Q2 2024 Sterling Bancorp Inc Earnings Call Transcript
Key Points
- Sterling Bancorp Inc (SBT) has successfully ended all forms of wholesale funding, including a $50 million Home Loan Bank advance.
- Expenses are trending in the right direction due to cost-cutting measures and the conclusion of various investigations.
- The Department of Justice has closed its investigation, reducing legal and compliance costs.
- Capital and liquidity remain strong, positioning the bank well for future opportunities.
- Credit conditions are mild, with reserve levels remaining healthy and asset quality described as pristine.
- The company is operating at a breakeven level, with minimal profit margins.
- The cost of liquidity remains relatively high, impacting overall financial performance.
- There is no current plan to originate residential loans, limiting growth opportunities in that sector.
- The commercial real estate market is cautious, with potential weaknesses in office spaces and overbuilt multifamily areas.
- Noninterest expenses, including professional fees, remain significant, with an estimated $1.8 million expected in the next few quarters.
Good morning, everyone. Thank you for joining us today to discuss Sterling Bancorp's financial results for the second quarter ended June 30, 2024. Joining us today from Sterling's management team are Tom O'Brien, Chairman, CEO, and President; and Karen Knott, Chief Financial Officer and Treasurer. Tom will discuss the second quarter results, and then we'll open the call to your questions. Before we begin, I'd like to remind you that this conference call contains forward-looking statements with respect to the future performance and financial condition of Sterling Bancorp and the banking industry generally that involves risks and uncertainties.
For a complete discussion of forward-looking statements and factors that could cause actual results to differ from those two statements, the company encourages all participants to refer to its SEC filings especially those on Forms 8-K, 10-Q and 10-K and the press release issued in conjunction with this conference call, which applies to any forward-looking statements made on this call. The company disclaims any obligation to update any forward-looking
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