Sterling Bancorp(SBT) - 2024 Q1 - Quarterly Results

Financial Performance - The Company reported a net loss of $(0.2) million, or $(0.00) per diluted share, for Q1 2024, compared to net income of $5.1 million, or $0.10 per diluted share, for Q4 2023[4]. - Net income for the three months ended March 31, 2024, was a loss of $197,000 compared to a profit of $5,063,000 in the previous quarter[25]. - Return on average assets was (0.03)% compared to 0.83% in the previous quarter, showing a decline in profitability[25]. Assets and Liabilities - Total assets remained stable at $2.4 billion as of March 31, 2024, consistent with December 31, 2023[7]. - Total assets remained relatively stable at $2,414,555,000, a slight decrease from $2,416,003,000 in the previous quarter[26]. - Total deposits were $2.0 billion as of March 31, 2024, unchanged from December 31, 2023, with time deposits increasing by $27.8 million, or 3%[10]. - Total deposits increased slightly to $2,005,855,000 from $2,003,986,000 in the previous quarter, marking a 0% change[26]. - Total loans held for investment decreased by 3% to $1,303,279 thousand compared to $1,348,972 thousand in the previous quarter[29]. Income and Expenses - The net interest margin was 2.52% for both Q1 2024 and Q4 2023, with net interest income decreasing to $14.9 million from $15.1 million[15]. - Net interest income decreased to $14,934,000 from $15,105,000 in the previous quarter, a decline of 1%[27]. - Non-interest expense increased by $2.6 million, or 20%, to $15.4 million in Q1 2024, primarily due to a rise in professional fees[17]. - Non-interest expense rose significantly to $15,392,000, up 20% from $12,830,000 in the previous quarter[27]. - The efficiency ratio worsened to 101.71% from 83.76% in the previous quarter, indicating increased operational costs relative to income[25]. Credit Quality - The provision for credit losses was $41 thousand, with the allowance for credit losses at $29.3 million, or 2.24% of total loans[13]. - Nonperforming loans totaled $9.3 million, or 0.72% of total loans and 0.39% of total assets as of March 31, 2024[8]. - Nonperforming loans increased to $9,348,000 from $8,973,000 in the previous quarter, reflecting a slight deterioration in asset quality[25]. - The allowance for credit losses to total loans ratio was 2.24%, up from 2.18% in the previous quarter, indicating a cautious approach to credit risk[25]. - The provision for credit losses showed a recovery of $147 thousand for the three months ended March 31, 2024[30]. Loan Portfolio - Total gross loans decreased by $45.7 million, or 3%, to $1.3 billion at March 31, 2024, from December 31, 2023[9]. - Residential real estate loans decreased by 4% to $1,040,464 thousand compared to $1,085,776 thousand in the previous quarter[29]. - Nonaccrual loans increased to $9,318 thousand, representing 0.71% of total loans outstanding[32]. Deposits - Total deposits remained stable at $2,005,855 thousand, a slight increase of 0% from $2,003,986 thousand in the previous quarter[31]. - Time deposits increased by 3% to $900,996 thousand compared to $873,220 thousand in the previous quarter[31].