UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 29, 2019

STERLING BANCORP, INC.

(Exact name of registrant as specified in its charter)

One Towne Square, Suite 1900

Southfield, Michigan 48076

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (248) 355-2400

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o                 Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o                 Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o                 Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o                 Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company x

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. x

Item 2.02.                                        Results of Operations and Financial Condition.

On July 29, 2019, Sterling Bancorp, Inc. issued a press release announcing its results of operations for the quarter ended June 30, 2019.  The press release is attached as Exhibit No. 99 and incorporated herein by reference.  This report and the attached exhibit are furnished to, and not filed with, the Securities and Exchange Commission.

Item 9.01.                                        Financial Statements and Exhibits.

(d)      Exhibits

The following exhibit is furnished herewith:

2

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

3

Exhibit 99

Sterling Bancorp Reports Second Quarter 2019 Financial Results

Q2 2019 Highlights

·                  Net income of $13.4 million, down from $16.0 million in Q2 2018, and $15.7 million in Q1 2019

·                  Included in the second quarter 2019 results was a $1.2 million valuation allowance taken against the Company’s mortgage servicing rights

·                  Fully diluted EPS of $0.26, down from $0.30 for both Q2 2018 and Q1 2019

·                  Second quarter annualized ROAA of 1.64% and annualized ROATCE of 15.6%

·                  Revenue, net of interest expense, of $32.8 million, down from $36.2 million in Q2 2018, and $34.1 million in Q1 2019

·                  Total loan originations of $356.5 million, down from $433.9 million in Q2 2018 and up from $304.9 million in Q1 2019

·                  Total gross loans, including loans held for investment and loans held for sale, of $2.95 billion, a 3% increase from Q2 2018, and flat from Q1 2019

·                  Total deposits of $2.55 billion, a 9% increase from Q2 2018, and a 5% increase from Q1 2019

·                  Net interest margin of 3.84%, compared to 3.96% in Q2 2018 and 3.86% in Q1 2019

·                  Repurchased approximately 1.0 million shares of common stock at an average price of $9.67 during the quarter

Southfield, Michigan, July 29, 2019 — Sterling Bancorp, Inc. (NASDAQ: SBT) (the “Company”), the holding company of Sterling Bank and Trust, F.S.B. (the “Bank”), today reported unaudited financial results for its second quarter ended June 30, 2019.

For the second quarter 2019, net income totaled $13.4 million, or $0.26 per diluted share, based on 51.5 million weighted average diluted shares outstanding. This compares to first quarter 2019 net income of $15.7 million, or $0.30 per diluted share, based on 52.6 million weighted average diluted shares outstanding. For the second quarter of 2018, net income totaled $16.0 million, or $0.30 per diluted share, based on 53.0 million weighted average diluted shares outstanding.

“Overall, our financial results for the second quarter of 2019 were generally in line with our expectations,” said Gary Judd, Chairman and CEO of Sterling Bancorp. “We generated higher pre-provision net interest income during the quarter, driven by slightly higher average loan balances and a relatively stable net interest margin. Our non-interest income was marked by a lower gain on the sale of loans and a valuation allowance taken against our mortgage servicing rights primarily due to the decline in long-term interest rates. And while we experienced good loan production, payoffs trended upwards in this low mortgage rate environment, resulting in flat total loan growth.

“Our business remains sound. We will continue to opportunistically utilize loan sales to diversify our revenue. We expect to resume our loan growth as our pipeline is healthy and credit quality remains excellent, which should translate into continued strong returns for our shareholders,” Mr. Judd concluded.

1

Financial Highlights (Unaudited)

Operating Results for the Second Quarter 2019

Revenue

Revenue, net of interest expense, was $32.8 million for the second quarter of 2019, a decrease of 4% from the first quarter of 2019. The decrease was primarily attributable to a $1.2 million valuation allowance taken against the Company’s mortgage servicing rights, and to a lesser extent, a reduction in gain on loan sales.

Revenue, net of interest expense, for the second quarter of 2018 was $36.2 million. The $3.4 million year-over-year decrease was due to a $4.2 million decrease in non-interest income, partially offset by a $0.8 million increase in net interest income.

Net Interest Income

Net interest income for the second quarter of 2019 was $30.7 million, an increase of 1% from $30.3 million for the first quarter of 2019. The slight increase in net interest income was primarily attributable to a $54.1 million increase in average interest earning assets, partially offset by a 2 basis point decrease in the net interest margin.

Relative to the second quarter of 2018, net interest income increased 3% from $29.9 million. The increase in net interest income from the second quarter of 2018 was primarily driven by a $184.2 million increase in average interest earning assets, partially offset by a 12 basis point decrease in the net interest margin.

Net Interest Margin

Net interest margin for the second quarter of 2019 was 3.84%, down 2 basis points from the net interest margin of 3.86% for the first quarter of 2019. Net interest margin was impacted by an 11 basis point increase in the

2

average cost of interest-bearing liabilities, growth in interest-bearing liabilities outpacing growth in interest earning assets, and was partially offset by an 11 basis point increase in the average yield on interest earning assets.

Relative to the second quarter of 2018, net interest margin decreased from 3.96%, primarily due to a 55 basis point increase in the average cost of interest-bearing liabilities, partially offset by a 35 basis point increase in the average yield on interest earning assets.

Non-interest Income

Non-interest income for the second quarter of 2019 was $2.1 million, a decrease from $3.8 million for the first quarter of 2019. The decrease was primarily attributable to the $1.2 million mortgage servicing rights valuation allowance, and to a lesser extent, a $478,000 decrease in the gain on sale of loans.

Non-interest income decreased $4.2 million from $6.3 million in the second quarter of 2018, primarily as a result of a $3.1 million decrease in the gain on sale of loans due to fewer residential mortgages sold in the secondary market as compared to the prior year period, and the $1.2 million mortgage servicing rights valuation allowance taken in the second quarter of 2019.

Non-interest Expense

Non-interest expense for the second quarter of 2019 was $13.7 million, an increase from $13.1 million for the first quarter of 2019. The increase was primarily attributable to slightly higher salaries and employee benefits and professional fees, a portion of which were related to increased regulatory compliance initiatives.

Relative to the second quarter of 2018, non-interest expense increased 9% from $12.6 million. The increase was primarily due to an increase in salaries and employee benefits and occupancy and equipment costs required to support new offices and the growth in the Company’s operations, as well as higher professional fees.

The Company’s operating efficiency ratio was 41.9% in the second quarter of 2019, compared with 38.5% in the first quarter of 2019 and 34.9% in the second quarter of 2018.

Income Taxes

The effective tax rate for the second quarter of 2019 was 29%, comparable to the effective tax rate of 29% for both the first quarter of 2019 and the second quarter of 2018.

Loan Portfolio

Total gross loans, which includes those held for investment and held for sale, were $2.95 billion at June 30, 2019, an increase from $2.94 billion at March 31, 2019. The Company had a $29.9 million increase in residential mortgage loans held for investment and a $0.3 million increase in residential mortgage loans held for sale, partially offset by a $20.3 million decrease in construction and commercial real estate loans, and an $8.1 million decrease in commercial and industrial loans. As the Company continues to utilize loan sales to support balance sheet and liquidity strategies, the amount of residential mortgage loans held for sale may vary from quarter to quarter.

During the second quarter of 2019, the Company originated $356.5 million in loans, which included $316.1 million in residential mortgage loans and $40.4 million in commercial real estate, construction loans and commercial lines of credit.

3

Deposits

Total deposits were $2.55 billion at June 30, 2019, compared with $2.44 billion at March 31, 2019. The $110.1 million increase was primarily attributable to a $229.9 million increase in time deposits, partially offset by a $119.7 million decrease in money market, savings and NOW deposits. Within time deposits, retail deposits increased by $154.9 million to $1.089 billion and brokered CD increased by $75.0 million, from a zero balance at March 31, 2019.

Credit Quality

Nonperforming assets totaled $12.2 million, or 0.37% of total assets, at June 30, 2019, compared with $14.2 million, or 0.44% of total assets, at March 31, 2019. The decrease was primarily due to a $2.0 million construction loan, which was placed on non-accrual in the prior quarter, being paid off in full during the second quarter.

Recoveries for the second quarter of 2019 were $40,000 and there were no charge-offs during the quarter. The Company recorded a provision for loan losses of $180,000 for the second quarter of 2019.

The allowance for loan losses was 0.71% of total loans and 312% of nonperforming loans at June 30, 2019, compared with 0.70% and 282%, respectively, at March 31, 2019.

Capital

At June 30, 2019, 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:

Share Repurchase Program

During the quarter, the Company repurchased approximately 1.0 million shares of common stock at an average price of $9.67 per share. Year-to-date, approximately 2.2 million shares have been repurchased at an average price of $9.59 per share.

4

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 (833) 535-2201 and the conference call number for participants outside the U.S. is (412) 902-6744. 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 August 12, 2019 by dialing (877) 344-7529, using conference ID number 10133156.

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, New York City and Bellevue, 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. Sterling was named as the top performing community bank in the United States with total assets between $3 billion and $10 billion in 2018 by S&P Global Market Intelligence for the second year in a row (in 2017 the asset range was $1 billion to $10 billion). For additional information, please visit the Company’s website at http://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 “Return on Average Tangible Common Equity Reconciliations (non-GAAP)” 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 meaning 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

5

undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

Contacts:

Financial Profiles, Inc.

Larry Clark

310-622-8223

Kristen Papke

310-622-8225

SBT@finprofiles.com

6

Sterling Bancorp, Inc.

Condensed Consolidated Balance Sheets (Unaudited)

N/M- not meaningful

7

Sterling Bancorp, Inc.

Condensed Consolidated Statements of Income (Unaudited)

8

Sterling Bancorp, Inc.

Selected Financial Data (Unaudited)

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

9

Sterling Bancorp, Inc.

Yield Analysis and Net Interest Income (Unaudited)

(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.

(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.

10

Sterling Bancorp, Inc.

Loan Composition (Unaudited)