Sterling Bancorp(US:SBT)2024-08-08 14:36Financial Performance - Net income for the three months ended June 30, 2024, was $1.3 million, down from $2.5 million for the same period in 2023, primarily due to a decline in net interest income of $1.8 million and non-interest income of $1.5 million[111]. - Net income for the three months ended June 30, 2024, was $1.3 million, a decrease from $2.5 million for the same period in 2023[161]. - The company recorded an income tax expense of $0.6 million for the three months ended June 30, 2024, with an effective tax rate of 33%[182]. Asset and Loan Portfolio - Total assets slightly declined during the first six months of 2024, with cash and debt securities increasing to offset a decrease in loans, while deposit levels remained generally unchanged[110]. - Residential loans totaled $972.3 million at June 30, 2024, a decrease of $113.5 million, or 10%, from $1.1 billion at December 31, 2023, including loan payoffs prior to maturity of $87.1 million[116]. - The company’s total loans amounted to $1.26 billion at June 30, 2024, down from $1.35 billion at December 31, 2023[117]. - Commercial real estate loans totaled $277.3 million at June 30, 2024, an increase of $40.3 million (17%) from $236.9 million (18%) at December 31, 2023[120]. - The company discontinued originating residential real estate loans in early 2023, with no new loans added to the portfolio during the six months ended June 30, 2024[120]. - The construction loan portfolio decreased to $5.1 million at June 30, 2024, from $10.4 million at December 31, 2023, due to matured loans being paid in full[122]. - Total loans amounted to $1,264.2 million as of June 30, 2024, down from $1,349.0 million at the end of 2023[146]. Nonperforming Assets and Credit Quality - Nonperforming assets increased to $12.2 million, or 0.51% of total assets, at June 30, 2024, compared to $9.0 million, or 0.37% of total assets, at December 31, 2023[113]. - Total nonperforming loans increased to $12.2 million, primarily due to $4.1 million in residential loans added to nonaccrual status[132]. - The ratio of nonaccrual loans to total loans increased to 0.87% at June 30, 2024, up from 0.66% at December 31, 2023[132]. - Total loans past due increased by $8.9 million, or 32%, from $27.9 million at December 31, 2023, to $36.8 million at June 30, 2024[135]. - The allowance for credit losses decreased to $27.6 million at June 30, 2024, from $29.3 million at the beginning of the period[141]. - The allowance for credit losses at June 30, 2024, was $27.6 million, or 2.18% of total loans held for investment, unchanged from December 31, 2023[146]. Interest Income and Expense - Net interest income for the three months ended June 30, 2024, was $14.4 million, a decrease of $1.8 million, or 11%, from $16.2 million for the same period in 2023[168]. - Interest income increased to $33.9 million for the three months ended June 30, 2024, up $2.3 million, or 7%, compared to $31.6 million for the same period in 2023[169]. - Interest expense rose to $19.5 million for the three months ended June 30, 2024, an increase of $4.1 million, or 27%, from $15.4 million for the same period in 2023[170]. - Net interest margin decreased to 2.44% for the three months ended June 30, 2024, down 20 basis points from 2.64% for the same period in 2023[171]. - For the six months ended June 30, 2024, net interest income was $29.3 million, a decrease of $4.5 million, or 13%, from the same period in 2023[172]. - Interest expense for the six months ended June 30, 2024, was $37.8 million, compared to $27.1 million for the same period in 2023[173]. Deposits and Equity - Total deposits were $2.0 billion as of June 30, 2024, an increase of $9.5 million from December 31, 2023[157]. - Time deposits increased by $32.0 million, or 4%, while money market, savings, and NOW deposits decreased by $19.4 million, or 2%[157]. - Total shareholders' equity was $328.9 million at June 30, 2024, compared to $327.7 million at December 31, 2023[162]. - Estimated uninsured deposits were $443.5 million, or approximately 22% of total deposits, at June 30, 2024[158]. Regulatory Compliance and Capital - The company and the bank met all regulatory capital requirements as of June 30, 2024, with leverage capital ratios of 14.26% and 13.81%, respectively[193]. - The Tier 1 capital to average total assets ratios remained above the capital ratio requirements to be considered well capitalized under applicable regulations[113]. Non-Interest Income and Expenses - Non-interest income was $0.4 million for the three months ended June 30, 2024, a decrease of $1.5 million from the same period in 2023, primarily due to a prior gain on loan sales[176]. - Total non-interest expense decreased to $14.9 million for the three months ended June 30, 2024, down $2.4 million from $17.3 million for the same period in 2023, mainly due to lower salaries and professional fees[178]. - Professional fees decreased to $2.1 million for the three months ended June 30, 2024, down $1.4 million from the same period in 2023, due to resolved government investigations[178]. - Non-interest expense for the six months ended June 30, 2024, was $30.3 million, a decrease of $4.9 million compared to the same period in 2023[180].