MOUNT LAUREL, N.J.,
April 15 /PRNewswire-FirstCall/ --
Sterling Banks, Inc. (Nasdaq: STBK),
the bank holding company of Sterling
Bank, a locally focused, community oriented, full service
commercial bank which operates through ten retail branches that are
located in New Jersey's
Burlington and Camden Counties, reported a fourth quarter
loss before income taxes of $452,000,
and after tax income of $364,000, or
$0.06 per share, on a basic and
diluted basis.
For the quarter ending December 31,
2009, the Company reported net income of $364,000, compared to net loss of $15,823,000 for the fourth quarter of 2008.
On a basic and diluted per share basis, the net income for
the fourth quarter of 2009 was $0.06
per share compared to net loss for the fourth quarter of 2008 of
$2.71 per share. For the years
ended December 31, 2009 and 2008, the
net losses were $10,354,000 and
$16,228,000, respectively. On a
basic and diluted per share basis, the net losses for the years
ended December 31, 2009 and 2008 were
$1.77 and $2.78 per share, respectively. In addition,
the Worker, Homeownership, and Business Assistance Act of 2009 was
passed during the fourth quarter of 2009 and allowed the Company to
carry back its fiscal 2009 taxable loss up to five years.
This legislation enabled the Company to record a federal
income tax receivable at December 31,
2009 and reduce its recorded valuation allowance in the
fourth quarter 2009.
Total assets of the Company were $370
million and $379 million as of
December 31, 2009 and 2008,
respectively, a decrease of $9
million, or 2%. Loans outstanding totaled $300 million as of December 31, 2009, a decrease of $6 million, or 2%, from total loans of
$306 million as of December 31, 2008. Deposits totaled
$331 million as of December 31, 2009, an increase of $2 million, or 1%, from total deposits of
$329 million as of December 31, 2008. These changes reflect
the continued efforts by management to reduce the level of risk on
the balance sheet.
For the quarter ended December 31,
2009, the Company's net interest income after the provision
for loan losses was $2,964,000, an
increase of $5,559,000 over the same
period in 2008, primarily as a result of a decrease in provision
for loan losses of $5,585,000.
Noninterest income for the quarter ended December 31, 2009 amounted to $175,000, a decrease of $19,000, or 10%, primarily as a result of
decreased late charges on loans, decreased prepayment penalties for
early loan payoffs and decreased service charges on deposits.
Noninterest expenses decreased $12,313,000, or 77%, for the three months ended
December 31, 2009 as compared to the
same period in 2008, primarily from the recording of impairment on
goodwill and core deposit intangibles in the fourth quarter of
2008.
For the year ended December 31,
2009, the Company's net interest income after the provision
for loan losses was $5,598,000, a
decrease of $978,000, or 15%,
compared to 2008, primarily as a result of a decrease in net
interest income before provision for loan losses of $1,678,000 partially offset by a decrease in
provision for loan losses of $700,000. The decrease in net interest
income is primarily as a result of a decline in the net interest
margin of 55 basis points, or $1,899,000, including approximately $487,000 in lost revenue on nonaccrual loans and
partially offset by an increase in interest income on increased
interest earning assets outstanding of $221,000. Noninterest income for the year
ended December 31, 2009 amounted to
$757,000, a decrease of $232,000, or 23%, compared to 2008, primarily as
a result of a decrease in gains on sales of available-for-sale
securities of $90,000, a decrease in
miscellaneous fee income of $41,000
pertaining to a one time sale of branch rights to one of our former
Farnsworth locations ($30,000) in
2008, a decrease in prepayment penalties on early loan payoffs of
$31,000, a decrease in late charges
of $16,000, and a decrease in
mortgage origination income of $14,000. Noninterest expenses decreased
$11,878,000, or 45%, for the year
ended December 31, 2009 as compared
to 2008, primarily from an impairment charge to goodwill and core
deposit intangibles of $12,227,000 in
2008, an increase in deposit insurance of $784,000, including a one time special assessment
of $183,000, an increase in loan
workout expenses of $503,000, a
decrease in personnel expenses of $855,000, a decrease in marketing and business
development of $212,000, a decrease
in delivery, postage and supplies of $109,000, and a decrease in information systems
of $104,000.
Previously, on March 18, 2010, the
Company announced that the Board of Directors approved an Agreement
and Plan of Merger providing for the Company to merge with and into
a subsidiary of Roma Financial in exchange for a cash payment.
Under the terms of the merger agreement, which has been
approved by the boards of directors of both companies, Roma
Financial will acquire all of the outstanding shares of the Company
for a total purchase price of approximately $14.7 million in cash, or $2.52 per share for each share of common stock
outstanding. It is expected that the merger will be
consummated in the third quarter of 2010.
Robert H. King, President and CEO
of Sterling Banks, Inc., noted the
very positive prospects of the pending merger with Roma Financial;
"we are quite pleased with the enhanced service offerings and
locations which will be available under the Roma umbrella. Sterling's customers will
benefit in a host of ways as we combine the two organizations, once
the necessary steps to complete the merger are satisfied".
Sterling Banks,
Inc.
Consolidated Financial
Highlights (unaudited)
As of, and for the years
ended, December 31, 2009 and 2008
|
|
|
Three Months Ended
|
Years Ended
|
|
|
12/31/2009
|
12/31/2008
|
12/31/2009
|
12/31/2008
|
|
INCOME STATEMENT
|
|
|
|
|
|
Interest
income
|
$ 4,592,000
|
$5,207,000
|
$18,858,000
|
$ 22,300,000
|
|
Interest
expense
|
1,628,000
|
2,217,000
|
7,870,000
|
9,634,000
|
|
Net interest
income
|
2,964,000
|
2,990,000
|
10,988,000
|
12,666,000
|
|
Provision for loan
losses
|
-
|
5,585,000
|
5,390,000
|
6,090,000
|
|
Net interest
income after provision for loan losses
|
2,964,000
|
(2,595,000)
|
5,598,000
|
6,576,000
|
|
Noninterest
income
|
175,000
|
194,000
|
757,000
|
989,000
|
|
Noninterest
expenses
|
3,591,000
|
15,904,000
|
14,614,000
|
26,492,000
|
|
Loss before
taxes
|
(452,000)
|
(18,305,000)
|
(8,259,000)
|
(18,927,000)
|
|
Income tax expense
(benefit)
|
(816,000)
|
(2,482,000)
|
2,095,000
|
(2,699,000)
|
|
Net income
(loss)
|
$364,000
|
$(15,823,000)
|
$(10,354,000)
|
$(16,228,000)
|
|
|
|
|
|
|
|
PER SHARE DATA
|
|
|
|
|
|
Basic and Diluted income
(losses) per share
|
$0.06
|
$(2.71)
|
$(1.77)
|
$(2.78)
|
|
Average shares
outstanding -Basic and Diluted
|
5,843,362
|
5,843,362
|
5,843,362
|
5,843,362
|
|
|
|
|
|
|
|
BALANCE SHEET
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Cash & due
from banks
|
|
|
$ 10,765,000
|
$ 13,054,000
|
|
Federal funds
sold
|
|
|
4,545,000
|
472,000
|
|
Total investment
securities
|
|
|
43,296,000
|
43,981,000
|
|
Restricted
stock
|
|
|
1,866,000
|
2,448,000
|
|
Total
loans
|
|
|
300,499,000
|
305,628,000
|
|
Allowance for
loan losses
|
|
|
(9,915,000)
|
(8,531,000)
|
|
Other
assets
|
|
|
18,745,000
|
22,053,000
|
|
Total
assets
|
|
|
$369,801,000
|
$379,105,000
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Total
deposits
|
|
|
$330,726,000
|
$328,594,000
|
|
Total
borrowings
|
|
|
20,436,000
|
22,186,000
|
|
Other
liabilities
|
|
|
1,653,000
|
1,204,000
|
|
Total
liabilities
|
|
|
352,815,000
|
351,984,000
|
|
Shareholders'
equity
|
|
|
|
|
|
Common
stock
|
|
|
11,687,000
|
11,687,000
|
|
Additional
paid-in capital
|
|
|
29,841,000
|
29,767,000
|
|
Accumulated
deficit
|
|
|
(24,633,000)
|
(14,279,000)
|
|
Accumulated other
comprehensive income (losses)
|
|
|
91,000
|
(54,000)
|
|
Total
shareholders' equity
|
|
|
16,986,000
|
27,121,000
|
|
Total
liabilities and shareholders' equity
|
|
|
$369,801,000
|
$379,105,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE RATIOS
|
|
|
|
|
|
Book value per
share
|
|
|
$2.91
|
$4.64
|
|
Tangible book value per
share
|
|
|
$2.57
|
$4.24
|
|
Return on average
assets
|
0.38%
|
(15.91)%
|
(2.68)%
|
(4.14)%
|
|
Return on average
equity
|
8.72%
|
(147.96)%
|
(47.76)%
|
(37.83)%
|
|
Net interest
margin
|
3.36%
|
3.44%
|
3.12%
|
3.67%
|
|
|
|
|
|
|
|
|
Sterling Banks, Inc. is a bank
holding company which commenced operations in March 2007, with assets of $370 million as of December 31, 2009, and is headquartered in
Mount Laurel Township,
Burlington County. Sterling
Bank is a community bank which commenced operations in December 1990 with the purpose of serving
consumers and small to medium-sized businesses in its market area.
Sterling Bank's main office is located in Mount Laurel, New Jersey, and its nine other
Community Banking Centers are located in Burlington and Camden Counties in New Jersey. The Bank's deposits are
insured to the applicable regulatory limits per depositor by the
Federal Deposit Insurance Corporation. Sterling Bank is a
member of the Federal Reserve System. The common stock of
Sterling Banks, Inc. is traded on
the NASDAQ Capital Market under the symbol "STBK". For
additional information about Sterling
Bank and Sterling Banks, Inc.
visit our website at http://www.sterlingnj.com.
This news release may contain certain forward-looking
statements, such as statements of the Company's plans, objectives,
expectations, estimates and intentions. Forward-looking
statements may be identified by the use of words such as "expects,"
"subject," "believe," "will," "intends," "will be" or "would."
These statements are subject to change based on various
important factors (some of which are beyond the Company's control).
Readers should not place undue reliance on any
forward-looking statements (which reflect management's analysis
only as of the date of which they are given). These factors
include general economic conditions, the ability of the Company to
close the transaction with Roma Financial, trends in interest
rates, the ability of our borrowers to repay their loans, the
ability of the Company to manage the risk in its loan and
investment portfolios, the ability of the Company to reduce
noninterest expenses and increase net interest income, results of
possible collateral collections and subsequent sales, and results
of regulatory examinations, among other factors. Sterling
Banks, Inc. cautions that the foregoing list of important factors
is not exclusive. Readers should carefully review the risk
factors described in other documents the Company files from time to
time with the Securities and Exchange Commission, including the
Company's Annual Report on Form 10-K for the year ended
December 31, 2008, Quarterly Reports
on Form 10-Q, and Current Reports on Form 8-K.
SOURCE Sterling Banks, Inc.