Sterling Bancorp Reports Second Quarter 2021 Financial Results and Sale of Bellevue, WA Branch
Second Quarter 2021 Highlights
-
Net income of
$2.6 million , or$0.05 per diluted share - Net interest margin of 2.70%
-
Non-interest expense of
$19.9 million , including$5.7 million of professional fees -
Recovery for loan losses of
$0.6 million ; ratio of allowance for loan losses to total loans held for investment of 3.05% -
Shareholders’ equity of
$326.2 million - Bank capital ratios continue to be in excess of minimum ratios required to be considered “well-capitalized” with a leverage ratio of 10.52%, a total risk-based capital ratio of 24.50% and a common equity tier one ratio of 23.21%
- The Company’s consolidated leverage ratio of 9.15%, total risk-based capital ratio of 24.61% and common equity tier one ratio of 20.09% continue to exceed minimum regulatory capital requirements
-
Completed the sale of
Bellevue, Washington branch location onJuly 23 -
Total deposits of
$2.6 billion -
Total loans held for investment of
$2.4 billion -
Total loan originations of
$45.7 million -
Nonperforming loans and troubled debt restructurings were
$77.8 million (or 3.30% of total loans held for investment) compared to$91.2 million (or 3.71% of total loans held for investment) atMarch 31, 2021
The Company reported net income of
“Sterling’s second quarter results include several prominent moving parts. Included in this quarter are significant costs for the core IT system conversion scheduled for August and continued professional costs related to the various investigations. In addition, we repurchased approximately
Balance Sheet
Total Assets – Total assets of
Liquid assets, comprising cash and due from banks and investment securities, decreased
Total loans held for investment of
Total Deposits – Total deposits of
“Subsequent to quarter end, we completed the sale of the
Capital – Total shareholders’ equity was
| Company Minimum Requirements |
Company Actual at |
||
| Total adjusted capital to risk-weighted assets |
8.00% |
24.61% |
|
| Tier 1 (core) capital to risk-weighted assets |
6.00% |
20.09% |
|
| Common Tier 1 (CET 1) |
4.50% |
20.09% |
|
| Tier 1 (core) capital to adjusted tangible assets |
4.00% |
9.15% |
|
| To Be Well Capitalized |
Bank Actual at |
||
| Total adjusted capital to risk-weighted assets |
10.00% |
24.50% |
|
| Tier 1 (core) capital to risk-weighted assets |
8.00% |
23.21% |
|
| Common Tier 1 (CET 1) |
6.50% |
23.21% |
|
| Tier 1 (core) capital to adjusted tangible assets |
5.00% |
10.52% |
|
Asset Quality and Provision for Loan Losses – A recovery for loan losses of
Net recoveries slightly increased during the second quarter of 2021 to
Nonperforming assets at
“Credit quality continues to show some signs of improvement over prior periods. We continue to experience the challenges of dealing with lower legacy risk acceptance practices, including the time and energy related to protecting the Bank’s collateral position, in addition to the negative impact from the former Advantage Loan Program. Loans in forbearance have declined to less than
The principal balance of loans modified due to the economic effects of the COVID-19 pandemic and still in forbearance declined during the quarter ended
| Forbearance Composition | 2021 |
2021 |
2020 |
|||||||||
| Residential real estate |
$ |
5,842 |
|
$ |
20,298 |
|
$ |
10,729 |
|
|||
| Commercial real estate |
|
5,933 |
|
|
14,129 |
|
|
5,056 |
|
|||
| Construction |
|
- |
|
|
7,428 |
|
|
- |
|
|||
| Total loans in forbearance |
$ |
11,775 |
|
$ |
41,855 |
|
$ |
15,785 |
|
|||
| Loans in forbearance to total loans held for investment |
|
0.50 |
% |
|
1.70 |
% |
|
0.63 |
% |
|||
Results of Operations
Net Interest Income and Net Interest Margin – Net interest income for the second quarter of 2021 was
Net interest margin was positively impacted in the second quarter of 2021 by an increase of 15 basis points in the yield on earning assets with the loan portfolio comprising 68% of average interest earning assets compared to 65% in the first quarter of 2021 and a decrease in the cost of average interest-bearing liabilities of 13 basis points, reflecting the impact of the current low interest rate environment.
Non-Interest Income – Non-interest income for the second quarter of 2021 was
Non-Interest Expense – Non-interest expense of
Mr. O’Brien said, “We continue to believe that some of these significant expenses will begin to decline, albeit slowly, in the second half of this year and into 2022. We have no control over the timing of the various investigations and the professional time that they demand, and consequently the related costs are difficult to predict with any degree of accuracy. We are hopeful that, with respect only to the Bank, the pending completion of several substantial reviews and remediations, as well as the upcoming core IT system conversion, will lead to the closing of several critical projects and their attendant costs.”
Income Tax Expense –The effective tax rate was 35.1% for the second quarter of 2021 compared to 24.6% for the first quarter of 2021. The increase in the effective tax rate reflects adjustments made to the provision calculation in the second quarter of 2021 to account for certain non-deductible expenses. We expect the effective tax rate for the full year to stabilize near 30%.
Conference Call and Webcast
Management will host a conference call on
A replay of the conference call may be accessed through
About
Forward-Looking Statements
This press release contains certain statements that are, or may be deemed to be, “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding the Company’s plans, expectations, thoughts, beliefs, estimates, goals and outlook for the future that are intended to be covered by the protections provided under the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “might,” “should,” “could,” “predict,” “potential,” “believe,” “expect,” “attribute,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “goal,” “target,” “outlook,” “aim,” “would” and “annualized,” or the negative versions of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and they are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. The risks, uncertainties and other factors detailed from time to time in our public filings, including those included in the disclosures under the headings “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in our Annual Report on Form 10-K filed with the
| Consolidated Financial Highlights (Unaudited) | |||||||||||||
| At and for the Three Months Ended | |||||||||||||
| (dollars in thousands, except per share data) | 2021 |
2021 |
2020 |
||||||||||
| Net income |
$ |
2,566 |
|
$ |
2,325 |
|
$ |
2,867 |
|
||||
| Income per share, diluted |
$ |
0.05 |
|
$ |
0.05 |
|
$ |
0.06 |
|
||||
| Net interest income |
$ |
23,598 |
|
$ |
23,227 |
|
$ |
27,048 |
|
||||
| Net interest margin |
|
2.70 |
% |
|
2.45 |
% |
|
3.08 |
% |
||||
| Non-interest income |
$ |
(269 |
) |
$ |
453 |
|
$ |
1,323 |
|
||||
| Non-interest expense |
$ |
19,935 |
|
$ |
21,334 |
|
$ |
20,047 |
|
||||
| Loans, net of allowance for loan losses |
$ |
2,286,608 |
|
$ |
2,389,599 |
|
$ |
2,717,224 |
|
||||
| Total deposits (1) |
$ |
2,610,302 |
|
$ |
2,889,232 |
|
$ |
2,892,082 |
|
||||
| Nonperforming loans |
$ |
74,810 |
|
$ |
83,578 |
|
$ |
54,260 |
|
||||
| Allowance for loan losses to total loans |
|
3.05 |
% |
|
2.92 |
% |
|
1.70 |
% |
||||
| Allowance for loan losses to nonperforming loans |
|
96 |
% |
|
86 |
% |
|
86 |
% |
||||
| Provision (recovery) for loan losses |
$ |
(557 |
) |
$ |
(737 |
) |
$ |
4,297 |
|
||||
| Net recoveries |
$ |
(604 |
) |
$ |
(221 |
) |
$ |
(21 |
) |
||||
| Return on average assets |
|
0.29 |
% |
|
0.24 |
% |
|
0.32 |
% |
||||
| Return on average shareholders' equity |
|
3.14 |
% |
|
2.87 |
% |
|
3.43 |
% |
||||
| Efficiency ratio |
|
85.45 |
% |
|
90.09 |
% |
|
70.66 |
% |
||||
| Capital Ratios | |||||||||||||
| Regulatory and Other Capital Ratios— Consolidated: | |||||||||||||
| Total adjusted capital to risk-weighted assets |
|
24.61 |
% |
|
23.52 |
% |
|
21.68 |
% |
||||
| Tier 1 (core) capital to risk-weighted assets |
|
20.09 |
% |
|
18.48 |
% |
|
17.05 |
% |
||||
| Common Tier 1 (CET 1) |
|
20.09 |
% |
|
18.48 |
% |
|
17.05 |
% |
||||
| Tier 1 (core) capital to adjusted tangible assets |
|
9.15 |
% |
|
8.34 |
% |
|
9.20 |
% |
||||
| Regulatory and Other Capital Ratios—Bank: | |||||||||||||
| Total adjusted capital to risk-weighted assets |
|
24.50 |
% |
|
22.66 |
% |
|
20.71 |
% |
||||
| Tier 1 (core) capital to risk-weighted assets |
|
23.21 |
% |
|
21.37 |
% |
|
19.44 |
% |
||||
| Common Tier 1 (CET 1) |
|
23.21 |
% |
|
21.37 |
% |
|
19.44 |
% |
||||
| Tier 1 (core) capital to adjusted tangible assets |
|
10.52 |
% |
|
9.60 |
% |
|
10.49 |
% |
||||
| (1) Deposits held for sale were transferred on the sale of |
|||||||||||||
| Condensed Consolidated Balance Sheets (Unaudited) | |||||||||||||||||||
| (dollars in thousands) | 2021 |
2021 |
% change |
2020 |
% change |
2020 |
% change |
||||||||||||
| Assets | |||||||||||||||||||
| Cash and due from banks |
$ |
774,478 |
$ |
873,223 |
(11)% |
$ |
998,497 |
(22)% |
$ |
623,376 |
24% |
||||||||
| Interest-bearing time deposits with other banks |
|
805 |
|
5,528 |
(85)% |
|
7,021 |
(89)% |
|
9,731 |
(92)% |
||||||||
| Investment securities |
|
195,974 |
|
259,686 |
(25)% |
|
304,958 |
(36)% |
|
257,730 |
(24)% |
||||||||
| Mortgage loans held for sale |
|
15,107 |
|
19,848 |
(24)% |
|
22,284 |
(32)% |
|
3,184 |
374% |
||||||||
| Loans, net of allowance for loan losses of |
|
2,286,608 |
|
2,389,599 |
(4)% |
|
2,434,356 |
(6)% |
|
2,717,224 |
(16)% |
||||||||
| Accrued interest receivable |
|
9,660 |
|
10,439 |
(7)% |
|
10,990 |
(12)% |
|
13,864 |
(30)% |
||||||||
| Mortgage servicing rights, net |
|
3,232 |
|
4,626 |
(30)% |
|
5,688 |
(43)% |
|
7,266 |
(56)% |
||||||||
| Leasehold improvements and equipment, net |
|
9,423 |
|
9,085 |
4% |
|
8,512 |
11% |
|
8,849 |
6% |
||||||||
| Operating lease right-of-use assets |
|
18,781 |
|
18,791 |
0% |
|
19,232 |
(2)% |
|
19,804 |
(5)% |
||||||||
|
|
22,950 |
|
22,950 |
0% |
|
22,950 |
0% |
|
22,950 |
0% |
|||||||||
| Cash surrender value of bank-owned life insurance |
|
32,766 |
|
32,631 |
0% |
|
32,495 |
1% |
|
32,215 |
2% |
||||||||
| Deferred tax asset, net |
|
23,749 |
|
24,104 |
(1)% |
|
24,326 |
(2)% |
|
20,093 |
18% |
||||||||
| Other assets |
|
21,988 |
|
23,517 |
(7)% |
|
22,736 |
(3)% |
|
2,217 |
892% |
||||||||
| Total assets |
$ |
3,415,521 |
$ |
3,694,027 |
(8)% |
$ |
3,914,045 |
(13)% |
$ |
3,738,503 |
(9)% |
||||||||
| Liabilities | |||||||||||||||||||
| Noninterest-bearing deposits |
$ |
55,721 |
$ |
61,329 |
(9)% |
$ |
58,458 |
(5)% |
$ |
72,714 |
(23)% |
||||||||
| Interest-bearing deposits |
|
2,481,198 |
|
2,749,868 |
(10)% |
|
3,040,508 |
(18)% |
|
2,819,368 |
(12)% |
||||||||
| Deposits held for sale (1) |
|
73,383 |
|
78,035 |
(6)% |
|
- |
N/M |
|
- |
N/M |
||||||||
| Total deposits |
|
2,610,302 |
|
2,889,232 |
(10)% |
|
3,098,966 |
(16)% |
|
2,892,082 |
(10)% |
||||||||
|
|
318,000 |
|
318,000 |
0% |
|
318,000 |
0% |
|
329,000 |
(3)% |
|||||||||
| Subordinated notes, net |
|
65,377 |
|
65,384 |
0% |
|
65,341 |
0% |
|
65,259 |
0% |
||||||||
| Operating lease liabilities |
|
20,040 |
|
20,056 |
0% |
|
20,497 |
(2)% |
|
21,056 |
(5)% |
||||||||
| Accrued expenses and other liabilities |
|
75,646 |
|
79,439 |
(5)% |
|
91,650 |
(17)% |
|
99,701 |
(24)% |
||||||||
| Total liabilities |
|
3,089,365 |
|
3,372,111 |
(8)% |
|
3,594,454 |
(14)% |
|
3,407,098 |
(9)% |
||||||||
| Shareholders’ Equity | |||||||||||||||||||
| Preferred stock, authorized 10,000,000 shares; no shares issued and outstanding |
|
- |
|
- |
- |
|
- |
- |
|
- |
- |
||||||||
| Common stock, no par value, authorized 500,000,000 shares; issued and outstanding 50,475,181 at |
|
82,157 |
|
80,807 |
2% |
|
80,807 |
2% |
|
80,807 |
2% |
||||||||
| Additional paid-in capital |
|
13,796 |
|
13,603 |
1% |
|
13,544 |
2% |
|
13,328 |
4% |
||||||||
| Retained earnings |
|
229,744 |
|
227,178 |
1% |
|
224,853 |
2% |
|
236,657 |
(3)% |
||||||||
| Accumulated other comprehensive income |
|
459 |
|
328 |
40% |
|
387 |
19% |
|
613 |
(25)% |
||||||||
| Total shareholders’ equity |
|
326,156 |
|
321,916 |
1% |
|
319,591 |
2% |
|
331,405 |
(2)% |
||||||||
| Total liabilities and shareholders’ equity |
$ |
3,415,521 |
$ |
3,694,027 |
(8)% |
$ |
3,914,045 |
(13)% |
$ |
3,738,503 |
(9)% |
||||||||
| N/M- not meaningful | |||||||||||||||||||
| (1) Deposits held for sale were transferred on the sale of |
|||||||||||||||||||
| Condensed Consolidated Statements of Operations (Unaudited) | ||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
| (dollars in thousands, except per share amounts) | 2021 |
2021 |
% change |
2020 |
% change |
2021 |
2020 |
% change |
||||||||||||||||||
| Interest income: | ||||||||||||||||||||||||||
| Interest and fees on loans |
$ |
30,074 |
|
$ |
31,294 |
|
(4)% |
$ |
37,501 |
|
(20)% |
$ |
61,368 |
|
$ |
77,026 |
|
(20)% |
||||||||
| Interest and dividends on investment securities and restricted stock |
|
385 |
|
|
390 |
|
(1)% |
|
1,037 |
|
(63)% |
|
775 |
|
|
2,071 |
|
(63)% |
||||||||
| Other interest |
|
227 |
|
|
263 |
|
(14)% |
|
141 |
|
61% |
|
490 |
|
|
575 |
|
(15)% |
||||||||
| Total interest income |
|
30,686 |
|
|
31,947 |
|
(4)% |
|
38,679 |
|
(21)% |
|
62,633 |
|
|
79,672 |
|
(21)% |
||||||||
| Interest expense: | ||||||||||||||||||||||||||
| Interest on deposits |
|
5,236 |
|
|
6,702 |
|
(22)% |
|
9,576 |
|
(45)% |
|
11,938 |
|
|
19,940 |
|
(40)% |
||||||||
| Interest on |
|
847 |
|
|
838 |
|
1% |
|
877 |
|
(3)% |
|
1,685 |
|
|
1,687 |
|
0% |
||||||||
| Interest on subordinated notes |
|
1,005 |
|
|
1,180 |
|
(15)% |
|
1,178 |
|
(15)% |
|
2,185 |
|
|
2,355 |
|
(7)% |
||||||||
| Total interest expense |
|
7,088 |
|
|
8,720 |
|
(19)% |
|
11,631 |
|
(39)% |
|
15,808 |
|
|
23,982 |
|
(34)% |
||||||||
| Net interest income |
|
23,598 |
|
|
23,227 |
|
2% |
|
27,048 |
|
(13)% |
|
46,825 |
|
|
55,690 |
|
(16)% |
||||||||
| Provision (recovery) for loan losses |
|
(557 |
) |
|
(737 |
) |
24% |
|
4,297 |
|
(113)% |
|
(1,294 |
) |
|
25,150 |
|
(105)% |
||||||||
| Net interest income after provision (recovery) for loan losses |
|
24,155 |
|
|
23,964 |
|
1% |
|
22,751 |
|
6% |
|
48,119 |
|
|
30,540 |
|
58% |
||||||||
| Non-interest income: | ||||||||||||||||||||||||||
| Service charges and fees |
|
144 |
|
|
159 |
|
(9)% |
|
95 |
|
52% |
|
303 |
|
|
212 |
|
43% |
||||||||
| Gain on sale of mortgage loans held for sale |
|
70 |
|
|
398 |
|
(82)% |
|
751 |
|
(91)% |
|
468 |
|
|
1,020 |
|
(54)% |
||||||||
| Net servicing loss |
|
(908 |
) |
|
(430 |
) |
N/M |
|
(207 |
) |
N/M |
|
(1,338 |
) |
|
(1,118 |
) |
(20)% |
||||||||
| Other |
|
425 |
|
|
326 |
|
30% |
|
684 |
|
(38)% |
|
751 |
|
|
1,738 |
|
(57)% |
||||||||
| Total non-interest income |
|
(269 |
) |
|
453 |
|
(159)% |
|
1,323 |
|
(120)% |
|
184 |
|
|
1,852 |
|
(90)% |
||||||||
| Non-interest expense: | ||||||||||||||||||||||||||
| Salaries and employee benefits |
|
8,678 |
|
|
7,848 |
|
11% |
|
7,336 |
|
18% |
|
16,526 |
|
|
14,089 |
|
17% |
||||||||
| Occupancy and equipment |
|
2,240 |
|
|
2,196 |
|
2% |
|
2,208 |
|
1% |
|
4,436 |
|
|
4,326 |
|
3% |
||||||||
| Professional fees |
|
5,721 |
|
|
8,755 |
|
(35)% |
|
8,268 |
|
(31)% |
|
14,476 |
|
|
11,580 |
|
25% |
||||||||
|
|
500 |
|
|
719 |
|
(30)% |
|
240 |
|
108% |
|
1,219 |
|
|
259 |
|
N/M |
|||||||||
| Data processing |
|
440 |
|
|
346 |
|
27% |
|
351 |
|
25% |
|
786 |
|
|
686 |
|
15% |
||||||||
| Net provision (recovery) for mortgage repurchase liability |
|
(512 |
) |
|
(153 |
) |
N/M |
|
25 |
|
N/M |
|
(665 |
) |
|
25 |
|
N/M |
||||||||
| Other |
|
2,868 |
|
|
1,623 |
|
77% |
|
1,619 |
|
77% |
|
4,491 |
|
|
3,317 |
|
35% |
||||||||
| Total non-interest expense |
|
19,935 |
|
|
21,334 |
|
(7)% |
|
20,047 |
|
(1)% |
|
41,269 |
|
|
34,282 |
|
20% |
||||||||
| Income (loss) before income taxes |
|
3,951 |
|
|
3,083 |
|
28% |
|
4,027 |
|
(2)% |
|
7,034 |
|
|
(1,890 |
) |
N/M |
||||||||
| Income tax expense (benefit) |
|
1,385 |
|
|
758 |
|
83% |
|
1,160 |
|
19% |
|
2,143 |
|
|
(727 |
) |
N/M |
||||||||
| Net income (loss) |
$ |
2,566 |
|
$ |
2,325 |
|
10% |
$ |
2,867 |
|
(10)% |
$ |
4,891 |
|
$ |
(1,163 |
) |
521% |
||||||||
| Income (loss) per share: | ||||||||||||||||||||||||||
| Basic |
$ |
0.05 |
|
$ |
0.05 |
|
$ |
0.06 |
|
$ |
0.10 |
|
$ |
(0.02 |
) |
|||||||||||
| Diluted |
$ |
0.05 |
|
$ |
0.05 |
|
$ |
0.06 |
|
$ |
0.10 |
|
$ |
(0.02 |
) |
|||||||||||
| Weighted average common shares outstanding: | ||||||||||||||||||||||||||
| Basic |
|
50,009,053 |
|
|
49,851,202 |
|
|
49,837,948 |
|
|
49,930,563 |
|
|
49,837,805 |
|
|||||||||||
| Diluted |
|
50,060,775 |
|
|
49,912,860 |
|
|
49,841,741 |
|
|
49,987,253 |
|
|
49,837,805 |
|
|||||||||||
| N/M- not meaningful | ||||||||||||||||||||||||||
| Selected Financial Data (Unaudited) | |||||||
| Three Months Ended | |||||||
| Performance Ratios: | 2021 |
2021 |
2020 |
||||
| Return on average assets |
0.29% |
0.24% |
0.32% |
||||
| Return on average shareholders' equity |
3.14% |
2.87% |
3.43% |
||||
| Yield on average interest earning assets |
3.51% |
3.36% |
4.41% |
||||
| Cost of average interest-bearing liabilities |
0.92% |
1.05% |
1.52% |
||||
| Net interest spread |
2.59% |
2.31% |
2.89% |
||||
| Net interest margin |
2.70% |
2.45% |
3.08% |
||||
| Efficiency ratio (1) |
85.45% |
90.09% |
70.66% |
||||
| (1) Efficiency Ratio is computed as the ratio of non-interest expense divided by the sum of net interest income and non-interest income. | |||||||
| Yield Analysis and Net Interest Income (Unaudited) | |||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||
| (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) | |||||||||||||||||||||||||
| Residential real estate and other consumer |
$ |
1,960,561 |
$ |
23,794 |
4.85% |
$ |
2,006,112 |
$ |
24,596 |
4.90% |
$ |
2,329,695 |
$ |
29,789 |
5.11% |
||||||||||
| Commercial real estate |
|
258,310 |
|
3,444 |
5.33% |
|
256,610 |
|
3,183 |
4.96% |
|
275,046 |
|
3,635 |
5.29% |
||||||||||
| Construction |
|
171,921 |
|
2,788 |
6.49% |
|
198,628 |
|
3,412 |
6.87% |
|
204,689 |
|
3,749 |
7.33% |
||||||||||
| Commercial lines of credit |
|
2,292 |
|
48 |
8.38% |
|
5,687 |
|
103 |
7.24% |
|
17,701 |
|
328 |
7.41% |
||||||||||
| Total loans |
|
2,393,084 |
|
30,074 |
5.03% |
|
2,467,037 |
|
31,294 |
5.07% |
|
2,827,131 |
|
37,501 |
5.31% |
||||||||||
| Securities, includes restricted stock |
|
270,809 |
|
385 |
0.57% |
|
312,969 |
|
390 |
0.50% |
|
226,497 |
|
1,037 |
1.83% |
||||||||||
| Other interest-earning assets |
|
837,866 |
|
227 |
0.11% |
|
1,017,642 |
|
263 |
0.10% |
|
459,222 |
|
141 |
0.12% |
||||||||||
| Total interest-earning assets |
$ |
3,501,759 |
$ |
30,686 |
3.51% |
$ |
3,797,648 |
$ |
31,947 |
3.36% |
$ |
3,512,850 |
$ |
38,679 |
4.41% |
||||||||||
| Interest-bearing liabilities | |||||||||||||||||||||||||
| Money Market, Savings and NOW |
$ |
1,344,949 |
$ |
807 |
0.24% |
$ |
1,382,390 |
$ |
935 |
0.27% |
$ |
1,215,610 |
$ |
2,258 |
0.75% |
||||||||||
| Time deposits |
|
1,346,059 |
|
4,429 |
1.32% |
|
1,592,064 |
|
5,767 |
1.47% |
|
1,463,806 |
|
7,318 |
2.01% |
||||||||||
| Total interest-bearing deposits |
|
2,691,008 |
|
5,236 |
0.78% |
|
2,974,454 |
|
6,702 |
0.91% |
|
2,679,416 |
|
9,576 |
1.43% |
||||||||||
| FHLB borrowings |
|
318,000 |
|
847 |
1.05% |
|
318,013 |
|
838 |
1.05% |
|
329,002 |
|
877 |
1.05% |
||||||||||
| Subordinated debt |
|
65,385 |
|
1,005 |
6.15% |
|
65,358 |
|
1,180 |
7.22% |
|
65,235 |
|
1,178 |
7.22% |
||||||||||
| Total borrowings |
|
383,385 |
|
1,852 |
1.91% |
|
383,371 |
|
2,018 |
2.11% |
|
394,237 |
|
2,055 |
2.06% |
||||||||||
| Total interest-bearing liabilities |
$ |
3,074,393 |
$ |
7,088 |
0.92% |
$ |
3,357,825 |
$ |
8,720 |
1.05% |
$ |
3,073,653 |
$ |
11,631 |
1.52% |
||||||||||
| Net interest income and spread (2) |
$ |
23,598 |
2.59% |
$ |
23,227 |
2.31% |
$ |
27,048 |
2.89% |
||||||||||||||||
| Net interest margin (2) |
2.70% |
2.45% |
3.08% |
||||||||||||||||||||||
| (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. | |||||||||||||||||||||||||
| Six Months Ended | |||||||||||||||||||||||||
| (dollars in thousands) | Average Balance | Interest | Average Yield/ Rate |
Average Balance | Interest | Average Yield/ Rate |
|||||||||||||||||||
| Interest-earning assets | |||||||||||||||||||||||||
| Loans (1) | |||||||||||||||||||||||||
| Residential real estate and other consumer |
$ |
1,983,211 |
$ |
48,390 |
4.88% |
$ |
2,366,335 |
$ |
61,801 |
5.22% |
|||||||||||||||
| Commercial real estate |
|
257,465 |
|
6,627 |
5.15% |
|
268,069 |
|
7,181 |
5.36% |
|||||||||||||||
| Construction |
|
185,201 |
|
6,200 |
6.70% |
|
196,628 |
|
7,408 |
7.54% |
|||||||||||||||
| Commercial lines of credit |
|
3,980 |
|
151 |
7.54% |
|
17,891 |
|
636 |
7.11% |
|||||||||||||||
| Total loans |
|
2,429,857 |
|
61,368 |
5.05% |
|
2,848,923 |
|
77,026 |
5.41% |
|||||||||||||||
| Securities, includes restricted stock |
|
291,772 |
|
775 |
0.53% |
|
200,649 |
|
2,071 |
2.06% |
|||||||||||||||
| Other interest-earning assets |
|
923,854 |
|
490 |
0.11% |
|
313,128 |
|
575 |
0.37% |
|||||||||||||||
| Total interest-earning assets |
$ |
3,645,483 |
$ |
62,633 |
3.44% |
$ |
3,362,700 |
$ |
79,672 |
4.74% |
|||||||||||||||
| Interest-bearing liabilities | |||||||||||||||||||||||||
| Money Market, Savings and NOW |
$ |
1,363,566 |
$ |
1,742 |
0.26% |
$ |
1,236,443 |
$ |
5,565 |
0.91% |
|||||||||||||||
| Time deposits |
|
1,468,382 |
|
10,196 |
1.40% |
|
1,318,750 |
|
14,375 |
2.20% |
|||||||||||||||
| Total interest-bearing deposits |
|
2,831,948 |
|
11,938 |
0.85% |
|
2,555,193 |
|
19,940 |
1.57% |
|||||||||||||||
| FHLB borrowings |
|
318,006 |
|
1,685 |
1.05% |
|
298,235 |
|
1,687 |
1.13% |
|||||||||||||||
| Subordinated debt |
|
65,372 |
|
2,185 |
6.68% |
|
65,214 |
|
2,355 |
7.22% |
|||||||||||||||
| Total borrowings |
|
383,378 |
|
3,870 |
2.01% |
|
363,449 |
|
4,042 |
2.21% |
|||||||||||||||
| Total interest-bearing liabilities |
$ |
3,215,326 |
$ |
15,808 |
0.99% |
$ |
2,918,642 |
$ |
23,982 |
1.66% |
|||||||||||||||
| Net interest income and spread (2) |
$ |
46,825 |
2.45% |
$ |
55,690 |
3.08% |
|||||||||||||||||||
| Net interest margin (2) |
2.57% |
3.31% |
|||||||||||||||||||||||
| (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. | |||||||||||||||||||||||||
| Loan Composition (Unaudited) | |||||||||||||||||||||||
| (dollars in thousands) | 2021 |
2021 |
% change |
2020 |
% change |
2020 |
% change |
||||||||||||||||
| Residential real estate |
$ |
1,948,892 |
|
$ |
2,008,439 |
|
(3)% |
$ |
2,033,526 |
|
(4)% |
$ |
2,280,473 |
|
(15)% |
||||||||
| Commercial real estate |
|
263,278 |
|
|
263,508 |
|
0% |
|
259,958 |
|
1% |
|
265,068 |
|
(1)% |
||||||||
| Construction |
|
144,385 |
|
|
184,490 |
|
(22)% |
|
206,581 |
|
(30)% |
|
201,084 |
|
(28)% |
||||||||
| Commercial lines of credit |
|
1,971 |
|
|
5,029 |
|
(61)% |
|
6,671 |
|
(70)% |
|
17,510 |
|
(89)% |
||||||||
| Other consumer |
|
- |
|
|
4 |
|
(100)% |
|
7 |
|
(100)% |
|
20 |
|
(100)% |
||||||||
| Total loans held for investment |
|
2,358,526 |
|
|
2,461,470 |
|
(4)% |
|
2,506,743 |
|
(6)% |
|
2,764,155 |
|
(15)% |
||||||||
| Less: allowance for loan losses |
|
(71,918 |
) |
|
(71,871 |
) |
0% |
|
(72,387 |
) |
(1)% |
|
(46,931 |
) |
53% |
||||||||
| Loans, net |
$ |
2,286,608 |
|
$ |
2,389,599 |
|
(4)% |
$ |
2,434,356 |
|
(6)% |
$ |
2,717,224 |
|
(16)% |
||||||||
| Mortgage loans held for sale |
$ |
15,107 |
|
$ |
19,848 |
|
(24)% |
$ |
22,284 |
|
(32)% |
$ |
3,184 |
|
374% |
||||||||
| Total gross loans |
$ |
2,373,633 |
|
$ |
2,481,318 |
|
(4)% |
$ |
2,529,027 |
|
(6)% |
$ |
2,767,339 |
|
(14)% |
||||||||
| Deposit Composition (Unaudited) | |||||||||||||||||||
| (dollars in thousands) | 2021 |
2021 |
% change |
2020 |
% change |
2020 |
% change |
||||||||||||
| Noninterest bearing deposits |
$ |
55,721 |
$ |
61,329 |
(9)% |
$ |
58,458 |
(5)% |
$ |
72,714 |
(23)% |
||||||||
| Money Market, Savings and NOW |
|
1,309,981 |
|
1,292,572 |
1% |
|
1,393,985 |
(6)% |
|
1,238,776 |
6% |
||||||||
| Time deposits |
|
1,171,217 |
|
1,457,296 |
(20)% |
|
1,646,523 |
(29)% |
|
1,580,592 |
(26)% |
||||||||
| Deposits held for sale (1) |
|
73,383 |
|
78,035 |
(6)% |
|
- |
N/M |
|
- |
N/M |
||||||||
| Total deposits |
$ |
2,610,302 |
$ |
2,889,232 |
(10)% |
$ |
3,098,966 |
(16)% |
$ |
2,892,082 |
(10)% |
||||||||
| N/M- not meaningful | |||||||||||||||||||
| (1) Deposits held for sale were transferred on the sale of |
|||||||||||||||||||
| Credit Quality Ratios (Unaudited) | |||||||||||||||||
| At and for the Three Months Ended | |||||||||||||||||
| (dollars in thousands) | 2021 |
2021 |
2020 |
2020 |
|||||||||||||
| Credit Quality Data | |||||||||||||||||
| Nonperforming loans (1) |
$ |
74,810 |
|
$ |
83,578 |
|
$ |
86,470 |
|
$ |
54,260 |
|
|||||
| Nonperforming loans to total loans (1) |
|
3.17 |
% |
|
3.40 |
% |
|
3.45 |
% |
|
1.96 |
% |
|||||
| Other troubled debt restructurings (2) |
|
2,940 |
|
|
7,646 |
|
|
8,246 |
|
|
23,017 |
|
|||||
| Nonaccrual loans held for sale |
|
14,867 |
|
|
18,572 |
|
|
19,375 |
|
|
- |
|
|||||
| Nonperforming assets (3) |
|
92,617 |
|
|
109,963 |
|
|
114,258 |
|
|
77,277 |
|
|||||
| Nonperforming assets to total assets |
|
2.71 |
% |
|
2.98 |
% |
|
2.92 |
% |
|
2.07 |
% |
|||||
| Allowance for loan losses to total loans |
|
3.05 |
% |
|
2.92 |
% |
|
2.89 |
% |
|
1.70 |
% |
|||||
| Allowance for loan losses to nonperforming loans |
|
96 |
% |
|
86 |
% |
|
84 |
% |
|
86 |
% |
|||||
| Net charge offs (recoveries) to average loans |
|
(0.03 |
)% |
|
(0.01 |
)% |
|
0.13 |
% |
|
0.00 |
% |
|||||
| (1) Nonperforming loans include nonaccrual loans (including troubled debt restructurings on nonaccrual status) and loans past due 90 days or more and still accruing interest but exclude nonaccrual loans held for sale. | |||||||||||||||||
| (2) Other troubled debt restructurings exclude those loans presented as nonaccrual or past due 90 days or more and still accruing interest. | |||||||||||||||||
| (3) Nonperforming assets include nonperforming loans, nonaccrual loans held for sale, other troubled debt restructurings and other loan collateral acquired through foreclosure or repossession. | |||||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20210802005231/en/
Investor Contact:
Chief Financial Officer
(248) 351-3428
shuber@sterlingbank.com
Source: