Sterling Bancorp Reports Third Quarter 2024 Financial Results

Sterling Bancorp, Inc. (NASDAQ: SBT) (“Sterling” or the “Company”), the holding company of Sterling Bank and Trust, F.S.B. (the “Bank”), today reported its unaudited financial results for the third quarter ended September 30, 2024.

Third Quarter 2024 Highlights

• Net loss of $(0.1) million, or $(0.00) per diluted share
• Net interest margin of 2.30%
• Nonperforming loans of $13.2 million, 1.08% of total loans and 0.54% of total assets
• Provision for (recovery of) credit losses of $(2.3) million; ratio of allowance for credit losses to total loans of 2.04%
• Non-interest expense of $15.6 million
• Shareholders’ equity of $334.6 million
• Company’s consolidated and Bank’s leverage ratio of 14.18% and 13.72%, respectively
• Total deposits of $2.1 billion
• Total gross loans of $1.2 billion

The Company reported a net loss of $(0.1) million, or $(0.00) per diluted share, for the quarter ended September 30, 2024, compared to net income of $1.3 million, or $0.03 per diluted share, for the quarter ended June 30, 2024.

As previously disclosed, on September 15, 2024, Sterling, the Bank and EverBank Financial Corp (“EverBank”) entered into a definitive stock purchase agreement providing for the purchase by EverBank of all of the issued and outstanding shares of capital stock of the Bank from Sterling (the “Transaction”) for cash consideration of $261.0 million. Also on September 15, 2024, Sterling’s board of directors unanimously approved a plan of dissolution providing for the dissolution of Sterling under Michigan law following the closing of the Transaction. The Transaction is expected to close in the first quarter of 2025. The Transaction is subject to customary closing conditions, among which include the approval of the definitive stock purchase agreement, the Transaction and the plan of dissolution by the requisite vote of the Company’s shareholders and the receipt of required regulatory approvals.

Balance Sheet

Total Assets – Total assets were $2.4 billion at September 30, 2024, an increase of $63.8 million, or 3%, from June 30, 2024.

Cash and due from banks increased $110.6 million, or 18%, to $710.4 million at September 30, 2024 compared to $599.8 million at June 30, 2024 primarily due to net cash inflows from the growth in deposits and the decline in loans. Debt securities decreased $5.5 million, or 1%, to $436.4 million at September 30, 2024. All debt securities are available for sale, have a relatively short duration and are considered part of our liquid assets.

Total gross loans of $1.2 billion at September 30, 2024 decreased $40.5 million, or 3%, from June 30, 2024. Residential real estate loans were $904.4 million, a decrease of $67.9 million, or 7%, from June 30, 2024. Commercial real estate loans were $306.9 million, an increase of $29.7 million, or 11%, from June 30, 2024.

Total Deposits – Total deposits were $2.1 billion at September 30, 2024, an increase of $53.7 million, or 3%, from June 30, 2024. Money market, savings and NOW deposits were $1.1 billion, a decrease of $12.3 million from June 30, 2024. Time deposits were $972.2 million, an increase of $67.0 million from June 30, 2024. Noninterest-bearing deposits were $31.3 million at September 30, 2024 compared to $32.2 million at June 30, 2024. Total estimated uninsured deposits to total deposits were approximately 22% at September 30, 2024, June 30, 2024 and December 31, 2023. Our current strategy is to continue to offer competitive interest rates on our deposit products to maintain our existing customer deposit base and maintain our liquidity.

Capital – Total shareholders’ equity was $334.6 million at September 30, 2024, an increase of $5.7 million compared to $328.9 million at June 30, 2024, primarily due to a $5.3 million reduction in the unrealized loss on our debt securities portfolio included in accumulated other comprehensive loss.

At September 30, 2024, the consolidated Company’s and Bank’s leverage ratios were 14.18% and 13.72%, respectively. Both the Company and the Bank are required to maintain a Tier 1 leverage ratio of greater than 9.0% to have satisfied the minimum regulatory capital requirements as well as the capital ratio requirements to be considered well capitalized for regulatory purposes.

Asset Quality and Provision for (Recovery of) Credit Losses – A provision for (recovery of) credit losses of $(2.3) million was recorded for the third quarter of 2024 compared to $(2.1) million for the second quarter of 2024. In the third quarter of 2024, the recovery of credit losses related to loans of $(2.6) million was primarily due to the reduction in the commercial real estate portfolio’s allowance reflecting the continued strong credit quality of the portfolio. In addition, the residential mortgage portfolio’s allowance had a reduction primarily due to continued run-off of that portfolio. A provision for credit losses on unfunded commitments was recorded for the three months ended September 30, 2024 and June 30, 2024 of $0.3 million and $0.1 million, respectively. The allowance for credit losses at September 30, 2024 was $25.0 million, or 2.04% of total loans, compared to $27.6 million, or 2.18% of total loans at June 30, 2024.

Recoveries of loan losses during the third and second quarter of 2024 were $10 thousand and $440 thousand, respectively, with no charge offs in either quarter.

Nonperforming loans, comprised primarily of nonaccrual residential real estate loans, totaled $13.2 million, or 0.54% of total assets at September 30, 2024, compared to $12.2 million, or 0.51% of total assets at June 30, 2024.

Results of Operations

Net Interest Income and Net Interest Margin – Net interest income for the third quarter of 2024 was $13.6 million compared to $14.4 million for the second quarter of 2024. The net interest margin was 2.30% and 2.44% for the third and second quarter of 2024, respectively. The decrease in net interest income during the third quarter of 2024 compared to the prior quarter was primarily due to a $1.3 million increase in interest expense. This increase in interest expense reflects an increase in the average balance of interest-bearing deposits of $42.0 million, or 2%, as well as a 15 basis point increase in the rate paid on deposits during the third quarter of 2024 over the rate paid during the second quarter of 2024. This increase in interest expense was partially offset by a $0.6 million increase in interest income earned on our average balance of investment securities and other interest-earnings assets. Interest income on loans declined $0.1 million in the third quarter of 2024 as compared to the prior quarter as a decline in the average loan portfolio balance of $28.2 million, or 2%, was offset in part by an 11 basis point increase in the yield on the average loan portfolio. The increase in the yield was due primarily to a 7 basis point increase in residential mortgage rates resetting in the higher interest rate environment and a 46 basis point increase in commercial real estate loan yields due to the growth in the portfolio at yields higher than the second quarter portfolio yield.

Non-Interest Income – Non-interest income for the third quarter of 2024 as comparted to the second quarter of 2024 was essentially unchanged as an unrealized gain on an equity security of $0.2 million was offset by $0.2 million less in funds received from the Federal Home Loan Bank based on the performance of loans previously sold to them.

Non-Interest Expense – Non-interest expense of $15.6 million for the third quarter of 2024 reflected an increase of $0.7 million, or 5%, compared to $14.9 million for the second quarter of 2024. This increase was primarily due to a $0.9 million increase in professional fees which included increased professional fees incurred in connection with the Transaction. Salaries and employee benefits expense increased $0.3 million, or 4%, primarily due to the annual merit increase and adjustments to certain employees’ base compensation. Partially offsetting the increases in professional fees and salaries and employee benefits, other expenses decreased $0.5 million, or 32%.

Income Tax Expense – For the three months ended September 30, 2024, the Company recorded an income tax expense of $0.9 million. Income tax expense includes an additional $0.6 million in the third quarter of 2024 to reverse a tax position previously taken on the deductibility of interest earned on U.S. government obligations under applicable state tax law. For the three months ended June 30, 2024, the Company recorded an income tax expense of $0.6 million, or an effective tax rate of 33.0%. Our effective tax rate varies from the statutory rate primarily due to the correction in the third quarter of 2024 discussed above as well as the impact of non-deductible compensation-related expenses.

About Sterling Bancorp, Inc.

Sterling Bancorp, Inc. is a unitary thrift holding company. Its wholly owned subsidiary, Sterling Bank and Trust, F.S.B., has primary branch operations in the San Francisco and Los Angeles, California metropolitan areas and New York City. Sterling also has an operations center and a branch in Southfield, Michigan. Sterling offers a range of loan products as well as retail and business banking services. For additional information, please visit the Company’s website at http://www.sterlingbank.com.

Forward-Looking Statements

This Press Release contains certain statements that are, or may be deemed to be, “forward-looking statements” regarding the Company’s plans, expectations, thoughts, beliefs, estimates, goals and outlook for the future. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance, including any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions. These statements are often, but not always, made through the use of words or phrases such as “may,” “might,” “should,” “could,” “predict,” “potential,” “believe,” “expect,” “attribute,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “goal,” “target,” “outlook” 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 expectations for the anticipated sale of the Bank and ensuing Plan of Dissolution, the economy and financial markets, 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

September 30,

 

June 30,

 

September 30,

(dollars in thousands, except per share data)

 

2024

 

 

 

2024

 

 

 

2023

 

Net income (loss)

$

(143

)

$

1,316

 

$

314

 

Income (loss) per share, diluted

$

(0.00

)

$

0.03

 

$

0.01

 

Net interest income

$

13,618

 

$

14,395

 

$

15,994

 

Net interest margin

 

2.30

%

 

2.44

%

 

2.62

%

Non-interest income

$

379

 

$

412

 

$

384

 

Non-interest expense

$

15,610

 

$

14,923

 

$

17,702

 

Loans, net of allowance for credit losses

$

1,198,767

 

$

1,236,687

 

$

1,382,860

 

Total deposits

$

2,067,193

 

$

2,013,465

 

$

2,040,658

 

Asset Quality

Nonperforming loans

$

13,214

 

$

12,213

 

$

6,182

 

Allowance for credit losses to total loans

 

2.04

%

 

2.18

%

 

2.42

%

Allowance for credit losses to total nonaccrual loans

 

189

%

 

249

%

 

681

%

Nonaccrual loans to total loans

 

1.08

%

 

0.87

%

 

0.36

%

Nonperforming loans to total loans

 

1.08

%

 

0.97

%

 

0.44

%

Nonperforming loans to total assets

 

0.54

%

 

0.51

%

 

0.25

%

Net charge offs (recoveries) to average loans during the period

 

0.00

%

 

(0.03

)%

 

0.00

%

Provision for (recovery of) credit losses

$

(2,338

)

$

(2,079

)

$

(1,942

)

Net charge offs (recoveries)

$

(10

)

$

(440

)

$

(1

)

Performance Ratios

Return on average assets

 

(0.02

)%

 

0.22

%

 

0.05

%

Return on average shareholders' equity

 

(0.17

)%

 

1.62

%

 

0.39

%

Efficiency ratio (1)

 

111.52

%

 

100.78

%

 

108.08

%

Yield on average interest-earning assets

 

5.79

%

 

5.75

%

 

5.39

%

Cost of average interest-bearing liabilities

 

4.08

%

 

3.91

%

 

3.24

%

Net interest spread

 

1.71

%

 

1.84

%

 

2.15

%

Leverage Capital Ratios(2)

Consolidated

 

14.18

%

 

14.26

%

 

13.42

%

Bank

 

13.72

%

 

13.81

%

 

12.93

%

 


(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. September 30, 2024 capital ratios are estimated.

Sterling Bancorp, Inc.

Condensed Consolidated Balance Sheets (Unaudited)

September 30,

 

June 30,

 

%

 

December 31,

 

%

 

September 30,

 

%

(dollars in thousands)

 

2024

 

 

 

2024

 

 

change

 

 

2023

 

 

change

 

 

2023

 

 

change

Assets

Cash and due from banks

$

710,372

 

$

599,774

 

18

%

$

577,967

 

23

%

$

563,622

 

26

%

Interest-bearing time deposits with other banks

 

4,983

 

 

5,232

 

(5

)%

 

5,226

 

(5

)%

 

1,174

 

N/M

 

Debt securities available for sale

 

436,409

 

 

441,930

 

(1

)%

 

419,213

 

4

%

 

398,302

 

10

%

Equity securities

 

4,797

 

 

4,637

 

3

%

 

4,703

 

2

%

 

4,505

 

6

%

Loans, net of allowance for credit losses of $24,970, $27,556, $29,404 and $34,267

 

1,198,767

 

 

1,236,687

 

(3

)%

 

1,319,568

 

(9

)%

 

1,382,860

 

(13

)%

Accrued interest receivable

 

9,650

 

 

8,835

 

9

%

 

8,509

 

13

%

 

8,854

 

9

%

Mortgage servicing rights, net

 

1,338

 

 

1,392

 

(4

)%

 

1,542

 

(13

)%

 

1,631

 

(18

)%

Leasehold improvements and equipment, net

 

4,710

 

 

4,961

 

(5

)%

 

5,430

 

(13

)%

 

5,583

 

(16

)%

Operating lease right-of-use assets

 

10,765

 

 

11,481

 

(6

)%

 

11,454

 

(6

)%

 

12,197

 

(12

)%

Federal Home Loan Bank stock, at cost

 

18,423

 

 

18,423

 

0

%

 

18,923

 

(3

)%

 

18,923

 

(3

)%

Federal Reserve Bank stock, at cost

 

9,187

 

 

9,139

 

1

%

 

9,048

 

2

%

 

9,001

 

2

%

Company-owned life insurance

 

8,872

 

 

8,818

 

1

%

 

8,711

 

2

%

 

8,658

 

2

%

Deferred tax asset, net

 

15,023

 

 

17,923

 

(16

)%

 

16,959

 

(11

)%

 

22,475

 

(33

)%

Other assets

 

5,258

 

 

5,507

 

(5

)%

 

8,750

 

(40

)%

 

8,888

 

(41

)%

Total assets

$

2,438,554

 

$

2,374,739

 

3

%

$

2,416,003

 

1

%

$

2,446,673

 

(0

)%

Liabilities

Noninterest-bearing deposits

$

31,276

 

$

32,167

 

(3

)%

$

35,245

 

(11

)%

$

40,780

 

(23

)%

Interest-bearing deposits

 

2,035,917

 

 

1,981,298

 

3

%

 

1,968,741

 

3

%

 

1,999,878

 

2

%

Total deposits

 

2,067,193

 

 

2,013,465

 

3

%

 

2,003,986

 

3

%

 

2,040,658

 

1

%

Federal Home Loan Bank borrowings

 

—

 

 

—

 

N/M

 

 

50,000

 

(100

)%

 

50,000

 

(100

)%

Subordinated notes, net

 

—

 

 

—

 

N/M

 

 

—

 

N/M

 

 

—

 

N/M

 

Operating lease liabilities

 

11,753

 

 

12,504

 

(6

)%

 

12,537

 

(6

)%

 

13,317

 

(12

)%

Other liabilities

 

24,999

 

 

19,900

 

26

%

 

21,757

 

15

%

 

26,595

 

(6

)%

Total liabilities

 

2,103,945

 

 

2,045,869

 

3

%

 

2,088,280

 

1

%

 

2,130,570

 

(1

)%

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 52,313,933, 52,371,509, 52,070,361 and 52,072,631

 

84,323

 

 

84,323

 

0

%

 

84,323

 

0

%

 

84,323

 

0

%

Additional paid-in capital

 

18,210

 

 

17,592

 

4

%

 

16,660

 

9

%

 

15,882

 

15

%

Retained earnings

 

242,940

 

 

243,083

 

(0

)%

 

241,964

 

0

%

 

236,901

 

3

%

Accumulated other comprehensive loss

 

(10,864

)

 

(16,128

)

33

%

 

(15,224

)

29

%

 

(21,003

)

48

%

Total shareholders’ equity

 

334,609

 

 

328,870

 

2

%

 

327,723

 

2

%

 

316,103

 

6

%

Total liabilities and shareholders’ equity

$

2,438,554

 

$

2,374,739

 

3

%

$

2,416,003

 

1

%

$

2,446,673

 

(0

)%

 


N/M - Not Meaningful

Sterling Bancorp, Inc.

Condensed Consolidated Statements of Operations (Unaudited)

Three Months Ended

Nine Months Ended

September 30,

 

June 30,

 

%

 

September 30,

 

%

 

September 30,

 

September 30,

 

%

(dollars in thousands, except per share amounts)

 

2024

 

 

 

2024

 

 

change

 

 

2023

 

 

change

 

 

2024

 

 

 

2023

 

 

change

Interest income

Interest and fees on loans

$

20,506

 

$

20,620

 

(1

)%

$

21,663

 

(5

)%

$

62,095

 

$

65,715

 

(6

)%

Interest and dividends on investment securities and restricted stock

 

4,993

 

 

4,758

 

5

%

 

3,134

 

59

%

 

13,769

 

 

8,256

 

67

%

Interest on interest-bearing cash deposits

 

8,855

 

 

8,486

 

4

%

 

8,081

 

10

%

 

25,636

 

 

19,890

 

29

%

Total interest income

 

34,354

 

 

33,864

 

1

%

 

32,878

 

4

%

 

101,500

 

 

93,861

 

8

%

Interest expense

Interest on deposits

 

20,736

 

 

19,350

 

7

%

 

16,391

 

27

%

 

58,186

 

 

39,537

 

47

%

Interest on Federal Home Loan Bank borrowings

 

—

 

 

119

 

(100

)%

 

250

 

(100

)%

 

367

 

 

743

 

(51

)%

Interest on Subordinated Notes

 

—

 

 

—

 

N/M

 

 

243

 

(100

)%

 

—

 

 

3,727

 

(100

)%

Total interest expense

 

20,736

 

 

19,469

 

7

%

 

16,884

 

23

%

 

58,553

 

 

44,007

 

33

%

Net interest income

 

13,618

 

 

14,395

 

(5

)%

 

15,994

 

(15

)%

 

42,947

 

 

49,854

 

(14

)%

Provision for (recovery of) credit losses

 

(2,338

)

 

(2,079

)

(12

)%

 

(1,942

)

(20

)%

 

(4,376

)

 

(4,170

)

(5

)%

Net interest income after provision for (recovery of) credit losses

 

15,956

 

 

16,474

 

(3

)%

 

17,936

 

(11

)%

 

47,323

 

 

54,024

 

(12

)%

Non-interest income

Service charges and fees

 

69

 

 

92

 

(25

)%

 

97

 

(29

)%

 

248

 

 

269

 

(8

)%

Loss on sale of investment securities

 

—

 

 

—

 

N/M

 

 

—

 

N/M

 

 

—

 

 

(2

)

100

%

Gain on sale of loans held for sale

 

—

 

 

—

 

N/M

 

 

—

 

N/M

 

 

—

 

 

1,695

 

(100

)%

Unrealized gain (loss) on equity securities

 

160

 

 

(19

)

N/M

 

 

(137

)

N/M

 

 

94

 

 

(137

)

N/M

 

Net servicing income

 

61

 

 

46

 

33

%

 

107

 

(43

)%

 

182

 

 

268

 

(32

)%

Income earned on company-owned life insurance

 

84

 

 

84

 

0

%

 

83

 

1

%

 

251

 

 

244

 

3

%

Other

 

5

 

 

209

 

(98

)%

 

234

 

(98

)%

 

215

 

 

236

 

(9

)%

Total non-interest income

 

379

 

 

412

 

(8

)%

 

384

 

(1

)%

 

990

 

 

2,573

 

(62

)%

Non-interest expense

Salaries and employee benefits

 

8,540

 

 

8,196

 

4

%

 

8,753

 

(2

)%

 

25,196

 

 

27,437

 

(8

)%

Occupancy and equipment

 

2,019

 

 

2,005

 

1

%

 

2,110

 

(4

)%

 

6,108

 

 

6,273

 

(3

)%

Professional fees

 

3,005

 

 

2,147

 

40

%

 

4,242

 

(29

)%

 

7,334

 

 

10,984

 

(33

)%

FDIC insurance

 

260

 

 

262

 

(1

)%

 

274

 

(5

)%

 

784

 

 

794

 

(1

)%

Data processing

 

715

 

 

742

 

(4

)%

 

745

 

(4

)%

 

2,190

 

 

2,237

 

(2

)%

Other

 

1,071

 

 

1,571

 

(32

)%

 

1,578

 

(32

)%

 

4,313

 

 

5,155

 

(16

)%

Total non-interest expense

 

15,610

 

 

14,923

 

5

%

 

17,702

 

(12

)%

 

45,925

 

 

52,880

 

(13

)%

Income before income taxes

 

725

 

 

1,963

 

(63

)%

 

618

 

17

%

 

2,388

 

 

3,717

 

(36

)%

Income tax expense

 

868

 

 

647

 

34

%

 

304

 

N/M

 

 

1,412

 

 

1,367

 

3

%

Net income (loss)

$

(143

)

$

1,316

 

N/M

 

$

314

 

N/M

 

$

976

 

$

2,350

 

(58

)%

Income (loss) per share, basic and diluted

$

(0.00

)

$

0.03

 

$

0.01

 

$

0.02

 

$

0.05

 

Weighted average common shares outstanding:

Basic

 

51,059,012

 

 

50,920,703

 

 

50,699,967

 

 

50,941,371

 

 

50,606,566

 

Diluted

 

51,059,012

 

 

51,349,764

 

 

51,069,683

 

 

51,344,908

 

 

50,749,879

 

 


N/M - Not Meaningful

Sterling Bancorp, Inc.

Yield Analysis and Net Interest Income (Unaudited)

Three Months Ended

September 30, 2024

June 30, 2024

September 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

$

936,941

$

16,005

6.83

%

$

1,006,040

$

17,007

6.76

%

$

1,174,075

$

17,546

5.98

%

Commercial real estate

 

296,632

 

4,160

5.61

%

 

252,380

 

3,252

5.15

%

 

228,939

 

2,953

5.16

%

Construction

 

5,069

 

150

11.84

%

 

4,997

 

130

10.41

%

 

29,337

 

786

10.72

%

Commercial and industrial

 

7,427

 

191

10.29

%

 

10,855

 

231

8.51

%

 

17,796

 

378

8.50

%

Total loans

 

1,246,069

 

20,506

6.58

%

 

1,274,272

 

20,620

6.47

%

 

1,450,147

 

21,663

5.98

%

Securities, includes restricted stock(2)

 

476,506

 

4,993

4.19

%

 

464,404

 

4,758

4.10

%

 

400,838

 

3,134

3.13

%

Other interest-earning assets

 

650,089

 

8,855

5.45

%

 

618,846

 

8,486

5.49

%

 

589,267

 

8,081

5.49

%

Total interest-earning assets

 

2,372,664

 

34,354

5.79

%

 

2,357,522

 

33,864

5.75

%

 

2,440,252

 

32,878

5.39

%

Noninterest-earning assets

Cash and due from banks

 

7,038

 

3,391

 

4,780

Other assets

 

29,906

 

29,717

 

29,535

Total assets

$

2,409,608

$

2,390,630

$

2,474,567

Interest-bearing liabilities

Money market, savings and NOW

$

1,077,346

$

10,265

3.78

%

$

1,062,347

$

9,827

3.71

%

$

1,099,070

$

8,930

3.22

%

Time deposits

 

938,514

 

10,471

4.43

%

 

911,466

 

9,523

4.19

%

 

907,466

 

7,461

3.26

%

Total interest-bearing deposits

 

2,015,860

 

20,736

4.08

%

 

1,973,813

 

19,350

3.93

%

 

2,006,536

 

16,391

3.24

%

FHLB borrowings

 

-

 

-

0.00

%

 

24,176

 

119

1.95

%

 

50,000

 

250

1.96

%

Subordinated notes, net

 

-

 

-

0.00

%

 

-

 

-

0.00

%

 

9,218

 

243

10.32

%

Total borrowings

 

-

 

-

0.00

%

 

24,176

 

119

1.95

%

 

59,218

 

493

3.26

%

Total interest-bearing liabilities

 

2,015,860

 

20,736

4.08

%

 

1,997,989

 

19,469

3.91

%

 

2,065,754

 

16,884

3.24

%

Noninterest-bearing liabilities

Demand deposits

 

31,507

 

31,930

 

42,355

Other liabilities

 

33,719

 

33,361

 

48,640

Shareholders' equity

 

328,522

 

327,350

 

317,818

Total liabilities and shareholders' equity

$

2,409,608

$

2,390,630

$

2,474,567

Net interest income and spread(2)

$

13,618

1.71

%

$

14,395

1.84

%

$

15,994

2.15

%

Net interest margin(2)

2.30

%

2.44

%

2.62

%

 


(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.




















 

Nine Months Ended

September 30, 2024

September 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

$

1,002,156

$

50,209

6.68

%

$

1,272,056

$

54,310

5.69

%

Commercial real estate

 

265,260

 

10,625

5.34

%

 

225,919

 

8,336

4.92

%

Construction

 

5,768

 

522

12.07

%

 

34,153

 

2,640

10.31

%

Commercial and industrial

 

11,110

 

739

8.87

%

 

7,204

 

429

7.94

%

Total loans

 

1,284,294

 

62,095

6.45

%

 

1,539,332

 

65,715

5.69

%

Securities, includes restricted stock(2)

 

459,603

 

13,769

3.99

%

 

380,886

 

8,256

2.89

%

Other interest-earning assets

 

623,672

 

25,636

5.48

%

 

514,957

 

19,890

5.15

%

Total interest-earning assets

 

2,367,569

 

101,500

5.72

%

 

2,435,175

 

93,861

5.14

%

Noninterest-earning assets

Cash and due from banks

 

5,032

 

4,497

Other assets

 

29,713

 

28,085

Total assets

$

2,402,314

$

2,467,757

Interest-bearing liabilities

Money market, savings and NOW

$

1,071,565

$

29,747

3.70

%

$

1,027,336

$

19,814

2.58

%

Time deposits

 

911,464

 

28,439

4.16

%

 

926,122

 

19,723

2.85

%

Total interest-bearing deposits

 

1,983,029

 

58,186

3.91

%

 

1,953,458

 

39,537

2.71

%

FHLB borrowings

 

24,635

 

367

1.98

%

 

50,000

 

743

1.99

%

Subordinated notes, net

 

-

 

-

0.00

%

 

46,370

 

3,727

10.60

%

Total borrowings

 

24,635

 

367

1.96

%

 

96,370

 

4,470

6.12

%

Total interest-bearing liabilities

 

2,007,664

 

58,553

3.89

%

 

2,049,828

 

44,007

2.87

%

Noninterest-bearing liabilities

Demand deposits

 

32,923

 

45,519

Other liabilities

 

34,000

 

57,427

Shareholders' equity

 

327,727

 

314,983

Total liabilities and shareholders' equity

$

2,402,314

$

2,467,757

Net interest income and spread(2)

$

42,947

1.83

%

$

49,854

2.27

%

Net interest margin(2)

2.42

%

2.73

%

 


(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)

September 30,

 

June 30,

 

%

 

December 31,

 

%

 

September 30,

 

%

(dollars in thousands)

 

2024

 

 

 

2024

 

 

change

 

 

2023

 

 

change

 

 

2023

 

 

change

Residential real estate

$

904,438

 

$

972,326

 

(7

)%

$

1,085,776

 

 

(17

)%

$

1,139,205

 

 

(21

)%

Commercial real estate

 

306,927

 

 

277,273

 

11

%

 

236,982

 

 

30

%

 

237,812

 

 

29

%

Construction

 

5,212

 

 

5,050

 

3

%

 

10,381

 

 

(50

)%

 

22,292

 

 

(77

)%

Commercial and industrial

 

7,158

 

 

9,593

 

(25

)%

 

15,832

 

 

(55

)%

 

17,809

 

 

(60

)%

Other consumer

 

2

 

 

1

 

100

%

 

1

 

 

100

%

 

9

 

 

(78

)%

Total loans held for investment

 

1,223,737

 

 

1,264,243

 

(3

)%

 

1,348,972

 

 

(9

)%

 

1,417,127

 

 

(14

)%

Less: allowance for credit losses

 

(24,970

)

 

(27,556

)

(9

)%

 

(29,404

)

 

(15

)%

 

(34,267

)

 

(27

)%

Loans, net

$

1,198,767

 

$

1,236,687

 

(3

)%

$

1,319,568

 

 

(9

)%

$

1,382,860

 

 

(13

)%

Sterling Bancorp, Inc.

Allowance for Credit Losses - Loans (Unaudited)

Three Months Ended

September 30,

 

June 30,

 

December 31,

 

September 30,

(dollars in thousands)

 

2024

 

 

 

2024

 

 

 

2023

 

 

 

2023

 

Balance at beginning of period

$

27,556

 

$

29,257

 

$

34,267

 

$

36,153

 

Provision for (recovery of) credit losses

 

(2,596

)

 

(2,141

)

 

(4,927

)

 

(1,887

)

Charge offs

 

—

 

 

—

 

 

—

 

 

—

 

Recoveries

 

10

 

 

440

 

 

64

 

 

1

 

Balance at end of period

$

24,970

 

$

27,556

 

$

29,404

 

$

34,267

 

Sterling Bancorp, Inc.

Deposit Composition (Unaudited)

September 30,

 

June 30,

 

%

 

December 31,

 

%

 

September 30,

 

%

(dollars in thousands)

 

2024

 

 

 

2024

 

 

change

 

 

2023

 

 

change

 

 

2023

 

 

change

Noninterest-bearing deposits

$

31,276

 

$

32,167

 

(3

)%

$

35,245

 

 

(11

)%

$

40,780

 

 

(23

)%

Money Market, Savings and NOW

 

1,063,746

 

 

1,076,079

 

(1

)%

 

1,095,521

 

 

(3

)%

 

1,127,735

 

 

(6

)%

Time deposits

 

972,171

 

 

905,219

 

7

%

 

873,220

 

 

11

%

 

872,143

 

 

11

%

Total deposits

$

2,067,193

 

$

2,013,465

 

3

%

$

2,003,986

 

 

3

%

$

2,040,658

 

 

1

%

Sterling Bancorp, Inc.

Credit Quality Data (Unaudited)

At and for the Three Months Ended

September 30,

 

June 30,

 

December 31,

 

September 30,

(dollars in thousands)

 

2024

 

 

 

2024

 

 

 

2023

 

 

 

2023

 

Nonaccrual loans(1)










Residential real estate

$

13,187

 

$

11,049

 

$

8,942

 

$

5,035

 

Loans past due 90 days or more and still accruing interest

 

27

 

 

1,164

 

 

31

 

 

1,147

 

Nonperforming loans

$

13,214

 

$

12,213

 

$

8,973

 

$

6,182

 

Total loans (1)

$

1,223,737

 

$

1,264,243

 

$

1,348,972

 

$

1,417,127

 

Total assets

$

2,438,554

 

$

2,374,739

 

$

2,416,003

 

$

2,446,673

 

Allowance for credit losses to total loans

 

2.04

%

 

2.18

%

 

2.18

%

 

2.42

%

Allowance for credit losses to total nonaccrual loans

 

189

%

 

249

%

 

329

%

 

681

%

Nonaccrual loans to total loans

 

1.08

%

 

0.87

%

 

0.66

%

 

0.36

%

Nonperforming loans to total loans

 

1.08

%

 

0.97

%

 

0.67

%

 

0.44

%

Nonperforming loans to total assets

 

0.54

%

 

0.51

%

 

0.37

%

 

0.25

%

Net charge offs (recoveries) to average loans during the period

 

0.00

%

 

(0.03

)%

 

0.00

%

 

0.00

%

 


(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/20241030548637/en/

Investor Contact: Sterling Bancorp, Inc. Karen Knott Executive Vice President and Chief Financial Officer [phone] [e-mail]