Sterling Bancorp, Inc. (SBT) Market Cap
Sterling Bancorp, Inc. has a market capitalization of $253.1M.
Financials based on reported quarter end 2024-12-31
Price: $4.84
▼ -0.04 (-0.82%)
Market Cap: 253.13M
NASDAQ · time unavailable
CEO: Thomas M. O'Brien
Sector: Financial Services
Industry: Banks - Regional
IPO Date: 2017-11-16
Website: https://www.sterlingbank.com
Sterling Bancorp, Inc. (SBT) - Company Information
Market Cap: 253.13M · Sector: Financial Services
Sterling Bancorp, Inc. (Southfield, MI) operates as the unitary thrift holding company for Sterling Bank and Trust, F.S.B. that provides community banking services to individuals and businesses. It offers checking, savings, and money market accounts, as well as IRAs and certificates of deposit; and one- to four-family residential, commercial, commercial real estate, construction, and consumer loans, as well as commercial lines of credit. The company also provides retail banking services. It operates through a network of 28 branches in San Francisco and Los Angeles, California; New York, New York; and Southfield, Michigan. The company was founded in 1984 and is headquartered in Southfield, Michigan.
Analyst Sentiment
Based on 3 ratings
Analyst 1Y Forecast: $0.00
Average target (based on 1 sources)
Consensus Price Target
Low
$3
Median
$5
High
$6
Average
$5
Downside: -7.0%
Price & Moving Averages
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Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"SBT reported a revenue of $33.7M and a net income of $1.16M as of December 31, 2024. The company has a total asset base of $2.44B, with total liabilities of $2.1B, resulting in total equity of $333.96M and a favorable net debt position of -$866.59M, indicating strong liquidity. However, SBT is experiencing negative cash flow, with operating cash flow of -$4.15M and free cash flow also at -$4.16M, a concerning sign for potential investors. The firm has not paid dividends since 2020, having issued minimal payments previously. The stock shows no current price as it's possibly not trading or is newly listed. The absence of cash flow and dividends, combined with a struggling revenue situation, suggests careful consideration. Market performance is unknown as there is no 1-year change available."
Revenue Growth
Revenue of $33.7M indicates stable income, but growth trends are not clear.
Profitability
Net income of $1.16M shows modest profitability, although overall financial health appears fragile.
Cash Flow Quality
Negative operating and free cash flow indicate liquidity risks.
Leverage & Balance Sheet
Strong balance sheet with negative net debt provides good capital structure.
Shareholder Returns
No recent dividends and poor cash flow cast doubt on shareholder returns.
Analyst Sentiment & Valuation
Price targets suggest potential upside, but current price performance is unclear.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
So What?: SBT is operating near breakeven with improving expense trends after major legal overhangs unwind—DOJ confirmed closure in Q2. The candid pressure point in the Q&A is cost stickiness from professional fees: legal/compliance totaled ~$2.1M in Q2 (about $1.3M legal + ~$0.8M other professional fees) and management suggested it may still average roughly ~$1.8M per quarter over the next couple quarters. Asset quality is the counterweight to concerns: commercial credit is essentially clean (maturities/renewals only), while residential stress is limited to ~4 loans in foreclosure and management claims no realized losses. For margin, the bull case depends on rates: management expects benefit as liabilities reprice with lower rates (possible September cut), but does not expect large prepayment swings because the residential book is already in adjustable-rate periods. Analyst pressure focused on whether costs will drop faster than management implied and whether rate declines materially change prepayment behavior.
Growth Catalysts
- Lower-rate environment expected to improve net interest margin as liabilities reprice (management expects benefit from reduced funding costs)
Business Development
- No residential loan origination; will focus on commercial opportunities as they arise
Financial Highlights
- Operating at a breakeven level (plus/minus a few pennies) in Q2 2024
- Wholesale funding run-off completed: $50 million Home Loan Bank advance called in the quarter; management indicates no remaining wholesale funding outstandings
- Cost/investigation drag easing: DOJ investigation closed during the quarter (explicit reduction in uncertainty and related costs going forward)
- Legal/compliance professional fees: ~$1.3 million legal + ~$800k other professional fees in Q2; includes a couple hundred thousand tied to investigation-related matters
- Forward-looking legal fee run-rate: management/finance indicated legal + related professional fees could average ~ $1.8 million per quarter for the next couple of quarters (going forward), versus earlier discussion of ~$1.5M average
- Expense guidance: management previously referenced ~$14 million-ish quarterly expense level and expects gradual convergence; Q2 run-rate expected to remain similar with only a couple hundred thousand swing either way
- Asset quality: delinquencies/credit stress characterized as minimal; commercial portfolio has virtually no delinquencies (maturities/renewals/payoffs only)
- Residential credit: ~4 loans in foreclosure (vs earlier expectation for delinquencies), and management stated they have not lost money on residential foreclosure to date
Capital Funding
- No mention of buybacks or new debt levels; liquidity/capital characterized as strong
Strategy & Ops
- Expenses peaking and trending down due to beginning-of-year cost cutting and reduced investigation-related fees after DOJ closure
- Risk posture: management emphasized caution in loan growth to protect book value and balance sheet integrity
- Residential: no new originations; emphasis that existing residential book is largely adjustable-rate, supporting stable prepayment behavior
Market Outlook
- Rate-cut timing: management suggested momentum toward lower rates and referenced 'one rate cut this year' possibly as 'we get into September'
- Margin sensitivity scenario: asked about hypothetical 0.5-point drop in September to 0.25-point drops thereafter; management expects margin help from lower rates via liability repricing
Risks & Headwinds
- Macro/credit headwinds: weakness in office and some overbuilding/multifamily areas; specific pressure in Metro New York rent-regulated multifamily due to hammered values
- Residential credit volatility risk: residential collateral is described as volatile/slow pays possible, though nonaccruals are small and largely residential
- Prepayment/margin uncertainty tied to rate changes: management sees no material change in residential prepayment levels because adjustable-rate payments adjust already; commercial impact depends on how quickly more banks enter to provide lower-rate credit (expected slow)
Sentiment: MIXED
Note: This summary was synthesized by AI from the SBT Q2 2024 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.