Sterling Financial Corp. in Spokane announced Wednesday that the Treasury Department has approved the two lead investors in its recapitalization effort.

The $10.5 billion-asset company has agreements with the private-equity firms Warburg Pincus and Thomas H. Lee Partners, for $139 million investments each. The investments are contingent on Sterling raising $720 million in capital.

In April, the Treasury agreed to exchange the $303 million of preferred shares it purchased from Sterling through the Troubled Asset Relief Program for $75.8 million of common equity.

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