Higher Interest, Fees Raise Sterling Profits

Sterling Financial Corp. Wednesday reported improved financial results for the quarter ended Dec. 31, based on higher net interest, fees and service charges.

The Spokane-based thrift recorded net income of $2.2 million, or 29 cents per share, compared with $1.9 million, or 25 cents per share, for the same period a year ago.

For the six-month period ended Dec. 31, Sterling registered a loss of $1.1 million, or 37 cents per share, compared with a net gain of $3.2 million, or 42 cents per share, in the 1995 period.

The thrift took a $5.8 million charge during the 1996 period to cover a one-time assessment by the insurance fund that guarantees deposits.

But the one-time contribution by Sterling and other thrifts will substantially reduce the premiums they pay into the fund in the future.

Sterling, the parent of Sterling Savings Association, converted to a fiscal year ending Dec. 31 from one ending June 30.

Sterling assets increased to $1.54 billion at year end, up from $1.48 billion a year ago. Because of the insurance fund charge, returns on assets and equity were negative for the six-month period.

Loan production decreased, mostly due to lower levels of residential activity.

, DataTimes