Sterling Bancorp Inc (SBT) Tops Q3 EPS by 1c

Sterling Bancorp Inc (NASDAQ: SBT) reported Q3 EPS of $0.28, $0.01 better than the analyst estimate of $0.27.

Q3 2019 Highlights

• Net income of $13.9 million, up from $13.4 million in Q2 2019, and down from $15.7 million in Q3 2018
• Fully diluted EPS of $0.28, up from $0.26 for Q2 2019, and down from $0.30 for Q3 2018
• Third quarter annualized ROAA of 1.67% and annualized ROATCE of 15.98%
• Revenue, net of interest expense, of $33.2 million, up from $32.8 million in Q2 2019, and down from $35.0 million in Q3 2018
• Total loan originations of $282.1 million, down from $356.5 million in Q2 2019 and $419.2 million in Q3 2018
• Total gross loans, including loans held for investment and loans held for sale of $2.93 billion, down 1% from Q2 2019, and flat from Q3 2018
• Prior to loan sales, total gross loans increased by 2% from Q2 2019
• Total deposits of $2.57 billion, up 1% from Q2 2019 and 7% increase from Q3 2018
• Net interest margin of 3.70%, compared to 3.84% in Q2 2019 and 3.95% in Q3 2018
• Repurchased approximately 0.4 million shares of common stock at an average price of $9.89 during the quarter

“Overall, our financial results for the third quarter were in line with our expectations,” said Gary Judd, Chairman and CEO of Sterling Bancorp. “We continue to generate top quartile returns, as our annualized return on average assets was 1.67% and our annualized return on tangible common equity was 15.98%. Our moderately higher EPS for the quarter was driven by higher non-interest income and well-managed expenses.

“During the quarter, net interest margin was negatively impacted by our increased liquidity and lower yields on our loan portfolio. In addition, our loan production was lower during the quarter as we maintained our underwriting and pricing discipline in a very competitive lending market. Despite this pressure, our total loans grew modestly during the quarter, prior to our loan sales.

“We remain optimistic in our outlook as we end the year. We are focused on converting our healthy loan pipeline into closed loans while maintaining solid credit quality and reducing deposit costs. While we will continue to opportunistically utilize loan sales to diversify our revenue going forward, we may significantly reduce these sales in the fourth quarter and retain the majority of our new loan production on our balance sheet. Therefore, we expect to resume our loan growth and achieve net interest margin stability, which should translate into continued strong returns for our shareholders,” Mr. Judd concluded.

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

You May Also Be Interested In

• Gilead Sciences (GILD) Misses Q1 EPS by 288c
• Alphabet (GOOGL) soars 16% on Q1 results beat, first-ever dividend
• Robert Half International (RHI) Reports In-Line Q1 EPS