Securities Sold Under Repurchase Agreements

12 Months Ended

Dec. 31, 2013

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 financing arrangements, which Sterling reflects on its balance sheet. The obligations to repurchase securities sold are reflected as a liability, while the securities underlying these agreements are reflected as an asset. The risk of default under such agreements is limited by the financial strength of the counterparties and the level of borrowings relative to the market value of the pledged securities. At both December 31, 2013 and 2012, under repurchase agreements, Sterling had pledged as collateral $637.1 million and $738.6 million, respectively, of investments and MBS. The average balances of repurchase agreements were $535.5 million and $959.5 million during the years ended December 31, 2013 and 2012, respectively. The maximum amount outstanding at any month end during these same periods was $587.4 million and $1.07 billion, respectively.

At December 31, 2013 and 2012, borrowings under repurchase agreements are contractually repayable as follows. Actual repayments may vary due to default and call provisions:

	December 31, 2013				December 31, 2012
	Amount		Weighted Average Interest Rate		Amount		Weighted Average Interest Rate
	(in thousands)
Due within 1 yr	$	31,679	0.05	%	$	86,867	1.20	%
Due within 2 yrs	50,000		2.47		0		0.00
Due within 3 yrs	0		0.00		50,000		2.47
Due within 4 yrs	400,000		4.08		0		0.00
Due within 5 yrs	50,000		2.62		400,000		4.08
Thereafter	0		0.00		50,000		2.62
	$	531,679	3.55	%	$	586,867	3.18	%