Webster Bank Merges with New York’s Sterling Bancorp
Webster Financial Corporation and New York-based Sterling Bancorp announced a $10.3 billion merger agreement April 19.
The new entity will retain the Webster name and establish its corporate headquarters in Stamford while maintaining Webster’s current Waterbury campus and Sterling’s greater New York City area facilities.
Sterling will merge into Webster in the all-stock deal, with Webster shareholders owning approximately 50.4% of the combined company, and Sterling shareholders approximately 49.6%.
John Ciulla, Webster’s chair, president, and CEO, will serve as president and CEO of the combined company until 24 months after closing, when he will become chair, president, and CEO.
Sterling president and CEO Jack Kopnisky will serve as executive chair of the combined company for 24 months after closing, and will continue in a consulting capacity for an additional 12 months.
The new company will have a combined $63 billion in assets, $52 billion in deposits, and $42 billion in loans.
“We are bringing together two high-performing organizations with strong cultural and business model alignment to create a powerhouse Northeast bank,” Ciulla said.
“This combination provides exceptional financial benefits and enables us to more aggressively invest in key businesses and activities to enhance value for our customers, our communities, our shareholders and our bankers.”
Kopnisky said the merger will create an industry leader.
“Webster and Sterling have much in common: distinguished client service, diversity of revenue, funding sources and assets, and disciplined capital allocation,” he said.
“The increased capabilities and scale of our two organizations are attractive propositions for our clients, communities, shareholders and colleagues.”
The merger is expected to close in the fourth quarter of 2021, subject to closing conditions, including required regulatory approvals and approval by the shareholders of each company.
Their agreement marks the second major transaction this year for Connecticut’s banking sector, with M&T Bank announcing in February the acquisition of the parent company of Bridgeport-based People’s United Bank for $7.6 billion.
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