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, gross | 21,440,212 | 21,848,409 | 1.9 | 21,440,212 | 21,848,409 | 1.9 | |||||||||||||||||
| Total deposits | 22,418,658 | 23,119,522 | 3.1 | 22,418,658 | 23,119,522 | 3.1 | |||||||||||||||||
| PPNR1, 2 | 145,188 | 122,474 | (15.6 | ) | 131,380 | 130,257 | (0.9 | ) | |||||||||||||||
| Net income available to common | 104,722 | 74,457 | (28.9 | ) | 108,855 | 94,323 | (13.3 | ) | |||||||||||||||
| Diluted EPS available to common | 0.52 | 0.38 | (26.9 | ) | 0.54 | 0.49 | (9.3 | ) | |||||||||||||||
| Net interest margin | 3.37 | % | 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 common | 82,438 | 74,457 | (9.7 | ) | 87,682 | 94,323 | 7.6 | |||||||||||||||
| Diluted EPS available to common | 0.43 | 0.38 | (11.6 | ) | 0.45 | 0.49 | 8.9 | |||||||||||||||
| Net interest margin | 3.19 | % | 3.33 | % | 14 | 3.24 | % | 3.38 | % | 14 | ||||||||||||
| Operating efficiency ratio3 | 48.5 | 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 loans | 1.46 | % | 1.49 | % | 3 | 1.46 | % | |||||||||||||||