EX-99.1 3 dex991.txt PRESS RELEASE EXHIBIT 99.1 NEWS RELEASE For More Information Contact: For Immediate Release - Eugene S. Putnam, Jr., Chief Financial April 18, 2002 Officer 713-507-7292 STERLING BANCSHARES REPORTS 25% INCREASE IN NET INCOME HOUSTON, Texas -- Sterling Bancshares, Inc. (Nasdaq: SBIB) today reported net income for the first quarter of 2002 of $8.3 million, up 25% from the $6.6 million reported in the first quarter of 2001. Diluted earnings per share of $.19 was up 20% from the $.16 per diluted share earned in the first quarter of 2001. For the first quarter of 2002, annualized return on average assets was 1.24%, annualized return on average common equity was 15.06% and annualized return on average tangible common equity was 20.25%. "We are pleased to report solid first quarter results," commented J. Downey Bridgwater, President and Chief Executive Officer of Sterling. "Despite a difficult interest rate environment and a lower contribution from our mortgage company, we were able to produce quality results driven by loan growth, margin expansion and improved credit quality." Tax equivalent net interest income was $33.5 million in the first quarter of 2002, up 21% from the first quarter of 2001. The tax equivalent net interest margin for the first quarter of 2002 was 5.69% as compared to 5.93% for the first quarter of 2001. Average loans held for investment for the first quarter of 2002 were $1.7 billion, up 22% from the first quarter of 2001. Average total deposits for the quarter ended March 31, 2002 were $2.2 billion, a 27% increase from the same period a year ago. Adjusting for the acquisition of Community Bancshares Inc. in December 2001, average loans held for investment and average total deposits in the first quarter of 2002 were up 16% and 21% respectively from the first quarter of 2001. Noninterest income was $16.2 million in the first quarter, up 26% from the first quarter of 2001. Noninterest income represented 33% of total revenue in the first quarter of 2002. Noninterest expense was $34.4 million in the quarter, up 22% from the first quarter of 2001. Net charge-offs in the first quarter of 2002 were $1.8 million or .37% of average loans, compared to $1.5 million or .40% of average loans in the first quarter of 2001. The provision for loan losses was $2.6 million for the first quarter, up from $2.4 million for the first quarter of 2001. The allowance for loan losses at March 31, 2002 was $23.8 million and represented 1.40% of loans held for investment, up from 1.29% a year ago. -more- Sterling Bancshares, Inc., New Release April 18, 2002 Page 2 Nonperforming assets were $14.3 million at March 31, 2002 or .72% of loans and foreclosed properties compared to $13.8 million and .79% of loans and foreclosed properties at March 31, 2001. Nonperforming assets at March 31, 2002 comprised .51% of total assets, compared to .58% at December 31, 2001 and .56% a year ago. At March 31, 2002, Sterling had total assets of $2.8 billion and total deposits of $2.3 billion. Equity capital of $223.8 million represented 8.02% of total assets at March 31, 2002. Book value per share was $5.10. In conjunction with Sterling's first quarter earnings release, Downey Bridgwater, President and Chief Executive Officer, and Eugene Putnam, Chief Financial Officer, invite you to listen to its conference call that will be broadcast live over the Internet on Thursday, April 18, 2002 at 10:00AM EDT. To participate, please visit Sterling's web site at www.banksterling.com. Sterling Bancshares, Inc. is a Houston-based bank holding company that operates 38 community-banking offices in the greater metro areas of Dallas, Houston, San Antonio, and South Texas. Sterling also provides mortgage-banking services through its 80 percent-owned subsidiary, Sterling Capital Mortgage Company. Sterling's common stock is traded through the Nasdaq National Market System under the symbol SBIB. For more information on Sterling Bancshares, please visit the company's web site at www.banksterling.com. Except for historical information contained herein, this press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties, including, but not limited to, the following: general business and economic conditions in the markets the Company serves may be less favorable than anticipated which could decrease the demand for loan, deposit and other financial services and increase loan delinquencies and defaults; changes in market rates and prices may adversely impact the value of securities, loans, deposits and other financial instruments; the Company's liquidity requirements could be adversely affected by changes in its assets and liabilities; legislative or regulatory developments including changes in laws concerning taxes, banking, securities, insurance and other aspects of the financial securities industry; competitive factors may increase, including product and pricing pressures among financial services organizations; and changes in fiscal and governmental policies of the United States federal government could have an adverse effect on the Company's business. Please also read the additional risks and factors described from time to time in the Company's reports filed with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2001. -more- STERLING BANCSHARES, INC. FINANCIAL HIGHLIGHTS (DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA) Page 3
THREE MONTHS ENDED % 2002 2001 CHANGE ------ ------ ------ EARNINGS & DIVIDENDS Period Ended March 31 Net income $ 8,298 $ 6,641 24.95 % Earnings per share Diluted $ 0.19 $ 0.16 19.50 Basic $ 0.19 $ 0.16 19.33 Diluted cash $ 0.19 $ 0.16 18.86 Average shares outstanding Diluted 44,658 42,711 4.56 Basic 43,779 41,809 4.71 Dividends paid per common share $ 0.040 $ 0.0367 9.08 End of period common shares outstanding 43,800 41,988 4.32 End of period book value per share $ 5.10 $ 4.16 22.60 SELECTED RATIOS Net interest margin 5.69% 5.93% (24) bps Annualized return on average assets 1.24% 1.28% (4) Annualized return on average equity 15.06% 15.96% (90) Annualized return on average tangible common equity (a) 20.25% 16.86% 339 Tier 1 capital ratio 9.67% 9.75% (8) Total capital ratio 10.69% 10.75% (6) Tier 1 leverage ratio 8.26% 9.83% (157) Tangible common ratio 6.10% 6.07% 3 CONDENSED BALANCE SHEET Average Balances Loans available for sale 231,392 145,195 59.37 % Loans held for investment 1,670,994 1,373,500 21.66 --------- --------- Total loans 1,902,386 1,518,695 25.26 Securities 332,701 307,431 8.22 Trading assets 103,262 - - Other earning assets 46,288 61,404 (24.62) Allowance for loan losses (23,758) (17,377) 36.72 Goodwill 54,812 6,588 732.00 Other assets 296,345 234,962 26.12 --------- --------- Total assets 2,712,036 2,111,703 28.43 ========= ========= Noninterest earning deposits 756,867 566,869 33.52 Interest earning deposits 1,456,861 1,179,649 23.50 --------- --------- Total deposits 2,213,728 1,746,518 26.75 Other borrowings 161,353 143,033 12.81 Notes Payable 20,879 1,600 1,204.94 Other liabilities 35,173 15,816 122.39 --------- --------- Total liabilities 2,431,133 1,906,967 27.49 Trust preferred securities 57,500 35,938 60.00 Realized shareholders' equity 219,197 166,809 31.41 Accumulated other comprehensive income 4,206 1,989 111.46 --------- --------- Total liabilities and shareholders' equity 2,712,036 2,111,703 28.43 ========= =========
(a) The annualized return on average tangible equity is net income divided by average common equity excluding goodwill and core deposit intangibles. -more- STERLING BANCSHARES, INC. FINANCIAL HIGHLIGHTS (DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA) Page 4
THREE MONTHS ENDED % 2002 2001 CHANGE ------ ------ ------ Period Ended March 31 Loans available for sale 291,469 215,821 35.05% Loans held for investment 1,705,127 1,525,918 11.74 --------- --------- Total loans 1,996,596 1,741,739 14.63 Securities 321,601 378,790 (15.10) Trading assets 98,461 - - Other earning assets 42,718 106,538 (59.90) Allowance for loan losses (23,798) (19,631) 21.23 Goodwill 54,812 25,820 112.29 Other assets 298,983 243,697 22.69 --------- --------- Total assets 2,789,373 2,476,953 12.61 ========= ========= Noninterest earning deposits 817,886 686,635 19.12 Interest earning deposits 1,458,865 1,377,013 5.94 --------- --------- Total deposits 2,276,751 2,063,648 10.33 Other borrowings 171,191 155,390 10.17 Notes payable 20,879 1,600 1,204.94 Other liabilities 34,845 21,569 61.55 --------- --------- Total liabilities 2,503,666 2,242,207 11.66 Trust preferred securities 57,500 57,500 - Minority interest 4,447 2,290 94.19 Realized shareholders' equity 220,319 172,124 28.00 Accumulated other comprehensive income 3,441 2,832 21.50 --------- --------- Total liabilities and shareholders' equity 2,789,373 2,476,953 12.61 ========= =========
-more- STERLING BANCSHARES, INC. SELECTED FINANCIAL HIGHLIGHTS (DOLLARS IN THOUSANDS) Page 5
1ST QTR 4TH QTR 3RD QTR 2ND QTR 1ST QTR 2002 2001 2001 2001 2001 ------- ------- ------- ------- ------- CREDIT DATA Allowance for loans - beginning 22,927 21,431 20,293 19,631 16,862 Allowance from acquisitions - 863 - - 1,895 Provision for loan losses 2,623 3,092 3,120 3,112 2,360 Net charge-offs (1,752) (2,459) (1,982) (2,450) (1,486) ---------- ---------- ---------- ---------- ---------- Allowance for loan losses - ending 23,798 22,927 21,431 20,293 19,631 ========== ========== ========== ========== ========== Nonaccrual loans 12,551 14,179 11,585 11,127 10,432 Restructured loans 15 - - 1,356 Other real estate 1,677 1,837 1,887 1,738 1,895 Other repossessed assets 76 127 205 200 153 ---------- ---------- ---------- ---------- ---------- Total nonperforming assets 14,319 16,143 13,677 13,065 13,836 ========== ========== ========== ========== ========== Accruing loans past due 90 days or more 1,888 1,360 1,867 841 299 Nonperforming assets to loans, ORE and ORA 0.72% 0.84% 0.78% 0.74% 0.79% Nonperforming loans to total loans 0.63% 0.74% 0.66% 0.63% 0.68% Allowance to period-end loans 1.19% 1.19% 1.23% 1.15% 1.13% Allowance to loans held for investment 1.40% 1.38% 1.37% 1.30% 1.29% Allowance to nonperforming assets 166.20% 142.02% 156.69% 155.32% 141.88% Net charge-offs to average loans (annualized) 0.37% 0.54% 0.45% 0.57% 0.40% Provision for loan losses to average loans (annualized) 0.56% 0.68% 0.71% 0.73% 0.63% SELECTED AVERAGE BALANCES Loans available for sale 231,392 213,988 177,610 180,566 145,195 Loans held for investment 1,670,994 1,582,103 1,558,697 1,540,352 1,373,500 Total loans 1,902,386 1,796,091 1,736,307 1,720,918 1,518,695 Securities 332,701 346,142 361,273 379,216 307,431 Trading assets 103,262 94,616 62,346 39,263 - Other earning assets 46,288 79,549 88,185 70,961 61,404 Goodwill 54,812 36,006 26,707 26,592 6,588 Earning assets 2,384,637 2,316,398 2,248,111 2,210,358 1,887,530 Total assets 2,712,036 2,634,682 2,538,475 2,490,034 2,111,703 Noninterest earning deposits 756,867 769,357 706,271 667,495 566,869 Interest earning deposits 1,456,861 1,402,956 1,374,870 1,365,119 1,179,649 Total deposits 2,213,728 2,172,313 2,081,141 2,032,614 1,746,518 Other borrowings 161,353 178,857 183,164 193,569 143,033 Notes Payable 20,879 7,887 1,600 1,600 1,600 Trust preferred securities 57,500 57,500 57,500 57,500 35,938 Shareholders' equity 223,403 197,959 189,952 181,633 168,798 FUNDINGS AT MORTGAGE COMPANY Original production 474,572 473,155 492,523 511,384 369,974 Refinanced 201,934 358,350 122,649 159,409 125,188 ---------- ---------- ---------- --------- ---------- Total 676,506 831,505 615,172 670,793 495,162 ========== ========== ========== ========= ==========
-more- STERLING BANCSHARES, INC. CONSOLIDATED BALANCE SHEET (DOLLARS IN THOUSANDS) Page 6
PERIOD END AS OF INCREASE/(DECREASE) -------------------------- ------------------ 3/31/02 12/31/01 AMOUNT % --------- ---------- ------ ----- ASSETS Cash and cash equivalents $ 133,523 $ 148,295 $(14,772) (10.0)% Interest-bearing deposits in financial institutions 2,099 2,114 (15) (0.7) Securities purchased with an agreement to resell 1,732 12,313 (10,581) (85.9) Trading assets 98,461 118,511 (20,050) (16.9) Available-for-sale securities, at fair value 249,332 264,491 (15,159) (5.7) Held-to-maturity securities, at amortized cost 72,269 78,408 (6,139) (7.8) Loans held for sale 291,469 261,505 29,964 11.5 Loans held for investment: Commercial and industrial 518,408 513,866 4,542 0.9 Real estate: Commercial 560,847 530,076 30,771 5.8 Mortgage 173,295 186,527 (13,232) (7.1) Construction and development 297,234 282,304 14,930 5.3 Consumer/other 155,380 154,075 1,305 0.8 Unearned premium (discount) (37) (60) 23 (38.3) ---------- ---------- -------- Loans held for investment 1,705,127 1,666,788 38,339 2.3 Allowance for credit losses (23,798) (22,927) (871) 3.8 ---------- ---------- -------- Loans, net 1,681,329 1,643,861 37,468 2.3 Accrued interest receivable 12,080 11,593 487 4.2 Real estate acquired by foreclosure 1,677 1,837 (160) (8.7) Premises and equipment, net 53,927 54,175 (248) (0.5) Goodwill, net 54,812 54,812 - - Core deposit intangible 1,941 2,036 (95) (4.7) Mortgage servicing rights 20,720 19,592 1,128 5.8 Other assets 114,002 104,547 9,455 9.0 ---------- ---------- -------- TOTAL ASSETS $2,789,373 $2,778,090 $ 11,283 0.4 ========== ========== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Demand deposits: Noninterest-bearing $ 817,886 $ 797,850 $ 20,036 2.5 Interest-bearing 878,593 879,542 (949) (0.1) Certificates of deposit and other time deposits: Jumbo 325,858 333,091 (7,233) (2.2) Nonjumbo 254,414 258,497 (4,083) (1.6) ---------- ---------- -------- Total deposits 2,276,751 2,268,980 7,771 0.3 Securities sold under agreements to repurchase and other borrowed funds 171,191 180,298 (9,107) (5.1) Note payable 20,879 20,879 - - Accrued interest payable and other liabilities 34,845 28,832 6,013 20.9 ---------- ---------- -------- Total liabilities 2,503,666 2,498,989 4,677 0.2 COMPANY-OBLIGATED MANDITORILY REDEEMABLE TRUST PREFERRED SECURITIES OF SUBSIDIARY TRUST 57,500 57,500 - - MINORITY INTEREST IN STERLING CAPITAL MORTGAGE COMPANY 4,447 4,232 215 5.1 Shareholders' equity: Convertible preferred stock, $1 par value, 1 million shares authorized 39 39 - - Common stock, $1 par value, 50 million shares authorized 43,800 43,770 30 0.1 Capital surplus 42,791 42,526 265 0.6 Retained earnings 133,689 127,144 6,545 5.1 Accumulated other comprehensive income--net unrealized gain on available-for-sale securities, net of tax 3,441 3,890 (449) (11.5) ---------- ---------- -------- Total shareholders' equity 223,760 217,369 6,391 2.9 ---------- ---------- -------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $2,789,373 $2,778,090 $ 11,283 0.4 ========== ========== ========
-more- STERLING BANCSHARES, INC. CONSOLIDATED INCOME STATEMENT (DOLLARS IN THOUSANDS) Page 7
1ST QTR INCREASE/(DECREASE) --------------------- ------------------- 2002 2001 Amount % ------ ------ ------ ----- Interest income: Loans, including fees $34,814 $35,579 $ (765) (2.15)% Securities: Taxable 3,976 3,757 219 5.83 Tax-exempt 781 853 (72) (8.44) Federal funds sold and securities purchased under agreements to resell 215 988 (773) (78.24) Trading assets 1,050 - 1,050 - Deposits in financial institutions 29 10 19 190.00 ------- ------- ------- Total interest income 40,865 41,187 (322) (0.78) Interest expense: Demand and savings deposits 2,380 4,783 (2,403) (50.24) Certificates and other time deposits 4,512 7,173 (2,661) (37.10) Other borrowed funds 726 1,989 (1,263) (63.50) Note payable 203 33 170 515.15 ------- ------- ------- Total interest expense 7,821 13,978 (6,157) (44.05) ------- ------- ------- NET INTEREST INCOME 33,044 27,209 5,835 21.45 Provision for credit losses 2,623 2,360 263 11.14 ------- ------- ------- NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 30,421 24,849 5,572 22.42 Noninterest income: Customer service fees 4,102 2,797 1,305 46.66 Gain on sale of mortgage loans 4,129 4,284 (155) (3.62) Mortgage origination income 3,393 2,327 1,066 45.81 Other 4,566 3,413 1,153 33.78 ------- ------- ------- Total noninterest income 16,190 12,821 3,369 26.28 Noninterest expense: Salaries and employee benefits 19,069 15,806 3,263 20.64 Occupancy expense 5,182 3,733 1,449 38.82 Net loss and carrying costs of real estate acquired by foreclosure 66 15 51 340.00 FDIC assessment 52 96 (44) (45.83) Technology 1,214 1,181 33 2.79 Postage and delivery charges 730 508 222 43.70 Supplies 539 407 132 32.43 Professional fees 709 667 42 6.30 Minority interest expense: Company-obligated mandatorily redeemable trust preferred securities of subsidiary trusts 1,330 748 582 77.81 Sterling Capital Mortgage Company 215 331 (116) (35.05) Conversion costs related to acquisitions - 1,030 (1,030) (100.00) Other 5,251 3,530 1,721 48.75 ------- ------- ------- Total noninterest expense 34,357 28,052 6,305 22.48 NET INCOME BEFORE INCOME TAXES 12,254 9,618 2,636 27.41 Provision for income taxes 3,956 2,977 979 32.89 ------- ------- ------- NET INCOME $ 8,298 $ 6,641 $ 1,657 24.95 ======= ======= ======= EARNINGS PER SHARE: Basic $0.19 $0.16 $0.03 19.33 ======= ======= ======= Diluted $0.19 $0.16 $0.03 19.50 ======= ======= ======= Diluted cash $0.19 $0.16 $0.03 18.86 ======= ======= ======= Weighted average basic shares 43,779 41,809 1,970 4.71 Weighted average diluted shares 44,658 42,711 1,947 4.56
-more- STERLING BANCSHARES, INC. CONSOLIDATED INCOME STATEMENT (DOLLARS IN THOUSANDS) Page 8
1ST QTR 4TH QTR 3RD QTR 2ND QTR 1ST QTR 2002 2001 2001 2001 2001 ---- ---- ---- ---- ---- Interest income: Loans, including fees $34,814 $35,098 $37,375 $38,132 $35,579 Securities: Taxable 3,976 3,919 4,400 5,045 3,757 Tax-exempt 781 800 814 837 853 Federal funds sold and securities purchased under agreements to resell 215 644 1,164 782 988 Trading assets 1,050 870 1,120 797 - Deposits in financial institutions 29 22 22 25 10 ------- ------- ------- ------- ------- Total interest income 40,865 41,353 44,895 45,618 41,187 Interest expense: Demand and savings deposits 2,380 2,847 4,473 4,812 4,783 Certificates and other time deposits 4,512 5,390 6,269 7,309 7,173 Other borrowed funds 726 1,031 1,794 2,047 1,989 Note payable 203 49 20 33 33 ------- ------- ------- ------- ------- Total interest expense 7,821 9,317 12,556 14,201 13,978 ------- ------- ------- ------- ------- NET INTEREST INCOME 33,044 32,036 32,339 31,417 27,209 Provision for credit losses 2,623 3,092 3,120 3,112 2,360 ------- ------- ------- ------- ------- NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 30,421 28,944 29,219 28,305 24,849 Noninterest income: Customer service fees 4,102 4,121 4,027 3,889 2,797 Gain on sale of mortgage loans 4,129 6,242 6,489 7,191 4,284 Mortgage origination income 3,393 3,768 526 3,771 2,327 Other 4,566 5,656 3,129 4,541 3,413 ------- ------- ------- ------- ------- Total noninterest income 16,190 19,787 14,171 19,392 12,821 Noninterest expense: Salaries and employee benefits 19,069 17,398 15,187 20,640 15,806 Occupancy expense 5,182 5,293 4,549 4,709 3,733 Net loss and carrying costs of real estate acquired by foreclosure 66 44 35 82 15 FDIC assessment 52 171 89 114 96 Technology 1,214 1,373 1,296 1,491 1,181 Postage and delivery charges 730 715 691 663 508 Supplies 539 542 582 495 407 Professional fees 709 1,141 737 658 667 Minority interest expense: Company-obligated mandatorily redeemable trust preferred securities of subsidiary trusts 1,330 1,326 1,329 1,313 748 Sterling Capital Mortgage Company 215 798 617 527 331 Conversion costs related to acquisitions - 957 1,194 - 1,030 Other 5,251 6,405 4,795 4,669 3,530 ------- ------- ------- ------- ------- Total noninterest expense 34,357 36,163 31,101 35,361 28,052 NET INCOME BEFORE INCOME TAXES 12,254 12,568 12,289 12,336 9,618 Provision for income taxes 3,956 4,569 4,416 4,448 2,977 ------- ------- ------- ------- ------- NET INCOME $ 8,298 $ 7,999 $ 7,873 $ 7,888 $ 6,641 ======= ======= ======= ======= ======= EARNINGS PER SHARE: Basic $ 0.19 $ 0.19 $ 0.19 $ 0.19 $0.16 ======= ======= ======= ======= ======= Diluted $ 0.19 $ 0.18 $ 0.18 $ 0.18 $0.16 ======= ======= ======= ======= ======= Diluted cash $ 0.19 $ 0.19 $ 0.19 $ 0.19 $0.16 ======= ======= ======= ======= ======= Weighted average basic shares 43,779 42,558 42,263 42,080 41,809 Weighted average diluted shares 44,658 43,346 43,224 42,886 42,711 -more-
STERLING BANCSHARES, INC. (DOLLARS IN THOUSANDS) Page 9
QUARTER ENDED -------------------------------------------------------------------- MARCH 31, 2002 MARCH 31, 2001 ------------------------------ ----------------------------- YIELD ANALYSIS AVERAGE AVERAGE BALANCE INTEREST YIELD BALANCE INTEREST YIELD ---------- ------- ---- --------- ------- ---- INTEREST EARNING ASSETS: Interest bearing deposits in financial institutions $ 2,181 $ 29 5.39% 666 $ 10 6.09% Federal funds sold 35,530 144 1.64% 24,117 339 5.70% Securities purchased under agreements to resell 8,577 71 3.36% 36,621 649 7.19% Trading Assets 103,262 1,050 4.12% - - - Investment securities (taxable) 260,068 3,976 6.20% 229,064 3,757 6.65% Investment securities (tax-exempt) 72,633 781 4.36% 78,367 853 4.41% Loans (taxable) 1,897,248 34,731 7.42% 1,515,172 35,519 9.51% Loans (tax-exempt) 5,138 83 6.55% 3,523 60 6.91% ---------- ------- ---- --------- ------- ---- Total Interest Earning Assets 2,384,637 40,865 6.95% 1,887,530 41,187 8.85% NONINTEREST EARNING ASSETS: Cash and due from banks 99,745 77,916 Premises and equipment, net 54,096 48,692 Other assets 197,316 114,942 Allowance for credit losses (23,758) (17,377) ---------- --------- Total Noninterest Earning Assets 327,399 224,173 ---------- --------- TOTAL ASSETS $2,712,036 2,111,703 ========== ========= INTEREST BEARING LIABILITIES: Demand and savings deposits $ 873,071 $ 2,380 1.11% 674,738 4,783 2.87% Certificates and other time deposits 583,790 4,512 3.13% 504,911 7,173 5.76% Other borrowings 161,353 726 1.82% 143,033 1,989 5.64% Note payable 20,879 203 3.94% 1,600 33 8.36% ---------- ------- ---- --------- ------- ---- Total Interest Bearing Liabilities 1,639,093 7,821 1.94% 1,324,282 13,978 4.28% NONINTEREST BEARING LIABILITIES: Demand deposits 756,867 566,869 Other liabilities 35,173 15,816 Trust preferred securities 57,500 35,938 Shareholders' equity 223,403 168,798 ---------- --------- 1,072,943 787,421 ---------- --------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $2,712,036 2,111,703 ========== ========= NET INTEREST INCOME & MARGIN $33,044 5.62% $27,209 5.85% ======= ==== ======= ==== NET INTEREST INCOME & MARGIN (TAX EQUIVALENT) $33,467 5.69% $27,597 5.93% ======= ==== ======= ==== -more-
STERLING BANCSHARES, INC. SEGMENT REPORTING (DOLLARS IN THOUSANDS, EXCEPT FOR PER SHARE DATA) Page 10
QUARTER ENDED MARCH 31, 2002 QUARTER ENDED MARCH 31, 2001 ------------------------------------------ ------------------------------------------- COMMERCIAL MORTGAGE COMMERCIAL MORTGAGE BANKING BANKING COMBINED BANKING BANKING COMBINED ------- ------ ------- ------- ------- ------- EARNINGS SUMMARY Interest income $40,865 $ - $40,865 $41,187 $ - $41,187 Interest expense 7,821 - 7,821 13,978 - 13,978 ------- ------ ------- ------- ------- ------- Net interest income 33,044 - 33,044 27,209 - 27,209 Provision for loan losses 2,623 - 2,623 2,360 - 2,360 Noninterest income 6,760 9,430 16,190 4,940 7,881 12,821 Noninterest expense 26,389 7,968 34,357 21,236 5,786 27,022 Conversion costs related to acquisition - - - 1,030 - 1,030 ------- ------ ------- ------- ------- ------- Earnings before income taxes 10,792 1,462 12,254 7,523 2,095 9,618 Provision for income taxes 3,355 601 3,956 2,207 770 2,977 ------- ------ ------- ------- ------- ------- Net earnings $ 7,437 $ 861 $ 8,298 $ 5,316 $ 1,325 $ 6,641 ======= ====== ======= ======= ======= ======= EFFICIENCY RATIO 65.16% 84.50% 68.81% 64.74% 73.42% 66.42% ======= ====== ======= ======= ======= ======= NONINTEREST INCOME Customer service fees $ 4,102 $ - $ 4,102 $ 2,797 $ - $ 2,797 Gain on sale of mortgage loans - 4,129 4,129 - 4,284 4,284 Mortgage origination income - 3,393 3,393 - 2,327 2,327 Other 2,658 1,908 4,566 2,143 1,270 3,413 ------- ------ ------- ------- ------- ------- Total $ 6,760 $9,430 $16,190 $ 4,940 $ 7,881 $12,821 ======= ====== ======= ======= ======= ======= QUARTER ENDED MARCH 31, 2002 QUARTER ENDED MARCH 31, 2001 ------------------------------------------ ------------------------------------------- COMMERCIAL MORTGAGE COMMERCIAL MORTGAGE BANKING BANKING COMBINED BANKING BANKING COMBINED ------- ------ ------- ------- ------- ------- NONINTEREST EXPENSE Salaries and employee benefits $14,976 $4,093 $19,069 $12,318 $ 3,488 $15,806 Occupancy expense 3,677 1,505 5,182 2,857 876 3,733 Technology 1,157 57 1,214 1,070 111 1,181 Supplies 357 182 539 304 103 407 Goodwill amortization - - - 46 68 114 Mortgage servicing rights amortization - 800 800 - 107 107 Professional fees 614 95 709 623 44 667 Minority interest expense 1,330 215 1,545 748 331 1,079 Conversion costs related to acquisitions - - - 1,030 - 1,030 Other 4,278 1,021 5,299 3,270 658 3,928 ------- ------ ------- ------- ------- ------- Total $26,389 $7,968 $34,357 $22,266 $ 5,786 $28,052 ======= ====== ======= ======= ======= ======= ####