Sterling Bancorp Revises Fourth Quarter and Full Year 2021 Financial Results
SOUTHFIELD, Mich.–(BUSINESS WIRE)–Sterling Bancorp, Inc. (NASDAQ: SBT) (“Sterling” or the “Company”), the holding company of Sterling Bank and Trust, FSB (the “Bank”), today revised its financial results not audited for its fourth quarter and fiscal year ended December 31, 2021 in connection with its annual report filing on Form 10-K. Following the Company’s press release issued on February 3, 2022, the Company entered into an agreement with a third-party buyer to sell a pool of its commercial real estate loans. The loans had been reclassified as held for sale and written down to fair value at year end. The Company later determined that the timing of the measurement of the commercial real estate loans at fair value relative to their sale indicated that the estimated fair value of the loans at year end should have been higher. Accordingly, the Company has revised its estimate of the fair value of commercial real estate loans sold to reflect their sale price. The net result of this change was to increase net income for the quarter and year ended December 31, 2021 to $8.1 million and $23.4 million, respectively. The revision to the fair value of loans sold at year-end also changes our allowance for loan losses at December 31, 2021 to $56.5 million and our allowance (recovery) for loan losses at ($6.1 million) and ($8.3 million) for the three months and year ended December 31, 2021, respectively. The resulting material revisions to the Company’s financial highlights for the fourth quarter and year ended December 31, 2021 are set out below.
Revised Fourth Quarter and Year-End 2021 Highlights
- Net income of $8.1 million in the fourth quarter, or $0.16 per diluted share; annual net income of $23.4 million, or $0.47 per diluted share
- Provision (recovery) of loan losses in the fourth quarter of ($6.1 million), ratio of provision for loan losses to total loans held for investment of 2.81%; provision (recovery) for the full year of loan losses of ($8.3 million)
- Return on average assets of 1.07% in the fourth quarter; annual return on average assets of 0.69%
- Return on average equity of 9.49% in the fourth quarter; annual return on average equity of 7.07%
About Sterling Bancorp, Inc.
Sterling Bancorp, Inc. is a unit savings holding company. Its wholly owned subsidiary, Sterling Bank and Trust, FSB, has main branches in San Francisco and Los Angeles, California and New York. Sterling offers lending products to the residential and commercial markets, as well as personal and business banking services. Sterling also has an operations center and branch office in Southfield, Michigan. For more information, please visit the Company’s website at http://www.sterlingbank.com.
This press release contains certain statements that are, or may be deemed to be, “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. as amended, regarding the Company’s plans, expectations, thoughts, beliefs, estimates, objectives and prospects for the future which are intended to be covered by the protections provided by the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made using words or phrases such as “may”, “could”, “should”, “could”, “predict”, “potential”, “believe”, “expect”, “assign”, “continue”, “will”, “anticipate”, “seek”, “estimate”, “intend”, “plan”, “project”, “goal” , “target”, “outlook”, “goal”, “would” and “annualized”, or negative versions of these words or other comparable words or expressions of a future or forward-looking nature. These forward-looking statements are not historical facts, and they are based on current expectations, estimates and projections about our industry, the beliefs of management and certain assumptions made by management, many of which, by their nature, are inherently uncertain. and beyond our control. Accordingly, we caution you that these forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. The risks, uncertainties and other factors detailed from time to time in our public filings, including those included in the information provided under the headings “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in our Annual Report on Form 10 -K filed with the Securities and Exchange Commission on March 31, 2022, subsequent periodic reports and future periodic reports, could affect future results and events, causing such results and events to differ materially from the opinions expressed or implied in the Company’s forward-looking statements. Should one or more of the foregoing risks materialize, or should underlying assumptions prove incorrect, actual results or results may differ materially from those projected or implied by such forward-looking statements. Accordingly, you should not place undue reliance on these forward-looking statements. The Company undertakes no obligation to update, revise or correct any forward-looking statement based on the occurrence of future events, the receipt of new information or otherwise.