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STERLING BANCSHARES CORPORATION REPORTS SECOND QUARTER EARNINGS OF $2.0 MILLION OR 67 CENTS PER SHARE

 WALTHAM, Mass, July 21 /PRNewswire/ -- Sterling Bancshares Corporation (NASDAQ: STLG), the holding company of Sterling Bank, today reported its earnings for the second quarter ended June 30, 1993 of $2.0 million or 67 cents per share, compared to $1.9 million or 65 cents per share for the same period in 1992. For the first six months of 1993, the results were net income of $3.9 million or $1.30 per share, compared to net income of $4.2 million or $1.42 per share for the same period in 1992. The results for the first half of 1992 were positively impacted by a one-time $1.1 million or 37 cents 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."
 Non performing assets declined from $9.2 million at March 31, 1993 to $5.9 million or .61 percent of total assets at June 30, 1993 and in other real estate owned, net. At June 30, 1993, the loan loss reserve was $6.5 million, which represented 111 percent coverage of nonperforming assets.
 Total assets at June 30, 1993 were $968.1 million and were comprised primarily of $527.4 million in investments and $407.7 million in net loans. This compares to $587.2 million in investments and $313.6 million in net loans at June 30, 1992. Total deposits were $637.4 million at June 30, 1993.
 On July 21, 1993, the board of directors declared a cash dividend of 18 cents per share, an increase of 20 percent or 3 cents per share. The dividend is payable on Aug. 13, 1993 to shareholders of record on Aug. 2, 1993. At June 30, 1993 the corporation had 3,011,334 shares of common stock outstanding and a net book value of $20.86 per share.
 Sterling Bank, a wholly owned subsidiary of Sterling Bancshares Corporation, offers a comprehensive line of business and personal banking services from its 13 offices located in nine cities and towns in Middlesex County.
 STERLING BANCSHARES CORPORATION
 Consolidated Statements of Income
 ($ in thousands, except for per share amounts)
 Three Months Ended Six Months Ended
 June 30 June 30
 1993 1992 1993 1992
 Unaudited
 INTEREST AND DIVIDEND INCOME:
 Interest and fees
 on mortgage loans $7,452 $6,814 $14,764 $13,402
 Interest and fees
 on other loans 840 766 1,669 1,439
 Interest and dividends
 on investment securities 987 1,053 1,899 2,162
 Interest on short-term
 investments 31 177 195 306
 Interest on asset-backed
 securities 7,712 9,654 15,378 19,410
 Total interest and
 dividend income 17,022 18,464 33,905 36,719
 INTEREST EXPENSE:
 Interest on deposits 5,530 7,666 11,563 16,097
 Interest on borrowings 2,758 2,828 5,211 5,587
 Total interest expense 8,288 10,494 16,774 21,684
 Net interest income 8,734 7,970 17,131 15,035
 Provision for loan losses 800 750 1,800 1,500
 Net interest income, after
 provision for loan losses 7,934 7,220 15,331 13,535
 OTHER INCOME:
 Gain (loss) on sales of
 securities, net (66) 275 (63) 275
 Service fees 363 364 699 699
 Miscellaneous 68 87 154 146
 Total other income 365 726 790 1,120
 OPERATING EXPENSES:
 Salaries and employee
 benefits 2,395 2,182 4,644 4,247
 Occupancy and equipment
 expenses 754 652 1,526 1,222
 Other real estate
 owned expenses, net 43 233 239 572
 FDIC deposit insurance
 expense 388 392 775 785
 Other general and
 administrative expenses 1,540 1,387 2,845 2,953
 Total operating expenses 5,120 4,846 10,029 9,779
 Income before income
 taxes, and cumulative
 effect of change in
 accounting principle 3,179 3,100 6,092 4,876
 Provision for income taxes 1,176 1,195 2,224 1,803
 Income before cumulative
 effect of change
 in accounting principle 2,003 1,905 3,868 3,073
 Cumulative effect of change
 in method of change in
 accounting principle --- --- --- 1,088
 Net income $2,003 $1,905 $3,868 $4,161
 Earnings per share:
 Income before
 cumulative effect
 of change in
 accounting principle 67 cents 65 cents $1.30 $1.05
 Cumulative effect of
 change in accounting
 principle --- --- --- 37 cents
 Net income 67 cents 65 cents $1.30 $1.42
 Weighted average shares
 outstanding 3,000,023 2,934,271 2,981,944 2,931,319
 CONSOLIDATED BALANCE SHEETS
 ($ in thousands, except per share amounts)
 (unaudited)
 June 30, Dec. 31, June 30,
 1993 1992 1992
 Assets:
 Cash and due from
 banks $10,449 $13,039 $13,100
 Short-term investments 3,356 52,344 14,319
 Total cash and cash
 equivalents 13,805 65,383 27,419
 Investment securities 79,891 76,159 77,215
 Asset-backed securities 444,192 438,806 495,706
 Loans, net of unearned
 discount 414,215 365,519 318,002
 Allowance for loan losses (6,546) (6,933) (4,401)
 Loans, net 407,669 358,586 313,601
 Banking premises and
 equipment, net 7,393 7,598 6,520
 Other real estate owned, net 2,863 1,277 2,488
 Accrued interest receivable 5,902 5,799 6,521
 Other assets 6,355 6,433 5,676
 Total assets $968,070 $960,041 $935,146
 LIABILITIES AND STOCKHOLDERS EQUITY
 Liabilities:
 Deposits $637,433 $672,889 $659,742
 Federal Home Loan Bank
 borrowings 86,326 80,000 80,000
 Securities sold under
 agreements to repurchase 174,369 138,952 132,487
 Liability in connection with
 ESOP 142 283 283
 Other liabilities 6,978 8,977 6,758
 Total liabilities 905,248 901,101 879,270
 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,
 3,742,900 shares issued at
 June 30, 1993 and 3,686,900 at
 Dec. 31, 1992 and June 30, 1992 374 369 369
 Additional paid-in capital 43,926 43,254 43,194
 Retained earnings 25,507 22,528 19,611
 Total 69,807 66,151 63,174
 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 (6,843) (6,928) (7,015)
 Unearned compensation-ESOP (142) (283) (283)
 Total stockholders' equity 62,822 58,940 55,876
 Total liabilities and
 stockholders' equity $968,070 $960,041 $935,146
 Capital ratio 6.49 pct. 6.14 pct. 5.98 pct.
 Book value per share $20.86 $20.01 $19.03
 Shares outstanding 3,011,334 2,946,257 2,936,946
 -0- 7/21/93


/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

CM -- NE008 -- 4017 07/21/93 13:57 EDT
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Date:Jul 21, 1993
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