Sterling Bancorp(US:SBT)2025-03-14 15:54Financial Performance - The company reported a 12-month net interest income of $59,265,000 under a zero rate change scenario, which is a decrease from $61,652,000 in 2023[449]. - Net interest income decreased to $56,470 thousand in 2024 from $64,959 thousand in 2023, a decline of 13.73%[473]. - Net income for 2024 was $2,138 thousand, down from $7,413 thousand in 2023, reflecting a decrease of 71.16%[473]. - Comprehensive income for 2024 was $3,847 thousand, down from $11,714 thousand in 2023, a decrease of 67.16%[476]. - The company reported a net income of $2,138 thousand for the year ended December 31, 2024, compared to $7,413 thousand in 2023 and a net loss of $14,194 thousand in 2022[483]. Asset and Equity Changes - Total assets increased to $2,436,512 thousand in 2024 from $2,416,003 thousand in 2023, representing a growth of 0.84%[472]. - The total shareholders' equity increased to $333,963 thousand by December 31, 2024, up from $327,723 thousand in 2023, reflecting a growth of approximately 0.7%[480]. - Cash and due from banks increased to $878,181 thousand at the end of 2024, compared to $577,967 thousand at the end of 2023, representing a growth of approximately 52.1%[483]. Interest Income and Expenses - Interest on deposits increased to $78,298 thousand in 2024 from $57,109 thousand in 2023, an increase of 37.06%[473]. - Non-interest income decreased significantly to $1,057 thousand in 2024 from $2,786 thousand in 2023, a drop of 62.06%[473]. - Total non-interest expense decreased to $61,813 thousand in 2024 from $65,710 thousand in 2023, a reduction of 5.45%[473]. Credit Quality and Losses - Provision for credit losses showed a recovery of $8,536 thousand in 2024 compared to a recovery of $8,527 thousand in 2023, indicating stability in credit quality[473]. - The allowance for credit losses for loans was $20,805 thousand at the end of 2024, down from $29,404 thousand in 2023, a reduction of 29.25%[472]. - Nonaccrual loans increased from $8,942,000 in 2023 to $14,558,000 in 2024, with residential loans contributing $11,601,000 to this increase[608]. - The total past due loans amounted to $14,584,000 in 2024, with $6,078,000 past due by 30-59 days and $1,011,000 past due by 60-89 days[610]. Loan Portfolio and Concentration - The company’s loan portfolio is primarily concentrated in California, with approximately 75% of gross loans originated in the state as of December 31, 2024[504]. - Residential real estate loans accounted for 73% of total gross loans as of December 31, 2024, down from 80% in 2023[504]. - The total amortized cost basis for commercial real estate loans was $296,457,000, with $110,055,000 rated as pass[618]. Regulatory and Operational Risks - The company is exposed to liquidity risks due to potential shareholder litigation and regulatory approvals related to ongoing transactions[17]. - The company faces credit risks associated with lending activities, particularly in residential real estate loans concentrated in California[17]. - The company’s operational risks include increased reliance on technology and the potential for cybersecurity breaches[20]. Future Plans and Transactions - The company plans to sell all shares of its bank subsidiary to EverBank for a fixed purchase price of $261,000 thousand, with the transaction expected to close following regulatory approvals[489]. - The company plans to dissolve following the completion of the sale of its bank subsidiary, with intentions to distribute remaining cash to shareholders[490]. - The Company received shareholder approval for the Stock Purchase Agreement and the Transaction, expected to close early in Q2 2025, subject to regulatory approvals[492]. Accounting and Valuation - The Company utilizes fair value measurements for certain assets and liabilities, requiring significant judgment and estimates[497]. - The Company recognizes revenue from contracts with customers when control of promised goods or services is transferred, in accordance with ASC 606[559]. - The Company evaluates mortgage servicing rights for impairment based on fair value compared to carrying amounts, with impairment recognized when necessary[545].