Exhibit 99.1
| | | |
| John Tietjen | | Edward Nebb/Seth Linden |
| Chief Financial Officer | | Investor Relations/Media Relations |
| Sterling Bancorp | | Dukas Public Relations |
john.tietjen@sterlingbancorp.com | | seth@dukaspr.com |
| 212.757.8035 | | 212.704.7385, Ext. 104 |
Sterling Bancorp Reports Results for Third Quarter 2007
Income from Continuing Operations was $0.21 per Share, Increasing Sequentially
Loans and Deposits Reached Record Levels
Repurchased 214,800 Shares in Third Quarter; 969,356 or Over 5% of Shares
Outstanding in Last 12 Months
New York, NY, November 2, 2007 — Sterling Bancorp (NYSE: STL), a financial holding company and the parent company of Sterling National Bank, today reported its financial results for the quarter and nine months ended September 30, 2007.
Third Quarter 2007 Highlights:
• Net interest income rose 3.3% to $19.1 million in the third quarter of 2007, compared with $18.5 million in the same period of 2006, driven primarily by an increase in interest income due to higher loan balances.
• Net interest margin, on a tax-equivalent basis, rose sequentially to 4.41% in the 2007 third quarter from 4.35% in this year’s second quarter. For the third quarter of 2006, the net interest margin was 4.49%.
• Total deposits set a new record of $1,566.8 million as of September 30, 2007, up 9.2% from a year ago.
• Loans held in portfolio, net of unearned discounts, also reached a record $1,178.2 million as of September 30, 2007, rising 5.0% from a year ago.
• Sterling has repurchased 969,356 common shares since September 30, 2006, representing 5.2% of its total common shares outstanding at that date. Of that total, 214,800 shares were repurchased during the 2007 third quarter at an average cost of $14.46 per share. The Company’s buyback authority also was increased by an additional 800,000 shares during the recent quarter.
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On a sequential basis, comparing the third quarter ended September 30, 2007 to the second quarter ended June 30, 2007, income from continuing operations per diluted share increased to $0.21 from $0.20. Noninterest expenses dropped 4.0% sequentially to $19.4 million. Loans held in portfolio and total deposits were up 5.0% and 2.2%, respectively, from June 30, 2007. Net interest margin on a tax-equivalent basis was 4.41% for the 2007 third quarter, rising sequentially from 4.35% for the 2007 second quarter.
“Sterling has achieved sequential increases in earnings per share from continuing operations over the past three consecutive quarters, and we continued to deliver growth in loans and deposits while maintaining control over expenses. Our performance is particularly noteworthy in light of the significant disruption in the credit markets and the resulting pressure on funding costs in our marketplace. In this period of unprecedented turmoil in the financial markets, it is also worth noting that over 90% of our investment portfolio is comprised of obligations of U.S. government corporations and government sponsored enterprises,” said Louis J. Cappelli, Chairman and Chief Executive Officer.
The conditions prevailing in the U.S. economy during the recent quarter included a lack of liquidity in the mortgage market and unfavorable credit market conditions. A significant percentage of the Company’s mortgage originations consist of conforming products, virtually all of which are sold in the secondary markets.
“We believe the Company is well-positioned to capitalize on the turbulent conditions in the financial markets, while continuing to grow and serve our customers,” Mr. Cappelli added. “The dislocation in the economy has made some financial institutions less receptive to serving our geographic market and customer niche. In contrast, Sterling is ready, willing and able to serve our customers today—as we have for nearly 80 years. Our team has a longstanding commitment to provide highly personalized service to individuals and small- to mid-sized businesses, which is undiminished by the current economic climate.”
Growth in Loans and Deposits
Loans held in portfolio, net of unearned discounts, were a record $1,178.2 million at the end of the 2007 third quarter, an increase of $56.0 million or 5.0% from a year ago. Virtually all areas of the Company’s business contributed to the loan growth.
Total deposits were a record $1,566.8 million at the end of the 2007 third quarter, an increase of 9.2% from a year ago. Demand deposits were $490.2 million, or 31.3% of total deposits, and continued to represent one of the highest ratios of demand to total deposits in the industry.
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Third Quarter 2007 Financial Results from Continuing Operations
Income from continuing operations for the 2007 third quarter was $3.8 million or $0.21 per diluted share, compared to $5.0 million or $0.27 per diluted share for the third quarter of 2006. This decrease primarily reflects higher interest and noninterest expenses, lower noninterest income, and an increase in the provision for loan losses, partially offset by an increase in interest income and a decrease in the provision for income taxes.
Net income for the quarter ended September 30, 2007 was $3.1 million or $0.17 per diluted share, compared with a net loss of $4.4 million or $0.23 per diluted share for the same period of 2006. The year-ago loss reflected the sale in September 2006 of a business unit, which is now reflected as a discontinued operation. In the third quarter of 2007, the Company recorded an after-tax loss from discontinued operations of $0.8 million, primarily related to the final disposition of assets associated with that unit.
Net interest income for the third quarter of 2007, on a tax-equivalent basis, was $19.2 million, up from $18.6 million in the third quarter of 2006. The increase reflected the benefit of higher loan balances and lower levels of borrowed funds, partially offset by lower balances of investment securities, along with higher interest-bearing deposit balances and higher rates paid for those funds.
The net interest margin, on a tax-equivalent basis, was 4.41% for the 2007 third quarter compared with 4.49% for the same period last year. The net interest margin was impacted by the higher interest rate environment in 2007, the higher level of noninterest-bearing demand deposits, and the higher average loans outstanding. More competitive pricing practices in the Company’s markets have caused the costs of deposits and borrowings to increase faster than the yield on earning assets.
Income from ongoing mortgage banking activity increased approximately 10.4%, as a result of an increased emphasis by the Company’s mortgage banking unit on originating FHA-insured loans and other high quality products. This increase was more than offset by adjustments for the carrying value of loans held for sale and for the resolution of potential repurchase obligations as part of our loss mitigation efforts. Including the factors noted above, noninterest income for the third quarter of 2007 was $7.8 million compared with $9.3 million in the same period of 2006.
Noninterest expenses for the third quarter of 2007 were $19.4 million, unchanged from the third quarter of 2006.
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The provision for income taxes at normalized tax rates was $1.9 million for the third quarter of 2007, compared to $2.5 million for the same period of 2006, primarily due to lower pre-tax income for the 2007 period. The normalized provision for the third quarter of 2007 and 2006 excludes $0.3 million and $0.7 million, respectively, for the reversal of reserves for local income taxes in those periods, net of federal and state tax effect, as a result of the closure of certain years for local tax purposes.
First Nine Months 2007 Financial Results from Continuing Operations
Income from continuing operations for the nine months ended September 30, 2007, was $11.2 million or $0.60 per diluted share. Results for the year-ago period benefited from a reversal of reserves for state and local income taxes, totaling $3.7 million or $0.19 per share, net of federal tax effect, which was based on management’s review of required reserves with outside professionals in light of the resolution of certain past tax issues. Including this benefit, income from continuing operations was $16.9 million or $0.88 per diluted share for the nine months ended September 30, 2006.
Net income for the nine months ended September 30, 2007 was $10.4 million or $0.56 per share on a diluted basis, compared with $6.9 million or $0.36 per diluted share for the same period of 2006. The year-ago results reflected a $9.6 million loss, net of tax, on the sale in September 2006 of a business unit, which is now reflected as a discontinued operation. In the first nine months of 2007, the Company recorded a loss from the discontinued operation of $0.8 million, net of tax.
Net interest income for the nine months ended September 30, 2007, on a tax-equivalent basis, was $55.2 million, compared to $56.6 million for the same period of 2006. The benefit of higher loan balances and lower borrowings was more than offset by a reduction in the investment securities portfolio and higher rates on interest-bearing liabilities.
Net interest margin for the nine-month period ended September 30, 2007, on a tax-equivalent basis, was 4.44%, compared to 4.60% for the corresponding period of 2006.
Noninterest income for the nine months ended September 30, 2007, was $26.1 million, compared to $24.0 million for the corresponding period of last year. This increase was mainly due to higher accounts receivable management commissions and other fees.
Noninterest expenses for the nine months ended September 30, 2007, were $59.3 million, compared to $56.8 million for the year-ago period. The increase was primarily due to higher salaries and occupancy costs related to investments in the Sterling franchise, including two new branches and the acquisition of Sterling Resource Funding Corp. These increases were partially offset by expense reductions from the reengineering of the Company’s mortgage banking activities and lower expenses for employee benefits. The 2006 period benefited from a recapture of $1.1 million of previously expensed professional fees.
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The provision for income taxes at normalized tax rates for the first nine months of 2007 was $6.3 million, compared to a provision of $7.6 million for the corresponding period of last year. The normalized provision for the first nine months of 2007 and 2006 excludes $0.3 million and $0.7 million, respectively, for the reversal of reserves for local income taxes, net of federal and state tax effect, as a result of the closure of certain years for local tax purposes. Also excluded from the 2006 period was a $3.7 million reversal of reserves for state and local income taxes, net of federal tax effect, which was based on management’s review of required reserves with outside professionals in light of the resolution of certain past tax issues.
Asset Quality
The provision for loan losses was $2.1 million for the quarter and $4.5 million for the nine months ended September 30, 2007, compared to $1.5 million and $3.3 million, respectively, for the corresponding periods of 2006.
The allowance for loan losses as of September 30, 2007, was $15.0 million, or 1.28% of loans held in portfolio, compared to $16.6 million, or 1.48% of loans held in portfolio, as of September 30, 2006. As of September 30, 2007, nonperforming assets were $8.0 million, representing 0.41% of total assets from continuing operations, compared with $6.6 million or 0.34% of total assets from continuing operations a year ago.
The adequacy of the provision and the resulting allowance for loan losses is determined based on management’s continuing evaluation of the loan portfolio, including an assessment of current and expected future economic conditions, the changing mix of loans in the portfolio, and numerous other factors.
Capital Management and Dividends
As of September 30, 2007, the Company exceeded the requirements for a well-capitalized institution for regulatory purposes. Its Tier 1 risk-weighted capital ratio was 9.66% and its Tier 1 leverage ratio was 7.07% at that date.
During the third quarter, the Board of Directors increased the Company’s repurchase authorization by an additional 800,000 common shares. Sterling repurchased approximately 214,800 shares for $3.1 million, at an average price of $14.46 per share, during the quarter ended September 30, 2007. As of September 30, 2007, there remained approximately 871,000 shares available for repurchase under the Company’s approved share repurchase plan.
Sterling paid a cash dividend of $0.19 per common share on September 30, 2007, to shareholders of record as of September 15, 2007. This extended the Company’s record of dividend payments to 247 consecutive quarters, over 61 years.
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Conference Call
Sterling Bancorp will host a teleconference call for the financial community on Friday, November 2, 2007 at 10:00 a.m. Eastern Time to discuss the third quarter 2007 financial results. The public is invited to listen to this conference call by dialing 800-398-9389 at least 10 minutes prior to the call.
A replay of the conference call will be available at approximately 1:30 p.m. Eastern Time on Friday, November 2, 2007 until 11:59 p.m. Eastern Time on Friday, November 16, 2007. To access the replay by telephone, interested parties may dial 800-475-6701 and enter the access code 892412.
About Sterling Bancorp
Sterling Bancorp (NYSE: STL) is a financial holding company with assets of $2.0 billion, offering a broad array of banking and financial services products. Its principal 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 and accounts receivable management, trade financing, equipment leasing, corporate and consumer deposit services, trust and estate administration, and investment management services. The Company has operations in New York, New Jersey and North Carolina and conducts business throughout the U.S.
Certain statements in this press release, including but not limited to, statements as to future liquidity, future interest rate risk and operating expenses, statements concerning future results of operations or financial position, and plans and objectives for future operations, statements concerning the Company’s belief that it is well-positioned to capitalize on the turbulent conditions in the financial markets while continuing to grow and serve its customers, and other statements regarding matters that are not historical facts, are “forward-looking statements” as 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 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 “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Forward-Looking Statements and Factors that Could Affect Future Results” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2006.
- tables to follow-
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STERLING BANCORP
Consolidated Financial Highlights
(Unaudited)
(dollars and shares in thousands, except per share data)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended September 30, | | | Nine Months Ended September 30, | |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
OPERATING HIGHLIGHTS (1) | | | | | | | | | | | | | | | | |
| Interest income | | $ | 31,243 | | | $ | 29,768 | | | $ | 90,275 | | | $ | 86,337 | |
| Interest expense | | | 12,142 | | | | 11,275 | | | | 35,466 | | | | 30,320 | |
| Provision for loan losses | | | 2,125 | | | | 1,511 | | | | 4,453 | | | | 3,253 | |
| Noninterest income | | | 7,812 | | | | 9,250 | | | | 26,093 | | | | 24,041 | |
| Noninterest expenses | | | 19,422 | | | | 19,455 | | | | 59,334 | | | | 56,783 | |
| Income from continuing operations, before income taxes | | | 5,366 | | | | 6,777 | | | | 17,115 | | | | 20,022 | |
| Provision for income taxes at normal effective rates | | | 1,866 | | | | 2,455 | | | | 6,252 | | | | 7,580 | |
| Income from continuing operations after normalized taxes | | | 3,500 | | | | 4,322 | | | | 10,863 | | | | 12,442 | |
| Reversal of tax reserves | | | 341 | | | | 700 | | | | 341 | | | | 4,447 | |
| Income from continuing operations | | | 3,841 | | | | 5,022 | | | | 11,204 | | | | 16,889 | |
| Loss from discontinued operations, net of income taxes | | | (774 | ) | | | (9,454 | ) | | | (795 | ) | | | (10,015 | ) |
| Net income/(loss) | | | 3,067 | | | | (4,432 | ) | | | 10,409 | | | | 6,874 | |
| | | | | | | | | | | | | | | | | |
| Net income/(loss) per average common share: | | | | | | | | | | | | | | | | |
| Basic | | | 0.17 | | | | (0.23 | ) | | | 0.57 | | | | 0.37 | |
| Diluted | | | 0.17 | | | | (0.23 | )(2) | | | 0.56 | | | | 0.36 | |
| Income from continuing operations, after normalized taxes, per average common share: | | | | | | | | | | | | | | | | |
| Basic | | | 0.20 | | | | 0.23 | | | | 0.59 | | | | 0.66 | |
| Diluted | | | 0.19 | | | | 0.23 | | | | 0.58 | | | | 0.65 | |
| Income from continuing operations per average common share: | | | | | | | | | | | | | | | | |
| Basic | | | 0.21 | | | | 0.27 | | | | 0.61 | | | | 0.90 | |
| Diluted | | | 0.21 | | | | 0.27 | | | | 0.60 | | | | 0.88 | |
| Cash dividends declared | | | 0.19 | | | | 0.19 | | | | 0.57 | | | | 0.57 | |
| | | | | | | | | | | | | | | | | |
| Common shares outstanding: | | | | | | | | | | | | | | | | |
| Period end | | | 17,803 | | | | 18,712 | | | | 17,803 | | | | 18,712 | |
| Average Basic | | | 17,910 | | | | 18,712 | | | | 18,330 | | | | 18,752 | |
| Average Diluted | | | 18,222 | | | | 19,231 | | | | 18,750 | | | | 19,275 | |
| | | | | | | | | | | | | | | | | |
| Return on average assets, after normalized taxes (3) | | | 0.73 | % | | | 0.93 | % | | | 0.78 | % | | | 0.90 | % |
| Return on average assets (4) | | | 0.80 | % | | | 1.08 | % | | | 0.80 | % | | | 1.22 | % |
| Return on average tangible equity, after normalized taxes (5) | | | 14.54 | % | | | 14.02 | % | | | 14.13 | % | | | 13.61 | % |
| Return on average tangible equity (6) | | | 15.95 | % | | | 16.29 | % | | | 14.58 | % | | | 18.48 | % |
| Return on average stated equity, after normalized taxes (7) | | | 11.73 | % | | | 11.80 | % | | | 11.56 | % | | | 11.48 | % |
| Return on average stated equity (8) | | | 12.87 | % | | | 13.72 | % | | | 11.92 | % | | | 15.59 | % |
| Net interest spread, tax-equivalent basis | | | 3.41 | % | | | 3.48 | % | | | 3.41 | % | | | 3.68 | % |
| Net interest margin, tax-equivalent basis | | | 4.41 | % | | | 4.49 | % | | | 4.44 | % | | | 4.60 | % |
| | |
| (1) | | Unless otherwise indicated, all amounts and ratios are presented based on continuing operations. |
| |
| (2) | | Due to a loss for the period, zero incremental shares are included because the effect would be antidilutive. |
| |
| (3) | | Calculated by dividing income from continuing operations, after normalized taxes, by average assets from continuing operations. |
| |
| (4) | | Calculated by dividing income from continuing operations by average assets from continuing operations. |
| |
| (5) | | Average tangible equity represents average shareholders’ equity less average goodwill. Calculated by dividing income from continuing operations, after normalized taxes, by average tangible equity. |
| |
| (6) | | Average tangible equity represents average shareholders’ equity less average goodwill. Calculated by dividing income from continuing operations by average tangible equity. |
| |
| (7) | | Average stated equity is equal to average shareholders’ equity. Calculated by dividing income from continuing operations, after normalized taxes, by average stated equity. |
| |
| (8) | | Average stated equity is equal to average shareholders’ equity. Calculated by dividing income from continuing operations by average stated equity. |
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STERLING BANCORP
Consolidated Financial Highlights
(Unaudited)
(dollars in thousands, except per share data)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended September 30, | | | Nine Months Ended September 30, | |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
BALANCE SHEET HIGHLIGHTS | | | | | | | | | | | | | | | | |
Period End Balances (1) | | | | | | | | | | | | | | | | |
| Investment securities | | $ | 608,928 | | | $ | 606,428 | | | $ | 608,928 | | | $ | 606,428 | |
| Loans held for sale | | | 32,896 | | | | 30,048 | | | | 32,896 | | | | 30,048 | |
| Loans held in portfolio, net of unearned discount | | | 1,178,198 | | | | 1,122,197 | | | | 1,178,198 | | | | 1,122,197 | |
| Total earning assets | | | 1,823,036 | | | | 1,760,021 | | | | 1,823,036 | | | | 1,760,021 | |
| Allowance for loan losses | | | 15,039 | | | | 16,584 | | | | 15,039 | | | | 16,584 | |
| Total assets from continuing operations | | | 1,980,739 | | | | 1,934,199 | | | | 1,980,739 | | | | 1,934,199 | |
| Total assets | | | 1,980,739 | | | | 1,941,215 | | | | 1,980,739 | | | | 1,941,215 | |
| | | | | | | | | | | | | | | | | |
| Demand deposits | | | 490,195 | | | | 507,367 | | | | 490,195 | | | | 507,367 | |
| Savings, NOW and money market deposits | | | 542,466 | | | | 404,954 | | | | 542,466 | | | | 404,954 | |
| Time deposits | | | 534,176 | | | | 523,122 | | | | 534,176 | | | | 523,122 | |
| Customer repurchase agreements | | | 62,564 | | | | 59,092 | | | | 62,564 | | | | 59,092 | |
| Shareholders’ equity (2) | | | 119,935 | | | | 141,014 | | | | 119,935 | | | | 141,014 | |
| | | | | | | | | | | | | | | | | |
Average Balances (1) | | | | | | | | | | | | | | | | |
| Investment securities | | $ | 575,309 | | | $ | 629,303 | | | $ | 569,873 | | | $ | 666,249 | |
| Loans held for sale | | | 51,405 | | | | 34,664 | | | | 47,682 | | | | 41,885 | |
| Loans held in portfolio, net of unearned discount | | | 1,081,629 | | | | 1,016,837 | | | | 1,049,625 | | | | 976,991 | |
| Total earning assets | | | 1,728,057 | | | | 1,684,128 | | | | 1,700,773 | | | | 1,689,969 | |
| Total assets from continuing operations | | | 1,901,361 | | | | 1,839,409 | | | | 1,865,927 | | | | 1,846,965 | |
| Total assets | | | 1,902,564 | | | | 1,948,800 | | | | 1,867,138 | | | | 1,959,486 | |
| | | | | | | | | | | | | | | | | |
| Demand deposits | | | 455,093 | | | | 424,834 | | | | 444,828 | | | | 436,006 | |
| Savings, NOW and money market deposits | | | 542,930 | | | | 434,198 | | | | 493,967 | | | | 429,711 | |
| Time deposits | | | 550,407 | | | | 499,334 | | | | 559,798 | | | | 510,759 | |
| Customer repurchase agreements | | | 68,396 | | | | 89,672 | | | | 79,747 | | | | 83,760 | |
| Shareholders’ equity (2) | | | 118,427 | | | | 145,260 | | | | 125,631 | | | | 144,855 | |
| | | | | | | | | | | | | | | | | |
ASSET QUALITY HIGHLIGHTS (1) | | | | | | | | | | | | | | | | |
Period End | | | | | | | | | | | | | | | | |
| Net charge-offs | | $ | 2,125 | | | $ | 1,769 | | | $ | 4,606 | | | $ | 3,287 | |
| Nonperforming loans | | | 6,216 | | | | 4,539 | | | | 6,216 | | | | 4,539 | |
| Other real estate owned | | | 1,826 | | | | 2,053 | | | | 1,826 | | | | 2,053 | |
| Nonperforming assets | | | 8,042 | | | | 6,592 | | | | 8,042 | | | | 6,592 | |
| | | | | | | | | | | | | | | | | |
| Nonperforming loans/loans (3) | | | 0.51 | % | | | 0.39 | % | | | 0.51 | % | | | 0.39 | % |
| Nonperforming assets/assets | | | 0.41 | % | | | 0.34 | % | | | 0.41 | % | | | 0.34 | % |
| Allowance for loan losses/loans (4) | | | 1.28 | % | | | 1.48 | % | | | 1.28 | % | | | 1.48 | % |
| Allowance for loan losses/nonperforming loans | | | 241.94 | % | | | 365.37 | % | | | 241.94 | % | | | 365.37 | % |
| | | | | | | | | | | | | | | | | |
Capital Ratios (2) | | | | | | | | | | | | | | | | |
| Tier 1 risk based | | | 9.66 | % | | | 11.38 | % | | | 9.66 | % | | | 11.38 | % |
| Total risk based | | | 10.77 | % | | | 12.63 | % | | | 10.77 | % | | | 12.63 | % |
| Leverage | | | 7.07 | % | | | 7.71 | % | | | 7.07 | % | | | 7.71 | % |
| | | | | | | | | | | | | | | | | |
| Book value per common share (2) | | $ | 6.74 | | | $ | 7.54 | | | $ | 6.74 | | | $ | 7.54 | |
| | |
| (1) | | Unless otherwise indicated, all amounts and ratios are presented based on continuing operations. |
| |
| (2) | | Includes the effects of discontinued operations. |
| |
| (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 Balance Sheets
(Unaudited)
(in thousands, except number of shares)
| | | | | | | | | |
| | | September 30, | |
| | | 2007 | | | 2006 | |
ASSETS | | | | | | | | |
| Cash and due from banks | | $ | 49,547 | | | $ | 71,165 | |
| Interest-bearing deposits with other banks | | | 3,014 | | | | 1,348 | |
| Investment securities | | | | | | | | |
| Available for sale (at estimated market value) | | | 215,427 | | | | 155,997 | |
| Held to maturity (at amortized cost) | | | 393,501 | | | | 450,431 | |
| | | | | | | |
| Total investment securities | | | 608,928 | | | | 606,428 | |
| | | | | | | |
| | | | | | | | | |
| Loans held for sale | | | 32,896 | | | | 30,048 | |
| | | | | | | |
| Loans held in portfolio, net of unearned discounts | | | 1,178,198 | | | | 1,122,197 | |
| Less allowance for loan losses | | | 15,039 | | | | 16,584 | |
| | | | | | | |
| Loans, net | | | 1,163,159 | | | | 1,105,613 | |
| | | | | | | |
| | | | | | | | | |
| Customers’ liability under acceptances | | | 129 | | | | 1,725 | |
| Goodwill | | | 22,901 | | | | 22,842 | |
| Premises and equipment, net | | | 11,435 | | | | 10,956 | |
| Other real estate | | | 1,826 | | | | 2,053 | |
| Accrued interest receivable | | | 6,975 | | | | 5,505 | |
| Bank owned life insurance | | | 28,767 | | | | 27,677 | |
| Other assets | | | 51,162 | | | | 48,839 | |
| | | | | | | |
| Total assets from continuing operations | | | 1,980,739 | | | | 1,934,199 | |
| Assets — discontinued operations | | | 0 | | | | 7,016 | |
| | | | | | | |
| | | $ | 1,980,739 | | | $ | 1,941,215 | |
| | | | | | | |
| | | | | | | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | |
| Deposits | | | | | | | | |
| Demand | | $ | 490,195 | | | $ | 507,367 | |
| Savings, NOW and money market | | | 542,466 | | | | 404,954 | |
| Time | | | 534,176 | | | | 523,122 | |
| | | | | | | |
| Total deposits | | | 1,566,837 | | | | 1,435,443 | |
| | | | | | | | | |
| Securities sold under agreements to repurchase — customers | | | 62,564 | | | | 59,092 | |
| Securities sold under agreements to repurchase — dealers | | | 0 | | | | 58,385 | |
| Federal funds purchased | | | 44,200 | | | | 20,000 | |
| Commercial paper | | | 28,571 | | | | 44,366 | |
| Short-term borrowings — FHLB | | | 25,000 | | | | 30,000 | |
| Short-term borrowings — other | | | 303 | | | | 1,110 | |
| Long-term borrowings — FHLB | | | 10,000 | | | | 20,000 | |
| Long-term borrowings — subordinated debentures | | | 25,774 | | | | 25,774 | |
| Acceptances outstanding | | | 129 | | | | 1,725 | |
| Accrued expenses and other liabilities | | | 97,426 | | | | 100,157 | |
| Liabilities — discontinued operations | | | 0 | | | | 4,149 | |
| | | | | | | |
| Total liabilities | | | 1,860,804 | | | | 1,800,201 | |
| Shareholders’ equity | | | 119,935 | | | | 141,014 | |
| | | | | | | |
| | | $ | 1,980,739 | | | $ | 1,941,215 | |
| | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| MEMORANDA | | | | | | | | |
| Available for sale securities — amortized cost | | $ | 218,733 | | | $ | 159,972 | |
| Held to maturity securities — estimated market value | | | 386,893 | | | | 439,928 | |
| Shares outstanding | | | | | | | | |
| Common issued | | | 21,262,170 | | | | 21,177,084 | |
| Common in treasury | | | 3,459,302 | | | | 2,465,012 | |
Page 9 of 16
STERLING BANCORP
Consolidated Statements of Operations
(Unaudited)
(dollars in thousands, except per share data)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended September 30, | | | Nine Months Ended September 30, | |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
INTEREST INCOME | | | | | | | | | | | | | | | | |
| Loans | | $ | 24,148 | | | $ | 22,600 | | | $ | 68,996 | | | $ | 63,569 | |
| Investment securities — available for sale | | | 2,113 | | | | 1,901 | | | | 5,659 | | | | 6,081 | |
| Investment securities — held to maturity | | | 4,731 | | | | 5,231 | | | | 14,299 | | | | 16,526 | |
| Federal funds sold | | | 227 | | | | 13 | | | | 1,230 | | | | 88 | |
| Deposits with other banks | | | 24 | | | | 23 | | | | 91 | | | | 73 | |
| | | | | | | | | | | | | |
| Total interest income | | | 31,243 | | | | 29,768 | | | | 90,275 | | | | 86,337 | |
| | | | | | | | | | | | | |
INTEREST EXPENSE | | | | | | | | | | | | | | | | |
| Savings, NOW and money market deposits | | | 3,829 | | | | 2,407 | | | | 9,968 | | | | 5,862 | |
| Time deposits | | | 6,458 | | | | 5,170 | | | | 19,587 | | | | 14,346 | |
| Securities sold u/a/r — customers | | | 701 | | | | 974 | | | | 2,581 | | | | 2,436 | |
| Securities sold u/a/r — dealers | | | 0 | | | | 1,114 | | | | 0 | | | | 3,442 | |
| Federal funds purchased | | | 71 | | | | 305 | | | | 107 | | | | 691 | |
| Commercial paper | | | 368 | | | | 610 | | | | 1,073 | | | | 1,553 | |
| Short-term borrowings — FHLB | | | 53 | | | | 726 | | | | 53 | | | | 1,561 | |
| Short-term borrowings — other | | | 21 | | | | 5 | | | | 48 | | | | 23 | |
| Long-term borrowings — FHLB | | | 118 | | | | 297 | | | | 479 | | | | 1,344 | |
| Long-term subordinated debentures | | | 523 | | | | 523 | | | | 1,570 | | | | 1,570 | |
| | | | | | | | | | | | | |
| Total interest expense | | | 12,142 | | | | 12,131 | | | | 35,466 | | | | 32,828 | |
| Interest expense allocated to discontinued operations | | | 0 | | | | (856 | ) | | | 0 | | | | (2,508 | ) |
| | | | | | | | | | | | | |
| Total interest expense-continuing operations | | | 12,142 | | | | 11,275 | | | | 35,466 | | | | 30,320 | |
| | | | | | | | | | | | | |
| Net interest income | | | 19,101 | | | | 18,493 | | | | 54,809 | | | | 56,017 | |
| Provision for loan losses | | | 2,125 | | | | 1,511 | | | | 4,453 | | | | 3,253 | |
| | | | | | | | | | | | | |
| Net interest income after provision for loan losses | | | 16,976 | | | | 16,982 | | | | 50,356 | | | | 52,764 | |
| | | | | | | | | | | | | |
NONINTEREST INCOME | | | | | | | | | | | | | | | | |
| Accounts receivable management/factoring commissions and other fees | | | 4,048 | | | | 3,998 | | | | 11,537 | | | | 9,223 | |
| Service charges on deposit accounts | | | 1,408 | | | | 1,351 | | | | 4,314 | | | | 4,037 | |
| Other customer related service charges and fees | | | 831 | | | | 991 | | | | 2,264 | | | | 2,612 | |
| Mortgage banking income | | | 887 | | | | 2,331 | | | | 6,263 | | | | 7,115 | |
| Trust fees | | | 132 | | | | 147 | | | | 398 | | | | 437 | |
| Bank owned life insurance income | | | 279 | | | | 225 | | | | 818 | | | | 713 | |
| Securities (losses)/gains | | | (1 | ) | | | 0 | | | | (3 | ) | | | (445 | ) |
| Other income | | | 228 | | | | 207 | | | | 502 | | | | 349 | |
| | | | | | | | | | | | | |
| Total noninterest income | | | 7,812 | | | | 9,250 | | | | 26,093 | | | | 24,041 | |
| | | | | | | | | | | | | |
NONINTEREST EXPENSES | | | | | | | | | | | | | | | | |
| Salaries | | | 8,611 | | | | 8,699 | | | | 26,059 | | | | 25,573 | |
| Employee benefits | | | 2,615 | | | | 2,394 | | | | 7,839 | | | | 8,066 | |
| | | | | | | | | | | | | |
| Total personnel expense | | | 11,226 | | | | 11,093 | | | | 33,898 | | | | 33,639 | |
| Occupancy and equipment expenses, net | | | 2,606 | | | | 2,550 | | | | 7,953 | | | | 7,332 | |
| Advertising and marketing | | | 888 | | | | 974 | | | | 2,974 | | | | 2,780 | |
| Professional fees | | | 1,543 | | | | 1,620 | | | | 4,834 | | | | 4,136 | |
| Communications | | | 485 | | | | 486 | | | | 1,455 | | | | 1,332 | |
| Other expenses | | | 2,674 | | | | 2,732 | | | | 8,220 | | | | 7,564 | |
| | | | | | | | | | | | | |
| Total noninterest expenses | | | 19,422 | | | | 19,455 | | | | 59,334 | | | | 56,783 | |
| | | | | | | | | | | | | |
| Income from continuing operations before income taxes | | | 5,366 | | | | 6,777 | | | | 17,115 | | | | 20,022 | |
| Provision for income taxes at normal effective rates | | | 1,866 | | | | 2,455 | | | | 6,252 | | | | 7,580 | |
| | | | | | | | | | | | | |
| Income from continuing operations after normalized taxes | | | 3,500 | | | | 4,322 | | | | 10,863 | | | | 12,442 | |
| Reversal of tax reserves | | | 341 | | | | 700 | | | | 341 | | | | 4,447 | |
| | | | | | | | | | | | | |
| Income from continuing operations | | | 3,841 | | | | 5,022 | | | | 11,204 | | | | 16,889 | |
| | | | | | | | | | | | | |
| Discontinued operations: | | | | | | | | | | | | | | | | |
| (Loss)/Income, net of taxes | | | (774 | ) | | | 150 | | | | (795 | ) | | | (411 | ) |
| Loss on sale, net of taxes | | | 0 | | | | (9,604 | ) | | | 0 | | | | (9,604 | ) |
| | | | | | | | | | | | | |
Net income/(loss) | | $ | 3,067 | | | $ | (4,432 | ) | | $ | 10,409 | | | $ | 6,874 | |
| | | | | | | | | | | | | |
Page 10 of 16
STERLING BANCORP
Consolidated Statements of Operations
(Unaudited)
(dollars in thousands, except per share data)
(continued)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended September 30, | | | Nine Months Ended September 30, | |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
| Average number of common shares outstanding | | | | | | | | | | | | | | | | |
| Basic | | | 17,910,268 | | | | 18,712,072 | | | | 18,329,750 | | | | 18,752,107 | |
| Diluted | | | 18,221,555 | | | | 19,230,823 | | | | 18,749,866 | | | | 19,274,858 | |
| | | | | | | | | | | | | | | | | |
| Income from continuing operations, per average common share | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.21 | | | $ | 0.27 | | | $ | 0.61 | | | $ | 0.90 | |
| Diluted | | | 0.21 | | | | 0.27 | | | | 0.60 | | | | 0.88 | |
| | | | | | | | | | | | | | | | | |
| Income from continuing operations, after normalized taxes, per average common share | | | | | | | | | | | | | | | | |
| Basic | | | 0.20 | | | | 0.23 | | | | 0.59 | | | | 0.66 | |
| Diluted | | | 0.19 | | | | 0.23 | | | | 0.58 | | | | 0.65 | |
| | | | | | | | | | | | | | | | | |
| Net income/(loss) per average common share | | | | | | | | | | | | | | | | |
| Basic | | | 0.17 | | | | (0.23 | ) | | | 0.57 | | | | 0.37 | |
| Diluted | | | 0.17 | | | | (0.23 | )(1) | | | 0.56 | | | | 0.36 | |
| | | | | | | | | | | | | | | | | |
| Dividends per common share | | | 0.19 | | | | 0.19 | | | | 0.57 | | | | 0.57 | |
| | |
| (1) | | Due to a loss for the period, zero incremental shares are included because the effect would be antidilutive. |
Page 11 of 16
STERLING BANCORP
Consolidated Statements of Comprehensive Income/(Loss)
(Unaudited)
(in thousands)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended September 30, | | | Nine Months Ended September 30, | |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
Net income/(loss) | | $ | 3,067 | | | $ | (4,432 | ) | | $ | 10,409 | | | $ | 6,874 | |
| Other comprehensive income/(loss), net of tax: | | | | | | | | | | | | | | | | |
| Unrealized holding gains/(losses) arising during the period | | | 1,150 | | | | 1,872 | | | | 254 | | | | (348 | ) |
| | | | | | | | | | | | | | | | | |
| Reclassification adjustment for losses included in net income | | | 0 | | | | 0 | | | | 0 | | | | 244 | |
| | | | | | | | | | | | | | | | | |
| Amortization of: | | | | | | | | | | | | | | | | |
| Prior service cost | | | 16 | | | | 0 | | | | 43 | | | | 0 | |
| Net actuarial losses | | | 243 | | | | 0 | | | | 608 | | | | 0 | |
| | | | | | | | | | | | | |
Comprehensive income/(loss) | | $ | 4,476 | | | $ | (2,560 | ) | | $ | 11,314 | | | $ | 6,770 | |
| | | | | | | | | | | | | |
STERLING BANCORP
Consolidated Statements of Changes in Shareholders’ Equity
(Unaudited)
(in thousands)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended September 30, | | | Nine Months Ended September 30, | |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
Balance, at beginning of period | | $ | 121,913 | | | $ | 147,115 | | | $ | 132,263 | | | $ | 147,588 | |
| Net income/(loss) for period | | | 3,067 | | | | (4,432 | ) | | | 10,409 | | | | 6,874 | |
| Common shares issued under stock incentive plan and related tax benefits | | | 31 | | | | 11 | | | | 808 | | | | 1,735 | |
| Purchase of common shares for treasury | | | (3,107 | ) | | | 0 | | | | (13,622 | ) | | | (3,810 | ) |
| Cash dividends-Common shares | | | (3,378 | ) | | | (3,552 | ) | | | (10,372 | ) | | | (10,677 | ) |
| Surrender of shares issued under incentive compensation plan | | | 0 | | | | 0 | | | | (456 | ) | | | (614 | ) |
| Amortization of unearned compensation | | | 0 | | | | 0 | | | | 0 | | | | 22 | |
| Change in net unrealized holding losses on available for sale securities | | | 1,150 | | | | 1,872 | | | | 254 | | | | (348 | ) |
| Reclassification adjustment for losses included in net income | | | 0 | | | | 0 | | | | 0 | | | | 244 | |
| Amortization of: | | | | | | | | | | | | | | | | |
| Prior service cost | | | 16 | | | | 0 | | | | 43 | | | | 0 | |
| Net actuarial losses | | | 243 | | | | 0 | | | | 608 | | | | 0 | |
| | | | | | | | | | | | | |
Balance, at end of period | | $ | 119,935 | | | $ | 141,014 | | | $ | 119,935 | | | $ | 141,014 | |
| | | | | | | | | | | | | |
Page 12 of 16
STERLING BANCORP
Average Balance Sheets[1]
(Unaudited)
(dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | |
| | | September 30, 2007 | | | September 30, 2006 | |
| | | AVERAGE | | | | | | | AVERAGE | | | AVERAGE | | | | | | | AVERAGE | |
| | | BALANCE | | | INTEREST | | | RATE | | | BALANCE | | | INTEREST | | | RATE | |
| | | |
Assets | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing deposits with other banks | | $ | 2,486 | | | $ | 24 | | | | 3.80 | % | | $ | 2,346 | | | $ | 23 | | | | 3.80 | % |
| | | | | | | | | | | | | | | | | | | |
| Investment securities — available for sale | | | 154,518 | | | | 1,932 | | | | 5.00 | | | | 140,167 | | | | 1,660 | | | | 4.74 | |
| Investment securities — held to maturity | | | 401,664 | | | | 4,731 | | | | 4.71 | | | | 464,408 | | | | 5,231 | | | | 4.51 | |
| Investment securities — tax exempt [2] | | | 19,127 | | | | 298 | | | | 6.18 | | | | 24,728 | | | | 396 | | | | 6.35 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total investment securities | | | 575,309 | | | | 6,961 | | | | 4.84 | | | | 629,303 | | | | 7,287 | | | | 4.63 | |
| Federal funds sold | | | 17,228 | | | | 227 | | | | 5.17 | | | | 978 | | | | 13 | | | | 5.15 | |
| Loans, net of unearned discount [3] | | | 1,133,034 | | | | 24,148 | | | | 8.68 | | | | 1,051,501 | | | | 22,600 | | | | 8.94 | |
| | | | | | | | | | | | | | | | | | | | | |
Total Interest-Earning Assets [2] | | | 1,728,057 | | | | 31,360 | | | | 7.31 | % | | | 1,684,128 | | | | 29,923 | | | | 7.24 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Cash and due from banks | | | 72,253 | | | | | | | | | | | | 57,430 | | | | | | | | | |
| Allowance for loan losses | | | (16,146 | ) | | | | | | | | | | | (17,503 | ) | | | | | | | | |
| Goodwill | | | 22,901 | | | | | | | | | | | | 22,958 | | | | | | | | | |
| Other | | | 94,296 | | | | | | | | | | | | 92,396 | | | | | | | | | |
| Assets — discontinued operations | | | 1,203 | | | | | | | | | | | | 109,391 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total Assets | | $ | 1,902,564 | | | | | | | | | | | $ | 1,948,800 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing deposits | | | | | | | | | | | | | | | | | | | | | | | | |
| Domestic | | | | | | | | | | | | | | | | | | | | | | | | |
| Savings | | $ | 18,705 | | | | 26 | | | | 0.55 | % | | $ | 22,559 | | | | 25 | | | | 0.44 | % |
| NOW | | | 241,789 | | | | 1,519 | | | | 2.49 | | | | 210,116 | | | | 1,097 | | | | 2.07 | |
| Money market | | | 282,436 | | | | 2,284 | | | | 3.21 | | | | 201,523 | | | | 1,285 | | | | 2.53 | |
| Time | | | 549,832 | | | | 6,456 | | | | 4.66 | | | | 496,304 | | | | 5,162 | | | | 4.13 | |
| Foreign | | | | | | | | | | | | | | | | | | | | | | | | |
| Time | | | 575 | | | | 2 | | | | 1.09 | | | | 3,030 | | | | 8 | | | | 0.99 | |
| | | | | | | | | | | | | | | | | | | | | |
Total Interest-Bearing Deposits | | | 1,093,337 | | | | 10,287 | | | | 3.73 | | | | 933,532 | | | | 7,577 | | | | 3.22 | |
| | | | | | | | | | | | | | | | | | | | | |
| Borrowings | | | | | | | | | | | | | | | | | | | | | | | | |
| Securities sold u/a/r — customers | | | 68,396 | | | | 701 | | | | 4.07 | | | | 89,672 | | | | 974 | | | | 4.31 | |
| Securities sold u/a/r — dealers | | | 0 | | | | 0 | | | | 0.00 | | | | 81,701 | | | | 1,114 | | | | 5.41 | |
| Federal funds purchased | | | 6,006 | | | | 71 | | | | 4.66 | | | | 22,568 | | | | 305 | | | | 5.29 | |
| Commercial paper | | | 28,397 | | | | 368 | | | | 5.14 | | | | 50,076 | | | | 610 | | | | 4.84 | |
| Short-term borrowings — FHLB | | | 4,185 | | | | 53 | | | | 5.03 | | | | 52,953 | | | | 726 | | | | 5.43 | |
| Short-term borrowings — other | | | 1,553 | | | | 21 | | | | 5.10 | | | | 395 | | | | 5 | | | | 5.35 | |
| Long-term borrowings — FHLB | | | 10,000 | | | | 118 | | | | 4.70 | | | | 25,543 | | | | 297 | | | | 4.65 | |
| Long-term borrowings — sub debt | | | 25,774 | | | | 523 | | | | 8.37 | | | | 25,774 | | | | 523 | | | | 8.38 | |
| | | | | | | | | | | | | | | | | | | | | |
Total Borrowings | | | 144,311 | | | | 1,855 | | | | 5.14 | | | | 348,682 | | | | 4,554 | | | | 5.20 | |
| | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing liabilities allocated to discontinued operations | | | 0 | | | | 0 | | | | 0.00 | | | | (99,377 | ) | | | (856 | ) | | | 3.74 | |
| | | | | | | | | | | | | | | | | | | | | |
Total Interest-Bearing Liabilities | | | 1,237,648 | | | | 12,142 | | | | 3.90 | % | | | 1,182,837 | | | | 11,275 | | | | 3.76 | % |
| | | | | | | | | | | | | | | | | | | |
| Noninterest-bearing demand deposits | | | 455,093 | | | | | | | | | | | | 424,834 | | | | | | | | | |
| Other liabilities | | | 91,267 | | | | | | | | | | | | 96,085 | | | | | | | | | |
| Liabilities — discontinued operations | | | 129 | | | | | | | | | | | | 99,784 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Total Liabilities | | | 1,784,137 | | | | | | | | | | | | 1,803,540 | | | | | | | | | |
| Shareholders’ equity | | | 118,427 | | | | | | | | | | | | 145,260 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total Liabilities and Shareholders’ Equity | | $ | 1,902,564 | | | | | | | | | | | $ | 1,948,800 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Net interest income/spread [2] | | | | | | | 19,218 | | | | 3.41 | % | | | | | | | 18,648 | | | | 3.48 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Net yield on interest-earning assets | | | | | | | | | | | 4.41 | % | | | | | | | | | | | 4.49 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Less: Tax-equivalent adjustment | | | | | | | 117 | | | | | | | | | | | | 155 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Net interest income | | | | | | $ | 19,101 | | | | | | | | | | | $ | 18,493 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | |
| | | [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. |
Page 13 of 16
STERLING BANCORP
Average Balance Sheets[1]
(Unaudited)
(dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Nine Months Ended | |
| | | September 30, 2007 | | | September 30, 2006 | |
| | | AVERAGE | | | | | | | AVERAGE | | | AVERAGE | | | | | | | AVERAGE | |
| | | BALANCE | | | INTEREST | | | RATE | | | BALANCE | | | INTEREST | | | RATE | |
| | | |
Assets | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing deposits with other banks | | $ | 2,732 | | | $ | 91 | | | | 4.46 | % | | $ | 2,390 | | | $ | 73 | | | | 4.09 | % |
| | | | | | | | | | | | | | | | | | | |
| Investment securities — available for sale | | | 138,994 | | | | 5,080 | | | | 4.87 | | | | 151,265 | | | | 5,231 | | | | 4.61 | |
| Investment securities — held to maturity | | | 410,729 | | | | 14,299 | | | | 4.64 | | | | 486,263 | | | | 16,526 | | | | 4.53 | |
| Investment securities — tax exempt [2] | | | 20,150 | | | | 951 | | | | 6.31 | | | | 28,721 | | | | 1,400 | | | | 6.52 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total investment securities | | | 569,873 | | | | 20,330 | | | | 4.76 | | | | 666,249 | | | | 23,157 | | | | 4.63 | |
| Federal funds sold | | | 30,861 | | | | 1,230 | | | | 5.26 | | | | 2,454 | | | | 88 | | | | 4.71 | |
| Loans, net of unearned discount [3] | | | 1,097,307 | | | | 68,996 | | | | 8.83 | | | | 1,018,876 | | | | 63,569 | | | | 8.84 | |
| | | | | | | | | | | | | | | | | | | | | |
Total Interest-Earning Assets [2] | | | 1,700,773 | | | | 90,647 | | | | 7.34 | % | | | 1,689,969 | | | | 86,887 | | | | 7.10 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Cash and due from banks | | | 67,770 | | | | | | | | | | | | 60,594 | | | | | | | | | |
| Allowance for loan losses | | | (16,445 | ) | | | | | | | | | | | (16,589 | ) | | | | | | | | |
| Goodwill | | | 22,879 | | | | | | | | | | | | 22,671 | | | | | | | | | |
| Other | | | 90,950 | | | | | | | | | | | | 90,320 | | | | | | | | | |
| Assets — discontinued operations | | | 1,211 | | | | | | | | | | | | 112,521 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total Assets | | $ | 1,867,138 | | | | | | | | | | | $ | 1,959,486 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing deposits | | | | | | | | | | | | | | | | | | | | | | | | |
| Domestic | | | | | | | | | | | | | | | | | | | | | | | | |
| Savings | | $ | 20,244 | | | | 78 | | | | 0.51 | % | | $ | 23,956 | | | | 76 | | | | 0.42 | % |
| NOW | | | 236,569 | | | | 4,489 | | | | 2.54 | | | | 189,741 | | | | 2,522 | | | | 1.78 | |
| Money market | | | 237,154 | | | | 5,401 | | | | 3.05 | | | | 216,014 | | | | 3,264 | | | | 2.02 | |
| Time | | | 559,224 | | | | 19,582 | | | | 4.68 | | | | 507,732 | | | | 14,323 | | | | 3.77 | |
| Foreign | | | | | | | | | | | | | | | | | | | | | | | | |
| Time | | | 574 | | | | 5 | | | | 1.09 | | | | 3,027 | | | | 23 | | | | 1.03 | |
| | | | | | | | | | | | | | | | | | | | | |
Total Interest-Bearing Deposits | | | 1,053,765 | | | | 29,555 | | | | 3.75 | | | | 940,470 | | | | 20,208 | | | | 2.87 | |
| | | | | | | | | | | | | | | | | | | | | |
| Borrowings | | | | | | | | | | | | | | | | | | | | | | | | |
| Securities sold u/a/r — customers | | | 79,747 | | | | 2,581 | | | | 4.33 | | | | 83,760 | | | | 2,436 | | | | 3.89 | |
| Securities sold u/a/r — dealers | | | 0 | | | | 0 | | | | 0.00 | | | | 91,634 | | | | 3,442 | | | | 5.02 | |
| Federal funds purchased | | | 2,922 | | | | 107 | | | | 4.84 | | | | 18,291 | | | | 691 | | | | 4.98 | |
| Commercial paper | | | 28,070 | | | | 1,073 | | | | 5.11 | | | | 47,225 | | | | 1,553 | | | | 4.40 | |
| Short-term borrowings — FHLB | | | 1,410 | | | | 53 | | | | 5.03 | | | | 40,264 | | | | 1,561 | | | | 5.18 | |
| Short-term borrowings — other | | | 1,213 | | | | 48 | | | | 5.24 | | | | 628 | | | | 23 | | | | 4.92 | |
| Long-term borrowings — FHLB | | | 13,846 | | | | 479 | | | | 4.61 | | | | 38,938 | | | | 1,344 | | | | 4.60 | |
| Long-term borrowings — sub debt | | | 25,774 | | | | 1,570 | | | | 8.38 | | | | 25,774 | | | | 1,570 | | | | 8.38 | |
| | | | | | | | | | | | | | | | | | | | | |
Total Borrowings | | | 152,982 | | | | 5,911 | | | | 5.19 | | | | 346,514 | | | | 12,620 | | | | 4.87 | |
| | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing liabilities allocated to discontinued operations | | | 0 | | | | 0 | | | | 0.00 | | | | (101,790 | ) | | | (2,508 | ) | | | 3.36 | |
| | | | | | | | | | | | | | | | | | | | | |
Total Interest-Bearing Liabilities | | | 1,206,747 | | | | 35,466 | | | | 3.93 | % | | | 1,185,194 | | | | 30,320 | | | | 3.42 | % |
| | | | | | | | | | | | | | | | | | | |
| Noninterest-bearing demand deposits | | | 444,828 | | | | | | | | | | | | 436,006 | | | | | | | | | |
| Other liabilities | | | 89,694 | | | | | | | | | | | | 91,147 | | | | | | | | | |
| Liabilities — discontinued operations | | | 238 | | | | | | | | | | | | 102,284 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Total Liabilities | | | 1,741,507 | | | | | | | | | | | | 1,814,631 | | | | | | | | | |
| Shareholders’ equity | | | 125,631 | | | | | | | | | | | | 144,855 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total Liabilities and Shareholders’ Equity | | $ | 1,867,138 | | | | | | | | | | | $ | 1,959,486 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Net interest income/spread [2] | | | | | | | 55,181 | | | | 3.41 | % | | | | | | | 56,567 | | | | 3.68 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Net yield on interest-earning assets | | | | | | | | | | | 4.44 | % | | | | | | | | | | | 4.60 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Less: Tax-equivalent adjustment | | | | | | | 372 | | | | | | | | | | | | 550 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Net interest income | | | | | | $ | 54,809 | | | | | | | | | | | $ | 56,017 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | |
| | | [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. |
Page 14 of 16
STERLING BANCORP
Rate/Volume Analysis [1]
(Unaudited)
(in thousands)
| | | | | | | | | | | | | |
| | | Increase/(Decrease) | |
| | | Three Months Ended | |
| | | September 30, 2007 | |
| | | Volume | | | Rate | | | Net [2] | |
INTEREST INCOME | | | | | | | | | | | | |
| Interest-bearing deposits with other banks | | $ | 1 | | | $ | 0 | | | $ | 1 | |
| | | | | | | | | | |
| Investment securities — available for sale | | | 177 | | | | 95 | | | | 272 | |
| Investment securities — held to maturity | | | (729 | ) | | | 229 | | | | (500 | ) |
| Investment securities — tax exempt | | | (87 | ) | | | (11 | ) | | | (98 | ) |
| | | | | | | | | | |
| Total investment securities | | | (639 | ) | | | 313 | | | | (326 | ) |
| | | | | | | | | | |
| Federal funds sold | | | 214 | | | | 0 | | | | 214 | |
| Loans, net of unearned discounts [3] | | | 2,128 | | | | (580 | ) | | | 1,548 | |
| | | | | | | | | | | | | |
| | | | | | | | | | |
TOTAL INTEREST INCOME | | $ | 1,704 | | | $ | (267 | ) | | $ | 1,437 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
INTEREST EXPENSE | | | | | | | | | | | | |
| Interest-bearing deposits | | | | | | | | | | | | |
| Domestic | | | | | | | | | | | | |
| Savings | | $ | (4 | ) | | $ | 5 | | | $ | 1 | |
| NOW | | | 180 | | | | 242 | | | | 422 | |
| Money market | | | 599 | | | | 400 | | | | 999 | |
| Time | | | 591 | | | | 703 | | | | 1,294 | |
| Foreign | | | | | | | | | | | | |
| Time | | | (7 | ) | | | 1 | | | | (6 | ) |
| | | | | | | | | | |
| Total interest-bearing deposits | | | 1,359 | | | | 1,351 | | | | 2,710 | |
| | | | | | | | | | |
| Borrowings | | | | | | | | | | | | |
| Securities sold under agreements to repurchase — customers | | | (221 | ) | | | (52 | ) | | | (273 | ) |
| Securities sold under agreements to repurchase — dealers | | | (1,114 | ) | | | 0 | | | | (1,114 | ) |
| Federal funds purchased | | | (201 | ) | | | (33 | ) | | | (234 | ) |
| Commercial paper | | | (278 | ) | | | 36 | | | | (242 | ) |
| Short-term borrowings — FHLB | | | (623 | ) | | | (50 | ) | | | (673 | ) |
| Short-term borrowings — other | | | 16 | | | | 0 | | | | 16 | |
| Long-term borrowings — FHLB | | | (182 | ) | | | 3 | | | | (179 | ) |
| Long-term borrowings — subordinated debentures | | | 0 | | | | 0 | | | | 0 | |
| | | | | | | | | | |
| Total borrowings | | | (2,603 | ) | | | (96 | ) | | | (2,699 | ) |
| | | | | | | | | | |
| Less: interest-bearing liabilities allocated to discontinued operations | | | 856 | | | | 0 | | | | 856 | |
| | | | | | | | | | |
TOTAL INTEREST EXPENSE | | $ | (388 | ) | | $ | 1,255 | | | $ | 867 | |
| | | | | | | | | | |
NET INTEREST INCOME | | $ | 2,092 | | | $ | (1,522 | ) | | $ | 570 | |
| | | | | | | | | | |
| | |
| | | [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. |
Page 15 of 16
STERLING BANCORP
Rate/Volume Analysis [1]
(Unaudited)
(in thousands)
| | | | | | | | | | | | | |
| | | Increase/(Decrease) | |
| | | Nine Months Ended | |
| | | September 30, 2007 | |
| | | Volume | | | Rate | | | Net [2] | |
INTEREST INCOME | | | | | | | | | | | | |
| Interest-bearing deposits with other banks | | $ | 11 | | | $ | 7 | | | $ | 18 | |
| | | | | | | | | | |
| Investment securities — available for sale | | | (436 | ) | | | 285 | | | | (151 | ) |
| Investment securities — held to maturity | | | (2,618 | ) | | | 391 | | | | (2,227 | ) |
| Investment securities — tax exempt | | | (406 | ) | | | (43 | ) | | | (449 | ) |
| | | | | | | | | | |
| Total investment securities | | | (3,460 | ) | | | 633 | | | | (2,827 | ) |
| | | | | | | | | | |
| Federal funds sold | | | 1,131 | | | | 11 | | | | 1,142 | |
| Loans, net of unearned discounts [3] | | | 5,498 | | | | (71 | ) | | | 5,427 | |
| | | | | | | | | | | | | |
| | | | | | | | | | |
TOTAL INTEREST INCOME | | $ | 3,180 | | | $ | 580 | | | $ | 3,760 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
INTEREST EXPENSE | | | | | | | | | | | | |
| Interest-bearing deposits | | | | | | | | | | | | |
| Domestic | | | | | | | | | | | | |
| Savings | | $ | (13 | ) | | $ | 15 | | | $ | 2 | |
| NOW | | | 720 | | | | 1,247 | | | | 1,967 | |
| Money market | | | 344 | | | | 1,793 | | | | 2,137 | |
| Time | | | 1,556 | | | | 3,703 | | | | 5,259 | |
| Foreign | | | | | | | | | | | | |
| Time | | | (19 | ) | | | 1 | | | | (18 | ) |
| | | | | | | | | | |
| Total interest-bearing deposits | | | 2,588 | | | | 6,759 | | | | 9,347 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
| Borrowings | | | | | | | | | | | | |
| Securities sold under agreements to repurchase — customers | | | (121 | ) | | | 266 | | | | 145 | |
| Securities sold under agreements to repurchase — dealers | | | (3,442 | ) | | | 0 | | | | (3,442 | ) |
| Federal funds purchased | | | (565 | ) | | | (19 | ) | | | (584 | ) |
| Commercial paper | | | (702 | ) | | | 222 | | | | (480 | ) |
| Short-term borrowings — FHLB | | | (1,464 | ) | | | (44 | ) | | | (1,508 | ) |
| Short-term borrowings — other | | | 23 | | | | 2 | | | | 25 | |
| Long-term borrowings — FHLB | | | (868 | ) | | | 3 | | | | (865 | ) |
| Long-term borrowings — subordinated debentures | | | 0 | | | | 0 | | | | 0 | |
| | | | | | | | | | |
| Total borrowings | | | (7,139 | ) | | | 430 | | | | (6,709 | ) |
| | | | | | | | | | |
| | | | | | | | | | | | | |
| Less: interest-bearing liabilities allocated to discontinued operations | | | 2,508 | | | | 0 | | | | 2,508 | |
| | | | | | | | | | |
TOTAL INTEREST EXPENSE | | $ | (2,043 | ) | | $ | 7,189 | | | $ | 5,146 | |
| | | | | | | | | | |
NET INTEREST INCOME | | $ | 5,223 | | | $ | (6,609 | ) | | $ | (1,386 | ) |
| | | | | | | | | | |
| | |
| | | [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. |
Page 16 of 16
