UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission File Number
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of | (I.R.S. Employer |
(
(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
| Trading Symbol(s) |
| Name of each exchange on which registered |
The | ||||
Capital Market) |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer ☐ |
| Accelerated filer ☐ |
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| Smaller reporting company | ||
Emerging growth company |
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.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
As of November 8, 2021,
STERLING BANCORP, INC.
FORM 10-Q
INDEX
1
Sterling Bancorp, Inc.
Condensed Consolidated Balance Sheets (Unaudited)
(dollars in thousands)
PART 1. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
September 30, | December 31, | |||||
| 2021 |
| 2020 | |||
Assets |
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Cash and due from banks | $ | | $ | | ||
Interest-bearing time deposits with other banks | | | ||||
Investment securities |
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Mortgage loans held for sale |
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Loans, net of allowance for loan losses of $ |
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Accrued interest receivable |
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Mortgage servicing rights, net | | | ||||
Leasehold improvements and equipment, net |
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Operating lease right-of-use assets | | | ||||
Federal Home Loan Bank stock, at cost | | | ||||
Cash surrender value of bank-owned life insurance |
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Deferred tax asset, net |
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Other assets |
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Total assets | $ | | $ | | ||
Liabilities and Shareholders’ Equity |
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Liabilities: |
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Noninterest-bearing deposits | $ | | $ | | ||
Interest-bearing deposits |
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Total deposits |
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Federal Home Loan Bank borrowings |
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Subordinated notes, net |
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Operating lease liabilities | | | ||||
Accrued expenses and other liabilities |
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Total liabilities |
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Shareholders’ equity: |
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Preferred stock, authorized |
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Common stock, |
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Additional paid-in capital |
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Retained earnings |
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Accumulated other comprehensive income |
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Total shareholders’ equity |
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Total liabilities and shareholders’ equity | $ | | $ | |
See accompanying notes to condensed consolidated financial statements.
2
Sterling Bancorp, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
(dollars in thousands, except per share amounts)
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
| 2021 |
| 2020 |
| 2021 |
| 2020 | |||||
Interest income |
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Interest and fees on loans | $ | | $ | | $ | | $ | | ||||
Interest and dividends on investment securities and restricted stock | | |
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Other interest | | |
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Total interest income | | |
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Interest expense |
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Interest on deposits | | |
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Interest on Federal Home Loan Bank borrowings | | |
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Interest on subordinated notes | | |
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Total interest expense | | |
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Net interest income | | |
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Provision (recovery) for loan losses | | |
| ( |
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Net interest income after provision (recovery) for loan losses | | |
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Non-interest income |
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Service charges and fees | | |
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Gain (loss) on sale of investment securities | — | ( | — | | ||||||||
Gain on sale of mortgage loans held for sale | | |
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Unrealized gains (losses) on equity securities | ( | — | ( | | ||||||||
Gain on sale of branch office | | — | | — | ||||||||
Net servicing loss | ( | ( | ( | ( | ||||||||
Income on cash surrender value of bank-owned life insurance | | |
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Other | | |
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Total non-interest income | | |
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Non-interest expense |
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Salaries and employee benefits | | |
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Occupancy and equipment | | |
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Professional fees | | |
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FDIC assessments | | |
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Data processing | | |
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Net provision (recovery) of mortgage repurchase liability | ( | — | ( | | ||||||||
Other | | |
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Total non-interest expense | | |
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Income (loss) before income taxes | | ( |
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Income tax expense (benefit) | | ( |
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Net income (loss) | $ | | $ | ( | $ | | $ | ( | ||||
Income (loss) per share, basic and diluted | $ | | $ | ( | $ | | $ | ( | ||||
Weighted average common shares outstanding: | ||||||||||||
Basic | | | | | ||||||||
Diluted | | | | |
See accompanying notes to condensed consolidated financial statements.
3
Sterling Bancorp, Inc.
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
(dollars in thousands)
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
| 2021 |
| 2020 |
| 2021 |
| 2020 | |||||
Net income (loss) | $ | | $ | ( | $ | | $ | ( | ||||
Other comprehensive income (loss), net of tax: |
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Unrealized gains (losses) on investment securities, arising during the period, net of tax effect of $( | ( | ( |
| ( |
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Reclassification adjustment for (gains) losses included in net income of $-, $ | — | — | ( | |||||||||
Total other comprehensive income (loss) | ( | ( |
| ( |
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Comprehensive income (loss) | $ | | $ | ( | $ | | $ | ( |
See accompanying notes to condensed consolidated financial statements.
4
Sterling Bancorp, Inc.
Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)
(dollars in thousands, except per share amounts)
Accumulated | |||||||||||||||||
Additional | Other | Total | |||||||||||||||
Common Stock | Paid-in | Retained | Comprehensive | Shareholders’ | |||||||||||||
| Shares |
| Amount |
| Capital |
| Earnings |
| Income |
| Equity | ||||||
Balance at January 1, 2020 | | $ | | $ | | $ | | $ | | $ | | ||||||
Net loss | — | — | — | ( | — | ( | |||||||||||
Repurchases of shares of common stock (Note 10) | ( | ( | — | — | — | ( | |||||||||||
Stock-based compensation | | — | | — | — | | |||||||||||
Other comprehensive income | — |
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| — |
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Dividends distributed ($ | — |
| — |
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| ( |
| — |
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Balance at March 31, 2020 | | $ | | $ | | $ | | $ | | $ | | ||||||
Net income | — | — | — | | — | | |||||||||||
Stock-based compensation | ( | — | | — | — | | |||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | |||||||||||
Balance at June 30, 2020 | | $ | | $ | | $ | | $ | | $ | | ||||||
Net loss | — | — | — | ( | — | ( | |||||||||||
Stock-based compensation | ( | — | | — | — | | |||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | |||||||||||
Balance at September 30, 2020 | | $ | | $ | | $ | | $ | | $ | | ||||||
Balance at January 1, 2021 | | $ | | $ | | $ | | $ | | $ | | ||||||
Net income | — | — | — | | — | | |||||||||||
Repurchase of restricted shares to pay employee tax liability | ( | — | ( | — | — | ( | |||||||||||
Stock-based compensation | | — | | — | — | | |||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | |||||||||||
Balance at March 31, 2021 | | $ | | $ | | $ | | $ | | $ | | ||||||
Net income | — | — | — | | — | | |||||||||||
Issuance of shares of common stock for cash ($ | | | — | — | — | | |||||||||||
Stock-based compensation | | — | | — | — | | |||||||||||
Other comprehensive income | — | — | — | — | | | |||||||||||
Balance at June 30, 2021 | | $ | | $ | | $ | | $ | | $ | | ||||||
Net income | — | — | — | | — | | |||||||||||
Stock-based compensation | ( | — | | — | — | | |||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | |||||||||||
Balance at September 30, 2021 | | $ | | $ | | $ | | $ | | $ | |
See accompanying notes to condensed consolidated financial statements.
5
Sterling Bancorp, Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(dollars in thousands)
Nine Months Ended | ||||||
September 30, | ||||||
| 2021 |
| 2020 | |||
Cash Flows From Operating Activities |
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Net income (loss) | $ | | $ | ( | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
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Provision (recovery) for loan losses |
| ( |
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Deferred income tax expense (benefit) |
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Gain on sale of branch office | ( | — | ||||
Gain on sale of investment securities |
| — |
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Unrealized (gains) losses on equity securities |
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Net amortization on investment securities |
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Depreciation and amortization on leasehold improvements and equipment | | | ||||
Origination, net of principal payments, mortgage loans held for sale |
| ( |
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Proceeds from sale of mortgage loans held for sale |
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