Sterling Bancorp in Montebello, N.Y., realized a big efficiency gain after a major acquisition.
Sterling, which bought Provident New York Bancorp in October 2013, reported a core operating efficiency ratio of 54.7% in its fiscal fourth quarter, noticeably improving from 64.7% in the same quarter of 2013. Its ratio for the full fiscal year, which ended Sept. 30, improved by over 400 basis points, to 59.4%.
However, expansion carried some one-time costs. Total expenses related to the Provident deal were $45.6 million for the fiscal year. Sterling also posted $1.6 million in gains on the sale of a financial center and the redemption of subordinated debentures, which helped to partially offset those expenses.
Meanwhile, the $7.3 billion-asset Sterling's income and balance sheet swelled after the Provident deal.
Net income in the latest quarter tripled year over year, to $16.3 million.
Total loans, including loans held for sale, nearly doubled to $4.8 billion. Commercial and industrial loans exceeded $2 billion, up from roughly $440 million a year earlier.
Net interest income after provision for loan losses also more than doubled, to $54.2 million. The net interest margin was 3.77%, up from 3.23% a year earlier.
Noninterest income nearly doubled, to $12.3 million.
Total deposits were $5.3 billion, up from $3 billion a year earlier.