Sterling Bancorp announces results for the fourth quarter and full year 2020. Diluted income per share available to common stockholders in the fourth quarter of $0.38 (as reported) and $0.49 (as adjusted).

Company Release - 1/20/2021 4:15 PM ET

Key Performance Highlights

  • Adjusted PPNR excluding accretion income1, 2 of $130.3 million; increased $7.0 million, or 5.7% over linked quarter.
  • Adjusted total revenue1 was $256.1 million; an increase of $10.5 million, or 4.3% over linked quarter.
  • Net interest margin excluding accretion income1 of 3.25%, an increase of 15 basis points (“bps”) over the linked quarter.
  • Earning asset yields increased by six bps to 3.69% while cost of funding liabilities decreased by nine bps to 33 bps.
  • Total commercial loans were $20.0 billion, an increase of 5.5% over a year ago.
  • Total deposits were $23.1 billion, an increase of 3.1% over a year ago.
  • Total core deposits were $21.5 billion, an increase of 4.5% over a year ago.
  • Adjusted non-interest expense1 was $110.1 million, an increase of $4.3 million relative to the linked quarter. Adjusted operating efficiency ratio3 was 43.0%.
  • NPLs decreased by $13.8 million to $167.1 million; ACL / portfolio loans of 1.49% and ACL / NPLs of 195.2%.
  • TCE / TA1 was 9.55% and tangible book value per common share1 was $13.87, an increase of 6.0% over a year ago.
  • Completed $225.0 million subordinated debt capital raise; anticipate redeeming bank subordinated debt in April 2021.
  • Declared dividend per common share of $0.07.
  • Restarted share repurchase program in Q4 2020; with 1.9 million repurchased and 14.7 million available for repurchase under the program; targeting a 50% pay out ratio.

Results for the Three Months ended December 31, 2020 vs. December 31, 2019

($ in thousands except per share amounts)GAAP / As Reported Non-GAAP / As Adjusted1
 12/31/2019 12/31/2020 Change
% / bps
 12/31/2019 12/31/2020 Change
% / bps
Total assets$30,586,497  $29,820,138  (2.5)% $30,586,497  $29,820,138  (2.5)%
Total portfolio loans, gross21,440,212  21,848,409  1.9   21,440,212  21,848,409  1.9  
Total deposits22,418,658  23,119,522  3.1   22,418,658  23,119,522  3.1  
PPNR1, 2145,188  122,474  (15.6)  131,380  130,257  (0.9) 
Net income available to common104,722  74,457  (28.9)  108,855  94,323  (13.3) 
Diluted EPS available to common0.52  0.38  (26.9)  0.54  0.49  (9.3) 
Net interest margin3.37% 3.33% (4)  3.42% 3.38% (4) 
Tangible book value per common share1$13.09  $13.87  6.0   $13.09  $13.87  6.0  

Results for the Three Months ended December 31, 2020 vs. September 30, 2020

($ in thousands except per share amounts)GAAP / As Reported Non-GAAP / As Adjusted1
 9/30/2020 12/31/2020 Change
% / bps
 9/30/2020 12/31/2020 Change
% / bps
PPNR1, 2$126,687  $122,474  (3.3)  $123,286  $130,257  5.7 
Net income available to common82,438  74,457  (9.7)  87,682  94,323  7.6 
Diluted EPS available to common0.43  0.38  (11.6)  0.45  0.49  8.9 
Net interest margin3.19% 3.33% 14   3.24% 3.38% 14 
Operating efficiency ratio348.5  52.1  360   43.1  43.0  (10)
Allowance for credit losses (“ACL”) - loans$325,943  $326,100     $325,943  $326,100   
ACL to portfolio loans1.46% 1.49% 3   1.46%