Sterling Financial Corporation of Spokane Washington Announces Earnings

'Sterling Financial Corporation STSA today announced earnings of $15.4 million, or $0.44 per diluted share, for the quarter ended March 31, 2006, compared to earnings of $15.9 million, or $0.45 per diluted share, for the prior year.'

'Sterling Financial Corporation operates as the holding company for Sterling Savings Bank, which provides community banking services to small- and medium-sized businesses, and individuals.'

'Commenting on the first quarter results, Harold Gilkey, Chairman and Chief Executive Officer stated, "It's always nice to start the year with solid performance in line with our previous guidance. We are particularly pleased with the first quarter results. Within the core bank operations, we saw strong continuation of the key trends that drove our record growth in total assets in 2005. The 12 percent increase in total assets, year-over-year, was driven by 30 percent growth in loan originations. Deposits also demonstrated robust growth, increasing 24 percent over the same period last year. The growth in deposits reflects our strength in commercial and retail delivery networks and the expansion of branching over the past few years."'

'Mr. Gilkey stated, "Sterling's loan portfolio is well positioned with a mix of variable rate loans as we wrap up the first quarter of 2006, further positioning us to pursue various growth initiatives, expanding our commercial bank footprint. Additionally, this mix provides further opportunities as we prepare for our acquisition of Lynnwood Financial Group, Inc., which we expect to occur early in the third quarter of 2006."'

'Commenting on non-interest expenses and efficiency, Mr. Gilkey stated, "A number of factors contributed to Sterling's growth in non-interest expenses during the quarter. These included the opening of new branches in Kirkland and Mercer Island, Washington, and the addition of staff for new offices that we are planning to open in 2006. In addition, we added a number of staff members in existing offices and various corporate positions as part of our efforts to accelerate growth in our existing offices and to build the personnel infrastructure necessary to support significant future growth. Given the financial and competitive position we presently enjoy and the talent now available to us, we believe it is in the best long-term interest of our shareholders to continue pursuing initiatives that are designed to contribute to Sterling's growth and expansion."'

Sterling Financial Corporation of Spokane Washington Announces Earnings

Spokane Washington Police Car Crisis

It's not as bad as mufflers falling off or police cars completly dying, but the Spokane Washington Police department is having to deal with a fleet of patrol cars that is starting to show it's age.

'Police Chief Jim Nicks said cars usually last about two years because they are in continual use under tough conditions. The budget for new police cars was among those slashed as the city of Spokane has faced budget deficits in recent years, and no new cars have been purchased since 2003.

Each fully equipped car costs about $30,000, Nicks said.

"Half the fleet now has over 80,000 miles, and a quarter of the patrol cars have over 100,000 miles," Nicks said.

Dan Smith, equipment servicer for the Spokane Police Department, said cars used to be taken out of service when they hit 100,000 miles, because of maintenance costs.

Gavin Cooley, the city's chief financial officer, has outlined options for the Public Safety Committee to consider, including asking voters to approve an operational levy of $1.1 million and a leasing option.



Leasing is the most viable option because of the city's projected budget shortfall of $11 million in 2007, Cooley said.

About 50 cars are used for day-to-day patrol work, 25 are used by traffic patrol, seven are used by K-9 officers and another seven are used by neighborhood resource officers, police spokesman Cpl. Tom Lee said.

The city has eight new patrol cars left from a supply it bought in 2003, Nicks said. The department needs about 25 new cars a year to keep the patrol division in good shape.

Smith said patrol is tough on the Ford Crown Victorias because the cars go over uneven terrain, such as curbs and through alleys, often at a high rate of speed.

A retired Idaho State Police officer published a report in 2002 in which he polled 15 law enforcement agencies about when patrol cars were taken out of rotation. The mean average mileage was 70,800. Keeping the cars running past 100,000 miles "more than nickel and dimes you to death," Smith said. "It costs you more in the long run to keep it going."'

Spokane Washington Police Car Crisis