Regions Financial in Birmingham, Ala., has bought a business that manages low-income housing tax credits.
The $126 billion-asset Regions said in a press release Monday that it also gained an asset management business from First Sterling Financial in Great Neck, N.Y. Regions did not disclose the price it paid.
First Sterling has raised more than $1.9 billion in investor equity through proprietary and multi-investor funds, which in turn has been used to support more than $3.5 billion of development across 45 states.
"Regions has a long history of supporting affordable-housing developments that benefit communities through direct investment in low-income housing tax credits," John Turner, head of the company's corporate banking group, said in the release. The acquisition "will allow us to grow noninterest revenue and offer clients additional solutions to meet the affordable housing needs of more communities."
Regions will retain First Sterling's New York operations and all of its employees.
Beekman Advisors and Alston & Bird advised Regions. Deloitte Corporate Finance and Zukerman Gore Brandeis & Crossman advised First Sterling.