The NIM for the 2012 second quarter was up 14 basis points from the same period of 2011 to 4.04%. The improvement was largely due to our continuing strategy of shifting the asset mix from investments into loans driving higher yields as well as a growing cost effective demand deposit base and our ongoing control of deposit costs.
Sterling’s earnings power has also benefited from our balance of revenue mix, which includes a significant level of non-income generated by a range of financial products and services. The fact that our non-interest income is nearly 30% of total revenues helps to balance out the effect on loan yields from the low interest rate environment.
At the same time, we have maintained firm control on non-interest expenses, which were up $388,000 or less than 2% this quarter, versus an increase of about $1.4 million or 4% in total revenues.
Our credit metrics have continued to improve from an already solid base. Net charge-offs fell to $1.7 billion or 0.43% of loans for the 2012 second quarter, which is the lowest level of net charge-offs since the third quarter of 2008.Non-performing assets at June 30, 2012 were just 0.28% of total assets. The allowance for loan losses as a percentage of non-accrual loans was 377% at June 30, 2012. The level of allowance to total portfolio of loans was 1.35% at the end of the 2012 second quarter, essentially even with the year ago. These factors led to impressive earnings growth for the 2012 second quarter.Net income available to common shareholders was almost double the year-ago level at $4.9 million. Earnings per share also doubled versus a year ago to $0.16 for the 2012 second quarter. Our return on average tangible equity for the 2012 second quarter approached 10% which compares very favorably to our bank peer group.Read the rest of this transcript for free on seekingalpha.com
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 + 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