By Sabela Ojea
Sterling Bancorp said Thursday the Securities and Exchange Commission doesn’t intend to recommend enforcement action against the company after concluding an investigation into its financial reporting.
Shares rose 2.8% to $5.60 in after-hours trading.
The SEC’s division of enforcement concluded its investigation on the regional bank’s accounting, financial reporting and disclosure matters, as well as the lender’s internal controls related to its former advantage loan program suspended in 2019.
In March, the lender entered into a plea agreement with the Justice Department that resolved an investigation over that loan program.
It also agreed to pay $27.2 million in restitution, and to further enhance its compliance program and internal controls related to securities law compliance.
“In entering into the plea agreement, the DOJ noted that the company … knew that it regularly originated loans through the ALP based on false and inadequate due diligence,” Sterling Bancorp said in March.
Write to Sabela Ojea at [email protected]