Banking institution EverBank set to acquire Sterling Bank of Michigan for approximately $261 million.
Sterling Bank & Trust, a California-based bank, has been acquired by EverBank Financial Corp for $261 million. The deal, subject to Sterling shareholder and regulatory approval, is expected to close in Q1 2025.
The acquisition includes 24 Sterling Bank branches in California and one in New York City. This strategic move by EverBank, primarily a digital deposit gatherer, aims to expand its physical footprint with Sterling's branch network. EverBank's CEO, Greg Seibly, stated that the acquisition will expand EverBank's footprint in California.
The Federal Reserve Board granted the necessary approval for the acquisition early in 2025, indicating that the transaction met regulatory standards without reported issues or delays.
Upon completion of the sale, Sterling Bancorp will adopt a plan of dissolution. Sterling Bank's Michigan branch will close, and no Sterling executives are expected to join EverBank after the deal.
EverBank will acquire $900 million in loans and $2 billion in deposits from Sterling Bank. However, Sterling Bank will sell its $372.9 million portfolio of residential tenant-in-common mortgage loans to Delaware-based Bayview Acquisitions LLC before the bank's sale to EverBank. EverBank did not want Sterling's tenant-in-common loans due to its focus on commercial lending.
In March 2023, Sterling Bancorp finalized a settlement with the Justice Department after pleading guilty to $69 million in securities fraud. This incident did not form part of the deal with EverBank.
EverBank recently opened a West Coast headquarters in Irvine and will soon open new financial centers in Roseville and Encino. The acquisition is a significant step in EverBank's expansion strategy on the West Coast.
The Office of the Comptroller of the Currency fined former Sterling CEO Gary Judd and founder Scott Seligman $300,000 and $400,000 respectively, for their roles in the operation of Sterling's Advantage Loan Program. The Office of the Comptroller of the Currency also barred former Sterling CEO Gary Judd and founder Scott Seligman from working in the banking sector.
Customer transition was planned with extensive communication, noting that Sterling’s online and mobile banking platforms would be replaced by EverBank's from early September 2025. Customers would need to re-register for online banking services and re-establish settings such as bill pay and alerts, suggesting an important operational transition phase.
In summary, the acquisition was a regulatory-approved strategic move by EverBank to grow its branch network and customer base, with operational integration set for late 2025, but without publicly detailed executive leadership changes reported in the available information.
- The acquisition of Sterling Bank & Trust by EverBank Financial Corp will not only expand EverBank's physical footprint through the acquisition of 24 branches in California and one in New York City, but it will also provide EverBank with $900 million in loans and $2 billion in deposits.
- EverBank's CEO, Greg Seibly, acknowledged that the acquisition will help EverBank, primarily a digital deposit gatherer, expand its footprint in California, indicating a strategic move towards growing their business and investing in a broader customer base.
