Sterling Fi­nan­cial re­ports 3Q earn­ings

The Pak Banker - - Front Page -

SPOKANE, WASH

Sterling Fi­nan­cial to­day an­nounced its oper­at­ing re­sults for the quar­ter ended Septem­ber 30, 2012. For the quar­ter, Sterling recorded net in­come of $30.6 mil­lion, or $0.49 per di­luted com­mon share, com­pared to $320.9 mil­lion, or $5.13 per di­luted com­mon share, for the quar­ter ended June 30, 2012, and $11.3 mil­lion, or $0.18 per di­luted com­mon share, for the quar­ter ended Septem­ber 30, 2011. As pre­vi­ously re­ported, net in­come for the prior quar­ter in­cluded an in­come tax ben­e­fit of $288.8 mil­lion as­so­ci­ated with the re­lease of a de­ferred tax as­set val­u­a­tion al­lowance.

Gross loans were $6.14 bil­lion, a 9 per­cent in­crease over Septem­ber 30, 2011. Port­fo­lio loan orig­i­na­tions were $457.1 mil­lion, a 31 per­cent in­crease over the third quar­ter of 2011.

De­posit costs were re­duced by 33 ba­sis points com­pared to the third quar­ter of 2011. In­come from mort­gage bank­ing op­er­a­tions was $28.5 mil­lion, up 74 per­cent over the third quar­ter of 2011. Non­per­form­ing as­sets to to­tal as­sets was 2.73 per­cent, down from 4.74 per­cent at Septem­ber 30, 2011. Net charge-offs to av­er­age loans (an­nu­al­ized) was 0.37 per­cent, down from 1.99 per­cent for the third quar­ter of 2011. Tan­gi­ble book value was $19.44 per com­mon share, com­pared to $13.66 per com­mon share at Septem­ber 30, 2011. Tier 1 lever­age ra­tio was 12.7 per­cent, com­pared to 11.1 per­cent at Septem­ber 30, 2011.

The solid fi­nan­cial per­for­mance for the third quar­ter re­flects Sterling's progress on our fun­da­men­tal oper­at­ing ob­jec­tives, said Greg Seibly, Sterling's pres­i­dent and chief ex­ec­u­tive of­fi­cer. We are grow­ing loans and im­prov­ing the mix and cost of de­posits and as­set qual­ity met­rics. Our man­age­ment team re­mains fo­cused on im­ple­ment­ing ini­tia­tives to re­duce our in­fra­struc­ture costs.

To­tal loan balances were $6.14 bil­lion at Septem­ber 30, 2012, com­pared to $6.08 bil­lion at the end of the prior quar­ter, and $5.62 bil­lion at Septem­ber 30, 2011. Dur­ing the third quar­ter of 2012, Sterling orig­i­nated $457.1 mil­lion of new port­fo­lio loans (which ex­clude res­i­den­tial loans held for sale), com­pared to $458.6 mil­lion for the prior quar­ter and $348.4 mil­lion for third quar­ter of 2011.

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