A Webster Bank branch in downtown Boston. Photo by James Sanna | Banker & Tradesman Staff
The merger between Connecticut-based Webster Bank and New York-based Sterling National Bank moved a step closer to completion yesterday as shareholders of both banks approved the deal.
In special shareholder meetings to vote on the deal, Webster Financial Corp. and Sterling Bancorp each received enough votes to move forward with the merger, the banks said in a joint statement.
“Today’s stockholder approval marks a key step in completing the merger of Webster and Sterling,” John R. Ciulla, Webster’s chairman, president and CEO, said in the statement. “I am very pleased that our stockholders overwhelmingly support bringing together two high performing companies, as it provides a compelling opportunity to create value for our stakeholders.”
Based in Waterbury, Connecticut, Webster Bank has about $33 billion in assets and 19 branches in Eastern Massachusetts after closing 10 offices in the state this year as part of a 17 percent reduction in its footprint. Sterling National Bank has nearly $30 billion in assets and is based in Pearl River, New York.
The combined institution will keep the Webster name, and Sterling will merge into Webster. The banks plan to establish new headquarters in Stamford, Connecticut, after the merger.
They are combining in a merger-of-equals transaction that they expect to complete in the fourth quarter. The Office of the Comptroller of the Currency approved the bank merger earlier this month. The deal still needs regulatory approval from the Federal Reserve Board and is subject to other customary closing conditions, the banks said in the statement.
“With this milestone, we are one step closer to creating a uniquely focused commercial bank,” Jack L. Kopnisky, Sterling’s president and CEO, said in the statement. “We are excited about what the future holds for the combined company.”
The all-stock transaction valued at approximately $10.3 billion. Webster shareholders will own approximately 50.4 percent of the company, and Sterling shareholders will own about 49.6 percent.
