Attached files
Exhibit 99.1
Supplemental Information
Financial Information for the Quarter Ending June 30, 2010
Operating and Asset Quality Highlights
| As of or for the Quarter Ended: | ||||||||||||
| ($ in millions) | 12/31/2009 | 3/31/2010 | 6/30/2010 | |||||||||
| Operating Highlights |
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| Net Interest Margin on a fully taxable equivalent basis (FTE) |
2.85 | % | 2.86 | % | 2.88 | % | ||||||
| Interest reversal on NPLs |
0.75 | % | 0.88 | % | 0.80 | % | ||||||
| Adjusted FTE Net Interest Margin |
3.60 | % | 3.74 | % | 3.68 | % | ||||||
| Net interest income |
$ | 81.0 | $ | 74.9 | $ | 73.1 | ||||||
| Non interest income |
28.1 | 25.3 | 41.2 | |||||||||
| Operating Revenue |
$ | 109.1 | $ | 100.2 | $ | 114.3 | ||||||
| Operating Expenses |
$ | 94.5 | $ | 96.0 | $ | 97.3 | ||||||
| OREO |
(11.9 | ) | (10.9 | ) | (17.2 | ) | ||||||
| Adj. Operating Expenses |
$ | 82.6 | $ | 85.1 | $ | 80.1 | ||||||
| Non interest income / Operating Revenue |
25.7 | % | 25.2 | % | 36.1 | % | ||||||
| Adj. Efficiency Ratio |
75.7 | % | 84.9 | % | 70.1 | % | ||||||
| Asset Quality Highlights |
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| Total Credit Allowance (ALLL) |
$ | 355.4 | $ | 307.1 | $ | 275.8 | ||||||
| Non-Performing Loans (NPLs) |
$ | 895.9 | $ | 958.8 | $ | 884.1 | ||||||
| Total FAS 114 write-downs (1) |
500.2 | 530.2 | 462.8 | |||||||||
| NPLs before FAS 114 write-downs |
$ | 1,396.1 | $ | 1,489.0 | $ | 1,346.9 | ||||||
| Total Loans |
$ | 7,878.1 | $ | 7,193.5 | $ | 6,598.2 | ||||||
| Total FAS 114 write-downs (1) |
500.2 | 530.2 | 462.8 | |||||||||
| Total Loans before FAS 114 write-downs |
$ | 8,378.3 | $ | 7,723.7 | $ | 7,061.0 | ||||||
| (ALLL + FAS 114 Write-downs) / Total Loans (2) |
10.2 | % | 10.8 | % | 10.5 | % | ||||||
| (ALLL + FAS 114 Write-downs) / NPLs (2) |
61.3 | % | 56.2 | % | 54.8 | % | ||||||
| (1) | Does not include $1.4 million and $362,000 of write-downs on performing FAS 114 loans as of June 30, 2010 and March 31, 2010 respectively. |
| (2) | Total loans and NPLs grossed up for FAS 114 write-downs. |
Sterling had professional service expense of approximately $0.6 million, $2.8 million and $2.3 million for the three months ended June 30, 2010, March 31, 2010 and December 31, 2009, respectively. Sterling had loses on loan sales of approximately $1.2 million, $3.7 million and $0.1 million for the three months ended June 30, 2010, March 31, 2010 and December 31, 2009, respectively.
Loans Past Due (NPLs) / Loans Held for Investment (HFI)
| As of the Quarter Ended: | |||||||||
| 12/31/2009 | 3/31/2010 | 6/30/2010 | |||||||
| Loans 30-59 days past due (DPD) |
1.79 | % | 1.76 | % | 1.16 | % | |||
| Loans 60-89 DPD |
1.75 | % | 1.02 | % | 1.02 | % | |||
| Loans 90+ DPD |
6.07 | % | 8.48 | % | 8.10 | % | |||
| Total |
9.61 | % | 11.26 | % | 10.28 | % | |||
| Loans past due, excluding construction loans |
4.06 | % | 4.09 | % | 4.64 | % | |||
Non-Performing Loan Balance Trends
| ($ in millions) | As of or for the Quarter Ended: | |||||||||||
| 12/31/09 | 3/31/10 | 6/30/10 | ||||||||||
| Beginning Balance |
$ | 747.5 | $ | 895.9 | $ | 958.8 | ||||||
| Loans Added |
546.5 | 329.5 | 264.7 | |||||||||
| Loans Upgraded to Accrual |
(23.0 | ) | (28.7 | ) | (45.2 | ) | ||||||
| Loans Paid-Off / Sold |
(62.6 | ) | (49.5 | ) | (113.1 | ) | ||||||
| Loans Charged-Off |
(255.6 | ) | (124.3 | ) | (82.6 | ) | ||||||
| Transfer to OREO |
(56.9 | ) | (64.1 | ) | (98.5 | ) | ||||||
| Net Change |
148.4 | 62.9 | (74.7 | ) | ||||||||
| Ending Balance |
$ | 895.9 | $ | 958.8 | $ | 884.1 | ||||||
Loan Portfolio Loss Coverage (as of June 30, 2010)
| ($ in millions) | FAS 114 Loans at Net Carrying Value (1) |
Avg. Write- Down & Specific Allowance Coverage |
FAS 5 Loans General Allowance Categories |
General Allowance Avg. Coverage Rate on All FAS 5 Loans |
General Allowance Coverage on Substandard FAS 5 Loans |
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| Construction – residential |
$ | 240.4 | 48.0 | % | $ | 133.6 | 22.5 | % | 38.3 | % | ||||||
| Construction – commercial |
158.7 | 36.2 | % | 258.2 | 18.3 | % | 30.8 | % | ||||||||
| Construction – multifamily |
69.6 | 35.2 | % | 88.0 | 15.4 | % | 28.1 | % | ||||||||
| CRE – Owner Occupied (OO) |
69.2 | 31.8 | % | 1,297.3 | 2.0 | % | 13.2 | % | ||||||||
| CRE investor commercial |
56.1 | 32.8 | % | 1,309.3 | 3.9 | % | 25.8 | % | ||||||||
| CRE investor multifamily |
23.2 | 21.3 | % | 438.6 | 1.5 | % | 13.4 | % | ||||||||
| C & I |
6.2 | 86.9 | % | 647.7 | 5.1 | % | 29.8 | % | ||||||||
| Residential – Non-Owner Occupied |
66.1 | 17.5 | % | 261.1 | 3.6 | % | 16.3 | % | ||||||||
| Residential – OO |
16.3 | 29.4 | % | 435.0 | 1.3 | % | 13.6 | % | ||||||||
| Consumer |
4.2 | 53.2 | % | 824.5 | 1.9 | % | 27.6 | % | ||||||||
| Unallocated Reserves |
(0.2 | ) | — | — | 0.1 | % | — | |||||||||
| $ | 709.8 | 40.5 | % | $ | 5,693.3 | 4.3 | % | 23.8 | % | |||||||
| Adjusted Carrying Value |
59.5 | % | ||||||||||||||
| (1) | Includes both non-performing and performing FAS 114 loans net of FAS 114 write-downs and specific reserves. |
Of NPLs, 61% are construction and carry an average loss coverage rate of 42%. The average of days that properties are OREO is 109 days.