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Sterling Financial reports another quarter of losses

Tue., July 27, 2010, 2:46 p.m.

Sterling Financial Corp. today reported a second-quarter loss of $58.2 million, including a $70.8 million allowance for credit losses.

A year ago, the Spokane bank reported a net loss of $33.9 million after a $79.7 million allowance for credit losses.

Per share, the 2010 quarter loss was $1.12, compared with 65 cents for the 2009 quarter.

But Chief Executive Officer Greg Seibly said the second-quarter numbers were an improvement compared with the first quarter, and there were other positive indicators for Sterling, which has been trying since last fall to raise additional capital.

Non-performing loans declined eight percent compared with the first quarter, to $884.1 million, and loan origination increased 25 percent.

Retail deposits climbed but the total fell, to $7.2 billion, as Sterling continued to reduce its dependence on brokered deposits. The number of accounts increased.

Total assets, at $9.7 billion, have fallen 21 percent since June 30, 2009.

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