UNITED STATES SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C. 20549
(Mark One)
ý QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED March 31, 2004
OR
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM TO .
Commission File Number 0-20800
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STERLING FINANCIAL CORPORATION |
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(Exact name of registrant as specified in its charter) |
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Washington |
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91-1572822 |
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(State or other jurisdiction of |
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(I.R.S. Employer |
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111 North Wall Street, Spokane, Washington 99201 |
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(Address of principal executive offices) (Zip Code) |
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(509) 458-3711 |
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(Registrant’s telephone number, including area code) |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes ý No o
Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date:
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Class |
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Outstanding as of April 30, 2004 |
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Common Stock ($1.00 par value) |
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20,539,676 |
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STERLING FINANCIAL CORPORATION
FORM 10-Q
For the Quarter Ended March 31, 2004
TABLE OF CONTENTS
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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PART I - Financial Information
STERLING FINANCIAL CORPORATION
(Unaudited)
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March 31, |
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December
31, |
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(Dollars in thousands) |
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ASSETS: |
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Cash and cash equivalents: |
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Interest bearing |
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$ |
5,599 |
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$ |
1 |
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Non-interest bearing and vault |
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87,798 |
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65,478 |
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Restricted |
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2,136 |
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1,504 |
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Investments and asset-backed securities (“ABS”): |
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Available for sale |
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2,015,538 |
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1,070,955 |
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Held to maturity |
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2,229 |
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2,229 |
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Loans receivable, net |
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3,575,610 |
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2,906,426 |
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Loans held for sale |
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34,849 |
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14,616 |
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Accrued interest receivable |
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22,433 |
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16,531 |
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Real estate owned, net |
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5,032 |
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4,226 |
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Office properties and equipment, net |
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75,623 |
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54,620 |
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Bank-owned life insurance (“BOLI”) |
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90,619 |
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73,141 |
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Goodwill |
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128,302 |
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45,075 |
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Other intangible assets |
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21,514 |
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2,881 |
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Mortgage servicing rights, net |
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3,624 |
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3,500 |
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Prepaid expenses and other assets, net |
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24,249 |
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18,138 |
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Total assets |
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$ |
6,095,155 |
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$ |
4,279,321 |
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LIABILITIES: |
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Deposits |
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$ |
3,492,162 |
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$ |
2,455,076 |
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Advances from Federal Home Loan Bank of Seattle (“FHLB Seattle”) |
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1,374,128 |
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1,026,031 |
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Securities sold subject to repurchase agreements and funds purchased |
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564,614 |
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363,137 |
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Other borrowings |
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166,585 |
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137,998 |
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Cashiers checks issued and payable |
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16,645 |
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17,624 |
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Borrowers’ reserves for taxes and insurance |
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3,459 |
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1,347 |
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Accrued interest payable |
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10,135 |
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8,223 |
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Accrued expenses and other liabilities |
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37,132 |
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19,537 |
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Total liabilities |
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5,664,860 |
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4,028,973 |
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Commitments and Contingencies |
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SHAREHOLDERS’ EQUITY: |
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Preferred stock, $1 par value; 10,000,000 shares authorized; no shares issued and outstanding |
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0 |
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0 |
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Common stock, $1 par value; 40,000,000 shares authorized; 20,508,120 and 14,863,917 shares issued and outstanding |
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20,508 |
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14,864 |
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Additional paid-in capital |
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323,665 |
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181,382 |
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Accumulated other comprehensive income (loss): |
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Unrealized gains (losses) on investments and ABS available-for-sale, net of deferred income taxes of $(2,608) and $8,181 |
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4,843 |
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(15,193 |
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Retained earnings |
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81,279 |
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69,295 |
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Total shareholders’ equity |
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430,295 |
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250,348 |
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Total liabilities and shareholders’ equity |
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$ |
6,095,155 |
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$ |
4,279,321 |
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The accompanying notes are an integral part of the consolidated financial statements.
1
STERLING FINANCIAL CORPORATION
Consolidated Statements of Income
(Unaudited)
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Three
Months Ended |
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2004 |
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2003 |
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(Dollars in thousands, except per share data) |
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Interest income: |
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Loans |
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$ |
52,334 |
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$ |
40,339 |
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ABS |
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19,288 |
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9,972 |
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Investments and cash equivalents |
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1,769 |
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1,174 |
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Total interest income |
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73,391 |
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51,485 |
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Interest expense: |
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Deposits |
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12,151 |
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9,020 |
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Short-term borrowings |
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3,834 |
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2,771 |
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Long-term borrowings |
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11,717 |
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11,123 |
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