Correction: Fitch Ratings Assigns 'BB+' To Sterling Bancshares, Inc.'s Capital Trust III.Business Editors CHICAGO--(BUSINESS WIRE)--Oct. 1, 2002 (this is an amended version of a press release issued earlier today. The Rating Outlook on Sterling Bancshares Capital Trust III is Positive, not Stable) Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has assigned a 'BB+' rating to the $31.3 million Sterling Bancshares Capital Trust III (SBIB SBIB Small Business Internet Banking ). The Rating Outlook is Positive. SBIB's ratings are based on the company's strong niche serving a well-defined customer base of owner/operator businesses in Texas. While concentrated in Houston, the company has focused on diversifying into the key markets of San Antonio San Antonio (săn ăntō`nēō, əntōn`), city (1990 pop. 935,933), seat of Bexar co., S central Tex., at the source of the San Antonio River; inc. 1837. and Dallas through acquisitions and de novo [Latin, Anew.] A second time; afresh. A trial or a hearing that is ordered by an appellate court that has reviewed the record of a hearing in a lower court and sent the matter back to the original court for a new trial, as if it had not been previously heard nor decided. branching. Overall performance is characterized by elevated, yet generally stable chargeoffs reflective of the higher risk lending to small businesses. Strong margins compensate for asset quality and have contributed to stable returns. Capital has been adversely impacted by acquisitions, and remains a constraining con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. factor to ratings. SBIB issued earlier in September 2002 $20 million in trust preferred through a private placement to fund the acquisition of ENB Bankshares, Inc. and other general corporate purposes; however, the company intends to use the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the issuance of Capital Trust III's securities to replace $28.8 million outstanding under Capital Trust I securities that were issued in 1997. As a result, leverage and capital are not expected to be materially impacted upon the completion of this transaction. Rating Assigned: Sterling Bancshares Capital Trust III -- Trust preferred 'BB+'. |
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