Many banks have been constrained from making commercial real estate loans. Meanwhile, loan-to-value ratios have come down, so our opinion is that at this point in the cycle, this has presented an opportunity for us.
The third area is the warehouse lending business. We lend to mortgage bankers who themselves are originating mortgage loans on 1-4 family homes. Again, during the financial crisis, many banks stopped their lending warehouse activities and stopped lending to mortgage bankers. We have a history of asset-based lending and know how to manage collateral.
TheStreet: Can you describe Sterling's factoring business?
Millman: Factoring is a little bit different
Based on a quarterly payout of nine cents, the shares have a dividend yield of 3.81%. Sterling's shares trade 1.3 times their reported June 30 book value of $7.36, and for 13 times the consensus 2013 EPS estimate of 72 cents, among analysts polled by Thomson Reuters. The consensus 2012 EPS estimate is 64 cents. Interested in more on Sterling Bancorp? See TheStreet Ratings' report card for this stock. -- Written by Philip van Doorn in Jupiter, Fla. >Contact by Email. Follow @PhilipvanDoorn
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts