nathanoulman.com

fast money
adami guy
houston show
san antonio texas fast money
pete najarian
RAPID RECAP LATEST POSTS
1 hr ago
Posted By:Lee Brodie | Final Trade
Your First Move For Thursday May 21st
Here’s our Fast Money Final Trade. Our gang gives you tomorrow’s best trades, right now!
MEDIA:PHOTO1 hr ago
Posted By:Lee Brodie | Web.Extra
Web Extra: Fast & Furious Trades For Thursday
Following are the latest Fast & Furious trades. In this Web Extra, find out how the traders are gaming Boeing, Gamestop, Barnes & Noble and more.
MEDIA:PHOTO2 hrs ago
Posted By:Lee Brodie | Rising Star Stocks
Rising Star Stock - Wednesday May 20th
The Fast Money traders reveal a health and fitness stock that could pump up a scrawny portfolio!
MEDIA:PHOTO2 hrs ago
Posted By:Lee Brodie
Tossing Around Trades With An NFL Legend
All time great Joe Theismann talks winning in sports and business with the Fast Money traders. How’s he gaming it?
MEDIA:PHOTO2 hrs ago
Posted By:Lee Brodie | Pops & Drops
Pops & Drops: McDonald’s, Arch Coal…
Following are the day’s biggest winners and losers. Find out why shares of McDonald’s and Arch Coal popped while Wells Fargo and Palm dropped.
MEDIA:PHOTO2 hrs ago
Posted By:Lee Brodie | Tomorrows Playbook
More Mortgage Meltdown
Think the financial hurricane has past? According to one widely followed investor, this is the eye of the storm.
MEDIA:PHOTO2 hrs ago
Posted By:Lee Brodie | Tomorrows Playbook
Hot Trade, Coffee
If you’re a coffee drinker you might have to dig a little deeper into your wallet to pay for that next bag of beans.
MEDIA:PHOTO3 hrs ago
Posted By:Lee Brodie | Tomorrows Playbook
Fall Into The Gap
Retail investors are closely watching results from Gap. What should you expect?
MEDIA:PHOTO3 hrs ago
Posted By:Lee Brodie | Word on the Street
Rallied Denied As Financials Fail
The bears seized control of the stock market on Wednesday; and intense selling into the close left both the Dow and S&P in the red for the day.
MEDIA:PHOTO4 hrs ago
Posted By:Lee Brodie
Be Afraid, Be Very Afraid!
Wall Street’s fear index continued to decline on Wednesday, but Oppenheimer’s Carter Worth thinks there’s more here than meets the eye!
MEDIA:PHOTO7 hrs ago
Posted By:Lee Brodie | Fast Money’s Halftime Report
Halftime Report: Ride The Resilient Rally?
With trillions still sitting on the sidelines is there a real resiliency in stocks? Or are gains being driven by irrational exuberance?
MEDIA:PHOTO

1 comment

Accounting Tricks Boost Bank Profits
By RACHEL BECK, NEW YORK (May 13) - There’s nothing like a little magical math to make banks’ financial woes go away.
Bank stocks have surged in recent weeks, a sign that investors are betting the worst of the financial crisis is over. But in reaching this conclusion, the market has chosen to ignore some creative accounting banks are using to bolster their finances.
Lots of fuzzy math was trotted out during the just-ending earnings season to goose profits or narrow losses, and it will show up again as banks look to shore up their capital to meet requirements under the government’s “stress tests.” The tactics are perfectly legal, but they make the banks look healthier than they really are.
“Investors who have been pleasantly surprised by the recent results could find themselves equally bothered later on when they discover plenty of unpleasant things,” said Martin Weiss, who runs the investment firm Weiss Research Inc.
After a year and a half of frightful declines, the Standard & Poor’s Financials Index of 80 banks, insurers and investment firms bottomed in early March and has since more than doubled from a 17-year low, according to S&P.
Momentum behind the rally grew in April as large banks began reporting mostly better-than-expected first-quarter results. Earnings for the companies in the S&P Financial Index have come in nearly 11 percent ahead of analysts’ estimates.
That could just be the start of turnaround for the banks, said Kent Engelke, chief economic strategist at Capitol Securities Management in Glen Allen, Va. He thinks there is a 25 percent probability that there will be positive economic growth by the end of the second quarter, which will benefit banks’ loan portfolios.
“In order to have a healthy economy, we need a healthy banking system,” said Engelke, whose investment firm owns bank stocks. “I believe the government will do anything to ensure that will happen.”
But the recent strength seen in bank earnings didn’t come from significant improvements in their core businesses. Instead, accounting maneuvers helped bolster bottom lines.
Some banks reduced the amount of money they set aside to cover loan losses, which some analysts say conflicts with the reality of deteriorating loan portfolios. That means if the economy doesn’t recover and troubled assets continue to rise, in coming quarters banks might have to boost loss reserves again — which could hurt future earnings.
Wells Fargo saw its non-performing assets as a percentage of total assets jump by 40 percent over the previous quarter, yet it only increased its reserves by 5 percent. So even though more of its loans are past due or face foreclosure, it isn’t setting aside significantly more cash to deal with potential losses.
Earnings at several banks also benefited, counterintuitively, because the value of the banks’ own debt was reduced to reflect a decline in the market value of that debt.
In accounting-speak, a “credit-value adjustment” allows the banks to book a gain. The logic is that they could buy back the debt for less cash than they received when they issued the debt, so they get to claim a benefit, which many analysts say is illusory.
Say a bank had issued debt at 100 cents on the dollar, and it now trades at 60 cents on the dollar. The bank can mark down the value of the debt on their books to 60 cents on the dollar, and take a gain on the 40-cent difference.
For Citigroup , that debt adjustment totaled $2.5 billion, which helped narrow its losses for the quarter. The New York-based bank posted a first-quarter loss of $966 million, smaller than analysts expected.
“It’s not the kind of stuff you’d point to in earnings and say, “now that’s sustainable income,” said Jack Ciesielski, who writes the newsletter The Analyst’s Accounting Observer. “You would want to exclude it from earnings in evaluating how well a company performed.”
A separate accounting rule change for valuing banks’ assets that are available for sale also helped boost bank earnings. Until recently, they were “marked-to-market,” meaning they were adjusted to reflect current market prices. But that has become increasingly difficult during the current financial crisis since there has been no trading of the most troubled assets.
Under pressure from politicians and banks, accounting rulemakers reversed course in early April and gave corporate managers more discretion in valuing assets in cases when markets are frozen.
That helped Wells Fargo cut its unrealized losses on certain securities in half, from $9.9 billion on Dec. 31 to $4.7 billion on March 31. That helped boost profits as a result. San Francisco-based bank reported first-quarter earnings of $2.38 billion compared with a loss of about $3 billion in the final quarter of 2008.
Accounting maneuvers also will play a big role in what happens to banks that failed the government’s “stress tests,” which were done to gauge which financial institutions need more capital to survive a deeper recession.
When the government invested billions in U.S. banks over the last six months, it received convertible preferred shares. That gave the banks funds for day-to-day needs, but those preferred shares are counted as debt, not as part of “tangible common equity,” the government’s currently favored tool for assessing the strength of a bank.
If the government converts its preferred shares into common stock, those funds would count as equity capital, making the banks look stronger.
Here’s the hitch in that plan: The government would have greater influence since common shareholders have voting rights. The conversion would also dilute the ownership of current stockholders.
One way around this issue would be to convert the government funds into another kind of preferred share that could also be counted as “tangible common equity.”
However the bank equity dance plays out, investors don’t seem to care about any of the technicalities. They are stuck on the idea of a banking turnaround. They better hope they’re right.
—
Rachel Beck is the national business columnist for The Associated Press

3 comments

Company Overview

Caddo International, Inc., formerly Petrol Industries, Inc., is engaged in the drilling for, and producing oil and gas on leased property located in the Caddo Pine Island Field, and the Shreveport Field, both in Caddo Parish, Louisiana. As of December 31, 2004, the Company’s leases contained eight completed gas wells, 18 completed wells producing oil and gas, and 142 completed oil wells, principally in the Annona Chalk zone. An aggregate of 130 wells producing oil or oil and gas are being operated. In addition, It had proved developed oil and gas reserves of 7,857 barrels of oil at that date. The Company’s oil and gas production is sold to oil companies, and other purchasers that gather oil production by tank truck in areas where pipelines are not available. Genesis Crude Oil, LP accounted for 92.4% of The Company’s oil sales during the year ended December 31, 2004. In September 2007, It announced that the acquisition of Angel Construction Corp., a Louisiana-based company.
Company Contact
Address
202 North Thomas
Suite 4
Shreveport, LA 71107
Telephone (318) 424-6396

No comments

Retail sales dip raises worries about recovery
By MARTIN CRUTSINGER, WASHINGTON -Retail sales fell in April for a second straight month, dashing hopes that consumer spending was starting to revive and would help end the recession.
Economists said families who are worried about layoffs and unpaid job furloughs are saving more and spending less, delaying the start of a sustained recovery.
The disappointing report helped send stocks down on Wall Street, where the Dow Jones industrial average slid 184 points — more than 2 percent. Other major indexes fell even more sharply.
Retail sales fell 0.4 percent last month, worse than the flat performance many economists had expected, the Commerce Department reported Wednesday.
Retail sales had posted gains in January and February after falling for six straight months. The gains had raised hopes that the crucial consumer sector of the economy might be stabilizing. But the setbacks in March and April retail sales cast doubts on that prospect.
“People are obviously still very nervous and not spending,” said David Wyss, chief economist at Standard & Poor’s in New York. “The economy is still in a recession, and I don’t think we will hit bottom until late summer or early fall.”
Meanwhile, more than 342,000 households received at least one foreclosure-related notice in April, up 32 percent from the same month last year, RealtyTrac Inc. said Wednesday. April was the second straight month with more than 300,000 households receiving a foreclosure filing.
Analysts said the economy should benefit in coming months from the tax relief included in the $787 billion stimulus plan Congress passed in February. But the extra $17 a week that the average family will receive won’t translate into a major boost in spending.
Such modest relief is hardly enough to negate the effects of layoffs and employee furloughs, shrunken retirement accounts and home equity, and consumers struggling to boost savings because of fears about the future.
Mary Goodman has stopped most of her extraneous spending — like meals out. She reined in her spending habits after March 1, when she was laid off from her job as an office manager at an online job posting company in Milwaukee.
Now the 60-year-old Goodman eats out just once a week with a former co-worker, a trip that included soup at an indoor market on Wednesday afternoon.
“I’m not doing any clothes shopping,” she said. “I’m not tempting myself by going into the mall.”
Anecdotal evidence had signaled some improvement in sales in recent weeks. But “to offset the plunge in wealth, the household saving rate still needs to double from the current rate of 4 percent,” Paul Dales, U.S. economist with Capital Economics in Toronto, wrote in a research note.
“With falling employment hitting incomes, this can only be achieved by a further retrenchment in spending.”
The savings rate, which was hovering around zero a year ago, has climbed to just above 4 percent. Many economists think it will hit 6 percent or more this year as workers anxious about layoffs and depleted investments put away their credit cards. The jobless rate rose to a 25-year high of 8.9 percent in April, with a net total of 539,000 jobs lost during the month.
The fall in retail sales in April came even though car sales posted a 0.2 percent increase. Excluding autos, the drop in retail sales would have been 0.5 percent — much worse than the 0.2 percent gain economists had expected.
Sales other than autos showed widespread weakness last month. Demand at department stores and general merchandise stores fell 0.1 percent. Sales at specialty clothing stores dropped 0.5 percent.
Sales also fell in April at furniture stores, electronic and appliance stores, food and beverage stores and gasoline stations, the Commerce Department said.
The sales drop at department stores and specialty clothing stores came as a surprise since the nation’s big chain stores had reported better-than-expected results for April. Same-store sales rose 0.7 percent last month compared with April 2008. It was the first overall increase in six months, according to the tally by Goldman Sachs and the International Council of Shopping Centers.
The two reports aren’t comparable, analysts noted. The government figures, for example, cover more stores and are adjusted for seasonal variations.
Analysts said one reason the consensus forecast may have been too optimistic is that with many stores closing, it’s been difficult to estimate industry figures accurately.
Department store operator Macy’s Inc. on Wednesday reported a wider loss for the first quarter, due partly to restructuring charges. Still, the company expects to see an improvement in sales from its localization efforts beginning in the fourth quarter of 2009, and in the spring of 2010.
Liz Claiborne Inc. also reported a first-quarter loss that was worse than Wall Street expected. The apparel maker said its quarterly loss swelled on restructuring charges and a drop in same-store sales stemming from lower consumer spending and an extra week of sales in the year-ago period.
In a separate report, the Commerce Department said business inventories fell 1 percent in March, a seventh straight decrease. That’s the longest stretch since businesses cut inventories for 15 straight months in 2001 and 2002, during the last recession.
Businesses are cutting stockpiles amid declining sales, a development that has intensified the current downturn. Still, the reductions in stockpiles eventually should help businesses get their inventories more in line with reduced sales. If that occurs, any strengthening in consumer demand should lead to increased production.
Consumer spending grew 2.2 percent in the first quarter of the year, after posting back-to-back quarterly declines in the last half of 2008.
Economists think the overall economy, as measured by the gross domestic product, will show a decline of around 3 percent in the current quarter. That would compare with steep declines of more than 6 percent each in prior two quarters, the worst six-month performance in a half-century.
“The weak start to second quarter consumer spending is a potent reminder that that the recession is not over, despite signs of green shoots,” said Stuart Hoffman, chief economist at PNC Financial.
Goodman needs no such reminder. Despite her reduced spending, she said her son likely will have to move home from college because she can’t pay his rent.
—
AP Retail Writer Emily Fredrix in Milwaukee contributed to this report.

2 comments

Angelo Mozilo likely to face insider trading charges
Zac Bissonnette
May 13th 2009 at 6:00PMText SizeAAASecurities and Exchange Commission staff have recommended that former Countrywide Financial CEO Angelo Mozilo face civil securities fraud charges.

The Wall Street Journal reports (subscription required) that the SEC has sent Mr. Mozilo a Wells Notice — a document alerting its recipient that he will likely face SEC charges. The Journal says, “The potential charges include alleged violations of insider-trading laws as well as failing to disclose material information to shareholders, according to one person familiar with the matter.”
stock forum
stock postings
This is a matter of symbolic significance more than anything else. In the vast, vast majority of these cases, the recipient of a Wells Notice agrees to settle the charges, pay a fine (almost always a small fraction of the defendant’s net worth), and be barred from serving as an officer or director of a public company for a period of time. Given that Mozilo was born in 1938 and is the poster child for bad corporate governance and slimy lending practices, there’s probably no risk he’ll be hired to run another company again anytime soon (except maybe General Motors (GM), which apparently has no standards for hiring executives).

Symbolically though, Mr. Mozilo is the first of the high-profile subprime sleazebags to face any kind of federal scrutiny. Sure, a couple Bear Stearns hedge funds managers got in trouble but so far, the titans have been free to juggle assets and wait for the wheels of justice to grind.

Hopefully Mozilo is the beginning of an avalanche of similar Wells Notices.
Source

1 comment

Playboy Enterprises, Inc. Reports First Quarter 2009 Results

Playboy Enterprises, Inc. (PEI) (PLA, PLAA) today reported a net loss for the first quarter ended March 31, 2009 of $13.7 million, or $0.41 per basic and diluted share, which included $8.7 million, or $0.26 per basic and diluted share, of impairment and restructuring charges. This compares to a net loss in the same period last year of $4.2 million, or $0.13 per basic and diluted share, which included a $0.6 million restructuring charge.

First quarter 2009 revenues totaled $61.6 million, down $16.9 million from the prior year period, primarily reflecting the outsourcing of operations, asset sales and the effects of the global economic slowdown on advertising and consumer spending. The quarter’s segment loss was $1.3 million versus segment income of $0.1 million last year.

Playboy Interim Chairman and Chief Executive Officer Jerome Kern said: “We are beginning to see the results of the extensive restructuring and cost-reduction work that we began implementing in last year’s fourth quarter. These initiatives allowed us to offset all but $1.4 million of the nearly $17 million revenue decline and led to improved margins in our TV and digital businesses, despite a lower revenue base. In addition to closing the New York office and integrating our print and digital operations, we continue to look for ways to further reduce our cost structure and improve operating efficiencies. Since last October, we have reduced headcount by more than 25% and taken approximately $18 million in annual personnel-related costs out of the company.

“In our business segments, we are focused on capitalizing on the growth potential of our digital and licensing businesses. A revamped Playboy.com free site, which we recently introduced, creates a web experience that is more attractive to both consumers and advertisers. In spite of the difficult economy, we believe that the new web site coupled with cost reduction measures we’ve implemented will create a trend of improving margins and higher profits in the digital business by year end.

“While the global economic slowdown is hampering the Licensing Group’s growth through the first half of this year, we are signing new deals and are pleased with the continued rollout of our men’s fragrance line,” Kern said. “Consistent with other consumer products companies, we are seeing the downward sales trends begin to flatten, and we believe that we will see year-over-year revenue and profit growth in the 2009 second half. In addition, it now appears that our second entertainment venue, which we announced in February and expected to come on line in early 2010, will open before the end of 2009.”

“The publishing business remains a key focus of our attention, as the print industry continues to face significant challenges on both the circulation and advertising fronts. Despite a first quarter that was weaker than last year, reflecting the negative impact of a change in how we record direct response advertising costs, we believe the magazine’s bottom line will improve in 2009 versus last year. This performance is still not acceptable, however, and we expect to continue making changes that will lead to further improvements in the magazine’s financial results,” Kern said.

Entertainment

Cost reduction initiatives contributed to the 25% increase in the Entertainment Group’s first quarter 2009 segment income to $3.0 million from $2.3 million in last year’s first quarter. Revenues in the same period were down 20% to $26.2 million, primarily due to the sale of the Andrita television studio assets in 2008 and the effects of a stronger U.S. dollar on international TV revenues.

First quarter 2009 domestic TV revenues declined to $13.3 million from $16.5 million. Modest growth in video on demand was more than offset by the loss of revenues related to the studio sale and lower pay-per-view revenues resulting from the continued migration of consumers from linear networks to on-demand programming.

Print/Digital

The Print/Digital Group reported a first quarter 2009 segment loss of $3.6 million, $0.8 million worse than the same period last year, as improved digital performance was more than offset by weaker magazine results both domestically and internationally. The outsourcing of e-commerce was the largest factor in the group’s 26% decline in revenues to $26.1 million during the same time period.

First quarter 2009 Playboy magazine revenues were down 16% to $13.5 million compared to last year’s first quarter due to softer circulation and advertising sales. In the first quarter, the company began expensing as incurred direct response advertising costs related to subscription acquisitions that previously had been deferred and amortized over the life of the subscriptions. Excluding this unusual increase in expense, the decline in magazine revenues was more than offset by the results of cost reduction efforts.

The company expects to report a 39% decline in Playboy magazine advertising revenues in the 2009 second quarter compared to last year.

The outsourcing of e-commerce combined with lower paysite sales led to a 39% decline in first quarter 2009 digital revenues to $9.3 million. The decline was more than offset by lower costs across the online and mobile businesses, contributing to improved first quarter 2009 digital operating results compared to last year’s first quarter.

Licensing

Licensing Group segment income was down $1.1 million to $5.6 million in the 2009 first quarter compared to last year on a $1.2 million decline in revenues to $9.3 million. The top- and bottom-line weakness reflected the effects of the global economic slowdown and the resulting downturn in royalties from Europe compared to the prior year. Partially offsetting this decline was an increase in royalties from Latin America.

Corporate and Other

First quarter 2009 Corporate expense rose by $0.2 million to $6.3 million compared to last year. As previously announced, additional charges recorded during the first quarter included a $3.2 million restructuring charge, compared to $0.6 million in the prior year, and a non-cash impairment charge on goodwill of $5.5 million, as a result of the reclassification of reporting segments.

On May 1, PEI closed its New York office and, as a result, expects to record in the 2009 second quarter additional restructuring charges of approximately $4 million, largely related to vacating that office space.

As a result its adoption of a new accounting pronouncement relating to cash-settlement convertible debt, the company began recording additional non-cash interest expense effective with the first quarter 2009 and retrospectively. This pronouncement will effectively double recorded interest expense to approximately $9 million annually.

Additional information regarding first quarter 2009 earnings will be available on the earnings release conference call, which is being held today, May 11, 2009, at 11:00 a.m. Eastern /10:00 a.m. Central. The call may be accessed by dialing: 800-894-5910 (for domestic callers) or 785-424-1052 (for international callers) and using the password: Playboy. In addition, the call will be webcast. To listen to the call, please visit http://www.peiinvestor.com and select the Investor Relations section.

Playboy is one of the most recognized and popular consumer brands in the world. Playboy Enterprises, Inc. is a media and lifestyle company that markets the brand through a wide range of media properties and licensing initiatives. The company publishes Playboy magazine in the United States and abroad and creates content for distribution via television networks, websites, mobile platforms and radio. Through licensing agreements, the Playboy brand appears on a wide range of consumer products in more than 150 countries as well as retail stores and entertainment venues.

FORWARD-LOOKING STATEMENTS

This release contains “forward-looking statements,” as to expectations, beliefs, plans, objectives and future financial performance, and assumptions underlying or concerning the foregoing. We use words such as “may,” “will,” “would,” “could,” “should,” “believes,” “estimates,” “projects,” “potential,” “expects,” “plans,” “anticipates,” “intends,” “continues” and other similar terminology. These forward-looking statements involve known and unknown risks, uncertainties and other factors, which could cause our actual results, performance or outcomes to differ materially from those expressed or implied in the forward-looking statements. We want to caution you not to place undue reliance on any forward-looking statements. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

The following are some of the important factors that could cause our actual results, performance or outcomes to differ materially from those discussed in the forward-looking statements:

(1) Foreign, national, state and local government regulations, actions or
initiatives, including:
(a) attempts to limit or otherwise regulate the sale, distribution
or transmission of adult-oriented materials, including print,
television, video, Internet and mobile materials;
(b) limitations on the advertisement of tobacco, alcohol and other
products which are important sources of advertising revenue for
us; or
(c) substantive changes in postal regulations which could increase
our postage and distribution costs;
(2) Risks associated with our foreign operations, including market
acceptance and demand for our products and the products of our
licensees and partners;
(3) Our ability to manage the risk associated with our exposure to
Foreign currency exchange rate fluctuations;
(4) Further changes in general economic conditions, consumer spending
habits, viewing patterns, fashion trends or the retail sales
environment, which, in each case, could reduce demand for our
programming and products and impact our advertising and licensing
revenues;
(5) Our ability to protect our trademarks, copyrights and other
intellectual property;
(6) Risks as a distributor of media content, including our becoming
subject to claims for defamation, invasion of privacy, negligence,
copyright, patent or trademark infringement and other claims based on
the nature and content of the materials we distribute;
(7) The risk our outstanding litigation could result in settlements or
judgments which are material to us;
(8) Dilution from any potential issuance of common stock or convertible
debt in connection with financings or acquisition activities;
(9) Further competition for advertisers from other publications, media or
online providers or any decrease in spending by advertisers, either
generally or with respect to the adult male market;
(10) Competition in the television, men’s magazine, Internet, mobile, new
electronic media and product licensing markets;
(11) Attempts by consumers, distributors, merchants or private advocacy
groups to exclude our programming or other products from
distribution;
(12) Our television, Internet and mobile businesses’ reliance on third
parties for technology and distribution, and any changes in that
technology, distribution and/or unforeseen delays in implementation
which might affect our financial results, plans and assumptions;
(13) Risks associated with losing access to transponders or technical
failure of transponders or other transmitting or playback equipment
that is beyond our control;
(14) Competition for channel space on linear television or video-on-demand
platforms;
(15) Failure to maintain our agreements with multiple system operators, or
MSOs, and direct-to-home, or DTH, operators on favorable terms, as
well as any decline in our access to and acceptance by DTH and/or
cable systems and the possible resulting deterioration in the terms,
cancellation of fee arrangements, pressure on splits or adverse
changes in certain minimum revenue amounts with operators of these
systems;
(16) Risks that we may not realize the expected increased sales and
profits and other benefits from acquisitions;
(17) Any charges or costs we incur in connection with restructuring
measures we may take in the future;
(18) Risks associated with the financial condition of Claxson Interactive
Group, Inc., our Playboy TV-Latin America, LLC, joint venture
partner;
(19) Increases in paper, printing or postage costs;
(20) Effects of the national consolidation of the single-copy magazine
distribution system and risks associated with the financial stability
of major magazine wholesalers;
(21) Effects of the national consolidation and/or bankruptcies of
television distribution companies (e.g., cable MSOs, satellite
platforms and telecommunications companies);
(22) Risks associated with the viability of our subscription, on-demand,
ad-supported and e-commerce Internet models;
(23) Risks that adverse market and economic conditions may result in a
decrease in the value of our investments in marketable securities and
risks that adverse market conditions in the securities and credit
markets may significantly affect our ability to access the capital
and credit markets; and
(24) The risk that our common stock could be delisted from the New York
Stock Exchange, or NYSE, if we fail to meet the NYSE’s continued
listing requirements.

More detailed information about factors that may affect our performance may be found in our filings with the Securities and Exchange Commission, which are available at http://www.sec.gov or at http://www.peiinvestor.com in the Investor Relations section of our website.

Playboy Enterprises, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
(In millions, except per share amounts)

Quarters Ended
March 31,
———
2009 2008
—- —-
Net revenues
————
Entertainment:
Domestic TV $13.3 $16.5
International TV 11.3 14.7
Other 1.6 1.5
— —
Total Entertainment 26.2 32.7
Print/Digital:
Domestic magazine 13.5 16.1
International magazine 1.7 2.1
Special editions and other 1.6 1.9
Digital 9.3 15.2
— —-
Total Print/Digital 26.1 35.3
Licensing:
Consumer products 7.8 9.2
Location-based entertainment 1.1 0.9
Marketing events 0.1 0.2
Other 0.3 0.2
— —
Total Licensing 9.3 10.5
— —-

Total net revenues $61.6 $78.5
===== =====

Net loss
——–
Entertainment $3.0 $2.3
Print/Digital (3.6) (2.8)
Licensing 5.6 6.7
Corporate (6.3) (6.1)
—- —-

Segment income (loss) (1.3) 0.1

Restructuring expense (3.2) (0.6)
Impairment charge (5.5) -
—- —

Operating loss (10.0) (0.5)

Investment income - 0.3
Interest expense (2.1) (2.1)
Amortization of deferred financing fees (0.3) (0.2)
Other, net (0.1) (0.5)
—- —-

Loss before income taxes (12.5) (3.0)

Income tax expense (1.2) (1.2)
—- —-

Net loss $(13.7) $(4.2)
====== =====

Weighted average number of common shares
outstanding
Basic and diluted 33,388 33,275
====== ======

Basic and diluted loss per common share $(0.41) $(0.13)
====== ======

Note: Certain reclassifications have been made to conform to
the current presentation.

PLAYBOY ENTERPRISES, INC.
————————-
Reconciliation of Non-GAAP Financial Information (dollars in millions,
except per share amounts)

First Quarter Ended
March 31,
——————-
% Inc/
EBITDA and Adjusted EBITDA 2009 2008 (Dec)
————————— —- —- ——
Net loss $(13.7) $(4.2) 226.2
Adjusted for:
Income Tax Expense 1.2 1.2 -
Interest Expense 2.1 2.1 -
Amortization of Deferred Financing Fees 0.3 0.2 50.0
Depreciation and Amortization 9.9 10.4 (4.8)
Impairment charge 5.5 - -
—————– — —
EBITDA (1) 5.3 9.7 (45.4)
Adjusted for:
Cash Investments in Television Programming (7.2) (8.3) (13.3)
Restructuring expense 3.2 0.6 433.3
——————— — —
Adjusted EBITDA (2) $1.3 $2.0 (35.0)
——————- —- —-

First Quarter Ended
March 31,
——————-
Net Loss Before Restructuring And Impairment % Better/
Charge (3) 2009 2008 (Worse)
——————————————– —- —- ———
Net loss $(13.7) $(4.2) (226.2)
Adjusted for:
Restructuring expense 3.2 0.6 (433.3)
Impairment charge 5.5 - -
—————– — —
Net loss before restructuring and impairment
charge $(5.0) $(3.6) (38.9)
——————————————– —– —–
Basic and diluted loss before restructuring
and impairment charge per common share $(0.15) $(0.11) (36.4)
——————————————- —— ——

First Quarter Ended
March 31,
——————-
% Inc/
Financial and Operating Data 2009 2008 (Dec)
—————————- —- —- ——
Entertainment
Cash Investments in Television Programming $7.2 $8.3 (13.3)
Programming Amortization Expense $8.0 $8.2 (2.4)

Print/Digital
Advertising Sales (Playboy-Branded) $3.4 $4.6 (26.1)
Digital Content Expense $1.7 $1.6 6.2
Domestic Magazine Advertising Pages 59.0 86.0 (31.4)

At March 31
Cash, Cash Equivalents, Marketable Securities
and Short-Term Investments $26.5 $22.2 19.4
Long-Term Financing Obligations $100.8 $96.7 4.2
——————————- —— —–

See notes on accompanying page.

PLAYBOY ENTERPRISES, INC.
————————-
Notes to Reconciliation of Non-GAAP Financial Information and Financial
and Operating Data

1) In order to fully assess our financial results, management believes
That EBITDA is an appropriate measure for evaluating our operating
performance and liquidity, because it reflects the resources available
for, among other things, investments in television programming. The
resources reflected in EBITDA are not necessarily available for our
discretionary use because of legal or functional requirements to
conserve funds for capital replacement and expansion, debt service and
other commitments and uncertainties. Investors should recognize that
EBITDA might not be comparable to similarly titled measures of other
companies. EBITDA should be considered in addition to, and not as a
substitute for or superior to, any measure of performance, cash flows
or liquidity prepared in accordance with generally accepted accounting
principles in the United States, or GAAP.

2) In order to fully assess our financial results, management believes
that Adjusted EBITDA is an appropriate measure for evaluating our
operating performance and liquidity, because it reflects the resources
available for strategic opportunities including, among other things, to
invest in the business, make strategic acquisitions and strengthen the
balance sheet. In addition, a comparable measure of Adjusted EBITDA is
used in our credit facility to, among other things, determine the
interest rate that we are charged on borrowings under the credit
facility. Investors should recognize that Adjusted EBITDA might not be
comparable to similarly titled measures of other companies. Adjusted
EBITDA should be considered in addition to, and not as a substitute for
or superior to, any measure of performance, cash flows or liquidity
prepared in accordance with GAAP.

3) In order to fully assess our financial results, management believes
that Net loss before restructuring and impairment charge is an
appropriate measure for evaluating our operating performance and
liquidity. Investors should recognize that Net loss before
restructuring and impairment charge might not be comparable to
similarly titled measures of other companies. Net loss before
restructuring and impairment charge should be considered in addition
to, and not as a substitute for or superior to, any measure of
performance, cash flows or liquidity prepared in accordance with GAAP.

SOURCE Playboy Enterprises, Inc.

http://www.peiinvestor.com

3 comments

Las Vegas Sands to Cut More Jobs in Macau, Hong Kong (Update1)
Share | Email | Print | A A A

By Beth Jinks

May 13 (Bloomberg) — Las Vegas Sands Corp., the casino company controlled by billionaire Sheldon Adelson, plans to cut as many as 4,000 more jobs in Macau and Hong Kong after halting construction on its $12 billion Cotai Strip development.

Between 3,000 and 4,000 jobs will be eliminated by September, on top of the company’s workforce reduction to 17,500 from “close to 20,000” at its headcount peak in Macau, new Chief Operating Officer Michael Leven said in an interview.

Amid near-frozen credit markets, dwindling revenue and facing potential defaults in November, Las Vegas Sands stopped work on a 20,000-room complex of hotels and casinos in Macau’s Cotai Strip and shelved the $600 million St. Regis Residences in Las Vegas and other projects in Pennsylvania. The company raised capital and cut worker hours and jobs to trim more than $470 million in costs.

“Macanese workers will be not affected that much, it will affect the expatriate population more so,” Leven said. “Some of those people are transferred to Singapore, some are no longer required, and some are redundant.” Macau, the only place in China where casinos are legal, is the world’s biggest gambling hub.

Additional staff for Singapore will be hired closer to the opening of the company’s casino there, Adelson, Las Vegas Sands chief executive officer and chairman, said in the joint interview in Las Vegas yesterday.

Belt Tightening

“At this stage of the game, when we need to tighten the belt, then we should have just-in-time employees, plus a little bit, plus a cushion,” he said.

The company wants to reduce Macau staff to between 13,000 and 14,000 until more are needed after construction resumes, possibly this year, Adelson said. Las Vegas Sands stopped building halfway through phases five and six, which includes Shangri-La and St. Regis hotels, apartments, a casino and mall.

The operating Macau properties “have matured to the extent where you now know what you need to effectively operate,” Leven said. “When you open new properties, generally speaking you run on the high side of staffing and requirements because you don’t have really a knowledge of what the volumes will be in all the areas, so you have to make adjustments and it’s not unusual, after opening six or eight months to be able to right size.”

Job cuts in Las Vegas are “largely completed,” Leven said. The company is overhauling other “processes” in the U.S. to cut spending further, he said.

The casino operator “expects to do better” than the $470 million cost cuts it has targeted, and about 90 percent of the savings may be permanent, Leven said. Sands is “managing to the levels of business that we have, as opposed to the levels of business that we used to have.”

Las Vegas Sands raised $2.14 billion in November, partly from Adelson, 75, and his family. Adelson also injected $475 million on Sept. 30 to avoid violating the terms of some U.S. loans and triggering defaults that auditors had warned could force the company into bankruptcy. PricewaterhouseCoopers LLP removed a “substantial doubt” warning Nov. 17.

William Weidner, Sands’ chief operating officer for 13 years, left the company in March after conflicts with Adelson.

To contact the reporter on this story: Beth Jinks in New York at bjinks1@bloomberg.net

Last Updated: May 13, 2009 01:23 EDT

2 comments

Seaspan Takes Delivery of New Containership

2009-05-07 19:26 ET - News Release

HONG KONG, CHINA — (MARKET WIRE) — 05/07/09

Seaspan Corporation (NYSE: SSW) announced today that it accepted delivery of the MOL Emerald, a 5100 TEU newbuilding. The new containership, which was built by Hyundai Heavy Industries Co., Ltd., expands the Company’s operating fleet to 38 vessels with 30 remaining newbuildings to be delivered over approximately the next three years. The MOL Emerald was delivered to Seaspan on April 30, 2009.

The MOL Emerald is subject to a fixed-rate time charter with Mitsui O.S.K. Lines, Ltd., a Japanese liner company, for a twelve-year period. The MOL Emerald is the first of four vessels to be chartered to MOL. Under the terms of the time charters, MOL is responsible for fuel costs and all cargo operating and related expenses.

Gerry Wang, Chief Executive Officer of Seaspan, commented, “We are pleased to take delivery of the MOL Emerald, the first of four Seaspan vessels to be chartered to MOL, and the first ship to a Japanese liner company. While we are a major independent containership supplier to China, this marks a significant and strategic decision to diversify our customer relationships into Japan.”

Mr. Wang added, “Currently, a large portion of Seaspan’s fixed revenue streams are derived from liner companies based in Asia such as MOL. As we continue to generate sizeable revenues during this challenging economic environment, we remain focused on managing the business in a prudent manner that best serves shareholders over the long term.”

About Seaspan

Seaspan owns containerships and charters them pursuant to long-term fixed-rate charters. Seaspan’s contracted fleet of 68 containerships consists of 38 containerships in operation and 30 containerships to be delivered over approximately the next three years. Seaspan’s operating fleet of 38 vessels has an average age of approximately five years and an average remaining charter period of approximately eight years. All of the 30 vessels to be delivered to Seaspan are already committed to long-term time charters averaging approximately 11 years in duration from delivery. Seaspan’s customer base consists of seven of the world’s largest liner companies, including China Shipping Container Lines, A.P. Moller-Maersk, Mitsui O.S.K. Lines, Hapag-Lloyd, COSCO Container Lines, K-Line and CSAV.

Seaspan’s common shares are listed on the New York Stock Exchange under the symbol “SSW”.

STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This release contains certain forward-looking statements (as such term is defined in Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and our operations, performance and financial condition, including, in particular, the likelihood of our success in developing and expanding our business. Statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates”, “projects”, “forecasts”, “will”, “may”, “potential”, “should”, and similar expressions are forward-looking statements. These forward-looking statements reflect management’s current views only as of the date of this presentation and are not intended to give any assurance as to future results. As a result, you are cautioned not to rely on any forward-looking statements. Forward-looking statements appear in a number of places in this release. Although these statements are based upon assumptions we believe to be reasonable based upon available information, including operating margins, earnings, cash flow, working capital and capital expenditures, they are subject to risks and uncertainties. These risks and uncertainties include, but are not limited to: future operating or financial results; our expectations relating to dividend payments and our ability to make such payments; pending acquisitions, business strategy and expected capital spending; operating expenses, availability of crew, number of off-hire days, dry-docking requirements and insurance costs; general market conditions and shipping market trends, including charter rates and factors affecting supply and demand; our financial condition and liquidity, including our ability to borrow funds under our credit facilities and to obtain additional financing in the future to fund capital expenditures, acquisitions and other general corporate activities; estimated future capital expenditures needed to preserve our capital base; our expectations about the availability of ships to purchase, the time that it may take to construct new ships, or the useful lives of our ships; our continued ability to enter into long-term, fixed-rate time charters with our customers; our ability to leverage to our advantage Seaspan Management Services Limited’s relationships and reputation in the containership industry; changes in governmental rules and regulations or actions taken by regulatory authorities; the financial condition of our shipyards, charterers, lenders, refund guarantors and other counterparties and their ability to perform their obligations under their agreements with us; changes in worldwide container demand; changes in trading patterns; competitive factors in the markets in which we operate; potential inability to implement our growth strategy; potential for early termination of long-term contracts and our potential inability to renew or replace long-term contracts;

ability of our customers to make charter payments; potential liability from future litigation; conditions in the public equity markets; and other factors detailed from time to time in our periodic reports. We expressly disclaim any obligation to update or revise any of these forward-looking statements, whether because of future events, new information, a change in our views or expectations, or otherwise. We make no prediction or statement about the performance of our common shares.

Contacts:
Seaspan Corporation - Investor Relations Inquiries
Mr. Sai W. Chu
Chief Financial Officer
604-638-2575
www.seaspancorp.com

The IGB Group - Media Inquiries
Mr. Leon Berman
212-477-8438

No comments

Telecom Author ToolsView Bio
More Articles by This Author
RSS | Email
Tech Rumor of the Day: Sprint, Palm
05/08/09 - 02:07 PM EDT

S , AAPL , PALM , CLWR Scott Moritz

One thing about Sprint (S Quote), it’s pretty consistent.

More from Scott Moritz iPhone, BlackBerry Production Cuts?Ericsson Leading 4G Race at AT&TTech Rumor of the Day: EricssonIntel Struggles With Erosion IssuesCablevision Misfires: Wait, Is This a Re-Run?Tech Rumor of the Day: NokiaInside the iPhone Price CutSun Micro Finds Potential CorruptionInvestors Aren’t Buying Cisco’s OptimismCablevision Pops on Garden-Harvesting Plan Market Activity Clearwire Corporation| CLWR DOWNPalm Incorporated| PALM DOWNThe stumbling telco has big plans to launch its make-or-break Palm (PALM Quote) Pre phone on the weekend of June 5, just days before the newer, cheaper Apple(AAPL Quote) iPhone is expected to be introduced. The Pre June 5 “launch lunch!” date was referenced Thursday in a Sprint memo obtained in smoking gun fashion by BoyGeniusReport.
This isn’t exactly a perfect Sprint-like misstep. If Sprint were true to form, the company would have squandered any leading-edge opportunity and delayed the Pre launch fiasco to some post-iPhone date.
Dan Hesse

But June 5 has a nice touch to it. It gives the Pre debut a small window of urgency. As one of the most hotly anticipated phones since, well, the iPhone, the Pre will now have about 72 hours to bask alone in the smartphone center-stage limelight.

Sprint declined to comment on the Pre launch. It’s worth noting that April was expected by some Pre watchers as Sprint and Palm’s original target date to unveil the phone. Sprint never officially offered specifics beyond its intentions to launch Pre in the second quarter — sometime between April and June.

The touchscreen Pre, which has won rave reviews, could be the device that helps reverse Sprint’s downward plunge. Sprint lost 4.5 million subscribers and swung to a $2.8 billion loss last year.

For his outstanding work on that front, CEO Dan “Pretty Cool, Huh?” Hesse got a 2008 bonus that was 30% higher than planned. Sprint’s stock is down 64% since Hesse took over in December 2007, the Nasdaq is down only 36% in that period.

No comments

Sterling Financial Corporation of Spokane, Washington, Announces First-Quarter 2009 Results
Business Wire
Posted: 2009-04-23 16:30:00
Sterling Financial Corporation (NASDAQ:STSA), a leading community bank in the western region, today announced results for the first quarter ended March 31, 2009, of a net loss of $20.4 million, reflecting a provision for credit losses of $65.9 million but not including the payment of $4.3 million in preferred dividends to the U.S. Department of the Treasury under its Capital Purchase Program. After the payment of preferred dividends, earnings available to common shareholders were negative $24.8 million, or $0.48 per common share. Earnings for the first quarter ended March 31, 2008, were $2.9 million, or $0.06 per common share, and reflected a provision for credit losses of $37.1 million. “Our core banking operations performed solidly in the quarter. Revenues were up 6% year over year. Our mortgage banking operations benefited from lower interest rates, which led to a significant increase in the volume of residential mortgage originations. Income from mortgage banking operations was up 115% from a year ago,” stated Harold B. Gilkey, chairman and chief executive officer. “The elevated loan loss provision, while down significantly from the fourth quarter of 2008, reflects ongoing asset-quality challenges in the current economy.”

Sterling’s capital and liquidity positions remained strong at quarter end. Sterling’s total risk-based capital ratio was 13.0% at March 31, 2009. Sterling had $3.08 billion of cash equivalents and securities on its balance sheet. “We made progress lowering our funding cost structure and, thereby, improved a number of our financial metrics. Core deposits rose 3% over the linked quarter; our net interest margin increased to 2.97% from 2.80% from the prior quarter; and, operating efficiency improved to 62.7%,” commented Mr. Gilkey.

First-Quarter 2009 Highlights

Total deposits increased 8% from a year ago to a record $8.49 billion. Net interest margin improved to 2.97% from 2.80% in the linked quarter. Income from mortgage banking operations rose 115% year over year. All capital ratios remain above “well-capitalized” levels. Total assets were $12.82 billion. Total loans receivable were $8.68 billion. Sterling expanded lending initiatives to benefit consumers and businesses. Operating Results

Revenues

Sterling’s revenues, comprised of net interest income and non-interest income, rose 6% to $120.5 million for the quarter ended March 31, 2009, from $113.2 million for the quarter ended March 31, 2008. Higher income from mortgage banking operations and net gains on the sale of securities were the primary drivers of year-over-year growth in revenues.

Net Interest Income

Sterling’s net interest income was $87.7 million for the quarter ended March 31, 2009, compared with $83.3 million for the quarter ended December 31, 2008, and $92.1 million for the quarter ended March 31, 2008.

The 5% increase in Sterling’s net interest income on a linked-quarter basis reflects a 17-basis-point expansion in its net interest margin on a tax equivalent basis to 2.97% from 2.80% in the fourth quarter of 2008. Average funding costs in the first quarter of 2009 were reduced by 41 basis points over the prior quarter. During this period, average funding costs declined more than the yield on interest earning assets, which contracted 28 basis points.

The year-over-year decrease of 5% in Sterling’s net interest income primarily reflects a reduction in Sterling’s net interest margin on a tax equivalent basis of 27 basis points to 2.97% from 3.24%. Sterling’s higher level of non-performing assets, including non-accrual loans and other real estate owned (OREO), and its asset sensitivity, during a declining interest rate environment, were reasons for the decrease in net interest margin.

Non-Interest Income

Non-interest income primarily includes fees and service charges income, mortgage banking operations and other items such as bank-owned life insurance, loan servicing fees and OREO operations. In the first quarter of 2009, non-interest income rose 55% to $32.8 million from $21.2 million in the first quarter of 2008. The increase in non-interest income was driven by higher levels of income from mortgage banking operations and gains on the sales of securities.

Mortgage banking operations income in the first quarter of 2009 rose 115% to $13.3 million from $6.2 million in the first quarter of 2008, continuing the trend that started in the fourth quarter of 2008. For the first quarter of 2009, total residential mortgage originations were $710.6 million, with residential loan sales of $776.5 million, compared with originations of $411.1 million and loan sales of $335.5 million in the first quarter of 2008. “Our residential mortgage subsidiary, Golf Savings Bank, experienced a healthy annual increase in gain on loan sales during the quarter thanks to lower interest rates and programs designed to spur lending consistent with the U.S. Treasury’s Capital Purchase Program investment,” commented Mr. Gilkey.

For the quarter ended March 31, 2009, fees and service charges income contributed $13.8 million to non-interest income, compared with $14.2 million in the first quarter of 2008. Fees and service charges income continues to reflect higher analyzed account fees, loan-related fees and transaction fees, offset by a decrease in fees related to Sterling’s Balance Shield Program and lower commissions from Sterling’s Wealth Management group. Income from certain fees and service charges is influenced by the number of transaction accounts. At quarter end, the total number of transaction accounts was up 2% year over year.

Sterling recognized net expenses on OREO of $4.5 million in the first quarter of 2009, compared with $106,000 in the first quarter of 2008. The elevation in OREO expenses during the quarter reflects a decline in asset values subsequent to acquisition as well as write-downs to align valuations with pending OREO sales.

For the first quarter of 2009, Sterling reported other income of $8.5 million, which was primarily comprised of net gains on the sale of securities. This compares with other expense of $399,000 for the first quarter of 2008.

Non-Interest Expenses

Non-interest expenses rose 5% to $75.5 million in the first quarter of 2009 from $72.1 million in the first quarter of 2008. Excluding Federal Deposit Insurance Corporation (FDIC) deposit insurance premiums, which rose by $2.5 million, non-interest expenses increased 1% year over year. The small increase in non-interest expenses reflects improved operating efficiencies and tight cost controls. During the quarter, Sterling began realizing the benefits of systemic process improvements relating to the closure of two item processing centers following the complete rollout of remote teller capture systems. On a year-over-year basis, the number of full-time equivalent employees decreased by 39 to 2,518. ”Our efforts to improve our cost structure and increase operating efficiency are reflected in our operating efficiency ratio, which improved to 62.7% from 63.7% over the last year,” Mr. Gilkey said.

Lending

Reflecting less demand for credit in a slowing economy, loan originations during the first quarter of 2009 declined 10% to $970.5 million from year-ago levels. Consistent with Sterling’s strategic goal of reducing construction loans as a percent of its total loan portfolio, total construction originations decreased to $18.3 million during the quarter compared with $264.3 million during the same quarter a year ago. Stimulated by historically low mortgage rates, residential mortgage originations climbed 73% from the year-ago period to $710.6 million.

Loan originations relative to the fourth quarter of 2008 rose 35%. This sequential increase reflects Sterling’s effort, since December 2008, to expand and enhance lending initiatives to support and restore economic growth and development in the communities it serves with capital raised through the U.S. Department of the Treasury’s Capital Purchase Program. Sterling’s lending initiatives focus on funding affordable housing, small business loans and financing programs to support business growth.

At March 31, 2009, Sterling’s loans receivables were $8.68 billion, compared with $8.81 billion at the end of the fourth quarter of 2008, and $9.12 billion at March 31, 2008. The contraction in Sterling’s loan portfolio reflects management’s strategic decision to lower the amount of residential construction loans in its asset mix. At the end of the first quarter of 2009, residential construction represented 15% of Sterling’s loan portfolio, compared with 21% at the end of the first quarter of 2008. Over last year, residential construction loans decreased by $611.5 million to $1.33 billion at March 31, 2009.

Credit Quality

In the first quarter of 2009, Sterling recorded a $65.9 million provision for credit losses, compared with $228.5 million for the linked quarter, and $37.1 million for the same period a year ago. This provision stems from higher levels of classified assets and higher loss rates. Classified assets include non-performing loans and OREO. As of March 31, 2009, classified assets were $1.07 billion, compared with $984.9 million at December 31, 2008, and $402.8 million at March 31, 2008. “Construction assets represent 70% of total classified assets. During the first quarter, we observed a slowdown in the growth rate of classified construction assets, while weakness in the overall economy has contributed to moderately increased levels of classified assets in our commercial banking, commercial real estate and non-owner occupied residential portfolios. We have taken steps to contain further growth of classified assets in these loan segments. The success of our efforts will depend, in part, on the stabilization of our local economies,” observed Mr. Gilkey.

At March 31, 2009, non-performing assets totaled $670.0 million, compared with $610.7 million at December 31, 2008, and $223.1 million at March 31, 2008. The linked-quarter growth of non-performing assets was 10%, representing a deceleration in the rate of quarterly growth, which, had ranged between 36% and 65% over the previous four quarters. Sterling believes that the slowing growth rates of classified and non-performing assets, mainly related to construction, reflects the cumulative efforts of its construction credit team, which has been in place for more than one year to identify, manage and resolve stressed assets. The process of resolving problem assets involves restructuring loans; obtaining additional collateral; repossessing problem assets and evaluating loans in relation to fair market value. Cumulatively, Sterling has written down its non-performing assets by $244.0 million as of March 31, 2009, compared with write-downs of $207.7 million as of December 31, 2008 and $4.2 million as of March 31, 2008. At March 31, 2009, non-performing assets include $46.7 million of restructured loans that are performing in accordance with their new terms and are accruing interest, compared with $29.5 million as of December 31, 2008, and none as of March 31, 2008. OREO, net of allowances, was $83.6 million at quarter end, compared with $62.3 million in the linked quarter, and $13.0 million in the year-ago quarter. OREO is included in non-performing assets.

The largest loan segment of non-performing assets continues to be construction, including residential, commercial and multifamily. Non-performing construction loans, representing 79.4% of total non-performing assets, increased 10%, or by $47.4 million, to $532.3 million for the first quarter of 2009 from the fourth quarter of 2008. Of the $47.4 million increase, residential construction made up $43.0 million, commercial construction contributed $7.5 million, while multifamily construction declined $3.1 million.

During the first quarter, Sterling introduced a lending incentive plan to increase sales velocity of newly constructed homes currently financed by Sterling. Under the program, qualified homebuyers may select between a rate as low as 3.875% on a 30-year conventional mortgage or a 3% contribution, up to $20,000, from Sterling that can be used for closing costs or rate buy-downs on FHA, VA or conventional loans. For the quarter, Sterling closed 52 loans with aggregate sales of $18 million, or an average selling price of approximately $353,000 per loan under this program. Sterling anticipates continued success with this program during the second quarter of 2009. “Our homebuyer incentive program is an exciting new approach that our construction credit team is using to resolve problem assets and stem future growth of non-performing assets,” commented Mr. Gilkey.

Non-performing commercial real estate assets, which includes multifamily, increased to $25.3 million from $12.5 million over the linked quarter. During the quarter, some of Sterling’s commercial real estate credits, especially in the northern California market, experienced a slowdown in lease-ups, which affected the borrowers’ cash flows and ability to meet debt service requirements.

In Sterling’s other loan categories such as residential mortgage, commercial banking and consumer, the year-over-year change in non-performing assets generally reflects the slowdown in the economy.

At March 31, 2009, the allowance for credit losses totaled $230.3 million, or 2.59% of total loans, compared with $229.7 million, or 2.55% of total loans at December 31, 2008, and $151.3 million, or 1.63% of total loans at March 31, 2008. During the quarter, Sterling recognized total net charge-offs of $65.2 million, the majority of which is related to non-performing construction loans. The year-to-date ratio of net charge-offs to average loans was 0.70%, compared with 2.37% last quarter, and 0.03% in the comparable period last year. Management believes the allowance is adequate given its current analysis of the loan portfolio and the relative mix and risk of loan products. Sterling will continue to evaluate the level of allowance relative to credit conditions in each of its markets. “The resolution process is beginning to lead to a slowing in the growth of classified assets as well as some recoveries from the disposition of OREO. We anticipate continued progress in upcoming quarters. Still, it will take several more quarters for our credit administration team to fix, repair and manage problem assets,” said Mr. Gilkey.

The accompanying table shows an analysis of Sterling’s non-performing assets by loan category and geographic region for the current, prior and year-ago quarters.

NON-PERFORMING ASSET ANALYSIS
($ in thousands)
3/31/2009 12/31/2008 3/31/2008
Amt % of Gross NPAs Amt % of Gross NPAs Amt % of Gross NPAs
Residential construction (by location)
Portland, OR $ 118,524 18 % $ 117,350 19 % $ 7,567 3 %
Puget Sound 83,711 12 % 73,878 12 % 23,356 10 %
S. California 64,818 10 % 67,824 11 % 28,032 13 %
Boise, ID 37,921 6 % 23,356 4 % 37,338 17 %
Utah 26,823 4 % 29,586 5 % 15,372 7 %
Bend, OR 26,114 4 % 22,136 4 % 20,927 9 %
Vancouver, WA 23,945 4 % 14,486 2 % 19,943 9 %
Other 71,527 11 % 61,722 10 % 15,894 8 %
Total residential construction
453,383 68 % 410,338 67 % 168,429 76 %

Commercial construction (a) 78,888 12 % 74,501 12 % 9,847 4 %

Commercial banking 56,118 8 % 61,520 10 % 31,481 14 %

Residential real estate 50,420 8 % 46,043 8 % 3,900 2 %

Commercial real estate (a) 25,276 4 % 12,510 2 % 6,582 3 %

Consumer 5,866 1 % 5,753 1 %
2,845 1 %
Total gross NPAs (b) $ 669,951 100 % $ 610,665 100 % $ 223,084 100 %

Specific reserves (16,970 ) (19,535 ) (19,084 )
Total net NPAs (b) $ 652,981 $ 591,130 $ 204,000

(a) Includes multifamily.

(b) Includes confirmed loss amounts of $185.0 million for 3/31/09, $163.9 million for 12/31/08, and $0.0 million for 3/31/08.

Balance Sheet and Capital Management

At March 31, 2009, Sterling’s total assets were $12.82 billion, compared with total assets of $12.79 billion at December 31, 2008, and $12.69 billion at March 31, 2008. The total value of Sterling’s cash equivalents and investment-grade securities was $3.08 billion at March 31, 2009, up from $2.96 billion at December 31, 2008, and $2.50 billion at March 31, 2008. As of March 31, 2009, Sterling had additional borrowing capacity of $3.1 billion through the Federal Home Loan Bank of Seattle, reverse repurchase agreements, and primary-credit and term-auction facilities from the Federal Reserve Bank. Sterling’s total deposits rose to a record $8.49 billion, representing an 8% increase over the first quarter of last year and a 7% increase annualized over the linked quarter. “Sterling has experienced both growth of deposits and a favorable shift in the mix of its deposit base. Sterling also is participating in the FDIC’s voluntary expanded insurance program, which provides, without charge to depositors, full guarantee on non-interest bearing transaction accounts held by any depositor, regardless of dollar amount,” stated Mr. Gilkey.

At March 31, 2009, Sterling’s tangible book value per share was $10.99, down from $11.41 at the end of the fourth quarter of 2008, and down from $13.68 at the end of the first quarter of 2008. Both the year-over-year and linked-quarter decreases in tangible book value primarily reflect the net loss resulting from a higher provision for credit losses.

Sterling’s ratio of tangible shareholders’ equity to tangible assets was 6.91% at the end of the first quarter of 2009, compared with 7.07% at the end of the fourth quarter of 2008, and 5.81% at the end of the first quarter of 2008. Risk-based capital ratios continue to exceed the “well-capitalized” requirements. At March 31, 2009, Sterling’s total risk-based capital ratio was 13.0%, and above the regulatory minimum “well-capitalized” requirement of 10.0%.

First-Quarter 2009 Earnings Conference Call

Sterling will host a conference call for investors the morning of April 24, 2009, at 8:00 a.m. PDT to discuss the company’s financial results. A live audio webcast of the conference call can be accessed at the company’s website, www.sterlingfinancialcorporation-spokane.com. To access this audio presentation call, click on the audio webcast icon. Additionally, investors may listen to the live conference call by telephone. To participate in the conference call, domestic callers should dial 517-308-9194 approximately five minutes before the scheduled start time. You will be asked by the operator to identify yourself and provide the password “STERLING” to enter the call. A webcast replay of the conference call will be available on the company’s website approximately one hour following the completion of the call. The webcast replay will be offered through June 15, 2009.

About Sterling Financial Corporation

Sterling Financial Corporation of Spokane, Washington, is the bank holding company for Sterling Savings Bank, a commercial bank, and Golf Savings Bank, a savings bank focused on single-family mortgage originations. Both banks are state chartered and federally insured. Sterling offers banking products and services, mortgage lending, construction financing and investment products to individuals, small businesses, commercial organizations and corporations. As of March 31, 2009, Sterling Financial Corporation had assets of $12.82 billion and operated more than 175 depository branches throughout Washington, Oregon, Idaho, Montana and California. Visit Sterling’s website at www.sterlingfinancialcorporation-spokane.com.

Forward-Looking Statements

This release contains forward-looking statements, which are not historical facts and pertain to Sterling’s future operating results. These forward-looking statements are within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include, but are not limited to, statements about Sterling’s plans, objectives, expectations and intentions and other statements contained in this release that are not historical facts. When used in this release, the words “expects,” “‘anticipates,” ”intends,” ”plans,” ”believes,” ‘’seeks,” ”estimates” and similar expressions are generally intended to identify forward-looking statements. These forward-looking statements are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond Sterling’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from the results discussed in these forward-looking statements because of numerous possible risks and uncertainties. These include but are not limited to: the possibility of continued adverse economic developments that may, among other things, increase default and delinquency risks in Sterling’s loan portfolios; shifts in interest rates that may result in lower interest rate margins; shifts in the demand for Sterling’s loan and other products; lower-than-expected revenue or cost savings in connection with acquisitions; changes in accounting policies; changes in the monetary and fiscal policies of the federal government; and changes in laws, regulations and the competitive environment.

Sterling Financial Corporation
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts, unaudited) Mar 31, Dec 31, Mar 31,
2009 2008 2008
ASSETS:
Cash and due from banks $ 167,937 $ 140,295 $ 181,333
Investments and mortgage-backed securities (”MBS”) available for sale
2,733,541 2,639,290 2,143,950
Investments held to maturity 174,790 175,830 172,874
Loans receivable, net 8,683,919 8,807,094 9,119,942
Loans held for sale (at fair value: $160,261, $112,191 and $67,048) 162,148 112,777 110,481
Other real estate owned, net (”OREO”) 83,557 62,320 13,027
Office properties and equipment, net 93,322 93,195 92,218
Bank owned life insurance (”BOLI”) 158,944 157,236 152,794
Goodwill, net 227,558 227,558 451,249
Other intangible assets, net 25,501 26,725 30,401
Prepaid expenses and other assets, net 308,410 348,396 222,884
Total assets $ 12,819,627 $ 12,790,716 $ 12,691,153

LIABILITIES:
Deposits $ 8,488,034 $ 8,350,407 $ 7,840,784
Advances from Federal Home Loan Bank 1,573,618 1,726,549 1,915,789
Repurchase agreements and fed funds 1,222,162 1,163,023 1,333,505
Other borrowings 248,277 248,276 248,273
Accrued expenses and other liabilities 165,904 161,425 161,416
Total liabilities 11,697,995 11,649,680 11,499,767

SHAREHOLDERS’ EQUITY:
Preferred stock 292,524 291,964 0
Common stock 52,400 52,134 51,863
Additional paid-in capital 909,586 909,386 894,679
Accumulated comprehensive loss:
Unrealized loss on investments and MBS (1) (13,504 ) (17,866 ) (10,591 )
Retained earnings (119,374 ) (94,582 ) 255,435
Total shareholders’ equity 1,121,632 1,141,036 1,191,386
Total liabilities and shareholders’ equity $ 12,819,627 $ 12,790,716 $ 12,691,153
Book value per common share $ 15.82 $ 16.29 $ 22.97
Tangible book value per common share (2) $ 10.99 $ 11.41 $ 13.68
Common shares outstanding at end of period 52,399,631 52,134,030 51,863,067
Shareholders’ equity to total assets 8.75 % 8.92 % 9.39 %
Tangible shareholders’ equity to tangible assets (3) 6.91 % 7.07 % 5.81 %
Tangible common shareholders’ equity to tangible assets (4) 4.58 % 4.74 % 5.81 %

(1) Net of deferred income taxes.

(2) Common equity less goodwill and other intangible assets divided by common shares outstanding.

(3) Shareholders’ equity less goodwill and other intangible assets divided by assets less goodwill and other intangible assets.

(4) Excludes preferred equity from tangible shareholders’ equity to tangible assets ratio.

Sterling Financial Corporation
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in thousands, except per share amounts, unaudited) Three Months Ended

Mar 31, Dec 31, Mar 31,
2009 2008 2008
INTEREST INCOME:
Loans $ 126,238 $ 137,216 $ 162,120
Mortgage-backed securities 29,880 27,559 24,499
Investments and cash 3,328 4,335 2,364
Total interest income 159,446 169,110 188,983

INTEREST EXPENSE:
Deposits 48,314 56,928 62,870
Borrowings 23,469 28,844 34,026
Total interest expense 71,783 85,772 96,896
Net interest income 87,663 83,338 92,087
Provision for credit losses (65,865 ) (228,517 ) (37,143 )
Net interest income after provision 21,798 (145,179 ) 54,944

NONINTEREST INCOME:
Fees and service charges 13,840 14,377 14,151
Mortgage banking operations 13,308 6,792 6,198
Loan servicing fees 218 (855 ) (148 )
OREO (4,478 ) (19,545 ) (106 )
BOLI 1,406 711 1,466
Other 8,539 949 (399 )
Total noninterest income 32,833 2,429 21,162

NONINTEREST EXPENSES:
Employee compensation and benefits 40,188 37,259 40,890
Occupancy and equipment 11,242 11,070 11,532
Amortization of core deposit intangibles 1,225 1,224 1,226
Other 22,855 20,103 18,459
Noninterest expenses before impairment charge 75,510 69,656 72,107
Goodwill impairment 0 223,765 0
Total noninterest expenses 75,510 293,421 72,107
Income (loss) before income taxes (20,879 ) (436,171 ) 3,999
Income tax benefit (provision) 436 81,088 (1,123 )
Net income (loss) (20,443 ) (355,083 ) 2,876
Preferred stock dividend (4,347 ) (1,208 ) 0
Net income (loss) applicable to common shareholders $ (24,790 ) $ (356,291 ) $ 2,876
Earnings per common share - basic $ (0.48 ) $ (6.87 ) $ 0.06
Earnings per common share - diluted $ (0.48 ) $ (6.87 ) $ 0.06
Core earnings (1) $ (24,790 ) $ (132,526 ) $ 2,876
Core earnings per common share - basic (1) $ (0.48 ) $ (2.56 ) $ 0.06
Core earnings per common share - diluted (1) $ (0.48 ) $ (2.56 ) $ 0.06
Average common shares outstanding - basic 51,896,149 51,848,814 51,526,332
Average common shares outstanding - diluted 51,896,149 51,848,814 51,786,038

(1) See Exhibit A.

Sterling Financial Corporation
OTHER SELECTED FINANCIAL DATA
(in thousands, unaudited) Three Months Ended
Mar 31, Dec 31, Mar 31,
2009 2008 2008
LOAN ORIGINATIONS:
Residential real estate $ 710,564 $ 341,043 $ 411,116
Multifamily real estate 36,774 39,026 41,386
Commercial real estate 19,168 74,989 64,517
Construction:
Residential 7,244 33,984 192,361
Multifamily 0 13,050 0
Commercial 11,035 35,350 71,920
Total construction 18,279 82,384 264,281
Consumer - direct 48,547 48,815 81,603
Consumer - indirect 30,753 30,935 71,681
Commercial banking 106,437 102,672 148,685
Total loan origination volume $ 970,522 $ 719,864 $ 1,083,269

PERFORMANCE RATIOS:
Return on assets -0.65 % -11.04 % 0.09 %
Return on assets, core (1) -0.65 % -4.08 % 0.09 %
Return on common equity -11.9 % -128.0 % 1.0 %
Return on common equity, core (1) -11.9 % -47.6 % 1.0 %
Return on common tangible equity (2) -17.0 % -224.7 % 1.6 %
Return on common tangible equity, core (1)(2) -17.0 % -83.6 % 1.6 %
Operating efficiency 62.7 % 342.1 % 63.7 %
Operating efficiency, core (1) 62.7 % 81.2 % 63.7 %
Non interest expense to assets 2.40 % 9.12 % 2.33 %
Non interest expense to assets, core (1) 2.40 % 2.17 % 2.33 %
Average assets $ 12,769,750 $ 12,794,718 $ 12,444,665
Average common equity $ 846,417 $ 1,107,158 $ 1,192,461
Average common tangible equity (2) $ 592,601 $ 630,831 $ 709,139

REGULATORY CAPITAL RATIOS:
Sterling Financial Corporation:
Tier 1 leverage (to average assets) 9.1 % 9.2 % 8.1 %
Tier 1 (to risk-weighted assets) 11.7 % 11.7 % 9.7 %
Total (to risk-weighted assets) 13.0 % 13.0 % 11.0 %
Sterling Savings Bank:
Tier 1 leverage (to average assets) 8.5 % 8.3 % 8.1 %
Tier 1 (to risk-weighted assets) 10.8 % 10.6 % 9.6 %
Total (to risk-weighted assets) 12.1 % 11.8 % 10.9 %

OTHER:
Sales of financial products $ 28,899 $ 36,879 $ 49,725
FTE employees at end of period (whole numbers) 2,518 2,481 2,557

(1) See Exhibit A.

(2) Average common tangible equity is average common equity less average net goodwill and other intangible assets.

Sterling Financial Corporation
OTHER SELECTED FINANCIAL DATA
(in thousands, unaudited) Mar 31, Dec 31, Mar 31,
2009 2008 2008
LOAN PORTFOLIO DETAIL:
Residential real estate $ 894,886 $ 867,384 $ 761,887
Multifamily real estate 508,799 477,615 407,673
Commercial real estate 1,386,631 1,364,885 1,247,472
Construction:
Residential 1,326,239 1,455,860 1,937,713
Multifamily 290,636 324,818 288,629
Commercial 740,014 754,017 786,412
Total construction 2,356,889 2,534,695 3,012,754
Consumer - direct 842,001 859,222 800,048
Consumer - indirect 378,075 389,298 402,520
Commercial banking 2,534,836 2,532,158 2,647,969
Gross loans receivable 8,902,117 9,025,257 9,280,323
Deferred loan fees, net (9,213 ) (9,798 ) (15,372 )
Allowance for losses on loans (208,985 ) (208,365 ) (145,009 )
Net loans receivable $ 8,683,919 $ 8,807,094 $ 9,119,942

Sterling Financial Corporation
OTHER SELECTED FINANCIAL DATA
(in thousands, unaudited) Mar 31, Dec 31, Mar 31,
2009 2008 2008
ALLOWANCE FOR CREDIT LOSSES:
Allowance - loans, beginning of quarter $ 208,365 $ 177,307 $ 111,026
Provision 65,865 228,517 37,143
Net charge-offs (65,245 ) (182,459 ) (3,222 )
Transfers 0 (15,000 ) 62
Allowance - loans, end of quarter 208,985 208,365 145,009
Allowance - unfunded commitments, beginning of quarter 21,334 6,365 6,306
Provision 0 9 21
Charge-offs 0 (40 ) 0
Transfers 0 15,000 (62 )
Allowance - unfunded commitments, end of quarter 21,334 21,334 6,265
Total credit allowance $ 230,319 $ 229,699 $ 151,274
Net charge-offs to average net loans (annualized) 2.84 % 7.80 % 0.14 %
Net charge-offs to average net loans (ytd) 0.70 % 2.37 % 0.03 %
Loan loss allowance to total loans 2.35 % 2.31 % 1.57 %
Total credit allowance to total loans 2.59 % 2.55 % 1.63 %
Loan loss allowance to nonperforming loans 36.7 % 39.3 % 69.0 %
Loan loss allowance to nonperforming loans excluding nonaccrual loans carried at fair value
86.4 % 86.5 % 69.0 %
Total allowance to nonperforming loans 40.4 % 43.3 % 72.0 %

NONPERFORMING ASSETS:
Past 90 days due $ 0 $ 0 $ 0
Nonaccrual loans 485,158 474,172 209,850
Restructured loans 84,281 56,618 207
Total nonperforming loans 569,439 530,790 210,057
OREO 100,512 79,875 13,027
Total nonperforming assets (NPA) 669,951 610,665 223,084
Specific reserve on nonperforming assets (16,970 ) (19,535 ) (19,084 )
Net nonperforming assets $ 652,981 $ 591,130 $ 204,000
Nonperforming loans to loans 6.40 % 5.89 % 2.26 %
NPA to total assets 5.23 % 4.77 % 1.76 %
Loan delinquency ratio (60 days and over) 5.24 % 4.86 % 2.38 %
Classified assets $ 1,070,383 $ 984,875 $ 402,793
Classified assets/total assets 8.35 % 7.70 % 3.17 %

Nonperforming assets by collateral type:
Residential real estate $ 50,420 $ 46,043 $ 3,900
Multifamily real estate 6,020 4,757 2,026
Commercial real estate 19,256 7,753 4,556
Construction:
Residential 453,383 410,338 168,429
Multifamily 800 3,894 0
Commercial 78,088 70,607 9,847
Total Construction 532,271 484,839 178,276
Consumer - direct 5,302 5,053 2,037
Consumer - indirect 564 700 808
Commercial banking 56,118 61,520 31,481
Total nonperforming assets $ 669,951 $ 610,665 $ 223,084

DEPOSITS DETAIL:
Interest-bearing transaction accounts $ 847,064 $ 449,060 $ 462,768
Noninterest-bearing transaction accounts 935,659 897,198 887,129
Savings and money market demand accounts 1,767,136 2,113,425 2,226,090
Time deposits 4,938,175 4,890,724 4,264,797
Total deposits $ 8,488,034 $ 8,350,407 $ 7,840,784
Number of transaction accounts (whole numbers):
Interest-bearing transaction accounts 44,425 45,083 47,140
Noninterest-bearing transaction accounts 156,738 154,038 150,210
Total transaction accounts 201,163 199,121 197,350

Sterling Financial Corporation
AVERAGE BALANCE AND RATE
(in thousands, unaudited) Three Months Ended
March 31, 2009 December 31, 2008 March 31, 2008
Average Balance Amount Average Rate Average Balance Amount Average Rate Average Balance Amount Average Rate
ASSETS:
Loans:
Mortgage $ 5,533,645 $ 71,673 5.25 % $ 5,476,617 $ 79,623 5.78 % $ 5,436,297 $ 95,381 7.06 %
Commercial and consumer 3,787,020 54,696 5.86 % 3,829,468 57,728 6.00 % 3,833,230 66,881 7.02 %
Total loans 9,320,665 126,369 5.50 % 9,306,085 137,351 5.87 % 9,269,527 162,262 7.04 %
MBS 2,385,219 29,880 5.08 % 2,157,600 27,559 5.08 % 1,976,815 24,499 4.98 %
Investments and cash 432,956 4,368 4.09 % 529,845 5,304 3.98 % 306,443 3,193 4.19 %
Total interest-earning assets 12,138,840 160,617 5.37 % 11,993,530 170,214 5.65 % 11,552,785 189,954 6.61 %
Noninterest-earning assets 630,910 801,188 891,880
Total average assets $ 12,769,750 $ 12,794,718 $ 12,444,665

LIABILITIES and EQUITY:
Deposits:
Transaction $ 1,479,222 292 0.08 % $ 1,327,354 272 0.08 % $ 1,304,317 419 0.13 %
Savings 1,953,228 5,555 1.15 % 2,099,436 10,207 1.93 % 2,236,228 13,780 2.48 %
Time deposits 4,922,202 42,467 3.50 % 4,959,533 46,449 3.73 % 4,169,033 48,671 4.70 %
Total deposits 8,354,652 48,314 2.35 % 8,386,323 56,928 2.70 % 7,709,578 62,870 3.28 %
Borrowings 3,082,453 23,469 3.09 % 3,145,202 28,844 3.65 % 3,357,477 34,026 4.08 %
Total interest-bearing liabilities 11,437,105 71,783 2.55 % 11,531,525 85,772 2.96 % 11,067,055 96,896 3.52 %
Noninterest-bearing liabilities 194,070 70,395 185,149
Total average liabilities 11,631,175 11,601,920 11,252,204
Total average equity 1,138,575 1,192,798 1,192,461
Total average liabilities and equity $ 12,769,750 $ 12,794,718 $ 12,444,665
Tax equivalent net interest income and spread $ 88,834 2.82 % $ 84,442 2.69 % $ 93,058 3.09 %
Tax equivalent net interest margin 2.97 % 2.80 % 3.24 %

Sterling Financial Corporation
EXHIBIT A- RECONCILIATION SCHEDULE
(in thousands, unaudited) Three Months Ended
Mar 31, Dec 31, Mar 31,
2009 2008 2008
CORE EARNINGS: (1)
Net income available to common shareholders $ (24,790 ) $ (356,291 ) $ 2,876
Goodwill impairment, net of tax 0 223,765 0
Core earnings $ (24,790 ) $ (132,526 ) $ 2,876

EARNINGS PER COMMON SHARE - BASIC, CORE: (1)
Earnings per common share - basic $ (0.48 ) $ (6.87 ) $ 0.06
Goodwill impairment, net of tax 0.00 4.31 0.00
Core earnings per common share - basic $ (0.48 ) $ (2.56 ) $ 0.06

EARNINGS PER COMMON SHARE - DILUTED, CORE: (1)
Earnings per common share - diluted $ (0.48 ) $ (6.87 ) $ 0.06
Goodwill impairment, net of tax 0.00 4.31 0.00
Core earnings per common share - diluted $ (0.48 ) $ (2.56 ) $ 0.06

RETURN ON ASSETS, CORE: (1)
Return on assets -0.65 % -11.04 % 0.09 %
Goodwill impairment, net of tax 0.00 % 6.96 % 0.00 %
Core return on assets -0.65 % -4.08 % 0.09 %

RETURN ON COMMON EQUITY, CORE: (1)
Return on common equity -11.9 % -128.0 % 1.0 %
Goodwill impairment, net of tax 0.0 % 80.4 % 0.0 %
Core return on common equity -11.9 % -47.6 % 1.0 %

RETURN ON COMMON TANGIBLE EQUITY, CORE: (1)
Return on common tangible equity -17.0 % -224.7 % 1.6 %
Goodwill impairment, net of tax 0.0 % 141.1 % 0.0 %
Core return on common tangible equity -17.0 % -83.6 % 1.6 %

OPERATING EFFICIENCY RATIO, CORE: (1)
Operating efficiency 62.7 % 342.1 % 63.7 %
Goodwill impairment, net of tax 0.0 % (260.9 %) 0.0 %
Core operating efficiency 62.7 % 81.2 % 63.7 %

NON INTEREST EXPENSE TO ASSETS, CORE: (1)
Non interest expense to assets 2.40 % 9.12 % 2.33 %
Goodwill impairment, net of tax 0.00 % (6.95 %) 0.00 %
Core non interest expense to assets 2.40 % 2.17 % 2.33 %

(1) Core earnings excludes the 2008 charge related to the impairment of goodwill. Core earnings is a non-GAAP financial measure. Management believes that this presentation of non-GAAP information regarding core earnings provides useful information to investors regarding the registrant’s financial condition and results of operations as core earnings are widely used for comparison purposes in the financial services industry.

No comments