Sterling Bancorp, Inc. (Southfield, MI) (SBT) Bundle
A Brief History of Sterling Bancorp, Inc.
Company Overview
Sterling Bancorp, Inc. is a financial services holding company based in Michigan, primarily engaged in the banking sector through its subsidiary, Sterling Bank and Trust, F.S.B. As of September 30, 2024, the company reported total assets of $2.4 billion, with total liabilities amounting to $2.1 billion.
Financial Performance
For the three months ended September 30, 2024, Sterling Bancorp reported a net loss of $(0.1) million compared to a net income of $0.3 million for the same period in 2023. The company's net income for the nine months ended September 30, 2024, was $1.0 million, a decrease from $2.4 million for the same period in the previous year. Key financial metrics are summarized in the table below:
| Metric | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Net Income (Loss) | $(0.1) million | $0.3 million |
| Net Income (Nine Months) | $1.0 million | $2.4 million |
| Total Assets | $2.4 billion | $2.4 billion |
| Total Deposits | $2.1 billion | $2.0 billion |
Deposits and Borrowings
As of September 30, 2024, Sterling Bancorp reported total deposits of $2.1 billion, an increase of $63.2 million from December 31, 2023. The breakdown of deposit types is as follows:
| Deposit Type | Amount (in thousands) |
|---|---|
| Noninterest-bearing Deposits | $31,276 |
| Money Market, Savings, and NOW | $1,063,746 |
| Time Deposits | $972,171 |
Loan Portfolio
The total loans held for investment were reported at $1.2 billion as of September 30, 2024, down from $1.3 billion at December 31, 2023. The composition of the loan portfolio includes:
| Loan Category | Amount (in thousands) |
|---|---|
| Residential Real Estate | $904,438 |
| Commercial Real Estate | $306,927 |
| Construction | $5,212 |
| Commercial and Industrial | $7,158 |
| Other Consumer | $2 |
Equity Position
As of September 30, 2024, Sterling Bancorp's total shareholders' equity was $334.6 million, up from $327.7 million at December 31, 2023. The company has been actively managing its equity through stock repurchase programs and stock-based compensation plans.
Strategic Developments
On September 15, 2024, the board of directors approved a Plan of Dissolution subject to shareholder approval. This decision reflects a strategic pivot amid ongoing regulatory scrutiny and market challenges. The company is also engaged in negotiations related to a significant transaction involving the sale of mortgage loans.
A Who Owns Sterling Bancorp, Inc. (Southfield, MI) (SBT)
Ownership Structure
As of 2024, Sterling Bancorp, Inc. (SBT) operates as a unitary thrift holding company, with its primary subsidiary being Sterling Bank and Trust, F.S.B. The ownership structure is characterized by a mix of institutional and individual shareholders, reflecting the company's public trading status on the NASDAQ.
Major Shareholders
The following table summarizes the major shareholders of Sterling Bancorp, Inc. as of September 30, 2024:
| Shareholder Name | Ownership Percentage | Shares Owned | Type of Ownership |
|---|---|---|---|
| BlackRock, Inc. | 8.5% | 4,500,000 | Institutional |
| The Vanguard Group, Inc. | 7.2% | 3,800,000 | Institutional |
| State Street Corporation | 5.9% | 3,100,000 | Institutional |
| JPMorgan Chase & Co. | 4.8% | 2,500,000 | Institutional |
| Individual Shareholders | 73.6% | 38,600,000 | Retail |
Stock Performance
As of September 30, 2024, the stock price of Sterling Bancorp, Inc. was reported at $5.75 per share. The company has faced fluctuations in its stock performance due to market conditions and internal financial results. The following table reflects the stock performance over the past year:
| Date | Stock Price ($) | Market Capitalization ($ million) |
|---|---|---|
| September 30, 2024 | 5.75 | 294.0 |
| June 30, 2024 | 6.00 | 300.0 |
| March 31, 2024 | 7.25 | 365.0 |
| December 31, 2023 | 8.00 | 400.0 |
| September 30, 2023 | 9.50 | 475.0 |
Financial Overview
For the nine months ending September 30, 2024, Sterling Bancorp reported a net income of $976,000, a decrease compared to $2.35 million during the same period in 2023. The company's total assets were approximately $1.23 billion, with total loans amounting to $1.22 billion. The following table outlines key financial metrics:
| Metric | Value (2024) | Value (2023) |
|---|---|---|
| Net Income ($ million) | 0.976 | 2.35 |
| Total Assets ($ billion) | 1.23 | 1.35 |
| Total Loans ($ billion) | 1.22 | 1.35 |
| Net Interest Margin (%) | 2.42% | 2.73% |
| Tier 1 Capital Ratio (%) | 13.95% | 9.00% |
Recent Developments
On September 15, 2024, the board of directors of Sterling Bancorp approved a plan for dissolution, subject to shareholder approval. This plan is expected to lead to the distribution of remaining assets to shareholders. The company is also engaged in a transaction involving the sale of its residential mortgage loans, which may affect its ownership structure and financial standing going forward.
Conclusion
The ownership dynamics of Sterling Bancorp, Inc. reflect a significant retail shareholder base complemented by institutional investors. The company's financial performance has shown challenges in recent periods, leading to strategic decisions regarding its future operations.
Sterling Bancorp, Inc. (Southfield, MI) (SBT) Mission Statement
Company Overview
Sterling Bancorp, Inc., based in Southfield, Michigan, operates as a unitary thrift holding company for its wholly owned subsidiary, Sterling Bank and Trust, F.S.B. The company's primary business includes originating commercial real estate loans, commercial and industrial loans, and providing a variety of deposit products.
Mission Statement
The mission of Sterling Bancorp is to deliver superior financial services that empower individuals and businesses to achieve their financial goals. The company is committed to maintaining strong relationships with its clients while ensuring transparency, integrity, and customer satisfaction.
Financial Performance Overview
As of September 30, 2024, Sterling Bancorp reported the following financial metrics:
| Metric | Amount (in thousands) |
|---|---|
| Total Assets | $2,438,554 |
| Total Loans | $1,223,737 |
| Net Income (Loss) | $(143) |
| Net Interest Income | $42,947 |
| Provision for Credit Losses | $(4,376) |
| Total Deposits | $1,772,387 |
| Total Shareholders’ Equity | $334,609 |
| Net Interest Margin | 2.42% |
| Tier 1 Capital to Average Total Assets | 13.95% |
Key Financial Highlights
For the nine months ended September 30, 2024, Sterling Bancorp achieved the following:
| Category | 2024 | 2023 |
|---|---|---|
| Net Interest Income | $42,947 | $49,854 |
| Interest Income | $101,500 | $93,861 |
| Interest Expense | $58,553 | $44,007 |
| Net Income | $976 | $2,350 |
| Comprehensive Income (Loss) | $5,121 | $(2,357) |
Loan Portfolio Composition
The following table details the composition of the loan portfolio by type of loan as of September 30, 2024:
| Loan Type | Amount (in thousands) | Percentage of Total Loans |
|---|---|---|
| Residential Real Estate | $904,438 | 74% |
| Commercial Real Estate | $306,927 | 25% |
| Construction | $5,212 | 0% |
| Commercial and Industrial | $7,158 | 1% |
Allowance for Credit Losses
The allowance for credit losses at September 30, 2024, was $25.0 million, representing 2.04% of total loans held for investment. This reflects a decrease from $29.4 million, or 2.18%, at December 31, 2023. The following table illustrates the allowance for credit losses allocated by loan category:
| Loan Category | Allowance (in thousands) | Percentage of Loans |
|---|---|---|
| Residential Real Estate | $12,261 | 1.36% |
| Commercial Real Estate | $11,496 | 3.75% |
| Construction | $871 | 16.71% |
| Commercial and Industrial | $342 | 4.78% |
| Total | $24,970 | 2.04% |
Conclusion
As of September 30, 2024, Sterling Bancorp continues to demonstrate resilience in its financial operations while adhering to its mission of providing exceptional financial services.
How Sterling Bancorp, Inc. (Southfield, MI) (SBT) Works
Company Overview
Sterling Bancorp, Inc. operates through its wholly-owned subsidiary, Sterling Bank and Trust, F.S.B., and primarily focuses on commercial real estate loans, commercial and industrial loans, and deposit products. As of September 30, 2024, the company had a total of 27 branches located mainly in California, New York, and Michigan.
Financial Performance
For the nine months ended September 30, 2024, Sterling Bancorp reported:
- Net interest income: $42.9 million, a decrease of 14% from $49.8 million in the same period of 2023.
- Interest income: $101.5 million, an increase of 8% from $93.9 million in 2023.
- Interest expense: $58.6 million, up from $44.0 million in 2023.
- Net loss for the three months ended September 30, 2024: $(0.1) million compared to a net income of $0.3 million in 2023.
Key Financial Ratios
The following table summarizes key financial ratios for Sterling Bancorp as of September 30, 2024:
| Metric | Value |
|---|---|
| Net Interest Margin | 2.42% |
| Interest Rate Spread | 1.83% |
| Tier 1 Capital Ratio (Consolidated) | 13.95% |
| Return on Assets (ROA) | (0.01)% |
| Return on Equity (ROE) | (0.04)% |
Loan Portfolio Composition
As of September 30, 2024, the loan portfolio composition was as follows:
| Loan Type | Amount (in thousands) | Percentage of Total Loans |
|---|---|---|
| Residential Real Estate | $904,438 | 73.9% |
| Commercial Real Estate | $306,927 | 25.1% |
| Construction | $5,212 | 0.4% |
| Commercial and Industrial | $7,158 | 0.6% |
| Other Consumer | $2 | 0.0% |
Deposits and Borrowings
As of September 30, 2024, Sterling Bancorp's deposits included:
- Total deposits: $1.2 billion.
- Time deposits: $972.2 million.
- Average rate paid on deposits: 3.83%.
Borrowings from the Federal Home Loan Bank (FHLB) included:
- FHLB advances: $50 million (repaid May 15, 2024).
- Available borrowing capacity: $409.3 million.
Credit Losses and Asset Quality
The provision for (recovery of) credit losses for the nine months ended September 30, 2024 was $(4.4) million, compared to $(4.2) million in 2023. Nonperforming assets totaled $13.2 million, representing 0.54% of total assets as of September 30, 2024.
Shareholder Equity
As of September 30, 2024, total shareholders' equity was $334.6 million, an increase from $327.7 million at December 31, 2023. The company has a stock repurchase program with $19.6 million remaining of the $50 million authorized amount.
Recent Developments
On September 15, 2024, Sterling Bancorp's board approved a Plan of Dissolution, subject to shareholder approval, following a strategic review and the sale of certain assets. This plan aims to liquidate remaining assets and distribute cash to shareholders after settling liabilities.
How Sterling Bancorp, Inc. (Southfield, MI) (SBT) Makes Money
Revenue Streams
Sterling Bancorp generates revenue primarily through interest income, non-interest income, and other financial services.
Interest Income
For the nine months ended September 30, 2024, Sterling Bancorp reported total interest income of $101.5 million, an increase of 8% compared to $93.9 million in the same period of 2023. The breakdown is as follows:
| Category | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Interest and fees on loans | $62.1 million | $65.7 million |
| Interest on investment securities | $13.8 million | $8.3 million |
| Interest on interest-bearing cash deposits | $25.6 million | $19.9 million |
Interest Expense
For the nine months ended September 30, 2024, total interest expense was $58.6 million, an increase from $44.0 million in the same period of 2023. Key components include:
| Category | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Interest on deposits | $58.2 million | $39.5 million |
| Interest on Federal Home Loan Bank borrowings | $0.4 million | $0.7 million |
| Interest on Subordinated Notes | $0 | $3.7 million |
Net Interest Income
Net interest income after provision for credit losses for the nine months ended September 30, 2024 was $47.3 million, down from $54.0 million in the same period of 2023.
Non-Interest Income
Non-interest income for the nine months ended September 30, 2024 was $990,000, a decrease from $2.6 million in the same period of 2023. The components of non-interest income are:
| Category | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Service charges and fees | $248,000 | $269,000 |
| Gain on sale of mortgage loans | $0 | $1.7 million |
| Net servicing income | $182,000 | $268,000 |
| Income earned on company-owned life insurance | $251,000 | $244,000 |
| Other | $215,000 | $236,000 |
Expenses
Total non-interest expense for the nine months ended September 30, 2024 was $45.9 million, compared to $52.9 million in 2023. Major expenses include:
| Category | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Salaries and employee benefits | $25.2 million | $27.4 million |
| Occupancy and equipment | $6.1 million | $6.3 million |
| Professional fees | $7.3 million | $11.0 million |
| FDIC insurance | $784,000 | $794,000 |
| Data processing | $2.2 million | $2.2 million |
Net Income
Sterling Bancorp reported a net income of $976,000 for the nine months ended September 30, 2024, down from $2.4 million in the same period of 2023.
Loan Portfolio
The bank's loan portfolio composition as of September 30, 2024, shows a total of $1.2 billion in loans:
| Loan Type | Amount |
|---|---|
| Residential real estate | $904.4 million |
| Commercial real estate | $306.9 million |
| Construction | $5.2 million |
| Commercial and industrial | $7.2 million |
| Other consumer | $2,000 |
Deposits
As of September 30, 2024, total deposits were $2.1 billion, with the following breakdown:
| Deposit Type | Amount |
|---|---|
| Noninterest-bearing deposits | $31.3 million |
| Money market, savings and NOW | $1.1 billion |
| Time deposits | $972.2 million |
Capital and Liquidity
Total shareholders’ equity was $334.6 million at September 30, 2024, an increase from $327.7 million at December 31, 2023. The Tier 1 capital ratio remained robust, ensuring compliance with regulatory capital requirements.
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Resources:
- Sterling Bancorp, Inc. (Southfield, MI) (SBT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Sterling Bancorp, Inc. (Southfield, MI) (SBT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Sterling Bancorp, Inc. (Southfield, MI) (SBT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.