Sterling Bank (NASDAQ:STNJ)
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MOUNT LAUREL, N.J., April 27 /PRNewswire-FirstCall/ -- Sterling Bank (NASDAQ:STNJ) today reported income before taxes of $616,000 for the quarter ended March 31, 2006. This reflects a 16% increase compared to income before taxes of $529,000 for the quarter ended March 31, 2005. Net income for the first quarter of 2006 totaled $382,000, an increase of 13% over net income for the first quarter of 2005, which totaled $339,000. On a basic and diluted per share basis, net income for the first quarter of 2006 was $0.08 per share, compared to net income of $0.11 per share (on both a basic and diluted basis and adjusted for stock dividends), for the first quarter of 2005, a decrease of 27%. This per share decrease in earnings is primarily the result of dilution from the increase in outstanding shares as a result of our public offering of Common Stock in May 2005.
As of March 31, 2006, Sterling Bank's assets totaled $354 million, compared to assets of $310 million on March 31, 2005, representing a 14% increase. Total loans amounted to $268 million on March 31, 2006, reflecting an increase of 20% over total loans as of March 31, 2005 of $224 million. Total deposits were $298 million on March 31, 2006, an increase of 12% from $265 million on March 31, 2005.
Sterling Bank's improved earnings are attributable primarily to growth in net interest income during the first quarter of 2006 to $3.2 million, or 14%, from $2.8 million during the first quarter of 2005. The improvement was primarily the result of higher volume in interest earning assets, partially offset by a slight decline in the net interest margin to 3.82% during the first quarter of 2006, from 3.86% during the first quarter of 2005. Sterling Bank, during this period, realized enhanced loan volume related to its focus on the primary service area of the Bank with both the commercial and consumer loan outstanding levels growing at a very positive pace.
Robert H. King, President and Chief Executive Officer commented, "First Quarter 2006 results are very encouraging. Sterling Bank is well on the way to overcoming the effects of the added operating expenses related to the retail system expansion into Voorhees Township last fall. New account activity has exceeded both expectations and past experiences for a new facility."
Sterling Bank
Financial Highlights (unaudited)
As of, and for the three months ended, March 31, 2006 and March 31, 2005
Three Months Ended
3/31/2006 3/31/2005
INCOME STATEMENT
Interest income $5,633,000 $4,172,000
Interest expense 2,441,000 1,420,000
Net interest income 3,192,000 2,752,000
Provision for loan losses 45,000 63,000
Net interest income after
provision for loan losses 3,147,000 2,689,000
Noninterest income 154,000 169,000
Noninterest expenses 2,685,000 2,329,000
Income before taxes 616,000 529,000
Income tax expense 234,000 190,000
Net income $382,000 $339,000
PER SHARE DATA
Basic earnings per share $0.08 $0.11
Diluted earnings per share $0.08 $0.11
Dividends paid on common shares $0.03 $0.03
Average shares outstanding - Basic 4,539,000 2,972,000
Average shares outstanding - Diluted 4,639,000 3,023,000
BALANCE SHEET
Assets
Cash & due from banks $ 13,876,000 $ 10,336,000
Federal funds sold 4,999,000 -
Total investment securities 54,503,000 65,440,000
Restricted stock 1,835,000 1,743,000
Total loans 267,954,000 224,357,000
Allowance for loan losses (1,198,000) (972,000)
Other assets 11,538,000 9,044,000
Total assets $353,507,000 $309,948,000
Liabilities
Total deposits $298,338,000 $265,151,000
Total borrowings 19,735,000 23,225,000
Other liabilities 1,125,000 1,000,000
Total liabilities 319,198,000 289,376,000
Shareholders' equity
Common stock 9,078,000 5,755,000
Additional paid-in capital 23,281,000 13,732,000
Retained earnings 2,992,000 1,850,000
Accumulated other
comprehensive losses (1,042,000) (765,000)
Total shareholders' equity 34,309,000 20,572,000
Total liabilities and
shareholders' equity $353,507,000 $309,948,000
PERFORMANCE RATIOS
Book value per share $7.56 $6.81
Return on average assets 0.43% 0.45%
Return on average equity 4.53% 6.65%
Net interest margin 3.82% 3.86%
Sterling Bank is a community bank headquartered in Burlington County, New Jersey, with assets of $354 million as of March 31, 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) and actual results may differ materially. Accordingly, 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 Bank to effectively manage its growth, and results of regulatory examinations, among other factors. Sterling Bank cautions that the foregoing list of important factors is not exclusive. Readers should carefully review the risk factors described in other documents the Bank files from time to time with the Federal Reserve, including the Bank's Annual Report on Form 10-KSB for the year ended December 31, 2005, Quarterly Reports on Form 10-QSB, and Current Reports on Form 8-K.
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/