Sterling Bank (NASDAQ:STNJ)
Historical Stock Chart
From Jul 2019 to Jul 2024
![Click Here for more Sterling Bank Charts. Click Here for more Sterling Bank Charts.](/p.php?pid=staticchart&s=N%5ESTNJ&p=8&t=15)
MOUNT LAUREL, N.J., July 28 /PRNewswire-FirstCall/ -- Sterling Bank (NASDAQ:STNJ) today reported income before taxes of $1,090,000 for the six- month period ended June 30, 2006. This represents a 7% decrease compared to the six-month period ended June 30, 2005, which totaled $1,178,000, and reflects the effects of absorption of the added operating expenses associated with the expansion of the Bank's branch network into Voorhees Township, NJ, in November 2005. Net income for the six-month period totaled $676,000, a decrease of 10% over net income for the same period of 2005, which totaled $754,000. On a basic and diluted per share basis, the net income for the six- month period was $0.14 per share, compared to net income of $0.21 per share (adjusted for stock dividends) for the period ending June 30, 2005, a decrease of 33%. Additionally, of this decrease in per share earnings, approximately $0.04 per share is attributable to dilution from the increase in weighted average shares outstanding as a result of Sterling Bank's public offering of Common Stock in May 2005.
For the quarter ended June 30, 2006, income before taxes totaled $474,000, decreasing 27% from $650,000 for the second quarter of 2005. Net income amounted to $294,000 for the second quarter of 2006, compared to net income of $416,000 for the second quarter of 2005, a decrease of 29%. On a basic and diluted per share basis, net income for the second quarter of 2006 amounted to $0.06 per share, compared to net income of $0.10 per share (adjusted for stock dividends) for the second quarter of 2005, a decrease of 40%. Of this decrease in per share earnings, approximately $0.01 per share is attributable to dilution from the increase in weighted average shares outstanding as a result of our public offering of Common Stock in May 2005.
Sterling Bank's decline in earnings is attributable primarily to an increase of $745,000, or 16%, in non interest expenses, from $4.7 million during the first six months of 2005, to $5.5 million during the first six months of 2006. An increase in compensation expense of $406,000, 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 expenses increased $224,000, or 19%, primarily as a result of the opening of our new Voorhees branch in November 2005. Professional services and other operating expenses increased $125,000, or 21%, primarily as a result of expenses relating to our previously announced pending formation of Sterling Banks, Inc., a bank holding company, and our pending acquisition of Farnsworth Bancorp, Inc.
As of June 30, 2006, Sterling Bank's assets totaled $342 million, compared to assets of $336 million on June 30, 2005, representing a 2% increase. Total loans amounted to $246 million on June 30, 2006, reflecting an increase of 1% over total loans as of June 30, 2005 of $243 million. Total deposits expanded to $296 million on June 30, 2006, an increase of 5% from $283 million on June 30, 2005.
Growth in total loans has been adversely impacted by a decrease in student loans outstanding, which are classified as loans held for sale, from $40.7 million as of December 31, 2005, to $10.1 million as of June 30, 2006, a decrease of $30.6 million. Sterling Bank funds these student loans, and Student Loan Marketing, Inc. ("SLM, Inc.") purchases them from Sterling Bank within 30 to 45 days. SLM, Inc. has begun to self-fund these student loans, and Sterling Bank expects that the remaining balance of these loans will continue to trend downward, although the timing is uncertain. Loans, other than those held for sale (SLM advances), expanded to $235.6 million on June 30, 2006, from $225.3 million on December 31, 2005, an annualized growth rate of 9% for the period. As a result, deposit totals were affected by management's efforts to balance the expansion of deposit balances with the roll-off of student loan advances.
Robert H. King, President and Chief Executive Officer commented, "From a backdrop of significant industry challenges, including a persistently inverted to flat yield curve, and intense deposit and loan pricing competition, Sterling Bank continued to focus on strategic growth initiatives. Most important of these are branch expansion, plans to convert to a bank holding company through the formation of Sterling Banks, Inc., and the positioning of both the balance sheet and the organization overall, in preparation for the combination with Farnsworth Bancorp, Inc., progressing toward a 4th quarter closing. We are excited about the ongoing progress of Sterling Bank."
Sterling Bank
Financial Highlights (unaudited)
As of, and for the six months ended, June 30, 2006 and June 30, 2005
Three Months Ended Six Months Ended
06/30/2006 06/30/2005 06/30/2006 06/30/2005
INCOME STATEMENT
Interest income $5,667,000 $4,634,000 $11,299,000 $8,806,000
Interest expense 2,541,000 1,660,000 4,982,000 3,080,000
Net interest income 3,126,000 2,974,000 6,317,000 5,726,000
Provision for
loan losses 45,000 87,000 90,000 150,000
Net interest income
after provision for
loan losses 3,081,000 2,887,000 6,227,000 5,576,000
Noninterest income 188,000 168,000 343,000 337,000
Noninterest expenses 2,795,000 2,405,000 5,480,000 4,735,000
Income before taxes 474,000 650,000 1,090,000 1,178,000
Income tax expense 180,000 234,000 414,000 424,000
Net income $294,000 $416,000 $676,000 $754,000
PER SHARE DATA
Basic earnings per share $0.06 $0.10 $0.14 $0.21
Diluted earnings
per share $0.06 $0.10 $0.14 $0.21
Dividends paid on
common shares $0.03 $0.03 $0.06 $0.06
Average shares
outstanding - Basic 4,770,817 4,050,732 4,768,394 3,614,147
Average shares
outstanding - Diluted 4,867,148 4,102,768 4,867,587 3,665,881
BALANCE SHEET
Assets
Cash & due from banks $18,176,000 $16,384,000
Federal funds sold 7,037,000 6,508,000
Total investment securities 58,545,000 60,367,000
Restricted stock 1,654,000 1,513,000
Total loans 245,762,000 242,938,000
Allowance for loan losses (1,244,000) (1,023,000)
Other assets 12,128,000 9,047,000
Total assets $342,058,000 $335,734,000
Liabilities
Total deposits $296,021,000 $282,552,000
Total borrowings 10,735,000 18,376,000
Other liabilities 946,000 695,000
Total liabilities 307,702,000 301,623,000
Shareholders' equity
Common stock 9,552,000 9,067,000
Additional paid-in capital 22,892,000 23,239,000
Retained earnings 3,149,000 2,141,000
Accumulated other
comprehensive losses (1,237,000) (336,000)
Total shareholders' equity 34,356,000 34,111,000
Total liabilities and
shareholders' equity $342,058,000 $335,734,000
PERFORMANCE RATIOS
Book value per share $7.19 $7.17
Return on average assets 0.34% 0.51% 0.38% 0.46%
Return on average equity 3.44% 5.96% 3.99% 5.20%
Net interest margin 3.76% 3.88% 3.79% 3.87%
Sterling Bank is a community bank headquartered in Burlington County, New Jersey, with assets of $342 million as of June 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. will amend 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 will contain 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/