Company Quick10K Filing
Quick10K
Sterling Bancorp
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$10.04 52 $521
10-Q 2019-06-30 Quarter: 2019-06-30
10-Q 2019-03-31 Quarter: 2019-03-31
10-K 2018-12-31 Annual: 2018-12-31
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
8-K 2019-07-29 Earnings, Exhibits
8-K 2019-07-19 Regulation FD, Exhibits
8-K 2019-06-18 Enter Agreement
8-K 2019-06-18 Officers, Exhibits
8-K 2019-05-23 Shareholder Vote
8-K 2019-05-21 Regulation FD, Exhibits
8-K 2019-05-13 Regulation FD, Exhibits
8-K 2019-04-29 Earnings, Exhibits
8-K 2019-02-11 Regulation FD, Exhibits
8-K 2019-01-28 Earnings, Exhibits
8-K 2019-01-28 Earnings, Exhibits
8-K 2018-11-07 Regulation FD, Exhibits
8-K 2018-10-29 Earnings, Exhibits
8-K 2018-10-17 Regulation FD, Exhibits
8-K 2018-08-27 Regulation FD, Exhibits
8-K 2018-08-13 Regulation FD, Exhibits
8-K 2018-07-30 Earnings, Exhibits
8-K 2018-05-15 Shareholder Vote
8-K 2018-04-30 Earnings, Exhibits
8-K 2018-03-21 Officers, Exhibits
8-K 2018-03-06 Regulation FD, Exhibits
8-K 2018-02-20 Officers, Exhibits
8-K 2018-02-15 Other Events, Exhibits
8-K 2018-01-31 Regulation FD, Exhibits
8-K 2018-01-30 Earnings, Exhibits
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MFA MFA Financial 3,320
KN Knowles 1,660
AEI21 AEI Income & Growth Fund XXI 0
VBIO Vitality Biopharma 0
FVTI Fortune Valley Treasures 0
SEGN Success Entertainment Group 0
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SBT 2019-06-30
Part 1. Financial Information
Item 1. Financial Statements
Note 1-Nature of Operations and Basis of Presentation
Note 2-New Accounting Standards
Note 3-Summary of Significant Accounting Policies
Note 4-Investment Securities
Note 5-Loans
Note 6-Mortgage Servicing Rights, Net
Note 7-Deposits
Note 8-Federal Home Loan Bank Borrowings
Note 9-Subordinated Notes, Net
Note 10-Stock Repurchase Program
Note 11-Stock-Based Compensation
Note 12-Income per Share
Note 13-Fair Values of Financial Instruments
Note 14-Regulatory Capital Requirements
Note 15-Related Party Transactions
Note 16-Operating Leases
Note 17-Commitments and Contingencies
Note 18-Subsequent Events
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 6. Exhibits
EX-10.1 a19-10384_1ex10d1.htm
EX-31.1 a19-10384_1ex31d1.htm
EX-31.2 a19-10384_1ex31d2.htm
EX-32.1 a19-10384_1ex32d1.htm
EX-32.2 a19-10384_1ex32d2.htm

Sterling Bancorp Earnings 2019-06-30

SBT 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q 1 a19-10384_110q.htm 10-Q

Table of Contents

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


 

FORM 10-Q

 

x      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2019

 

OR

 

o         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from           to        

 

Commission File Number 001-38290

 

Sterling Bancorp, Inc.

(Exact name of registrant as specified in its charter)

 

Michigan

 

38-3163775

(State or other jurisdiction of

 

(I.R.S. Employer

incorporation or organization)

 

Identification Number)

 

One Towne Square, Suite 1900

Southfield, Michigan 48076

(248) 355-2400

(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)

 

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Common stock, no par

 

SBT

 

The NASDAQ Stock Market LLC

value per share

 

 

 

(NASDAQ Capital Market)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x  No o

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x  No o

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer o

 

Accelerated filer x

 

Non-accelerated filer o

 

Smaller reporting company x

 

 

 

 

 

 

Emerging growth company x

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. x

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o  No x

 

As of August 5, 2019, there were 50,517,078 shares of the Registrant’s Common Stock outstanding.

 

 

 


Table of Contents

 

STERLING BANCORP, INC.

FORM 10-Q

INDEX

 

PART I — FINANCIAL INFORMATION

Item 1.

Financial Statements (Unaudited)

 

 

Condensed Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018

2

 

Condensed Consolidated Statements of Income for the three and six months ended June 30, 2019 and 2018

3

 

Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2019 and 2018

4

 

Condensed Consolidated Statements of Changes in Shareholders’ Equity for the three and six months ended June 30, 2019 and 2018

5

 

Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2019 and 2018

6

 

Notes to the Condensed Consolidated Financial Statements (Unaudited)

7

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

30

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

41

Item 4.

Controls and Procedures

43

 

 

 

PART II — OTHER INFORMATION

Item 1.

Legal Proceedings

43

Item 1A.

Risk Factors

43

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

43

Item 6.

Exhibits

45

Exhibit Index

 

45

SIGNATURES

 

46

 

1


Table of Contents

 

Sterling Bancorp, Inc.

Condensed Consolidated Balance Sheets (Unaudited)

(dollars in thousands)

 

PART 1. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

 

 

 

June 30,

 

December 31,

 

 

2019

 

2018

 

 

 

 

 

Assets

 

 

 

 

Cash and due from banks

 

  $

80,416

 

  $

52,526

Interest-bearing time deposits with other banks

 

1,100

 

1,100

Investment securities

 

153,449

 

148,896

Mortgage loans held for sale

 

500

 

1,248

Loans, net of allowance for loan losses of $20,918 and $21,850

 

2,924,813

 

2,895,953

Accrued interest receivable

 

13,842

 

13,529

Mortgage servicing rights, net

 

9,772

 

10,633

Leasehold improvements and equipment, net

 

9,675

 

9,489

Operating lease right-of-use assets

 

20,454

 

Federal Home Loan Bank stock, at cost

 

22,950

 

22,950

Cash surrender value of bank-owned life insurance

 

31,606

 

31,302

Deferred tax asset, net

 

6,440

 

6,122

Other assets

 

4,115

 

3,026

Total assets

 

  $

3,279,132

 

  $

3,196,774

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

Liabilities:

 

 

 

 

Noninterest-bearing deposits

 

  $

70,406

 

  $

76,815

Interest-bearing deposits

 

2,476,254

 

2,375,870

Total deposits

 

2,546,660

 

2,452,685

Federal Home Loan Bank borrowings

 

240,000

 

293,000

Subordinated notes, net

 

65,102

 

65,029

Operating lease liabilities

 

21,480

 

Accrued expenses and other liabilities

 

63,837

 

51,003

Total liabilities

 

2,937,079

 

2,861,717

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

Preferred stock, authorized 10,000,000 shares; no shares issued and outstanding

 

 

Common stock, no par value, authorized 500,000,000 shares; issued and outstanding 50,846,521 and 53,012,283 shares at June 30, 2019 and December 31, 2018, respectively

 

89,683

 

111,238

Additional paid-in capital

 

12,992

 

12,713

Retained earnings

 

239,190

 

211,115

Accumulated other comprehensive income (loss)

 

188

 

(9)

Total shareholders’ equity

 

342,053

 

335,057

Total liabilities and shareholders’ equity

 

  $

3,279,132

 

  $

3,196,774

 

See accompanying notes to condensed consolidated financial statements.

 

2


Table of Contents

 

Sterling Bancorp, Inc.

Condensed Consolidated Statements of Income (Unaudited)

(dollars in thousands, except per share amounts)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

 

 

2019

 

2018

 

2019

 

2018

Interest income

 

 

 

 

 

 

 

 

Interest and fees on loans

 

  $

43,301

 

  $

38,580

 

  $

85,023

 

  $

74,980

Interest and dividends on investment securities and restricted stock

 

1,272

 

842

 

2,499

 

1,661

Other interest

 

216

 

119

 

452

 

233

Total interest income

 

44,789

 

39,541

 

87,974

 

76,874

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

 

 

 

 

 

Interest on deposits

 

11,524

 

7,179

 

22,180

 

13,768

Interest on Federal Home Loan Bank borrowings

 

1,375

 

1,334

 

2,430

 

2,167

Interest on subordinated notes

 

1,175

 

1,171

 

2,349

 

2,343

Total interest expense

 

14,074

 

9,684

 

26,959

 

18,278

 

 

 

 

 

 

 

 

 

Net interest income

 

30,715

 

29,857

 

61,015

 

58,596

Provision (recovery) for loan losses

 

180

 

1,120

 

(834)

 

1,761

Net interest income after provision (recovery) for loan losses

 

30,535

 

28,737

 

61,849

 

56,835

 

 

 

 

 

 

 

 

 

Non-interest income

 

 

 

 

 

 

 

 

Service charges and fees

 

112

 

92

 

216

 

166

Investment management and advisory fees

 

425

 

500

 

765

 

1,123

Loss on sale of investment securities

 

 

(3)

 

 

(3)

Gain on sale of mortgage loans held for sale

 

142

 

28

 

180

 

93

Gain on sale of portfolio loans

 

1,860

 

5,068

 

4,302

 

9,009

Unrealized gains (losses) on equity securities

 

57

 

(30)

 

106

 

(94)

Net servicing income (loss)

 

(1,002)

 

233

 

(677)

 

710

Income on cash surrender value of bank-owned life insurance

 

315

 

295

 

625

 

590

Other

 

159

 

114

 

379

 

196

Total non-interest income

 

2,068

 

6,297

 

5,896

 

11,790

 

 

 

 

 

 

 

 

 

Non-interest expense

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

7,381

 

7,229

 

14,648

 

13,878

Occupancy and equipment

 

2,170

 

1,610

 

4,407

 

3,156

Professional fees

 

1,104

 

824

 

2,066

 

1,446

Advertising and marketing

 

406

 

351

 

845

 

700

FDIC assessments

 

190

 

474

 

445

 

1,017

Data processing

 

303

 

295

 

611

 

583

Other

 

2,171

 

1,838

 

3,825

 

3,344

Total non-interest expense

 

13,725

 

12,621

 

26,847

 

24,124

 

 

 

 

 

 

 

 

 

Income before income taxes

 

18,878

 

22,413

 

40,898

 

44,501

Income tax expense

 

5,444

 

6,431

 

11,781

 

12,770

Net income

 

  $

13,434

 

  $

15,982

 

  $

29,117

 

  $

31,731

 

 

 

 

 

 

 

 

 

Income per share, basic and diluted

 

  $

0.26

 

  $

0.30

 

  $

0.56

 

  $

0.60

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

51,510,951

 

52,963,308

 

52,029,816

 

52,963,308

Diluted

 

51,520,944

 

52,965,365

 

52,039,000

 

52,965,133

 

 

See accompanying notes to condensed consolidated financial statements.

 

3


Table of Contents

 

Sterling Bancorp, Inc.

Condensed Consolidated Statements of Comprehensive Income (Unaudited)

(dollars in thousands)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

 

 

2019

 

2018

 

2019

 

2018

 

 

 

 

 

 

 

 

 

Net income

 

  $

13,434

 

  $

15,982

 

  $

29,117

 

  $

31,731

Other comprehensive income, net of tax:

 

 

 

 

 

 

 

 

Unrealized gains on investment securities, arising during the period, net of tax effect of $35, $17, $77, and $14, respectively

 

91

 

66

 

197

 

53

Reclassification adjustment for losses included in net income of $-, $3, $-, and $3, respectively, in loss on sale of investment securities, net of tax effect of $-, $(1), $-, and $(1), respectively

 

 

2

 

 

2

Total other comprehensive income

 

91

 

68

 

197

 

55

Comprehensive income

 

  $

13,525

 

  $

16,050

 

  $

29,314

 

  $

31,786

 

 

See accompanying notes to condensed consolidated financial statements.

 

4


Table of Contents

 

Sterling Bancorp, Inc.

Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

Additional

 

 

 

Other

 

Total

 

 

 

Common Stock

 

Paid-in

 

Retained

 

Comprehensive

 

Shareholders’

 

 

 

Shares

 

Amount

 

Capital

 

Earnings

 

Income (Loss)

 

Equity

 

Balance at January 1, 2018

 

52,963,308

 

  $

111,238

 

  $

12,416

 

 $

149,816

 

  $

(172)

 

  $

273,298

 

Cumulative effect adjustment, reclassification of unrealized losses on equity securities

 

 

 

 

(50)

 

50

 

 

Net income

 

 

 

 

15,749

 

 

15,749

 

Stock-based compensation

 

39,655

 

 

9

 

 

 

9

 

Other comprehensive loss

 

 

 

 

 

(13)

 

(13

)

Dividends distributed ($0.01 per share)

 

 

 

 

(531)

 

 

(531

)

Balance at March 31, 2018

 

53,002,963

 

111,238

 

12,425

 

164,984

 

(135)

 

288,512

 

Net income

 

 

 

 

15,982

 

 

15,982

 

Stock-based compensation

 

 

 

76

 

 

 

76

 

Other comprehensive income

 

 

 

 

 

68

 

68

 

Dividends distributed ($0.01 per share)

 

 

 

 

(528)

 

 

(528

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at June 30, 2018

 

53,002,963

 

  $

111,238

 

  $

12,501

 

 $

180,438

 

  $

(67)

 

  $

304,110

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at January 1, 2019

 

53,012,283

 

  $

111,238

 

  $

12,713

 

 $

211,115

 

  $

(9)

 

  $

335,057

 

Net income

 

 

 

 

15,683

 

 

15,683

 

Repurchases of shares of common stock (Note 10)

 

(1,212,574)

 

(11,544)

 

 

 

 

(11,544

)

Stock-based compensation

 

71,144

 

 

126

 

 

 

126

 

Other comprehensive income

 

 

 

 

 

106

 

106

 

Dividends distributed ($0.01 per share)

 

 

 

 

(526)

 

 

(526

)

Balance at March 31, 2019

 

51,870,853

 

99,694

 

12,839

 

226,272

 

97

 

338,902

 

Net income

 

 

 

 

13,434

 

 

13,434

 

Repurchases of shares of common stock (Note 10)

 

(1,034,792)

 

(10,011)

 

 

 

 

(10,011

)

Stock-based compensation

 

10,460

 

 

153

 

 

 

153

 

Other comprehensive income

 

 

 

 

 

91

 

91

 

Dividends distributed ($0.01 per share)

 

 

 

 

(516)

 

 

(516

)

Balance at June 30, 2019

 

50,846,521

 

  $

89,683

 

  $

12,992

 

 $

239,190

 

  $

188 

 

  $

342,053

 

 

 

See accompanying notes to condensed consolidated financial statements.

 

5


Table of Contents

 

Sterling Bancorp, Inc.

Condensed Consolidated Statements of Cash Flows (Unaudited)

(dollars in thousands)

 

 

 

Six Months Ended
June 30,

 

 

 

2019

 

2018

 

Cash Flows From Operating Activities

 

 

 

 

 

Net income

 

  $

29,117

 

  $

31,731

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

Provision (recovery) for loan losses

 

(834)

 

1,761

 

Deferred income taxes

 

(394)

 

927

 

Loss on sale of investment securities

 

 

3

 

Unrealized (gains) losses on equity securities

 

(106)

 

94

 

Accretion on investment securities, net

 

(883)

 

(253

)

Depreciation and amortization of leasehold improvements and equipment

 

796

 

639

 

Amortization of intangible asset

 

225

 

225

 

Originations, net of principal payments, mortgage loans held for sale

 

(16,248)

 

(18,641

)

Proceeds from sale of mortgage loans held for sale

 

16,940

 

17,559

 

Gain on sale of mortgage loans held for sale

 

(180)

 

(93

)

Gain on sale of portfolio loans

 

(4,302)

 

(9,009

)

Increase in cash surrender value of bank-owned life insurance, net of premiums

 

(304)

 

(311

)

Valuation allowance adjustments and amortization of mortgage servicing rights

 

2,723

 

788

 

Stock-based compensation

 

279

 

85

 

Other

 

71

 

69

 

Change in operating assets and liabilities:

 

 

 

 

 

Accrued interest receivable

 

(313)

 

(903

)

Other assets

 

(409)

 

(2,118

)

Accrued expenses and other liabilities

 

12,990

 

11,005

 

Net cash provided by operating activities

 

39,168

 

33,558

 

 

 

 

 

 

 

Cash Flows From Investing Activities

 

 

 

 

 

Maturities and principal receipts of investment securities

 

74,216

 

57,739

 

Sales of investment securities

 

 

2,778

 

Purchases of investment securities

 

(77,507)

 

(76,091

)

Loans originated, net of repayments

 

(147,189)

 

(395,415

)

Proceeds from the sale of portfolio loans

 

121,806

 

269,677

 

Purchase of leasehold improvements and equipment

 

(982)

 

(2,009

)

Net cash used in investing activities

 

(29,656)

 

(143,321

)

 

 

 

 

 

 

Cash Flows From Financing Activities

 

 

 

 

 

Net increase in deposits

 

93,975

 

95,495

 

Proceeds from advances from Federal Home Loan Bank

 

2,461,000

 

2,731,000

 

Repayments of advances from Federal Home Loan Bank

 

(2,514,000)

 

(2,719,000

)

Repurchases of shares of common stock

 

(21,555)

 

 

Dividends paid to shareholders

 

(1,042)

 

(1,059

)

Net cash provided by financing activities

 

18,378

 

106,436

 

Net change in cash and due from banks

 

27,890

 

(3,327

)

Cash and due from banks at beginning of period

 

52,526

 

40,147

 

Cash and due from banks at end of period

 

  $

80,416

 

  $

36,820

 

 

 

 

 

 

 

Supplemental cash flows information

 

 

 

 

 

Cash paid:

 

 

 

 

 

Interest

 

  $

22,734

 

  $

15,784

 

Income taxes

 

13,146

 

14,200

 

Noncash investing and financing activities:

 

 

 

 

 

Transfers of residential real estate loans to mortgage loans held for sale

 

119,233

 

198,184

 

Transfers of residential real estate loans from mortgage loans held for sale

 

103

 

26,329

 

Right-of-use assets obtained in exchange for new operating lease liabilitites

 

513

 

 

 

 

See accompanying notes to condensed consolidated financial statements.

 

6


Table of Contents

 

STERLING BANCORP, INC.
Notes to Condensed Consolidated Financial Statements (Unaudited)

(dollars in thousands, except per share amounts)

 

Note 1—Nature of Operations and Basis of Presentation

 

Nature of Operations

 

Sterling Bancorp, Inc. (the “Company”) is a unitary thrift holding company that was incorporated in 1989 and the parent company to its wholly owned subsidiary, Sterling Bank and Trust, F.S.B. (the “Bank”). The Company’s business is conducted through the Bank which was formed in 1984. The Bank originates construction, residential and commercial real estate loans, commercial lines of credit, and other consumer loans and provides deposit products, consisting primarily of checking, savings and term certificate accounts. The Bank operates through a network of 30 branches of which 26 branches are located in San Francisco and Los Angeles, California with the remaining branches located in New York, New York, Southfield, Michigan and the greater Seattle market.

 

The Company is headquartered in Southfield, Michigan and its operations are in the financial services industry. Management evaluates the performance of its business based on one reportable segment, community banking.

 

The Company is subject to regulation, examination and supervision by the Board of Governors of the Federal Reserve (“Federal Reserve”). The Bank is a federally chartered stock savings bank which is subject to regulation, supervision and examination by the Office of the Comptroller of the Currency (“OCC”) of the U.S. Department of Treasury and the Federal Deposit Insurance Corporation (“FDIC”) and is a member of the Federal Home Loan Bank (“FHLB”) system.

 

Basis of Presentation

 

The condensed consolidated balance sheet as of June 30, 2019, and the condensed consolidated statements of income, comprehensive income, changes in shareholders’ equity and cash flows for the three and six months ended June 30, 2019 and 2018 are unaudited. The unaudited condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and reflect all adjustments, in the opinion of management, of a normal recurring nature that are necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented. The financial data and other financial information disclosed in these notes to the condensed consolidated financial statements related to these periods are also unaudited. The results of operations for the three and six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ended December 31, 2019 or for any future annual or interim period. The consolidated balance sheet at December 31, 2018 included herein was derived from the audited consolidated financial statements as of that date. The accompanying unaudited consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

 

Note 2New Accounting Standards

 

Adoption of New Accounting Standard

 

The Company has adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) and all subsequent amendments as of January 1, 2019. Topic 842 requires a lessee to recognize the following for all leases, except short-term leases, at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Topic 842 also requires expanded disclosures.

 

Topic 842 permits entities to use a modified retrospective transition approach to apply the guidance as of the beginning of the earliest period presented in the financial statements in the period adopted or the optional transition method which allows entities to apply the new guidance at the adoption date and record a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, and not to restate the comparative periods presented.

 

The Company adopted Topic 842 as of January 1, 2019 using the optional transition method. Therefore, the comparative financial information has not been restated and continues to be reported under the accounting standards in effect for those periods. The adoption of the standard resulted in the recognition of operating lease right-of-use assets of $21,812 and operating lease liabilities of $22,682 on the condensed consolidated balance sheet as of January 1, 2019. The operating lease right-of-use assets includes the impact of unamortized lease incentives and deferred rent. The Company elected to apply the package of practical expedients upon transition, which includes no reassessment of whether existing contracts are or contain leases and allowed for the lease classification for existing leases to be retained. The Company did not elect the practical expedient to use hindsight in determining the lease term. After transition, in certain instances, the cost of renewal options will be recognized earlier in the term of the lease than under the

 

7


Table of Contents

 

STERLING BANCORP, INC.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(dollars in thousands, except per share amounts)

 

previous lease accounting rules. The Company elected the practical expedient to not separate non-lease components from the lease components contained in the operating lease agreements but instead to combine them and account for them as a single lease component and will continue to do so for its real estate operating leases. The new standard did not have a significant impact on the condensed consolidated statements of income or statements of cash flows in 2019.

 

The Company’s operating leases are included in operating lease right-of-use assets and operating lease liabilities in the condensed consolidated balance sheet at June 30, 2019. The lessors’ rate implicit in the operating leases were not available to the Company and were not determinable from the terms of the leases. Therefore, the Company’s incremental borrowing rate was used in determining the present value of the future lease payments when measuring the operating lease liabilities. The incremental borrowing rates were not observable and therefore, the rates were estimated primarily using observable borrowing rates on the Company’s FHLB advances. The FHLB borrowing rates are generally for over collateralized advances for varying lengths of maturity. Therefore, the risk-free U.S. Government bond rate and high-credit quality unsecured corporate bond rates were also considered in estimating the incremental borrowing rates. The Company’s incremental borrowing rates were developed considering its monthly payment amounts and the initial terms of its leases. These incremental borrowing rates were applied to future lease payments in determining the present value of the operating lease liability for each lease.

 

As stated, the comparative prior period information for the three and six months ended June 30, 2018 has not been adjusted and continues to be reported under the Company’s historical lease recognition policies under Topic 840, Leases.

 

The disclosure requirements of Topic 842 are included within Note 16, Operating Leases.

 

Recently Issued Accounting Guidance Not Yet Adopted

 

In August 2018, the Financial Accounting Standards Board (FASB) issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements for fair value measurements as follows: (1) removes the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, and the reporting entity’s policy for timing of transfers between levels; (2) removes the requirement to disclose the valuation processes for Level 3 fair value measurements; (3) clarifies that the measurement uncertainty disclosure for recurring Level 3 fair value measurements is to communicate information about the uncertainty in measurement as of the reporting date; (4) requires disclosure of the changes in unrealized gains and losses for the period included in other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period; and (5) requires disclosure of the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. ASU No. 2018-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. An entity is permitted to early adopt the provisions that remove or modify disclosures upon issuance of this ASU and delay adoption of the additional disclosures until the effective date. The Company is currently evaluating the impact adoption will have on its current fair value measurement disclosures.

 

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which is intended to improve financial reporting by requiring recording of credit losses on loans and other financial instruments on a more timely basis. The guidance will replace the current incurred loss accounting model with an expected loss approach and requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. In addition, this guidance modifies the other-than-temporary impairment model for available for sale debt securities to require an allowance for credit impairment instead of a direct write-down, which allows for a reversal of credit losses in future periods. The guidance requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, which clarifies and improves areas of guidance related to Topic 326. In May 2019, the FASB issued ASU 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief. The amendments provide entities with an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis, upon adoption of Topic 326. ASU No. 2016-13 is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2019. The Company has formed a cross-functional implementation team consisting of individuals from credit, finance and information systems. The implementation team has been working with a software vendor to assist in implementing required changes to credit loss estimation models and processes. The historical data set for model development has been finalized, and the credit loss estimation models are in the process of being developed and tested. The Company expects to recognize a cumulative effect adjustment to the opening balance of retained earnings as of the beginning of the first reporting period in which ASU No. 2016-13 is

 

8


Table of Contents

 

STERLING BANCORP, INC.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(dollars in thousands, except per share amounts)

 

effective. The Company has not yet determined the magnitude of any such one-time adjustment or the overall impact of ASU No. 2016-13 on its condensed consolidated financial statements.

 

Note 3—Summary of Significant Accounting Policies

 

Principles of Consolidation

 

The accompanying condensed consolidated financial statements have been prepared using accounting principles generally accepted in the United States of America (“U.S. GAAP’). The condensed consolidated financial statements include the results of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in the consolidation.

 

Use of Estimates

 

The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Due to the inherent uncertainty involved in making estimates, actual results reported in the future periods may be based upon amounts that could differ from those estimates.

 

Concentration of Credit Risk

 

The loan portfolio consists primarily of residential real estate loans which are collateralized by real estate. At June 30, 2019 and December 31, 2018, residential real estate loans accounted for 86% and 84%, respectively, of the loan portfolio. In addition, most of these residential loans and other commercial loans have been made to individuals and businesses in the state of California which are dependent on the area economy for their livelihoods and servicing of their loan obligation. Approximately 91% and 94% of the loan portfolio was originated in California at June 30, 2019 and December 31, 2018, respectively.

 

Reclassifications to Prior Periods’ Financial Statements

 

Certain prior period amounts have been reclassified to conform with the current period presentation. Net servicing income (loss) has been reclassified from other non-interest income and reported separately on the condensed consolidated statements of income.

 

Note 4—Investment Securities

 

Debt Securities

 

The following tables summarize the amortized cost and fair value of debt securities available for sale at June 30, 2019 and December 31, 2018 and the corresponding amounts of gross unrealized gains and losses:

 

 

 

June 30, 2019

 

 

 

Amortized

 

Gross Unrealized

 

Fair

 

 

 

Cost

 

Gain

 

Loss

 

Value

 

Available for sale:

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

147,279

 

$

248

 

$

(4

)

$

147,523

 

Collateralized mortgage obligations

 

1,356

 

39

 

 

1,395

 

Collateralized debt obligations

 

306

 

 

(22

)

284

 

Total

 

$

148,941

 

$

287

 

$

(26

)

$

149,202

 

 

 

 

December 31, 2018

 

 

 

Amortized

 

Gross Unrealized

 

Fair

 

 

 

Cost

 

Gain

 

Loss

 

Value

 

Available for sale:

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

142,905

 

$

9

 

$

(56

)

$

142,858

 

Collateralized mortgage obligations

 

1,554

 

46

 

 

1,600

 

Collateralized debt obligations

 

308

 

 

(11

)

297

 

Total

 

$

144,767

 

$

55

 

$

(67

)

$

144,755

 

 

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Table of Contents

 

STERLING BANCORP, INC.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(dollars in thousands, except per share amounts)

 

No securities of any single issuer, other than debt securities issued by the U.S. government were in excess of 10% of total shareholders’ equity as of June 30, 2019 and December 31, 2018.

 

There were no sales of debt securities available for sale during the three and six months ended June 30, 2019. The proceeds from sales of debt securities available for sale were $2,778 for the three and six months ended June 30, 2018. Gross realized losses on these sales were $3 for the three and six months ended June 30, 2018.

 

The amortized cost and fair value of debt securities available for sale issued by U.S. Treasury at June 30, 2019 are shown below by contractual maturity. Collateralized mortgage obligations and collateralized debt obligations are disclosed separately in the table below as the expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

 

 

 

Amortized
Cost

 

Fair
Value

 

U.S. Treasury securities

 

 

 

 

 

Due less than one year

 

$

147,279

 

$

147,523

 

Collateralized mortgage obligations

 

1,356

 

1,395

 

Collateralized debt obligations

 

306

 

284

 

Total

 

$

148,941

 

$

149,202

 

 

The table summarizes debt securities available for sale, at fair value, with unrealized losses at June 30, 2019 and December 31, 2018 aggregated by major security type and length of time the individual securities have been in a continuous unrealized loss position, as follows:

 

 

 

June 30, 2019

 

 

 

Less than 12 Months

 

12 Months or More

 

Total

 

 

 

Fair
Value

 

Unrealized
Losses

 

Fair
Value

 

Unrealized
Losses

 

Fair
Value

 

Unrealized
Losses

 

U.S. Treasury securities

 

$

30,864

 

$

(4

)

$

 

$

 

$

30,864

 

$

(4

)

Collateralized debt obligations

 

 

 

284

 

(22

)

284

 

(22

)

Total

 

$

30,864

 

$

(4

)

$

284

 

$

(22

)

$

31,148

 

$

(26

)

 

 

 

December 31, 2018

 

 

 

Less than 12 Months

 

12 Months or More

 

Total

 

 

 

Fair
Value

 

Unrealized
Losses

 

Fair
Value

 

Unrealized
Losses

 

Fair
Value

 

Unrealized
Losses

 

U.S. Treasury securities

 

$

113,219

 

$

(56

)

$

 

$

 

$

113,219

 

$

(56

)

Collateralized debt obligations

 

 

 

297

 

(11

)

297

 

(11

)

Total

 

$

113,219

 

$

(56

)

$

297

 

$

(11

)

$

113,516

 

$

(67

)

 

As of June 30, 2019, the Company’s debt securities portfolio consisted of 7 debt securities, with 2 debt securities in an unrealized loss position. For debt securities in an unrealized loss position, management has both the intent and ability to hold these investments until the recovery of the decline; thus, the impairment was determined to be temporary.

 

A collateralized debt obligation with a carrying value of $284 and $297 at June 30, 2019 and December 31, 2018, respectively, was rated high quality at inception, but it was subsequently rated by Moody’s as Ba1, which is defined as “speculative”. The issuers of the underlying collateral for the security are primarily banks. Management uses in-house and third party other-than-temporary impairment evaluation models to compare the present value of expected cash flows to the previous estimate to ensure there are no adverse changes in cash flows during the period. The other-than-temporary impairment model considers the structure and term of the collateralized debt obligations and the financial condition of the underlying issuers. Assumptions used in the model include expected future default rates and prepayments. The collateralized debt obligation remained classified as available for sale and represented $22 and $11 of the unrealized losses reported at June 30, 2019 and December 31, 2018, respectively.

 

Equity Securities

 

Equity securities consist of an investment in a qualified community reinvestment act investment fund, which is a publicly-traded mutual fund, and an investment in Pacific Coast Banker’s Bank, a thinly traded, restricted stock. At June 30, 2019 and December 31, 2018, equity securities totaled $4,247 and $4,141, respectively.

 

10


Table of Contents

 

STERLING BANCORP, INC.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(dollars in thousands, except per share amounts)

 

At June 30, 2019 and December 31, 2018, equity securities with readily determinable fair values were $4,001 and $3,895, respectively. The following is a summary of unrealized and realized gains and losses recognized in the condensed consolidated statements of income during the three and six months ended June 30, 2019 and 2018:

 

 

 

Three Months Ended
June 30, 

 

Six Months Ended
June 30, 

 

 

 

2019

 

2018

 

2019

 

2018

 

Net gains (losses) recorded during the period on equity securities

 

$

57

 

$

(30

)

$

106

 

$

(94

)

Less: net gains (losses) recorded during the period on equity securities sold during the period

 

 

 

 

 

Unrealized gains (losses) recorded during the period on equity securities held at the reporting date

 

$

57

 

$

(30

)

$

106

 

$

(94

)

 

The Company has elected to account for its investment in a thinly traded, restricted stock using the measurement alternative for equity securities without readily determinable fair values. The investment was reported at $246 for both June 30, 2019 and December 31, 2018.

 

Note 5—Loans

 

Major categories of loans were as follows:

 

 

 

June 30,

 

December 31,

 

 

 

2019

 

2018

 

Residential real estate

 

$

2,523,883

 

$

2,452,441

 

Commercial real estate

 

 220,388

 

250,955

 

Construction

 

 172,656

 

176,605

 

Commercial lines of credit

 

 28,774

 

37,776

 

Other consumer

 

 30

 

26

 

Total loans

 

2,945,731

 

2,917,803

 

Less: allowance for loan losses

 

(20,918

)

(21,850

)

Loans, net

 

$

2,924,813

 

$

2,895,953

 

 

Loans with carrying values of $1.0 billion and $898.7 million were pledged as collateral on FHLB borrowings at June 30, 2019 and December 31, 2018, respectively.

 

The table presents the activity in the allowance for loan losses by portfolio segment for the three and six months ending June 30, 2019 and 2018:

 

Three Months Ended June 30, 2019

 

Residential
Real Estate

 

Commercial
Real Estate

 

Construction

 

Commercial
Lines of
Credit

 

Other
Consumer

 

Unallocated

 

Total

 

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

13,488

 

$

2,351

 

$

2,717

 

$

824

 

$

1

 

$

1,317

 

$

20,698

 

Provision (recovery) for loan losses

 

(738

)

832

 

349

 

(44

)

 

(219

)

180

 

Charge offs

 

 

 

 

 

 

 

 

Recoveries

 

8

 

31

 

1

 

 

 

 

40

 

Total ending balance

 

$

12,758

 

$

3,214

 

$

3,067

 

$

780

 

$

1

 

$

1,098

 

$

20,918

 

 

Six Months Ended June 30, 2019

 

Residential
Real Estate

 

Commercial
Real Estate

 

Construction

 

Commercial
Lines of
Credit

 

Other
Consumer

 

Unallocated

 

Total

 

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

13,826

 

$

2,573

 

$

3,273

 

$

1,058

 

$

1

 

$

1,119

 

$

21,850

 

Provision (recovery) for loan losses

 

(1,081

)

579

 

(209

)

(102

)

 

(21

)

(834

)

Charge offs

 

 

 

 

(176

)

 

 

(176

)

Recoveries

 

13

 

62

 

3

 

 

 

 

78

 

Total ending balance

 

$

12,758

 

$

3,214

 

$

3,067

 

$

780

 

$

1

 

$

1,098

 

$

20,918

 

 

11


Table of Contents

 

STERLING BANCORP, INC.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(dollars in thousands, except per share amounts)

 

Three Months Ended June 30, 2018

 

Residential
Real Estate

 

Commercial
Real Estate

 

Construction

 

Commercial
Lines of
Credit

 

Other
Consumer

 

Unallocated

 

Total

 

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

11,499

 

$

2,572

 

$

2,979

 

$

616

 

$

1

 

$

1,465

 

$

19,132

 

Provision (recovery) for loan losses

 

1,175

 

(17

)

225

 

171

 

 

(434

)

1,120

 

Charge offs

 

(4

)

 

 

 

 

 

(4

)

Recoveries

 

5

 

40

 

7

 

 

 

 

52

 

Total ending balance

 

$

12,675

 

$

2,595

 

$

3,211

 

$

787

 

$

1

 

$

1,031

 

$

20,300

 

 

Six Months Ended June 30, 2018

 

Residential
Real Estate

 

Commercial
Real Estate

 

Construction

 

Commercial
Lines of
Credit

 

Other
Consumer

 

Unallocated

 

Total

 

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

12,279

 

$

2,040

 

$

2,218

 

$

469

 

$

1

 

$

1,450

 

$

18,457

 

Provision (recovery) for loan losses

 

393

 

484

 

985

 

318

 

 

(419

)

1,761

 

Charge offs

 

(4

)

 

 

 

 

 

(4

)

Recoveries

 

7

 

71

 

8

 

 

 

 

86

 

Total ending balance

 

$

12,675

 

$

2,595

 

$

3,211

 

$

787

 

$

1

 

$

1,031

 

$

20,300

 

 

The following tables present the balance in the allowance for loan losses and the recorded investment by portfolio segment and based on impairment method as of June 30, 2019 and December 31, 2018:

 

June 30, 2019

 

Residential
Real Estate

 

Commercial
Real Estate

 

Construction

 

Commercial
Lines of
Credit

 

Other
Consumer

 

Unallocated

 

Total

 

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending allowance balance attributable to loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for impairment

 

$

43

 

$

 

$

 

$

6

 

$

 

$

 

$

49

 

Collectively evaluated for impairment

 

12,715

 

3,214

 

3,067

 

774

 

1

 

1,098

 

20,869

 

Total ending allowance balance

 

$

12,758

 

$

3,214

 

$

3,067

 

$

780

 

$

1

 

$

1,098

 

$

20,918

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans individually evaluated for impairment

 

$

220

 

$

1,137

 

$

7,486

 

$

237

 

$

 

$

 

$

9,080

 

Loans collectively evaluated for impairment

 

2,523,663

 

219,251

 

165,170

 

28,537

 

30

 

 

2,936,651

 

Total ending loans balance

 

$

2,523,883

 

$

220,388

 

$

172,656

 

$

28,774

 

$

30

 

$

 

$

2,945,731

 

 

12


Table of Contents

 

STERLING BANCORP, INC.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(dollars in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

 

Residential
Real Estate

 

Commercial
Real Estate

 

Construction

 

Commercial
Lines of
Credit

 

Other
Consumer

 

Unallocated

 

Total

 

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending allowance balance attributable to loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for impairment

 

$

46

 

$

30

 

$

78

 

$

195

 

$

 

$

 

$

349

 

Collectively evaluated for impairment

 

13,780

 

2,543

 

3,195

 

863

 

1

 

1,119

 

21,501

 

Total ending allowance balance

 

$

13,826

 

$

2,573

 

$

3,273

 

$

1,058

 

$

1

 

$

1,119

 

$

21,850

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans individually evaluated for impairment

 

$

228

 

$

3,779

 

$

7,412

 

$

416

 

$

 

$

 

$

11,835

 

Loans collectively evaluated for impairment

 

2,452,213

 

247,176

 

169,193

 

37,360

 

26

 

 

2,905,968

 

Total ending loans balance

 

$

2,452,441

 

$

250,955

 

$

176,605

 

$

37,776

 

$

26

 

$

 

$

2,917,803

 

 

The following tables present information related to impaired loans by class of loans as of and for the periods indicated:

 

 

 

At June 30, 2019

 

At December 31, 2018

 

 

 

Unpaid
Principal
Balance

 

Recorded
Investment

 

Allowance
for Loan
Losses

 

Unpaid
Principal
Balance

 

Recorded
Investment

 

Allowance
for Loan
Losses

 

With no related allowance for loan losses recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential real estate, first mortgage

 

$

128

 

$

102

 

$

 

$

 

$

 

$

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

1,339

 

1,137

 

 

1,370

 

1,174

 

 

Multifamily

 

 

 

 

1,088

 

1,083

 

 

Construction

 

7,487

 

7,486

 

 

4,751

 

4,751

 

 

Commercial lines of credit, C&I lending

 

100

 

100

 

 

 

 

 

Subtotal

 

9,054

 

8,825

 

 

7,209

 

7,008

 

 

With an allowance for loan losses recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential real estate, first mortgage

 

117

 

118

 

43

 

254

 

228

 

46

 

Commercial real estate, offices

 

 

 

 

1,530

 

1,522

 

30

 

Construction

 

 

 

 

2,661

 

2,661

 

78

 

Commercial lines of credit:

 

 

 

 

 

 

 

 

 

 

 

 

 

Private banking

 

137

 

137

 

6

 

316

 

316

 

95

 

C&I lending

 

 

 

 

100

 

100

 

100

 

Subtotal

 

254

 

255

 

49

 

4,861

 

4,827

 

349

 

Total

 

$

9,308

 

$

9,080

 

$

49

 

$

12,070

 

$

11,835

 

$

349

 

 

In the above table, the unpaid principal balance is not reduced for partial charge offs. Also, the recorded investment excludes accrued interest receivable on loans which was not significant.

 

13


Table of Contents

 

STERLING BANCORP, INC.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(dollars in thousands, except per share amounts)

 

 

 

Three Months Ended

 

 

 

June 30, 2019

 

June 30, 2018

 

 

 

Average
Recorded
Investment

 

Interest
Income
Recognized

 

Cash Basis
Interest
Recognized

 

Average
Recorded
Investment

 

Interest
Income
Recognized

 

Cash Basis
Interest
Recognized

 

With no related allowance for loan losses recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential real estate, first mortgage

 

$

104

 

$

 

$

 

$

 

$

 

$

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

1,146

 

15

 

10

 

1,220

 

16

 

11

 

Multifamily

 

 

 

 

1,102

 

12

 

8

 

Construction

 

7,391

 

172

 

100

 

4,715

 

99

 

46

 

Commercial lines of credit, C&I lending

 

100

 

2

 

1

 

 

 

 

Subtotal

 

8,741

 

189

 

111

 

7,037

 

127

 

65

 

With an allowance for loan losses recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential real estate, first mortgage

 

118

 

2

 

1

 

121

 

2

 

1

 

Commercial real estate, offices

 

 

 

 

1,541

 

22

 

15

 

Construction

 

 

 

 

2,643

 

52

 

17

 

Commercial lines of credit:

 

 

 

 

 

 

 

 

 

 

 

 

 

Private banking

 

137

 

2

 

1

 

332

 

6

 

2

 

C&I lending

 

 

 

 

100

 

2

 

1

 

Subtotal

 

255

 

4

 

2

 

4,737

 

84

 

36

 

Total

 

$

8,996

 

$

193

 

$

113

 

$

11,774

 

$

211

 

$

101

 

 

 

 

Six Months Ended

 

 

 

June 30, 2019

 

June 30, 2018

 

 

 

Average
Recorded
Investment

 

Interest
Income
Recognized

 

Cash Basis
Interest
Recognized

 

Average
Recorded
Investment

 

Interest
Income
Recognized

 

Cash Basis
Interest
Recognized

 

With no related allowance for loan losses recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential real estate, first mortgage

 

$

105

 

$

 

$

 

$

 

$

 

$

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

1,156

 

30

 

25

 

1,228

 

32

 

27

 

Multifamily

 

541

 

12

 

12

 

547

 

12

 

8

 

Offices

 

761

 

25

 

25

 

 

 

 

Construction