Sterling Bancorp (STL) in Montebello, N.Y., said that its fiscal second-quarter profit rose 58% after it expanded through its merger with Provident New York Bancorp.
Separately, Sterling said it will sell holdings of trust-preferred securities next month that hold an aggregate principal value of $25 million.
The $6.9 billion-asset Sterling said net income for the three-month period ending March 31 rose to $10.3 million, or 12 cents per share, from a year earlier. Sterling said it had $4 million of merger-related expenses in the quarter. Excluding those costs, net income would have been $13.2 million, or 16 cents.
The results were the first for a full quarter since Sterling merged with Provident last year. Provident New York Bancorp acquired Sterling in October for $344 million, and the new company retained the Sterling name.
Despite the merger-related expenses, Sterling said it's already seeing cost-savings as a result of the deal. Its efficiency ratio fell 54 basis points, to 62%, from a year earlier.
As part of its planned sale of $25 million in trust-preferred securities, Sterling will redeem all of its junior subordinated deferrable interest debentures. Proceeds from the redemption of the 8.375% debentures will be used by Sterling to redeem its trust-preferred securities. The Trups will be redeemed for $10.14 per trust-preferred security.