Posts tagged: Sterling Financial
Today's post: The No. 2 business story of the year for the Spokane North Idaho area.
Last week we posted No. 3, the widespread credit card breach connected to area grocery stores.
No. 2 is the acquisition of Spokane's largest home-based bank, Sterling Financial by Oregon-based Umpqua Bank. Our earlier story on the acquisition ran on Sept. 11, 2013.
Tomorrow, Dec. 31, we list the No. 1 business story for 2013. Because of our pick-the-top-story contest, the final story will determine who wins the SR OfficeHours $10 coffee card.
The day after Sterling Financial announced it's being taken over by Portland-based Umpqua Bank, here's one graphic that raises questions about who knew about the merger early-on.
The story of the announcement ran in the Sept. 12 Spokesman Review and online.
The graphic here shows a 30-day chart of the public share prices of Sterling vs. Umpqua vs. a regional community bank, PacWest Bank. All trade on the Nasdaq. Sterling is green, Umpqua is blue.
Sterling's stock shows the most impressive jump, and that has led some lurkers and outsiders to wonder who got advance word of the deal. The Great Stock Price Leap occurs from Aug. 21 through Aug. 24.
IN case you missed on Thursday, Spokane's Sterling Financial Corp. had a good 4Q earnings report.
The company, which operates Sterling Savings Bank, announced it booked net income of $20.9 million, or 33 cents per diluted common share, compared to $30.6 million, or 49 cents per diluted common share, for the quarter ended September 30, 2012, and $14.8 million or 24 cents per diluted common share, for the quarter ended Dec. 31, 2011.
For the year Sterling recorded net income of $385.7 million, or $6.14 per diluted common share, compared to $39.1 million, or 63 cents per diluted common share, for the year ended Dec. 31, 2011.
The 2012 annual net income included an income tax benefit of $292 million associated with the release of a deferred tax asset valuation allowance.
Here are some other bullet points, borrowed from TheStreet.com:
To read the complete story, go to Spokesman.com later Monday evening or read it in Tuesday's printed editions.
Spokane’s Sterling Savings Bank has purchased the Puget Sound operations of publicly traded Boston Private Financial Holdings, Inc.
Boston Private, a national financial services group that owns wealth management and private bank affiliates in Boston, New York, Los Angeles and San Francisco, has operated three branches in the Seattle area.
It acquired the branches in Seattle, Bellevue and Redmond in 2007 from financially distressed Charter Bank.
Sterling Savings CFO Patrick Rusnak said the acquisition made sense for both sides; Boston Private felt the branches were too distant from its East Coast offices; and Sterling considers Seattle one of its prime areas for continuing growth.
Sterling currently has 15 branches in the greater Seattle area, including in Bellevue and Redmond, Rusnak said.
One of Sterling Bank’s Seattle branches is in the same building as Boston Private’s, Rusnak said.
Sterling will pay about $96 million, Rusnak said, which covers an $11 million “premium” and the difference between the branches’ total loans and deposits.
The sale is expected to close in the first half of 2013 pending regulatory review.
Sterling Financial Corporation of Spokane announced this morning that Sterling Savings Bank plans to buy First Independent Bank of Vancouver, Wash., including all deposits and banking operations, 14 branches in southeastern Washington and two offices in Portland. The purchase is expected to be completed early next year, subject to approval by regulators.
“We are pleased to welcome First Independent employees and clients into the Sterling family,” Greg Seibly, president and CEO of Sterling Financial, said in a prepared statement. “First Independent is an important strategic addition for Sterling … (and) provides an attractive opportunity to acquire a healthy community bank franchise within our identified strategic growth footprint along the I-5 corridor.”
Sterling will initially pay $8 million in addition to the net value of the acquired assets and assumed liabilities at the time of closing. Sterling has agreed to pay First Independent an additional premium of up to $17 million over an 18-month period following closing based on the credit performance of the acquired loans and the amount of any reductions in core deposits and wealth management income.
First Independent will retain about $49 million of existing loans and $34 million of other assets identified by Sterling, which Sterling did not seek to acquire. Sterling will assume all of First Independent’s deposits and certain customary obligations relating to its banking business, but no other material liabilities in the transaction.
Marty Dickinson is leaving the Downtown Spokane Partnership to become senior vice president and corporate marketing communications executive at Sterling Savings Bank.
Her last day at the DSP, where she has been president for six years, will be July 1.
Marla Nunbeg was named interim president by the DSP executive board of directors.
Dickinson said the opportunity to work for Sterling, a Fortune 500 company, was one she could not pass up, but added that the decision was a difficult one.
“There are a few lucky individuals that have the chance to have a job they love so much that it is really not a job at all,” she said.
Dickinson said she takes particular satisfaction in development downtown, and in the University District.
DSP Board Chairman Mark Aden noted Dickinson's efforts to find new housing for low-income residents displaced by redevelopment at the Madison and Otis apartments.
Sterling Financial Corp. today reported smaller fourth quarter and annual losses.
The net loss for the quarter was $38.1 million, down from $48 million for the quarter ended Sept. 30 and $328.7 million for the 2009 fourth quarter.
For the year, Sterling's net loss was $224.3 million, compared with $838.1 million for 2009.
After adjustments related to its $730 million recapitalization in August, the quarterly loss atttributable to common shareholdes was $642.7 million, or $12.79 per common share. For the 2009 fourth quarter, Sterling reported a loss of $333.1 million, or $423.17 per common share.
The annual net loss was $756.1 million, or $53.05 per share, compared with $855.5 milion, or $1,087.41 per common share in 2009.
Total assets were $9.5 billion, compared with $10 billion as of Sept. 30 and $10.9 billion as of Dec. 31, 2009.