Investments And MBS

9 Months Ended

Sep. 30, 2013

Investments and MBS [Abstract]

Investments And MBS

Investments and MBS:

The carrying and fair values of investments and MBS are summarized as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
September 30, 2013
Available for sale
MBS	$	1,300,288	$	20,362	$	(15,194	)	$	1,305,456
Municipal bonds	185,907		7,767		(925		)	192,749
Other	162		10		0			172
Total	$	1,486,357	$	28,139	$	(16,119	)	$	1,498,377
Held to maturity
Tax credits	$	175	$	0	$	0		$	175
Total	$	175	$	0	$	0		$	175
December 31, 2012
Available for sale
MBS	$	1,263,786	$	45,052	$	0		$	1,308,838
Municipal bonds	188,467		16,452		(613		)	204,306
Other	5		8		0			13
Total	$	1,452,258	$	61,512	$	(613	)	$	1,513,157
Held to maturity
Tax credits	$	206	$	0	$	0		$	206
Total	$	206	$	0	$	0		$	206

Sterling’s MBS portfolio is comprised primarily of residential agency securities. Total sales of Sterling’s securities during the periods ended September 30, 2013 and 2012 are summarized as follows:

	Proceeds from Sales		Gross Realized Gains		Gross Realized Losses
	(in thousands)
Nine Months Ended:
September 30, 2013	$	0	$	0	$	0
September 30, 2012	506,150		12,666		(74		)

The following table summarizes Sterling’s investments and MBS that had a market value below their amortized cost as of September 30, 2013 and December 31, 2012, segregated by those investments that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 months or longer:

	Less than 12 months					12 months or longer					Total
	Market Value		Unrealized Losses			Market Value		Unrealized Losses			Market Value		Unrealized Losses
	(in thousands)
September 30, 2013
MBS	$	497,736	$	(15,194	)	$	0	$	0		$	497,736	$	(15,194	)
Municipal bonds	4,763		(157		)	12,551		(768		)	17,314		(925		)
Other	0		0			0		0			0		0
Total	$	502,499	$	(15,351	)	$	12,551	$	(768	)	$	515,050	$	(16,119	)
December 31, 2012
MBS	$	0	$	0		$	0	$	0		$	0	$	0
Municipal bonds	0		0			12,921		(613		)	12,921		(613		)
Other	0		0			0		0			0		0
Total	$	0	$	0		$	12,921	$	(613	)	$	12,921	$	(613	)

Management evaluates investment securities for other-than-temporary declines in fair value each quarter. If the fair value of investment securities falls below the amortized cost and the decline is deemed to be other-than temporary, the securities are written down to current market value, resulting in the recognition of an other-than-temporary impairment ("OTTI"). During the nine months ended September 30, 2013, no securities were determined to be other-than-temporarily impaired, while during the comparative 2012 period, $6.8 million of OTTI was recognized on a single issuer trust preferred security. The security is no longer owned by Sterling.

The following table presents the amortized cost and fair value of available for sale and held to maturity securities as of September 30, 2013, grouped by contractual maturity. Actual maturities for MBS will differ from contractual maturities as a result of the level of prepayments experienced on the underlying mortgages.

	Held to maturity				Available for sale
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(in thousands)
Due within one year	$	0	$	0	$	0	$	0
Due after one year through five years	0		0		9,404		9,954
Due after five years through ten years	0		0		90,788		90,357
Due after ten years	175		175		1,386,165		1,398,066
Total	$	175	$	175	$	1,486,357	$	1,498,377