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 2, 1999
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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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On June 2, 1999, Sterling Financial Corporation issued a press release
announcing the completion of the sale of $30.0 million of Floating
Rate Notes due 2006. A copy of the press release dated June 2, 1999
is attached hereto as Exhibit 99.1 and incorporated herein by
reference.
Item 7. Financial Statement, Proforma Financial Information and
Exhibits
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(c) Exhibits
Exhibit
Number Exhibit
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99.1 Press Release, dated June 2, 1999 for Sterling Financial
Corporation.
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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 2, 1999 /s/ Daniel G. Byrne
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Date Daniel G. Byrne
Sr. Vice President, Finance and
Assistant Secretary
EXHIBIT 99.1
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For Release June 2, 1999 2 p.m. PDT Contact: Daniel G. Byrne
(509) 458-3711
STERLING FINANCIAL CORPORATION
COMPLETES DEBT OFFERING
Spokane, Washington June 2, 1999--Sterling Financial Corporation
(NASDAQ:STSA) today announced the completion of the sale of $30.0
million of Floating Rate Notes Due 2006 (the "Notes") through a
private offering within the United States to qualified institutional
buyers and institutional accredited investors.
The interest rate on the Notes, initially 7.5425%, will be reset
quarterly at a rate equal to the three-month LIBOR plus 250 basis
points. Interest on the Notes will be payable quarterly in arrears.
The Notes have a seven-year term and will be non-callable for three
years. The offering closed on May 28, 1999.
Net proceeds from the offering currently are estimated to be
approximately $28.9 million after deducting expenses payable by
Sterling in connection with the offering. Sterling intends to use the
net proceeds from the sale of the Notes (i) to prepay Sterling's 8.75%
Subordinated Notes Due 2000 at a price equal to the principal amount
thereof, plus accrued and unpaid interest thereon to the date of
prepayment, which is estimated to aggregate $17.5 million, (ii) to
contribute $5.0 million to Sterling's principal subsidiary, Sterling
Savings Bank, to further improve Sterling Savings' regulatory capital
ratios, (iii) to repay an existing line of credit of approximately
$5.0 million, and (iv) for general corporate purposes. The proceeds
of the Offering contributed to Sterling Savings Bank will be used to
support the growth of its business.
The Notes are not registered under the Securities Act of 1933 or any
state securities laws and, unless so registered, may not be offered or
sold except pursuant to an exemption from, or in a transaction not
subject to, the registration requirements of the Securities Act and
applicable state securities laws. This press release does not
constitute an offer to sell or the solicitation of an offer to buy any
security and shall not constitute an offer, solicitation or sale in
any jurisdiction in which such offering would be unlawful.
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
Bank, based in Spokane, Washington, has branches throughout
Washington, Idaho, Oregon and western Montana. Through Sterling's
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wholly owned subsidiaries Action Mortgage Company and INTERVEST-
Mortgage Investment Company, it operates loan production offices in
Washington, Oregon, Idaho and western Montana. 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.
Any trend or forward-looking information included in this press
release is subject to 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;
changes in accounting policies; changes in the monetary and fiscal
policies of the federal government; changes in the regulatory and
competitive environment, and other risks. Sterling's future results
may differ materially from historical results as well as from any
trend or forward-looking information included in this release.
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