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) November 16, 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. Other Events
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Effective November 16, 1998 Sterling Savings Bank completed it merger
with First Federal Savings and Loan Association of Montana.
See attached information release.
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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)
November 25, 1998 /s/ Daniel G. Byrne
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Date Daniel G. Byrne
Sr. Vice President, Finance and
Assistant Secretary
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For Release November 16, 1998 Contact: Heidi B. Stanley
(509) 358-6160
STERLING COMPLETES
MERGER WITH FIRST FEDERAL
Spokane, Washington November 16, 1998--Sterling Financial Corporation
(NASDAQ: STSA) today announced that it had completed its merger with
Big Sky Bancorp, Inc. ("Big Sky"), and its subsidiary, First Federal
Savings and Loan Association of Montana ("First Federal"). Big Sky
was merged into Sterling Financial Corporation, and First Federal was
merged into Sterling Savings Bank.
These branches, with one located in Hamilton and two in Missoula,
bring Sterling's total number of branches to 77. With the
transaction, Sterling acquired deposits totaling approximately $50
million, bringing Sterling's total deposits to approximately $1.6
billion. Loans acquired total approximately $35 million, bringing
Sterling's total loans to approximately $1.3 billion.
Harold B. Gilkey, Chairman and CEO, stated, "This merger allows us to
expand our operations into Montana." He added, "Further, this merger
strengthens our position as a regional bank in the Pacific Northwest.
We are excited about the opportunity to serve the people of western
Montana with our array of financial products and services, including
small business services. In addition, Sterling will continue to serve
this area of Montana through our residential lending subsidiary,
Action Mortgage Co., and our commercial banking subsidiary, INTERVEST-
Mortgage Investment Co."
Under the agreement, each Big Sky shareholder received 1.384 Sterling
Common Shares for each of his or her Big Sky Common Share held, and
cash in lieu of the issuance of fractional shares. Sterling will
exchange up to 497,500 shares of common stock for the outstanding Big
Sky stock and stock options. The merger was structured as a tax-free
reorganization and was accounted for as a pooling of interests. Using
Sterling's closing stock price on Friday, November 13, 1998, of
$17.25, the transaction had a value of $23.87 per share to Big Sky
Shareholders and a transaction value of $8.6 million.
Harold B. Gilkey has very strong ties to Montana. He was born and
raised in Livingston, Montana; attended the University of Montana in
Missoula; and is the immediate past chairman of the University of
Montana Foundation. He said, "First Federal is a well-established and
respected institution. Sterling will build upon their rich legacy of
customer service and community support."
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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, Oregon and western Montana. 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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