Docoh
Loading...

SBT Sterling Bancorp

Participants
Steve Huber Chief Financial Officer and Treasurer
Tom O'Brien Chairman, Chief Executive Officer, and President
Ben Gerlinger Hovde Group
Nick Cucharale Piper Jaffray
Anthony Polini American Capital Partners
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.
Operator

Good day, everyone, and welcome to the Sterling Bancorp, Inc. Fourth Quarter 2020 Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded. I'd like to turn the conference call over to Steve Huber, Chief Financial Officer and Treasurer. sir. ahead, go Please

Steve Huber

And discuss everyone, for Sterling year XXXX. quarter Chad. us the for today and XX, December to Bancorp's ended good you, thanks day, joining fourth Thank financial results

the us CEO, Treasurer. and Steve Sterling's Joining myself from management Tom Chairman, and Officer O'Brien, Financial Chief are Huber, President chairman, and today

that uncertainties. begin, we forward-looking remind financial with information to respect to of statements release within performance condition this the and and that you which Before you like involve Sterling contained is we Bancorp the Further to I'd contains conference risks future press call review. encourage

management to financial to for which O'Brien. to are the the and time, to be other Additionally, on as The intended substitute comparable non-GAAP this I'd directly like available not measures. quantitative as GAAP GAAP information but refer Tom of may today, a reconciliation most press non-GAAP over discussed to contains to well At website measures measures. turn release supplement the call Tom?

Tom O'Brien

good and for press had, you afternoon, Thanks Steve Thanks Sterling two today. probably releases joining as know, us. everyone.

about you pending those are The we're expensive. was lot awful this of a they pleased they And but course, action that out first the that are imagine, one settlement thing morning, class of very announce consume an to lawsuit. can first probably And as the went distraction, things of time.

is cost the by banks that. of pleased the But process. delay, also a settlement And we're is anyhow, takes noted press notes accordingly. although And the is But So to release court. the this certainly in very approval of that months resolution of through couple it release to as insurers. much the come outcome that resulting the press get about optimistic borne the too the without through will subject entire we're

a fourth reserves those of in so in quarter. and were the released had some to up earlier we set $XX And as consequence, XXXX, million

of to Financially benefits. done we've has I is said we that were under resolution, as of are kind this the expenses the account in remain lower. The as action OpEx legal But the we being noise We the with at the disappear. primarily amount quarter. so with that see as optimistic margins level have in $XX.X with fourth be that take we the the done. increase still for but into think in of our balance point recovery, have some But year to noticeable million way And measurable to thing the second technology I the and fair of probably progress in of I the done But running and explanatory. the loan still loss full guess to is made line quarter allowance paid consulting normal a find I comes results. fourth and work just We're certainly work its compliance you'll full provision; with course, ground provision here the profile XXXX, million think I total the calls, XXXX the concern though the for we a XXXX. most still all half progress get to meaningful underestimate The Those quarter coupled legacy components they focus start they to the of made. was us apologize the financial And there will loans in the noisy, of do few and the self in allowance portfolio. we're second reflects done high San to class on extent, XXXX But cost release, and of a work pressure, the I area. pretty the lot quarter out. a far credit don't of advantage of construction due bank amount banks of that. X.X% concern just pleased and a risk bank. we Expenses, of will the loan But the rates. even to concern some our work loans, And being that. work very liquidity as with are And on $XX remedial as the and underlying remain of quarter, our in SRO how various quarter fair course interest they're previous about mentioned reflect as loans. in ahead Francisco low the at sheet, Of loans. the different some in degree

you we as Nonperforming circumstance was as done going stubbornly the down much read also about moved we took loans fourth - probably in as $XX high. the thought those. this million in frankly, press give and prudent it, the more are would XXXX which permit. loans get on us of There some help flexibility move held and of just $XX circumstances So aggressively in worth there of in write as a and into forward quarter out course, to sale as release, million allow to for remains TDRS

very had the is goal And who then on director Barry of side, liquidate the think governance longtime resignation the of Sterling, a Barry longtime I loans board. of XX And committee. either been accepted late of early Allen, we a in years this part those the total of audit Our had quarter the Chairman on the to or QX.

subject the Board. we And sorry of our leave, as him and regulator. did management with we us have Tracey require. And and that moving for of the that objections effort And bank level soon all the the from in governance Tracey oversight non Dedrick need we that announce our So to were the providing receive the understand is his to of we regulatory but as the terms forward company to appointment desire join see will and approvals, some to some that, time himself.

with what's on announce just everybody's that, we're I be and most so So to going see just maybe to up, if beneficial it some probably mind. And it's open we'll take Operator, here. questions pleased that.

Operator

first question will [Operator Gerlinger Ben Group. with Hovde Instructions] from The be

BenGerlinger

good Hi, guys. afternoon,

So your settlement, quarter I have reduction the forward. is fourth you the should now, was step baked just January of of fees. have So of a And that. could since steady story up professional apply? kind after sizable more into doesn't in you project as be elevated pending since that if curious, was little XX down. we levels? included third kind that from a pretty continue elevated a you pending fees professional and and have announced in that all I guidance XX% one of wondering to what was guess ramp current assume we that I now Or those my first of question. could that kind to hold settlement I follow in should going to just that's the today, do the down

TomO'Brien

Well, what not do have start hard a little GAAP to we too half predict. Ben there's Steve you think to to specific say the second get clarity, of should throw resolved, will any you trend don't said, year and know, it's they numbers more reduce. and then as there? just be generally I've And down fees point, want down. is I things But professional start in to in able Not the that legal I would I to because this the at

SteveHuber

a expecting as year, be end maybe your XXXX. compared not down would next a probably of More material them event Tom and to for XXXX. second in we're again third by the as Well, quarter second mentioned. to come as But much real first half

BenGerlinger

Yes.

Okay.

year if less full So a I XXXX, year full right. XXXXis about that get than third

SteveHuber

Correct.

BenGerlinger

some kind And rate how about where the talk the quarter off the percentage about what's then could if the positives in quarter to And of the was spot of XX amount XX. I bps I reduced few of in relative you to are the total coming yield? was question that then next from kind and third saw third guys by with and reassuring you the over curious kind another then are time to debt this? of see you them guys of had and do terms quarters the fourth deposits. just XXX of second

TomO'Brien

Yes. XXs and Steve, -- you talk

SteveHuber

Sure.

round so rate spot X% is X%. year under just around a hovering Our

deposit decrease particularly rates, markets. to in time the deposits and money continue We

we due to coming our those basically So through probably in take here. going reprice expecting to deposits XX% are deposits lot really XX% the and from anywhere of begin mature and as forward We move to do to effect we're reprice time to have the quarter, of about quarter reprice. first third a

many move lower we little the to bit. take down be are seen opportunity how rates that It'll on to remain that just expected So of a cost recently to of set bring or the we've us new those as the they deposits if of bank market. some to money we're leave a with deposit expecting But renew those well. time a in to still altogether stick

BenGerlinger

XX% XX%. deposit quarter, you to I the And sure a just or Got in time it. was That's I right. off is got it per that quarter totality? basically said making

SteveHuber

give might it in more terms. I clear It if -- put little a be dollar

repricing in about quarter, first quarter. million $XXX have second approximately the in the third quarter $XXX We $XXX million the in million and

Operator

will be from question Cucharale with Jaffray. Piper Nick The next

NickCucharale

Hope gentlemen. been you've afternoon, Good well.

way? come to a feel liquidity So process repurchases position, mortgage to the that early you start that I grow, wanted once XXXX. will which given continues Do with for in liquidity in optimism meaningful concludes, down

TomO'Brien

margin. on don't And it's say that we absolutely. Yes, would obviously see And signs a big anytime of drag changing I soon. any

mentioned, So CDs as maturing. got significant Steve we've some

probably be balance sheet then get funded, loans size frankly quarter April. somewhat. very bring these early goal to would or repurchase late this our And the in So down

NickCucharale

of similar that in that in the quarter. is predominantly terms loan Okay. to guys then Are products you offer? And originations last the originations tick amount

TomO'Brien

loans. has to us. the done They've common tenants the we've on and loans, fund been but we And commitments And predominantly there. product construction been then some bulk residential continue of

Operator

question with from Capital next American Partners. come Polini Anthony The will

AnthonyPolini

guys. Hey,

you You by quarter were actually love actually good depressed beat had our but $XXX,XXX. we a that revenue -- I projections

TomO'Brien

Star. I Gold know on

AnthonyPolini

still far it's at activity it? know, And the than the early more of is quality use you'd Tom, analogy front cleanup this. just you a little like that a end as key you full? As garbage in truck whether analogy have are here. with to And is credit of hell a the dumping having want Obviously, experience And point? or garbage now innings? baseball is we I this Or lot I issue a a that truck know, process

TomO'Brien

More concerns, than the years, kind I the space, hard do XXXX the of originations as that's impact is we I in be insignificant. to And guided I with commercial over caught going be be I there's not calls between community will construction to are generally mentioned philosophy want Coronavirus. think of of short. just I few last But mean, and my where the a I've the I a I that and at aggressiveness to Sterling. to mean fair portfolio, the kind I'll predict. of of Sterling. that speak reckoning with some on the have coupled think think it's throughout bank prior few kind question. level don't

very have There loans now them think being million and on awful about and they're and I backlog last very and very, We're loans just that. or Gives not I about the identified just done about when bank. if the X% to it. come to release. So of we've number months. I'm us the we're almost work that by risk was correct It's team, I that that few reviewing rating flexibility through or There's a of would a do as got press days. in okay got loans them, status to joined of loans we aggressive those of reserved. identifying I've with the find terms we're will But say review, loans tell through $XX you and I rub going passed, looking into It's got deliberate the maturity and of a feeling an it. another problems large going we've good strategy. total whether extend to at carefully XX lot are thorough another

the specific perspective a of saying, way at from heading think into the least stretch. like we're that's Sterling I'd So Anthony, to long

AnthonyPolini

next Sounds provision like a we in have quarter. the might lower

TomO'Brien

higher. not it's Well,

AnthonyPolini

guys. All right,

but you're I fun. think process, great way. the the doesn't any job. job, you're it you're it familiar not make congrats, -- I doing good more I And a by know know very with

TomO'Brien

in fun the comes later Now the game. much

Operator

Jeremy from DCW with Supporter. is question next The Chu,

UnidentifiedAnalyst

Hi, are Good. Tom, how you?

and of criticizing high. stubbornly curious level the loans read What level criticize Just is is of I classify classified?

SteveHuber

the got so portfolio. I significantly Yes, it's and construction on I'm going head with to, it a SRO Steve, and combination my Tom -- numbers run. really mean, in commercial. I of concern many it's residential. get mentioned commercial But

UnidentifiedAnalyst

ideas rough have level. Yes, so you of must

SteveHuber

I think it's about XXX, Chu.

UnidentifiedAnalyst

XXX ,okay.

TomO'Brien

If that's get to back you. we'll not right,

UnidentifiedAnalyst

it. appreciate Okay,

TomO'Brien

has He about right.

UnidentifiedAnalyst

with as $XX You associated write-down basis cost for loans of reclassified those with What million also you is held loans? sale. said mortgage a nonperforming

TomO'Brien

$X.X that. in It think like was I something million million. $XX.X about value. $XX million

SteveHuber

wrote XX% And million. we which $X.X Yes, discount that's correct. then it approximately by down was

UnidentifiedAnalyst

it. to looking I Got you're loans sell guess. Presumably, these

TomO'Brien

We indeed. are

UnidentifiedAnalyst

are These to one four family mortgages.

TomO'Brien

Exactly.

UnidentifiedAnalyst

values the to property. sold gone are made fairly compared rationale value family can four of It down? has par, one they Given write work to guess? I up be overall loans the can Why behind low what’s and the the as LTV you -- at

SteveHuber

that's if that's a bit If take it. I'll

UnidentifiedAnalyst

home value still these price Are loans of the of have market the loans price? -- these above

SteveHuber

tell Yes, me you my let thinking.

important advantage loans are a you Let financial. that thinking entirely me of nonaccrual felt would of my I be all lot Basically These those are and reasons. and tell not advantage the it's for loans. all it

some portfolio have room investors, plenty secured. the to this this advantage be what of very It to The coverages very The discovery price them. of some the us comfort have collateral in and regulators, okay, appraisals that know loan. good. of are think gives all are. at look bottom you we barrel by bankers say, factors is helpful They these well I that because of of the degree all as would If are

their be But like, outlined, so well of financially And provides then it they're the test. with felt go okay, from to benefits. a little more time to a might I normal to for non might course, they period It's be a basis. do spend And some it just beneficial a it resources. whole. get perspective, get just at, through And as a foreclosure I healthy need return. and paid wouldn't and process spend to got it And on look through it say, financial up reasons investor wiser they've going this the and expedited an go out in I more bit of put And think I process and the argue that said, to opinion. pretty time might money, I you you

out. these. So thinking on we'll that's see that's it my, plays how my But

UnidentifiedAnalyst

focus loans Okay forward, you of have new terms of I thinking areas and guess for you in business making you to the are thinking any going areas then worth banks it? that do of continue about

TomO'Brien

on going at our internally regulator, agreement, the question that, the board, commitment all have they struggle the focus and to that's address formal take the requirements we the Yes, lot a we necessary energy. with. of kind our But as of remedial are time moment, are to of the to actions to to and the and and

So do help a balance buying just list, this we the fairly healthy back from premature lot loans when income a products, an loan developing there's perspective, read got time be to agreement, if formal it's a you lot. there. these quarter, document, public awful here, There's just to for statement but us in going have the to to sitting sheet will spending we're it's

the So beginning we kid underlying to this forward. a the been don't it amount when that's there's we of summer. it was on the insignificant strong in time we've timeline lost, got not agreement, announced just of XXXX; the there's this where focus of kind at that you going progress. of why if look candor, But fair an of there's getting that I a lot ourselves amount And point to said do past a at formal

to So that. up got make for

way back of our before more saying broken businesses fix So parts that's again, strategic long a to we is into priority the get

Operator

conference back to remarks. O'Brien gentlemen, and Tom I'd turn like our question-and-answer over any for concludes Ladies session. this to the closing

Tom O'Brien

promise follow of ask my the now appreciate deliver. in certainly appreciation some all those to We board to but and is us and We over company and it. to you goal commitment. invest of under and our your just management, your the like express interest who Thank patience, for and to

near talk So future. do in you that to participating thank is we're the the Thanks forward trying look but opportunities to operator. to you. what Thank I for today.

Operator

now presentation. for sir. Thank Thank you, concluded. attending conference today's you has The

You may disconnect. now