Sterling Financial Corp. in Lancaster, Pa., has quit three of its insurance businesses, and First Capital Inc. in Corydon, Ind., is selling its property and casualty business.
First Capital said it does not expect its earnings to be affected, but Sterling said it does.
Tito L. Lima, Sterling's chief financial officer, said in an interview Thursday that the sale would require a charge to fourth-quarter earnings of $500,000 to $575,000 on a pretax basis, or about a penny a share.
The $3.1 billion-asset Sterling said Wednesday that it had sold Corporate Healthcare Strategies LLC, an employee benefits insurance broker, and Professional Services Group, a human resources consulting business, to David K. Stoudt, Corporate Healthcare's president.
It also announced the sale of the property and casualty insurance accounts of Lancaster Insurance Group LLC to Murray Insurance Associates Inc.
In Indiana, First Harrison Bank, a subsidiary of First Capital, said Thursday that it had agreed to sell First Harrison Insurance and Investments to Bennett & Bennett Insurance Inc. The bank said that it will retain the unit's wealth management services and continue to provide them but that it will stop using the unit's name.
William W. Harrod, the chief operating officer, said in a press release that the business being sold was "a very small part" of the bank and that its sale should not affect earnings.
Bradley Scovill, Sterling's chief revenue officer, said in a press release late Wednesday that the bank will continue to provide real estate settlement and title insurance services. It also plans to continue offering annuities, life insurance, and credit-related insurance products.
Mr. Scovill said the businesses it sold never became meaningful contributors to the parent's bottom line.
