* Says suspends cash dividend on $303 mln of pref stock
* Expects to save $5.7 mln per quarter
Aug 19 (Reuters) - Bank holding company Sterling Financial Corp said it deferred interest payments on its outstanding junior subordinated notes relating to its trust preferred securities and suspended cash dividend payment on its $303 million of preferred stock.
Sterling is allowed to defer payments of interest on the junior subordinated notes for up to 20 consecutive quarterly periods without default, the company said in a statement.
'Today's actions are consistent with our strategy of maintaining a solid balance sheet and a strong liquidity position,' Chief Executive Harold Gilkey said.
The company expects to save about $5.7 million per quarter in cash through the deferral of payments.
In July, the company had reported a second-quarter loss of $29.5 million, hurt mainly by higher loan loss provisions.
Shares of the Spokane, Washington-based company were down 1 cent at $3.03 in after-market trade. They closed at $3.04 Wednesday on Nasdaq.
(Reporting by Abhinav Sharma in Bangalore; Editing by Pradeep Kurup) Keywords: STERLINGFINANCIAL/ (abhinav.sharma@thomsonreuters.com; within U.S +1 646 223 8780; Outside U.S +91 080 4135 5800; Reuters messaging: abhinav.sharma.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
* Expects to save $5.7 mln per quarter
Aug 19 (Reuters) - Bank holding company Sterling Financial Corp said it deferred interest payments on its outstanding junior subordinated notes relating to its trust preferred securities and suspended cash dividend payment on its $303 million of preferred stock.
Sterling is allowed to defer payments of interest on the junior subordinated notes for up to 20 consecutive quarterly periods without default, the company said in a statement.
'Today's actions are consistent with our strategy of maintaining a solid balance sheet and a strong liquidity position,' Chief Executive Harold Gilkey said.
The company expects to save about $5.7 million per quarter in cash through the deferral of payments.
In July, the company had reported a second-quarter loss of $29.5 million, hurt mainly by higher loan loss provisions.
Shares of the Spokane, Washington-based company were down 1 cent at $3.03 in after-market trade. They closed at $3.04 Wednesday on Nasdaq.
(Reporting by Abhinav Sharma in Bangalore; Editing by Pradeep Kurup) Keywords: STERLINGFINANCIAL/ (abhinav.sharma@thomsonreuters.com; within U.S +1 646 223 8780; Outside U.S +91 080 4135 5800; Reuters messaging: abhinav.sharma.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.