Hudson Valley Bank is sold for $539 million to Sterling National Bank

The company behind Sterling National Bank said Wednesday that it plans to buy l regional rival Hudson Valley Bank for about $539 million.

The deal would expand the Sterling Bancorp presence in the New York  metropolitan area.

The combined company, which will have about $10.5 billion in assets, will keep Sterling's name. Hudson Valley Bank locations will be renamed Sterling National Bank.

For every share of Hudson Valley Holding Corp., shareholders will get 1.92 shares of Sterling. Sterling shareholders will own about 69 percent of the stock of the combined company and Hudson Valley Holding Corp. shareholders will own about 31 percent.

The deal is expected to close in the second quarter of 2015.

Sterling, headquartered in upstate Montebello has more than 30 branches and mortgage services locations, according to its website. Hudson Valley, based in Yonkers, has 28 branches.