MOUNT LAUREL, N.J., Aug. 19 /PRNewswire-FirstCall/ -- Sterling
Banks, Inc. (NASDAQ:STBK), the bank holding company of Sterling
Bank, a locally focused, community oriented, full service
commercial bank which operates through ten retail branches that are
located in New Jersey's Burlington and Camden Counties, reported a
second quarter loss before income tax benefit of $1,515,000, and an
after tax loss of $946,000, or $0.16 per share, on a basic and
diluted basis. For the quarter ending June 30, 2009, the Company
reported a net loss of $946,000, compared to a net loss of $400,000
for the second quarter of 2008. On a basic and diluted per share
basis, the net loss for the second quarter of 2009 was $0.16 per
share, and the net loss for the second quarter of 2008 was $0.07
per share. For the six months ended June 30, 2009 and 2008, the net
loss was $1,395,000 and $484,000, respectively. On a basic and
diluted per share basis, the net loss for the six months ended June
30, 2009 and 2008 was $0.24 and $0.08 per share, respectively.
Total assets of the Company were $393 million as of June 30, 2009,
compared to $383 million as of June 30, 2008, an increase of $10
million or 3%. Loans outstanding totaled $301 million as of June
30, 2009, a decrease of $8 million, or 3%%, from total loans of
$309 million as of June 30, 2008. Deposits totaled $343 million as
of June 30, 2009, an increase of $11 million, or 3%, from total
deposits of $332 million as of June 30, 2008. These results reflect
the continued efforts by management to reduce the general level of
risk on the balance sheet. For the quarter ended June 30, 2009, the
Company's net interest income after the provision for loan losses
decreased by $536,000, or 19%, compared to the same period in 2008,
primarily as a result of lost interest income on nonaccrual loans
of approximately $328,000 and a decline of $307,000, or 74 basis
points, in the net interest margin in 2009. Noninterest income for
the quarter ended June 30, 2009 amounted to $174,000, a decrease of
$34,000, or 16%, primarily in fee income on mortgage originations
as compared to the same period in 2008. Noninterest expenses
increased $310,000, or 8%, for the three months ended June 30, 2009
as compared to the same period in 2008, primarily from a one time
special assessment for deposit insurance of $183,000 and a partial
write down of $82,000 on the Company's former Gaither Road branch,
and partial write downs and/or net losses on sales of OREO of
$65,000. For the six months ended June 30, 2009, the Company's net
interest income after the provision for loan losses decreased by
$1,161,000, or 20%, compared to the same period in 2008, primarily
as a result of lost interest income on nonaccrual loans of
approximately $886,000 and a decline of $299,000, or 68 basis
points, in the net interest margin in 2009. Noninterest income for
the six months ended June 30, 2009 amounted to $405,000, a decrease
of $107,000, or 21%, compared to the same period in 2008, primarily
as a result of a decrease in net sale gains on available-for-sale
securities of $90,000. Noninterest expenses increased $161,000, or
4%, for the six months ended June 30, 2009 as compared to the same
period in 2008, primarily from a one time special assessment for
deposit insurance of $183,000, a partial write down of $82,000 on
the Company's former Gaither Road branch, and partial write downs
and/or net losses on sales of OREO of $77,000. Robert H. King,
President and CEO of Sterling Banks, Inc., commented concerning the
status and progress of Sterling Bank: "Our objectives have been to
focus on the identification of developing weaknesses among
borrowers and the strengthening of loan loss reserve balances. The
economic downturn has now continued over an extended period of
time, but we sense that negative conditions are moderating. We
welcome a return of a more normalized operating environment and
setting." Sterling Banks, Inc. Consolidated Financial Highlights
(unaudited) As of, and for the six months ended, June 30, 2009 and
2008 Three Months Ended Six Months Ended 06/30/2009 06/30/2008
06/30/2009 06/30/2008 INCOME STATEMENT Interest income $4,791,000
$5,594,000 $9,502,000 $11,629,000 Interest expense 2,124,000
2,381,000 4,340,000 5,296,000 Net interest income 2,667,000
3,213,000 5,162,000 6,333,000 Provision for loan losses 390,000
400,000 390,000 400,000 Net interest income after provision for
loan losses 2,277,000 2,813,000 4,772,000 5,933,000 Noninterest
income 174,000 208,000 405,000 512,000 Noninterest expenses
3,966,000 3,656,000 7,405,000 7,206,000 Income (loss) before taxes
(1,515,000) (635,000) (2,228,000) (761,000) Income tax expense
(benefit) (569,000) (235,000) (833,000) (277,000) Net income (loss)
$(946,000) $(400,000) $(1,395,000) $(484,000) PER SHARE DATA Basic
and Diluted losses per share $(0.16) $(0.07) $(0.24) $(0.08)
Dividends paid on common shares $- $- $- $- Average shares
outstanding - Basic and Diluted 5,843,362 5,843,362 5,843,362
5,843,362 BALANCE SHEET Assets Cash & due from banks $9,372,000
$11,733,000 Federal funds sold 15,629,000 3,916,000 Total
investment securities 48,690,000 28,077,000 Restricted stock
2,087,000 1,774,000 Total loans 301,029,000 309,322,000 Allowance
for loan losses (7,041,000) (2,974,000) Other assets 22,832,000
31,618,000 Total assets $392,598,000 $383,466,000 Liabilities Total
deposits $342,949,000 $331,985,000 Total borrowings 22,186,000
7,186,000 Other liabilities 1,647,000 1,477,000 Total liabilities
366,782,000 340,648,000 Shareholders' equity Common stock
11,687,000 11,687,000 Additional paid-in capital 29,804,000
29,731,000 Retained earnings (Accumulated losses) (15,674,000)
1,465,000 Accumulated other comprehensive losses (1,000) (65,000)
Total shareholders' equity 25,816,000 42,818,000 Total liabilities
and shareholders' equity $392,598,000 $383,466,000 PERFORMANCE
RATIOS Book value per share $4.42 $7.33 Tangible book value per
share $4.05 $4.80 Return on average assets (0.84)% (0.41)% (0.66)%
(0.25)% Return on average equity (12.54)% (3.74)% (9.88)% (2.26)%
Net interest margin 3.01% 3.75% 2.94% 3.62% Sterling Banks, Inc. is
a bank holding company which commenced operations in March 2007,
with assets of $393 million as of June 30, 2009, and is
headquartered in Mount Laurel Township, Burlington County. Sterling
Bank is a community bank which commenced operations in December
1990 with the purpose of serving consumers and small to
medium-sized businesses in its market area. Sterling Bank's main
office is located in Mount Laurel, New Jersey, and its nine other
Community Banking Centers are located in Burlington and Camden
Counties in New Jersey. 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 Banks, Inc. is traded
on the NASDAQ Capital Market under the symbol "STBK". For
additional information about Sterling Bank and Sterling Banks, Inc.
visit our website at http://www.sterlingnj.com/. This news release
may contain certain forward-looking statements, such as statements
of the Company'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 Company'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). These factors include
general economic conditions, trends in interest rates, the ability
of our borrowers to repay their loans, the ability of the Company
to manage the risk in its loan and investment portfolios, the
ability of the Company to reduce noninterest expenses and increase
net interest income, results of possible collateral collections and
subsequent sales, and results of regulatory examinations, among
other factors. Sterling Banks, Inc. cautions that the foregoing
list of important factors is not exclusive. Readers should
carefully review the risk factors described in other documents the
Company files from time to time with the Securities and Exchange
Commission, including the Company's Annual Report on Form 10-K for
the year ended December 31, 2008, Quarterly Reports on Form 10-Q,
and Current Reports on Form 8-K. DATASOURCE: Sterling Banks, Inc.
CONTACT: Robert H. King, President, +1-856-273-5900, , or R. Scott
Horner, Executive Vice President, +1-856-273-5900, , both of
Sterling Banks, Inc. Web Site: http://www.sterlingnj.com/
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