Sterling Financial (STSA) to Acquire American Heritage in $6.5M Deal

Sterling Financial Corporation (Nasdaq: STSA) and American Heritage Holdings announced that the Company and its principal operating subsidiary, Sterling Savings Bank (“Sterling”), have entered into a definitive agreement to acquire AHH, the holding company for Borrego Springs Bank, N.A, for cash consideration of $6.5 million. The transaction, which has been approved by the boards of directors of Sterling and AHH, will provide a significant enhancement to Sterling’s government guaranteed lending and servicing capabilities. The shareholders of AHH have agreed to vote in favor of the transaction, which is subject to regulatory approval and other customary conditions of closing and is expected to be completed during the first quarter of 2013.

As of September 30, 2012, AHH had assets of approximately $142 million, loans of $97 million, deposits of $121 million and shareholders’ equity of $13.4 million. For fiscal year 2011, AHH originated 741 SBA 7a loans with an aggregate funded amount of $161 million. The Company expects the transaction will be accretive to earnings per share during the first year following completion with an immaterial impact on its tangible book value per share.

Bingham McCutchen LLP served as the legal advisor to the Company and Tisdale & Nicholson LLP served in the same capacity for AHH. Sandler O’Neill & Partners LP served as the financial advisor to AHH.

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