SOURCE: Sterling Bancorp

Sterling Bancorp

April 26, 2016 16:18 ET

Sterling Bancorp Announces Results for the Three Months Ended March 31, 2016

Strong Operating Momentum in the First Quarter Continues, Highlighted by Core Diluted Earnings per Share(1) of $0.25, GAAP Diluted Earnings per Share of $0.18 and Strong Growth as Loan and Deposit Volumes Reached Record Levels; Key Highlights for the Three Months Ended March 31, 2016

MONTEBELLO, NY--(Marketwired - April 26, 2016) -

  • Total revenue2 was $109.2 million.
  • Core net income1 was $32.2 million compared to $18.5 million for the first quarter of 2015, an increase of 73.8%.
  • Core diluted earnings per share1 were $0.25, which represented growth of 19.0% over the first quarter of 2015.
  • Tax equivalent net interest margin was 3.53% compared to 3.64% in the first quarter of 2015.
  • Total non-interest income excluding securities losses was $15.7 million, which represented 14.4% of total revenue2 and growth of 25.9% over the first quarter of 2015.
  • Core operating efficiency ratio1 was 48.9% compared to 56.4% in the first quarter of 2015.
  • Annualized commercial loan3 growth of 25.0% (end of period balances including acquired loans) and 5.6% (average balances) over the linked quarter.
  • Annualized core deposit4 growth of 36.6% (end of period balances) over the linked quarter.
  • Loans to deposits ratio of 88.8%; total deposits were $9.3 billion with over 91.5% core deposits4 and a total cost of deposits of 0.29%.
  • Core return on average tangible assetswas 1.15% compared to 1.07% in the first quarter of 2015.
  • Core return on average tangible equity1 was 13.78% compared to 12.66% in the first quarter of 2015.
  • Completed a $110.0 million subordinated notes offering at Sterling National Bank, adding to Tier 2 capital.
  • Completed the acquisition of NewStar Business Credit, LLC ("NSBC") doubling the size of our asset-based loan portfolio to $629.8 million.
  • Announced the pending sale of our trust division to Midland States Bank, expected to be complete in Q3 2016.
  • Repayment of $220.0 million of Federal Home Loan Bank ("FHLB") advances with a weighted average rate of 4.17%.
  1. Core measures are defined in the non-GAAP tables beginning on page 12.
  2. Total revenue is equal to net interest income plus non-interest income excluding securities gains and losses.
  3. Commercial loans include commercial real estate, commercial and industrial and acquisition, development and construction loans.
  4. Core deposits include retail, commercial and municipal transaction, money market and savings accounts and exclude certificates of deposit and brokered deposits except for reciprocal Certificate of Deposit Account Registry balances.

Sterling Bancorp (NYSE: STL) , the parent company of Sterling National Bank (the "Company"), today announced results for the three months ended March 31, 2016. Net income for the quarter was $23.8 million, or $0.18 per diluted share, compared to net income of $32.8 million, or $0.25 per diluted share, for the linked quarter ended December 31, 2015 and net income of $16.8 million, or $0.19 per diluted share, for the first quarter of 2015.

Net income for the first quarter of 2016 was negatively impacted by a loss on extinguishment of FHLB borrowings, merger related expenses and other restructuring charges, which are detailed in our Non-GAAP Financial Measures beginning on page 12.

President's Comments
Jack Kopnisky, President and Chief Executive Officer, commented: "Our positive momentum in operating performance continued this quarter, highlighted by strong profitability and significant growth in loans and deposits. As of March 31, 2016, our total assets reached $12.9 billion, compared to $7.7 billion a year ago. We are well-positioned for future growth and continue to execute our strategy of creating a high performing regional bank that focuses on serving commercial middle market clients and consumers.

"Core net income for the quarter was $32.2 million and core diluted earnings per share were $0.25, compared to $18.5 million and $0.21, respectively, for the same quarter a year ago. This represents growth of 73.8% and 19.0%, respectively, between the two periods. Our core return on average tangible assets was 1.15% and core return on average tangible equity was 13.78%. This compares to 1.07% and 12.66%, respectively, for the same quarter a year ago.

"On March 31, 2016, we completed the acquisition of NSBC, doubling the size of our asset-based lending business. The transaction exceeds all of our acquisition criteria; it is expected to be accretive to earnings per share, has an estimated internal rate of return greater than 20% and a tangible book value earn-back period of less than 2.5 years. Furthermore, the acquired loans are all floating-rate loans and have an attractive yield greater than 5%.

"We are focused on creating positive operating leverage and becoming a more efficient company. In the first quarter, we consolidated four financial centers bringing our total to 48 locations as of March 31, 2016. We expect to consolidate five additional financial centers in the second quarter of 2016. Additionally, we announced the sale of our trust division, which we expect to complete in the third quarter of 2016. We will continue to evaluate opportunities to create a more efficient, commercial client-focused bank. For the quarter, our core operating efficiency ratio was 48.9%, which compares to 56.4% in the same quarter last year.

"We continue to experience strong organic and acquired loan growth across multiple asset classes. As of March 31, 2016, total portfolio loans were $8.3 billion, which represented annualized growth of 21.8% over year end. Including the acquisition of NSBC, our commercial loan balances grew $425.5 million during the quarter, which represented annualized growth of 25.0% over the linked quarter end.

"As of March 31, 2016, our total deposits were $9.3 billion. Our core deposits were $8.5 billion, which represented 91.5% of our total deposit balances. Our total cost of deposits was 0.29% for the three months ended March 31, 2016. Our strong commercial deposit growth will allow us to continue reducing expenses and capital investments associated with our financial centers and enhance our ability to grow profitability.

"We continue to focus on diversifying and improving our revenue mix. Non-interest income excluding securities gains/losses was $15.7 million for the quarter, which represented 14.4% of total revenue and growth of 25.9% over the same quarter a year ago. We expect to continue growing our diversified commercial lending businesses, which are strong fee income generators, and we will continue to actively evaluate opportunistic acquisitions.

"Net charge-offs against the allowance for loan losses for the three months ended March 31, 2016 were $1.1 million, or 0.06% on an annualized basis, compared to $3.0 million, or 0.15% on an annualized basis, in the three months ended December 31, 2015. The allowance for loan losses to total loans was 0.64% at March 31, 2016 and December 31, 2015. As a result of purchase accounting, a substantial portion of the loans acquired in prior merger transactions do not have an allocation in the allowance for loan losses as the performance of these loans remains satisfactory. The total valuation balances recorded against portfolio loans to adjusted gross portfolio loans was 1.16% and 1.17% at December 31, 2015 and March 31, 2016, respectively. In the first quarter, non-performing loans increased by $19.0 million to $85.4 million mainly due to one taxi medallion relationship with a balance of $23.9 million that was placed on non-accrual during the quarter. As a result, the ratio of allowance for loan losses to non-performing loans declined to 62.0% at March 31, 2016 compared to 75.5% at December 31, 2015.

"We also enhanced our capital position during the quarter. On March 29, 2016, we completed the issuance of $110.0 million of subordinated notes by Sterling National Bank. The offering provides us with additional liquidity and regulatory capital to support

growth and will qualify as Tier 2 capital. At March 31, 2016, our tangible equity to tangible assets ratio was 7.66% and our estimated Tier 1 leverage ratio was 8.61%. At Sterling National Bank, our estimated Tier 1 leverage ratio was 9.16%.

"Lastly, I am pleased to announce our Board of Directors has declared a dividend on our common stock of $0.07 per share payable on May 23, 2016 to our holders as of the record date of May 6, 2016."

Reconciliation of Core to GAAP Results
GAAP net income of $23.8 million, or $0.18 per diluted share, for the first quarter of 2016, included: (i) a pre-tax net loss on sale of securities of $283 thousand; (ii) a loss on the early extinguishment of FHLB borrowings of $8.7 million; (iii) a pre-tax charge of $2.8 million due to merger-related expenses and restructuring charges incurred in connection with the acquisition of NSBC and the continued consolidation of financial centers and other locations; and (iv) amortization of non-compete agreements and acquired customer list intangibles of $968 thousand. Excluding the impact of these items, core net income was $32.2 million, or $0.25 per diluted share.

See the reconciliation of the Company's Non-GAAP Financial Measures beginning on page 12. Non-GAAP financial measures include references to the terms "core" or "excluding".

Net Interest Income and Margin
First quarter 2016 compared with first quarter 2015
Net interest income was $93.5 million, an increase of $34.6 million compared to the first quarter of 2015. This was mainly the result of higher average loans and investment securities balances due to the merger with Hudson Valley Holding Corp. (the "HVB Merger") and organic growth. For the first quarter of 2016, the yield on loans was 4.62% and declined 4 basis points compared to the first quarter of 2015. Yield on loans included $5.6 million of accretion of the fair value discount associated with prior acquisitions compared to $926 thousand in the first quarter of 2015. The tax-equivalent yield on investment securities decreased 14 basis points to 2.65%. The cost of total deposits was 29 basis points and the cost of borrowings was 1.92% compared to 23 basis points and 2.00%, respectively, for the same period a year ago. The tax-equivalent yield on interest earning assets declined 11 basis points from the first quarter of 2015 to 4.00% for the first quarter of 2016. The net interest margin on a tax-equivalent basis was 3.53% compared to 3.64% for the same period a year ago.

First quarter 2016 compared with linked quarter ended December 31, 2015
Net interest income declined $1.9 million compared to the linked quarter ended December 31, 2015. The decrease in net interest income was mainly due to lower accretion of the fair value discount, which was $7.1 million in the fourth quarter of 2015 compared to $5.6 million in the first quarter of 2016, and higher average borrowings balances which resulted in an increase of $1.0 million in interest expense in the first quarter of 2016. The yield on loans was 4.62% for the quarter compared to 4.65% for the linked quarter. The tax-equivalent yield on investment securities decreased one basis point to 2.65% in the quarter. The cost of total deposits increased 3 basis points from 26 basis points in the linked quarter and the total cost of borrowings declined 12 basis points from 2.04% in the linked quarter. The tax-equivalent yield on interest earning assets was 4.00% compared to 4.09% in the linked quarter. Tax-equivalent net interest margin was 3.53% compared to 3.68% in the linked quarter. Average interest-bearing cash balances increased by $128.5 million in the quarter, which resulted in an approximate five basis point decrease in net interest margin.

Non-interest Income
First quarter 2016 compared with first quarter 2015
Excluding net gain (loss) on sale of securities, non-interest income increased $3.2 million in the first quarter of 2016 to $15.7 million compared to $12.5 million in the same quarter last year. The increase was mainly due to increases in factoring commissions and other fees, an increase in other loan fees and commissions, and an increase in deposit fees and service charges. Partially offsetting these increases was a decline of $1.2 million in mortgage banking income. The Company realized a net loss on sale of securities of $283 thousand in the first quarter of 2016 compared to a net gain on sale of securities of $1.5 million in the same quarter last year.

First quarter 2016 compared with linked quarter ended December 31, 2015
Excluding net gain (loss) on sale of securities, non-interest income declined $489 thousand from $16.2 million during the fourth quarter of 2015. This was mainly the result of decreases in mortgage banking income of $760 thousand and bank owned life insurance of $465 thousand. The Company realized a net loss on sale of securities of $121 thousand in the linked quarter ended December 31, 2015.

Non-interest Expense
First quarter 2016 compared with first quarter 2015
Non-interest expense increased $23.0 million relative to the first quarter of 2015 to $68.9 million. The increase was due to increases in compensation and benefits expense of $6.9 million, occupancy and office operations expense of $2.7 million and amortization of intangible assets of $1.7 million which were all mainly due to the HVB Merger. In addition, in the first quarter of 2016, we recorded a pre-tax charge of $2.8 million due to merger-related expenses and other restructuring charges incurred in connection with the acquisition of NSBC and the consolidation of financial centers and other locations, and a pre-tax charge of $8.7 million related to a loss on extinguishment of $220.0 million of FHLB borrowings.

First quarter 2016 compared with linked quarter ended December 31, 2015
Non-interest expense increased $11.5 million compared to $57.4 million for the linked quarter, mainly due to the merger-related expenses and other restructuring charges and the loss on extinguishment of FHLB borrowings discussed above. Excluding the impact of these items, core non-interest expense increased $424 thousand between the first quarter of 2016 and the linked quarter.

Taxes
In the first quarter of 2016, the Company recorded income taxes at an estimated effective tax rate of 34.0%, compared to an effective tax rate of 32.5% in the linked quarter and the same quarter last year.

Key Balance Sheet Highlights at March 31, 2016

  • Total assets were $12.9 billion.
  • Total loans, including loans held for sale, were $8.3 billion.
  • Commercial and industrial ("C&I") loans (which includes traditional C&I, asset-based lending, payroll finance, factoring and warehouse lending) represented 41.2%, commercial real estate loans represented 44.4%, consumer and residential mortgage loans represented 12.2%, and acquisition, development and construction loans represented 2.2% of the total loan portfolio.
  • Commercial loan growth, which includes all C&I loans, commercial real estate and acquisition development and construction loans, was $425.5 million for the quarter ended March 31, 2016. Organic loan growth, which excludes the NSBC acquisition, was $102.9 million, and represented annualized growth of 6.0% over the prior quarter. Average commercial loans were $6.7 billion for the first quarter of 2016 compared to $6.6 billion for the linked quarter.
  • The allowance for loan losses was $53.0 million and represented 0.64% of total loans. Loans acquired in prior merger transactions were recorded at fair value at the acquisition date and at March 31, 2016; the remaining purchase accounting adjustments on acquired loan were $44.2 million. The ratio of total valuation balances recorded against portfolio loans to adjusted gross portfolio loans was 1.17%. See a reconciliation of this non-GAAP measure on page 14.
  • Investment securities, excluding FHLB and FRB stock, were $2.8 billion and represented 22.1% of total assets.
  • Core deposits were $8.5 billion and represented 91.5% of total deposits.
  • Total deposits were $9.3 billion compared to $8.6 billion at December 31, 2015. Average deposits were $8.9 billion compared to $8.8 billion for the linked quarter.
  • Borrowings were $1.7 billion compared to $1.5 billion at December 31, 2015. Average borrowings were $1.3 billion compared to $988.6 million for the linked quarter.
  • Tangible book value per share was $7.09.

Credit Quality
Non-performing loans, which includes non-accrual loans and loans over 90 days past due still accruing interest, increased $19.0 million to $85.4 million, or 1.03% of total loans at March 31, 2016 compared to $66.4 million, or 0.84% of total loans at December 31, 2015. The increase was mainly the result of one taxi medallion relationship with a balance of $23.9 million that was placed on non-accrual. Net charge-offs for the first quarter of 2016 that were charged to the allowance for loan losses were $1.1 million, compared to $3.0 million in the linked quarter. The allowance for loan losses at March 31, 2016 was $53.0 million, which represented 62.0% of non-performing loans and 0.64% of our total portfolio loans compared to $50.1 million, 75.5% and 0.64%, respectively, as of December 31, 2015.

Capital
The Company's stockholders' equity was $1.7 billion at March 31, 2016, an increase of $33.1 million relative to December 31, 2015. The increase in stockholders' equity was mainly the result of net income of $23.8 million and an increase in other comprehensive income of $16.3 million, which was primarily due to a change in the fair value of our available for sale securities portfolio, and stock option exercises and stock-based compensation, which totaled $853 thousand. These increases were partially offset by declared dividends of $9.1 million.

Tangible book value per share was $7.09 at March 31, 2016 compared to $7.05 at December 31, 2015. Total goodwill and other intangible assets were $772.4 million at March 31, 2016, an increase of $24.3 million compared to December 31, 2015, due to the NSBC acquisition. For the quarter ended March 31, 2016, basic and diluted weighted average common shares outstanding increased to 130.0 million and 130.5 million, respectively, compared to 129.8 million basic shares and 130.4 million diluted shares, respectively, for the quarter ended December 31, 2015. Total shares outstanding at March 31, 2016 were approximately 130.5 million.

Consolidated tangible equity to tangible assets was 7.66% at March 31, 2016 and the Company's estimated Tier 1 leverage ratio was 8.61%. Sterling National Bank remained well capitalized at March 31, 2016 with an estimated Tier 1 leverage ratio of 9.16%.

Sterling Bancorp will host a teleconference and webcast on Wednesday, April 27, 2016 at 10:30 AM eastern time to discuss the Company's results. Interested parties are invited to listen to the webcast and view accompanying slides on the Company's website at www.sterlingbancorp.com. Analysts are invited to listen by dialing (888) 437-9445, Conference ID #6055694. A replay of the teleconference can be accessed through the Company's website.

About Sterling Bancorp
Sterling Bancorp, of which the principal subsidiary is Sterling National Bank, specializes in the delivery of service and solutions to business owners, their families and consumers within the communities we serve through teams of dedicated and experienced relationship managers. Sterling National Bank offers a complete line of commercial, business, and consumer banking products and services. For more information, visit the Sterling Bancorp website at www.sterlingbancorp.com.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This release may contain "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward- looking statements may concern Sterling Bancorp's current expectations about its future results, plans, operations and prospects and involve certain risks, including the following: our ability to successfully implement growth, grow revenues faster than we grow expenses, other strategic initiatives and to integrate and fully realize cost savings and other benefits we estimate in connection with acquisitions; a deterioration in general economic conditions, either nationally, internationally, or in our market areas, including extended declines in the real estate market and constrained financial markets; inflation; the effects of, and changes in, trade; changes in asset quality and credit risk; introduction, withdrawal, success and timing of business initiatives; capital management activities; customer disintermediation; and the success of Sterling Bancorp in managing those risks. Other factors that could cause Sterling Bancorp's actual results to differ from those indicated in forward-looking statements are included in the "Risk Factors" section of Sterling Bancorp's filings with the Securities and Exchange Commission. The forward-looking statements speak only as of the date they are made and we undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.

Financial information contained in this release should be considered to be an estimate pending the filing with the Securities and Exchange Commission of the Company's Quarterly Report on Form 10-Q for the three months ended March 31, 2016. While the Company is not aware of any need to revise the results disclosed in this release, accounting literature may require information received by management between the date of this release and the filing of the Quarterly Report on Form 10-Q to be reflected in the results of the fiscal period, even though the new information was received by management subsequent to the date of this release.

             
             
Sterling Bancorp and Subsidiaries  
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION  
(unaudited, in thousands, except share and per share data)  
   
  3/31/2015   12/31/2015   3/31/2016  
Assets:                  
Cash and cash equivalents $ 186,701   $ 229,513   $ 486,730  
Investment securities   1,800,037     2,643,823     2,847,742  
Loans held for sale   53,737     34,110     27,237  
Portfolio loans:                  
  Residential mortgage   494,106     713,036     718,733  
  Commercial real estate   1,916,937     3,529,381     3,676,214  
  Commercial and industrial   2,232,442     3,131,028     3,416,538  
  Acquisition, development and construction   95,567     186,398     179,517  
  Consumer   199,854     299,517     295,161  
    Total portfolio loans, gross   4,938,906     7,859,360     8,286,163  
  Allowance for loan losses   (42,884 )   (50,145 )   (53,014 )
    Total portfolio loans, net   4,896,022     7,809,215     8,233,149  
Federal Home Loan Bank and Federal Reserve Bank Stock, at cost   68,864     116,758     118,330  
Accrued interest receivable   21,367     31,531     33,392  
Premises and equipment, net   45,076     63,362     62,432  
Goodwill   400,941     670,699     696,600  
Other intangibles   51,757     77,367     75,790  
Bank owned life insurance   151,323     196,288     197,615  
Other real estate owned   8,231     14,614     14,527  
Other assets   43,459     68,672     71,812  
    Total assets $ 7,727,515   $ 11,955,952   $ 12,865,356  
Liabilities:                  
Deposits $ 5,555,946   $ 8,580,007   $ 9,328,622  
FHLB borrowings   857,138     1,409,885     1,444,817  
Other borrowings   25,245     16,566     23,571  
Senior notes   98,595     98,893     98,996  
Subordinated notes   -     -     108,124  
Mortgage escrow funds   5,805     13,778     14,972  
Other liabilities   104,243     171,750     148,121  
    Total liabilities   6,646,972     10,290,879     11,167,223  
Stockholders' equity:                  
Common stock   981     1,367     1,367  
Additional paid-in capital   943,764     1,506,612     1,501,417  
Treasury stock   (79,530 )   (76,190 )   (70,142 )
Retained earnings   220,067     245,408     261,332  
Accumulated other comprehensive (loss) income   (4,739 )   (12,124 )   4,159  
    Total stockholders' equity   1,080,543     1,665,073     1,698,133  
      Total liabilities and stockholders' equity $ 7,727,515   $ 11,955,952   $ 12,865,356  
   
Shares of common stock outstanding at period end   91,121,531     130,006,926     130,548,989  
Book value per share $ 11.86   $ 12.81   $ 13.01  
Tangible book value per share   6.89     7.05     7.09  
                   
                   
                   
Sterling Bancorp and Subsidiaries  
CONSOLIDATED CONDENSED INCOME STATEMENTS  
(unaudited, in thousands, except share and per share data)  
   
    For the Quarter Ended  
    3/31/2015     12/31/2015     3/31/2016  
Interest and dividend income:                        
  Loans and loan fees   $ 55,271     $ 89,707     $ 89,034  
  Securities taxable     7,632       12,201       12,016  
  Securities non-taxable     2,867       3,139       3,879  
  Other earning assets     902       1,177       1,077  
  Total interest and dividend income     66,672       106,224       106,006  
Interest expense:                        
  Deposits     3,091       5,728       6,409  
  Borrowings     4,714       5,075       6,087  
Total interest expense     7,805       10,803       12,496  
Net interest income     58,867       95,421       93,510  
Provision for loan losses     2,100       5,500       4,000  
Net interest income after provision for loan losses     56,767       89,921       89,510  
Non-interest income:                        
  Accounts receivable / factoring commissions and other fees     3,502       4,389       4,494  
  Mortgage banking income     3,157       2,762       2,002  
  Deposit fees and service charges     3,622       4,241       4,496  
  Net gain (loss) on sale of securities     1,534       (121 )     (283 )
  Bank owned life insurance     1,076       1,792       1,327  
  Investment management fees     360       877       1,124  
  Other     759       2,141       2,270  
Total non-interest income     14,010       16,081       15,430  
Non-interest expense:                        
  Compensation and benefits     23,165       29,868       30,020  
  Stock-based compensation plans     1,109       1,281       1,540  
  Occupancy and office operations     6,580       9,306       9,282  
  Amortization of intangible assets     1,399       3,431       3,053  
  FDIC insurance and regulatory assessments     1,428       2,287       2,258  
  Other real estate owned, net (income) expense     (37 )     87       582  
  Merger-related expenses     2,455       -       265  
  Loss on extinguishment of FHLB borrowings     -       -       8,716  
  Other     9,822       11,159       13,215  
Total non-interest expense     45,921       57,419       68,931  
Income before income tax expense     24,856       48,583       36,009  
Income tax expense     8,078       15,792       12,243  
Net income   $ 16,778     $ 32,791     $ 23,766  
Weighted average common shares:                        
  Basic     87,839,029       129,812,551       129,974,025  
  Diluted     88,252,768       130,354,779       130,500,975  
Earnings per common share:                        
  Basic earnings per share   $ 0.19     $ 0.25     $ 0.18  
  Diluted earnings per share     0.19       0.25       0.18  
  Dividends declared per share     0.07       0.07       0.07  
                     
                     
                     
Sterling Bancorp and Subsidiaries
SELECTED FINANCIAL DATA
(unaudited, in thousands, except share and per share data)
        As of and for the Quarter Ended    
End of Period   3/31/2015   6/30/2015   9/30/2015   12/31/2015   3/31/2016
Total assets   $ 7,727,515   $ 11,566,382   $ 11,597,393   $ 11,955,952   $ 12,865,356
Tangible assets 1     7,274,817     10,812,483     10,845,864     11,207,886     12,092,966
Securities available for sale     1,214,404     2,081,414     1,854,862     1,921,032     1,894,820
Securities held to maturity     585,633     585,196     673,130     722,791     952,922
Portfolio loans     4,938,906     7,235,587     7,525,632     7,859,360     8,286,163
Goodwill     400,941     669,590     670,699     670,699     696,600
Other intangibles     51,757     84,309     80,830     77,367     75,790
Deposits     5,555,946     8,836,161     8,805,411     8,580,007     9,328,622
Municipal deposits (included above)     1,013,835     1,212,624     1,352,846     1,140,206     1,285,263
Borrowings     980,978     914,921     948,048     1,525,344     1,675,508
Stockholders' equity     1,080,543     1,623,110     1,652,204     1,665,073     1,698,133
Tangible equity 1     627,845     869,211     900,675     917,007     925,743
Quarterly Average Balances                              
Total assets     7,438,314     8,049,220     11,242,870     11,622,621     12,001,370
Tangible assets 1     6,999,344     7,593,900     10,490,169     10,872,287     11,253,958
Loans, gross:                              
  Residential mortgage     531,421     539,569     780,373     777,561     755,564
  Commercial real estate     1,908,582     2,040,094     3,253,183     3,444,774     3,587,341
  Commercial and industrial:                              
    Commercial and industrial     898,839     966,411     1,295,034     1,378,642     1,381,107
    Asset based lending     296,409     297,846     303,387     304,113     304,779
    Payroll finance     158,493     170,905     175,240     199,856     192,428
    Warehouse lending     157,038     263,802     286,557     293,387     248,831
    Factored receivables     134,105     150,569     192,380     210,081     181,974
    Equipment financing     423,510     477,369     578,655     587,445     616,995
      Total commercial and industrial     2,068,394     2,326,902     2,831,253     2,973,524     2,926,114
  Acquisition, development and construction     97,865     97,197     173,898     181,550     179,420
  Consumer     200,504     202,044     292,852     281,242     297,028
Loans, total 2     4,806,766     5,205,806     7,331,559     7,658,651     7,745,467
Interest bearing cash and cash equivalents     113,152     114,128     211,723     168,199     296,668
Securities (taxable)     1,379,861     1,527,872     1,967,600     2,111,953     2,139,547
Securities (non-taxable)     386,326     380,544     446,875     429,633     593,777
Total earning assets     6,736,422     7,309,667     10,038,831     10,460,168     10,880,356
Deposits:                              
  Non-interest bearing demand     1,503,692     1,548,844     3,234,450     3,017,727     3,009,085
  Interest bearing demand     775,714     823,471     1,418,803     1,485,690     1,607,227
  Savings (including mortgage escrow funds)     766,448     802,956     950,709     962,766     814,485
  Money market     1,851,839     1,922,805     2,548,181     2,808,734     2,866,666
  Certificates of deposit     452,594     536,394     539,765     550,640     619,154
Total deposits and mortgage escrow     5,350,287     5,634,470     8,691,908     8,825,557     8,916,617
Borrowings     955,677     1,234,958     772,777     988,550     1,274,605
Stockholders' equity     1,031,809     1,100,897     1,639,458     1,661,282     1,686,274
Tangible equity1     592,839     645,577     886,757     910,948     938,862

1 See a reconciliation of this Non-GAAP Financial Measure on page 12.
2 Includes loans held for sale, excludes allowance for loan losses.

                     
                     
                     
Sterling Bancorp and Subsidiaries  
SELECTED FINANCIAL DATA AND PERFORMANCE RATIOS  
(unaudited, in thousands, except share and per share data)  
             
      As of and for the Quarter Ended      
Per Share Data 3/31/2015   6/30/2015   9/30/2015   12/31/2015   3/31/2016  
Basic earnings (loss) per share $ 0.19   $ (0.08 ) $ 0.19   $ 0.25   $ 0.18  
Diluted earnings (loss) per share   0.19     (0.08 )   0.19     0.25     0.18  
Core earnings per share 1   0.21     0.23     0.25     0.26     0.25  
Dividends declared per share   0.07     0.07     0.07     0.07     0.07  
Tangible book value per share   6.89     6.70     6.94     7.05     7.09  
Shares of common stock o/s   91,121,531     129,709,834     129,769,569     130,006,926     130,548,989  
Basic weighted average common shares o/s   87,839,029     91,565,972     129,733,911     129,812,551     129,974,025  
Diluted weighted average common shares o/s   88,252,768     91,950,776     130,192,937     130,354,779     130,500,975  
Performance Ratios (annualized)                              
Return on average assets   0.91 %   (0.38 )%   0.85 %   1.12 %   0.80 %
Return on average equity   6.59 %   (2.79 )%   5.85 %   7.83 %   5.67 %
Return on average tangible assets 1   0.97 %   (0.40 )%   0.91 %   1.20 %   0.85 %
Return on average tangible equity 1   11.48 %   (4.75 )%   10.82 %   14.28 %   10.18 %
Core return on average tangible assets 1   1.07 %   1.13 %   1.21 %   1.22 %   1.15 %
Core return on average tangible equity 1   12.66 %   13.27 %   14.33 %   14.60 %   13.78 %
Core operating efficiency 1   56.4 %   52.6 %   49.0 %   47.6 %   48.9 %
Analysis of Net Interest Income                              
Yield on loans   4.66 %   4.60 %   4.75 %   4.65 %   4.62 %
Yield on investment securities - tax equivalent 2   2.79 %   2.71 %   2.63 %   2.66 %   2.65 %
Yield on interest earning assets - tax equivalent 2   4.11 %   4.03 %   4.15 %   4.09 %   4.00 %
Cost of total deposits   0.23 %   0.24 %   0.24 %   0.26 %   0.29 %
Cost of borrowings   2.00 %   1.63 %   2.38 %   2.04 %   1.92 %
Cost of interest bearing liabilities   0.66 %   0.63 %   0.63 %   0.63 %   0.70 %
Net interest rate spread - tax equivalent basis 2   3.45 %   3.40 %   3.52 %   3.46 %   3.30 %
Net interest margin - GAAP basis   3.45 %   3.49 %   3.69 %   3.62 %   3.46 %
Net interest margin - tax equivalent basis 2   3.64 %   3.57 %   3.76 %   3.68 %   3.53 %
Capital                              
Tier 1 leverage ratio - Company 3   9.55 %   12.92 %   9.12 %   9.03 %   8.61 %
Tier 1 leverage ratio - Bank only 3   10.53 %   13.81 %   9.80 %   9.65 %   9.16 %
Tier 1 risk-based capital - Bank only 3 $ 739,580   $ 1,015,470   $ 1,032,930   $ 1,053,527   $ 1,032,118  
Total risk-based capital - Bank only 3   782,859     1,060,332     1,081,090     1,104,221     1,193,801  
Tangible equity to tangible assets - Company 1   8.63 %   8.04 %   8.30 %   8.18 %   7.66 %
Condensed Five Quarter Income Statement                              
Interest and dividend income $ 66,672   $ 71,947   $ 103,298   $ 106,224   $ 106,006  
Interest expense   7,805     8,373     9,944     10,803     12,496  
Net interest income   58,867     63,574     93,354     95,421     93,510  
Provision for loan losses   2,100     3,100     5,000     5,500     4,000  
Net interest income after provision for loan losses   56,767     60,474     88,354     89,921     89,510  
Non-interest income   14,010     13,857     18,802     16,081     15,430  
Non-interest expense   45,921     85,659     71,315     57,419     68,931  
Income (loss) before income tax expense   24,856     (11,328 )   35,841     48,583     36,009  
Income tax expense (benefit)   8,078     (3,682 )   11,648     15,792     12,243  
Net income (loss) $ 16,778   $ (7,646 ) $ 24,193   $ 32,791   $ 23,766  

1 See a reconciliation of Non-GAAP Financial Measures beginning on page 12.
2 Tax equivalent adjustment represents interest income earned on municipal securities divided by the applicable Federal tax rate of 35%.
3 Regulatory capital amounts and ratios are preliminary estimates pending filing of the Company's and Bank's regulatory reports.

                       
                       
                       
Sterling Bancorp and Subsidiaries  
ASSET QUALITY INFORMATION  
(unaudited, in thousands, except share and per share data)  
   
        As of and for the Quarter Ended      
Allowance for Loan Losses Roll Forward   3/31/2015   6/30/2015   9/30/2015   12/31/2015   3/31/2016  
Balance, beginning of period   $ 42,374   $ 42,884   $ 44,317   $ 47,611   $ 50,145  
Provision for loan losses     2,100     3,100     5,000     5,500     4,000  
Loan charge-offs:                                
  Commercial & industrial     (842 )   (228 )   (224 )   (281 )   (489 )
  Payroll finance     (303 )   (59 )   (44 )   -     -  
  Warehouse lending     -     -     -     -     -  
  Factored receivables     (72 )   (146 )   (52 )   (21 )   (81 )
  Equipment financing     (153 )   (438 )   (1,369 )   (1,463 )   (457 )
  Commercial real estate     (62 )   (276 )   (223 )   (1,134 )   (4 )
  Multi-family     (17 )   -     -     -     -  
  ADC     -     -     -     -     -  
  Residential mortgage     (181 )   -     (546 )   (524 )   (224 )
  Consumer     (342 )   (821 )   (387 )   (810 )   (511 )
    Total charge offs     (1,972 )   (1,968 )   (2,845 )   (4,233 )   (1,766 )
Recoveries of loans previously charged-off:                                
  Commercial & industrial     101     163     781     675     329  
  Payroll finance     11     -     -     24     4  
  Warehouse lending     -     -     -     -     -  
  Factored receivables     19     9     18     14     24  
  Equipment financing     172     96     148     409     108  
  Commercial real estate     16     -     76     56     21  
  Multi-family     -     -     -     9     2  
  ADC     9     -     -     43     -  
  Residential mortgage     2     9     81     -     28  
  Consumer     52     24     35     37     119  
    Total recoveries     382     301     1,139     1,267     635  
Net loan charge-offs     (1,590 )   (1,667 )   (1,706 )   (2,966 )   (1,131 )
Balance, end of period   $ 42,884   $ 44,317   $ 47,611   $ 50,145   $ 53,014  
Asset Quality Data and Ratios                                
Non-performing loans (NPLs) non-accrual   $ 45,476   $ 68,419   $ 67,390   $ 65,737   $ 84,436  
NPLs still accruing     972     611     282     674     1,002  
    Total NPLs     46,448     69,030     67,672     66,411     85,438  
  Other real estate owned     8,231     9,575     11,831     14,614     14,527  
  Non-performing assets (NPAs)   $ 54,679   $ 78,605   $ 79,503   $ 81,025   $ 99,965  
  Loans 30 to 89 days past due   $ 35,267   $ 40,957   $ 30,881   $ 67,996   $ 19,168  
  Net charge-offs as a % of average loans                                
  (annualized)     0.13 %   0.13 %   0.09 %   0.15 %   0.06 %
  NPLs as a % of total loans     0.94 %   0.95 %   0.90 %   0.84 %   1.03 %
  NPAs as a % of total assets     0.71 %   0.68 %   0.69 %   0.68 %   0.78 %
  Allowance for loan losses as a % of NPLs     92.3 %   64.2 %   70.4 %   75.5 %   62.0 %
  Allowance for loan losses as a % of total loans     0.87 %   0.61 %   0.63 %   0.64 %   0.64 %
  Total valuation balances recorded against portfolio loans to adjusted gross portfolio loans 1     0.97 %   1.36 %   1.28 %   1.16 %   1.17 %
  Special mention loans   $ 26,057   $ 65,421   $ 91,076   $ 68,003   $ 101,560  
  Substandard loans     74,095     125,602     120,684     129,665     131,919  
  Doubtful loans     157     392     152     713     556  
  1 See a reconciliation of this non-GAAP measure on page 14.                 
   
   
   
Sterling Bancorp and Subsidiaries  
QUARTERLY YIELD TABLE  
(unaudited, in thousands, except share and per share data)  
   
        For the Quarter Ended          
    December 31, 2015         March 31, 2016      
    Average       Yield/     Average       Yield/  
    balance   Interest   Rate     balance   Interest   Rate  
        (Dollars in thousands)      
Interest earning assets:                                    
  Commercial loans   $ 6,599,848   $ 79,009   4.75 %   $ 6,692,875   $ 78,137   4.70 %
  Consumer loans     281,242     3,158   4.45 %     297,028     3,296   4.46 %
  Residential mortgage loans     777,561     7,540   3.88 %     755,564     7,601   4.02 %
Total net loans 1     7,658,651     89,707   4.65 %     7,745,467     89,034   4.62 %
  Securities taxable     2,111,953     12,201   2.29 %     2,139,547     12,016   2.26 %
  Securities non-taxable     429,633     4,831   4.46 %     593,777     5,968   4.04 %
  Interest earning deposits     168,199     77   0.18 %     296,668     311   0.42 %
  FRB and FHLB stock     91,732     1,100   4.76 %     104,897     766   2.94 %
    Total securities and other earning assets     2,801,517     18,209   2.58 %     3,134,889     19,061   2.45 %
  Total interest earning assets     10,460,168     107,916   4.09 %     10,880,356     108,095   4.00 %
Non-interest earning assets     1,162,453                 1,121,014            
Total assets   $ 11,622,621               $ 12,001,370            
Interest bearing liabilities:                                    
  Demand deposits   $ 1,485,690   $ 890   0.24 %   $ 1,607,227   $ 1,004   0.25 %
  Savings deposits 2     962,766     617   0.25 %     814,485     606   0.30 %
  Money market deposits     2,808,734     3,283   0.46 %     2,866,666     3,672   0.52 %
  Certificates of deposit     550,640     938   0.68 %     619,154     1,127   0.73 %
Total interest bearing deposits     5,807,830     5,728   0.39 %     5,907,532     6,409   0.44 %
  Senior notes     98,827     1,476   5.97 %     98,928     1,478   5.98 %
  Other borrowings     889,723     3,599   1.60 %     1,172,112     4,560   1.56 %
  Subordinated notes     -     -   - %     3,565     49   5.50 %
    Total borrowings     988,550     5,075   2.04 %     1,274,605     6,087   1.92 %
  Total interest bearing liabilities     6,796,380     10,803   0.63 %     7,182,137     12,496   0.70 %
Non-interest bearing deposits     3,017,727                 3,009,085            
Other non-interest bearing liabilities     147,232                 123,874            
Total liabilities     9,961,339                 10,315,096            
  Stockholders' equity     1,661,282                 1,686,274            
Total liabilities and stockholders' equity   $ 11,622,621               $ 12,001,370            
Net interest rate spread 3               3.46 %               3.30 %
Net interest earning assets 4   $ 3,663,788               $ 3,698,219            
Net interest margin - tax equivalent           97,113   3.68 %           95,599   3.53 %
Less tax equivalent adjustment           (1,692 )               (2,089 )    
Net interest income         $ 95,421               $ 93,510      
Ratio of interest earning assets to interest bearing liabilities     153.9 %               151.5 %          

1 Average balances include the effect of net deferred loan origination fees and costs, allowance for loan losses and non-accrual loans. Interest includes prepayment fees and late charges. 
2 Includes interest bearing mortgage escrow balances. 
3 Net interest rate spread represents the difference between the tax equivalent yield on average interest earning assets and the cost of average interest bearing liabilities. 
4 Net interest earning assets represents total interest earning assets less total interest bearing liabilities.

 
 
 
Sterling Bancorp and Subsidiaries
NON-GAAP FINANCIAL MEASURES
(unaudited, in thousands, except share and per share data)
 
       As of and for the Quarter Ended      
  3/31/2015   6/30/2015   9/30/2015   12/31/2015   3/31/2016

The Company provides supplemental reporting of Non-GAAP Financial Measures as management believes this information is useful to investors. See legend on page 14.

The following table shows the reconciliation of stockholders' equity to tangible equity and the tangible equity ratio 1:

Total assets   $ 7,727,515   $ 11,566,382   $ 11,597,393   $ 11,955,952   $ 12,865,356  
Goodwill and other intangibles       (452,698 )     (753,899 )     (751,529 )     (748,066 )     (772,390 )
Tangible assets       7,274,817       10,812,483       10,845,864       11,207,886       12,092,966  
Stockholders' equity       1,080,543       1,623,110       1,652,204       1,665,073       1,698,133  
Goodwill and other intangibles       (452,698 )     (753,899 )     (751,529 )     (748,066 )     (772,390 )
Tangible stockholders' equity       627,845       869,211       900,675       917,007       925,743  
   
Common stock outstanding at period end       91,121,531       129,709,834       129,769,569       130,006,926       130,548,989  
Tangible equity as a % of tangible assets       8.63 %     8.04 %     8.30 %     8.18 %     7.66 %
Tangible book value per share   $ 6.89   $ 6.70   $ 6.94   $ 7.05   $ 7.09  
                                 
                                 
                                 

The following table shows the reconciliation of return on average tangible equity and core return on average tangible equity 2:

Average stockholders' equity   $ 1,031,809   $ 1,100,897   $ 1,639,458   $ 1,661,282   $ 1,686,274  
Average goodwill and other intangibles     (438,970 )   (455,320 )   (752,701 )   (750,334 )   (747,412 )
Average tangible stockholders' equity     592,839     645,577     886,757     910,948     938,862  
Net income (loss)     16,778     (7,646 )   24,193     32,791     23,766  
Net income (loss), if annualized     68,044     (30,668 )   95,983     130,095     95,586  
Return on average tangible equity     11.48 %   (4.75 )%   10.82 %   14.28 %   10.18 %
  Core net income (see reconciliation on page 13)   $ 18,501   $ 21,361   $ 32,035   $ 33,525   $ 32,159  
Annualized core net income     75,032     85,679     127,095     133,007     129,343  
Core return on average tangible equity     12.66 %   13.27 %   14.33 %   14.60 %   13.78 %
                                 
                                 
                                 

The following table shows the reconciliation of return on tangible assets and core return on tangible assets3:

Average assets   $ 7,438,314   $ 8,049,220   $ 11,242,870   $ 11,622,621   $ 12,001,370  
Average goodwill and other intangibles     (438,970 )   (455,320 )   (752,701 )   (750,334 )   (747,412 )
Average tangible assets     6,999,344     7,593,900     10,490,169     10,872,287     11,253,958  
Net income (loss)     16,778     (7,646 )   24,193     32,791     23,766  
Net income (loss), if annualized     68,044     (30,668 )   95,983     130,095     95,586  
Return on average tangible assets     0.97 %   (0.40 )%   0.91 %   1.20 %   0.85 %
Core net income (see reconciliation on page                                
13)   $ 18,501   $ 21,361   $ 32,035   $ 33,525   $ 32,159  
Annualized core net income     75,032     85,679     127,095     133,007     129,343  
Core return on average tangible assets     1.07 %   1.13 %   1.21 %   1.22 %   1.15 %
 
 
 
Sterling Bancorp and Subsidiaries        
NON-GAAP FINANCIAL MEASURES        
(unaudited, in thousands, except share and per share data)        
                   
                   
    As of and for the Quarter Ended    
  3/31/2015   6/30/2015   9/30/2015   12/31/2015   3/31/2016

The Company provides supplemental reporting of non-GAAP measures as management believes this information is useful to investors. See legend on page 14.

The following table shows the reconciliation of the core operating efficiency ratio 4:

Net interest income   $ 58,867   $ 63,574   $ 93,354   $ 95,421   $ 93,510  
Non-interest income     14,010     13,857     18,802     16,081     15,430  
Total net revenue     72,877     77,431     112,156     111,502     108,940  
Tax equivalent adjustment on securities interest income     1,544     1,562     1,707     1,692     2,091  
Net (gain) loss on sale of securities     (1,534 )   (697 )   (2,726 )   121     283  
Core total revenue     72,887     78,296     111,137     113,315     111,314  
Non-interest expense     45,921     85,659     71,315     57,419     68,931  
Merger-related expense     (2,455 )   (14,625 )   -     -     (265 )
Charge for asset write-downs, banking systems conversion, retention and severance     (971 )   (28,055 )   -     -     (2,485 )
Charge on benefit plan settlement     -     -     (13,384 )   -     -  
Loss on extinguishment of FHLB borrowings     -     -     -     -     (8,716 )
Amortization of intangible assets     (1,399 )   (1,780 )   (3,431 )   (3,431 )   (3,053 )
Core non-interest expense     41,096     41,199     54,500     53,988     54,412  
Core operating efficiency ratio     56.4 %   52.6 %   49.0 %   47.6 %   48.9 %
                                 
                                 
                                 

The following table shows the reconciliation of core net income and core earnings per share5:

   
Income (loss) before income tax expense   $ 24,856   $ (11,328 ) $ 35,841   $ 48,583   $ 36,009  
Income tax expense (benefit)     8,078     (3,682 )   11,648     15,792     12,243  
Net income (loss)     16,778     (7,646 )   24,193     32,791     23,766  
                                 
Net (gain) loss on sale of securities     (1,534 )   (697 )   (2,726 )   121     283  
Merger-related expense     2,455     14,625     -     -     265  
Charge for asset write-downs, banking systems conversion, retention and severance     971     28,055     -     -     2,485  
Charge on benefit plan settlement     -     -     13,384     -     -  
Loss on extinguishment of FHLB borrowings     -     -     -     -     8,716  
Amortization of non-compete agreements and acquired customer list intangible assets     660     991     961     961     968  
Total charges     2,552     42,974     11,619     1,082     12,717  
Income tax (benefit)     (829 )   (13,967 )   (3,777 )   (348 )   (4,324 )
Total non-core charges net of taxes     1,723     29,007     7,842     734     8,393  
Core net income   $ 18,501   $ 21,361   $ 32,035   $ 33,525   $ 32,159  
Weighted average diluted shares     88,252,768     91,950,776     130,192,937     130,354,779     130,500,975  
Diluted EPS as reported   $ 0.19   $ (0.08 ) $ 0.19   $ 0.25   $ 0.18  
Core diluted EPS (excluding total charges)     0.21     0.23     0.25     0.26     0.25  
                                 
                                 
                                 

Sterling Bancorp and Subsidiaries        
NON-GAAP FINANCIAL MEASURES        
(unaudited, in thousands, except share and per share data)        

           
    As of and for the Quarter Ended  
  3/31/2015   6/30/2015   9/30/2015   12/31/2015   3/31/2016

The Company provides supplemental reporting of non-GAAP measures as management believes this information is useful to investors. See legend below.

The following table shows a reconciliation of the allowance for loan losses and remaining purchase accounting adjustments to portfolio loans 6:

Allowance for loan losses   $ 42,884   $ 44,317   $ 47,611   $ 50,145   $ 53,014  
Remaining purchase accounting adjustments:                                
  Acquired performing loans     4,388     36,889     31,364     24,766     27,340  
  Purchased credit impaired loans     724     18,014     17,783     16,617     16,862  
    Total remaining purchase accounting adjustments     5,112     54,903     49,147     41,383     44,202  
Total valuation balances recorded against portfolio loans   $ 47,996   $ 99,220   $ 96,758   $ 91,528   $ 97,216  
                                 
Total portfolio loans, gross   $ 4,938,906   $ 7,235,587   $ 7,525,632   $ 7,859,360   $ 8,286,163  
Remaining purchase accounting adjustments:                                
  Acquired performing loans     4,388     36,889     31,364     24,766     27,340  
  Purchased credit impaired loans     724     18,014     17,783     16,617     16,862  
Adjusted portfolio loans, gross   $ 4,944,018   $ 7,290,490   $ 7,574,779   $ 7,900,743   $ 8,330,365  
Allowance for loan losses to total portfolio loans, gross     0.87 %   0.61 %   0.63 %   0.64 %   0.64 %
Total valuation balances recorded against portfolio loans to adjusted gross portfolio loans     0.97 %   1.36 %   1.28 %   1.16 %   1.17 %

The non-GAAP measures presented above are used by management and the Board of Directors on a regular basis in addition to our GAAP results to facilitate the assessment of our financial performance and to assess our performance compared to our annual budget and strategic plans. These non-GAAP financial measures complement our GAAP reporting and are presented above to provide investors, analysts, regulators and others information that we use to manage and evaluate our performance each period. This information supplements our GAAP reported results, and should not be viewed in isolation from, or as a substitute for, our GAAP results.

1 Tangible equity as a % of tangible assets provides information to help assess our capital position and financial strength. We believe tangible book measures improve comparability to other banking organizations that have not engaged in acquisitions that have resulted in the accumulation of goodwill and other intangible assets.

2 Return on average tangible equity and core return on average tangible equity measures provide information to evaluate the use of our tangible equity.

3 Return on tangible assets and the core return on tangible assets measures provide information to help assess our profitability.

4 The core operating efficiency ratio is a non-GAAP measure calculated by dividing non-interest expense by total net revenue. The core operating efficiency ratio is a measure we use to assess our core operating performance.

5 Core net income and core earnings per share present a summary of our earnings to exclude certain non-core revenues and non-core expenses to help in assessing our core profitability.

6 The reconciliation of the allowance for loan losses and remaining purchase accounting adjustments to portfolio loans provides information to evaluate the impact of purchase accounting adjustments and the allowance for loan losses on our portfolio loans. In purchase accounting, the prior allowance for loan losses is not carried over, and in place, we are required to estimate the fair value of the loan which includes an estimate of life of loan losses on the portfolio, which is included as a purchase discount within the acquired loan population.

Contact Information

  • Sterling Bancorp
    400 Rella Boulevard
    Montebello, NY 10901-4243
    T 845.369.8040
    F 845.369.8255
    http://www.sterlingbancorp.com

    STERLING BANCORP CONTACT:
    Luis Massiani
    SEVP & Chief Financial Officer
    845.369.8040