Sterling Financial

Sterling Financial Corp. Chief Executive Officer Greg Seibly said it will probably be the first quarter of 2010 before subsidiary Sterling Savings Bank raises $300 million in new capital. Federal and state regulators had given Sterling until Dec. 15 to secure investment sufficient to bring its capital level up to 10 percent, or $1 in equity for every $10 in assets like loans.

A day after Sterling Financial Corp.’s longtime leaders were ousted, the company’s new executives say they’re confident subsidiary Sterling Savings Bank can raise $300 million and meet other demands contained in a government cease-and-desist order disclosed Thursday. The order from the Federal Deposit Insurance Corp. and Washington Department of Financial Institutions capped a series of recent damaging Sterling reports of mounting loan losses, dividend suspensions and steps toward issuing new stock that would further depress shares once worth more than $34.

More Americans are trying to save money as they contend with the recession, and Spokane residents are no different. But officials at local financial institutions, social service and counseling agencies say many households that stretched to set aside a few dollars in the best of times now strain just to keep up with their bills.