Assessment Costs Sterling $5.6 Million

Recapitalizing the fund that insures thrift deposits cost Sterling Savings Association $5.6 million, according to quarterly financial results released Tuesday.

The assessment mandated by recently passed federal legislation, plus $2.5 million in other expenses, created a net loss of $3.3 million for the three-month period that ended Sept. 30.

Per-share, the loss was 68 cents, compared with net income of $1.3 million, or 16 cents per share, for the same period last year.

Chairman Harold Gilkey noted the insurance assessment was a one-time event that will lower depositinsurance premiums by about $1.4 million annually in the future.

Net interest income for the quarter climbed to $9.5 million from $8.3 million a year ago. Non-performing assets fell to $8.8 million from $10.1 million the prior year, but assets also slipped slightly, to $1.53 billion from $1.55 billion.

, DataTimes