STNJ Sterling Bank (MM)

MOUNT LAUREL, N.J., Oct. 26 /PRNewswire-FirstCall/ -- Sterling Bank (NASDAQ:STNJ) today reported income before taxes of $2,036,000 for the nine month period ended September 30, 2005. This reflects a 78% increase compared to the nine month period ended September 30, 2004, which totaled $1,143,000. Net income for the nine month period totaled $1,286,000, an increase of 73% over net income for the same period of 2004, which totaled $743,000. On a basic and diluted per share basis, the net income for the nine month period was $0.34 and $0.33 per share, respectively, compared to net income of $0.25 and $0.24 per share (adjusted for stock dividends), respectively, for the period ending September 30, 2004, an increase of 36% and 37%, respectively. For the quarter ended September 30, 2005, income before taxes totaled $858,000, increasing 78% from $483,000 for the third quarter of 2004. Net income amounted to $532,000 for the third quarter of 2005, compared to net income of $314,000 for the third quarter of 2004. On a basic and diluted per share basis, net income for the third quarter of 2005 amounted to $0.12 per share, compared to net income of $0.10 per share (adjusted for stock dividends) for the third quarter of 2004, an increase of 20%. As of September 30, 2005, Sterling Bank's assets totaled $343 million, compared to assets of $289 million on September 30, 2004, representing a 19% increase. Total loans amounted to $265 million on September 30, 2005, reflecting an increase of 35% over total loans as of September 30, 2004 of $197 million. Total deposits expanded to $279 million on September 30, 2005, an increase of 14% from $245 million on September 30, 2004. Sterling Bank's improved earnings are attributable primarily to growth in net interest income of 25% from $7.1 million during the first nine months of 2004, to $8.9 million during the first nine months of 2005. The expansion of this revenue source is primarily the result of higher volume in interest earning assets and an improvement of the net interest margin to 3.88% for the first nine months of 2005, from 3.62% during the first nine months of 2004. Sterling Bank, during this period, realized enhanced loan volume related to its focus on the primary service area of the Bank, with both commercial and consumer loan outstanding levels growing at very positive levels. Robert H. King, President and Chief Executive Officer commented, "Highlights of operations through September 30, 2005 reflect further progress in the development of Sterling Bank, and confirmation of the positive trends consistently reported over recent operating periods." Sterling Bank Financial Highlights (unaudited) As of, and for the nine months ended, September 30, 2005 and September 30, 2004 Three Months Ended Nine Months Ended 09/30/2005 09/30/2004 09/30/2005 09/30/2004 INCOME STATEMENT Interest income 5,024,000 3,602,000 13,830,000 9,958,000 Interest expense 1,898,000 1,070,000 4,978,000 2,905,000 Net interest income 3,126,000 2,532,000 8,852,000 7,053,000 Provision for loan losses 102,000 93,000 252,000 158,000 Net interest income after provision for loan losses 3,024,000 2,439,000 8,600,000 6,895,000 Noninterest income 165,000 150,000 502,000 532,000 Noninterest expenses 2,331,000 2,106,000 7,066,000 6,284,000 Income before taxes 858,000 483,000 2,036,000 1,143,000 Income tax expense 326,000 169,000 750,000 400,000 Net income 532,000 314,000 1,286,000 743,000 PER SHARE DATA Basic earnings per share $0.12 $0.10 $0.34 $0.25 Diluted earnings per share $0.12 $0.10 $0.33 $0.24 Dividends paid on common shares $0.03 $0.02 $0.09 $0.06 Average shares outstanding - Basic 4,533,496 3,002,991 3,809,843 2,998,941 Average shares outstanding - Diluted 4,612,665 3,039,142 3,870,116 3,034,175 BALANCE SHEET Assets Cash & due from banks 9,127,000 10,124,000 Federal funds sold 260,000 1,093,000 Total investment securities 57,454,000 71,156,000 Restricted stock 2,394,000 1,712,000 Total loans 264,919,000 197,196,000 Allowance for loan losses (1,121,000) (917,000) Other assets 9,658,000 8,556,000 Total assets 342,691,000 288,920,000 Liabilities Total deposits 279,479,000 245,222,000 Total borrowings 28,291,000 22,344,000 Other liabilities 740,000 862,000 Total liabilities 308,510,000 268,428,000 Shareholders' equity Common stock 9,067,000 5,755,000 Additional paid-in capital 23,233,000 13,732,000 Retained earnings 2,538,000 1,272,000 Accumulated other comprehensive losses (657,000) (267,000) Total shareholders' equity 34,181,000 20,492,000 Total liabilities and shareholders' equity 342,691,000 288,920,000 PERFORMANCE RATIOS Book value per share $7.54 $6.78 Return on average assets 0.63% 0.44% 0.53% 0.36% Return on average equity 6.20% 6.22% 6.23% 5.03% Net interest margin 3.89% 3.73% 3.88% 3.62% Sterling Bank is a community bank headquartered in Burlington County, New Jersey, with assets of $343 million as of September 30, 2005. Sterling Bank's main office is located in Mount Laurel, New Jersey and its five other Community Banking Centers are located in Burlington and Camden Counties in New Jersey. Additionally, Sterling Bank has announced a seventh retail branch which is planned for opening during the 4th quarter of 2005 in Voorhees Township, New Jersey. Sterling Bank began operations in December 1990 with the purpose of serving consumers and small to medium-sized businesses in its market area. 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 Bank is traded on the NASDAQ Small Cap Market under the symbol "STNJ". For additional information about Sterling Bank visit our website at http://www.sterlingnj.com/. This news release may contain certain forward-looking statements, such as statements of the Bank'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 Bank's control) and actual results may differ materially. Accordingly, 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, trends in interest rates, the ability of our borrowers to repay their loans, the ability of the Bank to effectively manage its growth, and results of regulatory examinations, among other factors. Sterling Bank cautions that the foregoing list of important factors is not exclusive. Readers should carefully review the risk factors described in other documents the Bank files from time to time with the Federal Reserve, including the Bank's Annual Report on Form 10-KSB for the year ended December 31, 2004, Quarterly Reports on Form 10-QSB, and Current Reports on Form 8-K. DATASOURCE: Sterling Bank CONTACT: Robert H. King, President, +1-856-273-5900 or , or R. Scott Horner, Executive Vice President, +1-856-273-5900 or , both of Sterling Bank Web site: http://www.sterlingnj.com/

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