Sterling Bancorp, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

As of September 30, 2024, total assets increased to $2,438.6 million from $2,416.0 million at December 31, 2023. Total deposits rose to $2,067.2 million, up from $2,004.0 million, primarily driven by an increase in time deposits, which grew by $99.0 million or 11%. However, total loans decreased to $1,223.7 million from $1,349.0 million, with net loans reported at $1,198.8 million, down from $1,319.6 million. The decline in loans was attributed to a reduction in residential real estate loans, which accounted for 74% of total loans, down from 80% at the end of 2023.

For the three months ended September 30, 2024, total interest income increased to $34.4 million, a 4% rise from $32.9 million in the same period of 2023. However, total interest expense also rose significantly to $20.7 million, up 23% from $16.8 million, leading to a decrease in net interest income to $13.6 million, down 15% from $16.0 million. The net interest margin for the quarter fell to 2.30%, down from 2.62% in the prior year.

Net income for the three months ended September 30, 2024, was a loss of $0.1 million, compared to a profit of $0.3 million in the same period in 2023. For the nine months, net income decreased to $1.0 million from $2.4 million in the previous year. The decrease in profitability was influenced by higher interest expenses and a decline in net interest income.

Strategically, Sterling Bancorp announced a stock purchase agreement with EverBank Financial Corp on September 15, 2024, to sell Sterling Bank for $261.0 million in cash, pending shareholder and regulatory approvals. This transaction is part of a broader plan of dissolution approved by the board, which is also subject to shareholder approval.

The company’s allowance for credit losses decreased to $25.0 million (2.04% of total loans) from $29.4 million (2.18%) at the end of 2023. Nonperforming assets increased to $13.2 million, or 0.54% of total assets, up from $9.0 million (0.37%) at December 31, 2023, primarily due to an increase in nonaccrual loans.

Overall, Sterling Bancorp's financial performance reflects challenges in loan origination and profitability, alongside significant strategic shifts aimed at restructuring the company.