Sterling of N.Y. Acquires Mortgage Lender

Add Sterling Bancorp (STL) in New York to the growing list of community banks ramping up in residential lending.

The $2.6 billion-asset company announced Thursday that it has acquired Universal Mortgage, a 21-year-old firm based in Brooklyn. Louis J. Cappelli, Sterling's chairman and chief executive would enhance Sterling's fee income while giving the bank a physical presence in Brooklyn.

Universal has two offices in Brooklyn. Sterling's offices are in Manhattan, Queens and Long Island.

With record low interest rates generating a boom in refinancing activity, many commercially focused community banks have been beefing up their mortgage operations either by hiring teams of mortgage lenders from larger rivals or acquiring smaller mortgage operations. The $4.5 billion-asset Berkshire Hills Bancorp (BHLB) in Pittsfield, Mass., recently expanded its mortgage lending into the Boston area with its acquisition of Greenpark Mortgage of Needham, Mass., and Eagle Bancorp (EGBN) in Bethesda, Md., Cardinal Financial (CFNL) in McLean, Va., and Washington Trust Bancorp (WASH) in Westerly, R.I., are among the banking companies that have been aggressively adding staff and opening mortgage offices.

Sterling did not disclose the terms of the acquisition, which was completed this week. Universal's mortgage lending team, led by its principals Norman Calvo and Edward Ades, will join Sterling, effective immediately.