John Tietjen	Edward Nebb
Chief Financial Officer	Investor Relations
Sterling Bancorp	Comm-Counsellors, LLC
john.tietjen@sterlingbancorp.com	enebb@optonline.net
212.757.8035	203.972.8350

 

 

Sterling Bancorp Reports NET INCOME AVAILABLE TO COMMON
SHAREHOLDERS OF $15.5 MILLION FOR 2011,

up from $4.4 million in 2010

 

2011 EARNINGS PER DILUTED SHARE INCREASE TO $0.51,

compared to $0.18 IN 2010

 

LOANS GROW 12%; DEPOSITS RISE 14%

 

 

Highlights*:

•       Sharp growth in profitability – Net income available to common shareholders for 2011 was 350% of the 2010 amount.

•       Higher net interest income – Sterling’s results benefitted from an increase in net interest income to $84.1 million in 2011 from $81.6 million in 2010.

•       Rising loan volume – Loans in portfolio rose 12% and approached $1.5 billion.

•       Improved yield on loans – The yield on loans was up by 5 basis points sequentially, to 5.42% for the 2011 fourth quarter, as compared to the 2011 third quarter.

•       Increasing deposits – Total deposits approached $2.0 billion, rising 14%. Noninterest-bearing demand deposits increased 34%, to $765.8 million.

•       Noninterest income – Total noninterest income was $44.1 million, or 31% of total revenue.

•       Expense control – Noninterest expenses increased 3%, comparing 2011 to 2010.

•       Tax benefit – The Company recognized a tax benefit in the 2011 periods due to the completion of tax audits for prior years.

•       Strong capital – The tangible common equity ratio was 8.01%, up from 6.81%, reflecting the benefit of a public equity offering in March 2011 as well as retention of earnings.

•       TARP repayment – In 2011, Sterling redeemed all of the preferred stock and warrants issued to the U.S. Treasury under the TARP Capital Purchase Program.

•       Growing assets – Total assets approached $2.5 billion, an increase of 6%.

•       Solid credit metrics – The allowance for loan losses as a percentage of nonaccrual loans increased to 315% from 275% a year ago. The provision for loan losses decreased to $12.0 million from $28.5 million. The ratio of nonperforming assets to total assets was 0.33%, compared to 0.29% a year ago.

* As of December 31, 2011 and 2010 or full-year periods, as applicable, unless otherwise noted.

New York, N.Y., January 31, 2012 — Sterling Bancorp (NYSE: STL), a financial holding company headquartered in New York City and the parent company of Sterling National Bank, today reported higher earnings for the full year and fourth quarter ended December 31, 2011, as well as strong growth in loans, deposits and total assets.

 

Net income available to common shareholders for the full year 2011 was $15.5 million, or 350% of the $4.4 million reported in 2010. Net income available to common shareholders per diluted share increased to $0.51 for 2011, from $0.18 a year ago.

 

For the 2011 fourth quarter, net income available to common shareholders was $5.3 million, increasing from $3.5 million in the 2010 fourth quarter. Net income available to common shareholders per diluted share increased to $0.17 for the 2011 fourth quarter, from $0.13 in the 2010 fourth quarter.

 

Results for the full year and fourth quarter 2011 benefitted from continued growth in the Company’s loan volume, which led to higher net interest income and increased accounts receivable management and other related fees. The 2011 results also reflected certain items specific to the fourth quarter, including: a net tax benefit, primarily due to the completion of Federal tax audits for the periods 2002 through 2009, of approximately $1.9 million; an expense related to the settlement of certain litigation of approximately $900 thousand; and a write-down of certain assets to realizable value, amounting to about $600 thousand. In a loss mitigation effort related to the residential mortgage repurchase issues prevalent across the banking industry, the Company also recognized a charge for incurred and probable repurchase obligations of nearly $700 thousand.

 

Management Perspective

 

“Sterling delivered strong results in 2011, with net income available to common shareholders at 350% of the 2010 level, double-digit growth in loans and deposits, and solid asset quality. This performance in a year of challenge and uncertainty for the overall economy and financial industry demonstrates the fundamental earnings power of our business model. We saw robust demand for our products and services, reflecting our unwavering commitment to the needs of small-to-midsized businesses and all of our customers, and our focus on a resilient marketplace in the New York metropolitan area and beyond,” said Louis J. Cappelli, Sterling’s Chairman and Chief Executive Officer.

 

“Sterling has continued to thrive because of our longstanding commitment to serve the needs of the small-to-midsized businesses that are vital engines of economic activity and job creation. In the recent past, we have enhanced our offerings to these customers by expanding our range of financial solutions, including such capabilities as mortgage warehouse financing and trade financing. Our capacity to serve our market and grow our business for the future is also supported by our strong capital base and high asset quality. We look forward to building on this solid platform to drive profitable performance and grow shareholder value in the future,” Mr. Cappelli concluded.

 

 

Fourth Quarter 2011 Financial Results

 

Net income available to common shareholders for the fourth quarter of 2011 was $5.3 million, or $0.17 per diluted share, compared to $3.5 million, or $0.13 per diluted share for the same quarter of 2010. Per share results in the 2011 fourth quarter reflected the impact of an additional 3.9 million average common shares outstanding, due to Sterling’s March 2011 common share offering. The proceeds of the offering provided additional capital to respond to growth opportunities. The Company’s per share earnings growth was partially offset by the effect of the higher share count.

 

Net interest income was $21.9 million for the 2011 fourth quarter, up from $20.3 million for the 2010 fourth quarter. This primarily reflected the benefit of higher average loan balances and reduced funding costs, partially offset by the impact of lower yields on interest-earning assets and higher interest-bearing deposit balances. Net interest margin was 3.77% for the 2011 fourth quarter, compared to 3.98% for the 2010 fourth quarter, due in part to Sterling’s strategy of maintaining liquidity for future loan demand by investing in short-term instruments and interest-bearing deposits with the Federal Reserve Bank.

 

Total noninterest income was $10.3 million for the 2011 fourth quarter, compared to $12.1 million in the same period of 2010. This primarily reflected higher accounts receivable management and other related fees, which were more than offset by decreased residential mortgage banking income due to the mortgage repurchase charge noted earlier and industry-wide conditions with respect to lower mortgage volume and the slower pace of investor funding. The 2011 period’s results also reflect a reduction in service charges and securities gains.

 

Noninterest expenses were $24.7 million for the 2011 fourth quarter, an increase of approximately $300 thousand from the year-ago period. This increase principally reflected higher compensation expenses related to the growth in Sterling’s business, and the expenses for certain legal matters and the asset write-down noted earlier, partially offset by lower deposit insurance premiums due to a change during the 2011 third quarter in the method of calculating such premiums.

 

Sterling recognized a tax benefit of $864 thousand in the 2011 fourth quarter, compared to a provision for income taxes of $928 thousand in the 2010 fourth quarter. The 2011 period was positively impacted primarily by the net benefit from the completion of Federal tax audits noted earlier.

 

Full Year 2011 Financial Results

 

Net income available to common shareholders for the full year 2011 was $15.5 million, or $0.51 per diluted share, compared to $4.4 million, or $0.18 per diluted share, for 2010. Results for the 2011 period included a charge for accelerated accretion of $1.2 million due to the redemption of all issued and outstanding Series A preferred shares and repurchase of the related warrant to purchase common shares in each case issued under the TARP Capital Purchase Program. Per share results in 2011 reflected the impact of an additional 5.5 million average common shares outstanding, largely due to Sterling’s March 2011 common share offering.

 

Net interest income was $84.1 million for 2011, compared to $81.6 million for 2010. The comparison largely reflected the benefit of higher average loan and investment securities balances and reduced funding costs, partially offset by the impact of lower yields on interest-earning assets and higher interest-bearing deposit balances. Net interest margin was 3.92% for 2011, compared to 4.25% for 2010, due in part to the strategy of maintaining liquidity, as noted earlier.

 

The provision for loan losses decreased to $12.0 million for 2011, compared to $28.5 million a year earlier. The higher provision for loan losses in the year-ago period reflected the Company’s decision in the 2010 third quarter to accelerate the resolution of certain nonaccrual loans, principally leasing receivables.

 

Total noninterest income was $44.1 million for 2011, compared to $47.6 million in 2010. This primarily reflected higher accounts receivable management and other related fees, more than offset by lower residential mortgage banking income, service charges and securities gains.

 

Noninterest expenses were $94.3 million for 2011, compared to $91.6 million in 2010. This increase principally reflected higher compensation expenses and occupancy costs related to the growth in Sterling’s business and expenses for certain legal matters as noted earlier, partially offset by lower deposit insurance premiums.

 

The provision for income taxes was $4.2 million in 2011, including the net effect of the tax benefit recognized in the fourth quarter. In 2010, the provision for income taxes was $2.2 million.

 

Loans, Deposits and Total Assets

 

Total loans held in portfolio approached $1.5 billion at December 31, 2011, rising 12% from a year earlier. The Company continues to have a robust loan pipeline. The ratio of portfolio loans to deposits was approximately 74.1% at December 31, 2011.

 

Total deposits were nearly $2.0 billion at December 31, 2011, up 14% from $1.7 billion a year earlier. Noninterest-bearing demand deposits totaled $765.8 million at December 31, 2011, a 34% increase from a year ago, and represented 39% of total deposits, among the highest ratios of demand to total deposits in the industry.

 

Total assets approached $2.5 billion at December 31, 2011, an increase of 6% from a year ago.

 

Asset Quality

 

Sterling continued to exhibit strong credit quality throughout 2011. Net charge-offs declined to $10.2 million for 2011, from $29.6 million a year-ago. The allowance for loan losses as a percentage of nonaccrual loans was 315% at December 31, 2011, improved from 275% a year earlier. Nonperforming assets were $8.3 million or 0.33% of total assets at December 31, 2011, compared to $6.8 million or 0.29% a year ago.

 

Capital

 

Sterling’s capital base has continued to exceed all regulatory requirements for well-capitalized institutions. At December 31, 2011, Sterling’s Tier 1 risk-based capital ratio was 12.61% (compared to a requirement of 6.00%), total risk-based capital was 13.71% (requirement of 10.00%), and the Tier 1 leverage ratio was 9.02% (requirement of 5.00%). Also during 2011, the Company redeemed all of the preferred stock and warrants issued to the U.S. Treasury under the TARP Capital Purchase Program.

 

The tangible common equity ratio rose to 8.01% at December 31, 2011 from 6.81% a year ago.

 

Conference Call

 

Sterling Bancorp will host a teleconference call for the financial community on January 31, 2012, at 10:00 a.m. Eastern Time to discuss the full year and fourth quarter 2011 financial results. To access the conference call live, interested parties may dial 800-398-9367 at least 10 minutes prior to the call.

 

A replay of the conference call will be available beginning at approximately 1:00 p.m. Eastern Time on January 31, 2012, until 11:59 p.m. Eastern Time on February 14, 2012. To access the replay by telephone, interested parties may dial 800-475-6701 and enter the Access Code 233854.

 

About Sterling Bancorp

 

Sterling Bancorp (NYSE: STL) is a New York City-based financial corporation with assets exceeding $2.4 billion. Since 1929, Sterling National Bank, the company’s principal banking subsidiary, has successfully served the needs of businesses, professionals and individuals in the New York metropolitan area and beyond. Sterling is well-known for its high-touch, hands-on approach to customer service and a special focus on serving the business community.

 

Sterling offers clients a full range of depository and cash management services plus a broad portfolio of financing solutions – including working capital lines, accounts receivable and inventory financing, factoring, trade financing, payroll funding and processing, equipment financing, commercial and residential mortgages and mortgage warehouse lines of credit.

 

Certain statements in this press release, including but not limited to, statements as to future events, future liquidity, future interest rate risk and operating expenses, statements concerning future results of operations, financial position or dividends, and plans and objectives for future operations, future capital, future liquidity and future growth, statements concerning the economic environment, asset quality and future levels of nonaccrual loans, charge-offs and provisions for loan losses, and continued robust demand for the Company’s products and services, continued strong capital base and high asset quality of the Company, and the Company’s ability to continue enhancing its offerings to small-to-midsized businesses, and other statements contained herein regarding matters that are not historical facts, are “forward-looking statements” as defined in the Securities Exchange Act of 1934. These statements are not historical facts but instead are subject to numerous assumptions, risks and uncertainties, and represent only the Company’s belief regarding future events, many of which, by their nature, are inherently uncertain and outside its control. Any forward-looking statements the Company may make speak only as of the date on which such statements are made. The Company’s actual results and financial position may differ materially from the anticipated results and financial condition indicated in or implied by these forward-looking statements, and the Company makes no commitment to update or revise forward-looking statements to reflect new information or subsequent events or changes in expectations. For a discussion of some of the risks and important factors that could affect the Company’s future results and financial condition, see “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Forward-Looking Statements and Factors that Could Affect Future Results” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2010.

 

# # #

 

STERLING BANCORP
Consolidated Financial Highlights
(Unaudited)
(dollars in thousands, except per share data)
		Three Months Ended December 31,								Twelve Months Ended December 31,
		2011				2010				2011				2010
BALANCE SHEET HIGHLIGHTS
Period End Balances
Investment securities		$	677,871			$	789,315			$	677,871			$	789,315
Loans held for sale			43,372				32,049				43,372				32,049
Loans held in portfolio,
net of unearned discounts			1,473,309				1,314,234				1,473,309				1,314,234
Interest bearing deposits with other banks			126,448				40,503				126,448				40,503
Total earning assets			2,329,486				2,185,466				2,329,486				2,185,466
Allowance for loan losses			20,029				18,238				20,029				18,238
Total assets			2,493,297				2,360,457				2,493,297				2,360,457
Demand deposits			765,800				570,290				765,800				570,290
Savings, NOW and money market deposits			565,423				562,207				565,423				562,207
Time deposits			657,848				615,267				657,848				615,267
Customer repurchase agreements			47,313				23,016				47,313				23,016
Other short-term borrowings			18,485				37,878				18,485				37,878
Advances FHLB/Long-term borrowings			148,507				169,947				148,507				169,947
Shareholders' equity			220,821				222,742				220,821				222,742
Average Balances
Investment securities		$	729,589			$	755,570			$	830,968			$	768,184
Loans held for sale			34,107				45,255				27,954				35,354
Loans held in portfolio,
net of unearned discounts			1,447,410				1,307,456				1,351,407				1,227,049
Interest bearing deposits with other banks			213,713				45,956				93,561				31,960
Total earning assets			2,433,311				2,163,607				2,312,660				2,071,164
Total assets			2,637,788				2,351,834				2,508,184				2,244,569
Demand deposits			711,011				542,946				596,608				489,184
Savings, NOW and money market deposits			611,691				560,816				596,007				564,061
Time deposits			788,800				608,530				729,053				559,203
Customer repurchase agreements			45,328				43,603				42,911				47,674
Other short-term borrowings			21,827				34,051				34,232				64,533
Advances FHLB/Long-term borrowings			148,630				170,065				155,332				158,351
Shareholders' equity			218,728				224,724				224,820				213,153
ASSET QUALITY HIGHLIGHTS
Period End
Net charge-offs		$	2,519			$	2,915			$	10,184			$	29,597
Nonaccrual loans			6,358				6,644				6,358				6,644
Other real estate owned			1,929				182				1,929				182
Nonperforming assets			8,287				6,826				8,287				6,826
Nonaccrual loans/loans (1)			0.42	%			0.49	%			0.42	%			0.49	%
Nonperforming assets/assets			0.33	%			0.29	%			0.33	%			0.29	%
Allowance for loan losses/loans (2)			1.36	%			1.39	%			1.36	%			1.39	%
Allowance for loan losses/nonaccrual loans			315.02	%			274.50	%			315.02	%			274.50	%
CAPITAL RATIOS
Period End
Tier 1 risk-based			12.61	%			13.61	%			12.61	%			13.61	%
Total risk-based			13.71	%			14.68	%			13.71	%			14.68	%
Leverage			9.02	%			10.15	%			9.02	%			10.15	%
Tangible common equity			8.01	%			6.81	%			8.01	%			6.81	%
Book value per common share		$	7.14			$	6.79			$	7.14			$	6.79
(1) The term "loans" includes loans held for sale and loans held in portfolio
(2) The term "loans" includes loans held in portfolio only

 

STERLING BANCORP
Consolidated Balance Sheets
(Unaudited)
(dollars in thousands, except number of shares)
		December 31,
		2011				2010
ASSETS
Cash and due from banks		$	31,046			$	26,824
Interest-bearing deposits with other banks			126,448				40,503
Investment securities
Available for sale (at estimated fair value)			270,014				390,080
Held to maturity (at amortized cost)			407,857				399,235
Total investment securities			677,871				789,315
Loans held for sale			43,372				32,049
Loans held in portfolio, net of unearned discounts			1,473,309				1,314,234
Less allowance for loan losses			20,029				18,238
Loans held in portfolio, net			1,453,280				1,295,996
Federal Reserve Bank and Federal Home Loan Bank stock, at cost			8,486				9,365
Customers' liability under acceptances			4				0
Goodwill			22,901				22,901
Premises and equipment, net			23,625				15,909
Other real estate			1,929				182
Accrued interest receivable			6,838				8,280
Cash surrender value of  life insurance policies			53,446				51,512
Other assets			44,051				67,621
		$	2,493,297			$	2,360,457
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Demand		$	765,800			$	570,290
Savings, NOW and money market			565,423				562,207
Time			657,848				615,267
Total deposits			1,989,071				1,747,764
Securities sold under agreements to repurchase - customers			47,313				23,016
Securities sold under agreements to repurchase - dealers			5,000				5,000
Short-term borrowings - other			13,485				32,878
Advances - FHLB			122,733				144,173
Long-term borrowings - subordinated debentures			25,774				25,774
Acceptances outstanding			4				0
Accrued interest payable			1,064				1,314
Due to factored clients			0				91,543
Accrued expenses and other liabilities			68,032				66,253
Total liabilities			2,272,476				2,137,715
Shareholders' equity			220,821				222,742
		$	2,493,297			$	2,360,457
MEMORANDA
Available for sale securities - amortized cost		$	271,728			$	390,175
Held to maturity securities - estimated fair value			425,775				400,453
Shares outstanding
Common issued			35,225,110				31,138,545
Common in treasury			4,300,278				4,297,782
NOTE: Certain reclassifications have been made to prior period's financial data to conform to current financial statement presentations

 

STERLING BANCORP
Consolidated Statements of Income
(Unaudited)
(dollars in thousands, except per share data)
		Three Months Ended December 31,								Twelve Months Ended December 31,
		2011				2010				2011				2010
INTEREST INCOME
Loans		$	19,465			$	18,197			$	73,241			$	70,104
Investment securities - available for sale			2,158				2,436				9,862				11,751
Investment securities - held to maturity			3,133				3,193				13,363				14,815
FRB and FHLB stock			130				149				371				445
Deposits with other banks			135				22				227				75
Total interest income			25,021				23,997				97,064				97,190
INTEREST EXPENSE
Savings, NOW and money market deposits			703				752				2,855				3,288
Time deposits			1,371				1,443				5,583				6,300
Securities sold u/a/r - customers			41				54				186				229
Securities sold u/a/r - dealers			17				16				66				44
Short-term borrowings - other			9				18				59				146
Advances - FHLB			497				891				2,144				3,482
Long-term subordinated debentures			524				524				2,094				2,094
Total interest expense			3,162				3,698				12,987				15,583
Net interest income			21,859				20,299				84,077				81,607
Provision for loan losses			3,000				3,000				12,000				28,500
Net interest income after provision for loan losses			18,859				17,299				72,077				53,107
NONINTEREST INCOME
Accounts receivable management/
factoring commissions and other fees			6,340				6,045				24,381				23,572
Service charges on deposit accounts			1,406				1,623				5,654				6,250
Trade finance income			487				614				2,222				2,264
Other customer related service charges and fees			235				204				943				869
Mortgage banking income			1,047				2,533				6,315				8,164
Income from life insurance policies			280				288				1,140				1,138
Securities gains			197				509				1,726				3,928
Loss on sale of OREO			0				(81	)			0				(64	)
Other income			299				377				1,679				1,512
Total noninterest income			10,291				12,112				44,060				47,633
NONINTEREST EXPENSES
Salaries			11,040				10,777				43,748				41,586
Employee benefits			3,448				2,683				13,898				12,220
Total personnel expense			14,488				13,460				57,646				53,806
Occupancy and equipment expenses, net			3,391				3,329				13,248				12,296
Advertising and marketing			713				881				2,792				3,381
Professional fees			1,771				1,551				5,219				5,464
Communications			442				389				1,756				1,691
Deposit insurance			543				1,252				2,747				3,809
Other expenses			3,328				3,466				10,937				11,109
Total noninterest expenses			24,676				24,328				94,345				91,556
Income  before income taxes			4,474				5,083				21,792				9,184
(Benefit) Provision  for income taxes			(864	)			928				4,196				2,158
Net income			5,338				4,155				17,596				7,026
Dividends on preferred shares and accretion			0				655				833				2,589
Net income available to common shareholders
before accelerated accretion from redemption
of preferred shares			5,338				3,500				16,763				4,437
Accelerated accretion from redemption
of preferred shares			0				0				1,241				0
Net income available to common
shareholders		$	5,338			$	3,500			$	15,522			$	4,437

 

STERLING BANCORP
Consolidated Statements of Income
(Unaudited)
(dollars in thousands, except per share data)
		(continued)
		Three Months Ended December 31,								Twelve Months Ended December 31,
		2011				2010				2011				2010
Average number of common shares outstanding
Basic			30,789,539				26,840,763				30,038,047				24,492,279
Diluted			30,789,539				26,840,763				30,038,047				24,495,044
Net income available to common
shareholders, before accelerated accretion from
redemption of preferred shares, per average
common share
Basic		$	0.17			$	0.13			$	0.56			$	0.18
Diluted			0.17				0.13				0.56				0.18
Net income available to common
shareholders per average common share
Basic			0.17				0.13				0.51				0.18
Diluted			0.17				0.13				0.51				0.18
Dividends per common share			0.09				0.09				0.36				0.36

 

STERLING BANCORP
Consolidated Statements of Comprehensive Income
(Unaudited)
(dollars in thousands)
		Three Months Ended December 31,								Twelve Months Ended December 31,
		2011				2010				2011				2010
Net income		$	5,338			$	4,155			$	17,596			$	7,026
Other comprehensive income, net of tax:
Unrealized holding gains (losses) on securities
arising during the period			1,078				(980	)			(180	)			2,101
Reclassification adjustment for securities
gains included in net income			(123	)			(279	)			(958	)			(2,145	)
Pension liability adjustment - net actuarial losses			(2,006	)			(1,940	)			(2,006	)			(1,940	)
Amortization of:
Prior service cost			9				9				35				36
Net actuarial losses			514				269				1,780				1,460
Comprehensive income		$	4,810			$	1,234			$	16,267			$	6,538

 

 

STERLING BANCORP
Consolidated Statements of Changes in Shareholders' Equity
(Unaudited)
(dollars in thousands)
		Three Months Ended December 31,								Twelve Months Ended December 31,
		2011				2010				2011				2010
Balance, at beginning of period		$	218,685			$	224,378			$	222,742			$	161,950
Net income for period			5,338				4,155				17,596				7,026
Common shares issued			0				0				36,454				64,881
Common shares issued under stock incentive
plan and related tax benefits			0				0				0				1,477
Stock option and restricted stock
compensation expense			107				70				394				257
Preferred shares redeemed in connection with the
TARP Capital Purchase Program			0				0				(42,000	)			0
Repurchase of warrant			0				0				(945	)			0
Cash dividends-Common shares			(2,781	)			(2,415	)			(11,122	)			(8,873	)
Cash dividends-Preferred shares			0				(525	)			(945	)			(2,100	)
Surrender of shares issued under
incentive compensation plan			0				0				(24	)			(1,388	)
Unrealized holding gains (losses) on
securities arising during the period			1,078				(980	)			(180	)			2,101
Reclassification adjustment for securities
gains included in net income			(123	)			(279	)			(958	)			(2,145	)
Pension liability adjustment - net actuarial losses			(2,006	)			(1,940	)			(2,006	)			(1,940	)
Amortization of:
Prior service cost			9				9				35				36
Net actuarial losses			514				269				1,780				1,460
Balance, at end of period		$	220,821			$	222,742			$	220,821			$	222,742

 

			STERLING BANCORP
			Average Balance Sheets [1]
			(Unaudited)
			(dollars in thousands)

		Three Months Ended
		December 31, 2011												December 31, 2010
		AVERAGE								AVERAGE				AVERAGE								AVERAGE
			BALANCE				INTEREST				RATE				BALANCE				INTEREST				RATE
Assets
Interest-bearing deposits with other banks		$	213,713			$	135				0.25	%		$	45,956			$	22				0.19	%
Investment Securities
Available for sale - taxable			283,299				1,950				2.75				362,864				2,193				2.42
Held to maturity - taxable			288,493				1,743				2.42				249,919				2,006				3.21
Tax-exempt [2]			157,797				2,461				6.24				142,787				2,202				6.17
Total investment securities			729,589				6,154				3.37				755,570				6,401				3.39
FRB and FHLB stock  [2]			8,492				130				6.17				9,370				149				6.36
Loans, net of unearned discount  [3]			1,481,517				19,465				5.42				1,352,711				18,197				5.64
Total Interest-Earning Assets [2]			2,433,311				25,884				4.31	%			2,163,607				24,769				4.69	%
Cash and due from banks			44,890												40,970
Allowance for loan losses			(20,849	)											(19,693	)
Goodwill			22,901												22,901
Other			157,535												144,049
Total Assets		$	2,637,788											$	2,351,834
Liabilities and Shareholders' Equity
Interest-bearing deposits
Domestic
Savings		$	18,545				1				0.03	%		$	19,541				3				0.05	%
NOW			203,280				83				0.16				200,846				74				0.15
Money market			389,866				619				0.63				340,429				675				0.79
Time			788,800				1,371				0.69				608,530				1,443				0.94
Total Interest-Bearing Deposits			1,400,491				2,074				0.59				1,169,346				2,195				0.74
Borrowings
Securities sold u/a/r - customers			45,328				41				0.36				43,603				54				0.49
Securities sold u/a/r - dealers			5,000				17				1.30				5,000				16				1.30
Federal funds purchased			0				0				0.00				12,038				7				0.22
Commercial paper			13,541				9				0.29				15,056				11				0.30
Short-term borrowings - other			3,286				0				0.00				1,957				0				0.00
Advances - FHLB			122,856				497				1.61				144,291				891				2.45
Long-term borrowings - sub debt			25,774				524				8.38				25,774				524				8.38
Total Borrowings			215,785				1,088				2.02				247,719				1,503				2.42
Total Interest-Bearing Liabilities			1,616,276				3,162				0.78	%			1,417,065				3,698				1.04	%
Noninterest-bearing demand deposits			711,011												542,946
Total including noninterest-bearing
demand deposits			2,327,287				3,162				0.56	%			1,960,011				3,698				0.75	%
Other liabilities			91,773												167,099
Total Liabilities			2,419,060												2,127,110
Shareholders' equity			218,728												224,724
Total Liabilities and Shareholders' Equity		$	2,637,788											$	2,351,834
Net interest income/spread [2]							22,722				3.53	%							21,071				3.65	%
Net yield on interest-earning assets [2]											3.77	%											3.98	%
Less: Tax-equivalent adjustment							863												772
Net interest income						$	21,859											$	20,299

 

[1] The average balances of assets, liabilities and shareholders' equity are computed on the basis of daily averages. Average rates are presented

on a tax-equivalent basis. Certain reclassifications have been made to prior period amounts to conform to current presentation

[2] Interest and/or average rates are presented on a tax-equivalent basis

[3] Includes loans held for sale and loans held in portfolio; all loans are domestic.  Nonaccrual loans are included in amounts

outstanding and income has been included to the extent earned

 

 

			STERLING BANCORP
			Average Balance Sheets [1]
			(Unaudited)
			(dollars in thousands)

		Twelve Months Ended
		December 31, 2011												December 31, 2010
		AVERAGE								AVERAGE				AVERAGE								AVERAGE
			BALANCE				INTEREST				RATE				BALANCE				INTEREST				RATE
Assets
Interest-bearing deposits with other banks		$	93,561			$	227				0.24	%		$	31,960			$	75				0.23	%
Investment Securities
Available for sale - taxable			351,348				8,788				2.50				394,635				10,863				2.75
Held to maturity - taxable			322,312				8,078				2.51				252,915				10,879				4.30
Tax-exempt [2]			157,308				9,784				6.22				120,634				7,422				6.15
Total investment securities			830,968				26,650				3.21				768,184				29,164				3.80
FRB and FHLB stock  [2]			8,770				374				4.27				8,617				448				5.20
Loans, net of unearned discount  [3]			1,379,361				73,241				5.65				1,262,403				70,104				5.98
Total Interest-Earning Assets [2]			2,312,660				100,492				4.51	%			2,071,164				99,791				5.04	%
Cash and due from banks			39,734												36,810
Allowance for loan losses			(19,951	)											(21,668	)
Goodwill			22,901												22,901
Other			152,840												135,362
Total Assets		$	2,508,184											$	2,244,569
Liabilities and Shareholders' Equity
Interest-bearing deposits
Domestic
Savings		$	18,474				8				0.04	%		$	18,631				11				0.06	%
NOW			210,443				372				0.18				209,197				472				0.23
Money market			367,090				2,475				0.67				336,233				2,805				0.83
Time			729,053				5,583				0.77				558,886				6,297				1.13
Foreign
Time			0				0				0.00				317				3				1.09
Total Interest-Bearing Deposits			1,325,060				8,438				0.64				1,123,264				9,588				0.85
Borrowings
Securities sold u/a/r - customers			42,911				186				0.43				47,674				229				0.48
Securities sold u/a/r - dealers			5,186				66				1.27				5,618				44				0.79
Federal funds purchased			10,926				14				0.13				33,192				74				0.22
Commercial paper			14,454				43				0.30				14,718				45				0.30
Short-term borrowings - other			3,666				2				0.07				11,005				27				0.25
Advances - FHLB			129,558				2,144				1.66				132,577				3,482				2.63
Long-term borrowings - sub debt			25,774				2,094				8.38				25,774				2,094				8.38
Total Borrowings			232,475				4,549				1.96				270,558				5,995				2.22
Total Interest-Bearing Liabilities			1,557,535				12,987				0.83	%			1,393,822				15,583				1.12	%
Noninterest-bearing demand deposits			596,608												489,184
Total including noninterest-bearing
demand deposits			2,154,143				12,987				0.61	%			1,883,006				15,583				0.83	%
Other liabilities			129,221												148,410
Total Liabilities			2,283,364												2,031,416
Shareholders' equity			224,820												213,153
Total Liabilities and Shareholders' Equity		$	2,508,184											$	2,244,569
Net interest income/spread [2]							87,505				3.68	%							84,208				3.92	%
Net yield on interest-earning assets [2]											3.92	%											4.25	%
Less: Tax-equivalent adjustment							3,428												2,601
Net interest income						$	84,077											$	81,607

 

[1] The average balances of assets, liabilities and shareholders' equity are computed on the basis of daily averages. Average rates are presented

on a tax-equivalent basis. Certain reclassifications have been made to prior period amounts to conform to current presentation

[2] Interest and/or average rates are presented on a tax-equivalent basis

[3] Includes loans held for sale and loans held in portfolio; all loans are domestic.  Nonaccrual loans are included in amounts

outstanding and income has been included to the extent earned

 

STERLING BANCORP
Rate/Volume Analysis  [1]
(Unaudited)
(dollars in thousands)
		Increase/(Decrease)
		Three Months Ended
		December 31, 2011
		Volume				Rate				Net  [2]
INTEREST INCOME
Interest-bearing deposits with other banks		$	104			$	9			$	113
Investment Securities
Available for sale - taxable			(522	)			279				(243	)
Held to maturity - taxable			282				(545	)			(263	)
Tax-exempt			234				25				259
Total investment securities			(6	)			(241	)			(247	)
FRB and FHLB stock			(15	)			(4	)			(19	)
Loans, net of unearned discounts [3]			1,964				(696	)			1,268
TOTAL INTEREST INCOME		$	2,047			$	(932	)		$	1,115
INTEREST EXPENSE
Interest-bearing deposits
Domestic
Savings		$	0			$	(2	)		$	(2	)
NOW			2				7				9
Money market			91				(147	)			(56	)
Time			366				(438	)			(72	)
Total interest-bearing deposits			459				(580	)			(121	)
Borrowings
Securities sold under agreements to repurchase - customers			2				(15	)			(13	)
Securities sold under agreements to repurchase - dealers			1				0				1
Federal funds purchased			(7	)			0				(7	)
Commercial paper			(2	)			0				(2	)
Short-term borrowings - other			0				0				0
Advances - FHLB			(119	)			(275	)			(394	)
Long-term borrowings - subordinated debentures			0				0				0
Total borrowings			(125	)			(290	)			(415	)
TOTAL INTEREST EXPENSE		$	334			$	(870	)		$	(536	)
NET INTEREST INCOME		$	1,713			$	(62	)		$	1,651

 

[1] This table is presented on a tax-equivalent basis

[2] Changes in interest income and interest expense due to a combination of both volume and rate have been allocated to the change due

to volume and the change due to rate in proportion to the relationship of change due solely to each. The change in interest expense for

Federal funds purchased has been allocated entirely to the volume variance

[3] Includes loans held for sale and loans held in portfolio; all loans are domestic. Nonaccrual loans are included in amounts outstanding,

and income has been included to the extent earned

 

STERLING BANCORP
Rate/Volume Analysis  [1]
(Unaudited)
(dollars in thousands)
		Increase/(Decrease)
		Twelve Months Ended
		December 31, 2011
		Volume				Rate				Net  [2]
INTEREST INCOME
Interest-bearing deposits with other banks		$	149			$	3			$	152
Investment Securities
Available for sale - taxable			(1,134	)			(941	)			(2,075	)
Held to maturity - taxable			2,484				(5,285	)			(2,801	)
Tax-exempt			2,277				85				2,362
Total investment securities			3,627				(6,141	)			(2,514	)
FRB and FHLB stock			8				(82	)			(74	)
Loans, net of unearned discounts [3]			7,188				(4,051	)			3,137
TOTAL INTEREST INCOME		$	10,972			$	(10,271	)		$	701
INTEREST EXPENSE
Interest-bearing deposits
Domestic
Savings		$	0			$	(3	)		$	(3	)
NOW			3				(103	)			(100	)
Money market			241				(571	)			(330	)
Time			1,618				(2,332	)			(714	)
Foreign
Time			(3	)			0				(3	)
Total interest-bearing deposits			1,859				(3,009	)			(1,150	)
Borrowings
Securities sold under agreements to repurchase - customers			(21	)			(22	)			(43	)
Securities sold under agreements to repurchase - dealers			(3	)			25				22
Federal funds purchased			(37	)			(23	)			(60	)
Commercial paper			(2	)			0				(2	)
Short-term borrowings - other			(12	)			(13	)			(25	)
Advances - FHLB			(77	)			(1,261	)			(1,338	)
Long-term borrowings - subordinated debentures			0				0				0
Total borrowings			(152	)			(1,294	)			(1,446	)
TOTAL INTEREST EXPENSE		$	1,707			$	(4,303	)		$	(2,596	)
NET INTEREST INCOME		$	9,265			$	(5,968	)		$	3,297

 

[1] This table is presented on a tax-equivalent basis

[2] Changes in interest income and interest expense due to a combination of both volume and rate have been allocated to the change due

to volume and the change due to rate in proportion to the relationship of change due solely to each. The change in interest expense for

foreign time deposits has been allocated entirely to the volume variance

[3] Includes loans held for sale and loans held in portfolio; all loans are domestic. Nonaccrual loans are included in amounts outstanding,

and income has been included to the extent earned

 

STERLING BANCORP

Reconciliation of  Tangible Common Equity and Tangible Assets

(Unaudited)

(dollars in thousands)

 

This press release contains certain supplemental financial information, described in the following tables, which has been determined by methods other than U. S. generally accepted accounting principles ("GAAP"). Management believes that these non-GAAP financial measures provide useful supplemental information to both management and investors in evaluating Sterling's capital position. Tangible common equity represents shareholders' equity less preferred equity, goodwill and other intangibles. Tangible assets are equal to total assets less goodwill and other intangibles. Tangible common equity ratio is calculated by dividing tangible common equity by tangible assets. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results, and Sterling strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Non-GAAP financial measures are not standardized, and, therefore, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures that may have the same or similar names.

		December 31,
		2011				2010
Tangible common equity
Total shareholders' equity		$	220,821			$	222,742
Less:
Preferred equity			0				40,602
Goodwill and other intangible assets			22,975				23,039
Total tangible common equity		$	197,846			$	159,101
Tangible assets
Total assets		$	2,493,297			$	2,360,457
Less: Goodwill and other intangible assets			22,975				23,039
Total tangible assets		$	2,470,322			$	2,337,418
Tangible common equity ratio			8.01	%			6.81	%