with Florida-based EverBank Financial Corp, under which EverBank would acquire all the outstanding stock of Sterling for a fixed consideration of $261 million in cash.

Agreement Specifics:

Under the agreed terms, Everbank will acquire all of the outstanding stock of Sterling for about $4.91 per share, a discount of 14.61% from the stock’s last close.

Sterling Bank and Trust also formally agreed with Bayview Acquisitions LLC, a company from Delaware, to sell all of its residential tenant-in-common mortgage loans to Bayview. The loan sale will happen right before the Bank itself is sold.

Sterling Bancorp also decided to dissolve itself after the sale is completed. The Company plans to shut down as quickly as possible after the execution of the plan of dissolution.

Company Profile:

Sterling Bancorp is a unitary thrift holding company that operates through its subsidiary, Sterling Bank and Trust, offering community banking services, loans, and various deposit products to individuals and businesses, with branches in California, New York, and Michigan. Its Michigan operations include a branch and an operations center located in Southfield.

EverBank is a nationwide bank that provides financial products and services for both consumer and commercial clients. It provides a strong online banking platform, allowing customers 24/7 digital access, and operates a network of financial centers primarily in Florida

Deal Details and Timeline:

The stock purchase agreement includes standard terms and conditions, as well as certain requirements EverBank must meet to complete the deal. These conditions are:

• Sterling Bank and Trust’s average daily deposit balance (excluding brokered deposits) for the month before the sale must be at least 85% of what it was at the end of July 2024, and
• Sterling Bank and Trust must sell its residential tenant-in-common loan portfolio, which had a total balance of about $373 million as of June 30, 2024, to Bayview, at the agreed purchase price.

Sterling Bancorp’s current Price/Book (TTM) ratio is 0.92, below the sector median of 1.24.

Shareholders will likely receive cash payments from the sale in two parts. The first payment, which will include most of the money from the sale, will happen soon after the sale closes. The final payment will come after all the Company’s debts and obligations are settled, which could take at least six months after the sale.

Once the Bank is sold, which is expected in the first quarter of 2025, it will merge with EverBank, which will take over the Bank’s branch offices, except for the Michigan branch. Sterling Bancorp plans to start closing the Michigan branch as soon as the sale is finalized, following legal requirements.

Deal Metrics:

For more in-depth information regarding this M&A transaction, please visit the Deal Metrics page here:
Deal Metrics for the acquisition of Sterling Bancorp, Inc. (SBT) by EverBank Financial Corp

The Deal Metrics page for each merger or acquisition includes:

-A spread history chart of the merger from announcement through eventual completion or failure.
-Every event as the merger progresses through the expiration of the HSR period, various regulatory approvals, shareholder votes, etc.
-News and SEC filings.
-A history of deal updates.
-And a whole lot more.

Disclaimer: Please do your own due diligence before buying or selling any securities mentioned in this article. We do not warrant the completeness or accuracy of the content or data provided in this article.

Editor’s Note: Baranjot Kaur contributed to this article