Sterling Bancorp Reports Second Quarter 2024 Financial Results
Sterling Bancorp (NASDAQ: SBT) reported net income of $1.3 million, or $0.03 per diluted share, for Q2 2024. Key highlights include:
- Net interest margin of 2.44%
- Nonperforming loans at 0.97% of total loans
- Recovery of credit losses of $2.1 million
- Total deposits of $2.0 billion
- Total gross loans of $1.3 billion
- Shareholders' equity of $328.9 million
The company's focus remains on protecting book value and financial position while exploring opportunities to reposition and increase net income. Credit quality and capital ratios remain strong, with some growth in the commercial portfolio offsetting declining residential loans.
Sterling Bancorp (NASDAQ: SBT) ha riportato un utile netto di 1,3 milioni di dollari, pari a 0,03 dollari per azione diluita, per il secondo trimestre del 2024. I punti salienti includono:
- Margine di interesse netto del 2,44%
- Prestiti non performanti allo 0,97% del totale dei prestiti
- Recupero di perdite creditizie di 2,1 milioni di dollari
- Depositi totali di 2,0 miliardi di dollari
- Prestiti lordi totali di 1,3 miliardi di dollari
- Capitale netto degli azionisti di 328,9 milioni di dollari
La priorità dell'azienda rimane quella di proteggere il valore contabile e la posizione finanziaria, esplorando nel contempo opportunità per riposizionarsi e aumentare l'utile netto. La qualità del credito e i rapporti di capitale rimangono solidi, con una certa crescita nel portafoglio commerciale che compensano il calo dei prestiti residenziali.
Sterling Bancorp (NASDAQ: SBT) reportó un ingreso neto de 1.3 millones de dólares, o 0.03 dólares por acción diluida, para el segundo trimestre de 2024. Los aspectos destacados incluyen:
- Margen de interés neto del 2.44%
- Préstamos no rentables en el 0.97% del total de préstamos
- Recuperación de pérdidas crediticias de 2.1 millones de dólares
- Depósitos totales de 2.0 mil millones de dólares
- Total de préstamos brutos de 1.3 mil millones de dólares
- Patrimonio de los accionistas de 328.9 millones de dólares
El enfoque de la empresa sigue siendo proteger el valor contable y la posición financiera, al mismo tiempo que explora oportunidades para reposicionarse y aumentar los ingresos netos. La calidad crediticia y los ratios de capital se mantienen sólidos, con un cierto crecimiento en el portafolio comercial que compensa la disminución de los préstamos residenciales.
스털링 뱅코프(NASDAQ: SBT)는 2024년 2분기 130만 달러의 순이익, 즉 희석 주당 0.03 달러를 보고했습니다. 주요 내용은 다음과 같습니다:
- 순이자 마진 2.44%
- 부실채권 비율 0.97%
- 신용 손실 회복 210만 달러
- 총 예금 20억 달러
- 총 원금 대출 13억 달러
- 주주 자본 3억 2,890만 달러
회사의 초점은 장부 가치를 보호하고 재무 상태를 유지하는 동시에 순이익을 증대시키기 위한 기회를 모색하는 것입니다. 신용 품질과 자본 비율은 여전히 강력하며, 일부 상업적 포트폴리오의 성장이 주택 대출 감소를 상쇄하고 있습니다.
Sterling Bancorp (NASDAQ: SBT) a annoncé un revenu net de 1,3 million de dollars, soit 0,03 dollar par action diluée, pour le 2ème trimestre 2024. Les points clés incluent :
- Marge d'intérêt nette de 2,44%
- Prêts non performants à 0,97% du total des prêts
- Récupération de pertes de crédit s'élevant à 2,1 millions de dollars
- Dépôts totaux de 2,0 milliards de dollars
- Total des prêts bruts de 1,3 milliard de dollars
- Capitaux propres des actionnaires de 328,9 millions de dollars
La priorité de l'entreprise reste de protéger la valeur comptable et la position financière tout en explorant des opportunités pour se repositionner et augmenter le revenu net. La qualité du crédit et les ratios de capital restent solides, avec une certaine croissance dans le portefeuille commercial compensant le déclin des prêts résidentiels.
Sterling Bancorp (NASDAQ: SBT) hat für das 2. Quartal 2024 einen Nettogewinn von 1,3 Millionen Dollar, bzw. 0,03 Dollar je verwässerter Aktie, gemeldet. Zu den wichtigsten Punkten gehören:
- Nettovorzugszinsmarge von 2,44%
- Nicht leistungsfähige Kredite bei 0,97% der Gesamtkredite
- Rückgewinnung von Kreditverlusten in Höhe von 2,1 Millionen Dollar
- Gesamteinlagen von 2,0 Milliarden Dollar
- Gesamte Bruttokredite von 1,3 Milliarden Dollar
- Eigenkapital der Aktionäre von 328,9 Millionen Dollar
Das Unternehmen konzentriert sich darauf, den Buchwert und die finanzielle Position zu schützen, während es gleichzeitig Möglichkeiten zur Neupositionierung und Erhöhung des Nettogewinns erkundet. Die Kreditqualität und die Kapitalquoten bleiben stark, wobei ein gewisses Wachstum im gewerblichen Portfolio den Rückgang der Wohnungsbaudarlehen ausgleicht.
- Net income improved to $1.3 million from a net loss in the previous quarter
- Strong capital ratios with consolidated leverage ratio of 14.26%
- Recovery of credit losses of $2.1 million
- Growth in commercial real estate loans by $32.7 million
- Decrease in non-interest expense by $0.5 million or 3%
- Net interest margin decreased to 2.44% from 2.52% in the previous quarter
- Total assets decreased by $39.8 million or 2%
- Total gross loans decreased by $39.0 million or 3%
- Residential real estate loans decreased by $68.1 million
- Nonperforming loans increased to 0.51% of total assets from 0.39% in the previous quarter
Insights
Second Quarter 2024 Highlights
-
Net income of
, or$1.3 million per diluted share$0.03 -
Net interest margin of
2.44% -
Nonperforming loans of
,$12.2 million 0.97% of total loans and0.51% of total assets -
Provision for (recovery of) credit losses of
; ratio of allowance for credit losses to total loans of$(2.1) million 2.18% -
Non-interest expense of
$14.9 million -
Shareholders’ equity of
$328.9 million -
Company’s consolidated and Bank’s leverage ratio of
14.26% and13.80% , respectively -
Total deposits of
$2.0 billion -
Total gross loans of
$1.3 billion
The Company reported net income of
“Our focus remains fixed on protecting book value and Sterling’s financial position while we continue to explore opportunities to prudently reposition the Company and increase net income. The margin compression experienced by Sterling is generally consistent with what is being felt in much of the community banking industry. Additionally, our substantial level of liquidity continues to exert some downward pressure on earnings. Credit quality remains strong as do our capital ratios. The capital markets have seen some welcome signs of life and recent activity continues to encourage us to maintain the course of action that we are on. Deposit levels remain essentially flat which is our preferred position at this time. While the residential portfolio continues to decline through prepayments and amortization, we are seeing some growth in our commercial portfolio as several very attractive opportunities have come to fruition,” said Thomas M. O’Brien, Chairman, President, and Chief Executive Officer.
Balance Sheet
Total Assets – Total assets were
Cash and due from banks decreased
Total gross loans of
Total Deposits – Total deposits were
Federal Home Loan Bank Borrowings – In May 2024 the Company repaid with existing cash
Capital – Total shareholders’ equity was
At June 30, 2024, the consolidated Company’s and Bank’s leverage ratios were
Asset Quality and Provision for (Recovery of) Credit Losses – A provision for (recovery of) credit losses of
Net charge offs (recoveries) during the second quarter of 2024 and first quarter of 2024 were
Nonperforming loans, comprised primarily of nonaccrual residential real estate loans, totaled
Results of Operations
Net Interest Income and Net Interest Margin – Net interest income for the second quarter of 2024 was
Non-Interest Income – Non-interest income for the second quarter of 2024 and first quarter of 2024 was
Non-Interest Expense – Non-interest expense of
Income Tax Expense (Benefit)– For the three months ended June 30, 2024, the Company recorded an income tax expense of
Mr. O’Brien said, “The year is progressing quickly and we believe there are some hopeful signs of easing inflation, moderating interest rates, and lessening financial stress in the economy. The Company will continue to move forward and explore its opportunities. We believe this is the most prudent course of action given our unique circumstances and the current market dynamics.”
Conference Call and Webcast
Management will host a conference call on Wednesday, July 24, 2024 at 11:00 a.m. Eastern Time to discuss the Company’s unaudited financial results for the quarter ended June 30, 2024. The conference call number for
A replay of the conference call may be accessed through July 31, 2024 by
About Sterling Bancorp, Inc.
Sterling Bancorp, Inc. is a unitary thrift holding company. Its wholly owned subsidiary, Sterling Bank and Trust, F.S.B., has primary branch operations in the
Forward-Looking Statements
This Press Release contains certain statements that are, or may be deemed to be, “forward-looking statements” regarding the Company’s plans, expectations, thoughts, beliefs, estimates, goals and outlook for the future. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance, including any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions. These statements are often, but not always, made through the use of words or phrases such as “may,” “might,” “should,” “could,” “believe,” “expect,” “continue,” “will,” “estimate,” “intend,” “plan,” “anticipate,” and “would” or the negative versions of those words or other comparable words or phrases of a future or forward-looking nature, though the absence of these words does not mean a statement is not forward-looking. All statements other than statements of historical facts, including but not limited to statements regarding the economy and financial markets, government investigations, credit quality, the regulatory scheme governing our industry, competition in our industry, interest rates, our liquidity, our business and our governance, are forward-looking statements. We have based the forward-looking statements in this Press Release primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations, prospects, business strategy and financial needs. These forward-looking statements are not historical facts, and they are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. There can be no assurance that future developments will be those that have been anticipated. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. The risks, uncertainties and other factors detailed from time to time in our public filings, including those included in the disclosures under the headings “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 14, 2024, subsequent periodic reports and future periodic reports, could affect future results and events, causing those results and events to differ materially from those views expressed or implied in the Company’s forward-looking statements. These risks are not exhaustive. Other sections of this Press Release and our filings with the Securities and Exchange Commission include additional factors that could adversely impact our business and financial performance. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Press Release. Should one or more of the foregoing risks materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those projected in, or implied by, such forward-looking statements. Accordingly, you should not place undue reliance on any such forward-looking statements. The Company disclaims any obligation to update, revise, or correct any forward-looking statements based on the occurrence of future events, the receipt of new information or otherwise.
Sterling Bancorp, Inc. |
||||||||||||
Consolidated Financial Highlights (Unaudited) |
||||||||||||
At and for the Three Months Ended |
||||||||||||
June 30, |
|
March 31, |
|
June 30, |
||||||||
(dollars in thousands, except per share data) | 2024 |
|
2024 |
|
2023 |
|||||||
Net income (loss) | $ |
1,316 |
|
$ |
(197 |
) |
$ |
2,539 |
|
|||
Income (loss) per share, diluted | $ |
0.03 |
|
$ |
(0.00 |
) |
$ |
0.05 |
|
|||
Net interest income | $ |
14,395 |
|
$ |
14,934 |
|
$ |
16,184 |
|
|||
Net interest margin |
|
2.44 |
% |
|
2.52 |
% |
|
2.64 |
% |
|||
Non-interest income | $ |
412 |
|
$ |
199 |
|
$ |
1,911 |
|
|||
Non-interest expense | $ |
14,923 |
|
$ |
15,392 |
|
$ |
17,341 |
|
|||
Loans, net of allowance for credit losses | $ |
1,236,687 |
|
$ |
1,274,022 |
|
$ |
1,449,709 |
|
|||
Total deposits | $ |
2,013,465 |
|
$ |
2,005,855 |
|
$ |
2,041,491 |
|
|||
Asset Quality | ||||||||||||
Nonperforming loans | $ |
12,213 |
|
$ |
9,348 |
|
$ |
2,095 |
|
|||
Allowance for credit losses to total loans |
|
2.18 |
% |
|
2.24 |
% |
|
2.43 |
% |
|||
Allowance for credit losses to total nonaccrual loans |
|
249 |
% |
|
314 |
% |
|
1753 |
% |
|||
Nonaccrual loans to total loans |
|
0.87 |
% |
|
0.71 |
% |
|
0.14 |
% |
|||
Nonperforming loans to total loans |
|
0.97 |
% |
|
0.72 |
% |
|
0.14 |
% |
|||
Nonperforming loans to total assets |
|
0.51 |
% |
|
0.39 |
% |
|
0.08 |
% |
|||
Net charge offs (recoveries) to average loans during the period |
|
(0.03 |
)% |
|
0.00 |
% |
|
(0.03 |
)% |
|||
Provision for (recovery of) credit losses | $ |
(2,079 |
) |
$ |
41 |
|
$ |
(2,902 |
) |
|||
Net charge offs (recoveries) | $ |
(440 |
) |
$ |
(0 |
) |
$ |
(402 |
) |
|||
Performance Ratios | ||||||||||||
Return on average assets |
|
0.22 |
% |
|
(0.03 |
)% |
|
0.41 |
% |
|||
Return on average shareholders' equity |
|
1.62 |
% |
|
(0.24 |
)% |
|
3.24 |
% |
|||
Efficiency ratio (1) |
|
100.78 |
% |
|
101.71 |
% |
|
95.83 |
% |
|||
Yield on average interest-earning assets |
|
5.75 |
% |
|
5.61 |
% |
|
5.15 |
% |
|||
Cost of average interest-bearing liabilities |
|
3.91 |
% |
|
3.66 |
% |
|
2.99 |
% |
|||
Net interest spread |
|
1.84 |
% |
|
1.95 |
% |
|
2.16 |
% |
|||
Leverage Capital Ratios(2) | ||||||||||||
Consolidated |
|
14.26 |
% |
|
14.10 |
% |
|
13.44 |
% |
|||
Bank |
|
13.80 |
% |
|
13.58 |
% |
|
12.91 |
% |
|||
(1) Efficiency ratio is computed as the ratio of non-interest expense divided by the sum of net interest income and non-interest income. | ||||||||||||
(2) Leverage capital ratio is Tier 1 (core) capital to average total assets. June 30, 2024 capital ratios are estimated. |
Sterling Bancorp, Inc. | |||||||||||||||||||||||||
Condensed Consolidated Balance Sheets (Unaudited) | |||||||||||||||||||||||||
June 30, |
|
March 31, |
|
% |
|
December 31, |
|
% |
|
June 30, |
|
% |
|||||||||||||
(dollars in thousands) |
|
2024 |
|
|
|
2024 |
|
|
change |
|
|
2023 |
|
|
change |
|
|
2023 |
|
|
change |
||||
Assets | |||||||||||||||||||||||||
Cash and due from banks | $ |
599,774 |
|
$ |
646,168 |
|
(7 |
)% |
$ |
577,967 |
|
4 |
% |
$ |
655,391 |
|
(8 |
)% |
|||||||
Interest-bearing time deposits with other banks |
|
5,232 |
|
|
5,229 |
|
0 |
% |
|
5,226 |
|
0 |
% |
|
934 |
|
N/M |
|
|||||||
Debt securities available for sale |
|
441,930 |
|
|
394,852 |
|
12 |
% |
|
419,213 |
|
5 |
% |
|
334,508 |
|
32 |
% |
|||||||
Equity securities |
|
4,637 |
|
|
4,656 |
|
(0 |
)% |
|
4,703 |
|
(1 |
)% |
|
4,640 |
|
(0 |
)% |
|||||||
Loans, net of allowance for credit losses of |
|
1,236,687 |
|
|
1,274,022 |
|
(3 |
)% |
|
1,319,568 |
|
(6 |
)% |
|
1,449,709 |
|
(15 |
)% |
|||||||
Accrued interest receivable |
|
8,835 |
|
|
9,195 |
|
(4 |
)% |
|
8,509 |
|
4 |
% |
|
7,489 |
|
18 |
% |
|||||||
Mortgage servicing rights, net |
|
1,392 |
|
|
1,485 |
|
(6 |
)% |
|
1,542 |
|
(10 |
)% |
|
1,658 |
|
(16 |
)% |
|||||||
Leasehold improvements and equipment, net |
|
4,961 |
|
|
5,206 |
|
(5 |
)% |
|
5,430 |
|
(9 |
)% |
|
5,850 |
|
(15 |
)% |
|||||||
Operating lease right-of-use assets |
|
11,481 |
|
|
12,358 |
|
(7 |
)% |
|
11,454 |
|
0 |
% |
|
13,025 |
|
(12 |
)% |
|||||||
Federal Home Loan Bank stock, at cost |
|
18,423 |
|
|
18,923 |
|
(3 |
)% |
|
18,923 |
|
(3 |
)% |
|
20,288 |
|
(9 |
)% |
|||||||
Federal Reserve Bank stock, at cost |
|
9,139 |
|
|
9,096 |
|
0 |
% |
|
9,048 |
|
1 |
% |
|
— |
|
N/M |
|
|||||||
Company-owned life insurance |
|
8,818 |
|
|
8,764 |
|
1 |
% |
|
8,711 |
|
1 |
% |
|
8,605 |
|
2 |
% |
|||||||
Deferred tax asset, net |
|
17,923 |
|
|
18,240 |
|
(2 |
)% |
|
16,959 |
|
6 |
% |
|
18,538 |
|
(3 |
)% |
|||||||
Other assets |
|
5,507 |
|
|
6,361 |
|
(13 |
)% |
|
8,750 |
|
(37 |
)% |
|
11,375 |
|
(52 |
)% |
|||||||
Total assets | $ |
2,374,739 |
|
$ |
2,414,555 |
|
(2 |
)% |
$ |
2,416,003 |
|
(2 |
)% |
$ |
2,532,010 |
|
(6 |
)% |
|||||||
Liabilities | |||||||||||||||||||||||||
Noninterest-bearing deposits | $ |
32,167 |
|
$ |
32,680 |
|
(2 |
)% |
$ |
35,245 |
|
(9 |
)% |
$ |
44,799 |
|
(28 |
)% |
|||||||
Interest-bearing deposits |
|
1,981,298 |
|
|
1,973,175 |
|
0 |
% |
|
1,968,741 |
|
1 |
% |
|
1,996,692 |
|
(1 |
)% |
|||||||
Total deposits |
|
2,013,465 |
|
|
2,005,855 |
|
0 |
% |
|
2,003,986 |
|
0 |
% |
|
2,041,491 |
|
(1 |
)% |
|||||||
Federal Home Loan Bank borrowings |
|
— |
|
|
50,000 |
|
(100 |
)% |
|
50,000 |
|
(100 |
)% |
|
50,000 |
|
(100 |
)% |
|||||||
Subordinated notes, net |
|
— |
|
|
— |
|
N/M |
|
|
— |
|
N/M |
|
|
65,234 |
|
(100 |
)% |
|||||||
Operating lease liabilities |
|
12,504 |
|
|
13,407 |
|
(7 |
)% |
|
12,537 |
|
(0 |
)% |
|
14,176 |
|
(12 |
)% |
|||||||
Other liabilities |
|
19,900 |
|
|
18,027 |
|
10 |
% |
|
21,757 |
|
(9 |
)% |
|
43,433 |
|
(54 |
)% |
|||||||
Total liabilities |
|
2,045,869 |
|
|
2,087,289 |
|
(2 |
)% |
|
2,088,280 |
|
(2 |
)% |
|
2,214,334 |
|
(8 |
)% |
|||||||
Shareholders’ Equity | |||||||||||||||||||||||||
Preferred stock, authorized 10,000,000 shares; no shares issued and outstanding |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|||||||
Common stock, no par value, authorized shares 500,000,000; shares issued and outstanding 52,371,509, 52,046,683, 52,070,361 and 52,081,886 |
|
84,323 |
|
|
84,323 |
|
0 |
% |
|
84,323 |
|
0 |
% |
|
84,323 |
|
0 |
% |
|||||||
Additional paid-in capital |
|
17,592 |
|
|
17,173 |
|
2 |
% |
|
16,660 |
|
6 |
% |
|
15,098 |
|
17 |
% |
|||||||
Retained earnings |
|
243,083 |
|
|
241,767 |
|
1 |
% |
|
241,964 |
|
0 |
% |
|
236,587 |
|
3 |
% |
|||||||
Accumulated other comprehensive loss |
|
(16,128 |
) |
|
(15,997 |
) |
(1 |
)% |
|
(15,224 |
) |
(6 |
)% |
|
(18,332 |
) |
12 |
% |
|||||||
Total shareholders’ equity |
|
328,870 |
|
|
327,266 |
|
0 |
% |
|
327,723 |
|
0 |
% |
|
317,676 |
|
4 |
% |
|||||||
Total liabilities and shareholders’ equity | $ |
2,374,739 |
|
$ |
2,414,555 |
|
(2 |
)% |
$ |
2,416,003 |
|
(2 |
)% |
$ |
2,532,010 |
|
(6 |
)% |
|||||||
N/M - Not Meaningful | |||||||||||||||||||||||||
Sterling Bancorp, Inc. | |||||||||||||||||||||||||||||
Condensed Consolidated Statements of Operations (Unaudited) | |||||||||||||||||||||||||||||
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||||||||||||
(dollars in thousands, except per share amounts) |
|
June 30, 2024 |
|
|
|
March 31, 2024 |
|
|
% change |
|
June 30, 2023 |
|
% change |
|
June 30, 2024 |
|
|
June 30, 2023 |
|
% change |
|||||||||
Interest income | |||||||||||||||||||||||||||||
Interest and fees on loans | $ |
20,620 |
|
$ |
20,969 |
|
(2 |
)% |
$ |
21,892 |
|
(6 |
)% |
$ |
41,589 |
|
$ |
44,052 |
|
(6 |
)% |
||||||||
Interest and dividends on investment securities and restricted stock |
|
4,758 |
|
|
4,018 |
|
18 |
% |
|
2,666 |
|
78 |
% |
|
8,776 |
|
|
5,122 |
|
71 |
% |
||||||||
Interest on interest-bearing cash deposits |
|
8,486 |
|
|
8,295 |
|
2 |
% |
|
7,002 |
|
21 |
% |
|
16,781 |
|
|
11,809 |
|
42 |
% |
||||||||
Total interest income |
|
33,864 |
|
|
33,282 |
|
2 |
% |
|
31,560 |
|
7 |
% |
|
67,146 |
|
|
60,983 |
|
10 |
% |
||||||||
Interest expense | |||||||||||||||||||||||||||||
Interest on deposits |
|
19,350 |
|
|
18,100 |
|
7 |
% |
|
13,337 |
|
45 |
% |
|
37,450 |
|
|
23,146 |
|
62 |
% |
||||||||
Interest on Federal Home Loan Bank borrowings |
|
119 |
|
|
248 |
|
(52 |
)% |
|
248 |
|
(52 |
)% |
|
367 |
|
|
493 |
|
(26 |
)% |
||||||||
Interest on Subordinated Notes |
|
— |
|
|
— |
|
N/M |
|
|
1,791 |
|
(100 |
)% |
|
— |
|
|
3,484 |
|
(100 |
)% |
||||||||
Total interest expense |
|
19,469 |
|
|
18,348 |
|
6 |
% |
|
15,376 |
|
27 |
% |
|
37,817 |
|
|
27,123 |
|
39 |
% |
||||||||
Net interest income |
|
14,395 |
|
|
14,934 |
|
(4 |
)% |
|
16,184 |
|
(11 |
)% |
|
29,329 |
|
|
33,860 |
|
(13 |
)% |
||||||||
Provision for (recovery of) credit losses |
|
(2,079 |
) |
|
41 |
|
N/M |
|
|
(2,902 |
) |
28 |
% |
|
(2,038 |
) |
|
(2,228 |
) |
9 |
% |
||||||||
Net interest income after provision for (recovery of) credit losses |
|
16,474 |
|
|
14,893 |
|
11 |
% |
|
19,086 |
|
(14 |
)% |
|
31,367 |
|
|
36,088 |
|
(13 |
)% |
||||||||
Non-interest income | |||||||||||||||||||||||||||||
Service charges and fees |
|
92 |
|
|
87 |
|
6 |
% |
|
78 |
|
18 |
% |
|
179 |
|
|
172 |
|
4 |
% |
||||||||
Loss on sale of investment securities |
|
— |
|
|
— |
|
N/M |
|
|
— |
|
N/M |
|
|
— |
|
|
(2 |
) |
100 |
% |
||||||||
Gain on sale of loans held for sale |
|
— |
|
|
— |
|
N/M |
|
|
1,720 |
|
(100 |
)% |
|
— |
|
|
1,695 |
|
(100 |
)% |
||||||||
Unrealized loss on equity securities |
|
(19 |
) |
|
(47 |
) |
60 |
% |
|
(71 |
) |
73 |
% |
|
(66 |
) |
|
— |
|
N/M |
|
||||||||
Net servicing income |
|
46 |
|
|
75 |
|
(39 |
)% |
|
102 |
|
(55 |
)% |
|
121 |
|
|
161 |
|
(25 |
)% |
||||||||
Income earned on company-owned life insurance |
|
84 |
|
|
83 |
|
1 |
% |
|
81 |
|
4 |
% |
|
167 |
|
|
161 |
|
4 |
% |
||||||||
Other |
|
209 |
|
|
1 |
|
N/M |
|
|
1 |
|
N/M |
|
|
210 |
|
|
2 |
|
N/M |
|
||||||||
Total non-interest income |
|
412 |
|
|
199 |
|
N/M |
|
|
1,911 |
|
(78 |
)% |
|
611 |
|
|
2,189 |
|
(72 |
)% |
||||||||
Non-interest expense | |||||||||||||||||||||||||||||
Salaries and employee benefits |
|
8,196 |
|
|
8,460 |
|
(3 |
)% |
|
9,274 |
|
(12 |
)% |
|
16,656 |
|
|
18,684 |
|
(11 |
)% |
||||||||
Occupancy and equipment |
|
2,005 |
|
|
2,084 |
|
(4 |
)% |
|
2,051 |
|
(2 |
)% |
|
4,089 |
|
|
4,163 |
|
(2 |
)% |
||||||||
Professional fees |
|
2,147 |
|
|
2,182 |
|
(2 |
)% |
|
3,521 |
|
(39 |
)% |
|
4,329 |
|
|
6,742 |
|
(36 |
)% |
||||||||
FDIC insurance |
|
262 |
|
|
262 |
|
0 |
% |
|
263 |
|
(0 |
)% |
|
524 |
|
|
520 |
|
1 |
% |
||||||||
Data processing |
|
742 |
|
|
733 |
|
1 |
% |
|
754 |
|
(2 |
)% |
|
1,475 |
|
|
1,492 |
|
(1 |
)% |
||||||||
Other |
|
1,571 |
|
|
1,671 |
|
(6 |
)% |
|
1,478 |
|
6 |
% |
|
3,242 |
|
|
3,577 |
|
(9 |
)% |
||||||||
Total non-interest expense |
|
14,923 |
|
|
15,392 |
|
(3 |
)% |
|
17,341 |
|
(14 |
)% |
|
30,315 |
|
|
35,178 |
|
(14 |
)% |
||||||||
Income (loss) before income taxes |
|
1,963 |
|
|
(300 |
) |
N/M |
|
|
3,656 |
|
(46 |
)% |
|
1,663 |
|
|
3,099 |
|
(46 |
)% |
||||||||
Income tax expense (benefit) |
|
647 |
|
|
(103 |
) |
N/M |
|
|
1,117 |
|
(42 |
)% |
|
544 |
|
|
1,063 |
|
(49 |
)% |
||||||||
Net income (loss) | $ |
1,316 |
|
$ |
(197 |
) |
N/M |
|
$ |
2,539 |
|
(48 |
)% |
$ |
1,119 |
|
$ |
2,036 |
|
(45 |
)% |
||||||||
Income (loss) per share, basic and diluted | $ |
0.03 |
|
$ |
(0.00 |
) |
$ |
0.05 |
|
$ |
0.02 |
|
$ |
0.04 |
|
||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||||||||
Basic |
|
50,920,703 |
|
|
50,843,106 |
|
|
50,672,461 |
|
|
50,881,905 |
|
|
50,559,092 |
|
||||||||||||||
Diluted |
|
51,349,764 |
|
|
50,843,106 |
|
|
50,778,213 |
|
|
51,326,379 |
|
|
50,705,998 |
|
||||||||||||||
N/M - Not Meaningful | |||||||||||||||||||||||||||||
Sterling Bancorp, Inc. | ||||||||||||||||||||||||||||
Yield Analysis and Net Interest Income (Unaudited) | ||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||
June 30, 2024 | March 31, 2024 | June 30, 2023 | ||||||||||||||||||||||||||
Average | Average | Average | Average | Average | Average | |||||||||||||||||||||||
(dollars in thousands) | Balance | Interest | Yield/Rate | Balance | Interest | Yield/Rate | Balance | Interest | Yield/Rate | |||||||||||||||||||
Interest-earning assets | ||||||||||||||||||||||||||||
Loans(1) | ||||||||||||||||||||||||||||
Residential real estate and other consumer | $ |
1,006,040 |
$ |
17,007 |
6.76 |
% |
$ |
1,064,200 |
$ |
17,197 |
6.46 |
% |
$ |
1,277,408 |
$ |
18,250 |
5.71 |
% |
||||||||||
Commercial real estate |
|
252,380 |
|
3,252 |
5.15 |
% |
|
246,423 |
|
3,213 |
5.22 |
% |
|
224,836 |
|
2,787 |
4.96 |
% |
||||||||||
Construction |
|
4,997 |
|
130 |
10.41 |
% |
|
7,246 |
|
242 |
13.36 |
% |
|
31,819 |
|
820 |
10.31 |
% |
||||||||||
Commercial and industrial |
|
10,855 |
|
231 |
8.51 |
% |
|
15,087 |
|
317 |
8.40 |
% |
|
2,255 |
|
35 |
6.21 |
% |
||||||||||
Total loans |
|
1,274,272 |
|
20,620 |
6.47 |
% |
|
1,332,956 |
|
20,969 |
6.29 |
% |
|
1,536,318 |
|
21,892 |
5.70 |
% |
||||||||||
Securities, includes restricted stock(2) |
|
464,404 |
|
4,758 |
4.10 |
% |
|
437,712 |
|
4,018 |
3.67 |
% |
|
375,094 |
|
2,666 |
2.84 |
% |
||||||||||
Other interest-earning assets |
|
618,846 |
|
8,486 |
5.49 |
% |
|
601,791 |
|
8,295 |
5.51 |
% |
|
541,887 |
|
7,002 |
5.17 |
% |
||||||||||
Total interest-earning assets |
|
2,357,522 |
|
33,864 |
5.75 |
% |
|
2,372,459 |
|
33,282 |
5.61 |
% |
|
2,453,299 |
|
31,560 |
5.15 |
% |
||||||||||
Noninterest-earning assets | ||||||||||||||||||||||||||||
Cash and due from banks |
|
3,391 |
|
4,643 |
|
4,233 |
||||||||||||||||||||||
Other assets |
|
29,717 |
|
29,521 |
|
27,645 |
||||||||||||||||||||||
Total assets | $ |
2,390,630 |
$ |
2,406,623 |
$ |
2,485,177 |
||||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||||||
Money market, savings and NOW | $ |
1,062,347 |
$ |
9,827 |
3.71 |
% |
$ |
1,074,937 |
$ |
9,655 |
3.60 |
% |
$ |
980,359 |
$ |
6,270 |
2.57 |
% |
||||||||||
Time deposits |
|
911,466 |
|
9,523 |
4.19 |
% |
|
884,115 |
|
8,445 |
3.83 |
% |
|
969,938 |
|
7,067 |
2.92 |
% |
||||||||||
Total interest-bearing deposits |
|
1,973,813 |
|
19,350 |
3.93 |
% |
|
1,959,052 |
|
18,100 |
3.71 |
% |
|
1,950,297 |
|
13,337 |
2.74 |
% |
||||||||||
FHLB borrowings |
|
24,176 |
|
119 |
1.95 |
% |
|
50,000 |
|
248 |
1.96 |
% |
|
50,000 |
|
248 |
1.96 |
% |
||||||||||
Subordinated notes, net |
|
- |
|
- |
0.00 |
% |
|
- |
|
- |
0.00 |
% |
|
65,245 |
|
1,791 |
10.86 |
% |
||||||||||
Total borrowings |
|
24,176 |
|
119 |
1.95 |
% |
|
50,000 |
|
248 |
1.96 |
% |
|
115,245 |
|
2,039 |
7.00 |
% |
||||||||||
Total interest-bearing liabilities |
|
1,997,989 |
|
19,469 |
3.91 |
% |
|
2,009,052 |
|
18,348 |
3.66 |
% |
|
2,065,542 |
|
15,376 |
2.99 |
% |
||||||||||
Noninterest-bearing liabilities | ||||||||||||||||||||||||||||
Demand deposits |
|
31,930 |
|
35,348 |
|
44,005 |
||||||||||||||||||||||
Other liabilities |
|
33,361 |
|
34,924 |
|
61,487 |
||||||||||||||||||||||
Shareholders' equity |
|
327,350 |
|
327,299 |
|
314,143 |
||||||||||||||||||||||
Total liabilities and shareholders' equity | $ |
2,390,630 |
$ |
2,406,623 |
$ |
2,485,177 |
||||||||||||||||||||||
Net interest income and spread(2) | $ |
14,395 |
1.84 |
% |
$ |
14,934 |
1.95 |
% |
$ |
16,184 |
2.16 |
% |
||||||||||||||||
Net interest margin(2) | 2.44 |
% |
2.52 |
% |
2.64 |
% |
||||||||||||||||||||||
(1) Nonaccrual loans are included in the respective average loan balances. Income, if any, on such loans is recognized on a cash basis. | ||||||||||||||||||||||||||||
(2) Interest income does not include taxable equivalence adjustments. | ||||||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||||||
June 30, 2024 | June 30, 2023 | |||||||||||||||||||||||||||
Average | Average | Average | Average | |||||||||||||||||||||||||
(dollars in thousands) | Balance | Interest | Yield/Rate | Balance | Interest | Yield/Rate | ||||||||||||||||||||||
Interest-earning assets | ||||||||||||||||||||||||||||
Loans(1) | ||||||||||||||||||||||||||||
Residential real estate and other consumer | $ |
1,035,121 |
$ |
34,204 |
6.61 |
% |
$ |
1,321,858 |
$ |
36,764 |
5.56 |
% |
||||||||||||||||
Commercial real estate |
|
249,402 |
|
6,465 |
5.18 |
% |
|
224,383 |
|
5,383 |
4.80 |
% |
||||||||||||||||
Construction |
|
6,122 |
|
372 |
12.15 |
% |
|
36,601 |
|
1,854 |
10.13 |
% |
||||||||||||||||
Commercial and industrial |
|
12,971 |
|
548 |
8.45 |
% |
|
1,821 |
|
51 |
5.60 |
% |
||||||||||||||||
Total loans |
|
1,303,616 |
|
41,589 |
6.38 |
% |
|
1,584,663 |
|
44,052 |
5.56 |
% |
||||||||||||||||
Securities, includes restricted stock(2) |
|
451,059 |
|
8,776 |
3.89 |
% |
|
370,744 |
|
5,122 |
2.76 |
% |
||||||||||||||||
Other interest-earning assets |
|
610,318 |
|
16,781 |
5.50 |
% |
|
477,186 |
|
11,809 |
4.95 |
% |
||||||||||||||||
Total interest-earning assets |
|
2,364,993 |
|
67,146 |
5.68 |
% |
|
2,432,593 |
|
60,983 |
5.01 |
% |
||||||||||||||||
Noninterest-earning assets | ||||||||||||||||||||||||||||
Cash and due from banks |
|
4,018 |
|
4,353 |
||||||||||||||||||||||||
Other assets |
|
29,616 |
|
27,349 |
||||||||||||||||||||||||
Total assets | $ |
2,398,627 |
$ |
2,464,295 |
||||||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||||||
Money market, savings and NOW | $ |
1,068,642 |
$ |
19,482 |
3.66 |
% |
$ |
990,874 |
$ |
10,884 |
2.22 |
% |
||||||||||||||||
Time deposits |
|
897,791 |
|
17,968 |
4.01 |
% |
|
935,605 |
|
12,262 |
2.64 |
% |
||||||||||||||||
Total interest-bearing deposits |
|
1,966,433 |
|
37,450 |
3.82 |
% |
|
1,926,479 |
|
23,146 |
2.42 |
% |
||||||||||||||||
FHLB borrowings |
|
37,088 |
|
367 |
1.98 |
% |
|
50,000 |
|
493 |
1.99 |
% |
||||||||||||||||
Subordinated notes, net |
|
- |
|
- |
0.00 |
% |
|
65,255 |
|
3,484 |
10.62 |
% |
||||||||||||||||
Total borrowings |
|
37,088 |
|
367 |
1.96 |
% |
|
115,255 |
|
3,977 |
6.86 |
% |
||||||||||||||||
Total interest-bearing liabilities |
|
2,003,521 |
|
37,817 |
3.79 |
% |
|
2,041,734 |
|
27,123 |
2.68 |
% |
||||||||||||||||
Noninterest-bearing liabilities | ||||||||||||||||||||||||||||
Demand deposits |
|
33,639 |
|
47,127 |
||||||||||||||||||||||||
Other liabilities |
|
34,142 |
|
61,892 |
||||||||||||||||||||||||
Shareholders' equity |
|
327,325 |
|
313,542 |
||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ |
2,398,627 |
$ |
2,464,295 |
||||||||||||||||||||||||
Net interest income and spread(2) | $ |
29,329 |
1.89 |
% |
$ |
33,860 |
2.33 |
% |
||||||||||||||||||||
Net interest margin(2) | 2.48 |
% |
2.78 |
% |
||||||||||||||||||||||||
(1) Nonaccrual loans are included in the respective average loan balances. Income, if any, on such loans is recognized on a cash basis. | ||||||||||||||||||||||||||||
(2) Interest income does not include taxable equivalence adjustments. | ||||||||||||||||||||||||||||
Sterling Bancorp, Inc. | |||||||||||||||||||||||||||
Loan Composition (Unaudited) | |||||||||||||||||||||||||||
June 30, |
|
March 31, |
|
% |
|
December 31, |
|
% |
|
June 30, |
|
% |
|||||||||||||||
(dollars in thousands) |
|
2024 |
|
|
|
2024 |
|
|
change |
|
|
2023 |
|
|
change |
|
|
2023 |
|
|
change |
||||||
Residential real estate | $ |
972,326 |
|
$ |
1,040,464 |
|
(7 |
)% |
$ |
1,085,776 |
|
|
(10 |
)% |
$ |
1,214,439 |
|
|
(20 |
)% |
|||||||
Commercial real estate |
|
277,273 |
|
|
244,546 |
|
13 |
% |
|
236,982 |
|
|
17 |
% |
|
221,658 |
|
|
25 |
% |
|||||||
Construction |
|
5,050 |
|
|
4,915 |
|
3 |
% |
|
10,381 |
|
|
(51 |
)% |
|
31,978 |
|
|
(84 |
)% |
|||||||
Commercial and industrial |
|
9,593 |
|
|
13,348 |
|
(28 |
)% |
|
15,832 |
|
|
(39 |
)% |
|
17,772 |
|
|
(46 |
)% |
|||||||
Other consumer |
|
1 |
|
|
6 |
|
(83 |
)% |
|
1 |
|
|
0 |
% |
|
15 |
|
|
(93 |
)% |
|||||||
Total loans held for investment |
|
1,264,243 |
|
|
1,303,279 |
|
(3 |
)% |
|
1,348,972 |
|
|
(6 |
)% |
|
1,485,862 |
|
|
(15 |
)% |
|||||||
Less: allowance for credit losses |
|
(27,556 |
) |
|
(29,257 |
) |
(6 |
)% |
|
(29,404 |
) |
|
(6 |
)% |
|
(36,153 |
) |
|
(24 |
)% |
|||||||
Loans, net | $ |
1,236,687 |
|
$ |
1,274,022 |
|
(3 |
)% |
$ |
1,319,568 |
|
|
(6 |
)% |
$ |
1,449,709 |
|
|
(15 |
)% |
|||||||
Sterling Bancorp, Inc. | |||||||||||||||||||||||||||
Allowance for Credit Losses - Loans (Unaudited) | |||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||
June 30, |
|
March 31, |
|
December 31, |
|
June 30, |
|||||||||||||||||||||
(dollars in thousands) |
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
||||||||||||
Balance at beginning of period | $ |
29,257 |
|
$ |
29,404 |
|
$ |
34,267 |
|
$ |
38,565 |
|
|||||||||||||||
Provision for (recovery of) credit losses |
|
(2,141 |
) |
|
(147 |
) |
|
(4,927 |
) |
|
(2,814 |
) |
|||||||||||||||
Charge offs |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|||||||||||||||
Recoveries |
|
440 |
|
|
— |
|
|
64 |
|
|
402 |
|
|||||||||||||||
Balance at end of period | $ |
27,556 |
|
$ |
29,257 |
|
$ |
29,404 |
|
$ |
36,153 |
|
|||||||||||||||
Sterling Bancorp, Inc. | |||||||||||||||||||||||||||
Deposit Composition (Unaudited) | |||||||||||||||||||||||||||
June 30, |
|
March 31, |
|
% |
|
December 31, |
|
% |
|
June 30, |
|
% |
|||||||||||||||
(dollars in thousands) |
|
2024 |
|
|
|
2024 |
|
|
change |
|
|
2023 |
|
|
change |
|
|
2023 |
|
|
change |
||||||
Noninterest-bearing deposits | $ |
32,167 |
|
$ |
32,680 |
|
(2 |
)% |
$ |
35,245 |
|
|
(9 |
)% |
$ |
44,799 |
|
|
(28 |
)% |
|||||||
Money Market, Savings and NOW |
|
1,076,079 |
|
|
1,072,179 |
|
0 |
% |
|
1,095,521 |
|
|
(2 |
)% |
|
1,015,394 |
|
|
6 |
% |
|||||||
Time deposits |
|
905,219 |
|
|
900,996 |
|
0 |
% |
|
873,220 |
|
|
4 |
% |
|
981,298 |
|
|
(8 |
)% |
|||||||
Total deposits | $ |
2,013,465 |
|
$ |
2,005,855 |
|
0 |
% |
$ |
2,003,986 |
|
|
0 |
% |
$ |
2,041,491 |
|
|
(1 |
)% |
|||||||
Sterling Bancorp, Inc. | ||||||||||||||||
Credit Quality Data (Unaudited) | ||||||||||||||||
At and for the Three Months Ended | ||||||||||||||||
June 30, |
|
March 31, |
|
December 31, |
|
June 30, |
||||||||||
(dollars in thousands) |
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
Nonaccrual loans(1) | ||||||||||||||||
Residential real estate | $ |
11,049 |
|
$ |
9,318 |
|
$ |
8,942 |
|
$ |
2,062 |
|
||||
Loans past due 90 days or more and still accruing interest |
|
1,164 |
|
|
30 |
|
|
31 |
|
|
33 |
|
||||
Nonperforming loans | $ |
12,213 |
|
$ |
9,348 |
|
$ |
8,973 |
|
$ |
2,095 |
|
||||
Total loans (1) | $ |
1,264,243 |
|
$ |
1,303,279 |
|
$ |
1,348,972 |
|
$ |
1,485,862 |
|
||||
Total assets | $ |
2,374,739 |
|
$ |
2,414,555 |
|
$ |
2,416,003 |
|
$ |
2,532,010 |
|
||||
Allowance for credit losses to total loans |
|
2.18 |
% |
|
2.24 |
% |
|
2.18 |
% |
|
2.43 |
% |
||||
Allowance for credit losses to total nonaccrual loans |
|
249 |
% |
|
314 |
% |
|
329 |
% |
|
1753 |
% |
||||
Nonaccrual loans to total loans |
|
0.87 |
% |
|
0.71 |
% |
|
0.66 |
% |
|
0.14 |
% |
||||
Nonperforming loans to total loans |
|
0.97 |
% |
|
0.72 |
% |
|
0.67 |
% |
|
0.14 |
% |
||||
Nonperforming loans to total assets |
|
0.51 |
% |
|
0.39 |
% |
|
0.37 |
% |
|
0.08 |
% |
||||
Net charge offs (recoveries) to average loans during the period |
|
(0.03 |
)% |
|
0.00 |
% |
|
0.00 |
% |
|
(0.03 |
)% |
||||
(1) Loans are classified as held for investment and are presented before the allowance for credit losses. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240724713374/en/
Investor Contact:
Sterling Bancorp, Inc.
Karen Knott
Executive Vice President and Chief Financial Officer
(248) 359-6624
kzaborney@sterlingbank.com
Source: Sterling Bancorp, Inc.
FAQ
What was Sterling Bancorp's (SBT) net income for Q2 2024?
How did Sterling Bancorp's (SBT) total deposits change in Q2 2024?
What was Sterling Bancorp's (SBT) net interest margin in Q2 2024?