Sterling Bancorp. (NYSE:STL) Q2 2020 Earnings Conference Call - Final Transcript

Aug 03, 2020 • 11:00 am ET


Sterling Bancorp. (NYSE:STL) Q2 2020 Earnings Conference Call - Final Transcript


Loading Event

Loading Transcript


Good morning and welcome to the Sterling Bancorp, Inc. Second Quarter 2020 Conference Call. My name is Brandon, and I'll be your operator today. At this time, all participants are in a listen-only mode. This call is being recorded and will be available for replay through August 17, 2020, starting this afternoon at approximately one hour after the completion of this call.

I would now like to turn the conference over to Mr. Larry Clark, Investor Relations for the Company. Please go ahead, Mr. Clark.

Larry Clark

Thank you, Brandon, and good morning, everyone. Thanks for joining us today to discuss Sterling Bancorp's financial highlights for the second quarter of 2020. Joining us today from the Company are Tom O'Brien, Chairman, CEO and President; and Steve Huber, Chief Financial Officer and Treasurer. Tom will begin the call with an overview of the financial highlights for the quarter, and then we'll open the call to your questions. Our management will not be answering any questions related to the ongoing internal review and investigations.

Before we begin, I would like to remind you that this conference call contains forward-looking statements with respect to the future performance and financial condition of Sterling Bancorp that involve risks and uncertainties. Various factors could cause actual results to be materially different from any future results expressed or implied by such forward-looking statements. These factors are discussed in the Company's SEC filings, which are available on the Company's website. The Company disclaims any obligation to update any forward-looking statements made during the call.

At this time, I'd like to turn the call over to Tom O'Brien. Tom?

Thomas M. O'Brien

Thanks Larry. And good morning, everyone, and thank you for joining Sterling Bancorp's Second Quarter Call. As you saw this morning, we announced net income of $3.6 million, about $0.07 a share. Once again, we are reporting what we are calling financial highlights as contrasted with a more traditional earnings release. We are working our way through the 2019 audit and then the past due 10-K and 10-Q. All of the relevant parties are actively engaged and working towards the goal of having the audits and these reports completed as quickly as possible.

I began in my role as CEO of Sterling in the last month of this second quarter. In that time, we have worked to identify critical needs and begin the process of building a strong and compliant foundation from which the Company can operate. To that end, every single area and department will receive close attention and any remedial actions required to bring it to the operating standard that we demand. In that context, I can also report that the Board of Directors remains fully supportive and actively committed to this course of action.

The financial results, I guess, are what I would say in a word, okay. As you can see, we're saddled with extraordinarily high costs related to the previously disclosed investigatory matters. The margin at 308 basis points reflects a very high liquidity level and a very