STERLING BANCSHARES, INC. 
By HOUSTON, April 19, 2011 /PRNewswire/ -- Sterling Bancshares, Inc. (Nasdaq: SBIB) today reported a net loss of $370 thousand, or $0.00 per diluted share, for the first quarter ended March 31, 2011, compared to net income of $1.9 million, or $0.02 per diluted share, for the fourth quarter of 2010 and a net loss of $6.2 million, or $0.07 per diluted share for the first quarter of 2010.
As previously announced, on January 16, 2011, Sterling Bancshares, Inc, and Comerica Incorporated, a company headquartered in Dallas, Texas, agreed to a strategic business combination in which Sterling will merge with Comerica. The transaction is expected to be completed in the second quarter of 2011, subject to customary closing conditions, including regulatory approvals and approval by Sterling's shareholders.
For the first quarter of 2011, loans decreased $153 million or 5.6% to $2.6 billion at March 31, 2011. This decrease was due primarily to reductions in commercial real estate loans of $90.2 million, resulting from the Company's continued efforts to reduce exposure to these loan types. Commercial and industrial loans decreased $41.8 million during the first quarter of 2011 due to continued low loan demand and line usage.
At March 31, 2011, total deposits were $4.1 billion, a decrease of $140 million or 3.3% compared to December 31, 2010. The decrease in deposits was primarily related to the impact of year-end seasonal activity including lower public fund balances.
Nonperforming assets were $186 million at March 31, 2011, an increase of $15.4 million compared to December 31, 2010. The increase in nonperforming assets was due to an increase in foreclosed assets of $12.8 million on a linked-quarter basis as additional problem loans continued to transition into this category. Nonperforming loans increased slightly on a linked-quarter basis to $136 million at March 31, 2011.
At March 31, 2011, the total allowance for loan losses was $75.5 million or 2.90% of period-end total loans, down from $77.1 million or 2.80% of period-end total loans at December 31, 2010. Net charge-offs for the first quarter of 2011 were $12.4 million or 1.87% of average total loans, compared to $9.7 million or 1.36% of average total loans for the fourth quarter of 2010. Net charge-offs during the first quarter of 2011 were primarily due to approximately $8.4 million in charge-offs related to commercial real estate loans.
Tax-equivalent net interest income for the first quarter of 2011 was $39.9 million, down slightly on a linked-quarter basis. Tax-equivalent net interest margin was 3.52% for the first quarter of 2011, up 13 basis points from 3.39% for the fourth quarter of 2010. The increase in net interest margin during the first quarter of 2011 was due to a decline in average interest-bearing cash of $70 million which was used to fund higher yielding average securities growth of $100 million and a decrease in rates paid on interest-bearing deposits.
Noninterest income for the first quarter of 2011 was $10.1 million, an increase of $1.3 million compared to the fourth quarter of 2010. Net losses on securities of $429 thousand recorded in the first quarter of 2011 was due to the sale of a security that was downgraded to below investment grade during the quarter. Other noninterest income increased $1.9 million for the first quarter of 2011 compared to the fourth quarter of 2010 due to payout claims on certain bank-owned life insurance policies.
Total noninterest expense for the first quarter of 2011 was $41.1 million, a decrease of $407 thousand compared to the fourth quarter of 2010. Professional fees increased $262 thousand for the first quarter of 2011 compared to the fourth quarter of 2010 due primarily to additional legal fees paid in connection with the pending merger with Comerica. Other noninterest expense increased $576 thousand due to additional carrying costs and write-downs on foreclosed assets.
As of March 31, 2011, Sterling had total assets of $5.0 billion, total loans of $2.6 billion and total deposits of $4.1 billion. Shareholders' equity of $623 million at March 31, 2011, was 12.34% of total assets. Book value per common share at period-end was $6.10. Tangible capital ratio was 9.06% and all regulatory capital ratios were in excess of those considered to be well-capitalized at March 31, 2011.
Forward-Looking Statements
Any statements in this release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as "anticipates," "believes," "feels," "expects," "estimates," "seeks," "strives," "plans," "intends," "outlook," "forecast," "position," "target," "mission," "assume," "achievable," "potential," "strategy," "goal," "aspiration," "opportunity," "initiative," "outcome," "continue," "remain," "maintain," "trend," "objective" and variations of such words and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "might," "can," "may" or similar expressions, as they relate to Comerica, Sterling, the proposed transaction or the combined company following the transaction often identify forward-looking statements. These forward-looking statements are predicated on the beliefs and assumptions of management based on information known to management as of the date of this filing and do not purport to speak as of any other date. Forward-looking statements may include descriptions of the expected benefits and costs of the transaction; forecasts of revenue, earnings or other measures of economic performance, including statements of profitability, business segments and subsidiaries; management plans relating to the transaction; the expected timing of the completion of the transaction; the ability to complete the transaction; the ability to obtain any required regulatory, shareholder or other approvals; any statements of the plans and objectives of management for future or past operations, products or services, including the execution of integration plans; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Such statements reflect the view of management as of this date with respect to future events and are subject to risks and uncertainties. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, actual results could differ materially from those anticipated by the forward-looking statements or historical results. Factors that could cause or contribute to such differences include, but are not limited to, the possibility that expected benefits may not materialize in the timeframe expected or at all, or may be more costly to achieve; that the transaction may not be timely completed, if at all; that prior to the completion of the transaction or thereafter, Comerica's and Sterling's respective businesses may not perform as expected due to transaction-related uncertainty or other factors; that the parties are unable to successfully implement integration strategies; that required regulatory, shareholder or other approvals are not obtained or other closing conditions are not satisfied in a timely manner or at all; reputational risks and the reaction of the companies' customers to the transaction; diversion of management time on merger-related issues; and those factors referenced in Comerica's and Sterling's filings with the Securities and Exchange Commission (the "SEC"). Forward-looking statements speak only as of the date they are made. Comerica and Sterling do not undertake to update forward-looking statements to reflect facts, circumstances, assumptions or events that occur after the date the forward-looking statements are made. For any forward-looking statements made in this release or in any documents, Comerica and Sterling claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
Additional Information
Management of Sterling will not host a conference call. In connection with the proposed merger transaction, Comerica has filed with the SEC a Registration Statement on Form S-4 that includes a Proxy Statement of Sterling and a Prospectus of Comerica, and Sterling mailed the definitive Proxy Statement/Prospectus to its shareholders on or about April 6, 2011. Each of Comerica and Sterling may file other relevant documents concerning the proposed transaction. SHAREHOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT AND THE DEFINITIVE PROXY STATEMENT/PROSPECTUS REGARDING THE MERGER AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.
A free copy of the definitive Proxy Statement/Prospectus, as well as other filings containing information about Comerica and Sterling, may be obtained at the SEC's Internet site (http://www.sec.gov). You may be able to obtain these documents, free of charge, from Comerica at www.comerica.com under the tab "Investor Relations" and then under the heading "SEC Filings" or from Sterling by accessing Sterling's website at www.banksterling.com under the tab "Investor Relations" and then under the heading "SEC Filings."
Comerica and Sterling and certain of their directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of Sterling in connection with the proposed merger. Information about the directors and executive officers of Comerica is set forth in the proxy statement for Comerica's 2011 annual meeting of shareholders, as filed with the SEC on a Schedule 14A on March 18, 2011. Information about the directors and executive officers of Sterling is set forth in Sterling's Form 10-K/A filed with the SEC on April 8, 2011. Additional information regarding the interests of those participants and other persons who may be deemed participants in the transaction may be obtained by reading the above-referenced definitive Proxy Statement/Prospectus and other relevant materials filed with the SEC. Free copies of these documents may be obtained as described in the preceding paragraph.
About Sterling Bancshares
Sterling Bancshares, Inc. is a Houston-based bank holding company with total assets of $5.0 billion, which operates 57 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:
Chris Reid, Vice President and Director of Investor Relations, (713) 507-2873
Media:
Graham Painter, Executive Vice President and
Director of Corporate Communication,
(713) 507-2770
-Tables to follow-
STERLING BANCSHARES, INC.
SELECTED FINANCIAL INFORMATION (Unaudited)
(dollars in thousands, except for per share data)
Quarter Ended
-------------
Mar. Dec. Mar.
31, 31, 31,
2011 2010 2010
---- ---- ----
Profitability
Net income (loss) $(370) $1,901 $(6,248)
Earnings (loss) per common share (1)
Basic $(0.00) $0.02 $(0.07)
Diluted $(0.00) $0.02 $(0.07)
Return on average common equity (2) (0.24)% 1.20% (4.41)%
Return on average assets (2) (0.03)% 0.15% (0.51)%
Net interest margin (3) 3.52% 3.39% 4.02%
Efficiency Ratio (4):
Consolidated 81.37% 84.49% 76.30%
Sterling Bank 76.41% 80.60% 73.60%
Liquidity and Capital Ratios
Average loans to average deposits 65.32% 67.16% 78.64%
Period-end stockholders' equity to
total assets 12.34% 11.98% 12.28%
Average stockholders' equity to
average assets 12.35% 12.28% 11.63%
Period-end tangible capital to total
tangible assets 9.06% 8.77% 8.96%
Tier 1 capital to risk-weighted assets 15.41% 15.43% 14.08%
Total capital to risk-weighted assets 18.13% 18.10% 16.92%
Tier 1 leverage ratio (Tier 1 capital
to average assets) 10.08% 10.32% 10.64%
Other Data
Shares used in computing earnings
(loss) per common share
Basic shares 102,034 101,967 88,483
Diluted shares 102,034 102,331 88,483
End of period common shares
outstanding 102,141 101,984 101,877
Book value per common share at period-
end $6.10 $6.10 $6.08
Cash dividends paid per common share $0.015 $0.015 $0.015
Common stock dividend payout ratio N/M 80.53% N/M
Full-time equivalent employees 938 946 1,004
Number of banking centers 57 57 58
STERLING BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(dollars in thousands)
Mar. 31, Dec. 31, Sep. 30,
2011 2010 2010
---- ---- ----
ASSETS
Cash and cash equivalents $462,700 $502,894 $366,590
Available-for-sale securities,
at fair value 1,343,536 1,287,555 1,169,519
Held-to-maturity securities, at
amortized cost 246,768 265,080 280,215
Loans held for sale 1,877 2,691 7,123
Loans held for investment 2,599,778 2,752,349 2,862,952
--------- --------- ---------
Total loans 2,601,655 2,755,040 2,870,075
Allowance for loan losses (75,535) (77,141) (80,754)
------- ------- -------
Loans, net 2,526,120 2,677,899 2,789,321
Premises and equipment, net 49,618 49,421 48,507
Real estate acquired by
foreclosure 49,826 37,064 14,571
Goodwill 173,210 173,210 173,210
Core deposits and other
intangibles, net 8,951 9,477 10,004
Accrued interest receivable 13,588 14,673 14,356
Other assets 175,230 174,680 173,328
------- ------- -------
TOTAL ASSETS $5,049,547 $5,191,953 $5,039,621
========== ========== ==========
LIABILITIES AND SHAREHOLDERS'
EQUITY
LIABILITIES:
Deposits:
Noninterest-bearing demand $1,287,921 $1,322,492 $1,248,321
Interest-bearing demand 2,084,062 2,138,822 2,014,207
Certificates and other time
deposits 745,301 796,116 840,683
------- ------- -------
Total deposits 4,117,284 4,257,430 4,103,211
Other borrowed funds 109,701 112,202 106,546
Subordinated debt 77,673 78,059 78,624
Junior subordinated debt 82,734 82,734 82,734
Accrued interest payable and other
liabilities 39,074 39,604 41,704
------ ------ ------
Total liabilities 4,426,466 4,570,029 4,412,819
COMMITMENTS AND CONTINGENCIES - - -
SHAREHOLDERS' EQUITY
Common stock 104,008 103,852 103,820
Capital surplus 241,280 239,940 238,536
Retained earnings 288,901 290,800 290,429
Treasury stock (21,399) (21,399) (21,399)
Accumulated other comprehensive
income, net of tax 10,291 8,731 15,416
------ ----- ------
Total shareholders' equity 623,081 621,924 626,802
------- ------- -------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $5,049,547 $5,191,953 $5,039,621
========== ========== ==========
Jun. 30, Mar. 31,
2010 2010
---- ----
ASSETS
Cash and cash equivalents $359,388 $361,199
Available-for-sale securities,
at fair value 1,069,964 920,082
Held-to-maturity securities, at
amortized cost 280,658 267,503
Loans held for sale 6,509 18,055
Loans held for investment 2,992,370 3,096,261
--------- ---------
Total loans 2,998,879 3,114,316
Allowance for loan losses (80,983) (76,646)
------- -------
Loans, net 2,917,896 3,037,670
Premises and equipment, net 47,812 47,396
Real estate acquired by
foreclosure 18,151 17,282
Goodwill 173,210 173,210
Core deposits and other
intangibles, net 10,540 11,077
Accrued interest receivable 14,951 15,462
Other assets 183,429 192,498
------- -------
TOTAL ASSETS $5,075,999 $5,043,379
========== ==========
LIABILITIES AND SHAREHOLDERS'
EQUITY
LIABILITIES:
Deposits:
Noninterest-bearing demand $1,266,781 $1,167,602
Interest-bearing demand 1,962,854 2,031,399
Certificates and other time
deposits 921,495 925,427
------- -------
Total deposits 4,151,130 4,124,428
Other borrowed funds 100,770 99,012
Subordinated debt 78,247 77,737
Junior subordinated debt 82,734 82,734
Accrued interest payable and other
liabilities 38,722 39,944
------ ------
Total liabilities 4,451,603 4,423,855
COMMITMENTS AND CONTINGENCIES - -
SHAREHOLDERS' EQUITY
Common stock 103,795 103,745
Capital surplus 238,186 237,439
Retained earnings 287,503 288,436
Treasury stock (21,399) (21,399)
Accumulated other comprehensive
income, net of tax 16,311 11,303
------ ------
Total shareholders' equity 624,396 619,524
------- -------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $5,075,999 $5,043,379
========== ==========
STERLING BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(dollars in thousands, except for per share data)
Quarter Ended
-------------
Mar. Dec. Sep. Jun. Mar.
31, 31, 30, 30, 31,
2011 2010 2010 2010 2010
---- ---- ---- ---- ----
Interest income:
Loans, including
fees $34,906 $37,003 $40,153 $42,087 $43,649
Securities:
Taxable 10,359 9,342 9,841 9,602 9,117
Non-taxable 1,044 1,028 1,013 915 925
Deposits in
financial
institutions 209 258 157 231 115
Other interest-
earning assets 2 2 1 3 1
--- --- --- --- ---
Total interest
income 46,520 47,633 51,165 52,838 53,807
------ ------ ------ ------ ------
Interest expense:
Demand and savings
deposits 2,660 3,158 3,583 4,319 4,212
Certificates and
other time
deposits 1,937 2,328 2,823 3,159 3,352
Other borrowed
funds 764 781 784 768 448
Subordinated debt 696 714 747 705 687
Junior
subordinated debt 1,034 1,043 1,071 1,040 1,028
----- ----- ----- ----- -----
Total interest
expense 7,091 8,024 9,008 9,991 9,727
----- ----- ----- ----- -----
Net interest
income 39,429 39,609 42,157 42,847 44,080
Provision for
credit losses 10,800 5,250 7,716 9,336 22,936
------ ----- ----- ----- ------
Net interest
income after
provision for
credit losses 28,629 34,359 34,441 33,511 21,144
------ ------ ------ ------ ------
Noninterest
income:
Customer service
fees 3,284 3,569 3,728 3,591 3,488
Net gain (loss) on
securities (429) (136) 43 17 20
Wealth management
fees 1,914 1,997 1,733 2,102 2,098
Other 5,365 3,447 3,986 2,815 931
----- ----- ----- ----- ---
Total noninterest
income 10,134 8,877 9,490 8,525 6,537
------ ----- ----- ----- -----
Noninterest
expense:
Salaries and
employee benefits 19,565 19,933 20,722 20,453 20,503
Occupancy 6,031 6,083 5,566 5,709 5,790
Technology 2,081 2,176 2,267 2,332 2,417
Professional fees 2,482 2,220 1,452 1,372 2,005
Postage, delivery
and supplies 559 606 661 719 708
Marketing 63 216 198 271 269
Core deposits and
other intangibles
amortization 526 527 537 537 549
FDIC insurance
assessments 2,138 2,667 2,478 2,438 2,547
Other 7,652 7,076 3,899 6,975 4,165
----- ----- ----- ----- -----
Total noninterest
expense 41,097 41,504 37,780 40,806 38,953
------ ------ ------ ------ ------
Income (loss)
before income
taxes (2,334) 1,732 6,151 1,230 (11,272)
Income tax
provision
(benefit) (1,964) (169) 1,696 634 (5,024)
------ ---- ----- --- ------
Net income (loss) $(370) $1,901 $4,455 $596 $(6,248)
===== ====== ====== ==== =======
Earnings (loss)
per common share
(1):
Basic $(0.00) $0.02 $0.04 $0.01 $(0.07)
====== ===== ===== ===== ======
Diluted $(0.00) $0.02 $0.04 $0.01 $(0.07)
====== ===== ===== ===== ======
STERLING BANCSHARES, INC.
SELECTED FINANCIAL INFORMATION (Unaudited)
(dollars in thousands)
Quarter Ended
-------------
Mar. 31,
2011
----
Average Yield/
Balance Interest Rate
-------- -------- -------
Interest-Earning Assets:
Loans held for sale $3,008 $12 1.55%
Loans held for investment:
Taxable 2,692,192 34,893 5.26%
Non-taxable (3) 63 1 6.81%
Securities:
Taxable 1,447,767 10,359 2.90%
Non-taxable (3) 112,947 1,558 5.59%
Deposits in financial institutions 347,116 209 0.24%
Other interest-earning assets 4,016 2 0.20%
----- --- ----
Total interest-earning assets 4,607,109 47,034 4.14%
Noninterest-earning assets 454,688
-------
Total Assets $5,061,797
==========
Interest-Bearing Liabilities:
Deposits:
Demand and savings $2,087,550 $2,660 0.52%
Certificates and other time 772,172 1,937 1.02%
Other borrowed funds 109,885 764 2.82%
Subordinated debt 77,959 696 3.62%
Junior subordinated debt 82,734 1,034 5.07%
------ ----- ----
Total interest-bearing liabilities 3,130,300 7,091 0.92%
Noninterest-bearing sources:
Noninterest-bearing liabilities 1,306,235
Shareholders' equity 625,262
-------
Total Liabilities and Shareholders'
Equity $5,061,797
==========
Tax Equivalent Net Interest Income
and Margin (3) 39,943 3.52%
====
Non-GAAP to GAAP Reconciliation:
Tax Equivalent Adjustment:
Loans -
Securities 514
---
Total tax equivalent adjustment 514
---
Net Interest Income $39,429
=======
Quarter Ended
-------------
Dec. 31,
2010
---
Average Yield/
Balance Interest Rate
-------- -------- -------
Interest-Earning Assets:
Loans held for sale $6,728 $36 2.15%
Loans held for investment:
Taxable 2,807,348 36,967 5.22%
Non-taxable (3) 75 1 6.61%
Securities:
Taxable 1,348,061 9,342 2.75%
Non-taxable (3) 112,733 1,527 5.37%
Deposits in financial institutions 416,917 258 0.25%
Other interest-earning assets 4,859 2 0.14%
----- --- ----
Total interest-earning assets 4,696,721 48,133 4.07%
Noninterest-earning assets 435,743
-------
Total Assets $5,132,464
==========
Interest-Bearing Liabilities:
Deposits:
Demand and savings $2,069,470 $3,158 0.61%
Certificates and other time 827,574 2,328 1.12%
Other borrowed funds 108,810 781 2.85%
Subordinated debt 78,517 714 3.61%
Junior subordinated debt 82,734 1,043 5.00%
------ ----- ----
Total interest-bearing liabilities 3,167,105 8,024 1.01%
Noninterest-bearing sources:
Noninterest-bearing liabilities 1,335,051
Shareholders' equity 630,308
-------
Total Liabilities and Shareholders'
Equity $5,132,464
==========
Tax Equivalent Net Interest Income
and Margin (3) 40,109 3.39%
====
Non-GAAP to GAAP Reconciliation:
Tax Equivalent Adjustment:
Loans 1
Securities 499
---
Total tax equivalent adjustment 500
---
Net Interest Income $39,609
=======
STERLING BANCSHARES, INC.
SELECTED FINANCIAL INFORMATION (Unaudited)
(dollars in thousands)
Year-to-date
------------
2011
----
Average Yield/
Balance Interest Rate
-------- -------- -------
Interest-Earning Assets:
Loans held for sale $3,008 $12 1.55%
Loans held for investment:
Taxable 2,692,192 34,893 5.26%
Non-taxable (3) 63 1 6.81%
Securities:
Taxable 1,447,767 10,359 2.90%
Non-taxable (3) 112,947 1,558 5.59%
Deposits in financial institutions 347,116 209 0.24%
Other interest-earning assets 4,016 2 0.20%
----- --- ----
Total interest-earning assets 4,607,109 47,034 4.14%
Noninterest-earning assets 454,688
-------
Total Assets $5,061,797
==========
Interest-Bearing Liabilities:
Deposits:
Demand and savings $2,087,550 $2,660 0.52%
Certificates and other time 772,172 1,937 1.02%
Other borrowed funds 109,885 764 2.82%
Subordinated debt 77,959 696 3.62%
Junior subordinated debt 82,734 1,034 5.07%
------ ----- ----
Total interest-bearing liabilities 3,130,300 7,091 0.92%
Noninterest-bearing sources:
Noninterest-bearing liabilities 1,306,235
Shareholders' equity 625,262
-------
Total Liabilities and Shareholders'
Equity $5,061,797
==========
Tax Equivalent Net Interest Income
and Margin (3) 39,943 3.52%
====
Non-GAAP to GAAP Reconciliation:
Tax Equivalent Adjustment:
Loans -
Securities 514
---
Total tax equivalent adjustment 514
---
Net Interest Income $39,429
=======
Year-to-date
------------
2010
----
Average Yield/
Balance Interest Rate
-------- -------- ------
Interest-Earning Assets:
Loans held for sale $13,572 $47 1.40%
Loans held for investment:
Taxable 3,176,511 43,560 5.56%
Non-taxable (3) 4,834 62 5.19%
Securities:
Taxable 1,000,917 9,117 3.69%
Non-taxable (3) 101,443 1,362 5.44%
Deposits in financial institutions 194,104 115 0.24%
Other interest-earning assets 2,418 1 0.17%
----- --- ----
Total interest-earning assets 4,493,799 54,264 4.90%
Noninterest-earning assets 443,748
-------
Total Assets $4,937,547
==========
Interest-Bearing Liabilities:
Deposits:
Demand and savings $1,993,546 $4,212 0.86%
Certificates and other time 924,473 3,352 1.47%
Other borrowed funds 99,884 448 1.82%
Subordinated debt 77,724 687 3.59%
Junior subordinated debt 82,734 1,028 5.04%
------ ----- ----
Total interest-bearing liabilities 3,178,361 9,727 1.24%
Noninterest-bearing sources:
Noninterest-bearing liabilities 1,184,970
Shareholders' equity 574,216
-------
Total Liabilities and Shareholders'
Equity $4,937,547
==========
Tax Equivalent Net Interest Income
and Margin (3) 44,537 4.02%
====
Non-GAAP to GAAP Reconciliation:
Tax Equivalent Adjustment:
Loans 20
Securities 437
---
Total tax equivalent adjustment 457
---
Net Interest Income $44,080
=======
STERLING BANCSHARES, INC.
SELECTED FINANCIAL INFORMATION (Unaudited)
(dollars in thousands)
Quarter Ended
-------------
Mar. 31, Dec. 31, Sep. 30,
2011 2010 2010
---- ---- ----
Condensed Average Balance
Sheet
Loans held for sale $3,008 $6,728 $5,390
Loans held for investment 2,692,255 2,807,423 2,930,419
--------- --------- ---------
Total loans 2,695,263 2,814,151 2,935,809
Available-for-sale
securities, at fair value 1,304,941 1,188,610 1,113,780
Held-to-maturity
securities, at amortized
cost 255,773 272,184 284,458
Deposits in financial
institutions 347,116 416,917 260,167
Other interest-earning assets 4,016 4,859 566
----- ----- ---
Total interest-earning
assets 4,607,109 4,696,721 4,594,780
Goodwill 173,210 173,210 173,210
Core deposits and other
intangibles, net 9,208 9,732 10,262
All other noninterest-
earning assets 272,270 252,801 255,050
------- ------- -------
Total assets $5,061,797 $5,132,464 $5,033,302
========== ========== ==========
Noninterest-bearing demand $1,266,324 $1,293,021 $1,224,402
Interest-bearing deposits:
Interest-bearing demand 2,087,550 2,069,470 2,003,914
Jumbo certificates of deposit 468,726 509,458 539,094
Regular certificates of
deposit 211,043 220,615 227,490
Brokered certificates of
deposit 92,403 97,501 103,457
------ ------ -------
Total deposits 4,126,046 4,190,065 4,098,357
Other borrowed funds 109,885 108,810 103,902
Subordinated debt 77,959 78,517 78,472
Junior subordinated debt 82,734 82,734 82,734
Accrued interest payable and
other liabilities 39,911 42,030 39,079
------ ------ ------
Total liabilities 4,436,535 4,502,156 4,402,544
Total shareholders' equity 625,262 630,308 630,758
------- ------- -------
Total liabilities and
shareholders' equity $5,061,797 $5,132,464 $5,033,302
========== ========== ==========
Mar. 31, Dec. 31, Sep. 30,
2011 2010 2010
---- ---- ----
Period-end Loans:
Loans held for sale $1,877 $2,691 $7,123
Loans held for investment:
Commercial and industrial 581,703 623,487 597,205
Real Estate:
Commercial 1,421,683 1,511,846 1,590,081
Construction and development 213,102 220,076 268,691
Residential mortgage 344,774 354,310 362,404
Consumer/other 38,516 42,630 44,571
------ ------ ------
Loans held for investment 2,599,778 2,752,349 2,862,952
--------- --------- ---------
Total period-end loans $2,601,655 $2,755,040 $2,870,075
========== ========== ==========
Period-End Deposits:
Noninterest-bearing demand $1,287,921 $1,322,492 $1,248,321
Interest-bearing demand 2,084,062 2,138,822 2,014,207
Certificates and other time
deposits:
Jumbo 445,833 487,037 512,178
Regular 205,840 215,867 224,290
Brokered 93,628 93,212 104,215
------ ------ -------
Total period-end deposits $4,117,284 $4,257,430 $4,103,211
========== ========== ==========
Quarter Ended
-------------
Jun. 30, Mar. 31,
2010 2010
---- ----
Condensed Average Balance
Sheet
Loans held for sale $11,454 $13,572
Loans held for investment 3,041,030 3,181,345
--------- ---------
Total loans 3,052,484 3,194,917
Available-for-sale
securities, at fair value 953,742 860,466
Held-to-maturity
securities, at amortized
cost 271,967 241,894
Deposits in financial
institutions 362,429 194,104
Other interest-earning assets 840 2,418
--- -----
Total interest-earning
assets 4,641,462 4,493,799
Goodwill 173,210 173,210
Core deposits and other
intangibles, net 10,800 11,340
All other noninterest-
earning assets 260,923 259,198
------- -------
Total assets $5,086,395 $4,937,547
========== ==========
Noninterest-bearing demand $1,197,400 $1,144,754
Interest-bearing deposits:
Interest-bearing demand 2,027,133 1,993,546
Jumbo certificates of deposit 582,727 549,723
Regular certificates of
deposit 233,592 241,649
Brokered certificates of
deposit 118,622 133,101
------- -------
Total deposits 4,159,474 4,062,773
Other borrowed funds 100,976 99,884
Subordinated debt 77,831 77,724
Junior subordinated debt 82,734 82,734
Accrued interest payable and
other liabilities 40,952 40,216
------ ------
Total liabilities 4,461,967 4,363,331
Total shareholders' equity 624,428 574,216
------- -------
Total liabilities and
shareholders' equity $5,086,395 $4,937,547
========== ==========
Jun. 30, Mar. 31,
2010 2010
---- ----
Period-end Loans:
Loans held for sale $6,509 $18,055
Loans held for investment:
Commercial and industrial 658,141 697,998
Real Estate:
Commercial 1,632,213 1,672,562
Construction and development 310,689 330,855
Residential mortgage 343,894 346,400
Consumer/other 47,433 48,446
------ ------
Loans held for investment 2,992,370 3,096,261
--------- ---------
Total period-end loans $2,998,879 $3,114,316
========== ==========
Period-End Deposits:
Noninterest-bearing demand $1,266,781 $1,167,602
Interest-bearing demand 1,962,854 2,031,399
Certificates and other time
deposits:
Jumbo 587,377 560,093
Regular 231,404 234,010
Brokered 102,714 131,324
------- -------
Total period-end deposits $4,151,130 $4,124,428
========== ==========
STERLING BANCSHARES, INC.
SELECTED FINANCIAL INFORMATION (Unaudited)
(dollars in thousands)
Quarter Ended
-------------
Mar. Dec. Sep.
31, 31, 30,
2011 2010 2010
---- ---- ----
Allowance For Credit Losses
Allowance for loan losses at beginning of
period $77,141 $80,754 $80,983
Charge-offs:
Commercial, financial and industrial 239 1,845 1,034
Real estate, mortgage and construction 12,220 8,535 7,314
Consumer 713 323 285
--- --- ---
Total charge-offs 13,172 10,703 8,633
------ ------ -----
Recoveries:
Commercial, financial and industrial 405 342 481
Real estate, mortgage and construction 255 631 633
Consumer 106 67 72
--- --- ---
Total Recoveries 766 1,040 1,186
--- ----- -----
Net charge-offs 12,406 9,663 7,447
Provision for loan losses 10,800 6,050 7,218
------ ----- -----
Allowance for loan losses at end of
period $75,535 $77,141 $80,754
------- ------- -------
Allowance for unfunded loan commitments
at beginning of period 1,200 2,000 1,502
Provision for losses on unfunded loan
commitments - (800) 498
--- ---- ---
Allowance for unfunded loan commitments
at end of period 1,200 1,200 2,000
----- ----- -----
Total allowance for credit losses $76,735 $78,341 $82,754
======= ======= =======
Nonperforming Assets
Nonperforming loans:
Loans held for sale $- $- $1,665
Loans held for investment 135,791 133,264 162,096
Real estate acquired by foreclosure 49,826 37,064 14,571
Other repossessed assets 127 3 50
--- --- ---
Total nonperforming assets $185,744 $170,331 $178,382
======== ======== ========
Restructured loans - accruing $15,001 $27,699 $17,495
======= ======= =======
Potential problem loans $171,276 $166,442 $169,646
======== ======== ========
Accruing loans 30 to 89 days past due $31,720 $23,680 $16,234
======= ======= =======
Accruing loans past due 90 days or more $2,334 $507 $953
====== ==== ====
Ratios
Period-end allowance for credit losses
to period-end loans 2.95% 2.84% 2.88%
Period-end allowance for loan losses to
period-end loans 2.90% 2.80% 2.81%
Period-end allowance for loan losses to
nonperforming loans 55.63% 57.89% 49.31%
Nonperforming loans to period-end loans 5.22% 4.84% 5.71%
Nonperforming assets to period-end assets 3.68% 3.28% 3.54%
Net charge-offs to average loans (2) 1.87% 1.36% 1.01%
Quarter Ended
-------------
Jun. Mar.
30, 31,
2010 2010
---- ----
Allowance For Credit Losses
Allowance for loan losses at beginning of
period $76,646 $74,732
Charge-offs:
Commercial, financial and industrial 1,687 1,968
Real estate, mortgage and construction 5,786 20,214
Consumer 205 262
--- ---
Total charge-offs 7,678 22,444
----- ------
Recoveries:
Commercial, financial and industrial 433 483
Real estate, mortgage and construction 845 821
Consumer 51 118
--- ---
Total Recoveries 1,329 1,422
----- -----
Net charge-offs 6,349 21,022
Provision for loan losses 10,686 22,936
------ ------
Allowance for loan losses at end of
period $80,983 $76,646
------- -------
Allowance for unfunded loan commitments
at beginning of period 2,852 2,852
Provision for losses on unfunded loan
commitments (1,350) -
------ ---
Allowance for unfunded loan commitments
at end of period 1,502 2,852
----- -----
Total allowance for credit losses $82,485 $79,498
======= =======
Nonperforming Assets
Nonperforming loans:
Loans held for sale $3,491 $10,883
Loans held for investment 162,669 125,025
Real estate acquired by foreclosure 18,151 17,282
Other repossessed assets 20 60
--- ---
Total nonperforming assets $184,331 $153,250
======== ========
Restructured loans - accruing $15,001 $10,675
======= =======
Potential problem loans $142,123 $172,020
======== ========
Accruing loans 30 to 89 days past due $19,307 $46,410
======= =======
Accruing loans past due 90 days or more $441 $306
==== ====
Ratios
Period-end allowance for credit losses
to period-end loans 2.75% 2.55%
Period-end allowance for loan losses to
period-end loans 2.70% 2.46%
Period-end allowance for loan losses to
nonperforming loans 48.74% 56.40%
Nonperforming loans to period-end loans 5.54% 4.36%
Nonperforming assets to period-end assets 3.63% 3.04%
Net charge-offs to average loans (2) 0.83% 2.67%
STERLING BANCSHARES, INC.
FOOTNOTES TO EARNINGS RELEASE
Earnings per share in each quarter is computed individually
(1) using the weighted-average number of shares
outstanding during that quarter.
(2) Interim periods annualized.
Taxable-equivalent basis assuming a 35% tax rate. The
(3) 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.
The efficiency ratio is calculated by dividing noninterest
(4) expense by tax equivalent basis net interest
income plus noninterest income less net gain (loss) on investment
securities.
N/M Not meaningful.
SOURCE Sterling Bancshares, Inc.
