Sterling Banks, Inc. Announces Intention to Restate Prior Reporting Periods
January 21 2010 - 5:00PM
PR Newswire (US)
MOUNT LAUREL, N.J., Jan. 21 /PRNewswire-FirstCall/ -- Sterling
Banks, Inc. (NASDAQ:STBK), the bank holding company of Sterling
Bank (the "Company"), today announced that the Company intends to
restate its earnings for the quarterly and year to date periods
ended June 30, 2009 and September 30, 2009. Following the findings
of a recent regulatory examination of the Company's wholly owned
subsidiary, Sterling Bank (the "Bank"), the Company intends to
amend its call report for the quarter ended June 30, 2009, and to
make certain adjustments required in connection with the completion
of the examination of the Bank by the Federal Reserve Bank of
Philadelphia (the "FRB") for which the report was recently provided
to the Company. As a result of such amendments, the Board of
Directors of the Company determined on January 14, 2010, that the
Company's consolidated financial statements as of and for the three
and six months ended June 30, 2009, and the three and nine months
ended September 30, 2009, should no longer be relied upon, and also
determined to amend the Company's Quarterly Report on Form 10-Q for
the period ended June 30, 2009 (as originally filed on August 19,
2009) (the "Second Quarter Filing") and the period ended September
30, 2009 (as originally filed on November 25, 2009) (the "Third
Quarter Filing"), and to restate such consolidated financial
statements. The Company's Board of Directors has discussed these
matters with its independent registered public accounting firm. The
FRB examination commenced on July 27, 2009, and concluded with the
issuance of a formal written report dated November 30, 2009, using
financial data as of June 30, 2009. This regulatory examination was
on-going at the time the Second Quarter Filing was filed with the
SEC, and these issues were raised and disclosed in the Third
Quarter Filing with the SEC. At the conclusion of the on-site work
by the FRB examiners and prior to the Third Quarter Filing, the FRB
examination personnel orally advised the Company and its
independent auditors that, based on trends in asset quality, credit
losses and other metrics, in comparison to various national and
custom peer groups with comparable characteristics, the Banks'
allowance for loan losses should be increased by $5 million as of
June 30, 2009. Subsequent to the Third Quarter Filing, the Company
received confirmation through receipt of a written examination
report. In the intervening period, the Company had on-going
discussions with the FRB to further clarify the facts and formulate
an appropriate response to the report. The Company notes that as of
the date of this press release that management, with the assistance
of outside advisors, is continuing its analysis with respect to any
other potential additional adjustments that may be necessary or
appropriate and intends to file the amended reports as soon as is
reasonably practicable. As previously reported in our Form 10Q and
Press Release for the period ended September 30, 2009 and filed
November 25, 2009, management has been in discussions with the FRB
to determine an appropriate level of the Allowance for Loan and
Lease Losses. This matter has now been resolved and upon our
amended filing of the Form 10Q for June 30, 2009 and September 30,
2009 the Company will be in compliance with NASDAQ listing rules.
Robert H. King, President and CEO of Sterling Banks, Inc., noted:
"The challenges of the extended period of economic weakness are
significant. Our highest priority is to ensure that loan reserves
are at appropriate levels. Sterling Bank is prepared to move
forward through this difficult economic phase." Sterling Banks,
Inc. is a bank holding company which commenced operations in March
2007, and is headquartered in Mount Laurel Township, Burlington
County. Sterling Bank is a community bank which commenced
operations in December 1990 with the purpose of serving consumers
and small to medium-sized businesses in its market area. Sterling
Bank's main office is located in Mount Laurel, New Jersey, and its
nine other Community Banking Centers are located in Burlington and
Camden Counties in New Jersey. 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 Banks, Inc. is
traded on the NASDAQ Capital Market under the symbol "STBK". For
additional information about Sterling Bank and Sterling Banks, Inc.
visit our website at http://www.sterlingnj.com/. This news release
may contain certain forward-looking statements, such as statements
of the Company'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 Company's control). 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 Company
to manage the risk in its loan and investment portfolios, the
ability of the Company to reduce noninterest expenses and increase
net interest income, results of possible collateral collections and
subsequent sales, and results of regulatory examinations, among
other factors. Sterling Banks, Inc. cautions that the foregoing
list of important factors is not exclusive. Readers should
carefully review the risk factors described in other documents the
Company files from time to time with the Securities and Exchange
Commission, including the Company's Annual Report on Form 10-K for
the year ended December 31, 2008, Quarterly Reports on Form 10-Q,
and Current Reports on Form 8-K. DATASOURCE: Sterling Banks, Inc.
CONTACT: Robert H. King, President, +1-856-273-5900, , or R. Scott
Horner, Executive Vice President, +1-856-273-5900, Web Site:
http://www.sterlingnj.com/
Copyright
Sterling Banks (MM) (NASDAQ:STBK)
Historical Stock Chart
From Aug 2024 to Sep 2024
Sterling Banks (MM) (NASDAQ:STBK)
Historical Stock Chart
From Sep 2023 to Sep 2024