MOUNT LAUREL, N.J.,
May 17 /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 located
in New Jersey's Burlington and Camden Counties, reported a before and after
tax first quarter loss of $1,046,000,
or $0.18 per share, on a basic and
diluted basis. For the first quarter of 2009, the Company had
a net loss of $449,000, or
$.08 per share, on a basic and
diluted basis.
Total assets of the Company were $369
million and $393 million as of
March 31, 2010 and 2009,
respectively, a decrease of $24
million, or 6%. Loans outstanding totaled $296 million as of March
31, 2010, a decrease of $7
million, or 2%, from total loans of $303 million as of March
31, 2009. Deposits totaled $331
million as of March 31, 2010,
a decrease of $12 million, or 3%,
from total deposits of $343 million
as of March 31, 2009. These
changes reflect the continued efforts by management to reduce the
level of risk on the Company's balance sheet.
For the quarter ended March 31,
2010, the Company's net interest income after the provision
for loan losses was $2,458,000, a
decrease of $37,000 over the same
period in 2009, primarily as a result of a provision for loan
losses of $550,000 in 2010 (compared
to no provision in 2009) which was partially offset by a 77 basis
point increase in the net interest margin. Noninterest income
for the quarter ended March 31, 2010
amounted to $172,000, a decrease of
$47,000, or 21%, primarily as a
result of a decrease in prepayment penalties for early loan payoffs
and a decrease in late charges on loans. Noninterest expenses
increased $249,000, or 7%, for the
three months ended March 31, 2010 as
compared to the same period in 2009, primarily from an increase in
FDIC insurance and an increase in loan workout related legal
expenses.
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 Corporation. 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 (subject to
adjustment) for each share of common stock outstanding. The
completion of the merger is subject to several conditions,
including the receipt of shareholder and regulatory approval.
The Company will hold a special meeting of shareholders on
June 8, 2010 to vote on the Agreement
and Plan of Merger. 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., commented
regarding the pending combination with Roma Financial; "This
consolidation will provide significant benefits to our customers,
including the availability of enhanced service offerings and
broader geographic retail branch availability".
Sterling Banks,
Inc.
Consolidated
Financial Highlights (unaudited)
As of, and for the three
months ended, March 31, 2010 and 2009
|
|
|
Three Months Ended
|
|
|
03/31/2010
|
|
03/31/2009
|
|
INCOME STATEMENT
|
|
|
|
|
Interest
income
|
$ 4,472,000
|
|
$ 4,711,000
|
|
Interest
expense
|
1,464,000
|
|
2,216,000
|
|
Net interest
income
|
3,008,000
|
|
2,495,000
|
|
Provision for loan
losses
|
550,000
|
|
-
|
|
Net interest
income after
|
|
|
|
|
provision
for loan losses
|
2,458,000
|
|
2,495,000
|
|
Noninterest
income
|
172,000
|
|
219,000
|
|
Noninterest
expenses
|
3,676,000
|
|
3,427,000
|
|
Loss before
taxes
|
(1,046,000)
|
|
(713,000)
|
|
Income tax
benefit
|
-
|
|
(264,000)
|
|
Net
loss
|
$(1,046,000)
|
|
$ (449,000)
|
|
|
|
|
|
|
PER SHARE DATA
|
|
|
|
|
Basic and Diluted losses
per share
|
$(0.18)
|
|
$(0.08)
|
|
Average shares
outstanding -
|
|
|
|
|
Basic and
Diluted
|
5,843,362
|
|
5,843,362
|
|
|
|
|
|
|
BALANCE SHEET
|
|
|
|
|
Assets
|
|
|
|
|
Cash & due
from banks
|
$ 10,347,000
|
|
$ 8,525,000
|
|
Federal funds
sold
|
16,101,000
|
|
16,327,000
|
|
Total investment
securities
|
36,052,000
|
|
49,683,000
|
|
Restricted
stock
|
1,730,000
|
|
2,448,000
|
|
Total
loans
|
296,086,000
|
|
302,661,000
|
|
Allowance for
loan losses
|
(9,235,000)
|
|
(8,380,000)
|
|
Other
assets
|
18,077,000
|
|
22,228,000
|
|
Total
assets
|
$369,158,000
|
|
$393,492,000
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Total
deposits
|
$330,849,000
|
|
$342,906,000
|
|
Total
borrowings
|
20,436,000
|
|
22,186,000
|
|
Other
liabilities
|
1,794,000
|
|
1,434,000
|
|
Total
liabilities
|
353,079,000
|
|
366,526,000
|
|
Shareholders'
equity
|
|
|
|
|
Common
stock
|
11,687,000
|
|
11,687,000
|
|
Additional
paid-in capital
|
29,860,000
|
|
29,786,000
|
|
Accumulated
deficit
|
(25,679,000)
|
|
(14,728,000)
|
|
Accumulated other
comprehensive income
|
211,000
|
|
221,000
|
|
Total
shareholders' equity
|
16,079,000
|
|
26,966,000
|
|
Total
liabilities and shareholders' equity
|
$369,158,000
|
|
$393,492,000
|
|
|
|
|
|
|
PERFORMANCE RATIOS
|
|
|
|
|
Book value per
share
|
$2.75
|
|
$4.61
|
|
Tangible book value per
share
|
$2.43
|
|
$4.23
|
|
Return on average
assets
|
(1.14)%
|
|
(0.47)%
|
|
Return on average
equity
|
(25.26)%
|
|
(6.76)%
|
|
Net interest
margin
|
3.63%
|
|
2.86%
|
|
|
|
|
|
|
|
Sterling Banks, Inc. is a bank
holding company which commenced operations in March 2007, with assets of $369 million as of March
31, 2010, 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, 2009, Quarterly Reports
on Form 10-Q, and Current Reports on Form 8-K.
SOURCE Sterling Banks, Inc.