Q4 2017 Summary

• Total portfolio loans of $2.59 billion, a 31% year-over-year increase
• Total deposits of $2.25 billion, a 39% year-over-year increase
• Net income of $6.5 million, or $0.13 diluted EPS, including a non-cash charge of $3.3 million recorded to tax expense relating to the recently enacted tax reform
• Net interest margin of 3.97%
• Successfully completed initial public offering with a total offering size of over $200 million, with net proceeds of over $85 million to the Company

SOUTHFIELD, Mich.--(BUSINESS WIRE)--Jan. 30, 2018-- Sterling Bancorp, Inc. (NASDAQ: SBT), the holding company of Sterling Bankand Trust, F.S.B., today reported unaudited financial results for its fourth quarter and full year ended December 31, 2017.

For the three months ended December 31, 2017, net income totaled $6.5 million, or $0.13 per diluted share, based on 49.0 million weighted average diluted shares outstanding, and included a $3.3 million, or $0.07 per diluted share, tax expense related to a revaluation of the Company’s net deferred tax assets as a result of the decrease in the federal corporate tax rate. This compares to third quarter 2017 net income of $12.1 million, or $0.27 per diluted share, based on 45.3 million weighted average diluted shares outstanding. For the fourth quarter of 2016, net income totaled $6.1 million, or $0.14 per diluted share, based on 45.3 million weighted average diluted shares outstanding.

For the full year, net income increased to $38.0 million, or $0.82 per diluted share, based on 46.2 million weighted average diluted shares outstanding, and included a $3.3 million, or $0.07 per diluted share, tax expense related to the revaluation of the Company’s net deferred tax assets. This compares with 2016 net income of $33.2 million, or $0.73 per diluted share, based on 45.3 million weighted average diluted shares outstanding.

“2017 was a landmark year for our company, as we completed our initial public offering and generated record net income, driven by continued strong growth in both loans and deposits, combined with our very efficient business model,” said Gary Judd, Chairman and CEO of Sterling Bancorp. “We continued our positive momentum in the fourth quarter, generating strong loan growth, pristine credit quality and an excellent efficiency ratio. As a result, the income that we generated from our spread lending business in the fourth quarter was at its highest quarterly level in the company’s history.

“In 2018, we plan to continue executing our strategy of expanding our franchise through de novo branch openings and new loan production offices. As a relationship bank, we remain committed to offering loan products that our customers value, while maintaining our strong credit culture and discipline. We are investing in the business to support our growth plans and further expansion in the attractive markets that we serve, all with a focus on driving improved profitability. I would like to thank all of the new shareholders who participated in our initial public offering. We look forward to working hard on your behalf to increase the value of your investment in Sterling Bancorp,” concluded Mr. Judd.

Financial Highlights

(dollars in thousands, except per share data)		At or for the Three Months Ended
			12/31/2017					9/30/2017					12/31/2016
Net income		$	6,531				$	12,092				$	6,127
Diluted earnings per share		$	0.13				$	0.27				$	0.14
Net interest income before provision for loan losses		$	26,915				$	25,495				$	20,385
Net interest margin			3.97	%				4.04	%				4.01	%
Noninterest income		$	2,826				$	6,151				$	1,176
Noninterest expense		$	11,943				$	10,333				$	9,025
Loans held for investment, net		$	2,594,358				$	2,366,193				$	1,982,439
Deposits		$	2,245,110				$	2,099,462				$	1,615,145
Nonperforming loans		$	783				$	897				$	565
Allowance for loan losses to total loans			0.71	%				0.72	%				0.74	%
Allowance for loan losses to non-performing loans			2,357	%				1,916	%				2,623	%
Provision for loan losses		$	600				$	900				$	1,808
Net charge offs (recoveries)		$	(668	)			$	(44	)			$	(307	)
ROA			0.94	%				1.87	%				1.18	%
ROE			11.46	%				26.80	%				15.21	%
Efficiency ratio			40.2	%				32.7	%				41.9	%

Operating Results for the Fourth Quarter 2017

Net Interest Income

Net interest income for the fourth quarter of 2017 was $26.9 million, an increase of 5.6% from $25.5 million for the third quarter of 2017. The increase in net interest income from the third quarter was primarily attributable to a $194 million increase in average interest earning assets, partially offset by the effects of a 7 basis point decrease in the net interest margin.

Relative to the fourth quarter of 2016, net interest income increased 32% from $20.4 million. The increase in net interest income from the fourth quarter of 2016 was primarily attributable to a $683 million increase in average interest earning assets, partially offset by the effects of a 4 basis point decrease in the net interest margin.

Net Interest Margin

Net interest margin for the fourth quarter of 2017 was 3.97%, compared to 4.04% for the third quarter of 2017. The decrease in net interest margin was primarily attributable to a 14 basis point increase in the average cost of deposits.

Relative to the fourth quarter of 2016, the net interest margin decreased from 4.01%, primarily due to a 24 basis point increase in the average cost of deposits, partially offset by a 13 basis point increase in the average yield on interest earning assets.

Noninterest Income

Noninterest income for the fourth quarter of 2017 was $2.8 million, a decrease from $6.2 million for the third quarter of 2017. The decrease was primarily the result of a $3.3 million decline in the gain on sale of portfolio loans due to a decrease in the amount of residential mortgages sold in the secondary market compared to the prior period.

Noninterest income increased from $1.2 million in the fourth quarter of 2016, primarily as a result of a $0.6 million increase in the gain on sale of portfolio loans due to an increase in the amount of residential mortgages sold in the secondary market and a $0.9 million loss on the sale of an investment in 2016.

Noninterest Expense

Noninterest expense for the fourth quarter of 2017 was $11.9 million, compared with $10.3 million for the third quarter of 2017. The fourth quarter expenses included $0.2 million of severance expense, $0.2 million of expenses related to the initial public offering and $0.1 million in expenses following an annual reassessment of the Company’s BOLI liabilities.

Relative to the fourth quarter of 2016, noninterest expense increased from $9.0 million. The increase was primarily due to an increase in personnel expenses and occupancy and equipment costs required to support the growth in our operations.

The Company’s operating efficiency ratio was 40.2% in the fourth quarter of 2017, compared with 32.7% in the third quarter of 2017 and 41.9% in the fourth quarter of 2016.

Income Taxes

The effective tax rate for the three and twelve months ended December 31, 2017 was 62% and 46%, respectively, compared with 43% and 41% for the three and twelve months ended December 31, 2016, respectively.

On December 22, 2017, “H.R.1”, formerly known as the “Tax Cuts and Jobs Act”, was signed into law. Among other items, H.R.1 reduces the federal corporate tax rate to 21% effective January 1, 2018. As a result, the Company concluded that the reduction in the federal corporate tax rate required the revaluation of the Company’s net deferred tax assets. The Company’s net deferred tax assets represent expected corporate tax benefits anticipated to be realized in the future. The reduction in the federal corporate tax rate reduces these benefits. The Company performed an analysis and determined that the value of the deferred tax assets had declined by $3.3 million. To reflect the decline in the value of the deferred tax assets, the Company recorded additional tax expense of $3.3 million during the fourth quarter of 2017.

As a result of the newly enacted tax legislation, the Company estimates that its effective tax rate for 2018 will be in the range of 28% to 30%. The actual annual effective tax rate will vary depending upon tax-advantaged income and available tax credits.

Loan Portfolio

Total loans held for investment, net of allowance for loan losses, were $2.59 billion at December 31, 2017, compared with $2.37 billion at September 30, 2017. The increase was primarily attributable to a $220 million increase in the residential mortgage portfolio.

During the fourth quarter of 2017, the Company originated $520 million in loans, which included $463 million in residential mortgage loans, $12 million in commercial real estate loans, $40 million in construction loans and $5 million commercial and industrial loans.

Deposits

Total deposits were $2.25 billion at December 31, 2017, compared with $2.10 billion at September 30, 2017. The increase was primarily attributable to a $109 million increase in Savings, NOW and money market deposits.

Credit Quality

Nonperforming assets totaled $3.8 million, or 0.13% of total assets, at December 31, 2017, compared with $3.9 million, or 0.15% of total assets, at September 30, 2017.

Net charge-offs (recoveries) for the fourth quarter of 2017 were $(668,000), or (0.03)% of average loans on an annualized basis, consisting of $19,000 of gross charge-offs and $687,000 of recoveries.

The Company recorded a provision for loan losses of $600,000 for the fourth quarter of 2017, primarily reflecting the growth in the loan portfolio.

The Company’s allowance for loan losses was 0.71% of total loans and 2,357% of nonperforming loans at December 31, 2017, compared with 0.72% and 1,916%, respectively, at September 30, 2017.

Capital

At December 31, 2017, the Bank exceeded all regulatory capital requirements under Basel III and was considered to be a ‘‘well-capitalized’’ financial institution, as summarized in the following tables:

							Well Capitalized			Company Actual at December 31, 2017
					Total adjusted capital to risk-weighted assets			N/A			20.28	%
					Tier 1 (core) capital to risk-weighted assets			N/A			15.53	%
					Tier 1 (core) capital to adjusted tangible assets			N/A			9.83	%
					Common Tier 1 (CET 1)			N/A			15.53	%
							Well Capitalized			Sterling Bank Actual at December 31, 2017
					Total adjusted capital to risk-weighted assets			10.00	%		14.76	%
					Tier 1 (core) capital to risk-weighted assets			8.00	%		13.71	%
					Tier 1 (core) capital to adjusted tangible assets			5.00	%		8.68	%
					Common Tier 1 (CET 1)			6.50	%		13.71	%

Conference Call and Webcast

Management will host a conference call today at 5:00 p.m. Eastern Time to discuss the Company's financial results. The conference call number for U.S. participants is (877) 270-2148 and the conference call number for participants outside the U.S. is (412) 902-6510. The conference ID number for both conference call numbers is 10116614. Additionally, interested parties can listen to a live webcast of the call in the "Investor Relations" section of the Company's website at www.sterlingbank.com. An archived version of the webcast will be available in the same location shortly after the live call has ended.

A replay of the conference call may be accessed through February 13, 2018 by dialing (877) 344-7529, using conference ID number 10116614.

About Sterling Bancorp, Inc.

Sterling Bancorp, Inc. is a unitary thrift holding company. Its wholly owned subsidiary, Sterling Bank and Trust, F.S.B., has primary branch operations in San Francisco and Los Angeles, California and New York City, and a loan production office in Seattle, Washington. Sterling offers a broad range of loan products to the residential and commercial markets, as well as retail and business banking services. Sterling also has an operations center and a branch in Southfield, Michigan. For additional information, please visit the Company’s website at www.sterlingbank.com.

Non-GAAP Financial Measures

Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with accounting principles generally accepted in the United States (“GAAP”). These non-GAAP financial measures include “Average Tangible Common Equity,” and “Return on Average Tangible Common Equity,” each of which are common metrics in the banking industry. Our management uses these non-GAAP financial measures to assess the Company’s capital strength and business performance. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures. Not all companies use the same calculation of these measures; therefore this presentation may not be comparable to other similarly titled measures as presented by other companies. For further information see “Reconciliation on Non-GAAP Financial Measures” in the Financial Data section that follows.

Forward-Looking Statements

Readers should note that in addition to the historical information contained herein, this press release includes "forward-looking statements," within the meeting of the federal securities laws, including but not limited to statements about the Company’s expected loan production, operating expenses and future earnings levels. These statements are subject to many risks and uncertainties, including changes in interest rates and other general economic, business and political conditions, including changes in the financial markets; changes in business plans as circumstances warrant; and other risks detailed from time to time in filings made by the Company with the Securities and Exchange Commission. Readers should note that the forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "will," "propose," "may," "plan," "seek," "expect," "intend," "estimate," "anticipate," "believe" or "continue," or similar terminology. Any forward-looking statements presented herein are made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

Sterling Bancorp, Inc.
Condensed Consolidated Balance Sheets
Unaudited (dollars in thousands)
Assets		12/31/2017				9/30/2017			% change				12/31/2016				% change
Cash and due from banks		$ 40,147				$ 36,191			11		%		$ 22,124				81	%
Investment securities available for sale, at fair value		126,848				109,944			15		%		75,606				68	%
Investment securities, restricted stock, at cost		22,950				22,950			0		%		18,360				25	%
Mortgage loans held for sale		112,866				34,312			229		%		4,714				2294	%
Loans, net of allowance for loan losses of $18,457, $17,189 and $14,822		2,594,358				2,366,193			10		%		1,982,439				31	%
Accrued interest receivable		11,493				10,115			14		%		8,169				41	%
Leasehold improvements and equipment, net		7,043				6,737			5		%		5,855				20	%
Cash surrender value of bank owned life insurance		30,680				30,518			1		%		30,028				2	%
Deferred tax asset		6,847				9,639			(29		)%		9,516				(28	)%
Other assets		8,726				9,321			(6		)%		6,790				29	%
Total assets		$ 2,961,958				$ 2,635,920			12		%		$ 2,163,601				37	%
Liabilities
Noninterest-bearing deposits		$ 73,682				$ 70,572			4		%		$ 59,231				24	%
Interest-bearing deposits		2,171,428				2,028,890			7		%		1,555,914				40	%
Total deposits		2,245,110				2,099,462			7		%		1,615,145				39	%
Federal Home Loan Bank borrowings		338,000				234,283			44		%		308,198				10	%
Subordinated notes, net		64,889				64,841			0		%		49,338				32	%
Accrued expenses and other liabilities		40,661				52,862			(23		)%		28,648				42	%
Total liabilities		2,688,660				2,451,448			10		%		2,001,329				34	%
Shareholders’ Equity
Common stock, voting, authorized 500,000,000 shares at December 31, 2017 and 490,000,000 at September 30, 2017 and December 31, 2016, issued and outstanding 52,963,308, 45,271,000 and 45,271,000 shares at December 31, 2017, September 30, 2017 and December 31,2016, respectively.		111,238				22,863			387		%		22,863				387	%
Common stock, non-voting, authorized 10,000,000 shares, issued and outstanding 5,072,000 shares at September 30, 2017 and December 31, 2016, respectively.		-				2,885			-				2,885				-
Additional paid-in capital		12,416				12,416			0		%		15,118				(18	)%
Retained earnings		149,788				146,339			2		%		121,446				23	%
Accumulated other comprehensive loss		(144		)		(31	)		N/M				(40		)		N/M
Total shareholders’ equity		273,298				184,472			48		%		162,272				68	%
Total liabilities and shareholders’ equity		$ 2,961,958				$ 2,635,920			12		%		$ 2,163,601				37	%
N/M- not meaningful

Sterling Bancorp, Inc.
Condensed Consolidated Statements of Income
Unaudited (dollars in thousands, except per share amounts)
		Three Months Ended																Year Ended
		12/31/2017			9/30/2017			% change			12/31/2016				% change			12/31/2017			12/31/2016				% change
Interest Income:
Interest and fees on loans		$	34,095		$	31,725		8	%		$	25,034			36	%		$	120,701		$	89,566			35	%
Interest and dividends on investment securities			588			501		17	%			328			79	%			1,890			1,180			60	%
Other interest			54			55		(2	)%			12			350	%			157			57			175	%
Total interest income			34,737			32,281		8	%			25,374			37	%			122,748			90,803			35	%
Interest Expense:
Interest on deposits			5,884			4,375		34	%			3,295			79	%			17,570			11,428			54	%
Interest on Federal Home Loan Bank borrowings			751			1,344		(44	)%			787			(5	)%			3,795			2,439			56	%
Interest on subordinated notes and other			1,187			1,067		11	%			907			31	%			4,070			1,978			106	%
Total interest expense			7,822			6,786		15	%			4,989			57	%			25,435			15,845			61	%
Net interest income			26,915			25,495		6	%			20,385			32	%			97,313			74,958			30	%
Provision for loan losses			600			900		(33	)%			1,808			(67	)%			2,700			1,280			111	%
Net interest income after provision for loan losses			26,315			24,595		7	%			18,577			42	%			94,613			73,678			28	%
Total non-interest income
Service charges and fees			629			713		(12	)%			409			54	%			2,341			1,341			75	%
Investment management and advisory fees			603			594		2	%			540			12	%			2,338			3,209			(27	)%
Net gains (losses) on sale of Investment securities			46			-		N/M				(898	)		(105	)%			119			(898	)		(113	)%
Gain on sale of loans			868			4,377		(80	)%			311			179	%			9,681			9,557			1	%
Other income			680			467		46	%			814			(16	)%			2,117			2,172			(3	)%
Total non-interest income			2,826			6,151		(54	)%			1,176			140	%			16,596			15,381			8	%
Non-interest expense
Salaries and employee benefits			6,880			6,211		11	%			5,069			36	%			23,778			17,812			33	%
Occupancy and equipment			1,632			1,549		5	%			1,189			37	%			5,986			4,891			22	%
Professional fees			665			344		94	%			511			30	%			1,673			1,466			14	%
Advertising and marketing			370			233		59	%			375			(1	)%			1,025			1,449			(29	)%
FDIC assessments			455			335		36	%			292			56	%			1,296			990			31	%
Data processing			292			281		4	%			244			20	%			1,059			986			7	%
Other			1,649			1,380		20	%			1,345			23	%			5,944			5,016			19	%
Total non-interest expense			11,943			10,333		16	%			9,025			32	%			40,761			32,610			25	%
Income before income taxes			17,198			20,413		(16	)%			10,728			60	%			70,448			56,449			25	%
Income tax expense			10,667			8,321		28	%			4,601			132	%			32,471			23,215			40	%
Net income		$	6,531		$	12,092		(46	)%		$	6,127			7	%		$	37,977		$	33,234			14	%
Income per share, basic and diluted		$	0.13		$	0.27					$	0.14						$	0.82		$	0.73
Weighted average common shares outstanding, basic and diluted			49,034			45,271						45,271							46,219			45,271

N/M- not meaningful

Sterling Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)
		As of and for the Three Months Ended											As of and for the Year Ended
		12/31/2017			9/30/2017			12/31/2016					12/31/2017			12/31/2016
Performance Ratios:
Return on average assets		0.94	%		1.87	%		1.18	%				1.54	%		1.73	%
Return on average shareholders' equity		11.46	%		26.80	%		15.21	%				20.25	%		22.06	%
Return on average tangible common equity		11.50	%		27.10	%		15.35	%				20.41	%		22.29	%
Yield on earning assets		5.12	%		5.12	%		4.99	%				5.11	%		4.86	%
Cost of average interest-bearing liabilities		1.28	%		1.18	%		1.08	%				1.18	%		0.94	%
Net interest spread		3.84	%		3.94	%		3.91	%				3.93	%		3.92	%
Net interest margin		3.97	%		4.04	%		4.01	%				4.05	%		4.01	%
Efficiency ratio(1)		40.2	%		32.7	%		41.9	%				35.8	%		36.1	%

(1) Efficiency Ratio is computed as the ratio of non-interest expense divided by the sum of net interest margin and non-interest income.

Sterling Bancorp, Inc.
Average Balance Sheet and Net Interest Income
Unaudited (dollars in thousands)
		For the Three Months Ended
		12/31/2017									9/30/2017									12/31/2016
(Dollars in thousands)		Average Balance			Interest			Average Yield/ Rate			Average Balance			Interest			Average Yield/ Rate			Average Balance			Interest			Average Yield/ Rate
Interest earning assets
Loans (1)		$	2,563,319		$	34,095		5.32	%		$	2,387,709		$	31,725		5.31	%		$	1,934,325		$	25,034		5.18	%
Securities, includes restricted stock			132,869			588		1.77	%			116,400			501		1.72	%			88,278			328		1.49	%
Other interest earning assets			18,597			54		1.16	%			17,225			55		1.28	%			9,636			12		0.50	%
Total interest earning assets		$	2,714,785		$	34,737		5.12	%		$	2,521,333		$	32,281		5.12	%		$	2,032,239		$	25,374		4.99	%
Interest-bearing liabilities
Savings, NOW, Money Markets		$	1,457,137		$	3,653		0.99	%		$	1,382,085		$	3,109		0.89	%		$	1,069,411		$	2,181		0.81	%
Time deposits			662,822			2,231		1.34	%			433,345			1,266		1.16	%			442,325			1,114		1.00	%
Total deposits			2,119,959			5,884		1.10	%			1,815,430			4,375		0.96	%			1,511,736			3,295		0.86	%
FHLB borrowings			244,263			751		1.20	%			412,796			1,344		1.27	%			277,052			787		1.11	%
Subordinated debt			64,871			1,187		7.32	%			57,462			1,067		7.43	%			49,345			907		7.35	%
Total borrowings			309,134			1,938		2.45	%			470,258			2,411		2.01	%			326,397			1,694		2.03	%
Total interest-bearing liabilities		$	2,429,093			7,822		1.28	%		$	2,285,688			6,786		1.18	%		$	1,838,133			4,989		1.08	%
Net interest income and spread (2)					$	26,915		3.84	%					$	25,495		3.94	%					$	20,385		3.91	%
Net interest margin								3.97	%								4.04	%								4.01	%

(1) Nonaccrual loans are included in the respective average loan balances. Income, if any, on such loans is recognized on a cash basis.
(2) Interest income does not include taxable equivalent adjustments.

Sterling Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)
Loan Composition		12/31/2017				9/30/2017				% Change			12/31/2016				% Change
Construction		$	192,319			$	181,932			6	%		$	145,965			32	%
Residential real estate mortgages			2,132,641				1,911,393			12	%			1,613,766			32	%
Commercial real estate mortgages			247,076				242,799			2	%			200,754			23	%
Commercial and industrial loans, lines of credit			40,749				47,193			(14	)%			36,713			11	%
Other consumer loans			29				66			(56	)%			63			(54	)%
Total loans held for investment			2,612,815				2,383,383			10	%			1,997,261			31	%
Less: allowance for loan losses			(18,457	)			(17,189	)		7	%			(14,822	)		25	%
Loans, net		$	2,594,358			$	2,366,193			10	%		$	1,982,439			31	%
Mortgage loans held for sale		$	112,866			$	34,312			N/M			$	4,714			N/M
Total loans		$	2,725,681			$	2,417,695			13	%		$	2,001,975			36	%

N/M- not meaningful

Deposit Composition					12/31/2017			9/30/2017			% change			12/31/2016			% change
Noninterest bearing demand deposits					$	73,682		$	70,572		4	%		$	59,231		24	%
Savings, NOW and Money Market						1,507,956			1,398,917		8	%			1,119,919		35	%
Time deposits						663,472			629,973		5	%			435,995		52	%
Total deposit balances					$	2,245,110		$	2,099,462		7	%		$	1,615,145		39	%

Sterling Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)
		As of and for the Three Months Ended
		12/31/2017		9/30/2017		12/31/2016
Capital Ratios
Regulatory and Other Capital Ratios—
Consolidated:
Tier 1 (core) capital to risk-weighted assets		15.53%		11.49%		12.22%
Tier 1 (core) capital to adjusted tangible assets		9.83%		7.12%		7.74%
Common Tier 1 (CET 1)		15.53%		11.49%		12.22%
Total adjusted capital to risk-weighted assets		20.28%		16.62%		17.07%
Regulatory and Other Capital Ratios—Bank:
Tier 1 (core) capital to risk-weighted assets		13.71%		14.19%		14.61%
Tier 1 (core) capital to adjusted tangible assets		8.68%		8.79%		9.26%
Common Tier 1 (CET 1)		13.71%		14.19%		14.61%
Total capital to risk-weighted assets		14.76%		15.27%		15.73%
Credit Quality Data
Nonperforming loans (1)		$ 783		$ 897		$ 565
Nonperforming loans to total loans		0.03%		0.04%		0.03%
Nonperforming assets (2)		$ 3,777		$ 3,912		$ 3,599
Nonperforming assets to total assets		0.13%		0.15%		0.17%
Allowance for loan losses to total loans		0.71%		0.72%		0.74%
Allowance for loan losses to nonperforming loans		2,357%		1,916%		2,623%
Net charge-offs to average loans		(0.03)%		(0.00)%		(0.02)%

(1) Nonperforming loans include nonaccrual loans and loans past due 90 days or more and still accruing interest.
(2) Nonperforming assets include nonperforming loans and loans modified under troubled debt restructurings and other repossessed assets.

		Three Months Ended														Year Ended December 31,
		12/31/2017					9/30/2017				12/31/2016					12/31/2017					12/31/2016
Allowance for loan losses
Balance at beginning of period		$	17,189				$	16,245			$	12,707				$	14,822				$	10,984
Provision for loan losses			600					900				1,808					2,700					1,280
Charge-offs			(19	)				-				(5	)				(19	)				(24	)
Recoveries			687					44				312					954					2,582
Balance at end of period		$	18,457				$	17,189			$	14,822				$	18,457				$	14,822

Average Tangible Common Equity Reconciliations (non-GAAP)

Average tangible common equity and return on average common equity are non-GAAP disclosure. Our management uses these non-GAAP financial measures to assess the Company’s capital strength and business performance. Average tangible common equity excludes the effect of intangible assets. This non-GAAP financial measure should not be considered a substitute for those comparable measures that are similarly titled that are determined in accordance with U.S. GAAP that may be used by other companies. The following is a reconciliation of average tangible common equity to the average shareholders’ equity, its most comparable GAAP measure, as well as a calculation of return on average tangible common equity as of December 31, 2017 and 2016, and September 30, 2017.

		As of and for the Three Months Ended													As of and for the Year Ended
		12/31/2017				9/30/2017				12/31/2016					12/31/2017				12/31/2016
Net Income		$	6,531			$	12,092			$	6,127				$	37,977			$	33,234
Average shareholders’ equity			228,037				180,475				161,115					187,542				150,664
Adjustments
Customer-related intangible			(975	)			(1,125	)			(1,463	)				(1,498	)			(1,575	)
Average tangible common equity		$	227,062			$	179,350			$	159,653				$	186,043			$	149,089
Return on average tangible common equity*			11.50	%			26.97	%			15.35	%				20.41	%			22.29	%

*Annualized

View source version on businesswire.com: http://www.businesswire.com/news/home/20180130006375/en/

Source: Sterling Bancorp, Inc.

Financial Profiles, Inc.
Allyson Pooley
310-622-8230
or
Larry Clark
310-622-8223
SBT@finprofiles.com