Page 1

Sterling bancorp Sterling Bancorp Reports Second Quarter 2021 Financial Results and Sale of Bellevue , WA Branch August 2 , 2021 SOUTHFIELD , Mich .-- ( BUSINESS WIRE ) -- Aug . 2 , 2021-- Sterling Bancorp , Inc. ( NASDAQ : SBT ) ( " Sterling " or 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 , 2021 . Second Quarter 2021 Highlights • Net income of $ 2.6 million , or $ 0.05 per diluted share • Net interest margin of 2.70 % • Non - interest expense of $ 19.9 million , including $ 5.7 million of professional fees • Recovery for loan losses of $ 0.6 million ; ratio of allowance for loan losses to total loans held for investment of 3.05 % • Shareholders ' equity of $ 326.2 million • Bank capital ratios continue to be in excess of minimum ratios required to be considered " well - capitalized " with a leverage ratio of 10.52 % , a total risk - based capital ratio of 24.50 % and a common equity tier one ratio of 23.21 % • The Company's consolidated leverage ratio of 9.15 % , total risk - based capital ratio of 24.61 % and common equity tier one ratio of 20.09 % continue to exceed minimum regulatory capital requirements • Completed the sale of Bellevue , Washington branch location on July 23 • Total deposits of $ 2.6 billion • Total loans held for investment of $ 2.4 billion • Total loan originations of $ 45.7 million • Nonperforming loans and troubled debt restructurings were $ 77.8 million ( or 3.30 % of total loans held for investment ) compared to $ 91.2 million ( or 3.71 % of total loans held for investment ) at March 31 , 2021 The Company reported net income of $ 2.6 million , or $ 0.05 per diluted share , for the quarter ended June 30 , 2021 , compared to net income of $ 2.3 million , or $ 0.05 per diluted share , for the quarter ended March 31 , 2021 . " Sterling's second quarter results include several prominent moving parts . Included in this quarter are significant costs for the core IT system conversion scheduled for August and continued professional costs related to the various investigations . In addition , we repurchased approximately $ 80 million of previously sold Advantage Loan Program loans and have committed to the repurchase of another $ 100 million Advantage Loan Program loans over the course of the next several quarters . We have also been able to allow the excess liquidity that we have carried to decline as better definition on the level and timing of the loan repurchases have been identified , " said Thomas M. O'Brien , Chairman , President , and Chief Executive Officer . Balance Sheet Total Assets - Total assets of $ 3.4 billion at June 30 , 2021 reflected a decrease of $ 278.5 million , or 8 % , from $ 3.7 billion at March 31 , 2021 . Liquid assets , comprising cash and due from banks and investment securities , decreased $ 162.5 million , or 14 % , to $ 970.5 million compared to $ 1.1 billion at March 31 , 2021 . Total loans held for investment of $ 2.4 billion at June 30 , 2021 reflected a decline of $ 102.9 million , or 4 % , from $ 2.5 billion at March 31 , 2021. Loan repayments outpaced loan production for the quarter ended June 30 , 2021. The impact of the excess loan repayments was partially offset by the repurchase of Advantage Loan Program loans totaling $ 79.8 million , pursuant to previously disclosed offers to repurchase 100 % of previously sold Advantage Loan Program loans from third - party investors . Such repurchases of Advantage Loan Program loans in 2021 , totaled $ 167.8 million . The repurchased Advantage Loan Program loans were evaluated and considered to be performing at the acquisition date . Cash utilized in the repurchases helped reduce our excess liquidity position . Total Deposits - Total deposits of $ 2.6 billion at June 30 , 2021 reflected a decrease of $ 278.9 million , or 10 % , compared to $ 2.9 billion at March 31 , 2021. Money market , savings and NOW deposits of $ 1.3 billion at June 30 , 2021 reflected an increase of $ 17.4 million , or 1 % , compared to $ 1.3 billion as of March 31 , 2021. Time deposits of $ 1.2 billion at June 30 , 2021 reflected a decrease of $ 286.1 million , or 20 % , compared to $ 1.5 billion as of March 31 , 2021. Non - interest bearing deposits of $ 55.7 million at June 30 , 2021 reflected a decrease of $ 5.6 million , or 9 % , compared to $ 61.3 million as of March 31 , 2021. Brokered deposits included in time deposits were $ 35.0 million at June 30 , 2021 and March 31 , 2021 .