Sterling Bancorp reports Q1 EPS 10c, consensus 9c

Net Interest Income and Net Interest Margin - Net interest income for the first quarter of 2022 was $21.3M compared to $21.7M for the fourth quarter of 2021 and $23.2M for the first quarter of 2021. The decline in net interest income was due primarily to a decline in the average balance of our loan portfolio of $170.9 million, or 8%, from $2.2 billion in the fourth quarter of 2021 to $2.0 billion in the first quarter of 2022, while the average balance of lower-yielding securities and other interest-earning liquid assets in the first quarter of 2022 increased $17.7 million, or 2%, to $802.8 million compared to $785.1 million in the fourth quarter of 2021. The overall decline in interest income on interest earning assets was partially offset by a decrease in interest expense since our average rate paid on interest-bearing deposits declined from 0.47% in the fourth quarter of 2021 to 0.43% in the first quarter of 2022. Our average interest-bearing deposits decreased $58.6 million in the first quarter of 2022 from $2.2 billion in the fourth quarter of 2021. Additionally, total average interest-bearing liabilities decreased in the first quarter of 2022 due to our repayment of borrowings of $157.0 million with the FHLB in the fourth quarter of 2021. The net interest margin of 3.03% for the first quarter of 2022 increased compared to 2.94% for the fourth quarter of 2021 and 2.45% for the first quarter of 2021. The increase in our net interest margin in the first quarter of 2022 was favorably impacted by an increase in the average rate on interest earning assets of 4 basis points and a decrease in the cost of average interest-bearing liabilities of 4 basis points, each as compared to the immediately prior quarter. The increase in the average rate on interest earning assets in the first quarter of 2022 related to interest collected from nonperforming commercial real estate loans and construction loans. ."Sterling's first quarter of 2022 produced several improvements and milestones. Most importantly, our credit quality metrics continue the improvement that we have witnessed over the past few quarters. This was accomplished by both the continued hard work of our credit loss mitigation efforts and the successful sale of higher risk single room occupancy loans with original balances of approximately $62 million. Additionally, we continued to make meaningful progress on resolving the multiple regulatory matters as contained in our Formal Agreement with the OCC. The volume of remedial work remains substantial but the progress to date has been significant," said Thomas M. O'Brien, Chairman, President, and Chief Executive Officer.