Sterling Financial (STSA) said after markets closed Wednesday that its first-quarter net income rose 146% from the same period last year, to $13.3 million, due primarily to a growth in loan balances, lower funding costs and improved asset quality.
Its earnings declined 10% from the prior quarter, however, due to
Earnings per share more than doubled year over year, to 21 cents, but were down 3 cents from the prior quarter. Analysts polled by Thomson Reuters had projected earnings of 28 cents per share.
Greg Seibly, Sterling's president and chief executive officer, said that a highlight for the quarter was a 31% increase in portfolio loan originations year over year, $347.5 million. Much of that growth was in the multi-family, consumer and commercial and industrial portfolios. Overall, loan balances climbed 8% year over year, to $6 billion, including loans it inherited from First Independent.
With interest rates still low, the $9.5 billion-asset company said it reduced its funding costs by 34 basis points, to 0.67%. That helped boost the net interest margin by 16 basis points, to 3.38%.
Nonperforming assets declined by $279 million, or 44%, from the prior year, and $19 million, or 5%, from the previous quarter.
