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Sterling Bancorp Reports FY 2006 Financial ResultsGross Revenue, Loans and Deposits Achieve Yearly Records
NEW YORK, Feb. 9 /PRNewswire-FirstCall/ -- Sterling Bancorp (NYSE: STL) , a financial holding company and the parent company of Sterling National Bank, today reported its financial results for the fiscal year and fourth quarter ended December 31, 2006. 2006 Highlights:
* Gross revenue from continuing operations (interest income plus
noninterest income) rose 10.6% year over year to a record $150.2
million.
* Loans held in portfolio as of December 31, 2006 were a record $1,112.6
million; up 12.7% from average loans held in portfolio in 2005.
* Total deposits as of December 31, 2006 were a record $1,522.0 million;
up 5.1% from the prior year.
* Demand deposits as of December 31, 2006 were a record $546.4 million,
representing 35.9% of total deposits.
* Net interest margin was 4.64% for the year 2006.
* Opened branches in Jamaica, Queens and Woodbury, Long Island
* Successfully completed the Sterling Resource Funding Corp. acquisition,
expanding our position in the growing staffing industry
* Divested Sterling Financial Services, increasing liquidity and enabling
the redeployment of resources in higher growth businesses
"In 2006, the persistently flat or inverted yield curve and higher funding costs created a challenging operating environment across the banking industry. Against this difficult backdrop, Sterling built on its core businesses and reported record levels of gross revenue, loans and deposits for the year, while maintaining one of the highest net interest rate margins in the sector. We used monthly cash flows from the investment portfolio to fund loan growth and to reduce wholesale borrowings and interest rate risk on our balance sheet," said Louis J. Cappelli, Chairman and Chief Executive Officer. "The Sterling Resource Funding Corp. acquisition in 2006 expanded our growing commercial lending activities, enhanced our product offerings and extended our geographic scope, while increasing our penetration of the vibrant and growing staffing industry," continued Chairman Cappelli. "Another key initiative this year was the strategic divestiture of the business of Sterling Financial Services. The proceeds, in excess of $100 million, enabled us to pay down borrowings, redeploy resources into higher growth businesses and reduce operating expenses. While maintaining our high level of customer service, our disciplined focus on noninterest expenses produced only a 2.5% increase for the year, after eliminating the impact of the Sterling Resource Funding acquisition and the divestiture of Sterling Financial Services." "Sterling's business model focuses on fulfilling the needs of small and mid-sized businesses and individuals by delivering customized financial products and outstanding services," concluded Chairman Cappelli. "In 2006, we took steps to position the company for continued success and to reinforce our commitment to enhancing shareholder value. This commitment is reflected in our focus on dividends, which currently provide a yield of approximately 4%. Sterling's 61-year record of dividend payments, over 244 consecutive quarters, is one of the longest among publicly listed companies." FY 2006 and Fourth Quarter Financial Results from Continuing Operations Net Income Net income, after income taxes, for the fiscal year ended December 31, 2006, was $21.0 million, compared to $23.5 million for the fiscal year ended December 31, 2005. Diluted income per share, after income taxes, for the fiscal year ended December 31, 2006, was $1.09, compared to $1.19 for the fiscal year ended December 31, 2005. Net income, after income taxes, for the fourth quarter of 2006 was $4.1 million, compared to $6.3 million for the fourth quarter of 2005. Diluted income per share, after income taxes, for the quarter ended December 31, 2006, was $0.21, compared to $0.33 for the fourth quarter of 2005. Net Interest Income For the fiscal year ended December 31, 2006, net interest income, on a tax-equivalent basis, was $75.3 million, compared to $76.1 million for 2005. For the fiscal year ended December 31, 2006, net interest margin, on a tax-equivalent basis, was 4.64%, compared to 4.76% for 2005. Total interest income for the fiscal year ended December 31, 2006 was $116.6 million, up 14.4% from 2005. The increase was a result of an improved yield on loans and higher average loan balances, partially offset by a reduction in average balances in the investment portfolio. Total interest expense for the fiscal year ended December 31, 2006, was $42.0 million, compared to $26.5 million for 2005. The increase was driven principally by the higher interest-rate environment in 2006. In the fourth quarter of 2006, net interest income, on a tax-equivalent basis, was $18.7 million, compared to $19.6 million in the fourth quarter of 2005. Net interest margin for the fourth quarter of 2006, on a tax-equivalent basis, was 4.41%, compared to 4.61% for the fourth quarter of 2005. Total interest income for the fourth quarter of 2006 was $30.2 million, up 11.0% from the fourth quarter of 2005. The increase was a result of an improved yield on loans and higher average loan balances, partially offset by a reduction in average balances in the investment portfolio. Total interest expense for the fourth quarter of 2006 was $11.7 million, compared to $7.8 million in the fourth quarter of 2005. Sterling's cost of total deposits continued to be among the best in the industry, at 2.44% for the fourth quarter of 2006 Loans Period-end loans held in portfolio, net of unearned discount, grew to a record $1,112.6 million, from $1,012.1 million at December 31, 2005. Demand Deposits As of December 31, 2006, demand deposits were a record $546.4 million -- 35.9% of total deposits -- continuing Sterling's history of maintaining one of the highest ratios of demand to total deposits in the industry. Noninterest Income and Noninterest Expenses Noninterest income for the fiscal year ended December 31, 2006 was $33.7 million, compared to $34.0 million for the prior year. Increased revenue from customer-related service charges and fees, primarily due to revenues attributable to the Sterling Resource Funding Corp acquisition, were more than offset by lower revenues from mortgage-banking activities and bank-owned life insurance, coupled with higher losses from sales of available for sale securities. The decrease in mortgage-banking income was principally due to continued industry-wide yield compression, changes in the product mix of loans sold and a reduction in volume, primarily attributable to a re-engineering of the mortgage business toward more profitable Alt-A products and away from the less profitable wholesale business. For the fourth quarter of 2006, noninterest income was $9.6 million, a 23.7% increase from $7.8 million for the fourth quarter of 2005. Higher customer-related service charges and fees were primarily due to revenues attributable to the Sterling Resource Funding Corp. acquisition. Partially offsetting that increase was a decrease in mortgage-banking income principally due to the same factors discussed above. For the fiscal year ended December 31, 2006, noninterest expenses were $77.4 million, compared to $67.7 million for fiscal year 2005. The increase was primarily due to investments in the Sterling franchise, including the new branches and the Sterling Resource Funding Corp. acquisition, with higher expenses related to salaries, equipment and occupancy costs. Noninterest expenses for the quarter ended December 31, 2006, were $20.6 million, compared to $17.0 million for the corresponding period of 2005. Provision for Income Taxes The provision for income taxes for the fiscal year 2006 was $5.4 million, a decrease of $7.7 million from the prior year. The decrease was primarily due to a $3.7 million recapture (during the first quarter of 2006) of reserves for state and local taxes, net of federal tax effect, resulting from the resolution of certain state tax issues in the first quarter of 2006; a $0.6 million recapture (during the third quarter of 2006) of reserves for state and local taxes, net of federal tax effect, resulting from the closure of certain years for local tax purposes in the third quarter of 2006; and the lower level of pre-tax income for 2006. The provision for income taxes was $2.2 million for the fourth quarter of 2006, compared to $2.8 million for the corresponding period of 2005. The decrease was primarily due to the lower level of pre-tax income in the 2006 period. Asset Quality The allowance for loan losses as of December 31, 2006, was $16.3 million, or 1.46% of loans held in portfolio, compared to $15.4 million, or 1.52% of loans held in portfolio, as of December 31, 2005. As of December 31, 2006, nonperforming assets were $8.1 million, representing 0.43% of total assets. Dividend On December 31, 2006, Sterling paid a cash dividend of $0.19 per common share to shareholders of record as of December 15, 2006. The Company has distributed cash dividends for over 60 years, or 244 consecutive quarters. At current prices, the Company's dividend yield is approximately 4.0%. Conference Call Sterling Bancorp will host a teleconference call for the financial community on February 9, 2007 at 10:00 a.m. Eastern Time to discuss the fiscal year and fourth quarter 2006 financial results. The public is invited to listen to this conference call by dialing 866-814-1917 at least 10 minutes prior to the call and entering pass code 1039713. A replay of the conference call will be available at 1:00 p.m. Eastern Time on February 9, 2007 until 11:59 p.m. Eastern Time on Friday, February 23, 2007. The public is invited to listen to this conference call by dialing 888-266-2081 and entering pass code 1039713. About Sterling Bancorp Sterling Bancorp (NYSE: STL) is a financial holding company with assets of $1.9 billion, offering a broad array of banking and financial services products. Its principal banking subsidiary is Sterling National Bank, founded in 1929. Sterling provides a wide range of products and services, including business and consumer loans, commercial and residential mortgage lending and brokerage, asset-based financing, factoring and accounts receivable management, trade financing, equipment leasing, corporate and consumer deposit services, trust and estate administration, and investment management services. The Company has operations in New York, New Jersey, Virginia and North Carolina and conducts business throughout the U.S. Certain statements in this press release, including but not limited to, statements as to future liquidity, redeployment of resources into higher growth businesses, future interest rate risk and operating expenses and steps taken to position the Company for continued success, statements concerning future results of operations or financial position, and plans and objectives for future operations, and other statements regarding matters that are not historical facts, are "forward-looking statements" as defined in the Securities Exchange Act of 1934. These statements are not historical facts but instead are subject to numerous assumptions, risks and uncertainties, and represent only the Company's belief regarding future events, many of which, by their nature, are inherently uncertain and outside its control. Any forward- looking statements the Company may make speak only as of the date on which such statements are made. The Company's actual results and financial position may differ materially from the anticipated results and financial condition indicated in or implied by these forward-looking statements. For a discussion of some of the risks and important factors that could affect the Company's future results and financial condition, see "Management's Discussion and Analysis of Financial Condition and Results of Operations - Forward-Looking Statements and Factors That Could Affect Future Results" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2005. STERLING BANCORP
Consolidated Financial Highlights
(Unaudited)
(dollars and shares in thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2006 2005 2006 2005
OPERATING HIGHLIGHTS (1)
Interest income $30,249 $27,249 $116,586 $101,888
Interest expense 11,701 7,828 42,021 26,463
Provision for loan losses 1,250 1,002 4,503 5,214
Noninterest income 9,617 7,777 33,658 34,016
Noninterest expenses 20,572 17,036 77,355 67,654
Income from continuing
operations, after income taxes 4,109 6,316 20,998 23,463
(Loss)/income from discontinued
operations, net of income taxes (192) (386) (603) 564
Loss from sale, net of taxes (31) 0 (9,635) 0
Net income 3,886 5,930 10,760 24,027
Income from continuing
operations, after income taxes,
per average common share:
Basic 0.22 0.33 1.12 1.22
Diluted 0.21 0.33 1.09 1.19
Net income per average common
share:
Basic 0.20 0.31 0.57 1.25
Diluted 0.20 0.31 0.56 1.22
Cash dividends declared 0.19 0.19 0.76 0.73
Common shares outstanding:
Period end 18,605 18,835 18,605 18,835
Average Basic 18,685 19,055 18,735 19,164
Average Diluted 19,193 19,622 19,265 19,763
Return on average assets (2) 0.86% 1.33% 1.13% 1.29%
Return on average tangible equity
(3) 14.13% 19.69% 17.43% 18.23%
Return on average stated equity
(4) 11.80% 16.88% 14.67% 15.66%
Net interest spread, tax-
equivalent basis 3.39% 3.87% 3.69% 4.09%
Net interest margin, tax-
equivalent basis 4.41% 4.61% 4.64% 4.76%
ASSET QUALITY HIGHLIGHTS (1)
Period End
Net charge-offs $1,487 $1,135 $4,774 $4,187
Nonperforming loans 5,861 3,857 5,861 3,857
Other real estate owned 2,243 860 2,243 860
Nonperforming assets 8,104 4,717 8,104 4,717
Nonperforming loans/loans (5) 0.51% 0.37% 0.51% 0.37%
Nonperforming assets/assets 0.43% 0.24% 0.43% 0.24%
Allowance for loan losses/loans
(6) 1.46% 1.52% 1.46% 1.52%
Allowance for loan losses/
nonperforming loans 277.90% 398.47% 277.90% 398.47%
(1) Unless otherwise indicated, all amounts and ratios are presented based
on continuing operations.
(2) Calculated by dividing income from continuing operations by average
assets from continuing operations.
(3) Average tangible equity represents average shareholders' equity less
average goodwill. Calculated by dividing income from continuing
operations by average tangible equity.
(4) Average stated equity is equal to average shareholders' equity.
Calculated by dividing income from continuing operations by average
stated equity.
(5) The term "loans" includes loans held for sale and loans held in
portfolio.
(6) The term "loans" includes loans held in portfolio only.
STERLING BANCORP
Consolidated Financial Highlights
(Unaudited)
(dollars in thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2006 2005 2006 2005
BALANCE SHEET HIGHLIGHTS
Period End Balances (1)
Investment securities $569,324 $715,299 $569,324 $715,299
Loans held for sale 33,320 40,977 33,320 40,977
Loans held in portfolio,
net of unearned discount 1,112,602 1,012,057 1,112,602 1,012,057
Total earning assets 1,736,507 1,769,545 1,736,507 1,769,545
Allowance for loan losses 16,288 15,369 16,288 15,369
Total assets from
continuing operations 1,882,147 1,939,792 1,882,147 1,939,792
Total assets 1,885,005 2,056,042 1,885,005 2,056,042
Demand deposits 546,442 510,884 546,442 510,884
Savings, NOW and money
market deposits 447,601 436,173 447,601 436,173
Time deposits 527,987 501,269 527,987 501,269
Customer repurchase
agreements 52,803 61,067 52,803 61,067
Shareholders' equity (2) 132,385 147,587 132,385 147,587
Average Balances (1)
Investment securities $592,262 $708,133 $647,602 $713,629
Loans held for sale 38,340 56,340 40,992 53,948
Loans held in portfolio,
net of unearned discount 1,078,947 949,712 1,002,688 890,085
Total earning assets 1,721,618 1,719,949 1,697,947 1,671,688
Total assets from
continuing operations 1,892,543 1,877,715 1,859,330 1,820,404
Total assets 1,901,126 1,988,160 1,944,776 1,931,101
Demand deposits 448,147 466,293 439,064 452,632
Savings, NOW and money
market deposits 447,387 450,698 434,167 416,614
Time deposits 536,175 522,331 517,166 520,051
Customer repurchase
agreements 94,305 81,878 86,418 85,365
Shareholders' equity (2) 138,201 148,448 143,178 149,836
Capital Ratios (2)
Tier 1 risk based 11.48% 12.03% 11.48% 12.03%
Total risk based 12.73% 13.28% 12.73% 13.28%
Leverage 7.82% 7.96% 7.82% 7.96%
Book value per common share (2) $7.12 $7.84 $7.12 $7.84
(1) Unless otherwise indicated, all amounts and ratios are presented based
on continuing operations.
(2) Includes the effects of discontinued operations.
STERLING BANCORP
Consolidated Balance Sheets
(Unaudited)
(in thousands, except number of shares)
December 31,
2006 2005
ASSETS
Cash and due from banks $48,863 $68,562
Interest-bearing deposits with
other banks 1,261 1,212
Federal Funds Sold 20,000 0
Investment securities
Available for sale (at
estimated market value) 148,421 201,259
Held to maturity (at cost) 420,903 514,040
Total investment
securities 569,324 715,299
Loans held for sale 33,320 40,977
Loans held in portfolio, net of
unearned discounts 1,112,602 1,012,057
Less allowance for loan losses 16,288 15,369
Loans, net 1,096,314 996,688
Customers' liability under
acceptances 98 590
Goodwill 22,862 21,158
Premises and equipment, net 11,324 10,856
Other real estate 2,243 860
Accrued interest receivable 5,845 6,116
Bank owned life insurance 27,949 26,964
Other assets 42,744 50,510
Total assets from
continuing operations 1,882,147 1,939,792
Assets - discontinued operations 2,858 116,250
$1,885,005 $2,056,042
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Demand $546,442 $510,884
Savings, NOW and money market 447,601 436,173
Time 527,987 501,269
Total deposits 1,522,030 1,448,326
Securities sold under agreements to
repurchase - customers 52,803 61,067
Securities sold under agreements to
repurchase - dealers 0 88,729
Federal funds purchased 0 55,000
Commercial paper 27,562 38,191
Short-term borrowings - FHLB 0 35,000
Short-term borrowings - other 3,412 3,851
Long-term borrowings - FHLB 20,000 60,000
Long-term borrowings - subordinated
debentures 25,774 25,774
Acceptances outstanding 98 590
Accrued expenses and other
liabilities 100,605 91,450
Liabilities - discontinued
operations 336 477
Total liabilities 1,752,620 1,908,455
Shareholders' equity 132,385 147,587
$1,885,005 $2,056,042
MEMORANDA
Available for sale securities -
amortized cost $152,195 $205,418
Held to maturity securities -
estimated market value 411,651 504,514
Shares outstanding
Common issued 21,177,084 21,066,916
Common in treasury 2,572,368 2,231,442
STERLING BANCORP
Consolidated Statements of Income
(Unaudited)
(dollars in thousands, except per share data)
Three Months Ended Twelve Months
December 31, Ended December 31,
2006 2005 2006 2005
INTEREST INCOME
Loans $23,313 $19,317 $86,882 $69,788
Investment securities - available for
sale 1,828 2,268 7,909 9,546
Investment securities - held to
maturity 4,970 5,611 21,496 22,180
Federal funds sold 108 26 196 309
Deposits with other banks 30 27 103 65
Total interest income 30,249 27,249 116,586 101,888
INTEREST EXPENSE
Savings, NOW and money market deposits 2,722 1,567 8,584 4,145
Time deposits 6,081 4,077 20,427 13,990
Securities sold u/a/r - customers 1,065 605 3,501 1,907
Securities sold u/a/r - dealers 297 607 3,739 1,794
Federal funds purchased 78 260 769 647
Commercial paper 467 353 2,020 973
Short-term borrowings - FHLB 235 96 1,796 203
Short-term borrowings - other 7 8 30 25
Long-term borrowings - FHLB 225 689 1,569 3,331
Long-term subordinated debentures 524 524 2,094 2,094
Total interest expense 11,701 8,786 44,529 29,109
Interest expense allocated to
discontinued operations 0 (958) (2,508) (2,646)
Total interest expense-
continuing operations 11,701 7,828 42,021 26,463
Net interest income 18,548 19,421 74,565 75,425
Provision for loan losses 1,250 1,002 4,503 5,214
Net interest income after provision
for loan losses 17,298 18,419 70,062 70,211
NONINTEREST INCOME
Customer related service charges and
fees 6,475 3,692 22,347 14,649
Mortgage banking income 2,581 3,398 9,696 16,433
Trust fees 154 170 591 643
Bank owned life insurance income 272 255 985 1,402
Securities gains/(losses) 2 140 (443) 337
Other income 133 122 482 552
Total noninterest income 9,617 7,777 33,658 34,016
NONINTEREST EXPENSES
Salaries 9,193 6,615 34,766 29,647
Employee benefits 2,292 3,251 10,358 9,601
Total personnel expense 11,485 9,866 45,124 39,248
Occupancy and equipment expenses, net 2,567 2,103 9,899 8,633
Advertising and marketing 1,075 808 3,855 3,768
Professional fees 2,318 2,077 6,454 5,644
Communications 491 327 1,823 1,473
Other expenses 2,636 1,855 10,200 8,888
Total noninterest expenses 20,572 17,036 77,355 67,654
Income from continuing operations
before
income taxes 6,343 9,160 26,365 36,573
Provision for income taxes 2,234 2,844 5,367 13,110
Income from continuing operations 4,109 6,316 20,998 23,463
(Loss)/Income from discontinued
operations,
net of tax (192) (386) (603) 564
Loss on sale of discontinued
operations,
net of tax (31) 0 (9,635) 0
Net income $3,886 $5,930 $10,760 $24,027
STERLING BANCORP
Consolidated Statements of Income
(Unaudited)
(dollars in thousands, except per share data)
(continued)
Three Months Ended Twelve Months Ended
December 31, December 31,
2006 2005 2006 2005
Average number of common
shares outstanding
Basic 18,685,233 19,055,354 18,734,610 19,164,498
Diluted 19,192,559 19,621,935 19,265,093 19,763,352
Net income per average
common share
Basic $0.20 $0.31 $0.57 $1.25
Diluted 0.20 0.31 0.56 1.22
Income from continuing
operations, per average common
share
Basic 0.22 0.33 1.12 1.22
Diluted 0.21 0.33 1.09 1.19
Dividends per common share 0.19 0.19 0.76 0.73
STERLING BANCORP
Consolidated Statements of Comprehensive Income
(Unaudited)
(in thousands)
Three Months
Ended Twelve Months
December 31, Ended December 31,
2006 2005 2006 2005
Net income $3,886 $5,930 $10,760 $24,027
Other comprehensive (loss)/ income, net
of tax:
Unrealized holding
gains/(losses)arising
during the period 284 (526) (56) (2,645)
Less:
Reclassification adjustment for
losses/ (gains) included in net
income (1) (75) 243 (182)
Minimum pension liability adjustment
pursuant to FASB 87 (5,005) (482) (5,013) (482)
Additional pension liability recorded
upon adoption of FASB 158 (2,254) 0 (2,254) 0
Comprehensive income $(3,090) $4,847 $3,680 $20,718
STERLING BANCORP
Consolidated Statements of Changes in Shareholders' Equity
(Unaudited)
(in thousands)
Three Months Ended Twelve Months Ended
December 31, December 31,
2006 2005 2006 2005
Balance, at beginning of period $141,014 $153,451 $147,587 $148,704
Net income for period 3,886 5,930 10,760 24,027
Common shares issued under stock
incentive plan and related tax
benefits 22 251 1,757 4,297
Purchase of common shares for
treasury (2,021) (7,184) (5,831) (10,507)
Capital stock split-cash in lieu 0 (25) 0 (25)
Cash dividends-Common shares (3,540) (3,591) (14,216) (14,035)
Surrender of shares issued under
incentive compensation plan 0 (228) (614) (1,834)
Amortization of unearned
compensation 0 66 22 269
Change in net unrealized holding
gains/(losses) on available for
sale securities 284 (526) (56) (2,645)
Reclassification adjustment for
losses/(gains) included in net
income (1) (75) 243 (182)
Minimum pension liability
adjustment pursuant to FASB 87 (5,005) (482) (5,013) (482)
Additional pension liability
recorded upon adoption of FASB 158 (2,254) 0 (2,254) 0
Balance, at end of period $132,385 $147,587 $132,385 $147,587
STERLING BANCORP
Average Balance Sheets [1]
(Unaudited)
(dollars in thousands)
Three Months Ended
December 31, 2006
AVERAGE AVERAGE
BALANCE INTEREST RATE
Assets
Interest-bearing
deposits with other
banks $3,319 $30 3.58%
Investment securities
- available for sale 133,622 1,610 4.82
Investment securities
- held to maturity 436,056 4,970 4.56
Investment securities
- tax exempt [2] 22,584 359 6.31
Total investment
securities 592,262 6,939 4.68
Federal funds sold 8,750 108 4.83
Loans, net of
unearned discount
[3] 1,117,287 23,313 8.75
Total Interest-Earning
Assets [2] 1,721,618 30,390 7.25%
Cash and due from
banks 73,005
Allowance for loan
losses (17,193)
Goodwill 22,843
Other 92,270
Assets - discontinued
operations 8,583
Total Assets $1,901,126
Liabilities and
Shareholders' Equity
Interest-bearing
deposits
Domestic
Savings $20,363 25 0.49%
NOW 220,863 1,265 2.27
Money market 206,161 1,432 2.76
Time 534,389 6,076 4.51
Foreign
Time 1,786 5 1.02
Total Interest-Bearing
Deposits 983,562 8,803 3.55
Borrowings
Securities sold
u/a/r - customers 94,305 1,065 4.48
Securities sold
u/a/r - dealers 21,897 297 5.39
Federal funds
purchased 5,761 78 5.26
Commercial paper 36,568 467 5.06
Short-term
borrowings - FHLB 17,174 235 5.44
Short-term
borrowings - other 571 7 5.06
Long-term
borrowings - FHLB 20,000 225 4.49
Long-term
borrowings - sub
debt 25,774 524 8.38
Total Borrowings 222,050 2,898 5.20
Interest-bearing
liabilities allocated
to discontinued
operations 0 0 0.00
Total Interest-Bearing
Liabilities 1,205,612 11,701 3.86%
Noninterest-bearing
demand deposits 448,147
Other liabilities 107,626
Liabilities -
discontinued
operations 1,540
Total Liabilities 1,762,925
Shareholders' equity 138,201
Total Liabilities and
Shareholders' Equity $1,901,126
Net interest
income/spread [2] 18,689 3.39%
Net yield on interest-
earning assets 4.41%
Less: Tax-equivalent
adjustment 141
Net interest income $18,548
Three Months Ended
December 31, 2005
AVERAGE AVERAGE
BALANCE INTEREST RATE
Assets
Interest-bearing deposits with
other banks $3,155 $27 2.68%
Investment securities - available
for sale 177,889 1,983 4.46
Investment securities - held to
maturity 502,159 5,611 4.47
Investment securities - tax exempt
[2] 28,085 467 6.59
Total investment securities 708,133 8,061 4.55
Federal funds sold 2,609 26 3.82
Loans, net of unearned discount
[3] 1,006,052 19,317 8.02
Total Interest-Earning Assets [2] 1,719,949 27,431 6.51%
Cash and due from banks 69,231
Allowance for loan losses (16,000)
Goodwill 21,158
Other 83,377
Assets - discontinued operations 110,445
Total Assets $1,988,160
Liabilities and Shareholders' Equity
Interest-bearing deposits
Domestic
Savings $26,866 28 0.41%
NOW 202,782 836 1.64
Money market 221,050 703 1.26
Time 519,311 4,069 3.11
Foreign
Time 3,020 8 1.09
Total Interest-Bearing Deposits 973,029 5,644 2.30
Borrowings
Securities sold u/a/r - customers 81,878 605 2.93
Securities sold u/a/r - dealers 58,020 607 4.15
Federal funds purchased 24,674 260 4.17
Commercial paper 42,017 353 3.34
Short-term borrowings - FHLB 8,533 96 4.43
Short-term borrowings - other 813 8 4.06
Long-term borrowings - FHLB 64,239 689 4.29
Long-term borrowings - sub debt 25,774 524 8.38
Total Borrowings 305,948 3,142 4.09
Interest-bearing liabilities
allocated to discontinued operations (98,474) (958) 3.81
Total Interest-Bearing Liabilities 1,180,503 7,828 2.64%
Noninterest-bearing demand deposits 466,293
Other liabilities 93,988
Liabilities - discontinued operations 98,928
Total Liabilities 1,839,712
Shareholders' equity 148,448
Total Liabilities and Shareholders'
Equity $1,988,160
Net interest income/spread [2] 19,603 3.87%
Net yield on interest-earning assets 4.61%
Less: Tax-equivalent adjustment 182
Net interest income $19,421
[1] The average balances of assets, liabilities and shareholders' equity
are computed on the basis of daily averages. Average rates are
presented on a tax-equivalent basis. Certain reclassifications have
been made to prior period amounts to conform to current presentation.
[2] Interest and/or average rates are presented on a tax-equivalent basis.
[3] Includes loans held for sale and loans held in portfolio; all loans
are domestic. Nonaccrual loans are included in amounts outstanding
and income has been included to the extent earned.
STERLING BANCORP
Average Balance Sheets [1]
(Unaudited)
(dollars in thousands)
Twelve Months Ended
December 31, 2006
AVERAGE AVERAGE
BALANCE INTEREST RATE
Assets
Interest-bearing
deposits with other
banks $2,624 $103 4.48%
Investment securities
- available for sale 146,820 6,840 4.66
Investment securities
- held to maturity 473,608 21,496 4.54
Investment securities
- tax exempt [2] 27,174 1,760 6.47
Total investment
securities 647,602 30,096 4.65
Federal funds sold 4,041 196 4.84
Loans, net of
unearned discount
[3] 1,043,680 86,882 8.97
Total Interest-Earning
Assets [2] 1,697,947 117,277 7.23%
Cash and due from
banks 64,598
Allowance for loan
losses (16,741)
Goodwill 22,714
Other 90,812
Assets - discontinued
operations 85,446
Total Assets $1,944,776
Liabilities and
Shareholders' Equity
Interest-bearing
deposits
Domestic
Savings $23,050 101 0.44%
NOW 197,587 3,787 1.92
Money market 213,530 4,696 2.20
Time 514,452 20,399 3.97
Foreign
Time 2,714 28 1.03
Total Interest-
Bearing Deposits 951,333 29,011 3.05
Borrowings
Securities sold
u/a/r - customers 86,418 3,501 4.05
Securities sold
u/a/r - dealers 74,057 3,739 5.05
Federal funds
purchased 15,133 769 5.08
Commercial paper 44,539 2,020 4.53
Short-term
borrowings - FHLB 34,444 1,796 5.21
Short-term
borrowings - other 613 30 4.96
Long-term
borrowings - FHLB 34,164 1,569 4.59
Long-term
borrowings - sub
debt 25,774 2,094 8.38
Total Borrowings 315,142 15,518 4.94
Interest-bearing
liabilities allocated
to discontinued
operations (78,054) (2,508) 3.17
Total Interest-Bearing
Liabilities 1,188,421 42,021 3.54%
Noninterest-bearing
demand deposits 439,064
Other liabilities 95,302
Liabilities -
discontinued
operations 78,811
Total Liabilities 1,801,598
Shareholders' equity 143,178
Total Liabilities and
Shareholders' Equity $1,944,776
Net interest
income/spread [2] 75,256 3.69%
Net yield on interest-
earning assets 4.64%
Less: Tax-equivalent
adjustment 691
Net interest income $74,565
Twelve Months Ended
December 31, 2005
AVERAGE AVERAGE
BALANCE INTEREST RATE
Assets
Interest-bearing deposits with
other banks $3,040 $65 1.96%
Investment securities - available
for sale 192,354 8,438 4.39
Investment securities - held to
maturity 495,187 22,180 4.48
Investment securities - tax exempt
[2] 26,088 1,816 6.96
Total investment securities 713,629 32,434 4.55
Federal funds sold 10,986 309 2.81
Loans, net of unearned discount
[3] 944,033 69,788 7.99
Total Interest-Earning Assets [2] 1,671,688 102,596 6.41%
Cash and due from banks 62,162
Allowance for loan losses (15,730)
Goodwill 21,158
Other 81,126
Assets - discontinued operations 110,697
Total Assets $1,931,101
Liabilities and Shareholders' Equity
Interest-bearing deposits
Domestic
Savings $28,150 113 0.40%
NOW 160,944 1,576 0.98
Money market 227,520 2,456 1.08
Time 517,038 13,957 2.70
Foreign
Time 3,013 33 1.09
Total Interest-Bearing Deposits 936,665 18,135 1.94
Borrowings
Securities sold u/a/r - customers 85,365 1,907 2.23
Securities sold u/a/r - dealers 52,199 1,794 3.44
Federal funds purchased 17,992 647 3.60
Commercial paper 37,302 973 2.61
Short-term borrowings - FHLB 5,277 203 3.84
Short-term borrowings - other 744 25 3.35
Long-term borrowings - FHLB 80,740 3,331 4.13
Long-term borrowings - sub debt 25,774 2,094 8.38
Total Borrowings 305,393 10,974 3.59
Interest-bearing liabilities
allocated to discontinued operations (99,317) (2,646) 2.63
Total Interest-Bearing Liabilities 1,142,741 26,463 2.32%
Noninterest-bearing demand deposits 452,632
Other liabilities 85,994
Liabilities - discontinued operations 99,898
Total Liabilities 1,781,265
Shareholders' equity 149,836
Total Liabilities and Shareholders'
Equity $1,931,101
Net interest income/spread [2] 76,133 4.09%
Net yield on interest-earning assets 4.76%
Less: Tax-equivalent adjustment 708
Net interest income $75,425
[1] The average balances of assets, liabilities and shareholders' equity
are computed on the basis of daily averages. Average rates are
presented on a tax-equivalent basis. Certain reclassifications have
been made to prior period amounts to conform to current presentation.
[2] Interest and/or average rates are presented on a tax-equivalent
basis.
[3] Includes loans held for sale and loans held in portfolio; all loans
are domestic. Nonaccrual loans are included in amounts outstanding
and income has been included to the extent earned.
STERLING BANCORP
Rate/Volume Analysis [1]
(Unaudited)
(in thousands)
Increase/(Decrease)
Three Months Ended
December 31, 2006
Volume Rate Net [2]
INTEREST INCOME
Interest-bearing deposits with other
banks $0 $3 $3
Investment securities - available
for sale (525) 152 (373)
Investment securities - held to
maturity (754) 113 (641)
Investment securities - tax exempt (89) (19) (108)
Total investment securities (1,368) 246 (1,122)
Federal funds sold 73 9 82
Loans, net of unearned discounts [3] 2,192 1,804 3,996
TOTAL INTEREST INCOME $897 $2,062 $2,959
INTEREST EXPENSE
Interest-bearing deposits
Domestic
Savings $(8) $5 $(3)
NOW 81 348 429
Money market (50) 779 729
Time 121 1,886 2,007
Foreign
Time (2) (1) (3)
Total interest-bearing
deposits 142 3,017 3,159
Borrowings
Securities sold under agreements
to repurchase - customers 103 357 460
Securities sold under agreements
to repurchase - dealers (454) 144 (310)
Federal funds purchased (237) 55 (182)
Commercial paper (50) 164 114
Short-term borrowings - FHLB 113 26 139
Short-term borrowings - other (3) 2 (1)
Long-term borrowings - FHLB (495) 31 (464)
Long-term borrowings -
subordinated debentures 0 0 0
Total borrowings (1,023) 779 (244)
Less: interest-bearing liabilities
allocated to discontinued operations 479 479 958
TOTAL INTEREST EXPENSE $(402) $4,275 $3,873
NET INTEREST INCOME $1,299 $(2,213) $(914)
[1] This table is presented on a tax-equivalent basis.
[2] Changes in interest income and interest expense due to a combination
of both volume and rate have been allocated to the change due to
volume and the change due to rate in proportion to the relationship of
change due solely to each.
[3] Includes loans held for sale and loans held in portfolio; all loans
are domestic. Nonaccrual loans are included in amounts outstanding,
and income has been included to the extent earned.
STERLING BANCORP
Rate/Volume Analysis [1]
(Unaudited)
(in thousands)
Increase/(Decrease)
Twelve Months Ended
December 31, 2006
Volume Rate Net [2]
INTEREST INCOME
Interest-bearing deposits with other
banks $(11) $49 $38
Investment securities - available
for sale (2,093) 495 (1,598)
Investment securities - held to
maturity (978) 294 (684)
Investment securities - tax exempt 3 (59) (56)
Total investment securities (3,068) 730 (2,338)
Federal funds sold (261) 148 (113)
Loans, net of unearned discounts [3] 7,906 9,188 17,094
TOTAL INTEREST INCOME $4,566 $10,115 $14,681
INTEREST EXPENSE
Interest-bearing deposits
Domestic
Savings $(22) $10 $(12)
NOW 424 1,787 2,211
Money market (160) 2,400 2,240
Time (71) 6,513 6,442
Foreign
Time (3) (2) (5)
Total interest-bearing
deposits 168 10,708 10,876
Borrowings
Securities sold under agreements
to repurchase - customers 23 1,571 1,594
Securities sold under agreements
to repurchase - dealers 919 1,026 1,945
Federal funds purchased (114) 236 122
Commercial paper 219 828 1,047
Short-term borrowings - FHLB 1,497 96 1,593
Short-term borrowings - other (5) 10 5
Long-term borrowings - FHLB (2,099) 337 (1,762)
Long-term borrowings -
subordinated debentures 0 0 0
Total borrowings 440 4,104 4,544
Less: interest-bearing liabilities
allocated to discontinued
operations 618 (480) 138
TOTAL INTEREST EXPENSE $1,226 $14,332 $15,558
NET INTEREST INCOME $3,340 $(4,217) $(877)
[1] This table is presented on a tax-equivalent basis.
[2] Changes in interest income and interest expense due to a combination
of both volume and rate have been allocated to the change due to
volume and the change due to rate in proportion to the relationship of
change due solely to each.
[3] Includes loans held for sale and loans held in portfolio; all loans
are domestic. Nonaccrual loans are included in amounts outstanding,
and income has been included to the extent earned.
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