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