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 financial results for the quarter
and year ended December 31, 2023.
Fourth Quarter and Year-End 2023
Highlights
- Fourth quarter net income of $5.1 million, or $0.10 per
diluted share; full year net income of $7.4 million, or $0.15 per
diluted share
- Fourth quarter net interest margin of 2.52%; full year net
interest margin of 2.68%
- Fourth quarter provision for (recovery of) credit losses of
$(4.4) million; full year provision for (recovery of) credit losses
of $(8.5) million
- Nonperforming assets of $9.0 million, or 0.37% of total
assets
- Ratio of allowance for credit losses to total loans of
2.18%
- Total gross loans of $1.3 billion
- Fourth quarter non-interest expense of $12.8 million; full
year non-interest expense of $65.7 million
- Total deposits of $2.0 billion
- Shareholders’ equity of $327.7 million
- Company’s consolidated and Bank’s leverage ratio of 13.95%
and 13.38%, respectively
The Company reported net income of $5.1 million, or $0.10 per
diluted share, for the quarter ended December 31, 2023, compared to
net income of $0.3 million, or $0.01 per diluted share, for the
quarter ended September 30, 2023. For the year ended December 31,
2023, net income was $7.4 million, or $0.15 per diluted share,
compared to a net loss of $(14.2) million, or $(0.28) per diluted
share, for the year ended December 31, 2022.
Thomas M. O’Brien, Chairman, President, and Chief Executive
Officer commented:
“Sterling’s fourth quarter reflects continuing improvement in
our expense management as the government investigations directed at
Sterling have been resolved. However, we continued to bear expenses
from certain indemnified individuals who are responding to
government inquiries. In the fourth quarter, those expenses were
approximately $0.7 million, which was more than offset by the
receipt of $3.8 million of insurance reimbursements for certain
prior invoices. Our directors and officers insurance covering these
matters was ultimately exhausted with these payments, and we do not
expect any future defense costs to be covered by insurance. We will
also continue to bear modest legal, compliance and administrative
costs related to our commitments under the Plea Agreement with the
DOJ. Our loan portfolio declined throughout the year as we have not
introduced new lending products, yet we generally maintained our
total assets by increasing our short-term liquid assets at rates
above our funding costs. Resulting net income for the quarter and
the year further enhanced our strong capital position.
Going forward, we believe the impact of the elevated interest
rate environment, particularly on deposit prices, will not likely
improve in the near-term, although the pace of the rise in deposit
costs has slowed. We continually evaluate our strategic position
and alternatives, and currently believe that prevailing economic
conditions and the lack of a robust capital market for community
banks create significant limitations on pursuing a new strategic
direction. Accordingly, we have elected to be patient and wait for
market conditions to improve before pursuing new strategies. This
approach could also create opportunities for potential strategic
combinations. In the meantime, we believe we have positioned
Sterling well to protect our strengths, namely: strong capital,
strong liquidity and solid credit quality.”
Balance Sheet
Total Assets – Total assets were $2.4 billion at December
31, 2023, a decrease of $30.7 million, or 1%, from September 30,
2023 and a decrease of $28.7 million, or 1%, from December 31,
2022.
Cash and due from banks increased $14.3 million, or 3%, to
$578.0 million at December 31, 2023 compared to $563.6 million at
September 30, 2023 and increased $198.2 million, or 52%, from
$379.8 million at December 31, 2022. Debt securities, all of which
are available for sale, increased $20.9 million, or 5%, to $419.2
million at December 31, 2023 compared to $398.3 million at
September 30, 2023 and increased $75.7 million, or 22%, from $343.6
million at December 31, 2022.
Total gross loans held for investment of $1.3 billion at
December 31, 2023 declined $68.2 million, or 5%, from September 30,
2023 and declined $309.9 million, or 19%, from $1.7 billion at
December 31, 2022.
Total Deposits – Total deposits were $2.0 billion at
December 31, 2023, a decrease of $36.7 million, or 2%, from
September 30, 2023 and an increase of $49.9 million, or 3%, from
December 31, 2022.
Money market, savings and NOW deposits of $1.1 billion decreased
$32.2 million, or 3%, from September 30, 2023 and increased $56.3
million, or 5%, compared to December 31, 2022. Time deposits of
$873.2 million at December 31, 2023 increased $1.1 million compared
to September 30, 2023 and increased $11.5 million, or 1%, compared
to December 31, 2022. Noninterest-bearing deposits of $35.2 million
decreased $5.5 million, or 14%, compared to September 30, 2023 and
decreased $17.8 million, or 34%, compared to December 31, 2022. We
did not have any brokered deposits at December 31, 2023, September
30, 2023, or December 31, 2022. The ratio of total estimated
uninsured deposits to total deposits was 21.5%, 21.4% and 20.6% at
December 31, 2023, September 30, 2023 and December 31, 2022,
respectively. Our current strategy is to continue to offer market
interest rates on our deposit products to maintain our existing
customer base and our liquidity position.
Borrowings – Federal Home Loan Bank borrowings were $50
million at December 31, 2023, which were unchanged from September
30, 2023 and December 31, 2022. In the third quarter of 2023, the
Company redeemed all of its subordinated notes with an aggregate
outstanding principal balance of $65.0 million at a redemption
price equal to 100% of the outstanding principal amount plus
accrued interest.
Capital – Total shareholders’ equity was $327.7 million
at December 31, 2023 compared to $316.1 million at September 30,
2023 and $312.6 million at December 31, 2022. The increase in
shareholders’ equity since September 30, 2023 is primarily
attributable to a $5.8 million reduction in the unrealized loss on
our investment securities portfolio included in accumulated other
comprehensive loss as a result of lower market yields of U.S.
Treasury securities with longer maturities during the fourth
quarter of 2023, along with net income of $5.1 million for the
fourth quarter.
At December 31, 2023, the Company’s consolidated and the Bank’s
leverage ratio were 13.95% and 13.38%, respectively. The Company
and the Bank elected to opt into the Community Bank Leverage Ratio
framework, effective January 1, 2023. As such, each of the Company
and the Bank is required to maintain a Tier 1 leverage ratio of
greater than 9.0% to be considered 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 Recovery of Credit Losses – A recovery
of credit losses of $(4.4) million was recorded for the fourth
quarter of 2023 compared to a recovery of credit losses of $(1.9)
million for the third quarter of 2023. The recovery of credit
losses during the fourth quarter primarily reflects general
improvement in our economic forecast as well as the decline in our
loan portfolio from the prior period. The allowance for credit
losses was $29.4 million, $34.3 million and $45.5 million, or
2.18%, 2.42% and 2.74% of total loans held for investment, at
December 31. 2023, September 30, 2023 and December 31, 2022,
respectively.
Recoveries during the fourth and third quarter of 2023 were $64
thousand and $1 thousand, respectively, with no charge offs in
either quarter.
Nonperforming assets at December 31, 2023 totaled $9.0 million,
or 0.37% of total assets, compared to $6.2 million, or 0.25% of
total assets, at September 30, 2023, primarily due to an increase
of $3.9 million in nonaccrual residential real estate loans,
partially offset by the extension of a $1.1 million construction
loan in the fourth quarter which was over 90 days past its maturity
at September 30, 2023. Nonperforming assets at December 31, 2023
declined by $29.3 million, or 77%, from December 31, 2022 mainly
due to the sale of nonperforming and chronically delinquent
residential real estate loans in the second quarter of 2023.
Results of Operations
Net Interest Income and Net Interest Margin – Net
interest income for the fourth quarter of 2023 was $15.1 million
compared to $16.0 million for the prior quarter of 2023 and $18.5
million for the fourth quarter of 2022. The net interest margin of
2.52% for the fourth quarter of 2023 decreased from the prior
quarter’s net interest margin of 2.62% and decreased from the net
interest margin of 3.09% for the fourth quarter of 2022. The
decrease in net interest income during the fourth quarter of 2023
compared to the prior quarter was primarily due to the decline in
the average balance of our loan portfolio of $69.4 million, or 5%,
during the fourth quarter and a 26 basis point increase in the
average rate paid on interest-bearing deposits during the same
period, partially offset by a 9 and 39 basis point increase in the
average yields on loans and investments, respectively. The decrease
in net interest income during the fourth quarter of 2023 compared
to the fourth quarter of 2022 was primarily due to a 204 basis
point increase in the average rate paid on interest-bearing
deposits, partially offset by a 95 basis point increase in the
average yield on total interest-earning assets during the same
period.
Net interest income for the year ended December 31, 2023 was
$65.0 million, a decrease of $13.8 million from the year ended
December 31, 2022. The net interest margin of 2.68% for the year
ended December 31, 2023 decreased from the prior year’s net
interest margin of 3.06%. The decrease in net interest income for
the year ended December 31, 2023 is primarily attributable to a 216
basis point increase in the average rate paid on interest-bearing
deposits, reflecting the effects of the increasing rate environment
during 2022 which continued into the first half of 2023. This was
partially offset by the impact of a 365 basis point increase in the
average yield of other interest-earning assets (primarily cash and
cash equivalents) and 136 basis point increase in the average yield
on investment securities. Interest income on loans decreased $0.7
million primarily due to the impact of a $315.2 million, or 17%,
decline in the average balance of loans, despite a 96 basis point
increase in the average yield on loans.
Non-Interest Income – Non-interest income for the fourth
quarter of 2023 was $0.2 million compared to $0.4 million for the
prior quarter and $0.2 million for the fourth quarter of 2022.
Non-interest income for the year ended December 31, 2023 was
$2.8 million, an increase of $1.5 million from $1.3 million for the
year ended December 31, 2022. The increase was primarily
attributable to a $1.6 million gain on the sale of all loans that
were held for sale, comprised primarily of nonperforming and
chronically delinquent residential real estate loans, which
occurred in the second quarter of 2023.
Non-Interest Expense – Non-interest expense for the
fourth quarter of 2023 was $12.8 million, a decrease of $4.9
million, or 28%, compared to $17.7 million for the third quarter of
2023, and a decrease of $24.3 million, or 65%, compared to $37.1
million the fourth quarter of 2022. The decrease compared to the
third quarter of 2023 was primarily due to a $5.2 million decrease
in professional fees. During the fourth quarter of 2023, we
received $3.8 million from our insurance carriers for expenses
previously incurred relating to the government investigations which
was primarily due to ongoing investigations against selected
individuals and our decision to cover legal costs with respect to
certain of these individuals. Professional fees also decreased as
the Office of Comptroller of the Currency and U.S. Department of
Justice (the “DOJ”) investigations into the Company and Bank were
resolved. We expect to incur future legal expenses relating to
ongoing government investigations against selected individuals,
which will not be covered by our insurance carriers as the policy
limits have been reached.
Non-interest expense for the year ended December 31, 2023 was
$65.7 million, a decrease of $31.9 million, or 33%, compared to
$97.6 million for the year ended December 31, 2022. The decrease
was primarily attributable to an $18.2 million provision for
contingent losses recognized during the fourth quarter of 2022
reflecting our revised estimate of the financial impact of the
resolution of the DOJ investigation. Professional fees were $13.8
million lower in 2023 compared to 2022 due in part to receiving
$5.9 million more in 2023 compared to 2022 in payments from our
insurance carriers for expenses previously incurred relating to the
government investigations. Professional fees for 2023 also
decreased as the government investigations against the Company and
Bank were resolved. Other expenses declined $2.4 million, or 24%,
in 2023 primarily due to a $2.3 million loss in 2022 to record the
fair value discount on $65.6 million of repurchased Advantage Loan
Program loans. Salaries and employee benefits expense in the year
ended December 31, 2023 increased $2.4 million, or 7%, primarily
due to a $4.0 million reversal in the second quarter of 2022 of
liabilities upon the surrender of certain split-dollar and
company-owned life insurance policies.
Income Tax Expense – For the year ended December 31,
2023, the Company recorded income tax expense of $3.1 million, or
an effective tax rate of 30%, which differs slightly from our
statutory rate of 28% due primarily to non-deductible compensation
and other non-deductible expenses. For the year ended December 31,
2022, the Company recorded an income tax expense of $6.6 million on
a loss before income taxes of $(7.6) million. Our income tax
expense for the year ended December 31, 2022 included $3.6 million
in income tax on the increase in the cash surrender value of
certain split-dollar and company-owned life insurance policies as a
result of the surrender of these policies and the effect of the
provision for contingent losses in 2022 being non-deductible.
Conference Call and Webcast
Management will host a conference call on Wednesday, January 24,
2024 at 11:00 a.m. Eastern Time to discuss the Company’s unaudited
financial results for the quarter and year ended December 31, 2023.
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 January
31, 2024 by U.S callers dialing (877) 344-7529 and international
callers dialing (412) 317-0088, using conference ID number
1967279.
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 San Francisco and Los Angeles,
California and New York City. Sterling offers a range of loan
products as well as retail and business banking services. Sterling
also has an operations center and a branch in Southfield, Michigan.
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,” “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” in our Quarterly Report
on Form 10-Q filed with the Securities and Exchange Commission on
November 9, 2023 and “Risk Factors” in our Annual Report on Form
10-K filed with the Securities and Exchange Commission on March 16,
2023, 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 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
At and for the Year
Ended
December 31,
September 30,
December 31,
December 31,
December 31,
(dollars in thousands, except per share data)
2023
2023
2022
2023
2022
Net income (loss)
$
5,063
$
314
$
(18,433
)
$
7,413
$
(14,194
)
Income (loss) per share, diluted
$
0.10
$
0.01
$
(0.37
)
$
0.15
$
(0.28
)
Net interest income
$
15,105
$
15,994
$
18,521
$
64,959
$
78,802
Net interest margin
2.52
%
2.62
%
3.09
%
2.68
%
3.06
%
Non-interest income
$
213
$
384
$
248
$
2,786
$
1,347
Non-interest expense
$
12,830
$
17,702
$
37,110
$
65,710
$
97,648
Loans, net of allowance for credit losses
$
1,319,568
$
1,382,860
$
1,613,385
$
1,319,568
$
1,613,385
Total deposits
$
2,003,986
$
2,040,658
$
1,954,037
$
2,003,986
$
1,954,037
Asset Quality Nonperforming loans
$
8,973
$
6,182
$
33,725
$
8,973
$
33,725
Allowance for credit losses to total loans
2.18
%
2.42
%
2.74
%
2.18
%
2.74
%
Allowance for credit losses to nonaccrual loans
329
%
681
%
135
%
329
%
135
%
Nonaccrual loans to total loans outstanding
0.66
%
0.36
%
2.03
%
0.66
%
2.03
%
Net charge offs (recoveries) to average loans outstanding during
the period
0.00
%
0.00
%
(0.02
)%
0.40
%
0.06
%
Recovery of credit losses
$
(4,357
)
$
(1,942
)
$
(179
)
$
(8,527
)
$
(9,934
)
Net charge offs (recoveries)
$
(64
)
$
(1
)
$
(281
)
$
5,945
$
1,150
Performance Ratios Return on average assets
0.83
%
0.05
%
(3.01
)%
0.30
%
(0.54
)%
Return on average shareholders' equity
6.34
%
0.39
%
(22.15
)%
2.35
%
(4.19
)%
Efficiency ratio (1)
83.76
%
108.08
%
197.72
%
97.00
%
121.83
%
Yield on average interest-earning assets
5.49
%
5.39
%
4.54
%
5.23
%
3.88
%
Cost of average interest-bearing liabilities
3.47
%
3.24
%
1.74
%
3.02
%
0.98
%
Net interest spread
2.02
%
2.15
%
2.80
%
2.21
%
2.90
%
Capital Ratios(2)(3) Regulatory and Other Capital Ratios
— Consolidated: Tier 1 (core) capital to average total assets
(leverage ratio)
13.95
%
13.42
%
13.54
%
13.95
%
13.54
%
Regulatory and Other Capital Ratios — Bank: Tier 1 (core)
capital to average total assets (leverage ratio)
13.38
%
12.93
%
16.56
%
13.38
%
16.56
%
(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) December 31, 2023 capital ratios are
estimated. (3) Effective January 1, 2023, the Company and Bank
elected to opt into the community bank leverage ratio framework.
Sterling Bancorp, Inc. Condensed Consolidated Balance
Sheets (Unaudited)
December 31,
September 30,
%
December 31,
%
(dollars in thousands)
2023
2023
change
2022
change
Assets Cash and due from banks
$
577,967
$
563,622
3
%
$
379,798
52
%
Interest-bearing time deposits with other banks
5,226
1,174
N/M
934
N/M
Debt securities available for sale
419,213
398,302
5
%
343,558
22
%
Equity securities
4,703
4,505
4
%
4,642
1
%
Loans held for sale
—
—
N/M
7,725
(100
)%
Loans, net of allowance for credit losses of $29,404, $34,267 and
$45,464
1,319,568
1,382,860
(5
)%
1,613,385
(18
)%
Accrued interest receivable
8,509
8,854
(4
)%
7,829
9
%
Mortgage servicing rights, net
1,542
1,631
(5
)%
1,794
(14
)%
Leasehold improvements and equipment, net
5,430
5,583
(3
)%
6,301
(14
)%
Operating lease right-of-use assets
11,454
12,197
(6
)%
14,800
(23
)%
Federal Home Loan Bank stock, at cost
18,923
18,923
0
%
20,288
(7
)%
Federal Reserve Bank stock, at cost
9,048
9,001
1
%
—
N/M
Company-owned life insurance
8,711
8,658
1
%
8,501
2
%
Deferred tax asset, net
16,959
22,475
(25
)%
23,704
(28
)%
Other assets
8,750
8,888
(2
)%
11,476
(24
)%
Total assets
$
2,416,003
$
2,446,673
(1
)%
$
2,444,735
(1
)%
Liabilities Noninterest-bearing deposits
$
35,245
$
40,780
(14
)%
$
53,041
(34
)%
Interest-bearing deposits
1,968,741
1,999,878
(2
)%
1,900,996
4
%
Total deposits
2,003,986
2,040,658
(2
)%
1,954,037
3
%
Federal Home Loan Bank borrowings
50,000
50,000
0
%
50,000
0
%
Subordinated notes, net
—
—
N/M
65,271
(100
)%
Operating lease liabilities
12,537
13,317
(6
)%
15,990
(22
)%
Other liabilities
21,757
26,595
(18
)%
46,810
(54
)%
Total liabilities
2,088,280
2,130,570
(2
)%
2,132,108
(2
)%
Shareholders’ Equity Preferred stock, authorized
10,000,000 shares; no shares issued and outstanding
—
—
—
—
—
Common stock, no par value, authorized 500,000,000 shares; shares
issued and outstanding 52,070,361, 52,072,631 and 50,795,871
84,323
84,323
0
%
83,295
1
%
Additional paid-in capital
16,660
15,882
5
%
14,808
13
%
Retained earnings
241,964
236,901
2
%
234,049
3
%
Accumulated other comprehensive loss
(15,224
)
(21,003
)
28
%
(19,525
)
22
%
Total shareholders’ equity
327,723
316,103
4
%
312,627
5
%
Total liabilities and shareholders’ equity
$
2,416,003
$
2,446,673
(1
)%
$
2,444,735
(1
)%
N/M - Not Meaningful
Sterling Bancorp, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
Three Months Ended
Year Ended
December 31,
September 30,
%
December 31,
%
December 31,
December 31,
%
(dollars in thousands, except per share amounts)
2023
2023
change
2022
change
2023
2022
change
Interest income Interest and fees on loans
$
20,969
$
21,663
(3
)%
$
21,786
(4
)%
$
86,684
$
87,375
(1
)%
Interest and dividends on investment securities and restricted
stock
3,800
3,134
21
%
2,293
66
%
12,056
6,426
88
%
Interest on interest-bearing cash deposits
8,159
8,081
1
%
3,200
N/M
28,049
6,131
N/M
Total interest income
32,928
32,878
0
%
27,279
21
%
126,789
99,932
27
%
Interest expense Interest on deposits
17,572
16,391
7
%
6,922
N/M
57,109
14,992
N/M
Interest on Federal Home Loan Bank borrowings
251
250
0
%
250
0
%
994
1,169
(15
)%
Interest on subordinated notes
—
243
(100
)%
1,586
(100
)%
3,727
4,969
(25
)%
Total interest expense
17,823
16,884
6
%
8,758
N/M
61,830
21,130
N/M
Net interest income
15,105
15,994
(6
)%
18,521
(18
)%
64,959
78,802
(18
)%
Recovery of credit losses
(4,357
)
(1,942
)
N/M
(179
)
N/M
(8,527
)
(9,934
)
14
%
Net interest income after recovery of credit losses
19,462
17,936
9
%
18,700
4
%
73,486
88,736
(17
)%
Non-interest income Service charges and fees
75
97
(23
)%
84
(11
)%
344
435
(21
)%
Gain (loss) on sale of investment securities
(111
)
—
N/M
32
N/M
(113
)
32
N/M
Gain (loss) on sale of loans held for sale
(72
)
—
N/M
(57
)
(26
)%
1,623
143
N/M
Unrealized gain (loss) on equity securities
198
(137
)
N/M
10
N/M
61
(580
)
N/M
Net servicing income (loss)
40
107
(63
)%
98
(59
)%
308
(20
)
N/M
Income earned on company-owned life insurance
83
83
0
%
81
2
%
327
751
(56
)%
Other
—
234
(100
)%
—
N/M
236
586
(60
)%
Total non-interest income
213
384
(45
)%
248
(14
)%
2,786
1,347
N/M
Non-interest expense Salaries and employee benefits
8,500
8,753
(3
)%
8,985
(5
)%
35,937
33,507
7
%
Occupancy and equipment
2,096
2,110
(1
)%
2,216
(5
)%
8,369
8,657
(3
)%
Professional fees
(908
)
4,242
N/M
5,929
N/M
10,076
23,908
(58
)%
FDIC insurance
264
274
(4
)%
115
N/M
1,058
1,146
(8
)%
Data processing
704
745
(6
)%
766
(8
)%
2,941
3,058
(4
)%
Net provision for (recovery of) mortgage repurchase liability
(40
)
(80
)
50
%
31
N/M
(59
)
(639
)
91
%
Provision for contingent losses
—
—
N/M
18,239
(100
)%
—
18,239
(100
)%
Other
2,214
1,658
34
%
829
N/M
7,388
9,772
(24
)%
Total non-interest expense
12,830
17,702
(28
)%
37,110
(65
)%
65,710
97,648
(33
)%
Income (loss) before income taxes
6,845
618
N/M
(18,162
)
N/M
10,562
(7,565
)
N/M
Income tax expense
1,782
304
N/M
271
N/M
3,149
6,629
(52
)%
Net income (loss)
$
5,063
$
314
N/M
$
(18,433
)
N/M
$
7,413
$
(14,194
)
N/M
Income (loss) per share, basic and diluted
$
0.10
$
0.01
$
(0.37
)
$
0.15
$
(0.28
)
Weighted average common shares outstanding: Basic
50,703,220
50,699,967
50,403,310
50,630,928
50,346,198
Diluted
51,182,011
51,069,683
50,403,310
50,778,559
50,346,198
N/M - Not Meaningful
Sterling Bancorp, Inc. Yield
Analysis and Net Interest Income (Unaudited)
Three Months Ended
December 31, 2023 September 30, 2023 December 31,
2022 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
$
1,111,391
$
17,181
6.18
%
$
1,174,075
$
17,546
5.98
%
$
1,428,840
$
18,331
5.13
%
Commercial real estate
237,997
3,065
5.15
%
228,939
2,953
5.16
%
219,414
2,480
4.52
%
Construction
13,789
347
10.07
%
29,337
786
10.72
%
45,486
957
8.42
%
Commercial and industrial
17,611
376
8.54
%
17,796
378
8.50
%
1,389
18
5.18
%
Total loans
1,380,788
20,969
6.07
%
1,450,147
21,663
5.98
%
1,695,129
21,786
5.14
%
Securities, includes restricted stock(2)
431,994
3,800
3.52
%
400,838
3,134
3.13
%
370,460
2,293
2.48
%
Other interest-earning assets
585,703
8,159
5.57
%
589,267
8,081
5.49
%
335,237
3,200
3.82
%
Total interest-earning assets
2,398,485
32,928
5.49
%
2,440,252
32,878
5.39
%
2,400,826
27,279
4.54
%
Noninterest-earning assets
Cash and due from banks
3,822
4,780
4,221
Other assets
30,305
29,535
28,432
Total assets
$
2,432,612
$
2,474,567
$
2,433,479
Interest-bearing liabilities
Money market, savings and NOW
$
1,116,533
$
9,745
3.46
%
$
1,099,070
$
8,930
3.22
%
$
1,078,873
$
3,490
1.28
%
Time deposits
873,928
7,827
3.55
%
907,466
7,461
3.26
%
799,524
3,432
1.70
%
Total interest-bearing deposits
1,990,461
17,572
3.50
%
2,006,536
16,391
3.24
%
1,878,397
6,922
1.46
%
FHLB borrowings
50,000
251
1.96
%
50,000
250
1.96
%
50,000
250
1.96
%
Subordinated notes, net
-
-
0.00
%
9,218
243
10.32
%
65,283
1,586
9.51
%
Total borrowings
50,000
251
1.96
%
59,218
493
3.26
%
115,283
1,836
6.23
%
Total interest-bearing liabilities
2,040,461
17,823
3.47
%
2,065,754
16,884
3.24
%
1,993,680
8,758
1.74
%
Noninterest-bearing liabilities
Demand deposits
38,310
42,355
60,615
Other liabilities
36,768
48,640
49,036
Shareholders' equity
317,073
317,818
330,148
Total liabilities and shareholders' equity
$
2,432,612
$
2,474,567
$
2,433,479
Net interest income and spread(2)
$
15,105
2.02
%
$
15,994
2.15
%
$
18,521
2.80
%
Net interest margin(2)
2.52
%
2.62
%
3.09
%
(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.
Year Ended
December 31, 2023 December 31, 2022
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
$
1,231,559
$
71,491
5.80
%
$
1,524,373
$
71,229
4.67
%
Commercial real estate
228,963
11,401
4.98
%
225,480
10,921
4.84
%
Construction
29,020
2,987
10.29
%
63,841
5,179
8.11
%
Commercial and industrial
9,827
805
8.19
%
879
46
5.23
%
Total loans
1,499,369
86,684
5.78
%
1,814,573
87,375
4.82
%
Securities, includes restricted stock(2)
393,767
12,056
3.06
%
377,959
6,426
1.70
%
Other interest-earning assets
532,789
28,049
5.26
%
380,236
6,131
1.61
%
Total interest-earning assets
2,425,925
126,789
5.23
%
2,572,768
99,932
3.88
%
Noninterest-earning assets
Cash and due from banks
4,326
3,942
Other assets
28,648
33,547
Total assets
$
2,458,899
$
2,610,257
Interest-bearing liabilities
Money market, savings and
NOW
$
1,049,818
$
29,559
2.82
%
$
1,215,059
$
7,006
0.58
%
Time deposits
912,966
27,550
3.02
%
782,760
7,986
1.02
%
Total interest-bearing deposits
1,962,784
57,109
2.91
%
1,997,819
14,992
0.75
%
FHLB borrowings
50,000
994
1.99
%
89,822
1,169
1.30
%
Subordinated notes, net
34,683
3,727
10.60
%
65,310
4,969
7.50
%
Total borrowings
84,683
4,721
5.50
%
155,132
6,138
3.90
%
Total interest-bearing liabilities
2,047,467
61,830
3.02
%
2,152,951
21,130
0.98
%
Noninterest-bearing liabilities
Demand deposits
43,702
67,953
Other liabilities
52,220
50,740
Shareholders' equity
315,510
338,613
Total liabilities and shareholders'
equity
$
2,458,899
$
2,610,257
Net interest income and spread(2)
$
64,959
2.21
%
$
78,802
2.90
%
Net interest margin(2)
2.68
%
3.06
%
(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)
December 31,
September 30,
%
December 31,
%
(dollars in thousands)
2023
2023
change
2022
change
Residential real estate
$
1,085,776
$
1,139,205
(5
)%
$
1,391,276
(22
)%
Commercial real estate
236,982
237,812
(0
)%
221,669
7
%
Construction
10,381
22,292
(53
)%
44,503
(77
)%
Commercial and industrial
15,832
17,809
(11
)%
1,396
N/M
Other consumer
1
9
(89
)%
5
(80
)%
Total loans held for investment
1,348,972
1,417,127
(5
)%
1,658,849
(19
)%
Less: allowance for credit losses
(29,404
)
(34,267
)
(14
)%
(45,464
)
(35
)%
Loans, net
$
1,319,568
$
1,382,860
(5
)%
$
1,613,385
(18
)%
Loans held for sale
$
-
$
-
N/M
$
7,725
(100
)%
Total gross loans
$
1,348,972
$
1,417,127
(5
)%
$
1,666,574
(19
)%
N/M - Not Meaningful
Sterling
Bancorp, Inc. Allowance for Credit Losses - Loans
(Unaudited)
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
December 31, December 31, (dollars in
thousands)
2023
2023
2022
2023
2022
Balance at beginning of period
$
34,267
$
36,153
$
45,362
$
45,464
$
56,548
Adjustment to adopt ASU 2016-13
—
—
—
(1,651
)
—
Adjustment to adopt ASU 2022-02
—
—
—
380
—
Balance after adoption
$
34,267
$
36,153
$
45,362
$
44,193
$
56,548
Provision for (recovery of) credit losses
(4,927
)
(1,887
)
(179
)
(8,844
)
(9,934
)
Charge offs
—
—
—
(6,478
)
(4,261
)
Recoveries
64
1
281
533
3,111
Balance at end of period
$
29,404
$
34,267
$
45,464
$
29,404
$
45,464
Sterling Bancorp, Inc. Deposit
Composition (Unaudited)
December 31,
September 30,
%
December 31,
%
(dollars in thousands)
2023
2023
change
2022
change
Noninterest-bearing deposits
$
35,245
$
40,780
(14
)%
$
53,041
(34
)%
Money Market, Savings and NOW
1,095,521
1,127,735
(3
)%
1,039,263
5
%
Time deposits
873,220
872,143
0
%
861,733
1
%
Total deposits
$
2,003,986
$
2,040,658
(2
)%
$
1,954,037
3
%
Sterling Bancorp, Inc. Credit Quality Data
(Unaudited) At and for the Three Months Ended
December 31,
September 30,
December 31,
(dollars in thousands)
2023
2023
2022
Nonaccrual loans(1)(2) Residential real estate
$
8,942
$
5,035
$
33,690
Loans past due 90 days or more and still accruing interest
31
1,147
35
Nonperforming loans
8,973
6,182
33,725
Other troubled debt restructurings(3)
—
—
2,637
Nonaccrual loans held for sale
—
—
1,942
Nonperforming assets
$
8,973
$
6,182
$
38,304
Total loans (1)
$
1,348,972
$
1,417,127
$
1,658,849
Total assets
$
2,416,003
$
2,446,673
$
2,444,735
Nonaccrual loans to total loans outstanding (2)
0.66
%
0.36
%
2.03
%
Nonperforming assets to total assets
0.37
%
0.25
%
1.57
%
Allowance for credit losses to total loans
2.18
%
2.42
%
2.74
%
Allowance for credit losses to nonaccrual loans
329
%
681
%
135
%
Net charge offs (recoveries) to average loans outstanding during
the period
0.00
%
0.00
%
(0.02
)%
(1) Loans are classified as held for investment and are
presented before the allowance for credit losses. (2) Total
nonaccrual loans exclude nonaccrual loans held for sale. If
nonaccrual loans held for sale are included, the ratio of total
nonaccrual loans to total gross loans would be 0.66%, 0.36% and
2.14% at December 31, 2023, September 30, 2023, and December 31,
2022, respectively. (3) Other troubled debt restructurings at
December 31, 2022 exclude those loans presented above as nonaccrual
or past due 90 days or more and still accruing interest. Effective
January 1, 2023, loan modifications involving borrowers
experiencing financial difficulty are evaluated under the new
credit loss model. There were no such loan modifications during the
three months ended December 31, 2023 and September 30, 2023.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240124685142/en/
Investor Contact: Sterling Bancorp, Inc. Karen Knott
Executive Vice President and Chief Financial Officer (248) 359-6624
kzaborney@sterlingbank.com
Grafico Azioni Sterling Bancorp (NASDAQ:SBT)
Storico
Da Gen 2025 a Feb 2025
Grafico Azioni Sterling Bancorp (NASDAQ:SBT)
Storico
Da Feb 2024 a Feb 2025
