Printer Friendly

STERLING BANCSHARES CORPORATION REPORTS THIRD QUARTER EARNINGS OF $2.0 MILLION OR $0.66 PER SHARE

 WALTHAM, Mass., Oct. 20 /PRNewswire/ -- Sterling Bancshares Corporation (NASDAQ: STLG), the holding company of Sterling Bank, today reported its earnings for the third quarter ended Sept. 30, 1993 of $2.0 million or $0.66 per share on a primary and fully diluted basis, compared to $1.8 million or $0.60 per share for the same period in 1992. For the first nine months of 1993, the results were net income of $5.9 million or $1.93 per share ($1.91 on a fully diluted basis), compared to net income of $6.0 million or $1.99 per share ($1.98 on a fully diluted basis) for the same period in 1992. The results for the first nine months of 1992 were positively impacted by a one-time $1.1 million or $0.37 per share gain realized during the first quarter in connection with adoption of Statement of Financial Accounting Standards No. 109 (SFAS No. 109) "Accounting for Income Taxes."
 Nonperforming assets decreased from $5.9 million at June 30, 1993 to $4.5 million or 0.5 percent of total assets at Sept. 30, 1993 and consisted of $2.7 million in nonperforming loans and $1.8 million in other real estate owned, net. At Sept. 30, 1993, the loan loss reserve was $7.2 million, which represented 158 percent coverage of nonperforming assets and 263 percent coverage of nonperforming loans.
 Total assets at Sept. 30, 1993 were $995.2 million and were comprised primarily of $522.1 million in investments and $439.6 million in net loans. This compares to $587.9 million in investments and $318.4 million in net loans at Sept. 30, 1992. Total deposits were $636.9 million at Sept. 30, 1993.
 On Oct. 20, 1993, the board of directors declared a cash dividend of $0.18 per share. The dividend is payable on Nov. 12, 1993 to shareholders of record on Nov. 1, 1993. At Sept. 30, 1993 the corporation had 3,017,312 shares of common stock outstanding and a net book value of $21.37 per share.
 On Oct. 11, 1993, Sterling Bancshares Corporation announced that Fleet Financial Group has agreed to acquire Sterling Bancshares Corporation, the holding company of Sterling Bank, for approximately $125 million in stock, representing a value of $39.50 for each share of Sterling common stock. The transaction, which is subject to approval by Sterling's stockholders and various federal and state regulatory agencies, is expected to be completed in the spring of 1994.
 Sterling Bank, a wholly owned subsidiary of Sterling Bancshares Corporation, offers a comprehensive line of business and personal banking services from its 13 offices located in nine cities and towns in Middlesex County.
 STERLING BANCSHARES CORPORATION
 Consolidated Statements of Operations
 ($ in thousands, except for per share amounts)
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Unaudited
 INTEREST AND DIVIDEND INCOME:
 Interest and fees
 on mortgage loans $7,735 $6,722 $22,499 $20,124
 Interest and fees
 on other loans 872 528 2,541 1,967
 Interest and dividends
 on investment securities 978 978 2,877 3,140
 Interest on short-term
 investments 31 179 226 485
 Interest on asset-backed
 securities 7,097 9,322 22,475 28,732
 Total interest and
 dividend income 16,713 17,729 50,618 54,448
 INTEREST EXPENSE:
 Interest on deposits 5,262 7,330 16,825 23,427
 Interest on borrowings 2,998 2,701 8,209 8,288
 Total interest expense 8,260 10,031 25,034 31,715
 Net interest income 8,453 7,698 25,584 22,733
 Provision for loan losses 750 750 2,550 2,250
 Net interest income, after
 provision for loan losses 7,703 6,948 23,034 20,483
 OTHER INCOME:
 Gain on sales of securities,
 net 64 --- 1 275
 Service fees 372 344 1,071 1,043
 Miscellaneous 213 118 367 264
 Total other income 649 462 1,439 1,582
 OPERATING EXPENSES:
 Salaries and employee
 benefits 2,567 2,211 7,211 6,458
 Occupancy and equipment
 expenses 804 632 2,330 1,854
 Other real estate
 owned expenses, net 48 42 287 614
 FDIC deposit insurance
 expense 375 380 1,150 1,165
 Other general and
 administrative expenses 1,309 1,307 4,154 4,260
 Total operating expenses 5,103 4,572 15,132 14,351
 Income before income
 taxes and cumulative
 effect of change in
 accounting principle 3,249 2,838 9,341 7,714
 Provision for income taxes 1,209 1,048 3,433 2,851
 Income before cumulative
 effect of change in
 accounting principle 2,040 1,790 5,908 4,863
 Cumulative effect of
 change in accounting
 principle --- --- --- 1,088
 Net income $2,040 $1,790 $5,908 $5,951
 Earnings per share:
 Primary:
 Income before
 cumulative effect
 of change in
 accounting principle 66 cents 60 cents $1.93 $1.62
 Cumulative effect of
 change in accounting
 principle --- --- --- 37 cents
 Net income 66 cents 60 cents $1.93 $1.99
 Fully diluted:
 Income before
 cumulative effect
 of change in
 accounting
 principle 66 cents 60 cents $1.91 $1.61
 Cumulative effect of
 change in accounting
 principle --- --- --- 37 cents
 Net income 66 cents 60 cents $1.91 $1.98
 Weighted average and
 common equivalent
 shares outstdng:
 Primary 3,096,429 3,008,603 3,067,623 2,996,455
 Fully diluted 3,108,572 3,009,493 3,086,903 3,004,166
 Consolidated Balance Sheets
 (dollars in thousands, except for per share amounts)
 (unaudited)
 Sept. 30, Dec. 31, Sept. 30,
 1993 1992 1992
 Assets:
 Cash and due from
 banks $11,999 $13,039 $9,513
 Short-term investments 3,656 52,344 21,927
 Total cash and cash
 equivalents 15,655 65,383 31,440
 Investment securities 83,612 76,159 76,624
 Asset-backed securities 434,805 438,806 489,388
 Loans, net of unearned
 discount 446,779 365,519 322,991
 Allowance for loan losses (7,168) (6,933) (4,588)
 Loans, net 439,611 358,586 318,403
 Banking premises and
 equipment, net 7,419 7,598 6,849
 Other real estate owned, net 1,817 1,277 2,218
 Accrued interest receivable 5,820 5,799 6,086
 Other assets 6,467 6,433 5,502
 Total assets $995,206 $960,041 $936,510
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Liabilities:
 Deposits $636,895 $672,889 $667,040
 Federal Home Loan Bank
 borrowings 96,326 80,000 90,000
 Securities sold under
 agreements to repurchase 188,704 138,952 114,280
 Liability in connection with
 ESOP 142 283 283
 Other liabilities 8,655 8,977 7,526
 Total liabilities 930,722 901,101 879,129
 STOCKHOLDERS' EQUITY
 Serial preferred stock, $0.10
 par value, 5,000,000 shares
 authorized, none issued --- --- ---
 Common stock, $0.10 par value,
 15,000,000 shares authorized,
 3,743,900 shares issued at
 Sept. 30, 1993 and 3,686,900
 at Dec 31, 1992
 and Sept. 30, 1992 374 369 369
 Additional paid-in capital 44,044 43,254 43,218
 Retained earnings 27,005 22,528 21,048
 Total 71,423 66,151 64,635
 Treasury stock at cost-
 731,566 shares at June 30,
 1993, 740,643 shares at
 Dec. 31, 1992 and 749,954 at
 June 30, 1992 (6,797) (6,928) (6,971)
 Unearned compensation-ESOP (142) (283) (283)
 Total stockholders' equity 64,484 58,940 57,381
 Total liabilities and
 stockholders' equity $995,206 $960,041 $936,510
 Capital ratio 6.48 pct. 6.14 pct. 6.13 pct.
 Book value per share $21.37 $20.01 $19.51
 Shares outstanding 3,017,312 2,946,257 2,941,631
 -0- 10/20/93
 /CONTACT: Karen A. Wharton, senior vice president, corporate communications of Sterling Bancshares, 617-894-7790, x215/
 (STLG)


CO: Sterling Bancshares Corporation ST: Massachusetts IN: FIN SU: ERN

JL-DJ -- NE012 -- 4785 10/20/93 17:01 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 20, 1993
Words:1313
Previous Article:RECOVERY ENGINEERING REPORTS THIRD QUARTER RESULTS; 128-PERCENT GAIN IN NET INCOME FOR NINE MONTHS
Next Article:STERLING BANCSHARES CORPORATION DECLARES QUARTERLY DIVIDEND
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters