Junior Subordinated Debentures

12 Months Ended

Dec. 31, 2013

Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust [Abstract]

Junior Subordinated Debentures

Junior Subordinated Debentures:

Sterling has raised regulatory capital through the formation of trust subsidiaries that issued junior subordinated debentures, and has also assumed similar obligations through mergers with other financial institutions. The trusts are business trusts in which Sterling owns all of the common equity. The proceeds from the sale of the securities were used to purchase junior subordinated debentures issued by Sterling. Sterling's obligations under the junior subordinated debentures and related documents, taken together, constitute a full and unconditional guarantee by Sterling of the trusts' obligations. The junior subordinated debentures are treated as debt of Sterling. The junior subordinated debentures mature 30 years after issuance, and are redeemable, subject to certain conditions. As of December 31, 2013, all of Sterling's junior subordinated debentures were redeemable at par, at their applicable quarterly or semiannual interest payment dates.

Details of the junior subordinated debentures are as follows:

				December 31, 2013
Subsidiary Issuer	Issue Date	Maturity Date	Next Interest Payment Date	Rate			Amount
							(in thousands)
Sterling Capital Trust IX	July 2007	Oct 2037	Jan 2014	1.65	%		$	46,392
Sterling Capital Trust VIII	Sept 2006	Dec 2036	Mar 2014	1.87			51,547
Sterling Capital Trust VII	June 2006	June 2036	Mar 2014	1.77			56,702
Lynnwood Financial Statutory Trust II	June 2005	June 2035	Mar 2014	2.04			10,310
Sterling Capital Trust VI	June 2003	Sept 2033	Mar 2014	3.44			10,310
Sterling Capital Statutory Trust V	May 2003	June 2033	Mar 2014	3.50			20,619
Sterling Capital Trust IV	May 2003	May 2033	Feb 2014	3.39			10,310
Sterling Capital Trust III	April 2003	April 2033	Jan 2014	3.49			14,433
Lynnwood Financial Statutory Trust I	Mar 2003	Mar 2033	Mar 2014	3.40			9,429
Klamath First Capital Trust I	July 2001	July 2031	Jan 2014	4.15			15,247
				2.38	%	*	$	245,299
* Weighted average rate.