Sterling Bancorp Inc (SBT) Reports Q3 2023 Financial Results
Sterling Bancorp Inc (NASDAQ:SBT) reported a net income of $0.3 million for Q3 2023, a decrease from the previous quarter's $2.5 million.
The company's total gross loans stood at $1.4 billion, with total deposits amounting to $2.0 billion.
Nonperforming assets were $6.2 million, representing 0.25% of total assets.
The company's consolidated and bank's leverage ratio were 13.41% and 12.93%, respectively.
On October 25, 2023, Sterling Bancorp Inc (NASDAQ:SBT), the holding company of Sterling Bank and Trust, F.S.B., released its unaudited financial results for the third quarter ended September 30, 2023. The company reported a net income of $0.3 million, or $0.01 per diluted share, a decrease from the previous quarter's net income of $2.5 million, or $0.05 per diluted share. This decrease is primarily due to a decrease in recovery of credit losses and an increase in professional fees.
Financial Highlights
The company's net interest margin for the quarter was 2.62%. A provision for (recovery of) credit losses of $(1.9) million was recorded, with the ratio of allowance for credit losses to total loans standing at 2.42%. Nonperforming assets were $6.2 million, representing 0.25% of total assets. Total gross loans and total deposits were $1.4 billion and $2.0 billion, respectively. Non-interest expense for the quarter was $17.7 million, with shareholders' equity standing at $316.1 million. The company's consolidated and bank's leverage ratio were 13.41% and 12.93%, respectively.
Company Commentary
Thomas M. OBrien, Chairman, President, and Chief Executive Officer, commented on the results, stating,
Sterlings third quarter reflects the lingering impacts from the long running government investigations. We continue to bear expenses from certain indemnified individuals who are responding to government inquiries. In this quarter, those expenses were approximately $1.7 million."
He further added,
Margins remain tight, and we anticipate that continued upward pressure on interest rates and deposit prices will not likely improve in the near-term."
Balance Sheet Summary
Total assets were $2.4 billion at the end of September 2023, reflecting a decrease of $85.3 million, or 3%, from $2.5 billion at the end of June 2023. Total deposits were $2.0 billion at the end of September 2023, virtually unchanged from June 2023. Total shareholders equity was $316.1 million at the end of September 2023 compared to $317.7 million at the end of June 2023.
Asset Quality and Recovery of Credit Losses
A recovery of credit losses of $(1.9) million was recorded for the third quarter of 2023 compared to a recovery of credit losses of $(2.9) million for the second quarter of 2023. The allowance for credit losses was $34.3 million at the end of September 2023, or 2.42% of total loans held for investment, compared to $36.2 million, or 2.43% of total loans held for investment, at the end of June 2023.
This article first appeared on GuruFocus.
