Sterling Bancorp, Inc. ( SBT ) shares are trading lower after the company disclosed a definitive deal to sell Sterling Bank to EverBank Financial Corp. for $261 million in cash.

Also, the company adopted a plan of dissolution and expects to wind down as quickly as possible after the sale.

Trustees representing 38% of Sterling’s common stock have agreed to vote in favor of the sale.

The deal is subject to regulatory and shareholder approval and is expected to close in the first quarter of 2025.

As part of the sale to EverBank, Sterling Bank will sell all its residential tenant-in-common mortgage loans to Bayview Acquisitions LLC before the closing.

After the sale, Sterling Bank will merge into EverBank, with all branches (except the Michigan branch, which will close) operating as EverBank locations. Depositors will retain FDIC coverage, and loan customers will be transitioned to EverBank’s platform.

Following the sale, Sterling plans to voluntarily delist its common stock from Nasdaq and deregister to end its reporting obligations under the Securities Exchange Act.

As of June 30, 2024, cash and due from banks stood at $599.8 million.

Price Action: SBT shares are down 19.8% at $4.61 at the last check Monday.

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