Sterling Financial Earnings Plunge 44% In First Quarter

Sterling Financial Corp. Thursday reported that first-quarter earnings dropped 44 percent from the same period last year.

Net income for the three-month period ended September 30 was $1.3 million, compared with $2.4 million a year ago.

Per share comparisons are 16 cents vs. 34 cents.

Chairman Harold Gilkey said the results reflect strategic changes by the thrift, and market conditions.

“We anticipated the challenges experienced during the first quarter of fiscal 1996 because of our decisions to reduce our mortgage banking operations and to increase our consumer and business lending,” he said. “While net interest income decreased during the quarter, recently our interest margins have started to increase.”

Net interest income dropped to $8.3 million, compared with $8.8 million for the same period last year. But assets increased to $1.55 billion, deposits to $891.5 million.

Loan production fell to $173 million from $193.2 million.

Sterling is the holding company for Sterling Savings Association, which operates 41 branches in Washington and Oregon.

In other earnings:

Southwest Airlines Co. earned $67.7 million, or 45 cents a share, for the three months ended Sept. 30. Profits were $58.6 million, or 40 cents a share, in the third quarter of 1994.

Revenue rose 12 percent, to nearly $765 million from $685.3 million.

, DataTimes