Sterling Bancorp, through its principal subsidiary Sterling National Bank, today announced that it has completed the acquisition of Damian Services Corporation ("Damian"), a privately-held provider of payroll funding and related services. Terms of the transaction were not disclosed.
Damian, founded in 1981 and based in Chicago, IL, has been a pioneer in providing funding, back-office support and software solutions for the temporary staffing industry. Staffing firms often turn to payroll funders for a comprehensive range of services, from receivables-based financing to meet payrolls, to complete payroll processing, payroll tax preparation and filing, invoicing and accounts receivable management, business reports, credit analysis and software.
Sterling is already one of the largest lenders in the payroll funding marketplace, with an existing business that provides receivables-based financing and associated services to staffing industry clients in 48 states. "Our focus has always been on delivering excellent service, which allows our clients to spend their time doing what they do best-growing their business," stated Stephen Leavenworth, Payroll Finance Division President, Sterling National Bank. Damian, which funded over $250 million in receivables for over 100 clients in 2014, will expand Sterling's lending capacity, client base, professional team and fee-generation opportunities to serve this specialized financing niche.
Jack Kopnisky, President and CEO of Sterling Bancorp, noted, "Damian is a leader in the payroll services market and will complement Sterling's existing business in this attractive area of specialization. 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."
Alvin Block, President of Damian, said, "It gives us great confidence, after building this business over more than three decades, to know that Sterling will provide our clients with the level of service they have come to expect, as well as all of the other products and resources that Sterling offers as a national bank."