Sterling Bancorp, Inc. (Southfield, MI) (NASDAQ:SBT) Q4 2023 Earnings Call Transcript January 24, 2024 11:00 AM ET Company Participants Tom O'Brien - Chairman, CEO and President Karen Knott - Chief Financial Officer and Treasurer Conference Call Participants Ross Haberman - RLH Investments Operator Good morning, everyone. Thank you for joining us today to discuss Sterling Bancorp's financial results for the fourth quarter and full year ended December 31, 2023. Joining us today from Sterling's management tea ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-38290 Sterling Bancorp, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of i ...

Financial Data and Key Metrics Changes - The company reported a modest profit of $300,000 for the quarter, with a margin remaining flat at 262 basis points [18] - The allowance for credit losses ratio was maintained at 2.42%, indicating stability in credit quality [4] - Deposits and the balance sheet were relatively flat, with no significant changes aside from the redemption of subordinated debt and a settlement with the Department of Justice [4][19] Business Line Data and Key Metrics Changes - The company has disposed of over $100 million in loans, both commercial and residential, to address long-term debt issues [5] - Legal expenses for indemnified individuals amounted to $1.7 million, with additional costs related to the bank's own legal matters estimated at a couple of hundred thousand [22] Market Data and Key Metrics Changes - The company noted significant pressure in coastal markets, particularly in the office and hospitality sectors, as well as emerging issues with multifamily property loans in the Northeast due to rising cap rates and interest rates [11] - The current economic environment is characterized by high interest rates and inflation, creating challenges for the banking industry [10][20] Company Strategy and Development Direction - The company is focused on preserving capital and maintaining its strengths during uncertain times, while navigating pressures from liability pricing and potential interest rate increases [19][20] - Management anticipates continued pressure on margins and spreads if interest rates remain high, but expects some roll-off in loans and securities to be reinvested at higher rates in the future [27] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the economic environment, highlighting the challenges posed by high inflation and interest rates [10][20] - There is uncertainty regarding the timeline for government inquiries, with expectations that civil inquiries may be nearing conclusion, while criminal inquiries could extend into 2024 [26] Other Important Information - The company has exhausted its Directors and Officers (D&O) insurance during the quarter, with an expected reimbursement of $3 million to $4 million from the insurer [23] - The company does not foresee similar levels of legal expenses in future quarters, primarily due to the intensity of current government inquiries [23] Q&A Session Summary Question: Can you address some of the expenses this quarter? - Management indicated that the legal expenses were unusually high this quarter, reflecting ongoing government inquiries, but future quarters are not expected to incur similar costs [22] Question: How does a scenario of sustained high rates affect your margin? - Management acknowledged potential downward pressure on margins in the current and following quarters, but anticipated some recovery as loans and securities are reinvested at higher rates [27]

AAT Forward‐Looking Statements A HISTORY OF SUCCESS. A FUTURE OF OPPORTUNITY. American Assets Trust HISTORY OF SUCCESS (3) TOTAL REVENUE ($ IN MILLIONS) $315 $331 $367 $345 $376 $423 CAGR: +6.9% ADAM WYLL ROBERT BARTON EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER EMILY MANDIC 4 • The company's growth potential excludes any impact from future acquisitions, dispositions, equity issuances or repurchases, future debt financings or repayments. These estimates are forward‐looking and reflect management's ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-38290 (State or other jurisdiction of incorporation or organization) Michigan 38-3163775 (I.R.S. Employer Identification N ...

Sterling Bancorp, Inc. (Southfield, MI) (NASDAQ:SBT) Q2 2023 Earnings Conference Call July 26, 2023 11:00 AM ET Company Participants Tom O'Brien - Chairman, Chief Executive Officer & President Walter Bertke - Controller Conference Call Participants Operator Good morning everyone. Thank you for joining us today to discuss Sterling Bancorp's Financial Results for the Second Quarter Ended June 30th, 2023. Joining us today from Sterling's management team are Tom O'Brien, Chairman, CEO, and President; and Walter ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR (State or other jurisdiction of incorporation or organization) Michigan 38-3163775 (I.R.S. Employer Identification Number) One Towne Square, Suite 1900 Southfield, Michigan 48076 (248) 355-2400 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ...

Financial Data and Key Metrics Changes - The company reported a breakeven quarter with a slight growth in tangible book value, primarily due to improvements in the mark-to-market on held-for-sale securities [31] - Margin experienced some compression, attributed to the cost of subordinated debt, which is estimated to impact the margin by approximately 12 basis points at current rates [33][61] - Deposits were reported just under $2 billion, with a slight increase of about $25 million since the collapse of Silicon Valley Bank [35] Business Line Data and Key Metrics Changes - The company adopted the Current Expected Credit Loss (CECL) model on January 1, resulting in a $0.5 million increase to retained earnings, mainly due to the short-term nature of the construction portfolio [10] - There was a decline in overall allowance primarily due to the transfer of residential delinquent and non-accrual loans to held for sale, while an increase in commercial real estate provisions was noted due to economic forecasts [12][13] Market Data and Key Metrics Changes - The company noted that the current economic environment has led to concerns in the commercial real estate sector, prompting increased provisions in that area [13] - The management expressed concerns about the overall banking environment, referencing recent bank failures and their impact on the deposit insurance fund, which has cost between $40 billion and $50 billion [28][29] Company Strategy and Development Direction - The management outlined three main objectives: settling with the DOJ, addressing long-term delinquent loans, and tackling the expensive subordinated debt [32][33] - The company is focused on improving liquidity and reducing reliance on broker deposits, which was a significant concern when the current management took over [39] - There is an intention to clean up the balance sheet further, with expectations of potential recaptures in reserves as the company continues to address its financial position [47] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, indicating that the costs associated with legal settlements should decrease in the upcoming quarters [44][46] - There is an expectation of increased regulation in the banking sector, with a hope that it will be more forward-looking rather than reactive to past issues [41] - The management is confident in the current reserve levels and does not foresee significant additions unless there are substantial new originations [21] Other Important Information - The company has engaged an independent advisor for the sale process of non-accrual and seriously delinquent residential loans, with expectations to conclude the sale by late May [36] - The management emphasized the importance of transparency in financial reporting, opting to keep all debt securities available for sale rather than held to maturity [35] Q&A Session Summary Question: What is the yield on the loans that took a haircut? - Management estimated the yield to be in the mid-5% range, with a significant portion of those loans in non-accrual status [6] Question: Is there any appetite for capital actions like share repurchases? - Management indicated that addressing the subordinated debt is a priority, and they have sufficient liquidity to consider such actions [22][25] Question: How does the company view margin pressure with potential rate hikes? - Management acknowledged the difficulty in predicting margin trends but expressed confidence in their ability to manage the impact of rising rates [52][53] Question: What is the status of the subordinated debt? - Management confirmed that the subordinated debt is callable, and they have the option to call some or all of it at par [56][61]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-38290 Sterling Bancorp, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or ...

Start Time: 11:00 January 1, 0000 11:30 AM ET Sterling Bancorp, Inc. (Southfield, MI) (NASDAQ:SBT) Q4 2022 Earnings Conference Call January 30, 2023, 11:00 AM ET Company Participants Tom O’Brien - Chairman, President and CEO Karen Knott - EVP and CFO Conference Call Participants Ben Gerlinger - Hovde Group Ross Haberman - RLH Investments Operator Good morning, everyone. Thank you for joining us today to discuss Sterling Bancorp's Financial Results for the Fourth Quarter and Full Year ended December 31, 2022 ...