SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 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) June 15, 1998
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STERLING FINANCIAL CORPORATION
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(Exact name of registrant as specified in its charter)
Washington 0-20800 91-1572822
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(State or Other (Commission File Number) (IRS Employer
Jurisdiction of Identification
Incorporation) Number)
111 North Wall Street, Spokane, Washington 99201
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(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code (509) 458-3711
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N/A
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(Former Name or Former Address, if Changed Since Last Report)
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INFORMATION TO BE INCLUDED IN THE REPORT
Item 5. Effective June 15, 1998, Sterling Savings Bank completed its
purchase of 33 branches from KeyBank National Association.
See attached information release.
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FOR release June 16, 1998
Contact: Heidi B. Stanley
(509) 358-6160
STERLING COMPLETES
ACQUISITION OF 33 KEYBANK BRANCHES
Spokane, Washington June 16, 1998--Sterling Financial Corporation
(NASDAQ:STSA) today announced that it had completed its acquisition of
33 KeyBank branches. The KeyBank branches opened their doors
yesterday as Sterling Savings Bank.
The new branches are located in Washington, Idaho and Oregon, bringing
Sterling's total number of branches to 73. With the closing, Sterling
acquired deposits totalling approximately $525 million, bringing
Sterling's total deposits to approximately $1.5 billion. Loans
acquired total approximate $125 million, bringing Sterling's total
loans to approximately $1.27 billion.
Harold B. Gilkey, Chairman and CEO, stated, "The acquisition allows us
to fill in a number of markets while allowing expansion into Idaho.
In addition, we will pay off approximately $425 million in higher cost
borrowings with the cash that we receive, which will further reduce
our interest costs." He added, "From a strategic standpoint, this
branch acquisition transforms us to a community bank as our loan to
deposit ratio drops from well over 100% to approximately 83% on a
proforma basis."
Effective with the KeyBank acquisition, Sterling Savings Association,
a wholly owned subsidiary of Sterling Financial Corporation, changed
its legal name to Sterling Savings Bank.
Sterling Financial Corporation of Spokane, Washington, is a 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
Association, based in Spokane, Washington, has branches throughout
Washington, Idaho and Oregon. Through Sterling's wholly owned
subsidiaries Action Mortgage Company and INTERVEST Mortgage Investment
Company, it operates loan production offices in Washington, Oregon,
and Idaho. Sterling's subsidiary Harbor Financial Services provides
non-bank investments, including mutual funds, variable annuities, and
tax-deferred annuities, through regional representatives throughout
Sterling Savings' branch network.
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STERLING FINANCIAL CORPORATION
FORM 8 - K
S I G N A T U R E
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 thereunto duly authorized.
STERLING FINANCIAL CORPORATION
(Registrant)
June 18, 1998 /s/ Daniel G. Byrne
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Date Daniel G. Byrne
Sr. Vice President, Finance and
Assistant Secretary
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