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Sterling Bank & Trust (SBT)
:SBT
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Sterling Bancorp
(NASDAQ:SBT)
58Neutral
Sterling Bancorp (SBT) vs. S&P 500 (SPY)
Market Cap
$239.59M
Dividend YieldN/A
Average Volume (3M)18.99K
Price to Earnings (P/E)118.2
Beta (1Y)0.79
Revenue Growth5.19%
EPS Growth-71.34%
CountryUS
Employees255
SectorFinancial
Sector Strength77
IndustryBanking
Share Statistics
EPS (TTM)0.04
Shares Outstanding52,313,255
10 Day Avg. Volume23,495
30 Day Avg. Volume18,994
Financial Highlights & Ratios
PEG Ratio0.22
Price to Book (P/B)N/A
Price to Sales (P/S)3.52
Price to Cash Flow (P/CF)22.20
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Sterling Bancorp Business Overview & Revenue Model
Company DescriptionSterling Bancorp (SBT) is a financial institution primarily engaged in providing a comprehensive range of banking products and services to individual and business customers. Operating within the financial services sector, the company specializes in offering retail and commercial banking services, including deposit products, loan products, and mortgage services. Sterling Bancorp is committed to delivering personalized financial solutions to its diverse customer base, leveraging its expertise and technology-driven approach to meet the evolving needs of its clients.
How the Company Makes MoneySterling Bancorp generates revenue primarily through net interest income and non-interest income. The company earns net interest income by collecting interest on loans and other earning assets, while paying interest on deposits and other interest-bearing liabilities. Interest income is primarily derived from loans, which include residential mortgages, commercial loans, and consumer loans. Non-interest income is generated from various sources, including fees for services such as account maintenance, transaction processing, and asset management. Sterling Bancorp may also earn revenue from investment securities and other financial instruments. Additionally, strategic partnerships and collaborations with other financial entities can contribute to its earnings by expanding its service offerings and customer reach.
Sterling Bancorp Financial Statement Overview
Summary
Sterling Bancorp's financial health is characterized by strong revenue growth and a robust balance sheet with low leverage. However, profitability and cash flow efficiency present areas for improvement. The income statement reflects a healthy revenue trajectory but with room to enhance margins. The balance sheet is solid, supporting stability in the banking industry, while cash flow metrics indicate potential for better operational performance.Income Statement
Sterling Bancorp shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) gross profit margin is strong at 100%, reflecting solid revenue generation. However, the net profit margin is relatively low at 5.26%, indicating that profitability could be improved. Revenue growth is positive, with a notable 50.47% increase from the previous annual period, which is a strong signal of revenue expansion. The EBIT margin stands at 29.26%, but the EBITDA margin is only 1.94%, suggesting high depreciation and amortization expenses impacting earnings.65
Positive
Balance Sheet
The balance sheet of Sterling Bancorp reveals a strong equity position with a debt-to-equity ratio of 0.04, indicating low leverage, which is favorable in the banking sector. The return on equity (ROE) is modest at 1.80%, suggesting room for enhancement in generating returns for shareholders. The equity ratio is 13.72%, reflecting a solid cushion against liabilities. Overall, the balance sheet demonstrates stability with potential for improved profitability.72
Positive
Cash Flow
Cash flow analysis for Sterling Bancorp highlights a recovery in free cash flow, showing a significant positive swing. The operating cash flow to net income ratio is 0.26, indicating that cash flow generation from operations can be improved. The free cash flow to net income ratio stands at 0.22, suggesting that a smaller portion of net income is being converted into free cash flow. These metrics signal a need for better operational efficiency to enhance cash flow strength.60
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 114.76M | 76.27M | 80.15M | 95.57M | 110.10M | 132.43M | Gross Profit |
| 114.76M | 76.27M | 80.15M | 95.57M | 110.10M | 132.43M | EBIT |
| 33.58M | 8.43M | 29.42M | 28.54M | -18.88M | 77.71M | EBITDA |
| 2.22M | 11.89M | 0.00 | 34.79M | -17.27M | 0.00 | Net Income Common Stockholders |
| 6.04M | 7.41M | -14.19M | 23.39M | -12.97M | 56.95M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 54.73M | 997.18M | 728.93M | 412.86M | 1.31B | 78.84M | Total Assets |
| 3.20B | 2.42B | 2.44B | 2.87B | 3.91B | 3.24B | Total Debt |
| 358.03M | 62.54M | 131.26M | 234.74M | 403.84M | 314.05M | Net Debt |
| 303.30M | -520.66M | -249.47M | -178.12M | -601.68M | 235.20M | Total Liabilities |
| 358.03M | 2.09B | 2.13B | 234.74M | 403.84M | 314.05M | Stockholders Equity |
| 335.06M | 327.72M | 312.63M | 340.37M | 319.59M | 360.32M |
| Cash Flow | Free Cash Flow | ||||
| 1.32M | -25.38M | 1.92M | 29.57M | 4.02M | 69.96M | Operating Cash Flow |
| 1.55M | -24.91M | 2.34M | 30.75M | 4.95M | 71.29M | Investing Cash Flow |
| 169.50M | 238.38M | 373.70M | 352.47M | 223.79M | 7.64M | Financing Cash Flow |
| -24.30M | -15.30M | -407.91M | -970.04M | 691.95M | -53.64M |
Sterling Bancorp Technical Analysis
Negative
4.58
Price Trends
4.70
Negative
4.74
Negative
4.97
Negative
Market Momentum
-0.03
Positive
44.70
Neutral
14.42
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBT, the sentiment is Negative. The current price of 4.58 is below the 20-day moving average (MA) of 4.65, below the 50-day MA of 4.70, and below the 200-day MA of 4.97, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 44.70 is Neutral, neither overbought nor oversold. The STOCH value of 14.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SBT.
Sterling Bancorp Risk Analysis
Sterling Bancorp disclosed 66 risk factors in its most recent earnings report. Sterling Bancorp reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sterling Bancorp Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $5.50B | 13.77 | 10.38% | 2.76% | 8.83% | 3.77% | |
73 Outperform | $3.60B | 16.85 | 14.16% | 1.64% | 12.93% | 1.40% | |
72 Outperform | $1.52B | 9.48 | 10.44% | ― | -3.61% | -29.58% | |
67 Neutral | $959.66M | 14.00 | 5.68% | 5.01% | 7.79% | -8.83% | |
64 Neutral | $13.79B | 10.52 | 9.20% | 4.24% | 17.25% | -7.60% | |
61 Neutral | $5.00B | 22.42 | 14.39% | 2.06% | 18.54% | 12.22% | |
58 Neutral | $239.59M | 118.21 | 0.65% | ― | 5.19% | -71.34% |
* Financial Sector Average
Performance Comparison
SBT
Sterling Bancorp
4.61
-0.47
-9.25%
BANF
BancFirst
109.23
23.51
27.43%
BRKL
Brookline Bancorp
10.85
1.77
19.49%
FFIN
First Financial Bankshares
35.05
4.32
14.06%
HOMB
Home Bancshares
27.89
4.81
20.84%
CUBI
Customers Bancorp
49.81
-2.11
-4.06%
Sterling Bancorp Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: -5.37% | Next Earnings Date: May 5, 2025
Earnings Call Sentiment Neutral
The call indicates a mixed outlook for Sterling Bancorp. The closure of investigations and strong capital positions are positive, but the breakeven financial performance and high cost of liquidity present challenges. The sentiment is balanced between positive strategic moves and ongoing financial hurdles.Highlights
Closure of Investigations
The Department of Justice has closed its investigation, ending several years of costly legal and compliance expenses for Sterling Bancorp.
Strong Capital and Liquidity
Sterling Bancorp continues to maintain strong capital and liquidity positions, with expenses trending in the right direction due to cost-cutting measures.
End of Wholesale Funding
The final maturity of a $50 million Home Loan Bank advance marks the end of the company's reliance on wholesale funding, transitioning to core deposit funding.
Stable Credit Conditions
Credit conditions remain favorable with healthy reserve levels and minimal delinquencies, especially in the commercial portfolio.
Lowlights
Breakeven Financial Performance
The company is operating at a breakeven level, indicating minimal profitability and potential challenges in revenue generation.
High Cost of Liquidity
The cost of liquidity remains relatively high, impacting the company's financial margin.
No Plans for Residential Loan Origination
Sterling Bancorp is not originating any new residential loans, which may limit growth opportunities in this segment.
Company Guidance
During the Q2 2024 earnings call, Sterling Bancorp provided guidance highlighting several key metrics and areas of focus. The company is currently operating at a breakeven level, with capital and liquidity remaining strong. A significant milestone was the maturity of their last wholesale funding, specifically a $50 million Home Loan Bank advance, marking a shift towards reliance solely on core deposit funding. Expenses are trending in the right direction due to cost-cutting measures and the conclusion of investigations that began in 2019, with about $1.3 million of the $2.1 million professional fees attributed to legal costs. The company anticipates legal and compliance costs to average around $1.8 million in the coming quarters. Additionally, Sterling Bancorp continues to focus on protecting the book value and balance sheet integrity while exploring commercial loan opportunities, although it has no plans to originate residential loans. The bank's asset quality remains strong, with credit conditions staying mild and reserve levels healthy. Management expects that potential interest rate cuts later in 2024 could positively impact margins by reducing the cost of liabilities.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.