STL - Sterling Bancorp: Deposit Repricing To Counter High Credit Costs Yield Decline
Earnings of Sterling Bancorp (STL) plunged by 88% sequentially in the first quarter to $0.06 per share due to a surge in provision expense and net interest margin compression. On an adjusted basis, the company reported a loss of $0.02 per share. After the decline in the first quarter, earnings will likely improve in the remainder of the year but remain below last year’s earnings. Provision expense will likely remain high in the second quarter before trending downwards to a normal level in the second half of the year. Additionally, the net interest