Sterling Bancorp in Montebello, N.Y., has acquired payroll funding firm Damian Services Corp.
The $7.4 billion-asset Sterling did not disclose the price it paid for the Chicago firm. Damian provides payroll-related services, including processing, tax preparation and invoicing, to staffing firms. The firm funded more than $250 million in receivables for more than 100 clients last year.
Sterling said the acquisition will expand its own lending capacity, client base and fee-generation opportunities in specialty finance.
"Damian is a leader in the payroll services market and will complement Sterling's existing business in this attractive area of specialization," Jack Kopnisky, Sterling's president and chief executive, said in a press release Monday. "We like the payroll funding business, which complements our asset-based lending skill-set, provides relatively high returns and contributes to noninterest income."
Sterling has been an aggressive consolidator, agreeing late last year to buy Hudson Valley Holding in Yonkers, N.Y.