Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - STERLING BANCORP | sterling_8k-012413.htm |
Exhibit 99.1
|
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 OF $20.0 MILLION FOR 2012, INCREASING 14% FROM THE PRIOR YEAR
REVENUE GROWTH, EXPENSE CONTROL AND CONTINUED SOUND ASSET QUALITY DRIVE STRONG PERFORMANCE FOR FULL YEAR AND FOURTH QUARTER OF 2012
LOANS GROW 17% AND DEPOSITS RISE 14%, REACHING RECORD LEVELS
|
Strong Financial Performance
|
|
|
•
|
Net income available to common shareholders was $20.0 million or $0.65 per diluted share for the full year and $5.2 million or $0.17 per diluted share for fourth quarter 2012.
|
|
•
|
Pre-tax income rose 31% for the full year and 58% in the fourth quarter of 2012, before the effect of a net tax benefit of approximately $1.9 million in the 2011 periods.
|
|
•
|
Gross revenues were $145.7 million for the full year 2012, an increase of $5.1 million over 2011.
|
|
•
|
Growth in gross revenues of 4% for 2012 exceeded the noninterest expense increase of 2%.
|
|
•
|
Net interest margin increased 16 basis points to 4.17% for full year 2012.
|
|
Robust Loan and Deposit Growth
|
|
|
•
|
Loans, net of unearned discount, reached an all-time high of $1.8 billion, increasing 17%.
|
|
•
|
Total deposits increased 14% to a record $2.3 billion.
|
|
•
|
Demand deposits of $924.4 million represented over 40% of total deposits.
|
|
Solid Credit Metrics
|
|
|
•
|
Net charge-offs were 0.47% of loans in portfolio for full year 2012.
|
|
•
|
Ratio of nonperforming assets to total assets decreased to 0.27%.
|
|
•
|
Allowance for loan losses as a percentage of loans held in portfolio was 1.35%.
|
|
|
Comparisons above are at, or for the periods ended, December 31, 2012 vs. December 31, 2011.
|
Page 1 of 16
New York, N.Y., January 24, 2013 — Sterling Bancorp (NYSE: STL) today reported strong financial and operating performance for 2012, reflecting a more profitable earning asset mix, ongoing business growth, expense control and continued sound asset quality.
Net income available to common shareholders rose to $20.0 million for the full year 2012, from $15.5 million in 2011. Pre-tax income was $28.6 million in 2012, 31% higher than the amount reported for 2011. Diluted earnings per common share were $0.65 for 2012, up from $0.51 a year ago. Results for the full year 2011 included $2.1 million of dividends on preferred shares and accretion related to TARP preferred shares and warrants to purchase common shares, which were redeemed in April 2011.
For the 2012 fourth quarter, net income available to common shareholders was $5.2 million, or $0.17 per diluted share. In the 2011 fourth quarter, Sterling recorded a tax benefit of approximately $1.9 million, or $0.06 per diluted share. Including this tax benefit, net income available to common shareholders for the 2011 fourth quarter was $5.3 million or $0.17 per diluted share. Pre-tax income for the 2012 fourth quarter, excluding the effect of the year-ago tax benefit, rose 58% to $7.1 million.
Selected Financial Highlights
|
Year Ended
|
||||||||
|
12/31/12
|
12/31/11
|
|||||||
|
EARNINGS HIGHLIGHTS
|
||||||||
|
Income before income taxes (in millions)
|
$ | 28.6 | $ | 21.8 | ||||
|
Net income available to common shareholders (in millions)
|
$ | 20.0 | $ | 15.5 | ||||
|
Diluted earnings per common share
|
$ | 0.65 | $ | 0.51 | ||||
|
Net interest margin
|
4.17 | % | 4.01 | % | ||||
|
Return on average assets
|
0.78 | % | 0.70 | % | ||||
|
Return on average tangible equity
|
9.80 | % | 8.72 | % | ||||
|
AVERAGE BALANCE SHEET HIGHLIGHTS (in millions)
|
||||||||
|
Year Ended
|
||||||||
|
12/31/12
|
12/31/11
|
|||||||
|
Total investment securities
|
$ | 755.4 | $ | 851.0 | ||||
|
Loans, net of unearned discount
|
$ | 1,583.8 | $ | 1,379.4 | ||||
|
Demand deposits
|
$ | 782.8 | $ | 596.6 | ||||
|
Total deposits
|
$ | 2,081.8 | $ | 1,921.7 | ||||
|
Total assets
|
$ | 2,576.8 | $ | 2,508.2 | ||||
|
ASSET QUALITY HIGHLIGHTS (period end)
|
||||||||
|
Nonaccrual loans/loans (1)
|
0.33 | % | 0.42 | % | ||||
|
Nonperforming assets/assets
|
0.27 | % | 0.33 | % | ||||
|
Allowance for loan losses/nonaccrual loans
|
377.36 | % | 315.02 | % | ||||
|
(1) Includes loans held for sale and loans held in portfolio.
|
||||||||
Page 2 of 16
2012 Results Reflect Business Growth, Higher Profitability
“Sterling delivered outstanding growth and strong profitability in 2012,” said Louis J. Cappelli, Sterling’s Chairman and Chief Executive Officer. “Our accomplishments during the year were noteworthy for double-digit increases in loans and deposits, as we continued to capitalize on opportunities to serve the needs of customers in the dynamic New York metropolitan area marketplace and beyond. We delivered higher gross revenues, through an increase in interest income and diverse sources of noninterest income. In addition, we maintained disciplined management of operating expenses, even as we expanded the business organically and through an accretive acquisition, while our sound asset quality metrics were further strengthened.”
“We have consistently pointed to our strategic focus on redeploying assets from lower yielding investments into higher yielding loans, and our results in 2012 benefitted from the successful execution of this strategy. This has led to higher loan balances, a more profitable earning asset mix, and a higher net interest margin, enabling Sterling to counter the margin compression that many other banks have experienced due to prevailing low interest rates. Our loan portfolio grew by 17% year-over-year and reached an all-time high of $1.8 billion at year end. Loans represented over 65% of earning assets for 2012 on average, a meaningful increase versus a year ago. Deploying our assets more profitably led to a 16 basis point increase in the net interest margin for the year 2012. Our model is built upon providing a portfolio of financial solutions for businesses, and the growth in our business activity produced higher noninterest income, as well as higher demand deposit balances.”
“Another highlight of 2012 was our well-timed and successful acquisition of Universal Mortgage, Inc. in the third quarter. This transaction was planned in advance of the current rebound in the mortgage market and, as expected, has proven to be an excellent source of additional mortgage volume and higher mortgage banking income. Reflecting the positive impact of the Universal acquisition, and the growth in our overall mortgage banking business, we saw a sharp increase in mortgage banking income in the 2012 fourth quarter. We believe there are opportunities to expand upon Universal’s well-established presence and relationships in Brooklyn, a market that is experiencing exceptional growth and has a high demand for all of our financial products. We plan to open a new Brooklyn location in the 2013 first quarter to serve both as a branch and as new and expanded offices for Universal Mortgage.”
“We believe the positive momentum we experienced in 2012 is continuing and that Sterling is well positioned for 2013. Our performance in the year ahead should continue to benefit from the strengths and strategies that drove our solid results last year. Our team has demonstrated its ability to grow the business. We believe that our ability to redeploy our assets, while generating revenue from a diverse and balanced range of sources, and serving the needs of customers in a vibrant marketplace with our dedicated team of talented professionals will continue to contribute to enhanced shareholder value going forward,” Mr. Cappelli stated.
Net Interest Income
Net interest income was $93.9 million for the full year 2012, up 8% from 2011. This primarily reflected a higher yield on earning assets due to the Company’s previously noted strategy of shifting its asset mix toward loans from investment securities, as well as a lower cost of funds largely due to disciplined deposit pricing. For the fourth quarter of 2012, net interest income increased nearly 9% from the 2011 period, to $24.8 million.
Page 3 of 16
Noninterest Income
Total noninterest income for full year 2012 was $40.8 million, relatively unchanged from a year ago. For the 2012 fourth quarter, total noninterest income was $9.6 million, up from $9.2 million in the 2011 period. The increase in the 2012 fourth quarter primarily reflected a sharp rise in mortgage banking income, which was partially offset by lower accounts receivable management and other related fees. Noninterest income was a significant contributor to Sterling’s financial performance, representing 28% of total revenue for the full year 2012.
Noninterest Expenses
Sterling strengthened its operating leverage during 2012, as the rate of growth in noninterest expenses was exceeded by the increase in gross revenues. Personnel and occupancy expenses rose modestly due to investments to support new business development and the addition of Universal Mortgage, while this increase was largely offset by declines in other key expense categories. As a result, total noninterest expenses increased by approximately 2% for full year 2012 to $95.9 million. For the 2012 fourth quarter, noninterest expenses rose less than 2% from the prior year period, to $24.9 million.
Record Loans and Deposits
Loans, net of unearned discount were a record $1.8 billion as of December 31, 2012, an increase of approximately 17% from a year earlier. The ratio of loans to deposits was 78% at December 31, 2012.
Total deposits were a record $2.3 billion at December 31, 2012, increasing 14% from a year earlier. Noninterest-bearing demand deposits represented over 40% of total deposits, among the highest ratios of demand to total deposits in the industry. The growth in demand deposits reflects the Company’s emphasis on generating such deposits as part of its customer relationship model.
Total assets increased to $2.7 billion and earning assets were $2.6 billion at December 31, 2012. The yield on earning assets rose six basis points to 4.64% for the full year 2012, reflecting the Company’s strategy of redeploying assets into higher yielding loans from lower yielding investment securities.
Asset Quality
“Sterling maintained our longstanding underwriting discipline while increasing our lending to creditworthy borrowers, leading to continued strong credit quality metrics during 2012. It is significant to note that our allowance for loan losses has increased as charge-offs have continued to decline, and that our earnings improvement did not benefit from a reduced allowance for loan losses, as has been the case at some banking institutions,” Mr. Cappelli said.
Page 4 of 16
Net charge-offs were $7.7 million for the year 2012, compared to $10.2 million for 2011. The allowance for loan losses as a percentage of nonaccrual loans was 377% at December 31, 2012, versus 315% a year earlier. Nonperforming assets were $7.4 million or 0.27% of total assets at December 31, 2012, compared to $8.3 million or 0.33% a year earlier. The allowance for loan losses as a percentage of portfolio loans was 1.35% at December 31, 2012, compared to 1.36% a year earlier. The provision for loan losses was $2.5 million and $10.3 million for the fourth quarter and full year 2012, compared with $3.0 million and $12.0 million for the respective 2011 periods.
Capital
The Company’s capital base has continued to exceed all regulatory requirements for well-capitalized institutions. At December 31, 2012, Sterling’s Tier 1 risk-based capital ratio was 11.49% (compared to a requirement of 6.00%), total risk-based capital was 12.58% (requirement of 10.00%), and the Tier 1 leverage ratio was 9.14% (requirement of 5.00%). The tangible common equity ratio was 7.50% at December 31, 2012.
Conference Call
Sterling Bancorp will hold a conference call on Thursday, January 24, 2013, at 10:00 a.m. Eastern Time to discuss these financial results. To access the conference call live, interested parties may dial 800-230-1096 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 24, 2013, until 11:59 p.m. Eastern Time on February 7, 2013. To access the replay by telephone, interested parties may dial 800-475-6701 and enter the Access Code 279219.
About Sterling Bancorp
Sterling Bancorp (NYSE: STL) is a New York City-based financial corporation with assets of $2.7 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 5 of 16
Certain statements in this press release, including, but not limited to, statements as to future results of operations, liquidity, interest rate risk, operating expenses, financial position, dividends and other events, plans and objectives for future operations, capital, liquidity and growth, statements concerning the economic environment, asset quality and future levels of nonaccrual loans, charge-offs and provisions for loan losses, our ability to continue capitalizing on opportunities to serve the needs of customers in the New York metropolitan market and beyond, as well as the strength of that market, to redeploy assets from lower yielding investments into higher yielding loans, to improve our earning asset mix, net interest margin and demand deposit balances, to counter margin compression, to effectively provide a portfolio of financial solutions for businesses, to continue to achieve additional mortgage volume and higher mortgage banking income from the Universal acquisition or otherwise, and to expand on Universal’s well-established presence and relationships in Brooklyn, the extent to which Brooklyn will experience continued growth and high demand for our financial products, our success in opening a Brooklyn location for Universal in the 2013 first quarter, the continuation of positive momentum for our business into 2013, whether our performance in 2013 will continue to benefit from the strengths and strategies that drove our results in 2012, our team’s ability to grow the business both organically and through acquisitions, whether acquisitions will be available and permissible and, if so, whether they will be well executed and contribute to growth, whether our strategy will continue to be to redeploy our assets, while generating revenue from a diverse and balanced range of sources, and serving the needs of customers and, if so, whether we can execute that strategy and enhance shareholder value going forward, whether we can continue to shift our asset mix toward loans from investment securities, our ability to maintain underwriting discipline, 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 6 of 16
STERLING BANCORP
Consolidated Financial Highlights
(Unaudited)
(dollars in thousands, except per share data)
|
Three Months Ended December 31,
|
Twelve Months Ended December 31,
|
|||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
|||||||||||||
|
BALANCE SHEET HIGHLIGHTS
|
||||||||||||||||
|
Period End Balances
|
||||||||||||||||
|
Investment securities
|
$ | 683,245 | $ | 677,871 | $ | 683,245 | $ | 677,871 | ||||||||
|
Loans held for sale
|
121,237 | 43,372 | 121,237 | 43,372 | ||||||||||||
|
Loans held in portfolio, net of unearned discount
|
1,649,753 | 1,473,309 | 1,649,753 | 1,473,309 | ||||||||||||
|
Interest bearing deposits with other banks
|
112,886 | 126,448 | 112,886 | 126,448 | ||||||||||||
|
Total earning assets
|
2,574,593 | 2,329,486 | 2,574,593 | 2,329,486 | ||||||||||||
|
Allowance for loan losses
|
22,347 | 20,029 | 22,347 | 20,029 | ||||||||||||
|
Total assets
|
2,749,711 | 2,493,297 | 2,749,711 | 2,493,297 | ||||||||||||
|
Demand deposits
|
924,351 | 765,800 | 924,351 | 765,800 | ||||||||||||
|
Savings, NOW and money market deposits
|
701,692 | 565,423 | 701,692 | 565,423 | ||||||||||||
|
Time deposits
|
642,041 | 657,848 | 642,041 | 657,848 | ||||||||||||
|
Customer repurchase agreements
|
32,950 | 47,313 | 32,950 | 47,313 | ||||||||||||
|
Advances FHLB/Long-term borrowings
|
127,039 | 148,507 | 127,039 | 148,507 | ||||||||||||
|
Shareholders' equity
|
228,090 | 220,821 | 228,090 | 220,821 | ||||||||||||
|
Average Balances
|
||||||||||||||||
|
Investment securities
|
718,377 | 751,832 | 755,399 | 850,997 | ||||||||||||
|
Loans held for sale
|
84,051 | 34,107 | 49,358 | 27,954 | ||||||||||||
|
Loans held in portfolio, net of unearned discount
|
1,659,001 | 1,447,410 | 1,534,478 | 1,351,407 | ||||||||||||
|
Interest bearing deposits with other banks
|
65,532 | 213,713 | 58,836 | 93,561 | ||||||||||||
|
Total earning assets
|
2,534,429 | 2,455,554 | 2,406,089 | 2,332,689 | ||||||||||||
|
Total assets
|
2,708,674 | 2,637,788 | 2,576,812 | 2,508,184 | ||||||||||||
|
Demand deposits
|
849,094 | 711,011 | 782,771 | 596,608 | ||||||||||||
|
Savings, NOW and money market deposits
|
686,271 | 611,691 | 653,292 | 596,007 | ||||||||||||
|
Time deposits
|
690,283 | 788,800 | 645,745 | 729,053 | ||||||||||||
|
Customer repurchase agreements
|
39,079 | 45,328 | 39,318 | 42,911 | ||||||||||||
|
Advances FHLB/Long-term borrowings
|
127,165 | 148,630 | 139,067 | 155,332 | ||||||||||||
|
Shareholders' equity
|
233,856 | 218,728 | 227,619 | 224,820 | ||||||||||||
|
ASSET QUALITY HIGHLIGHTS
|
||||||||||||||||
|
Period End
|
||||||||||||||||
|
Net charge-offs
|
$ | 2,278 | $ | 2,518 | $ | 7,725 | $ | 10,184 | ||||||||
|
Nonaccrual loans
|
5,922 | 6,358 | 5,922 | 6,358 | ||||||||||||
|
Other real estate owned
|
1,452 | 1,929 | 1,452 | 1,929 | ||||||||||||
|
Nonperforming assets
|
7,374 | 8,287 | 7,374 | 8,287 | ||||||||||||
|
Nonaccrual loans/loans (1)
|
0.33 | % | 0.42 | % | 0.33 | % | 0.42 | % | ||||||||
|
Nonperforming assets/assets
|
0.27 | % | 0.33 | % | 0.27 | % | 0.33 | % | ||||||||
|
Allowance for loan losses/loans (2)
|
1.35 | % | 1.36 | % | 1.35 | % | 1.36 | % | ||||||||
|
Allowance for loan losses/nonaccrual loans
|
377.36 | % | 315.02 | % | 377.36 | % | 315.02 | % | ||||||||
|
CAPITAL RATIOS
|
||||||||||||||||
|
Period End
|
||||||||||||||||
|
Tier 1 risk based
|
11.49 | % | 12.61 | % | 11.49 | % | 12.61 | % | ||||||||
|
Total risk based
|
12.58 | % | 13.71 | % | 12.58 | % | 13.71 | % | ||||||||
|
Leverage
|
9.14 | % | 9.02 | % | 9.14 | % | 9.02 | % | ||||||||
|
Equity/ assets
|
8.30 | % | 8.86 | % | 8.30 | % | 8.86 | % | ||||||||
|
Tangible common equity
|
7.50 | % | 8.01 | % | 7.50 | % | 8.01 | % | ||||||||
|
Book value per common share
|
$ | 7.37 | $ | 7.14 | $ | 7.37 | $ | 7.14 | ||||||||
|
Return on average equity
|
8.85 | % | 9.68 | % | 8.79 | % | 7.83 | % | ||||||||
|
Return on average tangible equity
|
9.84 | % | 10.82 | % | 9.80 | % | 8.72 | % | ||||||||
(1) The term "loans" includes loans held for sale and loans held in portfolio.
(2) The term "loans" includes loans held in portfolio only.
Page 7 of 16
STERLING BANCORP
Consolidated Balance Sheets
(Unaudited)
(dollars in thousands, except number of shares)
|
December 31,
|
||||||||
|
2012
|
2011
|
|||||||
|
ASSETS
|
||||||||
|
Cash and due from banks
|
$ | 38,944 | $ | 31,046 | ||||
|
Interest-bearing deposits with other banks
|
112,886 | 126,448 | ||||||
|
Investment securities
|
||||||||
|
Available for sale (at estimated fair value)
|
296,837 | 270,014 | ||||||
|
Held to maturity (at amortized cost)
|
386,408 | 407,857 | ||||||
|
Total investment securities
|
683,245 | 677,871 | ||||||
|
Loans held for sale
|
121,237 | 43,372 | ||||||
|
Loans held in portfolio, net of unearned discounts
|
1,649,753 | 1,473,309 | ||||||
|
Less allowance for loan losses
|
22,347 | 20,029 | ||||||
|
Loans held in portfolio, net
|
1,627,406 | 1,453,280 | ||||||
|
Federal Reserve Bank and Federal Home Loan Bank stock, at cost
|
7,472 | 8,486 | ||||||
|
Customers' liability under acceptances
|
- | 4 | ||||||
|
Goodwill
|
22,901 | 22,901 | ||||||
|
Premises and equipment, net
|
22,578 | 23,625 | ||||||
|
Other real estate
|
1,452 | 1,929 | ||||||
|
Accrued interest receivable
|
6,853 | 6,838 | ||||||
|
Cash surrender value of life insurance policies
|
54,553 | 53,446 | ||||||
|
Other assets
|
50,184 | 44,051 | ||||||
| $ | 2,749,711 | $ | 2,493,297 | |||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
|
Deposits
|
||||||||
|
Demand
|
$ | 924,351 | $ | 765,800 | ||||
|
Savings, NOW and money market
|
701,692 | 565,423 | ||||||
|
Time
|
642,041 | 657,848 | ||||||
|
Total deposits
|
2,268,084 | 1,989,071 | ||||||
|
Securities sold under agreements to repurchase - customers
|
32,950 | 47,313 | ||||||
|
Securities sold under agreements to repurchase - dealers
|
- | 5,000 | ||||||
|
Commercial paper and other short-term borrowings
|
15,345 | 13,485 | ||||||
|
Advances - FHLB
|
101,265 | 122,733 | ||||||
|
Long-term borrowings - subordinated debentures
|
25,774 | 25,774 | ||||||
|
Acceptances outstanding
|
- | 4 | ||||||
|
Accrued interest payable
|
649 | 1,064 | ||||||
|
Accrued expenses and other liabilities
|
77,554 | 68,032 | ||||||
|
Total liabilities
|
2,521,621 | 2,272,476 | ||||||
|
Shareholders' equity
|
228,090 | 220,821 | ||||||
| $ | 2,749,711 | $ | 2,493,297 | |||||
|
MEMORANDA
|
||||||||
|
Available for sale securities - amortized cost
|
$ | 291,574 | $ | 271,729 | ||||
|
Held to maturity securities - estimated fair value
|
403,218 | 425,775 | ||||||
|
Shares outstanding
|
||||||||
|
Common issued
|
35,263,768 | 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 8 of 16
STERLING BANCORP
Consolidated Statements of Income
(Unaudited)
(dollars in thousands, except per share data)
|
Three Months Ended December 31,
|
Twelve Months Ended December 31,
|
|||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
|||||||||||||
|
INTEREST INCOME
|
||||||||||||||||
|
Loans
|
$ | 22,758 | $ | 20,245 | $ | 83,982 | $ | 75,251 | ||||||||
|
Investment securities - available for sale
|
1,946 | 2,333 | 9,172 | 10,453 | ||||||||||||
|
Investment securities - held to maturity
|
2,612 | 3,133 | 11,196 | 13,363 | ||||||||||||
|
FRB and FHLB stock
|
127 | 130 | 409 | 371 | ||||||||||||
|
Deposits with other banks
|
39 | 135 | 136 | 227 | ||||||||||||
|
Total interest income
|
27,482 | 25,976 | 104,895 | 99,665 | ||||||||||||
|
INTEREST EXPENSE
|
||||||||||||||||
|
Savings, NOW and money market deposits
|
655 | 703 | 2,586 | 2,855 | ||||||||||||
|
Time deposits
|
1,023 | 1,371 | 4,151 | 5,583 | ||||||||||||
|
Securities sold u/a/r - customers
|
34 | 41 | 141 | 186 | ||||||||||||
|
Securities sold u/a/r - dealers
|
- | 17 | 31 | 66 | ||||||||||||
|
Federal funds purchased
|
2 | - | 22 | 14 | ||||||||||||
|
Commercial paper and other
|
||||||||||||||||
|
short-term borrowings
|
12 | 9 | 43 | 45 | ||||||||||||
|
Advances - FHLB
|
419 | 497 | 1,913 | 2,144 | ||||||||||||
|
Long-term subordinated debentures
|
524 | 524 | 2,094 | 2,094 | ||||||||||||
|
Total interest expense
|
2,669 | 3,162 | 10,981 | 12,987 | ||||||||||||
|
Net interest income
|
24,813 | 22,814 | 93,914 | 86,678 | ||||||||||||
|
Provision for loan losses
|
2,500 | 3,000 | 10,250 | 12,000 | ||||||||||||
|
Net interest income after provision for loan losses
|
22,313 | 19,814 | 83,664 | 74,678 | ||||||||||||
|
NONINTEREST INCOME
|
||||||||||||||||
|
Accounts receivable management/factoring commissions and other fees
|
3,947 | 5,560 | 19,131 | 22,371 | ||||||||||||
|
Service charges on deposit accounts
|
1,333 | 1,269 | 5,301 | 5,093 | ||||||||||||
|
Trade finance income
|
460 | 487 | 1,922 | 2,222 | ||||||||||||
|
Other customer related service charges and fees
|
286 | 235 | 1,001 | 943 | ||||||||||||
|
Mortgage banking income
|
2,977 | 1,047 | 10,275 | 6,315 | ||||||||||||
|
Income from life insurance policies
|
276 | 280 | 1,315 | 1,140 | ||||||||||||
|
Securities gains
|
323 | 257 | 1,813 | 2,491 | ||||||||||||
|
Gain(Loss) on sale of OREO
|
14 | - | (61 | ) | - | |||||||||||
|
Other income
|
25 | 64 | 76 | 323 | ||||||||||||
|
Total noninterest income
|
9,641 | 9,199 | 40,773 | 40,898 | ||||||||||||
|
NONINTEREST EXPENSES
|
||||||||||||||||
|
Salaries
|
11,774 | 11,040 | 45,530 | 43,748 | ||||||||||||
|
Employee benefits
|
3,824 | 3,448 | 14,902 | 13,898 | ||||||||||||
|
Total personnel expense
|
15,598 | 14,488 | 60,432 | 57,646 | ||||||||||||
|
Occupancy and equipment expenses, net
|
3,644 | 3,391 | 13,689 | 13,248 | ||||||||||||
|
Advertising and marketing
|
623 | 713 | 2,815 | 2,792 | ||||||||||||
|
Professional fees
|
1,347 | 1,771 | 4,841 | 5,219 | ||||||||||||
|
Communications
|
521 | 442 | 2,029 | 1,756 | ||||||||||||
|
Deposit insurance
|
561 | 543 | 2,229 | 2,747 | ||||||||||||
|
Other expenses
|
2,579 | 3,191 | 9,849 | 10,376 | ||||||||||||
|
Total noninterest expenses
|
24,873 | 24,539 | 95,884 | 93,784 | ||||||||||||
|
Income before income taxes
|
7,081 | 4,474 | 28,553 | 21,792 | ||||||||||||
|
Provision(Benefit) for income taxes
|
1,881 | (864 | ) | 8,537 | 4,196 | |||||||||||
|
Net income
|
5,200 | 5,338 | 20,016 | 17,596 | ||||||||||||
|
Dividends on preferred shares and accretion
|
- | - | - | 2,074 | ||||||||||||
|
Net income available to common shareholders
|
$ | 5,200 | $ | 5,338 | $ | 20,016 | $ | 15,522 | ||||||||
Page 9 of 16
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,
|
|||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
|||||||||||||
|
Average number of common shares outstanding
|
||||||||||||||||
|
Basic
|
30,857,367 | 30,789,539 | 30,828,293 | 30,038,047 | ||||||||||||
|
Diluted
|
30,857,367 | 30,789,539 | 30,828,293 | 30,038,047 | ||||||||||||
|
Net income available to common shareholders per average common share
|
||||||||||||||||
|
Basic
|
$ | 0.17 | $ | 0.17 | $ | 0.65 | $ | 0.51 | ||||||||
|
Diluted
|
0.17 | 0.17 | 0.65 | 0.51 | ||||||||||||
|
Dividends per common share
|
0.09 | 0.09 | 0.36 | 0.36 | ||||||||||||
Page 10 of 16
STERLING BANCORP
Consolidated Statements of Comprehensive (Loss) Income
(Unaudited)
(dollars in thousands)
|
Three Months Ended December 31,
|
Twelve Months Ended December 31,
|
|||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
|||||||||||||
|
Net income
|
$ | 5,200 | $ | 5,338 | $ | 20,016 | $ | 17,596 | ||||||||
|
Other comprehensive (loss) income, net of tax:
|
||||||||||||||||
|
Unrealized holding gains on securities arising during the period
|
139 | 1,502 | 4,878 | 244 | ||||||||||||
|
Reclassification adjustment for securities gains included in net income
|
(179 | ) | (547 | ) | (1,006 | ) | (1,382 | ) | ||||||||
|
Pension liability adjustment - net actuarial losses
|
(8,438 | ) | (2,006 | ) | (8,438 | ) | (2,006 | ) | ||||||||
|
Amortization of:
|
||||||||||||||||
|
Prior service cost
|
5 | 9 | 21 | 35 | ||||||||||||
|
Net actuarial losses
|
626 | 514 | 2,270 | 1,780 | ||||||||||||
|
Comprehensive (loss) income
|
$ | (2,647 | ) | $ | 4,810 | $ | 17,741 | $ | 16,267 | |||||||
STERLING BANCORP
Consolidated Statements of Changes in Shareholders' Equity
(Unaudited)
(dollars in thousands)
|
Three Months Ended December 31,
|
Twelve Months Ended December 31,
|
|||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
|||||||||||||
|
Balance, at beginning of period
|
$ | 233,436 | $ | 218,685 | $ | 220,821 | $ | 222,742 | ||||||||
|
Net income for period
|
5,200 | 5,338 | 20,016 | 17,596 | ||||||||||||
|
Common shares issued
|
- | - | 375 | 36,454 | ||||||||||||
|
compensation expense
|
85 | 107 | 360 | 394 | ||||||||||||
|
Preferred shares redeemed in connection with the TARP Capital Purchase Program
|
- | - | - | (42,000 | ) | |||||||||||
|
Repurchase of warrant
|
- | - | - | (945 | ) | |||||||||||
|
Cash dividends - common shares
|
(2,784 | ) | (2,781 | ) | (11,132 | ) | (11,122 | ) | ||||||||
|
Cash dividends - preferred shares
|
- | - | - | (945 | ) | |||||||||||
|
Surrender of shares issued under incentive compensation plan
|
- | - | (75 | ) | (24 | ) | ||||||||||
|
Unrealized holding gains on securities arising during the period
|
139 | 1,502 | 4,878 | 244 | ||||||||||||
|
Reclassification adjustment for securities gains included in net income
|
(179 | ) | (547 | ) | (1,006 | ) | (1,382 | ) | ||||||||
|
Pension liability adjustment - net actuarial losses
|
(8,438 | ) | (2,006 | ) | (8,438 | ) | (2,006 | ) | ||||||||
|
Amortization of:
|
||||||||||||||||
|
Prior service cost
|
5 | 9 | 21 | 35 | ||||||||||||
|
Net actuarial losses
|
626 | 514 | 2,270 | 1,780 | ||||||||||||
|
Balance, at end of period
|
$ | 228,090 | $ | 220,821 | $ | 228,090 | $ | 220,821 | ||||||||
Page 11 of 16
STERLING BANCORP
Average Balance Sheets [1]
(Unaudited)
(dollars in thousands)
| Three Months Ended | ||||||||||||||||||||||||
|
December 31, 2012
|
December 31, 2011
|
|||||||||||||||||||||||
|
AVERAGE
|
AVERAGE
|
AVERAGE
|
AVERAGE
|
|||||||||||||||||||||
|
BALANCE
|
INTEREST
|
RATE
|
BALANCE
|
INTEREST
|
RATE
|
|||||||||||||||||||
|
Assets
|
||||||||||||||||||||||||
|
Interest-bearing deposits with other banks
|
$ | 65,532 | $ | 39 | 0.24 | % | $ | 213,713 | $ | 135 | 0.25 | % | ||||||||||||
|
Investment Securities
|
||||||||||||||||||||||||
|
Available for sale - taxable
|
315,269 | 1,780 | 2.26 | 305,542 | 2,125 | 2.78 | ||||||||||||||||||
|
Held to maturity - taxable
|
250,624 | 1,229 | 1.96 | 288,493 | 1,743 | 2.42 | ||||||||||||||||||
|
Tax-exempt [2]
|
152,484 | 2,383 | 6.25 | 157,797 | 2,461 | 6.24 | ||||||||||||||||||
|
Total investment securities
|
718,377 | 5,392 | 3.00 | 751,832 | 6,329 | 3.37 | ||||||||||||||||||
|
FRB and FHLB stock [2]
|
7,468 | 129 | 6.88 | 8,492 | 130 | 6.17 | ||||||||||||||||||
|
Loans, net of unearned discount [3]
|
1,743,052 | 22,758 | 5.20 | 1,481,517 | 20,245 | 5.64 | ||||||||||||||||||
|
Total Interest-Earning Assets [2]
|
2,534,429 | 28,318 | 4.43 | % | 2,455,554 | 26,839 | 4.43 | % | ||||||||||||||||
|
Cash and due from banks
|
41,235 | 44,890 | ||||||||||||||||||||||
|
Allowance for loan losses
|
(23,701 | ) | (20,849 | ) | ||||||||||||||||||||
|
Goodwill
|
22,901 | 22,901 | ||||||||||||||||||||||
|
Other
|
133,810 | 135,292 | ||||||||||||||||||||||
|
Total Assets
|
$ | 2,708,674 | $ | 2,637,788 | ||||||||||||||||||||
|
Liabilities and Shareholders' Equity
|
||||||||||||||||||||||||
|
Interest-bearing deposits
|
||||||||||||||||||||||||
|
Domestic
|
||||||||||||||||||||||||
|
Savings
|
$ | 24,811 | 1 | 0.02 | % | $ | 18,545 | 1 | 0.03 | % | ||||||||||||||
|
NOW
|
220,227 | 60 | 0.11 | 203,280 | 83 | 0.16 | ||||||||||||||||||
|
Money market
|
441,233 | 594 | 0.54 | 389,866 | 619 | 0.63 | ||||||||||||||||||
|
Time
|
690,283 | 1,023 | 0.59 | 788,800 | 1,371 | 0.69 | ||||||||||||||||||
|
Total Interest-Bearing Deposits
|
1,376,554 | 1,678 | 0.48 | 1,400,491 | 2,074 | 0.59 | ||||||||||||||||||
|
Borrowings
|
||||||||||||||||||||||||
|
Securities sold u/a/r - customers
|
39,079 | 34 | 0.35 | 45,328 | 41 | 0.36 | ||||||||||||||||||
|
Securities sold u/a/r - dealers
|
- | - | - | 5,000 | 17 | 1.30 | ||||||||||||||||||
|
Federal funds purchased
|
3,740 | 2 | 0.22 | - | - | - | ||||||||||||||||||
|
Commercial paper and other short-term borrowings
|
16,167 | 12 | 0.29 | 16,827 | 9 | 0.23 | ||||||||||||||||||
|
Advances - FHLB
|
101,391 | 419 | 1.65 | 122,856 | 497 | 1.61 | ||||||||||||||||||
|
Long-term borrowings - sub debt
|
25,774 | 524 | 8.38 | 25,774 | 524 | 8.38 | ||||||||||||||||||
|
Total Borrowings
|
186,151 | 991 | 2.13 | 215,785 | 1,088 | 2.02 | ||||||||||||||||||
|
Total Interest-Bearing Liabilities
|
1,562,705 | 2,669 | 0.68 | % | 1,616,276 | 3,162 | 0.78 | % | ||||||||||||||||
|
Noninterest-bearing demand deposits
|
849,094 | 711,011 | ||||||||||||||||||||||
|
Total including noninterest-bearing demand deposits
|
2,411,799 | 2,669 | 0.45 | % | 2,327,287 | 3,162 | 0.56 | % | ||||||||||||||||
|
Other liabilities
|
63,019 | 91,773 | ||||||||||||||||||||||
|
Total Liabilities
|
2,474,818 | 2,419,060 | ||||||||||||||||||||||
|
Shareholders' equity
|
233,856 | 218,728 | ||||||||||||||||||||||
|
Total Liabilities and Shareholders' Equity
|
$ | 2,708,674 | $ | 2,637,788 | ||||||||||||||||||||
|
Net interest income/spread [2]
|
25,649 | 3.75 | % | 23,677 | 3.65 | % | ||||||||||||||||||
|
Net yield on interest-earning assets [2]
|
4.00 | % | 3.90 | % | ||||||||||||||||||||
|
Less: Tax-equivalent adjustment
|
836 | 863 | ||||||||||||||||||||||
|
Net interest income
|
$ | 24,813 | $ | 22,814 | ||||||||||||||||||||
|
[1]
|
The average balances of assets, liabilities and shareholders' equity are computed on the basis of daily averages. Average rates are presentedon 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 amountsoutstanding and income has been included to the extent earned.
|
Page 12 of 16
STERLING BANCORP
Average Balance Sheets [1]
(Unaudited)
(dollars in thousands)
| Twelve Months Ended | ||||||||||||||||||||||||
|
December 31, 2012
|
December 31, 2011
|
|||||||||||||||||||||||
|
AVERAGE
|
AVERAGE
|
AVERAGE
|
AVERAGE
|
|||||||||||||||||||||
|
BALANCE
|
INTEREST
|
RATE
|
BALANCE
|
INTEREST
|
RATE
|
|||||||||||||||||||
|
Assets
|
||||||||||||||||||||||||
|
Interest-bearing deposits with other banks
|
$ | 58,836 | $ | 136 | 0.23 | % | $ | 93,561 | $ | 227 | 0.24 | % | ||||||||||||
|
Investment Securities
|
||||||||||||||||||||||||
|
Available for sale - taxable
|
344,634 | 8,453 | 2.45 | 371,377 | 9,379 | 2.53 | ||||||||||||||||||
|
Held to maturity - taxable
|
255,878 | 5,622 | 2.20 | 322,312 | 8,078 | 2.51 | ||||||||||||||||||
|
Tax-exempt [2]
|
154,887 | 9,682 | 6.25 | 157,308 | 9,784 | 6.22 | ||||||||||||||||||
|
Total investment securities
|
755,399 | 23,757 | 3.14 | 850,997 | 27,241 | 3.20 | ||||||||||||||||||
|
FRB and FHLB stock [2]
|
8,018 | 413 | 5.14 | 8,770 | 374 | 4.27 | ||||||||||||||||||
|
Loans, net of unearned discount [3]
|
1,583,836 | 83,982 | 5.56 | 1,379,361 | 75,251 | 5.81 | ||||||||||||||||||
|
Total Interest-Earning Assets [2]
|
2,406,089 | 108,288 | 4.64 | % | 2,332,689 | 103,093 | 4.58 | % | ||||||||||||||||
|
Cash and due from banks
|
38,180 | 39,734 | ||||||||||||||||||||||
|
Allowance for loan losses
|
(22,444 | ) | (19,951 | ) | ||||||||||||||||||||
|
Goodwill
|
22,901 | 22,901 | ||||||||||||||||||||||
|
Other
|
132,086 | 132,811 | ||||||||||||||||||||||
|
Total Assets
|
$ | 2,576,812 | $ | 2,508,184 | ||||||||||||||||||||
|
Liabilities and Shareholders' Equity
|
||||||||||||||||||||||||
|
Interest-bearing deposits
|
||||||||||||||||||||||||
|
Domestic
|
||||||||||||||||||||||||
|
Savings
|
$ | 21,796 | 4 | 0.02 | % | $ | 18,474 | 8 | 0.04 | % | ||||||||||||||
|
NOW
|
218,021 | 258 | 0.12 | 210,443 | 372 | 0.18 | ||||||||||||||||||
|
Money market
|
413,475 | 2,324 | 0.56 | 367,090 | 2,475 | 0.67 | ||||||||||||||||||
|
Time
|
645,745 | 4,151 | 0.64 | 729,053 | 5,583 | 0.77 | ||||||||||||||||||
|
Total Interest-Bearing Deposits
|
1,299,037 | 6,737 | 0.52 | 1,325,060 | 8,438 | 0.64 | ||||||||||||||||||
|
Borrowings
|
||||||||||||||||||||||||
|
Securities sold u/a/r - customers
|
39,318 | 141 | 0.36 | 42,911 | 186 | 0.43 | ||||||||||||||||||
|
Securities sold u/a/r - dealers
|
2,637 | 31 | 1.18 | 5,186 | 66 | 1.27 | ||||||||||||||||||
|
Federal funds purchased
|
10,093 | 22 | 0.22 | 10,926 | 14 | 0.13 | ||||||||||||||||||
|
Commercial paper and other short-term borrowings
|
14,826 | 43 | 0.29 | 18,120 | 45 | 0.25 | ||||||||||||||||||
|
Advances - FHLB
|
113,293 | 1,913 | 1.69 | 129,558 | 2,144 | 1.66 | ||||||||||||||||||
|
Long-term borrowings - sub debt
|
25,774 | 2,094 | 8.38 | 25,774 | 2,094 | 8.38 | ||||||||||||||||||
|
Total Borrowings
|
205,941 | 4,244 | 2.07 | 232,475 | 4,549 | 1.96 | ||||||||||||||||||
|
Total Interest-Bearing Liabilities
|
1,504,978 | 10,981 | 0.73 | % | 1,557,535 | 12,987 | 0.83 | % | ||||||||||||||||
|
Noninterest-bearing demand deposits
|
782,771 | 596,608 | ||||||||||||||||||||||
|
Total including noninterest-bearing demand deposits
|
2,287,749 | 10,981 | 0.50 | % | 2,154,143 | 12,987 | 0.61 | % | ||||||||||||||||
|
Other liabilities
|
61,444 | 129,221 | ||||||||||||||||||||||
|
Total Liabilities
|
2,349,193 | 2,283,364 | ||||||||||||||||||||||
|
Shareholders' equity
|
227,619 | 224,820 | ||||||||||||||||||||||
|
Total Liabilities and Shareholders' Equity
|
$ | 2,576,812 | $ | 2,508,184 | ||||||||||||||||||||
|
Net interest income/spread [2]
|
97,307 | 3.91 | % | 90,106 | 3.75 | % | ||||||||||||||||||
|
Net yield on interest-earning assets [2]
|
4.17 | % | 4.01 | % | ||||||||||||||||||||
|
Less: Tax-equivalent adjustment
|
3,393 | 3,428 | ||||||||||||||||||||||
|
Net interest income
|
$ | 93,914 | $ | 86,678 | ||||||||||||||||||||
|
[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 13 of 16
STERLING BANCORP
Rate/Volume Analysis [1]
(Unaudited)
(dollars in thousands)
|
Increase/(Decrease)
Three Months Ended |
||||||||||||
|
Volume
|
Rate
|
Net [2]
|
||||||||||
|
INTEREST INCOME
|
||||||||||||
|
Interest-bearing deposits with other banks
|
$ | (91 | ) | $ | (5 | ) | $ | (96 | ) | |||
|
Investment Securities
|
||||||||||||
|
Available for sale - taxable
|
66 | (411 | ) | (345 | ) | |||||||
|
Held to maturity - taxable
|
(210 | ) | (304 | ) | (514 | ) | ||||||
|
Tax-exempt
|
(82 | ) | 4 | (78 | ) | |||||||
|
Total investment securities
|
(226 | ) | (711 | ) | (937 | ) | ||||||
|
FRB and FHLB stock
|
(16 | ) | 15 | (1 | ) | |||||||
|
Loans, net of unearned discounts [3]
|
4,022 | (1,509 | ) | 2,513 | ||||||||
|
TOTAL INTEREST INCOME
|
$ | 3,689 | $ | (2,210 | ) | $ | 1,479 | |||||
|
INTEREST EXPENSE
|
||||||||||||
|
Interest-bearing deposits
|
||||||||||||
|
Domestic
|
||||||||||||
|
Savings
|
$ | - | $ | - | $ | - | ||||||
|
NOW
|
6 | (29 | ) | (23 | ) | |||||||
|
Money market
|
73 | (98 | ) | (25 | ) | |||||||
|
Time
|
(161 | ) | (187 | ) | (348 | ) | ||||||
|
Total interest-bearing deposits
|
(82 | ) | (314 | ) | (396 | ) | ||||||
|
Borrowings
|
||||||||||||
|
Securities sold under agreements to repurchase - customers
|
(6 | ) | (1 | ) | (7 | ) | ||||||
|
Securities sold under agreements to repurchase - dealers
|
(17 | ) | - | (17 | ) | |||||||
|
Federal funds purchased
|
2 | - | 2 | |||||||||
|
Commercial paper and other short-term borrowings
|
- | 3 | 3 | |||||||||
|
Advances - FHLB
|
(90 | ) | 12 | (78 | ) | |||||||
|
Long-term borrowings - subordinated debentures
|
- | - | - | |||||||||
|
Total borrowings
|
(111 | ) | 14 | (97 | ) | |||||||
|
TOTAL INTEREST EXPENSE
|
$ | (193 | ) | $ | (300 | ) | $ | (493 | ) | |||
|
NET INTEREST INCOME
|
$ | 3,882 | $ | (1,910 | ) | $ | 1,972 | |||||
|
[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 dueto volume and the change due to rate in proportion to the relationship of change due solely to each. The change in interest expense for securities sold u/a/r - dealers and 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.
|
Page 14 of 16
STERLING BANCORP
Rate/Volume Analysis [1]
(Unaudited)
(dollars in thousands)
|
Increase/(Decrease)
Twelve Months Ended |
||||||||||||
|
Volume
|
Rate
|
Net [2]
|
||||||||||
|
INTEREST INCOME
|
||||||||||||
|
Interest-bearing deposits with other banks
|
$ | (82 | ) | $ | (9 | ) | $ | (91 | ) | |||
|
Investment Securities
|
||||||||||||
|
Available for sale - taxable
|
(635 | ) | (291 | ) | (926 | ) | ||||||
|
Held to maturity - taxable
|
(1,527 | ) | (929 | ) | (2,456 | ) | ||||||
|
Tax-exempt
|
(144 | ) | 42 | (102 | ) | |||||||
|
Total investment securities
|
(2,306 | ) | (1,178 | ) | (3,484 | ) | ||||||
|
FRB and FHLB stock
|
(33 | ) | 72 | 39 | ||||||||
|
Loans, net of unearned discounts [3]
|
12,173 | (3,442 | ) | 8,731 | ||||||||
|
TOTAL INTEREST INCOME
|
$ | 9,752 | $ | (4,557 | ) | $ | 5,195 | |||||
|
INTEREST EXPENSE
|
||||||||||||
|
Interest-bearing deposits
|
||||||||||||
|
Domestic
|
||||||||||||
|
Savings
|
$ | 1 | $ | (5 | ) | $ | (4 | ) | ||||
|
NOW
|
15 | (129 | ) | (114 | ) | |||||||
|
Money market
|
290 | (441 | ) | (151 | ) | |||||||
|
Time
|
(568 | ) | (864 | ) | (1,432 | ) | ||||||
|
Total interest-bearing deposits
|
(262 | ) | (1,439 | ) | (1,701 | ) | ||||||
|
Borrowings
|
||||||||||||
|
Securities sold under agreements to repurchase - customers
|
(14 | ) | (31 | ) | (45 | ) | ||||||
|
Securities sold under agreements to repurchase - dealers
|
(30 | ) | (5 | ) | (35 | ) | ||||||
|
Federal funds purchased
|
(1 | ) | 9 | 8 | ||||||||
|
Commercial paper and other short-term borrowings
|
(9 | ) | 7 | (2 | ) | |||||||
|
Advances - FHLB
|
(269 | ) | 38 | (231 | ) | |||||||
|
Long-term borrowings - subordinated debentures
|
- | - | - | |||||||||
|
Total borrowings
|
(323 | ) | 18 | (305 | ) | |||||||
|
TOTAL INTEREST EXPENSE
|
$ | (585 | ) | $ | (1,421 | ) | $ | (2,006 | ) | |||
|
NET INTEREST INCOME
|
$ | 10,337 | $ | (3,136 | ) | $ | 7,201 | |||||
|
[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 dueto volume and the change due to rate in proportion to the relationship of change due solely to each. The effect of the extra day in 2012 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 15 of 16
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.
|
December 31,
|
||||||||
|
2012
|
2011
|
|||||||
|
Tangible common equity
|
||||||||
|
Total shareholders' equity
|
$ | 228,090 | $ | 220,821 | ||||
|
Less: Goodwill and other intangible assets
|
23,674 | 22,975 | ||||||
|
Total tangible common equity
|
$ | 204,416 | $ | 197,846 | ||||
|
Tangible assets
|
||||||||
|
Total assets
|
$ | 2,749,711 | $ | 2,493,297 | ||||
|
Less: Goodwill and other intangible assets
|
23,674 | 22,975 | ||||||
|
Total tangible assets
|
$ | 2,726,037 | $ | 2,470,322 | ||||
|
Tangible common equity ratio
|
7.50 | % | 8.01 | % | ||||
|
Three Months Ended December 31,
|
Twelve Months Ended December 31,
|
|||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
|||||||||||||
|
Average tangible equity
|
||||||||||||||||
|
Average shareholders' equity
|
$ | 233,856 | $ | 218,728 | $ | 227,619 | $ | 224,820 | ||||||||
|
Less:
|
||||||||||||||||
|
Average goodwill and other intangible assets
|
23,683 | 22,975 | 23,273 | 22,975 | ||||||||||||
|
Average tangible equity
|
$ | 210,173 | $ | 195,753 | $ | 204,346 | $ | 201,845 | ||||||||
|
|
||||||||||||||||
|
Return on average tangible equity
|
||||||||||||||||
|
|
||||||||||||||||
|
Net income (annualized)/average tangible equity
|
9.84 | % | 10.82 | % | 9.80 | % | 8.72 | % | ||||||||
Page 16 of 16