Sterling Banks, Inc. Announces Revised Third Quarter 2009 Results

MOUNT LAUREL, N.J., March 8  /PRNewswire-FirstCall/ -- Sterling Banks, Inc. , the bank holding company of Sterling Bank (the "Company"), revised its previously announced 2009 third quarter results due to an additional $5.0 million provision for loan losses and determined to establish a valuation allowance for deferred tax assets of $5.6 million in the second quarter of 2009, as well as recording a reduction of $1.1 million in provision for loan losses in the third quarter of 2009.
The allowance for loan losses and provision for loan losses were increased from amounts previously reported to reflect changes to the qualitative reserve factors and impairment amounts that the Company's wholly owned subsidiary, Sterling Bank (the "Bank"), utilized in calculating its allowance for loan losses as of June 30, 2009.  The adjustment in the qualitative factors and impaired amounts reflected second quarter adverse trends in delinquent, classified and non-performing loans in the Bank's loan portfolio, which were raised as part of the Bank's regulatory examination by the Federal Reserve Bank of Philadelphia as was concluded by the issuance of a Report of Examination dated November 30, 2009.  As a result, the Company concluded that the allowance for loan losses as of June 30, 2009 should be increased by $5.0 million and determined to establish a valuation allowance for deferred tax assets of $5.6 million.  As a result, the Company reversed $1.1 million in provision for loan losses and decreased income tax expense $2.8 million in the third quarter of 2009 from that previously reported.
The Company revised net loss for the third quarter of 2009 to $0.6 million, or $0.09 per basic and diluted share, compared to net income of $0.1 million, or $0.01 per basic and diluted share, for the third quarter of 2008.  For the nine months ended September 30, 2009, net loss was $10.7 million, or $1.83 per basic and diluted share, compared to $0.4 million, or $0.07 per basic and diluted share, for the comparable 2008 period.  The Company previously announced losses of $4.5 million and $5.9 million for the three and nine months ended September 30, 2009, respectively, or $0.77 and $1.01 per basic and diluted share, respectively.
Robert H. King, President and CEO of Sterling Banks, Inc., noted: "This period of economic downturn, extending over an unusually long period, creates challenges on several fronts, including evaluating for an adequate and appropriate level of loan loss reserves in an uncertain environment.  We believe that we are now in a better position to address these challenges."
Sterling Banks, Inc. is a bank holding company which commenced operations in March 2007, 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, [phone],[e-mail]; R. Scott Horner, Executive Vice President,[phone], [e-mail]
Web Site:  http://www.sterlingnj.com/

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