Attached files
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| 8-K - STERLING BANCORP | i00349_stl-8k.htm |
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John Tietjen |
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Edward Nebb |
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Chief Financial Officer |
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Investor Relations |
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Sterling Bancorp |
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Comm-Counsellors, LLC |
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john.tietjen@sterlingbancorp.com |
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enebb@optonline.net |
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212.757.8035 |
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203.972.8350 |
STERLING BANCORP NET INCOME CLIMBS 94% IN
SECOND QUARTER OF 2012
LOAN AND DEPOSIT GROWTH, HIGHER TOTAL REVENUES AND
EXPENSE CONTROL DRIVE SOLID PERFORMANCE
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Strong Financial Results |
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Net income available to common shareholders was $4.9 million – approximately double the 2011 amount of $2.5 million. |
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Earnings per share doubled to $0.16 from $0.08. |
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Return on average tangible equity approached 10.00%. |
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Total revenue rose 4% to $36.4 million. |
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Net interest margin increased 14 basis points to 4.04%. |
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Noninterest expenses were well-controlled, increasing less than 2%. |
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Robust Loan, Deposit and Asset Growth |
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Loans in portfolio rose 15% to nearly $1.6 billion. |
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Total deposits were $2.0 billion. |
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Total assets approximated $2.6 billion. |
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Solid Credit Metrics |
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Net charge-offs decreased to $1.7 million or 0.43% of loans. |
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Ratio of nonperforming assets to total assets decreased to 0.28%. |
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Allowance for loan losses as a percentage of nonaccrual loans was 377%. |
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Comparisons above are at or for the quarters ended June 30, 2012 vs. June 30, 2011. |
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Page 1 of 15
New York, N.Y., July 24, 2012 — Sterling Bancorp (NYSE: STL) today reported a 94% increase in net income available to common shareholders for the 2012 second quarter, rising to $4.9 million from $2.5 million in the 2011 second quarter. Net income available to common shareholders per share doubled to $0.16 for the 2012 second quarter, from$0.08 in the year-ago period.
For the first six months of 2012, net income available to common shareholders rose 63% to $9.5 million from $5.8 million in the same period of 2011. Net income available to common shareholders per share was up55% to $0.31 for the first six months of 2012, from $0.20 in the year-ago period. Results for the 2011 second quarter and six months included dividends on preferred shares and accretion of $1.4 million and $2.1 million, respectively, related to TARP preferred shares and warrants to purchase common shares, which were redeemed in April 2011.
Execution of Growth Strategies Drives Positive Momentum
“Sterling delivered outstanding second quarter results,” said Louis J. Cappelli, Sterling’s Chairman and Chief Executive Officer. “Our EPS doubled on the strength of our continued growth in loans and deposits, higher total revenues, well-controlled expenses and further improvements in our already solid asset quality metrics.”
“Our performance is a reflection of Sterling’s strong core earnings power – as we have focused our strategies on positioning the Company for profitable growth and increasing shareholder value,” Mr. Cappelli continued. “We have aligned our product portfolio to serve the needs of businesses and others in the New York City-metropolitan region and beyond – a dynamic and robust market. We have a depth of expertise in an array of products, including categories that are often overlooked or underserved by competitors, which gives us many opportunities for growth. We also have pursued an ongoing strategy to redeploy assets from our sizeable and liquid investment portfolio into loans, producing an improvement in our yield and net interest margin. At the same time, we have a diversified revenue-generation capacity; our relatively high level of noninterest income, at approximately 30% of total revenues, provides balance and consistency at a time when loan yields are affected by the low interest rate environment. And we have contributed to our positive momentum through well-controlled expenses, which increased only $388 thousand compared to the $1.4 million growth in total revenues in the recent quarter. In addition, asset quality has continued to improve from an already solid base.”
“We feel very positive about our ability to drive profitable growth during the remainder of this year,” noted Mr. Cappelli. “We remain focused on delivering increasing shareholder value by expanding our business volume and market share, growing our revenues, and maintaining control of expenses along with rigorous asset quality standards.”
Page 2 of 15
Net Interest Income
Net interest income rose 7% to $22.9 million for the 2012 second quarter, from $21.4 million for the 2011 second quarter. This primarily reflected the Company’s execution of its strategy to shift the asset mix toward higher loan balances and lower investment securities balances, with a resulting increase in yields, while also taking a disciplined approach to reducing funding costs. Net interest margin increased to 4.04% for the 2012 second quarter, up 14 basis points compared to the year-ago period. For the first six months of 2012, net interest income increased to $45.3 million, from $41.2 million for the 2011 period.
Noninterest Income
Total noninterest income was $10.7 million for the 2012 second quarter, compared to $10.4 million in the 2011 second quarter. This increase primarily reflected higher mortgage banking income and service charges, partially offset by lower accounts receivable management and other related fees and reduced securities gains. For the first six months of 2012, total noninterest income was $21.1 million, versus $21.4 million in the year-ago period. Noninterest income was a key contributor to Sterling’s financial performance, representing approximately 29% of total revenue in both the second quarter and first six months of 2012.
Noninterest Expenses
Noninterest expenses were $23.8 million for the 2012 second quarter, an increase of only $388 thousand or less than 2%, from the 2011 second quarter. For the first six months of 2012, noninterest expenses were $47.0 million, an increase of approximately 2% from the same period of 2011.
Loans, Deposits and Total Assets
Total loans held in portfolio were $1.57 billion at June 30, 2012, increasing 15% from a year earlier. Sterling continues to have a robust loan pipeline and ample liquidity to support loan growth. The ratio of portfolio loans to deposits was approximately 76.6% at June 30, 2012.
Total deposits were$2.04 billion at June 30, 2012. Noninterest-bearing demand deposits totaled $786.4 million at June 30, 2012, a $184.1 million increase from a year ago, and represented 38% of total deposits, among the highest ratios of demand to total deposits in the industry.
Total assets were $2.55 billion at June 30, 2012, essentially unchanged from $2.58 billion a year ago.
Page 3 of 15
Asset Quality
Sterling continued to exhibit strong credit quality metrics during the 2012 second quarter. The provision for loan losses decreased to $2.75 million from $3.0 million for the same quarter of 2011, representing the lowest provision since the fourth quarter of 2008. Net charge-offs were $1.7 million for the 2012 second quarter, the lowest level since the third quarter of 2008, and compared to $2.5 million a year ago. The allowance for loan losses as a percentage of nonaccrual loans was 377% at June 30, 2012, versus 323% a year earlier. Nonperforming assets were $7.1 million or 0.28% of total assets at June 30, 2012, compared to $7.7 million or 0.30% a year ago. The allowance for loan losses as a percentage of portfolio loans was 1.35% at June 30, 2012, essentially unchanged from a year earlier.
Capital
The Company’s capital base has continued to exceed all regulatory requirements for well-capitalized institutions. At June 30, 2012, Sterling’s Tier 1 risk-based capital ratio was 11.81% (compared to a requirement of 6.00%), total risk-based capital was 12.89% (requirement of 10.00%), and the Tier 1 leverage ratio was 9.58% (requirement of 5.00%). The tangible common equity ratio was 8.09% at June 30, 2012.
Conference Call
Sterling Bancorp will host a teleconference call for the financial community on Tuesday, July 24, 2012, at 10:00 a.m. Eastern Time to discuss these financial results. To access the conference call live, interested parties may dial 800-288-9626 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 July 24, 2012, until 11:59 p.m. Eastern Time on August 7, 2012. To access the replay by telephone, interested parties may dial 800-475-6701 and enter the Access Code 254258.
About Sterling Bancorp
Sterling Bancorp (NYSE: STL) is a New York City-based financial corporation with assets of $2.6 billion. Since 1929, Sterling National Bank, the Company’s principal banking subsidiary, has successfully served the needs of businesses, professionals and individuals in the NY 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 provides clients with a full range of depository and cash management services and 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.
Page 4 of 15
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 our ability to continue growth in loans, deposits and revenues, to control expenses and to improve asset quality metrics, our ability to continue profitable growth and enhance shareholder value, our ability to identify overlooked or underserved categories of loans and to offer a diverse array of products, our ability to redeploy assets from investment portfolio to loans and to produce improvements in our yield and net interest margin from such strategy, our ability to drive profitable growth during the remainder of 2012, and our ability to maintain expand our business volume and market share, 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, 2011.
# # #
Page 5 of 15
STERLING BANCORP
Consolidated
Financial Highlights
(Unaudited)
(dollars
in thousands, except per share data)
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2012 |
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2011 |
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2012 |
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2011 |
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BALANCE SHEET HIGHLIGHTS |
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Period End Balances |
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Investment securities |
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$ |
727,378 |
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$ |
900,000 |
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$ |
727,378 |
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$ |
900,000 |
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Loans held for sale |
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30,287 |
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25,154 |
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30,287 |
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25,154 |
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Loans held in portfolio, |
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1,565,580 |
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1,364,209 |
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1,565,580 |
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1,364,209 |
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Interest bearing deposits with other banks |
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39,517 |
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102,889 |
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39,517 |
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102,889 |
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Total earning assets |
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2,371,156 |
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2,400,996 |
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2,371,156 |
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2,400,996 |
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Allowance for loan losses |
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21,135 |
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18,535 |
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21,135 |
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18,535 |
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Total assets |
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2,551,696 |
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2,582,084 |
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2,551,696 |
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2,582,084 |
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Demand deposits |
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786,359 |
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602,240 |
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786,359 |
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602,240 |
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Savings, NOW and money market deposits |
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638,870 |
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636,203 |
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638,870 |
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636,203 |
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Time deposits |
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617,817 |
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762,351 |
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617,817 |
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762,351 |
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Customer repurchase agreements |
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43,199 |
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29,236 |
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43,199 |
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29,236 |
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Advances FHLB/Long-term borrowings |
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147,776 |
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154,230 |
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147,776 |
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154,230 |
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Shareholders’ equity |
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227,551 |
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219,256 |
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227,551 |
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219,256 |
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Average Balances |
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Investment securities |
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$ |
803,989 |
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$ |
922,785 |
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$ |
784,373 |
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$ |
882,609 |
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Loans held for sale |
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31,663 |
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23,232 |
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34,182 |
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24,629 |
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Loans held in portfolio, |
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1,483,436 |
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1,301,005 |
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1,444,353 |
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1,264,853 |
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Interest bearing deposits with other banks |
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35,962 |
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39,502 |
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56,530 |
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46,010 |
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Total earning assets |
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2,363,455 |
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2,295,260 |
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2,327,878 |
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2,227,039 |
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Total assets |
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2,533,439 |
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2,469,685 |
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2,496,744 |
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2,397,249 |
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Demand deposits |
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767,170 |
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553,516 |
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763,058 |
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545,868 |
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Savings, NOW and money market deposits |
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647,544 |
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584,841 |
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634,535 |
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576,431 |
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Time deposits |
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610,651 |
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712,431 |
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599,646 |
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663,281 |
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Customer repurchase agreements |
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42,151 |
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44,691 |
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40,962 |
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42,989 |
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Advances FHLB/Long-term borrowings |
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147,955 |
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154,351 |
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148,111 |
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159,642 |
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Shareholders’ equity |
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225,534 |
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229,868 |
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223,609 |
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230,636 |
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ASSET QUALITY HIGHLIGHTS |
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Period End |
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Net charge-offs |
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$ |
1,699 |
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$ |
2,500 |
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$ |
4,581 |
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$ |
5,698 |
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Nonaccrual loans |
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5,601 |
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5,739 |
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5,601 |
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5,739 |
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Other real estate owned |
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1,547 |
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2,004 |
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1,547 |
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2,004 |
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Nonperforming assets |
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7,148 |
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7,743 |
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7,148 |
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7,743 |
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Nonaccrual loans/loans (1) |
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0.35 |
% |
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0.41 |
% |
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0.35 |
% |
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0.41 |
% |
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Nonperforming assets/assets |
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0.28 |
% |
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0.30 |
% |
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0.28 |
% |
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0.30 |
% |
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Allowance for loan losses/loans (2) |
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1.35 |
% |
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1.36 |
% |
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1.35 |
% |
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1.36 |
% |
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Allowance for loan losses/nonaccrual loans |
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377.34 |
% |
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322.97 |
% |
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377.34 |
% |
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322.97 |
% |
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CAPITAL RATIOS |
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Period End |
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Tier 1 risk-based |
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11.81 |
% |
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12.36 |
% |
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11.81 |
% |
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12.36 |
% |
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Total risk-based |
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12.89 |
% |
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13.39 |
% |
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12.89 |
% |
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13.39 |
% |
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Leverage |
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9.58 |
% |
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9.47 |
% |
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9.58 |
% |
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9.47 |
% |
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Equity/assets |
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8.92 |
% |
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8.49 |
% |
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8.92 |
% |
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8.49 |
% |
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Tangible common equity |
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8.09 |
% |
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7.67 |
% |
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8.09 |
% |
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7.67 |
% |
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Book value per common share |
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$ |
7.36 |
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$ |
7.09 |
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$ |
7.36 |
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$ |
7.09 |
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Return on average equity |
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8.69 |
% |
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6.88 |
% |
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8.52 |
% |
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6.90 |
% |
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Return on average tangible equity |
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9.68 |
% |
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7.65 |
% |
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9.50 |
% |
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7.66 |
% |
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(1) |
The term “loans” includes loans held for sale and loans held in portfolio. |
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(2) |
The term “loans” includes loans held in portfolio only. |
Page 6 of 15
STERLING BANCORP
Consolidated
Balance Sheets
(Unaudited)
(dollars
in thousands, except number of shares)
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June 30, |
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2012 |
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2011 |
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ASSETS |
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Cash and due from banks |
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$ |
44,138 |
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$ |
39,906 |
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Interest-bearing deposits with other banks |
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39,517 |
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102,889 |
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Investment securities |
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Available for sale (at estimated fair value) |
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348,714 |
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429,358 |
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Held to maturity (at amortized cost) |
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378,664 |
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470,642 |
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Total investment securities |
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727,378 |
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900,000 |
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Loans held for sale |
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30,287 |
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25,154 |
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Loans held in portfolio, net of unearned discounts |
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1,565,580 |
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1,364,209 |
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Less allowance for loan losses |
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21,135 |
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18,535 |
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Loans held in portfolio, net |
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1,544,445 |
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1,345,674 |
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Federal Reserve Bank and Federal Home Loan Bank stock, at cost |
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8,394 |
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8,744 |
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Goodwill |
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22,901 |
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22,901 |
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Premises and equipment, net |
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23,174 |
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22,384 |
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Other real estate |
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1,547 |
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2,004 |
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Accrued interest receivable |
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8,077 |
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9,515 |
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Cash surrender value of life insurance policies |
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54,039 |
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52,510 |
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Other assets |
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47,799 |
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50,403 |
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$ |
2,551,696 |
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$ |
2,582,084 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Deposits |
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Demand |
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$ |
786,359 |
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$ |
602,240 |
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Savings, NOW and money market |
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638,870 |
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636,203 |
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Time |
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617,817 |
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762,351 |
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Total deposits |
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2,043,046 |
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2,000,794 |
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Securities sold under agreements to repurchase - customers |
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43,199 |
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29,236 |
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Securities sold under agreements to repurchase - dealers |
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0 |
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5,000 |
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Short-term borrowings - other |
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17,455 |
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39,292 |
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Advances - FHLB |
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122,002 |
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128,456 |
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Long-term borrowings - subordinated debentures |
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25,774 |
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25,774 |
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Accrued interest payable |
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754 |
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974 |
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Due to factored clients |
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0 |
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70,615 |
|
|
Accrued expenses and other liabilities |
|
|
71,915 |
|
|
62,687 |
|
|
Total liabilities |
|
|
2,324,145 |
|
|
2,362,828 |
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity |
|
|
227,551 |
|
|
219,256 |
|
|
|
|
$ |
2,551,696 |
|
$ |
2,582,084 |
|
|
MEMORANDA |
|
|
|
|
|
|
|
|
Available for sale securities - amortized cost |
|
$ |
347,407 |
|
$ |
427,729 |
|
|
Held to maturity securities - estimated fair value |
|
|
395,298 |
|
|
480,729 |
|
|
Shares outstanding |
|
|
|
|
|
|
|
|
Common issued |
|
|
35,225,110 |
|
|
35,225,110 |
|
|
Common in treasury |
|
|
4,307,972 |
|
|
4,300,278 |
|
NOTE: Certain reclassifications have been made to prior period’s financial data to conform to current financial statement presentations.
Page 7 of 15
STERLING BANCORP
Consolidated
Statements of Income
(Unaudited)
(dollars
in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
||||||||
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
||||
|
INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
20,044 |
|
$ |
18,110 |
|
$ |
39,730 |
|
$ |
35,285 |
|
|
Investment securities - available for sale |
|
|
2,643 |
|
|
2,824 |
|
|
5,020 |
|
|
5,378 |
|
|
Investment securities - held to maturity |
|
|
2,844 |
|
|
3,482 |
|
|
5,874 |
|
|
6,879 |
|
|
FRB and FHLB stock |
|
|
134 |
|
|
143 |
|
|
215 |
|
|
166 |
|
|
Deposits with other banks |
|
|
18 |
|
|
22 |
|
|
64 |
|
|
57 |
|
|
Total interest income |
|
|
25,683 |
|
|
24,581 |
|
|
50,903 |
|
|
47,765 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings, NOW and money market deposits |
|
|
658 |
|
|
700 |
|
|
1,302 |
|
|
1,400 |
|
|
Time deposits |
|
|
1,012 |
|
|
1,382 |
|
|
2,075 |
|
|
2,742 |
|
|
Securities sold u/a/r - customers |
|
|
38 |
|
|
52 |
|
|
74 |
|
|
100 |
|
|
Securities sold u/a/r - dealers |
|
|
15 |
|
|
17 |
|
|
31 |
|
|
33 |
|
|
Short-term borrowings - other |
|
|
16 |
|
|
18 |
|
|
28 |
|
|
32 |
|
|
Advances - FHLB |
|
|
518 |
|
|
500 |
|
|
1,037 |
|
|
1,164 |
|
|
Long-term subordinated debentures |
|
|
524 |
|
|
524 |
|
|
1,047 |
|
|
1,047 |
|
|
Total interest expense |
|
|
2,781 |
|
|
3,193 |
|
|
5,594 |
|
|
6,518 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
22,902 |
|
|
21,388 |
|
|
45,309 |
|
|
41,247 |
|
|
Provision for loan losses |
|
|
2,750 |
|
|
3,000 |
|
|
5,750 |
|
|
6,000 |
|
|
Net interest income after provision for loan losses |
|
|
20,152 |
|
|
18,388 |
|
|
39,559 |
|
|
35,247 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable management/ |
|
|
5,065 |
|
|
5,768 |
|
|
9,933 |
|
|
10,837 |
|
|
Service charges on deposit accounts |
|
|
1,615 |
|
|
1,432 |
|
|
3,028 |
|
|
2,803 |
|
|
Trade finance income |
|
|
467 |
|
|
540 |
|
|
967 |
|
|
1,128 |
|
|
Other customer related service charges and fees |
|
|
256 |
|
|
242 |
|
|
505 |
|
|
422 |
|
|
Mortgage banking income |
|
|
2,393 |
|
|
1,600 |
|
|
4,729 |
|
|
3,775 |
|
|
Income from life insurance policies |
|
|
536 |
|
|
297 |
|
|
792 |
|
|
572 |
|
|
Securities gains |
|
|
329 |
|
|
505 |
|
|
1,208 |
|
|
1,629 |
|
|
Gain (Loss) on sale of OREO |
|
|
0 |
|
|
5 |
|
|
(66 |
) |
|
5 |
|
|
Other income |
|
|
22 |
|
|
8 |
|
|
26 |
|
|
238 |
|
|
Total noninterest income |
|
|
10,683 |
|
|
10,397 |
|
|
21,122 |
|
|
21,409 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries |
|
|
11,168 |
|
|
11,061 |
|
|
22,355 |
|
|
21,671 |
|
|
Employee benefits |
|
|
3,727 |
|
|
3,404 |
|
|
7,451 |
|
|
7,054 |
|
|
Total personnel expense |
|
|
14,895 |
|
|
14,465 |
|
|
29,806 |
|
|
28,725 |
|
|
Occupancy and equipment expenses, net |
|
|
3,402 |
|
|
3,515 |
|
|
6,616 |
|
|
6,788 |
|
|
Advertising and marketing |
|
|
775 |
|
|
873 |
|
|
1,418 |
|
|
1,298 |
|
|
Professional fees |
|
|
1,508 |
|
|
889 |
|
|
2,411 |
|
|
1,707 |
|
|
Communications |
|
|
462 |
|
|
474 |
|
|
932 |
|
|
884 |
|
|
Deposit insurance |
|
|
540 |
|
|
897 |
|
|
1,124 |
|
|
1,830 |
|
|
Other expenses |
|
|
2,252 |
|
|
2,333 |
|
|
4,724 |
|
|
4,667 |
|
|
Total noninterest expenses |
|
|
23,834 |
|
|
23,446 |
|
|
47,031 |
|
|
45,899 |
|
|
Income before income taxes |
|
|
7,001 |
|
|
5,339 |
|
|
13,650 |
|
|
10,757 |
|
|
Provision for income taxes |
|
|
2,128 |
|
|
1,394 |
|
|
4,175 |
|
|
2,869 |
|
|
Net income |
|
|
4,873 |
|
|
3,945 |
|
|
9,475 |
|
|
7,888 |
|
|
Dividends on preferred shares and accretion |
|
|
0 |
|
|
1,430 |
|
|
0 |
|
|
2,074 |
|
|
Net income available to common |
|
$ |
4,873 |
|
$ |
2,515 |
|
$ |
9,475 |
|
$ |
5,814 |
|
Page 8 of 15
STERLING BANCORP
Consolidated
Statements of Income
(Unaudited)
(dollars
in thousands, except per share data)
(continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
||||||||
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
||||
|
Average number of common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
30,818,709 |
|
|
30,414,947 |
|
|
30,805,484 |
|
|
28,883,154 |
|
|
Diluted |
|
|
30,818,709 |
|
|
30,414,947 |
|
|
30,805,484 |
|
|
28,883,154 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.16 |
|
$ |
0.08 |
|
|
0.31 |
|
|
0.20 |
|
|
Diluted |
|
|
0.16 |
|
|
0.08 |
|
|
0.31 |
|
|
0.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per common share |
|
|
0.09 |
|
|
0.09 |
|
|
0.18 |
|
|
0.18 |
|
Page 9 of 15
STERLING BANCORP
Consolidated
Statements of Comprehensive Income
(Unaudited)
(dollars
in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
||||||||
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
||||
|
|
|||||||||||||
|
Net income |
|
$ |
4,873 |
|
$ |
3,945 |
|
$ |
9,475 |
|
$ |
7,888 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income, net of tax: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized holding (losses) gains on securities |
|
|
(338 |
) |
|
929 |
|
|
2,347 |
|
|
1,308 |
|
|
Reclassification adjustment for securities |
|
|
(183 |
) |
|
(208 |
) |
|
(671 |
) |
|
(606 |
) |
|
Amortization of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior service cost |
|
|
7 |
|
|
8 |
|
|
12 |
|
|
17 |
|
|
Net actuarial losses |
|
|
564 |
|
|
390 |
|
|
1,017 |
|
|
779 |
|
|
Comprehensive income |
|
$ |
4,923 |
|
$ |
5,064 |
|
$ |
12,180 |
|
$ |
9,386 |
|
STERLING BANCORP
Consolidated
Statements of Changes in Shareholders’ Equity
(Unaudited)
(dollars
in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
||||||||
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
||||
|
Balance, at beginning of period |
|
$ |
225,324 |
|
$ |
260,290 |
|
$ |
220,821 |
|
$ |
222,742 |
|
|
Net income for period |
|
|
4,873 |
|
|
3,945 |
|
|
9,475 |
|
|
7,888 |
|
|
Common shares issued |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
36,454 |
|
|
Stock option and restricted stock |
|
|
86 |
|
|
73 |
|
|
189 |
|
|
146 |
|
|
Preferred shares redeemed in connection with the |
|
|
0 |
|
|
(42,000 |
) |
|
0 |
|
|
(42,000 |
) |
|
Repurchase of warrant |
|
|
0 |
|
|
(945 |
) |
|
0 |
|
|
(945 |
) |
|
Cash dividends-Common shares |
|
|
(2,782 |
) |
|
(2,782 |
) |
|
(5,564 |
) |
|
(5,558 |
) |
|
Cash dividends-Preferred shares |
|
|
0 |
|
|
(420 |
) |
|
0 |
|
|
(945 |
) |
|
Surrender of shares issued under |
|
|
0 |
|
|
(24 |
) |
|
(75 |
) |
|
(24 |
) |
|
Unrealized holding (losses) gains on securities |
|
|
(338 |
) |
|
929 |
|
|
2,347 |
|
|
1,308 |
|
|
Reclassification adjustment for securities |
|
|
(183 |
) |
|
(208 |
) |
|
(671 |
) |
|
(606 |
) |
|
Amortization of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior service cost |
|
|
7 |
|
|
8 |
|
|
12 |
|
|
17 |
|
|
Net actuarial losses |
|
|
564 |
|
|
390 |
|
|
1,017 |
|
|
779 |
|
|
Balance, at end of period |
|
$ |
227,551 |
|
$ |
219,256 |
|
$ |
227,551 |
|
$ |
219,256 |
|
Page 10 of 15
STERLING BANCORP
Average
Balance Sheets [1]
(Unaudited)
(dollars
in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
||||||||||||||||
|
|
|
June 30, 2012 |
|
June 30, 2011 |
|
||||||||||||||
|
|
|
AVERAGE |
|
INTEREST |
|
AVERAGE |
|
AVERAGE |
|
INTEREST |
|
AVERAGE |
|
||||||
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with other banks |
|
$ |
35,962 |
|
$ |
18 |
|
|
0.20 |
% |
$ |
39,502 |
|
$ |
22 |
|
|
0.23 |
% |
|
Investment Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for sale - taxable |
|
|
398,737 |
|
|
2,465 |
|
|
2.47 |
|
|
419,513 |
|
|
2,558 |
|
|
2.44 |
|
|
Held to maturity - taxable |
|
|
249,691 |
|
|
1,441 |
|
|
2.31 |
|
|
347,142 |
|
|
2,170 |
|
|
2.50 |
|
|
Tax-exempt [2] |
|
|
155,561 |
|
|
2,431 |
|
|
6.25 |
|
|
156,130 |
|
|
2,428 |
|
|
6.22 |
|
|
Total investment securities |
|
|
803,989 |
|
|
6,337 |
|
|
3.15 |
|
|
922,785 |
|
|
7,156 |
|
|
3.10 |
|
|
FRB and FHLB stock [2] |
|
|
8,405 |
|
|
136 |
|
|
6.46 |
|
|
8,736 |
|
|
145 |
|
|
6.63 |
|
|
Loans, net of unearned discount [3] |
|
|
1,515,099 |
|
|
20,044 |
|
|
5.39 |
|
|
1,324,237 |
|
|
18,110 |
|
|
5.61 |
|
|
Total Interest-Earning Assets [2] |
|
|
2,363,455 |
|
|
26,535 |
|
|
4.52 |
% |
|
2,295,260 |
|
|
25,433 |
|
|
4.48 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
|
36,644 |
|
|
|
|
|
|
|
|
38,479 |
|
|
|
|
|
|
|
|
Allowance for loan losses |
|
|
(21,678 |
) |
|
|
|
|
|
|
|
(19,330 |
) |
|
|
|
|
|
|
|
Goodwill |
|
|
22,901 |
|
|
|
|
|
|
|
|
22,901 |
|
|
|
|
|
|
|
|
Other |
|
|
132,117 |
|
|
|
|
|
|
|
|
132,375 |
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
2,533,439 |
|
|
|
|
|
|
|
$ |
2,469,685 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings |
|
$ |
20,812 |
|
|
1 |
|
|
0.02 |
% |
$ |
17,916 |
|
|
3 |
|
|
0.05 |
% |
|
NOW |
|
|
212,453 |
|
|
64 |
|
|
0.12 |
|
|
209,021 |
|
|
102 |
|
|
0.20 |
|
|
Money market |
|
|
414,279 |
|
|
593 |
|
|
0.58 |
|
|
357,904 |
|
|
595 |
|
|
0.67 |
|
|
Time |
|
|
610,651 |
|
|
1,012 |
|
|
0.67 |
|
|
712,431 |
|
|
1,382 |
|
|
0.78 |
|
|
Total Interest-Bearing Deposits |
|
|
1,258,195 |
|
|
1,670 |
|
|
0.53 |
|
|
1,297,272 |
|
|
2,082 |
|
|
0.64 |
|
|
Borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities sold u/a/r - customers |
|
|
42,151 |
|
|
38 |
|
|
0.36 |
|
|
44,691 |
|
|
52 |
|
|
0.47 |
|
|
Securities sold u/a/r - dealers |
|
|
5,604 |
|
|
15 |
|
|
1.04 |
|
|
5,744 |
|
|
17 |
|
|
1.15 |
|
|
Federal funds purchased |
|
|
11,592 |
|
|
6 |
|
|
0.20 |
|
|
24,978 |
|
|
7 |
|
|
0.12 |
|
|
Commercial paper |
|
|
15,306 |
|
|
10 |
|
|
0.29 |
|
|
14,123 |
|
|
10 |
|
|
0.30 |
|
|
Short-term borrowings - other |
|
|
0 |
|
|
0 |
|
|
0.00 |
|
|
4,579 |
|
|
1 |
|
|
0.12 |
|
|
Advances - FHLB |
|
|
122,181 |
|
|
518 |
|
|
1.70 |
|
|
128,577 |
|
|
500 |
|
|
1.56 |
|
|
Long-term borrowings - sub debt |
|
|
25,774 |
|
|
524 |
|
|
8.38 |
|
|
25,774 |
|
|
524 |
|
|
8.38 |
|
|
Total Borrowings |
|
|
222,608 |
|
|
1,111 |
|
|
2.01 |
|
|
248,466 |
|
|
1,111 |
|
|
1.80 |
|
|
Total Interest-Bearing Liabilities |
|
|
1,480,803 |
|
|
2,781 |
|
|
0.75 |
% |
|
1,545,738 |
|
|
3,193 |
|
|
0.83 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand deposits |
|
|
767,170 |
|
|
|
|
|
|
|
|
553,516 |
|
|
|
|
|
|
|
|
Total including noninterest-bearing |
|
|
2,247,973 |
|
|
2,781 |
|
|
0.51 |
% |
|
2,099,254 |
|
|
3,193 |
|
|
0.61 |
% |
|
Other liabilities |
|
|
59,932 |
|
|
|
|
|
|
|
|
140,563 |
|
|
|
|
|
|
|
|
Total Liabilities |
|
|
2,307,905 |
|
|
|
|
|
|
|
|
2,239,817 |
|
|
|
|
|
|
|
|
Shareholders’ equity |
|
|
225,534 |
|
|
|
|
|
|
|
|
229,868 |
|
|
|
|
|
|
|
|
Total Liabilities and Shareholders’ Equity |
|
$ |
2,533,439 |
|
|
|
|
|
|
|
$ |
2,469,685 |
|
|
|
|
|
|
|
|
Net interest income/spread [2] |
|
|
|
|
|
23,754 |
|
|
3.77 |
% |
|
|
|
|
22,240 |
|
|
3.65 |
% |
|
Net yield on interest-earning assets [2] |
|
|
|
|
|
|
|
|
4.04 |
% |
|
|
|
|
|
|
|
3.90 |
% |
|
Less: Tax-equivalent adjustment |
|
|
|
|
|
852 |
|
|
|
|
|
|
|
|
|
|
|
852 |
|
|
Net interest income |
|
|
|
|
$ |
22,902 |
|
|
|
|
|
|
|
|
|
|
$ |
21,388 |
|
|
|
|
|
[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. |
Page 11 of 15
STERLING BANCORP
Average
Balance Sheets [1]
(Unaudited)
(dollars
in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
||||||||||||||||
|
|
|
June 30, 2012 |
|
June 30, 2011 |
|
||||||||||||||
|
|
|
AVERAGE |
|
INTEREST |
|
AVERAGE |
|
AVERAGE |
|
INTEREST |
|
AVERAGE |
|
||||||
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with other banks |
|
$ |
56,530 |
|
$ |
64 |
|
|
0.23 |
% |
$ |
46,010 |
|
$ |
57 |
|
|
0.25 |
% |
|
Investment Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for sale - taxable |
|
|
362,549 |
|
|
4,636 |
|
|
2.56 |
|
|
394,396 |
|
|
4,746 |
|
|
2.41 |
|
|
Held to maturity - taxable |
|
|
265,034 |
|
|
3,074 |
|
|
2.32 |
|
|
331,716 |
|
|
4,357 |
|
|
2.63 |
|
|
Tax-exempt [2] |
|
|
156,790 |
|
|
4,898 |
|
|
6.25 |
|
|
156,497 |
|
|
4,852 |
|
|
6.20 |
|
|
Total investment securities |
|
|
784,373 |
|
|
12,608 |
|
|
3.22 |
|
|
882,609 |
|
|
13,955 |
|
|
3.16 |
|
|
FRB and FHLB stock [2] |
|
|
8,440 |
|
|
217 |
|
|
5.13 |
|
|
8,938 |
|
|
168 |
|
|
3.76 |
|
|
Loans, net of unearned discount [3] |
|
|
1,478,535 |
|
|
39,730 |
|
|
5.54 |
|
|
1,289,482 |
|
|
35,285 |
|
|
5.71 |
|
|
Total Interest-Earning Assets [2] |
|
|
2,327,878 |
|
|
52,619 |
|
|
4.59 |
% |
|
2,227,039 |
|
|
49,465 |
|
|
4.54 |
% |
|
Cash and due from banks |
|
|
37,125 |
|
|
|
|
|
|
|
|
37,712 |
|
|
|
|
|
|
|
|
Allowance for loan losses |
|
|
(21,631 |
) |
|
|
|
|
|
|
|
(19,572 |
) |
|
|
|
|
|
|
|
Goodwill |
|
|
22,901 |
|
|
|
|
|
|
|
|
22,901 |
|
|
|
|
|
|
|
|
Other |
|
|
130,471 |
|
|
|
|
|
|
|
|
129,169 |
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
2,496,744 |
|
|
|
|
|
|
|
$ |
2,397,249 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings |
|
$ |
19,889 |
|
|
2 |
|
|
0.02 |
% |
$ |
18,935 |
|
|
5 |
|
|
0.05 |
% |
|
NOW |
|
|
217,081 |
|
|
143 |
|
|
0.13 |
|
|
207,414 |
|
|
173 |
|
|
0.17 |
|
|
Money market |
|
|
397,565 |
|
|
1,157 |
|
|
0.59 |
|
|
350,082 |
|
|
1,222 |
|
|
0.70 |
|
|
Time |
|
|
599,646 |
|
|
2,075 |
|
|
0.70 |
|
|
663,281 |
|
|
2,742 |
|
|
0.83 |
|
|
Total Interest-Bearing Deposits |
|
|
1,234,181 |
|
|
3,377 |
|
|
0.55 |
|
|
1,239,712 |
|
|
4,142 |
|
|
0.67 |
|
|
Borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities sold u/a/r - customers |
|
|
40,962 |
|
|
74 |
|
|
0.36 |
|
|
42,989 |
|
|
100 |
|
|
0.47 |
|
|
Securities sold u/a/r - dealers |
|
|
5,302 |
|
|
31 |
|
|
1.16 |
|
|
5,374 |
|
|
33 |
|
|
1.21 |
|
|
Federal funds purchased |
|
|
7,032 |
|
|
7 |
|
|
0.19 |
|
|
14,961 |
|
|
9 |
|
|
0.12 |
|
|
Commercial paper |
|
|
14,943 |
|
|
21 |
|
|
0.29 |
|
|
14,885 |
|
|
22 |
|
|
0.30 |
|
|
Short-term borrowings - other |
|
|
0 |
|
|
0 |
|
|
0.00 |
|
|
3,590 |
|
|
1 |
|
|
0.08 |
|
|
Advances - FHLB |
|
|
122,337 |
|
|
1,037 |
|
|
1.70 |
|
|
133,868 |
|
|
1,164 |
|
|
1.75 |
|
|
Long-term borrowings - sub debt |
|
|
25,774 |
|
|
1,047 |
|
|
8.38 |
|
|
25,774 |
|
|
1,047 |
|
|
8.38 |
|
|
Total Borrowings |
|
|
216,350 |
|
|
2,217 |
|
|
2.06 |
|
|
241,441 |
|
|
2,376 |
|
|
1.98 |
|
|
Total Interest-Bearing Liabilities |
|
|
1,450,531 |
|
|
5,594 |
|
|
0.78 |
% |
|
1,481,153 |
|
|
6,518 |
|
|
0.89 |
% |
|
Noninterest-bearing demand deposits |
|
|
763,058 |
|
|
|
|
|
|
|
|
545,868 |
|
|
|
|
|
|
|
|
Total including noninterest-bearing |
|
|
2,213,589 |
|
|
5,594 |
|
|
0.53 |
% |
|
2,027,021 |
|
|
6,518 |
|
|
0.65 |
% |
|
Other liabilities |
|
|
59,546 |
|
|
|
|
|
|
|
|
139,592 |
|
|
|
|
|
|
|
|
Total Liabilities |
|
|
2,273,135 |
|
|
|
|
|
|
|
|
2,166,613 |
|
|
|
|
|
|
|
|
Shareholders’ equity |
|
|
223,609 |
|
|
|
|
|
|
|
|
230,636 |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Total Liabilities and Shareholders’ Equity |
|
$ |
2,496,744 |
|
|
|
|
|
|
|
$ |
2,397,249 |
|
|
|
|
|
|
|
|
Net interest income/spread [2] |
|
|
|
|
|
47,025 |
|
|
3.81 |
% |
|
|
|
|
42,947 |
|
|
3.65 |
% |
|
Net yield on interest-earning assets [2] |
|
|
|
|
|
|
|
|
4.09 |
% |
|
|
|
|
|
|
|
3.93 |
% |
|
Less: Tax-equivalent adjustment |
|
|
|
|
|
1,716 |
|
|
|
|
|
|
|
|
1,700 |
|
|
|
|
|
Net interest income |
|
|
|
|
$ |
45,309 |
|
|
|
|
|
|
|
$ |
41,247 |
|
|
|
|
|
|
|
|
[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 outstandi and income has been included to the extent earned. |
Page 12 of 15
STERLING BANCORP
Rate/Volume
Analysis [1]
(Unaudited)
(dollars
in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase/(Decrease) |
|
|||||||
|
|
|
Volume |
|
Rate |
|
Net [2] |
|
|||
|
INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with other banks |
|
$ |
(2 |
) |
$ |
(2 |
) |
$ |
(4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Securities |
|
|
|
|
|
|
|
|
|
|
|
Available for sale - taxable |
|
|
(124 |
) |
|
31 |
|
|
(93 |
) |
|
Held to maturity - taxable |
|
|
(574 |
) |
|
(155 |
) |
|
(729 |
) |
|
Tax-exempt |
|
|
(9 |
) |
|
12 |
|
|
3 |
|
|
Total investment securities |
|
|
(707 |
) |
|
(112 |
) |
|
(819 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
FRB and FHLB stock |
|
|
(5 |
) |
|
(4 |
) |
|
(9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned discounts [3] |
|
|
2,662 |
|
|
(728 |
) |
|
1,934 |
|
|
TOTAL INTEREST INCOME |
|
$ |
1,948 |
|
$ |
(846 |
) |
$ |
1,102 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
|
|
|
|
|
|
|
|
|
|
Domestic |
|
|
|
|
|
|
|
|
|
|
|
Savings |
|
$ |
0 |
|
$ |
(2 |
) |
$ |
(2 |
) |
|
NOW |
|
|
2 |
|
|
(40 |
) |
|
(38 |
) |
|
Money market |
|
|
85 |
|
|
(87 |
) |
|
(2 |
) |
|
Time |
|
|
(186 |
) |
|
(184 |
) |
|
(370 |
) |
|
Total interest-bearing deposits |
|
|
(99 |
) |
|
(313 |
) |
|
(412 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings |
|
|
|
|
|
|
|
|
|
|
|
Securities sold under agreements to repurchase - customers |
|
|
(3 |
) |
|
(11 |
) |
|
(14 |
) |
|
Securities sold under agreements to repurchase - dealers |
|
|
0 |
|
|
(2 |
) |
|
(2 |
) |
|
Federal funds purchased |
|
|
(5 |
) |
|
4 |
|
|
(1 |
) |
|
Commercial paper |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
Short-term borrowings - other |
|
|
(1 |
) |
|
0 |
|
|
(1 |
) |
|
Advances - FHLB |
|
|
(26 |
) |
|
44 |
|
|
18 |
|
|
Long-term borrowings - subordinated debentures |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
Total borrowings |
|
|
(35 |
) |
|
35 |
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL INTEREST EXPENSE |
|
$ |
(134 |
) |
$ |
(278 |
) |
$ |
(412 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME |
|
$ |
2,082 |
|
$ |
(568 |
) |
$ |
1,514 |
|
|
|
|
|
[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 short-term borrowings-other 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. |
Page 13 of 15
STERLING BANCORP
Rate/Volume
Analysis [1]
(Unaudited)
(dollars
in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase/(Decrease) |
|
|||||||
|
|
|
Volume |
|
Rate |
|
Net [2] |
|
|||
|
INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with other banks |
|
$ |
12 |
|
$ |
(5 |
) |
$ |
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Securities |
|
|
|
|
|
|
|
|
|
|
|
Available for sale - taxable |
|
|
(385 |
) |
|
275 |
|
|
(110 |
) |
|
Held to maturity - taxable |
|
|
(799 |
) |
|
(484 |
) |
|
(1,283 |
) |
|
Tax-exempt |
|
|
22 |
|
|
24 |
|
|
46 |
|
|
Total investment securities |
|
|
(1,162 |
) |
|
(185 |
) |
|
(1,347 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
FRB and FHLB stock |
|
|
(9 |
) |
|
58 |
|
|
49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned discounts [3] |
|
|
5,545 |
|
|
(1,100 |
) |
|
4,445 |
|
|
TOTAL INTEREST INCOME |
|
$ |
4,386 |
|
$ |
(1,232 |
) |
$ |
3,154 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
|
|
|
|
|
|
|
|
|
|
Domestic |
|
|
|
|
|
|
|
|
|
|
|
Savings |
|
$ |
0 |
|
$ |
(3 |
) |
$ |
(3 |
) |
|
NOW |
|
|
9 |
|
|
(39 |
) |
|
(30 |
) |
|
Money market |
|
|
151 |
|
|
(216 |
) |
|
(65 |
) |
|
Time |
|
|
(244 |
) |
|
(423 |
) |
|
(667 |
) |
|
Total interest-bearing deposits |
|
|
(84 |
) |
|
(681 |
) |
|
(765 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings |
|
|
|
|
|
|
|
|
|
|
|
Securities sold under agreements to repurchase - customers |
|
|
(4 |
) |
|
(22 |
) |
|
(26 |
) |
|
Securities sold under agreements to repurchase - dealers |
|
|
0 |
|
|
(2 |
) |
|
(2 |
) |
|
Federal funds purchased |
|
|
(6 |
) |
|
4 |
|
|
(2 |
) |
|
Commercial paper |
|
|
0 |
|
|
(1 |
) |
|
(1 |
) |
|
Short-term borrowings - other |
|
|
(1 |
) |
|
0 |
|
|
(1 |
) |
|
Advances - FHLB |
|
|
(94 |
) |
|
(33 |
) |
|
(127 |
) |
|
Long-term borrowings - subordinated debentures |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
Total borrowings |
|
|
(105 |
) |
|
(54 |
) |
|
(159 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL INTEREST EXPENSE |
|
$ |
(189 |
) |
$ |
(735 |
) |
$ |
(924 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME |
|
$ |
4,575 |
|
$ |
(497 |
) |
$ |
4,078 |
|
|
|
|
|
[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 short-term borrowings-other has been allocated entirely to the volume variance. The effect of the extra day in 2012 has been allocate 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. |
Page 14 of 15
STERLING BANCORP
Reconciliation
of Tangible Common Equity, Average Tangible 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 (if any), 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. Average tangible equity represents average shareholders’ equity less average goodwill and other intangible assets. Return on average tangible equity is calculated by dividing net income (annualized) by average tangible equity. 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.
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
||||
|
|
|
2012 |
|
2011 |
|
||
|
Tangible common equity |
|
|
|
|
|
|
|
|
Total shareholders’ equity |
|
$ |
227,551 |
|
$ |
219,256 |
|
|
Less: Goodwill and other intangible assets |
|
|
22,975 |
|
|
22,901 |
|
|
Total tangible common equity |
|
$ |
204,576 |
|
$ |
196,355 |
|
|
Tangible assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
2,551,696 |
|
$ |
2,582,084 |
|
|
Less: Goodwill and other intangible assets |
|
|
22,975 |
|
|
22,901 |
|
|
Total tangible assets |
|
$ |
2,528,721 |
|
$ |
2,559,183 |
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity ratio |
|
|
8.09 |
% |
|
7.67 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
||||||||
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
||||
|
Average tangible equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders’ equity |
|
$ |
225,534 |
|
$ |
229,868 |
|
$ |
223,609 |
|
$ |
230,636 |
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average goodwill and other intangible assets |
|
|
22,975 |
|
|
22,901 |
|
|
22,975 |
|
|
22,934 |
|
|
Average tangible equity |
|
$ |
202,559 |
|
$ |
206,967 |
|
$ |
200,634 |
|
$ |
207,702 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (annualized)/average tangible equity |
|
|
9.68 |
% |
|
7.65 |
% |
|
9.50 |
% |
|
7.66 |
% |
Page 15 of 15