Sterling Completes the Sale of Problem Loans with Unpaid Principal Balances of $43.5 million
31 May 2023 - 10:00PM
Business Wire
Sterling Bancorp, Inc. (NASDAQ: SBT) (the “Company”), the
holding company of Sterling Bank and Trust, F.S.B., today announced
the completion of the previously disclosed plan to sell
nonperforming and chronically delinquent residential real estate
loans, primarily consisting of Advantage Loan Program loans. The
pool consisted of 84 loans with an aggregate unpaid principal
balance of approximately $43.5 million. The transaction, with an
institutional investor, closed on Friday, May 26, 2023, and the
Company realized net proceeds of $36.1 million which was modestly
better than the $35.3 million estimated fair value of these loans
recorded in held for sale at March 31, 2023.
“We are extremely pleased with the competitive pricing and
execution of this sale. Removing these loans also eliminates the
servicing costs and financial uncertainty caused by their chronic
delinquent status. This residential sale eliminates virtually all
of Sterling’s nonaccrual and delinquent loans reported as of March
31, 2023 and follows the disposal in 2022 of all our nonaccrual
commercial real estate loans and a significant amount of the
remaining loans secured by single room occupancy hotels, along with
other higher risk commercial real estate loans. Sterling’s balance
sheet is now in a very healthy position from the perspective of
capital levels, liquidity, and credit risk,” said Thomas M.
O’Brien, Chairman, President, and Chief Executive Officer.
About Sterling Bancorp, Inc.
Sterling Bancorp, Inc. is a unitary thrift holding company. Its
wholly owned subsidiary, Sterling Bank and Trust, F.S.B., has
primary branch operations in San Francisco and Los Angeles,
California and New York City. Sterling offers a range of loan
products as well as retail and business banking services. Sterling
also has an operations center and a branch in Southfield, Michigan.
For additional information, please visit the Company’s website at
http://www.sterlingbank.com.
Forward-Looking Statements
This press release contains certain statements that are, or may
be deemed to be, “forward-looking statements” 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 Securities and
Exchange Commission on March 16, 2023, subsequent periodic reports
and future periodic reports, could affect future results and
events, causing those results and events to differ materially from
those views expressed or implied in the Company’s forward-looking
statements. 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230531005484/en/
Sterling Bancorp, Inc. Karen Knott Executive Vice President and
Chief Financial Officer (248) 359-6624
kzaborney@sterlingbank.com
Sterling Bancorp (NASDAQ:SBT)
Historical Stock Chart
From Apr 2024 to May 2024
Sterling Bancorp (NASDAQ:SBT)
Historical Stock Chart
From May 2023 to May 2024