Sterling Financial Corporation of Lancaster, Pa., Divests Selected Insurance Businesses
28 December 2006 - 8:59AM
PR Newswire (US)
LANCASTER, Pa., Dec. 27 /PRNewswire-FirstCall/ -- Sterling
Financial Corporation has announced the sale of three
insurance-related businesses: Corporate Healthcare Strategies, LLC,
an employee benefits insurance broker, Professional Services Group,
a human resources consulting business, and the property and
casualty insurance accounts of the Lancaster Insurance Group, LLC.
"While we found offering these additional services to our customers
beneficial as Sterling-owned affiliates, they never became
meaningful contributors to the bottom line," said J. Bradley
Scovill, chief revenue officer of Sterling Financial Corporation.
"We will continue to provide real estate settlement/title insurance
services and offer products such as annuities and life insurance as
well as credit-related insurance products." Corporate Healthcare
Strategies is being purchased by David K. Stoudt, its current
president. He is also purchasing the closely related Professional
Services Group consulting business. In the third quarter, Sterling
took an impairment charge related to changes in the market for
employee benefits brokerage services and sold the CapRisk wholesale
underwriting portion of Corporate Healthcare Strategies. "This sale
simply brings to conclusion the strategic review that we began in
the third quarter," added Scovill. In the case of Lancaster
Insurance Group, the accounts are being sold to Murray Insurance
Associates, Inc., the company that has been servicing these
accounts since 1999. "We wanted to do this in a way that would be
right for our customers," said Scovill. "Customers of all three
businesses should see little change in their existing service,
since it will essentially be the same people, addresses, phone
numbers and services offered." Each of the businesses referenced
has its headquarters in Lancaster. With assets of $3.1 billion and
investment assets under administration of $2.8 billion, Sterling
Financial Corporation (NASDAQ:SLFI) is a diversified financial
services company based in Lancaster, Pa. Sterling Banking Services
Group affiliates offer a full range of banking services in
south-central Pennsylvania, northern Maryland and northern
Delaware; the group also offers correspondent banking services in
the mid-Atlantic region to other companies within the financial
services industry. Sterling Financial Services Group affiliates
provide specialty commercial financing; fleet and equipment
leasing; investment, trust and brokerage services; and insurance
services. Visit http://www.sterlingfi.com/ for more information.
Banking Services Group -- Banks: Pennsylvania: Bank of Lancaster
County, N.A.; Bank of Lebanon County; PennSterling Bank; and
Pennsylvania State Bank. Pennsylvania and Maryland: Bank of Hanover
and Trust Company. Maryland: Bay First Bank (formerly First
National Bank of North East and Bay Net A Community Bank).
Delaware: Delaware Sterling Bank & Trust Company. Correspondent
banking services: Correspondent Services Group (provider of
Sterling services to other financial institutions). Financial
Services Group -- Specialty commercial financing: Equipment Finance
LLC (commercial financing company for the forestry, land clearing
and construction industries). Fleet and equipment leasing: Town
& Country Leasing, LLC (nationwide fleet and equipment
leasing/financing company). Trust, investment and brokerage
services: Sterling Financial Trust Company (trust and investment
services), Church Capital Management, LLC (registered investment
advisor) and Bainbridge Securities Inc. (securities broker/dealer).
Insurance services: Lancaster Insurance Group, LLC (independent
insurance agency) and Sterling Financial Settlement Services, LLC
(title insurance agency). This news release may contain
forward-looking statements as defined by the Private Securities
Litigation Reform Act of 1995. Actual results and trends could
differ materially from those set forth in such statements due to
various factors. Such factors include costs and efforts required to
integrate aspects of the operations of the companies being more
difficult than expected, anticipated merger-related synergies not
being achieved timely or not being achieved at all, the possibility
that increased demand or prices for Sterling's financial services
and products may not occur, changing economic and competitive
conditions, volatility in interest rates, technological
developments, costs associated with complying with laws, rules and
regulations, and other risks and uncertainties, including those
detailed in Sterling's filings with the Securities and Exchange
Commission. DATASOURCE: Sterling Financial Corporation CONTACT: Joe
Patterson, Vice President, Director of Corporate Communications of
Sterling Financial Corporation, +1-717-735-5651 (office), or
+1-717-940-2759 (mobile), or Web site: http://www.sterlingfi.com/
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