STNJ Sterling Bank (MM)

MOUNT LAUREL, N.J., Jan. 26 /PRNewswire-FirstCall/ -- Sterling Bank (NASDAQ:STNJ) today reported income before taxes of $2,597,000 for the year ended December 31, 2005. This reflects a 48% increase compared to the year ended December 31, 2004, which totaled $1,759,000. Net income for 2005 totaled $1,631,000, an increase of 45% over net income for 2004, which totaled $1,126,000. On a basic and diluted per share basis, net income for 2005 was $0.41 and $0.40 per share, respectively, compared to net income of $0.37 per share (on both a basic and diluted basis and adjusted for stock dividends), for 2004, an increase of 11% and 8%, respectively. For the quarter ended December 31, 2005, income before taxes totaled $560,000, decreasing 9% from $616,000 for the fourth quarter of 2004. Net income amounted to $344,000 for the fourth quarter of 2005, compared to net income of $383,000 for the fourth quarter of 2004. This is reflective of the opening of the Bank's 7th Community Banking Center in Voorhees Township, NJ in November 2005. On a basic and diluted per share basis, net income for the fourth quarter of 2005 amounted to $0.08 and $0.07 per share, respectively, compared to net income of $0.13 per share (on both a basic and diluted basis and adjusted for stock dividends) for the fourth quarter of 2004, a decrease of 38% and 46%, respectively. As of December 31, 2005, Sterling Bank's assets totaled $351 million, compared to assets of $294 million on December 31, 2004, representing a 19% increase. Total loans amounted to $266 million on December 31, 2005, reflecting an increase of 29% over total loans as of December 31, 2004 of $206 million. Total deposits expanded to $300 million on December 31, 2005, an increase of 19% from $252 million on December 31, 2004. Sterling Bank's improved earnings are attributable primarily to growth in net interest income during 2005 to $12.0 million or 24%, from $9.7 million during 2004. The expansion of this revenue source is primarily the result of higher volume in interest earning assets and an improvement of the net interest margin to 3.86% during 2005, from 3.66% during 2004. Sterling Bank, during this period, realized enhanced loan volume related to its focus on the primary service area of the Bank with both the commercial and consumer loan outstanding levels growing at a very positive pace. Robert H. King, President and Chief Executive Officer, commented, "2005 was an excellent year for Sterling Bank. During this period, total assets, loans and deposits expanded at elevated rates, while both gross and net revenues reached record levels. Additionally, Sterling Bank initiated the next phase of an expansion program, with the entry into Voorhees Township." Sterling Bank Financial Highlights (unaudited) As of, and for the years ended, December 31, 2005 and December 31, 2004 Three Months Ended Years Ended 12/31/2005 12/31/2004 12/31/2005 12/31/2004 INCOME STATEMENT Interest income $5,301,000 $3,849,000 $19,132,000 $13,807,000 Interest expense 2,174,000 1,217,000 7,153,000 4,122,000 Net interest income 3,127,000 2,632,000 11,979,000 9,685,000 Provision for loan losses 32,000 (3,000) 284,000 155,000 Net interest income after provision for loan losses 3,095,000 2,635,000 11,695,000 9,530,000 Noninterest income 209,000 174,000 711,000 706,000 Noninterest expenses 2,744,000 2,193,000 9,809,000 8,477,000 Income before taxes 560,000 616,000 2,597,000 1,759,000 Income tax expense 216,000 233,000 966,000 633,000 Net income $344,000 $383,000 $1,631,000 $1,126,000 PER SHARE DATA Basic earnings per share $0.08 $0.13 $0.41 $0.37 Diluted earnings per share $0.07 $0.13 $0.40 $0.37 Dividends paid on common shares $0.03 $0.02 $0.12 $0.08 Average shares outstanding - Basic 4,535,713 3,021,283 3,992,802 3,004,535 Average shares outstanding - Diluted 4,622,001 3,062,063 4,067,252 3,040,378 BALANCE SHEET Assets Cash & due from banks $17,847,000 $11,309,000 Federal funds sold 321,000 - Total investment securities 55,294,000 67,991,000 Restricted stock 1,876,000 1,669,000 Total loans 266,059,000 205,791,000 Allowance for loan losses (1,154,000) (913,000) Other assets 11,073,000 8,379,000 Total assets $351,316,000 $294,226,000 Liabilities Total deposits $300,411,000 $252,260,000 Total borrowings 15,641,000 20,329,000 Other liabilities 1,016,000 880,000 Total liabilities 317,068,000 273,469,000 Shareholders' equity Common stock 9,073,000 5,755,000 Additional paid-in capital 23,263,000 13,732,000 Retained earnings 2,746,000 1,597,000 Accumulated other comprehensive losses (834,000) (327,000) Total shareholders' equity 34,248,000 20,757,000 Total liabilities and shareholders' equity $351,316,000 $294,226,000 PERFORMANCE RATIOS Book value per share $7.55 $6.87 Return on average assets 0.40% 0.52% 0.50% 0.40% Return on average equity 4.02% 7.41% 5.58% 5.65% Net interest margin 3.81% 3.76% 3.86% 3.66% Sterling Bank is a community bank headquartered in Burlington County, New Jersey, with assets of $351 million as of December 31, 2005. Sterling Bank's main office is located in Mount Laurel, New Jersey and its six other Community Banking Centers are located in Burlington and Camden Counties in New Jersey. Sterling Bank began operations in December 1990 with the purpose of serving consumers and small to medium-sized businesses in its market area. 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 Bank is traded on the NASDAQ Capital Market under the symbol "STNJ". For additional information about Sterling Bank visit our website at http://www.sterlingnj.com/. This news release may contain certain forward-looking statements, such as statements of the Bank'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 Bank's control) and actual results may differ materially. Accordingly, 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 Bank cautions that the foregoing list of important factors is not exclusive. Readers should carefully review the risk factors described in other documents the Bank files from time to time with the Federal Reserve, including the Bank's Annual Report on Form 10-KSB for the year ended December 31, 2004, Quarterly Reports on Form 10-QSB, and Current Reports on Form 8-K. First Call Analyst: FCMN Contact: dbraun@sterlingnj.com DATASOURCE: Sterling Bank CONTACT: Robert H. King, President, , or R. Scott Horner, Executive Vice President, , both of Sterling Bank, +1-856-273-5900 Web site: http://www.sterlingnj.com/

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