Securities Sold Under Repurchase Agreements

12 Months Ended

Dec. 31, 2012

Disclosure of Repurchase Agreements [Abstract]

Securities Sold Under Repurchase Agreements

Securities Sold Under Repurchase Agreements:

Sterling sells securities under agreements to repurchase the same or similar securities (“repurchase agreements”). Repurchase agreements are treated as financings, and the obligations to repurchase securities sold are reflected as a liability on the consolidated balance sheet. The securities underlying these agreements continue to be held by Sterling, but the title has been transferred to the counterparties to the agreements. The risk of default under such agreements is limited by the financial strength of these broker/dealers and the level of borrowings relative to the market value of pledged securities. At both December 31, 2012 and 2011, under the repurchase agreements, Sterling had pledged as collateral $738.6 million and $1.28 billion, respectively, of investments and MBS. The average balances of repurchase agreements were $959.5 million and $1.05 billion during the years ended December 31, 2012 and 2011, respectively. The maximum amount outstanding at any month end during these same periods was $1.07 billion and $1.06 billion, respectively.

At December 31, 2012 and 2011, borrowings under repurchase agreements are contractually repayable as follows. Actual repayments may vary due to default and call provisions:

	December 31, 2012				December 31, 2011
	Amount		Weighted Average Interest Rate		Amount		Weighted Average Interest Rate
	(in thousands)
Due within 1 yr	$	86,867	1.20	%	$	205,763	3.08	%
Due within 2 yrs	0		0.00		100,000		3.00
Due within 3 yrs	50,000		2.47		0		0.00
Due within 4 yrs	0		0.00		150,000		3.76
Due within 5 yrs	400,000		4.08		100,000		3.97
Thereafter	50,000		2.62		500,000		3.90
	$	586,867	3.18	%	$	1,055,763	3.64	%