Sterling Bancshares Reports First Quarter 2010 Results
HOUSTON, April 22 /PRNewswire-FirstCall/ -- Sterling Bancshares, Inc. (Nasdaq: SBIB) today reported a net loss of $6.2 million, or $0.07 per diluted common share, for the first quarter ended March 31, 2010, compared to net income of $1.7 million or $0.02 per diluted common share for the fourth quarter of 2009.
Key items and metrics for the quarter include the following:
- Completed an $86.9 million common stock offering;
- Interest-earning assets increased $127 million or 2.8% at March 31, 2010, compared to December 31, 2009;
- Total period-end deposits increased $29.5 million linked-quarter to $4.1 billion at March 31, 2010;
- Average loan to deposit ratio was 78.6% for the first quarter of 2010, down from 98.2% for the same quarter in 2009;
- Total period-end loans decreased $131 million or 4.0% linked-quarter due primarily to a decline in the energy lending portfolio of approximately $62 million; and
- Period-end allowance for credit losses to period-end loans increased to 2.55% at March 31, 2010 from 2.39% at December 31, 2009 and from 1.55% at March 31, 2009.
"In March 2010, we successfully completed the issuance of $86.9 million in common stock, which strengthens our balance sheet and further improves the quality of our capital base, making Sterling one of the better capitalized banks among our peers," commented J. Downey Bridgwater, Sterling's Chairman, President, and Chief Executive Officer. "The net loss recorded for the first quarter of 2010 was a direct result of increased loan loss provisions, as we continued to experience elevated levels of nonperforming loans and charge-offs due to the lingering effects of the economic recession and further declines in commercial real estate values."
Average total loans decreased $106 million or 3.2% on a linked-quarter basis to $3.2 billion at March 31, 2010, and decreased $587 million or 15.5% since March 31, 2009. The decline in loans during the first quarter of 2010 was primarily due to principal reductions in energy loans.
While average deposits decreased $49.2 million to $4.1 billion at March 31, 2010, down 1.2% on a linked-quarter basis, average deposits increased $212 million or 5.5% compared to March 31, 2009. This deposit growth has further strengthened the Company's balance sheet by improving the average loan to deposit ratio to 78.6% for the first quarter of 2010, down from 98.2% for the same quarter in 2009.
At March 31, 2010, nonperforming assets were $153 million or 3.04% of total assets compared to $119 million or 2.42% at December 31, 2009. The increase in nonperforming loans was primarily due to the credit deterioration of certain nonowner-occupied commercial real estate loans which migrated to nonperforming status during the first quarter of 2010. Additionally, during the first quarter of 2010, approximately $27 million of restructured loans that were considered accruing at December 31, 2009 were moved to nonaccrual status at March 31, 2010, due to the continued deterioration of the financial condition of the borrower or noncompliance with the modified loan terms.
At March 31, 2010, restructured loans accruing were $10.7 million, compared to $69.9 million at December 31, 2009. Restructured loans accruing at March 31, 2010, consist of loans that were modified during the first quarter of 2010. Approximately $40 million of loans that were reported as restructured at December 31, 2009, are performing as agreed under their modified terms, and are therefore no longer reported as restructured loans.
At March 31, 2010, the total allowance for credit losses was $79.5 million or 2.55% of period-end total loans, up from $77.6 million or 2.39% of period-end total loans at December 31, 2009, and up from $57.8 million or 1.55% of period-end total loans at March 31, 2009. The increase in the allowance for credit losses during the first quarter of 2010 was due in part to increases in both nonperforming and classified loans.
Net charge-offs for the first quarter of 2010 were $21.0 million or 2.67% of average total loans, compared to $6.3 million or 0.76% of average total loans for the fourth quarter of 2009. Net charge-offs during the first quarter of 2010 were primarily due to approximately $17 million in charge-offs related to commercial real estate loans.
Tax-equivalent net interest income for the first quarter of 2010 was $44.5 million, down $2.7 million on a linked-quarter basis. Tax-equivalent net interest margin was 4.02% for the first quarter of 2010, down nine basis points from 4.11% for the fourth quarter of 2009.
Noninterest income for the first quarter of 2010 increased $1.0 million on a linked-quarter basis, and decreased $4.3 million compared to the same period in 2009. Other noninterest income for the first quarter of 2010 decreased $612 thousand on a linked-quarter basis and $3.5 million compared to the same period in 2009. During the first quarter of 2010, the Company recorded losses on loans classified as held for sale of $2.6 million compared to $1.4 million in losses during the fourth quarter of 2009.
Total noninterest expense decreased $537 thousand for the first quarter of 2010 as compared with the fourth quarter of 2009, and decreased $645 thousand compared to the same period in 2009. FDIC insurance premiums increased $691 thousand for the first quarter of 2010 as compared to the fourth quarter of 2009, and $1.3 million compared to the same quarter in 2009. In addition, the Company recorded $980 thousand of acquisition costs during the fourth quarter of 2009 related to the terminated First Bank branch acquisition.
As of March 31, 2010, Sterling had total assets of $5.0 billion, total loans of $3.1 billion and total deposits of $4.1 billion. Shareholders' equity of $620 million at March 31, 2010 was 12.3% of total assets. Book value per common share at period-end was $6.08.
Conference Call
Management of Sterling will host a conference call for investors and analysts that will be broadcast live via telephone and over the Internet on Thursday, April 22, 2010 at 11:00 a.m. Eastern Time. To participate, visit the Investor Relations section of the Company's web site at http://www.banksterling.com or call (612) 332-1210. An audio archive of the call will also be available on the web site beginning Friday, April 23, 2010.
A telephone replay of the conference call will be available beginning Thursday, April 22, 2010 at 12:00 p.m. until Thursday, April 29, 2010 at 11:59 p.m. Central Time by dialing (800) 475-6701. The access code for the replay is 152901.
Forward-Looking Statements
This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are based on beliefs and assumptions of management at the time that this release was prepared. The Company does not assume any obligation to update the forward-looking statements. There are several factors, many beyond the Company's control, that could cause results to differ significantly from expectations including: adverse changes in the loan portfolio and the resulting credit risk-related losses and expenses; potential inadequacy of the allowance for credit losses; the ability to maintain or improve origination volumes; competitive influences on product pricing; the ability to integrate acquisitions and realize expected cost savings and revenue enhancements; effects of changes in interest rates on net interest margin; and changes in federal and state regulations and laws. Additional factors can be found in the Company's 2009 Annual Report on Form 10-K which has been filed with the Securities and Exchange Commission and is available at the Securities and Exchange Commission's web site (www.sec.gov).
About Sterling Bancshares
Sterling Bancshares, Inc. is a Houston-based bank holding company with total assets of $5.0 billion, which operates 58 banking centers in the greater metropolitan areas of Houston, San Antonio, Dallas and Fort Worth, Texas. The Company's common stock is traded through the NASDAQ Global Select Market under the symbol "SBIB". For more information on Sterling Bancshares, please visit the Company's web site at http://www.banksterling.com.
For More Information Contact: |
|
J. Downey Bridgwater, Chairman, President and Chief Executive Officer, (713) 507-2670 |
|
Zach L. Wasson, Executive Vice President and Chief Financial Officer, (713) 507-1297 |
|
–Tables to follow–
STERLING BANCSHARES, INC. |
||||||
SELECTED FINANCIAL INFORMATION (Unaudited) |
||||||
(dollars in thousands, except for per share data) |
||||||
Page 4 |
||||||
Quarter Ended |
||||||
Mar. 31, |
Dec. 31, |
Mar. 31, |
||||
2010 |
2009 |
2009 |
||||
Profitability |
||||||
Net income (loss) |
$ (6,248) |
$ 1,736 |
$ 7,407 |
|||
Net income (loss) applicable to common shareholders |
$ (6,248) |
$ 1,736 |
$ 5,523 |
|||
Earnings (loss) per common share (1) |
||||||
Basic |
$ (0.07) |
$ 0.02 |
$ 0.08 |
|||
Diluted |
$ (0.07) |
$ 0.02 |
$ 0.08 |
|||
Return on average common equity (2) |
(4.41)% |
1.24% |
4.21% |
|||
Return on average assets (2) |
(0.51)% |
0.14% |
0.59% |
|||
Tax equivalent net interest margin (3) |
4.02% |
4.11% |
4.32% |
|||
Efficiency Ratio (4): |
||||||
Consolidated |
76.30% |
70.60% |
66.12% |
|||
Sterling Bank |
73.60% |
67.64% |
64.18% |
|||
Liquidity and Capital Ratios |
||||||
Average loans to average deposits |
78.64% |
80.29% |
98.22% |
|||
Period-end stockholders' equity to total assets |
12.28% |
10.95% |
12.75% |
|||
Average stockholders' equity to average assets |
11.63% |
11.12% |
12.81% |
|||
Period-end tangible capital to total tangible assets |
8.96% |
7.48% |
9.42% |
|||
Tier 1 capital to risk-weighted assets |
14.08% |
11.61% |
12.49% |
|||
Total capital to risk-weighted assets |
16.92% |
14.41% |
15.37% |
|||
Tier 1 leverage ratio (Tier 1 capital to average assets) |
10.64% |
8.89% |
10.59% |
|||
Other Data |
||||||
Shares used in computing earnings (loss) per common share |
||||||
Basic shares |
88,483 |
81,771 |
73,285 |
|||
Diluted shares |
88,483 |
82,019 |
73,471 |
|||
End of period common shares outstanding |
101,877 |
81,853 |
73,300 |
|||
Book value per common share at period-end |
$ 6.08 |
$ 6.60 |
$ 7.21 |
|||
Cash dividends paid per common share |
$ 0.015 |
$ 0.015 |
$ 0.055 |
|||
Common stock dividend payout ratio |
(19.66)% |
70.74% |
54.47% |
|||
Full-time equivalent employees |
1,004 |
1,012 |
1,124 |
|||
Number of banking centers |
58 |
58 |
60 |
|||
STERLING BANCSHARES, INC. |
||||||||||
CONSOLIDATED BALANCE SHEETS (Unaudited) |
||||||||||
(dollars in thousands) |
||||||||||
Page 5 |
||||||||||
Mar. 31, |
Dec. 31, |
Sep. 30, |
Jun. 30, |
Mar. 31, |
||||||
2010 |
2009 |
2009 |
2009 |
2009 |
||||||
ASSETS |
||||||||||
Cash and cash equivalents |
$361,199 |
$246,215 |
$158,114 |
$74,736 |
$142,769 |
|||||
Available-for-sale securities, at fair value |
920,082 |
846,216 |
836,521 |
766,536 |
673,960 |
|||||
Held-to-maturity securities, at amortized cost |
267,503 |
222,845 |
162,990 |
163,611 |
169,973 |
|||||
Loans held for sale |
18,055 |
11,778 |
38,187 |
1,642 |
1,395 |
|||||
Loans held for investment |
3,096,261 |
3,233,273 |
3,312,520 |
3,537,221 |
3,727,368 |
|||||
Total loans |
3,114,316 |
3,245,051 |
3,350,707 |
3,538,863 |
3,728,763 |
|||||
Allowance for loan losses |
(76,646) |
(74,732) |
(70,059) |
(53,075) |
(56,703) |
|||||
Loans, net |
3,037,670 |
3,170,319 |
3,280,648 |
3,485,788 |
3,672,060 |
|||||
Premises and equipment, net |
47,396 |
48,816 |
49,128 |
50,272 |
50,738 |
|||||
Real estate acquired by foreclosure |
17,282 |
16,763 |
11,674 |
8,095 |
8,144 |
|||||
Goodwill |
173,210 |
173,210 |
173,210 |
173,210 |
173,210 |
|||||
Core deposits and other intangibles, net |
11,077 |
11,626 |
12,179 |
12,744 |
13,309 |
|||||
Accrued interest receivable |
15,462 |
16,502 |
16,142 |
18,189 |
18,285 |
|||||
Other assets |
192,498 |
184,536 |
158,912 |
159,186 |
152,383 |
|||||
TOTAL ASSETS |
$ 5,043,379 |
$ 4,937,048 |
$ 4,859,518 |
$ 4,912,367 |
$ 5,074,831 |
|||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||||
LIABILITIES: |
||||||||||
Deposits: |
||||||||||
Noninterest-bearing demand |
$1,167,602 |
$1,144,133 |
$1,094,346 |
$1,127,717 |
$1,173,745 |
|||||
Interest-bearing demand |
2,031,399 |
2,004,539 |
1,874,746 |
1,670,437 |
1,586,754 |
|||||
Certificates and other time |
925,427 |
946,279 |
1,038,362 |
1,160,081 |
1,173,958 |
|||||
Total deposits |
4,124,428 |
4,094,951 |
4,007,454 |
3,958,235 |
3,934,457 |
|||||
Other borrowed funds |
99,012 |
97,245 |
99,486 |
176,631 |
278,274 |
|||||
Subordinated debt |
77,737 |
77,338 |
77,616 |
77,028 |
78,310 |
|||||
Junior subordinated debt |
82,734 |
82,734 |
82,734 |
82,734 |
82,734 |
|||||
Accrued interest payable and other liabilities |
39,944 |
44,247 |
46,716 |
47,631 |
53,942 |
|||||
Total liabilities |
4,423,855 |
4,396,515 |
4,314,006 |
4,342,259 |
4,427,717 |
|||||
COMMITMENTS AND CONTINGENCIES |
- |
- |
- |
- |
- |
|||||
SHAREHOLDERS' EQUITY |
||||||||||
Preferred stock |
- |
- |
- |
- |
118,332 |
|||||
Common stock |
103,745 |
83,721 |
83,622 |
83,552 |
75,168 |
|||||
Capital surplus |
237,439 |
170,848 |
171,955 |
170,708 |
122,877 |
|||||
Retained earnings |
288,436 |
295,909 |
295,401 |
324,619 |
333,498 |
|||||
Treasury stock |
(21,399) |
(21,399) |
(21,399) |
(21,399) |
(21,399) |
|||||
Accumulated other comprehensive income, net of tax |
11,303 |
11,454 |
15,933 |
12,628 |
18,638 |
|||||
Total shareholders' equity |
619,524 |
540,533 |
545,512 |
570,108 |
647,114 |
|||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$5,043,379 |
$4,937,048 |
$4,859,518 |
$4,912,367 |
$5,074,831 |
|||||
STERLING BANCSHARES, INC. |
||||||||||
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) |
||||||||||
(dollars in thousands, except for per share data) |
||||||||||
Page 6 |
||||||||||
Quarter Ended |
||||||||||
Mar. 31, |
Dec. 31, |
Sep. 30, |
Jun. 30, |
Mar. 31, |
||||||
2010 |
2009 |
2009 |
2009 |
2009 |
||||||
Interest income: |
||||||||||
Loans, including fees |
$ 43,649 |
$ 46,876 |
$ 49,658 |
$ 51,691 |
$ 53,000 |
|||||
Securities: |
||||||||||
Taxable |
9,117 |
9,758 |
9,286 |
8,815 |
8,558 |
|||||
Non-taxable |
925 |
929 |
897 |
890 |
900 |
|||||
Deposits in financial institutions |
115 |
90 |
64 |
- |
- |
|||||
Other interest-earning assets |
1 |
19 |
29 |
26 |
6 |
|||||
Total interest income |
53,807 |
57,672 |
59,934 |
61,422 |
62,464 |
|||||
Interest expense: |
||||||||||
Demand and savings deposits |
4,212 |
4,243 |
4,403 |
3,886 |
3,492 |
|||||
Certificates and other time deposits |
3,352 |
4,577 |
5,504 |
6,503 |
7,467 |
|||||
Other borrowed funds |
448 |
314 |
346 |
425 |
812 |
|||||
Subordinated debt |
687 |
713 |
748 |
885 |
979 |
|||||
Junior subordinated debt |
1,028 |
1,045 |
1,082 |
1,155 |
1,204 |
|||||
Total interest expense |
9,727 |
10,892 |
12,083 |
12,854 |
13,954 |
|||||
Net interest income |
44,080 |
46,780 |
47,851 |
48,568 |
48,510 |
|||||
Provision for credit losses |
22,936 |
11,000 |
56,131 |
11,500 |
9,000 |
|||||
Net interest income (loss) after provision for credit losses |
21,144 |
35,780 |
(8,280) |
37,068 |
39,510 |
|||||
Noninterest income: |
||||||||||
Customer service fees |
3,488 |
3,722 |
3,845 |
3,752 |
4,112 |
|||||
Net gain (loss) on securities |
20 |
(1,823) |
4 |
(2) |
15 |
|||||
Wealth management fees |
2,098 |
2,049 |
1,862 |
1,840 |
2,202 |
|||||
Other |
931 |
1,543 |
3,402 |
4,903 |
4,469 |
|||||
Total noninterest income |
6,537 |
5,491 |
9,113 |
10,493 |
10,798 |
|||||
Noninterest expense: |
||||||||||
Salaries and employee benefits |
20,503 |
19,496 |
21,005 |
24,152 |
22,277 |
|||||
Occupancy |
5,790 |
5,822 |
5,967 |
6,168 |
5,869 |
|||||
Technology |
2,417 |
2,375 |
2,495 |
2,475 |
2,505 |
|||||
Professional fees |
2,005 |
1,283 |
1,065 |
1,157 |
1,197 |
|||||
Postage, delivery and supplies |
708 |
685 |
700 |
760 |
721 |
|||||
Marketing |
269 |
443 |
557 |
499 |
431 |
|||||
Core deposits and other intangibles amortization |
549 |
552 |
565 |
565 |
565 |
|||||
Acquisition costs |
- |
980 |
154 |
- |
- |
|||||
FDIC insurance assessments |
2,547 |
1,856 |
1,741 |
4,001 |
1,232 |
|||||
Other |
4,165 |
5,998 |
5,826 |
4,244 |
4,801 |
|||||
Total noninterest expense |
38,953 |
39,490 |
40,075 |
44,021 |
39,598 |
|||||
Income (loss) before income taxes |
(11,272) |
1,781 |
(39,242) |
3,540 |
10,710 |
|||||
Income tax provision (benefit) |
(5,024) |
45 |
(14,518) |
933 |
3,303 |
|||||
Net income (loss) |
$ (6,248) |
$ 1,736 |
$ (24,724) |
$ 2,607 |
$ 7,407 |
|||||
Preferred stock dividends |
- |
- |
- |
7,458 |
1,884 |
|||||
Net income (loss) applicable to common shareholders |
$ (6,248) |
$ 1,736 |
$ (24,724) |
$ (4,851) |
$ 5,523 |
|||||
Earnings (loss) per common share (1): |
||||||||||
Basic |
$ (0.07) |
$ 0.02 |
$ (0.30) |
$ (0.06) |
$ 0.08 |
|||||
Diluted |
$ (0.07) |
$ 0.02 |
$ (0.30) |
$ (0.06) |
$ 0.08 |
|||||
STERLING BANCSHARES, INC. |
||||||||||||
SELECTED FINANCIAL INFORMATION (Unaudited) |
||||||||||||
(dollars in thousands) |
||||||||||||
Page 7 |
||||||||||||
Quarter Ended |
||||||||||||
Mar. 31, |
Dec. 31, |
|||||||||||
2010 |
2009 |
|||||||||||
Average Balance |
Interest |
Yield/Rate |
Average Balance |
Interest |
Yield/Rate |
|||||||
Interest-Earning Assets: |
||||||||||||
Loans held for sale |
$13,572 |
$47 |
1.40% |
$38,844 |
$67 |
0.68% |
||||||
Loans held for investment: |
||||||||||||
Taxable |
3,176,511 |
43,560 |
5.56% |
3,257,590 |
46,762 |
5.70% |
||||||
Non-taxable (3) |
4,834 |
62 |
5.19% |
4,935 |
69 |
5.55% |
||||||
Securities: |
||||||||||||
Taxable |
1,000,917 |
9,117 |
3.69% |
964,807 |
9,758 |
4.01% |
||||||
Non-taxable (3) |
101,443 |
1,362 |
5.44% |
101,866 |
1,360 |
5.30% |
||||||
Deposits in financial institutions |
194,104 |
115 |
0.24% |
163,195 |
90 |
0.22% |
||||||
Other interest-earning assets |
2,418 |
1 |
0.17% |
26,825 |
19 |
0.28% |
||||||
Total interest-earning assets |
4,493,799 |
54,264 |
4.90% |
4,558,062 |
58,125 |
5.06% |
||||||
Noninterest-earning assets |
443,748 |
421,810 |
||||||||||
Total Assets |
$ 4,937,547 |
$4,979,872 |
||||||||||
Interest-Bearing Liabilities: |
||||||||||||
Deposits: |
||||||||||||
Demand and savings |
$ 1,993,546 |
$4,212 |
0.86% |
$1,946,308 |
$4,243 |
0.86% |
||||||
Certificates and other time |
924,473 |
3,352 |
1.47% |
1,007,691 |
4,577 |
1.80% |
||||||
Other borrowed funds |
99,884 |
448 |
1.82% |
107,211 |
314 |
1.16% |
||||||
Subordinated debt |
77,724 |
687 |
3.59% |
77,824 |
713 |
3.63% |
||||||
Junior subordinated debt |
82,734 |
1,028 |
5.04% |
82,734 |
1,045 |
5.01% |
||||||
Total interest-bearing liabilities |
3,178,361 |
9,727 |
1.24% |
3,221,768 |
10,892 |
1.34% |
||||||
Noninterest-bearing sources: |
||||||||||||
Noninterest-bearing liabilities |
1,184,970 |
1,204,371 |
||||||||||
Shareholders' equity |
574,216 |
553,733 |
||||||||||
Total Liabilities and Shareholders' Equity |
$4,937,547 |
$4,979,872 |
||||||||||
Tax Equivalent Net Interest Income and Margin (3) |
44,537 |
4.02% |
47,233 |
4.11% |
||||||||
Non-GAAP to GAAP Reconciliation: |
||||||||||||
Tax Equivalent Adjustment: |
||||||||||||
Loans |
20 |
22 |
||||||||||
Securities |
437 |
431 |
||||||||||
Total tax equivalent adjustment |
457 |
453 |
||||||||||
Net Interest Income |
$44,080 |
$46,780 |
||||||||||
STERLING BANCSHARES, INC. |
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SELECTED FINANCIAL INFORMATION (Unaudited) |
||||||||||||
(dollars in thousands) |
||||||||||||
Page 8 |
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Year-to-date |
||||||||||||
2010 |
2009 |
|||||||||||
Average Balance |
Interest |
Yield/Rate |
Average Balance |
Interest |
Yield/Rate |
|||||||
Interest-Earning Assets: |
||||||||||||
Loans held for sale |
$13,572 |
$47 |
1.40% |
$1,876 |
$26 |
5.66% |
||||||
Loans held for investment: |
||||||||||||
Taxable |
3,176,511 |
43,560 |
5.56% |
3,775,098 |
52,914 |
5.68% |
||||||
Non-taxable (3) |
4,834 |
62 |
5.19% |
5,049 |
88 |
7.04% |
||||||
Securities: |
||||||||||||
Taxable |
1,000,917 |
9,117 |
3.69% |
709,776 |
8,558 |
4.89% |
||||||
Non-taxable (3) |
101,443 |
1,362 |
5.44% |
96,892 |
1,302 |
5.45% |
||||||
Deposits in financial institutions |
194,104 |
115 |
0.24% |
257 |
- |
0.07% |
||||||
Other interest-earning assets |
2,418 |
1 |
0.17% |
9,740 |
6 |
0.27% |
||||||
Total interest-earning assets |
4,493,799 |
54,264 |
4.90% |
4,598,688 |
62,894 |
5.55% |
||||||
Noninterest-earning assets |
443,748 |
473,251 |
||||||||||
Total Assets |
$4,937,547 |
$5,071,939 |
||||||||||
Interest-Bearing Liabilities: |
||||||||||||
Deposits: |
||||||||||||
Demand and savings |
$1,993,546 |
$4,212 |
0.86% |
$1,565,770 |
$3,492 |
0.90% |
||||||
Certificates and other time |
924,473 |
3,352 |
1.47% |
1,154,420 |
7,467 |
2.62% |
||||||
Other borrowed funds |
99,884 |
448 |
1.82% |
365,408 |
812 |
0.90% |
||||||
Subordinated debt |
77,724 |
687 |
3.59% |
77,820 |
979 |
5.10% |
||||||
Junior subordinated debt |
82,734 |
1,028 |
5.04% |
82,734 |
1,204 |
5.90% |
||||||
Total interest-bearing liabilities |
3,178,361 |
9,727 |
1.24% |
3,246,152 |
13,954 |
1.74% |
||||||
Noninterest-bearing sources: |
||||||||||||
Noninterest-bearing liabilities |
1,184,970 |
1,175,928 |
||||||||||
Shareholders' equity |
574,216 |
649,859 |
||||||||||
Total Liabilities and Shareholders' Equity |
$4,937,547 |
$5,071,939 |
||||||||||
Tax Equivalent Net Interest Income and Margin (3) |
44,537 |
4.02% |
48,940 |
4.32% |
||||||||
Non-GAAP to GAAP Reconciliation: |
||||||||||||
Tax Equivalent Adjustment: |
||||||||||||
Loans |
20 |
28 |
||||||||||
Securities |
437 |
402 |
||||||||||
Total tax equivalent adjustment |
457 |
430 |
||||||||||
Net Interest Income |
$44,080 |
$48,510 |
||||||||||
STERLING BANCSHARES, INC. |
||||||||||
SELECTED FINANCIAL INFORMATION (Unaudited) |
||||||||||
(dollars in thousands) |
||||||||||
Page 9 |
||||||||||
Quarter Ended |
||||||||||
Mar. 31, |
Dec. 31, |
Sep. 30, |
Jun. 30, |
Mar. 31, |
||||||
2010 |
2009 |
2009 |
2009 |
2009 |
||||||
Condensed Average Balance Sheet |
||||||||||
Loans held for sale |
$13,572 |
$38,844 |
$1,607 |
$2,714 |
$1,876 |
|||||
Loans held for investment |
3,181,345 |
3,262,525 |
3,472,635 |
3,639,453 |
3,780,147 |
|||||
Total loans |
3,194,917 |
3,301,369 |
3,474,242 |
3,642,167 |
3,782,023 |
|||||
Available-for-sale securities, at fair value |
860,466 |
897,733 |
779,792 |
689,541 |
635,423 |
|||||
Held-to-maturity securities, at amortized cost |
241,894 |
168,940 |
162,717 |
168,155 |
171,245 |
|||||
Deposits in financial institutions |
194,104 |
163,195 |
106,392 |
281 |
257 |
|||||
Other interest-earning assets |
2,418 |
26,825 |
38,419 |
39,534 |
9,740 |
|||||
Total interest-earning assets |
4,493,799 |
4,558,062 |
4,561,562 |
4,539,678 |
4,598,688 |
|||||
Goodwill |
173,210 |
173,210 |
173,210 |
173,210 |
173,210 |
|||||
Core deposits and other intangibles, net |
11,340 |
11,890 |
12,463 |
13,028 |
13,587 |
|||||
All other noninterest-earning assets |
259,198 |
236,710 |
230,667 |
265,404 |
286,454 |
|||||
Total assets |
$4,937,547 |
$4,979,872 |
$4,977,902 |
$4,991,320 |
$5,071,939 |
|||||
Noninterest-bearing demand deposits |
$1,144,754 |
$1,158,023 |
$1,124,076 |
$1,117,335 |
$1,130,230 |
|||||
Interest-bearing deposits: |
||||||||||
Interest-bearing demand deposits |
1,993,546 |
1,946,308 |
1,837,612 |
1,674,468 |
1,565,770 |
|||||
Jumbo certificates of deposit |
549,723 |
576,984 |
614,418 |
658,983 |
651,798 |
|||||
Regular certificates of deposit |
241,649 |
264,388 |
287,243 |
308,842 |
306,686 |
|||||
Brokered certificates of deposit |
133,101 |
166,319 |
182,852 |
207,609 |
195,936 |
|||||
Total deposits |
4,062,773 |
4,112,022 |
4,046,201 |
3,967,237 |
3,850,420 |
|||||
Other borrowed funds |
99,884 |
107,211 |
145,625 |
216,342 |
365,408 |
|||||
Subordinated debt |
77,724 |
77,824 |
77,232 |
77,701 |
77,820 |
|||||
Junior subordinated debt |
82,734 |
82,734 |
82,734 |
82,734 |
82,734 |
|||||
Accrued interest payable and other liabilities |
40,216 |
46,348 |
48,480 |
41,548 |
45,698 |
|||||
Total liabilities |
4,363,331 |
4,426,139 |
4,400,272 |
4,385,562 |
4,422,080 |
|||||
Common equity |
574,216 |
553,733 |
577,630 |
561,540 |
531,736 |
|||||
Preferred equity |
- |
- |
- |
44,218 |
118,123 |
|||||
Total shareholders' equity |
574,216 |
553,733 |
577,630 |
605,758 |
649,859 |
|||||
Total liabilities and shareholders' equity |
$4,937,547 |
$4,979,872 |
$4,977,902 |
$4,991,320 |
$5,071,939 |
|||||
Mar. 31, |
Dec. 31, |
Sep. 30, |
Jun. 30, |
Mar. 31, |
||||||
2010 |
2009 |
2009 |
2009 |
2009 |
||||||
Period-end Loans: |
||||||||||
Loans held for sale |
$18,055 |
$11,778 |
$38,187 |
$1,642 |
$1,395 |
|||||
Loans held for investment: |
||||||||||
Commercial and industrial |
697,998 |
806,542 |
823,797 |
930,445 |
1,060,572 |
|||||
Real Estate: |
||||||||||
Commercial |
1,672,562 |
1,669,118 |
1,703,629 |
1,768,824 |
1,788,488 |
|||||
Construction and development |
330,855 |
360,444 |
394,819 |
458,386 |
499,262 |
|||||
Residential mortgage |
346,400 |
344,838 |
335,007 |
323,520 |
320,021 |
|||||
Consumer/other |
48,446 |
52,331 |
55,268 |
56,046 |
59,025 |
|||||
Loans held for investment |
3,096,261 |
3,233,273 |
3,312,520 |
3,537,221 |
3,727,368 |
|||||
Total period-end loans |
$3,114,316 |
$3,245,051 |
$3,350,707 |
$3,538,863 |
$3,728,763 |
|||||
Period-End Deposits: |
||||||||||
Noninterest-bearing demand |
$1,167,602 |
$1,144,133 |
$1,094,346 |
$1,127,717 |
$1,173,745 |
|||||
Interest-bearing demand |
2,031,399 |
2,004,539 |
1,874,746 |
1,670,437 |
1,586,754 |
|||||
Certificates and other time deposits: |
||||||||||
Jumbo |
560,093 |
549,588 |
594,590 |
644,965 |
666,722 |
|||||
Regular |
234,010 |
252,682 |
273,721 |
306,988 |
301,047 |
|||||
Brokered |
131,324 |
144,009 |
170,051 |
208,128 |
206,189 |
|||||
Total period-end deposits |
$4,124,428 |
$4,094,951 |
$4,007,454 |
$3,958,235 |
$3,934,457 |
|||||
STERLING BANCSHARES, INC. |
||||||||||
SELECTED FINANCIAL INFORMATION (Unaudited) |
||||||||||
(dollars in thousands) |
||||||||||
Page 10 |
||||||||||
Quarter Ended |
||||||||||
Mar. 31, |
Dec. 31, |
Sep. 30, |
Jun. 30, |
Mar. 31, |
||||||
2010 |
2009 |
2009 |
2009 |
2009 |
||||||
Allowance For Credit Losses |
||||||||||
Allowance for loan losses at beginning of period |
$74,732 |
$70,059 |
$53,075 |
$56,703 |
$49,177 |
|||||
Charge-offs: |
||||||||||
Commercial, financial and industrial |
1,968 |
1,536 |
5,049 |
13,523 |
1,960 |
|||||
Real estate, mortgage and construction |
20,214 |
5,448 |
32,464 |
1,903 |
438 |
|||||
Consumer |
262 |
477 |
321 |
331 |
460 |
|||||
Total charge-offs |
22,444 |
7,461 |
37,834 |
15,757 |
2,858 |
|||||
Recoveries: |
||||||||||
Commercial, financial and industrial |
483 |
536 |
251 |
286 |
640 |
|||||
Real estate, mortgage and construction |
821 |
488 |
23 |
180 |
98 |
|||||
Consumer |
118 |
110 |
163 |
163 |
94 |
|||||
Total Recoveries |
1,422 |
1,134 |
437 |
629 |
832 |
|||||
Net charge-offs |
21,022 |
6,327 |
37,397 |
15,128 |
2,026 |
|||||
Provision for loan losses |
22,936 |
11,000 |
54,381 |
11,500 |
9,552 |
|||||
Allowance for loan losses at end of period |
$76,646 |
$74,732 |
$70,059 |
$53,075 |
$56,703 |
|||||
Allowance for unfunded loan commitments at beginning of period |
2,852 |
2,852 |
1,102 |
1,102 |
1,654 |
|||||
Provision for losses on unfunded loan commitments |
- |
- |
1,750 |
- |
(552) |
|||||
Allowance for unfunded loan commitments at end of period |
2,852 |
2,852 |
2,852 |
1,102 |
1,102 |
|||||
Total allowance for credit losses |
$79,498 |
$77,584 |
$72,911 |
$54,177 |
$57,805 |
|||||
Nonperforming Assets |
||||||||||
Nonperforming loans: |
||||||||||
Loans held for sale |
$10,883 |
$9,896 |
$29,472 |
$ - |
$ - |
|||||
Loans held for investment |
125,025 |
92,668 |
65,515 |
114,069 |
102,450 |
|||||
Real estate acquired by foreclosure |
17,282 |
16,763 |
11,674 |
8,095 |
8,144 |
|||||
Other repossessed assets |
60 |
38 |
33 |
419 |
144 |
|||||
Total nonperforming assets |
$153,250 |
$119,365 |
$106,694 |
$122,583 |
$110,738 |
|||||
Restructured loans - accruing |
$10,675 |
$69,857 |
$45,981 |
$2,828 |
$ - |
|||||
Potential problem loans |
$172,020 |
$187,513 |
$131,950 |
$133,678 |
$107,353 |
|||||
Accruing loans 30 to 89 days past due |
$46,410 |
$34,243 |
$23,364 |
$30,131 |
$26,640 |
|||||
Accruing loans past due 90 days or more |
$306 |
$41 |
$681 |
$2,112 |
$7,464 |
|||||
Ratios |
||||||||||
Period-end allowance for credit losses to period-end loans |
2.55% |
2.39% |
2.18% |
1.53% |
1.55% |
|||||
Period-end allowance for loan losses to period-end loans |
2.46% |
2.30% |
2.09% |
1.50% |
1.52% |
|||||
Period-end allowance for loan losses to nonperforming loans |
56.40% |
72.86% |
73.76% |
46.53% |
55.35% |
|||||
Nonperforming loans to period-end loans |
4.36% |
3.16% |
2.83% |
3.22% |
2.75% |
|||||
Nonperforming assets to period-end assets |
3.04% |
2.42% |
2.20% |
2.50% |
2.18% |
|||||
Net charge-offs to average loans (2) |
2.67% |
0.76% |
4.27% |
1.67% |
0.22% |
|||||
STERLING BANCSHARES, INC. |
|
FOOTNOTES TO EARNINGS RELEASE |
|
Page 11 |
|
(1) Earnings per share in each quarter is computed individually using the weighted-average number of shares outstanding during that quarter while earnings per share for the full period is computed using the weighted-average number of shares outstanding during the year. Thus, the sum for all quarters does not necessarily equal the full period earnings per share. |
|
(2) Interim periods annualized. |
|
(3) Taxable-equivalent basis assuming a 35% tax rate. The Company presents net interest income on a tax-equivalent basis. Accordingly, net interest income from tax-exempt securities and loans is presented in the net interest income results on a basis comparable to taxable securities and loans. This non-GAAP financial measure allows management to assess the comparability of net interest income arising from both taxable and tax-exempt sources. |
|
(4) The efficiency ratio is calculated by dividing noninterest expense less acquisition costs and a one-time severance charge by tax equivalent basis net interest income plus noninterest income less net gain (loss) on investment securities. |
|
SOURCE Sterling Bancshares, Inc.
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