Sterling Bancorp Inc (SBT) Tops Q1 EPS by 3c

Sterling Bancorp Inc (NASDAQ: SBT) reported Q1 EPS of $0.05, $0.03 better than the analyst estimate of $0.02.

First Quarter Highlights

Net income of $2.3 million, or $0.05 per diluted share
Net interest margin of 2.45%
Non-interest expense of $21.3 million, including $8.8 million of professional fees
Recovery for loan losses of $0.7 million; ratio of allowance for loan losses to total loans held for investment of 2.92%
Shareholders’ equity of $321.9 million
Bank capital ratios continue to be in excess of minimum ratios required to be considered “well-capitalized” with a leverage ratio of 9.60%, a total risk-based capital ratio of 22.66% and a common equity tier one ratio of 21.37%
The Company’s consolidated leverage ratio of 8.34%, total risk-based capital ratio of 23.52% and common equity tier one ratio of 18.48% continue to exceed minimum regulatory capital requirements
Total deposits of $2.889 billion
Total loans held for investment of $2.461 billion
Total loan originations of $46.9 million
Nonperforming loans and troubled debt restructurings were $91.2 million (or 3.71% of total loans held for investment) compared to $94.7 million (or 3.78% of total loans held for investment) at December 31, 2020

The Company reported net income of $2.3 million, or $0.05 per diluted share, for the quarter ended March 31, 2021, compared to net loss of $11.7 million, or $(0.23) per diluted share, for the quarter ended December 31, 2020.

Thomas M. O’Brien, Chairman, President, and Chief Executive Officer commented on the Company’s results, “We begin 2021 still facing some legacy headwinds including previously disclosed investigations. There has been some recent activity in that area which mostly centers around individuals who are no longer with Sterling. We anticipate that in the coming months we will see additional such activity, and, in all such cases, the Company continues to offer its full cooperation to the governmental authorities. We will continue to experience the impact of these conditions through elevated expenses for various professional services. Notwithstanding the foregoing, the Company is making meaningful progress in remediating the many regulatory and internal control challenges that it has faced. I anticipate continued progress throughout the remainder of 2021 in each of the key areas of concern.”

Mr. O’Brien said, “Litigation is always time-consuming and expensive. The final settlement agreement represents a favorable conclusion to the securities action and puts one more impediment into the rearview mirror.”

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

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