EX-99.1 3 a05-9755_1ex99d1.htm EX-99.1

Exhibit 99.1

 

For Release May 19, 2005—1:30 p.m. PDT

 

Contact:  Daniel G. Byrne

 

 

(509) 458-3711

 

STERLING FINANCIAL CORPORATION OF SPOKANE, WASHINGTON
SECURES $40 MILLION CREDIT FACILITY WITH BANK OF SCOTLAND

 

Spokane, WA—May 19, 2005—Sterling Financial Corporation (NASDAQ:STSA) today announced that it has entered into a $40 million seven-year secured variable-rate revolving credit facility with Bank of Scotland, replacing a $30 million credit facility Sterling had with U.S. Bank, N.A.  Sterling experienced 27% organic growth in 2004 and expects this trend to continue in 2005.  Although no funds are being drawn down initially, the facility will ensure that Sterling has the working capital and liquidity it needs during this period of sustained growth.  Sterling anticipates that borrowings under the facility will be used for general corporate purposes.  The facility is secured by a portion of the preferred stock of Sterling’s wholly owned subsidiary Sterling Savings Bank.

 

ABOUT STERLING

Sterling Financial Corporation of Spokane, Washington, is a unitary savings and loan holding company, which owns Sterling Savings Bank.  Sterling Savings Bank is a Washington State-chartered, federally insured stock savings association, which opened in April 1983.  Sterling Savings Bank, based in Spokane, Washington, has financial service centers throughout Washington, Oregon, Idaho and Montana.  Through Sterling Savings Bank’s wholly owned subsidiaries, Action Mortgage Company and INTERVEST-Mortgage Investment Company, it operates loan production offices in Washington, Oregon, Idaho, Montana, Arizona and California.  Sterling Savings Bank’s subsidiary Harbor Financial Services provides non-bank investments, including mutual funds, variable annuities and tax-deferred annuities and other investment products through regional representatives throughout Sterling Savings Bank’s branch network.

 

FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements, which are not historical facts and pertain to Sterling’s future operating results.  These forward-looking statements are within the meaning of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements may include, but are not limited to, statements about Sterling’s plans, objectives, expectations and intentions and other statements contained in this report that are not historical facts.  When used in this report, the words “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions are generally intended to identify forward-looking statements.  These forward-looking statements are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond Sterling’s control.  In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change.  Actual results may differ materially from the results discussed in these forward-looking statements because of numerous possible risks and uncertainties.  These include but are not limited to: the possibility of adverse economic developments which may, among other things, increase default and delinquency risks in Sterling’s loan portfolios; shifts in interest rates which may result in lower interest rate

 



 

margins; shifts in the demand for Sterling’s loan and other products; lower-than-expected revenue or cost savings in connection with acquisitions; changes in accounting policies; changes in the monetary and fiscal policies of the federal government; and changes in laws, regulations and the competitive environment.