The payments company will pay $321 million for Crestmark Bank, a commercial lender that focuses on asset-based lending, equipment finance and government-guaranteed loans.
The Michigan company, which lost more than $1.4 billion in the aftermath of the financial crisis, is trying to become more of a commercial lender. It recent agreement to buy a deposit-rich franchise in California could help it get there.
Most of Sterling Bancorp's operations are in San Francisco and Los Angeles. The company plans to use some of the $93 million it will raise to expand in New York and Seattle.
The Michigan company's third-quarter results were down slightly from a year earlier despite increased commercial lending and a wider net interest margin.
Chemical Financial's decision to shutter nearly 40 branches and cut more than 200 jobs is due to improved technology and an effort to become more efficient after years of pursuing acquisitions.
The Michigan company said the branch closures will save it $20 million a year. It also plans to devote fewer resources to indirect auto, where returns have trailed other lending categories.
