Sterling National Bank has entered into a definitive agreement to acquire a portfolio of middle market commercial equipment finance loans and leases from Santander Bank. The agreement stems from Santander’s decision to exit the equipment finance industry, which Monitor reported on last month.

As of September 30, 2019, the balance of loans and leases outstanding to be acquired was $843 million. The portfolio has a weighted average tax-equivalent yield of approximately 4.3% and consists mainly of fixed rate loans and leases. The portfolio will be integrated into Sterling’s established national Equipment Finance platform, resulting in a pro forma combined portfolio of approximately $2 billion in total loans and leases outstanding.

Jack Kopnisky, president and CEO of Sterling, noted, “We are pleased to announce this acquisition, which will augment our organic origination volumes and accelerate our strategy of repositioning our balance sheet and loan portfolio to a more diversified commercial mix.”

The transaction is expected to close during the Q4/19.

Sterling National Bank specializes in the delivery of services and solutions to business owners, their families and consumers and offers a complete line of commercial, business, and consumer banking products and services.