Webster Bank completes merger
Webster Financial Corp., which was founded in Waterbury amid the Great Depression, on Tuesday completed its $10 billion acquisition of Sterling Bancorp.
The deal creates one of the largest commercial banks in the Northeast and extends Webster Bank’s presence in New York to include Long Island and the Hudson River Valley. The merged institution now operates 202 financial centers and had $65 billion in assets, $44 billion in loans, and $53 billion in deposits based on balances as of December.
But with the arrival of the merger, the bank headquarters has relocated from Waterbury to Stamford. Webster officials have said Waterbury will be part of what they call “a multi-campus presence” where some executives will still be based.
A company spokesperson said there would be no changes to Webster’s footprint of bank branches, but did not address directly whether there would be any layoffs as a result of the merger.
John Ciulla, president and chief executive officer of the newly combined bank, called the com pletion of the merger “a transformative moment in Webster’s history that will greatly benefit our colleagues, clients, communities and shareholders.”
“Our bank will have enhanced scale, significant loan growth potential, best-in-class deposit franchises and a longstanding commitment to community development and corporate citizenship,” Ciulla said.
Jack Kopnisky, who had been chief executive officer of Sterling Bancorp, is now the executive chairman of Webster Financial’s board of directors. Kopnisky said the completion of the merger “brings the best of our banks together, promising an elevated experience for our clients and colleagues as the financial services industry evolves.”
Sterling Bancorp had been based in New York’s Rockland County.
Webster officials said customers will continue to bank as they had before at existing centers and through Webster's and Sterling's websites and mobile applications.
With the merger, Sterling shareholders saw their common stock was converted into the right to receive roughly 0.4630 of a share of Webster’s common stock. Sterling shareholders are receiving cash in lieu of fractional shares.
Lauren Nadres, Stamford’s director of economic development, said city officials “are thrilled that Webster Bank-Sterling National Bank has chosen Stamford for its new headquarters.”
“This is another example of a leading financial institution recognizing the vibrancy of Stamford and the opportunities our city provides for their workforce,” Nadres said.