Sterling Bancorp Inc (SBT) Misses Q3 EPS by 8c

Sterling Bancorp Inc (NASDAQ: SBT) reported Q3 EPS of $0.00, $0.08 worse than the analyst estimate of $0.08.

Third Quarter Highlights

• Net loss of $111 thousand, or $(0.00) per share
• Net interest margin of 2.74%
• Non-interest expense of $25.0 million, including $12.2 million of professional fees
• Provision for loan losses of $2.1 million, increasing the allowance for loan losses to 1.80% of total loans
• Shareholders’ equity of $331.1 million
• Bank capital ratios continue to be in excess of minimum ratios required to be considered “well-capitalized” with a leverage ratio of 9.90%, a total risk-based capital ratio of 21.30% and a common equity tier one ratio of 20.03%
• The Company’s consolidated leverage ratio of 8.64%, risk-based capital ratio of 22.17% and common equity tier one ratio of 17.46% continue to exceed minimum regulatory capital requirements
• Total deposits of $3.095 billion
• Total loans held for investment of $2.676 billion
• Total loan originations of $67.3 million for the third quarter of 2020
• Nonperforming loans and trouble debt restructurings increased to $98.1 million (or 3.67% of total loans) from $77.3 million (or 2.84% of total loans) at June 30, 2020
• On September 22, 2020, the Company announced the appointment of two new independent directors to the Board
• On October 15, 2020, the Company announced an agreement to sell substantially all of the assets QCM, LLC, its registered investment advisory business, in order to streamline business lines

“Since the Company has now successfully filed its past due 10-K and 10-Qs, this quarter marks the first opportunity where the Company can issue a standard earnings release with more traditional tables and discussion around results. In the time since my appointment as CEO, we have worked tirelessly to bring finality to the 2019 financial reporting and the 2020 interim quarterly reports. The process was complex and time-consuming. In this most recent quarter, Sterling is reporting a loss of $111,000. The loss is primarily attributable to the significant and on-going costs of the various investigations and remediation efforts to bring the Company into full compliance with regulatory standards and to continue our total cooperation with federal authorities as they review Sterling’s past practices and accountable individuals. The volume of remedial work remains substantial, but our management commitment to successfully address the outstanding issues is strong. We are committed to establishing a strong internal control environment with full transparency to the board, to our regulators and our professional advisors,” said Thomas M. O’Brien, Chairman, President, and Chief Executive Officer.

For earnings history and earnings-related data on Sterling Bancorp Inc (SBT) click here.

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