Securities and Exchange Commission
Washington, DC 20549
Form 8 - K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) January 25, 2000
Sterling Financial Corporation
(Exact name of registrant as specified in its charter)
Pennsylvania 0-16276 23-2449551
(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
101 North Pointe Boulevard, Lancaster, Pennsylvania 17601-4133
(Address of principal executive offices) (Zip Code)
Registrant's Telephone number, including area code (717) 581-6030
N/A
(Former name or former address, if changed since last report)
ITEM 5 - Other Events
The following document is filed as an exhibit to this Form 8-K:
I. Press Release of Sterling Financial Corporation dated January 25, 2000.
ITEM 7 - Financial Statements and Exhibits.
(a) Not Applicable.
(b) Not Applicable.
(c) Exhibits:
99 Press Release of Registrant, dated January 25, 2000,
re: Registrant announces 1999 record earnings.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
Sterling Financial Corporation
By:/s/ John E. Stefan
John E. Stefan, Chairman of the Board,
President and Chief Executive Officer
DATE January 25, 2000
EXHIBIT INDEX
Page Number
in Manually
Exhibit Signed Original
99 Press Release of Registrant, dated ___
January 25, 2000
re: Registrant announces 1999 record earnings.
EXHIBIT 99
FOR IMMEDIATE RELEASE:
STERLING FINANCIAL CORPORATION
ANNOUNCES 1999 RECORD EARNINGS
LANCASTER, PA (January 25, 2000) - Sterling Financial Corporation
(NASDAQ:SLFI). John E. Stefan, Chairman, President and Chief Executive
Officer of Sterling Financial Corporation announced today financial
results for the quarter and year ended December 31, 1999.
Net income was reported at $3,167,114, or $.35 per basic and diluted
share for the fourth quarter of 1999, compared to $2,868,584, or $.32 per basic
and diluted share for the fourth quarter of 1998. This represents a 9.3%
increase. Total earnings for 1999 were a record $13,239,385, a 7.2% increase
over $12,342,115 for the same period in 1998. Basic and
diluted earnings per share for 1999 were $1.48 compared to $1.38 for 1998.
Stefan also announced that, in conducting its regular review of its
accounting policies to ensure conformity with generally accepted accounting
principles, including recent pronouncements by the AICPA and SEC
with respect to audit differences and materiality,
management has elected to adjust items previously considered as not having
a material effect on the financial statements. Thus, the financial
results have been restated to reflect the impact of adjustments that
the Corporation has made due to interpretations of accounting principles
relating to loan and lease origination costs, investments in affordable
housing projects, deferred compensation arrangements and income taxes.
The impact of the restatement was a reduction in net income of $48,786
for the year ended December 31, 1998, which resulted in a decrease
in basic earnings per share of $.01 for 1998 from the amount previously
reported. Additionally, the impact of the restatement was a $721,890
reduction at January 1, 1999 of stockholders' equity, or .81%.
Total assets increased to $1,059,374,475 on December 31, 1999,
from $1,001,152,315 on December 31, 1998. This represents a 5.8% gain
over 1998. Total deposits increased to $892,432,000 from $855,055,081,
or 4.3% during the same period.
The provision for loan losses was $37,500 for the fourth
quarter of 1999, compared to $15,000 for the same period in 1998. For the
year ended 1999 and 1998, the provision for loan losses was $420,000
and $956,000. The allowance for loan losses on December 31,
1999, was $8,174,032, compared to $8,069,844, on December 31, 1998.
The 1998 net income and total earnings figures disclosed above are
restated to reflect the adjustments we described. All current and prior
period amounts reported properly reflect the merger of Northeast
Bancorp, Inc. in June 1999 under the pooling of interests accounting
method. In addition, prior year per share data reflects a 5 for 4
stock split, effected in the form of a 25% stock dividend, declared in
August 1999.
Sterling Financial Corporation now operates 34 banking locations
through its subsidiary banks, Bank of Lancaster County, N.A. and The
First National Bank of North East.
Contacts: John E. Stefan, Chairman and President (717) 581-6030
Douglas P. Barton, Vice President and Controller (717) 581-6005
