Exhibit 99.1
| | |
John Tietjen | | Thomas Walsh |
Chief Financial Officer | | Investor Relations/Media Relations |
Sterling Bancorp | | MWW Group |
john.tietjen@sterlingbancorp.com | | twalsh@mww.com |
212.757.8035 | | 201.964.2464 |
FOR IMMEDIATE RELEASE
Sterling Bancorp Reports Increase of 10.8% in Net Income For First Quarter 2005
Loans and Deposits Substantially Increase
New York, NY, May 4, 2005 – Sterling Bancorp (NYSE: STL), a financial holding company and the parent company of Sterling National Bank, today reported its financial results for the quarter ended March 31, 2005.
First Quarter 2005 Highlights:
| § | Net income increased by 10.8% to $5.8 million |
|
| § | Diluted earnings per share increased to $0.30 from $0.27 in the first quarter 2004 |
|
| § | Period end loans and deposits increased 14.5% and 13.5%, respectively |
|
| § | Interest income rose 11.3% to $26.2 million |
|
| § | Return on average tangible equity increased to 18.51% |
“During the first quarter, we experienced double-digit growth in loans and deposits, demonstrating the strength of Sterling’s balanced business model,” said Louis J. Cappelli, Chairman and Chief Executive Officer. “We continued to show solid organic growth and our current mix of business remained healthy. Sterling also experienced strong revenue growth in its mortgage banking business, which benefited from the Company’s strategy of originating higher margin real estate loans that generate better profits and do not possess additional risks. This strategy offset industry trends and market conditions that produced lower volumes of residential mortgages sold to investors. While we continue to manage the normal costs of doing business effectively, the higher professional fees and greater resources involved in complying with the Sarbanes-Oxley Act, the Banking Secrecy Act and other compliance requirements generated an increase in our noninterest expenses.”
“We continued to make meaningful investments in our franchise during the first quarter,” stated Chairman Cappelli. “This included the successful opening of an office at 42 Broadway that expanded our presence in lower Manhattan, the third largest commercial district in the United States. We remain committed to delivering high tech banking solutions, a broad range of products and personalized customer service, and to putting us in a position to capitalize on future industry consolidation.”
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Chairman Cappelli concluded, “In February of 2005, our Board approved a dividend for the 237th consecutive quarter, or over 59 years, reflecting our longstanding focus on increasing shareholder value.”
First Quarter 2005 Financial Results
Net Income
Net income for the first quarter 2005 was $5.8 million, a 10.8% increase from $5.2 million in the first quarter 2004. Diluted earnings per share grew to $0.30 from $0.27 in the first quarter of last year (adjusted to reflect the six-for-five stock split effected in December 2004).
The year-over-year increase in net income is a result of continued growth in net interest income and a lower provision for income taxes, which more than offset a decrease in noninterest income and increases in noninterest expenses and in the provision for loan losses.
Net Interest Income
In the first quarter 2005, net interest income, on a tax-equivalent basis, increased to $20.7 million from $19.2 million in the first quarter 2004. Net interest income benefited from growth in the average loans outstanding and the higher interest rate environment of 2005, which were partially offset by the impact of purchases of mortgage-backed securities with a shorter average life, the impact of the flattening in the yield curve and growth in interest-bearing deposits. Net interest margin for the first quarter 2005, on a tax- equivalent basis, was 4.91%, compared to 4.90% for the first quarter 2004.
Loans
Average loans held in portfolio for the first quarter 2005 grew 16.6% year-over-year to $955.1 million from $818.8 million in the first quarter 2004 with all significant segments of Sterling’s loan portfolio showing an increase in average outstandings.
Demand Deposits
For the first quarter 2005, average demand deposits increased 8.6% to $436.5 million. As of March 31, 2005, demand deposits were 33.8% of total deposits, continuing Sterling’s tradition of maintaining one of the highest ratios of demand to total deposits in the industry.
Cost of Funds
In the first quarter 2005, the total interest expense was $5.7 million compared to $4.5 million in the first quarter 2004. The increase was driven by higher average interest-bearing deposits that increased to $894.2 million for the first quarter 2005, compared to $793.7 million in the first quarter 2004 along with the higher interest rate environment in 2005.
The average rate paid on interest-bearing funds was 1.95% for the first quarter 2005, compared to 1.67% for the first quarter 2004.
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Noninterest Income and Noninterest Expenses
For the first quarter 2005, noninterest income was $8.0 million compared to $8.2 million for the first quarter 2004. The Company experienced solid revenue growth in mortgage banking and fees collected for deposit services, which were more than offset by decreases in income from sales of available for sale securities and from other service charges and fees.
Noninterest expenses for the quarter ended March 31, 2005 were $17.0 million, compared to $15.9 million in the corresponding period of 2004. The increase was primarily due to higher professional fees related to compliance efforts and investments in the Sterling franchise, including the new branch at 42 Broadway.
Provision for Income Taxes
For the first quarter 2005, the provision for income taxes decreased $0.5 million compared to the same period of 2004. The decrease resulted from a greater portion of employee benefits expense for the first quarter 2005 being deductible for income tax purposes.
Asset Quality
As of March 31, 2005, nonperforming assets were $3.9 million, representing 0.20% of total assets.
The provision for loan losses for the first quarter 2005 increased to $2.6 million from $2.4 million for the first quarter 2004. The allowance for loan losses as a percentage of loans held in portfolio was 1.72% as of March 31, 2005, virtually unchanged from the first quarter 2004.
Dividend
On March 31, 2005, Sterling paid a cash dividend of $0.19 per common share to shareholders of record as of March 15, 2005. The Company has distributed cash dividends for 237 consecutive quarters.
Conference Call
Sterling Bancorp will host a teleconference call for the financial community on Wednesday, May 4, 2005 at 4:45 p.m. Eastern Time to discuss the first quarter 2005 financial results. The public is invited to listen to this conference call by dialing 800-814-8448 at least 10 minutes prior to the call and entering passcode 698917.
A replay of the conference call will be available at 7:45 p.m. Eastern Time on Wednesday, May 4, 2005 until 11:59 p.m. Eastern Time on Wednesday, May 11, 2005. The public is invited to listen to this conference call by dialing 888-266-2081 and entering passcode 698917.
About Sterling Bancorp
Sterling Bancorp (NYSE: STL) is a financial holding company with assets of $1.9 billion, offering a broad array of banking and financial services products. Its principal
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banking subsidiary is Sterling National Bank, founded in 1929. Sterling provides a wide range of products and services, including business and consumer loans, commercial and residential mortgage lending and brokerage, asset-based financing, factoring, trade financing, equipment leasing, corporate and consumer deposit services, trust and estate administration, and investment management services. The Company has operations in New York, Virginia and North Carolina and conducts business throughout the U.S.
This press release may contain statements, including but not limited to, statements concerning future results of operations or financial position, borrowing capacity and future liquidity, future investment results, future credit exposure, future loan losses and plans and objectives for future operations, and other statements regarding matters that are not historical facts, that are “forward-looking statements” defined in the Securities Exchange Act of 1934. These statements are not historical facts but instead are subject to numerous assumptions, risks and uncertainties, and represent only the Company’s belief regarding future events, many of which, by their nature, are inherently uncertain and outside of its control. Any forward-looking statements the Company may make speak only as of the date on which such statements are made. The Company’s actual results and financial position may differ materially from the anticipated results and financial condition indicated in or implied by these forward-looking statements. For a discussion of some of the risks and important factors that could affect the Company’s future results and financial condition, see “Cautionary Statement Regarding Forward-looking Statements” in Part I of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2004.
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STERLING BANCORP
Consolidated Financial Highlights
(Unaudited)
(dollars and shares in thousands, except per share data)
| | | | | | | | |
| | Three Months Ended March 31, | |
| | 2005 | | | 2004 | |
OPERATING HIGHLIGHTS | | | | | | | | |
Interest income | | $ | 26,204 | | | $ | 23,534 | |
Interest expense | | | 5,702 | | | | 4,539 | |
Provision for loan losses | | | 2,648 | | | | 2,426 | |
Noninterest income | | | 7,996 | | | | 8,224 | |
Noninterest expenses | | | 16,976 | | | | 15,949 | |
Net income | | | 5,767 | | | | 5,207 | |
| | | | | | | | |
Earnings per common share: | | | | | | | | |
Basic | | | 0.32 | | | | 0.29 | |
Diluted | | | 0.30 | | | | 0.27 | |
Cash dividends declared | | | 0.19 | | | | 0.16 | |
Common shares outstanding: | | | | | | | | |
Period end | | | 18,292 | | | | 18,473 | |
Average Basic | | | 18,259 | | | | 18,220 | |
Average Diluted | | | 18,927 | | | | 19,211 | |
Return on average assets | | | 1.26 | % | | | 1.22 | % |
Return on average tangible equity (1) | | | 18.51 | % | | | 17.07 | % |
Return on average stated equity (2) | | | 15.85 | % | | | 14.56 | % |
Net interest spread, tax-equivalent basis | | | 4.37 | % | | | 4.42 | % |
Net interest margin, tax-equivalent basis | | | 4.91 | % | | | 4.90 | % |
| | | | | | | | |
ASSET QUALITY HIGHLIGHTS | | | | | | | | |
Period End | | | | | | | | |
Net charge-offs | | $ | 2,195 | | | $ | 2,123 | |
Nonperforming loans | | | 3,357 | | | | 2,741 | |
Other real estate owned | | | 534 | | | | 1,292 | |
Nonperforming assets | | | 3,891 | | | | 4,033 | |
| | | | | | | | |
Nonperforming loans/loans (3) | | | 0.33 | % | | | 0.30 | % |
Nonperforming assets/assets | | | 0.20 | % | | | 0.23 | % |
Allowance for loan losses/loans (4) | | | 1.72 | % | | | 1.73 | % |
Allowance for loan losses/ nonperforming loans | | | 499.91 | % | | | 538.60 | % |
(1) | | Average tangible equity represents average shareholders’ equity less average goodwill. |
|
(2) | | Average stated equity is equal to average shareholders’ equity. |
|
(3) | | The term “loans” includes loans held for sale and loans held in portfolio. |
|
(4) | | The term “loans” includes loans held in portfolio only. |
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STERLING BANCORP
Consolidated Financial Highlights
(Unaudited)
(dollars in thousands, except per share data)
| | | | | | | | |
| | Three Months Ended March 31, | |
| | 2005 | | | 2004 | |
BALANCE SHEET HIGHLIGHTS | | | | | | | | |
Period End Balances | | | | | | | | |
Security investments | | $ | 706,556 | | | $ | 712,844 | |
Loans held for sale | | | 26,615 | | | | 48,427 | |
Loans held in portfolio, net of unearned discount | | | 976,608 | | | | 853,008 | |
Total earning assets | | | 1,748,868 | | | | 1,616,755 | |
Allowance for loan losses | | | 16,782 | | | | 14,763 | |
Total assets | | | 1,901,252 | | | | 1,736,405 | |
| | | | | | | | |
Noninterest-bearing deposits | | | 468,714 | | | | 429,297 | |
Interest-bearing deposits | | | 919,869 | | | | 794,001 | |
Customer repurchase agreements | | | 82,981 | | | | 77,795 | |
Shareholders’ equity | | | 149,508 | | | | 148,267 | |
| | | | | | | | |
Average Balances | | | | | | | | |
Security investments | | $ | 692,634 | | | $ | 695,141 | |
Loans held for sale | | | 37,990 | | | | 43,815 | |
Loans held in portfolio, net of unearned discount | | | 955,056 | | | | 818,784 | |
Total earning assets | | | 1,706,616 | | | | 1,582,158 | |
Allowance for loan losses | | | 17,246 | | | | 15,322 | |
Total assets | | | 1,854,681 | | | | 1,722,510 | |
| | | | | | | | |
Noninterest-bearing deposits | | | 436,509 | | | | 402,110 | |
Interest-bearing deposits | | | 894,228 | | | | 793,672 | |
Customer repurchase agreements | | | 85,763 | | | | 75,369 | |
Shareholders’ equity | | | 147,545 | | | | 143,827 | |
| | | | | | | | |
Capital Ratios | | | | | | | | |
Tier 1 risk based | | | 13.56 | % | | | 14.47 | % |
Total risk based | | | 14.81 | % | | | 15.72 | % |
Leverage | | | 8.60 | % | | | 8.92 | % |
| | | | | | | | |
Book value per common share | | $ | 8.17 | | | $ | 8.03 | |
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STERLING BANCORP
Consolidated Balance Sheets
(Unaudited)
(in thousands, except number of shares)
| | | | | | | | |
| | March 31, | |
| | 2005 | | | 2004 | |
ASSETS | | | | | | | | |
Cash and due from banks | | $ | 66,569 | | | $ | 45,757 | |
Interest-bearing deposits with other banks | | | 4,089 | | | | 2,476 | |
Federal Funds Sold | | | 35,000 | | | | 0 | |
Investment securities | | | | | | | | |
Available for sale (at estimated market value) | | | 219,105 | | | | 328,848 | |
Held to maturity (at cost) | | | 487,451 | | | | 383,996 | |
| | | | | | |
Total investment securities | | | 706,556 | | | | 712,844 | |
| | | | | | |
| | | | | | | | |
Loans held for sale | | | 26,615 | | | | 48,427 | |
| | | | | | |
Loans held in portfolio, net of unearned discounts | | | 976,608 | | | | 853,008 | |
Less allowance for loan losses | | | 16,782 | | | | 14,763 | |
| | | | | | |
Loans, net | | | 959,826 | | | | 838,245 | |
| | | | | | |
| | | | | | | | |
Customers’ liability under acceptances | | | 807 | | | | 1,414 | |
Goodwill | | | 21,158 | | | | 21,158 | |
Premises and equipment, net | | | 10,727 | | | | 9,705 | |
Other real estate | | | 534 | | | | 1,292 | |
Accrued interest receivable | | | 5,987 | | | | 5,419 | |
Bank owned life insurance | | | 26,803 | | | | 22,106 | |
Other assets | | | 36,581 | | | | 27,562 | |
| | | | | | |
| | $ | 1,901,252 | | | $ | 1,736,405 | |
| | | | | | |
| | | | | | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | |
Deposits | | | | | | | | |
Noninterest-bearing | | $ | 468,714 | | | $ | 429,297 | |
Interest-bearing | | | 919,869 | | | | 794,001 | |
| | | | | | |
Total deposits | | | 1,388,583 | | | | 1,223,298 | |
| | | | | | | | |
Securities sold under agreements to repurchase - customers | | | 82,981 | | | | 77,795 | |
Securities sold under agreements to repurchase - dealers | | | 43,697 | | | | 35,392 | |
Commercial paper | | | 38,810 | | | | 24,402 | |
Other short-term borrowings | | | 387 | | | | 15,416 | |
Acceptances outstanding | | | 807 | | | | 1,414 | |
Accrued expenses and other liabilities | | | 80,705 | | | | 74,647 | |
Long-term debt | | | 115,774 | | | | 135,774 | |
| | | | | | |
Total liabilities | | | 1,751,744 | | | | 1,588,138 | |
| | | | | | |
Shareholders’ equity | | | 149,508 | | | | 148,267 | |
| | | | | | | | |
| | | | | | |
| | $ | 1,901,252 | | | $ | 1,736,405 | |
| | | | | | |
| | | | | | | | |
MEMORANDA | | | | | | | | |
Available for sale securities - amortized cost | | $ | 222,495 | | | $ | 322,908 | |
Held to maturity securities - estimated market value | | | 481,616 | | | | 390,404 | |
Shares outstanding | | | | | | | | |
Common issued | | | 19,945,008 | | | | 19,787,969 | |
Common in treasury | | | 1,652,567 | | | | 1,314,895 | |
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STERLING BANCORP
Consolidated Statements of Income
(Unaudited)
(dollars in thousands, except per share data)
| | | | | | | | |
| | Three Months Ended March 31, | |
| | 2005 | | | 2004 | |
INTEREST INCOME | | | | | | | | |
Loans | | $ | 18,376 | | | $ | 15,082 | |
Investment securities - available for sale | | | 2,502 | | | | 3,692 | |
Investment securities - held to maturity | | | 5,210 | | | | 4,706 | |
Federal funds sold | | | 110 | | | | 50 | |
Deposits with other banks | | | 6 | | | | 4 | |
| | | | | | |
Total interest income | | | 26,204 | | | | 23,534 | |
| | | | | | |
INTEREST EXPENSE | | | | | | | | |
Deposits | | | 3,452 | | | | 2,473 | |
Securities sold under agreements to repurchase | | | 586 | | | | 316 | |
Federal funds purchased | | | 21 | | | | 16 | |
Commercial paper | | | 160 | | | | 63 | |
Other short-term borrowings | | | 5 | | | | 112 | |
Long-term debt | | | 1,478 | | | | 1,559 | |
| | | | | | |
Total interest expense | | | 5,702 | | | | 4,539 | |
| | | | | | |
Net interest income | | | 20,502 | | | | 18,995 | |
Provision for loan losses | | | 2,648 | | | | 2,426 | |
| | | | | | |
Net interest income after provision for loan losses | | | 17,854 | | | | 16,569 | |
| | | | | | |
NONINTEREST INCOME | | | | | | | | |
Factoring income | | | 1,417 | | | | 1,427 | |
Mortgage banking income | | | 3,876 | | | | 3,631 | |
Service charges on deposit accounts | | | 1,197 | | | | 1,063 | |
Trade finance income | | | 421 | | | | 493 | |
Trust fees | | | 172 | | | | 182 | |
Other service charges and fees | | | 302 | | | | 475 | |
Bank owned life insurance income | | | 250 | | | | 234 | |
Securities gains | | | 197 | | | | 536 | |
Other income | | | 164 | | | | 183 | |
| | | | | | |
Total noninterest income | | | 7,996 | | | | 8,224 | |
| | | | | | |
NONINTEREST EXPENSES | | | | | | | | |
Salaries | | | 8,157 | | | | 7,677 | |
Employee benefits | | | 1,750 | �� | | | 1,926 | |
| | | | | | |
Total personnel expense | | | 9,907 | | | | 9,603 | |
Occupancy expenses, net | | | 1,315 | | | | 1,230 | |
Equipment expenses | | | 764 | | | | 756 | |
Advertising and marketing | | | 1,116 | | | | 1,093 | |
Professional fees | | | 1,531 | | | | 914 | |
Data processing fees | | | 258 | | | | 287 | |
Stationery and printing | | | 194 | | | | 267 | |
Communications | | | 383 | | | | 407 | |
Other expenses | | | 1,508 | | | | 1,392 | |
| | | | | | |
Total noninterest expenses | | | 16,976 | | | | 15,949 | |
| | | | | | |
Income before income taxes | | | 8,874 | | | | 8,844 | |
Provision for income taxes | | | 3,107 | | | | 3,637 | |
| | | | | | |
Net income | | $ | 5,767 | | | $ | 5,207 | |
| | | | | | |
Average number of common shares outstanding | | | | | | | | |
Basic | | | 18,258,783 | | | | 18,220,065 | |
Diluted | | | 18,926,688 | | | | 19,210,918 | |
Earnings per average common share | | | | | | | | |
Basic | | $ | 0.32 | | | $ | 0.29 | |
Diluted | | | 0.30 | | | | 0.27 | |
Dividends per common share | | | 0.19 | | | | 0.16 | |
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STERLING BANCORP
Consolidated Statements of Comprehensive Income
(Unaudited)
(in thousands)
| | | | | | | | |
| | Three Months Ended March 31, | |
| | 2005 | | | 2004 | |
Net income | | $ | 5,767 | | | $ | 5,207 | |
| | | | | | | | |
Other comprehensive income, net of tax: | | | | | | | | |
Unrealized holding (losses)/gains arising during the period | | | (1,849 | ) | | | 1,428 | |
Less: | | | | | | | | |
Reclassification adjustment for gains included in net income | | | (106 | ) | | | (290 | ) |
Change in unrealized (losses)/gains on supplemental pension | | | (388 | ) | | | 344 | |
| | | | | | |
| | | | | | | | |
Comprehensive income | | $ | 3,424 | | | $ | 6,689 | |
| | | | | | |
STERLING BANCORP
Consolidated Statements of Changes in Shareholders’ Equity
(Unaudited)
(in thousands)
| | | | | | | | |
| | Three Months Ended March 31, | |
| | 2005 | | | 2004 | |
Balance, at beginning of period | | $ | 148,704 | | | $ | 143,262 | |
Net income for period | | | 5,767 | | | | 5,207 | |
Common shares issued under stock incentive plan and related tax benefits | | | 1,017 | | | | 1,301 | |
Cash dividends-Common shares | | | (3,459 | ) | | | (2,919 | ) |
Surrender of shares issued under incentive compensation plan | | | (249 | ) | | | (252 | ) |
Amortization of unearned compensation | | | 71 | | | | 186 | |
Change in net unrealized holding (losses)/gains on available for sale securities | | | (1,849 | ) | | | 1,428 | |
Reclassification adjustment for gains included in net income | | | (106 | ) | | | (290 | ) |
Change in unrealized (losses)/gains on supplemental pension | | | (388 | ) | | | 344 | |
| | | | | | |
| | | | | | | | |
Balance, at end of period | | $ | 149,508 | | | $ | 148,267 | |
| | | | | | |
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STERLING BANCORP
Average Balance Sheets[1]
(Unaudited)
(dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | |
| | March 31, 2005 | | | March 31, 2004 | |
| | AVERAGE | | | | | | | AVERAGE | | | AVERAGE | | | | | | | AVERAGE | |
| | BALANCE | | | INTEREST | | | RATE | | | BALANCE | | | INTEREST | | | RATE | |
| | |
Assets | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits with other banks | | $ | 2,380 | | | $ | 6 | | | | 1.05 | % | | $ | 3,429 | | | $ | 4 | | | | 0.94 | % |
| | | | | | | | | | | | | | | | | | |
Investment securities - available for sale | | | 204,234 | | | | 2,214 | | | | 4.34 | | | | 290,099 | | | | 3,353 | | | | 4.55 | |
Investment securities - held to maturity | | | 461,968 | | | | 5,210 | | | | 4.51 | | | | 374,141 | | | | 4,706 | | | | 5.09 | |
Investment securities - tax exempt [2] | | | 26,432 | | | | 470 | | | | 7.21 | | | | 30,901 | | | | 575 | | | | 7.48 | |
| | | | | | | | | | | | | | | | | | | | |
Total investment securities | | | 692,634 | | | | 7,894 | | | | 4.56 | | | | 695,141 | | | | 8,634 | | | | 4.97 | |
Federal funds sold | | | 18,556 | | | | 110 | | | | 2.37 | | | | 20,989 | | | | 50 | | | | 0.95 | |
Loans, net of unearned discount [3] | | | 993,046 | | | | 18,376 | | | | 7.72 | | | | 862,599 | | | | 15,082 | | | | 7.22 | |
| | | | | | | | | | | | | | | | | | | | |
Total Interest-Earning Assets [2] | | | 1,706,616 | | | | 26,386 | | | | 6.32 | % | | | 1,582,158 | | | | 23,770 | | | | 6.09 | % |
| | | | | | | | | | | | | | | | | | | | |
Cash and due from banks | | | 64,038 | | | | | | | | | | | | 66,657 | | | | | | | | | |
Allowance for loan losses | | | (17,246 | ) | | | | | | | | | | | (15,322 | ) | | | | | | | | |
Goodwill | | | 21,158 | | | | | | | | | | | | 21,158 | | | | | | | | | |
Other | | | 80,115 | | | | | | | | | | | | 67,859 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Total Assets | | $ | 1,854,681 | | | | | | | | | | | $ | 1,722,510 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | | | | | | | | | | | | | | | | | | | | | | | |
Domestic | | | | | | | | | | | | | | | | | | | | | | | | |
Savings | | $ | 29,034 | | | | 25 | | | | 0.35 | % | | $ | 32,947 | | | | 32 | | | | 0.39 | % |
NOW | | | 142,205 | | | | 194 | | | | 0.55 | | | | 134,021 | | | | 154 | | | | 0.46 | |
Money market | | | 226,516 | | | | 410 | | | | 0.73 | | | | 209,946 | | | | 370 | | | | 0.71 | |
Time | | | 493,471 | | | | 2,814 | | | | 2.31 | | | | 413,758 | | | | 1,909 | | | | 1.86 | |
Foreign | | | | | | | | | | | | | | | | | | | | | | | | |
Time | | | 3,002 | | | | 8 | | | | 1.09 | | | | 3,000 | | | | 8 | | | | 1.07 | |
| | | | | | | | | | | | | | | | | | |
Total Deposits | | | 894,228 | | | | 3,451 | | | | 1.57 | | | | 793,672 | | | | 2,473 | | | | 1.25 | |
| | | | | | | | | | | | | | | | | | | | |
Borrowings | | | | | | | | | | | | | | | | | | | | | | | | |
Securities sold under agreements to repurchase - customers | | | 85,763 | | | | 337 | | | | 1.59 | | | | 75,369 | | | | 211 | | | | 1.13 | |
Securities sold under agreements to repurchase - dealers | | | 38,461 | | | | 249 | | | | 2.62 | | | | 36,550 | | | | 105 | | | | 1.15 | |
Federal funds purchased | | | 3,336 | | | | 21 | | | | 2.53 | | | | 5,906 | | | | 16 | | | | 1.08 | |
Commercial paper | | | 35,603 | | | | 160 | | | | 1.82 | | | | 23,419 | | | | 63 | | | | 1.08 | |
Other short-term debt | | | 775 | | | | 5 | | | | 2.62 | | | | 24,746 | | | | 112 | | | | 1.82 | |
Long-term debt | | | 122,552 | | | | 1,479 | | | | 4.83 | | | | 135,774 | | | | 1,559 | | | | 4.59 | |
| | | | | | | | | | | | | | | | | | |
Total Borrowings | | | 286,490 | | | | 2,251 | | | | 3.16 | | | | 301,764 | | | | 2,066 | | | | 2.74 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Interest-Bearing Liabilities | | | 1,180,718 | | | | 5,702 | | | | 1.95 | % | | | 1,095,436 | | | | 4,539 | | | | 1.67 | % |
| | | | | | | | | | | | | | | | | | |
Noninterest-bearing demand deposits | | | 436,509 | | �� | | | | | | | | | | 402,110 | | | | | | | | | |
Other liabilities | | | 89,909 | | | | | | | | | | | | 81,137 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Total Liabilities | | | 1,707,136 | | | | | | | | | | | | 1,578,683 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Shareholders’ equity | | | 147,545 | | | | | | | | | | | | 143,827 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Total Liabilities and Shareholders’ Equity | | $ | 1,854,681 | | | | | | | | | | | $ | 1,722,510 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Net interest income/spread [2] | | | | | | | 20,684 | | | | 4.37 | % | | | | | | | 19,231 | | | | 4.42 | % |
| | | | | | | | | | | | | | | | | | | | | | |
Net yield on interest-earning assets | | | | | | | | | | | 4.91 | % | | | | | | | | | | | 4.90 | % |
| | | | | | | | | | | | | | | | | | | | | | |
Less: Tax-equivalent adjustment | | | | | | | 182 | | | | | | | | | | | | 236 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Net interest income | | | | | | $ | 20,502 | | | | | | | | | | | $ | 18,995 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
[1] | The average balances of assets, liabilities and shareholders’ equity are computed on the basis of daily averages. Average rates are presented on a tax-equivalent basis. Certain reclassifications have been made to prior period amounts to conform to current presentation. |
|
[2] | Interest and/or average rates are presented on a tax-equivalent basis. |
|
[3] | Includes loans held for sale and loans held in portfolio; all loans are domestic. Nonaccrual loans are included in amounts outstanding and income has been included to the extent earned. |
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STERLING BANCORP AND SUBSIDIARIES
Rate/Volume Analysis [1]
(Unaudited)
(in thousands)
| | | | | | | | | | | | |
| | Increase/(Decrease) | |
| | Three Months Ended | |
| | March 31, 2005 to March 31, 2004 | |
| | Volume | | | Rate | | | Net [2] | |
INTEREST INCOME | | | | | | | | | | | | |
Interest-bearing deposits with other banks | | $ | 0 | | | $ | 2 | | | $ | 2 | |
| | | | | | | | | |
| | | | | | | | | | | | |
Investment securities - available for sale | | | (990 | ) | | | (149 | ) | | | (1,139 | ) |
Investment securities - held to maturity | | | 1,042 | | | | (538 | ) | | | 504 | |
Investment securities - tax exempt | | | (85 | ) | | | (20 | ) | | | (105 | ) |
| | | | | | | | | |
Total investment securities | | | (33 | ) | | | (707 | ) | | | (740 | ) |
| | | | | | | | | |
| | | | | | | | | | | | |
Federal funds sold | | | (8 | ) | | | 68 | | | | 60 | |
Loans, net of unearned discounts [3] | | | 2,209 | | | | 1,085 | | | | 3,294 | |
|
| | | | | | | | | |
TOTAL INTEREST INCOME | | $ | 2,168 | | | $ | 448 | | | $ | 2,616 | |
| | | | | | | | | |
| | | | | | | | | | | | |
INTEREST EXPENSE | | | | | | | | | | | | |
Interest-bearing deposits | | | | | | | | | | | | |
Domestic | | | | | | | | | | | | |
Savings | | $ | (4 | ) | | $ | (3 | ) | | $ | (7 | ) |
NOW | | | 8 | | | | 32 | | | | 40 | |
Money market | | | 29 | | | | 11 | | | | 40 | |
Time | | | 391 | | | | 514 | | | | 905 | |
Foreign | | | | | | | | | | | | |
Time | | | 0 | | | | 0 | | | | 0 | |
| | | | | | | | | |
Total interest-bearing deposits | | | 424 | | | | 554 | | | | 978 | |
| | | | | | | | | |
| | | | | | | | | | | | |
Borrowings | | | | | | | | | | | | |
Securities sold under agreements to repurchase - customers | | | 31 | | | | 95 | | | | 126 | |
Securities sold under agreements to repurchase - dealers | | | 4 | | | | 140 | | | | 144 | |
Federal funds purchased | | | (9 | ) | | | 14 | | | | 5 | |
Commercial paper | | | 41 | | | | 56 | | | | 97 | |
Other short-term debt | | | (141 | ) | | | 34 | | | | (107 | ) |
Long-term debt | | | (162 | ) | | | 82 | | | | (80 | ) |
| | | | | | | | | |
Total borrowings | | | (236 | ) | | | 421 | | | | 185 | |
| | | | | | | | | |
| | | | | | | | | | | | |
TOTAL INTEREST EXPENSE | | $ | 188 | | | $ | 975 | | | $ | 1,163 | |
| | | | | | | | | |
| | | | | | | | | | | | |
NET INTEREST INCOME | | $ | 1,980 | | | $ | (527 | ) | | $ | 1,453 | |
| | | | | | | | | |
[1] | This table is presented on a tax-equivalent basis. |
|
[2] | Changes in interest income and interest expense due to a combination of both volume and rate have been allocated to the change due to volume and the change due to rate in proportion to the relationship of change due solely to each. |
|
[3] | Includes loans held for sale and loans held in portfolio; all loans are domestic. Nonaccrual loans are included in amounts outstanding, and income has been included to the extent earned. |
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