EXHIBIT 99.1
Contacts: Kermit K. Houser Marshall J. Alexander
President and CEO Executive VP and CFO
(541)882-3444 X7133 (541)882-3444 X7120
News Release
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KLAMATH FIRST DECLARES 32nd CONSECUTIVE QUARTERLY CASH DIVIDEND
$0.13 PER SHARE TO BE PAID OCTOBER 14, 2003
KLAMATH FALLS, OREGON - September 24, 2003 - Klamath First Bancorp, Inc.
(NASDAQ: KFBI) today announced that its board of directors declared a
quarterly cash dividend of $0.13 per share of common stock to be paid October
14, 2003 to shareholders of record on October 3, 2003.
As previously announced, Klamath First is party to a merger agreement
pursuant to which Klamath will merge into Sterling Financial Corporation
(NASDAQ: STSA), subject to shareholder and regularoty approval and the
satisfaction of certain other closing conditions. The declaration and payment
of quarterly cash dividends will not be affected by the pending merger
because Klamath's payment of these dividends is permitted under the merger
agreement.
"Announcement of this 32nd consecutive cash dividend is an indication of
Klamath's commitment to support and reward our shareholders," said Kermit K.
Houser, President and CEO.
On August 13, 2003, Klamath reported adjusted net earnings for the nine months
ended June 30, 2003 of $1.5 million, or $0.22 per diluted share, after an
other-than-temporary impairment charge. Total assets were $1.45 billion, net
loans totaled $555.3 million, and deposits were $1.08 billion at June 30, 2003.
Shareholders' equity grew to $121.5 million and book value was $18.31 per share
at June 30, 2003.
About Klamath First Bancorp, Inc.
Klamath First Bancorp, Inc. is the holding company for Klamath First Federal
Savings and Loan Association, which operates 59 offices, 57 in 26 counties
throughout Oregon and 2 in-store branches in South Central Washington. Klamath
First serves the state of Oregon through these offices by offering a full range
of products and services for both the consumer and business customer, including
commercial, consumer and real estate loans, various checking and savings
products, 24-hour telephone banking, and online banking with bill pay through
its web site www.KlamathFirst.com. Customers have access to brokerage and
investment services through the company's subsidiary, Klamath First Financial
Services. Additionally, customers may visit new in-store branches with
extended banking hours six days a week.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements include, but are not limited to, statements about (i) the proposed
merger between Sterling Financial Corporation and Klamath First Bancorp, Inc.;
(ii) Klamath First's plans, objectives, expectations and intentions and other
statements contained in this presentation that are not historical facts; and
(iii) other statements identified by words such as "expects," "anticipates,"
"intends," "plans," "believes," "seeks," "estimates," or words of similar
meaning generally intended to identify forward-looking statements. These
forward-looking statements are based upon the current beliefs and expectations
of the management of Klamath and are inherently subject to significant business,
economic and competitive uncertainties and contingencies, many of which are
beyond our control. In addition, these forward-looking statements are subject to
assumptions with respect to future business strategies and decisions that are
subject to change. Actual results may differ materially from the anticipated
results discussed in these forward-looking statements because of numerous
possible uncertainties.
The following factors, among others, could cause actual results to differ
materially from the anticipated results or other expectations expressed in the
forward-looking statements (1) governmental approvals of the merger may not be
obtained, or adverse regulatory conditions may be imposed in connection with
governmental approvals of the merger; (2) the shareholders of Klamath First or
Sterling may fail to approve the merger; (3) changes in interest rates; (4)
changes in tax laws; (5) changes in general economic conditions or (6) changes
in the securities markets. Additional factors that could cause actual results to
differ materially from those expressed in the forward-looking statements are
discussed in Sterling's and Klamath First's reports (such as Annual Reports on
Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K) filed
with the securities and Exchange Commission and available on the SEC's Internet
site (http://www.sec.gov). Klamath First Bancorp, Inc. disclaims any obligation
to publicly announce future events or developments that may affect the
forward-looking statements herein.
ADDITIONAL INFORMATION
The proposed merger with Sterling will be submitted to Klamath's shareholders
for their consideration. Sterling has filed a registration statement that
contains a Joint Proxy Statement/Prospectus and other relevant documents
concerning the proposed transaction with the SEC. Klamath shareholders are
urged to read the Joint Proxy Statement/Prospectus and any other relevant
documents filed with the SEC as well as any amendments or supplements to those
documents, because they contain important information. Shareholders may obtain
a free copy of the Joint Proxy Statement/Prospectus and other documents
containing information about Sterling and Klamath on the SEC's internet site at
(http://www.sec.gov).
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Note: Transmitted on Business Wire at 2:30 PM PDT, September 24, 2003.