We’ll have introductory remarks today from John Millman, President of Sterling Bancorp; and John Tietjen, Executive Vice President, Chief Financial Officer. After their remarks, we’ll be open to your questions. And so without further ado, I will turn the call over to Mr. Millman.
John C. Millman
Thank you Ed and good morning everyone. Welcome to our conference call for the 2012 first quarter. I’m pleased to report that we saw strong trends in virtually every key area of Sterling’s business during the first quarter, as we successfully executed our strategies to drive profitable growth.
Our accomplishments during the quarter included substantial increases in loans and deposits, higher total revenues or wider net interest margin, and well controlled expenses, while asset quality metrics remained sound. As a result of our progress in these areas, we started 2012 with a solid increase in net income. This clearly demonstrates the revenue and earnings power of our business model, the value of our franchise and the effectiveness of our customer service.Our performance was a direct result of the strategies that we have been implementing for the past several quarters, as discussed on previous conference calls. Specifically, we have been actively engaged in growing our loan volume. We positioned our balance sheet for this expected increase in lending by maintaining a sizable pool of liquidity through our securities portfolio and other short-term assets. The benefits of this strategy were clearly evident in the recent quarter, as we experienced robust credit demand. We have shifted our mix of earning assets into loans from investments, leading to an increase in yield. At the same time, we have carefully managed the liability side of the balance sheet taking a disciplined approach to deposit pricing, while also increasing our level of non-interest bearing demand deposits, which led to a decrease in funding cost during the first quarter. These positive factors along with firm control of non-interest expenses in continued solid asset quality metrics powered our strong results.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV