STL - Sterling Bancorp Isn't Valued For What It Really Is
Investors are nervous about banks with significant exposure to New York’s commercial real estate market, and multifamily in particular. While Sterling Bancorp (STL) certainly does make loans in both of those categories, the shares trade more like a risky multifamily monoline lender than the more diversified lender it really is, to say nothing of giving the bank credit for an above-average deposit base and expense efficiency.
I do have some concerns that management’s guidance for loan growth and operating leverage in 2020 could be too bullish, but I do think the shares are