Sterling Financial Earnings Rise

Increased net interest income lifted Sterling Financial Corp. first-quarter earnings and key performance measures, the Spokane-based thrift holding company reported Thursday.

Earnings for the three-month period climbed to $3.3 million, or 41 cents a share, from $2.8 million, of 35 cents a share, for the same period a year ago.

Return on average equity improved to 11.2 percent from 9.8 percent a year ago, and return on average assets was 0.52 percent, up from 0.49 percent.

Net interest income grew 9.3 percent during the quarter to $19.4 million. A decrease in interest margin was offset by greater loan and deposit volume.

Deposits increased 7 percent to $1.67 billion, total assets also increased 7 percent to $2.61 billion.

Loan volume declined, the result of a shift in focus from commercial real estate lending to business banking, said Chairman Harold Gilkey.

He noted the company launched an Internet banking site early in the second quarter, and also added international banking capabilities.

“As the economy becomes increasingly globalized, a growing number of our customers need international banking services and expertise, as well as online services,” he said in a statement.

In other reports Thursday:

United Security Bancorporation reported first-quarter earnings that lagged year-ago performance, although President Richard Emery said several factors make side-by-side comparisons difficult.

Net income for the quarter slipped to $1.8 million, or 24 cents a share, compared with $2.1 million, or 27 cents a share, for the same period a year ago.

Per-share figures have been adjusted for a 10 percent stock dividend distributed Feb. 27 of this year, and the repurchase of 385,000 shares during the year 2000 quarter.

Return on average equity declined to 11.5 percent in the 2000 quarter vs. 15.3 percent in 1999. Return on average assets fell to 1.36 percent vs. 1.69 percent a year ago.

Assets increased 8 percent to $533 million, and loans were up 13 percent to $423.7 million.

Emery said the earnings slowdown is attributed to branch additions and moves made during the quarter, greater loan loss provisions and narrower interest margins.

Two large customers, one being Schade Towers in Spokane, accounted for a near doubling of nonperforming assets. Schade filed for bankruptcy protection earlier this year.

Bancorporation subsidiaries operate 36 branches in Washington and Idaho.

Lion Inc. announced its financial results for the 1999 year.

The provider of online business services to the mortgage industry had revenues of $4,271,277, more than double those for 1998.

Revenues for the fourth quarter, at $1.4 million, were almost triple those for the 1998 period.

Almost half the revenues were produced by a Lion Web site that serves more than 18,000 mortgage brokers. Web site hosting generated 35 percent of revenues, 16 percent came from an automated underwriting service.

The company lost $3,997,151 during the year, or 15 cents a share. Much of the loss was attributed to a one-time charge of $2,190,989 for extending terms on stock option awards.

The quarterly loss, $2,943,713, also included the option charge.