Sterling Bancorp, Inc. (NASDAQ: SBT) (“Sterling” or the
“Company”), the holding company of Sterling Bank and Trust, F.S.B.
(the “Bank”), today reported its unaudited financial results for
the second quarter ended June 30, 2024.
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 $1.3 million, or $0.03 per
diluted share, for the quarter ended June 30, 2024, compared to a
net loss of $(0.2) million, or $(0.00) per diluted share, for the
quarter ended March 31, 2024.
“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 $2.4 billion at June 30,
2024, a decrease of $39.8 million, or 2%, from March 31, 2024.
Cash and due from banks decreased $46.4 million, or 7%, to
$599.8 million at June 30, 2024 compared to $646.2 million at March
31, 2024. Debt securities increased $47.1 million, or 12%, to
$441.9 million at June 30, 2024. All debt securities are available
for sale, have a relatively short duration and are considered part
of our liquid assets.
Total gross loans of $1.3 billion at June 30, 2024 decreased
$39.0 million, or 3%, from March 31, 2024. Residential real estate
loans were $972.3 million, a decrease of $68.1 million from March
31, 2024. Commercial real estate loans were $277.3 million, an
increase of $32.7 million from March 31, 2024.
Total Deposits – Total deposits were $2.0 billion at June
30, 2024, an increase of $7.6 million from March 31, 2024. Money
market, savings and NOW deposits were $1.1 billion, an increase of
$3.9 million from March 31, 2024. Time deposits were $905.2
million, an increase of $4.2 million from March 31, 2024.
Noninterest-bearing deposits were $32.2 million at June 30, 2024
compared to $32.7 million at March 31, 2024. Total estimated
uninsured deposits to total deposits were approximately 22% at June
30, 2024, March 31, 2024 and December 31, 2023. Our current
strategy is to continue to offer competitive interest rates on our
deposit products to maintain our existing customer deposit base and
maintain our liquidity.
Federal Home Loan Bank Borrowings – In May 2024 the
Company repaid with existing cash $50.0 million of a long-term
fixed rate borrowing that the Federal Home Loan Bank called, as
expected.
Capital – Total shareholders’ equity was $328.9 million
at June 30, 2024, an increase of $1.6 million compared to $327.3
million at March 31, 2024.
At June 30, 2024, the consolidated Company’s and Bank’s leverage
ratios were 14.26% and 13.80%, respectively. Both the Company and
the Bank are required to maintain a Tier 1 leverage ratio of
greater than 9.0% to have satisfied the minimum regulatory capital
requirements as well as the capital ratio requirements to be
considered well capitalized for regulatory purposes.
Asset Quality and Provision for (Recovery of) Credit
Losses – A provision for (recovery of) credit losses of $(2.1)
million was recorded for the second quarter of 2024 compared to a
provision for credit losses of $41 thousand for the first quarter
of 2024. In the second quarter of 2024, the recovery of credit
losses related to loans of $(2.1) million was primarily the result
of a reduction in the allowance for credit losses on our
residential loans due to a decline in this portfolio and lower
future loss rates on one of our residential loan products. A
recovery of credit losses related to loans of $(0.1) million was
recorded in the first quarter of 2024. A provision for credit
losses on unfunded commitments was recorded for the three months
ended June 30, 2024 and March 31, 2024 of $0.1 million and $0.2
million, respectively. The allowance for credit losses at June 30,
2024 was $27.6 million, or 2.18% of total loans, compared to $29.3
million, or 2.24% of total loans, at March 31, 2024.
Net charge offs (recoveries) during the second quarter of 2024
and first quarter of 2024 were $(0.4) million and $0,
respectively.
Nonperforming loans, comprised primarily of nonaccrual
residential real estate loans, totaled $12.2 million, or 0.51% of
total assets at June 30, 2024, compared to $9.3 million, or 0.39%
of total assets at March 31, 2024. Nonperforming loans at June 30,
2024 included a $1.1 million matured commercial real estate loan,
which was extended subsequent to the end of the quarter and is
included in loans 90 days past due and still accruing.
Results of Operations
Net Interest Income and Net Interest Margin – Net
interest income for the second quarter of 2024 was $14.4 million
compared to $14.9 million for the first quarter of 2024. The net
interest margin was 2.44% and 2.52% for the second and first
quarter of 2024, respectively. The decrease in net interest income
during the second quarter of 2024 compared to the prior quarter was
primarily due to a $1.3 million increase in interest expense on our
average balance of interest-bearing deposits since the rate paid
during the second quarter of 2024 increased 22 basis points. This
decrease was partially offset by a $0.9 million increase in
interest income earned on our average balance of investment
securities and other interest-earnings assets. Interest income on
loans declined $0.3 million in the second quarter of 2024 as
compared to the prior quarter as a decline in the average loan
portfolio balance of $58.7 million, or 4%, was offset in part by
the 18 basis point increase in the yield on the average loan
portfolio. The increase in the yield was due primarily to
residential mortgage rates resetting in the higher interest rate
environment.
Non-Interest Income – Non-interest income for the second
quarter of 2024 and first quarter of 2024 was $0.4 million and $0.2
million, respectively, an increase of $0.2 million, primarily due
to funds received from the Federal Home Loan Bank based on the
performance of loans previously sold to them.
Non-Interest Expense – Non-interest expense of $14.9
million for the second quarter of 2024 reflected a decrease of $0.5
million, or 3%, compared to $15.4 million for the first quarter of
2024. This decrease was primarily due to a $0.3 million decrease in
salaries and employee benefits. In the prior quarter, we completed
staff reductions in various support positions which resulted in a
decline of $0.2 million in salaries and employee benefits expense
compared to the first quarter of 2024. Also, favorably impacting
the first quarter of 2024 was a reversal of a liability for
deferred compensation. In addition, the U.S. Department of Justice
advised the Company in May 2024 that it had closed all of its
investigations focused on the Bank’s former Advantage Loan Program.
Accordingly, we no longer expect to incur any future costs to
cooperate with these completed government investigations or in
connection with claims for the advancement or reimbursement of
legal fees to third parties due to such investigations.
Income Tax Expense (Benefit)– For the three months ended
June 30, 2024, the Company recorded an income tax expense of $0.6
million, or an effective tax rate of 33.0%, compared to an income
tax (benefit) of $(0.1) million, or an effective tax rate of 34.3%,
for the three months ended March 31, 2024. Our effective tax rate
varies from the statutory rate primarily due to the impact of
non-deductible compensation related expenses.
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 Wednesday, July 24,
2024 at 11:00 a.m. Eastern Time to discuss the Company’s unaudited
financial results for the quarter ended June 30, 2024. The
conference call number for U.S. participants is (833) 535-2201 and
the conference call number for participants outside the United
States is (412) 902-6744. Additionally, interested parties can
listen to a live webcast of the call in the “Investor Relations”
section of the Company’s website at www.sterlingbank.com. An
archived version of the webcast will be available in the same
location shortly after the live call has ended.
A replay of the conference call may be accessed through July 31,
2024 by U.S. callers dialing (877) 344-7529 and international
callers dialing (412) 317-0088, using conference ID number
2233158.
About Sterling Bancorp, Inc.
Sterling Bancorp, Inc. is a unitary thrift holding company. Its
wholly owned subsidiary, Sterling Bank and Trust, F.S.B., has
primary branch operations in the San Francisco and Los Angeles,
California metropolitan areas and New York City. Sterling also has
an operations center and a branch in Southfield, Michigan. Sterling
offers a range of loan products as well as retail and business
banking services. For additional information, please visit the
Company’s website at http://www.sterlingbank.com.
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 Securities and
Exchange Commission on March 14, 2024, subsequent periodic reports
and future periodic reports, could affect future results and
events, causing those results and events to differ materially from
those views expressed or implied in the Company’s forward-looking
statements. These risks are not exhaustive. Other sections of this
Press Release and our filings with the Securities and Exchange
Commission include additional factors that could adversely impact
our business and financial performance. Moreover, we operate in a
very competitive and rapidly changing environment. New risks and
uncertainties emerge from time to time, and it is not possible for
us to predict all risks and uncertainties that could have an impact
on the forward-looking statements contained in this Press Release.
Should one or more of the foregoing risks materialize, or should
underlying assumptions prove incorrect, actual results or outcomes
may vary materially from those projected in, or implied by, such
forward-looking statements. Accordingly, you should not place undue
reliance on any such forward-looking statements. The Company
disclaims any obligation to update, revise, or correct any
forward-looking statements based on the occurrence of future
events, the receipt of new information or otherwise.
Sterling Bancorp, Inc.
Consolidated Financial
Highlights (Unaudited)
At and for the Three Months
Ended
June 30,
March 31,
June 30,
(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. June 30, 2024 capital ratios are
estimated.
Sterling Bancorp, Inc. Condensed Consolidated
Balance Sheets (Unaudited)
June 30,
March 31,
%
December 31,
%
June 30,
%
(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 $27,556, $29,257,
$29,404 and $36,153
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
)%
Federal Home Loan Bank stock, at cost
18,423
18,923
(3
)%
18,923
(3
)%
20,288
(9
)%
Federal Reserve Bank stock, at cost
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
)%
Federal Home Loan Bank borrowings
—
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)
June 30,
2024
March 31,
2024
%
change
June 30,
2023
%
change
June 30,
2024
June 30,
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 restrictedstock
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 Federal Home Loan Bank borrowings
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
)%
FDIC insurance
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 June 30, 2024 March 31,
2024 June 30, 2023 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 June 30,
2024 June 30, 2023 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)
June 30,
March 31,
%
December 31,
%
June 30,
%
(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
June 30,
March 31,
December 31,
June 30,
(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)
June 30,
March 31,
%
December 31,
%
June 30,
%
(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
June 30,
March 31,
December 31,
June 30,
(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. Karen Knott
Executive Vice President and Chief Financial Officer (248) 359-6624
kzaborney@sterlingbank.com
Sterling Bancorp (NASDAQ:SBT)
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Sterling Bancorp (NASDAQ:SBT)
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