Sterling Bancshares Reports Second Quarter 2010 Results
HOUSTON, July 22 /PRNewswire-FirstCall/ -- Sterling Bancshares, Inc. (Nasdaq: SBIB) today reported net income of $596 thousand, or $0.01 per diluted common share, for the second quarter ended June 30, 2010, compared to net income of $2.6 million for the second quarter of 2009.
Key items and metrics for the quarter include the following:
- Noninterest-bearing deposits increased $99 million or 8.5% linked-quarter and $139 million or 12.3% compared to June 30, 2009;
- Average loan to deposit ratio was 73.4% for the second quarter of 2010, down from 91.8% for the same quarter in 2009;
- Total period-end loans decreased $115 million or 3.7% linked-quarter and $540 million or 15.3% compared to June 30, 2009, due to reductions in the energy, commercial real estate, and construction and development loan portfolios; and
- Period-end allowance for credit losses to period-end loans increased to 2.75% at June 30, 2010, from 2.39% at December 31, 2009, and from 1.53% at June 30, 2009.
"We continue to see incremental improvement in key economic indicators that lead us to believe the worst of the recession is behind us," commented J. Downey Bridgwater, Sterling's Chairman, President, and Chief Executive Officer. "As anticipated, during the quarter we experienced a migration of certain commercial real estate loans to nonperforming status. Apart from the increase in nonperforming loans, we began to see improvements in our credit quality with past due loans decreasing $27 million, a reduction of $30 million in potential problem loans as well as a decrease in net charge-offs linked-quarter."
Average total loans decreased $142 million or 4.5% on a linked-quarter basis to $3.1 billion at June 30, 2010, and decreased $590 million or 16.2% since June 30, 2009. The decline in loans during the second quarter of 2010, was primarily due to principal reductions in energy loans.
On average, total deposits were $4.2 billion for the second quarter of 2010, an increase of $96.7 million or 9.5% linked-quarter annualized and $192 million or 4.8% compared to the second quarter of 2009. Deposit growth was due to an increase in noninterest-bearing deposits of $52.6 million or 18.4% linked-quarter annualized and $80.1 million or 7.2% compared to the second quarter of 2009. Due to continued growth in core deposits, the Company was able to reduce higher costing brokered certificate of deposits by $14.5 million linked-quarter and $89.0 million compared to the second quarter of 2009.
At June 30, 2010, nonperforming assets were $184 million or 3.63% of total assets, compared to $153 million or 3.04% at March 31, 2010. The increase in nonperforming loans was primarily due to certain nonowner-occupied commercial real estate loans which migrated to nonperforming status during the second quarter of 2010. Potential problem loans were $142 million at June 30, 2010, a decrease of $29.9 million or 17.4% linked-quarter. Past due loans were $19.3 million at June 30, 2010, a decrease of $27.1 million compared to the prior quarter.
At June 30, 2010, the total allowance for credit losses was $82.5 million or 2.75% 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 $54.2 million or 1.53% of period-end total loans at June 30, 2009.
Net charge-offs for the second quarter of 2010 were $6.3 million or 0.83% of average total loans, compared to $21.0 million or 2.67% of average total loans for the first quarter of 2010.
Tax-equivalent net interest income for the second quarter of 2010, was $43.3 million, down $1.2 million on a linked-quarter basis. Tax-equivalent net interest margin was 3.74% for the second quarter of 2010, down 28 basis points from 4.02% for the first quarter of 2010. Net interest income and margin during the second quarter of 2010, were negatively impacted by an increase in lower yielding interest-earning cash and an increase in nonperforming assets.
Noninterest income for the second quarter of 2010, increased $2.0 million on a linked-quarter basis. This increase in noninterest income was due to a decrease in losses on loans classified as held for sale. During the second quarter of 2010, the Company recorded losses on loans classified as held for sale of $418 thousand compared to $2.6 million in losses during the first quarter of 2010.
Total noninterest expense for the second quarter of 2010, increased $1.9 million on a linked-quarter basis. The increase in noninterest expense on a linked-quarter basis was due to write-downs on certain properties classified as other real estate owned.
As of June 30, 2010, Sterling had total assets of $5.1 billion, total loans of $3.0 billion and total deposits of $4.2 billion. Shareholders' equity of $624 million at June 30, 2010 was 12.3% of total assets. Book value per common share at period-end was $6.13.
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, July 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) 288-0329. An audio archive of the call will also be available on the web site beginning Friday, July 23, 2010.
A telephone replay of the conference call will be available beginning Thursday, July 22, 2010 at 12:00 p.m. until Thursday, July 29, 2010 at 11:59 p.m. Central Time by dialing (800) 475-6701. The access code for the replay is 163126.
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 $5.1 billion, which operates 57 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: |
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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 |
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–Tables to follow–
STERLING BANCSHARES, INC. |
||||||||||
SELECTED FINANCIAL INFORMATION (Unaudited) |
||||||||||
(dollars in thousands, except for per share data) |
||||||||||
Quarter Ended |
Year-to-Date |
|||||||||
Jun. 30, |
Mar. 31, |
Jun. 30, |
||||||||
2010 |
2010 |
2009 |
2010 |
2009 |
||||||
Profitability |
||||||||||
Net income (loss) |
$ 596 |
$ (6,248) |
$ 2,607 |
$ (5,652) |
$ 10,014 |
|||||
Net income (loss) available to common shareholders |
$ 596 |
$ (6,248) |
$ (4,851) |
$ (5,652) |
$ 672 |
|||||
Earnings (loss) per common share (1) |
||||||||||
Basic |
$ 0.01 |
$ (0.07) |
$ (0.06) |
$ (0.06) |
$ 0.01 |
|||||
Diluted |
$ 0.01 |
$ (0.07) |
$ (0.06) |
$ (0.06) |
$ 0.01 |
|||||
Return on average common equity (2) |
0.38% |
(4.41)% |
(3.46)% |
(1.90)% |
0.25% |
|||||
Return on average assets (2) |
0.05% |
(0.51)% |
0.21% |
(0.23)% |
0.40% |
|||||
Tax equivalent net interest margin (3) |
3.74% |
4.02% |
4.33% |
3.88% |
4.32% |
|||||
Efficiency Ratio (4): |
||||||||||
Consolidated |
78.77% |
76.30% |
70.54% |
77.54% |
68.33% |
|||||
Sterling Bank |
76.40% |
73.60% |
68.37% |
75.01% |
66.27% |
|||||
Liquidity and Capital Ratios |
||||||||||
Average loans to average deposits |
73.39% |
78.64% |
91.81% |
75.97% |
94.95% |
|||||
Period-end stockholders' equity to total assets |
12.30% |
12.28% |
11.61% |
12.30% |
11.61% |
|||||
Average stockholders' equity to average assets |
12.28% |
11.63% |
12.14% |
11.96% |
12.48% |
|||||
Period-end tangible capital to total tangible assets |
9.01% |
8.96% |
8.13% |
9.01% |
8.13% |
|||||
Tier 1 capital to risk-weighted assets |
14.45% |
14.08% |
11.27% |
14.45% |
11.27% |
|||||
Total capital to risk-weighted assets |
17.04% |
16.92% |
13.92% |
17.04% |
13.92% |
|||||
Tier 1 leverage ratio (Tier 1 capital to average assets) |
10.32% |
10.64% |
9.42% |
10.32% |
9.42% |
|||||
Other Data |
||||||||||
Shares used in computing earnings (loss) per common share |
||||||||||
Basic shares |
101,898 |
88,483 |
77,894 |
95,227 |
75,602 |
|||||
Diluted shares |
102,144 |
88,483 |
77,894 |
95,227 |
75,862 |
|||||
End of period common shares outstanding |
101,927 |
101,877 |
81,685 |
101,927 |
81,685 |
|||||
Book value per common share at period-end |
$ 6.13 |
$ 6.08 |
$ 6.98 |
$ 6.13 |
$ 6.98 |
|||||
Cash dividends paid per common share |
$ 0.015 |
$ 0.015 |
$ 0.055 |
$ 0.030 |
$ 0.110 |
|||||
Common stock dividend payout ratio |
256.65% |
(19.66)% |
154.89% |
(48.80)% |
80.61% |
|||||
Full-time equivalent employees |
991 |
1,004 |
1,038 |
991 |
1,038 |
|||||
Number of banking centers |
57 |
58 |
61 |
57 |
61 |
|||||
STERLING BANCSHARES, INC. |
||||||||||
CONSOLIDATED BALANCE SHEETS (Unaudited) |
||||||||||
(dollars in thousands) |
||||||||||
Jun. 30, |
Mar. 31, |
Dec. 31, |
Sep. 30, |
Jun. 30, |
||||||
2010 |
2010 |
2009 |
2009 |
2009 |
||||||
ASSETS |
||||||||||
Cash and cash equivalents |
$ 359,388 |
$ 361,199 |
$ 246,215 |
$ 158,114 |
$ 74,736 |
|||||
Available-for-sale securities, at fair value |
1,069,964 |
920,082 |
846,216 |
836,521 |
766,536 |
|||||
Held-to-maturity securities, at amortized cost |
280,658 |
267,503 |
222,845 |
162,990 |
163,611 |
|||||
Loans held for sale |
6,509 |
18,055 |
11,778 |
38,187 |
1,642 |
|||||
Loans held for investment |
2,992,370 |
3,096,261 |
3,233,273 |
3,312,520 |
3,537,221 |
|||||
Total loans |
2,998,879 |
3,114,316 |
3,245,051 |
3,350,707 |
3,538,863 |
|||||
Allowance for loan losses |
(80,983) |
(76,646) |
(74,732) |
(70,059) |
(53,075) |
|||||
Loans, net |
2,917,896 |
3,037,670 |
3,170,319 |
3,280,648 |
3,485,788 |
|||||
Premises and equipment, net |
47,812 |
47,396 |
48,816 |
49,128 |
50,272 |
|||||
Real estate acquired by foreclosure |
18,151 |
17,282 |
16,763 |
11,674 |
8,095 |
|||||
Goodwill |
173,210 |
173,210 |
173,210 |
173,210 |
173,210 |
|||||
Core deposits and other intangibles, net |
10,540 |
11,077 |
11,626 |
12,179 |
12,744 |
|||||
Accrued interest receivable |
14,951 |
15,462 |
16,502 |
16,142 |
18,189 |
|||||
Other assets |
183,429 |
192,498 |
184,536 |
158,912 |
159,186 |
|||||
TOTAL ASSETS |
$ 5,075,999 |
$ 5,043,379 |
$ 4,937,048 |
$ 4,859,518 |
$ 4,912,367 |
|||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||||
LIABILITIES: |
||||||||||
Deposits: |
||||||||||
Noninterest-bearing demand |
$ 1,266,781 |
$ 1,167,602 |
$ 1,144,133 |
$ 1,094,346 |
$ 1,127,717 |
|||||
Interest-bearing demand |
1,962,854 |
2,031,399 |
2,004,539 |
1,874,746 |
1,670,437 |
|||||
Certificates and other time |
921,495 |
925,427 |
946,279 |
1,038,362 |
1,160,081 |
|||||
Total deposits |
4,151,130 |
4,124,428 |
4,094,951 |
4,007,454 |
3,958,235 |
|||||
Other borrowed funds |
100,770 |
99,012 |
97,245 |
99,486 |
176,631 |
|||||
Subordinated debt |
78,247 |
77,737 |
77,338 |
77,616 |
77,028 |
|||||
Junior subordinated debt |
82,734 |
82,734 |
82,734 |
82,734 |
82,734 |
|||||
Accrued interest payable and other liabilities |
38,722 |
39,944 |
44,247 |
46,716 |
47,631 |
|||||
Total liabilities |
4,451,603 |
4,423,855 |
4,396,515 |
4,314,006 |
4,342,259 |
|||||
COMMITMENTS AND CONTINGENCIES |
- |
- |
- |
- |
- |
|||||
SHAREHOLDERS' EQUITY |
||||||||||
Common stock |
103,795 |
103,745 |
83,721 |
83,622 |
83,552 |
|||||
Capital surplus |
238,186 |
237,439 |
170,848 |
171,955 |
170,708 |
|||||
Retained earnings |
287,503 |
288,436 |
295,909 |
295,401 |
324,619 |
|||||
Treasury stock |
(21,399) |
(21,399) |
(21,399) |
(21,399) |
(21,399) |
|||||
Accumulated other comprehensive income, net of tax |
16,311 |
11,303 |
11,454 |
15,933 |
12,628 |
|||||
Total shareholders' equity |
624,396 |
619,524 |
540,533 |
545,512 |
570,108 |
|||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ 5,075,999 |
$ 5,043,379 |
$ 4,937,048 |
$ 4,859,518 |
$ 4,912,367 |
|||||
STERLING BANCSHARES, INC. |
||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) |
||||||||||||||
(dollars in thousands, except for per share data) |
||||||||||||||
Quarter Ended |
Year-to-Date |
|||||||||||||
Jun. 30, |
Mar. 31, |
Dec. 31, |
Sep. 30, |
Jun. 30, |
||||||||||
2010 |
2010 |
2009 |
2009 |
2009 |
2010 |
2009 |
||||||||
Interest income: |
||||||||||||||
Loans, including fees |
$ 42,087 |
$ 43,649 |
$ 46,876 |
$ 49,658 |
$ 51,691 |
$ 85,736 |
$ 104,691 |
|||||||
Securities: |
||||||||||||||
Taxable |
9,602 |
9,117 |
9,758 |
9,286 |
8,815 |
18,719 |
17,373 |
|||||||
Non-taxable |
915 |
925 |
929 |
897 |
890 |
1,840 |
1,790 |
|||||||
Deposits in financial institutions |
231 |
115 |
90 |
64 |
- |
346 |
- |
|||||||
Other interest-earning assets |
3 |
1 |
19 |
29 |
26 |
4 |
32 |
|||||||
Total interest income |
52,838 |
53,807 |
57,672 |
59,934 |
61,422 |
106,645 |
123,886 |
|||||||
Interest expense: |
||||||||||||||
Demand and savings deposits |
4,319 |
4,212 |
4,243 |
4,403 |
3,886 |
8,531 |
7,378 |
|||||||
Certificates and other time deposits |
3,159 |
3,352 |
4,577 |
5,504 |
6,503 |
6,511 |
13,970 |
|||||||
Other borrowed funds |
768 |
448 |
314 |
346 |
425 |
1,216 |
1,237 |
|||||||
Subordinated debt |
705 |
687 |
713 |
748 |
885 |
1,392 |
1,864 |
|||||||
Junior subordinated debt |
1,040 |
1,028 |
1,045 |
1,082 |
1,155 |
2,068 |
2,359 |
|||||||
Total interest expense |
9,991 |
9,727 |
10,892 |
12,083 |
12,854 |
19,718 |
26,808 |
|||||||
Net interest income |
42,847 |
44,080 |
46,780 |
47,851 |
48,568 |
86,927 |
97,078 |
|||||||
Provision for credit losses |
9,336 |
22,936 |
11,000 |
56,131 |
11,500 |
32,272 |
20,500 |
|||||||
Net interest income (loss) after provision for credit losses |
33,511 |
21,144 |
35,780 |
(8,280) |
37,068 |
54,655 |
76,578 |
|||||||
Noninterest income: |
||||||||||||||
Customer service fees |
3,591 |
3,488 |
3,722 |
3,845 |
3,752 |
7,079 |
7,864 |
|||||||
Net gain (loss) on securities |
17 |
20 |
(1,823) |
4 |
(2) |
37 |
13 |
|||||||
Wealth management fees |
2,102 |
2,098 |
2,049 |
1,862 |
1,840 |
4,200 |
4,042 |
|||||||
Other |
2,815 |
931 |
1,543 |
3,402 |
4,903 |
3,746 |
9,372 |
|||||||
Total noninterest income |
8,525 |
6,537 |
5,491 |
9,113 |
10,493 |
15,062 |
21,291 |
|||||||
Noninterest expense: |
||||||||||||||
Salaries and employee benefits |
20,453 |
20,503 |
19,496 |
21,005 |
24,152 |
40,956 |
46,429 |
|||||||
Occupancy |
5,709 |
5,790 |
5,822 |
5,967 |
6,168 |
11,499 |
12,037 |
|||||||
Technology |
2,332 |
2,417 |
2,375 |
2,495 |
2,475 |
4,749 |
4,980 |
|||||||
Professional fees |
1,372 |
2,005 |
1,283 |
1,065 |
1,157 |
3,377 |
2,354 |
|||||||
Postage, delivery and supplies |
719 |
708 |
685 |
700 |
760 |
1,427 |
1,481 |
|||||||
Marketing |
271 |
269 |
443 |
557 |
499 |
540 |
930 |
|||||||
Core deposits and other intangibles amortization |
537 |
549 |
552 |
565 |
565 |
1,086 |
1,130 |
|||||||
Acquisition costs |
- |
- |
980 |
154 |
- |
- |
- |
|||||||
FDIC insurance assessments |
2,438 |
2,547 |
1,856 |
1,741 |
4,001 |
4,985 |
5,233 |
|||||||
Other |
6,975 |
4,165 |
5,998 |
5,826 |
4,244 |
11,140 |
9,045 |
|||||||
Total noninterest expense |
40,806 |
38,953 |
39,490 |
40,075 |
44,021 |
79,759 |
83,619 |
|||||||
Income (loss) before income taxes |
1,230 |
(11,272) |
1,781 |
(39,242) |
3,540 |
(10,042) |
14,250 |
|||||||
Income tax provision (benefit) |
634 |
(5,024) |
45 |
(14,518) |
933 |
(4,390) |
4,236 |
|||||||
Net income (loss) |
$ 596 |
$ (6,248) |
$ 1,736 |
$ (24,724) |
$ 2,607 |
$ (5,652) |
$ 10,014 |
|||||||
Preferred stock dividends |
- |
- |
- |
- |
7,458 |
- |
9,342 |
|||||||
Net income (loss) applicable to common shareholders |
$ 596 |
$ (6,248) |
$ 1,736 |
$ (24,724) |
$ (4,851) |
$ (5,652) |
$ 672 |
|||||||
Earnings (loss) per common share (1): |
||||||||||||||
Basic |
$ 0.01 |
$ (0.07) |
$ 0.02 |
$ (0.30) |
$ (0.06) |
$ (0.06) |
$ 0.01 |
|||||||
Diluted |
$ 0.01 |
$ (0.07) |
$ 0.02 |
$ (0.30) |
$ (0.06) |
$ (0.06) |
$ 0.01 |
|||||||
STERLING BANCSHARES, INC. |
||||||||||||
SELECTED FINANCIAL INFORMATION (Unaudited) |
||||||||||||
(dollars in thousands) |
||||||||||||
Quarter Ended |
||||||||||||
Jun. 30, |
Mar. 31, |
|||||||||||
2010 |
2010 |
|||||||||||
Average Balance |
Interest |
Yield/Rate |
Average Balance |
Interest |
Yield/Rate |
|||||||
Interest-Earning Assets: |
||||||||||||
Loans held for sale |
$ 11,454 |
$ 54 |
1.90% |
$ 13,572 |
$ 47 |
1.40% |
||||||
Loans held for investment: |
||||||||||||
Taxable |
3,036,770 |
41,994 |
5.55% |
3,176,511 |
43,560 |
5.56% |
||||||
Non-taxable (3) |
4,260 |
57 |
5.34% |
4,834 |
62 |
5.19% |
||||||
Securities: |
||||||||||||
Taxable |
1,125,517 |
9,602 |
3.42% |
1,000,917 |
9,117 |
3.69% |
||||||
Non-taxable (3) |
100,192 |
1,347 |
5.39% |
101,443 |
1,362 |
5.44% |
||||||
Deposits in financial institutions |
362,429 |
231 |
0.26% |
194,104 |
115 |
0.24% |
||||||
Other interest-earning assets |
840 |
3 |
1.27% |
2,418 |
1 |
0.17% |
||||||
Total interest-earning assets |
4,641,462 |
53,288 |
4.60% |
4,493,799 |
54,264 |
4.90% |
||||||
Noninterest-earning assets |
444,933 |
443,748 |
||||||||||
Total Assets |
$ 5,086,395 |
$ 4,937,547 |
||||||||||
Interest-Bearing Liabilities: |
||||||||||||
Deposits: |
||||||||||||
Demand and savings |
$ 2,027,133 |
$ 4,319 |
0.85% |
$ 1,993,546 |
$ 4,212 |
0.86% |
||||||
Certificates and other time |
934,941 |
3,159 |
1.36% |
924,473 |
3,352 |
1.47% |
||||||
Other borrowed funds |
100,976 |
768 |
3.05% |
99,884 |
448 |
1.82% |
||||||
Subordinated debt |
77,831 |
705 |
3.63% |
77,724 |
687 |
3.59% |
||||||
Junior subordinated debt |
82,734 |
1,040 |
5.04% |
82,734 |
1,028 |
5.04% |
||||||
Total interest-bearing liabilities |
3,223,615 |
9,991 |
1.24% |
3,178,361 |
9,727 |
1.24% |
||||||
Noninterest-bearing sources: |
||||||||||||
Noninterest-bearing liabilities |
1,238,352 |
1,184,970 |
||||||||||
Shareholders' equity |
624,428 |
574,216 |
||||||||||
Total Liabilities and Shareholders' Equity |
$ 5,086,395 |
$ 4,937,547 |
||||||||||
Tax Equivalent Net Interest Income and Margin (3) |
43,297 |
3.74% |
44,537 |
4.02% |
||||||||
Non-GAAP to GAAP Reconciliation: |
||||||||||||
Tax Equivalent Adjustment: |
||||||||||||
Loans |
18 |
20 |
||||||||||
Securities |
432 |
437 |
||||||||||
Total tax equivalent adjustment |
450 |
457 |
||||||||||
Net Interest Income |
$ 42,847 |
$ 44,080 |
||||||||||
STERLING BANCSHARES, INC. |
||||||||||||
SELECTED FINANCIAL INFORMATION (Unaudited) |
||||||||||||
(dollars in thousands) |
||||||||||||
Year-to-Date |
||||||||||||
2010 |
2009 |
|||||||||||
Average Balance |
Interest |
Yield/Rate |
Average Balance |
Interest |
Yield/Rate |
|||||||
Interest-Earning Assets: |
||||||||||||
Loans held for sale |
$ 12,507 |
$ 101 |
1.63% |
$ 2,297 |
$ 66 |
5.77% |
||||||
Loans held for investment: |
||||||||||||
Taxable |
3,106,255 |
85,555 |
5.55% |
3,704,239 |
104,512 |
5.69% |
||||||
Non-taxable (3) |
4,546 |
118 |
5.26% |
5,172 |
165 |
6.44% |
||||||
Securities: |
||||||||||||
Taxable |
1,063,562 |
18,719 |
3.55% |
735,655 |
17,373 |
4.76% |
||||||
Non-taxable (3) |
100,814 |
2,709 |
5.42% |
96,668 |
2,595 |
5.41% |
||||||
Deposits in financial institutions |
278,731 |
346 |
0.25% |
269 |
- |
0.05% |
||||||
Other interest-earning assets |
1,623 |
4 |
0.42% |
24,720 |
32 |
0.28% |
||||||
Total interest-earning assets |
4,568,038 |
107,552 |
4.75% |
4,569,020 |
124,743 |
5.51% |
||||||
Noninterest-earning assets |
444,343 |
462,387 |
||||||||||
Total Assets |
$ 5,012,381 |
$ 5,031,407 |
||||||||||
Interest-Bearing Liabilities: |
||||||||||||
Deposits: |
||||||||||||
Demand and savings |
$ 2,010,433 |
$ 8,531 |
0.86% |
$ 1,620,419 |
$ 7,378 |
0.92% |
||||||
Certificates and other time |
929,735 |
6,511 |
1.41% |
1,164,985 |
13,970 |
2.42% |
||||||
Other borrowed funds |
100,433 |
1,216 |
2.44% |
290,463 |
1,237 |
0.86% |
||||||
Subordinated debt |
77,778 |
1,392 |
3.61% |
77,760 |
1,864 |
4.83% |
||||||
Junior subordinated debt |
82,734 |
2,068 |
5.04% |
82,734 |
2,359 |
5.75% |
||||||
Total interest-bearing liabilities |
3,201,113 |
19,718 |
1.24% |
3,236,361 |
26,808 |
1.67% |
||||||
Noninterest-bearing sources: |
||||||||||||
Noninterest-bearing liabilities |
1,211,808 |
1,167,360 |
||||||||||
Shareholders' equity |
599,460 |
627,686 |
||||||||||
Total Liabilities and Shareholders' Equity |
$ 5,012,381 |
$ 5,031,407 |
||||||||||
Tax Equivalent Net Interest Income and Margin (3) |
87,834 |
3.88% |
97,935 |
4.32% |
||||||||
Non-GAAP to GAAP Reconciliation: |
||||||||||||
Tax Equivalent Adjustment: |
||||||||||||
Loans |
38 |
52 |
||||||||||
Securities |
869 |
805 |
||||||||||
Total tax equivalent adjustment |
907 |
857 |
||||||||||
Net Interest Income |
$ 86,927 |
$ 97,078 |
||||||||||
STERLING BANCSHARES, INC. |
||||||||||
SELECTED FINANCIAL INFORMATION (Unaudited) |
||||||||||
(dollars in thousands) |
||||||||||
Quarter Ended |
||||||||||
Jun. 30, |
Mar. 31, |
Dec. 31, |
Sep. 30, |
Jun. 30, |
||||||
2010 |
2010 |
2009 |
2009 |
2009 |
||||||
Condensed Average Balance Sheet |
||||||||||
Loans held for sale |
$ 11,454 |
$ 13,572 |
$ 38,844 |
$ 1,607 |
$ 2,714 |
|||||
Loans held for investment |
3,041,030 |
3,181,345 |
3,262,525 |
3,472,635 |
3,639,453 |
|||||
Total loans |
3,052,484 |
3,194,917 |
3,301,369 |
3,474,242 |
3,642,167 |
|||||
Available-for-sale securities, at fair value |
953,742 |
860,466 |
897,733 |
779,792 |
689,541 |
|||||
Held-to-maturity securities, at amortized cost |
271,967 |
241,894 |
168,940 |
162,717 |
168,155 |
|||||
Deposits in financial institutions |
362,429 |
194,104 |
163,195 |
106,392 |
281 |
|||||
Other interest-earning assets |
840 |
2,418 |
26,825 |
38,419 |
39,534 |
|||||
Total interest-earning assets |
4,641,462 |
4,493,799 |
4,558,062 |
4,561,562 |
4,539,678 |
|||||
Goodwill |
173,210 |
173,210 |
173,210 |
173,210 |
173,210 |
|||||
Core deposits and other intangibles, net |
10,800 |
11,340 |
11,890 |
12,463 |
13,028 |
|||||
All other noninterest-earning assets |
260,923 |
259,198 |
236,710 |
230,667 |
265,404 |
|||||
Total Assets |
$ 5,086,395 |
$ 4,937,547 |
$ 4,979,872 |
$ 4,977,902 |
$ 4,991,320 |
|||||
Noninterest-bearing demand deposits |
$ 1,197,400 |
$ 1,144,754 |
$ 1,158,023 |
$ 1,124,076 |
$ 1,117,335 |
|||||
Interest-bearing deposits: |
||||||||||
Interest-bearing demand deposits |
2,027,133 |
1,993,546 |
1,946,308 |
1,837,612 |
1,674,468 |
|||||
Jumbo certificates of deposit |
582,727 |
549,723 |
576,984 |
614,418 |
658,983 |
|||||
Regular certificates of deposit |
233,592 |
241,649 |
264,388 |
287,243 |
308,842 |
|||||
Brokered certificates of deposit |
118,622 |
133,101 |
166,319 |
182,852 |
207,609 |
|||||
Total deposits |
4,159,474 |
4,062,773 |
4,112,022 |
4,046,201 |
3,967,237 |
|||||
Other borrowed funds |
100,976 |
99,884 |
107,211 |
145,625 |
216,342 |
|||||
Subordinated debt |
77,831 |
77,724 |
77,824 |
77,232 |
77,701 |
|||||
Junior subordinated debt |
82,734 |
82,734 |
82,734 |
82,734 |
82,734 |
|||||
Accrued interest payable and other liabilities |
40,952 |
40,216 |
46,348 |
48,480 |
41,548 |
|||||
Total liabilities |
4,461,967 |
4,363,331 |
4,426,139 |
4,400,272 |
4,385,562 |
|||||
Common equity |
624,428 |
574,216 |
553,733 |
577,630 |
561,540 |
|||||
Preferred equity |
- |
- |
- |
- |
44,218 |
|||||
Total shareholders' equity |
624,428 |
574,216 |
553,733 |
577,630 |
605,758 |
|||||
Total Liabilities and Shareholders' Equity |
$ 5,086,395 |
$ 4,937,547 |
$ 4,979,872 |
$ 4,977,902 |
$ 4,991,320 |
|||||
Jun. 30, |
Mar. 31, |
Dec. 31, |
Sep. 30, |
Jun. 30, |
||||||
2010 |
2010 |
2009 |
2009 |
2009 |
||||||
Period-end Loans: |
||||||||||
Loans held for sale |
$ 6,509 |
$ 18,055 |
$ 11,778 |
$ 38,187 |
$ 1,642 |
|||||
Loans held for investment: |
||||||||||
Commercial and industrial |
658,141 |
697,998 |
806,542 |
823,797 |
930,445 |
|||||
Real Estate: |
||||||||||
Commercial |
1,632,213 |
1,672,562 |
1,669,118 |
1,703,629 |
1,768,824 |
|||||
Construction and development |
310,689 |
330,855 |
360,444 |
394,819 |
458,386 |
|||||
Residential mortgage |
343,894 |
346,400 |
344,838 |
335,007 |
323,520 |
|||||
Consumer/other |
47,433 |
48,446 |
52,331 |
55,268 |
56,046 |
|||||
Loans held for investment |
2,992,370 |
3,096,261 |
3,233,273 |
3,312,520 |
3,537,221 |
|||||
Total period-end loans |
$ 2,998,879 |
$ 3,114,316 |
$ 3,245,051 |
$ 3,350,707 |
$ 3,538,863 |
|||||
Period-End Deposits: |
||||||||||
Noninterest-bearing demand |
$ 1,266,781 |
$ 1,167,602 |
$ 1,144,133 |
$ 1,094,346 |
$ 1,127,717 |
|||||
Interest-bearing demand |
1,962,854 |
2,031,399 |
2,004,539 |
1,874,746 |
1,670,437 |
|||||
Certificates and other time deposits: |
||||||||||
Jumbo |
587,377 |
560,093 |
549,588 |
594,590 |
644,965 |
|||||
Regular |
231,404 |
234,010 |
252,682 |
273,721 |
306,988 |
|||||
Brokered |
102,714 |
131,324 |
144,009 |
170,051 |
208,128 |
|||||
Total period-end deposits |
$ 4,151,130 |
$ 4,124,428 |
$ 4,094,951 |
$ 4,007,454 |
$ 3,958,235 |
|||||
STERLING BANCSHARES, INC. |
||||||||||||||
SELECTED FINANCIAL INFORMATION (Unaudited) |
||||||||||||||
(dollars in thousands) |
||||||||||||||
Quarter Ended |
Year-to-Date |
|||||||||||||
Jun. 30, |
Mar. 31, |
Dec. 31, |
Sep. 30, |
Jun. 30, |
||||||||||
2010 |
2010 |
2009 |
2009 |
2009 |
2010 |
2009 |
||||||||
Allowance For Credit Losses |
||||||||||||||
Allowance for loan losses at beginning of period |
$ 76,646 |
$ 74,732 |
$ 70,059 |
$ 53,075 |
$ 56,703 |
$ 74,732 |
$ 49,177 |
|||||||
Charge-offs: |
||||||||||||||
Commercial, financial and industrial |
1,687 |
1,968 |
1,536 |
5,049 |
13,523 |
3,655 |
15,483 |
|||||||
Real estate, mortgage and construction |
5,786 |
20,214 |
5,448 |
32,464 |
1,903 |
26,000 |
2,341 |
|||||||
Consumer |
205 |
262 |
477 |
321 |
331 |
467 |
791 |
|||||||
Total charge-offs |
7,678 |
22,444 |
7,461 |
37,834 |
15,757 |
30,122 |
18,615 |
|||||||
Recoveries: |
||||||||||||||
Commercial, financial and industrial |
433 |
483 |
536 |
251 |
286 |
916 |
926 |
|||||||
Real estate, mortgage and construction |
845 |
821 |
488 |
23 |
180 |
1,666 |
278 |
|||||||
Consumer |
51 |
118 |
110 |
163 |
163 |
169 |
257 |
|||||||
Total Recoveries |
1,329 |
1,422 |
1,134 |
437 |
629 |
2,751 |
1,461 |
|||||||
Net charge-offs |
6,349 |
21,022 |
6,327 |
37,397 |
15,128 |
27,371 |
17,154 |
|||||||
Provision for loan losses |
10,686 |
22,936 |
11,000 |
54,381 |
11,500 |
33,622 |
21,052 |
|||||||
Allowance for loan losses at end of period |
$ 80,983 |
$ 76,646 |
$ 74,732 |
$ 70,059 |
$ 53,075 |
$ 80,983 |
$ 53,075 |
|||||||
Allowance for unfunded loan commitments at beginning of period |
2,852 |
2,852 |
2,852 |
1,102 |
1,102 |
2,852 |
1,654 |
|||||||
Provision for losses on unfunded loan commitments |
(1,350) |
- |
- |
1,750 |
- |
(1,350) |
(552) |
|||||||
Allowance for unfunded loan commitments at end of period |
1,502 |
2,852 |
2,852 |
2,852 |
1,102 |
1,502 |
1,102 |
|||||||
Total allowance for credit losses |
$ 82,485 |
$ 79,498 |
$ 77,584 |
$ 72,911 |
$ 54,177 |
$ 82,485 |
$ 54,177 |
|||||||
Nonperforming Assets |
||||||||||||||
Nonperforming loans: |
||||||||||||||
Loans held for sale |
$ 3,491 |
$ 10,883 |
$ 9,896 |
$ 29,472 |
$ - |
$ 3,491 |
$ - |
|||||||
Loans held for investment |
162,669 |
125,025 |
92,668 |
65,515 |
114,069 |
162,669 |
114,069 |
|||||||
Real estate acquired by foreclosure |
18,151 |
17,282 |
16,763 |
11,674 |
8,095 |
18,151 |
8,095 |
|||||||
Other repossessed assets |
20 |
60 |
38 |
33 |
419 |
20 |
419 |
|||||||
Total nonperforming assets |
$ 184,331 |
$ 153,250 |
$ 119,365 |
$ 106,694 |
$ 122,583 |
$ 184,331 |
$ 122,583 |
|||||||
Restructured loans - accruing |
$ 15,001 |
$ 10,675 |
$ 69,857 |
$ 45,981 |
$ 2,828 |
$ 15,001 |
$ 2,828 |
|||||||
Potential problem loans |
$ 142,123 |
$ 172,020 |
$ 187,513 |
$ 131,950 |
$ 133,678 |
$ 142,123 |
$ 133,678 |
|||||||
Accruing loans 30 to 89 days past due |
$ 19,307 |
$ 46,410 |
$ 34,243 |
$ 23,364 |
$ 30,131 |
$ 19,307 |
$ 30,131 |
|||||||
Accruing loans past due 90 days or more |
$ 441 |
$ 306 |
$ 41 |
$ 681 |
$ 2,112 |
$ 441 |
$ 2,112 |
|||||||
Ratios |
||||||||||||||
Period-end allowance for credit losses to period-end loans |
2.75% |
2.55% |
2.39% |
2.18% |
1.53% |
2.75% |
1.53% |
|||||||
Period-end allowance for loan losses to period-end loans |
2.70% |
2.46% |
2.30% |
2.09% |
1.50% |
2.70% |
1.50% |
|||||||
Period-end allowance for loan losses to nonperforming loans |
48.74% |
56.40% |
72.86% |
73.76% |
46.53% |
48.74% |
46.53% |
|||||||
Nonperforming loans to period-end loans |
5.54% |
4.36% |
3.16% |
2.83% |
3.22% |
5.54% |
3.22% |
|||||||
Nonperforming assets to period-end assets |
3.63% |
3.04% |
2.42% |
2.20% |
2.50% |
3.63% |
2.50% |
|||||||
Net charge-offs to average loans (2) |
0.83% |
2.67% |
0.76% |
4.27% |
1.67% |
1.77% |
0.93% |
|||||||
STERLING BANCSHARES, INC. |
|
FOOTNOTES TO EARNINGS RELEASE |
|
(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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