Sterling Bancshares Reports Fourth Quarter 2009 Results
HOUSTON, Jan. 21 /PRNewswire-FirstCall/ -- Sterling Bancshares, Inc. (Nasdaq: SBIB) today reported net income of $1.7 million, or $0.02 per diluted common share for the fourth quarter ended December 31, 2009 compared to a net loss of $24.7 million or $0.30 per diluted common share for the third quarter of 2009.
Net loss for the year ended December 31, 2009 was $13.0 million compared to net income of $38.6 million for 2008. Net loss applicable to common shareholders for the year ended December 31, 2009 was $22.3 million, or $0.28 per diluted common share which included total preferred dividends of $9.3 million, or $0.12 per diluted common share compared to net income of $38.2 million or $0.52 per diluted common share, earned in 2008.
Key items and metrics for the quarter include the following:
- Average deposit growth of 13.4% for the fourth quarter of 2009 compared to the same period in 2008;
- Average loan to deposit ratio decreased from 105% for the fourth quarter of 2008 to 80.3% for the same period in 2009;
- Period-end allowance for credit losses to period-end loans increased to 2.39% at December 31, 2009 from 1.34% at December 31, 2008 and from 2.18% at September 30, 2009;
- Completed sale of $16 million in nonperforming loans related to Semgroup (a previously disclosed energy loan relationship);
- Realized securities gains and losses resulting in a net loss of $1.8 million (sold all below investment grade securities); and
- Recorded acquisition costs of $980 thousand during the fourth quarter of 2009 related to the terminated First Bank acquisition.
"Our 2009 results were impacted by an extremely difficult economic environment. Elevated credit costs, historically low interest rates, and low loan demand significantly reduced our profitability this past year," commented J. Downey Bridgwater, Sterling's Chairman, President, and Chief Executive Officer. "While our fourth quarter results are an improvement from the third quarter, they are still not where we want them to be. Going forward, we will continue to proactively identify negative trends within our portfolio and take actions necessary to minimize future loan losses."
Average deposits increased $65.8 million to $4.1 billion at December 31, 2009, up 1.6% on a linked-quarter basis and up $485 million or 13.4% compared to December 31, 2008. This deposit growth has further strengthened the Company's balance sheet by improving the average loan to deposit ratio to 80.3% for the fourth quarter of 2009, down from 105% for the same quarter in 2008.
Average total loans decreased $173 million or 5.0% on a linked-quarter basis to $3.3 billion at December 31, 2009, and decreased $495 million or 13.0% since December 31, 2008. The decline in loans during 2009 was primarily due to principal reductions in energy and construction and development loans.
At December 31, 2009, nonperforming assets were $119 million or 2.42% of total assets compared to $107 million or 2.20% at September 30, 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 and this increase was partially offset by the sale of approximately $20.0 million of nonperforming loans during the fourth quarter of 2009.
At December 31, 2009, the total allowance for credit losses was $77.6 million or 2.39% of period-end total loans, up from $50.8 million or 1.34% of period-end total loans at December 31, 2008, and from $72.9 million or 2.18% of period-end total loans at September 30, 2009. The increase in the allowance for loan losses during 2009 was due in part to increases in both nonperforming and classified loans.
Net charge-offs for the fourth quarter of 2009 were $6.3 million or 0.76% of average total loans, compared to $37.4 million or 4.27% of average total loans for the third quarter of 2009. Net charge-offs for the year ended December 31, 2009 were $60.9 million or 1.72% of average total loans, up from $14.5 million or 0.40% for the same period in 2008. The primary increase in net charge-offs during 2009 was due to the $15.9 million of charge-offs related to collateral-based nonperforming loans, $11.8 million related to the sale of certain nonperforming loans and an $11.6 million charge-off related to Semgroup (a previously disclosed nonperforming energy loan relationship) which had previously been provided for in our allowance for loan losses.
Tax-equivalent net interest income for the fourth quarter of 2009 was $47.2 million, down $1.1 million on a linked-quarter basis. Tax-equivalent net interest margin was 4.11% for the fourth quarter of 2009, down 9 basis points from 4.20% for the third quarter of 2009.
Noninterest income for the fourth quarter of 2009 decreased $3.6 million on a linked-quarter basis and decreased $4.2 million compared to the same period in 2008. Net losses on securities for the fourth quarter of 2009 were $1.8 million due to realized losses of $7.2 million recorded on the sale of certain private-label CMOs. The decision to sell these securities in 2009 was due to the significant credit downgrading of the securities which caused these securities to be classified as "substandard" assets by management. These securities had a carrying value of $24.4 million at the time of sale. These losses were partially offset by realized gains of $5.3 million on the sale of available-for-sale investments with a cost basis of $97.0 million which were sold as part of our routine portfolio management. Other noninterest income for the fourth quarter of 2009 decreased $1.8 million on a linked-quarter basis and $2.3 million compared to the same period in 2008. During the fourth quarter of 2009, the Company recorded $1.4 million in losses on sale of $8.4 million of loans classified as held for sale.
Total noninterest expense decreased $585 thousand for the fourth quarter of 2009 as compared with the third quarter of 2009 and increased $373 thousand compared to the same period in 2008. Salaries and benefits decreased $1.5 million on a linked-quarter basis and $2.4 million compared to the fourth quarter in 2008, as a result of the reduction of certain incentive compensation during the fourth quarter of 2009 and an ongoing expense reduction initiative. Total noninterest expense increased $10.0 million for the year ended 2009, compared to the year ended 2008. FDIC insurance premiums increased $6.3 million for 2009 compared to 2008 due in part to a special FDIC assessment of $2.3 million recorded in the second quarter of 2009. In addition, the Company recorded $1.1 million of acquisition costs during 2009 related to the terminated First Bank branch acquisition.
As of December 31, 2009, Sterling had total assets of $4.9 billion, total loans of $3.2 billion and total deposits of $4.1 billion. Shareholders' equity of $541 million at December 31, 2009, was 11.0% of total assets. Book value per common share at period-end was $6.60.
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, January 21, 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) 332-0345. An audio archive of the call will also be available on the web site beginning Friday, January 22, 2010.
A telephone replay of the conference call will be available beginning Thursday, January 21, 2010 at 12:00 p.m. until Thursday, January 28, 2010 at 11:59 p.m. Central Time by dialing (800) 475-6701. The access code for the replay is 140894.
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 Quarterly Reports for the quarters ended September 30, 2009, June 30, 2009, and March 31, 2009, and its 2008 Annual Report on Form 10-K each of 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 $4.9 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 |
|
STERLING BANCSHARES, INC. SELECTED FINANCIAL INFORMATION (Unaudited) |
||||||||||
(dollars in thousands, except for per share data) |
||||||||||
Page 4 |
||||||||||
Quarter Ended |
Year Ended |
|||||||||
Dec. 31, |
Sep. 30, |
Dec. 31, |
||||||||
2009 |
2009 |
2008 |
2009 |
2008 |
||||||
Profitability |
||||||||||
Net income (loss) |
$ 1,736 |
$ (24,724) |
$ 9,613 |
$ (12,974) |
$ 38,619 |
|||||
Net income (loss) applicable to common shareholders |
$ 1,736 |
$ (24,724) |
$ 9,215 |
$ (22,316) |
$ 38,221 |
|||||
Earnings (loss) per common share (1) |
||||||||||
Basic |
$ 0.02 |
$ (0.30) |
$ 0.13 |
$ (0.28) |
$ 0.52 |
|||||
Diluted |
$ 0.02 |
$ (0.30) |
$ 0.13 |
$ (0.28) |
$ 0.52 |
|||||
Return on average common equity (2) |
1.24% |
(16.98)% |
7.17% |
(4.01)% |
7.60% |
|||||
Return on average assets (2) |
0.14% |
(1.97)% |
0.76% |
(0.26)% |
0.80% |
|||||
Tax equivalent net interest margin (3) |
4.11% |
4.20% |
4.44% |
4.22% |
4.55% |
|||||
Efficiency Ratio (4): |
||||||||||
Consolidated |
70.60% |
69.56% |
64.46% |
69.17% |
63.04% |
|||||
Sterling Bank |
67.64% |
67.79% |
62.33% |
66.97% |
61.03% |
|||||
Liquidity and Capital Ratios |
||||||||||
Average loans to average deposits |
80.29% |
85.86% |
104.65% |
88.83% |
101.31% |
|||||
Period-end stockholders' equity to total assets |
10.95% |
11.23% |
12.66% |
10.95% |
12.66% |
|||||
Average stockholders' equity to average assets |
11.12% |
11.60% |
10.69% |
11.92% |
10.50% |
|||||
Period-end tangible capital to total tangible assets |
7.48% |
7.70% |
9.32% |
7.48% |
9.32% |
|||||
Tier 1 capital to risk-weighted assets |
11.61% |
11.20% |
12.14% |
11.61% |
12.14% |
|||||
Total capital to risk-weighted assets |
14.41% |
13.95% |
14.94% |
14.41% |
14.94% |
|||||
Tier 1 leverage ratio (Tier 1 capital to average assets) |
8.89% |
8.88% |
10.57% |
8.89% |
10.57% |
|||||
Other Data |
||||||||||
Shares used in computing earnings (loss) per common share |
||||||||||
Basic shares |
81,771 |
81,707 |
73,233 |
78,696 |
73,177 |
|||||
Diluted shares |
82,019 |
81,707 |
73,451 |
78,696 |
73,488 |
|||||
End of period common shares outstanding |
81,853 |
81,755 |
73,260 |
81,853 |
73,260 |
|||||
Book value per common share at period-end |
$ 6.60 |
$ 6.67 |
$ 7.17 |
$ 6.60 |
$ 7.17 |
|||||
Cash dividends paid per common share |
$ 0.015 |
$ 0.055 |
$ 0.055 |
$ 0.18 |
$ 0.22 |
|||||
Common stock dividend payout ratio |
70.74% |
(18.19)% |
41.94% |
(106.36)% |
41.72% |
|||||
Full-time equivalent employees |
1,012 |
1,013 |
1,116 |
1,012 |
1,116 |
|||||
Number of banking centers |
58 |
60 |
59 |
58 |
59 |
|||||
STERLING BANCSHARES, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) |
||||||||||
(dollars in thousands) |
||||||||||
Page 5 |
||||||||||
Dec. 31, |
Sep. 30, |
Jun. 30, |
Mar. 31, |
Dec. 31, |
||||||
2009 |
2009 |
2009 |
2009 |
2008 |
||||||
ASSETS |
||||||||||
Cash and cash equivalents |
$ 246,215 |
$ 158,114 |
$ 74,736 |
$ 142,769 |
$ 113,163 |
|||||
Available-for-sale securities, at fair value |
846,216 |
836,521 |
766,536 |
673,960 |
633,357 |
|||||
Held-to-maturity securities, at amortized cost |
222,845 |
162,990 |
163,611 |
169,973 |
172,039 |
|||||
Loans held for sale |
11,778 |
38,187 |
1,642 |
1,395 |
1,524 |
|||||
Loans held for investment |
3,233,273 |
3,312,520 |
3,537,221 |
3,727,368 |
3,792,290 |
|||||
Total loans |
3,245,051 |
3,350,707 |
3,538,863 |
3,728,763 |
3,793,814 |
|||||
Allowance for loan losses |
(74,732) |
(70,059) |
(53,075) |
(56,703) |
(49,177) |
|||||
Loans, net |
3,170,319 |
3,280,648 |
3,485,788 |
3,672,060 |
3,744,637 |
|||||
Premises and equipment, net |
48,816 |
49,128 |
50,272 |
50,738 |
46,875 |
|||||
Real estate acquired by foreclosure |
16,763 |
11,674 |
8,095 |
8,144 |
5,625 |
|||||
Goodwill |
173,210 |
173,210 |
173,210 |
173,210 |
173,210 |
|||||
Core deposits and other intangibles, net |
11,626 |
12,179 |
12,744 |
13,309 |
13,874 |
|||||
Accrued interest receivable |
16,502 |
16,142 |
18,189 |
18,285 |
19,428 |
|||||
Other assets |
184,536 |
158,912 |
159,186 |
152,383 |
157,771 |
|||||
TOTAL ASSETS |
$ 4,937,048 |
$ 4,859,518 |
$ 4,912,367 |
$ 5,074,831 |
$ 5,079,979 |
|||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||||
LIABILITIES: |
||||||||||
Deposits: |
||||||||||
Noninterest-bearing demand |
$ 1,144,133 |
$ 1,094,346 |
$ 1,127,717 |
$ 1,173,745 |
$ 1,123,746 |
|||||
Interest-bearing demand |
2,004,539 |
1,874,746 |
1,670,437 |
1,586,754 |
1,523,969 |
|||||
Certificates and other time |
946,279 |
1,038,362 |
1,160,081 |
1,173,958 |
1,171,422 |
|||||
Total deposits |
4,094,951 |
4,007,454 |
3,958,235 |
3,934,457 |
3,819,137 |
|||||
Other borrowed funds |
97,245 |
99,486 |
176,631 |
278,274 |
408,586 |
|||||
Subordinated debt |
77,338 |
77,616 |
77,028 |
78,310 |
78,335 |
|||||
Junior subordinated debt |
82,734 |
82,734 |
82,734 |
82,734 |
82,734 |
|||||
Accrued interest payable and other liabilities |
44,247 |
46,716 |
47,631 |
53,942 |
48,048 |
|||||
Total liabilities |
4,396,515 |
4,314,006 |
4,342,259 |
4,427,717 |
4,436,840 |
|||||
COMMITMENTS AND CONTINGENCIES |
- |
- |
- |
- |
- |
|||||
SHAREHOLDERS' EQUITY |
||||||||||
Preferred stock |
- |
- |
- |
118,332 |
118,012 |
|||||
Common stock |
83,721 |
83,622 |
83,552 |
75,168 |
75,128 |
|||||
Capital surplus |
170,848 |
171,955 |
170,708 |
122,877 |
121,918 |
|||||
Retained earnings |
295,909 |
295,401 |
324,619 |
333,498 |
332,009 |
|||||
Treasury stock |
(21,399) |
(21,399) |
(21,399) |
(21,399) |
(21,399) |
|||||
Accumulated other comprehensive income, net of tax |
11,454 |
15,933 |
12,628 |
18,638 |
17,471 |
|||||
Total shareholders' equity |
540,533 |
545,512 |
570,108 |
647,114 |
643,139 |
|||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ 4,937,048 |
$ 4,859,518 |
$ 4,912,367 |
$ 5,074,831 |
$ 5,079,979 |
|||||
STERLING BANCSHARES, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) |
||||||||||||||
(dollars in thousands, except for per share data) |
||||||||||||||
Page 6 |
||||||||||||||
Quarter Ended |
Year Ended |
|||||||||||||
Dec. 31, |
Sep. 30, |
Jun. 30, |
Mar. 31, |
Dec. 31, |
||||||||||
2009 |
2009 |
2009 |
2009 |
2008 |
2009 |
2008 |
||||||||
Interest income: |
||||||||||||||
Loans, including fees |
$ 46,876 |
$ 49,658 |
$ 51,691 |
$ 53,000 |
$ 58,387 |
$ 201,225 |
$ 241,157 |
|||||||
Securities: |
||||||||||||||
Taxable |
9,758 |
9,286 |
8,815 |
8,558 |
7,989 |
36,417 |
29,660 |
|||||||
Non-taxable |
929 |
897 |
890 |
900 |
907 |
3,616 |
3,632 |
|||||||
Deposits in financial institutions |
90 |
64 |
- |
- |
- |
154 |
10 |
|||||||
Other interest-earning assets |
19 |
29 |
26 |
6 |
3 |
80 |
165 |
|||||||
Total interest income |
57,672 |
59,934 |
61,422 |
62,464 |
67,286 |
241,492 |
274,624 |
|||||||
Interest expense: |
||||||||||||||
Demand and savings deposits |
4,243 |
4,403 |
3,886 |
3,492 |
3,645 |
16,024 |
17,285 |
|||||||
Certificates and other time deposits |
4,577 |
5,504 |
6,503 |
7,467 |
8,041 |
24,051 |
37,443 |
|||||||
Other borrowed funds |
314 |
346 |
425 |
812 |
2,414 |
1,897 |
11,607 |
|||||||
Subordinated debt |
713 |
748 |
885 |
979 |
1,380 |
3,325 |
4,474 |
|||||||
Junior subordinated debt |
1,045 |
1,082 |
1,155 |
1,204 |
1,430 |
4,486 |
5,731 |
|||||||
Total interest expense |
10,892 |
12,083 |
12,854 |
13,954 |
16,910 |
49,783 |
76,540 |
|||||||
Net interest income |
46,780 |
47,851 |
48,568 |
48,510 |
50,376 |
191,709 |
198,084 |
|||||||
Provision for credit losses |
11,000 |
56,131 |
11,500 |
9,000 |
7,500 |
87,631 |
29,917 |
|||||||
Net interest income (loss) after provision for credit losses |
35,780 |
(8,280) |
37,068 |
39,510 |
42,876 |
104,078 |
168,167 |
|||||||
Noninterest income: |
||||||||||||||
Customer service fees |
3,722 |
3,845 |
3,752 |
4,112 |
3,865 |
15,431 |
15,771 |
|||||||
Net gain (loss) on securities |
(1,823) |
4 |
(2) |
15 |
(57) |
(1,806) |
(244) |
|||||||
Wealth management fees |
2,049 |
1,862 |
1,840 |
2,202 |
2,028 |
7,953 |
8,984 |
|||||||
Other |
1,543 |
3,402 |
4,903 |
4,469 |
3,805 |
14,317 |
16,516 |
|||||||
Total noninterest income |
5,491 |
9,113 |
10,493 |
10,798 |
9,641 |
35,895 |
41,027 |
|||||||
Noninterest expense: |
||||||||||||||
Salaries and employee benefits |
19,496 |
21,005 |
24,152 |
22,277 |
21,937 |
86,930 |
85,253 |
|||||||
Occupancy |
5,822 |
5,967 |
6,168 |
5,869 |
5,790 |
23,826 |
21,782 |
|||||||
Technology |
2,375 |
2,495 |
2,475 |
2,505 |
2,559 |
9,850 |
9,794 |
|||||||
Professional fees |
1,283 |
1,065 |
1,157 |
1,197 |
1,226 |
4,702 |
4,707 |
|||||||
Postage, delivery and supplies |
685 |
700 |
760 |
721 |
765 |
2,866 |
3,672 |
|||||||
Marketing |
443 |
557 |
499 |
431 |
781 |
1,930 |
2,545 |
|||||||
Core deposits and other intangibles amortization |
552 |
565 |
565 |
565 |
571 |
2,247 |
2,328 |
|||||||
Acquisition costs |
980 |
154 |
- |
- |
- |
1,134 |
562 |
|||||||
FDIC insurance assessments |
1,856 |
1,741 |
4,001 |
1,232 |
762 |
8,830 |
2,525 |
|||||||
Other |
5,998 |
5,826 |
4,244 |
4,801 |
4,726 |
20,869 |
20,042 |
|||||||
Total noninterest expense |
39,490 |
40,075 |
44,021 |
39,598 |
39,117 |
163,184 |
153,210 |
|||||||
Income (loss) before income taxes |
1,781 |
(39,242) |
3,540 |
10,710 |
13,400 |
(23,211) |
55,984 |
|||||||
Income tax provision (benefit) |
45 |
(14,518) |
933 |
3,303 |
3,787 |
(10,237) |
17,365 |
|||||||
Net income (loss) |
$ 1,736 |
$ (24,724) |
$ 2,607 |
$ 7,407 |
$ 9,613 |
$ (12,974) |
$ 38,619 |
|||||||
Preferred stock dividends |
- |
- |
7,458 |
1,884 |
398 |
9,342 |
398 |
|||||||
Net income (loss) applicable to common shareholders |
$ 1,736 |
$ (24,724) |
$ (4,851) |
$ 5,523 |
$ 9,215 |
$ (22,316) |
$ 38,221 |
|||||||
Earnings (loss) per common share (1): |
||||||||||||||
Basic |
$ 0.02 |
$ (0.30) |
$ (0.06) |
$ 0.08 |
$ 0.13 |
$ (0.28) |
$ 0.52 |
|||||||
Diluted |
$ 0.02 |
$ (0.30) |
$ (0.06) |
$ 0.08 |
$ 0.13 |
$ (0.28) |
$ 0.52 |
|||||||
STERLING BANCSHARES, INC. SELECTED FINANCIAL INFORMATION (Unaudited) |
||||||||||||
(dollars in thousands) |
||||||||||||
Page 7 |
||||||||||||
Quarter Ended |
||||||||||||
Dec. 31, |
Sep. 30, |
|||||||||||
2009 |
2009 |
|||||||||||
Average Balance |
Interest |
Yield/Rate |
Average Balance |
Interest |
Yield/Rate |
|||||||
Interest-Earning Assets: |
||||||||||||
Loans held for sale |
$ 38,844 |
$ 67 |
0.68% |
$ 1,607 |
$ 23 |
5.68% |
||||||
Loans held for investment: |
||||||||||||
Taxable |
3,257,590 |
46,762 |
5.70% |
3,467,555 |
49,586 |
5.67% |
||||||
Non-taxable (3) |
4,935 |
69 |
5.55% |
5,080 |
72 |
5.60% |
||||||
Securities: |
||||||||||||
Taxable |
964,807 |
9,758 |
4.01% |
844,651 |
9,286 |
4.36% |
||||||
Non-taxable (3) |
101,866 |
1,360 |
5.30% |
97,858 |
1,307 |
5.30% |
||||||
Deposits in financial institutions |
163,195 |
90 |
0.22% |
106,392 |
64 |
0.24% |
||||||
Other interest-earning assets |
26,825 |
19 |
0.28% |
38,419 |
29 |
0.30% |
||||||
Total interest-earning assets |
4,558,062 |
58,125 |
5.06% |
4,561,562 |
60,367 |
5.25% |
||||||
Noninterest-earning assets |
421,810 |
416,340 |
||||||||||
Total Assets |
$ 4,979,872 |
$ 4,977,902 |
||||||||||
Interest-Bearing Liabilities: |
||||||||||||
Deposits: |
||||||||||||
Demand and savings |
$ 1,946,308 |
$ 4,243 |
0.86% |
$ 1,837,612 |
$ 4,403 |
0.95% |
||||||
Certificates and other time |
1,007,691 |
4,577 |
1.80% |
1,084,513 |
5,504 |
2.01% |
||||||
Other borrowed funds |
107,211 |
314 |
1.16% |
145,625 |
346 |
0.94% |
||||||
Subordinated debt |
77,824 |
713 |
3.63% |
77,232 |
748 |
3.84% |
||||||
Junior subordinated debt |
82,734 |
1,045 |
5.01% |
82,734 |
1,082 |
5.19% |
||||||
Total interest-bearing liabilities |
3,221,768 |
10,892 |
1.34% |
3,227,716 |
12,083 |
1.49% |
||||||
Noninterest-bearing sources: |
||||||||||||
Noninterest-bearing liabilities |
1,204,371 |
1,172,556 |
||||||||||
Shareholders' equity |
553,733 |
577,630 |
||||||||||
Total Liabilities and Shareholders' Equity |
$4,979,872 |
$4,977,902 |
||||||||||
Tax Equivalent Net Interest Income and Margin (3) |
47,233 |
4.11% |
48,284 |
4.20% |
||||||||
Non-GAAP to GAAP Reconciliation: |
||||||||||||
Tax Equivalent Adjustment: |
||||||||||||
Loans |
22 |
23 |
||||||||||
Securities |
431 |
410 |
||||||||||
Total tax equivalent adjustment |
453 |
433 |
||||||||||
Net Interest Income |
$ 46,780 |
$ 47,851 |
||||||||||
STERLING BANCSHARES, INC. SELECTED FINANCIAL INFORMATION (Unaudited) |
||||||||||||
(dollars in thousands) |
||||||||||||
Page 8 |
||||||||||||
Year Ended |
||||||||||||
2009 |
2008 |
|||||||||||
Average Balance |
Interest |
Yield/Rate |
Average Balance |
Interest |
Yield/Rate |
|||||||
Interest-Earning Assets: |
||||||||||||
Loans held for sale |
$ 11,335 |
$ 156 |
1.37% |
$ 71,050 |
$ 4,696 |
6.61% |
||||||
Loans held for investment: |
||||||||||||
Taxable |
3,532,002 |
200,860 |
5.69% |
3,583,762 |
236,259 |
6.59% |
||||||
Non-taxable (3) |
5,089 |
306 |
6.01% |
3,637 |
294 |
8.09% |
||||||
Securities: |
||||||||||||
Taxable |
820,887 |
36,417 |
4.44% |
620,506 |
29,660 |
4.78% |
||||||
Non-taxable (3) |
98,278 |
5,262 |
5.35% |
97,328 |
5,116 |
5.26% |
||||||
Deposits in financial institutions |
86,673 |
154 |
0.18% |
510 |
10 |
1.92% |
||||||
Other interest-earning assets |
28,703 |
80 |
0.28% |
8,642 |
165 |
1.91% |
||||||
Total interest-earning assets |
4,582,967 |
243,235 |
5.31% |
4,385,435 |
276,200 |
6.30% |
||||||
Noninterest-earning assets |
421,964 |
467,937 |
||||||||||
Total Assets |
$ 5,004,931 |
$ 4,853,372 |
||||||||||
Interest-Bearing Liabilities: |
||||||||||||
Deposits: |
||||||||||||
Demand and savings |
$ 1,757,305 |
$ 16,024 |
0.91% |
$ 1,416,594 |
$ 17,285 |
1.22% |
||||||
Certificates and other time |
1,105,055 |
24,051 |
2.18% |
1,107,735 |
37,443 |
3.38% |
||||||
Other borrowed funds |
207,766 |
1,897 |
0.91% |
542,413 |
11,607 |
2.14% |
||||||
Subordinated debt |
77,643 |
3,325 |
4.28% |
62,128 |
4,474 |
7.20% |
||||||
Junior subordinated debt |
82,734 |
4,486 |
5.42% |
82,734 |
5,731 |
6.93% |
||||||
Total interest-bearing liabilities |
3,230,503 |
49,783 |
1.54% |
3,211,604 |
76,540 |
2.38% |
||||||
Noninterest-bearing sources: |
||||||||||||
Noninterest-bearing liabilities |
1,177,999 |
1,132,123 |
||||||||||
Shareholders' equity |
596,429 |
509,645 |
||||||||||
Total Liabilities and Shareholders' Equity |
$ 5,004,931 |
$ 4,853,372 |
||||||||||
Tax Equivalent Net Interest Income and Margin (3) |
193,452 |
4.22% |
199,660 |
4.55% |
||||||||
Non-GAAP to GAAP Reconciliation: |
||||||||||||
Tax Equivalent Adjustment: |
||||||||||||
Loans |
97 |
92 |
||||||||||
Securities |
1,646 |
1,484 |
||||||||||
Total tax equivalent adjustment |
1,743 |
1,576 |
||||||||||
Net Interest Income |
$ 191,709 |
$ 198,084 |
||||||||||
STERLING BANCSHARES, INC. SELECTED FINANCIAL INFORMATION (Unaudited) |
||||||||||
(dollars in thousands) |
||||||||||
Page 9 |
||||||||||
Quarter Ended |
||||||||||
Dec. 31, |
Sep. 30, |
Jun. 30, |
Mar. 31, |
Dec. 31, |
||||||
2009 |
2009 |
2009 |
2009 |
2008 |
||||||
Condensed Average Balance Sheet |
||||||||||
Loans held for sale |
$ 38,844 |
$ 1,607 |
$ 2,714 |
$ 1,876 |
$ 684 |
|||||
Loans held for investment |
3,262,525 |
3,472,635 |
3,639,453 |
3,780,147 |
3,795,340 |
|||||
Total loans |
3,301,369 |
3,474,242 |
3,642,167 |
3,782,023 |
3,796,024 |
|||||
Available-for-sale securities, at fair value |
897,733 |
779,792 |
689,541 |
635,423 |
573,073 |
|||||
Held-to-maturity securities, at amortized cost |
168,940 |
162,717 |
168,155 |
171,245 |
173,584 |
|||||
Deposits in financial institutions |
163,195 |
106,392 |
281 |
257 |
273 |
|||||
Other interest-earning assets |
26,825 |
38,419 |
39,534 |
9,740 |
4,093 |
|||||
Total interest-earning assets |
4,558,062 |
4,561,562 |
4,539,678 |
4,598,688 |
4,547,047 |
|||||
Goodwill |
173,210 |
173,210 |
173,210 |
173,210 |
173,210 |
|||||
Core deposits and other intangibles, net |
11,890 |
12,463 |
13,028 |
13,587 |
14,158 |
|||||
All other noninterest-earning assets |
236,710 |
230,667 |
265,404 |
286,454 |
301,516 |
|||||
Total assets |
$ 4,979,872 |
$ 4,977,902 |
$ 4,991,320 |
$ 5,071,939 |
$ 5,035,931 |
|||||
Noninterest-bearing demand deposits |
$ 1,158,023 |
$ 1,124,076 |
$ 1,117,335 |
$ 1,130,230 |
$ 1,116,607 |
|||||
Interest-bearing deposits: |
||||||||||
Interest-bearing demand deposits |
1,946,308 |
1,837,612 |
1,674,468 |
1,565,770 |
1,407,482 |
|||||
Jumbo certificates of deposits |
576,984 |
614,418 |
658,983 |
651,798 |
634,499 |
|||||
Regular certificates of deposit |
264,388 |
287,243 |
308,842 |
306,686 |
306,224 |
|||||
Brokered certificates of deposit |
166,319 |
182,852 |
207,609 |
195,936 |
162,654 |
|||||
Total deposits |
4,112,022 |
4,046,201 |
3,967,237 |
3,850,420 |
3,627,466 |
|||||
Other borrowed funds |
107,211 |
145,625 |
216,342 |
365,408 |
667,933 |
|||||
Subordinated debt |
77,824 |
77,232 |
77,701 |
77,820 |
75,354 |
|||||
Junior subordinated debt |
82,734 |
82,734 |
82,734 |
82,734 |
82,734 |
|||||
Accrued interest payable and other liabilities |
46,348 |
48,480 |
41,548 |
45,698 |
44,340 |
|||||
Total liabilities |
4,426,139 |
4,400,272 |
4,385,562 |
4,422,080 |
4,497,827 |
|||||
Common equity |
553,733 |
577,630 |
561,540 |
531,736 |
510,965 |
|||||
Preferred equity |
- |
- |
44,218 |
118,123 |
27,139 |
|||||
Total shareholders' equity |
553,733 |
577,630 |
605,758 |
649,859 |
538,104 |
|||||
Total liabilities and shareholders' equity |
$ 4,979,872 |
$ 4,977,902 |
$ 4,991,320 |
$ 5,071,939 |
$ 5,035,931 |
|||||
Dec. 31, |
Sep. 30, |
Jun. 30, |
Mar. 31, |
Dec. 31, |
||||||
2009 |
2009 |
2009 |
2009 |
2008 |
||||||
Period-end Loans: |
||||||||||
Loans held for sale |
$ 11,778 |
$ 38,187 |
$ 1,642 |
$ 1,395 |
$ 1,524 |
|||||
Loans held for investment: |
||||||||||
Commercial and industrial |
806,542 |
823,797 |
930,445 |
1,060,572 |
1,107,519 |
|||||
Real Estate: |
||||||||||
Commercial |
1,669,118 |
1,703,629 |
1,768,824 |
1,788,488 |
1,765,843 |
|||||
Construction and development |
360,444 |
394,819 |
458,386 |
499,262 |
545,303 |
|||||
Residential mortgage |
344,838 |
335,007 |
323,520 |
320,021 |
309,665 |
|||||
Consumer/other |
52,331 |
55,268 |
56,046 |
59,025 |
63,960 |
|||||
Loans held for investment |
3,233,273 |
3,312,520 |
3,537,221 |
3,727,368 |
3,792,290 |
|||||
Total period-end loans |
$ 3,245,051 |
$ 3,350,707 |
$ 3,538,863 |
$ 3,728,763 |
$ 3,793,814 |
|||||
Period-End Deposits: |
||||||||||
Noninterest-bearing demand |
$ 1,144,133 |
$ 1,094,346 |
$ 1,127,717 |
$ 1,173,745 |
$ 1,123,746 |
|||||
Interest-bearing demand |
2,004,539 |
1,874,746 |
1,670,437 |
1,586,754 |
1,523,969 |
|||||
Certificates and other time deposits: |
||||||||||
Jumbo |
549,588 |
594,590 |
644,965 |
666,722 |
660,427 |
|||||
Regular |
252,682 |
273,721 |
306,988 |
301,047 |
317,719 |
|||||
Brokered |
144,009 |
170,051 |
208,128 |
206,189 |
193,276 |
|||||
Total period-end deposits |
$ 4,094,951 |
$ 4,007,454 |
$ 3,958,235 |
$ 3,934,457 |
$ 3,819,137 |
|||||
STERLING BANCSHARES, INC. SELECTED FINANCIAL INFORMATION (Unaudited) |
||||||||||||||
(dollars in thousands) |
||||||||||||||
Page 10 |
||||||||||||||
Quarter Ended |
Year-to-date |
|||||||||||||
Dec. 31, |
Sep. 30, |
Jun. 30, |
Mar. 31, |
Dec. 31, |
||||||||||
2009 |
2009 |
2009 |
2009 |
2008 |
2009 |
2008 |
||||||||
Allowance For Credit Losses |
||||||||||||||
Allowance for loan losses at beginning of period |
$ 70,059 |
$ 53,075 |
$ 56,703 |
$ 49,177 |
$ 45,222 |
$ 49,177 |
$ 34,446 |
|||||||
Charge-offs: |
||||||||||||||
Commercial, financial and industrial |
1,536 |
5,049 |
13,523 |
1,960 |
1,764 |
22,068 |
9,408 |
|||||||
Real estate, mortgage and construction |
5,448 |
32,464 |
1,903 |
438 |
1,629 |
40,253 |
5,241 |
|||||||
Consumer |
477 |
321 |
331 |
460 |
648 |
1,589 |
1,959 |
|||||||
Total charge-offs |
7,461 |
37,834 |
15,757 |
2,858 |
4,041 |
63,910 |
16,608 |
|||||||
Recoveries: |
||||||||||||||
Commercial, financial and industrial |
536 |
251 |
286 |
640 |
286 |
1,713 |
1,392 |
|||||||
Real estate, mortgage and construction |
488 |
23 |
180 |
98 |
5 |
789 |
117 |
|||||||
Consumer |
110 |
163 |
163 |
94 |
205 |
530 |
640 |
|||||||
Total recoveries |
1,134 |
437 |
629 |
832 |
496 |
3,032 |
2,149 |
|||||||
Net charge-offs |
6,327 |
37,397 |
15,128 |
2,026 |
3,545 |
60,878 |
14,459 |
|||||||
Provision for loan losses |
11,000 |
54,381 |
11,500 |
9,552 |
7,500 |
86,433 |
29,190 |
|||||||
Allowance for loan losses at end of period |
$ 74,732 |
$ 70,059 |
$ 53,075 |
$ 56,703 |
$ 49,177 |
$ 74,732 |
$ 49,177 |
|||||||
Allowance for unfunded loan commitments at beginning of period |
2,852 |
1,102 |
1,102 |
1,654 |
1,654 |
1,654 |
927 |
|||||||
Provision for losses on unfunded loan commitments |
- |
1,750 |
- |
(552) |
- |
1,198 |
727 |
|||||||
Allowance for unfunded loan commitments at end of period |
2,852 |
2,852 |
1,102 |
1,102 |
1,654 |
2,852 |
1,654 |
|||||||
Total allowance for credit losses |
$ 77,584 |
$ 72,911 |
$ 54,177 |
$ 57,805 |
$ 50,831 |
$ 77,584 |
$ 50,831 |
|||||||
Nonperforming Assets |
||||||||||||||
Nonperforming loans: |
||||||||||||||
Loans held for sale |
$ 9,896 |
$ 29,472 |
$ - |
$ - |
$ - |
$ 9,896 |
$ - |
|||||||
Loans held for investment |
92,668 |
65,515 |
114,069 |
102,450 |
87,491 |
92,668 |
87,491 |
|||||||
Real estate acquired by foreclosure |
16,763 |
11,674 |
8,095 |
8,144 |
5,625 |
16,763 |
5,625 |
|||||||
Other repossessed assets |
38 |
33 |
419 |
144 |
154 |
38 |
154 |
|||||||
Total nonperforming assets |
$ 119,365 |
$ 106,694 |
$ 122,583 |
$ 110,738 |
$ 93,270 |
$ 119,365 |
$ 93,270 |
|||||||
Restructured loans - accruing |
$ 69,857 |
$ 45,981 |
$ 2,828 |
$ - |
$ - |
$ 69,857 |
$ - |
|||||||
Accruing loans 30 to 89 days past due |
$ 34,243 |
$ 23,364 |
$ 30,131 |
$ 26,640 |
$ 30,492 |
$ 34,243 |
$ 30,492 |
|||||||
Accruing loans past due 90 days or more |
$ 41 |
$ 681 |
$ 2,112 |
$ 7,464 |
$ 8,448 |
$ 41 |
$ 8,448 |
|||||||
Ratios |
||||||||||||||
Period-end allowance for credit losses to period-end loans |
2.39% |
2.18% |
1.53% |
1.55% |
1.34% |
2.39% |
1.34% |
|||||||
Period-end allowance for loan losses to period-end loans |
2.30% |
2.09% |
1.50% |
1.52% |
1.30% |
2.30% |
1.30% |
|||||||
Period-end allowance for loan losses to nonperforming loans |
72.86% |
73.76% |
46.53% |
55.35% |
56.21% |
72.86% |
56.21% |
|||||||
Nonperforming loans to period-end loans |
3.16% |
2.83% |
3.22% |
2.75% |
2.31% |
3.16% |
2.31% |
|||||||
Nonperforming assets to period-end assets |
2.42% |
2.20% |
2.50% |
2.18% |
1.84% |
2.42% |
1.84% |
|||||||
Net charge-offs to average loans (2) |
0.76% |
4.27% |
1.67% |
0.22% |
0.37% |
1.72% |
0.40% |
|||||||
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, hurricane related 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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