Provident New York Bancorp (PBNY) and Sterling Bancorp (STL) announced Thursday they have entered into a definitive merger agreement in a stock-for-stock transaction valued at $344 million, based on the closing price of Provident New York Bancorp common stock on April 3, 2013.
In the merger, Sterling Bancorp shareholders will receive a fixed ratio of 1.2625 shares of Provident New York Bancorp common stock for each share of Sterling Bancorp common stock.
Upon closing, Provident New York Bancorp shareholders will own approximately 53% of stock in the combined company; Sterling Bancorp shareholders will own approximately 47%.
The merger is expected to generate approximately $34 million in fully phased-in annual cost savings or approximately 18% of the expected combined expense total.
The merger is expected to be accretive to Provident New York Bancorp's earnings per share in 2014, excluding the impact of the potential revenue enhancement opportunities.
Upon closing, Provident New York Bancorp's Jack Kopnisky will be serving as chief executive officer for the combined company and Luis Massiani serving as chief financial officer. Sterling Bancorp's Louis Cappelli will serve as chairman of the board of directors.
The Board of Directors of the combined company is expected to have 13 members at closing, with seven members selected from among Provident directors and six selected from among Sterling directors.
The transaction has been approved by the boards of directors of both companies. The transaction 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.
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