Offsetting Assets and Liabilities:

Certain derivatives and repurchase agreements are subject to net settlement. Depending on the governing disclosure rules or elections made by management, amounts are presented gross or net on a balance sheet. The following summarizes the presentation of Sterling's interest rate swaps and securities sold under repurchase agreements, all of which are presented gross on Sterling's balance sheet:



							Pledged Collateral on Balance Sheet
June 30, 2013	Amount Recognized		Amount Offset on Balance Sheet		Amount Presented on Balance Sheet		Securities		Cash		Net Position
	(in thousands)
Assets
Interest rate swaps	$	1,089	$	0	$	1,089	$	0	$	0	$	1,089
Total	$	1,089	$	0	$	1,089	$	0	$	0	$	1,089
Liabilities
Securities sold under repurchase agreements	$	527,925	$	0	$	527,925	$	527,925	$	0	$	0
Interest rate swaps	1,088		0		1,088		0		1,088		0
Total	$	529,013	$	0	$	529,013	$	527,925	$	1,088	$	0
December 31, 2012
Assets
Interest rate swaps	$	2,148	$	0	$	2,148	$	0	$	0	$	2,148
Total	$	2,148	$	0	$	2,148	$	0	$	0	$	2,148
Liabilities
Securities sold under repurchase agreements	$	586,867	$	0	$	586,867	$	586,867	$	0	$	0
Interest rate swaps	2,144		0		2,144		0		2,144		0
Total	$	589,011	$	0	$	589,011	$	586,867	$	2,144	$	0

Sterling's cash, and investments and MBS included cash and securities pledged against its interest rate swap and securities sold under repurchase agreements liabilities.