Sterling Financial

Full resume: Before Sterling, Ezra Eckhardt worked in tech, manufacturing

The price of Sterling Financial Corp. stock fell more than 50 percent Monday, the first day of trading after the registration Friday of 4.2 billion new shares. The shares were issued to new shareholders, who in August put more than $700 million in new capital into the Spokane financial institution. The U.S. Treasury also accepted common stock in return for preferred shares obtained in December 2009, when Sterling received $303 million in federal money intended to strengthen its balance sheet.

State and federal regulators have lifted the cease-and-desist order placed on Sterling Savings Bank nearly one year ago. Sterling Financial Corp., the bank holding company, said Monday the move reflects Sterling Savings’ strengthened balance sheet and capital position; its progress to reduce the proportion of loans and other assets classified as nonperforming; and measures to realign its credit practices.

State and federal regulators have lifted the cease-and-desist order placed on Sterling Savings Bank nearly one year ago.

The successful recapitalization of Sterling Financial Corp. may well be the best economic news of 2010 for Spokane. Thanks in part to that “bailout” we all say we hate.

A new Sterling Financial Corp. management team did not know what would be expected of them in October 2009. Federal and state regulators had forced the board of directors to remove their predecessors. Atop a long list of other stipulations contained in a cease-and-desist order was a requirement Sterling raise $300 million.

AmericanWest Bancorporation Chief Executive Officer Pat Rusnak took heart last week from Sterling Financial Corp.’s successful effort to raise additional capital. Like Sterling, AmericanWest was ordered by regulators to reinforce its capital base, although the May 2009 notice did not fix the amount of money to be raised. Rusnak said the bank, headquartered at 41 W. Riverside Ave., needs about $125 million.