Sterling Bank & Trust ( (SBT) ) has realeased its Q3 earnings. Here is a breakdown of the information Sterling Bank & Trust presented to its investors.
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Sterling Bancorp, Inc. is a unitary thrift holding company headquartered in Southfield, Michigan, with primary operations in the San Francisco, Los Angeles, and New York City metropolitan areas, offering a range of loan products and banking services through its wholly owned subsidiary, Sterling Bank and Trust, F.S.B.
In the third quarter of 2024, Sterling Bancorp reported a net loss of $0.1 million, marking a shift from the $1.3 million net income recorded in the previous quarter. This period also saw the company enter into a definitive agreement for the sale of its banking operations to EverBank Financial Corp for $261.0 million, a transaction anticipated to close in the first quarter of 2025.
Key financial highlights for this quarter include a net interest margin of 2.30%, total deposits amounting to $2.1 billion, and total gross loans of $1.2 billion. The company experienced an increase in nonperforming loans to $13.2 million, representing 0.54% of total assets. Despite a decrease in net interest income and an increase in interest expenses, Sterling maintained a strong leverage ratio, with the consolidated company and the bank reporting ratios of 14.18% and 13.72%, respectively.
Sterling Bancorp’s financial strategy reflected in the quarter’s results included efforts to maintain liquidity through competitive interest rates on deposit products, adjustments in the loan portfolio, and a focus on reducing non-interest expenses where possible. With the pending sale to EverBank, Sterling’s management is preparing for significant structural changes.
Looking ahead, Sterling Bancorp’s future hinges on the successful completion of the transaction with EverBank and the subsequent dissolution plan. The company’s management remains cautiously optimistic, focusing on meeting regulatory requirements and securing shareholder approval to ensure a smooth transition.
