Sterling Financial Corp. in Spokane said Tuesday that it has filed a shelf registration statement with the Securities and Exchange Commission to raise an additional $100 million of capital.
Daniel G. Byrne, Sterling's chief financial officer, said in an interview that his company may issue additional common or preferred stock in separate offerings to pay for future acquisitions and other capital expenditures, repay debt, or repurchase capital stock.
James Bradshaw, an analyst at D.A. Davidson & Co. in Portland, Ore., said the filing was mainly a "precautionary measure" in case regulators require the $8 billion-asset Sterling to increase its capital ratios. At midyear its Tier 1 capital ratio was 9.8%, and its total risk-based capital ratio was 10.9%.
On July 5, Sterling announced it had purchased the $435 million-asset Lynnwood Financial Group Inc. in Spokane for about $65 million in cash and stock. Its deal to buy the $846 million-asset FirstBank NW Corp. in Clarkston, Wash., announced June 5, is expected to close next quarter. Sterling agreed to pay about $170 million in cash and stock for FirstBank.
