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Exhibit 99.1
(STERLING BANCORP LOGO) NEWS
IMMEDIATE RELEASE
John Tietjen Kimberly Storin
Chief Financial Officer Investor Relations/Media Relations
Sterling Bancorp The MWW Group
john.tietjen@sterlingbancorp.com kstorin@mww.com
212.757.8035 212.827.3752
STERLING BANCORP REPORTS STRONG FY 2003 FINANCIAL RESULTS
Full Year 2003 Net Income Increases 11% in 8th Consecutive Year of
Record Results
New York, NY, January 22, 2004 - Sterling Bancorp (NYSE: STL), a financial
holding company and the parent company of Sterling National Bank, today reported
its financial results for the fiscal year and fourth quarter ended December 31,
2003.
2003 Highlights:
- - 8th consecutive year of record results
- - Net income increased 11% for both the full year and fourth quarter of
2003
- - Total loans and demand deposits on average reached all-time highs for
the full year and fourth quarter of 2003
- - Diluted earnings per share for the full year 2003 increased by 12%
"In 2003 Sterling ranked among the top fifty fastest growing companies in New
York City according to the December 29 issue of Crain's New York Business," said
Louis J. Cappelli, Chairman and Chief Executive Officer. "The strength of our
unique business model is demonstrated by this ranking, as well as by our solid
financial results. This was Sterling's 8th consecutive year of record financial
results, with net income growth in the double-digits and both demand deposits
and loans reaching all-time highs."
"This fall we kicked off the year-long 75th anniversary celebration of Sterling
National Bank," continued Chairman Cappelli. "Since 1929, our corporate
strategies have centered on offering a diverse range of financial products,
providing `high touch' customer service, increasing shareholder value and
building the Sterling brand. In spite of this year's challenging economic
conditions, we never lost our focus, which resulted in strong top line growth
and consistent financial results."
Chairman Cappelli concluded, "In line with our plans to strengthen the Sterling
brand, we increased our presence in the New York City metro area and beyond by
broadening our customer base and increasing activity with our existing
customers. Transactions such as the pending Westchester County acquisition and
the Long Island City branch opening
Page 1
illustrate our ongoing dedication to serving our customers with personalized
banking and financial services."
FOURTH QUARTER CORPORATE HIGHLIGHTS
Sterling's Long Island City regional banking center began serving Queens
residents in December 2003. In addition to traditional banking and financial
services, the new regional banking center also includes QuickCheck(TM), a
check cashing facility that provides money orders and wire transfers services
principally to non-bank customers.
Additionally, in December, Sterling announced plans to expand into Westchester
County, New York, by acquiring a City & Suburban Federal Savings Bank branch
location in Yonkers. The transaction is scheduled to close in February 2004.
The new regional banking center in Long Island City and the new Westchester
branch will both provide the full range of Sterling's banking and financial
services through a commercial lending unit, a retail branch office, and an
expanded residential mortgage facility.
FULL YEAR AND FOURTH QUARTER 2003 FINANCIAL RESULTS
NET INCOME
For the year ended December 31, 2003, net income increased by 11.1% to $24.2
million from $21.8 million in 2002. Diluted earnings per share for 2003 were
$1.53, compared to $1.37 in 2002 (adjusted to reflect the five-for-four stock
split effected in September 2003).
The increase in net income for the 2003 year reflected continued growth in both
net interest income and noninterest income, which in conjunction with a lower
provision for loan losses, more than offset increases in noninterest expenses
and the provision for taxes.
For the fourth quarter of 2003, Sterling reported net income of $6.4 million, an
11.3% year-over-year increase. Diluted earnings per share for the fourth quarter
rose to $0.40 from $0.36 in the corresponding period of 2002.
In February 2002, Sterling issued trust-preferred securities through a wholly
owned subsidiary trust. In financial reports issued after that date, and in
conformity with applicable accounting rules, Sterling reported the
trust-preferred securities on the balance sheet between the liabilities and
equity sections and reported the dividends paid on those securities in the
income statement as a noninterest expense. In December 2003, the Financial
Accounting Standards Board ("FASB") issued Interpretation No. 46R ("FIN 46R")
"Consolidation of Variable Interest Entities," which clarified certain
provisions of a previously released interpretation. Under the provisions of FIN
46R, adopted as of December 31, 2003, Sterling deconsolidated the issuer trust.
As a result, Sterling accounted for its investment in the trust as an asset, its
junior subordinated debentures as
Page 2
long-term debt and the interest paid on those debentures as interest expense.
Also, as permitted by FIN 46R, prior period presentations have been restated to
conform to the current presentation.
While the adoption of FIN 46R had no impact on Sterling's net income, the
changes affected certain expenses and ratios for the full year and fourth
quarter of 2003 and 2002. The reclassifications required under the provisions of
FIN 46R resulted in reductions in the net interest margin and noninterest
expenses and increases in interest expense and the cost of funds.
NET INTEREST INCOME
For the year ended December 31, 2003, net interest income, on a tax equivalent
basis, increased to $75.0 million from $74.0 million in 2002.
Net interest margin, on a tax equivalent basis, for the year ended December 31,
2003 was 5.33%, compared to 5.74% for 2002. The decrease was primarily the
result of the impact of the lower interest rate environment in 2003, partially
offset by the impact of an increase in average loan outstandings.
Net interest income for the fourth quarter of 2003, on a tax equivalent basis,
increased to $19.3 million from $18.8 million in the fourth quarter of 2002.
Net interest margin for the full year and fourth quarter 2003 and 2002 was
affected by Sterling's adoption of FIN 46R (as discussed above).
LOANS
Average total loans for the year ended December 31, 2003 grew 14.9% to $857.4
million. All significant segments of Sterling's loan portfolio showed increases
in average outstandings for the year.
For the fourth quarter of 2003, average total loans also reached an historical
high, increasing 12.2% year-over-year to $896.0 million.
DEMAND DEPOSITS
For the full year of 2003, average demand deposits reached an all-time high,
increasing 17.4% to $370.6 million. As of December 31, 2003, demand deposits
were 39.1% of total deposits, placing Sterling among banks with the highest
ratio of demand to total deposits.
Average demand deposits for the fourth quarter of 2003 also reached an all-time
high of $399.5 million, increasing 19.4% from the corresponding period of 2002.
COST OF FUNDS
Management's ongoing efforts to limit funding costs, in conjunction with the
historically low interest rate environment in 2003, decreased the cost of funds
for the year ended December 31, 2003 to 1.76% from 2.24% in 2002.
Page 3
In the fourth quarter of 2003, the total interest expense decreased to $4.4
million compared to $4.9 million in the corresponding period of 2002. The
average rate paid on interest bearing funds was 1.65% for the fourth quarter of
2003, compared to 2.05% for the similar period of 2002.
The cost of funds for the fourth quarter and full year of 2003 and 2002 was
negatively impacted by Sterling's adoption of FIN 46R (as discussed above).
NONINTEREST INCOME AND NONINTEREST EXPENSES
For the year ended December 31, 2003, noninterest income increased 11.3% to
$32.6 million from $29.3 million in 2002. This increase was primarily the result
of increased income from mortgage banking activities, partially offset by lower
fees for various services, gains on sales of available for-sale securities, and
revenue from a bank-owned life insurance program.
Noninterest expenses for the year ended December 31, 2003 were $58.9 million,
compared to $57.4 million in 2002. The increase is primarily due to higher
expenses related to salaries, pensions, equipment, and mortgage taxes paid in
connection with real estate lending activities. Reductions in fees for
professional services, occupancy, advertising and marketing, stationary and
printing, and various other expenses partially offset the increases in
noninterest expenses. The modest 2.6% increase in noninterest expenses reflects
management's continued efforts to control costs throughout the year.
Noninterest income for the fourth quarter of 2003 increased 12.8% to $8.3
million compared to $7.3 million in the corresponding period in 2002.
Noninterest expenses for the fourth quarter of 2003 were $14.7 million, compared
to $14.3 million in the corresponding quarter of 2002.
ASSET QUALITY
As of December 31, 2003, nonperforming assets were $4.2 million, representing
0.24% of total assets.
The provision for loan losses for the year ended December 31, 2003 decreased to
$8.7 million from $10.8 million for 2002. During 2002, Sterling recorded a $5.4
million charge-off related to a customer's involuntary bankruptcy. The allowance
for loan losses as a percentage of loans held in portfolio was 1.61% as of
December 31, 2003.
The provision for loan losses in the fourth quarter of 2003 was $2.6 million
compared to $2.3 million in the fourth quarter of 2002.
STOCK SPLIT AND DIVIDEND
Sterling's Board of Directors approved a five-for-four stock split on August 21,
2003, which was effected in September 2003 through a 25% stock dividend in which
Sterling's shareholders received one additional common share for each four
common shares currently held. Sterling's annual dividend payout rate increased
to 41.8% in 2003 from
Page 4
34.8% in 2002. Outstanding shares of common stock as of December 31, 2003 were
14.9 million.
On November 20, 2003, Sterling's Board of Directors approved a fourth quarter
cash dividend of $0.19 per common share, which equates to a $0.76 annual
dividend for common shareholders. Sterling has distributed cash dividends for
232 consecutive quarters, or 58 years, illustrating Sterling's dedication to
returning profits to its shareholders.
CONFERENCE CALL
Sterling Bancorp will host a teleconference call for the financial community
this morning at 10:00 a.m. Eastern Time to discuss the full year and fourth
quarter 2003 financial results. To access the conference call live, interested
parties may dial 800-544-6192 at least 10 minutes prior to the call and
reference passcode 374448.
A replay of the conference call will be available at 1:00 pm EST this afternoon
until 11:59 p.m. EST on Wednesday, January 28, 2004. To access the replay by
telephone, interested parties may dial 888-266-2081 or 703-925-2533 and enter
the passcode 374448.
ABOUT STERLING BANCORP
Sterling Bancorp (NYSE: STL) is a financial holding company with assets of $1.8
billion, offering a broad array of banking and financial services and 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, trade financing, equipment leasing, corporate
and consumer deposit services, trust and estate administration, and investment
management services. The Company has operations in the metropolitan New York
area, North Carolina and mid-Atlantic States, 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" within the meaning of the Private
Securities Litigation Reform Act of 1995. 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. It is possible that the Company's actual results
and financial position may differ, possibly 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, see "Business -- Cautionary Statement
Regarding Forward-looking Statements" in the Company's Annual Report on Form
10-K for the fiscal year ended December 31, 2002.
Page 5
STERLING BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS TWELVE MONTHS
ENDED DECEMBER 31, ENDED DECEMBER 31,
--------------------- ---------------------
2003 2002 2003 2002
------- ------- ------- -------
OPERATING HIGHLIGHTS
Interest income $23,501 $23,480 $91,582 $94,197
Interest expense 4,410 4,904 17,591 21,209
Provision for loan losses 2,604 2,339 8,740 10,771
Noninterest income 8,251 7,315 32,556 29,256
Noninterest expenses 14,676 14,259 58,910 57,395
Net income 6,383 5,736 24,204 21,778
Earnings per common share:(1)
Basic 0.43 0.38 1.62 1.45
Diluted 0.40 0.36 1.53 1.37
Cash dividends declared (1) 0.19 0.15 0.68 0.51
Common shares outstanding:(1)
Period end 14,938 14,846 14,938 14,846
Average Basic 14,936 14,844 14,883 14,947
Average Diluted 15,924 15,598 15,758 15,798
Return on average assets 1.50% 1.52% 1.52% 1.48%
Return on average tangible equity (2) 21.48% 21.37% 21.42% 20.72%
Return on average stated equity (3) 18.21% 17.83% 18.04% 17.25%
Net interest spread, tax equivalent basis 4.55% 4.99% 4.82% 5.15%
Net interest margin, tax equivalent basis 5.02% 5.55% 5.33% 5.74%
ASSET QUALITY HIGHLIGHTS
PERIOD END
Net charge-offs $ 2,495 $ 1,612 $ 7,673 $11,024
Nonperforming loans 3,343 1,784 3,343 1,784
Other real estate owned 830 823 830 823
Nonperforming assets 4,173 2,607 4,173 2,607
Nonperforming loans/loans (4) 0.36% 0.21% 0.36% 0.21%
Nonperforming assets/assets 0.24% 0.17% 0.24% 0.17%
Allow loan loss/loans (5) 1.61% 1.71% 1.61% 1.71%
Allow loan loss/nonperform loans 432.52% 759.47% 432.52% 759.47%
(1) Prior periods have been restated to reflect the five- for- four stock
split effected in September 2003.
(2) Average tangible equity represents average shareholders' equity less
averge excess cost over equity in net assets of the bank.
(3) Average stated equity is equal to average shareholders' equity.
(4) The term "loans" includes loans held for sale and loans held in
portfolio.
(5) The term "loans" includes loans held in portfolio only.
PAGE 6
STERLING BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS TWELVE MONTHS
ENDED DECEMBER 31, ENDED DECEMBER 31,
--------------------------- ---------------------------
2003 2002 2003 2002
---------- ---------- ---------- ----------
BALANCE SHEET HIGHLIGHTS
PERIOD END BALANCES
Security investments $ 683,118 $ 588,774 $ 683,118 $ 588,774
Loans held for sale 40,557 54,685 40,557 54,685
Loans held in portfolio, net of u/d 900,556 791,315 900,556 791,315
Total earning assets 1,625,887 1,442,647 1,625,887 1,442,647
Allowance for loan losses 14,459 13,549 14,459 13,549
Total assets 1,758,746 1,561,950 1,758,746 1,561,950
Noninterest-bearing deposits 474,092 401,568 474,092 401,568
Interest-bearing deposits 737,649 645,540 737,649 645,540
Customer repurchase agreements 42,491 60,926 42,491 60,926
Shareholders' equity 143,185 129,780 143,185 129,780
AVERAGE BALANCES
Security investments $ 651,219 $ 569,173 $ 593,005 $ 589,390
Loans held for sale 53,543 47,815 71,779 37,459
Loans held in portfolio, net of u/d 842,444 750,854 785,575 708,656
Total earning assets 1,557,948 1,385,078 1,459,591 1,355,703
Allowance for loan losses 15,139 13,593 14,720 13,986
Total assets 1,689,685 1,500,763 1,587,623 1,466,922
Noninterest-bearing deposits 399,524 334,471 370,554 315,757
Interest-bearing deposits 721,988 683,191 683,748 676,296
Customer repurchase agreements 79,336 58,989 71,648 63,540
Shareholders' equity 139,053 127,625 134,150 126,274
CAPITAL RATIOS
Tier 1 risk based 13.63% 14.09% 13.63% 14.09%
Total risk based 14.88% 15.34% 14.88% 15.34%
Leverage 8.87% 8.95% 8.87% 8.95%
Book value per common share (1) $ 9.44 $ 8.60 $ 9.44 $ 8.60
(1) Prior periods have been restated to reflect the five- for- four stock
split effected in September 2003.
PAGE 7
STERLING BANCORP
BALANCE SHEETS
(IN THOUSANDS, EXCEPT NUMBER OF SHARES)
DECEMBER 31,
----------------------------
2003 2002
----------- -----------
ASSETS
Cash and due from banks $ 63,948 $ 58,174
Interest-bearing deposits with other banks 1,656 2,873
Federal funds sold 0 5,000
Investment securities
Available for sale (at estimated market value) 312,728 219,435
Held to maturity (at cost) 370,390 369,339
----------- -----------
Total investment securities 683,118 588,774
----------- -----------
Loans held for sale 40,557 54,685
----------- -----------
Loans held in portfolio, net of unearned discounts 900,556 791,315
Less allowance for loan losses 14,459 13,549
----------- -----------
Loans, net 886,097 777,766
----------- -----------
Customers' liability under acceptances 954 1,545
Excess cost over equity in net assets of the banking subsidiary 21,158 21,158
Premises and equipment, net 9,226 9,263
Other real estate 830 823
Accrued interest receivable 5,070 4,882
Bank owned life insurance 21,872 20,831
Other assets 24,260 16,176
----------- -----------
$ 1,758,746 $ 1,561,950
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Noninterest-bearing $ 474,092 $ 401,568
Interest-bearing 737,649 645,540
----------- -----------
Total deposits 1,211,741 1,047,108
Securities sold under agreements to repurchase - customers 42,491 60,926
Securities sold under agreements to repurchase - dealers 51,328 40,000
Federal funds purchased 10,000 0
Commercial paper 28,799 29,319
Other short-term borrowings 56,871 37,031
Acceptances outstanding 954 1,545
Accrued expenses and other liabilities 77,603 75,467
Long-term debt 135,774 140,774
----------- -----------
Total liabilities 1,615,561 1,432,170
----------- -----------
Shareholders' equity 143,185 129,780
----------- -----------
$ 1,758,746 $ 1,561,950
=========== ===========
MEMORANDA
Available for sale securities - amortized cost $ 308,890 $ 212,778
Held to maturity securities - estimated market value 374,978 382,084
Shares outstanding
Preferred - Series D 224,432 232,206
Common issued (1) 16,244,549 16,107,005
Common in treasury 1,306,587 1,261,061
(1) The prior period has been restated to reflect the five- for- four stock
split effected in September 2003.
PAGE 8
STERLING BANCORP
STATEMENTS OF INCOME
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS TWELVE MONTHS
ENDED DECEMBER 31, ENDED DECEMBER 31,
---------------------------- ----------------------------
2003 2002 2003 2002
----------- ----------- ----------- -----------
INTEREST INCOME
Loans $ 15,604 $ 14,955 $ 61,622 $ 57,914
Investment securities - available for sale 3,435 3,450 10,602 16,214
Investment securities - held to maturity 4,439 5,016 19,269 19,759
Federal funds sold 19 52 64 277
Deposits with other banks 4 7 25 33
----------- ----------- ----------- -----------
Total interest income 23,501 23,480 91,582 94,197
----------- ----------- ----------- -----------
INTEREST EXPENSE
Deposits 2,208 2,723 8,887 12,466
Securities sold under agreements to repurchase 420 227 1,443 1,292
Federal funds purchased 9 10 65 45
Commercial paper 72 139 264 655
Other short-term borrowings 129 200 545 573
Long-term debt 1,572 1,605 6,387 6,178
----------- ----------- ----------- -----------
Total interest expense 4,410 4,904 17,591 21,209
----------- ----------- ----------- -----------
Net interest income 19,091 18,576 73,991 72,988
Provision for loan losses 2,604 2,339 8,740 10,771
----------- ----------- ----------- -----------
Net interest income after provision
for loan losses 16,487 16,237 65,251 62,217
----------- ----------- ----------- -----------
NONINTEREST INCOME
Factoring income 1,553 1,419 5,947 6,156
Mortgage banking income 3,698 2,660 14,606 10,255
Service charges on deposit accounts 1,212 1,273 4,906 4,962
Trade finance income 543 699 2,337 2,575
Trust fees 178 188 647 664
Other service charges and fees 444 387 1,923 1,846
Bank owned life insurance income 252 476 1,042 1,290
Securities gains 253 127 551 996
Other income 118 86 597 512
----------- ----------- ----------- -----------
Total noninterest income 8,251 7,315 32,556 29,256
----------- ----------- ----------- -----------
NONINTEREST EXPENSES
Salaries and employee benefits 9,136 7,821 35,053 32,155
Occupancy expenses, net 1,157 1,127 4,788 4,920
Equipment expenses 808 693 2,854 2,658
Advertising & marketing 645 787 3,160 3,309
Professional fees 658 1,401 3,122 3,738
Data processing fees 232 284 1,012 1,271
Stationery & printing 228 213 904 1,052
Communications 351 429 1,581 1,626
Mortgage tax expense 160 200 916 719
Other expenses 1,301 1,304 5,520 5,947
----------- ----------- ----------- -----------
Total noninterest expenses 14,676 14,259 58,910 57,395
----------- ----------- ----------- -----------
Income before income taxes 10,062 9,293 38,897 34,078
Provision for income taxes 3,679 3,557 14,693 12,300
----------- ----------- ----------- -----------
NET INCOME $ 6,383 $ 5,736 $ 24,204 $ 21,778
=========== =========== =========== ===========
Average number of common
shares outstanding (1)
Basic 14,936,004 14,844,285 14,883,440 14,947,313
Diluted 15,923,631 15,598,311 15,758,058 15,797,524
Earnings per average common share (1)
Basic $ 0.43 $ 0.38 $ 1.62 $ 1.45
Diluted 0.40 0.36 1.53 1.37
Dividends per common share (1) 0.19 0.15 0.68 0.51
(1) Prior periods have been restated to reflect the five- for- four stock
split effected in September 2003.
PAGE 9
STERLING BANCORP
STATEMENTS OF COMPREHENSIVE INCOME
(IN THOUSANDS)
THREE MONTHS TWELVE MONTHS
ENDED DECEMBER 31, ENDED DECEMBER 31,
--------------------- -----------------------
2003 2002 2003 2002
------- ------- -------- --------
NET INCOME $ 6,383 $ 5,736 $ 24,204 $ 21,778
Other comprehensive income, net of tax:
Unrealized holding (losses)/gains arising
during the period (796) (314) (1,227) 3,021
Less:
Reclassification adjustment for
gains included in net income (137) (69) (298) (539)
Minimum pension liability adjustment (782) (2,271) (782) (2,271)
------- ------- -------- --------
COMPREHENSIVE INCOME $ 4,668 $ 3,082 $ 21,897 $ 21,989
======= ======= ======== ========
STERLING BANCORP
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(IN THOUSANDS)
THREE MONTHS TWELVE MONTHS
ENDED DECEMBER 31, ENDED DECEMBER 31,
------------------------- -------------------------
2003 2002 2003 2002
--------- --------- --------- ---------
BALANCE, AT BEGINNING OF PERIOD $ 140,945 $ 128,487 $ 129,780 $ 128,477
Net income for period 6,383 5,736 24,204 21,778
Options exercised 0 37 1,547 4,199
Purchase of common shares for treasury 0 (376) (256) (15,501)
Common stock issued in connection
with acquisition 0 400 0 400
Capital stock split/dividend - cash in lieu 0 (32) (32) (32)
Cash dividends
Common shares (2,819) (2,229) (10,111) (7,572)
Preferred shares (31) (28) (125) (113)
Surrender of shares issued under
incentive compensation plan 0 0 (494) (3,034)
Amortization of unearned compensation 422 439 979 967
Change in net unrealized holding (losses)/gains
on available for sale securities (796) (314) (1,227) 3,021
Reclassification adjustment for (gains)
included in net income (137) (69) (298) (539)
Minimum pension liability adjustment (782) (2,271) (782) (2,271)
--------- --------- --------- ---------
BALANCE, AT END OF PERIOD $ 143,185 $ 129,780 $ 143,185 $ 129,780
========= ========= ========= =========
PAGE 10
STERLING BANCORP
AVERAGE BALANCE SHEETS (1)
(dollars in thousands)
THREE MONTHS ENDED
------------------------------------------------------------------------------
DECEMBER 31, 2003 DECEMBER 31, 2002
------------------------------------- -------------------------------------
AVERAGE AVERAGE AVERAGE AVERAGE
BALANCE INTEREST RATE BALANCE INTEREST RATE
----------- -------- ------- ----------- -------- -------
ASSETS
Interest-bearing deposits with other banks $ 2,861 $ 4 0.62 % $ 3,758 $ 7 1.45 %
Investment securities - available for sale 267,760 3,096 4.60 198,980 3,093 6.22
Investment securities - held to maturity 352,450 4,439 5.06 337,522 5,016 5.94
Investment securities - tax exempt(2) 31,009 576 7.37 32,671 606 7.35
Federal funds sold 7,881 19 0.96 13,478 52 1.50
Loans, net of unearned discount(3) 895,987 15,604 7.23 798,669 14,955 7.89
----------- ------- ----------- -------
TOTAL INTEREST-EARNING ASSETS 1,557,948 23,738 6.20 % 1,385,078 23,729 7.04 %
------- ==== ------- ====
Cash and due from banks 61,269 50,275
Allowance for loan losses (15,139) (13,593)
Excess cost over equity in
net assets of the bank 21,158 21,158
Other 64,449 57,845
----------- -----------
TOTAL ASSETS $ 1,689,685 $ 1,500,763
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits
Domestic
Savings $ 29,007 25 0.34 % $ 25,319 31 0.49 %
NOW 122,173 148 0.48 117,603 186 0.63
Money market 180,002 227 0.50 162,178 235 0.57
Time 387,806 1,800 1.84 375,091 2,257 2.39
Foreign
Time 3,000 8 1.06 3,000 14 1.77
----------- ------- ----------- -------
TOTAL DEPOSITS 721,988 2,208 1.21 683,191 2,723 1.58
----------- ------- ----------- -------
Borrowings
Securities sold under agreements to
repurchase - customers 79,336 238 1.19 58,989 224 1.50
Securities sold under agreements to
repurchase - dealers 63,236 182 1.14 851 3 1.63
Federal funds purchased 3,413 9 1.04 2,989 10 1.30
Commercial paper 26,965 73 1.07 31,598 139 1.75
Other short-term debt 34,506 128 1.48 32,402 200 2.45
Long-term debt 137,187 1,572 4.58 140,774 1,605 4.56
----------- ------- ----------- -------
TOTAL BORROWINGS 344,643 2,202 2.55 267,603 2,181 3.25
----------- ------- ----------- -------
TOTAL INTEREST-BEARING LIABILITIES 1,066,631 4,410 1.65 % 950,794 4,904 2.05 %
----------- ------- ==== ----------- ------- ====
Noninterest-bearing demand deposits 399,524 334,471
Other liabilities 84,477 87,873
----------- -----------
Total Liabilities 1,550,632 1,373,138
Shareholders' equity 139,053 127,625
----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,689,685 $ 1,500,763
=========== ===========
Net interest income/spread 19,328 4.55 % 18,825 4.99 %
==== ====
Net yield on interest-earning assets 5.02 % 5.55 %
==== ====
Less: Tax equivalent adjustment 237 249
------- -------
Net interest income $19,091 $18,576
======= =======
(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 2002 amounts to conform to current presentation.
(2) Interest on tax-exempt securities is 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 11
STERLING BANCORP
AVERAGE BALANCE SHEETS (1)
(dollars in thousands)
TWELVE MONTHS ENDED
------------------------------------------------------------------------------
DECEMBER 31, 2003 DECEMBER 31, 2002
------------------------------------ -------------------------------------
AVERAGE AVERAGE AVERAGE AVERAGE
BALANCE INTEREST RATE BALANCE INTEREST RATE
----------- ------- ------- ----------- ------- -------
ASSETS
Interest-bearing deposits with other banks $ 3,473 $ 25 0.73 % $ 3,494 $ 33 1.20 %
Investment securities - available for sale 188,876 9,206 4.86 238,947 14,748 6.17
Investment securities - held to maturity 372,213 19,269 5.18 316,864 19,759 6.24
Investment securities - tax exempt(2) 31,916 2,370 7.43 33,579 2,489 7.41
Federal funds sold 5,759 64 1.12 16,704 277 1.66
Loans, net of unearned discount(3) 857,354 61,622 7.68 746,115 57,914 8.52
----------- ------- ----------- -------
TOTAL INTEREST-EARNING ASSETS 1,459,591 92,556 6.58 % 1,355,703 95,220 7.39 %
------- ==== ------- ====
Cash and due from banks 58,350 49,994
Allowance for loan losses (14,720) (13,986)
Excess cost over equity in
net assets of the bank 21,158 21,158
Other 63,244 54,053
----------- -----------
TOTAL ASSETS $ 1,587,623 $ 1,466,922
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits
Domestic
Savings $ 27,554 98 0.35 % $ 25,882 154 0.60 %
NOW 119,730 586 0.49 112,301 880 0.78
Money market 165,666 792 0.48 164,578 1,321 0.80
Time 367,798 7,370 2.00 370,536 10,053 2.71
Foreign
Time 3,000 41 1.38 2,999 58 1.94
----------- ------- ----------- -------
Total Deposits 683,748 8,887 1.30 676,296 12,466 1.84
----------- ------- ----------- -------
Borrowings
Securities sold under agreements to
repurchase - customers 71,648 877 1.22 63,540 1,163 1.83
Securities sold under agreements to
repurchase - dealers 46,219 566 1.22 6,960 129 1.85
Federal funds purchased 5,463 65 1.20 2,613 45 1.72
Commercial paper 23,819 264 1.11 31,885 655 2.06
Other short-term debt 31,853 545 1.71 23,885 573 2.40
Long-term debt 139,870 6,387 4.57 140,153 6,178 4.41
----------- ------- ----------- -------
Total Borrowings 318,872 8,704 2.73 269,036 8,743 3.25
----------- ------- ----------- -------
Total Interest-Bearing Liabilities 1,002,620 17,591 1.76 % 945,332 21,209 2.24 %
----------- ------- ==== ----------- ------- ====
Noninterest-bearing demand deposits 370,554 315,757
Other liabilities 80,299 79,559
----------- -----------
Total Liabilities 1,453,473 1,340,648
Shareholders' equity 134,150 126,274
----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,587,623 $ 1,466,922
=========== ===========
Net interest income/spread 74,965 4.82 % 74,011 5.15 %
==== ====
Net yield on interest-earning assets 5.33 % 5.74 %
==== ====
Less: Tax equivalent adjustment 974 1,023
------- -------
Net interest income $73,991 $72,988
======= =======
(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 2002 amounts to conform to current presentation.
(2) Interest on tax-exempt securities is 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 12
STERLING BANCORP AND SUBSIDIARIES
RATE/VOLUME ANALYSIS (1)
(IN THOUSANDS)
INCREASE/(DECREASE)
THREE MONTHS ENDED
DECEMBER 31, 2003
---------------------------------
VOLUME RATE NET (2)
------- ------- -----
INTEREST INCOME
Interest-bearing deposits with other banks $ (1) $ (2) $ (3)
------- ------- -----
Investment securities - available for sale 928 (925) 3
Investment securities - held to maturity 212 (789) (577)
Investment securities - tax exempt (32) 2 (30)
------- ------- -----
Total investment securities 1,108 (1,712) (604)
------- ------- -----
Federal funds sold (18) (15) (33)
Loans, net of unearned discounts (3) 1,960 (1,311) 649
------- ------- -----
TOTAL INTEREST INCOME $ 3,049 $(3,040) $ 9
======= ======= =====
INTEREST EXPENSE
Interest-bearing deposits
Domestic
Savings $ 5 $ (11) $ (6)
NOW 7 (45) (38)
Money market 24 (32) (8)
Time 75 (532) (457)
Foreign
Time 0 (6) (6)
------- ------- -----
Total interest-bearing deposits 111 (626) (515)
------- ------- -----
Borrowings
Securities sold under agreements to repurchase - customers 66 (52) 14
Securities sold under agreements to repurchase - dealers 180 (1) 179
Federal funds purchased 1 (2) (1)
Commercial paper (18) (48) (66)
12 (84) (72)
Long-term debt - FHLB (40) 7 (33)
------- ------- -----
Total borrowings 201 (180) 21
------- ------- -----
TOTAL INTEREST EXPENSE $ 312 $ (806) $(494)
======= ======= =====
NET INTEREST INCOME $ 2,737 $(2,234) $ 503
======= ======= =====
(1) The above 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 13
STERLING BANCORP AND SUBSIDIARIES
RATE/VOLUME ANALYSIS (1)
(IN THOUSANDS)
INCREASE/(DECREASE)
TWELVE MONTHS ENDED
DECEMBER 31, 2003
------------------------------------
VOLUME RATE NET (2)
------- -------- -------
INTEREST INCOME
Interest-bearing deposits with other banks $ 0 $ (8) $ (8)
------- -------- -------
Investment securities - available for sale (2,753) (2,789) (5,542)
Investment securities - held to maturity 3,157 (3,647) (490)
Investment securities - tax exempt (119) 0 (119)
------- -------- -------
Total investment securities 285 (6,436) (6,151)
------- -------- -------
Federal funds sold (143) (70) (213)
Loans, net of unearned discounts (3) 9,777 (6,069) 3,708
------- -------- -------
TOTAL INTEREST INCOME $ 9,919 $(12,583) $(2,664)
======= ======== =======
INTEREST EXPENSE
Interest-bearing deposits
Domestic
Savings $ 10 $ (66) $ (56)
NOW 54 (348) (294)
Money market 9 (538) (529)
Time (73) (2,610) (2,683)
Foreign
Time 0 (17) (17)
------- -------- -------
Total interest-bearing deposits 0 (3,579) (3,579)
------- -------- -------
Borrowings
Securities sold under agreements to repurchase - customers 135 (421) (286)
Securities sold under agreements to repurchase - dealers 495 (58) 437
Federal funds purchased 37 (17) 20
Commercial paper (138) (253) (391)
Other short-term debt 162 (190) (28)
Long-term debt (12) 221 209
------- -------- -------
Total borrowings 679 (718) (39)
------- -------- -------
TOTAL INTEREST EXPENSE $ 679 $ (4,297) $(3,618)
======= ======== =======
NET INTEREST INCOME $ 9,240 $ (8,286) $ 954
======= ======== =======
(1) The above 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 14