FOUR - Heppner Gazette-Times, Heppner, Oregon Wednesday, July 30, 2003
Klamath First merges with Sterling Financial
S te rlin g F in a n c ia l
Corporation and Klamath First
Bancorp, Inc., announced July
15, that they have signed a
definitive agreem ent for the
m e rg e r o f K la m a th F irs t
B ancorp, Inc., w ith and into
Sterling Financial Corporation.
The transaction, which
is valued at approxim ately
$ 147 m illion, is expected to
close in the first q uarter o f
2004, pending sh areholder
and regulatory approval, and
to be accretive to S terlin g ’s
earning per share in 2004.
Under the terms o f the
m erger agreem ent, w hich has
been u nanim ously approved
by the Boards o f D irectors o f
both companies, each share o f
K lam ath com m on stock will
be converted into 0.77 share
o f S terlin g c o m m o n stock
subject to certain conditions.
Based upon the closing price
for S terlin g on Ju ly 14 o f
$ 2 6 .5 5 p e r s h a r e , th e
consideration is equivalent to
$20.44 per share o f K lam ath
com m on stock. T he parties
have agreed to pay termination
fees in the ev en t the m erger
agreement is terminated under
c e r t a i n c o n d it io n s . T h e
exchange o f shares is expected
to be tax-free to the K lam ath
shareholders.
B ased upon balance
sheet data as M arch 31,2003,
the com bined com pany will
h a v e a p p ro x im a te ly $5 .3
billion in total assets, deposits
o f approxim ately $3.4 billion,
and sh areh o ld ers’ equity o f
approxim ately $338 m illion.
B ased on July 14’s closing
price, the com bined com pany
w ill
have
a
m ark e t
capitalization o f approximately
$535 million.
S terlin g ’s C hairm an
and C h ief Executive Officer,
Harold B. Gilkey, commented,
“ W e a re v e ry p le a s e d to
w e lc o m e th e e m p lo y e e s ,
custom ers and investors o f
K la m a th in to th e S terlin g
f a m ily . T h e m e r g e r is
consistent with our previously
stated growth plans to become
the leading community bank in
the region.”
W ith the increase to
approxim ately 143 branches
serving O regon, W ashington,
Idaho and M ontana, Sterling
strengthens its positions as a
leading regional com m unity
bank and gives it the ability to
e x te n d its “ H o m e to w n
H e lp fu l”
p h ilo s o p h y
throughout communities in the
region.
“ T h e m e rg e r w ith
K lam ath is a perfect fit for
S terlin g ,” said G ilkey. “ In
a d d itio n to th e fin a n c ia l
aspects, Sterling and Klamath
match up very well culturally.
A s a le a d in g r e g io n a l
community bank w e’ll be able
to b u ild a ban k for all o f
Oregon, a bank that offers the
same products and services o f
a large bank while retaining the
feel o f a hom etow n bank.”
A ccording to Kerm it
K. H o u ser, P re sid e n t and
C E O o f K la m a th , “ T h is
com bination o f com panies is
p o s itiv e in e v e ry w ay. It
accelerates our mutual desire
to provide extensive coverage
in th e N o rth w e s t, as o u r
existing geographic footprints
are a perfect fit. K lam ath ’s
strong deposit base supports
Sterling’s strong loan grow th
and the com bined banking
p ro d u c ts a n d o ffic e s add
additional business options
and custom er convenience.
The larger organization also
p r o v id e s
n u m ero u s
opportunities for Klamath First
e m p lo y e e s
and
our
shareholders are receiving a
prem ium over our slock price
to d a y a n d w ill h a v e an
opportunity for future growth
with the larger company.”
A ccording to Gilkey,
“ Sterling plans to form an
O regon-area advisory board
comprised o f current Klamath
board m em bers to facilitate
Sterling’s further expansion in
Oregon. In addition, Sterling
w ill be a d d in g one b o ard
p o s itio n a t th e h o ld in g
company and two seats on the
Sterling Savings Bank board.
Klamath board m em bers will
be a s k e d to f ill th e s e
positions.”
Sterling and Klamath
held a co n fe re n ce call for
investors, analysts and other
interested parties on July 15.
Replay o f the conference call
will be available from now
until A ug. 15, at 8 p.m . The
replay num ber is (402) 998-
0787. If needed the passw ord
is “STERLIN G ” . In addition,
S te rlin g h a s p re p a re d an
I n v e s to r P r e s e n ta tio n to
accompany the audio call. The
presentation is available via the
I n te r n e t
at
WCCC Ladies’ Playday results
Under hot and sunny skies, 22
ladies gathered, Tuesday, July
22, at W illow C reek Country
C lub for the w eekly L ad ies’
Play Day.
Shari Stahl received low gross
o f the field. V irginia G rant
received low net o f the field.
Least putts o f the field went to
Betty Christman.
In flight A, Pat E dm undson
took low gross; Eva Kilkenny
to o k lo w n e t; a n d C o ro l
M itchell took least putts.
In flight B, L oa H enderson
to o k lo w g ro ss ; S u z a n n e
Jepsen took low net; and Lois
Hunt had least putts.
In flight C, L iz O rw ick took
lo w
g ro ss;
L o rre n e
M ontgom ery took low net;
and Joyce D inkins took least
putts.
Chip-ins w ent to Liz Orwick,
hole 15; Shari Stahl, hole 14;
Loa Henderson, hole 13; Lois
H u n t, h o le 15; an d D e lla
Heideman, hole 11.
Shari Stahl on hole 14, Pat
E d m u n d so n a n d S u z a n n e
Jepsen on hole 13, and Corol
M itchell on hole 18 received
birdies.
In other happenings, Shari
Stahl for flight A, Lois Hunt for
flight B and Betty Carlson for
flight C took long drive on hole
#10 from a seated position.
www.sterlingsavmgsbank.com.
T he Investor R elations site
c o n ta in s
th e
in v e s to r
presentation, as well as the link
to the audio w ebcast o f the
conference call.
S te rlin g F in a n c ia l
Corporation o f Spokane, WA,
is a unitary saving and loan
holding company, which owns
Sterling Savings Bank. Sterling
Savings Bank is a Washington
S ta te -c h a rte re d , fe d e ra lly
in s u r e d s to c k s a v in g s
association, w hich opened in
April 1983. Sterling Savings
Bank, based in Spokane, WA,
h a s b ra n c h e s th ro u g h o u t
W ashington, Idaho, O regon
a n d w e s te r n M o n ta n a .
T hrough S te rlin g ’s w holly
ow ned su b sid iaries A ction
M o rtg a g e C o m p a n y a n d
I N T E R V E S T - M o r tg a g e
I n v e s tm e n t C o m p a n y , it
o p e ra te s lo an p ro d u c tio n
offices in W ashington, Idaho,
Oregon and western Montana.
S terling’s subsidiary H arbor
Financial S ervices provides
n o n -b an k
in v e s tm e n ts ,
including mutual funds, variable
a n n u itie s and tax -d e fe rre d
annuities, through regional
rep resen tativ es thro u g h o u t
S te rlin g S a v in g ’s b ra n c h
network.
K la m a th
F ir s t
B ancorp, Inc. is the holding
com pany for K lam ath First
F ederal Savings and Loan
A ssociations (K lam ath First
Federal), organized in 1934.
K lam ath First Federal is a
p r o g re s s iv e , c o m m u n ity -
oriented financial institution that
focuses on serving customers
w ithin its primary market area.
A ccordingly, K lam ath First
Federal is primarily engaged in
attracting deposits from the
g en eral public th ro u g h its
offices and using those and
o th er av ailab le sources o f
funds to originate perm anent
residential one-to-four-family
real estate loans w ithin its
m a r k e t a re a , a s w e ll as
com m ercial real estate and
multi-family residential loans,
loans to consum ers and loans
fo r c o m m e rc ia l p u rp o se s.
U pon the acquisitions o f 13
branches from W ashington
M utual in Septem ber 2001,
K lam ath First Federal has a
presence in 26 o f O regon’s 36
counties and had tw o in-store
b r a n c h e s in th e S ta te o f
Washington.
BEO Mortgage Division holds open Boardman son
receives Letter of
house
Commendation
N avy Petty office 1“
Class Justin M. Lewis, son o f
David J. Lewis o f Boardman,
recently received a Letter o f
Commendation while assigned
with Strike Fighter Squadron
2 5 , N a v a l A ir S ta tio n ,
Lem oore, CA.
Lewis was recognized
for his superior perform ance
o f duty. Displaying remarkable
dedication and initiative, Lewis
co n sisten tly perfo rm ed his
d e m a n d in g d u tie s in an
e x e m p la r y a n d h ig h ly
professional manner.
L e w is is a 1988
Newly promoted Bank of Eastern Oregon VP, Melissa Lindsay (left), graduate o f Forest Grove High
with Heppner resident, Barbara Gilbert, enjoy cake at the BEO School o f Forest G rove. He
Mortgage Division Open House, held July 25.
joined the N avy in June 1988.
The Heppner Garden Club announced Bob and Jan MacDonald’s
yard at 825 Lakeview as the July Yard of the Month.
DA’s Report
Luanne Flanagan was
convicted ofTheft-1, a Class-
C fe lo n y . F la n a g a n w a s
s e n te n c e d to tw o y e a r s
probation, 60 days in jail, 80
hours o f com rqupity service
an d p a y m e n t oi[,$6?21 in
restitution and fees.
W illiam Elmer M abe
w as c o n v ic te d o f P riv a te
H a rv est T im e rea ch es M orrow
County
In d e c e n c y , a C la s s - A
m is d e m e a n o r. M a b e w a s
sentenced t0 365 suspended
days
tw o years bench
p T °b a t i o n > 4 0 h o u r s o f
c o m m u n ity s e r v ic e a n d
paym ent o f $874 in fines and
fees-
PROPERTY & HOMES
FOR SALE
BUILDING LOT
WITH GREAT
VIEW OF WILLOW
CREEK LAKE. N e a r
H e p p n e r. R ead y to
b u ild o n . $ 2 2 ,9 0 0 .
MOUNTAIN PROPERTY. O n e a c re (a p p ro x .) in
th e m o u n ta in s . W a te r a n d e le c tric ity to th e
p ro p e rty . L ev eled s p o t. R eady to b u ild o n .
L o c a te d a t B lakes R a n c h , 15 m iles fro m
H e p p n e r. $ 1 2 ,9 0 0 .
WELL KEPT SPLIT
LEVEL. L arge
fe n c e d y a rd w ith
flo w e r b e d s. 10x16
s to ra g e s h e d in
b a c k y a rd . L arge
fam ily ro o m in b a s e m e n t. L iving ro o m w ith
fire p la c e. $ 1 2 0 ,0 0 0 .
SHARP LOOKING
th re e b e d ro o m ,
o n e b a th h o m e in
g o o d c o n d itio n .
W ell m a in ta in e d
y a rd . L o c a te d o n a
q u ie t s tre e t.
$ 8 9 ,9 0 0 .
WARM AND COZY
HOME w ith tw o
b e d ro o m s , o n e b a th
in H e p p n e r. B ran d
n e w fu rn a c e , w o o d
flo o rs a n d tw o -c a r
g a ra g e . $ 6 5 ,0 0 0 .
lone Class o f ‘53 to
hold reunion
i t 5 /km.
74. 4am
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July 24: Floyd Barty
Hess, 72, H eppner and M itzi
Adele Grimes, 57, Hermiston.
Magnetic
Door
Signs
REALTOR Cl
180 W. Baltimore #5
Heppner, OR 97838
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i/ j
T h e S t. P a t r i c k ’s
Senior Center bus is scheduled
fo r th e r o a d a g a in on
Thursday, July 31, to Condon
for a noon meal at the Condon
H otel. T he bus w ill load at
10:30 a.m., by the M ain Street
e n tra n c e o f St. P a tr ic k ’s
Senior Center. A call to the
S enior C en ter office, 676-
9030, will reserve a seat.
O n M o n d a y , th e
following week, Aug. 4, a bus
tr ip is s c h e d u le d fo r
Pendleton. L oading tim e is
10:30 a.m. T he noon m eal is
a t th e P e n d le to n S e n io r
Center, and afterw ards there
will be tim e for shopping and
other interesting visits close by.
V o lu n te e rs fo r th e
W ednesday, A ug. 6 m eal at
St. P a t’s are from H ope, All
Saints, and Valby Ecumenical
Parish.
a com m ent about
B ud
L u n d e ll
seem s
a p p ro p ria te . S e v e ra l days
before his death, I w as at the
center on an errand. H e was
sitting in the com m on room ,
facing M ain Street. I stopped
to greet him and asked, “Are
you keeping track o f M ain
Street doings?” H is sim ple
rep ly w as, “ I am m u sin g ,
simply musing; sitting here, just
m using; so m any things go
through m y m ind about the
past, and then some one drops
in that I haven’t thought o f for
a long time; its very enjoyable,
just to muse.” M y thought was
to return for a leisurely visit,
w hen B ud w ould share some
o f his m usings w ith m e, and
with the readers. That meeting
did not happen. The m em ory
o f th is m a n w h o w a s
c o m p le te ly at p e a c e w ith
himself remains.
Order Yours Here
A combine moves through the wheat Helds working to flnish this
year’s harvest. According to Morrow County Grain Growers, farmers
have been yielding six-30 bushels per acre, which is still a below
average yield.
T he lo n e C la ss o f
1953 is h a v in g th e ir 50,h
reunion, Saturday, Aug. 2.
(
-----------------
G arden C lub to
meet
The H eppner Garden
Club will meet, Monday, Aug.
4, at St. P at’s S enior Center,
at 7 p.m .
This m o n th ’s host is
Bebe M unkers. T he topic for
the m eeting w ill be the Fair
Booth and F low er Show.
The public is welcome
to join in the meeting.
St. Patrick’s
Senior Center
news
Yard of the Month
Heppner Gazette-Time«
Ihnkt Syhru.
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