Sterling Bancorp Reports Fourth Quarter and Full Year 2024 Financial Results

SOUTHFIELD, Mich.--(BUSINESS WIRE)--Sterling Bancorp, Inc. (NASDAQ: SBT) (“Sterling” or the “Company”), the holding company of Sterling Bank and Trust, F.S.B. (the “Bank”), today reported its unaudited financial results for the quarter and year ended December 31, 2024. Fourth Quarter and Year-End 2024 Highlights Fourth quarter net income of $1.2 million, or $0.02 per diluted share; full year net income of $2.1 million, or $0.04 per diluted share Fourth quarter net interest margin of 2.24%; full year net interest margin of 2.37% Fourth quarter provision for (recovery of) credit losses of $(4.2) million; full year provision for (recovery of) credit losses of $(8.5) million Nonperforming loans of $14.6 million, or 1.26% of total loans and 0.60% of total assets Ratio of allowance for credit losses to total loans of 1.80% Fourth quarter non-interest expense of $15.9 million; full year non-interest expense of $61.8 million Shareholders’ equity of $334.0 million Consolidated Company’s and Bank’s leverage ratio of 14.08% and 13.76%, respectively Total deposits of $2.1 billion Total gross loans of $1.2 billion The Company reported net income of $1.2 million, or $0.02 per diluted share, for the quarter ended December 31, 2024, compared to a net loss of $(0.1) million, or $(0.00) per diluted share, for the quarter ended September 30, 2024. For the year ended December 31, 2024, net income was $2.1 million, or $0.04 per diluted share, compared to net income of $7.4 million, or $0.15 per diluted share, for the year ended December 31, 2023. As previously disclosed, on September 15, 2024, Sterling, the Bank and EverBank Financial Corp (“EverBank”) entered into a definitive stock purchase agreement providing for the purchase by EverBank of all of the issued and outstanding shares of capital stock of the Bank from Sterling (the “Transaction”) for cash consideration of $261.0 million. Also on September 15, 2024, Sterling’s board of directors unanimously approved a plan of dissolution providing for the dissolution of Sterling under Michigan law following the closing of the Transaction. The Company’s shareholders approved the definitive stock purchase agreement for the Transaction and the plan of dissolution at a Special Meeting of Shareholders held on December 18, 2024. The Transaction is expected to close in the first quarter of 2025. The Transaction is subject to customary closing conditions, including the receipt of required regulatory approvals. Balance Sheet Total Assets – Total assets were $2.4 billion at December 31, 2024, essentially unchanged as compared to September 30, 2024, and an increase of $20.5 million, or 1%, from December 31, 2023. Cash and due from banks increased $167.8 million, or 24%, to $878.2 million at December 31, 2024 compared to $710.4 million at September 30, 2024 primarily due to net cash inflows from maturities in the debt securities portfolio and loan repayments. Cash and due from banks increased $300.2 million, or 52% from $578.0 million at December 31, 2023. Debt securities of $338.1 million decreased $98.3 million, or 23%, from $436.4 million at September 30, 2024 and decreased $81.1 million, or 19%, from $419.2 at December 31, 2023. All debt securities are available for sale, have a relatively short duration and are considered part of our liquid assets. Total gross loans of $1.2 billion at December 31, 2024 decreased $68.0 million, or 6%, from September 30, 2024. Residential real estate loans were $849.4 million at December 31, 2024, a decrease of $55.1 million, or 6%, from September 30, 2024. Commercial real estate loans were $296.5 million at December 31, 2024, a decrease of $10.5 million, or 3%, from September 30, 2024. Total gross loans at December 31, 2024 declined $193.2 million, or 14%, from December 31, 2023 with residential real estate loans decreasing $236.4 million, or 22%, and commercial real estate loans increasing $59.5 million, or 25%. Total Deposits – Total deposits were $2.1 billion at December 31, 2024 and September 30, 2024 and were $2.0 billion at December 31, 2023. During the fourth quarter of 2024, money market, savings and NOW deposits increased $16.0 million, or 2% and time deposits decreased $19.1 million, or 2%. During 2024, time deposits increased $79.8 million, or 9% and money market, savings and NOW deposits decreased $15.8 million, or 1%. We continue to offer competitive interest rates on our deposit products to maintain our existing customer deposit base and maintain our liquidity. Capital – Total shareholders’ equity was $334.0 million at December 31, 2024, a decrease of $0.6 million from September 30, 2024 primarily due to a $2.7 million increase in the unrealized loss on our debt securities portfolio included in accumulated other comprehensive loss, partially offset by the $1.2 million net income in the fourth quarter of 2024. During 2024, total shareholders’ equity increased $6.2 million, or 2%, due primarily to the $2.1 million in net income and a $1.7 million reduction in the unrealized loss on our debt securities portfolio included in accumulated other comprehensive loss. At December 31, 2024, the consolidated Company’s and Bank’s leverage ratios were 14.08% and 13.76%, respectively. Both the Company and the Bank are required to maintain a Tier 1 leverage ratio of greater than 9.0% to have satisfied the minimum regulatory capital requirements as well as the capital ratio requirements to be considered well capitalized for regulatory purposes. Asset Quality and Provision for (Recovery of) Credit Losses – A provision for (recovery of) credit losses of $(4.2) million was recorded for the fourth quarter of 2024 compared to $(2.3) million for the third quarter of 2024. In the fourth quarter of 2024, the recovery of credit losses was primarily due to the reduction in the commercial real estate portfolio’s allowance reflecting a decrease in criticized and classified assets. In addition, the residential mortgage portfolio’s allowance had a reduction primarily due to continued run-off of that portfolio. The allowance for credit losses was $20.8 million, $25.0 million and $29.4 million, or 1.80%, 2.04% and 2.18% of total loans at December 31, 2024, September 30, 2024 and December 31, 2023, respectively. Recoveries of loan losses during the fourth and third quarter of 2024 were $2 thousand and $10 thousand, respectively, with no charge offs in either quarter. Recoveries of loan losses during the year ended December 31, 2024 and 2023 were $0.5 million in both years, with no charge offs in 2024 and $6.5 million in 2023 pertaining to the reclassification of $41.1 million of nonaccrual and delinquent residential loans as held for sale and charged off down to their fair value in the first quarter of 2023. Nonperforming loans, comprised primarily of nonaccrual residential real estate loans, totaled $14.6 million, or 0.60% of total assets, at December 31, 2024 and $13.2 million, or 0.54% of total assets at September 30, 2024. Results of Operations Net Interest Income and Net Interest Margin – Net interest income for the fourth quarter of 2024 was $13.5 million compared to $13.6 million for the prior quarter of 2024 and $15.1 million for the fourth quarter of 2023. The net interest margin of 2.24% for the fourth quarter of 2024 decreased from the prior quarter’s net interest margin of 2.30% and decreased from the net interest margin of 2.52% for the fourth quarter of 2023. The decrease in net interest income during the fourth quarter of 2024 compared to the prior quarter was primarily due to a 23 basis point decrease in the average yield on interest-earning assets which was partially offset by a 17 basis point decrease in the average rate paid on interest-bearing deposits. The decrease in net interest income during the fourth quarter of 2024 compared to the fourth quarter of 2023 was primarily due to a 41 basis point increase in the average rate paid on interest-bearing deposits and a $186.9 million, or 14%, decline in average loans, partially offset by a 7 basis point increase in the average yield on total interest-earning assets during the same period. Net interest income for the year ended December 31, 2024 was $56.5 million, a decrease of $8.5 million, or 13%, from the year ended December 31, 2023. The net interest margin of 2.37% decreased 31 basis points from the prior year’s net interest margin of 2.68%. The decrease in net interest income for the year ended December 31, 2024 is primarily attributable to a 100 basis point increase in the average rate paid on interest-bearing deposits and a $237.8 million, or 16%, decline in the average balance of loans. This was partially offset by the impact of a 45 basis point increase in the average yield of other interest-earning assets and the redemption of all of the Company’s subordinated notes in 2023 which decreased interest expense by $3.7 million. Non-Interest Income – Non-interest income for the year ended December 31, 2024 was $1.1 million, a decrease of $1.7 million from $2.8 million for the year ended December 31, 2023. The decrease was primarily attributable to a $1.6 million gain on the sale of all loans that were held for sale, comprised primarily of nonperforming and chronically delinquent residential real estate loans, which occurred in the second quarter of 2023. Non-Interest Expense – Non-interest expense of $15.9 million for the fourth quarter of 2024 reflected an increase of $0.3 million, or 2%, compared to $15.6 million for the third quarter of 2024 and an increase of $3.1 million, or 24%, compared to $12.8 million for the fourth quarter of 2023. The increase in non-interest expense from the fourth quarter versus the third quarter of 2024 was primarily due to a $0.7 million increase in other expenses, partially offset by decreases of $0.2 million in salaries and employee benefits and $0.3 million in professional fees. Professional fees for the fourth and third quarter of 2024 included Transaction related expense of $2.1 million and $1.4 million, respectively. The increase to the fourth quarter of 2024 compared to same quarter last year was primarily due to $3.8 million received in the fourth quarter of 2023 from our insurance carriers for previously incurred expenses related to the prior government investigations, offset in part by Transaction related expenses included in professional fees incurred in the fourth quarter of 2024. Non-interest expense for the year ended December 31, 2024 was $61.8 million, inclusive of $3.5 million of expenses incurred in connection with the Transaction, a decrease of $3.9 million, or 6%, compared to $65.7 million for the year ended December 31, 2023. The decrease was primarily attributable to salaries and employee benefits which were $2.4 million, or 7% lower in 2024 as compared to 2023 due to reductions in staffing levels. Professional fees remained flat in 2024 compared to 2023, although the components of our professional fees changed significantly as compliance related professional fees declined in 2024, we received substantial reimbursements from our insurance carriers in 2023 and we incurred significant Transaction related expenses in 2024. Income Tax Expense – The Company recorded an income tax expense of $2.1 million, a 49.7% effective rate, for the year ended December 31, 2024 and $3.1 million, or an effective rate of 29.8%, for the year ended December 31, 2023. Income tax expense includes an additional $0.6 million in the third quarter of 2024 to reverse a tax position previously taken on the deductibility of interest earned on U.S. government obligations under applicable state tax law. Our effective tax rate varies from the statutory rate primarily due to the adjustment in the third quarter of 2024 as well as the impact of non-deductible compensation-related expenses. About Sterling Bancorp, Inc. Sterling Bancorp, Inc. is a unitary thrift holding company. Its wholly owned subsidiary, Sterling Bank and Trust, F.S.B., has primary branch operations in the San Francisco and Los Angeles, California metropolitan areas and New York City. Sterling also has an operations center and a branch in Southfield, Michigan. Sterling offers a range of loan products as well as retail and business banking services. For additional information, please visit the Company’s website at http://www.sterlingbank.com. Forward-Looking Statements This Press Release contains certain statements that are, or may be deemed to be, “forward-looking statements” regarding the Company’s plans, expectations, thoughts, beliefs, estimates, goals and outlook for the future. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance, including any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions. These statements are often, but not always, made through the use of words or phrases such as “may,” “might,” “should,” “could,” “predict,” “potential,” “believe,” “expect,” “attribute,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “goal,” “target,” “outlook” and “would” or the negative versions of those words or other comparable words or phrases of a future or forward-looking nature, though the absence of these words does not mean a statement is not forward-looking. All statements other than statements of historical facts, including but not limited to statements regarding expectations for the anticipated sale of the Bank and ensuing Plan of Dissolution, the economy and financial markets, credit quality, the regulatory scheme governing our industry, competition in our industry, interest rates, our liquidity, our business and our governance, are forward-looking statements. We have based the forward-looking statements in this Press Release primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations, prospects, business strategy and financial needs. These forward-looking statements are not historical facts, and they are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. There can be no assurance that future developments will be those that have been anticipated. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. Accordingly, we caution you that any such 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 disclosures 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 14, 2024, subsequent periodic reports and future periodic reports, could affect future results and events, causing those results and events to differ materially from those views expressed or implied in the Company’s forward-looking statements. These risks are not exhaustive. Other sections of this Press Release and our filings with the Securities and Exchange Commission include additional factors that could adversely impact our business and financial performance. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Press Release. Should one or more of the foregoing risks materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those projected in, or implied by, such forward-looking statements. Accordingly, you should not place undue reliance on any such forward-looking statements. The Company disclaims any obligation to update, revise, or correct any forward-looking statements based on the occurrence of future events, the receipt of new information or otherwise. Sterling Bancorp, Inc. Consolidated Financial Highlights (Unaudited) At and for the Three Months Ended At and for the Year Ended December 31, September 30, December 31, December 31, December 31, (dollars in thousands, except per share data) 2024 2024 2023 2024 2023 Net income (loss) $ 1,162 $ (143 ) $ 5,063 $ 2,138 $ 7,413 Income (loss) per share, diluted $ 0.02 $ (0.00 ) $ 0.10 $ 0.04 $ 0.15 Net interest income $ 13,523 $ 13,618 $ 15,105 $ 56,470 $ 64,959 Net interest margin 2.24 % 2.30 % 2.52 % 2.37 % 2.68 % Non-interest income $ 67 $ 379 $ 213 $ 1,057 $ 2,786 Non-interest expense $ 15,888 $ 15,610 $ 12,830 $ 61,813 $ 65,710 Loans, net of allowance for credit losses $ 1,134,925 $ 1,198,767 $ 1,319,568 $ 1,134,925 $ 1,319,568 Total deposits $ 2,070,890 $ 2,067,193 $ 2,003,986 $ 2,070,890 $ 2,003,986 Asset Quality Nonperforming loans $ 14,584 $ 13,214 $ 8,973 $ 14,584 $ 8,973 Allowance for credit losses to total loans 1.80 % 2.04 % 2.18 % 1.80 % 2.18 % Allowance for credit losses to total nonaccrual loans 143 % 189 % 329 % 143 % 329 % Nonaccrual loans to total loans 1.26 % 1.08 % 0.66 % 1.26 % 0.66 % Nonperforming loans to total loans 1.26 % 1.08 % 0.67 % 1.26 % 0.67 % Nonperforming loans to total assets 0.60 % 0.54 % 0.37 % 0.60 % 0.37 % Net charge offs (recoveries) to average loans during the period (0.00 )% (0.00 )% (0.00 )% (0.04 )% 0.40 % Provision for (recovery of) credit losses $ (4,160 ) $ (2,338 ) $ (4,357 ) $ (8,536 ) $ (8,527 ) Net charge offs (recoveries) $ (2 ) $ (10 ) $ (64 ) $ (452 ) $ 5,944 Performance Ratios Return on average assets 0.19 % (0.02 )% 0.83 % 0.09 % 0.30 % Return on average shareholders' equity 1.39 % (0.17 )% 6.34 % 0.65 % 2.35 % Efficiency ratio (1) 116.91 % 111.52 % 83.76 % 107.45 % 97.00 % Yield on average interest-earning assets 5.56 % 5.79 % 5.49 % 5.68 % 5.23 % Cost of average interest-bearing liabilities 3.91 % 4.08 % 3.47 % 3.89 % 3.02 % Net interest spread 1.65 % 1.71 % 2.02 % 1.79 % 2.21 % Leverage Capital Ratios(2) Consolidated 14.08 % 14.19 % 13.95 % 14.08 % 13.95 % Bank 13.76 % 13.70 % 13.38 % 13.76 % 13.38 % ____________________ (1) Efficiency ratio is computed as the ratio of non-interest expense divided by the sum of net interest income and non-interest income. (2) Leverage capital ratio is Tier 1 (core) capital to average total assets. December 31, 2024 capital ratios are estimated. Sterling Bancorp, Inc. Condensed Consolidated Balance Sheets (Unaudited) December 31, September 30, % December 31, % (dollars in thousands) 2024 2024 change 2023 change Assets Cash and due from banks $ 878,181 $ 710,372 24 % $ 577,967 52 % Interest-bearing time deposits with other banks — 4,983 (100 )% 5,226 (100 )% Debt securities available for sale 338,105 436,409 (23 )% 419,213 (19 )% Equity securities 4,661 4,797 (3 )% 4,703 (1 )% Loans, net of allowance for credit losses of $20,805, $24,970 and $29,404 1,134,925 1,198,767 (5 )% 1,319,568 (14 )% Accrued interest receivable 8,592 9,650 (11 )% 8,509 1 % Mortgage servicing rights, net 1,279 1,338 (4 )% 1,542 (17 )% Leasehold improvements and equipment, net 4,480 4,710 (5 )% 5,430 (17 )% Operating lease right-of-use assets 10,640 10,765 (1 )% 11,454 (7 )% Federal Home Loan Bank stock, at cost 18,423 18,423 0 % 18,923 (3 )% Federal Reserve Bank stock, at cost 9,238 9,187 1 % 9,048 2 % Company-owned life insurance 8,926 8,872 1 % 8,711 2 % Deferred tax asset, net 15,389 15,023 2 % 16,959 (9 )% Other assets 3,673 5,258 (30 )% 8,750 (58 )% Total assets $ 2,436,512 $ 2,438,554 (0 )% $ 2,416,003 1 % Liabilities Noninterest-bearing deposits $ 38,086 $ 31,276 22 % $ 35,245 8 % Interest-bearing deposits 2,032,804 2,035,917 (0 )% 1,968,741 3 % Total deposits 2,070,890 2,067,193 0 % 2,003,986 3 % Federal Home Loan Bank borrowings — — N/M 50,000 (100 )% Operating lease liabilities 11,589 11,753 (1 )% 12,537 (8 )% Other liabilities 20,070 24,999 (20 )% 21,757 (8 )% Total liabilities 2,102,549 2,103,945 (0 )% 2,088,280 1 % Shareholders’ Equity Preferred stock, authorized 10,000,000 shares; no shares issued and outstanding — — — — — Common stock, no par value, authorized shares 500,000,000; shares issued and outstanding 52,305,036, 52,313,933 and 52,070,361 84,323 84,323 0 % 84,323 0 % Additional paid-in capital 19,053 18,210 5 % 16,660 14 % Retained earnings 244,102 242,940 0 % 241,964 1 % Accumulated other comprehensive loss (13,515 ) (10,864 ) (24 )% (15,224 ) 11 % Total shareholders’ equity 333,963 334,609 (0 )% 327,723 2 % Total liabilities and shareholders’ equity $ 2,436,512 $ 2,438,554 (0 )% $ 2,416,003 1 % ____________________ N/M - Not Meaningful Sterling Bancorp, Inc. Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended Year Ended (dollars in thousands, except per share amounts) December 31, 2024 September 30, 2024 % change December 31, 2023 % change December 31, 2024 December 31, 2023 % change Interest income Interest and fees on loans $ 19,960 $ 20,506 (3 )% $ 20,969 (5 )% $ 82,055 $ 86,684 (5 )% Interest and dividends on investment securities and restricted stock 3,965 4,993 (21 )% 3,800 4 % 17,734 12,056 47 % Interest on interest-bearing cash deposits 9,710 8,855 10 % 8,159 19 % 35,346 28,049 26 % Total interest income 33,635 34,354 (2 )% 32,928 2 % 135,135 126,789 7 % Interest expense Interest on deposits 20,112 20,736 (3 )% 17,572 14 % 78,298 57,109 37 % Interest on Federal Home Loan Bank borrowings — — N/M 251 (100 )% 367 994 (63 )% Interest on Subordinated Notes — — N/M — N/M — 3,727 (100 )% Total interest expense 20,112 20,736 (3 )% 17,823 13 % 78,665 61,830 27 % Net interest income 13,523 13,618 (1 )% 15,105 (10 )% 56,470 64,959 (13 )% Provision for (recovery of) credit losses (4,160 ) (2,338 ) (78 )% (4,357 ) 5 % (8,536 ) (8,527 ) (0 )% Net interest income after provision for (recovery of) credit losses 17,683 15,956 11 % 19,462 (9 )% 65,006 73,486 (12 )% Non-interest income Service charges and fees 66 69 (4 )% 75 (12 )% 314 344 (9 )% Loss on sale of investment securities — — N/M (111 ) 100 % — (113 ) 100 % Gain (loss) on sale of loans held for sale — — N/M (72 ) 100 % — 1,623 (100 )% Unrealized gain (loss) on equity securities (136 ) 160 N/M 198 N/M (42 ) 61 N/M Net servicing income 56 61 (8 )% 40 40 % 238 308 (23 )% Income earned on company-owned life insurance 81 84 (4 )% 83 (2 )% 332 327 2 % Other — 5 (100 )% — N/M 215 236 (9 )% Total non-interest income 67 379 (82 )% 213 (69 )% 1,057 2,786 (62 )% Non-interest expense Salaries and employee benefits 8,387 8,540 (2 )% 8,500 (1 )% 33,583 35,937 (7 )% Occupancy and equipment 2,015 2,019 (0 )% 2,096 (4 )% 8,123 8,369 (3 )% Professional fees 2,731 3,005 (9 )% (908 ) N/M 10,065 10,076 (0 )% FDIC insurance 264 260 2 % 264 0 % 1,048 1,058 (1 )% Data processing 760 715 6 % 704 8 % 2,950 2,941 0 % Other 1,731 1,071 62 % 2,174 (20 )% 6,044 7,329 (18 )% Total non-interest expense 15,888 15,610 2 % 12,830 24 % 61,813 65,710 (6 )% Income before income taxes 1,862 725 N/M 6,845 (73 )% 4,250 10,562 (60 )% Income tax expense 700 868 (19 )% 1,782 (61 )% 2,112 3,149 (33 )% Net income (loss) $ 1,162 $ (143 ) N/M $ 5,063 (77 )% $ 2,138 $ 7,413 (71 )% Income (loss) per share, basic and diluted $ 0.02 $ (0.00 ) $ 0.10 $ 0.04 $ 0.15 Weighted average common shares outstanding: Basic 51,062,757 51,059,012 50,703,220 50,971,884 50,630,928 Diluted 51,409,877 51,059,012 51,182,011 51,340,966 50,778,559 ____________________ N/M - Not Meaningful Sterling Bancorp, Inc. Yield Analysis and Net Interest Income (Unaudited) Three Months Ended December 31, 2024 September 30, 2024 December 31, 2023 Average Average Average Average Average Average (dollars in thousands) Balance Interest Yield/Rate Balance Interest Yield/Rate Balance Interest Yield/Rate Interest-earning assets Loans(1) Residential real estate and other consumer $ 877,536 $ 15,400 7.02 % $ 936,941 $ 16,005 6.83 % $ 1,111,391 $ 17,181 6.18 % Commercial real estate 304,178 4,298 5.65 % 296,632 4,160 5.61 % 237,997 3,065 5.15 % Construction 4,846 123 10.15 % 5,069 150 11.84 % 13,789 347 10.07 % Commercial and industrial 7,358 139 7.56 % 7,427 191 10.29 % 17,611 376 8.54 % Total loans 1,193,918 19,960 6.69 % 1,246,069 20,506 6.58 % 1,380,788 20,969 6.07 % Securities, includes restricted stock(2) 424,824 3,965 3.73 % 476,506 4,993 4.19 % 431,994 3,800 3.52 % Other interest-earning assets 799,605 9,710 4.86 % 650,089 8,855 5.45 % 585,703 8,159 5.57 % Total interest-earning assets 2,418,347 33,635 5.56 % 2,372,664 34,354 5.79 % 2,398,485 32,928 5.49 % Noninterest-earning assets Cash and due from banks 3,616 7,038 3,822 Other assets 26,872 29,906 30,305 Total assets $ 2,448,835 $ 2,409,608 $ 2,432,612 Interest-bearing liabilities Money market, savings and NOW $ 1,077,654 $ 9,296 3.42 % $ 1,077,346 $ 10,265 3.78 % $ 1,116,533 $ 9,745 3.46 % Time deposits 965,544 10,816 4.44 % 938,514 10,471 4.43 % 873,928 7,827 3.55 % Total interest-bearing deposits 2,043,198 20,112 3.91 % 2,015,860 20,736 4.08 % 1,990,461 17,572 3.50 % FHLB borrowings - - 0.00 % - - 0.00 % 50,000 251 1.96 % Subordinated notes, net - - 0.00 % - - 0.00 % - - 0.00 % Total borrowings - - 0.00 % - - 0.00 % 50,000 251 1.96 % Total interest-bearing liabilities 2,043,198 20,112 3.91 % 2,015,860 20,736 4.08 % 2,040,461 17,823 3.47 % Noninterest-bearing liabilities Demand deposits 38,316 31,507 38,310 Other liabilities 33,764 33,719 36,768 Shareholders' equity 333,557 328,522 317,073 Total liabilities and shareholders' equity $ 2,448,835 $ 2,409,608 $ 2,432,612 Net interest income and spread(2) $ 13,523 1.65 % $ 13,618 1.71 % $ 15,105 2.02 % Net interest margin(2) 2.24 % 2.30 % 2.52 % ____________________ (1) Nonaccrual loans are included in the respective average loan balances. Income, if any, on such loans is recognized on a cash basis. (2) Interest income does not include taxable equivalence adjustments. Year Ended December 31, 2024 December 31, 2023 Average Average Average Average (dollars in thousands) Balance Interest Yield/Rate Balance Interest Yield/Rate Interest-earning assets Loans(1) Residential real estate and other consumer $ 970,830 $ 65,609 6.76 % $ 1,231,559 $ 71,491 5.80 % Commercial real estate 275,043 14,923 5.43 % 228,963 11,401 4.98 % Construction 5,536 645 11.65 % 29,020 2,987 10.29 % Commercial and industrial 10,167 878 8.64 % 9,827 805 8.19 % Total loans 1,261,576 82,055 6.50 % 1,499,369 86,684 5.78 % Securities, includes restricted stock(2) 450,861 17,734 3.93 % 393,767 12,056 3.06 % Other interest-earning assets 668,760 35,346 5.29 % 532,789 28,049 5.26 % Total interest-earning assets 2,381,197 135,135 5.68 % 2,425,925 126,789 5.23 % Noninterest-earning assets Cash and due from banks 3,811 4,326 Other assets 29,001 28,648 Total assets $ 2,414,009 $ 2,458,899 Interest-bearing liabilities Money market, savings and NOW $ 1,073,095 $ 39,043 3.63 % $ 1,049,818 $ 29,559 2.82 % Time deposits 925,058 39,255 4.23 % 912,966 27,550 3.02 % Total interest-bearing deposits 1,998,153 78,298 3.91 % 1,962,784 57,109 2.91 % FHLB borrowings 18,443 367 1.98 % 50,000 994 1.99 % Subordinated notes, net - - 0.00 % 34,683 3,727 10.60 % Total borrowings 18,443 367 1.96 % 84,683 4,721 5.50 % Total interest-bearing liabilities 2,016,596 78,665 3.89 % 2,047,467 61,830 3.02 % Noninterest-bearing liabilities Demand deposits 34,279 43,702 Other liabilities 33,940 52,220 Shareholders' equity 329,194 315,510 Total liabilities and shareholders' equity $ 2,414,009 $ 2,458,899 Net interest income and spread(2) $ 56,470 1.79 % $ 64,959 2.21 % Net interest margin(2) 2.37 % 2.68 % ____________________ (1) Nonaccrual loans are included in the respective average loan balances. Income, if any, on such loans is recognized on a cash basis. (2) Interest income does not include taxable equivalence adjustments. Sterling Bancorp, Inc. Loan Composition (Unaudited) December 31, September 30, % December 31, % (dollars in thousands) 2024 2024 change 2023 change Residential real estate $ 849,350 $ 904,438 (6 )% $ 1,085,776 (22 )% Commercial real estate 296,457 306,927 (3 )% 236,982 25 % Construction 2,509 5,212 (52 )% 10,381 (76 )% Commercial and industrial 7,395 7,158 3 % 15,832 (53 )% Other consumer 19 2 N/M 1 N/M Total loans held for investment 1,155,730 1,223,737 (6 )% 1,348,972 (14 )% Less: allowance for credit losses (20,805 ) (24,970 ) (17 )% (29,404 ) (29 )% Loans, net $ 1,134,925 $ 1,198,767 (5 )% $ 1,319,568 (14 )% Sterling Bancorp, Inc. Allowance for Credit Losses - Loans (Unaudited) Three Months Ended Year Ended December 31, September 30, December 31, December 31, December 31, (dollars in thousands) 2024 2024 2023 2024 2023 Balance at beginning of period $ 24,970 $ 27,556 $ 34,267 $ 29,404 $ 45,464 Adjustment to adopt ASU 2016-13 — — — — (1,651 ) Adjustment to adopt ASU 2022-02 — — — — 380 Balance after adoption 24,970 27,556 34,267 29,404 44,193 Provision for (recovery of) credit losses (4,167 ) (2,596 ) (4,927 ) (9,051 ) (8,844 ) Charge offs — — — — (6,478 ) Recoveries 2 10 64 452 533 Balance at end of period $ 20,805 $ 24,970 $ 29,404 $ 20,805 $ 29,404 Sterling Bancorp, Inc. Deposit Composition (Unaudited) December 31, September 30, % December 31, % (dollars in thousands) 2024 2024 change 2023 change Noninterest-bearing deposits $ 38,086 $ 31,276 22 % $ 35,245 8 % Money Market, Savings and NOW 1,079,744 1,063,746 2 % 1,095,521 (1 )% Time deposits 953,060 972,171 (2 )% 873,220 9 % Total deposits $ 2,070,890 $ 2,067,193 0 % $ 2,003,986 3 % Sterling Bancorp, Inc. Credit Quality Data (Unaudited) At and for the Three Months Ended December 31, September 30, December 31, (dollars in thousands) 2024 2024 2023 Nonaccrual loans(1) Residential real estate $ 13,136 $ 13,187 $ 8,942 Commercial real estate 1,422 — — Total nonaccrual loans $ 14,558 $ 13,187 $ 8,942 Loans past due 90 days or more and still accruing interest 26 27 31 Nonperforming loans $ 14,584 $ 13,214 $ 8,973 Total loans (1) $ 1,155,730 $ 1,223,737 $ 1,348,972 Total assets $ 2,436,512 $ 2,438,554 $ 2,416,003 Allowance for credit losses to total loans 1.80 % 2.04 % 2.18 % Allowance for credit losses to total nonaccrual loans 143 % 189 % 329 % Nonaccrual loans to total loans 1.26 % 1.08 % 0.66 % Nonperforming loans to total loans 1.26 % 1.08 % 0.67 % Nonperforming loans to total assets 0.60 % 0.54 % 0.37 % Net charge offs (recoveries) to average loans during the period (0.00 )% (0.00 )% (0.00 )% ____________________ (1) Loans are classified as held for investment and are presented before the allowance for credit losses.

Sterling Bancorp Reports Fourth Quarter and Full Year 2024 Financial Results

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