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Sterling Bancorp (STL) in Montebello, N.Y., said that its fiscal second-quarter profit rose 58% after it expanded through its merger with Provident New York Bancorp.
May 1 -
To prove the value of the merger of Provident New York Bancorp and Sterling Bancorp, executives have to increase revenues at a much faster pace than expenses over the long haul, CEO Jack Kopnisky says.
November 5 -
Provident New York Bancorp (PBNY) and Sterling Bancorp (STL) have reached a settlement with shareholders who alleged that Sterling's board violated its fiduciary duty and failed to disclose crucial information about the two companies' pending merger.
September 13
Sterling Bancorp in Montebello, N.Y., realized a big efficiency gain after a major acquisition.
Sterling, which bought Provident New York Bancorp in October 2013, reported a core operating efficiency ratio of 54.7% in its fiscal fourth quarter, noticeably improving from 64.7% in the same quarter of 2013. Its ratio for the full fiscal year, which ended Sept. 30, improved by over 400 basis points, to 59.4%.
However, expansion carried some one-time costs. Total expenses related to the Provident deal were $45.6 million for the fiscal year. Sterling also posted $1.6 million in gains on the sale of a financial center and the redemption of subordinated debentures, which helped to partially offset those expenses.
Meanwhile, the $7.3 billion-asset Sterling's income and balance sheet swelled after the Provident deal.
Net income in the latest quarter tripled year over year, to $16.3 million.
Total loans, including loans held for sale, nearly doubled to $4.8 billion. Commercial and industrial loans exceeded $2 billion, up from roughly $440 million a year earlier.
Net interest income after provision for loan losses also more than doubled, to $54.2 million. The net interest margin was 3.77%, up from 3.23% a year earlier.
Noninterest income nearly doubled, to $12.3 million.
Total deposits were $5.3 billion, up from $3 billion a year earlier.
