MOUNT LAUREL, N.J., May 16 /PRNewswire-FirstCall/ -- Sterling
Banks, Inc. (NASDAQ:STBK), the newly formed bank holding company of
Sterling Bank, today reported a net loss for the quarter ending
March 31, 2007, of $49,000. Net income for the quarter ended March
31, 2006 amounted to $382,000. On a basic and diluted per share
basis, the net loss for the first quarter of 2007 was $0.01 per
share, compared to net income of $0.08 per share (on both a basic
and diluted basis and adjusted for stock dividends), for the first
quarter of 2006. As of March 31, 2007, assets totaled $437 million,
compared to assets of $354 million on March 31, 2006. Total loans
amounted to $327 million on March 31, 2007, compared to total loans
on March 31, 2006, of $268 million. Total deposits were $389
million on March 31, 2007, compared to $298 million on March 31,
2006. These results reflect the completion on March 16, 2007, of
the acquisition of Farnsworth Bancorp, Inc., and its primary
operating subsidiary, Peoples Savings Bank, as previously
announced. Subsequent to this, on April 13th, 2007, organizational
and operating activities were consolidated, and the two locally
focused entities now operate exclusively as Sterling Bank. On May
1, 2007, Sterling Banks, Inc. completed the issuance of $6.0
million of Trust Preferred Securities, providing enhanced capital
to support the activities of the corporation. The framework and
basis for the results of the first quarter 2007 was the execution
of the June 23, 2006 definitive agreement to purchase Peoples
Savings Bank, and the formation of the bank holding company,
Sterling Banks, Inc. as the corporation through which the
acquisition would be completed. Additionally, and included in this
process was the attainment of the required regulatory agency
approvals, including the Securities and Exchange Commission, the
Federal Reserve System, and the New Jersey Department of Banking,
along with authorization to commence trading under the new name and
symbol, STBK, by NASDAQ. Robert H. King, President and CEO noted,
"We are excited to welcome our new shareholders, customers, and
staff. Sterling Bank has significantly elevated its operating
platform, and from its expanded base of 11 retail locations,
serving a wider geographic region, is well positioned in very
attractive markets, and prepared to compete at enhanced levels. We
are quite pleased with the operating transition which has now been
completed." Sterling Banks, Inc. Consolidated Financial Highlights
(unaudited) As of, and for the three months ended, March 31, 2007
and March 31, 2006 Three Months Ended March 31, 2007 March 31, 2006
INCOME STATEMENT Interest income $5,641,000 $5,633,000 Interest
expense 2,733,000 2,441,000 Net interest income 2,908,000 3,192,000
Provision for loan losses 56,000 45,000 Net interest income after
provision for loan losses 2,852,000 3,147,000 Noninterest income
169,000 154,000 Noninterest expenses 3,084,000 2,685,000 (Loss)
Income before taxes (63,000) 616,000 Income tax (benefit) expense
(14,000) 234,000 Net (loss) income $(49,000) $382,000 PER SHARE
DATA Basic and diluted (losses) earnings per share $0.01 $0.08
Dividends paid on common shares $0.03 $0.03 Average shares
outstanding - Basic 4,924,000 4,766,000 Average shares outstanding
- Diluted 4,924,000 4,874,000 BALANCE SHEET Assets Cash & due
from banks $ 20,696,000 $ 13,876,000 Federal funds sold 2,272,000
4,999,000 Total investment securities 55,370,000 54,503,000
Restricted stock 1,407,000 1,835,000 Total loans 327,425,000
267,954,000 Allowance for loan losses (2,833,000) (1,198,000) Other
assets 32,247,000 11,538,000 Total assets $436,584,000 $353,507,000
Liabilities Total deposits $389,046,000 $298,338,000 Total
borrowings 1,050,000 19,735,000 Other liabilities 2,964,000
1,125,000 Total liabilities 393,060,000 319,198,000 Shareholders'
equity Common stock 11,112,000 9,078,000 Additional paid-in capital
30,200,000 23,281,000 Retained earnings 2,738,000 2,992,000
Accumulated other comprehensive losses (526,000) (1,042,000) Total
shareholders' equity 43,524,000 34,309,000 Total liabilities and
shareholders' equity $436,584,000 $353,507,000 PERFORMANCE RATIOS
Book value per share $7.83 $7.20 Tangible book value per share
$5.10 $7.20 Return on average assets (0.06%) 0.43% Return on
average equity (0.73%) 4.53% Net interest margin 3.64% 3.82%
Sterling Banks, Inc. is a bank holding company which commenced
operations in March 2007, with assets of $437 million as of March
31, 2007 and is headquartered in Mount Laurel Township, Burlington
County. Sterling Bank is a community bank which commenced
operations in December 1990 with the purpose of serving consumers
and small to medium-sized businesses in its market area. Sterling
Bank's main office is located in Mount Laurel, New Jersey, and its
ten other Community Banking Centers are located in Burlington and
Camden Counties in New Jersey. The Bank's deposits are insured to
the applicable regulatory limits per depositor by the Federal
Deposit Insurance Corporation. Sterling Bank is a member of the
Federal Reserve System. The common stock of Sterling Banks, Inc. is
traded on the NASDAQ Capital Market under the symbol "STBK". For
additional information about Sterling Bank and Sterling Banks, Inc.
visit our website at http://www.sterlingnj.com/. This news release
may contain certain forward-looking statements, such as statements
of the Company's plans, objectives, expectations, estimates and
intentions. Forward-looking statements may be identified by the use
of words such as "expects," "subject," "believe," "will,"
"intends," "will be" or "would." These statements are subject to
change based on various important factors (some of which are beyond
the Company's control). Readers should not place undue reliance on
any forward-looking statements (which reflect management's analysis
only as of the date of which they are given). These factors include
general economic conditions, trends in interest rates, the ability
of our borrowers to repay their loans, the ability of the Bank to
effectively manage its growth, and results of regulatory
examinations, among other factors. Sterling Banks, Inc. cautions
that the foregoing list of important factors is not exclusive.
Readers should carefully review the risk factors described in other
documents the Company files from time to time with the Securities
and Exchange Commission, including the Company's Annual Report on
Form 10-KSB for the year ended December 31, 2006, Quarterly Reports
on Form 10-QSB, and Current Reports on Form 8-K. DATASOURCE:
Sterling Banks, Inc. CONTACT: Robert H. King, President, , or R.
Scott Horner, Executive Vice President, , both of Sterling Banks,
Inc., +1-856-273-5900 Web site: http://www.sterlingnj.com/
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