The Puget Sound Business Journal and The Seattle Times are reporting that Sterling Savings Bank was hit with a cease-and-desist order today by the FDIC and needs to raise capital by Dec. 15. The Times reported the amount they need to raise is $300 million.
Sterling Savings Bank has branches throughout Washington, including Lynden, Blaine and Point Roberts.
The company announced that Harold B. Gilkey is leaving his positions as board chairman, president and CEO of the holding company (Sterling Financial Corp.) and Heidi B. Stanley is stepping down as chairman and CEO of Sterling Savings Bank. Greg Seibly was named CEO of the bank.
I’ll check, but I think there are now 14 banks statewide with cease-and-desist orders. Sterling’s order has a short time-frame (two months) compared to other orders I’ve seen, which were more in the six-month range to meet the requirements.