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Sterling Bancorp acquires payroll funding provider Damian

March 04, 2015

Sterling Bancorp (NYSE: STL), through its principal subsidiary Sterling National Bank, acquired Damian Services Corporation, a privately held provider of payroll funding and other services to the staffing industry.

The transaction closed Feb. 27; terms of the transaction were not disclosed. Damian will operate under the Sterling brand.

“Damian cultivated a valuable and loyal client base in the Midwest, an attractive market that complements our existing national business,” said Stephen Leavenworth, payroll finance division president at Sterling National Bank.

Chicago-based Damian was founded in 1981 and provides funding, back-office support and software solutions for the temporary staffing industry.

“Damian is a leader in the payroll services market and will complement Sterling's existing business in this attractive area of specialization,” said Sterling Bancorp President and CEO Jack Kopnisky. “We like the payroll funding business, which complements our asset-based lending skill-set, provides relatively high returns and contributes to non-interest income. The acquisition is consistent with our stated goal of growing Sterling's specialty lending and other fee-generating operations, and we see opportunities to expand this business over time.”

Sterling National Bank provides commercial, business, and consumer banking products and services.