HOUSTON, Jan. 18, 2011 /PRNewswire/ -- Sterling Bancshares, Inc. (Nasdaq: SBIB) today reported net income of $1.9 million, or $0.02 per diluted common share, for the fourth quarter ended December 31, 2010, as compared to net income of $4.5 million, or $0.04 per diluted common share, for the third quarter of 2010.
Net income for the year ended December 31, 2010, was $704 thousand, or $0.01 per diluted common share, compared to a net loss of $13 million for 2009. 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.
Key items and metrics include the following:
-- Total nonperforming loans decreased $30.5 million, or 19% over the prior quarter; -- Real estate acquired by foreclosure increased $22.5 million due to work out efforts on problem loans; -- Period-end allowance for loan losses to period-end loans was 2.80% at December 31, 2010, compared to 2.81% at September 30, 2010; -- Annual deposit growth of $162 million or 4%; and -- Tangible capital ratio was 8.77% and all regulatory capital ratios were in excess of those considered to be well-capitalized at December 31, 2010.
At December 31, 2010, total loans were $2.8 billion, a decrease of $490 million or 15.1% compared to December 31, 2009. This decrease was due primarily to reductions in commercial real estate and construction and development loans of $157 million and $140 million, respectively, resulting from the Company's decision to reduce exposure to these loan categories. The remaining decrease in loans was related to commercial and industrial loans which were impacted by reductions in the energy lending portfolio of approximately $100 million and continued low loan demand.
At December 31, 2010, total deposits were $4.3 billion, an increase of $162 million or 4.0% compared to December 31, 2009. Noninterest-bearing deposits increased $178 million or 15.6% for December 31, 2010, compared to December 31, 2009. Due to continued growth in core deposits during 2010, the Company was able to reduce higher-cost certificates of deposit by $150 million for the year.
Overall credit quality improved during the fourth quarter of 2010 with total nonperforming assets decreasing $8.1 million to $170 million at December 31, 2010, including a decrease in nonperforming loans of $30.5 million. Foreclosed assets increased $22.5 million on a linked-quarter basis due to problem loans transitioning into this category. Potential problem loans were $166 million at December 31, 2010, a decrease of $3.2 million over the prior quarter.
At December 31, 2010, the total allowance for loan losses was $77.1 million or 2.80% of period-end total loans, down from $80.8 million or 2.81% of period-end total loans at September 30, 2010, and up from $74.7 million or 2.30% of period-end total loans at December 31, 2009.
Net charge-offs for the fourth quarter of 2010 were $9.7 million or 1.36% of average total loans, compared to $7.4 million or 1.01% of average total loans for the third quarter of 2010. Net charge-offs for the year ended December 31, 2010, were $44.5 million or 1.48% of average total loans, down from $60.9 million or 1.72% for 2009.
Tax-equivalent net interest income for the fourth quarter of 2010 was $40.1 million, down $2.5 million on a linked-quarter basis. Tax-equivalent net interest margin was 3.39% for the fourth quarter of 2010, down 29 basis points from 3.68% for the third quarter of 2010. Net interest income and margin during the fourth quarter of 2010 were negatively impacted by a decrease in average loans and a reduction in interest income from the interest rate hedge that was fully amortized during the third quarter of 2010.
Noninterest income for the fourth quarter of 2010 was $8.9 million, an increase of $3.4 million compared to the same period in 2009. The fourth quarter of 2009 was negatively impacted by $1.6 million in losses on sale of loans classified as held for sale and $1.8 million of losses on the sale of securities. Noninterest income was $33.4 million for 2010, a decrease of $2.5 million compared to 2009. This decrease was primarily related to gains from interest rate hedge ineffectiveness recorded in 2009.
Total noninterest expense for the fourth quarter of 2010 was $41.5 million, an increase of $2.0 million compared to the same period in 2009. The increase in noninterest expense was primarily due to an increase in professional fees of $937 thousand and FDIC assessments of $811 thousand. Noninterest expense was $159 million for 2010, a decrease of $4.1 million compared to 2009 which was primarily related to reductions in salary and benefits of $5.3 million.
As of December 31, 2010, Sterling had total assets of $5.2 billion, total loans of $2.8 billion and total deposits of $4.3 billion. Shareholders' equity of $622 million at December 31, 2010, was 11.98% of total assets. Book value per common share at period-end was $6.10.
Additional Information
Management of Sterling will not be hosting a conference call. For more financial information on Sterling refer to the Investor Relations section of the Company's web site at www.banksterling.com. The previous conference call scheduled for January 26, 2011, will no longer take place.
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; any adjustments to the Company's reported results after final review by the Company's independent registered public accounting firm; 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 2009 Annual Report on Form 10-K 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 $5.2 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 ------------- Dec. 31, Sep. 30, Dec. 31, 2010 2010 2009 ---- ---- ---- Profitability Net income (loss) $1,901 $4,455 $1,736 Net income (loss) applicable to common shareholders $1,901 $4,455 $1,736 Earnings (loss) per common share (1) Basic $0.02 $0.04 $0.02 Diluted $0.02 $0.04 $0.02 Return on average common equity (2) 1.20% 2.80% 1.24% Return on average assets (2) 0.15% 0.35% 0.14% Tax equivalent net interest margin (3) 3.39% 3.68% 4.11% Efficiency Ratio (4): Consolidated 84.49% 72.53% 70.60% Sterling Bank 80.60% 70.74% 67.64% Liquidity and Capital Ratios Average loans to average deposits 67.16% 71.63% 80.29% Period-end stockholders' equity to total assets 11.98% 12.44% 10.95% Average stockholders' equity to average assets 12.28% 12.53% 11.12% Period-end tangible capital to total tangible assets 8.77% 9.13% 7.48% Tier 1 capital to risk-weighted assets 15.43% 15.23% 11.61% Total capital to risk-weighted assets 18.10% 17.88% 14.41% Tier 1 leverage ratio (Tier 1 capital to average assets) 10.32% 10.53% 8.89% Other Data Shares used in computing earnings (loss) per common share Basic shares 101,967 101,934 81,771 Diluted shares 102,331 102,212 82,019 End of period common shares outstanding 101,984 101,952 81,853 Book value per common share at period-end $6.10 $6.15 $6.60 Cash dividends paid per common share $0.015 $0.015 $0.015 Common stock dividend payout ratio 80.53% 34.35% 70.74% Full-time equivalent employees 946 986 1,012 Number of banking centers 57 56 58
Year Ended ---------- 2010 2009 ---- ---- Profitability Net income (loss) $704 $(12,974) Net income (loss) applicable to common shareholders $704 $(22,316) Earnings (loss) per common share (1) Basic $0.01 $(0.28) Diluted $0.01 $(0.28) Return on average common equity (2) 0.11% (4.01)% Return on average assets (2) 0.01% (0.26)% Tax equivalent net interest margin (3) 3.70% 4.22% Efficiency Ratio (4): Consolidated 77.93% 69.17% Sterling Bank 75.27% 66.97% Liquidity and Capital Ratios Average loans to average deposits 72.63% 88.83% Period-end stockholders' equity to total assets 11.98% 10.95% Average stockholders' equity to average assets 12.19% 11.92% Period-end tangible capital to total tangible assets 8.77% 7.48% Tier 1 capital to risk-weighted assets 15.43% 11.61% Total capital to risk-weighted assets 18.10% 14.41% Tier 1 leverage ratio (Tier 1 capital to average assets) 10.32% 8.89% Other Data Shares used in computing earnings (loss) per common share Basic shares 98,617 78,696 Diluted shares 98,827 78,696 End of period common shares outstanding 101,984 81,853 Book value per common share at period-end $6.10 $6.60 Cash dividends paid per common share $0.060 $0.180 Common stock dividend payout ratio 827.32% (106.36)% Full-time equivalent employees 946 1,012 Number of banking centers 57 58
STERLING BANCSHARES, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) (dollars in thousands)
Dec. 31, Sep. 30, Jun. 30, 2010 2010 2010 ---- ---- ---- ASSETS Cash and cash equivalents $502,894 $366,590 $359,388 Available-for-sale securities, at fair value 1,287,555 1,169,519 1,069,964 Held-to-maturity securities, at amortized cost 265,080 280,215 280,658 Loans held for sale 2,691 7,123 6,509 Loans held for investment 2,752,349 2,862,952 2,992,370 Total loans 2,755,040 2,870,075 2,998,879 Allowance for loan losses (77,141) (80,754) (80,983) Loans, net 2,677,899 2,789,321 2,917,896 Premises and equipment, net 49,421 48,507 47,812 Real estate acquired by foreclosure 37,064 14,571 18,151 Goodwill 173,210 173,210 173,210 Core deposits and other intangibles, net 9,477 10,004 10,540 Accrued interest receivable 14,673 14,356 14,951 Other assets 174,680 173,328 183,429 TOTAL ASSETS $5,191,953 $5,039,621 $5,075,999 ========== ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY LIABILITIES: Deposits: Noninterest-bearing demand $1,322,492 $1,248,321 $1,266,781 Interest-bearing demand 2,138,822 2,014,207 1,962,854 Certificates and other time deposits 796,116 840,683 921,495 Total deposits 4,257,430 4,103,211 4,151,130 Other borrowed funds 112,202 106,546 100,770 Subordinated debt 78,059 78,624 78,247 Junior subordinated debt 82,734 82,734 82,734 Accrued interest payable and other liabilities 39,604 41,704 38,722 Total liabilities 4,570,029 4,412,819 4,451,603 COMMITMENTS AND CONTINGENCIES - - - SHAREHOLDERS' EQUITY Common stock 103,852 103,820 103,795 Capital surplus 239,940 238,536 238,186 Retained earnings 290,800 290,429 287,503 Treasury stock (21,399) (21,399) (21,399) Accumulated other comprehensive income, net of tax 8,731 15,416 16,311 Total shareholders' equity 621,924 626,802 624,396 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $5,191,953 $5,039,621 $5,075,999 ========== ========== ==========
Mar. 31, Dec. 31, 2010 2009 ---- ---- ASSETS Cash and cash equivalents $361,199 $246,215 Available-for-sale securities, at fair value 920,082 846,216 Held-to-maturity securities, at amortized cost 267,503 222,845 Loans held for sale 18,055 11,778 Loans held for investment 3,096,261 3,233,273 --------- Total loans 3,114,316 3,245,051 Allowance for loan losses (76,646) (74,732) ------- Loans, net 3,037,670 3,170,319 Premises and equipment, net 47,396 48,816 Real estate acquired by foreclosure 17,282 16,763 Goodwill 173,210 173,210 Core deposits and other intangibles, net 11,077 11,626 Accrued interest receivable 15,462 16,502 Other assets 192,498 184,536 ------- TOTAL ASSETS $5,043,379 $4,937,048 ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY LIABILITIES: Deposits: Noninterest-bearing demand $1,167,602 $1,144,133 Interest-bearing demand 2,031,399 2,004,539 Certificates and other time deposits 925,427 946,279 ------- Total deposits 4,124,428 4,094,951 Other borrowed funds 99,012 97,245 Subordinated debt 77,737 77,338 Junior subordinated debt 82,734 82,734 Accrued interest payable and other liabilities 39,944 44,247 ------ Total liabilities 4,423,855 4,396,515 COMMITMENTS AND CONTINGENCIES - - SHAREHOLDERS' EQUITY Common stock 103,745 83,721 Capital surplus 237,439 170,848 Retained earnings 288,436 295,909 Treasury stock (21,399) (21,399) Accumulated other comprehensive income, net of tax 11,303 11,454 ------ Total shareholders' equity 619,524 540,533 ------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $5,043,379 $4,937,048 ========== ==========
STERLING BANCSHARES, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (dollars in thousands, except for per share data)
Quarter Ended ------------- Dec. 31, Sep. 30, Jun. 30, 2010 2010 2010 ---- ---- ---- Interest income: Loans, including fees $37,003 $40,153 $42,087 Securities: Taxable 9,342 9,841 9,602 Non-taxable 1,028 1,013 915 Deposits in financial institutions 258 157 231 Other interest-earning assets 2 1 3 --- --- --- Total interest income 47,633 51,165 52,838 ------ ------ ------ Interest expense: Demand and savings deposits 3,158 3,583 4,319 Certificates and other time deposits 2,328 2,823 3,159 Other borrowed funds 781 784 768 Subordinated debt 714 747 705 Junior subordinated debt 1,043 1,071 1,040 ----- ----- ----- Total interest expense 8,024 9,008 9,991 ----- ----- ----- Net interest income 39,609 42,157 42,847 Provision for credit losses 5,250 7,716 9,336 ----- ----- ----- Net interest income after provision for credit losses 34,359 34,441 33,511 ------ ------ ------ Noninterest income: Customer service fees 3,569 3,728 3,591 Net gain (loss) on securities (136) 43 17 Wealth management fees 1,997 1,733 2,102 Other 3,447 3,986 2,815 ----- ----- ----- Total noninterest income 8,877 9,490 8,525 ----- ----- ----- Noninterest expense: Salaries and employee benefits 19,933 20,722 20,453 Occupancy 6,083 5,566 5,709 Technology 2,176 2,267 2,332 Professional fees 2,220 1,452 1,372 Postage, delivery and supplies 606 661 719 Marketing 216 198 271 Core deposits and other intangibles amortization 527 537 537 Acquisition costs - - - FDIC insurance assessments 2,667 2,478 2,438 Other 7,076 3,899 6,975 ----- ----- ----- Total noninterest expense 41,504 37,780 40,806 ------ ------ ------ Income (loss) before income taxes 1,732 6,151 1,230 Income tax provision (benefit) (169) 1,696 634 ---- ----- --- Net income (loss) $1,901 $4,455 $596 ====== ====== ==== Preferred stock dividends - - - --- --- --- Net income (loss) applicable to common shareholders $1,901 $4,455 $596 ====== ====== ==== Earnings (loss) per common share (1): Basic $0.02 $0.04 $0.01 ===== ===== ===== Diluted $0.02 $0.04 $0.01 ===== ===== =====
Quarter Ended ------------- Mar. 31, Dec. 31, 2010 2009 ---- ---- Interest income: Loans, including fees $43,649 $46,876 Securities: Taxable 9,117 9,758 Non-taxable 925 929 Deposits in financial institutions 115 90 Other interest-earning assets 1 19 --- --- Total interest income 53,807 57,672 ------ ------ Interest expense: Demand and savings deposits 4,212 4,243 Certificates and other time deposits 3,352 4,577 Other borrowed funds 448 314 Subordinated debt 687 713 Junior subordinated debt 1,028 1,045 ----- ----- Total interest expense 9,727 10,892 ----- ------ Net interest income 44,080 46,780 Provision for credit losses 22,936 11,000 ------ ------ Net interest income after provision for credit losses 21,144 35,780 ------ ------ Noninterest income: Customer service fees 3,488 3,722 Net gain (loss) on securities 20 (1,823) Wealth management fees 2,098 2,049 Other 931 1,543 --- ----- Total noninterest income 6,537 5,491 ----- ----- Noninterest expense: Salaries and employee benefits 20,503 19,496 Occupancy 5,790 5,822 Technology 2,417 2,375 Professional fees 2,005 1,283 Postage, delivery and supplies 708 685 Marketing 269 443 Core deposits and other intangibles amortization 549 552 Acquisition costs - 980 FDIC insurance assessments 2,547 1,856 Other 4,165 5,998 ----- ----- Total noninterest expense 38,953 39,490 ------ ------ Income (loss) before income taxes (11,272) 1,781 Income tax provision (benefit) (5,024) 45 ------ --- Net income (loss) $(6,248) $1,736 ======= ====== Preferred stock dividends - - --- --- Net income (loss) applicable to common shareholders $(6,248) $1,736 ======= ====== Earnings (loss) per common share (1): Basic $(0.07) $0.02 ====== ===== Diluted $(0.07) $0.02 ====== =====
Year Ended ---------- 2010 2009 ---- ---- Interest income: Loans, including fees $162,892 $201,225 Securities: Taxable 37,902 36,417 Non-taxable 3,881 3,616 Deposits in financial institutions 761 154 Other interest-earning assets 7 80 --- --- Total interest income 205,443 241,492 ------- ------- Interest expense: Demand and savings deposits 15,272 16,024 Certificates and other time deposits 11,662 24,051 Other borrowed funds 2,781 1,897 Subordinated debt 2,853 3,325 Junior subordinated debt 4,182 4,486 ----- ----- Total interest expense 36,750 49,783 ------ ------ Net interest income 168,693 191,709 Provision for credit losses 45,238 87,631 ------ ------ Net interest income after provision for credit losses 123,455 104,078 ------- ------- Noninterest income: Customer service fees 14,376 15,431 Net gain (loss) on securities (56) (1,806) Wealth management fees 7,930 7,953 Other 11,179 14,317 ------ ------ Total noninterest income 33,429 35,895 ------ ------ Noninterest expense: Salaries and employee benefits 81,611 86,930 Occupancy 23,148 23,826 Technology 9,192 9,850 Professional fees 7,049 4,702 Postage, delivery and supplies 2,694 2,866 Marketing 954 1,930 Core deposits and other intangibles amortization 2,150 2,247 Acquisition costs - 1,134 FDIC insurance assessments 10,130 8,830 Other 22,115 20,869 ------ ------ Total noninterest expense 159,043 163,184 ------- ------- Income (loss) before income taxes (2,159) (23,211) Income tax provision (benefit) (2,863) (10,237) ------ ------- Net income (loss) $704 $(12,974) ==== ======== Preferred stock dividends - 9,342 --- ----- Net income (loss) applicable to common shareholders $704 $(22,316) ==== ======== Earnings (loss) per common share (1): Basic $0.01 $(0.28) ===== ====== Diluted $0.01 $(0.28) ===== ======
STERLING BANCSHARES, INC. SELECTED FINANCIAL INFORMATION (Unaudited) (dollars in thousands)
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 =======
Quarter Ended ------------- Sep. 30, 2010 --- Yield/ Average Balance Interest Rate --------------- -------- ------- Interest-Earning Assets: Loans held for sale $5,390 $28 2.06% Loans held for investment: Taxable 2,930,124 40,122 5.43% Non-taxable (3) 295 4 5.52% Securities: Taxable 1,286,050 9,841 3.04% Non-taxable (3) 112,188 1,497 5.30% Deposits in financial institutions 260,167 157 0.24% Other interest-earning assets 566 1 0.84% --- --- ---- Total interest-earning assets 4,594,780 51,650 4.46% Noninterest-earning assets 438,522 Total Assets $5,033,302 ========== Interest-Bearing Liabilities: Deposits: Demand and savings $2,003,914 $3,583 0.71% Certificates and other time 870,041 2,823 1.29% Other borrowed funds 103,902 784 2.99% Subordinated debt 78,472 747 3.78% Junior subordinated debt 82,734 1,071 5.14% Total interest-bearing liabilities 3,139,063 9,008 1.12% Noninterest-bearing sources: Noninterest-bearing liabilities 1,263,481 Shareholders' equity 630,758 Total Liabilities and Shareholders' Equity $5,033,302 ========== Tax Equivalent Net Interest Income and Margin (3) 42,642 3.68% ==== Non-GAAP to GAAP Reconciliation: Tax Equivalent Adjustment: Loans 1 Securities 484 Total tax equivalent adjustment 485 Net Interest Income $42,157 =======
STERLING BANCSHARES, INC. SELECTED FINANCIAL INFORMATION (Unaudited) (dollars in thousands)
Year Ended ----------- 2010 ---- Average Yield/ Balance Interest Rate -------- -------- ------- Interest-Earning Assets: Loans held for sale $9,256 $165 1.79% Loans held for investment: Taxable 2,986,519 162,643 5.45% Non-taxable (3) 2,347 124 5.28% Securities: Taxable 1,191,352 37,902 3.18% Non-taxable (3) 106,685 5,733 5.37% Deposits in financial institutions 308,882 761 0.25% Other interest-earning assets 2,174 7 0.33% Total interest-earning assets 4,607,215 207,335 4.50% Noninterest-earning assets 440,708 ------- Total Assets $5,047,923 ========== Interest-Bearing Liabilities: Deposits: Demand and savings $2,023,670 $15,272 0.75% Certificates and other time 888,939 11,662 1.31% Other borrowed funds 103,419 2,781 2.69% Subordinated debt 78,139 2,853 3.65% Junior subordinated debt 82,734 4,182 5.05% Total interest-bearing liabilities 3,176,901 36,750 1.16% Noninterest-bearing sources: Noninterest-bearing liabilities 1,255,896 Shareholders' equity 615,126 ------- Total Liabilities and Shareholders' Equity $5,047,923 ========== Tax Equivalent Net Interest Income and Margin (3) 170,585 3.70% ==== Non-GAAP to GAAP Reconciliation: Tax Equivalent Adjustment: Loans 40 Securities 1,852 ----- Total tax equivalent adjustment 1,892 ----- Net Interest Income $168,693 ========
Year Ended ----------- 2009 ---- Average Yield/ Balance Interest Rate -------- -------- ------ Interest-Earning Assets: Loans held for sale $11,335 $156 1.37% Loans held for investment: Taxable 3,532,002 200,860 5.69% Non-taxable (3) 5,089 306 6.01% Securities: Taxable 820,887 36,417 4.44% Non-taxable (3) 98,278 5,262 5.35% Deposits in financial institutions 86,673 154 0.18% Other interest-earning assets 28,703 80 0.28% ------ --- ---- Total interest-earning assets 4,582,967 243,235 5.31% Noninterest-earning assets 421,964 Total Assets $5,004,931 ========== Interest-Bearing Liabilities: Deposits: Demand and savings $1,757,305 $16,024 0.91% Certificates and other time 1,105,055 24,051 2.18% Other borrowed funds 207,766 1,897 0.91% Subordinated debt 77,643 3,325 4.28% Junior subordinated debt 82,734 4,486 5.42% Total interest-bearing liabilities 3,230,503 49,783 1.54% Noninterest-bearing sources: Noninterest-bearing liabilities 1,177,999 Shareholders' equity 596,429 Total Liabilities and Shareholders' Equity $5,004,931 ========== Tax Equivalent Net Interest Income and Margin (3) 193,452 4.22% ==== Non-GAAP to GAAP Reconciliation: Tax Equivalent Adjustment: Loans 97 Securities 1,646 ----- Total tax equivalent adjustment 1,743 Net Interest Income $191,709 ========
STERLING BANCSHARES, INC. SELECTED FINANCIAL INFORMATION (Unaudited) (dollars in thousands)
Quarter Ended ------------- Dec. 31, Sep. 30, Jun. 30, 2010 2010 2010 ---- ---- ---- Condensed Average Balance Sheet Loans held for sale $6,728 $5,390 $11,454 Loans held for investment 2,807,423 2,930,419 3,041,030 --------- --------- --------- Total loans 2,814,151 2,935,809 3,052,484 Available-for-sale securities, at fair value 1,188,610 1,113,780 953,742 Held-to-maturity securities, at amortized cost 272,184 284,458 271,967 Deposits in financial institutions 416,917 260,167 362,429 Other interest-earning assets 4,859 566 840 Total interest-earning assets 4,696,721 4,594,780 4,641,462 Goodwill 173,210 173,210 173,210 Core deposits and other intangibles, net 9,732 10,262 10,800 All other noninterest- earning assets 252,801 255,050 260,923 Total assets $5,132,464 $5,033,302 $5,086,395 ========== ========== ========== Noninterest-bearing demand $1,293,021 $1,224,402 $1,197,400 Interest-bearing deposits: Interest-bearing demand 2,069,470 2,003,914 2,027,133 Jumbo certificates of deposit 509,458 539,094 582,727 Regular certificates of deposit 220,615 227,490 233,592 Brokered certificates of deposit 97,501 103,457 118,622 ------ ------- ------- Total deposits 4,190,065 4,098,357 4,159,474 Other borrowed funds 108,810 103,902 100,976 Subordinated debt 78,517 78,472 77,831 Junior subordinated debt 82,734 82,734 82,734 Accrued interest payable and other liabilities 42,030 39,079 40,952 Total liabilities 4,502,156 4,402,544 4,461,967 Total shareholders' equity 630,308 630,758 624,428 Total liabilities and shareholders' equity $5,132,464 $5,033,302 $5,086,395 ========== ========== ========== Dec. 31, Sep. 30, Jun. 30, 2010 2010 2010 ---- ---- ---- Period-end Loans: Loans held for sale $2,691 $7,123 $6,509 Loans held for investment: Commercial and industrial 623,487 597,205 658,141 Real Estate: Commercial 1,511,846 1,590,081 1,632,213 Construction and development 220,076 268,691 310,689 Residential mortgage 354,310 362,404 343,894 Consumer/other 42,630 44,571 47,433 Loans held for investment 2,752,349 2,862,952 2,992,370 Total period-end loans $2,755,040 $2,870,075 $2,998,879 ========== ========== ========== Period-End Deposits: Noninterest-bearing demand $1,322,492 $1,248,321 $1,266,781 Interest-bearing demand 2,138,822 2,014,207 1,962,854 Certificates and other time deposits: Jumbo 487,037 512,178 587,377 Regular 215,867 224,290 231,404 Brokered 93,212 104,215 102,714 Total period-end deposits $4,257,430 $4,103,211 $4,151,130 ========== ========== ==========
Quarter Ended ------------- Mar. 31, Dec. 31, 2010 2009 ---- ---- Condensed Average Balance Sheet Loans held for sale $13,572 $38,844 Loans held for investment 3,181,345 3,262,525 --------- --------- Total loans 3,194,917 3,301,369 Available-for-sale securities, at fair value 860,466 897,733 Held-to-maturity securities, at amortized cost 241,894 168,940 Deposits in financial institutions 194,104 163,195 Other interest-earning assets 2,418 26,825 ------ Total interest-earning assets 4,493,799 4,558,062 Goodwill 173,210 173,210 Core deposits and other intangibles, net 11,340 11,890 All other noninterest-earning assets 259,198 236,710 ------- Total assets $4,937,547 $4,979,872 ========== ========== Noninterest-bearing demand $1,144,754 $1,158,023 Interest-bearing deposits: Interest-bearing demand 1,993,546 1,946,308 Jumbo certificates of deposit 549,723 576,984 Regular certificates of deposit 241,649 264,388 Brokered certificates of deposit 133,101 166,319 ------- ------- Total deposits 4,062,773 4,112,022 Other borrowed funds 99,884 107,211 Subordinated debt 77,724 77,824 Junior subordinated debt 82,734 82,734 Accrued interest payable and other liabilities 40,216 46,348 ------ Total liabilities 4,363,331 4,426,139 Total shareholders' equity 574,216 553,733 ------- Total liabilities and shareholders' equity $4,937,547 $4,979,872 ========== ========== Mar. 31, Dec. 31, 2010 2009 ---- ---- Period-end Loans: Loans held for sale $18,055 $11,778 Loans held for investment: Commercial and industrial 697,998 806,542 Real Estate: Commercial 1,672,562 1,669,118 Construction and development 330,855 360,444 Residential mortgage 346,400 344,838 Consumer/other 48,446 52,331 ------ Loans held for investment 3,096,261 3,233,273 --------- Total period-end loans $3,114,316 $3,245,051 ========== ========== Period-End Deposits: Noninterest-bearing demand $1,167,602 $1,144,133 Interest-bearing demand 2,031,399 2,004,539 Certificates and other time deposits: Jumbo 560,093 549,588 Regular 234,010 252,682 Brokered 131,324 144,009 ------- Total period-end deposits $4,124,428 $4,094,951 ========== ==========
STERLING BANCSHARES, INC. SELECTED FINANCIAL INFORMATION (Unaudited) (dollars in thousands)
Quarter Ended ------------- Dec. 31, Sep. 30, Jun. 30, 2010 2010 2010 ---- ---- ---- Allowance For Credit Losses Allowance for loan losses at beginning of period $80,754 $80,983 $76,646 Charge-offs: Commercial, financial and industrial 1,845 1,034 1,687 Real estate, mortgage and construction 8,535 7,314 5,786 Consumer 323 285 205 Total Charge-offs 10,703 8,633 7,678 ------ ----- ----- Recoveries: Commercial, financial and industrial 342 481 433 Real estate, mortgage and construction 631 633 845 Consumer 67 72 51 Total Recoveries 1,040 1,186 1,329 ----- ----- ----- Net charge-offs 9,663 7,447 6,349 Provision for loan losses 6,050 7,218 10,686 ----- ----- ------ Allowance for loan losses at end of period $77,141 $80,754 $80,983 ------- ------- ------- Allowance for unfunded loan commitments at beginning of period $2,000 $1,502 $2,852 Provision for losses on unfunded loan commitments (800) 498 (1,350) ---- --- ------ Allowance for unfunded loan commitments at end of period 1,200 2,000 1,502 ----- ----- ----- Total allowance for credit losses $78,341 $82,754 $82,485 ======= ======= ======= Nonperforming Assets Nonperforming loans: Loans held for sale $- $1,665 $3,491 Loans held for investment 133,264 162,096 162,669 Real estate acquired by foreclosure 37,064 14,571 18,151 Other repossessed assets 3 50 20 --- --- Total nonperforming assets $170,331 $178,382 $184,331 ======== ======== ======== Restructured loans - accruing $27,699 $17,495 $15,001 ======= ======= ======= Potential problem loans $166,442 $169,646 $142,123 ======== ======== ======== Accruing loans 30 to 89 days past due $23,680 $16,234 $19,307 ======= ======= ======= Accruing loans past due 90 days or more $507 $953 $441 ==== ==== ==== Ratios Period-end allowance for credit losses to period-end loans 2.84% 2.88% 2.75% Period-end allowance for loan losses to period-end loans 2.80% 2.81% 2.70% Period-end allowance for loan losses to nonperforming loans 57.89% 49.31% 48.74% Nonperforming loans to period-end loans 4.84% 5.71% 5.54% Nonperforming assets to period-end assets 3.28% 3.54% 3.63% Net charge-offs to average loans (2) 1.36% 1.01% 0.83%
Quarter Ended ------------- Mar. 31, Dec. 31, 2010 2009 ---- ---- Allowance For Credit Losses Allowance for loan losses at beginning of period $74,732 $70,059 Charge-offs: Commercial, financial and industrial 1,968 1,536 Real estate, mortgage and construction 20,214 5,448 Consumer 262 477 Total Charge-offs 22,444 7,461 ------ ----- Recoveries: Commercial, financial and industrial 483 536 Real estate, mortgage and construction 821 488 Consumer 118 110 Total Recoveries 1,422 1,134 ----- ----- Net charge-offs 21,022 6,327 Provision for loan losses 22,936 11,000 ------ ------ Allowance for loan losses at end of period $76,646 $74,732 ------- ------- Allowance for unfunded loan commitments at beginning of period $2,852 $2,852 Provision for losses on unfunded loan commitments - - --- --- Allowance for unfunded loan commitments at end of period 2,852 2,852 ----- ----- Total allowance for credit losses $79,498 $77,584 ======= ======= Nonperforming Assets Nonperforming loans: Loans held for sale $10,883 $9,896 Loans held for investment 125,025 92,668 Real estate acquired by foreclosure 17,282 16,763 Other repossessed assets 60 38 Total nonperforming assets $153,250 $119,365 ======== ======== Restructured loans - accruing $10,675 $69,857 ======= ======= Potential problem loans $172,020 $187,513 ======== ======== Accruing loans 30 to 89 days past due $46,410 $34,243 ======= ======= Accruing loans past due 90 days or more $306 $41 ==== === Ratios Period-end allowance for credit losses to period-end loans 2.55% 2.39% Period-end allowance for loan losses to period-end loans 2.46% 2.30% Period-end allowance for loan losses to nonperforming loans 56.40% 72.86% Nonperforming loans to period-end loans 4.36% 3.16% Nonperforming assets to period-end assets 3.04% 2.42% Net charge-offs to average loans (2) 2.67% 0.76%
Year Ended ---------- 2010 2009 ---- ---- Allowance For Credit Losses Allowance for loan losses at beginning of period $74,732 $49,177 Charge-offs: Commercial, financial and industrial 6,534 22,068 Real estate, mortgage and construction 41,849 40,253 Consumer 1,075 1,589 ----- Total Charge-offs 49,458 63,910 ------ ------ Recoveries: Commercial, financial and industrial 1,739 1,713 Real estate, mortgage and construction 2,930 789 Consumer 308 530 --- Total Recoveries 4,977 3,032 ----- ----- Net charge-offs 44,481 60,878 Provision for loan losses 46,890 86,433 ------ ------ Allowance for loan losses at end of period $77,141 $74,732 ------- ------- Allowance for unfunded loan commitments at beginning of period $2,852 $1,654 Provision for losses on unfunded loan commitments (1,652) 1,198 ------ ----- Allowance for unfunded loan commitments at end of period 1,200 2,852 ----- ----- Total allowance for credit losses $78,341 $77,584 ======= ======= Nonperforming Assets Nonperforming loans: Loans held for sale $- $9,896 Loans held for investment 133,264 92,668 Real estate acquired by foreclosure 37,064 16,763 Other repossessed assets 3 38 --- Total nonperforming assets $170,331 $119,365 ======== ======== Restructured loans - accruing $27,699 $69,857 ======= ======= Potential problem loans $166,442 $187,513 ======== ======== Accruing loans 30 to 89 days past due $23,680 $34,243 ======= ======= Accruing loans past due 90 days or more $507 $41 ==== === Ratios Period-end allowance for credit losses to period-end loans 2.84% 2.39% Period-end allowance for loan losses to period-end loans 2.80% 2.30% Period-end allowance for loan losses to nonperforming loans 57.89% 72.86% Nonperforming loans to period-end loans 4.84% 3.16% Nonperforming assets to period-end assets 3.28% 2.42% Net charge-offs to average loans (2) 1.48% 1.72%
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 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. 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 less acquisition 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.