$STSA has had some trouble lately as it has struggled and for the most part failed to meet some of its commitments.
Sterling Financial Corp. said it plans to defer paying interest payments on its outstanding junior subordinated notes, citing its “ongoing strategy to manage through the current economic cycle.”
The Spokane holding company for Sterling Savings Bank (NASDAQ: STSA) also said it will defer regular quarterly dividends on its $303 million in preferred stock.
The bank said it’s allowed to defer interest payments on its junior subordinated notes for up to 20 consecutive quarters without default.
This event having happened at the end of August seems to decrease in relevance as it shrinks in the rearview mirror. Also significant is that there has been little in the way of rumor and innuendo regarding the company, which may be a part of the reason for today’s jump in share price. We might test the waters out and keep you updated. The pessimism regarding the issue though seems to already be built into the share price.
STSA is the parent company of Sterling Savings Bank and Golf Savings Bank.

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