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 quarter and year ended December 31, 2024.
Fourth Quarter and Year-End 2024
Highlights
- Fourth quarter net income of $1.2 million, or $0.02 per
diluted share; full year net income of $2.1 million, or $0.04 per
diluted share
- Fourth quarter net interest margin of 2.24%; full year net
interest margin of 2.37%
- Fourth quarter provision for (recovery of) credit losses of
$(4.2) million; full year provision for (recovery of) credit losses
of $(8.5) million
- Nonperforming loans of $14.6 million, or 1.26% of total
loans and 0.60% of total assets
- Ratio of allowance for credit losses to total loans of
1.80%
- Fourth quarter non-interest expense of $15.9 million; full
year non-interest expense of $61.8 million
- Shareholders’ equity of $334.0 million
- Consolidated Company’s and Bank’s leverage ratio of 14.08%
and 13.76%, respectively
- Total deposits of $2.1 billion
- Total gross loans of $1.2 billion
The Company reported net income of $1.2 million, or $0.02 per
diluted share, for the quarter ended December 31, 2024, compared to
a net loss of $(0.1) million, or $(0.00) per diluted share, for the
quarter ended September 30, 2024. For the year ended December 31,
2024, net income was $2.1 million, or $0.04 per diluted share,
compared to net income of $7.4 million, or $0.15 per diluted share,
for the year ended December 31, 2023.
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
Company’s shareholders approved the definitive stock purchase
agreement for the Transaction and the plan of dissolution at a
Special Meeting of Shareholders held on December 18, 2024. The
Transaction is expected to close in the first quarter of 2025. The
Transaction is subject to customary closing conditions, including
the receipt of required regulatory approvals.
Balance Sheet
Total Assets – Total assets were $2.4 billion at December
31, 2024, essentially unchanged as compared to September 30, 2024,
and an increase of $20.5 million, or 1%, from December 31,
2023.
Cash and due from banks increased $167.8 million, or 24%, to
$878.2 million at December 31, 2024 compared to $710.4 million at
September 30, 2024 primarily due to net cash inflows from
maturities in the debt securities portfolio and loan repayments.
Cash and due from banks increased $300.2 million, or 52% from
$578.0 million at December 31, 2023. Debt securities of $338.1
million decreased $98.3 million, or 23%, from $436.4 million at
September 30, 2024 and decreased $81.1 million, or 19%, from $419.2
at December 31, 2023. 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 December 31, 2024 decreased
$68.0 million, or 6%, from September 30, 2024. Residential real
estate loans were $849.4 million at December 31, 2024, a decrease
of $55.1 million, or 6%, from September 30, 2024. Commercial real
estate loans were $296.5 million at December 31, 2024, a decrease
of $10.5 million, or 3%, from September 30, 2024. Total gross loans
at December 31, 2024 declined $193.2 million, or 14%, from December
31, 2023 with residential real estate loans decreasing $236.4
million, or 22%, and commercial real estate loans increasing $59.5
million, or 25%.
Total Deposits – Total deposits were $2.1 billion at
December 31, 2024 and September 30, 2024 and were $2.0 billion at
December 31, 2023. During the fourth quarter of 2024, money market,
savings and NOW deposits increased $16.0 million, or 2% and time
deposits decreased $19.1 million, or 2%. During 2024, time deposits
increased $79.8 million, or 9% and money market, savings and NOW
deposits decreased $15.8 million, or 1%. We 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 $334.0 million
at December 31, 2024, a decrease of $0.6 million from September 30,
2024 primarily due to a $2.7 million increase in the unrealized
loss on our debt securities portfolio included in accumulated other
comprehensive loss, partially offset by the $1.2 million net income
in the fourth quarter of 2024. During 2024, total shareholders’
equity increased $6.2 million, or 2%, due primarily to the $2.1
million in net income and a $1.7 million reduction in the
unrealized loss on our debt securities portfolio included in
accumulated other comprehensive loss.
At December 31, 2024, the consolidated Company’s and Bank’s
leverage ratios were 14.08% and 13.76%, 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 $(4.2)
million was recorded for the fourth quarter of 2024 compared to
$(2.3) million for the third quarter of 2024. In the fourth quarter
of 2024, the recovery of credit losses was primarily due to the
reduction in the commercial real estate portfolio’s allowance
reflecting a decrease in criticized and classified assets. In
addition, the residential mortgage portfolio’s allowance had a
reduction primarily due to continued run-off of that portfolio. The
allowance for credit losses was $20.8 million, $25.0 million and
$29.4 million, or 1.80%, 2.04% and 2.18% of total loans at December
31, 2024, September 30, 2024 and December 31, 2023,
respectively.
Recoveries of loan losses during the fourth and third quarter of
2024 were $2 thousand and $10 thousand, respectively, with no
charge offs in either quarter. Recoveries of loan losses during the
year ended December 31, 2024 and 2023 were $0.5 million in both
years, with no charge offs in 2024 and $6.5 million in 2023
pertaining to the reclassification of $41.1 million of nonaccrual
and delinquent residential loans as held for sale and charged off
down to their fair value in the first quarter of 2023.
Nonperforming loans, comprised primarily of nonaccrual
residential real estate loans, totaled $14.6 million, or 0.60% of
total assets, at December 31, 2024 and $13.2 million, or 0.54% of
total assets at September 30, 2024.
Results of Operations
Net Interest Income and Net Interest Margin – Net
interest income for the fourth quarter of 2024 was $13.5 million
compared to $13.6 million for the prior quarter of 2024 and $15.1
million for the fourth quarter of 2023. The net interest margin of
2.24% for the fourth quarter of 2024 decreased from the prior
quarter’s net interest margin of 2.30% and decreased from the net
interest margin of 2.52% for the fourth quarter of 2023. The
decrease in net interest income during the fourth quarter of 2024
compared to the prior quarter was primarily due to a 23 basis point
decrease in the average yield on interest-earning assets which was
partially offset by a 17 basis point decrease in the average rate
paid on interest-bearing deposits. The decrease in net interest
income during the fourth quarter of 2024 compared to the fourth
quarter of 2023 was primarily due to a 41 basis point increase in
the average rate paid on interest-bearing deposits and a $186.9
million, or 14%, decline in average loans, partially offset by a 7
basis point increase in the average yield on total interest-earning
assets during the same period.
Net interest income for the year ended December 31, 2024 was
$56.5 million, a decrease of $8.5 million, or 13%, from the year
ended December 31, 2023. The net interest margin of 2.37% decreased
31 basis points from the prior year’s net interest margin of 2.68%.
The decrease in net interest income for the year ended December 31,
2024 is primarily attributable to a 100 basis point increase in the
average rate paid on interest-bearing deposits and a $237.8
million, or 16%, decline in the average balance of loans. This was
partially offset by the impact of a 45 basis point increase in the
average yield of other interest-earning assets and the redemption
of all of the Company’s subordinated notes in 2023 which decreased
interest expense by $3.7 million.
Non-Interest Income – Non-interest income for the year
ended December 31, 2024 was $1.1 million, a decrease of $1.7
million from $2.8 million for the year ended December 31, 2023. The
decrease was primarily attributable to a $1.6 million gain on the
sale of all loans that were held for sale, comprised primarily of
nonperforming and chronically delinquent residential real estate
loans, which occurred in the second quarter of 2023.
Non-Interest Expense – Non-interest expense of $15.9
million for the fourth quarter of 2024 reflected an increase of
$0.3 million, or 2%, compared to $15.6 million for the third
quarter of 2024 and an increase of $3.1 million, or 24%, compared
to $12.8 million for the fourth quarter of 2023. The increase in
non-interest expense from the fourth quarter versus the third
quarter of 2024 was primarily due to a $0.7 million increase in
other expenses, partially offset by decreases of $0.2 million in
salaries and employee benefits and $0.3 million in professional
fees. Professional fees for the fourth and third quarter of 2024
included Transaction related expense of $2.1 million and $1.4
million, respectively. The increase to the fourth quarter of 2024
compared to same quarter last year was primarily due to $3.8
million received in the fourth quarter of 2023 from our insurance
carriers for previously incurred expenses related to the prior
government investigations, offset in part by Transaction related
expenses included in professional fees incurred in the fourth
quarter of 2024.
Non-interest expense for the year ended December 31, 2024 was
$61.8 million, inclusive of $3.5 million of expenses incurred in
connection with the Transaction, a decrease of $3.9 million, or 6%,
compared to $65.7 million for the year ended December 31, 2023. The
decrease was primarily attributable to salaries and employee
benefits which were $2.4 million, or 7% lower in 2024 as compared
to 2023 due to reductions in staffing levels. Professional fees
remained flat in 2024 compared to 2023, although the components of
our professional fees changed significantly as compliance related
professional fees declined in 2024, we received substantial
reimbursements from our insurance carriers in 2023 and we incurred
significant Transaction related expenses in 2024.
Income Tax Expense – The Company recorded an income tax
expense of $2.1 million, a 49.7% effective rate, for the year ended
December 31, 2024 and $3.1 million, or an effective rate of 29.8%,
for the year ended December 31, 2023. 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. Our effective tax rate varies from the statutory rate
primarily due to the adjustment in the third quarter of 2024 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
At and for the Year
Ended
December 31,
September 30,
December 31,
December 31,
December 31,
(dollars in thousands, except per share data)
2024
2024
2023
2024
2023
Net income (loss)
$
1,162
$
(143
)
$
5,063
$
2,138
$
7,413
Income (loss) per share, diluted
$
0.02
$
(0.00
)
$
0.10
$
0.04
$
0.15
Net interest income
$
13,523
$
13,618
$
15,105
$
56,470
$
64,959
Net interest margin
2.24
%
2.30
%
2.52
%
2.37
%
2.68
%
Non-interest income
$
67
$
379
$
213
$
1,057
$
2,786
Non-interest expense
$
15,888
$
15,610
$
12,830
$
61,813
$
65,710
Loans, net of allowance for credit losses
$
1,134,925
$
1,198,767
$
1,319,568
$
1,134,925
$
1,319,568
Total deposits
$
2,070,890
$
2,067,193
$
2,003,986
$
2,070,890
$
2,003,986
Asset Quality Nonperforming loans
$
14,584
$
13,214
$
8,973
$
14,584
$
8,973
Allowance for credit losses to total loans
1.80
%
2.04
%
2.18
%
1.80
%
2.18
%
Allowance for credit losses to total nonaccrual loans
143
%
189
%
329
%
143
%
329
%
Nonaccrual loans to total loans
1.26
%
1.08
%
0.66
%
1.26
%
0.66
%
Nonperforming loans to total loans
1.26
%
1.08
%
0.67
%
1.26
%
0.67
%
Nonperforming loans to total assets
0.60
%
0.54
%
0.37
%
0.60
%
0.37
%
Net charge offs (recoveries) to average loans during the period
(0.00
)%
(0.00
)%
(0.00
)%
(0.04
)%
0.40
%
Provision for (recovery of) credit losses
$
(4,160
)
$
(2,338
)
$
(4,357
)
$
(8,536
)
$
(8,527
)
Net charge offs (recoveries)
$
(2
)
$
(10
)
$
(64
)
$
(452
)
$
5,944
Performance Ratios Return on average assets
0.19
%
(0.02
)%
0.83
%
0.09
%
0.30
%
Return on average shareholders' equity
1.39
%
(0.17
)%
6.34
%
0.65
%
2.35
%
Efficiency ratio (1)
116.91
%
111.52
%
83.76
%
107.45
%
97.00
%
Yield on average interest-earning assets
5.56
%
5.79
%
5.49
%
5.68
%
5.23
%
Cost of average interest-bearing liabilities
3.91
%
4.08
%
3.47
%
3.89
%
3.02
%
Net interest spread
1.65
%
1.71
%
2.02
%
1.79
%
2.21
%
Leverage Capital Ratios(2) Consolidated
14.08
%
14.19
%
13.95
%
14.08
%
13.95
%
Bank
13.76
%
13.70
%
13.38
%
13.76
%
13.38
%
____________________
(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. December 31, 2024
capital ratios are estimated.
Sterling Bancorp, Inc. Condensed Consolidated Balance
Sheets (Unaudited) December 31, September
30, % December 31, % (dollars in
thousands)
2024
2024
change
2023
change
Assets Cash and due from banks
$
878,181
$
710,372
24
%
$
577,967
52
%
Interest-bearing time deposits with other banks
—
4,983
(100
)%
5,226
(100
)%
Debt securities available for sale
338,105
436,409
(23
)%
419,213
(19
)%
Equity securities
4,661
4,797
(3
)%
4,703
(1
)%
Loans, net of allowance for credit losses of $20,805, $24,970 and
$29,404
1,134,925
1,198,767
(5
)%
1,319,568
(14
)%
Accrued interest receivable
8,592
9,650
(11
)%
8,509
1
%
Mortgage servicing rights, net
1,279
1,338
(4
)%
1,542
(17
)%
Leasehold improvements and equipment, net
4,480
4,710
(5
)%
5,430
(17
)%
Operating lease right-of-use assets
10,640
10,765
(1
)%
11,454
(7
)%
Federal Home Loan Bank stock, at cost
18,423
18,423
0
%
18,923
(3
)%
Federal Reserve Bank stock, at cost
9,238
9,187
1
%
9,048
2
%
Company-owned life insurance
8,926
8,872
1
%
8,711
2
%
Deferred tax asset, net
15,389
15,023
2
%
16,959
(9
)%
Other assets
3,673
5,258
(30
)%
8,750
(58
)%
Total assets
$
2,436,512
$
2,438,554
(0
)%
$
2,416,003
1
%
Liabilities Noninterest-bearing deposits
$
38,086
$
31,276
22
%
$
35,245
8
%
Interest-bearing deposits
2,032,804
2,035,917
(0
)%
1,968,741
3
%
Total deposits
2,070,890
2,067,193
0
%
2,003,986
3
%
Federal Home Loan Bank borrowings
—
—
N/M
50,000
(100
)%
Operating lease liabilities
11,589
11,753
(1
)%
12,537
(8
)%
Other liabilities
20,070
24,999
(20
)%
21,757
(8
)%
Total liabilities
2,102,549
2,103,945
(0
)%
2,088,280
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 52,305,036, 52,313,933 and 52,070,361
84,323
84,323
0
%
84,323
0
%
Additional paid-in capital
19,053
18,210
5
%
16,660
14
%
Retained earnings
244,102
242,940
0
%
241,964
1
%
Accumulated other comprehensive loss
(13,515
)
(10,864
)
(24
)%
(15,224
)
11
%
Total shareholders’ equity
333,963
334,609
(0
)%
327,723
2
%
Total liabilities and shareholders’ equity
$
2,436,512
$
2,438,554
(0
)%
$
2,416,003
1
%
____________________ N/M - Not Meaningful
Sterling
Bancorp, Inc. Condensed Consolidated Statements of
Operations (Unaudited)
Three Months Ended
Year Ended
(dollars in thousands, except
per share amounts)
December 31,
2024
September 30,
2024
% change
December 31,
2023
% change
December 31,
2024
December 31,
2023
% change
Interest income Interest and fees on loans
$
19,960
$
20,506
(3
)%
$
20,969
(5
)%
$
82,055
$
86,684
(5
)%
Interest and dividends on investment securities and restricted
stock
3,965
4,993
(21
)%
3,800
4
%
17,734
12,056
47
%
Interest on interest-bearing cash deposits
9,710
8,855
10
%
8,159
19
%
35,346
28,049
26
%
Total interest income
33,635
34,354
(2
)%
32,928
2
%
135,135
126,789
7
%
Interest expense Interest on deposits
20,112
20,736
(3
)%
17,572
14
%
78,298
57,109
37
%
Interest on Federal Home Loan Bank borrowings
—
—
N/M
251
(100
)%
367
994
(63
)%
Interest on Subordinated Notes
—
—
N/M
—
N/M
—
3,727
(100
)%
Total interest expense
20,112
20,736
(3
)%
17,823
13
%
78,665
61,830
27
%
Net interest income
13,523
13,618
(1
)%
15,105
(10
)%
56,470
64,959
(13
)%
Provision for (recovery of) credit losses
(4,160
)
(2,338
)
(78
)%
(4,357
)
5
%
(8,536
)
(8,527
)
(0
)%
Net interest income after provision for (recovery of) credit losses
17,683
15,956
11
%
19,462
(9
)%
65,006
73,486
(12
)%
Non-interest income Service charges and fees
66
69
(4
)%
75
(12
)%
314
344
(9
)%
Loss on sale of investment securities
—
—
N/M
(111
)
100
%
—
(113
)
100
%
Gain (loss) on sale of loans held for sale
—
—
N/M
(72
)
100
%
—
1,623
(100
)%
Unrealized gain (loss) on equity securities
(136
)
160
N/M
198
N/M
(42
)
61
N/M
Net servicing income
56
61
(8
)%
40
40
%
238
308
(23
)%
Income earned on company-owned life insurance
81
84
(4
)%
83
(2
)%
332
327
2
%
Other
—
5
(100
)%
—
N/M
215
236
(9
)%
Total non-interest income
67
379
(82
)%
213
(69
)%
1,057
2,786
(62
)%
Non-interest expense Salaries and employee benefits
8,387
8,540
(2
)%
8,500
(1
)%
33,583
35,937
(7
)%
Occupancy and equipment
2,015
2,019
(0
)%
2,096
(4
)%
8,123
8,369
(3
)%
Professional fees
2,731
3,005
(9
)%
(908
)
N/M
10,065
10,076
(0
)%
FDIC insurance
264
260
2
%
264
0
%
1,048
1,058
(1
)%
Data processing
760
715
6
%
704
8
%
2,950
2,941
0
%
Other
1,731
1,071
62
%
2,174
(20
)%
6,044
7,329
(18
)%
Total non-interest expense
15,888
15,610
2
%
12,830
24
%
61,813
65,710
(6
)%
Income before income taxes
1,862
725
N/M
6,845
(73
)%
4,250
10,562
(60
)%
Income tax expense
700
868
(19
)%
1,782
(61
)%
2,112
3,149
(33
)%
Net income (loss)
$
1,162
$
(143
)
N/M
$
5,063
(77
)%
$
2,138
$
7,413
(71
)%
Income (loss) per share, basic and diluted
$
0.02
$
(0.00
)
$
0.10
$
0.04
$
0.15
Weighted average common shares outstanding: Basic
51,062,757
51,059,012
50,703,220
50,971,884
50,630,928
Diluted
51,409,877
51,059,012
51,182,011
51,340,966
50,778,559
____________________ N/M - Not Meaningful
Sterling
Bancorp, Inc.
Yield Analysis and Net Interest Income (Unaudited)
Three Months Ended
December 31, 2024 September 30, 2024 December 31,
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
$
877,536
$
15,400
7.02
%
$
936,941
$
16,005
6.83
%
$
1,111,391
$
17,181
6.18
%
Commercial real estate
304,178
4,298
5.65
%
296,632
4,160
5.61
%
237,997
3,065
5.15
%
Construction
4,846
123
10.15
%
5,069
150
11.84
%
13,789
347
10.07
%
Commercial and industrial
7,358
139
7.56
%
7,427
191
10.29
%
17,611
376
8.54
%
Total loans
1,193,918
19,960
6.69
%
1,246,069
20,506
6.58
%
1,380,788
20,969
6.07
%
Securities, includes restricted stock(2)
424,824
3,965
3.73
%
476,506
4,993
4.19
%
431,994
3,800
3.52
%
Other interest-earning assets
799,605
9,710
4.86
%
650,089
8,855
5.45
%
585,703
8,159
5.57
%
Total interest-earning assets
2,418,347
33,635
5.56
%
2,372,664
34,354
5.79
%
2,398,485
32,928
5.49
%
Noninterest-earning assets
Cash and due from banks
3,616
7,038
3,822
Other assets
26,872
29,906
30,305
Total assets
$
2,448,835
$
2,409,608
$
2,432,612
Interest-bearing liabilities
Money market, savings and NOW
$
1,077,654
$
9,296
3.42
%
$
1,077,346
$
10,265
3.78
%
$
1,116,533
$
9,745
3.46
%
Time deposits
965,544
10,816
4.44
%
938,514
10,471
4.43
%
873,928
7,827
3.55
%
Total interest-bearing deposits
2,043,198
20,112
3.91
%
2,015,860
20,736
4.08
%
1,990,461
17,572
3.50
%
FHLB borrowings
-
-
0.00
%
-
-
0.00
%
50,000
251
1.96
%
Subordinated notes, net
-
-
0.00
%
-
-
0.00
%
-
-
0.00
%
Total borrowings
-
-
0.00
%
-
-
0.00
%
50,000
251
1.96
%
Total interest-bearing liabilities
2,043,198
20,112
3.91
%
2,015,860
20,736
4.08
%
2,040,461
17,823
3.47
%
Noninterest-bearing liabilities
Demand deposits
38,316
31,507
38,310
Other liabilities
33,764
33,719
36,768
Shareholders' equity
333,557
328,522
317,073
Total liabilities and shareholders' equity
$
2,448,835
$
2,409,608
$
2,432,612
Net interest income and spread(2)
$
13,523
1.65
%
$
13,618
1.71
%
$
15,105
2.02
%
Net interest margin(2)
2.24
%
2.30
%
2.52
%
____________________
(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.
Year Ended December 31, 2024
December 31, 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
$
970,830
$
65,609
6.76
%
$
1,231,559
$
71,491
5.80
%
Commercial real estate
275,043
14,923
5.43
%
228,963
11,401
4.98
%
Construction
5,536
645
11.65
%
29,020
2,987
10.29
%
Commercial and industrial
10,167
878
8.64
%
9,827
805
8.19
%
Total loans
1,261,576
82,055
6.50
%
1,499,369
86,684
5.78
%
Securities, includes restricted stock(2)
450,861
17,734
3.93
%
393,767
12,056
3.06
%
Other interest-earning assets
668,760
35,346
5.29
%
532,789
28,049
5.26
%
Total interest-earning assets
2,381,197
135,135
5.68
%
2,425,925
126,789
5.23
%
Noninterest-earning assets
Cash and due from banks
3,811
4,326
Other assets
29,001
28,648
Total assets
$
2,414,009
$
2,458,899
Interest-bearing liabilities
Money market, savings and
NOW
$
1,073,095
$
39,043
3.63
%
$
1,049,818
$
29,559
2.82
%
Time deposits
925,058
39,255
4.23
%
912,966
27,550
3.02
%
Total interest-bearing deposits
1,998,153
78,298
3.91
%
1,962,784
57,109
2.91
%
FHLB borrowings
18,443
367
1.98
%
50,000
994
1.99
%
Subordinated notes, net
-
-
0.00
%
34,683
3,727
10.60
%
Total borrowings
18,443
367
1.96
%
84,683
4,721
5.50
%
Total interest-bearing liabilities
2,016,596
78,665
3.89
%
2,047,467
61,830
3.02
%
Noninterest-bearing liabilities
Demand deposits
34,279
43,702
Other liabilities
33,940
52,220
Shareholders' equity
329,194
315,510
Total liabilities and shareholders'
equity
$
2,414,009
$
2,458,899
Net interest income and spread(2)
$
56,470
1.79
%
$
64,959
2.21
%
Net interest margin(2)
2.37
%
2.68
%
____________________
(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) December 31,
September 30, % December 31, %
(dollars in thousands)
2024
2024
change
2023
change
Residential real estate
$
849,350
$
904,438
(6
)%
$
1,085,776
(22
)%
Commercial real estate
296,457
306,927
(3
)%
236,982
25
%
Construction
2,509
5,212
(52
)%
10,381
(76
)%
Commercial and industrial
7,395
7,158
3
%
15,832
(53
)%
Other consumer
19
2
N/M
1
N/M
Total loans held for investment
1,155,730
1,223,737
(6
)%
1,348,972
(14
)%
Less: allowance for credit losses
(20,805
)
(24,970
)
(17
)%
(29,404
)
(29
)%
Loans, net
$
1,134,925
$
1,198,767
(5
)%
$
1,319,568
(14
)%
Sterling Bancorp, Inc. Allowance for Credit
Losses - Loans (Unaudited) Three Months Ended
Year Ended December 31, September 30,
December 31, December 31, December 31,
(dollars in thousands)
2024
2024
2023
2024
2023
Balance at beginning of period
$
24,970
$
27,556
$
34,267
$
29,404
$
45,464
Adjustment to adopt ASU 2016-13
—
—
—
—
(1,651
)
Adjustment to adopt ASU 2022-02
—
—
—
—
380
Balance after adoption
24,970
27,556
34,267
29,404
44,193
Provision for (recovery of) credit losses
(4,167
)
(2,596
)
(4,927
)
(9,051
)
(8,844
)
Charge offs
—
—
—
—
(6,478
)
Recoveries
2
10
64
452
533
Balance at end of period
$
20,805
$
24,970
$
29,404
$
20,805
$
29,404
Sterling Bancorp, Inc. Deposit Composition
(Unaudited)
December 31,
September 30,
%
December 31,
%
(dollars in thousands)
2024
2024
change
2023
change
Noninterest-bearing deposits
$
38,086
$
31,276
22
%
$
35,245
8
%
Money Market, Savings and NOW
1,079,744
1,063,746
2
%
1,095,521
(1
)%
Time deposits
953,060
972,171
(2
)%
873,220
9
%
Total deposits
$
2,070,890
$
2,067,193
0
%
$
2,003,986
3
%
Sterling Bancorp, Inc. Credit Quality Data
(Unaudited)
At and for the Three Months
Ended
December 31,
September 30,
December 31,
(dollars in thousands)
2024
2024
2023
Nonaccrual loans(1) Residential real estate
$
13,136
$
13,187
$
8,942
Commercial real estate
1,422
—
—
Total nonaccrual loans
$
14,558
$
13,187
$
8,942
Loans past due 90 days or more and still accruing interest
26
27
31
Nonperforming loans
$
14,584
$
13,214
$
8,973
Total loans (1)
$
1,155,730
$
1,223,737
$
1,348,972
Total assets
$
2,436,512
$
2,438,554
$
2,416,003
Allowance for credit losses to total loans
1.80
%
2.04
%
2.18
%
Allowance for credit losses to total nonaccrual loans
143
%
189
%
329
%
Nonaccrual loans to total loans
1.26
%
1.08
%
0.66
%
Nonperforming loans to total loans
1.26
%
1.08
%
0.67
%
Nonperforming loans to total assets
0.60
%
0.54
%
0.37
%
Net charge offs (recoveries) to average loans during the period
(0.00
)%
(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/20250130937083/en/
Investor Contact: Sterling Bancorp, Inc. Karen Knott
Executive Vice President and Chief Financial Officer (248) 359-6624
kzaborney@sterlingbank.com
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