Sterling Bancorp Reports First Quarter 2022 Financial Results
Sterling Bancorp reported first-quarter 2022 net income of $5.3 million or $0.10 per diluted share, compared to $8.1 million or $0.16 per diluted share in Q4 2021. The bank's net interest margin increased to 3.03%. Nonperforming loans decreased to 2.50% of total loans. Total assets fell to $2.8 billion, and total deposits decreased 3% to $2.2 billion. Despite a decline in total loans, capital ratios remain strong, exceeding required minimums. Management indicated progress on regulatory matters and improving credit quality.
- Net income of $5.3 million, or $0.10 per diluted share.
- Net interest margin increased to 3.03%.
- Decrease in nonperforming loans to 2.50% of total loans held for investment.
- Strong capital ratios: 23.29% total risk-based capital ratio.
- Significant reduction in nonperforming assets to 1.93% of total assets.
- Net income down from $8.1 million in Q4 2021.
- Total loans decreased by $138.2 million, or 7%.
- Total deposits declined by $61.6 million, or 3%.
- Shareholders' equity decreased to $341.4 million.
First Quarter 2022 Highlights
-
Net income of
$5.3 million $0.10 -
Net interest margin of
3.03% -
Non-interest expense of
$19.4 million -
Provision (recovery) for loan losses of
$(4.3) million 2.80% -
Shareholders’ equity of
$341.4 million -
Bank capital ratios continue to be in excess of minimum ratios required to be considered “well-capitalized” with a leverage ratio of
13.65% , a total risk-based capital ratio of23.29% and a common equity tier one ratio of22.02% -
The Company’s consolidated leverage ratio of
12.23% , total risk-based capital ratio of23.21% and common equity tier one ratio of19.72% continue to exceed minimum regulatory capital requirements -
Total deposits of
$2.2 billion -
Total gross loans of
$1.9 billion -
Nonperforming loans and troubled debt restructurings were
$46.9 million 2.50% of total loans held for investment) compared to$65.3 million 3.25% of total loans held for investment) atDecember 31, 2021 -
Sale of commercial real estate loans held for sale, primarily consisting of loans secured by single-room occupancy hotel properties, for cash proceeds of
$49.6 million
The Company reported net income of
“Sterling’s first quarter of 2022 produced several improvements and milestones. Most importantly, our credit quality metrics continue the improvement that we have witnessed over the past few quarters. This was accomplished by both the continued hard work of our credit loss mitigation efforts and the successful sale of higher risk single room occupancy loans with original balances of approximately
Balance Sheet
Total Assets – Total assets of
Cash and due from banks increased
Total loans held for investment of
Total Deposits – Total deposits of
Capital – Total shareholders’ equity was
The Bank, after consultation with the
| Minimum Requirements |
Company Actual at |
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| Total adjusted capital to risk-weighted assets |
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| Tier 1 (core) capital to risk-weighted assets |
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| Common Equity Tier 1 (CET1) |
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| Tier 1 (core) capital to adjusted tangible assets (leverage ratio) |
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| To Be Well Capitalized |
Bank Actual at |
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| Total adjusted capital to risk-weighted assets |
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| Tier 1 (core) capital to risk-weighted assets |
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|
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| Common Equity Tier 1 (CET1) |
|
|
|
| Tier 1 (core) capital to adjusted tangible assets (leverage ratio) |
|
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Asset Quality and Provision (Recovery) for Loan Losses – A provision (recovery) for loan losses of
Net recoveries during the first quarter of 2022 were
Nonperforming assets at
“We continue to see improvement across all of our credit metrics. Included in the nonperforming assets are
Results of Operations
Net Interest Income and Net Interest Margin – Net interest income for the first quarter of 2022 was
The net interest margin of
Non-Interest Income – Non-interest income for the first quarter of 2022 was
Non-Interest Expense – Non-interest expense of
Income Tax Expense – The effective tax rate was
Mr. O’Brien said, “Finally, the government investigations with respect to the Advantage Loan Program have progressed significantly, and we have recently commenced discussions with the
Conference Call and Webcast
Management will host a conference call on
A replay of the conference call may be accessed through
About
Forward-Looking Statements
This press release contains certain statements that are, or may be deemed to be, “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding the Company’s plans, expectations, thoughts, beliefs, estimates, goals and outlook for the future that are intended to be covered by the protections provided under the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “might,” “should,” “could,” “predict,” “potential,” “believe,” “expect,” “attribute,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “goal,” “target,” “outlook,” “aim,” “would” and “annualized,” or the negative versions of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and they are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. The risks, uncertainties and other factors detailed from time to time in our public filings, including those included in the disclosures under the headings “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in our Annual Report on Form 10-K filed with the
| Consolidated Financial Highlights (Unaudited) | ||||||||||||
| At and for the Three Months Ended | ||||||||||||
| (dollars in thousands, except per share data) | 2022 |
2021 |
2021 |
|||||||||
| Net income | $ |
5,260 |
|
$ |
8,056 |
|
$ |
2,325 |
|
|||
| Income per share, diluted | $ |
0.10 |
|
$ |
0.16 |
|
$ |
0.05 |
|
|||
| Net interest income | $ |
21,272 |
|
$ |
21,718 |
|
$ |
23,227 |
|
|||
| Net interest margin |
|
3.03 |
% |
|
2.94 |
% |
|
2.45 |
% |
|||
| Non-interest income | $ |
1,411 |
|
$ |
3,564 |
|
$ |
453 |
|
|||
| Non-interest expense | $ |
19,423 |
|
$ |
19,864 |
|
$ |
21,334 |
|
|||
| Loans, net of allowance for loan losses | $ |
1,822,186 |
|
$ |
1,956,266 |
|
$ |
2,389,599 |
|
|||
| Total deposits(1) | $ |
2,200,172 |
|
$ |
2,261,735 |
|
$ |
2,914,762 |
|
|||
| Nonperforming loans | $ |
44,229 |
|
$ |
62,654 |
|
$ |
83,578 |
|
|||
| Allowance for loan losses to total loans |
|
2.80 |
% |
|
2.81 |
% |
|
2.92 |
% |
|||
| Allowance for loan losses to nonaccrual loans |
|
119 |
% |
|
90 |
% |
|
86 |
% |
|||
| Nonaccrual loans to total loans outstanding |
|
2.36 |
% |
|
3.11 |
% |
|
3.39 |
% |
|||
| Net charge offs (recoveries) during the period to average loans outstanding during the period |
|
(0.01 |
)% |
|
0.35 |
% |
|
(0.01 |
)% |
|||
| Provision (recovery) for loan losses | $ |
(4,289 |
) |
$ |
(6,119 |
) |
$ |
(737 |
) |
|||
| Net charge offs (recoveries) | $ |
(196 |
) |
$ |
7,571 |
|
$ |
(221 |
) |
|||
| Return on average assets |
|
0.74 |
% |
|
1.07 |
% |
|
0.24 |
% |
|||
| Return on average shareholders' equity |
|
6.08 |
% |
|
9.49 |
% |
|
2.87 |
% |
|||
| Efficiency ratio |
|
85.63 |
% |
|
78.57 |
% |
|
90.09 |
% |
|||
| Capital Ratios | ||||||||||||
| Regulatory and Other Capital Ratios— Consolidated: | ||||||||||||
| Total adjusted capital to risk-weighted assets |
|
23.21 |
% |
|
29.02 |
% |
|
23.52 |
% |
|||
| Tier 1 (core) capital to risk-weighted assets |
|
19.72 |
% |
|
24.08 |
% |
|
18.48 |
% |
|||
| Common Equity Tier 1 (CET1) |
|
19.72 |
% |
|
24.08 |
% |
|
18.48 |
% |
|||
| Tier 1 (core) capital to adjusted tangible assets (leverage ratio) |
|
12.23 |
% |
|
11.47 |
% |
|
8.34 |
% |
|||
| Regulatory and Other Capital Ratios—Bank: | ||||||||||||
| Total adjusted capital to risk-weighted assets |
|
23.29 |
% |
|
28.07 |
% |
|
22.66 |
% |
|||
| Tier 1 (core) capital to risk-weighted assets |
|
22.02 |
% |
|
26.79 |
% |
|
21.37 |
% |
|||
| Common Equity Tier 1 (CET1) |
|
22.02 |
% |
|
26.79 |
% |
|
21.37 |
% |
|||
| Tier 1 (core) capital to adjusted tangible assets (leverage ratio) |
|
13.65 |
% |
|
12.77 |
% |
|
9.60 |
% |
|||
| (1) Refer to note to the condensed consolidated balance sheets. | ||||||||||||
| Condensed Consolidated Balance Sheets (Unaudited) | ||||||||||||||||||
| (dollars in thousands) | 2022 |
2021 |
% change |
2021 |
% change |
|||||||||||||
| Assets | ||||||||||||||||||
| Cash and due from banks | $ |
486,743 |
|
$ |
411,676 |
|
18 |
% |
$ |
873,223 |
(44 |
)% |
||||||
| Interest-bearing time deposits with other banks |
|
1,183 |
|
|
1,183 |
|
0 |
% |
|
5,528 |
(79 |
)% |
||||||
| Investment securities |
|
364,361 |
|
|
313,879 |
|
16 |
% |
|
259,686 |
40 |
% |
||||||
| Loans held for sale |
|
12,230 |
|
|
64,987 |
|
(81 |
)% |
|
19,848 |
(38 |
)% |
||||||
| Loans, net of allowance for loan losses of |
|
1,822,186 |
|
|
1,956,266 |
|
(7 |
)% |
|
2,389,599 |
(24 |
)% |
||||||
| Accrued interest receivable |
|
6,655 |
|
|
7,696 |
|
(14 |
)% |
|
10,439 |
(36 |
)% |
||||||
| Mortgage servicing rights, net |
|
2,888 |
|
|
2,722 |
|
6 |
% |
|
4,626 |
(38 |
)% |
||||||
| Leasehold improvements and equipment, net |
|
7,144 |
|
|
7,421 |
|
(4 |
)% |
|
9,085 |
(21 |
)% |
||||||
| Operating lease right-of-use assets |
|
17,210 |
|
|
18,184 |
|
(5 |
)% |
|
18,791 |
(8 |
)% |
||||||
|
20,288 |
|
|
22,950 |
|
(12 |
)% |
|
22,950 |
(12 |
)% |
|||||||
| Cash surrender value of bank-owned life insurance |
|
33,163 |
|
|
33,033 |
|
0 |
% |
|
32,631 |
2 |
% |
||||||
| Deferred tax asset, net |
|
20,865 |
|
|
21,426 |
|
(3 |
)% |
|
24,104 |
(13 |
)% |
||||||
| Other assets |
|
14,213 |
|
|
15,407 |
|
(8 |
)% |
|
23,517 |
(40 |
)% |
||||||
| Total assets | $ |
2,809,129 |
|
$ |
2,876,830 |
|
(2 |
)% |
$ |
3,694,027 |
(24 |
)% |
||||||
| Liabilities | ||||||||||||||||||
| Noninterest-bearing deposits(1) | $ |
64,944 |
|
$ |
63,760 |
|
2 |
% |
$ |
65,320 |
(1 |
)% |
||||||
| Interest-bearing deposits(2) |
|
2,135,228 |
|
|
2,197,975 |
|
(3 |
)% |
|
2,771,407 |
(23 |
)% |
||||||
| Deposits held for sale(3) |
|
— |
|
|
— |
|
— |
|
|
78,035 |
(100 |
)% |
||||||
| Total deposits |
|
2,200,172 |
|
|
2,261,735 |
|
(3 |
)% |
|
2,914,762 |
(25 |
)% |
||||||
|
150,000 |
|
|
150,000 |
|
0 |
% |
|
318,000 |
(53 |
)% |
|||||||
| Subordinated notes, net |
|
65,326 |
|
|
65,343 |
|
0 |
% |
|
65,384 |
0 |
% |
||||||
| Operating lease liabilities |
|
18,421 |
|
|
19,400 |
|
(5 |
)% |
|
20,056 |
(8 |
)% |
||||||
| Accrued expenses and other liabilities(1)(2) |
|
33,804 |
|
|
36,725 |
|
(8 |
)% |
|
53,909 |
(37 |
)% |
||||||
| Total liabilities |
|
2,467,723 |
|
|
2,533,203 |
|
(3 |
)% |
|
3,372,111 |
(27 |
)% |
||||||
| Shareholders’ Equity | ||||||||||||||||||
| Preferred stock, authorized 10,000,000 shares; no shares issued and outstanding |
|
— |
|
|
— |
|
— |
|
|
— |
— |
|
||||||
| Common stock, no par value, authorized 500,000,000 shares; issued and outstanding 50,496,833 shares at |
|
82,157 |
|
|
82,157 |
|
0 |
% |
|
80,807 |
2 |
% |
||||||
| Additional paid-in capital |
|
14,186 |
|
|
14,124 |
|
0 |
% |
|
13,603 |
4 |
% |
||||||
| Retained earnings |
|
253,503 |
|
|
248,243 |
|
2 |
% |
|
227,178 |
12 |
% |
||||||
| Accumulated other comprehensive income (loss) |
|
(8,440 |
) |
|
(897 |
) |
N/M |
|
|
328 |
N/M |
|
||||||
| Total shareholders’ equity |
|
341,406 |
|
|
343,627 |
|
(1 |
)% |
|
321,916 |
6 |
% |
||||||
| Total liabilities and shareholders’ equity | $ |
2,809,129 |
|
$ |
2,876,830 |
|
(2 |
)% |
$ |
3,694,027 |
(24 |
)% |
||||||
| N/M- not meaningful | ||||||||||||||||||
| (1) (2) Certain prior period amounts have been reclassified to conform with the current period presentation. The Company has (1) reclassified custodial escrow balances maintained with serviced loans of |
||||||||||||||||||
| (3) Deposits held for sale were transferred on the sale of the |
||||||||||||||||||
| Condensed Consolidated Statements of Income (Unaudited) | ||||||||||||||||||
| Three Months Ended | ||||||||||||||||||
| (dollars in thousands, except per share amounts) | 2022 |
2021 |
% change |
2021 |
% change |
|||||||||||||
| Interest income | ||||||||||||||||||
| Interest and fees on loans | $ |
23,868 |
|
$ |
25,106 |
|
(5 |
)% |
$ |
31,294 |
|
(24 |
)% |
|||||
| Interest and dividends on investment securities and restricted stock |
|
835 |
|
|
644 |
|
30 |
% |
|
390 |
|
N/M |
|
|||||
| Other interest |
|
215 |
|
|
182 |
|
18 |
% |
|
263 |
|
(18 |
)% |
|||||
| Total interest income |
|
24,918 |
|
|
25,932 |
|
(4 |
)% |
|
31,947 |
|
(22 |
)% |
|||||
| Interest expense | ||||||||||||||||||
| Interest on deposits |
|
2,330 |
|
|
2,637 |
|
(12 |
)% |
|
6,702 |
|
(65 |
)% |
|||||
| Interest on |
|
352 |
|
|
607 |
|
(42 |
)% |
|
838 |
|
(58 |
)% |
|||||
| Interest on subordinated notes |
|
964 |
|
|
970 |
|
(1 |
)% |
|
1,180 |
|
(18 |
)% |
|||||
| Total interest expense |
|
3,646 |
|
|
4,214 |
|
(13 |
)% |
|
8,720 |
|
(58 |
)% |
|||||
| Net interest income |
|
21,272 |
|
|
21,718 |
|
(2 |
)% |
|
23,227 |
|
(8 |
)% |
|||||
| Provision (recovery) for loan losses |
|
(4,289 |
) |
|
(6,119 |
) |
30 |
% |
|
(737 |
) |
N/M |
|
|||||
| Net interest income after recovery of loan losses |
|
25,561 |
|
|
27,837 |
|
(8 |
)% |
|
23,964 |
|
7 |
% |
|||||
| Non-interest income | ||||||||||||||||||
| Service charges and fees |
|
122 |
|
|
86 |
|
42 |
% |
|
159 |
|
(23 |
)% |
|||||
| Gain on sale of mortgage loans held for sale |
|
197 |
|
|
15 |
|
N/M |
|
|
398 |
|
(51 |
)% |
|||||
| Unrealized losses on equity securities |
|
(236 |
) |
|
(43 |
) |
N/M |
|
|
(90 |
) |
(2 |
) |
|||||
| Net servicing income (loss) |
|
443 |
|
|
161 |
|
N/M |
|
|
(430 |
) |
N/M |
|
|||||
| Income on cash surrender value of bank-owned life insurance |
|
328 |
|
|
326 |
|
1 |
% |
|
313 |
|
5 |
% |
|||||
| Other |
|
557 |
|
|
3,019 |
|
(82 |
)% |
|
103 |
|
N/M |
|
|||||
| Total non-interest income |
|
1,411 |
|
|
3,564 |
|
(60 |
)% |
|
453 |
|
N/M |
|
|||||
| Non-interest expense | ||||||||||||||||||
| Salaries and employee benefits |
|
9,617 |
|
|
8,920 |
|
8 |
% |
|
7,848 |
|
23 |
% |
|||||
| Occupancy and equipment |
|
2,142 |
|
|
2,268 |
|
(6 |
)% |
|
2,196 |
|
(2 |
)% |
|||||
| Professional fees |
|
5,157 |
|
|
6,209 |
|
(17 |
)% |
|
8,755 |
|
(41 |
)% |
|||||
|
369 |
|
|
393 |
|
(6 |
)% |
|
719 |
|
(49 |
)% |
||||||
| Data processing |
|
805 |
|
|
711 |
|
13 |
% |
|
346 |
|
N/M |
|
|||||
| Net recovery of mortgage repurchase liability |
|
(213 |
) |
|
(271 |
) |
21 |
% |
|
(153 |
) |
(39 |
)% |
|||||
| Other |
|
1,546 |
|
|
1,634 |
|
(5 |
)% |
|
1,623 |
|
(5 |
)% |
|||||
| Total non-interest expense |
|
19,423 |
|
|
19,864 |
|
(2 |
)% |
|
21,334 |
|
(9 |
)% |
|||||
| Income before income taxes |
|
7,549 |
|
|
11,537 |
|
(35 |
)% |
|
3,083 |
|
N/M |
|
|||||
| Income tax expense |
|
2,289 |
|
|
3,481 |
|
(34 |
)% |
|
758 |
|
N/M |
|
|||||
| Net income | $ |
5,260 |
|
$ |
8,056 |
|
(35 |
)% |
$ |
2,325 |
|
N/M |
|
|||||
| Income per share, basic and diluted | $ |
0.10 |
|
$ |
0.16 |
|
$ |
0.05 |
|
|||||||||
| Weighted average common shares outstanding: | ||||||||||||||||||
| Basic |
|
50,191,288 |
|
|
50,167,295 |
|
|
49,851,202 |
|
|||||||||
| Diluted |
|
50,406,123 |
|
|
50,316,155 |
|
|
49,912,860 |
|
|||||||||
| N/M- not meaningful | ||||||||||||||||||
| Selected Financial Data (Unaudited) | ||||||
| Three Months Ended | ||||||
| Performance Ratios: | 2022 |
2021 |
2021 |
|||
| Return on average assets |
|
|
|
|||
| Return on average shareholders' equity |
|
|
|
|||
| Yield on average interest earning assets |
|
|
|
|||
| Cost of average interest-bearing liabilities |
|
|
|
|||
| Net interest spread |
|
|
|
|||
| Net interest margin |
|
|
|
|||
| Efficiency ratio(1) |
|
|
|
|||
| (1) Efficiency Ratio is computed as the ratio of non-interest expense divided by the sum of net interest income and non-interest income. | ||||||
| Yield Analysis and Net Interest Income (Unaudited) | |||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||
| (dollars in thousands) | Average Balance |
Interest | Average Yield/ Rate |
Average Balance |
Interest | Average Yield/ Rate |
Average Balance |
Interest | Average Yield/ Rate |
||||||||||||||||||
| Interest-earning assets | |||||||||||||||||||||||||||
| Loans(1) | |||||||||||||||||||||||||||
| Residential real estate and other consumer | $ |
1,660,692 |
$ |
18,278 |
4.40 |
% |
$ |
1,775,663 |
$ |
19,593 |
4.41 |
% |
$ |
2,006,112 |
$ |
24,596 |
4.90 |
% |
|||||||||
| Commercial real estate |
|
247,044 |
|
3,436 |
5.56 |
% |
|
281,844 |
|
3,351 |
4.76 |
% |
|
256,610 |
|
3,183 |
4.96 |
% |
|||||||||
| Construction |
|
95,123 |
|
2,149 |
9.04 |
% |
|
114,974 |
|
2,139 |
7.44 |
% |
|
198,628 |
|
3,412 |
6.87 |
% |
|||||||||
| Commercial lines of credit |
|
350 |
|
5 |
5.71 |
% |
|
1,622 |
|
23 |
5.67 |
% |
|
5,687 |
|
103 |
7.24 |
% |
|||||||||
| Total loans |
|
2,003,209 |
|
23,868 |
4.77 |
% |
|
2,174,103 |
|
25,106 |
4.62 |
% |
|
2,467,037 |
|
31,294 |
5.07 |
% |
|||||||||
| Securities, includes restricted stock(2) |
|
350,150 |
|
835 |
0.95 |
% |
|
300,435 |
|
644 |
0.86 |
% |
|
312,969 |
|
390 |
0.50 |
% |
|||||||||
| Other interest-earning assets |
|
452,651 |
|
215 |
0.19 |
% |
|
484,631 |
|
182 |
0.15 |
% |
|
1,017,642 |
|
263 |
0.10 |
% |
|||||||||
| Total interest-earning assets |
|
2,806,010 |
|
24,918 |
3.55 |
% |
|
2,959,169 |
|
25,932 |
3.51 |
% |
|
3,797,648 |
|
31,947 |
3.36 |
% |
|||||||||
| Noninterest-earning assets | |||||||||||||||||||||||||||
| Cash and due from banks |
|
4,016 |
|
4,216 |
|
7,806 |
|||||||||||||||||||||
| Other assets |
|
43,322 |
|
36,201 |
|
42,969 |
|||||||||||||||||||||
| Total assets | $ |
2,853,348 |
$ |
2,999,586 |
$ |
3,848,423 |
|||||||||||||||||||||
| Interest-bearing liabilities | |||||||||||||||||||||||||||
| Money market, savings and NOW | $ |
1,310,848 |
$ |
707 |
0.22 |
% |
$ |
1,304,133 |
$ |
711 |
0.22 |
% |
$ |
1,382,390 |
$ |
935 |
0.27 |
% |
|||||||||
| Time deposits(3) |
|
861,785 |
|
1,623 |
0.76 |
% |
|
927,129 |
|
1,926 |
0.82 |
% |
|
1,615,949 |
|
5,767 |
1.45 |
% |
|||||||||
| Total interest-bearing deposits |
|
2,172,633 |
|
2,330 |
0.43 |
% |
|
2,231,262 |
|
2,637 |
0.47 |
% |
|
2,998,339 |
|
6,702 |
0.91 |
% |
|||||||||
| FHLB borrowings |
|
150,000 |
|
352 |
0.94 |
% |
|
233,413 |
|
607 |
1.02 |
% |
|
318,013 |
|
838 |
1.05 |
% |
|||||||||
| Subordinated notes, net |
|
65,337 |
|
964 |
5.90 |
% |
|
65,354 |
|
970 |
5.94 |
% |
|
65,358 |
|
1,180 |
7.22 |
% |
|||||||||
| Total borrowings |
|
215,337 |
|
1,316 |
2.44 |
% |
|
298,767 |
|
1,577 |
2.07 |
% |
|
383,371 |
|
2,018 |
2.11 |
% |
|||||||||
| Total interest-bearing liabilities |
|
2,387,970 |
|
3,646 |
0.62 |
% |
|
2,530,029 |
|
4,214 |
0.66 |
% |
|
3,381,710 |
|
8,720 |
1.05 |
% |
|||||||||
| Noninterest-bearing liabilities | |||||||||||||||||||||||||||
| Demand deposits(4) |
|
64,119 |
|
65,083 |
|
66,103 |
|||||||||||||||||||||
| Other liabilities(3)(4) |
|
55,479 |
|
64,841 |
|
76,603 |
|||||||||||||||||||||
| Shareholders' equity |
|
345,780 |
|
339,633 |
|
324,007 |
|||||||||||||||||||||
| Total liabilities and shareholders' equity | $ |
2,853,348 |
$ |
2,999,586 |
$ |
3,848,423 |
|||||||||||||||||||||
| Net interest income and spread(2) | $ |
21,272 |
2.93 |
% |
$ |
21,718 |
2.85 |
% |
$ |
23,227 |
2.31 |
% |
|||||||||||||||
| Net interest margin(2) | 3.03 |
% |
2.94 |
% |
2.45 |
% |
|||||||||||||||||||||
| (1) Nonaccrual loans are included in the respective average loan balances. Income, if any, on such loans is recognized on a cash basis. | |||||||||||||||||||||||||||
| (2) Interest income does not include taxable equivalence adjustments. | |||||||||||||||||||||||||||
| (3) (4) Certain prior period amounts have been reclassified to conform with the current period presentation. The Company has (3) reclassified accrued interest on outstanding time deposits from other liabilities to interest-bearing deposits and (4) reclassified custodial escrow balances maintained with serviced loans from other liabilities to noninterest-bearing deposits in the average consolidated balance sheet at |
|||||||||||||||||||||||||||
| Loan Composition (Unaudited) | ||||||||||||||||||
| (dollars in thousands) | 2022 |
2021 |
% change |
2021 |
% change |
|||||||||||||
| Residential real estate | $ |
1,580,759 |
|
$ |
1,704,231 |
|
(7 |
)% |
$ |
2,008,439 |
|
(21 |
)% |
|||||
| Commercial real estate |
|
219,767 |
|
|
201,240 |
|
9 |
% |
|
263,508 |
|
(17 |
)% |
|||||
| Construction |
|
73,778 |
|
|
106,759 |
|
(31 |
)% |
|
184,490 |
|
(60 |
)% |
|||||
| Commercial lines of credit |
|
334 |
|
|
363 |
|
(8 |
)% |
|
5,029 |
|
(93 |
)% |
|||||
| Other consumer |
|
3 |
|
|
221 |
|
(99 |
)% |
|
4 |
|
(25 |
)% |
|||||
| Total loans held for investment |
|
1,874,641 |
|
|
2,012,814 |
|
(7 |
)% |
|
2,461,470 |
|
(24 |
)% |
|||||
| Less: allowance for loan losses |
|
(52,455 |
) |
|
(56,548 |
) |
(7 |
)% |
|
(71,871 |
) |
(27 |
)% |
|||||
| Loans, net | $ |
1,822,186 |
|
$ |
1,956,266 |
|
(7 |
)% |
$ |
2,389,599 |
|
(24 |
)% |
|||||
| Loans held for sale | $ |
12,230 |
|
$ |
64,987 |
|
(81 |
)% |
$ |
19,848 |
|
(38 |
)% |
|||||
| Total gross loans | $ |
1,886,871 |
|
$ |
2,077,801 |
|
(9 |
)% |
$ |
2,481,318 |
|
(24 |
)% |
|||||
| Allowance for Loan Losses (Unaudited) | ||||||||||||
| Three Months Ended | ||||||||||||
| (dollars in thousands) | 2022 |
2021 |
2021 |
|||||||||
| Balance at beginning of period | $ |
56,548 |
|
$ |
70,238 |
|
$ |
72,387 |
|
|||
| Provision (recovery) for loan losses |
|
(4,289 |
) |
|
(6,119 |
) |
|
(737 |
) |
|||
| Charge offs |
|
— |
|
|
(7,921 |
) |
|
— |
|
|||
| Recoveries |
|
196 |
|
|
350 |
|
|
221 |
|
|||
| Balance at end of period | $ |
52,455 |
|
$ |
56,548 |
|
$ |
71,871 |
|
|||
| Deposit Composition (Unaudited) | ||||||||||||||||||
| (dollars in thousands) | 2022 |
2021 |
% change |
2021 |
% change |
|||||||||||||
| Noninterest-bearing deposits(1) | $ |
64,944 |
$ |
63,760 |
2 |
% |
$ |
65,320 |
(1 |
)% |
||||||||
| Money Market, Savings and NOW |
|
1,319,444 |
|
1,306,155 |
1 |
% |
|
1,292,572 |
2 |
% |
||||||||
| Time deposits(2) |
|
815,784 |
|
891,820 |
(9 |
)% |
|
1,478,835 |
(45 |
)% |
||||||||
| Deposits held for sale(3) |
|
— |
|
— |
— |
|
|
78,035 |
(100 |
)% |
||||||||
| Total deposits | $ |
2,200,172 |
$ |
2,261,735 |
(3 |
)% |
$ |
2,914,762 |
(25 |
)% |
||||||||
| (1) The Company has included custodial escrow balances maintained with serviced loans of |
||||||||||||||||||
| (2) The Company has included accrued interest on outstanding time deposits of |
||||||||||||||||||
| (3) Deposits held for sale were transferred on the sale of the |
||||||||||||||||||
| Credit Quality Data (Unaudited) | ||||||||||||
| At and for the Three Months Ended | ||||||||||||
| (dollars in thousands) | 2022 |
2021 |
2021 |
|||||||||
| Nonperforming residential real estate loans(1) | $ |
38,338 |
|
$ |
45,714 |
|
$ |
27,680 |
|
|||
| Nonperforming commercial loans(1)(2) |
|
5,891 |
|
|
16,940 |
|
|
55,898 |
|
|||
| Total nonperforming loans(1) | $ |
44,229 |
|
$ |
62,654 |
|
$ |
83,578 |
|
|||
| Nonperforming loans to total loans(1) |
|
2.36 |
% |
|
3.11 |
% |
|
3.40 |
% |
|||
| Other troubled debt restructurings(2) | $ |
2,662 |
|
$ |
2,664 |
|
$ |
7,646 |
|
|||
| Nonaccrual loans held for sale | $ |
7,249 |
|
$ |
18,026 |
|
$ |
18,572 |
|
|||
| Nonperforming assets(3) | $ |
54,140 |
|
$ |
83,344 |
|
$ |
109,963 |
|
|||
| Nonperforming assets to total assets |
|
1.93 |
% |
|
2.90 |
% |
|
2.98 |
% |
|||
| Allowance for loan losses to total loans |
|
2.80 |
% |
|
2.81 |
% |
|
2.92 |
% |
|||
| Allowance for loan losses to nonaccrual loans |
|
119 |
% |
|
90 |
% |
|
86 |
% |
|||
| Nonaccrual loans to total loans outstanding |
|
2.36 |
% |
|
3.11 |
% |
|
3.39 |
% |
|||
| Net charge offs (recoveries) to average loans |
|
(0.01 |
)% |
|
0.35 |
% |
|
(0.01 |
)% |
|||
| (1) Nonperforming loans include nonaccrual loans (including troubled debt restructurings on nonaccrual status) of |
||||||||||||
| (2) Other troubled debt restructurings exclude those loans presented as nonaccrual or past due 90 days or more and still accruing interest. | ||||||||||||
| (3) Nonperforming assets include nonperforming loans, nonaccrual loans held for sale, other troubled debt restructurings and other loan collateral acquired through foreclosure or repossession. | ||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20220502005358/en/
Investor Contact:
Executive Vice President and Chief Financial Officer
(248) 359-6624
kzaborney@sterlingbank.com
Source:
FAQ
What were Sterling Bancorp's earnings for Q1 2022?
How did Sterling Bancorp's net interest margin change in Q1 2022?
What is the status of Sterling Bancorp's nonperforming loans?
What is Sterling Bancorp's total assets as of March 31, 2022?
How did Sterling Bancorp's total deposits change in Q1 2022?
