Sterling Bancorp Reports Second Quarter 2024 Financial Results
Second Quarter 2024 Highlights
-
Net income of
$1.3 million , or$0.03 per diluted share - Net interest margin of 2.44%
-
Nonperforming loans of
$12.2 million , 0.97% of total loans and 0.51% of total assets -
Provision for (recovery of) credit losses of
$(2.1) million ; ratio of allowance for credit losses to total loans of 2.18% -
Non-interest expense of
$14.9 million -
Shareholders’ equity of
$328.9 million - Company’s consolidated and Bank’s leverage ratio of 14.26% and 13.80%, respectively
-
Total deposits of
$2.0 billion -
Total gross loans of
$1.3 billion
The Company reported net income of
“Our focus remains fixed on protecting book value and Sterling’s financial position while we continue to explore opportunities to prudently reposition the Company and increase net income. The margin compression experienced by Sterling is generally consistent with what is being felt in much of the community banking industry. Additionally, our substantial level of liquidity continues to exert some downward pressure on earnings. Credit quality remains strong as do our capital ratios. The capital markets have seen some welcome signs of life and recent activity continues to encourage us to maintain the course of action that we are on. Deposit levels remain essentially flat which is our preferred position at this time. While the residential portfolio continues to decline through prepayments and amortization, we are seeing some growth in our commercial portfolio as several very attractive opportunities have come to fruition,” said Thomas M. O’Brien, Chairman, President, and Chief Executive Officer.
Balance Sheet
Total Assets – Total assets were
Cash and due from banks decreased
Total gross loans of
Total Deposits – Total deposits were
Federal Home Loan Bank Borrowings – In
Capital – Total shareholders’ equity was
At
Asset Quality and Provision for (Recovery of) Credit Losses – A provision for (recovery of) credit losses of
Net charge offs (recoveries) during the second quarter of 2024 and first quarter of 2024 were
Nonperforming loans, comprised primarily of nonaccrual residential real estate loans, totaled
Results of Operations
Net Interest Income and Net Interest Margin – Net interest income for the second quarter of 2024 was
Non-Interest Income – Non-interest income for the second quarter of 2024 and first quarter of 2024 was
Non-Interest Expense – Non-interest expense of
Income Tax Expense (Benefit)– For the three months ended
Mr. O’Brien said, “The year is progressing quickly and we believe there are some hopeful signs of easing inflation, moderating interest rates, and lessening financial stress in the economy. The Company will continue to move forward and explore its opportunities. We believe this is the most prudent course of action given our unique circumstances and the current market dynamics.”
Conference Call and Webcast
Management will host a conference call on
A replay of the conference call may be accessed through
About
Sterling Bancorp, Inc. is a unitary thrift holding company. Its wholly owned subsidiary,
Forward-Looking Statements
This Press Release contains certain statements that are, or may be deemed to be, “forward-looking statements” regarding the Company’s plans, expectations, thoughts, beliefs, estimates, goals and outlook for the future. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance, including any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions. These statements are often, but not always, made through the use of words or phrases such as “may,” “might,” “should,” “could,” “believe,” “expect,” “continue,” “will,” “estimate,” “intend,” “plan,” “anticipate,” and “would” or the negative versions of those words or other comparable words or phrases of a future or forward-looking nature, though the absence of these words does not mean a statement is not forward-looking. All statements other than statements of historical facts, including but not limited to statements regarding the economy and financial markets, government investigations, credit quality, the regulatory scheme governing our industry, competition in our industry, interest rates, our liquidity, our business and our governance, are forward-looking statements. We have based the forward-looking statements in this Press Release primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations, prospects, business strategy and financial needs. These forward-looking statements are not historical facts, and they are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. There can be no assurance that future developments will be those that have been anticipated. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. The risks, uncertainties and other factors detailed from time to time in our public filings, including those included in the disclosures under the headings “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in our Annual Report on Form 10-K filed with the
|
Sterling Bancorp, Inc. |
||||||||||||
|
Consolidated Financial Highlights (Unaudited) |
||||||||||||
|
At and for the Three Months Ended |
||||||||||||
|
|
|
|
|
|
||||||||
| (dollars in thousands, except per share data) |
2024 |
|
2024 |
|
2023 |
|||||||
| Net income (loss) |
$ |
1,316 |
|
$ |
(197 |
) |
$ |
2,539 |
|
|||
| Income (loss) per share, diluted |
$ |
0.03 |
|
$ |
(0.00 |
) |
$ |
0.05 |
|
|||
| Net interest income |
$ |
14,395 |
|
$ |
14,934 |
|
$ |
16,184 |
|
|||
| Net interest margin |
|
2.44 |
% |
|
2.52 |
% |
|
2.64 |
% |
|||
| Non-interest income |
$ |
412 |
|
$ |
199 |
|
$ |
1,911 |
|
|||
| Non-interest expense |
$ |
14,923 |
|
$ |
15,392 |
|
$ |
17,341 |
|
|||
| Loans, net of allowance for credit losses |
$ |
1,236,687 |
|
$ |
1,274,022 |
|
$ |
1,449,709 |
|
|||
| Total deposits |
$ |
2,013,465 |
|
$ |
2,005,855 |
|
$ |
2,041,491 |
|
|||
| Asset Quality | ||||||||||||
| Nonperforming loans |
$ |
12,213 |
|
$ |
9,348 |
|
$ |
2,095 |
|
|||
| Allowance for credit losses to total loans |
|
2.18 |
% |
|
2.24 |
% |
|
2.43 |
% |
|||
| Allowance for credit losses to total nonaccrual loans |
|
249 |
% |
|
314 |
% |
|
1753 |
% |
|||
| Nonaccrual loans to total loans |
|
0.87 |
% |
|
0.71 |
% |
|
0.14 |
% |
|||
| Nonperforming loans to total loans |
|
0.97 |
% |
|
0.72 |
% |
|
0.14 |
% |
|||
| Nonperforming loans to total assets |
|
0.51 |
% |
|
0.39 |
% |
|
0.08 |
% |
|||
| Net charge offs (recoveries) to average loans during the period |
|
(0.03 |
)% |
|
0.00 |
% |
|
(0.03 |
)% |
|||
| Provision for (recovery of) credit losses |
$ |
(2,079 |
) |
$ |
41 |
|
$ |
(2,902 |
) |
|||
| Net charge offs (recoveries) |
$ |
(440 |
) |
$ |
(0 |
) |
$ |
(402 |
) |
|||
| Performance Ratios | ||||||||||||
| Return on average assets |
|
0.22 |
% |
|
(0.03 |
)% |
|
0.41 |
% |
|||
| Return on average shareholders' equity |
|
1.62 |
% |
|
(0.24 |
)% |
|
3.24 |
% |
|||
| Efficiency ratio (1) |
|
100.78 |
% |
|
101.71 |
% |
|
95.83 |
% |
|||
| Yield on average interest-earning assets |
|
5.75 |
% |
|
5.61 |
% |
|
5.15 |
% |
|||
| Cost of average interest-bearing liabilities |
|
3.91 |
% |
|
3.66 |
% |
|
2.99 |
% |
|||
| Net interest spread |
|
1.84 |
% |
|
1.95 |
% |
|
2.16 |
% |
|||
| Leverage Capital Ratios(2) | ||||||||||||
| Consolidated |
|
14.26 |
% |
|
14.10 |
% |
|
13.44 |
% |
|||
| Bank |
|
13.80 |
% |
|
13.58 |
% |
|
12.91 |
% |
|||
| (1) Efficiency ratio is computed as the ratio of non-interest expense divided by the sum of net interest income and non-interest income. | ||||||||||||
| (2) Leverage capital ratio is Tier 1 (core) capital to average total assets. |
||||||||||||
| Sterling Bancorp, Inc. | |||||||||||||||||||||||||
| Condensed Consolidated Balance Sheets (Unaudited) | |||||||||||||||||||||||||
|
|
|
|
|
% |
|
|
|
% |
|
|
|
% |
|||||||||||||
| (dollars in thousands) |
|
2024 |
|
|
|
2024 |
|
|
change |
|
|
2023 |
|
|
change |
|
|
2023 |
|
|
change |
||||
| Assets | |||||||||||||||||||||||||
| Cash and due from banks |
$ |
599,774 |
|
$ |
646,168 |
|
(7 |
)% |
$ |
577,967 |
|
4 |
% |
$ |
655,391 |
|
(8 |
)% |
|||||||
| Interest-bearing time deposits with other banks |
|
5,232 |
|
|
5,229 |
|
0 |
% |
|
5,226 |
|
0 |
% |
|
934 |
|
N/M |
|
|||||||
| Debt securities available for sale |
|
441,930 |
|
|
394,852 |
|
12 |
% |
|
419,213 |
|
5 |
% |
|
334,508 |
|
32 |
% |
|||||||
| Equity securities |
|
4,637 |
|
|
4,656 |
|
(0 |
)% |
|
4,703 |
|
(1 |
)% |
|
4,640 |
|
(0 |
)% |
|||||||
| Loans, net of allowance for credit losses of |
|
1,236,687 |
|
|
1,274,022 |
|
(3 |
)% |
|
1,319,568 |
|
(6 |
)% |
|
1,449,709 |
|
(15 |
)% |
|||||||
| Accrued interest receivable |
|
8,835 |
|
|
9,195 |
|
(4 |
)% |
|
8,509 |
|
4 |
% |
|
7,489 |
|
18 |
% |
|||||||
| Mortgage servicing rights, net |
|
1,392 |
|
|
1,485 |
|
(6 |
)% |
|
1,542 |
|
(10 |
)% |
|
1,658 |
|
(16 |
)% |
|||||||
| Leasehold improvements and equipment, net |
|
4,961 |
|
|
5,206 |
|
(5 |
)% |
|
5,430 |
|
(9 |
)% |
|
5,850 |
|
(15 |
)% |
|||||||
| Operating lease right-of-use assets |
|
11,481 |
|
|
12,358 |
|
(7 |
)% |
|
11,454 |
|
0 |
% |
|
13,025 |
|
(12 |
)% |
|||||||
|
|
18,423 |
|
|
18,923 |
|
(3 |
)% |
|
18,923 |
|
(3 |
)% |
|
20,288 |
|
(9 |
)% |
||||||||
|
|
9,139 |
|
|
9,096 |
|
0 |
% |
|
9,048 |
|
1 |
% |
|
— |
|
N/M |
|
||||||||
| Company-owned life insurance |
|
8,818 |
|
|
8,764 |
|
1 |
% |
|
8,711 |
|
1 |
% |
|
8,605 |
|
2 |
% |
|||||||
| Deferred tax asset, net |
|
17,923 |
|
|
18,240 |
|
(2 |
)% |
|
16,959 |
|
6 |
% |
|
18,538 |
|
(3 |
)% |
|||||||
| Other assets |
|
5,507 |
|
|
6,361 |
|
(13 |
)% |
|
8,750 |
|
(37 |
)% |
|
11,375 |
|
(52 |
)% |
|||||||
| Total assets |
$ |
2,374,739 |
|
$ |
2,414,555 |
|
(2 |
)% |
$ |
2,416,003 |
|
(2 |
)% |
$ |
2,532,010 |
|
(6 |
)% |
|||||||
| Liabilities | |||||||||||||||||||||||||
| Noninterest-bearing deposits |
$ |
32,167 |
|
$ |
32,680 |
|
(2 |
)% |
$ |
35,245 |
|
(9 |
)% |
$ |
44,799 |
|
(28 |
)% |
|||||||
| Interest-bearing deposits |
|
1,981,298 |
|
|
1,973,175 |
|
0 |
% |
|
1,968,741 |
|
1 |
% |
|
1,996,692 |
|
(1 |
)% |
|||||||
| Total deposits |
|
2,013,465 |
|
|
2,005,855 |
|
0 |
% |
|
2,003,986 |
|
0 |
% |
|
2,041,491 |
|
(1 |
)% |
|||||||
|
|
— |
|
|
50,000 |
|
(100 |
)% |
|
50,000 |
|
(100 |
)% |
|
50,000 |
|
(100 |
)% |
||||||||
| Subordinated notes, net |
|
— |
|
|
— |
|
N/M |
|
|
— |
|
N/M |
|
|
65,234 |
|
(100 |
)% |
|||||||
| Operating lease liabilities |
|
12,504 |
|
|
13,407 |
|
(7 |
)% |
|
12,537 |
|
(0 |
)% |
|
14,176 |
|
(12 |
)% |
|||||||
| Other liabilities |
|
19,900 |
|
|
18,027 |
|
10 |
% |
|
21,757 |
|
(9 |
)% |
|
43,433 |
|
(54 |
)% |
|||||||
| Total liabilities |
|
2,045,869 |
|
|
2,087,289 |
|
(2 |
)% |
|
2,088,280 |
|
(2 |
)% |
|
2,214,334 |
|
(8 |
)% |
|||||||
| Shareholders’ Equity | |||||||||||||||||||||||||
| Preferred stock, authorized 10,000,000 shares; no shares issued and outstanding |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|||||||
| Common stock, no par value, authorized shares 500,000,000; shares issued and outstanding 52,371,509, 52,046,683, 52,070,361 and 52,081,886 |
|
84,323 |
|
|
84,323 |
|
0 |
% |
|
84,323 |
|
0 |
% |
|
84,323 |
|
0 |
% |
|||||||
| Additional paid-in capital |
|
17,592 |
|
|
17,173 |
|
2 |
% |
|
16,660 |
|
6 |
% |
|
15,098 |
|
17 |
% |
|||||||
| Retained earnings |
|
243,083 |
|
|
241,767 |
|
1 |
% |
|
241,964 |
|
0 |
% |
|
236,587 |
|
3 |
% |
|||||||
| Accumulated other comprehensive loss |
|
(16,128 |
) |
|
(15,997 |
) |
(1 |
)% |
|
(15,224 |
) |
(6 |
)% |
|
(18,332 |
) |
12 |
% |
|||||||
| Total shareholders’ equity |
|
328,870 |
|
|
327,266 |
|
0 |
% |
|
327,723 |
|
0 |
% |
|
317,676 |
|
4 |
% |
|||||||
| Total liabilities and shareholders’ equity |
$ |
2,374,739 |
|
$ |
2,414,555 |
|
(2 |
)% |
$ |
2,416,003 |
|
(2 |
)% |
$ |
2,532,010 |
|
(6 |
)% |
|||||||
| N/M - Not Meaningful | |||||||||||||||||||||||||
| Sterling Bancorp, Inc. | |||||||||||||||||||||||||||||
| Condensed Consolidated Statements of Operations (Unaudited) | |||||||||||||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||||||||||||
| (dollars in thousands, except per share amounts) |
|
2024 |
|
|
|
2024 |
|
|
% change |
|
2023 |
|
% change |
|
2024 |
|
|
2023 |
|
% change |
|||||||||
| Interest income | |||||||||||||||||||||||||||||
| Interest and fees on loans |
$ |
20,620 |
|
$ |
20,969 |
|
(2 |
)% |
$ |
21,892 |
|
(6 |
)% |
$ |
41,589 |
|
$ |
44,052 |
|
(6 |
)% |
||||||||
| Interest and dividends on investment securities and restricted stock |
|
4,758 |
|
|
4,018 |
|
18 |
% |
|
2,666 |
|
78 |
% |
|
8,776 |
|
|
5,122 |
|
71 |
% |
||||||||
| Interest on interest-bearing cash deposits |
|
8,486 |
|
|
8,295 |
|
2 |
% |
|
7,002 |
|
21 |
% |
|
16,781 |
|
|
11,809 |
|
42 |
% |
||||||||
| Total interest income |
|
33,864 |
|
|
33,282 |
|
2 |
% |
|
31,560 |
|
7 |
% |
|
67,146 |
|
|
60,983 |
|
10 |
% |
||||||||
| Interest expense | |||||||||||||||||||||||||||||
| Interest on deposits |
|
19,350 |
|
|
18,100 |
|
7 |
% |
|
13,337 |
|
45 |
% |
|
37,450 |
|
|
23,146 |
|
62 |
% |
||||||||
| Interest on |
|
119 |
|
|
248 |
|
(52 |
)% |
|
248 |
|
(52 |
)% |
|
367 |
|
|
493 |
|
(26 |
)% |
||||||||
| Interest on Subordinated Notes |
|
— |
|
|
— |
|
N/M |
|
|
1,791 |
|
(100 |
)% |
|
— |
|
|
3,484 |
|
(100 |
)% |
||||||||
| Total interest expense |
|
19,469 |
|
|
18,348 |
|
6 |
% |
|
15,376 |
|
27 |
% |
|
37,817 |
|
|
27,123 |
|
39 |
% |
||||||||
| Net interest income |
|
14,395 |
|
|
14,934 |
|
(4 |
)% |
|
16,184 |
|
(11 |
)% |
|
29,329 |
|
|
33,860 |
|
(13 |
)% |
||||||||
| Provision for (recovery of) credit losses |
|
(2,079 |
) |
|
41 |
|
N/M |
|
|
(2,902 |
) |
28 |
% |
|
(2,038 |
) |
|
(2,228 |
) |
9 |
% |
||||||||
| Net interest income after provision for (recovery of) credit losses |
|
16,474 |
|
|
14,893 |
|
11 |
% |
|
19,086 |
|
(14 |
)% |
|
31,367 |
|
|
36,088 |
|
(13 |
)% |
||||||||
| Non-interest income | |||||||||||||||||||||||||||||
| Service charges and fees |
|
92 |
|
|
87 |
|
6 |
% |
|
78 |
|
18 |
% |
|
179 |
|
|
172 |
|
4 |
% |
||||||||
| Loss on sale of investment securities |
|
— |
|
|
— |
|
N/M |
|
|
— |
|
N/M |
|
|
— |
|
|
(2 |
) |
100 |
% |
||||||||
| Gain on sale of loans held for sale |
|
— |
|
|
— |
|
N/M |
|
|
1,720 |
|
(100 |
)% |
|
— |
|
|
1,695 |
|
(100 |
)% |
||||||||
| Unrealized loss on equity securities |
|
(19 |
) |
|
(47 |
) |
60 |
% |
|
(71 |
) |
73 |
% |
|
(66 |
) |
|
— |
|
N/M |
|
||||||||
| Net servicing income |
|
46 |
|
|
75 |
|
(39 |
)% |
|
102 |
|
(55 |
)% |
|
121 |
|
|
161 |
|
(25 |
)% |
||||||||
| Income earned on company-owned life insurance |
|
84 |
|
|
83 |
|
1 |
% |
|
81 |
|
4 |
% |
|
167 |
|
|
161 |
|
4 |
% |
||||||||
| Other |
|
209 |
|
|
1 |
|
N/M |
|
|
1 |
|
N/M |
|
|
210 |
|
|
2 |
|
N/M |
|
||||||||
| Total non-interest income |
|
412 |
|
|
199 |
|
N/M |
|
|
1,911 |
|
(78 |
)% |
|
611 |
|
|
2,189 |
|
(72 |
)% |
||||||||
| Non-interest expense | |||||||||||||||||||||||||||||
| Salaries and employee benefits |
|
8,196 |
|
|
8,460 |
|
(3 |
)% |
|
9,274 |
|
(12 |
)% |
|
16,656 |
|
|
18,684 |
|
(11 |
)% |
||||||||
| Occupancy and equipment |
|
2,005 |
|
|
2,084 |
|
(4 |
)% |
|
2,051 |
|
(2 |
)% |
|
4,089 |
|
|
4,163 |
|
(2 |
)% |
||||||||
| Professional fees |
|
2,147 |
|
|
2,182 |
|
(2 |
)% |
|
3,521 |
|
(39 |
)% |
|
4,329 |
|
|
6,742 |
|
(36 |
)% |
||||||||
|
|
262 |
|
|
262 |
|
0 |
% |
|
263 |
|
(0 |
)% |
|
524 |
|
|
520 |
|
1 |
% |
|||||||||
| Data processing |
|
742 |
|
|
733 |
|
1 |
% |
|
754 |
|
(2 |
)% |
|
1,475 |
|
|
1,492 |
|
(1 |
)% |
||||||||
| Other |
|
1,571 |
|
|
1,671 |
|
(6 |
)% |
|
1,478 |
|
6 |
% |
|
3,242 |
|
|
3,577 |
|
(9 |
)% |
||||||||
| Total non-interest expense |
|
14,923 |
|
|
15,392 |
|
(3 |
)% |
|
17,341 |
|
(14 |
)% |
|
30,315 |
|
|
35,178 |
|
(14 |
)% |
||||||||
| Income (loss) before income taxes |
|
1,963 |
|
|
(300 |
) |
N/M |
|
|
3,656 |
|
(46 |
)% |
|
1,663 |
|
|
3,099 |
|
(46 |
)% |
||||||||
| Income tax expense (benefit) |
|
647 |
|
|
(103 |
) |
N/M |
|
|
1,117 |
|
(42 |
)% |
|
544 |
|
|
1,063 |
|
(49 |
)% |
||||||||
| Net income (loss) |
$ |
1,316 |
|
$ |
(197 |
) |
N/M |
|
$ |
2,539 |
|
(48 |
)% |
$ |
1,119 |
|
$ |
2,036 |
|
(45 |
)% |
||||||||
| Income (loss) per share, basic and diluted |
$ |
0.03 |
|
$ |
(0.00 |
) |
$ |
0.05 |
|
$ |
0.02 |
|
$ |
0.04 |
|
||||||||||||||
| Weighted average common shares outstanding: | |||||||||||||||||||||||||||||
| Basic |
|
50,920,703 |
|
|
50,843,106 |
|
|
50,672,461 |
|
|
50,881,905 |
|
|
50,559,092 |
|
||||||||||||||
| Diluted |
|
51,349,764 |
|
|
50,843,106 |
|
|
50,778,213 |
|
|
51,326,379 |
|
|
50,705,998 |
|
||||||||||||||
| N/M - Not Meaningful | |||||||||||||||||||||||||||||
| Sterling Bancorp, Inc. | ||||||||||||||||||||||||||||
| Yield Analysis and Net Interest Income (Unaudited) | ||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||
| Average | Average | Average | Average | Average | Average | |||||||||||||||||||||||
| (dollars in thousands) | Balance | Interest | Yield/Rate | Balance | Interest | Yield/Rate | Balance | Interest | Yield/Rate | |||||||||||||||||||
| Interest-earning assets | ||||||||||||||||||||||||||||
| Loans(1) | ||||||||||||||||||||||||||||
| Residential real estate and other consumer |
$ |
1,006,040 |
$ |
17,007 |
6.76 |
% |
$ |
1,064,200 |
$ |
17,197 |
6.46 |
% |
$ |
1,277,408 |
$ |
18,250 |
5.71 |
% |
||||||||||
| Commercial real estate |
|
252,380 |
|
3,252 |
5.15 |
% |
|
246,423 |
|
3,213 |
5.22 |
% |
|
224,836 |
|
2,787 |
4.96 |
% |
||||||||||
| Construction |
|
4,997 |
|
130 |
10.41 |
% |
|
7,246 |
|
242 |
13.36 |
% |
|
31,819 |
|
820 |
10.31 |
% |
||||||||||
| Commercial and industrial |
|
10,855 |
|
231 |
8.51 |
% |
|
15,087 |
|
317 |
8.40 |
% |
|
2,255 |
|
35 |
6.21 |
% |
||||||||||
| Total loans |
|
1,274,272 |
|
20,620 |
6.47 |
% |
|
1,332,956 |
|
20,969 |
6.29 |
% |
|
1,536,318 |
|
21,892 |
5.70 |
% |
||||||||||
| Securities, includes restricted stock(2) |
|
464,404 |
|
4,758 |
4.10 |
% |
|
437,712 |
|
4,018 |
3.67 |
% |
|
375,094 |
|
2,666 |
2.84 |
% |
||||||||||
| Other interest-earning assets |
|
618,846 |
|
8,486 |
5.49 |
% |
|
601,791 |
|
8,295 |
5.51 |
% |
|
541,887 |
|
7,002 |
5.17 |
% |
||||||||||
| Total interest-earning assets |
|
2,357,522 |
|
33,864 |
5.75 |
% |
|
2,372,459 |
|
33,282 |
5.61 |
% |
|
2,453,299 |
|
31,560 |
5.15 |
% |
||||||||||
| Noninterest-earning assets | ||||||||||||||||||||||||||||
| Cash and due from banks |
|
3,391 |
|
4,643 |
|
4,233 |
||||||||||||||||||||||
| Other assets |
|
29,717 |
|
29,521 |
|
27,645 |
||||||||||||||||||||||
| Total assets |
$ |
2,390,630 |
$ |
2,406,623 |
$ |
2,485,177 |
||||||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||||||||||
| Money market, savings and NOW |
$ |
1,062,347 |
$ |
9,827 |
3.71 |
% |
$ |
1,074,937 |
$ |
9,655 |
3.60 |
% |
$ |
980,359 |
$ |
6,270 |
2.57 |
% |
||||||||||
| Time deposits |
|
911,466 |
|
9,523 |
4.19 |
% |
|
884,115 |
|
8,445 |
3.83 |
% |
|
969,938 |
|
7,067 |
2.92 |
% |
||||||||||
| Total interest-bearing deposits |
|
1,973,813 |
|
19,350 |
3.93 |
% |
|
1,959,052 |
|
18,100 |
3.71 |
% |
|
1,950,297 |
|
13,337 |
2.74 |
% |
||||||||||
| FHLB borrowings |
|
24,176 |
|
119 |
1.95 |
% |
|
50,000 |
|
248 |
1.96 |
% |
|
50,000 |
|
248 |
1.96 |
% |
||||||||||
| Subordinated notes, net |
|
- |
|
- |
0.00 |
% |
|
- |
|
- |
0.00 |
% |
|
65,245 |
|
1,791 |
10.86 |
% |
||||||||||
| Total borrowings |
|
24,176 |
|
119 |
1.95 |
% |
|
50,000 |
|
248 |
1.96 |
% |
|
115,245 |
|
2,039 |
7.00 |
% |
||||||||||
| Total interest-bearing liabilities |
|
1,997,989 |
|
19,469 |
3.91 |
% |
|
2,009,052 |
|
18,348 |
3.66 |
% |
|
2,065,542 |
|
15,376 |
2.99 |
% |
||||||||||
| Noninterest-bearing liabilities | ||||||||||||||||||||||||||||
| Demand deposits |
|
31,930 |
|
35,348 |
|
44,005 |
||||||||||||||||||||||
| Other liabilities |
|
33,361 |
|
34,924 |
|
61,487 |
||||||||||||||||||||||
| Shareholders' equity |
|
327,350 |
|
327,299 |
|
314,143 |
||||||||||||||||||||||
| Total liabilities and shareholders' equity |
$ |
2,390,630 |
$ |
2,406,623 |
$ |
2,485,177 |
||||||||||||||||||||||
| Net interest income and spread(2) |
$ |
14,395 |
1.84 |
% |
$ |
14,934 |
1.95 |
% |
$ |
16,184 |
2.16 |
% |
||||||||||||||||
| Net interest margin(2) |
2.44 |
% |
2.52 |
% |
2.64 |
% |
||||||||||||||||||||||
| (1) Nonaccrual loans are included in the respective average loan balances. Income, if any, on such loans is recognized on a cash basis. | ||||||||||||||||||||||||||||
| (2) Interest income does not include taxable equivalence adjustments. | ||||||||||||||||||||||||||||
| Six Months Ended | ||||||||||||||||||||||||||||
| Average | Average | Average | Average | |||||||||||||||||||||||||
| (dollars in thousands) | Balance | Interest | Yield/Rate | Balance | Interest | Yield/Rate | ||||||||||||||||||||||
| Interest-earning assets | ||||||||||||||||||||||||||||
| Loans(1) | ||||||||||||||||||||||||||||
| Residential real estate and other consumer |
$ |
1,035,121 |
$ |
34,204 |
6.61 |
% |
$ |
1,321,858 |
$ |
36,764 |
5.56 |
% |
||||||||||||||||
| Commercial real estate |
|
249,402 |
|
6,465 |
5.18 |
% |
|
224,383 |
|
5,383 |
4.80 |
% |
||||||||||||||||
| Construction |
|
6,122 |
|
372 |
12.15 |
% |
|
36,601 |
|
1,854 |
10.13 |
% |
||||||||||||||||
| Commercial and industrial |
|
12,971 |
|
548 |
8.45 |
% |
|
1,821 |
|
51 |
5.60 |
% |
||||||||||||||||
| Total loans |
|
1,303,616 |
|
41,589 |
6.38 |
% |
|
1,584,663 |
|
44,052 |
5.56 |
% |
||||||||||||||||
| Securities, includes restricted stock(2) |
|
451,059 |
|
8,776 |
3.89 |
% |
|
370,744 |
|
5,122 |
2.76 |
% |
||||||||||||||||
| Other interest-earning assets |
|
610,318 |
|
16,781 |
5.50 |
% |
|
477,186 |
|
11,809 |
4.95 |
% |
||||||||||||||||
| Total interest-earning assets |
|
2,364,993 |
|
67,146 |
5.68 |
% |
|
2,432,593 |
|
60,983 |
5.01 |
% |
||||||||||||||||
| Noninterest-earning assets | ||||||||||||||||||||||||||||
| Cash and due from banks |
|
4,018 |
|
4,353 |
||||||||||||||||||||||||
| Other assets |
|
29,616 |
|
27,349 |
||||||||||||||||||||||||
| Total assets |
$ |
2,398,627 |
$ |
2,464,295 |
||||||||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||||||||||
| Money market, savings and NOW |
$ |
1,068,642 |
$ |
19,482 |
3.66 |
% |
$ |
990,874 |
$ |
10,884 |
2.22 |
% |
||||||||||||||||
| Time deposits |
|
897,791 |
|
17,968 |
4.01 |
% |
|
935,605 |
|
12,262 |
2.64 |
% |
||||||||||||||||
| Total interest-bearing deposits |
|
1,966,433 |
|
37,450 |
3.82 |
% |
|
1,926,479 |
|
23,146 |
2.42 |
% |
||||||||||||||||
| FHLB borrowings |
|
37,088 |
|
367 |
1.98 |
% |
|
50,000 |
|
493 |
1.99 |
% |
||||||||||||||||
| Subordinated notes, net |
|
- |
|
- |
0.00 |
% |
|
65,255 |
|
3,484 |
10.62 |
% |
||||||||||||||||
| Total borrowings |
|
37,088 |
|
367 |
1.96 |
% |
|
115,255 |
|
3,977 |
6.86 |
% |
||||||||||||||||
| Total interest-bearing liabilities |
|
2,003,521 |
|
37,817 |
3.79 |
% |
|
2,041,734 |
|
27,123 |
2.68 |
% |
||||||||||||||||
| Noninterest-bearing liabilities | ||||||||||||||||||||||||||||
| Demand deposits |
|
33,639 |
|
47,127 |
||||||||||||||||||||||||
| Other liabilities |
|
34,142 |
|
61,892 |
||||||||||||||||||||||||
| Shareholders' equity |
|
327,325 |
|
313,542 |
||||||||||||||||||||||||
| Total liabilities and shareholders' equity |
$ |
2,398,627 |
$ |
2,464,295 |
||||||||||||||||||||||||
| Net interest income and spread(2) |
$ |
29,329 |
1.89 |
% |
$ |
33,860 |
2.33 |
% |
||||||||||||||||||||
| Net interest margin(2) |
2.48 |
% |
2.78 |
% |
||||||||||||||||||||||||
| (1) Nonaccrual loans are included in the respective average loan balances. Income, if any, on such loans is recognized on a cash basis. | ||||||||||||||||||||||||||||
| (2) Interest income does not include taxable equivalence adjustments. | ||||||||||||||||||||||||||||
| Sterling Bancorp, Inc. | |||||||||||||||||||||||||||
| Loan Composition (Unaudited) | |||||||||||||||||||||||||||
|
|
|
|
|
% |
|
|
|
% |
|
|
|
% |
|||||||||||||||
| (dollars in thousands) |
|
2024 |
|
|
|
2024 |
|
|
change |
|
|
2023 |
|
|
change |
|
|
2023 |
|
|
change |
||||||
| Residential real estate |
$ |
972,326 |
|
$ |
1,040,464 |
|
(7 |
)% |
$ |
1,085,776 |
|
|
(10 |
)% |
$ |
1,214,439 |
|
|
(20 |
)% |
|||||||
| Commercial real estate |
|
277,273 |
|
|
244,546 |
|
13 |
% |
|
236,982 |
|
|
17 |
% |
|
221,658 |
|
|
25 |
% |
|||||||
| Construction |
|
5,050 |
|
|
4,915 |
|
3 |
% |
|
10,381 |
|
|
(51 |
)% |
|
31,978 |
|
|
(84 |
)% |
|||||||
| Commercial and industrial |
|
9,593 |
|
|
13,348 |
|
(28 |
)% |
|
15,832 |
|
|
(39 |
)% |
|
17,772 |
|
|
(46 |
)% |
|||||||
| Other consumer |
|
1 |
|
|
6 |
|
(83 |
)% |
|
1 |
|
|
0 |
% |
|
15 |
|
|
(93 |
)% |
|||||||
| Total loans held for investment |
|
1,264,243 |
|
|
1,303,279 |
|
(3 |
)% |
|
1,348,972 |
|
|
(6 |
)% |
|
1,485,862 |
|
|
(15 |
)% |
|||||||
| Less: allowance for credit losses |
|
(27,556 |
) |
|
(29,257 |
) |
(6 |
)% |
|
(29,404 |
) |
|
(6 |
)% |
|
(36,153 |
) |
|
(24 |
)% |
|||||||
| Loans, net |
$ |
1,236,687 |
|
$ |
1,274,022 |
|
(3 |
)% |
$ |
1,319,568 |
|
|
(6 |
)% |
$ |
1,449,709 |
|
|
(15 |
)% |
|||||||
| Sterling Bancorp, Inc. | |||||||||||||||||||||||||||
| Allowance for Credit Losses - Loans (Unaudited) | |||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| (dollars in thousands) |
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
||||||||||||
| Balance at beginning of period |
$ |
29,257 |
|
$ |
29,404 |
|
$ |
34,267 |
|
$ |
38,565 |
|
|||||||||||||||
| Provision for (recovery of) credit losses |
|
(2,141 |
) |
|
(147 |
) |
|
(4,927 |
) |
|
(2,814 |
) |
|||||||||||||||
| Charge offs |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|||||||||||||||
| Recoveries |
|
440 |
|
|
— |
|
|
64 |
|
|
402 |
|
|||||||||||||||
| Balance at end of period |
$ |
27,556 |
|
$ |
29,257 |
|
$ |
29,404 |
|
$ |
36,153 |
|
|||||||||||||||
| Sterling Bancorp, Inc. | |||||||||||||||||||||||||||
| Deposit Composition (Unaudited) | |||||||||||||||||||||||||||
|
|
|
|
|
% |
|
|
|
% |
|
|
|
% |
|||||||||||||||
| (dollars in thousands) |
|
2024 |
|
|
|
2024 |
|
|
change |
|
|
2023 |
|
|
change |
|
|
2023 |
|
|
change |
||||||
| Noninterest-bearing deposits |
$ |
32,167 |
|
$ |
32,680 |
|
(2 |
)% |
$ |
35,245 |
|
|
(9 |
)% |
$ |
44,799 |
|
|
(28 |
)% |
|||||||
| Money Market, Savings and NOW |
|
1,076,079 |
|
|
1,072,179 |
|
0 |
% |
|
1,095,521 |
|
|
(2 |
)% |
|
1,015,394 |
|
|
6 |
% |
|||||||
| Time deposits |
|
905,219 |
|
|
900,996 |
|
0 |
% |
|
873,220 |
|
|
4 |
% |
|
981,298 |
|
|
(8 |
)% |
|||||||
| Total deposits |
$ |
2,013,465 |
|
$ |
2,005,855 |
|
0 |
% |
$ |
2,003,986 |
|
|
0 |
% |
$ |
2,041,491 |
|
|
(1 |
)% |
|||||||
| Sterling Bancorp, Inc. | ||||||||||||||||
| Credit Quality Data (Unaudited) | ||||||||||||||||
| At and for the Three Months Ended | ||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||
| (dollars in thousands) |
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
| Nonaccrual loans(1) | ||||||||||||||||
| Residential real estate |
$ |
11,049 |
|
$ |
9,318 |
|
$ |
8,942 |
|
$ |
2,062 |
|
||||
| Loans past due 90 days or more and still accruing interest |
|
1,164 |
|
|
30 |
|
|
31 |
|
|
33 |
|
||||
| Nonperforming loans |
$ |
12,213 |
|
$ |
9,348 |
|
$ |
8,973 |
|
$ |
2,095 |
|
||||
| Total loans (1) |
$ |
1,264,243 |
|
$ |
1,303,279 |
|
$ |
1,348,972 |
|
$ |
1,485,862 |
|
||||
| Total assets |
$ |
2,374,739 |
|
$ |
2,414,555 |
|
$ |
2,416,003 |
|
$ |
2,532,010 |
|
||||
| Allowance for credit losses to total loans |
|
2.18 |
% |
|
2.24 |
% |
|
2.18 |
% |
|
2.43 |
% |
||||
| Allowance for credit losses to total nonaccrual loans |
|
249 |
% |
|
314 |
% |
|
329 |
% |
|
1753 |
% |
||||
| Nonaccrual loans to total loans |
|
0.87 |
% |
|
0.71 |
% |
|
0.66 |
% |
|
0.14 |
% |
||||
| Nonperforming loans to total loans |
|
0.97 |
% |
|
0.72 |
% |
|
0.67 |
% |
|
0.14 |
% |
||||
| Nonperforming loans to total assets |
|
0.51 |
% |
|
0.39 |
% |
|
0.37 |
% |
|
0.08 |
% |
||||
| Net charge offs (recoveries) to average loans during the period |
|
(0.03 |
)% |
|
0.00 |
% |
|
0.00 |
% |
|
(0.03 |
)% |
||||
| (1) Loans are classified as held for investment and are presented before the allowance for credit losses. | ||||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240724713374/en/
Investor Contact:
Sterling Bancorp, Inc.
Executive Vice President and Chief Financial Officer
(248) 359-6624
kzaborney@sterlingbank.com
Source: