MOUNT LAUREL, N.J., Nov. 1 /PRNewswire-FirstCall/ -- Sterling Bank
(NASDAQ:STNJ) today reported income before taxes of $1,572,000 for
the nine month period ended September 30, 2006. This compared to
the nine month period ended September 30, 2005, which totaled
$2,036,000, reflects the absorption of the enhanced operating
expenses related to the expansion of the Bank's branch system; the
effects of the industry wide compression of net interest margins;
and a decline in the held for sale loan totals associated with
advances in support of the national student loan program. Net
income for the nine month period totaled $975,000, compared to net
income for the same period of 2005, which totaled $1,286,000. On a
basic and diluted per share basis, the net income for the nine
month period was $0.20 per share, compared to net income of $0.32
per share (adjusted for stock dividends) for the period ending
September 30, 2005. In addition, Sterling Bank today announced that
its Board of Directors has authorized a regular quarterly cash
dividend payment of $0.03 per common share. This cash dividend will
be paid on November 22, 2006, to shareholders of record as of
November 8, 2006. This represents the twelfth consecutive quarterly
cash dividend authorized and paid by Sterling Bank. Robert H. King,
President and Chief Executive Officer noted, "The current operating
environment continues to provide challenges, with industry-wide net
interest margin pressures and heightened pricing competition in
both the lending and deposit gathering arenas. However, our
progress in expanding Sterling Bank's retail network and the
quarter to quarter growth of core commercial loans, coupled with
the pending combination with Peoples Savings Bank, which is
expected to be finalized during the fourth quarter of 2006, or the
first quarter of 2007, represents meaningful progress and important
opportunities for the enhancement of our local market share and
operating performance." For the quarter ended September 30, 2006,
income before taxes totaled $482,000, compared to net income of
$858,000 for the third quarter of 2005. Net income amounted to
$299,000 for the third quarter of 2006, compared to net income of
$532,000 for the third quarter of 2005. On a basic and diluted per
share basis, net income for the third quarter of 2006 amounted to
$0.06 per share, compared to net income of $0.11 per share
(adjusted for stock dividends) for the third quarter of 2005.
Sterling Bank's change in earnings is attributable primarily to an
increase of $1,033,000, or 15%, in noninterest expenses, from $7.1
million during the first nine months of 2005, to $8.1 million
during the first nine months of 2006. An increase in compensation
expense of $590,000, or 15%, is primarily related to personnel
costs for staffing increases to support growth initiatives,
including our new Voorhees branch. Occupancy, equipment and data
processing expense increases of $369,000, or 21%, primarily as a
result of the opening of our new Voorhees branch in November 2005.
As of September 30, 2006, Sterling Bank's assets totaled $335
million, compared to assets of $343 million on September 30, 2005,
representing a 2% decrease. Total loans amounted to $248 million on
September 30, 2006, reflecting a decrease of 6% over total loans as
of September 30, 2005 of $265 million. Total deposits expanded to
$288 million on September 30, 2006, an increase of 3% from $279
million on September 30, 2005. The decrease in total loans is
primarily attributable to the decline in initial advances for
student loans originated through SLM, Inc. the national student
loan marketing association. These loans are classified as held for
sale, and have declined from $43.0 million as of September 30,
2005, to $4.2 million as of September 30, 2006. This decrease of
$38.8 million results from SLM's decision to self fund these
specific student loans. Core loan outstanding balances expanded to
$243.6 million on September 30, 2006, from $221.9 million on
September 30, 2005, a 10% increase. Sterling Bank Financial
Highlights (unaudited) As of, and for the nine months ended,
September 30, 2006 and September 30, 2005 Three Months Ended Nine
Months Ended 09/30/2006 09/30/2005 09/30/2006 09/30/2005 INCOME
STATEMENT Interest income $5,606,000 5,024,000 $16,905,000
13,830,000 Interest expense 2,635,000 1,898,000 7,617,000 4,978,000
Net interest income 2,971,000 3,126,000 9,288,000 8,852,000
Provision for loan losses 45,000 102,000 135,000 252,000 Net
interest income after provision for loan losses 2,926,000 3,024,000
9,153,000 8,600,000 Noninterest income 175,000 165,000 518,000
502,000 Noninterest expenses 2,619,000 2,331,000 8,099,000
7,066,000 Income before taxes 482,000 858,000 1,572,000 2,036,000
Income tax expense 183,000 326,000 597,000 750,000 Net income
$299,000 532,000 $975,000 1,286,000 PER SHARE DATA Basic and
Diluted earnings per share $0.06 $0.11 $0.20 $0.32 Dividends paid
on common shares $0.03 $0.03 $0.09 $0.09 Average shares outstanding
- Basic 4,775,810 4,760,171 4,770,885 4,000,335 Average shares
outstanding - Diluted 4,857,477 4,842,114 4,863,913 4,062,408
BALANCE SHEET Assets Cash & due from banks $12,161,000
$9,127,000 Federal funds sold 2,017,000 260,000 Total investment
securities 59,895,000 57,454,000 Restricted stock 1,655,000
2,394,000 Total loans 247,831,000 264,919,000 Allowance for loan
losses (1,290,000) (1,121,000) Other assets 12,393,000 9,658,000
Total assets $334,662,000 $342,691,000 Liabilities Total deposits
$287,703,000 $279,479,000 Total borrowings 10,735,000 28,291,000
Other liabilities 1,209,000 740,000 Total liabilities 299,647,000
308,510,000 Shareholders' equity Common stock 9,552,000 9,067,000
Additional paid-in capital 22,892,000 23,233,000 Retained earnings
3,311,000 2,538,000 Accumulated other comprehensive losses
(740,000) (657,000) Total shareholders' equity 35,015,000
34,181,000 Total liabilities and shareholders' equity $334,662,000
$342,691,000 PERFORMANCE RATIOS Book value per share $7.33 $7.18
Return on average assets 0.35% 0.63% 0.37% 0.53% Return on average
equity 3.43% 6.20% 3.80% 6.23% Net interest margin 3.67% 3.89%
3.75% 3.88% Sterling Bank is a community bank headquartered in
Burlington County, New Jersey, with assets of $335 million as of
September 30, 2006. Sterling Bank's main office is located in Mount
Laurel, New Jersey, and its six other Community Banking Centers are
located in Burlington and Camden Counties in New Jersey. Sterling
Bank began operations in December 1990 with the purpose of serving
consumers and small to medium-sized businesses in its market area.
The Bank's deposits are insured to the applicable regulatory limits
per depositor by the Federal Deposit Insurance Corporation.
Sterling Bank is a member of the Federal Reserve System. The common
stock of Sterling Bank is traded on the NASDAQ Capital Market under
the symbol "STNJ". For additional information about Sterling Bank
visit our website at http://www.sterlingnj.com/. This news release
may contain certain forward-looking statements, such as statements
of the Bank's plans, objectives, expectations, estimates and
intentions. Forward-looking statements may be identified by the use
of words such as "expects," "subject," "believe," "will,"
"intends," "will be" or "would." These statements are subject to
change based on various important factors (some of which are beyond
the Bank's control). Readers should not place undue reliance on any
forward-looking statements (which reflect management's analysis
only as of the date of which they are given). Sterling Bank
cautions that the foregoing list of important factors is not
exclusive. Sterling Bank, and its directors and executive officers,
may be deemed to be "participants" in Sterling Bank's solicitation
of proxies in connection with the proposed holding company
reorganization and merger. Information regarding the names of
directors and executive officers and their respective interests in
the Bank by security holdings or otherwise is set forth in the
Bank's proxy statement relating to the 2006 annual meeting of
shareholders, which may be obtained free of charge at the Bank' s
website at http://www.sterlingnj.com/ or by calling R. Scott
Horner, Secretary, at 865-273-5900. Sterling Banks, Inc. amended
its Registration Statement on Form S-4, originally filed with the
Securities and Exchange Commission (SEC) on April 28, 2006 (File
No. 333-133649), which now contains the proxy materials of
Farnsworth Bancorp, Inc. and Sterling Bank and certain other
information regarding the Bank. The Bank will also file its proxy
materials with the Federal Reserve Board. These proxy materials
will set forth complete details of the holding company
reorganization and merger. Investors will be able to obtain a copy
of the Bank's proxy materials free of charge at the SEC's Web site
at http://www.sec.gov/. The materials may also be available free of
charge at the Bank's website address listed above or by calling Mr.
Horner at the number listed above. Investors are urged to carefully
read the proxy materials when filed with the SEC because they will
contain important information. Investors should read the proxy
materials before making a decision regarding the merger. The
foregoing communication does not constitute an offer to sell any
securities and is not a solicitation of an offer to buy any
securities. Such an offer will only be made by means of a
prospectus. DATASOURCE: Sterling Bank CONTACT: Robert H. King,
President, +1-856-273-5900, , or R. Scott Horner, Executive Vice
President, +1-856-273-5900, , both of Sterling Bank Web site:
http://www.sterlingnj.com/
Copyright
Sterling Bank (NASDAQ:STNJ)
Historical Stock Chart
From Jun 2024 to Jul 2024
Sterling Bank (NASDAQ:STNJ)
Historical Stock Chart
From Jul 2023 to Jul 2024