Sterling Bancorp in Montebello, N.Y., reported stronger quarterly earnings that reflected an increase in commercial loans.
The $15.4 billion-asset company said Tuesday that its second-quarter profit rose 12% from a year earlier to $42.4 million.
Net interest income increased by almost 13% to $113.3 million. Total portfolio loans rose by 19%, to $10.2 billion, including a 27% increase in commercial-and-industrial loans and a 17% rise in commercial real estate loans. The numbers also include Sterling’s September purchase of a franchise finance loan portfolio from GE Capital.
Noninterest income fell 33%, to $13.6 million. Mortgage banking income dropped by almost 95%, to $130,000, and deposit fees and service charges declined by 20% to $3.2 million.
Noninterest expenses were relatively flat at $59.7 million. Compensation and benefits ticked up by less than 1%, to $31.4 million. The company’s efficiency ratio improved by 240 basis points to 47%.
Sterling is on track to complete its $2.2 billion acquisition of Astoria Financial in Lake Success, N.Y., in the fourth quarter.