Sterling Bancorp (NYSE: STL) (the “Company”), the parent
company of Sterling National Bank (the “Bank”), today announced
results for the three and six months ended June 30,
2021. Net income available to common stockholders for the
three months ended June 30, 2021 was $96.4 million, or $0.50
per diluted share, compared to net income available to common
stockholders of $97.2 million, or $0.50 per diluted share, for the
linked quarter ended March 31, 2021, and net income available
to common stockholders of $48.8 million, or $0.25 per diluted
share, for the three months ended June 30, 2020.
Net income available to common stockholders for
the six months ended June 30, 2021 was $193.6 million, or $1.01 per
diluted share, compared to net income available to common
stockholders of $61.0 million, or $0.31 per diluted share, for the
same period in 2020.
Chief Executive Officer’s Comments
Jack Kopnisky, President and Chief Executive Officer, commented:
“We are pleased to report strong results for the second quarter of
2021. We maintained a stable net interest margin, our provision for
credit losses continued to decline, and we accelerated our
investments in key commercial businesses.
“Adjusted net income available to common
stockholders was $100.5 million, or $0.52 per diluted share. Both
increased relative to the linked quarter and prior year. Over the
past five years our adjusted net income available per diluted
common share has grown at a compound annual growth rate (“CAGR”) of
14.0% and tangible book value per common share has grown at a CAGR
of 14.6%. Our key profitability metrics remained strong, with
adjusted return on average tangible assets of 1.46% and adjusted
return on average tangible common equity of 14.6%. Adjusted PPNR
excluding accretion income was $124.7 million, an increase of
approximately 1% over the linked quarter, and an increase of 9.6%
increase over the prior year period.
“We continued to effectively manage our net
interest rate margin by substantially reducing our funding costs
and protecting our earning asset yields. Our net interest income
was $218.5 million in the second quarter and our tax equivalent net
interest margin excluding accretion income was 3.30%, flat versus
the linked quarter and up 25 basis points from the second quarter
of 2020. Average earning assets were down $180.8 million with
average commercial loans decreasing by $308.2 million in the second
quarter, which was mainly due to a $343.6 million decline in
mortgage warehouse loans and runoff of Paycheck Protection Program
(“PPP”) loans. We saw growth in targeted asset categories of
traditional C&I, public sector and ADC/community development.
At June 30, 2021, our total core deposits were $22.6 billion,
which represented an increase of $387.3 million, over the linked
quarter.
“In our fee-based businesses, client activity and
transaction volumes continued to build from pandemic lows. In the
second quarter, adjusted non-interest income was $30.3 million, a
decline of $1.3 million versus the linked quarter, which included
$1.8 million in fees related to the origination of second round PPP
loans in the linked quarter. Relative to the linked quarter, we saw
growth in fee income in our loan syndications business, an increase
in deposit fees from higher transaction volumes, and an increase in
investment management fees.
“In the second quarter, our adjusted non-interest
expenses were $109.7 million and our adjusted operating efficiency
ratio was 44.1%. We continue to invest in our technology
infrastructure and digital capabilities, including in our digital
banking offering Brio Direct, and in our Banking as a Service
business. We are also investing in those commercial verticals that
offer attractive risk-adjusted returns by adding resources to our
syndication, innovation finance, treasury management and small
business teams. We are investing for the future, and are confident
that these investments will drive scalable and sustainable growth
in our business and earnings.
“As of June 30, 2021, our allowance for credit
losses - portfolio loans was $314.9 million, or 1.52% of total
loans and 181.7% of non-performing loans, a modest decrease in
absolute terms from the $323.2 million in allowance we reported at
the end of the first quarter. While our credit models reflect and
incorporate an improving macro-economic forecast, we continue to
carefully monitor portfolio performance and certain key economic
indicators specific to the recovery of key business sectors in the
New York metropolitan region, and are taking a measured approach to
managing credit as we continue to navigate through the economic
cycle.
“We have a strong capital position. At
June 30, 2021, our tangible book value per common share was
$14.62, an increase of 11.0% over a year ago. Our tangible common
equity to tangible assets ratio increased sixty six basis points in
the second quarter to 10.29% and our Tier 1 leverage ratio was
10.91%. We declared our regular dividend of $0.07 on our common
stock, payable on August 16, 2021 to holders of record as of
August 2, 2021.
“Since the announcement of our definitive merger
agreement with Webster Financial Corporation on April 19, 2021, we
have been actively engaged with our partners at Webster to design a
comprehensive integration plan that prioritizes our commitment to
value creation, providing best-in-class service to our customers
and continued adherence to the highest standards of risk
governance. In May, the necessary applications were filed with
federal regulators, and in July, we filed our joint merger proxy
statement, with our shareholder vote scheduled for August. We are
excited about the tremendous opportunities created by uniting our
respective organizations. We continue to target a transaction close
date in the fourth quarter of 2021, subject to
2
regulatory and shareholder
approval.”
Reconciliation of GAAP Results to Adjusted
Results (non-GAAP)The Company’s GAAP net income available
to common stockholders of $96.4 million, or $0.50 per diluted
share, for the second quarter of 2021, included the following
items:
- merger-related
expense of $2.5 million, which included professional fees related
to a fairness opinion, diligence, and integration efforts to
date;
- loss on
extinguishment of debt of $1.2 million related to repayment of
subordinated notes - Bank on April 1, 2021;
- a pre-tax loss of
$80 thousand on the sale of investment securities;
- a pre-tax charge of
$475 thousand related to the exit of two back office locations;
and
- the pre-tax
amortization of non-compete agreements and acquired customer list
intangible assets of $148 thousand.
Excluding the impact of these items, adjusted net
income available to common stockholders was $100.5 million, or
$0.52 per diluted share for the second quarter of 2021. For the
three months ended June 30, 2021, our effective income tax
rate was 20.0%. Based on our results year to date, we increased our
estimated effective tax rate for 2021 by one percentage point to
19.5%. The 20.0% effective income tax rate for the second quarter
was necessary to get our year to date estimated effective tax rate
for 2021 to 19.5%. Our effective tax rate for purposes of reporting
adjusted earnings was 18.5% and 17.5% for the three months ended
March 31, 2021 and June 30, 2020, respectively.
|
Non-GAAP financial measures include the terms “adjusted” or
“excluding”. See the reconciliation of the Company’s non-GAAP
financial measures beginning on page 20. |
Net Interest Income and Margin
|
($ in thousands) |
For the three months ended |
|
Change % / bps |
| |
June 30, 2020 |
|
March 31, 2021 |
|
June 30, 2021 |
|
Y-o-Y |
|
Linked Qtr |
|
Interest and dividend income |
$ |
253,226 |
|
|
$ |
233,847 |
|
|
$ |
230,310 |
|
|
(9.0 |
) |
% |
|
(1.5 |
) |
% |
|
Interest expense |
39,927 |
|
|
15,933 |
|
|
11,783 |
|
|
(70.5 |
) |
|
|
(26.0 |
) |
|
|
Net interest income |
$ |
213,299 |
|
|
$ |
217,914 |
|
|
$ |
218,527 |
|
|
2.5 |
|
|
|
0.3 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accretion income on acquired loans |
$ |
10,086 |
|
|
$ |
8,272 |
|
|
$ |
7,812 |
|
|
(22.5 |
) |
% |
|
(5.6 |
) |
% |
|
Yield on loans |
4.03 |
% |
|
3.92 |
% |
|
3.88 |
% |
|
(15 |
) |
|
|
(4 |
) |
|
|
Tax equivalent yield on investment securities4 |
3.05 |
|
|
3.02 |
|
|
2.84 |
|
|
(21 |
) |
|
|
(18 |
) |
|
| Tax equivalent yield on
interest earning assets4 |
3.79 |
|
|
3.68 |
|
|
3.61 |
|
|
(18 |
) |
|
|
(7 |
) |
|
|
Cost of total deposits |
0.48 |
|
|
0.15 |
|
|
0.11 |
|
|
(37 |
) |
|
|
(4 |
) |
|
|
Cost of interest bearing deposits |
0.61 |
|
|
0.20 |
|
|
0.15 |
|
|
(46 |
) |
|
|
(5 |
) |
|
|
Cost of borrowings |
2.26 |
|
|
3.97 |
|
|
3.87 |
|
|
161 |
|
|
|
(10 |
) |
|
|
Cost of interest bearing liabilities |
0.78 |
|
|
0.34 |
|
|
0.26 |
|
|
(52 |
) |
|
|
(8 |
) |
|
|
Total cost of funding liabilities5 |
0.63 |
|
|
0.27 |
|
|
0.20 |
|
|
(43 |
) |
|
|
(7 |
) |
|
|
Tax equivalent net interest margin6 |
3.20 |
|
|
3.43 |
|
|
3.42 |
|
|
22 |
|
|
|
(1 |
) |
|
| |
|
|
|
|
|
|
|
|
|
| Average loans, including loans
held for sale |
$ |
21,940,636 |
|
|
$ |
21,294,550 |
|
|
$ |
20,843,661 |
|
|
(5.0 |
) |
% |
|
(2.1 |
) |
% |
| Average commercial loans |
19,715,184 |
|
|
19,553,823 |
|
|
19,245,641 |
|
|
(2.4 |
) |
|
|
(1.6 |
) |
|
| Average investment
securities |
4,630,056 |
|
|
4,054,978 |
|
|
4,322,126 |
|
|
(6.7 |
) |
|
|
6.6 |
|
|
| Average cash balances |
455,626 |
|
|
648,178 |
|
|
651,271 |
|
|
42.9 |
|
|
|
0.5 |
|
|
| Average total interest earning
assets |
27,240,114 |
|
|
26,149,732 |
|
|
25,968,935 |
|
|
(4.7 |
) |
|
|
(0.7 |
) |
|
| Average deposits and mortgage
escrow |
23,463,937 |
|
|
23,546,928 |
|
|
23,516,675 |
|
|
0.2 |
|
|
|
(0.1 |
) |
|
4. Tax equivalent basis represents interest income
earned on tax exempt securities divided by the applicable federal
tax rate of 21%.5. Includes interest bearing liabilities and
non-interest bearing deposits.6. Tax equivalent net interest margin
is equal to net interest income plus the tax equivalent adjustment
for tax exempt securities divided by average interest earning
assets. The tax equivalent adjustment is assumed at a 21% federal
tax rate in all periods presented.
3
Second quarter 2021 compared with second quarter
2020 Net interest income was $218.5 million for the quarter ended
June 30, 2021, an increase of $5.2 million compared to the second
quarter of 2020. This was mainly due to a decline in interest
expense in line with decreases in interest rates and the repayment
of higher cost FHLB and subordinated notes - Bank borrowings. Other
key components of changes in net interest income were the
following:
- The tax equivalent
yield on interest earning assets decreased 18 basis points to
3.61%, in line with period over period decreases in interest
rates.
- The decline in
market interest rates drove a decrease in our yield on loans, from
4.03% in the second quarter of 2020 to 3.88% in the second quarter
of 2021.
- Accretion income on
acquired loans was $7.8 million in the second quarter of 2021,
compared to $10.1 million in the second quarter of 2020.
- Average investment
securities were $4.3 billion, or 16.6%, of average total interest
earning assets for the second quarter of 2021 compared to $4.6
billion, or 17.0%, of average total interest earning assets for the
second quarter of 2020. The tax equivalent yield on investment
securities was 2.84% for the second quarter of 2021 compared to
3.05% for the same period last year. The decline was mainly a
result of an increase in US Treasury securities held in our
portfolio.
- Strong growth in
deposits drove increases in average cash balances to $651.3 million
compared to $455.6 million in the second quarter of 2020.
- Total interest
expense was $11.8 million, a decline of $28.1 million compared to
the second quarter of 2020. This was mainly due to lower interest
expense paid on deposits and short-term borrowings and the impact
of repayment of borrowings.
- The cost of total
deposits was 11 basis points for the second quarter of 2021
compared to 48 basis points for the same period a year ago, as we
aggressively repriced deposits in response to the low interest rate
environment.
- The cost of
borrowings was 3.87% for the second quarter of 2021 compared to
2.26% for the same period a year ago. The increase was mainly due
to the change in composition of our borrowings, with average
borrowings of $527.3 million in the current quarter being comprised
of $35.2 million in short-term borrowings and $492.1 million in
higher coupon longer term borrowings, while for the prior year
quarter average borrowings of $2.1 billion were comprised of
predominately shorter term borrowings.
- The total cost of
interest bearing liabilities was 0.26% for the second quarter of
2021 compared to 0.78% for the same period a year ago. The decline
was due to both changes in market rates of interest and changes in
funding mix.
- Average deposits
and mortgage escrow increased $52.7 million during the second
quarter of 2021 compared to the same period a year ago.
Second quarter 2021 compared with first quarter
2021
Net interest income increased $613 thousand for the
quarter ended June 30, 2021 compared to the linked quarter, mainly
due to the impact of lower interest expense. Other key components
of the changes in net interest income were the following:
- The average balance
of commercial loans decreased $308.2 million, which included a
$343.6 million decline in mortgage warehouse loans. The average
balance of residential mortgage loans declined $131.2 million.
- The tax equivalent
net interest margin was 3.42% compared to 3.43% in the linked
quarter. Excluding accretion income on acquired loans, tax
equivalent net interest margin was unchanged at 3.30%.
- The yield on loans
was 3.88% compared to 3.92% for the linked quarter. The decrease
was mainly due to run off of fixed rate loans and decline in
accretion income on acquired loans.
- The remaining
balance related to PPP loans in the portfolio was $7.8 million at
the end of the quarter, and all loans are in process of being
forgiven. We recognized $684 thousand in PPP loan fees as
interest income in the second quarter of 2021, compared to
$367 thousand in the linked quarter.
- The tax equivalent
yield on interest earning assets was 3.61% compared to 3.68% in the
linked quarter, primarily as a result of the factors discussed
above.
- The tax equivalent
yield on investment securities was 2.84% compared to 3.02% for the
linked quarter. The decline in yield was mainly due to the
deployment of excess cash into US Treasury securities.
- The cost of total
deposits decreased four basis points to 11 basis points, mainly due
to maturities of higher rate certificate accounts and deposit
repricing strategies in response to the low interest rate
environment.
- Total interest
expense decreased $4.2 million as a result of the factors discussed
above and the impact of repayment of higher cost borrowings.
- The total cost of
borrowings decreased 10 basis points to 3.87%, mainly due to the
redemption of subordinated notes -
4
Bank.
- Average deposits
and mortgage escrow decreased by $30.3 million and average
borrowings decreased by $194.4 million relative to the linked
quarter.
Non-interest Income
| ($ in thousands) |
For the three months ended |
|
Change % |
| |
June 30, 2020 |
|
March 31, 2021 |
|
June 30, 2021 |
|
Y-o-Y |
|
Linked Qtr |
|
Deposit fees and service charges |
$ |
5,345 |
|
|
$ |
6,563 |
|
|
$ |
7,096 |
|
|
|
32.8 |
|
% |
|
8.1 |
|
% |
| Accounts receivable management
/ factoring commissions and other related
fees |
4,419 |
|
|
5,426 |
|
|
5,491 |
|
|
|
24.3 |
|
% |
|
1.2 |
|
% |
| Bank owned life insurance
(“BOLI”) |
4,950 |
|
|
4,955 |
|
|
4,981 |
|
|
|
0.6 |
|
% |
|
0.5 |
|
% |
| Loan commissions and fees |
8,003 |
|
|
10,477 |
|
|
8,762 |
|
|
|
9.5 |
|
% |
|
(16.4 |
) |
% |
| Investment management
fees |
1,379 |
|
|
1,852 |
|
|
2,018 |
|
|
|
46.3 |
|
% |
|
9.0 |
|
% |
| Net gain (loss) on sale of
securities |
485 |
|
|
719 |
|
|
(80 |
) |
|
|
(116.5 |
) |
% |
|
NM |
| Other |
1,509 |
|
|
2,364 |
|
|
1,946 |
|
|
|
29.0 |
|
% |
|
(17.7 |
) |
% |
|
Total non-interest income |
26,090 |
|
|
32,356 |
|
|
30,214 |
|
|
|
15.8 |
|
% |
|
(6.6 |
) |
% |
| Net gain (loss) on sale of
securities |
485 |
|
|
719 |
|
|
(80 |
) |
|
|
(116.5 |
) |
% |
|
NM |
| Adjusted non-interest
income |
$ |
25,605 |
|
|
$ |
31,637 |
|
|
$ |
30,294 |
|
|
|
18.3 |
|
% |
|
(4.2 |
) |
% |
Second quarter 2021 compared with second quarter
2020 Adjusted non-interest income increased $4.7 million in the
second quarter of 2021, compared to $25.6 million in the same
quarter last year. The increase was mainly due to increased
transactional volumes in deposits, from payroll finance and
factoring, loan syndications and investment management businesses.
In the second quarter of 2020, we realized a gain of $485 thousand
on the sale of $52.5 million available for sale securities, which
we sold to fund commercial loan growth compared to a loss of $80
thousand in the second quarter of 2021.
Second quarter 2021 compared with first quarter
2021Adjusted non-interest income decreased approximately $1.3
million relative to the linked quarter to $30.3 million primarily
as a result of referral fees earned in the first quarter on second
round PPP loans of $1.8 million. Most other categories
benefited from increased customer activity and transaction volumes.
Other income declined $418 thousand, which was mainly due to lower
fees from our derivatives business.
In the second quarter of 2021, we realized a loss
of $80 thousand on sale of $17.1 million of available for
securities, compared to a gain of $719 thousand in the first
quarter of 2021.
5
Non-interest Expense
|
($ in thousands) |
For the three months ended |
|
Change % / bps |
| |
June 30, 2020 |
|
March 31, 2021 |
|
June 30, 2021 |
|
Y-o-Y |
|
Linked Qtr |
|
Compensation and benefits |
$ |
54,668 |
|
|
$ |
58,087 |
|
|
|
$ |
56,953 |
|
|
|
4.2 |
|
% |
|
(2.0 |
) |
% |
|
Stock-based compensation plans |
5,913 |
|
|
6,617 |
|
|
|
6,781 |
|
|
|
14.7 |
|
|
|
2.5 |
|
|
|
Occupancy and office operations |
14,695 |
|
|
14,515 |
|
|
|
13,875 |
|
|
|
(5.6 |
) |
|
|
(4.4 |
) |
|
| Information technology |
7,312 |
|
|
9,246 |
|
|
|
9,741 |
|
|
|
33.2 |
|
|
|
5.4 |
|
|
|
Professional fees |
5,458 |
|
|
7,077 |
|
|
|
7,561 |
|
|
|
38.5 |
|
|
|
6.8 |
|
|
| Amortization of intangible
assets |
4,200 |
|
|
3,776 |
|
|
|
3,776 |
|
|
|
(10.1 |
) |
|
|
— |
|
|
| FDIC insurance and regulatory
assessments |
3,638 |
|
|
3,230 |
|
|
|
2,344 |
|
|
|
(35.6 |
) |
|
|
(27.4 |
) |
|
| Other real estate owned
(“OREO”), net |
1,233 |
|
|
(68 |
) |
|
|
(72 |
) |
|
|
NM |
|
NM |
|
Merger-related expenses |
— |
|
|
— |
|
|
|
2,481 |
|
|
|
NM |
|
NM |
| Impairment related to
financial centers and real estate consolidation
strategy |
— |
|
|
633 |
|
|
|
475 |
|
|
|
NM |
|
(25.0 |
) |
|
| Loss on extinguishment of
borrowings |
9,723 |
|
|
— |
|
|
|
1,243 |
|
|
|
(87.2 |
) |
|
|
NM |
| Other expenses |
18,041 |
|
|
15,052 |
|
|
|
15,471 |
|
|
|
(14.2 |
) |
|
|
2.8 |
|
|
| Total non-interest
expense |
$ |
124,881 |
|
|
$ |
118,165 |
|
|
|
$ |
120,629 |
|
|
|
(3.4 |
) |
|
|
2.1 |
|
|
| Full time equivalent employees
(“FTEs”) at period end |
1,617 |
|
|
1,457 |
|
|
|
1,491 |
|
|
|
(7.8 |
) |
|
|
2.3 |
|
|
|
Financial centers at period end |
78 |
|
|
75 |
|
|
|
|
73 |
|
|
|
(6.4 |
) |
|
|
(2.7 |
) |
|
|
Operating efficiency ratio, as reported7 |
52.2 |
% |
|
47.2 |
|
% |
|
48.5 |
|
% |
|
(370 |
) |
|
|
130 |
|
|
|
Operating efficiency ratio, as adjusted7 |
45.1 |
|
|
44.3 |
|
|
|
44.1 |
|
|
|
(100 |
) |
|
|
(20 |
) |
|
|
7. See a reconciliation of non-GAAP financial measures beginning on
page 20. |
Second quarter 2021 compared with second quarter
2020 Total non-interest expense decreased $4.3 million relative to
the second quarter of 2020. Key components of the change in
non-interest expense between the periods include the following:
- Compensation and
benefits increased $2.3 million mainly due to an increase in
medical costs incurred and also due to an increase in the bonus
accrual compared to the year earlier period.
- Occupancy and
office operations expense decreased $820 thousand, mainly due to
the consolidation of financial centers and other back-office
locations.
- Information
technology expense increased $2.4 million mainly due to the
amortization of investments related to various back-office
automation and digital banking initiatives.
- Professional fees
increased $2.1 million mainly due to consulting fees incurred in
connection with our digital bank offering and launch of our Banking
as a Service products.
- Merger-related
expenses of $2.5 million were incurred in connection with our
pending merger with Webster, and included fees for a fairness
opinion, diligence and integration efforts to date.
- Loss on
extinguishment of borrowings in the second quarter of 2021 was
related to the repayment of the subordinated notes - Bank. The loss
in 2020 was related to the repayment of $500.0 million of FHLB
borrowings.
- Other expense in
2021 decreased $2.6 million mainly due to incremental costs
incurred in the year ago period associated with the pandemic, which
included charitable contributions, occupancy and compensation
expenses.
Second quarter 2021 compared with first quarter
2021Total non-interest expense increased $2.5 million to $120.6
million versus the linked quarter. The significant factors
contributing to the increase, were mentioned above and included
merger-related expenses and loss on extinguishment of borrowings.
Other key components of the change in non-interest expense include
the following:
- Compensation and
benefits decreased $1.1 million to $57.0 million in the second
quarter of 2021. The decrease was mainly due to lower payroll taxes
and employer contributions to benefit plans, which are usually
higher in the first quarter of the year compared to other
quarters.
- FDIC and regulatory
assessments declined based on improvements in the factors that
impact our FDIC insurance assessment.
6
- Other expenses
increased by $419 thousand versus the linked quarter, mainly due to
an increase in loan processing expenses associated with updated
appraisals and credit reports and an increase in investor relations
costs associated with our annual report and annual meeting.
Taxes
We recorded income tax expense of $24.5 million in
the second quarter of 2021, compared to income tax expense of
$23.0 million in the linked quarter and $7.1 million in the
prior year quarter. For the three months ended June 30, 2021,
we recorded income tax expense at an estimated effective income tax
rate of 20.0% compared to 18.8% for the three months ended
March 31, 2021. Based on performance year to date, we
increased our estimated effective income tax rate prior to discrete
items to 19.5% from 18.5%.
Key Balance Sheet Highlights as of
June 30, 2021
|
($ in thousands) |
As of |
|
Change % / bps |
| |
June 30, 2020 |
|
March 31, 2021 |
|
June 30, 2021 |
|
Y-o-Y |
|
Linked Qtr |
|
Total assets |
$ |
30,839,893 |
|
|
$ |
29,914,282 |
|
|
$ |
29,143,918 |
|
|
(5.5 |
) |
% |
|
(2.6 |
) |
% |
|
Total portfolio loans, gross |
22,295,267 |
|
|
21,151,973 |
|
|
20,724,097 |
|
|
(7.0 |
) |
|
|
(2.0 |
) |
|
| Commercial & industrial
(“C&I”) loans |
9,166,744 |
|
|
8,451,614 |
|
|
8,335,044 |
|
|
(9.1 |
) |
|
|
(1.4 |
) |
|
| Commercial real estate loans
(including multi-family) |
10,402,897 |
|
|
10,421,132 |
|
|
10,143,157 |
|
|
(2.5 |
) |
|
|
(2.7 |
) |
|
| Acquisition, development and
construction (“ADC”) loans |
572,558 |
|
|
618,295 |
|
|
690,224 |
|
|
20.6 |
|
|
|
11.6 |
|
|
|
Total commercial loans |
20,142,199 |
|
|
19,491,041 |
|
|
19,168,425 |
|
|
(4.8 |
) |
|
|
(1.7 |
) |
|
|
Residential mortgage loans |
1,938,212 |
|
|
1,486,597 |
|
|
1,389,294 |
|
|
(28.3 |
) |
|
|
(6.5 |
) |
|
|
Loan portfolio composition: |
|
|
|
|
|
|
|
|
|
| Commercial & industrial
(“C&I”) loans |
41.1 |
% |
|
40.0 |
% |
|
40.2 |
% |
|
(90 |
) |
|
|
20 |
|
|
| Commercial real estate loans
(including multi-family) |
46.6 |
|
|
49.3 |
|
|
49.0 |
|
|
240 |
|
|
|
(30 |
) |
|
| Acquisition, development and
construction (“ADC”) loans |
2.6 |
|
|
2.9 |
|
|
3.3 |
|
|
70 |
|
|
|
40 |
|
|
|
Residential and consumer |
9.7 |
|
|
7.8 |
|
|
7.5 |
|
|
(220 |
) |
|
|
(30 |
) |
|
|
BOLI |
$ |
620,908 |
|
|
$ |
630,430 |
|
|
$ |
635,411 |
|
|
2.3 |
|
|
|
0.8 |
|
|
|
Core deposits9 |
21,904,429 |
|
|
22,216,035 |
|
|
22,603,302 |
|
|
3.2 |
|
|
|
1.7 |
|
|
|
Total deposits |
23,600,621 |
|
|
23,841,718 |
|
|
23,146,711 |
|
|
(1.9 |
) |
|
|
(2.9 |
) |
|
|
Municipal deposits (included in core deposits) |
1,724,049 |
|
|
2,047,349 |
|
|
1,844,719 |
|
|
7.0 |
|
|
|
(9.9 |
) |
|
|
Investment securities, net |
4,545,579 |
|
|
4,241,457 |
|
|
4,366,470 |
|
|
(3.9 |
) |
|
|
2.9 |
|
|
| Investment securities, net to
earning assets |
16.7 |
% |
|
16.5 |
% |
|
17.2 |
% |
|
50 |
|
|
|
70 |
|
|
|
Total borrowings |
$ |
2,014,259 |
|
|
$ |
667,499 |
|
|
$ |
518,021 |
|
|
(74.3 |
) |
|
|
(22.4 |
) |
|
|
Loans to deposits |
94.5 |
% |
|
88.7 |
% |
|
89.5 |
% |
|
(500 |
) |
|
|
80 |
|
|
| Core deposits9 to total
deposits |
92.8 |
|
|
93.2 |
|
|
97.7 |
|
|
490 |
|
|
|
450 |
|
|
9 Core deposits include retail, commercial and
municipal transaction, money market, savings accounts and
certificates of deposit accounts, and reciprocal Certificate of
Deposit Account Registry balances and exclude brokered and
wholesale deposits.
Highlights related to balance sheet items as of
June 30, 2021 were the following:
- C&I loans and
commercial real estate loans represented 89.2% of our loan
portfolio at June 30, 2021 compared to 87.7% a year ago.
C&I loans includes traditional C&I, PPP, asset-based
lending, payroll finance, warehouse lending, factored receivables,
equipment financing and public sector finance loans.
- In the second
quarter of 2021, we sold $122.5 million of commercial real
estate loans which were mostly rated substandard or special
mention. We recorded charge-offs of $11.7 million against the
allowance for credit losses - loans to reduce the carrying value of
loans to fair value.
- Commercial loans
declined $322.6 million in the second quarter, which was
mainly due to a $165.4 million decline in mortgage warehouse
loans, a $167.7 million decline in CRE and a $110.2 million
multi-family loans, which together were also the primary driver of
the decline in total portfolio loans.
7
- Residential
mortgage loans were $1.4 billion at June 30, 2021, a decline
of $97.3 million from the linked quarter, and a decline of $548.9
million from the same period a year ago. The decline was mainly due
to repayments, and as compared to the same period a year ago, also
reflected our sale in the third quarter of 2020 of non-performing
residential mortgage loans with a net book value of $53.2
million.
- Core deposits at
June 30, 2021 were $22.6 billion, an increase of $387.3
million compared to March 31, 2021, and an increase of $698.9
million compared to June 30, 2020. A significant driver of the
increase versus the linked quarter is related to our determination
that certain deposits, totaling $520.9 million, that were
previously classified as brokered can be reported as non-brokered,
core deposits under the “primary purpose exception” of the relevant
regulatory guidance. The growth in core deposits on an annual basis
is a result both of our successful deposit gathering strategies as
well as the increase in liquidity in the banking system overall,
from government stimulus and other measures implemented in response
to the economic downturn.
- Certificate of
deposit accounts declined $163.5 million as higher costing balances
matured and were not renewed. Compared to June 30, 2020,
certificate of deposit accounts declined $859.0 million.
- Municipal deposits
at June 30, 2021 were $1.8 billion, a decrease of $202.6
million relative to March 31, 2021. Municipal deposits
generally decline in the second quarter of the year as tax receipts
are used by local municipalities.
- Investment
securities, net increased by $125.0 million from March 31,
2021 and decreased $179.1 million from June 30, 2020,
representing 17.2% of earning assets at June 30, 2021. In the
second quarter of 2021, the increase in investment securities
included the purchase of US Treasury and corporate securities in
response to the significant levels of excess liquidity generated by
deposit inflows and the contraction in our loan portfolio.
- Total borrowings at
June 30, 2021 were $518.0 million, a decrease of $149.5
million relative to March 31, 2021, and a decrease of $1.5
billion relative to June 30, 2020. As compared to 2020, the
decline was mainly a result of the repayments of higher costing
FHLB borrowings.
- On April 1, 2021,
we redeemed the remaining balance of subordinated notes - Bank with
a principal balance of $145.0 million at March 31, 2021 and coupon
interest rate of 5.25%.
Credit Quality
|
($ in thousands) |
For the three months ended |
|
Change % / bps |
| |
June 30, 2020 |
|
March 31, 2021 |
|
June 30, 2021 |
|
Y-o-Y |
|
Linked Qtr |
|
Provision for credit losses - loans |
$ |
56,606 |
|
|
$ |
10,000 |
|
|
$ |
6,000 |
|
|
(89.4 |
) |
% |
|
(40.0 |
) |
% |
|
Net charge-offs |
17,561 |
|
|
12,914 |
|
|
14,313 |
|
|
(18.5 |
) |
|
|
10.8 |
|
|
| ACL - loans |
365,489 |
|
|
323,186 |
|
|
314,873 |
|
|
(13.8 |
) |
|
|
(2.6 |
) |
|
| Loans 30 to 89 days past due,
accruing |
66,268 |
|
|
42,165 |
|
|
39,476 |
|
|
(40.4 |
) |
|
|
(6.4 |
) |
|
| Non-performing loans |
260,605 |
|
|
168,557 |
|
|
173,319 |
|
|
(33.5 |
) |
|
|
2.8 |
|
|
| Annualized net charge-offs to
average loans |
0.32 |
% |
|
0.25 |
% |
|
0.28 |
% |
|
(4 |
) |
|
|
3 |
|
|
|
Special mention loans |
$ |
141,805 |
|
|
$ |
494,452 |
|
|
$ |
388,535 |
|
|
174.0 |
|
|
|
(21.4 |
) |
|
|
Substandard loans |
415,917 |
|
|
590,109 |
|
|
611,805 |
|
|
47.1 |
|
|
|
3.7 |
|
|
|
Total criticized and classified loans |
557,722 |
|
|
1,084,856 |
|
|
1,004,940 |
|
|
80.2 |
|
|
|
(7.4 |
) |
|
| ACL - loans to total
loans |
1.64 |
% |
|
1.53 |
% |
|
1.52 |
% |
|
(12 |
) |
|
|
(1 |
) |
|
| ACL - loans to non-performing
loans |
140.2 |
|
|
191.7 |
|
|
181.7 |
|
|
4,150 |
|
|
|
(1,000 |
) |
|
For the three months ended June 30, 2021, provision
for credit losses on portfolio loans was $6.0 million. The
provision for credit losses is based on our reasonable and
supportable forecasts of expected future losses inherent in our
portfolio.
Net charge-offs were $14.3 million in the second
quarter of 2021, and consisted of $11.7 million in charge-offs
related to the sale of $122.5 million of CRE and multi-family
loans, most of which were rated special mention or substandard, and
$2.6 million of other net charge-offs.
Non-performing loans increased by $4.8 million to
$173.3 million at June 30, 2021 compared to the linked
quarter. Loans 30 to 89 days past due were $39.5 million, a
decrease of $2.7 million from the linked quarter.
Special mention loans decreased by $105.9 million
versus the linked quarter, with five relationships accounting for
$90.2 million of exposure upgraded to pass grade in the quarter,
two relationships for $57.9 million that were downgraded to
substandard and two loans for $7.8 million sold as part of our
second quarter note sale. These decreases in the balance of
8
special mention loans were partially offset by two
new downgrades into special mention accounting for $39.3 million
and one upgrade to special mention from substandard accounting for
$14.7 million.
Substandard loans increased $21.7 million versus
the linked quarter. This included eight multifamily loans that
previously requested forbearance under the CARES Act, where, at the
conclusion of the forbearance period we determined that it was
appropriate to downgrade the loans to a substandard rating, and one
C&I loan downgraded to substandard for $24.5 million, partially
offset by the impact of our second quarter note sale, which
included $79.3 million of substandard rated loans.
Total criticized and classified loans were $1.0
billion a decrease of $79.9 million relative to the linked
quarter.
As of June 30, 2021, loan payment deferrals
were $109.8 million, or 0.5% of the total portfolio loans.
For additional information on our credit quality
metrics including delinquency, criticized and classified, see page
17, “Asset Quality Information by Portfolio”.
Capital
| ($ in thousands, except share
and per share data) |
As of |
|
Change % / bps |
| |
June 30, 2020 |
|
March 31, 2021 |
|
June 30, 2021 |
|
Y-o-Y |
|
Linked Qtr |
|
Total stockholders’ equity |
$ |
4,484,187 |
|
|
$ |
4,620,164 |
|
|
$ |
4,722,856 |
|
|
5.3 |
|
% |
|
2.2 |
|
% |
| Preferred stock |
137,142 |
|
|
136,458 |
|
|
136,224 |
|
|
(0.7 |
) |
|
|
(0.2 |
) |
|
| Goodwill and other intangible
assets |
1,785,446 |
|
|
1,773,270 |
|
|
1,769,494 |
|
|
(0.9 |
) |
|
|
(0.2 |
) |
|
| Tangible common stockholders’
equity 10 |
$ |
2,561,599 |
|
|
$ |
2,710,436 |
|
|
$ |
2,817,138 |
|
|
10.0 |
|
|
|
3.9 |
|
|
|
Common shares outstanding |
194,458,805 |
|
|
192,567,901 |
|
|
192,715,433 |
|
|
(0.9 |
) |
|
|
0.1 |
|
|
|
Book value per common share |
$ |
22.35 |
|
|
$ |
23.28 |
|
|
$ |
23.80 |
|
|
6.5 |
|
|
|
2.2 |
|
|
| Tangible book value per common
share 10 |
13.17 |
|
|
14.08 |
|
|
14.62 |
|
|
11.0 |
|
|
|
3.8 |
|
|
| Tangible common equity as a %
of tangible assets 10 |
8.82 |
% |
|
9.63 |
% |
|
10.29 |
% |
|
147 |
|
|
|
66 |
|
|
|
Est. Tier 1 leverage ratio - Company |
9.51 |
|
|
10.50 |
|
|
10.91 |
|
|
140 |
|
|
|
41 |
|
|
|
Est. Tier 1 leverage ratio - Company fully implemented |
9.14 |
|
|
10.15 |
|
|
10.55 |
|
|
141 |
|
|
|
40 |
|
|
| Est. Tier 1 leverage ratio -
Bank |
10.09 |
|
|
11.76 |
|
|
12.10 |
|
|
201 |
|
|
|
34 |
|
|
|
Est. Tier 1 leverage ratio - Bank fully implemented |
9.69 |
|
|
11.42 |
|
|
11.74 |
|
|
205 |
|
|
|
32 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
10 See a reconciliation of non-GAAP financial measures beginning on
page 20. |
Total stockholders’ equity increased $102.7 million
to $4.7 billion versus the linked quarter as a result of net income
of $98.3 million, stock-based compensation of $6.8 million, stock
option exercises and other stock activity of $1.9 million and other
comprehensive income of $11.3 million, partially offset by common
dividends of $13.4 million, and preferred dividends of $2.2
million.
We elected the five-year transition provision to
delay for two years the full impact on regulatory capital of our
adoption of the Current Expected Credit Loss (“CECL”) accounting
standard, followed by a three-year transition period. The
June 30, 2021 fully implemented ratio data reflects the full
impact of CECL and excludes the benefits of phase-ins.
Tangible book value per common share was $14.62 at
June 30, 2021, which represented an increase of 11.0% compared
to a year ago.
Conference Call
InformationSterling Bancorp will host a teleconference and
webcast on Thursday, July 22, 2021 at 8:00 AM Eastern Time to
discuss the Company’s results. Analysts, investors and interested
parties are invited to listen to the webcast and view accompanying
slides on the Company’s website at www.sterlingbancorp.com or by
dialing (800) 263-0877 Conference ID 3008771. A replay of the
teleconference can be accessed through the Company’s website.
About Sterling BancorpSterling
Bancorp, whose principal subsidiary is Sterling National Bank,
specializes in the delivery of services and solutions to business
owners, their families and consumers within the communities it
serves through teams of dedicated and experienced relationship
managers. Sterling National Bank offers a complete line of
commercial, business, and consumer banking products and services.
For more information, visit the Sterling Bancorp website at
www.sterlingbancorp.com.
9
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS This
release may contain certain forward-looking statements, including,
but not limited to, certain plans, expectations, goals,
projections, and statements about the Company and the benefits of
the proposed transaction, between Webster and the Company, the
plans, objectives, expectations and intentions of Webster and the
Company, the expected timing of completion of the transaction, and
other statements that are not historical fact. Such statements are
subject to numerous assumptions, risks, and uncertainties.
Statements that do not describe historical or current facts,
including statements about beliefs and expectations, are
forward-looking statements. Forward-looking statements may be
identified by words such as expect, anticipate, believe, intend,
estimate, plan, target, goal, or similar expressions, or future or
conditional verbs such as will, may, might, should, would, could,
or similar variations. The forward-looking statements are intended
to be subject to the safe harbor provided by Section 27A of the
Securities Act of 1933, Section 21E of the Securities Exchange Act
of 1934, and the Private Securities Litigation Reform Act of
1995.
While there is no assurance that any list of risks
and uncertainties or risk factors is complete, below are certain
factors which could cause actual results to differ materially from
those contained or implied in the forward-looking statements:
changes in general economic, political, or industry conditions; the
magnitude and duration of the COVID-19 pandemic and its impact on
the global economy and financial market conditions and our
business, results of operations, and financial condition;
uncertainty in U.S. fiscal and monetary policy, including the
interest rate policies of the Federal Reserve Board; volatility and
disruptions in global capital and credit markets; movements in
interest rates; reform of LIBOR; competitive pressures on product
pricing and services; success, impact, and timing of our business
strategies, including market acceptance of any new products or
services; the nature, extent, timing, and results of governmental
actions, examinations, reviews, reforms, regulations, and
interpretations, including those related to the Dodd-Frank Wall
Street Reform and Consumer Protection Act and the Basel III
regulatory capital reforms, as well as those involving the OCC,
Federal Reserve, FDIC, and CFPB; the occurrence of any event,
change or other circumstances that could give rise to the right of
one or both of the parties to terminate the merger agreement
between Webster and the Company; the outcome of any legal
proceedings that may be instituted against Webster or the Company;
delays in completing the transaction; the failure to obtain
necessary regulatory approvals (and the risk that such approvals
may result in the imposition of conditions that could adversely
affect the combined company or the expected benefits of the
transaction); the failure to obtain stockholder approvals or to
satisfy any of the other conditions to the transaction on a timely
basis or at all; the possibility that the anticipated benefits of
the transaction are not realized when expected or at all, including
as a result of the impact of, or problems arising from, the
integration of the two companies or as a result of the strength of
the economy and competitive factors in the areas where Webster and
the Company do business; the possibility that the transaction may
be more expensive to complete than anticipated, including as a
result of unexpected factors or events; diversion of management's
attention from ongoing business operations and opportunities;
potential adverse reactions or changes to business or employee
relationships, including those resulting from the announcement or
completion of the transaction; the ability to complete the
transaction and integration of Webster and the Company
successfully; the dilution caused by Webster’s issuance of
additional shares of its capital stock in connection with the
transaction; and other factors that may affect the future results
of Webster and the Company. Additional factors that could cause
results to differ materially from those described above can be
found in Webster’s Annual Report on Form 10-K for the year ended
December 31, 2020, which is on file with the Securities and
Exchange Commission (the “SEC”) and available on Webster’s investor
relations website, https://webster.gcs-web.com/, under the heading
“Financials” and in other documents Webster files with the SEC, and
in the Company's Annual Report on Form 10-K for the year ended
December 31, 2020, which is on file with the SEC and available on
the Company's investor relations website,
https://sterlingbank.gcs-web.com/investor-relations, under the
heading "Financials" and in other documents the Company files with
the SEC.
All forward-looking statements speak only as of the
date they are made and are based on information available at that
time. Neither Webster nor the Company assumes any obligation to
update forward-looking statements to reflect circumstances or
events that occur after the date the forward-looking statements
were made or to reflect the occurrence of unanticipated events
except as required by federal securities laws. As forward-looking
statements involve significant risks and uncertainties, caution
should be exercised against placing undue reliance on such
statements.
Financial information contained in this release
should be considered to be an estimate pending the filing with the
Securities and Exchange Commission of the Company’s Quarterly
Report on Form 10-Q for the six months ended June 30, 2021. While
the Company is not aware of any need to revise the results
disclosed in this release, accounting literature may require
information received by management between the date of this release
and the filing of the Quarterly Report on Form 10-Q to be reflected
in the results of the fiscal period, even though the new
information was received by management subsequent to the date of
this release.
IMPORTANT ADDITIONAL INFORMATIONIn connection with
the proposed transaction, Webster filed with the SEC a Registration
Statement on Form S-4 that included a
10
Joint Proxy Statement of Webster and the Company
and a Prospectus of Webster , as well as other relevant documents
concerning the proposed transaction. Webster and the Company
commenced mailing the Joint Proxy Statement/Prospectus to
stockholders on or about July 8, 2021. The proposed transaction
involving Webster and the Company will be submitted to the
Company's stockholders and Webster's stockholders for their
consideration. This communication does not constitute an offer to
sell or the solicitation of an offer to buy any securities or a
solicitation of any vote or approval, nor shall there be any sale
of securities in any jurisdiction in which such offer, solicitation
or sale would be unlawful prior to registration or qualification
under the securities laws of any such jurisdiction. INVESTORS AND
STOCKHOLDERS OF WEBSTER AND STOCKHOLDERS OF THE COMPANY ARE URGED
TO READ THE REGISTRATION STATEMENT AND THE JOINT PROXY
STATEMENT/PROSPECTUS REGARDING THE TRANSACTION AND ANY OTHER
RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR
SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT
INFORMATION. Stockholders may obtain a free copy of the definitive
joint proxy statement/prospectus, as well as other filings
containing information about Webster and the Company, without
charge, at the SEC's website (http://www.sec.gov). Copies of the
joint proxy statement/prospectus and the filings with the SEC that
will be incorporated by reference in the joint proxy
statement/prospectus can also be obtained, without charge, by
directing a request to Kristen Manginelli, Director of Investor
Relations, Webster Financial Corporation, 145 Bank Street,
Waterbury, Connecticut 06702, (203) 578-2202 or to Emlen Harmon,
Senior Managing Director, Investor Relations, Sterling Bancorp, Two
Blue Hill Plaza, Second Floor, Pearl River, New York 10965, (845)
369-8040.
PARTICIPANTS IN THE SOLICITATIONWebster, the
Company, and certain of their respective directors and executive
officers may be deemed to be participants in the solicitation of
proxies from the stockholders of Webster and the Company in
connection with the proposed transaction under the rules of the
SEC. Information regarding Webster’s directors and executive
officers is available in its definitive proxy statement relating to
its 2021 Annual Meeting of Shareholders, which was filed with the
SEC on March 19, 2021, and other documents filed by Webster with
the SEC. Information regarding Sterling’s directors and executive
officers is available in its definitive proxy statement relating to
its 2021 Annual Meeting of Stockholders, which was filed with the
SEC on April 14, 2021, and other documents filed by Sterling with
the SEC. Other information regarding the participants in the proxy
solicitation and a description of their direct and indirect
interests, by security holdings or otherwise, will be contained in
the joint proxy statement/prospectus and other relevant materials
filed with the SEC. Free copies of this document may be obtained as
described in the preceding paragraph.
11
Sterling Bancorp and SubsidiariesCONSOLIDATED CONDENSED
STATEMENTS OF FINANCIAL CONDITION (unaudited, in thousands,
except share and per share data)
| |
June 30, 2020 |
|
December 31, 2020 |
|
June 30, 2021 |
|
Assets: |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
324,729 |
|
|
|
$ |
305,002 |
|
|
|
$ |
487,409 |
|
|
|
Investment securities, net |
4,545,579 |
|
|
|
4,039,456 |
|
|
|
4,366,470 |
|
|
|
Loans held for sale |
44,437 |
|
|
|
11,749 |
|
|
|
19,088 |
|
|
|
Portfolio loans: |
|
|
|
|
|
|
Commercial and industrial (“C&I”) |
9,166,744 |
|
|
|
9,160,268 |
|
|
|
8,335,044 |
|
|
|
Commercial real estate (including multi-family) |
10,402,897 |
|
|
|
10,238,650 |
|
|
|
10,143,157 |
|
|
|
Acquisition, development and construction (“ADC”) loans |
572,558 |
|
|
|
642,943 |
|
|
|
690,224 |
|
|
|
Residential mortgage |
1,938,212 |
|
|
|
1,616,641 |
|
|
|
1,389,294 |
|
|
|
Consumer |
214,856 |
|
|
|
189,907 |
|
|
|
166,378 |
|
|
|
Total portfolio loans, gross |
22,295,267 |
|
|
|
21,848,409 |
|
|
|
20,724,097 |
|
|
|
ACL - loans |
(365,489 |
) |
|
|
(326,100 |
) |
|
|
(314,873 |
) |
|
|
Total portfolio loans, net |
21,929,778 |
|
|
|
21,522,309 |
|
|
|
20,409,224 |
|
|
| FHLB and Federal Reserve Bank
Stock, at cost |
193,666 |
|
|
|
166,190 |
|
|
|
151,443 |
|
|
|
Accrued interest receivable |
101,296 |
|
|
|
97,505 |
|
|
|
96,728 |
|
|
|
Premises and equipment, net |
226,728 |
|
|
|
202,555 |
|
|
|
204,632 |
|
|
|
Goodwill |
1,683,482 |
|
|
|
1,683,482 |
|
|
|
1,683,482 |
|
|
|
Other intangibles |
101,964 |
|
|
|
93,564 |
|
|
|
86,012 |
|
|
|
BOLI |
620,908 |
|
|
|
629,576 |
|
|
|
635,411 |
|
|
|
Other real estate owned |
8,665 |
|
|
|
5,347 |
|
|
|
816 |
|
|
|
Other assets |
1,058,661 |
|
|
|
1,063,403 |
|
|
|
1,003,203 |
|
|
|
Total assets |
$ |
30,839,893 |
|
|
|
$ |
29,820,138 |
|
|
|
$ |
29,143,918 |
|
|
|
Liabilities: |
|
|
|
|
|
|
Deposits |
$ |
23,600,621 |
|
|
|
$ |
23,119,522 |
|
|
|
$ |
23,146,711 |
|
|
|
FHLB borrowings |
975,058 |
|
|
|
382,000 |
|
|
|
— |
|
|
|
Federal Funds Purchased |
— |
|
|
|
277,000 |
|
|
|
— |
|
|
|
Paycheck Protection Program Lending Facility |
568,350 |
|
|
|
— |
|
|
|
— |
|
|
|
Other borrowings |
26,448 |
|
|
|
27,101 |
|
|
|
25,802 |
|
|
|
Subordinated notes - Company |
271,096 |
|
|
|
491,910 |
|
|
|
492,219 |
|
|
|
Subordinated notes - Bank |
173,307 |
|
|
|
143,703 |
|
|
|
— |
|
|
|
Mortgage escrow funds |
69,686 |
|
|
|
59,686 |
|
|
|
66,521 |
|
|
|
Other liabilities |
671,140 |
|
|
|
728,702 |
|
|
|
689,809 |
|
|
|
Total liabilities |
26,355,706 |
|
|
|
25,229,624 |
|
|
|
24,421,062 |
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
Preferred stock |
137,142 |
|
|
|
136,689 |
|
|
|
136,224 |
|
|
|
Common stock |
2,299 |
|
|
|
2,299 |
|
|
|
2,299 |
|
|
|
Additional paid-in capital |
3,755,474 |
|
|
|
3,761,993 |
|
|
|
3,753,068 |
|
|
|
Treasury stock |
(660,223 |
) |
|
|
(686,911 |
) |
|
|
(696,711 |
) |
|
|
Retained earnings |
1,160,885 |
|
|
|
1,291,628 |
|
|
|
1,459,077 |
|
|
|
Accumulated other comprehensive income |
88,610 |
|
|
|
84,816 |
|
|
|
68,899 |
|
|
|
Total stockholders’ equity |
4,484,187 |
|
|
|
4,590,514 |
|
|
|
4,722,856 |
|
|
|
Total liabilities and stockholders’ equity |
$ |
30,839,893 |
|
|
|
$ |
29,820,138 |
|
|
|
$ |
29,143,918 |
|
|
| |
|
|
|
|
|
|
Shares of common stock outstanding at period end |
194,458,805 |
|
|
|
192,923,371 |
|
|
|
192,715,433 |
|
|
|
Book value per common share |
$ |
22.35 |
|
|
|
$ |
23.09 |
|
|
|
$ |
23.80 |
|
|
|
Tangible book value per common share1 |
13.17 |
|
|
|
13.87 |
|
|
|
14.62 |
|
|
|
1 See reconciliation of non-GAAP financial measures beginning on
page 20. |
12
Sterling Bancorp and SubsidiariesCONSOLIDATED INCOME
STATEMENTS(unaudited, in thousands, except share and per share
data)
| |
For the Quarter Ended |
|
For the Six Months Ended |
| |
30-Jun-20 |
|
31-Mar-21 |
|
30-Jun-21 |
|
30-Jun-20 |
|
30-Jun-21 |
| Interest and
dividend income: |
|
|
|
|
|
|
|
|
|
|
Loans and loan fees |
$ |
219,904 |
|
|
$ |
205,855 |
|
|
$ |
201,685 |
|
|
$ |
455,343 |
|
|
$ |
407,540 |
|
|
Securities taxable |
18,855 |
|
|
15,352 |
|
|
15,749 |
|
|
39,484 |
|
|
31,101 |
|
|
Securities non-taxable |
12,831 |
|
|
11,738 |
|
|
11,718 |
|
|
25,828 |
|
|
23,456 |
|
|
Other earning assets |
1,636 |
|
|
902 |
|
|
1,158 |
|
|
6,098 |
|
|
2,060 |
|
|
Total interest and dividend income |
253,226 |
|
|
233,847 |
|
|
230,310 |
|
|
526,753 |
|
|
464,157 |
|
| Interest
expense: |
|
|
|
|
|
|
|
|
|
|
Deposits |
28,110 |
|
|
8,868 |
|
|
6,698 |
|
|
73,891 |
|
|
15,566 |
|
|
Borrowings |
11,817 |
|
|
7,065 |
|
|
5,085 |
|
|
27,791 |
|
|
12,150 |
|
| Total
interest expense |
39,927 |
|
|
15,933 |
|
|
11,783 |
|
|
101,682 |
|
|
27,716 |
|
| Net interest
income |
213,299 |
|
|
217,914 |
|
|
218,527 |
|
|
425,071 |
|
|
436,441 |
|
|
Provision for credit losses - loans |
56,606 |
|
|
10,000 |
|
|
6,000 |
|
|
193,183 |
|
|
16,000 |
|
|
Provision for credit losses - held to maturity securities |
— |
|
|
— |
|
|
(750 |
) |
|
1,703 |
|
|
(750 |
) |
| Net interest
income after provision for credit losses |
156,693 |
|
|
207,914 |
|
|
213,277 |
|
|
230,185 |
|
|
421,191 |
|
| Non-interest
income: |
|
|
|
|
|
|
|
|
|
|
Deposit fees and service charges |
5,345 |
|
|
6,563 |
|
|
7,096 |
|
|
11,968 |
|
|
13,659 |
|
|
Accounts receivable management / factoring commissions and other
related fees |
4,419 |
|
|
5,426 |
|
|
5,491 |
|
|
9,956 |
|
|
10,917 |
|
|
BOLI |
4,950 |
|
|
4,955 |
|
|
4,981 |
|
|
9,967 |
|
|
9,936 |
|
|
Loan commissions and fees |
8,003 |
|
|
10,477 |
|
|
8,762 |
|
|
19,028 |
|
|
19,239 |
|
|
Investment management fees |
1,379 |
|
|
1,852 |
|
|
2,018 |
|
|
3,225 |
|
|
3,870 |
|
|
Net gain (loss) on sale of securities |
485 |
|
|
719 |
|
|
(80 |
) |
|
8,896 |
|
|
639 |
|
|
Net gain on security calls |
— |
|
|
— |
|
|
— |
|
|
4,880 |
|
|
— |
|
|
Other |
1,509 |
|
|
2,364 |
|
|
1,946 |
|
|
5,496 |
|
|
4,310 |
|
| Total
non-interest income |
26,090 |
|
|
32,356 |
|
|
30,214 |
|
|
73,416 |
|
|
62,570 |
|
| Non-interest
expense: |
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
54,668 |
|
|
58,087 |
|
|
56,953 |
|
|
109,544 |
|
|
115,040 |
|
|
Stock-based compensation plans |
5,913 |
|
|
6,617 |
|
|
6,781 |
|
|
11,919 |
|
|
13,398 |
|
|
Occupancy and office operations |
14,695 |
|
|
14,515 |
|
|
13,875 |
|
|
29,894 |
|
|
28,390 |
|
|
Information technology |
7,312 |
|
|
9,246 |
|
|
9,741 |
|
|
15,330 |
|
|
18,987 |
|
|
Professional fees |
5,458 |
|
|
7,077 |
|
|
7,561 |
|
|
11,207 |
|
|
14,638 |
|
|
Amortization of intangible assets |
4,200 |
|
|
3,776 |
|
|
3,776 |
|
|
8,400 |
|
|
7,552 |
|
|
FDIC insurance and regulatory assessments |
3,638 |
|
|
3,230 |
|
|
2,344 |
|
|
6,844 |
|
|
5,574 |
|
|
Other real estate owned, net |
1,233 |
|
|
(68 |
) |
|
(72 |
) |
|
1,285 |
|
|
(140 |
) |
|
Merger-related expenses |
— |
|
|
— |
|
|
2,481 |
|
|
— |
|
|
2,481 |
|
|
Impairment related to financial centers and real estate
consolidation strategy |
— |
|
|
633 |
|
|
475 |
|
|
— |
|
|
1,108 |
|
|
Loss on extinguishment of borrowings |
9,723 |
|
|
— |
|
|
1,243 |
|
|
10,476 |
|
|
1,243 |
|
|
Other |
18,041 |
|
|
15,052 |
|
|
15,471 |
|
|
34,695 |
|
|
30,523 |
|
| Total
non-interest expense |
124,881 |
|
|
118,165 |
|
|
120,629 |
|
|
239,594 |
|
|
238,794 |
|
| Income
before income tax expense |
57,902 |
|
|
122,105 |
|
|
122,862 |
|
|
64,007 |
|
|
244,967 |
|
| Income tax
expense (benefit) |
7,110 |
|
|
22,955 |
|
|
24,523 |
|
|
(932 |
) |
|
47,478 |
|
| Net
income |
50,792 |
|
|
99,150 |
|
|
98,339 |
|
|
64,939 |
|
|
197,489 |
|
| Preferred
stock dividend |
1,972 |
|
|
1,963 |
|
|
1,959 |
|
|
3,948 |
|
|
3,922 |
|
| Net income
available to common stockholders |
$ |
48,820 |
|
|
$ |
97,187 |
|
|
$ |
96,380 |
|
|
$ |
60,991 |
|
|
$ |
193,567 |
|
| Weighted
average common shares: |
|
|
|
|
|
|
|
|
|
|
Basic |
193,479,757 |
|
|
191,890,512 |
|
|
191,436,885 |
|
|
194,909,498 |
|
|
191,655,897 |
|
|
Diluted |
193,604,431 |
|
|
192,621,907 |
|
|
192,292,989 |
|
|
195,168,557 |
|
|
192,456,817 |
|
| Earnings per
common share: |
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
$ |
0.25 |
|
|
$ |
0.51 |
|
|
$ |
0.50 |
|
|
$ |
0.31 |
|
|
$ |
1.01 |
|
|
Diluted earnings per share |
0.25 |
|
|
0.50 |
|
|
0.50 |
|
|
0.31 |
|
|
1.01 |
|
|
Dividends declared per share |
0.07 |
|
|
0.07 |
|
|
0.07 |
|
|
0.14 |
|
|
0.14 |
|
13
Sterling Bancorp and SubsidiariesSELECTED FINANCIAL
DATA(unaudited, in thousands, except share and per share data)
| |
As of and
for the Quarter Ended |
| End
of Period |
June 30, 2020 |
|
September 30, 2020 |
|
December 31, 2020 |
|
March 31, 2021 |
|
June 30, 2021 |
|
Total assets |
$ |
30,839,893 |
|
|
$ |
30,617,722 |
|
|
$ |
29,820,138 |
|
|
$ |
29,914,282 |
|
|
$ |
29,143,918 |
|
| Tangible
assets 1 |
29,054,447 |
|
|
28,836,476 |
|
|
28,043,092 |
|
|
28,141,012 |
|
|
27,374,424 |
|
| Securities
available for sale |
2,620,624 |
|
|
2,419,458 |
|
|
2,298,618 |
|
|
2,524,671 |
|
|
2,671,000 |
|
| Securities
held to maturity, net |
1,924,955 |
|
|
1,781,892 |
|
|
1,740,838 |
|
|
1,716,786 |
|
|
1,695,470 |
|
| Loans held
for sale2 |
44,437 |
|
|
36,826 |
|
|
11,749 |
|
|
36,237 |
|
|
19,088 |
|
| Portfolio
loans |
22,295,267 |
|
|
22,281,940 |
|
|
21,848,409 |
|
|
21,151,973 |
|
|
20,724,097 |
|
|
Goodwill |
1,683,482 |
|
|
1,683,482 |
|
|
1,683,482 |
|
|
1,683,482 |
|
|
1,683,482 |
|
| Other
intangibles |
101,964 |
|
|
97,764 |
|
|
93,564 |
|
|
89,788 |
|
|
86,012 |
|
|
Deposits |
23,600,621 |
|
|
24,255,333 |
|
|
23,119,522 |
|
|
23,841,718 |
|
|
23,146,711 |
|
| Municipal
deposits (included above) |
1,724,049 |
|
|
2,397,072 |
|
|
1,648,945 |
|
|
2,047,349 |
|
|
1,844,719 |
|
|
Borrowings |
2,014,259 |
|
|
993,535 |
|
|
1,321,714 |
|
|
667,499 |
|
|
518,021 |
|
|
Stockholders’ equity |
4,484,187 |
|
|
4,557,785 |
|
|
4,590,514 |
|
|
4,620,164 |
|
|
4,722,856 |
|
| Tangible
common equity 1 |
2,561,599 |
|
|
2,639,622 |
|
|
2,676,779 |
|
|
2,710,436 |
|
|
2,817,138 |
|
|
Quarterly Average Balances |
|
|
|
|
|
|
|
|
|
| Total
assets |
30,732,914 |
|
|
30,652,856 |
|
|
30,024,165 |
|
|
29,582,605 |
|
|
29,390,977 |
|
| Tangible
assets 1 |
28,944,714 |
|
|
28,868,840 |
|
|
28,244,364 |
|
|
27,806,859 |
|
|
27,619,006 |
|
| Loans,
gross: |
|
|
|
|
|
|
|
|
|
|
Commercial real estate (includes multi-family) |
10,404,643 |
|
|
10,320,930 |
|
|
10,191,707 |
|
|
10,283,292 |
|
|
10,331,355 |
|
|
ADC |
519,517 |
|
|
636,061 |
|
|
685,368 |
|
|
624,259 |
|
|
645,094 |
|
|
C&I: |
|
|
|
|
|
|
|
|
|
|
Traditional C&I (includes PPP loans) |
3,130,248 |
|
|
3,339,872 |
|
|
3,155,851 |
|
|
2,917,721 |
|
|
2,918,285 |
|
|
Asset-based lending3 |
981,518 |
|
|
864,075 |
|
|
876,377 |
|
|
751,861 |
|
|
713,428 |
|
|
Payroll finance3 |
173,175 |
|
|
143,579 |
|
|
162,762 |
|
|
146,839 |
|
|
151,333 |
|
|
Warehouse lending3 |
1,353,885 |
|
|
1,550,425 |
|
|
1,637,507 |
|
|
1,546,947 |
|
|
1,203,374 |
|
|
Factored receivables3 |
188,660 |
|
|
163,388 |
|
|
214,021 |
|
|
224,845 |
|
|
215,590 |
|
|
Equipment financing3 |
1,677,273 |
|
|
1,590,855 |
|
|
1,535,582 |
|
|
1,474,993 |
|
|
1,412,812 |
|
|
Public sector finance3 |
1,286,265 |
|
|
1,481,260 |
|
|
1,532,899 |
|
|
1,583,066 |
|
|
1,654,370 |
|
|
Total C&I |
8,791,024 |
|
|
9,133,454 |
|
|
9,114,999 |
|
|
8,646,272 |
|
|
8,269,192 |
|
|
Residential mortgage |
2,006,400 |
|
|
1,862,390 |
|
|
1,691,567 |
|
|
1,558,266 |
|
|
1,427,055 |
|
|
Consumer |
219,052 |
|
|
206,700 |
|
|
195,870 |
|
|
182,461 |
|
|
170,965 |
|
| Loans,
total4 |
21,940,636 |
|
|
22,159,535 |
|
|
21,879,511 |
|
|
21,294,550 |
|
|
20,843,661 |
|
| Securities
(taxable) |
2,507,384 |
|
|
2,363,059 |
|
|
2,191,333 |
|
|
2,103,768 |
|
|
2,378,213 |
|
| Securities
(non-taxable) |
2,122,672 |
|
|
2,029,805 |
|
|
1,964,451 |
|
|
1,951,210 |
|
|
1,943,913 |
|
| Other
interest earning assets |
669,422 |
|
|
610,938 |
|
|
487,696 |
|
|
800,204 |
|
|
803,148 |
|
| Total
interest earning assets |
27,240,114 |
|
|
27,163,337 |
|
|
26,522,991 |
|
|
26,149,732 |
|
|
25,968,935 |
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing demand |
5,004,907 |
|
|
5,385,939 |
|
|
5,530,334 |
|
|
5,521,538 |
|
|
5,747,679 |
|
|
Interest bearing demand |
4,766,298 |
|
|
4,688,343 |
|
|
4,870,544 |
|
|
4,981,415 |
|
|
4,964,386 |
|
|
Savings (including mortgage escrow funds) |
2,890,402 |
|
|
2,727,475 |
|
|
2,712,041 |
|
|
2,717,622 |
|
|
2,777,651 |
|
|
Money market |
8,035,750 |
|
|
8,304,834 |
|
|
8,577,920 |
|
|
8,382,533 |
|
|
8,508,735 |
|
|
Certificates of deposit |
2,766,580 |
|
|
2,559,325 |
|
|
2,158,348 |
|
|
1,943,820 |
|
|
1,518,224 |
|
| Total
deposits and mortgage escrow |
23,463,937 |
|
|
23,665,916 |
|
|
23,849,187 |
|
|
23,546,928 |
|
|
23,516,675 |
|
|
Borrowings |
2,101,016 |
|
|
1,747,941 |
|
|
852,057 |
|
|
721,642 |
|
|
527,272 |
|
|
Stockholders’ equity |
4,464,403 |
|
|
4,530,334 |
|
|
4,591,770 |
|
|
4,616,660 |
|
|
4,670,718 |
|
| Tangible
common stockholders’ equity 1 |
2,538,842 |
|
|
2,609,179 |
|
|
2,675,055 |
|
|
2,704,227 |
|
|
2,762,292 |
|
|
|
|
|
|
|
|
|
|
|
|
| 1 See a reconciliation
of non-GAAP financial measures beginning on page 20. |
| 2 Loans held for sale
mainly includes commercial syndication loans. |
| 3 Asset-based lending,
payroll finance, warehouse lending, factored receivables, equipment
finance and public sector finance comprise our commercial finance
loan portfolio. |
| 4 Includes loans held
for sale, but excludes allowance for credit losses. |
14
Sterling Bancorp and SubsidiariesSELECTED FINANCIAL DATA AND
PERFORMANCE RATIOS(unaudited, in thousands, except share and per
share data)
| |
As of and
for the Quarter Ended |
| Per
Common Share Data |
June 30, 2020 |
|
September 30, 2020 |
|
December 31, 2020 |
|
March 31, 2021 |
|
June 30, 2021 |
|
Basic earnings per share |
$ |
0.25 |
|
|
$ |
0.43 |
|
|
$ |
0.39 |
|
|
$ |
0.51 |
|
|
$ |
0.50 |
|
| Diluted
earnings per share |
0.25 |
|
|
0.43 |
|
|
0.38 |
|
|
0.50 |
|
|
0.50 |
|
| Adjusted
diluted earnings per share, non-GAAP 1 |
0.29 |
|
|
0.45 |
|
|
0.49 |
|
|
0.51 |
|
|
0.52 |
|
| Dividends
declared per common share |
0.07 |
|
|
0.07 |
|
|
0.07 |
|
|
0.07 |
|
|
0.07 |
|
| Book value
per common share |
22.35 |
|
|
22.73 |
|
|
23.09 |
|
|
23.28 |
|
|
23.80 |
|
| Tangible
book value per common share1 |
13.17 |
|
|
13.57 |
|
|
13.87 |
|
|
14.08 |
|
|
14.62 |
|
| Shares of
common stock o/s |
194,458,805 |
|
|
194,458,841 |
|
|
192,923,371 |
|
|
192,567,901 |
|
|
192,715,433 |
|
| Basic
weighted average common shares o/s |
193,479,757 |
|
|
193,494,929 |
|
|
193,036,678 |
|
|
191,890,512 |
|
|
191,436,885 |
|
| Diluted
weighted average common shares o/s |
193,604,431 |
|
|
193,715,943 |
|
|
193,530,930 |
|
|
192,621,907 |
|
|
192,292,989 |
|
|
Performance Ratios (annualized) |
|
|
|
|
|
|
|
|
|
| Return on
average assets |
0.64 |
% |
|
1.07 |
% |
|
0.99 |
% |
|
1.33 |
% |
|
1.32 |
% |
| Return on
average equity |
4.40 |
|
|
7.24 |
|
|
6.45 |
|
|
8.54 |
|
|
8.28 |
|
| Return on
average tangible assets |
0.68 |
|
|
1.14 |
|
|
1.05 |
|
|
1.42 |
|
|
1.40 |
|
| Return on
average tangible common equity |
7.73 |
|
|
12.57 |
|
|
11.07 |
|
|
14.58 |
|
|
13.99 |
|
| Return on
average tangible assets, adjusted 1 |
0.79 |
|
|
1.21 |
|
|
1.33 |
|
|
1.42 |
|
|
1.46 |
|
| Return on
avg. tangible common equity, adjusted 1 |
9.02 |
|
|
13.37 |
|
|
14.03 |
|
|
14.64 |
|
|
14.59 |
|
| Operating
efficiency ratio, as adjusted 1 |
45.1 |
|
|
43.1 |
|
|
43.0 |
|
|
44.3 |
|
|
44.1 |
|
|
Analysis of Net Interest Income |
|
|
|
|
|
|
|
|
|
| Accretion
income on acquired loans |
$ |
10,086 |
|
|
$ |
9,172 |
|
|
$ |
8,560 |
|
|
$ |
8,272 |
|
|
$ |
7,812 |
|
| Yield on
loans |
4.03 |
% |
|
3.82 |
% |
|
3.90 |
% |
|
3.92 |
% |
|
3.88 |
% |
| Yield on
investment securities - tax equivalent 2 |
3.05 |
|
|
3.09 |
|
|
2.94 |
|
|
3.02 |
|
|
2.84 |
|
| Yield on
interest earning assets - tax equivalent 2 |
3.79 |
|
|
3.63 |
|
|
3.69 |
|
|
3.68 |
|
|
3.61 |
|
| Cost of
interest bearing deposits |
0.61 |
|
|
0.40 |
|
|
0.29 |
|
|
0.20 |
|
|
0.15 |
|
| Cost of
total deposits |
0.48 |
|
|
0.31 |
|
|
0.22 |
|
|
0.15 |
|
|
0.11 |
|
| Cost of
borrowings |
2.26 |
|
|
1.95 |
|
|
3.35 |
|
|
3.97 |
|
|
3.87 |
|
| Cost of
interest bearing liabilities |
0.78 |
|
|
0.53 |
|
|
0.43 |
|
|
0.34 |
|
|
0.26 |
|
| Net interest
rate spread - tax equivalent basis 2 |
3.01 |
|
|
3.10 |
|
|
3.26 |
|
|
3.34 |
|
|
3.35 |
|
| Net interest
margin - GAAP basis |
3.15 |
|
|
3.19 |
|
|
3.33 |
|
|
3.38 |
|
|
3.38 |
|
| Net interest
margin - tax equivalent basis 2 |
3.20 |
|
|
3.24 |
|
|
3.38 |
|
|
3.43 |
|
|
3.42 |
|
|
Capital |
|
|
|
|
|
|
|
|
|
| Tier 1
leverage ratio - Company 3 |
9.51 |
% |
|
9.93 |
% |
|
10.14 |
% |
|
10.50 |
% |
|
10.91 |
% |
| Tier 1
leverage ratio - Bank only 3 |
10.09 |
|
|
10.48 |
|
|
11.33 |
|
|
11.76 |
|
|
12.10 |
|
| Tier 1
risk-based capital ratio - Bank only 3 |
12.24 |
|
|
12.39 |
|
|
13.38 |
|
|
14.04 |
|
|
14.44 |
|
| Total
risk-based capital ratio - Bank only 3 |
13.85 |
|
|
13.86 |
|
|
14.73 |
|
|
15.42 |
|
|
15.22 |
|
| Tangible
common equity - Company 1 |
8.82 |
|
|
9.15 |
|
|
9.55 |
|
|
9.63 |
|
|
10.29 |
|
|
Condensed Five Quarter Income Statement |
|
|
|
|
|
|
|
|
|
| Interest and
dividend income |
$ |
253,226 |
|
|
$ |
244,658 |
|
|
$ |
242,610 |
|
|
$ |
233,847 |
|
|
$ |
230,310 |
|
| Interest
expense |
39,927 |
|
|
26,834 |
|
|
20,584 |
|
|
15,933 |
|
|
11,783 |
|
| Net interest
income |
213,299 |
|
|
217,824 |
|
|
222,026 |
|
|
217,914 |
|
|
218,527 |
|
| Provision
for credit losses |
56,606 |
|
|
30,000 |
|
|
27,500 |
|
|
10,000 |
|
|
5,250 |
|
| Net interest
income after provision for credit losses |
156,693 |
|
|
187,824 |
|
|
194,526 |
|
|
207,914 |
|
|
213,277 |
|
| Non-interest
income |
26,090 |
|
|
28,225 |
|
|
33,921 |
|
|
32,356 |
|
|
30,214 |
|
| Non-interest
expense |
124,881 |
|
|
119,362 |
|
|
133,473 |
|
|
118,165 |
|
|
120,629 |
|
| Income
before income tax expense |
57,902 |
|
|
96,687 |
|
|
94,974 |
|
|
122,105 |
|
|
122,862 |
|
| Income tax
expense |
7,110 |
|
|
12,280 |
|
|
18,551 |
|
|
22,955 |
|
|
24,523 |
|
| Net
income |
$ |
50,792 |
|
|
$ |
84,407 |
|
|
$ |
76,423 |
|
|
$ |
99,150 |
|
|
$ |
98,339 |
|
|
|
|
|
|
|
|
|
|
|
|
| 1 See a reconciliation
of non-GAAP financial measures beginning on page 20. |
| 2 Tax equivalent basis
represents interest income earned on tax exempt securities divided
by the applicable federal tax rate of 21%. |
| 3 Regulatory capital
amounts and ratios are preliminary estimates pending filing of the
Company’s and Bank’s regulatory reports. |
15
Sterling Bancorp and SubsidiariesASSET QUALITY INFORMATION BY
PORTFOLIO(unaudited, in thousands, except share and per share
data)
| |
As of and
for the Quarter Ended |
|
Allowance for Credit Losses Roll Forward |
June 30, 2020 |
|
September 30, 2020 |
|
December 31, 2020 |
|
March 31, 2021 |
|
June 30, 2021 |
|
Balance, beginning of period |
$ |
326,444 |
|
|
|
$ |
365,489 |
|
|
|
$ |
325,943 |
|
|
|
$ |
326,100 |
|
|
|
$ |
323,186 |
|
|
| Provision
for credit losses - loans |
56,606 |
|
|
|
31,000 |
|
|
|
27,500 |
|
|
|
10,000 |
|
|
|
6,000 |
|
|
| Loan
charge-offs1: |
|
|
|
|
|
|
|
|
|
|
Traditional C&I |
(3,988 |
) |
|
|
(1,089 |
) |
|
|
(17,757 |
) |
|
|
(1,027 |
) |
|
|
(1,148 |
) |
|
|
Asset-based lending |
(1,500 |
) |
|
|
(1,297 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
Payroll finance |
(560 |
) |
|
|
— |
|
|
|
(730 |
) |
|
|
— |
|
|
|
(86 |
) |
|
|
Factored receivables |
(3,731 |
) |
|
|
(6,893 |
) |
|
|
(2,099 |
) |
|
|
(4 |
) |
|
|
(761 |
) |
|
|
Equipment financing |
(7,863 |
) |
|
|
(42,128 |
) |
|
|
(3,445 |
) |
|
|
(2,408 |
) |
|
|
(3,004 |
) |
|
|
Commercial real estate |
(11 |
) |
|
|
(3,650 |
) |
|
|
(3,266 |
) |
|
|
(2,933 |
) |
|
|
(7,375 |
) |
|
|
Multi-family |
(154 |
) |
|
|
— |
|
|
|
(430 |
) |
|
|
(3,230 |
) |
|
|
(4,982 |
) |
|
|
ADC |
(1 |
) |
|
|
— |
|
|
|
(307 |
) |
|
|
(5,000 |
) |
|
|
— |
|
|
|
Residential mortgage |
(702 |
) |
|
|
(17,353 |
) |
|
|
(23 |
) |
|
|
(267 |
) |
|
|
(237 |
) |
|
|
Consumer |
(172 |
) |
|
|
(97 |
) |
|
|
(62 |
) |
|
|
(391 |
) |
|
|
(231 |
) |
|
|
Total charge-offs |
(18,682 |
) |
|
|
(72,507 |
) |
|
|
(28,119 |
) |
|
|
(15,260 |
) |
|
|
(17,824 |
) |
|
| Recoveries
of loans previously charged-off1: |
|
|
|
|
|
|
|
|
|
|
Traditional C&I |
116 |
|
|
|
677 |
|
|
|
194 |
|
|
|
468 |
|
|
|
588 |
|
|
|
Asset-based lending |
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,998 |
|
|
|
Payroll finance |
1 |
|
|
|
262 |
|
|
|
38 |
|
|
|
2 |
|
|
|
4 |
|
|
|
Factored receivables |
1 |
|
|
|
185 |
|
|
|
122 |
|
|
|
406 |
|
|
|
52 |
|
|
|
Equipment financing |
387 |
|
|
|
816 |
|
|
|
217 |
|
|
|
854 |
|
|
|
719 |
|
|
|
Commercial real estate |
584 |
|
|
|
— |
|
|
|
174 |
|
|
|
487 |
|
|
|
97 |
|
|
|
Multi-family |
1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15 |
|
|
|
Acquisition development & construction |
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
Residential mortgage |
— |
|
|
|
— |
|
|
|
1 |
|
|
|
37 |
|
|
|
— |
|
|
|
Consumer |
31 |
|
|
|
21 |
|
|
|
30 |
|
|
|
92 |
|
|
|
38 |
|
|
|
Total recoveries |
1,121 |
|
|
|
1,961 |
|
|
|
776 |
|
|
|
2,346 |
|
|
|
3,511 |
|
|
| Net loan
charge-offs |
(17,561 |
) |
|
|
(70,546 |
) |
|
|
(27,343 |
) |
|
|
(12,914 |
) |
|
|
(14,313 |
) |
|
| Balance, end
of period |
$ |
365,489 |
|
|
|
$ |
325,943 |
|
|
|
$ |
326,100 |
|
|
|
$ |
323,186 |
|
|
|
$ |
314,873 |
|
|
|
Asset Quality Data and Ratios |
|
|
|
|
|
|
|
|
|
|
Non-performing loans (“NPLs”) non-accrual |
$ |
260,333 |
|
|
|
$ |
180,795 |
|
|
|
$ |
166,889 |
|
|
|
$ |
168,555 |
|
|
|
$ |
173,319 |
|
|
| NPLs still
accruing |
272 |
|
|
|
56 |
|
|
|
170 |
|
|
|
2 |
|
|
|
— |
|
|
| Total
NPLs |
260,605 |
|
|
|
180,851 |
|
|
|
167,059 |
|
|
|
168,557 |
|
|
|
173,319 |
|
|
|
Other real estate owned |
8,665 |
|
|
|
6,919 |
|
|
|
5,346 |
|
|
|
5,227 |
|
|
|
816 |
|
|
|
Non-performing assets (“NPAs”) |
$ |
269,270 |
|
|
|
$ |
187,770 |
|
|
|
$ |
172,405 |
|
|
|
$ |
173,784 |
|
|
|
$ |
174,135 |
|
|
|
Loans 30 to 89 days past due |
$ |
66,268 |
|
|
|
$ |
68,979 |
|
|
|
$ |
72,912 |
|
|
|
$ |
42,165 |
|
|
|
$ |
39,476 |
|
|
|
Net charge-offs as a % of average loans (annualized) |
0.32 |
|
% |
|
1.27 |
|
% |
|
0.50 |
|
% |
|
0.25 |
|
% |
|
0.28 |
|
% |
|
NPLs as a % of total loans |
1.17 |
|
|
|
0.81 |
|
|
|
0.76 |
|
|
|
0.80 |
|
|
|
0.84 |
|
|
|
NPAs as a % of total assets |
0.87 |
|
|
|
0.61 |
|
|
|
0.58 |
|
|
|
0.58 |
|
|
|
0.60 |
|
|
|
ACL as a % of NPLs |
140.2 |
|
|
|
180.2 |
|
|
|
195.2 |
|
|
|
191.7 |
|
|
|
181.7 |
|
|
|
ACL as a % of total loans |
1.64 |
|
|
|
1.46 |
|
|
|
1.49 |
|
|
|
1.53 |
|
|
|
1.52 |
|
|
|
Special mention loans |
$ |
141,805 |
|
|
|
$ |
204,267 |
|
|
|
$ |
461,458 |
|
|
|
$ |
494,452 |
|
|
|
$ |
388,535 |
|
|
|
Substandard loans |
415,917 |
|
|
|
375,427 |
|
|
|
528,760 |
|
|
|
590,109 |
|
|
|
611,805 |
|
|
|
Doubtful loans |
— |
|
|
|
— |
|
|
|
304 |
|
|
|
295 |
|
|
|
4,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1
There were no charge-offs or recoveries on warehouse lending or
public sector finance loans during the periods presented. There
were no asset-based lending recoveries during the periods
presented. |
16
Sterling Bancorp and SubsidiariesASSET QUALITY INFORMATION BY
PORTFOLIO(unaudited, in thousands, except share and per share
data)
| |
At or for the three months ended June 30,
2021 |
|
CECL ACL |
| |
Total loans |
|
Crit/Class |
|
30-89 Days Delinquent |
|
NPLs |
|
NCOs |
|
ACL $ |
|
% of Portfolio |
|
Traditional C&I |
$ |
2,917,848 |
|
|
$ |
164,745 |
|
|
$ |
6,095 |
|
|
$ |
41,593 |
|
|
$ |
(560 |
) |
|
|
$ |
47,494 |
|
|
1.63 |
% |
|
Asset Based Lending |
707,207 |
|
|
72,682 |
|
|
— |
|
|
7,535 |
|
|
1,998 |
|
|
|
10,474 |
|
|
1.48 |
|
|
Payroll Finance |
158,424 |
|
|
652 |
|
|
— |
|
|
652 |
|
|
(82 |
) |
|
|
1,567 |
|
|
0.99 |
|
|
Mortgage Warehouse |
1,229,588 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
1,087 |
|
|
0.09 |
|
|
Factored Receivables |
217,399 |
|
|
— |
|
|
— |
|
|
— |
|
|
(709 |
) |
|
|
3,025 |
|
|
1.39 |
|
|
Equipment Finance |
1,381,308 |
|
|
66,790 |
|
|
890 |
|
|
23,452 |
|
|
(2,285 |
) |
|
|
27,987 |
|
|
2.03 |
|
|
Public Sector Finance |
1,723,270 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
6,168 |
|
|
0.36 |
|
|
Commercial Real Estate |
5,861,542 |
|
|
492,802 |
|
|
12,344 |
|
|
48,074 |
|
|
(7,278 |
) |
|
|
155,589 |
|
|
2.65 |
|
|
Multi-family |
4,281,615 |
|
|
153,181 |
|
|
12,853 |
|
|
327 |
|
|
(4,967 |
) |
|
|
32,054 |
|
|
0.75 |
|
|
ADC |
690,224 |
|
|
27,023 |
|
|
— |
|
|
25,000 |
|
|
— |
|
|
|
11,371 |
|
|
1.65 |
|
| Total
commercial loans |
19,168,425 |
|
|
977,875 |
|
|
32,182 |
|
|
146,633 |
|
|
(13,883 |
) |
|
|
296,816 |
|
|
1.55 |
|
|
Residential |
1,389,294 |
|
|
17,416 |
|
|
6,138 |
|
|
17,132 |
|
|
(237 |
) |
|
|
14,032 |
|
|
1.01 |
|
|
Consumer |
166,378 |
|
|
9,649 |
|
|
1,156 |
|
|
9,554 |
|
|
(193 |
) |
|
|
4,025 |
|
|
2.42 |
|
| Total
portfolio loans |
$ |
20,724,097 |
|
|
$ |
1,004,940 |
|
|
$ |
39,476 |
|
|
$ |
173,319 |
|
|
$ |
(14,313 |
) |
|
|
$ |
314,873 |
|
|
1.52 |
|
| |
At or for the three months ended March 31,
2021 |
|
CECL ACL |
| |
Total loans |
|
Crit/Class |
|
30-89 Days Delinquent |
|
NPLs |
|
NCOs |
|
ACL $ |
|
% of Portfolio |
|
Traditional C&I |
$ |
2,886,336 |
|
|
$ |
133,449 |
|
|
$ |
3,009 |
|
|
$ |
50,351 |
|
|
$ |
(559 |
) |
|
|
$ |
46,393 |
|
|
1.61 |
% |
|
Asset Based Lending |
693,015 |
|
|
106,351 |
|
|
— |
|
|
10,149 |
|
|
— |
|
|
|
11,165 |
|
|
1.61 |
|
|
Payroll Finance |
153,987 |
|
|
3,489 |
|
|
— |
|
|
2,313 |
|
|
2 |
|
|
|
1,519 |
|
|
0.99 |
|
|
Mortgage Warehouse |
1,394,945 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
1,232 |
|
|
0.09 |
|
|
Factored Receivables |
229,629 |
|
|
— |
|
|
— |
|
|
— |
|
|
402 |
|
|
|
3,237 |
|
|
1.41 |
|
|
Equipment Finance |
1,475,716 |
|
|
53,850 |
|
|
2,514 |
|
|
28,870 |
|
|
(1,554 |
) |
|
|
28,025 |
|
|
1.90 |
|
|
Public Sector Finance |
1,617,986 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
4,632 |
|
|
0.29 |
|
|
Commercial Real Estate |
6,029,282 |
|
|
588,163 |
|
|
14,039 |
|
|
24,269 |
|
|
(2,446 |
) |
|
|
159,422 |
|
|
2.64 |
|
|
Multi-family |
4,391,850 |
|
|
145,730 |
|
|
14,029 |
|
|
778 |
|
|
(3,230 |
) |
|
|
33,376 |
|
|
0.76 |
|
|
ADC |
618,295 |
|
|
26,613 |
|
|
— |
|
|
25,000 |
|
|
(5,000 |
) |
|
|
13,803 |
|
|
2.23 |
|
| Total
commercial loans |
19,491,041 |
|
|
1,057,645 |
|
|
33,591 |
|
|
141,730 |
|
|
(12,385 |
) |
|
|
302,804 |
|
|
1.55 |
|
|
Residential |
1,486,597 |
|
|
17,368 |
|
|
7,347 |
|
|
17,081 |
|
|
(230 |
) |
|
|
15,970 |
|
|
1.07 |
|
|
Consumer |
174,335 |
|
|
9,843 |
|
|
1,229 |
|
|
9,746 |
|
|
(299 |
) |
|
|
4,412 |
|
|
2.53 |
|
| Total
portfolio loans |
$ |
21,151,973 |
|
|
$ |
1,084,856 |
|
|
$ |
42,167 |
|
|
$ |
168,557 |
|
|
$ |
(12,914 |
) |
|
|
$ |
323,186 |
|
|
1.53 |
|
17
Sterling Bancorp and SubsidiariesNon-GAAP Financial
Measures(unaudited, in thousands, except share and per share
data)
| |
For the Quarter Ended |
| |
March 31, 2021 |
|
June 30, 2021 |
| |
Average balance |
|
Interest |
|
Yield/Rate |
|
Average balance |
|
Interest |
|
Yield/Rate |
| |
(Dollars in
thousands) |
| Interest
earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Traditional C&I and commercial finance loans |
$ |
8,646,272 |
|
|
$ |
78,006 |
|
|
|
3.66 |
% |
|
$ |
8,269,192 |
|
|
$ |
76,983 |
|
|
|
3.73 |
% |
|
Commercial real estate (includes multi-family) |
10,283,292 |
|
|
103,625 |
|
|
|
4.09 |
|
|
10,331,355 |
|
|
103,225 |
|
|
|
4.01 |
|
|
ADC |
624,259 |
|
|
5,856 |
|
|
|
3.80 |
|
|
645,094 |
|
|
6,650 |
|
|
|
4.13 |
|
|
Commercial loans |
19,553,823 |
|
|
187,487 |
|
|
|
3.89 |
|
|
19,245,641 |
|
|
186,858 |
|
|
|
3.89 |
|
|
Consumer loans |
182,461 |
|
|
2,081 |
|
|
|
4.63 |
|
|
170,965 |
|
|
1,712 |
|
|
|
4.02 |
|
|
Residential mortgage loans |
1,558,266 |
|
|
16,287 |
|
|
|
4.18 |
|
|
1,427,055 |
|
|
13,115 |
|
|
|
3.68 |
|
| Total gross
loans 1 |
21,294,550 |
|
|
205,855 |
|
|
|
3.92 |
|
|
20,843,661 |
|
|
201,685 |
|
|
|
3.88 |
|
|
Securities taxable |
2,103,768 |
|
|
15,352 |
|
|
|
2.96 |
|
|
2,378,213 |
|
|
15,749 |
|
|
|
2.66 |
|
|
Securities non-taxable |
1,951,210 |
|
|
14,858 |
|
|
|
3.05 |
|
|
1,943,913 |
|
|
14,833 |
|
|
|
3.05 |
|
|
Interest earning deposits |
648,178 |
|
|
149 |
|
|
|
0.09 |
|
|
651,271 |
|
|
164 |
|
|
|
0.10 |
|
|
FHLB and Federal Reserve Bank Stock |
152,026 |
|
|
753 |
|
|
|
2.01 |
|
|
151,877 |
|
|
994 |
|
|
|
2.63 |
|
|
Total securities and other earning assets |
4,855,182 |
|
|
31,112 |
|
|
|
2.60 |
|
|
5,125,274 |
|
|
31,740 |
|
|
|
2.48 |
|
|
Total interest earning assets |
26,149,732 |
|
|
236,967 |
|
|
|
3.68 |
|
|
25,968,935 |
|
|
233,425 |
|
|
|
3.61 |
|
| Non-interest
earning assets |
3,432,873 |
|
|
|
|
|
|
3,422,042 |
|
|
|
|
|
| Total
assets |
$ |
29,582,605 |
|
|
|
|
|
|
$ |
29,390,977 |
|
|
|
|
|
| Interest
bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Demand and savings 2 deposits |
$ |
7,699,037 |
|
|
$ |
2,513 |
|
|
|
0.13 |
% |
|
$ |
7,742,037 |
|
|
$ |
2,145 |
|
|
|
0.11 |
% |
|
Money market deposits |
8,382,533 |
|
|
3,813 |
|
|
|
0.18 |
|
|
8,508,735 |
|
|
3,140 |
|
|
|
0.15 |
|
|
Certificates of deposit |
1,943,820 |
|
|
2,542 |
|
|
|
0.53 |
|
|
1,518,224 |
|
|
1,413 |
|
|
|
0.37 |
|
| Total
interest bearing deposits |
18,025,390 |
|
|
8,868 |
|
|
|
0.20 |
|
|
17,768,996 |
|
|
6,698 |
|
|
|
0.15 |
|
|
Other borrowings |
85,957 |
|
|
36 |
|
|
|
0.17 |
|
|
35,156 |
|
|
9 |
|
|
|
0.10 |
|
|
Subordinated debentures - Bank |
143,722 |
|
|
1,957 |
|
|
|
5.45 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
Subordinated debentures - Company |
491,963 |
|
|
5,072 |
|
|
|
4.12 |
|
|
492,116 |
|
|
5,076 |
|
|
|
4.13 |
|
|
Total borrowings |
721,642 |
|
|
7,065 |
|
|
|
3.97 |
|
|
527,272 |
|
|
5,085 |
|
|
|
3.87 |
|
|
Total interest bearing liabilities |
18,747,032 |
|
|
15,933 |
|
|
|
0.34 |
|
|
18,296,268 |
|
|
11,783 |
|
|
|
0.26 |
|
| Non-interest
bearing deposits |
5,521,538 |
|
|
|
|
|
|
5,747,679 |
|
|
|
|
|
| Other
non-interest bearing liabilities |
697,375 |
|
|
|
|
|
|
676,312 |
|
|
|
|
|
| Total
liabilities |
24,965,945 |
|
|
|
|
|
|
24,720,259 |
|
|
|
|
|
|
Stockholders’ equity |
4,616,660 |
|
|
|
|
|
|
4,670,718 |
|
|
|
|
|
| Total
liabilities and stockholders’ equity |
$ |
29,582,605 |
|
|
|
|
|
|
$ |
29,390,977 |
|
|
|
|
|
| Net interest
rate spread 3 |
|
|
|
|
3.34 |
% |
|
|
|
|
|
3.35 |
% |
| Net interest
earning assets 4 |
$ |
7,402,700 |
|
|
|
|
|
|
$ |
7,672,667 |
|
|
|
|
|
| Net interest
margin - tax equivalent |
|
|
221,034 |
|
|
|
3.43 |
% |
|
|
|
221,642 |
|
|
|
3.42 |
% |
| Less tax
equivalent adjustment |
|
|
(3,120 |
) |
|
|
|
|
|
|
(3,115 |
) |
|
|
|
| Net interest
income |
|
|
217,914 |
|
|
|
|
|
|
|
218,527 |
|
|
|
|
| Accretion
income on acquired loans |
|
|
8,272 |
|
|
|
|
|
|
|
7,812 |
|
|
|
|
| Tax
equivalent net interest margin excluding accretion income on
acquired loans |
|
|
$ |
212,762 |
|
|
|
3.30 |
% |
|
|
|
$ |
213,830 |
|
|
|
3.30 |
% |
| Ratio of
interest earning assets to interest bearing liabilities |
139.5 |
% |
|
|
|
|
|
141.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Average balances include loans held for sale and
non-accrual loans. Interest includes prepayment fees and late
charges. 2 Includes club accounts and interest bearing mortgage
escrow balances. 3 Net interest rate spread represents the
difference between the tax equivalent yield on average interest
earning assets and the cost of average interest bearing
liabilities. 4 Net interest earning assets represents total
interest earning assets less total interest bearing
liabilities.
18
Sterling Bancorp and SubsidiariesNon-GAAP Financial
Measures(unaudited, in thousands, except share and per share
data)
| |
For the Quarter Ended |
| |
June 30, 2020 |
|
June 30, 2021 |
| |
Average balance |
|
Interest |
|
Yield/Rate |
|
Average balance |
|
Interest |
|
Yield/Rate |
| |
(Dollars in
thousands) |
| Interest
earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Traditional C&I and commercial finance loans |
$ |
8,791,024 |
|
|
$ |
84,192 |
|
|
|
3.85 |
% |
|
$ |
8,269,192 |
|
|
$ |
76,983 |
|
|
|
3.73 |
% |
|
Commercial real estate (includes multi-family) |
10,404,643 |
|
|
106,408 |
|
|
|
4.11 |
|
|
10,331,355 |
|
|
103,225 |
|
|
|
4.01 |
|
|
ADC |
519,517 |
|
|
5,762 |
|
|
|
4.46 |
|
|
645,094 |
|
|
6,650 |
|
|
|
4.13 |
|
|
Commercial loans |
19,715,184 |
|
|
196,362 |
|
|
|
4.01 |
|
|
19,245,641 |
|
|
186,858 |
|
|
|
3.89 |
|
|
Consumer loans |
219,052 |
|
|
2,233 |
|
|
|
4.10 |
|
|
170,965 |
|
|
1,712 |
|
|
|
4.02 |
|
|
Residential mortgage loans |
2,006,400 |
|
|
21,309 |
|
|
|
4.25 |
|
|
1,427,055 |
|
|
13,115 |
|
|
|
3.68 |
|
| Total gross
loans 1 |
21,940,636 |
|
|
219,904 |
|
|
|
4.03 |
|
|
20,843,661 |
|
|
201,685 |
|
|
|
3.88 |
|
|
Securities taxable |
2,507,384 |
|
|
18,855 |
|
|
|
3.02 |
|
|
2,378,213 |
|
|
15,749 |
|
|
|
2.66 |
|
|
Securities non-taxable |
2,122,672 |
|
|
16,242 |
|
|
|
3.06 |
|
|
1,943,913 |
|
|
14,833 |
|
|
|
3.05 |
|
|
Interest earning deposits |
455,626 |
|
|
146 |
|
|
|
0.13 |
|
|
651,271 |
|
|
164 |
|
|
|
0.10 |
|
|
FHLB and Federal Reserve Bank stock |
213,796 |
|
|
1,490 |
|
|
|
2.80 |
|
|
151,877 |
|
|
994 |
|
|
|
2.63 |
|
|
Total securities and other earning assets |
5,299,478 |
|
|
36,733 |
|
|
|
2.79 |
|
|
5,125,274 |
|
|
31,740 |
|
|
|
2.48 |
|
|
Total interest earning assets |
27,240,114 |
|
|
256,637 |
|
|
|
3.79 |
|
|
25,968,935 |
|
|
233,425 |
|
|
|
3.61 |
|
| Non-interest
earning assets |
3,492,800 |
|
|
|
|
|
|
3,422,042 |
|
|
|
|
|
| Total
assets |
$ |
30,732,914 |
|
|
|
|
|
|
$ |
29,390,977 |
|
|
|
|
|
| Interest
bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Demand and savings 2 deposits |
$ |
7,656,700 |
|
|
$ |
7,224 |
|
|
|
0.38 |
% |
|
$ |
7,742,037 |
|
|
$ |
2,145 |
|
|
|
0.11 |
% |
|
Money market deposits |
8,035,750 |
|
|
11,711 |
|
|
|
0.59 |
|
|
8,508,735 |
|
|
3,140 |
|
|
|
0.15 |
|
|
Certificates of deposit |
2,766,580 |
|
|
9,175 |
|
|
|
1.33 |
|
|
1,518,224 |
|
|
1,413 |
|
|
|
0.37 |
|
| Total
interest bearing deposits |
18,459,030 |
|
|
28,110 |
|
|
|
0.61 |
|
|
17,768,996 |
|
|
6,698 |
|
|
|
0.15 |
|
|
Senior notes |
127,862 |
|
|
944 |
|
|
|
2.95 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
Other borrowings |
1,528,844 |
|
|
5,684 |
|
|
|
1.50 |
|
|
35,156 |
|
|
9 |
|
|
|
0.10 |
|
|
Subordinated debentures - Bank |
173,265 |
|
|
2,361 |
|
|
|
5.45 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
Subordinated debentures - Company |
271,045 |
|
|
2,828 |
|
|
|
4.17 |
|
|
492,116 |
|
|
5,076 |
|
|
|
4.13 |
|
|
Total borrowings |
2,101,016 |
|
|
11,817 |
|
|
|
2.26 |
|
|
527,272 |
|
|
5,085 |
|
|
|
3.87 |
|
|
Total interest bearing liabilities |
20,560,046 |
|
|
39,927 |
|
|
|
0.78 |
|
|
18,296,268 |
|
|
11,783 |
|
|
|
0.26 |
|
| Non-interest
bearing deposits |
5,004,907 |
|
|
|
|
|
|
5,747,679 |
|
|
|
|
|
| Other
non-interest bearing liabilities |
703,558 |
|
|
|
|
|
|
676,312 |
|
|
|
|
|
| Total
liabilities |
26,268,511 |
|
|
|
|
|
|
24,720,259 |
|
|
|
|
|
|
Stockholders’ equity |
4,464,403 |
|
|
|
|
|
|
4,670,718 |
|
|
|
|
|
| Total
liabilities and stockholders’ equity |
$ |
30,732,914 |
|
|
|
|
|
|
$ |
29,390,977 |
|
|
|
|
|
| Net interest
rate spread 3 |
|
|
|
|
3.01 |
% |
|
|
|
|
|
3.35 |
% |
| Net interest
earning assets 4 |
$ |
6,680,068 |
|
|
|
|
|
|
$ |
7,672,667 |
|
|
|
|
|
| Net interest
margin - tax equivalent |
|
|
216,710 |
|
|
|
3.20 |
% |
|
|
|
221,642 |
|
|
|
3.42 |
% |
| Less tax
equivalent adjustment |
|
|
(3,411 |
) |
|
|
|
|
|
|
(3,115 |
) |
|
|
|
| Net interest
income |
|
|
213,299 |
|
|
|
|
|
|
|
218,527 |
|
|
|
|
| Accretion
income on acquired loans |
|
|
10,086 |
|
|
|
|
|
|
|
7,812 |
|
|
|
|
| Tax
equivalent net interest margin excluding accretion income on
acquired loans |
|
|
$ |
206,624 |
|
|
|
3.05 |
% |
|
|
|
$ |
213,830 |
|
|
|
3.30 |
% |
| Ratio of
interest earning assets to interest bearing liabilities |
132.5 |
% |
|
|
|
|
|
141.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Average balances include loans held for sale and
non-accrual loans. Interest includes prepayment fees and late
charges. 2 Includes club accounts and interest bearing mortgage
escrow balances. 3 Net interest rate spread represents the
difference between the tax equivalent yield on average interest
earning assets and the cost of average interest bearing
liabilities. 4 Net interest earning assets represents total
interest earning assets less total interest bearing
liabilities.
19
Sterling Bancorp and SubsidiariesNon-GAAP Financial
Measures(unaudited, in thousands, except share and per share
data)
| The Company provides
supplemental reporting of non-GAAP/adjusted financial measures as
management believes this information is useful to investors. See
legend beginning on page 25. |
| |
As of and
for the Quarter Ended |
| |
June 30, 2020 |
|
September 30, 2020 |
|
December 31, 2020 |
|
March 31, 2021 |
|
June 30, 2021 |
| |
| The following
table shows the reconciliation of pretax pre-provision net revenue
to adjusted pretax pre-provision net
revenue1: |
| |
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
213,299 |
|
|
|
$ |
217,824 |
|
|
|
$ |
222,026 |
|
|
|
$ |
217,914 |
|
|
|
$ |
218,527 |
|
|
| Non-interest
income |
26,090 |
|
|
|
28,225 |
|
|
|
33,921 |
|
|
|
32,356 |
|
|
|
30,214 |
|
|
| Total net
revenue |
239,389 |
|
|
|
246,049 |
|
|
|
255,947 |
|
|
|
250,270 |
|
|
|
248,741 |
|
|
| Non-interest
expense |
124,881 |
|
|
|
119,362 |
|
|
|
133,473 |
|
|
|
118,165 |
|
|
|
120,629 |
|
|
| PPNR |
114,508 |
|
|
|
126,687 |
|
|
|
122,474 |
|
|
|
132,105 |
|
|
|
128,112 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
Accretion income |
(10,086 |
) |
|
|
(9,172 |
) |
|
|
(8,560 |
) |
|
|
(8,272 |
) |
|
|
(7,812 |
) |
|
|
Net (gain) loss on sale of securities |
(485 |
) |
|
|
(642 |
) |
|
|
111 |
|
|
|
(719 |
) |
|
|
80 |
|
|
|
Loss on extinguishment of debt |
9,723 |
|
|
|
6,241 |
|
|
|
2,749 |
|
|
|
— |
|
|
|
1,243 |
|
|
|
Impairment related to financial centers and real estate
consolidation strategy |
— |
|
|
|
— |
|
|
|
13,311 |
|
|
|
633 |
|
|
|
475 |
|
|
|
Merger related expense |
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,481 |
|
|
|
Amortization of non-compete agreements and acquired customer list
intangible assets |
172 |
|
|
|
172 |
|
|
|
172 |
|
|
|
148 |
|
|
|
148 |
|
|
| Adjusted
PPNR |
$ |
113,832 |
|
|
|
$ |
123,286 |
|
|
|
$ |
130,257 |
|
|
|
$ |
123,895 |
|
|
|
$ |
124,727 |
|
|
20
Sterling Bancorp and SubsidiariesNON-GAAP FINANCIAL
MEASURES(unaudited, in thousands, except share and per share
data)
| The Company provides
supplemental reporting of non-GAAP/adjusted financial measures as
management believes this information is useful to investors. See
legend beginning on page 25. |
| |
As of and
for the Quarter Ended |
| |
June 30, 2020 |
|
September 30, 2020 |
|
December 31, 2020 |
|
March 31, 2021 |
|
June 30, 2021 |
| |
| The following
table shows the reconciliation of stockholders’ equity to tangible
common equity and the tangible common equity
ratio2: |
| |
|
|
|
|
|
|
|
|
|
| Total
assets |
$ |
30,839,893 |
|
|
|
$ |
30,617,722 |
|
|
|
$ |
29,820,138 |
|
|
|
$ |
29,914,282 |
|
|
|
$ |
29,143,918 |
|
|
| Goodwill and
other intangibles |
(1,785,446 |
) |
|
|
(1,781,246 |
) |
|
|
(1,777,046 |
) |
|
|
(1,773,270 |
) |
|
|
(1,769,494 |
) |
|
| Tangible
assets |
29,054,447 |
|
|
|
28,836,476 |
|
|
|
28,043,092 |
|
|
|
28,141,012 |
|
|
|
27,374,424 |
|
|
|
Stockholders’ equity |
4,484,187 |
|
|
|
4,557,785 |
|
|
|
4,590,514 |
|
|
|
4,620,164 |
|
|
|
4,722,856 |
|
|
| Preferred
stock |
(137,142 |
) |
|
|
(136,917 |
) |
|
|
(136,689 |
) |
|
|
(136,458 |
) |
|
|
(136,224 |
) |
|
| Goodwill and
other intangibles |
(1,785,446 |
) |
|
|
(1,781,246 |
) |
|
|
(1,777,046 |
) |
|
|
(1,773,270 |
) |
|
|
(1,769,494 |
) |
|
| Tangible
common stockholders’ equity |
2,561,599 |
|
|
|
2,639,622 |
|
|
|
2,676,779 |
|
|
|
2,710,436 |
|
|
|
2,817,138 |
|
|
| Common stock
outstanding at period end |
194,458,805 |
|
|
|
194,458,841 |
|
|
|
192,923,371 |
|
|
|
192,567,901 |
|
|
|
192,715,433 |
|
|
| Common
stockholders’ equity as a % of total assets |
14.10 |
|
% |
|
14.44 |
|
% |
|
14.94 |
|
% |
|
14.99 |
|
% |
|
15.74 |
|
% |
| Book value
per common share |
$ |
22.35 |
|
|
|
$ |
22.73 |
|
|
|
$ |
23.09 |
|
|
|
$ |
23.28 |
|
|
|
$ |
23.80 |
|
|
| Tangible
common equity as a % of tangible assets |
8.82 |
|
% |
|
9.15 |
|
% |
|
9.55 |
|
% |
|
9.63 |
|
% |
|
10.29 |
|
% |
| Tangible
book value per common share |
$ |
13.17 |
|
|
|
$ |
13.57 |
|
|
|
$ |
13.87 |
|
|
|
$ |
14.08 |
|
|
|
$ |
14.62 |
|
|
| |
| The following
table shows the reconciliation of reported return on average
tangible common equity and adjusted return on average tangible
common equity3: |
| |
|
|
|
|
|
|
|
|
|
| Average
stockholders’ equity |
$ |
4,464,403 |
|
|
|
$ |
4,530,334 |
|
|
|
$ |
4,591,770 |
|
|
|
$ |
4,616,660 |
|
|
|
$ |
4,670,718 |
|
|
| Average
preferred stock |
(137,361 |
) |
|
|
(137,139 |
) |
|
|
(136,914 |
) |
|
|
(136,687 |
) |
|
|
(136,455 |
) |
|
| Average
goodwill and other intangibles |
(1,788,200 |
) |
|
|
(1,784,016 |
) |
|
|
(1,779,801 |
) |
|
|
(1,775,746 |
) |
|
|
(1,771,971 |
) |
|
| Average
tangible common stockholders’ equity |
2,538,842 |
|
|
|
2,609,179 |
|
|
|
2,675,055 |
|
|
|
2,704,227 |
|
|
|
2,762,292 |
|
|
| Net income
available to common |
48,820 |
|
|
|
82,438 |
|
|
|
74,457 |
|
|
|
97,187 |
|
|
|
96,380 |
|
|
| Net income,
if annualized |
196,353 |
|
|
|
327,960 |
|
|
|
296,209 |
|
|
|
394,147 |
|
|
|
386,579 |
|
|
| Reported
return on avg tangible common equity |
7.73 |
|
% |
|
12.57 |
|
% |
|
11.07 |
|
% |
|
14.58 |
|
% |
|
13.99 |
|
% |
| Adjusted net
income (see reconciliation on page 22) |
$ |
56,926 |
|
|
|
$ |
87,682 |
|
|
|
$ |
94,323 |
|
|
|
$ |
97,603 |
|
|
|
$ |
100,509 |
|
|
| Annualized
adjusted net income |
228,955 |
|
|
|
348,822 |
|
|
|
375,242 |
|
|
|
395,834 |
|
|
|
403,140 |
|
|
| Adjusted
return on average tangible common equity |
9.02 |
|
% |
|
13.37 |
|
% |
|
14.03 |
|
% |
|
14.64 |
|
% |
|
14.59 |
|
% |
| |
|
|
|
|
|
|
|
|
|
| The following
table shows the reconciliation of reported return on average
tangible assets and adjusted return on average tangible
assets4: |
| |
|
|
|
|
|
|
|
|
|
| Average
assets |
$ |
30,732,914 |
|
|
|
$ |
30,652,856 |
|
|
|
$ |
30,024,165 |
|
|
|
$ |
29,582,605 |
|
|
|
$ |
29,390,977 |
|
|
| Average
goodwill and other intangibles |
(1,788,200 |
) |
|
|
(1,784,016 |
) |
|
|
(1,779,801 |
) |
|
|
(1,775,746 |
) |
|
|
(1,771,971 |
) |
|
| Average
tangible assets |
28,944,714 |
|
|
|
28,868,840 |
|
|
|
28,244,364 |
|
|
|
27,806,859 |
|
|
|
27,619,006 |
|
|
| Net income
available to common |
48,820 |
|
|
|
82,438 |
|
|
|
74,457 |
|
|
|
97,187 |
|
|
|
96,380 |
|
|
| Net income,
if annualized |
196,353 |
|
|
|
327,960 |
|
|
|
296,209 |
|
|
|
394,147 |
|
|
|
386,579 |
|
|
| Reported
return on average tangible assets |
0.68 |
|
% |
|
1.14 |
|
% |
|
1.05 |
|
% |
|
1.42 |
|
% |
|
1.40 |
|
% |
| Adjusted net
income (see reconciliation on page 22) |
$ |
56,926 |
|
|
|
$ |
87,682 |
|
|
|
$ |
94,323 |
|
|
|
$ |
97,603 |
|
|
|
$ |
100,509 |
|
|
| Annualized
adjusted net income |
228,955 |
|
|
|
348,822 |
|
|
|
375,242 |
|
|
|
395,834 |
|
|
|
403,140 |
|
|
| Adjusted
return on average tangible assets |
0.79 |
|
% |
|
1.21 |
|
% |
|
1.33 |
|
% |
|
1.42 |
|
% |
|
1.46 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
21
Sterling Bancorp and SubsidiariesNON-GAAP FINANCIAL
MEASURES(unaudited, in thousands, except share and per share
data)
| The Company provides
supplemental reporting of non-GAAP/adjusted financial measures as
management believes this information is useful to investors. See
legend beginning on page 25. |
| |
As of and
for the Quarter Ended |
| |
June 30, 2020 |
|
September 30, 2020 |
|
December 31, 2020 |
|
March 31, 2021 |
|
June 30, 2021 |
| The following
table shows the reconciliation of the reported operating efficiency
ratio and adjusted operating efficiency
ratio5: |
| |
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
213,299 |
|
|
|
$ |
217,824 |
|
|
|
$ |
222,026 |
|
|
|
$ |
217,914 |
|
|
|
$ |
218,527 |
|
|
| Non-interest
income |
26,090 |
|
|
|
28,225 |
|
|
|
33,921 |
|
|
|
32,356 |
|
|
|
30,214 |
|
|
| Total
revenue |
239,389 |
|
|
|
246,049 |
|
|
|
255,947 |
|
|
|
250,270 |
|
|
|
248,741 |
|
|
| Tax
equivalent adjustment on securities |
3,411 |
|
|
|
3,258 |
|
|
|
3,146 |
|
|
|
3,120 |
|
|
|
3,115 |
|
|
| Net (gain)
loss on sale of securities |
(485 |
) |
|
|
(642 |
) |
|
|
111 |
|
|
|
(719 |
) |
|
|
80 |
|
|
| Depreciation
of operating leases |
(3,136 |
) |
|
|
(3,130 |
) |
|
|
(3,130 |
) |
|
|
(3,124 |
) |
|
|
(2,917 |
) |
|
| Adjusted
total revenue |
239,179 |
|
|
|
245,535 |
|
|
|
256,074 |
|
|
|
249,547 |
|
|
|
249,019 |
|
|
| Non-interest
expense |
124,881 |
|
|
|
119,362 |
|
|
|
133,473 |
|
|
|
118,165 |
|
|
|
120,629 |
|
|
| Merger
related expense |
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,481 |
) |
|
| Impairment
related to financial centers and real estate consolidation
strategy |
— |
|
|
|
— |
|
|
|
(13,311 |
) |
|
|
(633 |
) |
|
|
(475 |
) |
|
| Loss on
extinguishment of borrowings |
(9,723 |
) |
|
|
(6,241 |
) |
|
|
(2,749 |
) |
|
|
— |
|
|
|
(1,243 |
) |
|
| Depreciation
of operating leases |
(3,136 |
) |
|
|
(3,130 |
) |
|
|
(3,130 |
) |
|
|
(3,124 |
) |
|
|
(2,917 |
) |
|
| Amortization
of intangible assets |
(4,200 |
) |
|
|
(4,200 |
) |
|
|
(4,200 |
) |
|
|
(3,776 |
) |
|
|
(3,776 |
) |
|
| Adjusted
non-interest expense |
107,822 |
|
|
|
105,791 |
|
|
|
110,083 |
|
|
|
110,632 |
|
|
|
109,737 |
|
|
| Reported
operating efficiency ratio |
52.2 |
|
% |
|
48.5 |
|
% |
|
52.1 |
|
% |
|
47.2 |
|
% |
|
48.5 |
|
% |
| Adjusted
operating efficiency ratio |
45.1 |
|
|
|
43.1 |
|
|
|
43.0 |
|
|
|
44.3 |
|
|
|
44.1 |
|
|
| |
|
|
|
|
|
|
|
|
|
| The following
table shows the reconciliation of reported net income (GAAP) and
earnings per share to adjusted net income available to common
stockholders (non-GAAP) and adjusted diluted earnings per
share(non-GAAP)6: |
| |
|
|
|
|
|
|
|
|
|
| Income
before income tax expense |
$ |
57,902 |
|
|
|
$ |
96,687 |
|
|
|
$ |
94,974 |
|
|
|
$ |
122,105 |
|
|
|
$ |
122,862 |
|
|
| Income tax
expense |
7,110 |
|
|
|
12,280 |
|
|
|
18,551 |
|
|
|
22,955 |
|
|
|
24,523 |
|
|
| Net income
(GAAP) |
50,792 |
|
|
|
84,407 |
|
|
|
76,423 |
|
|
|
99,150 |
|
|
|
98,339 |
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
Net (gain) loss on sale of securities |
(485 |
) |
|
|
(642 |
) |
|
|
111 |
|
|
|
(719 |
) |
|
|
80 |
|
|
|
Loss on extinguishment of debt |
9,723 |
|
|
|
6,241 |
|
|
|
2,749 |
|
|
|
— |
|
|
|
1,243 |
|
|
|
Impairment related to financial centers and real estate
consolidation strategy. |
— |
|
|
|
— |
|
|
|
13,311 |
|
|
|
633 |
|
|
|
475 |
|
|
|
Merger related expenses |
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,481 |
|
|
|
Amortization of non-compete agreements and acquired customer list
intangible assets |
172 |
|
|
|
172 |
|
|
|
172 |
|
|
|
148 |
|
|
|
148 |
|
|
| Total
pre-tax adjustments |
9,410 |
|
|
|
5,771 |
|
|
|
16,343 |
|
|
|
62 |
|
|
|
4,427 |
|
|
| Adjusted
pre-tax income |
67,312 |
|
|
|
102,458 |
|
|
|
111,317 |
|
|
|
122,167 |
|
|
|
127,289 |
|
|
| Adjusted
income tax expense |
8,414 |
|
|
|
12,807 |
|
|
|
15,028 |
|
|
|
22,601 |
|
|
|
24,821 |
|
|
| Adjusted net
income (non-GAAP) |
58,898 |
|
|
|
89,651 |
|
|
|
96,289 |
|
|
|
99,566 |
|
|
|
102,468 |
|
|
| Preferred
stock dividend |
1,972 |
|
|
|
1,969 |
|
|
|
1,966 |
|
|
|
1,963 |
|
|
|
1,959 |
|
|
| Adjusted net
income available to common stockholders (non-GAAP) |
$ |
56,926 |
|
|
|
$ |
87,682 |
|
|
|
$ |
94,323 |
|
|
|
$ |
97,603 |
|
|
|
$ |
100,509 |
|
|
| |
|
|
|
|
|
|
|
|
|
| Weighted
average diluted shares |
193,604,431 |
|
|
|
193,715,943 |
|
|
|
193,530,930 |
|
|
|
192,621,907 |
|
|
|
192,292,989 |
|
|
| Reported
diluted EPS (GAAP) |
$ |
0.25 |
|
|
|
$ |
0.43 |
|
|
|
$ |
0.38 |
|
|
|
$ |
0.50 |
|
|
|
$ |
0.50 |
|
|
| Adjusted
diluted EPS (non-GAAP) |
0.29 |
|
|
|
0.45 |
|
|
|
0.49 |
|
|
|
0.51 |
|
|
|
0.52 |
|
|
22
Sterling Bancorp and SubsidiariesNON-GAAP FINANCIAL
MEASURES(unaudited, in thousands, except share and per share
data)
| The Company provides
supplemental reporting of non-GAAP/adjusted financial measures as
management believes this information is useful to investors. See
legend beginning on page 25. |
| |
For the Six Months Ended June 30, |
| |
2020 |
|
2021 |
| The following
table shows the reconciliation of reported net income (GAAP) and
earnings per share to adjusted net income available to common
stockholders (non-GAAP) and adjusted diluted earnings per share
(non-GAAP)6: |
|
Income before income tax expense |
$ |
64,007 |
|
|
|
$ |
244,967 |
|
|
| Income tax
(benefit) expense |
(932 |
) |
|
|
47,478 |
|
|
| Net income
(GAAP) |
64,939 |
|
|
|
197,489 |
|
|
| |
|
|
|
|
Adjustments: |
|
|
|
|
Net (gain) on sale of securities |
(8,896 |
) |
|
|
(639 |
) |
|
|
Loss on extinguishment of borrowings |
10,467 |
|
|
|
1,243 |
|
|
|
Impairment related to financial centers and real estate
consolidation strategy |
— |
|
|
|
1,108 |
|
|
|
Merger-related expense |
— |
|
|
|
2,481 |
|
|
|
Amortization of non-compete agreements and acquired customer list
intangible assets |
343 |
|
|
|
296 |
|
|
| Total
pre-tax adjustments |
1,914 |
|
|
|
4,489 |
|
|
| Adjusted
pre-tax income |
65,921 |
|
|
|
249,456 |
|
|
| Adjusted
income tax expense |
8,240 |
|
|
|
48,644 |
|
|
| Adjusted net
income (non-GAAP) |
$ |
57,681 |
|
|
|
$ |
200,812 |
|
|
| Preferred
stock dividend |
3,948 |
|
|
|
3,922 |
|
|
| Adjusted net
income available to common stockholders (non-GAAP) |
$ |
53,733 |
|
|
|
$ |
196,890 |
|
|
| |
|
|
|
| Weighted
average diluted shares |
195,168,557 |
|
|
|
192,456,817 |
|
|
| Diluted EPS
as reported (GAAP) |
$ |
0.31 |
|
|
|
$ |
1.01 |
|
|
| Adjusted
diluted EPS (non-GAAP) |
0.28 |
|
|
|
1.02 |
|
|
23
Sterling Bancorp and SubsidiariesNON-GAAP FINANCIAL
MEASURES(unaudited, in thousands, except share and per share
data)
| The Company provides
supplemental reporting of non-GAAP/adjusted financial measures as
management believes this information is useful to investors. See
legend beginning on page 25. |
| |
For the Six Months Ended June 30, |
| |
2020 |
|
2021 |
| The following
table shows the reconciliation of reported return on average
tangible common equity and adjusted return on average tangible
common equity3: |
|
Average stockholders’ equity |
$ |
4,485,470 |
|
|
|
$ |
4,643,838 |
|
|
| Average
preferred stock |
(137,470 |
) |
|
|
(136,570 |
) |
|
| Average
goodwill and other intangibles |
(1,790,300 |
) |
|
|
(1,773,848 |
) |
|
| Average
tangible common stockholders’ equity |
2,557,700 |
|
|
|
2,733,420 |
|
|
| Net income
available to common stockholders |
$ |
60,991 |
|
|
|
$ |
193,567 |
|
|
| Net income
available to common stockholders, if annualized |
122,317 |
|
|
|
390,342 |
|
|
| Reported
return on average tangible common equity |
4.78 |
|
% |
|
14.28 |
|
% |
| Adjusted net
income available to common stockholders (see reconciliation on page
23) |
$ |
53,733 |
|
|
|
$ |
196,890 |
|
|
| Adjusted net
income available to common stockholders, if annualized |
107,761 |
|
|
|
397,043 |
|
|
| Adjusted
return on average tangible common equity |
4.21 |
|
% |
|
14.53 |
|
% |
| The following
table shows the reconciliation of reported return on avg tangible
assets and adjusted return on avg tangible
assets4: |
| Average
assets |
$ |
30,608,673 |
|
|
|
$ |
29,486,261 |
|
|
| Average
goodwill and other intangibles |
(1,790,300 |
) |
|
|
(1,773,848 |
) |
|
| Average
tangible assets |
28,818,373 |
|
|
|
27,712,413 |
|
|
| Net income
available to common stockholders |
60,991 |
|
|
|
193,567 |
|
|
| Net income
available to common stockholders, if annualized |
122,317 |
|
|
|
390,342 |
|
|
| Reported
return on average tangible assets |
0.42 |
|
% |
|
1.41 |
|
% |
| Adjusted net
income available to common stockholders (see reconciliation on page
23) |
$ |
53,733 |
|
|
|
$ |
196,890 |
|
|
| Adjusted net
income available to common stockholders, if annualized |
107,761 |
|
|
|
397,043 |
|
|
| Adjusted
return on average tangible assets |
0.38 |
|
% |
|
1.43 |
|
% |
| The following
table shows the reconciliation of the reported operating efficiency
ratio and adjusted operating efficiency
ratio5: |
| Net interest
income |
$ |
425,071 |
|
|
|
$ |
436,441 |
|
|
| Non-interest
income |
73,416 |
|
|
|
62,570 |
|
|
| Total
revenues |
498,487 |
|
|
|
499,011 |
|
|
| Tax
equivalent adjustment on securities |
6,865 |
|
|
|
6,235 |
|
|
| Net (gain)
on sale of securities |
(8,896 |
) |
|
|
(639 |
) |
|
| Depreciation
of operating leases |
(6,628 |
) |
|
|
(6,042 |
) |
|
| Adjusted
total net revenue |
489,828 |
|
|
|
498,565 |
|
|
| Non-interest
expense |
239,594 |
|
|
|
238,794 |
|
|
|
Merger-related expense |
— |
|
|
|
(2,481 |
) |
|
| Impairment
related to financial centers and real estate consolidation
strategy |
— |
|
|
|
(1,108 |
) |
|
| Loss on
extinguishment of borrowings |
(10,467 |
) |
|
|
(1,243 |
) |
|
| Depreciation
of operating leases |
(6,628 |
) |
|
|
(6,042 |
) |
|
| Amortization
of intangible assets |
(8,400 |
) |
|
|
(7,552 |
) |
|
| Adjusted
non-interest expense |
$ |
214,099 |
|
|
|
$ |
220,368 |
|
|
| Reported
operating efficiency ratio |
48.1 |
|
% |
|
47.9 |
|
% |
| Adjusted
operating efficiency ratio |
43.7 |
|
% |
|
44.2 |
|
% |
24
Sterling Bancorp and SubsidiariesNON-GAAP FINANCIAL
MEASURES(unaudited, in thousands, except share and per share
data)
The non-GAAP/as adjusted measures presented above
are used by our management and the Company’s Board of Directors on
a regular basis in addition to our GAAP results to facilitate the
assessment of our financial performance and to assess our
performance compared to our annual budget and strategic plans.
These non-GAAP/adjusted financial measures complement our GAAP
reporting and are presented above to provide investors, analysts,
regulators and others information that we use to manage and
evaluate our performance each period. This information supplements
our GAAP reported results, and should not be viewed in isolation
from, or as a substitute for, our GAAP results. When
non-GAAP/adjusted measures are impacted by income tax expense, we
present the pre-tax amount for the income and expense items that
result in the non-GAAP adjustments and present the income tax
expense impact at the effective tax rate in effect for the period
presented.
1 PPNR is a non-GAAP financial measure calculated
by summing our GAAP net interest income plus GAAP non-interest
income minus our GAAP non-interest expense and eliminating
provision for credit losses and income taxes. We believe the use of
PPNR provides useful information to readers of our financial
statements because it enables an assessment of our ability to
generate earnings to cover credit losses through a credit cycle.
Adjusted PPNR includes the adjustments we make for adjusted
earnings and excludes accretion income. We believe adjusted PPNR
supplements our PPNR calculation. We use this calculation to assess
our performance in the current operating environment.
2 Stockholders’ equity as a percentage of total
assets, book value per common share, tangible common equity as a
percentage of tangible assets and tangible book common value per
share provides information to help assess our capital position and
financial strength. We believe tangible book measures improve
comparability to other banking organizations that have not engaged
in acquisitions that have resulted in the accumulation of goodwill
and other intangible assets.
3 Reported return on average tangible common
equity and adjusted return on average tangible common equity
measures provide information to evaluate the use of our tangible
common equity.
4 Reported return on average tangible assets and
adjusted return on average tangible assets measures provide
information to help assess our profitability.
5 The reported operating efficiency ratio is a
non-GAAP measure calculated by dividing our GAAP non-interest
expense by the sum of our GAAP net interest income plus GAAP
non-interest income. The adjusted operating efficiency ratio is a
non-GAAP measure calculated by dividing non-interest expense
adjusted for intangible asset amortization and certain expenses
generally associated with discrete merger transactions and
non-recurring strategic plans by the sum of net interest income
plus non-interest income plus the tax equivalent adjustment on
securities income and elimination of the impact of gain or loss on
sale of securities. The adjusted operating efficiency ratio is a
measure we use to assess our operating performance.
6 Adjusted net income available to common
stockholders and adjusted diluted earnings per share present a
summary of our earnings, which includes adjustments to exclude
certain revenues and expenses (generally associated with discrete
merger transactions and non-recurring strategic plans) to help in
assessing our profitability.
25
|
STERLING BANCORP CONTACT: |
|
Emlen Harmon, Senior Managing Director - Investor
Relations |
|
212.309.7646 |
|
http://www.sterlingbancorp.com |
Grafico Azioni Sterling BanCorp (NYSE:STL)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Sterling BanCorp (NYSE:STL)
Storico
Da Giu 2023 a Giu 2024
