Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Nov. 26, 2014 | Mar. 31, 2014 | |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--09-30 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Registrant Name | 'STERLING BANCORP | ' | ' |
Entity Central Index Key | '0001070154 | ' | ' |
Document Period End Date | 30-Sep-14 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 83,899,070 | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Public Float | ' | ' | $1,057,670,927 |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Consolidated_Statements_of_Fin
Consolidated Statements of Financial Condition (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and due from banks | $177,619 | $113,090 |
Securities | ' | ' |
Available-for-sale Securities | 1,110,813 | 954,393 |
Held to maturity, at amortized cost (fair value of $587,838 and $250,896 in 2014 and 2013, respectively) | 579,075 | 253,999 |
Total securities | 1,689,888 | 1,208,392 |
Loans held for sale | 17,846 | 1,011 |
Gross loans | 4,760,438 | 2,412,898 |
Allowance for loan losses | -40,612 | -28,877 |
Total loans, net | 4,719,826 | 2,384,021 |
Federal Home Loan Bank (“FHLBâ€) stock, at cost | 66,085 | 24,312 |
Accrued interest receivable | 19,667 | 11,698 |
Premises and equipment, net | 43,286 | 36,520 |
Goodwill | 388,926 | 163,117 |
Core deposit and other intangible assets | 45,278 | 5,891 |
Bank owned life insurance | 119,486 | 60,914 |
Other real estate owned | 7,580 | 6,022 |
Other assets | 41,900 | 34,184 |
Total assets | 7,337,387 | 4,049,172 |
LIABILITIES: | ' | ' |
Deposits | 5,298,654 | 2,962,294 |
FHLB and other borrowings | 795,028 | 462,953 |
Other borrowings (federal funds purchased and repurchase agreements) | 45,639 | 0 |
Senior notes | 98,402 | 98,033 |
Mortgage escrow funds | 4,494 | 12,646 |
Other liabilities | 134,032 | 30,380 |
Total liabilities | 6,376,249 | 3,566,306 |
Commitments and Contingent liabilities | ' | ' |
STOCKHOLDERS’ EQUITY: | ' | ' |
Preferred stock (par value $0.01 per share; 10,000,000 shares authorized; none issued or outstanding) | 0 | 0 |
Common stock (par value $0.01 per share; 190,000,000 shares authorized; 91,246,024 and 52,188,056 issued for 2014 and 2013, respectively; 83,628,267 and 44,351,046 shares outstanding in 2014 and 2013, respectively) | 912 | 522 |
Additional paid-in capital | 860,564 | 403,816 |
Unallocated common stock held by employee stock ownership plan (“ESOPâ€); 0 and 549,262 unallocated shares outstanding in 2014 and 2013, respectively | 0 | -5,493 |
Treasury stock, at cost (7,617,757 shares in 2014 and 7,837,010 shares in 2013) | -86,339 | -88,538 |
Retained earnings | 197,460 | 187,889 |
Accumulated other comprehensive (loss), net of tax (benefit) of ($8,470) in 2014 and ($10,482) in 2013 | -11,459 | -15,330 |
Total stockholders’ equity | 961,138 | 482,866 |
Total liabilities and stockholders’ equity | $7,337,387 | $4,049,172 |
Consolidated_Statements_of_Fin1
Consolidated Statements of Financial Condition (Parenthetical) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Securities held to maturity | $587,838 | $250,896 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 190,000,000 | 190,000,000 |
Common stock, shares issued | 91,246,024 | 52,188,056 |
Common stock, shares outstanding | 83,628,267 | 44,351,046 |
Treasury stock, shares | 7,617,757 | 7,837,010 |
Unallocated ESOP Shares outstanding | 0 | 549,262 |
Accumulated other comprehensive income, tax | ($8,470) | ($10,482) |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |||
Interest and dividend income: | ' | ' | ' | |||
Loans, including fees | $202,982 | $107,810 | $91,010 | |||
Taxable securities | 30,067 | 17,509 | 16,538 | |||
Non-taxable securities | 10,453 | 5,682 | 6,497 | |||
Other earning assets | 3,404 | 1,060 | 992 | |||
Total interest and dividend income | 246,906 | 132,061 | 115,037 | |||
Interest expense: | ' | ' | ' | |||
Deposits | 8,964 | 5,923 | 5,581 | |||
Borrowings | 19,954 | 13,971 | 12,992 | |||
Total interest expense | 28,918 | 19,894 | 18,573 | |||
Net interest income | 217,988 | 112,167 | 96,464 | |||
Provisions for loan losses | 19,100 | 12,150 | 10,612 | |||
Net interest income after provision for loan losses | 198,888 | 100,017 | 85,852 | |||
Non-interest income: | ' | ' | ' | |||
Accounts receivable management / factoring commissions and other related fees | 13,146 | 0 | 0 | |||
Mortgage banking income | 8,086 | 1,979 | 1,897 | |||
Deposit fees and service charges | 15,595 | 10,964 | 11,377 | |||
Net gain on sale of securities | 641 | 7,391 | 10,452 | |||
Bank owned life insurance | 3,080 | 1,998 | 2,050 | |||
Investment management fees | 2,209 | 2,413 | 3,143 | |||
Other | 4,613 | 2,947 | 3,233 | |||
Total non-interest income | 47,370 | 27,692 | 32,152 | |||
Non-interest expense: | ' | ' | ' | |||
Compensation and employee benefits | 94,310 | 47,833 | 46,038 | |||
Stock-based compensation plans | 3,703 | 2,239 | 1,187 | |||
Occupancy and office operations | 27,726 | 14,953 | 14,457 | |||
Amortization of intangible assets | 9,408 | 1,296 | 1,245 | |||
FDIC insurance and regulatory assessments | 6,146 | 3,010 | 3,096 | |||
Other real estate owned (income) expense, net | -237 | 1,562 | 1,618 | |||
Merger related expense | 9,455 | 2,772 | 5,925 | |||
Other | 57,917 | 17,376 | 18,391 | |||
Total non-interest expense | 208,428 | 91,041 | 91,957 | |||
Income before income tax expense | 37,830 | 36,668 | 26,047 | |||
Income tax expense | 10,152 | 11,414 | 6,159 | |||
Net income | $27,678 | $25,254 | $19,888 | |||
Weighted average common shares: | ' | ' | ' | |||
Basic (in shares) | 80,268,970 | [1] | 43,734,425 | [1] | 38,227,653 | [1] |
Diluted (in shares) | 80,534,043 | 43,783,053 | 38,248,046 | |||
Earnings per common share | ' | ' | ' | |||
Basic (USD per share) | $0.34 | $0.58 | $0.52 | |||
Diluted (USD per share) | $0.34 | $0.58 | $0.52 | |||
[1] | Includes earned ESOP shares. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net income | $27,678 | $25,254 | $19,888 |
Other comprehensive income (“OCIâ€) (loss): | ' | ' | ' |
Change in unrealized holding gains (losses) on securities available for sale | 15,948 | -37,324 | 12,866 |
Related income tax (expense) benefit | -6,778 | 15,157 | -5,224 |
Change in net unrealized (loss) on securities transferred to held to maturity | -8,947 | 0 | 0 |
Related income tax benefit | 3,803 | 0 | 0 |
Less: | ' | ' | ' |
Reclassification adjustment for net realized (gains) included in net income | -641 | -7,391 | -10,452 |
Related income tax expense | 272 | 3,001 | 4,245 |
Reclassification adjustment for other than temporary impaired losses included in net income | 0 | 32 | 47 |
Related income tax benefit | 0 | -13 | -19 |
Total OCI securities component | 3,657 | -26,538 | 1,463 |
Acceleration of future amortization of accumulated other comprehensive loss on defined benefit pension plan and change in funded status of defined benefit plans | 372 | 7,255 | 505 |
Related income tax (expense) | -158 | -2,946 | -205 |
Other comprehensive income | 3,871 | -22,229 | 1,763 |
Total comprehensive income | $31,549 | $3,025 | $21,651 |
Consolidated_Statement_of_Chan
Consolidated Statement of Changes In Stockholders' Equity (USD $) | Total | Common stock | Additional paid-in capital | Unallocated ESOP shares | Treasury stock | Retained earnings | Accumulated other comprehensive income (loss) |
In Thousands, except Share data, unless otherwise specified | |||||||
Balance at Sep. 30, 2011 | $431,134 | $459 | $357,063 | ($6,138) | ($90,585) | $165,199 | $5,136 |
Balance, shares at Sep. 30, 2011 | ' | 37,864,008 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Net income | 19,888 | ' | ' | ' | ' | 19,888 | ' |
Other comprehensive income | 1,763 | ' | ' | ' | ' | ' | 1,763 |
Stock option & other stock transactions, net | 685 | 0 | 685 | 0 | 0 | 0 | 0 |
Stock option & other stock transactions, net, shares | ' | 0 | ' | ' | ' | ' | ' |
ESOP shares allocated or committed to be released for allocation | -543 | 0 | -43 | -500 | 0 | 0 | 0 |
ESOP shares allocated or committed to be released for allocation, shares | 49,932 | ' | ' | ' | ' | ' | ' |
Restricted stock awards, net | 209 | 0 | -187 | 0 | 412 | -16 | 0 |
Restricted stock awards, net, shares | ' | 50,958 | ' | ' | ' | ' | ' |
Capital raise | 46,000 | 63 | 45,937 | ' | ' | ' | ' |
Capital raise, shares | ' | 6,258,504 | ' | ' | ' | ' | ' |
Cash dividends declared | -9,100 | 0 | 0 | 0 | 0 | -9,100 | 0 |
Balance at Sep. 30, 2012 | 491,122 | 522 | 403,541 | -5,638 | -90,173 | 175,971 | 6,899 |
Balance, shares at Sep. 30, 2012 | ' | 44,173,470 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Net income | 25,254 | ' | ' | ' | ' | 25,254 | ' |
Other comprehensive income | -22,229 | ' | ' | ' | ' | ' | -22,229 |
Stock option & other stock transactions, net | 792 | 0 | 730 | 0 | 95 | -33 | 0 |
Stock option & other stock transactions, net, shares | ' | 8,250 | ' | ' | ' | ' | ' |
ESOP shares allocated or committed to be released for allocation | -264 | 0 | -119 | -145 | 0 | 0 | 0 |
ESOP shares allocated or committed to be released for allocation, shares | 49,932 | ' | ' | ' | ' | ' | ' |
Restricted stock awards, net | 966 | 0 | -574 | 0 | 1,540 | 0 | 0 |
Restricted stock awards, net, shares | ' | 169,326 | ' | ' | ' | ' | ' |
Cash dividends declared | -13,303 | 0 | 0 | 0 | 0 | -13,303 | ' |
Balance at Sep. 30, 2013 | 482,866 | 522 | 403,816 | -5,493 | -88,538 | 187,889 | -15,330 |
Balance, shares at Sep. 30, 2013 | ' | 44,351,046 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Net income | 27,678 | 0 | 0 | 0 | 0 | 27,678 | 0 |
Other comprehensive income | 3,871 | 0 | 0 | 0 | 0 | 0 | 3,871 |
Common stock issued in Legacy Sterling merger transaction | 457,752 | 390 | 457,362 | ' | ' | ' | ' |
Common stock issued in legacy Sterling Bancorp merger transaction, shares | ' | 39,057,968 | ' | ' | ' | ' | ' |
Stock option & other stock transactions, net | 3,783 | 0 | 880 | 0 | 3,333 | -430 | 0 |
Stock option & other stock transactions, net, shares | ' | 267,188 | ' | ' | ' | ' | ' |
ESOP shares allocated or committed to be released for allocation | -790 | 0 | -1,280 | -5,493 | 5,983 | 0 | 0 |
ESOP shares allocated or committed to be released for allocation, shares | ' | 488,403 | ' | ' | ' | ' | ' |
Restricted stock awards, net | 2,075 | 0 | -2,774 | 0 | 4,849 | 0 | 0 |
Restricted stock awards, net, shares | ' | 440,468 | ' | ' | ' | ' | ' |
Cash dividends declared | -17,677 | 0 | 0 | 0 | 0 | -17,677 | 0 |
Balance at Sep. 30, 2014 | $961,138 | $912 | $860,564 | $0 | ($86,339) | $197,460 | ($11,459) |
Balance, shares at Sep. 30, 2014 | ' | 83,628,267 | ' | ' | ' | ' | ' |
Consolidated_Statement_of_Chan1
Consolidated Statement of Changes In Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' |
ESOP shares allocated or committed to be released for allocation, shares | ' | 49,932 | 49,932 |
Cash dividends paid (USD per share) | $0.21 | $0.30 | $0.24 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |||
Cash flows from operating activities: | ' | ' | ' | |||
Net income | $27,678 | $25,254 | $19,888 | |||
Adjustments to reconcile net income to net cash provided by operating activities | ' | ' | ' | |||
Provisions for loan losses | 19,100 | 12,150 | 10,612 | |||
(Gain) loss on other real estate owned | -1,208 | 1,285 | 694 | |||
(Gain) on redemption of Subordinated Debentures | -712 | 0 | 0 | |||
Depreciation of premises and equipment | 6,507 | 4,243 | 4,746 | |||
Impairment of premises and equipment | 11,043 | 0 | 0 | |||
Amortization of intangibles | 9,408 | 1,296 | 1,245 | |||
Amortization of low income housing tax credit | 520 | 0 | 0 | |||
Net gain on sale of securities | -641 | -7,391 | -10,452 | |||
Net gains on loans held for sale | -8,086 | -1,979 | -1,897 | |||
(Gain) loss on sale of premises and equipment | -93 | 75 | -75 | |||
Accretion of premiums on borrowings (includes calls on borrowings) | 3,176 | 2,068 | -1,006 | |||
Change in unamortized acquisition costs and premiums | 1,028 | 1,050 | 0 | |||
Accretion of premiums on borrowings (includes calls on borrowings) | -446 | 87 | -67 | |||
Amortization of payment fees on restructured borrowings | 1,302 | 1,466 | 1,459 | |||
ESOP and restricted stock expense | 2,803 | 1,544 | 667 | |||
Stock option compensation expense | 901 | 695 | 521 | |||
Originations of loans held for sale | -462,030 | -85,657 | -80,579 | |||
Proceeds from sales of loans held for sale | 483,622 | 94,130 | 79,147 | |||
Increase in cash surrender value of bank owned life insurance | -3,198 | -1,998 | -2,050 | |||
Deferred income tax (benefit) expense | -3,507 | 719 | -64 | |||
Other adjustments (principally net changes in other assets and other liabilities) | 40,497 | -26,413 | 2,237 | |||
Net cash provided by operating activities | 127,664 | 22,624 | 25,026 | |||
Cash flows from investing activities: | ' | ' | ' | |||
Available for sale | -407,438 | -490,160 | -679,553 | |||
Held to maturity | -172,899 | -169,320 | -95,157 | |||
Proceeds from maturities, calls and other principal payments on securities | ' | ' | ' | |||
Available for sale | 163,199 | 168,771 | 174,497 | |||
Held to maturity | 31,227 | 55,866 | 63,037 | |||
Proceeds from sales of securities available for sale | 529,107 | 339,123 | 344,431 | |||
Proceeds from sales of securities available for sale | 0 | [1] | 1,187 | [1] | 0 | [1] |
Loan originations | -659,013 | -310,615 | -226,616 | |||
Proceeds from sale of FHLB stock, net | -34,093 | -5,063 | -620 | |||
Proceeds from sales of other real estate owned | 9,645 | 4,730 | 3,468 | |||
Purchases of premises and equipment | -2,584 | -2,355 | -1,853 | |||
Proceeds from sale of Hudson Valley Investment Advisors | 0 | 4,738 | 0 | |||
Proceeds from the sale of fixed assets | 310 | 0 | 75 | |||
Purchase low income housing tax credit | -1,966 | 0 | 0 | |||
Cash received from Gotham acquisition | 277,798 | 0 | 126,818 | |||
Net cash provided by (used in) investing activities | -266,707 | -403,098 | -291,473 | |||
Cash flows from financing activities | ' | ' | ' | |||
Net increase in transaction, savings and money market deposits | 301,028 | -29,503 | 499,340 | |||
Net decrease in time deposits | -261,858 | -119,354 | -53,786 | |||
Net decrease in short-term borrowings | 103,000 | 91,528 | -5,000 | |||
Gross repayments of long-term borrowings | 147,506 | 24,783 | -5,244 | |||
Net (decrease) in repurchase agreements and other short-term borrowings | -37,177 | 0 | 0 | |||
Redemption of Subordinated Debentures | -26,140 | 0 | 0 | |||
Payments of pre-payment fees on FHLBNY advances | 0 | 0 | -278 | |||
Repayment of senior unsecured note | 0 | 0 | -51,499 | |||
Net proceeds from Senior Notes | 0 | 97,946 | 0 | |||
Net (decrease) increase in mortgage escrow funds | -8,152 | 727 | 2,218 | |||
Proceeds from Stock Options Exercised | 2,980 | 62 | 102 | |||
Other stock-based compensation transactions | 62 | 35 | 164 | |||
Capital raise | 0 | 0 | 46,000 | |||
Cash dividends paid | -17,677 | -10,642 | -9,100 | |||
Net cash provided by (used in) financing activities | 203,572 | 55,582 | 422,917 | |||
Net increase (decrease) in cash and cash equivalents | 64,529 | -324,892 | 156,470 | |||
Cash and cash equivalents at beginning of year | 113,090 | 437,982 | 281,512 | |||
Cash and cash equivalents at end of year | 177,619 | 113,090 | 437,982 | |||
Supplemental cash flow information: | ' | ' | ' | |||
Interest payments | 29,419 | 18,831 | 18,447 | |||
Income tax payments | 12,473 | 4,475 | 1,873 | |||
Loans transferred to other real estate owned | 2,542 | 5,634 | 6,148 | |||
Securities purchases settled in subsequent periods | 0 | 0 | 41,758 | |||
Dividends declared, not yet paid | 0 | 2,661 | 0 | |||
Non-cash assets acquired: | ' | ' | ' | |||
Investments available for sale | 233,190 | 0 | 54,994 | |||
Securities held to maturity | 374,721 | 0 | 0 | |||
Loans held for sale | 30,341 | 0 | 0 | |||
Total loans, net | 1,698,108 | 0 | 205,453 | |||
Loans FHLB Stock | 7,680 | 0 | 1,045 | |||
Accrued interest receivable | 6,590 | 0 | 417 | |||
Goodwill | 225,809 | 0 | 5,535 | |||
Trade name | 20,500 | 0 | 0 | |||
Core deposit intangibles | 20,089 | 0 | 4,818 | |||
Bank owned life insurance | 55,374 | 0 | 0 | |||
Premises and equipment, net | 23,594 | 0 | 490 | |||
Other real estate owned | 5,815 | 0 | 0 | |||
Other assets | 20,933 | 0 | 1,793 | |||
Total non-cash assets acquired | 2,722,744 | 0 | 274,545 | |||
Liabilities assumed: | ' | ' | ' | |||
Deposits | 2,297,190 | 0 | 368,902 | |||
FHLB and other borrowings | 100,619 | 0 | 30,784 | |||
Other borrowings | 62,465 | 0 | 0 | |||
Subordinated debentures | 26,527 | 0 | 0 | |||
Other liabilities | 55,960 | 0 | 1,677 | |||
Total liabilities assumed | 2,542,761 | 0 | 401,363 | |||
Net non-cash assets (liabilities) acquired | $179,983 | $0 | ($126,818) | |||
[1] | (1) During the fiscal year ended September 30, 2013, the Company sold held to maturity securities after the Company had already collected at least 85% of the principal balance outstanding at acquisition. |
Basis_of_Financial_Statement_P
Basis of Financial Statement Presentation and Summary of Significant Accounting Policies | 12 Months Ended | |
Sep. 30, 2014 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |
Basis of Financial Statement Presentation and Summary of Significant Accounting Policies | ' | |
Basis of Financial Statement Presentation and Summary of Significant Accounting Policies | ||
Merger with Sterling Bancorp | ||
On October 31, 2013, Provident New York Bancorp (“Legacy Provident”) merged with Sterling Bancorp (“Legacy Sterling”). In connection with the merger, the following corporate actions occurred: | ||
• | Legacy Sterling merged with and into Legacy Provident. Legacy Provident was the accounting acquirer and the surviving entity. | |
• | Legacy Provident changed its legal entity name to Sterling Bancorp and became a bank holding company and a financial holding company as defined by the Bank Holding Company Act of 1956, as amended (“Sterling” or the “Company”). | |
• | Provident Bank converted to a national bank charter. | |
• | Sterling National Bank merged into Provident Bank. | |
• | Provident Bank changed its legal entity name to Sterling National Bank. | |
• | Provident Municipal Bank merged into Sterling National Bank. | |
We refer to the transactions detailed above collectively as the “Merger.” | ||
The consolidated financial statements include the accounts of Sterling; STL Holdings, Inc. (formerly PBNY Holdings, Inc.) which has an investment in Sterling Silver Title Agency L.P. (formerly PB Madison Title Agency L.P.), a company that provides title searches and title insurance for residential and commercial real estate; LandSave Development, LLC an inactive subsidiary, which was dissolved on September 30, 2014; Sterling Risk Management, Inc. (formerly Provident Risk Management, Inc., a captive insurance company); Sterling National Bank (the “Bank”) and the Bank’s wholly-owned subsidiaries. These subsidiaries included at September 30, 2014: (i) Sterling REIT, Inc. a real estate investment trust that holds a portion of the Company’s real estate loans; (ii) Provest Services Corp. I, which has invested in a low-income housing partnership; (iii) Provest Services Corp. II, which has engaged a third-party provider to sell mutual funds and annuities to the Bank’s customers and (iv) several limited liability companies which hold other real estate owned. Intercompany transactions and balances are eliminated in consolidation. | ||
The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. Certain amounts from prior years have been reclassified to conform to the current fiscal year presentation. Reclassifications had no affect on prior year net income or stockholders’ equity. | ||
(a) Nature of Business | ||
Since October 31, 2013, Sterling is a bank holding company and financial holding company under the Bank Holding Company Act of 1956. Sterling is a Delaware corporation that owns all of the outstanding shares of the Bank. Sterling is listed on the New York Stock Exchange (“NYSE”) under the symbol STL. | ||
The Bank, an independent, full-service bank founded in 1888, is headquartered in Montebello, New York and is the principal bank subsidiary of Sterling. The Bank accounts for substantially all of Sterling’s consolidated assets and net income. The Bank operates through commercial banking teams and financial centers which serve the greater New York metropolitan region. The Bank targets the following geographic markets: (i) the New York Metro Market, which includes Manhattan and Long Island; and (ii) the New York Suburban Market, which consists of Rockland, Orange, Sullivan, Ulster, Putnam and Westchester counties in New York and Bergen County in New Jersey. | ||
The Bank’s principal business is accepting deposits and, together with funds generated from operations and borrowings, investing in various types of loans and securities. In connection with the Merger, the Bank became a national bank and its deposits are insured up to applicable limits by the Deposit Insurance Fund of the Federal Deposit Insurance Corporation (“FDIC”). The Office of the Comptroller of the Currency (“OCC”) and the Federal Reserve Board are the primary regulators for the Bank and the Company, respectively. | ||
(b) Use of estimates | ||
The consolidated financial statements have been prepared in conformity with GAAP. In preparing the consolidated financial statements, the Company is required to make estimates and assumptions that affect the reported amounts of assets, liabilities, income and expense. Actual results could differ significantly from these estimates. An estimate that is particularly susceptible to significant near-term change is the allowance for loan losses, which is discussed below. Also subject to change are estimates involving goodwill impairment evaluations, mortgage servicing rights, benefit plans, deferred income taxes and fair values of financial instruments. | ||
(c) Cash Flows | ||
For purposes of reporting cash flows, cash equivalents include highly liquid, short-term investments such as overnight federal funds, as well as cash and deposits with other financial institutions. Net cash flows are reported for customer loan and deposit transactions and short-term borrowings with an original maturity of 90 days or less. | ||
(d) Restrictions on Cash | ||
The Bank was required to have $28.7 million and $14.6 million of cash on hand or on deposit with the Federal Reserve Bank to meet regulatory reserve and clearing requirements at September 30, 2014 and 2013. | ||
(e) Long-Term Assets | ||
Premises and equipment, core deposit and other intangible assets are reviewed annually for impairment or when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. | ||
(f) Fair Values of Financial Instruments | ||
Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. (See Note 17. “Fair Value Measurements”) | ||
(g) Adoption of New Accounting Standards | ||
Accounting Standards Update (ASU) 2014-01 - Investments - Equity method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects was issued. This standard provides reporting guidance for entities that invest in qualified affordable housing projects through limited liability entities that are flow through entities for tax purposes. The amendments in this ASU eliminate the effective yield election and permit the Company to make an accounting policy election to account for its investment in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, the Company amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the statement of operations as a component of income tax expense. The amendments in this ASU should be applied retrospectively to all periods presented. The Company adopted this ASU in the quarter ended March 31, 2014, which coincided with the Company’s initial recognition of low income housing tax credits. The adoption of this ASU resulted in a $508 income tax benefit and a $520 expense associated with the amortization of the Company’s investment for the fiscal year ended September 30, 2014. | ||
(h) Securities | ||
Securities include U.S. Treasury, U.S. Government Agency and Government Sponsored Agencies, municipal and corporate bonds, mortgage-backed securities, collateralized mortgage obligations and trust preferred securities. | ||
The Company can classify its securities among three categories: held to maturity, trading, and available for sale. The Company determines the appropriate classification of the Company’s securities at the time of purchase. | ||
Held to maturity securities are limited to debt securities for which there is the intent and the ability to hold to maturity. These securities are reported at amortized cost. | ||
Trading securities are debt and equity securities held principally for the purpose of selling them in the near-term. These securities are reported at fair value, with unrealized gains and losses included in earnings. The Company does not engage in securities trading activities. | ||
All other debt and marketable equity securities are classified as available for sale. These securities are reported at fair value, with unrealized gains and losses (net of the related deferred income tax effect) excluded from earnings and reported in a separate component of stockholders’ equity (accumulated other comprehensive income or loss). Available for sale securities include securities that the Company intends to hold for an indefinite period of time, such as securities to be used as part of the Company’s asset/liability management strategy or securities that may be sold to fund loan growth, in response to changes in interest rates, changes in prepayment risks, the need to increase capital, or similar factors. | ||
Premiums and discounts on debt securities are recognized in interest income on a level yield basis over the period to maturity. Amortization of premiums and accretion of discounts on mortgage-backed securities are based on the estimated cash flows of the mortgage-backed securities, periodically adjusted for changes in estimated lives, on a level yield basis. The cost of securities sold is determined using the specific identification method. | ||
Securities are evaluated for impairment at least quarterly, and more frequently when economic and market conditions warrant such an evaluation. For securities in an unrealized loss position, we consider the extent and duration of the unrealized loss, and the financial condition of the issuer. The Company also assesses whether it intends to sell, or is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either criteria regarding intent to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. If the Company does not expect to recover the entire amortized cost basis of the security, the Company does not intend to sell the security and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, the other than temporary impairment is separated into a) the amount representing the credit loss and b) the amount related to all other factors. The amount of other than temporary impairment related to credit loss is recognized in earnings while the amount related to other factors is recognized in other comprehensive income, net of applicable taxes. The cost basis of individual equity securities is written down to estimated fair value through a charge to earnings when declines in value below cost are considered to be other than temporary. As of September 30, 2014, the Company does not intend to sell nor is it more likely than not that it would be required to sell any of its debt securities with unrealized losses prior to recovery of its amortized cost basis less any current period credit loss. | ||
(i) Loans Held For Sale | ||
Mortgage loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value, as determined by outstanding commitments from investors. In the absence of commitments from investors, fair value is based on current investor yield requirements. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. | ||
Historically mortgage loans held for sale were generally sold with servicing rights retained. The carrying value of mortgage loans sold is reduced by the amount allocated to the value of the servicing rights which is its fair value. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold. | ||
(j) Servicing Rights | ||
When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. | ||
Under the amortization measurement method, the Company subsequently measures servicing rights at fair value at each reporting date and records any impairment in value of servicing assets in earnings in the period in which the impairment occurs. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. | ||
Servicing fee income, which is reported on the income statement as other income, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan, and are recorded as income when earned. Servicing fees totaled $911, $778 and $695 for the years ended September 30, 2014, 2013 and 2012, respectively. Late fees and ancillary fees related to loan servicing are not material. Effective October 1, 2013, the Bank outsourced servicing of residential mortgage loans to a nationally recognized mortgage loan servicing company. | ||
(k) Loans | ||
Loans where Sterling has the intent and ability to hold for the foreseeable future or until maturity or payoff (other than loans held for sale) are reported at amortized cost less the allowance for loan losses. Interest income on loans is accrued on the unpaid principal balance. | ||
A loan is placed on non-accrual status upon the earlier of (i) when Sterling determines that the borrower may likely be unable to meet contractual principal or interest obligations, or (ii) when payments are 90 days or more past due, unless well secured and in the process of collection. Accrual of interest ceases and, in general, uncollected past due interest is reversed and charged against current interest income. Interest payments received on non-accrual loans, including impaired loans, are not recognized as income unless warranted based on the borrower’s financial condition and payment record. Furthermore, negative tax escrow will be included in the unpaid principal for loans individually evaluated for impairment, as this is part of the customer’s legal obligation to the Company. | ||
The Company defers nonrefundable loan origination and commitment fees, and certain direct loan origination costs, and amortizes the net amount as an adjustment of the yield over the estimated life of the loan. If a loan is prepaid or sold, the net deferred amount is recognized in the statement of income at that time. Interest and fees on loans include prepayment fees and late charges collected. | ||
(l) Allowance for Loan Losses | ||
The allowance for loan losses is a reserve established through a provision for loan losses charged to expense, which represents management’s best estimate of probable incurred credit losses inherent in the loan portfolio. The allowance for loan losses is a critical accounting estimate and requires substantial judgment of management. The allowance for loan losses includes allowance allocations calculated in accordance with ASC Subtopic 450-20, “Loss Contingencies” and ASC Subtopic 310-35-2, “Loan Impairment.” The level of the allowance reflects management’s continuing evaluation of loan loss experience, specific credit risks, current loan portfolio quality, industry and loan type concentrations, economic and regulatory conditions and unidentified losses inherent in the loan portfolios, as well as trends in the foregoing. The Company analyzes loans by two broad segments: real estate secured loans and loans that are either unsecured or secured by other collateral. | ||
The classes considered real estate secured are: residential mortgage loans; commercial real estate (“CRE”) loans; business banking CRE; multi-family loans; acquisition, development and construction (“ADC”) loans; homeowner loans, and home equity lines of credit. The classes considered unsecured or secured by other than real estate collateral are: commercial & industrial (“C&I”) loans; payroll finance loans, warehouse lending; factored receivables; equipment finance loans; business banking C&I loans and consumer loans. In all segments or classes, significant loans are reviewed for impairment once they are past due 90 days or more or are classified substandard or doubtful. Generally the Company considers a homogeneous residential mortgage or home equity line of credit to be significant if the Company’s investment in the loan is greater than $500. If a loan is deemed to be impaired in one of the real estate secured segment, it is generally considered collateral dependent. If the value of the collateral securing a collateral dependent impaired loan is less than the loan’s carrying value, a charge-off is recognized equal to the difference between the appraised value and the book value of the loan. Additionally, impairment reserves are recognized for estimated costs to hold and liquidate and for a 10% discount on the appraisal value. The range for costs to hold and liquidate is 12-22% for CRE, business banking CRE and ADC loans and is 7-13% for homeowner loans, home equity lines of credit, and residential mortgage loans. Impaired loans in the real estate secured segments are re-appraised using a summary or drive-by appraisal report every six to nine months. | ||
For loans in the business banking C&I class we charge-off the full amount of the loan when it becomes 90 days or more past due, or earlier in the case of bankruptcy, after giving effect to any cash or marketable securities pledged as collateral for the loan. For other classes of C&I loans, we prepare a cash flow projection, and charge-off the difference between the net present value of the cash flows discounted at the effective note rate and the carrying value of the loan, and generally recognize a 10% impairment reserve to account for the potential imprecision of our estimates. However, on most of these cases receipt of future cash flows is too unreliable to be considered probable, resulting in the charge-off of the entire balance of the loan. For unsecured consumer loans, charg0- offs are recognized once the loan is 90 to 120 days or more past due or the borrower files for bankruptcy protection. | ||
Subsequent recoveries, if any, are credited to the allowance for loan losses. The allowance for loan losses consists of amounts specifically allocated to non-performing loans and other criticized or classified loans (if any), as well as allowances determined for the pass rated loans in each major loan category. After we establish an allowance for loan losses for loans that are known to be non-performing, criticized or classified, we calculate a percentage to apply to the remaining loan portfolio to estimate the probable incurred losses inherent in that portion of the portfolio. These percentages are determined by management, based on historical loss experience for the applicable loan class, and are adjusted to reflect our evaluation of: | ||
•levels of, and trends in, delinquencies and non-accruals; | ||
•trends in volume and terms of loans; | ||
•effects of any changes in lending policies and procedures; | ||
•experience, ability, and depth of lending management and staff; | ||
•national and local economic trends and conditions; | ||
• | concentrations of credit by such factors as location, industry, inter-relationships, and borrower; and for commercial loans, trends in risk ratings. | |
Commercial real estate loans subject us to the risks that the property securing the loan may not generate sufficient cash flow to service the debt or the borrower may use the cash flow for other purposes. In addition, if necessary, the foreclosure process may be slow and properties may deteriorate in the process. The market values are also subject to a wide variety of factors, including general economic conditions, industry specific factors, environmental factors, interest rates and the availability and terms of credit. | ||
Commercial business lending presents a risk because repayment depends on the successful operation of the business which is subject to a wide range of risks and uncertainties. In addition, the ability to successfully liquidate collateral, if any, is subject to a variety of risks because we must gain control of assets used in the borrower’s business before foreclosing which we cannot be assured of doing, and the value in a foreclosure sale or other means of liquidation is uncertain. | ||
Acquisition, development and construction (“ADC”) lending is considered higher risk and exposes us to greater credit risk than permanent mortgage financing. The repayment of ADC loans depends upon the sale of the property to third parties or the availability of permanent financing upon completion of all improvements. In the event we make a land acquisition loan on property that is not yet approved for the planned development, there is the risk that approvals will not be granted or will be delayed. These events may adversely affect the borrower and the collateral value of the property. Development and construction loans also expose us to the risk that improvements will not be completed on time or in accordance with specifications and projected costs. In addition, the ultimate sale or rental of the property may not occur as anticipated. All of these factors are considered as part of the underwriting, structuring and pricing of the loan. We have deemphasized this type of lending. | ||
When we evaluate residential mortgage loans and home equity loans we weigh both the credit capacity of the borrower and the collateral value of the home. If unemployment or underemployment increase, the credit capacity of underlying borrowers will decrease, which increases our risk. Similarly, as we obtain a mortgage on the property, if home prices decline, we are exposed to risk in both our first mortgage and equity lending programs due to declines in the value of our collateral. We are also exposed to risk because the time to foreclose is significant and has become longer under current market conditions. | ||
(m) Troubled Debt Restructuring | ||
Troubled debt restructuring (“TDR”) is a formally renegotiated loan in which the Bank, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to the borrower that would not have been granted to the borrower otherwise. Not all loans that are restructured as a TDR are classified as non-accrual before the restructuring occurs. Restructured loans can convert from non-accrual to accrual status when said loans have demonstrated performance, generally evidenced by six months of consistent payment performance in accordance with the restructured terms, or by the presence of other significant items. | ||
(n) Federal Reserve Bank of New York and Federal Home Loan Bank Stock | ||
As a member of the Federal Reserve Bank of New York (“FRB”) and the Federal Home Loan Bank of New York (“FHLB”), the Bank is required to hold a certain amount of FRB and FHLB common stock. This stock is a non-marketable equity security and, is reported at cost. | ||
(o) Premises and Equipment | ||
Land is reported at cost, while premises and equipment are reported at cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets, which range from three years for equipment and 40 years for premises. Leasehold improvements are amortized on a straight-line basis over the terms of the respective leases, including renewal options, or the estimated useful lives of the improvements, whichever is shorter. Routine holding costs are charged to expense as incurred, while significant improvements are capitalized. The Company recognizes an impairment charge based on the excess of the carrying amount of assets (generally assets associated with a financial center) over the fair value of the assets. Fair value is determined by third-party valuations and evaluations prepared by management. For the fiscal year ended September 30, 2014, the Company recognized premises and equipment impairment charges of $9.3 million related to financial center consolidations as a result of the Merger. These charges were included in other non-interest expense in the income statement. | ||
(p) Goodwill, Trade Names and Other Intangible Assets | ||
Goodwill resulting from business combinations represents the excess of the purchase price over the fair value of the net assets of businesses acquired. Goodwill and trade names acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually. Goodwill and trade name are the only intangible assets with an indefinite life on our balance sheet. | ||
The Company accounts for goodwill, trade names and other intangible assets in accordance with GAAP, which, in general, requires that goodwill and trade names not be amortized, but rather that they be tested for impairment at least annually at the reporting unit level. The Company has the option to first perform a qualitative assessment to test goodwill for impairment on a reporting-unit-by-reporting-unit basis. If, after performing the qualitative assessment, the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company will perform the two-step process described below: | ||
1 | Identify potential impairments by comparing the fair value of a reporting unit to its carrying amount, including goodwill. Goodwill is not considered impaired as long as the fair value of the reporting unit is greater than its carrying value. The second step is only required if a potential impairment to goodwill is identified in step one. | |
2 | Compare the implied fair value of goodwill to its carrying amount, where the implied fair value of goodwill is computed on a residual basis, that is, by subtracting the sum of the fair values of the individual asset categories (tangible and intangible) from the indicated fair value of the reporting unit as determined under step one. If the carrying amount of goodwill exceeds its implied fair value, an impairment loss is recognized. That loss is equal to the carrying amount of goodwill that is in excess of its implied fair value, and it must be presented as a separate line item on financial statements. | |
At September 30, 2014, the Company assessed goodwill for impairment using qualitative factors and concluded the two-step process was unnecessary. | ||
Core deposit intangibles recorded in acquisitions are amortized to expense using an accelerated method over their estimated lives of 8 to 10 years. Non-compete agreements are amortized on a straight line basis over their estimated life. Prior to March 31, 2014, intangibles related to the naming rights on Provident Bank Ball Park were amortized over 10 years on a straight-line basis. Impairment losses on intangible assets are charged to expense, if and when they occur. | ||
(q) Other Real Estate Owned | ||
Real estate properties acquired through loan foreclosures are recorded initially at estimated fair value, less expected sales costs, with any resulting write-down charged to the allowance for loan losses. Other real estate owned also includes the fair value of the Bank’s financial centers that are held for sale. Any write-down associated with the transfer of a financial center from premises and equipment to other real state owned was included as a charge to other non-interest income in the income statement. Subsequent valuations of other real estate owned are performed by management, and the carrying amount of a property is adjusted by a charge to expense to reflect any subsequent declines in estimated fair value. Fair value estimates are based on recent appraisals and other available information. Routine holding costs are charged to expense as incurred, while significant improvements are capitalized. Gains and losses on sales of real estate owned properties are recognized upon disposition. | ||
(r) Securities Repurchase Agreements | ||
In securities repurchase agreements, the Company transfers securities to a counterparty under an agreement to repurchase the identical securities at a fixed price on a future date. These agreements are accounted for as secured financing transactions since the Company maintains effective control over the transferred securities and the transfer meets other specified criteria. Accordingly, the transaction proceeds are recorded as borrowings and the underlying securities continue to be carried in the Company’s investment securities portfolio. Disclosure of the pledged securities is made in the consolidated balance sheets if the counterparty has the right by contract to sell or re-pledge such collateral. | ||
(s) Income Taxes | ||
Net deferred taxes are recognized for the estimated future tax effects attributable to “temporary differences” between the financial statement carrying amounts and the tax bases of existing assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax laws or rates is recognized in income tax expense in the period that includes the enactment date of the change. | ||
A deferred tax liability is recognized for all temporary differences that will result in future taxable income. A deferred tax asset is recognized for all temporary differences that will result in future tax deductions, subject to reduction of the asset by a valuation allowance in certain circumstances. This valuation allowance is recognized if, based on an analysis of available evidence, we determine that it is more likely than not that some portion, or all of the deferred tax asset will not be realized. | ||
The valuation allowance is subject to ongoing adjustment based on changes in circumstances that affect management’s judgment about the realizability of the deferred tax asset. Adjustments to increase or decrease the valuation allowance are charged or credited, respectively, to income tax expense. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. | ||
The Company evaluates uncertain tax positions in a two step process. The first step is recognition, which requires a determination of whether it is more likely than not that a tax position will be sustained upon examination. The second step is measurement. Under the measurement step, a tax position that meets the more likely than not recognition threshold is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more likely than not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. A previously recognized tax position that no longer meets the more likely than not recognition threshold should be derecognized in the first subsequent financial reporting period in which the threshold is no longer met. The Company did not have any such position as of September 30, 2014. (See Note 10 “Income Taxes”). | ||
(t) Bank Owned Life Insurance (BOLI) | ||
The Company owns life insurance policies (purchased and acquired) on certain officers and key executives. Bank owned life insurance is recorded at its cash surrender value (or the amount that can be realized). | ||
(u) Stock-Based Compensation Plans | ||
Compensation expense for stock options, non-vested stock awards/stock units is based on the fair value of the award on the measurement date, which is the date of grant. The expense is recognized ratably over the service period of the award. The fair value of stock options is estimated using a Black-Scholes valuation model. the fair value of non-vested stock awards/stock units is generally the market price of the Company’s common stock on the date of grant. | ||
(v) Earnings Per Share | ||
Basic earnings per share (“EPS”) is computed by dividing net income applicable to common stock by the weighted average number of common shares outstanding during the period. | ||
Diluted EPS is computed in a similar manner, except that the weighted average number of common shares is increased to include incremental shares (computed using the treasury stock method) that would have been outstanding if all potentially dilutive stock options were exercised and unvested restricted stock became vested during the periods. For purposes of computing both basic and diluted EPS, outstanding shares include earned ESOP shares. | ||
(w) Segment Information | ||
Public companies are required to report certain financial information about significant revenue-producing segments of the business for which such information is available and utilized by the chief operating decision maker. Substantially all of the Company’s operations occur through the Bank and involve the delivery of loan and deposit products to customers. Management makes operating decisions and assesses performance based on an ongoing review of its banking operation, which constitutes the Company’s only operating segment for financial reporting purposes. | ||
(x) Loss Contingencies | ||
Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. The Company does not believe there are such matters that will have a material effect on the financial statements. | ||
(y) Derivatives | ||
At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company’s intentions and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), or (3) an instrument with no hedging designation (“stand-alone derivative”). For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same period during which the hedged transaction affects earnings. For both types of hedges, changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as non-interest income. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. | ||
The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. | ||
When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as non-interest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings. | ||
(z) Loan Commitments and Related Financial Instruments | ||
Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. |
Acquisitions
Acquisitions | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Business Combinations [Abstract] | ' | |||||||||||
Acquisitions | ' | |||||||||||
Acquisitions | ||||||||||||
On October 31, 2013, the Company completed the Merger. Under the terms of the Agreement and Plan of Merger, Legacy Sterling shareholders received 1.2625 shares of Legacy Provident’s common stock, par value $0.01 per share, for each share of Legacy Sterling common stock, which resulted in the issuance of 39,057,968 shares. Based on the closing stock price of $11.72 per share on October 31, 2013, the aggregate consideration paid to Legacy Sterling shareholders was $457,781, including $23 paid in cash for fractional shares, and $6 which represented outstanding vested stock options. Consistent with the Company’s strategy, the primary reason for the Merger was the expansion of the Company’s geographic footprint and diversification of its business in the greater New York metropolitan region and beyond. | ||||||||||||
The assets acquired and liabilities assumed were accounted for under the acquisition method of accounting. The assets and liabilities, both tangible and intangible, were recorded at their fair values as of October 31, 2013 based on management’s best estimate using the information available as of the Merger date. The application of the acquisition method of accounting resulted in the recognition of goodwill of $225,809, a core deposit intangible of $20,089 and a trade name intangible of $20,500. As of October 31, 2013, Legacy Sterling had assets with a book value of approximately $2,759,628, loans including loans held for sale with a book value of approximately $1,735,142, and deposits with a book value of approximately $2,296,713. The table below summarizes the amounts recognized as of the Merger date for each major class of assets acquired and liabilities assumed, the estimated fair value adjustments and the amounts recorded in the Company’s financial statements at fair value at the Merger date: | ||||||||||||
Consideration paid through Sterling Bancorp common stock issued to Legacy Sterling shareholders | $ | 457,781 | ||||||||||
Legacy Sterling carrying value | Fair value adjustments | As recorded at acquisition | ||||||||||
Cash and cash equivalents | $ | 277,798 | $ | — | $ | 277,798 | ||||||
Investment securities | 613,154 | (5,243 | ) | (a) | 607,911 | |||||||
Loans held for sale | 30,341 | — | 30,341 | |||||||||
Loans | 1,704,801 | (6,693 | ) | (b) | 1,698,108 | |||||||
Federal Reserve Bank stock | 7,680 | — | 7,680 | |||||||||
Bank owned life insurance | 55,374 | — | 55,374 | |||||||||
Premises and equipment | 21,293 | 2,301 | (c) | 23,594 | ||||||||
Accrued interest receivable | 6,590 | — | 6,590 | |||||||||
Core deposit and other intangibles | — | 20,089 | (d) | 20,089 | ||||||||
Trade name intangible | — | 20,500 | (e) | 20,500 | ||||||||
Other real estate owned | 1,720 | 4,095 | (f) | 5,815 | ||||||||
Other assets | 40,877 | (19,944 | ) | (g) | 20,933 | |||||||
Deposits | (2,296,713 | ) | (477 | ) | (h) | (2,297,190 | ) | |||||
FHLB borrowings | (100,346 | ) | (273 | ) | (i) | (100,619 | ) | |||||
Other borrowings | (62,465 | ) | — | (62,465 | ) | |||||||
Subordinated Debentures | (25,774 | ) | (753 | ) | (j) | (26,527 | ) | |||||
Other liabilities | (60,462 | ) | 4,502 | (k) | (55,960 | ) | ||||||
Total identifiable net assets | $ | 213,868 | $ | 18,104 | $ | 231,972 | ||||||
Goodwill recorded in the Merger | 225,809 | |||||||||||
Goodwill at September 30, 2013 | 163,117 | |||||||||||
Goodwill at September 30, 2014 | $ | 388,926 | ||||||||||
Explanation of certain fair value related adjustments: | ||||||||||||
(a) | Represents the fair value adjustment on investment securities held to maturity. | |||||||||||
(b) | Represents the elimination of Legacy Sterling’s allowance for loan losses and an adjustment of the amortized cost of loans to estimated fair value, which includes an interest rate mark and credit mark. Gross loans acquired were $1,723,447; of the acquired loans, $1,699,271 were not considered purchased credit impaired and we recorded a fair value adjustment of $14,440. | |||||||||||
(c) | Represents an adjustment to reflect the fair value of leasehold improvements. | |||||||||||
(d) | Represents intangible assets recorded to reflect the fair value of core deposits and below market rent on leased premises. The core deposit asset was recorded as an identifiable intangible asset and will be amortized on an accelerated basis over the estimated average life of the deposit base. The below market rent intangible asset will be amortized on a straight-line basis over the remaining term of the leases. | |||||||||||
(e) | Represents the estimated fair value of Legacy Sterling’s trade name. This intangible asset will not be amortized and will be reviewed at least annually for impairment. | |||||||||||
(f) | Represents an adjustment to an acquired property which Legacy Sterling utilized as a financial center and recorded as premises and equipment. The Company included this asset in OREO as it was held for sale. This asset was sold during the fiscal year ended September 30, 2014. | |||||||||||
(g) | Consists primarily of adjustments in net deferred tax assets resulting from the fair value adjustments related to the acquired assets, liabilities assumed and identifiable intangibles recorded. | |||||||||||
(h) | Represents the fair value adjustment on deposits as the weighted average interest rate of deposits assumed exceeded the cost of similar funding available in the market at the time of the Merger. | |||||||||||
(i) | Represents the fair value adjustment on FHLB borrowings as the weighted average interest rate of FHLB borrowings assumed exceeded the cost of similar funding available in the market at the time of the Merger. | |||||||||||
(j) | Represents the fair value adjustment on subordinated debentures as the weighted average interest rate of the debentures assumed exceeded the cost of similar debt funding available in the market at the time of the Merger. | |||||||||||
(k) | Represents the fair value of other liabilities assumed at the Merger date. | |||||||||||
Except for collateral dependent loans with deteriorated credit quality, the fair values for loans acquired from Legacy Sterling were estimated using cash flow projections based on the remaining maturity and repricing terms. Cash flows were adjusted by estimating future credit losses and the rate of prepayments. Projected monthly cash flows were then discounted to present value using a risk-adjusted market rate for similar loans. For collateral dependent loans with deteriorated credit quality, fair value was estimated by analyzing the value of the underlying collateral, assuming the fair values of the loans were derived from the eventual sale of the collateral. These values were discounted using market derived rates of return, with consideration given to the period of time and costs associated with the foreclosure and disposition of the collateral. There was no carryover of Legacy Sterling’s allowance for loan losses associated with the loans that were acquired, as the loans were initially recorded at fair value on the date of the Merger. | ||||||||||||
The impaired loans acquired in the Merger as of October 31, 2013 were accounted for in accordance with ASC Topic 310-30 Accounting for Certain Loans or Debt Securities Acquired in a Transfer (“ASC 310-30”) and were comprised of collateral dependent loans with deteriorated credit quality as follows: | ||||||||||||
ASC 310-30 loans | ||||||||||||
Contractual principal balance at acquisition | $ | 24,176 | ||||||||||
Principal not expected to be collected (non-accretable discount) | (10,927 | ) | ||||||||||
Expected cash flows at acquisition | 13,249 | |||||||||||
Interest component of expected cash flows (accretable discount) | — | |||||||||||
Fair value of acquired loans | $ | 13,249 | ||||||||||
The core deposit intangible asset recognized is being amortized over its estimated useful life of approximately 10 years utilizing the accelerated method. Other intangibles consist of below market rents which are amortized over the remaining life of each lease using the straight-line method. | ||||||||||||
Goodwill is not amortized for book purposes; however, it is reviewed at least annually for impairment and is not deductible for tax purposes. | ||||||||||||
The fair value of premises and equipment and other real estate owned was estimated using appraisals of like kind properties and assets. Premises, equipment and leasehold improvements will be amortized or depreciated over their estimated useful lives ranging from one to five years for equipment or over the life of the lease for leasehold improvements. Other real estate owned is not amortized and is carried at estimated fair value determined by the appraised value less costs to sell. | ||||||||||||
The fair value of retail demand and interest bearing deposit accounts was assumed to approximate the carrying value as these accounts have no stated maturity and are payable on demand. The fair value of time deposits was estimated by discounting the contractual future cash flows using market rates offered for time deposits of similar remaining maturities. The fair value of borrowed funds was estimated by discounting the future cash flows using market rates for similar borrowings. | ||||||||||||
Direct acquisition and integration costs of the Merger were expensed as incurred and totaled $9,455 and $2,772, for the fiscal years ended September 30, 2014 and 2013, respectively. These items were recorded as Merger-related expenses in the income statement. Other direct integration costs of the Merger for the fiscal year ended September 30, 2014, totaled $26,591 and included a charge for asset write-downs, banking systems conversion, employee retention and severance compensation. These items were recorded in non-interest expense in the income statement. | ||||||||||||
The following table presents selected unaudited pro forma financial information reflecting the Merger assuming it was completed as of October 1, 2012. The unaudited pro forma financial information is presented for illustrative purposes only and is not necessarily indicative of the financial results of the combined companies had the Merger actually been completed at the beginning of the periods presented, nor does it indicate future results for any other interim or full fiscal year period. Pro forma basic and diluted earnings per common share were calculated using the Company’s actual weighted average shares outstanding for the periods presented, plus the incremental shares issued, assuming the Merger occurred at the beginning of the periods presented. The unaudited pro forma information is based on the actual financial statements of the Company for the periods presented, and on the actual financial statements of Legacy Sterling for the 2012 period presented and in 2013 until the date of the Merger, at which time Legacy Sterling’s results of operations were included in the Company’s financial statements. | ||||||||||||
The unaudited pro forma information set forth below for the fiscal years ended September 30, 2014 and 2013, reflects adjustments related to (a) purchase accounting fair value adjustments; (b) amortization of core deposit and other intangibles; and (c) adjustments to interest income and expense due to amortization of premiums and accretion of discounts. Direct Merger-related expenses and charges incurred in fiscal years ended September 30, 2014 and 2013 to write-down assets and accrue for retention and severance compensation are assumed to have occurred prior to October 1, 2012. Furthermore, the unaudited pro forma information does not reflect management’s estimate of any revenue enhancement opportunities or anticipated potential cost savings. | ||||||||||||
Pro forma for the | ||||||||||||
fiscal year ended September 30, | ||||||||||||
2014 | 2013 | |||||||||||
Net interest income | $ | 198,776 | $ | 180,030 | ||||||||
Non-interest income | 54,396 | 65,749 | ||||||||||
Non-interest expense | 187,306 | 189,136 | ||||||||||
Net income | 44,460 | 39,190 | ||||||||||
Pro forma earnings per share: | ||||||||||||
Basic | $ | 0.53 | $ | 0.47 | ||||||||
Diluted | 0.53 | 0.47 | ||||||||||
On August 10, 2012, the Company acquired 100% of the outstanding common shares of Gotham Bank of New York (“Gotham”) in exchange for $40,510 in cash. Under the terms of the acquisition, common shareholders received cash equal to 125% of adjusted tangible net worth. The acquisition of Gotham provided a strategic expansion into the metropolitan New York City market, enabling the Company to grow its small-to-middle market commercial business. Gotham delivered a core asset and deposit base, long-term client relationships, an advantageous location in midtown Manhattan and an initial commercial banking team. Gotham’s results of operations are included in the Company’s results for all periods presented in these financial statements. |
Securities
Securities | 12 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||||||||||
Securities | ' | |||||||||||||||||||||||||||||||
Securities | ||||||||||||||||||||||||||||||||
A summary of amortized cost and estimated fair value of our securities is presented below: | ||||||||||||||||||||||||||||||||
30-Sep-14 | 30-Sep-13 | |||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | Amortized | Gross | Gross | Fair | |||||||||||||||||||||||||
cost | unrealized | unrealized | value | cost | unrealized | unrealized | value | |||||||||||||||||||||||||
gains | losses | gains | losses | |||||||||||||||||||||||||||||
Available for Sale | ||||||||||||||||||||||||||||||||
Residential MBS: | ||||||||||||||||||||||||||||||||
Agency-backed | $ | 477,003 | $ | 2,257 | $ | (1,555 | ) | $ | 477,705 | $ | 284,837 | $ | 1,849 | $ | (4,157 | ) | $ | 282,529 | ||||||||||||||
CMO/Other MBS | 115,395 | 242 | (1,492 | ) | 114,145 | 169,336 | 356 | (3,038 | ) | 166,654 | ||||||||||||||||||||||
Total residential MBS | 592,398 | 2,499 | (3,047 | ) | 591,850 | 454,173 | 2,205 | (7,195 | ) | 449,183 | ||||||||||||||||||||||
Other securities: | ||||||||||||||||||||||||||||||||
Federal agencies | 158,114 | 3 | (5,303 | ) | 152,814 | 273,637 | — | (12,090 | ) | 261,547 | ||||||||||||||||||||||
Corporate | 195,547 | 149 | (2,857 | ) | 192,839 | 118,575 | 153 | (3,795 | ) | 114,933 | ||||||||||||||||||||||
State and municipal | 131,715 | 3,439 | (256 | ) | 134,898 | 127,324 | 3,447 | (2,041 | ) | 128,730 | ||||||||||||||||||||||
Trust preferred | 37,684 | 766 | (38 | ) | 38,412 | — | — | — | — | |||||||||||||||||||||||
Total other securities | 523,060 | 4,357 | (8,454 | ) | 518,963 | 519,536 | 3,600 | (17,926 | ) | 505,210 | ||||||||||||||||||||||
Total available for sale | $ | 1,115,458 | $ | 6,856 | $ | (11,501 | ) | $ | 1,110,813 | $ | 973,709 | $ | 5,805 | $ | (25,121 | ) | $ | 954,393 | ||||||||||||||
September 30, 2014 | 30-Sep-13 | |||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | Amortized | Gross | Gross | Fair | |||||||||||||||||||||||||
cost | unrealized gains | unrealized losses | value | cost | unrealized gains | unrealized losses | value | |||||||||||||||||||||||||
Held to Maturity | ||||||||||||||||||||||||||||||||
Residential MBS: | ||||||||||||||||||||||||||||||||
Agency-backed | $ | 142,329 | $ | 1,360 | $ | (103 | ) | 143,586 | 130,371 | 716 | (108 | ) | 130,979 | |||||||||||||||||||
CMO/Other MBS | 62,690 | 9 | (1,204 | ) | 61,495 | 25,776 | 33 | (315 | ) | 25,494 | ||||||||||||||||||||||
Total residential MBS | 205,019 | 1,369 | (1,307 | ) | 205,081 | 156,147 | 749 | (423 | ) | 156,473 | ||||||||||||||||||||||
Other securities: | ||||||||||||||||||||||||||||||||
Federal agencies | 136,413 | 2,634 | (962 | ) | 138,085 | 77,341 | — | (3,458 | ) | 73,883 | ||||||||||||||||||||||
State and municipal | 232,643 | 6,814 | (123 | ) | 239,334 | 19,011 | 556 | (546 | ) | 19,021 | ||||||||||||||||||||||
Other | 5,000 | 338 | — | 5,338 | 1,500 | 19 | — | 1,519 | ||||||||||||||||||||||||
Total other securities | 374,056 | 9,786 | (1,085 | ) | 382,757 | 97,852 | 575 | (4,004 | ) | 94,423 | ||||||||||||||||||||||
Total held to maturity | $ | 579,075 | $ | 11,155 | $ | (2,392 | ) | $ | 587,838 | $ | 253,999 | $ | 1,324 | $ | (4,427 | ) | $ | 250,896 | ||||||||||||||
In accordance with ASC Subtopic 320-10-25-6, in a significant business combination a company may transfer held to maturity securities to available for sale securities to maintain the company’s existing interest rate risk position or credit risk policy. Based on management’s review of the combined investment securities portfolio and implications for asset and liability management, investment securities totaling $165,230 were transferred from held to maturity to available for sale in connection with the Merger. Investment securities that were transferred included residential mortgage-backed securities, federal agency securities and state and municipal securities and was based mainly on the premium amortization and extension risk inherent in these securities. Concurrent with this repositioning, a total of $221,904 of investment securities were also transferred from available for sale to held to maturity. Substantially all of the securities transferred from available for sale to held to maturity have a maturity date in 2020 or beyond. At the date of transfer, these securities were in an unrealized loss position of $9,657, which will be accreted into interest income using the level yield method over the life of the securities, which is estimated to be approximately 5.3 year. At September 30, 2014 the remaining unrealized loss was $8,947. The unrealized loss amount is included in accumulated other comprehensive (loss) on an after-tax basis. Management believes the transfers of investment securities discussed above maintain the Company’s interest rate risk position and credit risk profile on a combined basis post-Merger. | ||||||||||||||||||||||||||||||||
The amortized cost and estimated fair value of securities at September 30, 2014 are presented below by contractual maturity. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Residential mortgage-backed securities are shown separately since they are not due at a single maturity date. | ||||||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||||||
Available for sale | Held to maturity | |||||||||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||||||||||||||||||
cost | value | cost | value | |||||||||||||||||||||||||||||
Other securities remaining period to contractual maturity: | ||||||||||||||||||||||||||||||||
One year or less | $ | 2,100 | $ | 2,112 | $ | 8,847 | $ | 8,897 | ||||||||||||||||||||||||
One to five years | 141,508 | 141,748 | 9,138 | 9,624 | ||||||||||||||||||||||||||||
Five to ten years | 334,295 | 328,902 | 189,494 | 192,109 | ||||||||||||||||||||||||||||
Greater than ten years | 45,157 | 46,201 | 166,577 | 172,127 | ||||||||||||||||||||||||||||
Total other securities | 523,060 | 518,963 | 374,056 | 382,757 | ||||||||||||||||||||||||||||
Residential MBS | 592,398 | 591,850 | 205,019 | 205,081 | ||||||||||||||||||||||||||||
Total securities | $ | 1,115,458 | $ | 1,110,813 | $ | 579,075 | $ | 587,838 | ||||||||||||||||||||||||
Sales of securities for the periods indicated below were as follows: | ||||||||||||||||||||||||||||||||
For the fiscal year ended September 30, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Available for sale: | ||||||||||||||||||||||||||||||||
Proceeds from sales | $ | 529,107 | $ | 339,123 | $ | 344,431 | ||||||||||||||||||||||||||
Gross realized gains | 1,964 | 7,709 | 10,468 | |||||||||||||||||||||||||||||
Gross realized losses | (1,323 | ) | (377 | ) | — | |||||||||||||||||||||||||||
Income tax expense on realized net gains | 172 | 2,282 | 2,475 | |||||||||||||||||||||||||||||
Held to maturity: (1) | ||||||||||||||||||||||||||||||||
Proceeds from sales | $ | — | $ | 1,187 | $ | — | ||||||||||||||||||||||||||
Gross realized gains | — | 59 | — | |||||||||||||||||||||||||||||
Income tax expense on realized gains | — | 18 | — | |||||||||||||||||||||||||||||
(1) During the fiscal year ended September 30, 2013, the Company sold held to maturity securities after the Company had already collected at least 85% of the principal balance outstanding at acquisition. | ||||||||||||||||||||||||||||||||
The following table summarizes securities available for sale with unrealized losses, segregated by the length of time in a continuous unrealized loss position: | ||||||||||||||||||||||||||||||||
Continuous unrealized loss position | ||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||||||||||||||
Available for sale | ||||||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||||||
Residential MBS: | ||||||||||||||||||||||||||||||||
Agency-backed | $ | 137,693 | $ | (516 | ) | $ | 41,516 | $ | (1,039 | ) | $ | 179,209 | $ | (1,555 | ) | |||||||||||||||||
CMO/other MBS | 62,507 | (446 | ) | 29,499 | (1,046 | ) | 92,006 | (1,492 | ) | |||||||||||||||||||||||
Total residential MBS | 200,200 | (962 | ) | 71,015 | (2,085 | ) | 271,215 | (3,047 | ) | |||||||||||||||||||||||
Other securities: | ||||||||||||||||||||||||||||||||
Federal agencies | 6,153 | (144 | ) | 146,416 | (5,159 | ) | 152,569 | (5,303 | ) | |||||||||||||||||||||||
Corporate | 97,833 | (1,348 | ) | 66,440 | (1,509 | ) | 164,273 | (2,857 | ) | |||||||||||||||||||||||
State and municipal | 8,170 | (58 | ) | 12,809 | (198 | ) | 20,979 | (256 | ) | |||||||||||||||||||||||
Trust preferred | 3,907 | (38 | ) | — | — | 3,907 | (38 | ) | ||||||||||||||||||||||||
Total other securities | 116,063 | (1,588 | ) | 225,665 | (6,866 | ) | 341,728 | (8,454 | ) | |||||||||||||||||||||||
Total | $ | 316,263 | $ | (2,550 | ) | $ | 296,680 | $ | (8,951 | ) | $ | 612,943 | $ | (11,501 | ) | |||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Residential MBS: | ||||||||||||||||||||||||||||||||
Agency-backed | $ | 137,265 | $ | (4,157 | ) | $ | — | $ | — | $ | 137,265 | $ | (4,157 | ) | ||||||||||||||||||
CMO/Other MBS | 122,324 | (2,742 | ) | 7,820 | (296 | ) | 130,144 | (3,038 | ) | |||||||||||||||||||||||
Total residential MBS | 259,589 | (6,899 | ) | 7,820 | (296 | ) | 267,409 | (7,195 | ) | |||||||||||||||||||||||
Other securities: | ||||||||||||||||||||||||||||||||
Federal agencies | 261,547 | (12,090 | ) | — | — | 261,547 | (12,090 | ) | ||||||||||||||||||||||||
State and municipal | 43,585 | (2,033 | ) | 112 | (8 | ) | 43,697 | (2,041 | ) | |||||||||||||||||||||||
Corporate | 95,013 | (3,795 | ) | — | — | 95,013 | (3,795 | ) | ||||||||||||||||||||||||
Total other securities | 400,145 | (17,918 | ) | 112 | (8 | ) | 400,257 | (17,926 | ) | |||||||||||||||||||||||
Total | $ | 659,734 | $ | (24,817 | ) | $ | 7,932 | $ | (304 | ) | $ | 667,666 | $ | (25,121 | ) | |||||||||||||||||
The following table summarizes securities held to maturity with unrealized losses, segregated by the length of time in a continuous unrealized loss position: | ||||||||||||||||||||||||||||||||
Continuous unrealized loss position | ||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||||||||||||||
Held to maturity | ||||||||||||||||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||||||||||||||
Residential MBS: | ||||||||||||||||||||||||||||||||
Agency-backed | $ | 20,616 | $ | (103 | ) | $ | — | $ | — | $ | 20,616 | $ | (103 | ) | ||||||||||||||||||
CMO/Other MBS | 14,928 | (368 | ) | 42,646 | (836 | ) | 57,574 | (1,204 | ) | |||||||||||||||||||||||
Total residential MBS | 35,544 | (471 | ) | 42,646 | (836 | ) | 78,190 | (1,307 | ) | |||||||||||||||||||||||
Other securities: | ||||||||||||||||||||||||||||||||
Federal agencies | 23,756 | (62 | ) | 24,101 | (900 | ) | 47,857 | (962 | ) | |||||||||||||||||||||||
State and municipal | 13,943 | (100 | ) | 1,479 | (23 | ) | 15,422 | (123 | ) | |||||||||||||||||||||||
Total other securities | 37,699 | (162 | ) | 25,580 | (923 | ) | 63,279 | (1,085 | ) | |||||||||||||||||||||||
Total | $ | 73,243 | $ | (633 | ) | $ | 68,226 | $ | (1,759 | ) | $ | 141,469 | $ | (2,392 | ) | |||||||||||||||||
30-Sep-13 | ||||||||||||||||||||||||||||||||
Residential MBS: | ||||||||||||||||||||||||||||||||
Agency-backed | $ | 10,963 | $ | (86 | ) | $ | — | $ | — | $ | 10,963 | $ | (86 | ) | ||||||||||||||||||
CMO/Other MBS | 31,412 | (337 | ) | — | — | 31,412 | (337 | ) | ||||||||||||||||||||||||
Total residential MBS | 42,375 | (423 | ) | — | — | 42,375 | (423 | ) | ||||||||||||||||||||||||
Other securities: | ||||||||||||||||||||||||||||||||
Federal agencies | 73,883 | (3,458 | ) | — | — | 73,883 | (3,458 | ) | ||||||||||||||||||||||||
State and municipal | 9,530 | (546 | ) | — | — | 9,530 | (546 | ) | ||||||||||||||||||||||||
Total other securities | 83,413 | (4,004 | ) | — | — | 83,413 | (4,004 | ) | ||||||||||||||||||||||||
Total | $ | 125,788 | $ | (4,427 | ) | $ | — | $ | — | $ | 125,788 | $ | (4,427 | ) | ||||||||||||||||||
Substantially all of the unrealized losses at September 30, 2014 relate to investment grade debt securities and are attributable to changes in market interest rates subsequent to purchase. At September 30, 2014, a total of 99 available for sale securities were in a continuous unrealized loss position for less than 12 months and 118 securities were in an unrealized loss position for 12 months or longer. For securities with fixed maturities, there are no securities past due or securities for which the Company currently believes it is not probable that it will collect all amounts due according to the contractual terms of the investment. | ||||||||||||||||||||||||||||||||
Declines in the fair value of available for sale and held to maturity securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses to the extent the impairment is related to credit losses. The amount of the impairment related to other factors is recognized in other comprehensive income. In estimating other-than-temporary impairment losses (“OTTI”), management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, and (iii) the intent and ability of the Company to retain the investment for a period of time sufficient to allow for an anticipated recovery in cost. | ||||||||||||||||||||||||||||||||
Securities pledged for borrowings at FHLB and other institutions, and securities pledged for municipal deposits and other purposes were as follows: | ||||||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Available for sale securities pledged for borrowings, at fair value | $ | 268,316 | $ | 199,642 | ||||||||||||||||||||||||||||
Available for sale securities pledged for municipal deposits, at fair value | 532,770 | 580,756 | ||||||||||||||||||||||||||||||
Available for sale securities pledged for customer back-to-back swaps, at fair value | 1,934 | 4,645 | ||||||||||||||||||||||||||||||
Held to maturity securities pledged for borrowings, at amortized cost | 58,509 | 55,497 | ||||||||||||||||||||||||||||||
Held to maturity securities pledged for municipal deposits, at amortized cost | 430,611 | 167,926 | ||||||||||||||||||||||||||||||
Total securities pledged | $ | 1,292,140 | $ | 1,008,466 | ||||||||||||||||||||||||||||
Loans
Loans | 12 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||
Loans [Abstract] | ' | |||||||||||||||||||||||||||
Loans | ' | |||||||||||||||||||||||||||
Loans | ||||||||||||||||||||||||||||
The composition of the Company’s loan portfolio, excluding loans held for sale, was the following: | ||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||||
Commercial & industrial | $ | 1,164,537 | $ | 439,787 | ||||||||||||||||||||||||
Payroll finance | 145,474 | — | ||||||||||||||||||||||||||
Warehouse lending | 192,003 | — | ||||||||||||||||||||||||||
Factored receivables | 181,433 | — | ||||||||||||||||||||||||||
Equipment financing | 393,027 | — | ||||||||||||||||||||||||||
Total commercial | 2,076,474 | 439,787 | ||||||||||||||||||||||||||
Commercial mortgage: | ||||||||||||||||||||||||||||
Commercial real estate | 1,449,052 | 969,490 | ||||||||||||||||||||||||||
Multi-family | 368,524 | 307,547 | ||||||||||||||||||||||||||
Acquisition, development & construction | 92,149 | 102,494 | ||||||||||||||||||||||||||
Total commercial mortgage | 1,909,725 | 1,379,531 | ||||||||||||||||||||||||||
Total commercial and commercial mortgage | 3,986,199 | 1,819,318 | ||||||||||||||||||||||||||
Residential mortgage | 570,431 | 400,009 | ||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
Home equity lines of credit | 159,944 | 156,995 | ||||||||||||||||||||||||||
Other consumer loans | 43,864 | 36,576 | ||||||||||||||||||||||||||
Total consumer | 203,808 | 193,571 | ||||||||||||||||||||||||||
Total loans | 4,760,438 | 2,412,898 | ||||||||||||||||||||||||||
Allowance for loan losses | (40,612 | ) | (28,877 | ) | ||||||||||||||||||||||||
Total loans, net | $ | 4,719,826 | $ | 2,384,021 | ||||||||||||||||||||||||
Total loans include net deferred loan origination costs of $1,261 at September 30, 2014 and $1,201 at September 30, 2013. | ||||||||||||||||||||||||||||
Loans acquired from Legacy Sterling were a total of $1,698,108, net of purchase accounting adjustments and were comprised of $1,683,454 of loans that were not considered impaired at the acquisition date and $13,249 of loans that were determined to be impaired at the time of acquisition. The impaired loans were accounted for in accordance with ASC 310-30. At September 30, 2014, the net recorded amount of loans accounted for under ASC 310-30 was $3,763. | ||||||||||||||||||||||||||||
Loans acquired in the Merger that were determined to be purchased credit impaired were all considered collateral dependent loans. Therefore, estimated fair value calculations and projected cash flows included only return of principal and no interest income. There was no accretable yield associated with these loans during the twelve months ended September 30, 2014. | ||||||||||||||||||||||||||||
At September 30, 2014, the Company pledged loans totaling $1,246,315 to the FHLB as collateral for certain borrowing arrangements. See Note 8. “Borrowings and Senior Notes”. | ||||||||||||||||||||||||||||
The following tables set forth the amounts and status of the Company’s loans and TDRs at September 30, 2014 and September 30, 2013: | ||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||
Current | 30-59 | 60-89 | 90+ | Non- | Total | |||||||||||||||||||||||
days | days | days | accrual | |||||||||||||||||||||||||
past due | past due | past due | ||||||||||||||||||||||||||
Commercial & industrial | $ | 1,150,854 | $ | 2,316 | $ | 7,043 | $ | — | $ | 4,324 | $ | 1,164,537 | ||||||||||||||||
Payroll finance | 145,029 | 99 | — | 346 | — | 145,474 | ||||||||||||||||||||||
Warehouse lending | 192,003 | — | — | — | — | 192,003 | ||||||||||||||||||||||
Factored receivables | 181,063 | — | — | — | 370 | 181,433 | ||||||||||||||||||||||
Equipment financing | 391,914 | 689 | 162 | — | 262 | 393,027 | ||||||||||||||||||||||
Commercial real estate | 1,433,805 | 93 | 4,188 | 521 | 10,445 | 1,449,052 | ||||||||||||||||||||||
Multi-family | 368,393 | — | — | — | 131 | 368,524 | ||||||||||||||||||||||
Acquisition, development & construction | 79,732 | — | 56 | — | 12,361 | 92,149 | ||||||||||||||||||||||
Residential mortgage | 547,912 | 4,023 | 2,036 | 534 | 15,926 | 570,431 | ||||||||||||||||||||||
Consumer | 193,491 | 3,087 | 1,487 | — | 5,743 | 203,808 | ||||||||||||||||||||||
Total loans | $ | 4,684,196 | $ | 10,307 | $ | 14,972 | $ | 1,401 | $ | 49,562 | $ | 4,760,438 | ||||||||||||||||
Total TDRs included above | $ | 17,138 | $ | 346 | $ | 169 | $ | — | $ | 11,944 | $ | 29,597 | ||||||||||||||||
Non-performing loans: | ||||||||||||||||||||||||||||
Loans 90+ days past due and still accruing | $ | 1,401 | ||||||||||||||||||||||||||
Non-accrual loans | 49,562 | |||||||||||||||||||||||||||
Total non-performing loans | $ | 50,963 | ||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||
Current | 30-59 | 60-89 | 90+ | Non- | Total | |||||||||||||||||||||||
days | days | days | accrual | |||||||||||||||||||||||||
past due | past due | past due | ||||||||||||||||||||||||||
Commercial & industrial | $ | 438,818 | $ | 178 | $ | 2 | $ | 289 | $ | 500 | 439,787 | |||||||||||||||||
Commercial real estate | 1,263,933 | 1,978 | 2,357 | 1,574 | 7,195 | 1,277,037 | ||||||||||||||||||||||
Acquisition, development & construction | 96,306 | 768 | — | — | 5,420 | 102,494 | ||||||||||||||||||||||
Residential mortgage | 390,072 | 354 | 267 | 1,832 | 7,484 | 400,009 | ||||||||||||||||||||||
Consumer | 190,393 | 566 | — | 404 | 2,208 | 193,571 | ||||||||||||||||||||||
Total loans | $ | 2,379,522 | $ | 3,844 | $ | 2,626 | $ | 4,099 | $ | 22,807 | $ | 2,412,898 | ||||||||||||||||
Total TDRs included above | $ | 23,754 | $ | — | $ | — | $ | 141 | $ | 2,199 | $ | 26,094 | ||||||||||||||||
Non-performing loans: | ||||||||||||||||||||||||||||
Loans 90+ days past due and still accruing | $ | 4,099 | ||||||||||||||||||||||||||
Non-accrual loans | 22,807 | |||||||||||||||||||||||||||
Total non-performing loans | $ | 26,906 | ||||||||||||||||||||||||||
Activity in the allowance for loan losses for the fiscal years ended September 30, 2014, 2013 and 2012 is summarized below: | ||||||||||||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||||||||||
Beginning | Charge-offs | Recoveries | Net | Provision | Ending balance | |||||||||||||||||||||||
balance | charge-offs | |||||||||||||||||||||||||||
Commercial & industrial | $ | 5,302 | $ | (2,901 | ) | $ | 1,073 | $ | (1,828 | ) | $ | 6,062 | $ | 9,536 | ||||||||||||||
Payroll finance | — | (758 | ) | — | (758 | ) | 2,137 | 1,379 | ||||||||||||||||||||
Warehouse lending | — | — | — | — | 630 | 630 | ||||||||||||||||||||||
Factored receivables | — | (211 | ) | 9 | (202 | ) | 1,496 | 1,294 | ||||||||||||||||||||
Equipment financing | — | (1,074 | ) | 194 | (880 | ) | 3,501 | 2,621 | ||||||||||||||||||||
Commercial real estate | 9,967 | (741 | ) | 161 | (580 | ) | 1,457 | 10,844 | ||||||||||||||||||||
Multi-family | — | (418 | ) | 92 | (326 | ) | 2,193 | 1,867 | ||||||||||||||||||||
Acquisition, development & construction | 5,806 | (1,479 | ) | — | (1,479 | ) | (2,207 | ) | 2,120 | |||||||||||||||||||
Residential mortgage | 4,474 | (963 | ) | 323 | (640 | ) | 2,003 | 5,837 | ||||||||||||||||||||
Consumer | 3,328 | (786 | ) | 114 | (672 | ) | 1,828 | 4,484 | ||||||||||||||||||||
Total loans | $ | 28,877 | $ | (9,331 | ) | $ | 1,966 | $ | (7,365 | ) | $ | 19,100 | $ | 40,612 | ||||||||||||||
Annualized net charge-offs to average loans outstanding | 0.24 | % | ||||||||||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||||||||||
Beginning | Charge-offs | Recoveries | Net | Provision | Ending balance | |||||||||||||||||||||||
balance | charge-offs | |||||||||||||||||||||||||||
Commercial & industrial | $ | 4,603 | $ | (1,354 | ) | $ | 410 | $ | (944 | ) | $ | 1,643 | $ | 5,302 | ||||||||||||||
Commercial real estate | 7,230 | (3,725 | ) | 577 | (3,148 | ) | 5,885 | 9,967 | ||||||||||||||||||||
Acquisition, development & construction | 8,526 | (3,422 | ) | 182 | (3,240 | ) | 520 | 5,806 | ||||||||||||||||||||
Residential mortgage | 4,359 | (2,547 | ) | 101 | (2,446 | ) | 2,561 | 4,474 | ||||||||||||||||||||
Consumer | 3,564 | (2,009 | ) | 232 | (1,777 | ) | 1,541 | 3,328 | ||||||||||||||||||||
Total loans | $ | 28,282 | $ | (13,057 | ) | $ | 1,502 | $ | (11,555 | ) | $ | 12,150 | $ | 28,877 | ||||||||||||||
Annualized net charge-offs to average loans outstanding | 0.52 | % | ||||||||||||||||||||||||||
September 30, 2012 | ||||||||||||||||||||||||||||
Beginning | Charge-offs | Recoveries | Net | Provision | Ending balance | |||||||||||||||||||||||
balance | charge-offs | |||||||||||||||||||||||||||
Commercial & industrial | $ | 5,945 | $ | (1,526 | ) | $ | 1,116 | $ | (410 | ) | $ | (932 | ) | $ | 4,603 | |||||||||||||
Commercial real estate | 5,568 | (2,707 | ) | 528 | (2,179 | ) | 3,841 | 7,230 | ||||||||||||||||||||
Acquisition, development & construction | 9,895 | (4,124 | ) | 299 | (3,825 | ) | 2,456 | 8,526 | ||||||||||||||||||||
Residential mortgage | 3,498 | (2,551 | ) | 356 | (2,195 | ) | 3,056 | 4,359 | ||||||||||||||||||||
Consumer | 3,011 | (1,901 | ) | 263 | (1,638 | ) | 2,191 | 3,564 | ||||||||||||||||||||
Total loans | $ | 27,917 | $ | (12,809 | ) | $ | 2,562 | $ | (10,247 | ) | $ | 10,612 | $ | 28,282 | ||||||||||||||
Annualized net charge-offs to average loans outstanding | 0.56 | % | ||||||||||||||||||||||||||
Management considers a loan to be impaired when, based on current information and events, it is determined that the Company will not be able to collect all amounts due according to the loan contract, including scheduled interest payments. Determination of impairment is treated the same across all classes of loans on a loan-by-loan basis, except residential mortgage loans and home equity lines of credit with an outstanding balance of $500 or less, which are evaluated for impairment on a homogeneous pool basis. When management identifies a loan as impaired, the impairment is measured based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, except when the sole remaining source of repayment of the loan is the operation or liquidation of the collateral. In these cases, management uses the current fair value of the collateral, less selling costs when foreclosure is probable, instead of discounted cash flows. If management determines that the value of the impaired loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is generally recognized through a charge-off to the allowance for loan losses. | ||||||||||||||||||||||||||||
When the ultimate collectibility of the total principal of an impaired loan is in doubt and the loan is on non-accrual status, all payments are applied to principal, under the cost recovery method. When the ultimate collectibility of the total principal of an impaired loan is not in doubt and the loan is on non-accrual status, contractual interest is credited to interest income when received, under the cash basis method. | ||||||||||||||||||||||||||||
The following table sets forth loans evaluated for impairment by segment and the allowance evaluated by segment at September 30, 2014: | ||||||||||||||||||||||||||||
Loans evaluated by segment | Allowance evaluated by segment | |||||||||||||||||||||||||||
Individually | Collectively | Purchased credit impaired loans | Total | Individually | Collectively | Total allowance for loan losses | ||||||||||||||||||||||
evaluated for | evaluated for | loans | evaluated for | evaluated for | ||||||||||||||||||||||||
impairment | impairment | impairment | impairment | |||||||||||||||||||||||||
Commercial & industrial | $ | 4,177 | $ | 1,158,837 | $ | 1,523 | $ | 1,164,537 | $ | — | $ | 9,536 | $ | 9,536 | ||||||||||||||
Payroll finance | — | 145,474 | — | 145,474 | — | 1,379 | 1,379 | |||||||||||||||||||||
Warehouse lending | — | 192,003 | — | 192,003 | — | 630 | 630 | |||||||||||||||||||||
Factored receivables | — | 181,433 | — | 181,433 | — | 1,294 | 1,294 | |||||||||||||||||||||
Equipment financing | — | 393,027 | — | 393,027 | — | 2,621 | 2,621 | |||||||||||||||||||||
Commercial real estate | 13,750 | 1,435,163 | 139 | 1,449,052 | — | 10,844 | 10,844 | |||||||||||||||||||||
Multi-family | — | 368,524 | — | 368,524 | — | 1,867 | 1,867 | |||||||||||||||||||||
Acquisition, development & construction | 17,766 | 74,383 | — | 92,149 | — | 2,120 | 2,120 | |||||||||||||||||||||
Residential mortgage | 515 | 567,815 | 2,101 | 570,431 | — | 5,837 | 5,837 | |||||||||||||||||||||
Consumer | — | 203,808 | — | 203,808 | — | 4,484 | 4,484 | |||||||||||||||||||||
Total loans | $ | 36,208 | $ | 4,720,467 | $ | 3,763 | $ | 4,760,438 | $ | — | $ | 40,612 | $ | 40,612 | ||||||||||||||
There was no amount included in the allowance for loan losses associated with purchased credit impaired loans at September 30, 2014, as there was no further deterioration in the credit quality of these loans since the Merger date. | ||||||||||||||||||||||||||||
The following table sets forth loans evaluated for impairment by segment and the allowance evaluated by segment at September 30, 2013: | ||||||||||||||||||||||||||||
Loans evaluated by segment | Allowance evaluated by segment | |||||||||||||||||||||||||||
Individually | Collectively | Total | Individually | Collectively | Total allowance for loan losses | |||||||||||||||||||||||
evaluated for | evaluated for | loans | evaluated for | evaluated for | ||||||||||||||||||||||||
impairment | impairment | impairment | impairment | |||||||||||||||||||||||||
Commercial & industrial | $ | 2,631 | $ | 437,156 | $ | 439,787 | $ | 249 | $ | 5,053 | $ | 5,302 | ||||||||||||||||
Commercial real estate | 14,091 | 1,262,946 | 1,277,037 | 803 | 9,164 | 9,967 | ||||||||||||||||||||||
Acquisition, development & construction | 19,582 | 82,912 | 102,494 | 540 | 5,266 | 5,806 | ||||||||||||||||||||||
Residential mortgage | 515 | 399,494 | 400,009 | — | 4,474 | 4,474 | ||||||||||||||||||||||
Consumer | 2 | 193,569 | 193,571 | 1 | 3,327 | 3,328 | ||||||||||||||||||||||
Total loans | $ | 36,821 | $ | 2,376,077 | $ | 2,412,898 | $ | 1,593 | $ | 27,284 | $ | 28,877 | ||||||||||||||||
The following table presents loans individually evaluated for impairment by segment of loans at September 30, 2014 and September 30, 2013: | ||||||||||||||||||||||||||||
September 30, 2014 | 30-Sep-13 | |||||||||||||||||||||||||||
Unpaid | Recorded | Related allowance | Unpaid | Recorded | Related allowance | |||||||||||||||||||||||
principal | investment | principal | investment | |||||||||||||||||||||||||
balance | balance | |||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||
Commercial & industrial | $ | 4,177 | $ | 4,177 | $ | — | $ | 2,175 | $ | 2,131 | $ | — | ||||||||||||||||
Commercial real estate | 13,886 | 13,750 | — | 12,451 | 11,820 | — | ||||||||||||||||||||||
Acquisition, development & construction | 18,676 | 17,766 | — | 17,971 | 17,945 | — | ||||||||||||||||||||||
Residential mortgage | 515 | 515 | — | 515 | 515 | — | ||||||||||||||||||||||
Subtotal | 37,254 | 36,208 | — | 33,112 | 32,411 | — | ||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||
Commercial & industrial | — | — | — | 500 | 500 | 249 | ||||||||||||||||||||||
Commercial real estate | — | — | — | 3,150 | 2,271 | 803 | ||||||||||||||||||||||
Acquisition, development & construction | — | — | — | 2,753 | 1,637 | 540 | ||||||||||||||||||||||
Consumer | — | — | — | 2 | 2 | 1 | ||||||||||||||||||||||
Subtotal | — | — | — | 6,405 | 4,410 | 1,593 | ||||||||||||||||||||||
Total | $ | 37,254 | $ | 36,208 | $ | — | $ | 39,517 | $ | 36,821 | $ | 1,593 | ||||||||||||||||
During the quarter ended March 31, 2014, the Company modified its allowance for loan loss policy to generally require a charge-off of the difference between the book balance of a collateral dependent impaired loan and the net value of the collateral securing the loan. | ||||||||||||||||||||||||||||
The following table presents the average recorded investment and interest income recognized related to loans individually evaluated for impairment by segment for the fiscal year September 30, 2014 and 2013: | ||||||||||||||||||||||||||||
September 30, 2014 | September 30, 2013 | |||||||||||||||||||||||||||
YTD average | Interest | Cash-basis | YTD average | Interest | Cash-basis | |||||||||||||||||||||||
recorded | income | interest | recorded | income | interest | |||||||||||||||||||||||
investment | recognized | income | investment | recognized | income | |||||||||||||||||||||||
recognized | recognized | |||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||
Commercial & industrial | $ | 4,180 | $ | — | $ | — | $ | 1,821 | $ | 91 | $ | 86 | ||||||||||||||||
Commercial real estate | 14,016 | 186 | 180 | 17,325 | 286 | 275 | ||||||||||||||||||||||
Acquisition, development & construction | 20,525 | 239 | 239 | 12,827 | 631 | 587 | ||||||||||||||||||||||
Residential mortgage | 515 | — | — | 309 | — | — | ||||||||||||||||||||||
Consumer | — | — | — | 61 | — | — | ||||||||||||||||||||||
Subtotal | 39,236 | 425 | 419 | 32,343 | 1,008 | 948 | ||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||
Commercial & industrial | — | — | — | 705 | — | — | ||||||||||||||||||||||
Commercial real estate | — | — | — | 6,646 | 7 | 7 | ||||||||||||||||||||||
Acquisition, development & construction | — | — | — | 1,104 | — | — | ||||||||||||||||||||||
Residential mortgage | — | — | — | 1,602 | 14 | 10 | ||||||||||||||||||||||
Consumer | — | — | — | 228 | — | — | ||||||||||||||||||||||
Subtotal | — | — | — | 10,285 | 21 | 17 | ||||||||||||||||||||||
Total | $ | 39,236 | $ | 425 | $ | 419 | $ | 42,628 | $ | 1,029 | $ | 965 | ||||||||||||||||
In the fiscal year ended September 30, 2012, the Company recognized interest income of $1,878 including cash-basis interest income recognized of $1,136 on $58,195 of average impaired loans. | ||||||||||||||||||||||||||||
Troubled Debt Restructuring: | ||||||||||||||||||||||||||||
The following tables set forth the amounts and past due status of the Company’s TDRs at September 30, 2014 and 2013: | ||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||
Current loans | 30-59 | 60-89 | 90+ | Non- | Total | |||||||||||||||||||||||
days | days | days | accrual | |||||||||||||||||||||||||
past due | past due | past due | ||||||||||||||||||||||||||
Commercial & industrial | $ | 275 | $ | — | $ | — | $ | — | $ | 1,618 | $ | 1,893 | ||||||||||||||||
Equipment financing | 435 | — | — | — | — | 435 | ||||||||||||||||||||||
Commercial real estate | 4,838 | — | — | — | 447 | 5,285 | ||||||||||||||||||||||
Acquisition, development & construction | 5,732 | — | — | — | 6,817 | 12,549 | ||||||||||||||||||||||
Residential mortgage | 5,858 | 346 | 169 | — | 2,841 | 9,214 | ||||||||||||||||||||||
Consumer | — | — | — | — | 221 | 221 | ||||||||||||||||||||||
Total | $ | 17,138 | $ | 346 | $ | 169 | $ | — | $ | 11,944 | $ | 29,597 | ||||||||||||||||
Allowance for loan losses | $ | 409 | $ | — | $ | 31 | $ | — | $ | 451 | $ | 891 | ||||||||||||||||
30-Sep-13 | ||||||||||||||||||||||||||||
Current loans | 30-59 | 60-89 | 90+ | Non- | Total | |||||||||||||||||||||||
days | days | days | accrual | |||||||||||||||||||||||||
past due | past due | past due | ||||||||||||||||||||||||||
Commercial & industrial | $ | 1,843 | $ | — | $ | — | $ | 141 | $ | — | $ | 1,984 | ||||||||||||||||
Commercial real estate | 5,305 | — | — | — | — | 5,305 | ||||||||||||||||||||||
Acquisition, development & construction | 14,190 | — | — | — | 151 | 14,341 | ||||||||||||||||||||||
Residential mortgage | 2,416 | — | — | — | 1,792 | 4,208 | ||||||||||||||||||||||
Consumer | — | — | — | — | 256 | 256 | ||||||||||||||||||||||
Total loans | $ | 23,754 | $ | — | $ | — | $ | 141 | $ | 2,199 | $ | 26,094 | ||||||||||||||||
Allowance for loan losses | $ | 438 | $ | — | $ | — | $ | — | $ | 439 | $ | 877 | ||||||||||||||||
The Company had outstanding commitments to lend additional amounts of $0 and $4,101 to customers with loans classified as TDRs as of September 30, 2014 and September 30, 2013, respectively. | ||||||||||||||||||||||||||||
The following table presents loans by segment modified as TDRs that occurred during the twelve months ended September 30, 2014 and 2013: | ||||||||||||||||||||||||||||
September 30, 2014 | September 30, 2013 | |||||||||||||||||||||||||||
Recorded investment | Recorded investment | |||||||||||||||||||||||||||
Number | Pre- | Post- | Number | Pre- | Post- | |||||||||||||||||||||||
modification | modification | modification | modification | |||||||||||||||||||||||||
Commercial & industrial | — | $ | — | $ | — | 5 | $ | 2,001 | $ | 2,001 | ||||||||||||||||||
Commercial real estate | — | — | — | 2 | 2,682 | 2,682 | ||||||||||||||||||||||
Acquisition, development & construction | 2 | 1,060 | 1,060 | 7 | 5,772 | 5,772 | ||||||||||||||||||||||
Residential mortgage | — | — | — | 6 | 1,436 | 1,372 | ||||||||||||||||||||||
Consumer | — | — | — | 1 | 302 | 302 | ||||||||||||||||||||||
Total restructured loans | 2 | $ | 1,060 | $ | 1,060 | 21 | $ | 12,193 | $ | 12,129 | ||||||||||||||||||
There were 12 TDRs in the fiscal year ended September 30, 2012, with a pre-modification balance of $9,160 and a post-modification balance of $8,945. | ||||||||||||||||||||||||||||
The TDRs presented above increased the allowance for loan losses by $0, $300 and $134 and resulted in charge-offs of $0, $110 and $0 for the years ended September 30, 2014, 2013, and 2012, respectively. | ||||||||||||||||||||||||||||
There were no TDRs that were modified during the last twelve months that had subsequently defaulted during the year. | ||||||||||||||||||||||||||||
Credit Quality Indicators | ||||||||||||||||||||||||||||
As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to (i) the weighted-average risk grade of commercial loans, (ii) the level of classified commercial loans, (iii) the delinquency status of consumer loans (residential mortgage and home equity lines of credit (“HELOC”)), (iv) net charge-offs, (v) non-performing loans (see details above) and (vi) the general economic conditions in the greater New York metropolitan region. The Bank analyzes loans individually by classifying the loans as to credit risk, except residential mortgage loans and consumer loans, which are evaluated on a homogeneous pool basis unless the loan balance is greater than $500. This analysis is performed at least quarterly on all criticized/classified loans. The Bank uses the following definitions of risk ratings: | ||||||||||||||||||||||||||||
1 and 2 - These grades include loans that are secured by cash, marketable securities or cash surrender value of life insurance policies. | ||||||||||||||||||||||||||||
3 - This grade includes loans to borrowers with strong earnings and cash flow and that have the ability to service debt. The borrower’s assets and liabilities are generally well matched and are above average quality. The borrower has ready access to multiple sources of funding including alternatives such as term loans, private equity placements or trade credit. | ||||||||||||||||||||||||||||
4 - This grade includes loans to borrowers with above average cash flow, adequate earnings and debt service coverage ratios. The borrower generates discretionary cash flow, assets and liabilities are reasonably matched, and the borrower has access to other sources of debt funding or additional trade credit at market rates. | ||||||||||||||||||||||||||||
5 - This grade includes loans to borrowers with adequate earnings and cash flow and reasonable debt service coverage ratios. Overall leverage is acceptable and there is average reliance upon trade debt. Management has a reasonable amount of experience and depth, and owners are willing to invest available outside capital as necessary. | ||||||||||||||||||||||||||||
6 - This grade includes loans to borrowers where there is evidence of some strain, earnings are inconsistent and volatile, and the borrowers’ outlook is uncertain. Generally such borrowers have higher leverage than those with a better risk rating. These borrowers typically have limited access to alternative sources of bank debt and may be dependent upon debt funding for working capital support. | ||||||||||||||||||||||||||||
7 - Special Mention (OCC definition) - Other Assets Especially Mentioned (OAEM) are loans that have potential weaknesses which may, if not reviewed or corrected, weaken the asset or inadequately protect the Bank’s credit position at some future date. Such assets constitute an undue and unwarranted credit risk but not to the point of justifying a classification of “Substandard.” The credit risk may be relatively minor yet constitute an unwarranted risk in light of the circumstances surrounding a specific asset. | ||||||||||||||||||||||||||||
8 - Substandard (OCC definition) - These loans are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a well-defined weakness that jeopardizes the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some losses if the deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets classified as substandard. | ||||||||||||||||||||||||||||
9 - Doubtful (OCC definition) - These loans have all the weakness inherent in one classified as “Substandard” with the added characteristics that the weakness makes collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors which may work to the advantage and strengthening of the asset, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors include proposed merger, acquisition, or liquidating procedures, capital injection, perfecting liens or additional collateral and refinancing plans. | ||||||||||||||||||||||||||||
10 - Loss (OCC definition) - These loans are charged-off because they are determined to be uncollectible and unbankable assets. This classification does not reflect that the asset has no absolute recovery or salvage value, but rather it is not practical or desirable to defer writing-off this asset even though partial recovery may be effected in the future. Losses should be taken in the period in which they are determined to be uncollectible. | ||||||||||||||||||||||||||||
Loans that are risk-rated 1 through 6 as defined above are considered to be pass-rated loans. As of September 30, 2014 and 2013, the risk category of gross loans by segment was as follows: | ||||||||||||||||||||||||||||
September 30, 2014 | September 30, 2013 | |||||||||||||||||||||||||||
Special | Substandard | Doubtful | Special | Substandard | Doubtful | |||||||||||||||||||||||
mention | mention | |||||||||||||||||||||||||||
Commercial & industrial | $ | 24,980 | $ | 5,749 | $ | — | $ | 3,545 | $ | 3,855 | $ | 365 | ||||||||||||||||
Payroll finance | — | 346 | — | — | — | — | ||||||||||||||||||||||
Factored receivables | 46 | 370 | — | — | — | — | ||||||||||||||||||||||
Equipment financing | — | 262 | — | — | — | — | ||||||||||||||||||||||
Commercial real estate | 8,720 | 26,826 | — | 7,279 | 24,561 | 227 | ||||||||||||||||||||||
Multi-family | — | 131 | — | — | — | — | ||||||||||||||||||||||
Acquisition, development & construction | 1,040 | 16,456 | — | 1,867 | 19,410 | — | ||||||||||||||||||||||
Residential mortgage | 2,988 | 16,981 | — | 824 | 9,786 | — | ||||||||||||||||||||||
Consumer | 1,779 | 5,972 | — | 15 | 2,891 | — | ||||||||||||||||||||||
Total | $ | 39,553 | $ | 73,093 | $ | — | $ | 13,530 | $ | 60,503 | $ | 592 | ||||||||||||||||
Premises_And_Equipment_Net
Premises And Equipment, Net | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Premises and Equipment, Net | ' | |||||||
Premises and Equipment, Net | ||||||||
Premises and equipment are summarized as follows: | ||||||||
September 30, | ||||||||
2014 | 2013 | |||||||
Land and land improvements | $ | 6,048 | $ | 7,282 | ||||
Buildings | 22,888 | 30,558 | ||||||
Leasehold improvements | 32,963 | 8,136 | ||||||
Furniture, fixtures and equipment | 50,343 | 40,164 | ||||||
Total premises and equipment, gross | 112,242 | 86,140 | ||||||
Accumulated depreciation and amortization | (68,956 | ) | (49,620 | ) | ||||
Total premises and equipment, net | $ | 43,286 | $ | 36,520 | ||||
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Goodwill and Other Intangible Assets | ' | |||||||||||
Goodwill and Other Intangible Assets | ||||||||||||
Goodwill and other intangible assets are presented in the tables below. The increase in goodwill and certain other intangible assets in fiscal 2014 was related to the acquisition of Legacy Sterling, which is described more fully in Note 2. “Acquisitions.” | ||||||||||||
Goodwill | ||||||||||||
The change in goodwill in the fiscal years ended September 30, 2014 and 2013 was as follows: | ||||||||||||
September 30, | ||||||||||||
2014 | 2013 | |||||||||||
Beginning of year balance | $ | 163,117 | $ | 163,247 | ||||||||
Acquisitions | 225,809 | (130 | ) | |||||||||
Disposals | — | — | ||||||||||
End of year balance | $ | 388,926 | $ | 163,117 | ||||||||
During the fiscal year ended September 30, 2013, the Company decreased the goodwill recorded in connection with the Gotham Bank acquisition by $130 based on the completion of the analysis of fair value of the net assets acquired. | ||||||||||||
Other intangible assets | ||||||||||||
The balance of other intangible assets at September 30, 2014 and 2013 was as follows: | ||||||||||||
Gross intangible assets | Accumulated amortization | Net intangible assets | ||||||||||
30-Sep-14 | ||||||||||||
Core deposits | $ | 24,182 | $ | (4,694 | ) | $ | 19,488 | |||||
Non-compete agreements | 10,308 | (5,490 | ) | 4,818 | ||||||||
Trade name | 20,500 | — | 20,500 | |||||||||
Fair value of below market leases | 725 | (253 | ) | 472 | ||||||||
Provident Bank Ball Park naming rights | 2,414 | (2,414 | ) | — | ||||||||
$ | 58,129 | $ | (12,851 | ) | $ | 45,278 | ||||||
30-Sep-13 | ||||||||||||
Core deposits | $ | 4,818 | $ | (798 | ) | $ | 4,020 | |||||
Provident Bank Ball Park naming rights | 2,414 | (543 | ) | 1,871 | ||||||||
$ | 7,232 | $ | (1,341 | ) | $ | 5,891 | ||||||
Included in other intangible assets was an intangible asset associated with the naming rights to Provident Bank Ball Park which is located in Rockland County, New York. At the time of the Merger, the Company wrote-off the remaining book value. | ||||||||||||
Other intangible assets are amortized on a straight-line or accelerated bases over their estimated useful lives, which range from one to 10 years. Amortization expense related to core deposits, non-compete agreements and naming rights totaled $9,408, $1,296 and $1,245 for the fiscal years ended September 30, 2014, 2013, and 2012, respectively. The amortization of the fair value of below market leases was included in rent expense for the fiscal year ended September 30, 2014. The estimated aggregate future amortization expense for other intangible assets remaining as of September 30, 2014 was as follows: | ||||||||||||
Amortization expense | ||||||||||||
2015 | $ | 6,113 | ||||||||||
2016 | 5,042 | |||||||||||
2017 | 2,598 | |||||||||||
2018 | 2,178 | |||||||||||
2019 | 2,058 | |||||||||||
Thereafter | 6,786 | |||||||||||
$ | 24,775 | |||||||||||
Deposits
Deposits | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Deposits [Abstract] | ' | |||||||
Deposits | ' | |||||||
Deposits | ||||||||
Deposit balances at September 30, 2014 and 2013 are summarized as follows: | ||||||||
September 30, | ||||||||
2014 | 2013 | |||||||
Non-interest bearing demand | $ | 1,799,685 | $ | 943,934 | ||||
Interest bearing demand | 766,852 | 434,398 | ||||||
Savings | 698,443 | 580,125 | ||||||
Money market | 1,595,803 | 735,709 | ||||||
Certificates of deposit | 437,871 | 268,128 | ||||||
Total deposits | $ | 5,298,654 | $ | 2,962,294 | ||||
Municipal deposits totaled $992,761 and $757,065 at September 30, 2014 and September 30, 2013, respectively. See Note 3. “Securities” for the amount of securities that were pledged as collateral for municipal deposits and other purposes. | ||||||||
Certificates of deposit had remaining periods to contractual maturity as follows: | ||||||||
September 30, | ||||||||
2014 | 2013 | |||||||
Remaining period to contractual maturity: | ||||||||
Less than one year | $ | 340,813 | $ | 239,104 | ||||
One to two years | 53,319 | 17,248 | ||||||
Two to three years | 35,632 | 5,185 | ||||||
Three to four years | 4,000 | 3,062 | ||||||
Four to five years | 4,107 | 3,529 | ||||||
Total certificates of deposit | $ | 437,871 | $ | 268,128 | ||||
Certificates of deposit accounts with a denomination of $100 or more totaled $290,483 and $104,225 at September 30, 2014 and 2013, respectively. Listed below are the Company’s brokered deposits at September 30, 2014 and 2013: | ||||||||
September 30, | ||||||||
2014 | 2013 | |||||||
Money market | $ | 84,022 | $ | 34,571 | ||||
Reciprocal CDAR’s 1 | 34,017 | 1,343 | ||||||
CDAR’s one way | 3,028 | 768 | ||||||
Total brokered deposits | $ | 121,067 | $ | 36,682 | ||||
1 Certificate of deposit account registry service |
Borrowings_and_Senior_Notes
Borrowings and Senior Notes | 12 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Debt Instruments [Abstract] | ' | |||||||||||||
Borrowings and Senior Notes | ' | |||||||||||||
Borrowings and Senior Notes | ||||||||||||||
The Company’s borrowings and weighted average interest rates are summarized as follows: | ||||||||||||||
September 30, | ||||||||||||||
2014 | 2013 | |||||||||||||
Amount | Rate | Amount | Rate | |||||||||||
By type of borrowing: | ||||||||||||||
FHLB advances and overnight | $ | 795,028 | 1.75 | % | $ | 442,602 | 2.77 | % | ||||||
Repurchase agreements | 25,639 | 0.39 | 20,351 | 0.88 | ||||||||||
Fed funds purchased | 20,000 | 0.31 | — | — | ||||||||||
Senior notes | 98,402 | 5.98 | 98,033 | 5.98 | ||||||||||
Total borrowings | $ | 939,069 | 2.12 | % | $ | 560,986 | 3.26 | % | ||||||
By remaining period to maturity: | ||||||||||||||
Less than one year | $ | 370,365 | 0.69 | % | $ | 158,897 | 0.95 | % | ||||||
One to two years | 140,344 | 0.59 | 78,717 | 1.97 | ||||||||||
Two to three years | 257,442 | 3.52 | 191 | 5.32 | ||||||||||
Three to four years | 168,402 | 4.38 | 202,414 | 4.21 | ||||||||||
Four to five years | — | — | 118,033 | 5.57 | ||||||||||
Greater than five years | 2,516 | 4.92 | 2,734 | 4.92 | ||||||||||
Total borrowings | $ | 939,069 | 2.12 | % | $ | 560,986 | 3.26 | % | ||||||
FHLB advances and overnight. As a member of the FHLB, the Bank may borrow up to the amount of eligible mortgages and securities that have been pledged as collateral under a blanket security agreement. As of September 30, 2014 and 2013, the Bank had pledged residential mortgage and commercial real estate loans totaling $1,246,315 and $784,422, respectively. The Bank had also pledged securities to secure borrowings, which are disclosed in Note 3. “Securities.” As of September 30, 2014, the Bank may increase its borrowing capacity by pledging securities and mortgage loans not required to be pledged for other purposes with a collateral value of $703,486. | ||||||||||||||
FHLB borrowings which are putable quarterly at the discretion of the FHLB were $200,000 at September 30, 2014 and 2013. These borrowings have a weighted average remaining term to the contractual maturity dates of approximately 2.56 years and 3.56 years and a weighted average interest rates of 4.23% at both September 30, 2014 and 2013, respectively. | ||||||||||||||
Repurchase agreements. Securities sold under agreements to repurchase at September 30, 2014 are secured short-term borrowings that mature in one to 17 days. Repurchase agreements are stated at the amount of cash received in connection with these transactions. The Bank may be required to provide additional collateral based on the fair value of the underlying securities. The Bank had two $10,000 long-term repurchase agreements which were redeemed during the fiscal year ended September 30, 2014. | ||||||||||||||
Fed funds purchased. Fed funds purchased are short-term borrowings that typically mature daily and are recorded at the amount of funds received. | ||||||||||||||
Revolving line of credit. On September 5, 2014, the Company entered into a $15,000 revolving line of credit facility with a financial institution that matures on September 5, 2015. The balance was zero at September 30, 2014. The use of proceeds are for general corporate purposes. The line and accrued interest is payable at maturity, and is required to maintain a zero balance for at least 30 days during its term. The line bears interest at one-month LIBOR plus 1.25%. Under the terms of the facility, the Company and the Bank must maintain certain ratios related to capital, non-performing assets to capital, reserves to non-performing loans and debt service coverage. The Company and the Bank were in compliance with all requirements of the line at September 30, 2014. | ||||||||||||||
Senior Notes. On July 2, 2013, the Company issued $100,000 principal amount of 5.50% fixed rate Senior Notes through a private placement at a discount of 1.75%. The cost of issuance was $303, and at September 30, 2014 and 2013 the unamortized discount was $1,597 and $1,967, respectively, which will be accreted to interest expense over the life of the Senior Notes, resulting in an effective yield of 5.98%. Interest is due semi-annually in arrears on January 2 and July 2 until maturity on July 2, 2018. The Senior Notes were issued under an indenture (the “Indenture”) between the Company and U.S. Bank National Association, as trustee. | ||||||||||||||
The Senior Notes are unsecured obligations of the Company and rank equally with all other unsecured unsubordinated indebtedness, and will be effectively subordinated to any secured indebtedness to the extent of the value of the collateral securing such indebtedness, and structurally subordinated to the existing and future indebtedness of the Company’s subsidiaries. | ||||||||||||||
The indenture includes provisions that, among other things, restrict the Company’s ability to dispose of or issue shares of voting stock of a principal subsidiary bank (as defined in the Indenture) or transfer the entirety of, or a substantial amount of, the Company’s assets or merge or consolidate with or into other entities, without satisfying certain conditions. | ||||||||||||||
The Senior Notes will not be registered under the Securities Act and may not be offered or sold in the U.S. absent registration or an applicable exemption from registration requirements. | ||||||||||||||
Trust preferred capital securities. In connection with the Merger, the Company assumed $25,000 of trust preferred capital securities (the “Subordinated Debentures”). The capital securities, which were due March 31, 2032 and bore interest at 8.375%, were issued by Sterling Bancorp Trust I, a wholly-owned, non-consolidated statutory business trust. The trust was formed with initial capitalization of common stock and for the exclusive purpose of issuing the capital securities. The trust used the proceeds from the issuance of the capital securities to acquire $25,774 junior subordinated debenture securities that paid interest at 8.375% issued by the Company. The Company was not considered the primary beneficiary of the trust (which is a VIE); therefore, the trust was not consolidated in the Company’s financial statements and the subordinated debentures were recorded as a liability. The debt securities were due concurrently with the capital securities. | ||||||||||||||
On June 1, 2014, the Company redeemed all of the outstanding capital securities at a redemption price equal to 100% of the liquidation amount of the securities plus accumulated and unpaid interest, with such redemption payment made on June 2, 2014. In connection with the redemption, the Company eliminated the unamortized premium recorded to reflect the fair value of the Subordinated Debentures at the date of the Merger. The balance of the unamortized premium was $712 and this amount was recognized as a gain on extinguishment of debt and recorded as a reduction of other non-interest expense in the fiscal year ended September 30, 2014. |
Derivatives
Derivatives | 12 Months Ended | ||||||||||||||
Sep. 30, 2014 | |||||||||||||||
Derivative Instruments and Hedges, Assets [Abstract] | ' | ||||||||||||||
Derivatives | ' | ||||||||||||||
Derivatives | |||||||||||||||
The Company has two interest rate caps to offset a portion of interest rate exposure should short-term rate increases lead to rapid increases in general levels of market interest rates on deposits. These caps are linked to LIBOR and have strike prices of 3.5% and 4.0%. These caps are stand alone derivatives and therefore changes in fair value are reported in current period earnings. Losses recognized in earnings were $0 and $2 in fiscal 2014 and 2013, respectively. The fair value of the interest rate caps at September 30, 2014, is reflected in other assets with a corresponding credit (charge) to income recorded as a gain (loss) to non-interest income. | |||||||||||||||
The Company has entered into certain interest rate swap contracts that are not designated as hedging instruments. These derivative contracts relate to transactions in which the Company enters into an interest rate swap with a customer while at the same time entering into an offsetting interest rate swap with another financial institution. In connection with each swap transaction, the Company agrees to pay interest to the customer on a notional amount at a variable interest rate and receive interest from the customer on a similar notional amount at a fixed interest rate. At the same time, the Company agrees to pay another financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. The transaction allows the Company’s customers to effectively convert a variable rate loan to a fixed rate. Because the Company acts as an intermediary for its customer, changes in the fair value of the underlying derivative contracts for the most part offset each other and do not significantly impact the Company’s results of operations. | |||||||||||||||
The Company pledged collateral to another financial institution in the form of investment securities with an amortized cost of $5,034 and a fair value of $4,836 as of September 30, 2014. The Company does not typically require its commercial customers to post cash or securities as collateral on its program of back-to-back swaps. However, certain language is written into the International Swaps and Derivatives Association agreement and loan documents where, in default situations, the Company is allowed to access collateral supporting the loan relationship to recover any losses suffered on the derivative asset or liability. The Company may need to post additional collateral to swap counterparties in the future in proportion to potential increases in unrealized loss positions. | |||||||||||||||
Summary information as of September 30, 2014 and 2013 regarding these derivatives is presented below: | |||||||||||||||
Notional | Average | Weighted | Weighted | Fair value | |||||||||||
amount | maturity (in years) | average | average | ||||||||||||
fixed rate | variable rate | ||||||||||||||
30-Sep-14 | |||||||||||||||
Interest rate caps | $ | 50,000 | 0.18 | 3.75 | % | NA | $ | — | |||||||
3rd party interest rate swap | 50,729 | 4.86 | 4.2 | 1 m Libor + 2.44 | 1,096 | ||||||||||
Customer interest rate swap | (50,729 | ) | 4.86 | 4.2 | 1 m Libor + 2.44 | (1,096 | ) | ||||||||
30-Sep-13 | |||||||||||||||
Interest rate caps | $ | 50,000 | 1.18 | 3.75 | % | NA | $ | — | |||||||
3rd party interest rate swap | 54,180 | 5.76 | 4.22 | 1 m Libor + 2.45 | 997 | ||||||||||
Customer interest rate swap | (54,180 | ) | 5.76 | 4.22 | 1 m Libor + 2.45 | (997 | ) | ||||||||
The Company enters into various commitments to sell real estate loans into the secondary market. Such commitments are considered to be derivative financial instruments; however, the fair value of these commitments is not material. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
Income Taxes | ||||||||||||
Income tax expense for the periods indicated consists of the following: | ||||||||||||
For the year ended September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current tax expense: | ||||||||||||
Federal | $ | 11,613 | $ | 9,146 | $ | 5,538 | ||||||
State | 1,598 | 1,549 | 685 | |||||||||
Total current tax expense | 13,211 | 10,695 | 6,223 | |||||||||
Deferred tax (benefit) expense: | ||||||||||||
Federal | (2,745 | ) | 522 | (261 | ) | |||||||
State | (314 | ) | 197 | 197 | ||||||||
Total deferred tax (benefit) expense | (3,059 | ) | 719 | (64 | ) | |||||||
Total income tax expense | $ | 10,152 | $ | 11,414 | $ | 6,159 | ||||||
Actual income tax expense differs from the tax computed based on pre-tax income and the applicable statutory Federal tax rate for the following reasons: | ||||||||||||
For the year ended September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Tax at Federal statutory rate of 35% | $ | 13,241 | $ | 12,833 | $ | 9,116 | ||||||
State and local income taxes, net of Federal tax benefit | 834 | 1,135 | 573 | |||||||||
Tax-exempt interest, net of disallowed interest | (3,824 | ) | (2,192 | ) | (2,448 | ) | ||||||
BOLI income | (1,110 | ) | (699 | ) | (718 | ) | ||||||
Non-deductible acquisition related costs | 712 | 416 | 418 | |||||||||
Low income housing tax credits | (165 | ) | — | — | ||||||||
Other, net | 464 | (79 | ) | (782 | ) | |||||||
Actual income tax expense | $ | 10,152 | $ | 11,414 | $ | 6,159 | ||||||
Effective income tax rate | 26.8 | % | 31.1 | % | 23.6 | % | ||||||
The following table presents the Company’s deferred tax position at September 30, 2014 and 2013: | ||||||||||||
September 30, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Allowance for loan losses | $ | 17,272 | $ | 11,809 | ||||||||
Deferred compensation | 649 | 798 | ||||||||||
Other accrued compensation and benefits | 5,418 | 1,497 | ||||||||||
Accrued post retirement expense | 2,705 | 1,441 | ||||||||||
Deferred rent | — | 1,059 | ||||||||||
Intangible assets | 2,439 | — | ||||||||||
Other comprehensive loss (securities) | 5,777 | 7,844 | ||||||||||
Other comprehensive loss (defined benefit plans) | 2,371 | 2,638 | ||||||||||
Depreciation of premises and equipment | 433 | — | ||||||||||
State NOL carryforward | 1,431 | — | ||||||||||
Other | 3,511 | 2,172 | ||||||||||
Total deferred tax assets | 42,006 | 29,258 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Undistributed earnings of subsidiary not consolidated for tax return purposes (income from REITs) | 9,303 | 4,483 | ||||||||||
Prepaid pension costs | 10,579 | 3,758 | ||||||||||
Purchase accounting adjustments | 16,056 | 1,057 | ||||||||||
Depreciation and lease adjustments | — | 2,686 | ||||||||||
Deferred rent | 163 | — | ||||||||||
Intangibles amortization | — | 112 | ||||||||||
Other | 2,557 | 2,207 | ||||||||||
Total deferred tax liabilities | 38,658 | 14,303 | ||||||||||
Net deferred tax asset | $ | 3,348 | $ | 14,955 | ||||||||
Based on the Company’s consideration of historical and anticipated future pre-tax income, as well as the reversal period for the items giving rise to the deferred tax assets and liabilities, a valuation allowance for deferred tax assets was not considered necessary at either September 30, 2014 or 2013. | ||||||||||||
Retained earnings at September 30, 2014 and 2013 included approximately $9,313 for which no provision for federal income taxes has been made. This amount represents the tax bad debt reserve at December 31, 1987, which is the end of the Bank’s base year for purposes of calculating the bad debt deduction for tax purposes. If this portion of retained earnings is used in the future for any purposes other than to absorb bad debts, the amount used will be added to future taxable income. The unrecorded deferred tax liability on the above amount at both September 30, 2014 and 2013 was approximately $3,260. | ||||||||||||
At September 30, 2014 the Company has state and local NOL carryforwards that were acquired from Legacy Sterling as part of the Merger on October 31, 2013. The utilization of state and local NOLs are subject to an annual limitation. Based on our projections, we believe the state and local NOL carryforwards will be fully utilized before expiration. | ||||||||||||
At September 30, 2014and 2013, the Company had no unrecognized tax benefits or accrued interest and penalties recorded. The Company does not expect the total amount of unrecognized tax benefits to significantly increase within the next twelve months. The Company records interest and penalties as a component of income tax expense. | ||||||||||||
Sterling and its subsidiaries are subject to U.S. federal income tax as well as income tax of the state of New York and various other states. The Company is no longer subject to examination by Federal and New York taxing authorities for tax years prior to 2011. |
Employee_Benefit_Plans_And_Sto
Employee Benefit Plans And Stock-Based Compensation Plans | 12 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||
Employee Benefit Plans And Stock-Based Compensation Plans | ' | |||||||||||||||||
Employee Benefit Plans and Stock-Based Compensation Plans | ||||||||||||||||||
(a) Pension Plans | ||||||||||||||||||
On May 31, 2014, the Company merged the Provident Bank Benefit Pension Plan (the “legacy Provident Plan”) and the Legacy Sterling/Sterling National Bank Employees’ Retirement Plan (the “Legacy Sterling Plan”) and formed the Sterling National Bank Defined Benefit Pension Plan. The legacy Provident Plan covers employees that were eligible as of September 30, 2006. The Board of Directors approved a curtailment to the legacy Provident Plan effective September 30, 2006. At that time, all benefit accruals for future service ceased and no new participants were allowed to enter the Plan. The purpose of the Plan curtailment was to afford flexibility in the retirement benefits the Company provides, while preserving all retirement plan participants’ earned and vested benefits, and to manage the increasing costs associated with the defined benefit pension plan. The Legacy Sterling Plan was a defined benefit plan that covered eligible employees of Legacy Sterling and Legacy Sterling National Bank and certain of its subsidiaries who were hired prior to January 3, 2006 and who attained age 21 prior to January 3, 2007. Effective October 31, 2013, the Legacy Sterling Plan was amended and the accrued benefit of each eligible actively employed participant that had not yet commenced benefits was increased by approximately 4.4% and the accrual of future service benefits ceased. | ||||||||||||||||||
The following is a summary of changes in the projected benefit obligation and fair value of plan assets. The Company uses a September 30 measurement date for its pension plans. | ||||||||||||||||||
September 30, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Changes in projected benefit obligation: | ||||||||||||||||||
Beginning of year balance | $ | 31,705 | $ | 35,471 | ||||||||||||||
Benefit obligation of the Legacy Sterling Plan at October 31, 2013 | 52,296 | — | ||||||||||||||||
Service cost | — | — | ||||||||||||||||
Interest cost | 2,779 | 1,452 | ||||||||||||||||
Actuarial loss (gain) | 9,460 | (3,672 | ) | |||||||||||||||
Partial settlement | (44,774 | ) | — | |||||||||||||||
Benefits and distributions paid | (1,748 | ) | (1,546 | ) | ||||||||||||||
End of year balance | 49,718 | 31,705 | ||||||||||||||||
Changes in fair value of plan assets: | ||||||||||||||||||
Beginning of year balance | 35,417 | 32,657 | ||||||||||||||||
Fair value of the Legacy Sterling Plan assets at October 31, 2013 | 71,538 | — | ||||||||||||||||
Actual gain on plan assets | 8,137 | 4,306 | ||||||||||||||||
Employer contributions | — | — | ||||||||||||||||
Partial settlement | (44,774 | ) | — | |||||||||||||||
Benefits and distributions paid | (1,748 | ) | (1,546 | ) | ||||||||||||||
End of year balance | 68,570 | 35,417 | ||||||||||||||||
Funded status at end of year | $ | 18,852 | $ | 3,712 | ||||||||||||||
During the year ended September 30, 2014 the Company settled a portion of the pension obligation associated with retired employees in the amount of $44,774 through the purchase of annuities. | ||||||||||||||||||
The over-funded status of the Sterling National Bank Defined Benefit Pension Plan is included in other assets in the Consolidated Balance Sheets. | ||||||||||||||||||
The components of net periodic pension expense were as follows: | ||||||||||||||||||
For the year ended September 30, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Service cost | $ | — | $ | — | $ | — | ||||||||||||
Interest cost | 2,779 | 1,452 | 1,501 | |||||||||||||||
Expected return on plan assets | (3,380 | ) | (2,462 | ) | (2,125 | ) | ||||||||||||
Amortization of unrecognized actuarial loss | 236 | 2,062 | 2,316 | |||||||||||||||
Partial settlement charge | 3,922 | — | — | |||||||||||||||
Net periodic pension expense | $ | 3,557 | $ | 1,052 | $ | 1,692 | ||||||||||||
Net periodic pension expense is included in compensation and benefits in the Consolidated Income Statements. | ||||||||||||||||||
The amount of unrecognized actuarial loss and prior service cost that is expected to be amortized to net periodic pension expense during the fiscal year ending September 30, 2015 is $0. | ||||||||||||||||||
Amounts recognized in accumulated other comprehensive (loss) at September 30, 2014 and 2013 consisted of: | ||||||||||||||||||
September 30, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Unrecognized actuarial loss | $ | (6,024 | ) | $ | (5,479 | ) | ||||||||||||
Deferred tax asset | 2,556 | 2,225 | ||||||||||||||||
Net amount recognized in accumulated other comprehensive (loss) | $ | (3,468 | ) | $ | (3,254 | ) | ||||||||||||
The principal actuarial assumptions used at September 30, 2014 and 2013 were as follows: | ||||||||||||||||||
September 30, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Projected benefit obligation: | ||||||||||||||||||
Discount rate | 4.5 | % | 5.2 | % | ||||||||||||||
Net periodic pension cost: | ||||||||||||||||||
Discount rate | 4.5 | % | 5.2 | % | ||||||||||||||
Long-term rate of return on plan assets | 4 | % | 7.75 | % | ||||||||||||||
The discount rate used in the measurement of the projected benefit obligation is determined by comparing the expected future retirement benefit payment cash flows of the Plan to the cash flows of a high-quality corporate bond portfolio as of the measurement date. The expected long-term rate of return on Plan assets reflect earnings expectations on existing Plan assets. In estimating this rate, appropriate consideration was given to historical returns earned by Plan assets in the funds and the rates of return expected to be available for reinvestment. The rate of return estimated at September 30, 2014 reflects the shift in the allocation of the Plan assets to a liability driven investment strategy which is more heavily weighted towards long-term fixed income assets with a similar duration profile to the Plan liabilities. | ||||||||||||||||||
Estimated future benefit payments are the following for the years ending September 30: | ||||||||||||||||||
2015 | $ | 726 | ||||||||||||||||
2016 | 902 | |||||||||||||||||
2017 | 1,079 | |||||||||||||||||
2018 | 1,625 | |||||||||||||||||
2019 | 1,851 | |||||||||||||||||
2020 - 2024 | 13,461 | |||||||||||||||||
The Company’s funding policy is to contribute annually an amount sufficient to meet statutory minimum funding requirements, but not in excess of the maximum amount deductible for Federal income tax purposes. Contributions are intended to provide not only for benefits attributed to service to date, but also for benefits expected to be earned in the future. | ||||||||||||||||||
The following is a description of the valuation methodologies used for assets measured at fair value. There were no changes in the methodologies used at September 30, 2014 and 2013. See Note 17. “Fair Value Measurements” for a detailed discussion of the three levels of inputs that may be used to measure fair values. | ||||||||||||||||||
The fair value of the Plan assets is based on the lowest level of any input that is significant to the fair value measurement within the fair value hierarchy. Plan assets consisted of pooled separate accounts at September 30, 2014. The fair value of shares of units of participation in pooled separate accounts are based on the net asset values of the funds reported by the fund managers as of September 30, 2014 and recent transaction prices (Level 2 inputs). Assets allocated to these pooled separate accounts can include, but are not limited to stocks (both domestic and foreign), bonds and mutual funds. While some pooled separate accounts may have publicly quoted prices (Level 1 inputs), the units of separate accounts are not publicly quoted and are therefore classified as Level 2. The fair value of Plan assets by asset category as of September 30, 2014 and 2013, was the following: | ||||||||||||||||||
30-Sep-14 | ||||||||||||||||||
Fair value | Level 1 inputs | Level 2 inputs | Level 3 inputs | |||||||||||||||
Asset category: | ||||||||||||||||||
Intermediate term bond | $ | 8,629 | $ | — | $ | 8,629 | $ | — | ||||||||||
Long-term bond | 59,892 | — | 59,892 | — | ||||||||||||||
Total assets | $ | 68,521 | $ | — | $ | 68,521 | $ | — | ||||||||||
30-Sep-13 | ||||||||||||||||||
Fair value | Level 1 inputs | Level 2 inputs | Level 3 inputs | |||||||||||||||
Asset category: | ||||||||||||||||||
Large cap U.S. equity | $ | 16,378 | $ | — | $ | 16,378 | $ | — | ||||||||||
Small and mid cap U.S. equity | 4,443 | — | 4,443 | — | ||||||||||||||
International equity | 3,654 | — | 3,654 | — | ||||||||||||||
Total equity | 24,475 | — | 24,475 | — | ||||||||||||||
Total balanced asset allocation | 1,691 | — | 1,691 | — | ||||||||||||||
High yield bond | 1,018 | — | 1,018 | — | ||||||||||||||
Intermediate term bond | 8,233 | — | 8,233 | — | ||||||||||||||
Total fixed income | 9,251 | — | 9,251 | — | ||||||||||||||
Total assets | $ | 35,417 | $ | — | $ | 35,417 | $ | — | ||||||||||
The Company’s policy is to invest the Plan assets in a prudent manner for the purpose of providing benefit payments to participants and offsetting reasonable expenses of administration. Historically, the Company’s investment strategy was designed to provide a total return that, over the long-term, placed a strong emphasis on the preservation of capital and compliance with applicable regulations and laws. Management intends to terminate the Plan in fiscal 2015 subject to obtaining required approvals from the Internal Revenue Service and other regulators. Therefore, the investment allocation of Plan assets was shifted in fiscal 2014 to a liability driven investment strategy which is more heavily weighted towards long-term fixed income assets with a similar duration profile to the Plan liabilities. As of September 30, 2014, the majority of the Plan assets were invested in funds specifically designed for liability driven investment strategies and had a weighted average expected rate of return of 4.0%. | ||||||||||||||||||
The Plan’s investment policy prohibits the direct investment in real estate but allows the Plan’s mutual funds to include a small percentage of real estate related investments. The investment strategy utilizes asset allocation as a principal determinant for establishing an appropriate risk profile. Weighted average pension plan asset allocations based on the fair value of such assets at September 30, 2014 and September 30, 2013 and target allocation ranges for 2014, by asset category, are as follows: | ||||||||||||||||||
2014 | 2013 | Target allocation | Weighted | |||||||||||||||
range 2014 | average expected | |||||||||||||||||
rate of return | ||||||||||||||||||
Large cap U.S. equity | — | % | 44 | % | — | % | ||||||||||||
Small and mid cap U.S. equity | — | 11 | — | |||||||||||||||
International equity | — | 10 | — | |||||||||||||||
Total equity | — | 65 | 0% | — | ||||||||||||||
Total balanced asset allocation | — | 5 | — | |||||||||||||||
High yield bond | — | 3 | — | |||||||||||||||
Intermediate term bond | 13 | 27 | — | |||||||||||||||
Long-term bond | 87 | — | — | |||||||||||||||
Total fixed income | 100 | 30 | 95% - 100% | 4 | ||||||||||||||
Total assets | 100 | % | 100 | % | 4 | % | ||||||||||||
Cash | — | — | 0% to 5% | — | ||||||||||||||
There were no pension plan assets consisting of Sterling Bancorp equity securities (common stock) at September 30, 2014 or at September 30, 2013. | ||||||||||||||||||
The Company makes contributions to its funded qualified pension plans as required by government regulation or as deemed appropriate by management after considering the fair value of plan assets, expected returns on such assets, and the present value of benefit obligations of the plans. At this time, the Company has not determined whether contributions in fiscal 2015 will be made. | ||||||||||||||||||
(b) Other Post Retirement Benefit Plans | ||||||||||||||||||
The Company provides other post retirement benefit plans, which are unfunded. Included in the tables below is information regarding the Company’s optional medical, dental and life insurance benefits to retirees plan, Supplemental Executive Retirement Plan to certain former directors and officers of the Company, life insurance benefits to certain directors, officers and former officers of Legacy Sterling. | ||||||||||||||||||
Data relating to other post retirement benefit plans is the following: | ||||||||||||||||||
September 30, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Changes in accumulated post retirement benefit obligation: | ||||||||||||||||||
Beginning of year | $ | 3,302 | $ | 3,103 | ||||||||||||||
Obligations assumed from Legacy Sterling | 9,644 | — | ||||||||||||||||
Service cost | 51 | 48 | ||||||||||||||||
Interest cost | 683 | 134 | ||||||||||||||||
Actuarial loss | 79 | 177 | ||||||||||||||||
Curtailment (gain) | (2,485 | ) | — | |||||||||||||||
Benefits paid | (284 | ) | (160 | ) | ||||||||||||||
End of year | 10,990 | 3,302 | ||||||||||||||||
Changes in fair value of plan assets: | ||||||||||||||||||
Beginning of year | $ | — | $ | — | ||||||||||||||
Employer contributions | 284 | 160 | ||||||||||||||||
Plan participants’ contributions | — | — | ||||||||||||||||
Benefits paid | (284 | ) | (160 | ) | ||||||||||||||
End of year | — | — | ||||||||||||||||
Funded status | $ | (10,990 | ) | $ | (3,302 | ) | ||||||||||||
Components of net periodic (benefit) expense for other post retirement benefit plans was the following: | ||||||||||||||||||
For the year ended September 30, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Service cost | $ | 51 | $ | 48 | $ | 46 | ||||||||||||
Interest cost | 683 | 134 | 125 | |||||||||||||||
Amortization of transition obligation | 34 | 24 | 24 | |||||||||||||||
Amortization of prior service cost | 270 | 47 | 47 | |||||||||||||||
Amortization of net actuarial (gain) loss | (45 | ) | 2 | (25 | ) | |||||||||||||
Curtailment (gain) | (2,485 | ) | — | — | ||||||||||||||
Total | $ | (1,492 | ) | $ | 255 | $ | 217 | |||||||||||
The Company terminated the optional medical and dental plan to retirees effective September 30, 2014 and all payments under the plan will cease on December 31, 2014. Net periodic benefit expense for other post retirement benefit plans is included in non-interest expense - compensation and employee benefits for the fiscal years ended September 30, 2014, 2013 and 2012. The Company’s liability under its other post retirement benefit plans is included in other liabilities in the balance sheet at September 30, 2014 and 2013. | ||||||||||||||||||
Estimated future benefit payments are the following for the years ending September 30: | ||||||||||||||||||
2015 | $ | 660 | ||||||||||||||||
2016 | 231 | |||||||||||||||||
2017 | 271 | |||||||||||||||||
2018 | 319 | |||||||||||||||||
2019 | 373 | |||||||||||||||||
2020 - 2024 | 2,370 | |||||||||||||||||
Plan assumptions for the other post retirement medical, dental and vision plans include the following: | ||||||||||||||||||
For the year ended September 30, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Medical trend rate next year | 4.5 | % | 4.5 | % | ||||||||||||||
Ultimate trend rate | 4.5 | 4.5 | ||||||||||||||||
Discount rate | 3.50% to 4.27% | 4.2 | ||||||||||||||||
Discount rate used to value periodic cost | 3.50% to 4.20% | 4.1 | ||||||||||||||||
There is no impact of a 1% increase or decrease in health care trend rate due to the Company’s cap on cost. | ||||||||||||||||||
(c) Employee Savings Plan | ||||||||||||||||||
The Company also sponsors a defined contribution plan established under Section 401(k) of the IRS Code. Eligible employees may elect to contribute up to 50.0% of their compensation to the plan. The Company currently makes matching contributions equal to 50.0% of a participant’s contributions up to a maximum matching contribution of 3.0% of eligible compensation. The plan also provides for a discretionary profit sharing component, in addition to the matching contributions. Fiscal year 2014 did not include a profit sharing component. Voluntary matching and profit sharing contributions are invested in accordance with the participant’s direction in one or a number of investment options. Savings plan expense was $1,614, $935 and $1,029 for the years ended September 30, 2014, 2013 and 2012, respectively. | ||||||||||||||||||
(d) Employee Stock Ownership Plan (“ESOP”) | ||||||||||||||||||
In connection with the Second-Step Stock Conversion and Offering in January 2004, the Company established an ESOP for substantially all eligible employees who meet certain age and service requirements. The ESOP borrowed $9,987 from Sterling and used the funds to purchase 998,650 shares of common stock in the offering. The term of this ESOP loan was twenty years. | ||||||||||||||||||
On October 30, 2013, the Company terminated the ESOP. In accordance with the provisions of the plan, all participants received contributions for calendar year 2013 and became 100% vested in their accounts. On February 4, 2014, the ESOP held 499,330 shares of the Company’s common stock. Of these shares, 488,403 were used to retire the ESOP trust outstanding loan obligation, which was $5,983 including accrued interest. In accordance with the provisions of the ESOP, the remaining 10,927 shares were allocated ratably to ESOP participants. ESOP expense was $295, $497, and $390 for the years ended September 30, 2014, 2013 and 2012, respectively. | ||||||||||||||||||
(e) Stock Compensation Plans | ||||||||||||||||||
The Company has active stock compensation plans as described below. | ||||||||||||||||||
The Company’s stockholders approved the 2014 Stock Incentive Plan (the “2014 Plan”) on February 20, 2014. The 2014 Plan permits the grant of stock options, stock appreciation rights, restricted stock (both time-based and performance-based), restricted stock units, performance units, deferred stock, and other stock-based awards for up to 3,400,000 shares of common stock. At September 30, 2014 there were 3,350,761 shares available for future grant. The 2014 Plan replaced the Company’s 2012 Stock Incentive Plan (the “2012 Plan”) described below. | ||||||||||||||||||
Under the 2014 Plan, any shares that are subject to stock options or stock appreciation rights are counted as one share deducted from the 2014 Plan for every one share delivered under those awards. Any shares granted under the 2014 Plan that are subject to awards other than stock options and stock appreciation rights are counted as 3.5 shares deducted from the 2014 Plan for every one share delivered under those awards. | ||||||||||||||||||
The 2012 Plan was a shareholder-approved plan that permitted the grant of stock options, stock appreciation rights, restricted stock (both time-based and performance-based), restricted stock units, performance units, deferred stock and other stock-based awards. Prior to the approval of the 2014 Plan, there were 566,554 shares remaining for issuance under the 2012 Plan. These shares are included in the aggregate 3,400,000 shares available under the 2014 Plan. The Company will no longer make awards under the 2012 Plan. | ||||||||||||||||||
The Company’s 2004 Stock Incentive Plan (the “2004 Plan”), was a shareholder-approved plan that permitted the grant of stock options to its employees for up to 2,796,220 shares of common stock. The Company will no longer make awards under the 2004 Plan. As of September 30, 2014, 11,533 restricted shares awarded under the 2004 Plan were potentially subject to accelerated vesting as the employees were eligible for retirement. | ||||||||||||||||||
Stock option awards are granted with a fair value equal to the market price of the Company’s common stock at the date of grant; the awards generally vest in equal installments annually on the anniversary date and have total vesting periods ranging from 2 to 5 years and stock options have 10 year contractual terms. | ||||||||||||||||||
The Company’s 2004 Restricted Stock Plan, which historically has been referred to as the Recognition and Retention Plan (“RRP”), provides for the issuance of shares to directors and officers. RRP shares vest annually on the anniversary of the grant date over the vesting period. There were no shares remaining that are authorized and available for future grant under the RRP at September 30, 2014. | ||||||||||||||||||
In addition to the above plans, the Company provided awards under its 2011 Employment Inducement Stock Program which included options to purchase 107,256 shares of common stock and restricted stock awards covering 29,550 shares of common stock, both of which vest in four equal installments through July 2015, and performance-based restricted stock awards covering 11,820 shares which vest upon attainment of designated performance conditions in combination with continued service through December 31, 2014. These awards are governed by the terms of an award notice and the terms of the 2004 Plan. | ||||||||||||||||||
In connection with the Merger, the Company granted 104,152 options at an exercise price of $14.25 per share pursuant to a Registration Statement on Form S-8 under which the Company assumed all outstanding fully vested Legacy Sterling stock options. Substantially all of these options expire March 15, 2017. During the fiscal year ended September 30, 2014, 37,873 of these awards were canceled or forfeited. The Company also granted 95,991 shares under the Sterling Bancorp 2013 Employment Inducement Award Plan to certain executive officers of Legacy Sterling. In addition, the Company issued 255,973 shares of restricted stock from shares available under the Company’s 2012 Plan to certain executives of Legacy Sterling. The weighted average grant date fair value was $11.72 per share and the restricted stock awards vest in equal annual installments on the anniversary date over a three-year period. | ||||||||||||||||||
The following table summarizes the activity in the Company’s active stock-based compensation plans for September 30, 2014: | ||||||||||||||||||
Non-vested stock awards/stock units outstanding | Stock options outstanding | |||||||||||||||||
Shares available for grant | Number of shares | Weighted average grant date fair value | Number of shares | Weighted average exercise price | ||||||||||||||
Balance at October 1, 2013 | 2,066,184 | 209,697 | $ | 8.73 | 2,114,509 | $ | 10.71 | |||||||||||
2014 Stock Incentive Plan | 3,400,000 | |||||||||||||||||
2012 Stock Incentive Plan termination | (566,554 | ) | ||||||||||||||||
Grants associated with the Merger(1) | (921,503 | ) | 351,964 | 11.72 | 104,152 | 14.25 | ||||||||||||
Granted (1) | (719,674 | ) | 115,145 | 11.53 | 324,862 | 11.45 | ||||||||||||
Stock awards vested | — | (69,211 | ) | 9.51 | — | — | ||||||||||||
Exercised | — | — | — | (507,955 | ) | 11.29 | ||||||||||||
Forfeited | 439,594 | (18,841 | ) | (9.18 | ) | (375,235 | ) | 12.24 | ||||||||||
Canceled/expired | (347,286 | ) | — | — | — | |||||||||||||
Balance at September 30, 2014 | 3,350,761 | 588,754 | $ | 10.99 | 1,660,333 | $ | 10.55 | |||||||||||
Exercisable at September 30, 2014 | 951,492 | $ | 11.11 | |||||||||||||||
(1) Reflects certain non-vested stock awards that count as 3.5 shares or 3.6 shares for each share granted. | ||||||||||||||||||
Other information regarding options outstanding at September 30, 2014 follows: | ||||||||||||||||||
Outstanding | Exercisable | |||||||||||||||||
Weighted average | Weighted average | |||||||||||||||||
Number of | Exercise | Life | Number of | Exercise | Life | |||||||||||||
stock options | price | (in years) | stock options | price | (in years) | |||||||||||||
Range of exercise prices: | ||||||||||||||||||
$6.71 to $9.00 | 689,711 | $ | 8.38 | 7.57 | 322,148 | $ | 8.36 | 7.57 | ||||||||||
$9.28 to $12.64 | 787,243 | 11.73 | 5.02 | 445,965 | 12.05 | 5.1 | ||||||||||||
$12.84 to $13.92 | 183,379 | 13.68 | 2.69 | 183,379 | 13.68 | 2.69 | ||||||||||||
1,660,333 | 10.55 | 5.82 | 951,492 | 11.11 | 5.82 | |||||||||||||
The total intrinsic value of outstanding in-the-money stock options and outstanding in-the-money exercisable stock options was $3.9 million and $1.8 million, at September 30, 2014. | ||||||||||||||||||
Proceeds from stock option exercises were $2,980, $62 and $102 for fiscal 2014, 2013, and 2012, respectively. | ||||||||||||||||||
The Company uses an option pricing model to estimate the grant date fair value of stock options granted. The weighted average estimated value per option granted was $2.51 in 2014, $2.74 in 2013, and $2.31 in 2012. | ||||||||||||||||||
The fair value of options granted was determined using the following weighted-average assumptions as of the grant date: | ||||||||||||||||||
For the year ended September 30, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Risk-free interest rate | 1.8 | % | 1 | % | 1.4 | % | ||||||||||||
Expected stock price volatility | 26.4 | 40.8 | 40 | |||||||||||||||
Dividend yield (1) | 2 | 2.6 | 3 | |||||||||||||||
Expected term in years | 5.67 | 5.75 | 5.82 | |||||||||||||||
(1) Represents the approximate annualized cash dividend rate paid with respect to a share of common stock at or near the grant date. | ||||||||||||||||||
Stock-based compensation expense is recognized ratably over the requisite service period for all awards. Stock-based compensation expense associated with stock options and non-vested stock awards and the related income tax benefit was as follows: | ||||||||||||||||||
For the year ended September 30, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Stock options | $ | 901 | $ | 695 | $ | 521 | ||||||||||||
Non-vested stock awards/performance units | 2,508 | 1,047 | 276 | |||||||||||||||
Total | $ | 3,409 | $ | 1,742 | $ | 797 | ||||||||||||
Income tax benefit | 914 | 542 | 188 | |||||||||||||||
Unrecognized stock-based compensation expense at September 30, 2014 was as follows: | ||||||||||||||||||
30-Sep-14 | ||||||||||||||||||
Stock options | $ | 962 | ||||||||||||||||
Non-vested stock awards/stock units | 4,013 | |||||||||||||||||
Total | $ | 4,975 | ||||||||||||||||
The weighted average period over which unrecognized stock options was expected to be recognized was 1.66 years. The weighted average period over which unrecognized non-vested awards/performance units was expected to be recognized was 1.82 years. |
Other_NonInterest_Expense
Other Non-Interest Expense | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Other Income and Expenses [Abstract] | ' | ||||||||||||
Other Non-interest Expense | ' | ||||||||||||
Other Non-interest Expense | |||||||||||||
Other non-interest expense items are presented in the following table. Components exceeding 1% of the aggregate of total net interest income and total non-interest income are presented separately. | |||||||||||||
For the year ended September 30, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Other non-interest expense: | |||||||||||||
Advertising and promotion | $ | 2,358 | $ | 1,502 | $ | 1,849 | |||||||
Professional fees | 6,913 | 3,393 | 4,247 | ||||||||||
Data and check processing | 3,439 | 2,520 | 2,802 | ||||||||||
ATM/debit card expense | 1,249 | 1,722 | 1,711 | ||||||||||
Insurance & surety bond premium | 2,703 | 1,199 | 1,220 | ||||||||||
Charge for asset write-downs, severance and retention | 22,976 | — | — | ||||||||||
Charge for banking systems conversion | 3,249 | — | — | ||||||||||
Other | 15,030 | 7,040 | 6,562 | ||||||||||
Total other non-interest expense | $ | 57,917 | $ | 17,376 | $ | 18,391 | |||||||
Earnings_Per_Common_Share
Earnings Per Common Share | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Earnings Per Common Share | ' | |||||||||||
Earnings Per Common Share | ||||||||||||
The following is a summary of the calculation of earnings per share (“EPS”): | ||||||||||||
For the year ended September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net income | $ | 27,678 | $ | 25,254 | $ | 19,888 | ||||||
Weighted average common shares outstanding for computation of basic EPS (1) | 80,268,970 | 43,734,425 | 38,227,653 | |||||||||
Common-equivalent shares due to the dilutive effect of stock options (2) | 265,073 | 48,628 | 20,393 | |||||||||
Weighted average common shares for computation of diluted EPS | 80,534,043 | 43,783,053 | 38,248,046 | |||||||||
Earnings per common share: | ||||||||||||
Basic | $ | 0.34 | $ | 0.58 | $ | 0.52 | ||||||
Diluted | 0.34 | 0.58 | 0.52 | |||||||||
-1 | Includes earned ESOP shares. | |||||||||||
-2 | Represents incremental shares computed using the treasury stock method. | |||||||||||
As of September 30, 2014, 2013 and 2012 there were 697,475; 1,786,608; and 1,771,132 stock options, respectively, that were considered anti-dilutive and were not included in common-equivalent shares. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | |||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||||||||
Stockholders' Equity | ' | |||||||||||||||||||||
Stockholders’ Equity | ||||||||||||||||||||||
(a) Regulatory Capital Requirements | ||||||||||||||||||||||
In connection with the Merger, the Company became a bank holding company and a financial holding company as defined by the Bank Holding Company Act of 1956, as amended. Effective in the quarter ended December 31, 2013, Sterling Bancorp is subject to capital ratio requirements as discussed below. | ||||||||||||||||||||||
Banks and bank holding companies are subject to various regulatory capital requirements administered by the federal banking agencies. Capital adequacy guidelines, and additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk-weighting, and other factors. Quantitative measures established by regulations to ensure capital adequacy require the maintenance of minimum amounts and ratios (as forth in the table below) of Total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital to adjusted quarterly average assets (as defined). | ||||||||||||||||||||||
The Tier 1 and Total capital ratios are calculated by dividing the respective capital amounts by risk-weighed assets. Risk-weighted assets are calculated based on regulatory requirements and include total assets, excluding goodwill and other intangible assets, allocated by risk weight category, and certain off-balance sheet items (mainly loan commitments). Tier 1 capital to average assets is calculated by dividing Tier 1 capital by adjusted quarterly average total assets, which exclude goodwill and other intangible assets. | ||||||||||||||||||||||
Fiscal year end actual and required capital ratios for the Company and the Bank were as follows: | ||||||||||||||||||||||
Regulatory requirements | ||||||||||||||||||||||
The Bank and the Company | Minimum capital | Classification as well- | ||||||||||||||||||||
adequacy | capitalized | |||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||
Tier 1 leverage capital (to average assets): | ||||||||||||||||||||||
Sterling National Bank | $ | 636,507 | 9.34 | % | $ | 272,542 | 4 | % | $ | 340,677 | 5 | % | ||||||||||
Sterling Bancorp | 553,117 | 8.12 | 272,385 | 4 | 340,481 | 5 | ||||||||||||||||
Tier 1 capital (to risk-weighted assets): | ||||||||||||||||||||||
Sterling National Bank | 636,507 | 11.94 | 213,176 | 4 | 319,763 | 6 | ||||||||||||||||
Sterling Bancorp | 553,117 | 10.33 | 214,102 | 4 | 321,153 | 6 | ||||||||||||||||
Total capital (to risk-weighted assets): | ||||||||||||||||||||||
Sterling National Bank | 677,514 | 12.71 | 426,351 | 8 | 532,939 | 10 | ||||||||||||||||
Sterling Bancorp | 594,124 | 11.1 | 428,204 | 8 | 535,254 | 10 | ||||||||||||||||
Sterling National Bank only | ||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||
Tier 1 leverage | $ | 363,274 | 9.33 | % | $ | 155,670 | 4 | % | $ | 194,587 | 5 | % | ||||||||||
Risk-based capital: | ||||||||||||||||||||||
Tier 1 | 363,274 | 13.18 | 110,235 | 4 | 165,352 | 6 | ||||||||||||||||
Total | 392,376 | 14.24 | 220,469 | 8 | 275,587 | 10 | ||||||||||||||||
Management believes that as of September 30, 2014, Sterling Bancorp and Sterling National Bank were “well-capitalized”. | ||||||||||||||||||||||
A reconciliation of the Company’s stockholders’ equity to its regulatory capital at September 30, 2014 and the Bank’s total stockholder’s equity to the Bank’s regulatory capital at September 30, 2014 and 2013 is as follows: | ||||||||||||||||||||||
The Company | The Bank | |||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||
2014 | 2014 | 2013 | ||||||||||||||||||||
Total GAAP stockholders’ equity | $ | 961,138 | $ | 1,011,973 | $ | 516,281 | ||||||||||||||||
Disallowed goodwill and other intangible assets | (419,327 | ) | (386,766 | ) | (168,122 | ) | ||||||||||||||||
Net unrealized loss on available for sale securities | 7,815 | 7,809 | 11,455 | |||||||||||||||||||
Disallowed servicing asset | (153 | ) | (153 | ) | (198 | ) | ||||||||||||||||
Net actuarial loss on defined benefit pension plans | 3,644 | 3,644 | 3,858 | |||||||||||||||||||
Tier 1 risk-based capital | 553,117 | 636,507 | 363,274 | |||||||||||||||||||
Allowance for loan losses and off-balance sheet commitments | 41,007 | 41,007 | 29,102 | |||||||||||||||||||
Total risk-based capital | $ | 594,124 | $ | 677,514 | $ | 392,376 | ||||||||||||||||
(b) Dividend Restrictions | ||||||||||||||||||||||
The Company is mainly dependent upon dividends from the Bank to provide funds for the payment of dividends to stockholders and to provide for other cash requirements. Banking regulations may limit the amount of dividends that may be paid. Approval by regulatory authorities is required if the effect of dividends declared would cause the regulatory capital of the Bank to fall below specified minimum levels. Approval is also required if dividends declared exceed the net profits for that fiscal year combined with the retained net profits for the preceding two fiscal years. Under the foregoing dividend restrictions and while maintaining its “well-capitalized” status, at September 30, 2014, the Bank had capacity to pay aggregate dividends of up to $47,879 to the Company without prior regulatory approval. | ||||||||||||||||||||||
(c) Stock Repurchase Plans | ||||||||||||||||||||||
From time to time, the Company’s board of directors has authorized stock repurchase plans. The Company has 776,713 shares that are available to be purchased under an announced stock repurchase program. There were no shares repurchased under the repurchase programs during the fiscal years ended September 30, 2014, 2013, or 2012. | ||||||||||||||||||||||
(d) Liquidation Rights | ||||||||||||||||||||||
Upon completion of the second-step conversion in January 2004, the Bank established a special “liquidation account” in accordance with OCC regulations. The account was established for the benefit of Eligible Account Holders and Supplemental Eligible Account Holders (as defined in the plan of conversion) in an amount equal to the greater of (i) the Mutual Holding Company’s ownership interest in the retained earnings of the Bank as of the date of its latest balance sheet contained in the prospectus, or (ii) the retained earnings of the Bank at the time that the Bank reorganized into the Mutual Holding Company in 1999. Each Eligible Account Holder and Supplemental Eligible Account Holder that continues to maintain his or her deposit account at the Bank would be entitled, in the event of a complete liquidation of the Bank, to a pro rata interest in the liquidation account prior to any payment to the stockholders of the Holding Company. The liquidation account is reduced annually on September 30 to the extent that Eligible Account Holders and Supplemental Eligible Account Holders have reduced their qualifying deposits as of each anniversary date. At September 30, 2014, the liquidation account had a balance of $13,300. Subsequent increases in deposits do not restore such account holder’s interest in the liquidation account. The Bank may not pay cash dividends or make other capital distributions if the effect thereof would be to reduce its stockholder’s equity below the amount of the liquidation account. |
OffBalanceSheet_Financial_Inst
Off-Balance-Sheet Financial Instruments | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Off-Balance-Sheet Financial Instruments [Abstract] | ' | |||||||
Off-Balance-Sheet Financial Instruments | ' | |||||||
Off-Balance-Sheet Financial Instruments | ||||||||
In the normal course of business, the Company enters into various transactions, which in accordance with generally accepted accounting principles are not included in its consolidated balance sheet. The Company enters into these transactions to meet the financing needs of its customers. These transactions include commitments to extend credit and standby letters of credit, which involve, to varying degrees, elements of credit risk and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. The Company minimizes its exposure to loss under these commitments by subjecting them to credit approval and monitoring procedures. | ||||||||
The Company enters into contractual commitments to extend credit, normally with fixed expiration dates or termination clauses, at specified rates and for specific purposes. Substantially all of the Company’s commitments to extend credit are contingent upon customers maintaining specific credit standards at the time of loan funding. Standby letters of credit are written conditional commitments issued by the Company to guarantee the performance of a customer to a third-party. In the event the customer does not perform in accordance with the terms of the agreement with the third-party, the Company would be required to fund the commitment. The maximum potential amount of future payments the Company could be required to make is represented by the contractual amount of the commitment. If the commitment were funded, the Company would be entitled to seek recovery from the customer. Based on the Company’s credit risk exposure assessment of standby letter of credit arrangements, the arrangements contain security and debt covenants similar to those contained in loan agreements. As of September 30, 2014, the Company had $97,468 in outstanding letters of credit, of which $21,756 were secured by cash collateral and $34,687 were secured by other collateral. The carrying value of these obligations are not considered material. | ||||||||
The contractual or notional amounts of these instruments, which reflect the extent of the Company’s involvement in particular classes of off-balance sheet financial instruments, are summarized as follows: | ||||||||
September 30, | ||||||||
2014 | 2013 | |||||||
Loan origination commitments | $ | 213,793 | $ | 171,032 | ||||
Unused lines of credit | 306,482 | 207,201 | ||||||
Letters of credit | 97,468 | 35,052 | ||||||
Commitment_and_Contingencies
Commitment and Contingencies | 12 Months Ended | |||
Sep. 30, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Commitments and Contingencies | ' | |||
Commitments and Contingencies | ||||
Certain premises and equipment are leased under operating leases with terms expiring through 2033. The Company has the option to renew certain of these leases for additional terms. Future minimum rental payments due under non-cancellable operating leases with initial or remaining terms of more than one year at September 30, 2014 were as follows: | ||||
2014 | $ | 8,984 | ||
2015 | 8,517 | |||
2016 | 7,690 | |||
2017 | 7,702 | |||
2018 | 6,386 | |||
2019 and thereafter | 27,012 | |||
$ | 66,291 | |||
Occupancy and office operations expense includes net rent expense of $7,893, $3,340 and $2,952 for the years ended September 30, 2014, 2013 and 2012, respectively. | ||||
Litigation | ||||
The Company and the Bank are involved in a number of judicial proceedings concerning matters arising from conducting their business activities. These include routine legal proceedings arising in the ordinary course of business. These proceedings also include actions brought against the Company and the Bank with respect to corporate matters and transactions in which the Company and the Bank were involved. In addition, the Company and the Bank may be requested to provide information or otherwise cooperate with government authorities in the conduct of investigations of other persons or industry groups. It is possible the Company will be named as a defendant in shareholder litigation arising out of the announcement of the HVB Merger. The Company believes that any such claims would be without merit. | ||||
There can be no assurance as to the ultimate outcome of a legal proceeding; however, the Company and the Bank have generally denied, or believe they have meritorious defenses and will deny, liability in all significant litigation pending against us, and we intend to defend vigorously each case, other than matters we determine are appropriate to be settled. We accrue a liability for legal claims when payments associated with the claims become probable and the costs can be reasonably estimated. The actual costs of resolving legal claims may be substantially higher or lower than the amounts accrued for those claims. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair value measurements | ' | |||||||||||||||
Fair value measurements | ||||||||||||||||
Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values. | ||||||||||||||||
Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date. | ||||||||||||||||
Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risk, etc.) or inputs that are derived principally from, or corroborated by, market data by correlation or other means. | ||||||||||||||||
Level 3 Inputs – Unobservable inputs for determining the fair value of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. | ||||||||||||||||
In general, fair value is based on quoted market prices, when available. If quoted market prices in active markets are not available, fair value is based on internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and the Company’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Furthermore, the reported fair value amounts have not been comprehensively revalued since the presentation dates, and therefore, estimates of fair value after the balance sheet date may differ significantly from the amounts presented herein. A more detailed description of the valuation methodologies used for assets and liabilities measured at fair value is set forth below. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincide with the Company’s monthly and/or quarterly valuation process. | ||||||||||||||||
Investment Securities Available for Sale | ||||||||||||||||
The majority of the Company’s available for sale investment securities are reported at fair value utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the securities’ terms and conditions, among other things. | ||||||||||||||||
The Company reviews the prices supplied by the independent pricing service, as well as their underlying pricing methodologies, for reasonableness and to ensure such prices are aligned with traditional pricing matrices. In general, the Company does not purchase investment securities that have a complicated structure. The Company’s entire portfolio consists of traditional investments, nearly all of which are mortgage pass-through securities, state and municipal general obligation or revenue bonds, U.S. agency bullet and callable securities and corporate bonds. Pricing for such instruments is fairly generic and is easily obtained. From time to time, the Company validates, on a sample basis, prices supplied by the independent pricing service by comparison to prices obtained from third-party sources or derived using internal models. | ||||||||||||||||
The Company reports the fair value of private label collateralized mortgage obligations or “CMOs” with a rating from a nationally recognized bond rating agency of below investment grade using Level 3 inputs. As of September 30, 2014, these securities have an amortized cost $2,866 and fair value of $2,869, representing 17 basis points of our total investment portfolio. At September 30, 2014, we do not anticipate further OTTI charges on these securities. These securities, along with all of the Company’s other securities, will be reviewed on at least a quarterly basis to assess whether the impairment, if any, is OTTI. | ||||||||||||||||
Derivatives | ||||||||||||||||
The fair values of derivatives are based on valuation models using current market terms (including interest rates and fees), the remaining terms of the agreements and the credit worthiness of the counterparty as of the measurement date (Level 2). The Company’s derivatives consist of two interest rate caps and twelve interest rate swaps. See Note 9. “Derivatives.” | ||||||||||||||||
Commitments to Sell Real Estate Loans | ||||||||||||||||
The Company enters into various commitments to sell real estate loans in the secondary market. Such commitments are considered to be derivative financial instruments and therefore are carried at estimated fair value on the consolidated balance sheets. The estimated fair values of these commitments were generally calculated by reference to quoted prices in secondary markets for commitments to sell to certain government sponsored agencies. The fair values of these commitments generally result in a Level 2 classification. The fair value of these commitments is not material. | ||||||||||||||||
A summary of assets and liabilities at September 30, 2014 measured at estimated fair value on a recurring basis is as follows: | ||||||||||||||||
30-Sep-14 | ||||||||||||||||
Fair value | Level 1 inputs | Level 2 inputs | Level 3 inputs | |||||||||||||
Asset: | ||||||||||||||||
Investment securities available for sale: | ||||||||||||||||
Residential MBS: | ||||||||||||||||
Agency-backed | $ | 477,705 | $ | — | $ | 477,705 | $ | — | ||||||||
CMO/Other MBS | 111,276 | — | 111,276 | — | ||||||||||||
Privately issued CMOs | 2,869 | — | — | 2,869 | ||||||||||||
Total residential MBS | 591,850 | — | 588,981 | 2,869 | ||||||||||||
Federal agencies | 152,814 | — | 152,814 | — | ||||||||||||
Corporate bonds | 192,839 | — | 192,839 | — | ||||||||||||
State and municipal | 134,898 | — | 134,898 | — | ||||||||||||
Trust preferred | 38,412 | — | 38,412 | — | ||||||||||||
Total other securities | 518,963 | — | 518,963 | — | ||||||||||||
Total investment securities available for sale | 1,110,813 | — | 1,107,944 | 2,869 | ||||||||||||
Interest rate caps and swaps | 1,096 | — | 1,096 | — | ||||||||||||
Total assets | $ | 1,111,909 | $ | — | $ | 1,109,040 | $ | 2,869 | ||||||||
Swaps | $ | 1,096 | $ | — | $ | 1,096 | $ | — | ||||||||
Total liabilities | $ | 1,096 | $ | — | $ | 1,096 | $ | — | ||||||||
A summary of assets and liabilities at September 30, 2013 measured at estimated fair value on a recurring basis is the follows: | ||||||||||||||||
September 30, 2013 | ||||||||||||||||
Fair value | Level 1 inputs | Level 2 inputs | Level 3 inputs | |||||||||||||
Available for sale securities: | ||||||||||||||||
Residential MBS: | ||||||||||||||||
Agency-backed | $ | 282,529 | $ | — | $ | 282,529 | $ | — | ||||||||
CMO/Other MBS | 163,041 | — | 163,041 | — | ||||||||||||
Privately issued CMOs | 3,613 | — | — | 3,613 | ||||||||||||
Total residential MBS | 449,183 | — | 445,570 | 3,613 | ||||||||||||
Investment securities | ||||||||||||||||
Federal agencies | 261,547 | — | 261,547 | — | ||||||||||||
Corporate | 114,933 | — | 114,933 | — | ||||||||||||
State and municipal | 128,730 | — | 128,730 | — | ||||||||||||
Total investment securities available for sale | 505,210 | — | 505,210 | — | ||||||||||||
Total available for sale securities | 954,393 | — | 950,780 | 3,613 | ||||||||||||
Interest rate caps and swaps | 997 | — | 997 | — | ||||||||||||
Total assets | $ | 955,390 | $ | — | $ | 951,777 | $ | 3,613 | ||||||||
Swaps | $ | 997 | $ | — | $ | 997 | $ | — | ||||||||
Total liabilities | $ | 997 | $ | — | $ | 997 | $ | — | ||||||||
The following categories of financial assets are not measured at fair value on a recurring basis, but are subject to fair value adjustments in certain circumstances. | ||||||||||||||||
Loans Held for Sale and Impaired Loans | ||||||||||||||||
Mortgage loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value as determined by outstanding commitments from investors. Fair value of loans held for sale is determined using quoted prices for similar assets (Level 2 inputs). | ||||||||||||||||
When mortgage loans held for sale are sold with servicing rights retained, the carrying value of mortgage loans sold is reduced by the amount allocated to the value of the servicing rights, which is equal to its fair value. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold. | ||||||||||||||||
The Company may record adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of these loans. These adjustments also include certain impairment amounts for collateral dependent loans calculated in accordance with FASB ASC Topic 310 – Receivables, when establishing the allowance for loan losses. Impairment amounts are generally based on the fair value of the underlying collateral supporting the loan and, as a result, the carrying value of the loan less the calculated impairment amount applicable to that loan does not necessarily represent the fair value of the loan. Real estate collateral is valued using independent appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable by market participants. However, due to the substantial judgment applied and limited volume of activity as compared to other assets, fair value is based on Level 3 inputs. Estimates of fair value used for collateral supporting commercial loans generally are based on assumptions not observable in the market place and are also based on Level 3 inputs. Impaired loans are evaluated on at least a quarterly basis for additional impairment and their carrying values are adjusted as needed. Loans subject to non-recurring fair value measurements were $36,208 and $35,228 (which equals the carrying value less the allowance for loan losses allocated to these loans) at September 30, 2014 and 2013, respectively. Changes in fair value recognized in provisions on loans held by the Company were $905 and $2,726 for the twelve months ended September 30, 2014 and 2013, respectively. | ||||||||||||||||
When valuing impaired loans that are collateral dependent, the Company charges-off the difference between the recorded investment in the loan and the appraised value, which is generally less than 12 months old. A discount for estimated costs to dispose of the asset is used when evaluating the impaired loans. | ||||||||||||||||
A summary of impaired loans at September 30, 2014 measured at estimated fair value on a non-recurring basis is the following: | ||||||||||||||||
September 30, 2014 | ||||||||||||||||
Fair value | Level 1 inputs | Level 2 inputs | Level 3 inputs | |||||||||||||
Commercial real estate | 1,463 | — | — | 1,463 | ||||||||||||
Acquisition, development and construction | 2,173 | — | — | 2,173 | ||||||||||||
Total impaired loans measured at fair value | $ | 3,636 | $ | — | $ | — | $ | 3,636 | ||||||||
A summary of impaired loans at September 30, 2013 measured at estimated fair value on a non-recurring basis is the following: | ||||||||||||||||
September 30, 2013 | ||||||||||||||||
Fair value | Level 1 inputs | Level 2 inputs | Level 3 inputs | |||||||||||||
Commercial real estate | 3,672 | — | — | 3,672 | ||||||||||||
Commercial & industrial | 500 | — | — | 500 | ||||||||||||
Acquisition, development and construction | 1,839 | — | — | 1,839 | ||||||||||||
Consumer | 2 | — | — | 2 | ||||||||||||
Total impaired loans measured at fair value | $ | 6,013 | $ | — | $ | — | $ | 6,013 | ||||||||
Mortgage Servicing Rights | ||||||||||||||||
When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in net gain on sales of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. | ||||||||||||||||
The Company utilizes the amortization method to subsequently measure the carrying value of its servicing rights. In accordance with FASB ASC Topic 860 - Transfers and Servicing, the Company must record impairment charges on a non-recurring basis, when the carrying value exceeds the estimated fair value. To estimate the fair value of servicing rights, the Company utilizes a third-party, which on a quarterly basis, considers the market prices for similar assets and the present value of expected future cash flows associated with the servicing rights. Assumptions utilized include estimates of the cost of servicing, loan default rates, an appropriate discount rate and prepayment speeds. The determination of fair value of servicing rights relies upon Level 3 inputs. The fair value of mortgage servicing rights at September 30, 2014 and 2013 were $1,526 and $1,978, respectively. | ||||||||||||||||
Assets Taken in Foreclosure of Defaulted Loans | ||||||||||||||||
Assets taken in foreclosure of defaulted loans are initially recorded at fair value less costs to sell when acquired, which establishes a new cost basis. These assets are subsequently accounted for at the lower of cost or fair value less costs to sell and are primarily comprised of commercial and residential real estate property and upon initial recognition, are re-measured and reported at fair value through a charge-off to the allowance for loan losses based on the fair value of the foreclosed asset. The fair value is generally determined using appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable in the market place. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between comparable sales and income data available. The fair value is derived using Level 3 inputs. Appraisals are reviewed by our credit department, our external loan review consultant and verified by officers in our credit administration area. Assets taken in foreclosure of defaulted loans subject to non-recurring fair value measurement were $7,580 and $6,022 at September 30, 2014 and 2013, respectively. There were write-downs of $224 and $1,978 related to changes in fair value recognized through income for those foreclosed assets held by the Company during the twelve months ending September 30, 2014 and 2013, respectively. | ||||||||||||||||
Significant Unobservable Inputs to Level 3 Measurements | ||||||||||||||||
The following table presents quantitative information about significant unobservable inputs used in the fair value measurements for Level 3 assets at September 30, 2014: | ||||||||||||||||
Non-recurring fair value measurements | Fair value | Valuation technique | Unobservable input / assumptions | Range (1) (weighted average) | ||||||||||||
Impaired loans: | ||||||||||||||||
Commercial real estate | $ | 1,463 | Appraisal | Adjustments for comparable properties | 15.0% - 36.0% (22.0%) | |||||||||||
Acquisition, development & construction | 2,173 | Appraisal | Adjustments for comparable properties | 10.0% - 30.0% (13.5%) | ||||||||||||
Assets taken in foreclosure: | ||||||||||||||||
Residential mortgage | 1,301 | Appraisal | Adjustments by management to reflect current conditions/selling costs | 16.0% - 59.0% (21.6%) | ||||||||||||
Commercial real estate(2) | 1,910 | Appraisal | Adjustments by management to reflect current conditions/selling costs | 20.0% - 37.0% (24.8%) | ||||||||||||
Acquisition, development & construction | 1,973 | Appraisal | Adjustments by management to reflect current conditions/selling costs | 25.0% - 70.0% (30.2%) | ||||||||||||
Mortgage servicing rights | 1,526 | Third-party | Discount rates | 9.3% - 12.8% | ||||||||||||
Third-party | Prepayment speeds | 100 - 968 (224) | ||||||||||||||
(1) Represents range of discount factors applied to the appraisal to determine fair value. The amounts used for mortgage servicing rights are discounts applied by a third-party valuation provider which the Company believes are appropriate. | ||||||||||||||||
(2) Excludes $2,396 of commercial buildings that are former financial centers held for sale. These assets were not taken in foreclosure and their fair value is determined by appraisal, and our internal assessment of the market for this type of real estate in these locations. | ||||||||||||||||
Fair Values of Financial Instruments | ||||||||||||||||
FASB Codification Topic 825 - Financial Instruments, requires disclosure of fair value information for those financial instruments for which it is practicable to estimate fair value, whether or not such financial instruments are recognized in the consolidated statements of financial condition for interim and annual periods. Fair value is the amount for which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation. | ||||||||||||||||
Quoted market prices are used to estimate fair values when those prices are available, although active markets do not exist for many types of financial instruments. Fair values for these instruments must be estimated by management using techniques such as discounted cash flow analysis and comparison to similar instruments. These estimates are highly subjective and require judgments regarding significant matters, such as the amount and timing of future cash flows and the selection of discount rates that appropriately reflect market and credit risks. Changes in these judgments often have a material effect on the fair value estimates. Since these estimates are made as of a specific point in time, they are susceptible to material near-term changes. Fair values disclosed in accordance with FASB Topic 825 do not reflect any premium or discount that could result from the sale of a large volume of a particular financial instrument, nor do they reflect possible tax ramifications or estimated transaction costs. | ||||||||||||||||
The following is a summary of the carrying amounts and estimated fair value of financial assets and liabilities (none of which were held for trading purposes) as of September 30, 2014: | ||||||||||||||||
September 30, 2014 | ||||||||||||||||
Carrying | Level 1 inputs | Level 2 inputs | Level 3 inputs | |||||||||||||
amount | ||||||||||||||||
Financial assets: | ||||||||||||||||
Cash and due from banks | $ | 177,619 | $ | 177,619 | $ | — | $ | — | ||||||||
Securities available for sale | 1,110,813 | — | 1,110,813 | — | ||||||||||||
Securities held to maturity | 579,075 | — | 587,838 | — | ||||||||||||
Loans, net | 4,719,826 | — | — | 4,758,366 | ||||||||||||
Loans held for sale | 17,846 | — | 17,846 | — | ||||||||||||
Accrued interest receivable on securities | 8,876 | — | 8,876 | — | ||||||||||||
Accrued interest receivable on loans | 10,791 | — | — | 10,791 | ||||||||||||
FHLB stock and Federal Reserve Bank stock | 66,085 | — | — | — | ||||||||||||
Interest rate caps and swaps | 1,096 | — | 1,096 | — | ||||||||||||
Financial liabilities: | ||||||||||||||||
Non-maturity deposits | (4,860,783 | ) | (4,860,783 | ) | — | — | ||||||||||
Certificates of deposit | (437,871 | ) | — | (438,088 | ) | — | ||||||||||
FHLB borrowings | (795,028 | ) | — | (813,490 | ) | — | ||||||||||
Other borrowings | (45,639 | ) | — | (45,640 | ) | — | ||||||||||
Senior notes | (98,402 | ) | — | (100,482 | ) | — | ||||||||||
Mortgage escrow funds | (4,494 | ) | — | (4,494 | ) | — | ||||||||||
Accrued interest payable on deposits | (320 | ) | — | (320 | ) | — | ||||||||||
Accrued interest payable on borrowings | (2,942 | ) | — | (2,942 | ) | — | ||||||||||
Interest rate caps and swaps | (1,096 | ) | — | (1,096 | ) | — | ||||||||||
The following is a summary of the carrying amounts and estimated fair value of financial assets and liabilities (none of which were held for trading purposes) as of September 30, 2013: | ||||||||||||||||
September 30, 2013 | ||||||||||||||||
Carrying | Level 1 inputs | Level 2 inputs | Level 3 inputs | |||||||||||||
amount | ||||||||||||||||
Financial assets: | ||||||||||||||||
Cash and due from banks | $ | 113,090 | $ | 113,090 | $ | — | $ | — | ||||||||
Securities available for sale | 954,393 | — | 950,780 | 3,613 | ||||||||||||
Securities held to maturity | 253,999 | — | 250,896 | — | ||||||||||||
Loans, net | 2,384,021 | — | — | 2,422,824 | ||||||||||||
Loans held for sale | 1,011 | — | 1,011 | — | ||||||||||||
Accrued interest receivable on securities | 4,892 | — | 4,892 | — | ||||||||||||
Accrued interest receivable on loans | 6,805 | — | — | 6,805 | ||||||||||||
FHLB stock | 24,312 | — | — | — | ||||||||||||
Interest rate caps and swaps | 997 | — | 997 | — | ||||||||||||
Financial liabilities: | ||||||||||||||||
Non-maturity deposits | (2,694,166 | ) | (2,694,166 | ) | — | — | ||||||||||
Certificates of deposit | (268,128 | ) | — | (268,088 | ) | — | ||||||||||
FHLB and other borrowings | (345,176 | ) | — | (488,369 | ) | — | ||||||||||
Mortgage escrow funds | (12,646 | ) | — | (12,644 | ) | — | ||||||||||
Accrued interest payable on deposits | (1,480 | ) | — | (1,480 | ) | — | ||||||||||
Accrued interest payable on borrowings | (1,525 | ) | — | (1,525 | ) | — | ||||||||||
Interest rate caps and swaps | (997 | ) | — | (997 | ) | — | ||||||||||
The following paragraphs summarize the principal methods and assumptions used by the Company to estimate the fair value of the Company’s financial instruments: | ||||||||||||||||
Loans | ||||||||||||||||
The estimated fair value approximates carrying value for variable-rate loans that reprice frequently and with no significant change in credit risk. The fair value of fixed-rate loans and variable-rate loans which reprice on an infrequent basis is estimated by discounting future cash flows using the current interest rates at which similar loans with similar terms would be made to borrowers of similar credit quality. An overall valuation adjustment is made for specific credit risks as well as general portfolio credit risk. | ||||||||||||||||
FHLB of New York Stock and Federal Reserve Bank Stock | ||||||||||||||||
The redeemable carrying amount of these securities with limited marketability approximates their fair value. | ||||||||||||||||
Deposits and Mortgage Escrow Funds | ||||||||||||||||
In accordance with FASB Codification Topic 825, deposits with no stated maturity (such as savings, demand and money market deposits) are assigned fair values equal to the carrying amounts payable on demand. Certificates of deposit and mortgage escrow funds are segregated by account type and original term, and fair values are estimated by discounting the contractual cash flows. The discount rate for each account grouping is equivalent to the current market rates for deposits of similar type and maturity. | ||||||||||||||||
These fair values do not include the value of core deposit relationships that comprise a significant portion of the Company’s deposits. We believe that the Company’s core deposit relationships provide a relatively stable, low-cost funding source that has a substantial value separate from the deposit balances. | ||||||||||||||||
FHLB Borrowings, other borrowings and Senior notes | ||||||||||||||||
The estimated fair value approximates carrying value for short-term borrowings. The fair value of long-term fixed-rate borrowings is estimated using quoted market prices, if available, or by discounting future cash flows using current interest rates for similar financial instruments. | ||||||||||||||||
Other Financial Instruments | ||||||||||||||||
Other financial assets and liabilities listed in the table above have estimated fair values that approximate the respective carrying amounts because the instruments are payable on demand or have short-term maturities and present relatively low credit risk and interest rate risk. | ||||||||||||||||
The fair values of the Company’s off-balance-sheet financial instruments described in Note 15. “Off-Balance Sheet Financial Instruments” were estimated based on current market terms (including interest rates and fees), considering the remaining terms of the agreements and the credit worthiness of the counterparties. At September 30, 2014 and 2013, the estimated fair value of these instruments approximated the related carrying amounts, which were not material. | ||||||||||||||||
Accrued interest receivable/payable | ||||||||||||||||
The carrying amounts of accrued interest approximate fair value and are classified as Level 2. |
Recent_Accounting_Standards_No
Recent Accounting Standards, Not Yet Adopted | 12 Months Ended |
Sep. 30, 2014 | |
Accounting Changes and Error Corrections [Abstract] | ' |
Recently Issued Accounting Standards Not Yet Adopted | ' |
Recently Issued Accounting Standards Not Yet Adopted | |
Accounting Standards Update (“ASU”) 2014-14 Classification of Certain Government-Guaranteed Residential Mortgage Loans Upon Foreclosure. This standard provides guidance on how holders of certain government-guaranteed loans (e.g., mortgage loans guaranteed by the FHA or VA) should present such loans upon foreclosure. Specifically, the ASU provides that, upon foreclosure, government-guaranteed loans within the scope of the standard should be derecognized and re-recognized as a separate other receivable (i.e., a receivable from the government entity guaranteeing the loan). The standard does not require any new disclosures about such loans. ASU 2014-14 is effective for the Company for annual and interim periods beginning after December 15, 2014, and is not expected to have a material impact on our balance sheet or results of operations. | |
ASU 2014-11 Transfers and Servicing (topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. This standard amends the guidance in ASC 860 on accounting for certain repurchase agreements (“repos”). The standard (1) requires entities to account for repurchase-to-maturity transactions as secured borrowings, (2) eliminates accounting guidance on linked repurchase financing transactions, and (3) expands disclosure requirements related to certain transfers of financial assets that are accounted for as sales and certain transfers (specifically, repos, securities lending transactions, and repurchase-to-maturity transactions) that are accounted for as secured borrowings. This standard is effective for annual periods beginning after December 15, 2014 and is not expected to have a material impact on our balance sheet or results of operations. | |
ASU 2014-09 Revenue From Contracts With Customers. This standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is effective for annual reporting periods beginning after December 15, 2016. The Company is currently evaluating the impact this standard will have on its balance sheet and results of operations. | |
ASU 2014-04 Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40) - Reclassification of Residential Real Estate Collateralized Consumer Mortgage loans upon Foreclosure was issued. This standard provides clarification when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan should be removed from the balance sheet and other real estate owned recognized. These amendments clarify that when an in-substance foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan upon either: (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure, or (2) the borrower is conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. This standard was effective for the Company on October 1, 2014 and is not expected to have a material impact on our balance sheet or results of operations. | |
See Note 1. “Basis of Financial Statement Presentation and Summary of Significant Accounting Policy” for a discussion of the adoption of new accounting standards. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive (Loss) Income | 12 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||
Accumulated Other Comprehensive (Loss) Income | ' | |||||||||||||||
Accumulated Other Comprehensive (Loss) Income | ||||||||||||||||
Components of accumulated other comprehensive income (loss) (“AOCI”) were as follows at September 30: | ||||||||||||||||
September 30, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Net unrealized holding loss on available for sale securities | $ | (4,645 | ) | $ | (19,316 | ) | ||||||||||
Related income tax benefit | 1,974 | 7,844 | ||||||||||||||
Available for sale securities AOCI, net of tax | (2,671 | ) | (11,472 | ) | ||||||||||||
Net unrealized holding loss on securities transferred to held to maturity | (8,947 | ) | — | |||||||||||||
Related income tax benefit | 3,803 | — | ||||||||||||||
Securities transferred to held to maturity AOCI, net of tax | (5,144 | ) | — | |||||||||||||
Net unrealized holding loss on retirement plans | (6,336 | ) | (6,496 | ) | ||||||||||||
Related income tax benefit | 2,692 | 2,638 | ||||||||||||||
Retirement plan AOCI, net of tax | (3,644 | ) | (3,858 | ) | ||||||||||||
Accumulated other comprehensive loss | $ | (11,459 | ) | $ | (15,330 | ) | ||||||||||
The following table presents the changes in each component of accumulated other comprehensive income for the fiscal years ended September 30, 2014, 2013 and 2012: | ||||||||||||||||
Net unrealized holding gain (loss) on AFS securities | Net unrealized holding (loss) on securities transferred to held to maturity | Net unrealized holding gain (loss) on retirement plans | Total | |||||||||||||
Fiscal year ended September 30, 2014 | ||||||||||||||||
Balance beginning of the year | $ | (11,472 | ) | $ | — | $ | (3,858 | ) | $ | (15,330 | ) | |||||
Other comprehensive gain (loss) before reclassification | 9,170 | (5,144 | ) | — | 4,026 | |||||||||||
Amounts reclassified from AOCI | (369 | ) | — | 214 | (155 | ) | ||||||||||
Total other comprehensive income (loss) | 8,801 | (5,144 | ) | 214 | 3,871 | |||||||||||
Balance at end of period | $ | (2,671 | ) | $ | (5,144 | ) | $ | (3,644 | ) | $ | (11,459 | ) | ||||
Fiscal year ended September 30, 2013 | ||||||||||||||||
Balance beginning of the year | $ | 15,066 | $ | — | $ | (8,167 | ) | $ | 6,899 | |||||||
Other comprehensive (loss) gain before reclassification | (22,167 | ) | — | 3,041 | (19,126 | ) | ||||||||||
Amounts reclassified from AOCI | (4,371 | ) | — | 1,268 | (3,103 | ) | ||||||||||
Total other comprehensive (loss) income | (26,538 | ) | — | 4,309 | (22,229 | ) | ||||||||||
Balance at end of period | $ | (11,472 | ) | $ | — | $ | (3,858 | ) | $ | (15,330 | ) | |||||
Fiscal year ended September 30, 2012 | ||||||||||||||||
Balance beginning of the year | $ | 13,604 | $ | — | $ | (8,468 | ) | $ | 5,136 | |||||||
Other comprehensive gain before reclassification | 7,640 | — | — | 7,640 | ||||||||||||
Amounts reclassified from AOCI | (6,178 | ) | — | 301 | (5,877 | ) | ||||||||||
Total other comprehensive income | 1,462 | $ | — | 301 | 1,763 | |||||||||||
Balance at end of period | $ | 15,066 | $ | — | $ | (8,167 | ) | $ | 6,899 | |||||||
Condensed_Parent_Company_Finan
Condensed Parent Company Financial Statements | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | |||||||||||
Condensed Parent Company Financial Statements | ' | |||||||||||
Condensed Parent Company Financial Statements | ||||||||||||
Set forth below are the condensed balance sheets of Sterling and the related condensed statements of income and cash flows: | ||||||||||||
September 30, | ||||||||||||
2014 | 2013 | |||||||||||
Assets: | ||||||||||||
Cash | $ | 23,369 | $ | 56,230 | ||||||||
Loan receivable from ESOP | — | 6,437 | ||||||||||
Investment in Sterling National Bank | 1,011,973 | 517,907 | ||||||||||
Investment in non-bank subsidiaries | 3,587 | 3,271 | ||||||||||
Goodwill | 18,970 | — | ||||||||||
Trade name | 20,500 | — | ||||||||||
Other intangible assets, net | 917 | — | ||||||||||
Other assets | 528 | 1,184 | ||||||||||
Total assets | $ | 1,079,844 | $ | 585,029 | ||||||||
Liabilities: | ||||||||||||
Senior Notes | $ | 98,402 | $ | 98,033 | ||||||||
Other liabilities | 20,304 | 4,130 | ||||||||||
Total liabilities | 118,706 | 102,163 | ||||||||||
Stockholders’ equity | 961,138 | 482,866 | ||||||||||
Total liabilities & stockholders’ equity | $ | 1,079,844 | $ | 585,029 | ||||||||
The table below presents the condensed statement of income: | ||||||||||||
For the year ended September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Interest income | $ | 139 | $ | 262 | $ | 282 | ||||||
Dividend income on equity securities | — | 22 | 30 | |||||||||
Dividends from Sterling National Bank | 22,500 | — | 6,000 | |||||||||
Dividends from non-bank subsidiaries | 750 | 1,600 | 500 | |||||||||
Other | 18 | — | 10 | |||||||||
Interest expense | (6,265 | ) | (1,431 | ) | — | |||||||
Non-interest expense | (5,841 | ) | (2,700 | ) | (1,838 | ) | ||||||
Income tax benefit | 3,431 | 898 | 87 | |||||||||
Income (loss) before equity in undistributed earnings of subsidiaries | 14,732 | (1,349 | ) | 5,071 | ||||||||
Equity in undistributed (excess distributed) earnings of: | ||||||||||||
Sterling National Bank | 12,590 | 27,174 | 13,739 | |||||||||
Non-bank subsidiaries | 355 | (571 | ) | 1,078 | ||||||||
Net income | $ | 27,677 | $ | 25,254 | $ | 19,888 | ||||||
The table below presents the condensed statement of cash flows: | ||||||||||||
For the year ended September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 27,677 | $ | 25,254 | $ | 19,888 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Equity in (undistributed) excess distributed earnings of: | ||||||||||||
Sterling National Bank | (12,590 | ) | (27,174 | ) | (13,739 | ) | ||||||
Non-bank subsidiaries | (355 | ) | 571 | (1,078 | ) | |||||||
(Gain) on redemption of Subordinated Debentures | (712 | ) | — | — | ||||||||
Other adjustments, net | 22,066 | 5,259 | 380 | |||||||||
Net cash provided by operating activities | 36,086 | 3,910 | 5,451 | |||||||||
Cash flows from investing activities: | ||||||||||||
Purchase of securities | — | — | (105 | ) | ||||||||
Sales of securities | 1,112 | 818 | 103 | |||||||||
Investment in subsidiaries | (15,000 | ) | (45,000 | ) | (44,203 | ) | ||||||
ESOP loan principal repayments | 6,437 | 459 | 441 | |||||||||
Net cash (used for) investing activities | (7,451 | ) | (43,723 | ) | (43,764 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Net change in other short-term borrowings | (20,659 | ) | — | — | ||||||||
Redemption of Subordinated Debentures | (26,140 | ) | — | — | ||||||||
Senior Notes offering | — | 97,946 | — | |||||||||
Equity capital raise | — | — | 46,000 | |||||||||
Cash dividends paid | (17,677 | ) | (10,642 | ) | (9,100 | ) | ||||||
Stock option transactions including RRP | 2,980 | 1,758 | 910 | |||||||||
Other equity transactions | — | 265 | 527 | |||||||||
Net cash (used for) provided by financing activities | (61,496 | ) | 89,327 | 38,337 | ||||||||
Net (decrease) increase in cash | (32,861 | ) | 49,514 | 24 | ||||||||
Cash at beginning of year | 56,230 | 6,716 | 6,692 | |||||||||
Cash at end of year | $ | 23,369 | $ | 56,230 | $ | 6,716 | ||||||
Quarterly_Results_Of_Operation
Quarterly Results Of Operations (Unaudited) | 12 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Quarterly Results Of Operations (Unaudited) | ' | |||||||||||||||
Quarterly Results of Operations (Unaudited) | ||||||||||||||||
The following is a condensed summary of quarterly results of operations for the fiscal years ended September 30, 2014 and 2013: | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
quarter | quarter | quarter | quarter | |||||||||||||
Year ended September 30, 2014 | ||||||||||||||||
Interest and dividend income | $ | 52,711 | $ | 61,325 | $ | 65,761 | $ | 67,109 | ||||||||
Interest expense | 6,835 | 7,297 | 7,310 | 7,476 | ||||||||||||
Net interest income | 45,876 | 54,028 | 58,451 | 59,633 | ||||||||||||
Provision for loan losses | 3,000 | 4,800 | 5,950 | 5,350 | ||||||||||||
Non-interest income | 9,148 | 12,415 | 13,471 | 12,286 | ||||||||||||
Non-interest expense | 72,974 | 46,723 | 44,904 | 43,780 | ||||||||||||
(Loss) income before income tax | (20,950 | ) | 14,920 | 21,068 | 22,789 | |||||||||||
Income tax (benefit) expense | (6,948 | ) | 4,588 | 6,057 | 6,452 | |||||||||||
Net (loss) income | $ | (14,002 | ) | $ | 10,332 | $ | 15,011 | $ | 16,337 | |||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | (0.20 | ) | $ | 0.12 | $ | 0.18 | $ | 0.2 | |||||||
Diluted | (0.20 | ) | 0.12 | 0.18 | 0.19 | |||||||||||
Year ended September 30, 2013 | ||||||||||||||||
Interest and dividend income | $ | 33,145 | $ | 32,420 | $ | 32,593 | $ | 33,903 | ||||||||
Interest expense | 5,222 | 4,601 | 4,276 | 5,795 | ||||||||||||
Net interest income | 27,923 | 27,819 | 28,317 | 28,108 | ||||||||||||
Provision for loan losses | 2,950 | 2,600 | 3,900 | 2,700 | ||||||||||||
Non-interest income | 7,659 | 6,852 | 6,581 | 6,600 | ||||||||||||
Non-interest expense | 22,546 | 23,339 | 21,789 | 23,367 | ||||||||||||
Income before income tax | 10,086 | 8,732 | 9,209 | 8,641 | ||||||||||||
Income tax expense | 3,066 | 2,203 | 2,833 | 3,312 | ||||||||||||
Net income | $ | 7,020 | $ | 6,529 | $ | 6,376 | $ | 5,329 | ||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 0.16 | $ | 0.15 | $ | 0.15 | $ | 0.12 | ||||||||
Diluted | 0.16 | 0.15 | 0.15 | 0.12 | ||||||||||||
The Company incurred a net loss in the first fiscal quarter of 2014 due mainly to charges and asset write-downs associated with the Merger. The Company recognized charges of $22.2 million for asset write-downs, retention and severance compensation, a write-off of the naming rights to remaining book value of the Provident Bank Ballpark, all of which are included in other non-interest income on the income statement. The charge for asset write-downs was based on the Company’s intent to consolidate several office locations and financial centers. The Company recognized $9.1 million of Merger-related expenses, which included professional advisory fees, legal fees, a portion of change-in-control payments to Legacy Sterling executive officers, costs associated with changing signage at various office and financial center locations and other Merger-related items. In addition, the Company incurred a $2.7 million charge for the settlement of a portion of the Legacy Provident pension plan in December 2013. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events (Unaudited) | ' |
Subsequent Events (Unaudited) | |
On November 5, 2014, the Company announced it had entered into a definitive merger agreement with Hudson Valley Holding Corp. (NYSE: HVB). In the merger, which is a stock-for-stock transaction valued at approximately $539,234 based on the closing price of Sterling common stock on November 4, 2014, Hudson Valley Holding Corp. shareholders will receive a fixed ratio of 1.92 shares of Sterling common stock for each share of Hudson Valley Holding Corp. common stock. Upon closing, Sterling shareholders will own approximately 69% of stock in the combined company and Hudson Valley Holding Corp. shareholders will own approximately 31%. On a pro forma combined basis, for the twelve months ended September 30, 2014, the companies had revenue of $363,217 and $21,962 in net income. Upon completion of the merger the combined company is expected to have $10,703,764 in assets, $6,551,482 in gross loans, and deposits of $8,071,799. The transaction, which has been approved by the boards of directors of both companies, is expected to close in the second calendar quarter of 2015. The transaction is subject to approval by shareholders from both companies, regulatory approval and other customary closing conditions. | |
The Company has engaged an independent third-party to assist management in estimating the fair value of the majority of the assets acquired and liabilities to be assumed. The Company will file a Current Report on Form 8-K (or an amendment to a prior report) no later than January 15, 2015 that will include historical and pro forma information regarding Hudson Valley Holding Corp. and the Company which is required in connection with the Merger |
Basis_of_Financial_Statement_P1
Basis of Financial Statement Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Sep. 30, 2014 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |
Consolidation | ' | |
Merger with Sterling Bancorp | ||
On October 31, 2013, Provident New York Bancorp (“Legacy Provident”) merged with Sterling Bancorp (“Legacy Sterling”). In connection with the merger, the following corporate actions occurred: | ||
• | Legacy Sterling merged with and into Legacy Provident. Legacy Provident was the accounting acquirer and the surviving entity. | |
• | Legacy Provident changed its legal entity name to Sterling Bancorp and became a bank holding company and a financial holding company as defined by the Bank Holding Company Act of 1956, as amended (“Sterling” or the “Company”). | |
• | Provident Bank converted to a national bank charter. | |
• | Sterling National Bank merged into Provident Bank. | |
• | Provident Bank changed its legal entity name to Sterling National Bank. | |
• | Provident Municipal Bank merged into Sterling National Bank. | |
We refer to the transactions detailed above collectively as the “Merger.” | ||
The consolidated financial statements include the accounts of Sterling; STL Holdings, Inc. (formerly PBNY Holdings, Inc.) which has an investment in Sterling Silver Title Agency L.P. (formerly PB Madison Title Agency L.P.), a company that provides title searches and title insurance for residential and commercial real estate; LandSave Development, LLC an inactive subsidiary, which was dissolved on September 30, 2014; Sterling Risk Management, Inc. (formerly Provident Risk Management, Inc., a captive insurance company); Sterling National Bank (the “Bank”) and the Bank’s wholly-owned subsidiaries. These subsidiaries included at September 30, 2014: (i) Sterling REIT, Inc. a real estate investment trust that holds a portion of the Company’s real estate loans; (ii) Provest Services Corp. I, which has invested in a low-income housing partnership; (iii) Provest Services Corp. II, which has engaged a third-party provider to sell mutual funds and annuities to the Bank’s customers and (iv) several limited liability companies which hold other real estate owned. Intercompany transactions and balances are eliminated in consolidation. | ||
The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. Certain amounts from prior years have been reclassified to conform to the current fiscal year presentation. Reclassifications had no affect on prior year net income or stockholders’ equity. | ||
Use of estimates | ' | |
Use of estimates | ||
The consolidated financial statements have been prepared in conformity with GAAP. In preparing the consolidated financial statements, the Company is required to make estimates and assumptions that affect the reported amounts of assets, liabilities, income and expense. Actual results could differ significantly from these estimates. An estimate that is particularly susceptible to significant near-term change is the allowance for loan losses, which is discussed below. Also subject to change are estimates involving goodwill impairment evaluations, mortgage servicing rights, benefit plans, deferred income taxes and fair values of financial instruments. | ||
Cash Flows | ' | |
Cash Flows | ||
For purposes of reporting cash flows, cash equivalents include highly liquid, short-term investments such as overnight federal funds, as well as cash and deposits with other financial institutions. Net cash flows are reported for customer loan and deposit transactions and short-term borrowings with an original maturity of 90 days or less. | ||
Long Term Assets | ' | |
Long-Term Assets | ||
Premises and equipment, core deposit and other intangible assets are reviewed annually for impairment or when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. | ||
Fair Values of Financial Instruments | ' | |
Fair Values of Financial Instruments | ||
Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. (See Note 17. “Fair Value Measurements”) | ||
Adoption of New Accounting Standards | ' | |
Adoption of New Accounting Standards | ||
Accounting Standards Update (ASU) 2014-01 - Investments - Equity method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects was issued. This standard provides reporting guidance for entities that invest in qualified affordable housing projects through limited liability entities that are flow through entities for tax purposes. The amendments in this ASU eliminate the effective yield election and permit the Company to make an accounting policy election to account for its investment in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, the Company amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the statement of operations as a component of income tax expense. The amendments in this ASU should be applied retrospectively to all periods presented. The Company adopted this ASU in the quarter ended March 31, 2014, which coincided with the Company’s initial recognition of low income housing tax credits. The adoption of this ASU resulted in a $508 income tax benefit and a $520 expense associated with the amortization of the Company’s investment for the fiscal year ended September 30, 2014. | ||
Recently Issued Accounting Standards Not Yet Adopted | ||
Accounting Standards Update (“ASU”) 2014-14 Classification of Certain Government-Guaranteed Residential Mortgage Loans Upon Foreclosure. This standard provides guidance on how holders of certain government-guaranteed loans (e.g., mortgage loans guaranteed by the FHA or VA) should present such loans upon foreclosure. Specifically, the ASU provides that, upon foreclosure, government-guaranteed loans within the scope of the standard should be derecognized and re-recognized as a separate other receivable (i.e., a receivable from the government entity guaranteeing the loan). The standard does not require any new disclosures about such loans. ASU 2014-14 is effective for the Company for annual and interim periods beginning after December 15, 2014, and is not expected to have a material impact on our balance sheet or results of operations. | ||
ASU 2014-11 Transfers and Servicing (topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. This standard amends the guidance in ASC 860 on accounting for certain repurchase agreements (“repos”). The standard (1) requires entities to account for repurchase-to-maturity transactions as secured borrowings, (2) eliminates accounting guidance on linked repurchase financing transactions, and (3) expands disclosure requirements related to certain transfers of financial assets that are accounted for as sales and certain transfers (specifically, repos, securities lending transactions, and repurchase-to-maturity transactions) that are accounted for as secured borrowings. This standard is effective for annual periods beginning after December 15, 2014 and is not expected to have a material impact on our balance sheet or results of operations. | ||
ASU 2014-09 Revenue From Contracts With Customers. This standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is effective for annual reporting periods beginning after December 15, 2016. The Company is currently evaluating the impact this standard will have on its balance sheet and results of operations. | ||
ASU 2014-04 Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40) - Reclassification of Residential Real Estate Collateralized Consumer Mortgage loans upon Foreclosure was issued. This standard provides clarification when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan should be removed from the balance sheet and other real estate owned recognized. These amendments clarify that when an in-substance foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan upon either: (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure, or (2) the borrower is conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. This standard was effective for the Company on October 1, 2014 and is not expected to have a material impact on our balance sheet or results of operations. | ||
Securities | ' | |
Securities | ||
Securities include U.S. Treasury, U.S. Government Agency and Government Sponsored Agencies, municipal and corporate bonds, mortgage-backed securities, collateralized mortgage obligations and trust preferred securities. | ||
The Company can classify its securities among three categories: held to maturity, trading, and available for sale. The Company determines the appropriate classification of the Company’s securities at the time of purchase. | ||
Held to maturity securities are limited to debt securities for which there is the intent and the ability to hold to maturity. These securities are reported at amortized cost. | ||
Trading securities are debt and equity securities held principally for the purpose of selling them in the near-term. These securities are reported at fair value, with unrealized gains and losses included in earnings. The Company does not engage in securities trading activities. | ||
All other debt and marketable equity securities are classified as available for sale. These securities are reported at fair value, with unrealized gains and losses (net of the related deferred income tax effect) excluded from earnings and reported in a separate component of stockholders’ equity (accumulated other comprehensive income or loss). Available for sale securities include securities that the Company intends to hold for an indefinite period of time, such as securities to be used as part of the Company’s asset/liability management strategy or securities that may be sold to fund loan growth, in response to changes in interest rates, changes in prepayment risks, the need to increase capital, or similar factors. | ||
Premiums and discounts on debt securities are recognized in interest income on a level yield basis over the period to maturity. Amortization of premiums and accretion of discounts on mortgage-backed securities are based on the estimated cash flows of the mortgage-backed securities, periodically adjusted for changes in estimated lives, on a level yield basis. The cost of securities sold is determined using the specific identification method. | ||
Securities are evaluated for impairment at least quarterly, and more frequently when economic and market conditions warrant such an evaluation. For securities in an unrealized loss position, we consider the extent and duration of the unrealized loss, and the financial condition of the issuer. The Company also assesses whether it intends to sell, or is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either criteria regarding intent to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. If the Company does not expect to recover the entire amortized cost basis of the security, the Company does not intend to sell the security and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, the other than temporary impairment is separated into a) the amount representing the credit loss and b) the amount related to all other factors. The amount of other than temporary impairment related to credit loss is recognized in earnings while the amount related to other factors is recognized in other comprehensive income, net of applicable taxes. The cost basis of individual equity securities is written down to estimated fair value through a charge to earnings when declines in value below cost are considered to be other than temporary. | ||
Loans Held For Sale | ' | |
Loans Held For Sale | ||
Mortgage loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value, as determined by outstanding commitments from investors. In the absence of commitments from investors, fair value is based on current investor yield requirements. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. | ||
Historically mortgage loans held for sale were generally sold with servicing rights retained. The carrying value of mortgage loans sold is reduced by the amount allocated to the value of the servicing rights which is its fair value. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold. | ||
Servicing Rights | ' | |
Servicing Rights | ||
When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. | ||
Under the amortization measurement method, the Company subsequently measures servicing rights at fair value at each reporting date and records any impairment in value of servicing assets in earnings in the period in which the impairment occurs. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. | ||
Servicing fee income, which is reported on the income statement as other income, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan, and are recorded as income when earned. | ||
Loans | ' | |
Loans | ||
Loans where Sterling has the intent and ability to hold for the foreseeable future or until maturity or payoff (other than loans held for sale) are reported at amortized cost less the allowance for loan losses. Interest income on loans is accrued on the unpaid principal balance. | ||
A loan is placed on non-accrual status upon the earlier of (i) when Sterling determines that the borrower may likely be unable to meet contractual principal or interest obligations, or (ii) when payments are 90 days or more past due, unless well secured and in the process of collection. Accrual of interest ceases and, in general, uncollected past due interest is reversed and charged against current interest income. Interest payments received on non-accrual loans, including impaired loans, are not recognized as income unless warranted based on the borrower’s financial condition and payment record. Furthermore, negative tax escrow will be included in the unpaid principal for loans individually evaluated for impairment, as this is part of the customer’s legal obligation to the Company. | ||
The Company defers nonrefundable loan origination and commitment fees, and certain direct loan origination costs, and amortizes the net amount as an adjustment of the yield over the estimated life of the loan. If a loan is prepaid or sold, the net deferred amount is recognized in the statement of income at that time. Interest and fees on loans include prepayment fees and late charges collected. | ||
Federal Reserve Bank of New York and Federal Home Loan Bank Stock | ' | |
Federal Reserve Bank of New York and Federal Home Loan Bank Stock | ||
As a member of the Federal Reserve Bank of New York (“FRB”) and the Federal Home Loan Bank of New York (“FHLB”), the Bank is required to hold a certain amount of FRB and FHLB common stock. This stock is a non-marketable equity security and, is reported at cost. | ||
Allowance for Loan Losses | ' | |
Allowance for Loan Losses | ||
The allowance for loan losses is a reserve established through a provision for loan losses charged to expense, which represents management’s best estimate of probable incurred credit losses inherent in the loan portfolio. The allowance for loan losses is a critical accounting estimate and requires substantial judgment of management. The allowance for loan losses includes allowance allocations calculated in accordance with ASC Subtopic 450-20, “Loss Contingencies” and ASC Subtopic 310-35-2, “Loan Impairment.” The level of the allowance reflects management’s continuing evaluation of loan loss experience, specific credit risks, current loan portfolio quality, industry and loan type concentrations, economic and regulatory conditions and unidentified losses inherent in the loan portfolios, as well as trends in the foregoing. The Company analyzes loans by two broad segments: real estate secured loans and loans that are either unsecured or secured by other collateral. | ||
The classes considered real estate secured are: residential mortgage loans; commercial real estate (“CRE”) loans; business banking CRE; multi-family loans; acquisition, development and construction (“ADC”) loans; homeowner loans, and home equity lines of credit. The classes considered unsecured or secured by other than real estate collateral are: commercial & industrial (“C&I”) loans; payroll finance loans, warehouse lending; factored receivables; equipment finance loans; business banking C&I loans and consumer loans. In all segments or classes, significant loans are reviewed for impairment once they are past due 90 days or more or are classified substandard or doubtful. Generally the Company considers a homogeneous residential mortgage or home equity line of credit to be significant if the Company’s investment in the loan is greater than $500. If a loan is deemed to be impaired in one of the real estate secured segment, it is generally considered collateral dependent. If the value of the collateral securing a collateral dependent impaired loan is less than the loan’s carrying value, a charge-off is recognized equal to the difference between the appraised value and the book value of the loan. Additionally, impairment reserves are recognized for estimated costs to hold and liquidate and for a 10% discount on the appraisal value. The range for costs to hold and liquidate is 12-22% for CRE, business banking CRE and ADC loans and is 7-13% for homeowner loans, home equity lines of credit, and residential mortgage loans. Impaired loans in the real estate secured segments are re-appraised using a summary or drive-by appraisal report every six to nine months. | ||
For loans in the business banking C&I class we charge-off the full amount of the loan when it becomes 90 days or more past due, or earlier in the case of bankruptcy, after giving effect to any cash or marketable securities pledged as collateral for the loan. For other classes of C&I loans, we prepare a cash flow projection, and charge-off the difference between the net present value of the cash flows discounted at the effective note rate and the carrying value of the loan, and generally recognize a 10% impairment reserve to account for the potential imprecision of our estimates. However, on most of these cases receipt of future cash flows is too unreliable to be considered probable, resulting in the charge-off of the entire balance of the loan. For unsecured consumer loans, charg0- offs are recognized once the loan is 90 to 120 days or more past due or the borrower files for bankruptcy protection. | ||
Subsequent recoveries, if any, are credited to the allowance for loan losses. The allowance for loan losses consists of amounts specifically allocated to non-performing loans and other criticized or classified loans (if any), as well as allowances determined for the pass rated loans in each major loan category. After we establish an allowance for loan losses for loans that are known to be non-performing, criticized or classified, we calculate a percentage to apply to the remaining loan portfolio to estimate the probable incurred losses inherent in that portion of the portfolio. These percentages are determined by management, based on historical loss experience for the applicable loan class, and are adjusted to reflect our evaluation of: | ||
•levels of, and trends in, delinquencies and non-accruals; | ||
•trends in volume and terms of loans; | ||
•effects of any changes in lending policies and procedures; | ||
•experience, ability, and depth of lending management and staff; | ||
•national and local economic trends and conditions; | ||
• | concentrations of credit by such factors as location, industry, inter-relationships, and borrower; and for commercial loans, trends in risk ratings. | |
Commercial real estate loans subject us to the risks that the property securing the loan may not generate sufficient cash flow to service the debt or the borrower may use the cash flow for other purposes. In addition, if necessary, the foreclosure process may be slow and properties may deteriorate in the process. The market values are also subject to a wide variety of factors, including general economic conditions, industry specific factors, environmental factors, interest rates and the availability and terms of credit. | ||
Commercial business lending presents a risk because repayment depends on the successful operation of the business which is subject to a wide range of risks and uncertainties. In addition, the ability to successfully liquidate collateral, if any, is subject to a variety of risks because we must gain control of assets used in the borrower’s business before foreclosing which we cannot be assured of doing, and the value in a foreclosure sale or other means of liquidation is uncertain. | ||
Acquisition, development and construction (“ADC”) lending is considered higher risk and exposes us to greater credit risk than permanent mortgage financing. The repayment of ADC loans depends upon the sale of the property to third parties or the availability of permanent financing upon completion of all improvements. In the event we make a land acquisition loan on property that is not yet approved for the planned development, there is the risk that approvals will not be granted or will be delayed. These events may adversely affect the borrower and the collateral value of the property. Development and construction loans also expose us to the risk that improvements will not be completed on time or in accordance with specifications and projected costs. In addition, the ultimate sale or rental of the property may not occur as anticipated. All of these factors are considered as part of the underwriting, structuring and pricing of the loan. We have deemphasized this type of lending. | ||
When we evaluate residential mortgage loans and home equity loans we weigh both the credit capacity of the borrower and the collateral value of the home. If unemployment or underemployment increase, the credit capacity of underlying borrowers will decrease, which increases our risk. Similarly, as we obtain a mortgage on the property, if home prices decline, we are exposed to risk in both our first mortgage and equity lending programs due to declines in the value of our collateral. We are also exposed to risk because the time to foreclose is significant and has become longer under current market conditions. | ||
Troubled Debt Restructuring | ' | |
Troubled Debt Restructuring | ||
Troubled debt restructuring (“TDR”) is a formally renegotiated loan in which the Bank, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to the borrower that would not have been granted to the borrower otherwise. Not all loans that are restructured as a TDR are classified as non-accrual before the restructuring occurs. Restructured loans can convert from non-accrual to accrual status when said loans have demonstrated performance, generally evidenced by six months of consistent payment performance in accordance with the restructured terms, or by the presence of other significant items. | ||
Premises and Equipment | ' | |
Premises and Equipment | ||
Land is reported at cost, while premises and equipment are reported at cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets, which range from three years for equipment and 40 years for premises. Leasehold improvements are amortized on a straight-line basis over the terms of the respective leases, including renewal options, or the estimated useful lives of the improvements, whichever is shorter. Routine holding costs are charged to expense as incurred, while significant improvements are capitalized. The Company recognizes an impairment charge based on the excess of the carrying amount of assets (generally assets associated with a financial center) over the fair value of the assets. Fair value is determined by third-party valuations and evaluations prepared by management. | ||
Goodwill, Trade Names and Other Intangible Assets | ' | |
Goodwill, Trade Names and Other Intangible Assets | ||
Goodwill resulting from business combinations represents the excess of the purchase price over the fair value of the net assets of businesses acquired. Goodwill and trade names acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually. Goodwill and trade name are the only intangible assets with an indefinite life on our balance sheet. | ||
The Company accounts for goodwill, trade names and other intangible assets in accordance with GAAP, which, in general, requires that goodwill and trade names not be amortized, but rather that they be tested for impairment at least annually at the reporting unit level. The Company has the option to first perform a qualitative assessment to test goodwill for impairment on a reporting-unit-by-reporting-unit basis. If, after performing the qualitative assessment, the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company will perform the two-step process described below: | ||
1 | Identify potential impairments by comparing the fair value of a reporting unit to its carrying amount, including goodwill. Goodwill is not considered impaired as long as the fair value of the reporting unit is greater than its carrying value. The second step is only required if a potential impairment to goodwill is identified in step one. | |
2 | Compare the implied fair value of goodwill to its carrying amount, where the implied fair value of goodwill is computed on a residual basis, that is, by subtracting the sum of the fair values of the individual asset categories (tangible and intangible) from the indicated fair value of the reporting unit as determined under step one. If the carrying amount of goodwill exceeds its implied fair value, an impairment loss is recognized. That loss is equal to the carrying amount of goodwill that is in excess of its implied fair value, and it must be presented as a separate line item on financial statements. | |
At September 30, 2014, the Company assessed goodwill for impairment using qualitative factors and concluded the two-step process was unnecessary. | ||
Core deposit intangibles recorded in acquisitions are amortized to expense using an accelerated method over their estimated lives of 8 to 10 years. Non-compete agreements are amortized on a straight line basis over their estimated life. Prior to March 31, 2014, intangibles related to the naming rights on Provident Bank Ball Park were amortized over 10 years on a straight-line basis. Impairment losses on intangible assets are charged to expense, if and when they occur. | ||
Other Real Estate Owned | ' | |
Other Real Estate Owned | ||
Real estate properties acquired through loan foreclosures are recorded initially at estimated fair value, less expected sales costs, with any resulting write-down charged to the allowance for loan losses. Other real estate owned also includes the fair value of the Bank’s financial centers that are held for sale. Any write-down associated with the transfer of a financial center from premises and equipment to other real state owned was included as a charge to other non-interest income in the income statement. Subsequent valuations of other real estate owned are performed by management, and the carrying amount of a property is adjusted by a charge to expense to reflect any subsequent declines in estimated fair value. Fair value estimates are based on recent appraisals and other available information. Routine holding costs are charged to expense as incurred, while significant improvements are capitalized. Gains and losses on sales of real estate owned properties are recognized upon disposition. | ||
Securities Repurchase Agreements | ' | |
Securities Repurchase Agreements | ||
In securities repurchase agreements, the Company transfers securities to a counterparty under an agreement to repurchase the identical securities at a fixed price on a future date. These agreements are accounted for as secured financing transactions since the Company maintains effective control over the transferred securities and the transfer meets other specified criteria. Accordingly, the transaction proceeds are recorded as borrowings and the underlying securities continue to be carried in the Company’s investment securities portfolio. Disclosure of the pledged securities is made in the consolidated balance sheets if the counterparty has the right by contract to sell or re-pledge such collateral. | ||
Income Taxes | ' | |
Income Taxes | ||
Net deferred taxes are recognized for the estimated future tax effects attributable to “temporary differences” between the financial statement carrying amounts and the tax bases of existing assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax laws or rates is recognized in income tax expense in the period that includes the enactment date of the change. | ||
A deferred tax liability is recognized for all temporary differences that will result in future taxable income. A deferred tax asset is recognized for all temporary differences that will result in future tax deductions, subject to reduction of the asset by a valuation allowance in certain circumstances. This valuation allowance is recognized if, based on an analysis of available evidence, we determine that it is more likely than not that some portion, or all of the deferred tax asset will not be realized. | ||
The valuation allowance is subject to ongoing adjustment based on changes in circumstances that affect management’s judgment about the realizability of the deferred tax asset. Adjustments to increase or decrease the valuation allowance are charged or credited, respectively, to income tax expense. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. | ||
The Company evaluates uncertain tax positions in a two step process. The first step is recognition, which requires a determination of whether it is more likely than not that a tax position will be sustained upon examination. The second step is measurement. Under the measurement step, a tax position that meets the more likely than not recognition threshold is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more likely than not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. A previously recognized tax position that no longer meets the more likely than not recognition threshold should be derecognized in the first subsequent financial reporting period in which the threshold is no longer met. The Company did not have any such position as of September 30, 2014. (See Note 10 “Income Taxes”). | ||
Bank Owned Life Insurance (BOLI) | ' | |
Bank Owned Life Insurance (BOLI) | ||
The Company owns life insurance policies (purchased and acquired) on certain officers and key executives. Bank owned life insurance is recorded at its cash surrender value (or the amount that can be realized). | ||
Stock-Based Compensation Plans | ' | |
Stock-Based Compensation Plans | ||
Compensation expense for stock options, non-vested stock awards/stock units is based on the fair value of the award on the measurement date, which is the date of grant. The expense is recognized ratably over the service period of the award. The fair value of stock options is estimated using a Black-Scholes valuation model. the fair value of non-vested stock awards/stock units is generally the market price of the Company’s common stock on the date of grant. | ||
Earnings Per Share | ' | |
Earnings Per Share | ||
Basic earnings per share (“EPS”) is computed by dividing net income applicable to common stock by the weighted average number of common shares outstanding during the period. | ||
Diluted EPS is computed in a similar manner, except that the weighted average number of common shares is increased to include incremental shares (computed using the treasury stock method) that would have been outstanding if all potentially dilutive stock options were exercised and unvested restricted stock became vested during the periods. For purposes of computing both basic and diluted EPS, outstanding shares include earned ESOP shares. | ||
Segment Information | ' | |
Segment Information | ||
Public companies are required to report certain financial information about significant revenue-producing segments of the business for which such information is available and utilized by the chief operating decision maker. Substantially all of the Company’s operations occur through the Bank and involve the delivery of loan and deposit products to customers. Management makes operating decisions and assesses performance based on an ongoing review of its banking operation, which constitutes the Company’s only operating segment for financial reporting purposes. | ||
Loss Contingencies | ' | |
Loss Contingencies | ||
Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. The Company does not believe there are such matters that will have a material effect on the financial statements. | ||
Derivatives | ' | |
Derivatives | ||
At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company’s intentions and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), or (3) an instrument with no hedging designation (“stand-alone derivative”). For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same period during which the hedged transaction affects earnings. For both types of hedges, changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as non-interest income. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. | ||
The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. | ||
When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as non-interest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings. | ||
Loan Commitments and Related Financial Instruments | ' | |
Loan Commitments and Related Financial Instruments | ||
Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. | ||
Employee Benefit Plans | ' | |
The Company’s policy is to invest the Plan assets in a prudent manner for the purpose of providing benefit payments to participants and offsetting reasonable expenses of administration. Historically, the Company’s investment strategy was designed to provide a total return that, over the long-term, placed a strong emphasis on the preservation of capital and compliance with applicable regulations and laws. Management intends to terminate the Plan in fiscal 2015 subject to obtaining required approvals from the Internal Revenue Service and other regulators. Therefore, the investment allocation of Plan assets was shifted in fiscal 2014 to a liability driven investment strategy which is more heavily weighted towards long-term fixed income assets with a similar duration profile to the Plan liabilities. As of September 30, 2014, the majority of the Plan assets were invested in funds specifically designed for liability driven investment strategies and had a weighted average expected rate of return of 4.0%. | ||
The Plan’s investment policy prohibits the direct investment in real estate but allows the Plan’s mutual funds to include a small percentage of real estate related investments. The investment strategy utilizes asset allocation as a principal determinant for establishing an appropriate risk profile. |
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Business Combinations [Abstract] | ' | |||||||||||
Schedule of recognized amounts of identifiable assets acquired and liabilities assumed | ' | |||||||||||
The table below summarizes the amounts recognized as of the Merger date for each major class of assets acquired and liabilities assumed, the estimated fair value adjustments and the amounts recorded in the Company’s financial statements at fair value at the Merger date: | ||||||||||||
Consideration paid through Sterling Bancorp common stock issued to Legacy Sterling shareholders | $ | 457,781 | ||||||||||
Legacy Sterling carrying value | Fair value adjustments | As recorded at acquisition | ||||||||||
Cash and cash equivalents | $ | 277,798 | $ | — | $ | 277,798 | ||||||
Investment securities | 613,154 | (5,243 | ) | (a) | 607,911 | |||||||
Loans held for sale | 30,341 | — | 30,341 | |||||||||
Loans | 1,704,801 | (6,693 | ) | (b) | 1,698,108 | |||||||
Federal Reserve Bank stock | 7,680 | — | 7,680 | |||||||||
Bank owned life insurance | 55,374 | — | 55,374 | |||||||||
Premises and equipment | 21,293 | 2,301 | (c) | 23,594 | ||||||||
Accrued interest receivable | 6,590 | — | 6,590 | |||||||||
Core deposit and other intangibles | — | 20,089 | (d) | 20,089 | ||||||||
Trade name intangible | — | 20,500 | (e) | 20,500 | ||||||||
Other real estate owned | 1,720 | 4,095 | (f) | 5,815 | ||||||||
Other assets | 40,877 | (19,944 | ) | (g) | 20,933 | |||||||
Deposits | (2,296,713 | ) | (477 | ) | (h) | (2,297,190 | ) | |||||
FHLB borrowings | (100,346 | ) | (273 | ) | (i) | (100,619 | ) | |||||
Other borrowings | (62,465 | ) | — | (62,465 | ) | |||||||
Subordinated Debentures | (25,774 | ) | (753 | ) | (j) | (26,527 | ) | |||||
Other liabilities | (60,462 | ) | 4,502 | (k) | (55,960 | ) | ||||||
Total identifiable net assets | $ | 213,868 | $ | 18,104 | $ | 231,972 | ||||||
Goodwill recorded in the Merger | 225,809 | |||||||||||
Goodwill at September 30, 2013 | 163,117 | |||||||||||
Goodwill at September 30, 2014 | $ | 388,926 | ||||||||||
Explanation of certain fair value related adjustments: | ||||||||||||
(a) | Represents the fair value adjustment on investment securities held to maturity. | |||||||||||
(b) | Represents the elimination of Legacy Sterling’s allowance for loan losses and an adjustment of the amortized cost of loans to estimated fair value, which includes an interest rate mark and credit mark. Gross loans acquired were $1,723,447; of the acquired loans, $1,699,271 were not considered purchased credit impaired and we recorded a fair value adjustment of $14,440. | |||||||||||
(c) | Represents an adjustment to reflect the fair value of leasehold improvements. | |||||||||||
(d) | Represents intangible assets recorded to reflect the fair value of core deposits and below market rent on leased premises. The core deposit asset was recorded as an identifiable intangible asset and will be amortized on an accelerated basis over the estimated average life of the deposit base. The below market rent intangible asset will be amortized on a straight-line basis over the remaining term of the leases. | |||||||||||
(e) | Represents the estimated fair value of Legacy Sterling’s trade name. This intangible asset will not be amortized and will be reviewed at least annually for impairment. | |||||||||||
(f) | Represents an adjustment to an acquired property which Legacy Sterling utilized as a financial center and recorded as premises and equipment. The Company included this asset in OREO as it was held for sale. This asset was sold during the fiscal year ended September 30, 2014. | |||||||||||
(g) | Consists primarily of adjustments in net deferred tax assets resulting from the fair value adjustments related to the acquired assets, liabilities assumed and identifiable intangibles recorded. | |||||||||||
(h) | Represents the fair value adjustment on deposits as the weighted average interest rate of deposits assumed exceeded the cost of similar funding available in the market at the time of the Merger. | |||||||||||
(i) | Represents the fair value adjustment on FHLB borrowings as the weighted average interest rate of FHLB borrowings assumed exceeded the cost of similar funding available in the market at the time of the Merger. | |||||||||||
(j) | Represents the fair value adjustment on subordinated debentures as the weighted average interest rate of the debentures assumed exceeded the cost of similar debt funding available in the market at the time of the Merger. | |||||||||||
(k) | Represents the fair value of other liabilities assumed at the Merger date. | |||||||||||
Purchased credit impaired loans | ' | |||||||||||
The impaired loans acquired in the Merger as of October 31, 2013 were accounted for in accordance with ASC Topic 310-30 Accounting for Certain Loans or Debt Securities Acquired in a Transfer (“ASC 310-30”) and were comprised of collateral dependent loans with deteriorated credit quality as follows: | ||||||||||||
ASC 310-30 loans | ||||||||||||
Contractual principal balance at acquisition | $ | 24,176 | ||||||||||
Principal not expected to be collected (non-accretable discount) | (10,927 | ) | ||||||||||
Expected cash flows at acquisition | 13,249 | |||||||||||
Interest component of expected cash flows (accretable discount) | — | |||||||||||
Fair value of acquired loans | $ | 13,249 | ||||||||||
Schedule of proforma information | ' | |||||||||||
Furthermore, the unaudited pro forma information does not reflect management’s estimate of any revenue enhancement opportunities or anticipated potential cost savings. | ||||||||||||
Pro forma for the | ||||||||||||
fiscal year ended September 30, | ||||||||||||
2014 | 2013 | |||||||||||
Net interest income | $ | 198,776 | $ | 180,030 | ||||||||
Non-interest income | 54,396 | 65,749 | ||||||||||
Non-interest expense | 187,306 | 189,136 | ||||||||||
Net income | 44,460 | 39,190 | ||||||||||
Pro forma earnings per share: | ||||||||||||
Basic | $ | 0.53 | $ | 0.47 | ||||||||
Diluted | 0.53 | 0.47 | ||||||||||
Securities_Tables
Securities (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||||||||||
Summary of securities available for sale | ' | |||||||||||||||||||||||||||||||
30-Sep-14 | 30-Sep-13 | |||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | Amortized | Gross | Gross | Fair | |||||||||||||||||||||||||
cost | unrealized | unrealized | value | cost | unrealized | unrealized | value | |||||||||||||||||||||||||
gains | losses | gains | losses | |||||||||||||||||||||||||||||
Available for Sale | ||||||||||||||||||||||||||||||||
Residential MBS: | ||||||||||||||||||||||||||||||||
Agency-backed | $ | 477,003 | $ | 2,257 | $ | (1,555 | ) | $ | 477,705 | $ | 284,837 | $ | 1,849 | $ | (4,157 | ) | $ | 282,529 | ||||||||||||||
CMO/Other MBS | 115,395 | 242 | (1,492 | ) | 114,145 | 169,336 | 356 | (3,038 | ) | 166,654 | ||||||||||||||||||||||
Total residential MBS | 592,398 | 2,499 | (3,047 | ) | 591,850 | 454,173 | 2,205 | (7,195 | ) | 449,183 | ||||||||||||||||||||||
Other securities: | ||||||||||||||||||||||||||||||||
Federal agencies | 158,114 | 3 | (5,303 | ) | 152,814 | 273,637 | — | (12,090 | ) | 261,547 | ||||||||||||||||||||||
Corporate | 195,547 | 149 | (2,857 | ) | 192,839 | 118,575 | 153 | (3,795 | ) | 114,933 | ||||||||||||||||||||||
State and municipal | 131,715 | 3,439 | (256 | ) | 134,898 | 127,324 | 3,447 | (2,041 | ) | 128,730 | ||||||||||||||||||||||
Trust preferred | 37,684 | 766 | (38 | ) | 38,412 | — | — | — | — | |||||||||||||||||||||||
Total other securities | 523,060 | 4,357 | (8,454 | ) | 518,963 | 519,536 | 3,600 | (17,926 | ) | 505,210 | ||||||||||||||||||||||
Total available for sale | $ | 1,115,458 | $ | 6,856 | $ | (11,501 | ) | $ | 1,110,813 | $ | 973,709 | $ | 5,805 | $ | (25,121 | ) | $ | 954,393 | ||||||||||||||
Summary of securities held-to-maturity | ' | |||||||||||||||||||||||||||||||
September 30, 2014 | 30-Sep-13 | |||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | Amortized | Gross | Gross | Fair | |||||||||||||||||||||||||
cost | unrealized gains | unrealized losses | value | cost | unrealized gains | unrealized losses | value | |||||||||||||||||||||||||
Held to Maturity | ||||||||||||||||||||||||||||||||
Residential MBS: | ||||||||||||||||||||||||||||||||
Agency-backed | $ | 142,329 | $ | 1,360 | $ | (103 | ) | 143,586 | 130,371 | 716 | (108 | ) | 130,979 | |||||||||||||||||||
CMO/Other MBS | 62,690 | 9 | (1,204 | ) | 61,495 | 25,776 | 33 | (315 | ) | 25,494 | ||||||||||||||||||||||
Total residential MBS | 205,019 | 1,369 | (1,307 | ) | 205,081 | 156,147 | 749 | (423 | ) | 156,473 | ||||||||||||||||||||||
Other securities: | ||||||||||||||||||||||||||||||||
Federal agencies | 136,413 | 2,634 | (962 | ) | 138,085 | 77,341 | — | (3,458 | ) | 73,883 | ||||||||||||||||||||||
State and municipal | 232,643 | 6,814 | (123 | ) | 239,334 | 19,011 | 556 | (546 | ) | 19,021 | ||||||||||||||||||||||
Other | 5,000 | 338 | — | 5,338 | 1,500 | 19 | — | 1,519 | ||||||||||||||||||||||||
Total other securities | 374,056 | 9,786 | (1,085 | ) | 382,757 | 97,852 | 575 | (4,004 | ) | 94,423 | ||||||||||||||||||||||
Total held to maturity | $ | 579,075 | $ | 11,155 | $ | (2,392 | ) | $ | 587,838 | $ | 253,999 | $ | 1,324 | $ | (4,427 | ) | $ | 250,896 | ||||||||||||||
Summary of amortized cost and fair value of investment securities available for sale by remaining period to contractual maturity | ' | |||||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||||||
Available for sale | Held to maturity | |||||||||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||||||||||||||||||
cost | value | cost | value | |||||||||||||||||||||||||||||
Other securities remaining period to contractual maturity: | ||||||||||||||||||||||||||||||||
One year or less | $ | 2,100 | $ | 2,112 | $ | 8,847 | $ | 8,897 | ||||||||||||||||||||||||
One to five years | 141,508 | 141,748 | 9,138 | 9,624 | ||||||||||||||||||||||||||||
Five to ten years | 334,295 | 328,902 | 189,494 | 192,109 | ||||||||||||||||||||||||||||
Greater than ten years | 45,157 | 46,201 | 166,577 | 172,127 | ||||||||||||||||||||||||||||
Total other securities | 523,060 | 518,963 | 374,056 | 382,757 | ||||||||||||||||||||||||||||
Residential MBS | 592,398 | 591,850 | 205,019 | 205,081 | ||||||||||||||||||||||||||||
Total securities | $ | 1,115,458 | $ | 1,110,813 | $ | 579,075 | $ | 587,838 | ||||||||||||||||||||||||
Sale of securities | ' | |||||||||||||||||||||||||||||||
Sales of securities for the periods indicated below were as follows: | ||||||||||||||||||||||||||||||||
For the fiscal year ended September 30, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Available for sale: | ||||||||||||||||||||||||||||||||
Proceeds from sales | $ | 529,107 | $ | 339,123 | $ | 344,431 | ||||||||||||||||||||||||||
Gross realized gains | 1,964 | 7,709 | 10,468 | |||||||||||||||||||||||||||||
Gross realized losses | (1,323 | ) | (377 | ) | — | |||||||||||||||||||||||||||
Income tax expense on realized net gains | 172 | 2,282 | 2,475 | |||||||||||||||||||||||||||||
Held to maturity: (1) | ||||||||||||||||||||||||||||||||
Proceeds from sales | $ | — | $ | 1,187 | $ | — | ||||||||||||||||||||||||||
Gross realized gains | — | 59 | — | |||||||||||||||||||||||||||||
Income tax expense on realized gains | — | 18 | — | |||||||||||||||||||||||||||||
(1) During the fiscal year ended September 30, 2013, the Company sold held to maturity securities after the Company had already collected at least 85% of the principal balance outstanding at acquisition. | ||||||||||||||||||||||||||||||||
Securities available for sale with unrealized losses, by length of time in continuous unrealized loss position | ' | |||||||||||||||||||||||||||||||
The following table summarizes securities available for sale with unrealized losses, segregated by the length of time in a continuous unrealized loss position: | ||||||||||||||||||||||||||||||||
Continuous unrealized loss position | ||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||||||||||||||
Available for sale | ||||||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||||||
Residential MBS: | ||||||||||||||||||||||||||||||||
Agency-backed | $ | 137,693 | $ | (516 | ) | $ | 41,516 | $ | (1,039 | ) | $ | 179,209 | $ | (1,555 | ) | |||||||||||||||||
CMO/other MBS | 62,507 | (446 | ) | 29,499 | (1,046 | ) | 92,006 | (1,492 | ) | |||||||||||||||||||||||
Total residential MBS | 200,200 | (962 | ) | 71,015 | (2,085 | ) | 271,215 | (3,047 | ) | |||||||||||||||||||||||
Other securities: | ||||||||||||||||||||||||||||||||
Federal agencies | 6,153 | (144 | ) | 146,416 | (5,159 | ) | 152,569 | (5,303 | ) | |||||||||||||||||||||||
Corporate | 97,833 | (1,348 | ) | 66,440 | (1,509 | ) | 164,273 | (2,857 | ) | |||||||||||||||||||||||
State and municipal | 8,170 | (58 | ) | 12,809 | (198 | ) | 20,979 | (256 | ) | |||||||||||||||||||||||
Trust preferred | 3,907 | (38 | ) | — | — | 3,907 | (38 | ) | ||||||||||||||||||||||||
Total other securities | 116,063 | (1,588 | ) | 225,665 | (6,866 | ) | 341,728 | (8,454 | ) | |||||||||||||||||||||||
Total | $ | 316,263 | $ | (2,550 | ) | $ | 296,680 | $ | (8,951 | ) | $ | 612,943 | $ | (11,501 | ) | |||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Residential MBS: | ||||||||||||||||||||||||||||||||
Agency-backed | $ | 137,265 | $ | (4,157 | ) | $ | — | $ | — | $ | 137,265 | $ | (4,157 | ) | ||||||||||||||||||
CMO/Other MBS | 122,324 | (2,742 | ) | 7,820 | (296 | ) | 130,144 | (3,038 | ) | |||||||||||||||||||||||
Total residential MBS | 259,589 | (6,899 | ) | 7,820 | (296 | ) | 267,409 | (7,195 | ) | |||||||||||||||||||||||
Other securities: | ||||||||||||||||||||||||||||||||
Federal agencies | 261,547 | (12,090 | ) | — | — | 261,547 | (12,090 | ) | ||||||||||||||||||||||||
State and municipal | 43,585 | (2,033 | ) | 112 | (8 | ) | 43,697 | (2,041 | ) | |||||||||||||||||||||||
Corporate | 95,013 | (3,795 | ) | — | — | 95,013 | (3,795 | ) | ||||||||||||||||||||||||
Total other securities | 400,145 | (17,918 | ) | 112 | (8 | ) | 400,257 | (17,926 | ) | |||||||||||||||||||||||
Total | $ | 659,734 | $ | (24,817 | ) | $ | 7,932 | $ | (304 | ) | $ | 667,666 | $ | (25,121 | ) | |||||||||||||||||
Securities held to maturity with unrealized losses, by length of time in continuous unrealized loss position | ' | |||||||||||||||||||||||||||||||
The following table summarizes securities held to maturity with unrealized losses, segregated by the length of time in a continuous unrealized loss position: | ||||||||||||||||||||||||||||||||
Continuous unrealized loss position | ||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||||||||||||||
Held to maturity | ||||||||||||||||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||||||||||||||
Residential MBS: | ||||||||||||||||||||||||||||||||
Agency-backed | $ | 20,616 | $ | (103 | ) | $ | — | $ | — | $ | 20,616 | $ | (103 | ) | ||||||||||||||||||
CMO/Other MBS | 14,928 | (368 | ) | 42,646 | (836 | ) | 57,574 | (1,204 | ) | |||||||||||||||||||||||
Total residential MBS | 35,544 | (471 | ) | 42,646 | (836 | ) | 78,190 | (1,307 | ) | |||||||||||||||||||||||
Other securities: | ||||||||||||||||||||||||||||||||
Federal agencies | 23,756 | (62 | ) | 24,101 | (900 | ) | 47,857 | (962 | ) | |||||||||||||||||||||||
State and municipal | 13,943 | (100 | ) | 1,479 | (23 | ) | 15,422 | (123 | ) | |||||||||||||||||||||||
Total other securities | 37,699 | (162 | ) | 25,580 | (923 | ) | 63,279 | (1,085 | ) | |||||||||||||||||||||||
Total | $ | 73,243 | $ | (633 | ) | $ | 68,226 | $ | (1,759 | ) | $ | 141,469 | $ | (2,392 | ) | |||||||||||||||||
30-Sep-13 | ||||||||||||||||||||||||||||||||
Residential MBS: | ||||||||||||||||||||||||||||||||
Agency-backed | $ | 10,963 | $ | (86 | ) | $ | — | $ | — | $ | 10,963 | $ | (86 | ) | ||||||||||||||||||
CMO/Other MBS | 31,412 | (337 | ) | — | — | 31,412 | (337 | ) | ||||||||||||||||||||||||
Total residential MBS | 42,375 | (423 | ) | — | — | 42,375 | (423 | ) | ||||||||||||||||||||||||
Other securities: | ||||||||||||||||||||||||||||||||
Federal agencies | 73,883 | (3,458 | ) | — | — | 73,883 | (3,458 | ) | ||||||||||||||||||||||||
State and municipal | 9,530 | (546 | ) | — | — | 9,530 | (546 | ) | ||||||||||||||||||||||||
Total other securities | 83,413 | (4,004 | ) | — | — | 83,413 | (4,004 | ) | ||||||||||||||||||||||||
Total | $ | 125,788 | $ | (4,427 | ) | $ | — | $ | — | $ | 125,788 | $ | (4,427 | ) | ||||||||||||||||||
Securities pledged for borrowings at FHLB and other institutions, and securities pledged for municipal deposits and other purposes | ' | |||||||||||||||||||||||||||||||
Securities pledged for borrowings at FHLB and other institutions, and securities pledged for municipal deposits and other purposes were as follows: | ||||||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Available for sale securities pledged for borrowings, at fair value | $ | 268,316 | $ | 199,642 | ||||||||||||||||||||||||||||
Available for sale securities pledged for municipal deposits, at fair value | 532,770 | 580,756 | ||||||||||||||||||||||||||||||
Available for sale securities pledged for customer back-to-back swaps, at fair value | 1,934 | 4,645 | ||||||||||||||||||||||||||||||
Held to maturity securities pledged for borrowings, at amortized cost | 58,509 | 55,497 | ||||||||||||||||||||||||||||||
Held to maturity securities pledged for municipal deposits, at amortized cost | 430,611 | 167,926 | ||||||||||||||||||||||||||||||
Total securities pledged | $ | 1,292,140 | $ | 1,008,466 | ||||||||||||||||||||||||||||
Loans_Tables
Loans (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||
Loans [Abstract] | ' | |||||||||||||||||||||||||||
Components of loan portfolio excluding loans held for sale | ' | |||||||||||||||||||||||||||
The composition of the Company’s loan portfolio, excluding loans held for sale, was the following: | ||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||||
Commercial & industrial | $ | 1,164,537 | $ | 439,787 | ||||||||||||||||||||||||
Payroll finance | 145,474 | — | ||||||||||||||||||||||||||
Warehouse lending | 192,003 | — | ||||||||||||||||||||||||||
Factored receivables | 181,433 | — | ||||||||||||||||||||||||||
Equipment financing | 393,027 | — | ||||||||||||||||||||||||||
Total commercial | 2,076,474 | 439,787 | ||||||||||||||||||||||||||
Commercial mortgage: | ||||||||||||||||||||||||||||
Commercial real estate | 1,449,052 | 969,490 | ||||||||||||||||||||||||||
Multi-family | 368,524 | 307,547 | ||||||||||||||||||||||||||
Acquisition, development & construction | 92,149 | 102,494 | ||||||||||||||||||||||||||
Total commercial mortgage | 1,909,725 | 1,379,531 | ||||||||||||||||||||||||||
Total commercial and commercial mortgage | 3,986,199 | 1,819,318 | ||||||||||||||||||||||||||
Residential mortgage | 570,431 | 400,009 | ||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
Home equity lines of credit | 159,944 | 156,995 | ||||||||||||||||||||||||||
Other consumer loans | 43,864 | 36,576 | ||||||||||||||||||||||||||
Total consumer | 203,808 | 193,571 | ||||||||||||||||||||||||||
Total loans | 4,760,438 | 2,412,898 | ||||||||||||||||||||||||||
Allowance for loan losses | (40,612 | ) | (28,877 | ) | ||||||||||||||||||||||||
Total loans, net | $ | 4,719,826 | $ | 2,384,021 | ||||||||||||||||||||||||
Schedule of amounts and status of loans and TDRs | ' | |||||||||||||||||||||||||||
The following tables set forth the amounts and status of the Company’s loans and TDRs at September 30, 2014 and September 30, 2013: | ||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||
Current | 30-59 | 60-89 | 90+ | Non- | Total | |||||||||||||||||||||||
days | days | days | accrual | |||||||||||||||||||||||||
past due | past due | past due | ||||||||||||||||||||||||||
Commercial & industrial | $ | 1,150,854 | $ | 2,316 | $ | 7,043 | $ | — | $ | 4,324 | $ | 1,164,537 | ||||||||||||||||
Payroll finance | 145,029 | 99 | — | 346 | — | 145,474 | ||||||||||||||||||||||
Warehouse lending | 192,003 | — | — | — | — | 192,003 | ||||||||||||||||||||||
Factored receivables | 181,063 | — | — | — | 370 | 181,433 | ||||||||||||||||||||||
Equipment financing | 391,914 | 689 | 162 | — | 262 | 393,027 | ||||||||||||||||||||||
Commercial real estate | 1,433,805 | 93 | 4,188 | 521 | 10,445 | 1,449,052 | ||||||||||||||||||||||
Multi-family | 368,393 | — | — | — | 131 | 368,524 | ||||||||||||||||||||||
Acquisition, development & construction | 79,732 | — | 56 | — | 12,361 | 92,149 | ||||||||||||||||||||||
Residential mortgage | 547,912 | 4,023 | 2,036 | 534 | 15,926 | 570,431 | ||||||||||||||||||||||
Consumer | 193,491 | 3,087 | 1,487 | — | 5,743 | 203,808 | ||||||||||||||||||||||
Total loans | $ | 4,684,196 | $ | 10,307 | $ | 14,972 | $ | 1,401 | $ | 49,562 | $ | 4,760,438 | ||||||||||||||||
Total TDRs included above | $ | 17,138 | $ | 346 | $ | 169 | $ | — | $ | 11,944 | $ | 29,597 | ||||||||||||||||
Non-performing loans: | ||||||||||||||||||||||||||||
Loans 90+ days past due and still accruing | $ | 1,401 | ||||||||||||||||||||||||||
Non-accrual loans | 49,562 | |||||||||||||||||||||||||||
Total non-performing loans | $ | 50,963 | ||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||
Current | 30-59 | 60-89 | 90+ | Non- | Total | |||||||||||||||||||||||
days | days | days | accrual | |||||||||||||||||||||||||
past due | past due | past due | ||||||||||||||||||||||||||
Commercial & industrial | $ | 438,818 | $ | 178 | $ | 2 | $ | 289 | $ | 500 | 439,787 | |||||||||||||||||
Commercial real estate | 1,263,933 | 1,978 | 2,357 | 1,574 | 7,195 | 1,277,037 | ||||||||||||||||||||||
Acquisition, development & construction | 96,306 | 768 | — | — | 5,420 | 102,494 | ||||||||||||||||||||||
Residential mortgage | 390,072 | 354 | 267 | 1,832 | 7,484 | 400,009 | ||||||||||||||||||||||
Consumer | 190,393 | 566 | — | 404 | 2,208 | 193,571 | ||||||||||||||||||||||
Total loans | $ | 2,379,522 | $ | 3,844 | $ | 2,626 | $ | 4,099 | $ | 22,807 | $ | 2,412,898 | ||||||||||||||||
Total TDRs included above | $ | 23,754 | $ | — | $ | — | $ | 141 | $ | 2,199 | $ | 26,094 | ||||||||||||||||
Non-performing loans: | ||||||||||||||||||||||||||||
Loans 90+ days past due and still accruing | $ | 4,099 | ||||||||||||||||||||||||||
Non-accrual loans | 22,807 | |||||||||||||||||||||||||||
Total non-performing loans | $ | 26,906 | ||||||||||||||||||||||||||
Allowance for loan losses activity | ' | |||||||||||||||||||||||||||
Activity in the allowance for loan losses for the fiscal years ended September 30, 2014, 2013 and 2012 is summarized below: | ||||||||||||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||||||||||
Beginning | Charge-offs | Recoveries | Net | Provision | Ending balance | |||||||||||||||||||||||
balance | charge-offs | |||||||||||||||||||||||||||
Commercial & industrial | $ | 5,302 | $ | (2,901 | ) | $ | 1,073 | $ | (1,828 | ) | $ | 6,062 | $ | 9,536 | ||||||||||||||
Payroll finance | — | (758 | ) | — | (758 | ) | 2,137 | 1,379 | ||||||||||||||||||||
Warehouse lending | — | — | — | — | 630 | 630 | ||||||||||||||||||||||
Factored receivables | — | (211 | ) | 9 | (202 | ) | 1,496 | 1,294 | ||||||||||||||||||||
Equipment financing | — | (1,074 | ) | 194 | (880 | ) | 3,501 | 2,621 | ||||||||||||||||||||
Commercial real estate | 9,967 | (741 | ) | 161 | (580 | ) | 1,457 | 10,844 | ||||||||||||||||||||
Multi-family | — | (418 | ) | 92 | (326 | ) | 2,193 | 1,867 | ||||||||||||||||||||
Acquisition, development & construction | 5,806 | (1,479 | ) | — | (1,479 | ) | (2,207 | ) | 2,120 | |||||||||||||||||||
Residential mortgage | 4,474 | (963 | ) | 323 | (640 | ) | 2,003 | 5,837 | ||||||||||||||||||||
Consumer | 3,328 | (786 | ) | 114 | (672 | ) | 1,828 | 4,484 | ||||||||||||||||||||
Total loans | $ | 28,877 | $ | (9,331 | ) | $ | 1,966 | $ | (7,365 | ) | $ | 19,100 | $ | 40,612 | ||||||||||||||
Annualized net charge-offs to average loans outstanding | 0.24 | % | ||||||||||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||||||||||
Beginning | Charge-offs | Recoveries | Net | Provision | Ending balance | |||||||||||||||||||||||
balance | charge-offs | |||||||||||||||||||||||||||
Commercial & industrial | $ | 4,603 | $ | (1,354 | ) | $ | 410 | $ | (944 | ) | $ | 1,643 | $ | 5,302 | ||||||||||||||
Commercial real estate | 7,230 | (3,725 | ) | 577 | (3,148 | ) | 5,885 | 9,967 | ||||||||||||||||||||
Acquisition, development & construction | 8,526 | (3,422 | ) | 182 | (3,240 | ) | 520 | 5,806 | ||||||||||||||||||||
Residential mortgage | 4,359 | (2,547 | ) | 101 | (2,446 | ) | 2,561 | 4,474 | ||||||||||||||||||||
Consumer | 3,564 | (2,009 | ) | 232 | (1,777 | ) | 1,541 | 3,328 | ||||||||||||||||||||
Total loans | $ | 28,282 | $ | (13,057 | ) | $ | 1,502 | $ | (11,555 | ) | $ | 12,150 | $ | 28,877 | ||||||||||||||
Annualized net charge-offs to average loans outstanding | 0.52 | % | ||||||||||||||||||||||||||
September 30, 2012 | ||||||||||||||||||||||||||||
Beginning | Charge-offs | Recoveries | Net | Provision | Ending balance | |||||||||||||||||||||||
balance | charge-offs | |||||||||||||||||||||||||||
Commercial & industrial | $ | 5,945 | $ | (1,526 | ) | $ | 1,116 | $ | (410 | ) | $ | (932 | ) | $ | 4,603 | |||||||||||||
Commercial real estate | 5,568 | (2,707 | ) | 528 | (2,179 | ) | 3,841 | 7,230 | ||||||||||||||||||||
Acquisition, development & construction | 9,895 | (4,124 | ) | 299 | (3,825 | ) | 2,456 | 8,526 | ||||||||||||||||||||
Residential mortgage | 3,498 | (2,551 | ) | 356 | (2,195 | ) | 3,056 | 4,359 | ||||||||||||||||||||
Consumer | 3,011 | (1,901 | ) | 263 | (1,638 | ) | 2,191 | 3,564 | ||||||||||||||||||||
Total loans | $ | 27,917 | $ | (12,809 | ) | $ | 2,562 | $ | (10,247 | ) | $ | 10,612 | $ | 28,282 | ||||||||||||||
Annualized net charge-offs to average loans outstanding | 0.56 | % | ||||||||||||||||||||||||||
Impaired financing receivables | ' | |||||||||||||||||||||||||||
The following table sets forth loans evaluated for impairment by segment and the allowance evaluated by segment at September 30, 2014: | ||||||||||||||||||||||||||||
Loans evaluated by segment | Allowance evaluated by segment | |||||||||||||||||||||||||||
Individually | Collectively | Purchased credit impaired loans | Total | Individually | Collectively | Total allowance for loan losses | ||||||||||||||||||||||
evaluated for | evaluated for | loans | evaluated for | evaluated for | ||||||||||||||||||||||||
impairment | impairment | impairment | impairment | |||||||||||||||||||||||||
Commercial & industrial | $ | 4,177 | $ | 1,158,837 | $ | 1,523 | $ | 1,164,537 | $ | — | $ | 9,536 | $ | 9,536 | ||||||||||||||
Payroll finance | — | 145,474 | — | 145,474 | — | 1,379 | 1,379 | |||||||||||||||||||||
Warehouse lending | — | 192,003 | — | 192,003 | — | 630 | 630 | |||||||||||||||||||||
Factored receivables | — | 181,433 | — | 181,433 | — | 1,294 | 1,294 | |||||||||||||||||||||
Equipment financing | — | 393,027 | — | 393,027 | — | 2,621 | 2,621 | |||||||||||||||||||||
Commercial real estate | 13,750 | 1,435,163 | 139 | 1,449,052 | — | 10,844 | 10,844 | |||||||||||||||||||||
Multi-family | — | 368,524 | — | 368,524 | — | 1,867 | 1,867 | |||||||||||||||||||||
Acquisition, development & construction | 17,766 | 74,383 | — | 92,149 | — | 2,120 | 2,120 | |||||||||||||||||||||
Residential mortgage | 515 | 567,815 | 2,101 | 570,431 | — | 5,837 | 5,837 | |||||||||||||||||||||
Consumer | — | 203,808 | — | 203,808 | — | 4,484 | 4,484 | |||||||||||||||||||||
Total loans | $ | 36,208 | $ | 4,720,467 | $ | 3,763 | $ | 4,760,438 | $ | — | $ | 40,612 | $ | 40,612 | ||||||||||||||
The following table sets forth loans evaluated for impairment by segment and the allowance evaluated by segment at September 30, 2013: | ||||||||||||||||||||||||||||
Loans evaluated by segment | Allowance evaluated by segment | |||||||||||||||||||||||||||
Individually | Collectively | Total | Individually | Collectively | Total allowance for loan losses | |||||||||||||||||||||||
evaluated for | evaluated for | loans | evaluated for | evaluated for | ||||||||||||||||||||||||
impairment | impairment | impairment | impairment | |||||||||||||||||||||||||
Commercial & industrial | $ | 2,631 | $ | 437,156 | $ | 439,787 | $ | 249 | $ | 5,053 | $ | 5,302 | ||||||||||||||||
Commercial real estate | 14,091 | 1,262,946 | 1,277,037 | 803 | 9,164 | 9,967 | ||||||||||||||||||||||
Acquisition, development & construction | 19,582 | 82,912 | 102,494 | 540 | 5,266 | 5,806 | ||||||||||||||||||||||
Residential mortgage | 515 | 399,494 | 400,009 | — | 4,474 | 4,474 | ||||||||||||||||||||||
Consumer | 2 | 193,569 | 193,571 | 1 | 3,327 | 3,328 | ||||||||||||||||||||||
Total loans | $ | 36,821 | $ | 2,376,077 | $ | 2,412,898 | $ | 1,593 | $ | 27,284 | $ | 28,877 | ||||||||||||||||
The following table presents loans individually evaluated for impairment by segment of loans at September 30, 2014 and September 30, 2013: | ||||||||||||||||||||||||||||
September 30, 2014 | 30-Sep-13 | |||||||||||||||||||||||||||
Unpaid | Recorded | Related allowance | Unpaid | Recorded | Related allowance | |||||||||||||||||||||||
principal | investment | principal | investment | |||||||||||||||||||||||||
balance | balance | |||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||
Commercial & industrial | $ | 4,177 | $ | 4,177 | $ | — | $ | 2,175 | $ | 2,131 | $ | — | ||||||||||||||||
Commercial real estate | 13,886 | 13,750 | — | 12,451 | 11,820 | — | ||||||||||||||||||||||
Acquisition, development & construction | 18,676 | 17,766 | — | 17,971 | 17,945 | — | ||||||||||||||||||||||
Residential mortgage | 515 | 515 | — | 515 | 515 | — | ||||||||||||||||||||||
Subtotal | 37,254 | 36,208 | — | 33,112 | 32,411 | — | ||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||
Commercial & industrial | — | — | — | 500 | 500 | 249 | ||||||||||||||||||||||
Commercial real estate | — | — | — | 3,150 | 2,271 | 803 | ||||||||||||||||||||||
Acquisition, development & construction | — | — | — | 2,753 | 1,637 | 540 | ||||||||||||||||||||||
Consumer | — | — | — | 2 | 2 | 1 | ||||||||||||||||||||||
Subtotal | — | — | — | 6,405 | 4,410 | 1,593 | ||||||||||||||||||||||
Total | $ | 37,254 | $ | 36,208 | $ | — | $ | 39,517 | $ | 36,821 | $ | 1,593 | ||||||||||||||||
The following table presents the average recorded investment and interest income recognized related to loans individually evaluated for impairment by segment for the fiscal year September 30, 2014 and 2013: | ||||||||||||||||||||||||||||
September 30, 2014 | September 30, 2013 | |||||||||||||||||||||||||||
YTD average | Interest | Cash-basis | YTD average | Interest | Cash-basis | |||||||||||||||||||||||
recorded | income | interest | recorded | income | interest | |||||||||||||||||||||||
investment | recognized | income | investment | recognized | income | |||||||||||||||||||||||
recognized | recognized | |||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||
Commercial & industrial | $ | 4,180 | $ | — | $ | — | $ | 1,821 | $ | 91 | $ | 86 | ||||||||||||||||
Commercial real estate | 14,016 | 186 | 180 | 17,325 | 286 | 275 | ||||||||||||||||||||||
Acquisition, development & construction | 20,525 | 239 | 239 | 12,827 | 631 | 587 | ||||||||||||||||||||||
Residential mortgage | 515 | — | — | 309 | — | — | ||||||||||||||||||||||
Consumer | — | — | — | 61 | — | — | ||||||||||||||||||||||
Subtotal | 39,236 | 425 | 419 | 32,343 | 1,008 | 948 | ||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||
Commercial & industrial | — | — | — | 705 | — | — | ||||||||||||||||||||||
Commercial real estate | — | — | — | 6,646 | 7 | 7 | ||||||||||||||||||||||
Acquisition, development & construction | — | — | — | 1,104 | — | — | ||||||||||||||||||||||
Residential mortgage | — | — | — | 1,602 | 14 | 10 | ||||||||||||||||||||||
Consumer | — | — | — | 228 | — | — | ||||||||||||||||||||||
Subtotal | — | — | — | 10,285 | 21 | 17 | ||||||||||||||||||||||
Total | $ | 39,236 | $ | 425 | $ | 419 | $ | 42,628 | $ | 1,029 | $ | 965 | ||||||||||||||||
Troubled debt restructurings | ' | |||||||||||||||||||||||||||
The following table presents loans by segment modified as TDRs that occurred during the twelve months ended September 30, 2014 and 2013: | ||||||||||||||||||||||||||||
September 30, 2014 | September 30, 2013 | |||||||||||||||||||||||||||
Recorded investment | Recorded investment | |||||||||||||||||||||||||||
Number | Pre- | Post- | Number | Pre- | Post- | |||||||||||||||||||||||
modification | modification | modification | modification | |||||||||||||||||||||||||
Commercial & industrial | — | $ | — | $ | — | 5 | $ | 2,001 | $ | 2,001 | ||||||||||||||||||
Commercial real estate | — | — | — | 2 | 2,682 | 2,682 | ||||||||||||||||||||||
Acquisition, development & construction | 2 | 1,060 | 1,060 | 7 | 5,772 | 5,772 | ||||||||||||||||||||||
Residential mortgage | — | — | — | 6 | 1,436 | 1,372 | ||||||||||||||||||||||
Consumer | — | — | — | 1 | 302 | 302 | ||||||||||||||||||||||
Total restructured loans | 2 | $ | 1,060 | $ | 1,060 | 21 | $ | 12,193 | $ | 12,129 | ||||||||||||||||||
The following tables set forth the amounts and past due status of the Company’s TDRs at September 30, 2014 and 2013: | ||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||
Current loans | 30-59 | 60-89 | 90+ | Non- | Total | |||||||||||||||||||||||
days | days | days | accrual | |||||||||||||||||||||||||
past due | past due | past due | ||||||||||||||||||||||||||
Commercial & industrial | $ | 275 | $ | — | $ | — | $ | — | $ | 1,618 | $ | 1,893 | ||||||||||||||||
Equipment financing | 435 | — | — | — | — | 435 | ||||||||||||||||||||||
Commercial real estate | 4,838 | — | — | — | 447 | 5,285 | ||||||||||||||||||||||
Acquisition, development & construction | 5,732 | — | — | — | 6,817 | 12,549 | ||||||||||||||||||||||
Residential mortgage | 5,858 | 346 | 169 | — | 2,841 | 9,214 | ||||||||||||||||||||||
Consumer | — | — | — | — | 221 | 221 | ||||||||||||||||||||||
Total | $ | 17,138 | $ | 346 | $ | 169 | $ | — | $ | 11,944 | $ | 29,597 | ||||||||||||||||
Allowance for loan losses | $ | 409 | $ | — | $ | 31 | $ | — | $ | 451 | $ | 891 | ||||||||||||||||
30-Sep-13 | ||||||||||||||||||||||||||||
Current loans | 30-59 | 60-89 | 90+ | Non- | Total | |||||||||||||||||||||||
days | days | days | accrual | |||||||||||||||||||||||||
past due | past due | past due | ||||||||||||||||||||||||||
Commercial & industrial | $ | 1,843 | $ | — | $ | — | $ | 141 | $ | — | $ | 1,984 | ||||||||||||||||
Commercial real estate | 5,305 | — | — | — | — | 5,305 | ||||||||||||||||||||||
Acquisition, development & construction | 14,190 | — | — | — | 151 | 14,341 | ||||||||||||||||||||||
Residential mortgage | 2,416 | — | — | — | 1,792 | 4,208 | ||||||||||||||||||||||
Consumer | — | — | — | — | 256 | 256 | ||||||||||||||||||||||
Total loans | $ | 23,754 | $ | — | $ | — | $ | 141 | $ | 2,199 | $ | 26,094 | ||||||||||||||||
Allowance for loan losses | $ | 438 | $ | — | $ | — | $ | — | $ | 439 | $ | 877 | ||||||||||||||||
Financing receivable credit quality indicators | ' | |||||||||||||||||||||||||||
Loans that are risk-rated 1 through 6 as defined above are considered to be pass-rated loans. As of September 30, 2014 and 2013, the risk category of gross loans by segment was as follows: | ||||||||||||||||||||||||||||
September 30, 2014 | September 30, 2013 | |||||||||||||||||||||||||||
Special | Substandard | Doubtful | Special | Substandard | Doubtful | |||||||||||||||||||||||
mention | mention | |||||||||||||||||||||||||||
Commercial & industrial | $ | 24,980 | $ | 5,749 | $ | — | $ | 3,545 | $ | 3,855 | $ | 365 | ||||||||||||||||
Payroll finance | — | 346 | — | — | — | — | ||||||||||||||||||||||
Factored receivables | 46 | 370 | — | — | — | — | ||||||||||||||||||||||
Equipment financing | — | 262 | — | — | — | — | ||||||||||||||||||||||
Commercial real estate | 8,720 | 26,826 | — | 7,279 | 24,561 | 227 | ||||||||||||||||||||||
Multi-family | — | 131 | — | — | — | — | ||||||||||||||||||||||
Acquisition, development & construction | 1,040 | 16,456 | — | 1,867 | 19,410 | — | ||||||||||||||||||||||
Residential mortgage | 2,988 | 16,981 | — | 824 | 9,786 | — | ||||||||||||||||||||||
Consumer | 1,779 | 5,972 | — | 15 | 2,891 | — | ||||||||||||||||||||||
Total | $ | 39,553 | $ | 73,093 | $ | — | $ | 13,530 | $ | 60,503 | $ | 592 | ||||||||||||||||
Premises_And_Equipment_Net_Tab
Premises And Equipment, Net (Tables) | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Premises and Equipment, Net | ' | |||||||
Premises and equipment are summarized as follows: | ||||||||
September 30, | ||||||||
2014 | 2013 | |||||||
Land and land improvements | $ | 6,048 | $ | 7,282 | ||||
Buildings | 22,888 | 30,558 | ||||||
Leasehold improvements | 32,963 | 8,136 | ||||||
Furniture, fixtures and equipment | 50,343 | 40,164 | ||||||
Total premises and equipment, gross | 112,242 | 86,140 | ||||||
Accumulated depreciation and amortization | (68,956 | ) | (49,620 | ) | ||||
Total premises and equipment, net | $ | 43,286 | $ | 36,520 | ||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Change in goodwill | ' | |||||||||||
The change in goodwill in the fiscal years ended September 30, 2014 and 2013 was as follows: | ||||||||||||
September 30, | ||||||||||||
2014 | 2013 | |||||||||||
Beginning of year balance | $ | 163,117 | $ | 163,247 | ||||||||
Acquisitions | 225,809 | (130 | ) | |||||||||
Disposals | — | — | ||||||||||
End of year balance | $ | 388,926 | $ | 163,117 | ||||||||
Other intangible assets | ' | |||||||||||
The balance of other intangible assets at September 30, 2014 and 2013 was as follows: | ||||||||||||
Gross intangible assets | Accumulated amortization | Net intangible assets | ||||||||||
30-Sep-14 | ||||||||||||
Core deposits | $ | 24,182 | $ | (4,694 | ) | $ | 19,488 | |||||
Non-compete agreements | 10,308 | (5,490 | ) | 4,818 | ||||||||
Trade name | 20,500 | — | 20,500 | |||||||||
Fair value of below market leases | 725 | (253 | ) | 472 | ||||||||
Provident Bank Ball Park naming rights | 2,414 | (2,414 | ) | — | ||||||||
$ | 58,129 | $ | (12,851 | ) | $ | 45,278 | ||||||
30-Sep-13 | ||||||||||||
Core deposits | $ | 4,818 | $ | (798 | ) | $ | 4,020 | |||||
Provident Bank Ball Park naming rights | 2,414 | (543 | ) | 1,871 | ||||||||
$ | 7,232 | $ | (1,341 | ) | $ | 5,891 | ||||||
Future amortization expense | ' | |||||||||||
The estimated aggregate future amortization expense for other intangible assets remaining as of September 30, 2014 was as follows: | ||||||||||||
Amortization expense | ||||||||||||
2015 | $ | 6,113 | ||||||||||
2016 | 5,042 | |||||||||||
2017 | 2,598 | |||||||||||
2018 | 2,178 | |||||||||||
2019 | 2,058 | |||||||||||
Thereafter | 6,786 | |||||||||||
$ | 24,775 | |||||||||||
Deposits_Tables
Deposits (Tables) | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Deposits [Abstract] | ' | |||||||
Summary of major classification of deposits | ' | |||||||
Deposit balances at September 30, 2014 and 2013 are summarized as follows: | ||||||||
September 30, | ||||||||
2014 | 2013 | |||||||
Non-interest bearing demand | $ | 1,799,685 | $ | 943,934 | ||||
Interest bearing demand | 766,852 | 434,398 | ||||||
Savings | 698,443 | 580,125 | ||||||
Money market | 1,595,803 | 735,709 | ||||||
Certificates of deposit | 437,871 | 268,128 | ||||||
Total deposits | $ | 5,298,654 | $ | 2,962,294 | ||||
Schedule of maturities of deposits | ' | |||||||
Certificates of deposit had remaining periods to contractual maturity as follows: | ||||||||
September 30, | ||||||||
2014 | 2013 | |||||||
Remaining period to contractual maturity: | ||||||||
Less than one year | $ | 340,813 | $ | 239,104 | ||||
One to two years | 53,319 | 17,248 | ||||||
Two to three years | 35,632 | 5,185 | ||||||
Three to four years | 4,000 | 3,062 | ||||||
Four to five years | 4,107 | 3,529 | ||||||
Total certificates of deposit | $ | 437,871 | $ | 268,128 | ||||
List of Company's Brokered deposits | ' | |||||||
Listed below are the Company’s brokered deposits at September 30, 2014 and 2013: | ||||||||
September 30, | ||||||||
2014 | 2013 | |||||||
Money market | $ | 84,022 | $ | 34,571 | ||||
Reciprocal CDAR’s 1 | 34,017 | 1,343 | ||||||
CDAR’s one way | 3,028 | 768 | ||||||
Total brokered deposits | $ | 121,067 | $ | 36,682 | ||||
1 Certificate of deposit account registry service |
Borrowings_and_Senior_Notes_Ta
Borrowings and Senior Notes (Tables) | 12 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Debt Instruments [Abstract] | ' | |||||||||||||
Schedule of debt | ' | |||||||||||||
The Company’s borrowings and weighted average interest rates are summarized as follows: | ||||||||||||||
September 30, | ||||||||||||||
2014 | 2013 | |||||||||||||
Amount | Rate | Amount | Rate | |||||||||||
By type of borrowing: | ||||||||||||||
FHLB advances and overnight | $ | 795,028 | 1.75 | % | $ | 442,602 | 2.77 | % | ||||||
Repurchase agreements | 25,639 | 0.39 | 20,351 | 0.88 | ||||||||||
Fed funds purchased | 20,000 | 0.31 | — | — | ||||||||||
Senior notes | 98,402 | 5.98 | 98,033 | 5.98 | ||||||||||
Total borrowings | $ | 939,069 | 2.12 | % | $ | 560,986 | 3.26 | % | ||||||
By remaining period to maturity: | ||||||||||||||
Less than one year | $ | 370,365 | 0.69 | % | $ | 158,897 | 0.95 | % | ||||||
One to two years | 140,344 | 0.59 | 78,717 | 1.97 | ||||||||||
Two to three years | 257,442 | 3.52 | 191 | 5.32 | ||||||||||
Three to four years | 168,402 | 4.38 | 202,414 | 4.21 | ||||||||||
Four to five years | — | — | 118,033 | 5.57 | ||||||||||
Greater than five years | 2,516 | 4.92 | 2,734 | 4.92 | ||||||||||
Total borrowings | $ | 939,069 | 2.12 | % | $ | 560,986 | 3.26 | % | ||||||
Derivatives_Tables
Derivatives (Tables) | 12 Months Ended | ||||||||||||||
Sep. 30, 2014 | |||||||||||||||
Derivative Instruments and Hedges, Assets [Abstract] | ' | ||||||||||||||
Summary of derivatives | ' | ||||||||||||||
Summary information as of September 30, 2014 and 2013 regarding these derivatives is presented below: | |||||||||||||||
Notional | Average | Weighted | Weighted | Fair value | |||||||||||
amount | maturity (in years) | average | average | ||||||||||||
fixed rate | variable rate | ||||||||||||||
30-Sep-14 | |||||||||||||||
Interest rate caps | $ | 50,000 | 0.18 | 3.75 | % | NA | $ | — | |||||||
3rd party interest rate swap | 50,729 | 4.86 | 4.2 | 1 m Libor + 2.44 | 1,096 | ||||||||||
Customer interest rate swap | (50,729 | ) | 4.86 | 4.2 | 1 m Libor + 2.44 | (1,096 | ) | ||||||||
30-Sep-13 | |||||||||||||||
Interest rate caps | $ | 50,000 | 1.18 | 3.75 | % | NA | $ | — | |||||||
3rd party interest rate swap | 54,180 | 5.76 | 4.22 | 1 m Libor + 2.45 | 997 | ||||||||||
Customer interest rate swap | (54,180 | ) | 5.76 | 4.22 | 1 m Libor + 2.45 | (997 | ) | ||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Schedule of Components of Income Tax Expense (Benefit) | ' | |||||||||||
Income tax expense for the periods indicated consists of the following: | ||||||||||||
For the year ended September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current tax expense: | ||||||||||||
Federal | $ | 11,613 | $ | 9,146 | $ | 5,538 | ||||||
State | 1,598 | 1,549 | 685 | |||||||||
Total current tax expense | 13,211 | 10,695 | 6,223 | |||||||||
Deferred tax (benefit) expense: | ||||||||||||
Federal | (2,745 | ) | 522 | (261 | ) | |||||||
State | (314 | ) | 197 | 197 | ||||||||
Total deferred tax (benefit) expense | (3,059 | ) | 719 | (64 | ) | |||||||
Total income tax expense | $ | 10,152 | $ | 11,414 | $ | 6,159 | ||||||
Schedule of Effective Income Tax Rate Reconciliation | ' | |||||||||||
Actual income tax expense differs from the tax computed based on pre-tax income and the applicable statutory Federal tax rate for the following reasons: | ||||||||||||
For the year ended September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Tax at Federal statutory rate of 35% | $ | 13,241 | $ | 12,833 | $ | 9,116 | ||||||
State and local income taxes, net of Federal tax benefit | 834 | 1,135 | 573 | |||||||||
Tax-exempt interest, net of disallowed interest | (3,824 | ) | (2,192 | ) | (2,448 | ) | ||||||
BOLI income | (1,110 | ) | (699 | ) | (718 | ) | ||||||
Non-deductible acquisition related costs | 712 | 416 | 418 | |||||||||
Low income housing tax credits | (165 | ) | — | — | ||||||||
Other, net | 464 | (79 | ) | (782 | ) | |||||||
Actual income tax expense | $ | 10,152 | $ | 11,414 | $ | 6,159 | ||||||
Effective income tax rate | 26.8 | % | 31.1 | % | 23.6 | % | ||||||
Schedule of Deferred Tax Assets and Liabilities | ' | |||||||||||
The following table presents the Company’s deferred tax position at September 30, 2014 and 2013: | ||||||||||||
September 30, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Allowance for loan losses | $ | 17,272 | $ | 11,809 | ||||||||
Deferred compensation | 649 | 798 | ||||||||||
Other accrued compensation and benefits | 5,418 | 1,497 | ||||||||||
Accrued post retirement expense | 2,705 | 1,441 | ||||||||||
Deferred rent | — | 1,059 | ||||||||||
Intangible assets | 2,439 | — | ||||||||||
Other comprehensive loss (securities) | 5,777 | 7,844 | ||||||||||
Other comprehensive loss (defined benefit plans) | 2,371 | 2,638 | ||||||||||
Depreciation of premises and equipment | 433 | — | ||||||||||
State NOL carryforward | 1,431 | — | ||||||||||
Other | 3,511 | 2,172 | ||||||||||
Total deferred tax assets | 42,006 | 29,258 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Undistributed earnings of subsidiary not consolidated for tax return purposes (income from REITs) | 9,303 | 4,483 | ||||||||||
Prepaid pension costs | 10,579 | 3,758 | ||||||||||
Purchase accounting adjustments | 16,056 | 1,057 | ||||||||||
Depreciation and lease adjustments | — | 2,686 | ||||||||||
Deferred rent | 163 | — | ||||||||||
Intangibles amortization | — | 112 | ||||||||||
Other | 2,557 | 2,207 | ||||||||||
Total deferred tax liabilities | 38,658 | 14,303 | ||||||||||
Net deferred tax asset | $ | 3,348 | $ | 14,955 | ||||||||
Employee_Benefit_Plans_And_Sto1
Employee Benefit Plans And Stock-Based Compensation Plans (Tables) | 12 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Schedule of Employee Benefit Plans And Stock-Based Compensation Plans [Line Items] | ' | |||||||||||||||||
Summary of Company's stock option activity | ' | |||||||||||||||||
The following table summarizes the activity in the Company’s active stock-based compensation plans for September 30, 2014: | ||||||||||||||||||
Non-vested stock awards/stock units outstanding | Stock options outstanding | |||||||||||||||||
Shares available for grant | Number of shares | Weighted average grant date fair value | Number of shares | Weighted average exercise price | ||||||||||||||
Balance at October 1, 2013 | 2,066,184 | 209,697 | $ | 8.73 | 2,114,509 | $ | 10.71 | |||||||||||
2014 Stock Incentive Plan | 3,400,000 | |||||||||||||||||
2012 Stock Incentive Plan termination | (566,554 | ) | ||||||||||||||||
Grants associated with the Merger(1) | (921,503 | ) | 351,964 | 11.72 | 104,152 | 14.25 | ||||||||||||
Granted (1) | (719,674 | ) | 115,145 | 11.53 | 324,862 | 11.45 | ||||||||||||
Stock awards vested | — | (69,211 | ) | 9.51 | — | — | ||||||||||||
Exercised | — | — | — | (507,955 | ) | 11.29 | ||||||||||||
Forfeited | 439,594 | (18,841 | ) | (9.18 | ) | (375,235 | ) | 12.24 | ||||||||||
Canceled/expired | (347,286 | ) | — | — | — | |||||||||||||
Balance at September 30, 2014 | 3,350,761 | 588,754 | $ | 10.99 | 1,660,333 | $ | 10.55 | |||||||||||
Exercisable at September 30, 2014 | 951,492 | $ | 11.11 | |||||||||||||||
(1) Reflects certain non-vested stock awards that count as 3.5 shares or 3.6 shares for each share granted. | ||||||||||||||||||
Schedule of weighted-average assumptions as of grant date for options | ' | |||||||||||||||||
Other information regarding options outstanding at September 30, 2014 follows: | ||||||||||||||||||
Outstanding | Exercisable | |||||||||||||||||
Weighted average | Weighted average | |||||||||||||||||
Number of | Exercise | Life | Number of | Exercise | Life | |||||||||||||
stock options | price | (in years) | stock options | price | (in years) | |||||||||||||
Range of exercise prices: | ||||||||||||||||||
$6.71 to $9.00 | 689,711 | $ | 8.38 | 7.57 | 322,148 | $ | 8.36 | 7.57 | ||||||||||
$9.28 to $12.64 | 787,243 | 11.73 | 5.02 | 445,965 | 12.05 | 5.1 | ||||||||||||
$12.84 to $13.92 | 183,379 | 13.68 | 2.69 | 183,379 | 13.68 | 2.69 | ||||||||||||
1,660,333 | 10.55 | 5.82 | 951,492 | 11.11 | 5.82 | |||||||||||||
The fair value of options granted was determined using the following weighted-average assumptions as of the grant date: | ||||||||||||||||||
For the year ended September 30, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Risk-free interest rate | 1.8 | % | 1 | % | 1.4 | % | ||||||||||||
Expected stock price volatility | 26.4 | 40.8 | 40 | |||||||||||||||
Dividend yield (1) | 2 | 2.6 | 3 | |||||||||||||||
Expected term in years | 5.67 | 5.75 | 5.82 | |||||||||||||||
(1) Represents the approximate annualized cash dividend rate paid with respect to a share of common stock at or near the grant date. | ||||||||||||||||||
Schedule of stock-based compensation expense associated with stock options and non-vested stock awards | ' | |||||||||||||||||
Stock-based compensation expense associated with stock options and non-vested stock awards and the related income tax benefit was as follows: | ||||||||||||||||||
For the year ended September 30, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Stock options | $ | 901 | $ | 695 | $ | 521 | ||||||||||||
Non-vested stock awards/performance units | 2,508 | 1,047 | 276 | |||||||||||||||
Total | $ | 3,409 | $ | 1,742 | $ | 797 | ||||||||||||
Income tax benefit | 914 | 542 | 188 | |||||||||||||||
Unrecognized stock-based compensation expense | ' | |||||||||||||||||
Unrecognized stock-based compensation expense at September 30, 2014 was as follows: | ||||||||||||||||||
30-Sep-14 | ||||||||||||||||||
Stock options | $ | 962 | ||||||||||||||||
Non-vested stock awards/stock units | 4,013 | |||||||||||||||||
Total | $ | 4,975 | ||||||||||||||||
Pension Plans [Member] | ' | |||||||||||||||||
Schedule of Employee Benefit Plans And Stock-Based Compensation Plans [Line Items] | ' | |||||||||||||||||
Summary of changes in the projected benefit obligation and fair value of plan assets | ' | |||||||||||||||||
The following is a summary of changes in the projected benefit obligation and fair value of plan assets. The Company uses a September 30 measurement date for its pension plans. | ||||||||||||||||||
September 30, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Changes in projected benefit obligation: | ||||||||||||||||||
Beginning of year balance | $ | 31,705 | $ | 35,471 | ||||||||||||||
Benefit obligation of the Legacy Sterling Plan at October 31, 2013 | 52,296 | — | ||||||||||||||||
Service cost | — | — | ||||||||||||||||
Interest cost | 2,779 | 1,452 | ||||||||||||||||
Actuarial loss (gain) | 9,460 | (3,672 | ) | |||||||||||||||
Partial settlement | (44,774 | ) | — | |||||||||||||||
Benefits and distributions paid | (1,748 | ) | (1,546 | ) | ||||||||||||||
End of year balance | 49,718 | 31,705 | ||||||||||||||||
Changes in fair value of plan assets: | ||||||||||||||||||
Beginning of year balance | 35,417 | 32,657 | ||||||||||||||||
Fair value of the Legacy Sterling Plan assets at October 31, 2013 | 71,538 | — | ||||||||||||||||
Actual gain on plan assets | 8,137 | 4,306 | ||||||||||||||||
Employer contributions | — | — | ||||||||||||||||
Partial settlement | (44,774 | ) | — | |||||||||||||||
Benefits and distributions paid | (1,748 | ) | (1,546 | ) | ||||||||||||||
End of year balance | 68,570 | 35,417 | ||||||||||||||||
Funded status at end of year | $ | 18,852 | $ | 3,712 | ||||||||||||||
Components of the net periodic pension expense (benefit) | ' | |||||||||||||||||
The components of net periodic pension expense were as follows: | ||||||||||||||||||
For the year ended September 30, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Service cost | $ | — | $ | — | $ | — | ||||||||||||
Interest cost | 2,779 | 1,452 | 1,501 | |||||||||||||||
Expected return on plan assets | (3,380 | ) | (2,462 | ) | (2,125 | ) | ||||||||||||
Amortization of unrecognized actuarial loss | 236 | 2,062 | 2,316 | |||||||||||||||
Partial settlement charge | 3,922 | — | — | |||||||||||||||
Net periodic pension expense | $ | 3,557 | $ | 1,052 | $ | 1,692 | ||||||||||||
Schedule of amounts recognized in accumulated other comprehensive income (loss) | ' | |||||||||||||||||
Amounts recognized in accumulated other comprehensive (loss) at September 30, 2014 and 2013 consisted of: | ||||||||||||||||||
September 30, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Unrecognized actuarial loss | $ | (6,024 | ) | $ | (5,479 | ) | ||||||||||||
Deferred tax asset | 2,556 | 2,225 | ||||||||||||||||
Net amount recognized in accumulated other comprehensive (loss) | $ | (3,468 | ) | $ | (3,254 | ) | ||||||||||||
Schedule of expected benefit payments | ' | |||||||||||||||||
Estimated future benefit payments are the following for the years ending September 30: | ||||||||||||||||||
2015 | $ | 726 | ||||||||||||||||
2016 | 902 | |||||||||||||||||
2017 | 1,079 | |||||||||||||||||
2018 | 1,625 | |||||||||||||||||
2019 | 1,851 | |||||||||||||||||
2020 - 2024 | 13,461 | |||||||||||||||||
Schedule of fair value of plan assets and allocation | ' | |||||||||||||||||
Weighted average pension plan asset allocations based on the fair value of such assets at September 30, 2014 and September 30, 2013 and target allocation ranges for 2014, by asset category, are as follows: | ||||||||||||||||||
2014 | 2013 | Target allocation | Weighted | |||||||||||||||
range 2014 | average expected | |||||||||||||||||
rate of return | ||||||||||||||||||
Large cap U.S. equity | — | % | 44 | % | — | % | ||||||||||||
Small and mid cap U.S. equity | — | 11 | — | |||||||||||||||
International equity | — | 10 | — | |||||||||||||||
Total equity | — | 65 | 0% | — | ||||||||||||||
Total balanced asset allocation | — | 5 | — | |||||||||||||||
High yield bond | — | 3 | — | |||||||||||||||
Intermediate term bond | 13 | 27 | — | |||||||||||||||
Long-term bond | 87 | — | — | |||||||||||||||
Total fixed income | 100 | 30 | 95% - 100% | 4 | ||||||||||||||
Total assets | 100 | % | 100 | % | 4 | % | ||||||||||||
Cash | — | — | 0% to 5% | — | ||||||||||||||
The fair value of Plan assets by asset category as of September 30, 2014 and 2013, was the following: | ||||||||||||||||||
30-Sep-14 | ||||||||||||||||||
Fair value | Level 1 inputs | Level 2 inputs | Level 3 inputs | |||||||||||||||
Asset category: | ||||||||||||||||||
Intermediate term bond | $ | 8,629 | $ | — | $ | 8,629 | $ | — | ||||||||||
Long-term bond | 59,892 | — | 59,892 | — | ||||||||||||||
Total assets | $ | 68,521 | $ | — | $ | 68,521 | $ | — | ||||||||||
30-Sep-13 | ||||||||||||||||||
Fair value | Level 1 inputs | Level 2 inputs | Level 3 inputs | |||||||||||||||
Asset category: | ||||||||||||||||||
Large cap U.S. equity | $ | 16,378 | $ | — | $ | 16,378 | $ | — | ||||||||||
Small and mid cap U.S. equity | 4,443 | — | 4,443 | — | ||||||||||||||
International equity | 3,654 | — | 3,654 | — | ||||||||||||||
Total equity | 24,475 | — | 24,475 | — | ||||||||||||||
Total balanced asset allocation | 1,691 | — | 1,691 | — | ||||||||||||||
High yield bond | 1,018 | — | 1,018 | — | ||||||||||||||
Intermediate term bond | 8,233 | — | 8,233 | — | ||||||||||||||
Total fixed income | 9,251 | — | 9,251 | — | ||||||||||||||
Total assets | $ | 35,417 | $ | — | $ | 35,417 | $ | — | ||||||||||
Schedule of assumptions used for plan | ' | |||||||||||||||||
The principal actuarial assumptions used at September 30, 2014 and 2013 were as follows: | ||||||||||||||||||
September 30, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Projected benefit obligation: | ||||||||||||||||||
Discount rate | 4.5 | % | 5.2 | % | ||||||||||||||
Net periodic pension cost: | ||||||||||||||||||
Discount rate | 4.5 | % | 5.2 | % | ||||||||||||||
Long-term rate of return on plan assets | 4 | % | 7.75 | % | ||||||||||||||
Other Post retirement Benefit Plans [Member] | ' | |||||||||||||||||
Schedule of Employee Benefit Plans And Stock-Based Compensation Plans [Line Items] | ' | |||||||||||||||||
Summary of changes in the projected benefit obligation and fair value of plan assets | ' | |||||||||||||||||
Data relating to other post retirement benefit plans is the following: | ||||||||||||||||||
September 30, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Changes in accumulated post retirement benefit obligation: | ||||||||||||||||||
Beginning of year | $ | 3,302 | $ | 3,103 | ||||||||||||||
Obligations assumed from Legacy Sterling | 9,644 | — | ||||||||||||||||
Service cost | 51 | 48 | ||||||||||||||||
Interest cost | 683 | 134 | ||||||||||||||||
Actuarial loss | 79 | 177 | ||||||||||||||||
Curtailment (gain) | (2,485 | ) | — | |||||||||||||||
Benefits paid | (284 | ) | (160 | ) | ||||||||||||||
End of year | 10,990 | 3,302 | ||||||||||||||||
Changes in fair value of plan assets: | ||||||||||||||||||
Beginning of year | $ | — | $ | — | ||||||||||||||
Employer contributions | 284 | 160 | ||||||||||||||||
Plan participants’ contributions | — | — | ||||||||||||||||
Benefits paid | (284 | ) | (160 | ) | ||||||||||||||
End of year | — | — | ||||||||||||||||
Funded status | $ | (10,990 | ) | $ | (3,302 | ) | ||||||||||||
Components of the net periodic pension expense (benefit) | ' | |||||||||||||||||
Components of net periodic (benefit) expense for other post retirement benefit plans was the following: | ||||||||||||||||||
For the year ended September 30, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Service cost | $ | 51 | $ | 48 | $ | 46 | ||||||||||||
Interest cost | 683 | 134 | 125 | |||||||||||||||
Amortization of transition obligation | 34 | 24 | 24 | |||||||||||||||
Amortization of prior service cost | 270 | 47 | 47 | |||||||||||||||
Amortization of net actuarial (gain) loss | (45 | ) | 2 | (25 | ) | |||||||||||||
Curtailment (gain) | (2,485 | ) | — | — | ||||||||||||||
Total | $ | (1,492 | ) | $ | 255 | $ | 217 | |||||||||||
Schedule of expected benefit payments | ' | |||||||||||||||||
Estimated future benefit payments are the following for the years ending September 30: | ||||||||||||||||||
2015 | $ | 660 | ||||||||||||||||
2016 | 231 | |||||||||||||||||
2017 | 271 | |||||||||||||||||
2018 | 319 | |||||||||||||||||
2019 | 373 | |||||||||||||||||
2020 - 2024 | 2,370 | |||||||||||||||||
Schedule of assumptions used for plan | ' | |||||||||||||||||
Plan assumptions for the other post retirement medical, dental and vision plans include the following: | ||||||||||||||||||
For the year ended September 30, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Medical trend rate next year | 4.5 | % | 4.5 | % | ||||||||||||||
Ultimate trend rate | 4.5 | 4.5 | ||||||||||||||||
Discount rate | 3.50% to 4.27% | 4.2 | ||||||||||||||||
Discount rate used to value periodic cost | 3.50% to 4.20% | 4.1 | ||||||||||||||||
Other_Noninterest_Expense_Tabl
Other Non-interest Expense (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Other Income and Expenses [Abstract] | ' | ||||||||||||
Schedule of Other Non-interest Expense | ' | ||||||||||||
Other non-interest expense items are presented in the following table. Components exceeding 1% of the aggregate of total net interest income and total non-interest income are presented separately. | |||||||||||||
For the year ended September 30, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Other non-interest expense: | |||||||||||||
Advertising and promotion | $ | 2,358 | $ | 1,502 | $ | 1,849 | |||||||
Professional fees | 6,913 | 3,393 | 4,247 | ||||||||||
Data and check processing | 3,439 | 2,520 | 2,802 | ||||||||||
ATM/debit card expense | 1,249 | 1,722 | 1,711 | ||||||||||
Insurance & surety bond premium | 2,703 | 1,199 | 1,220 | ||||||||||
Charge for asset write-downs, severance and retention | 22,976 | — | — | ||||||||||
Charge for banking systems conversion | 3,249 | — | — | ||||||||||
Other | 15,030 | 7,040 | 6,562 | ||||||||||
Total other non-interest expense | $ | 57,917 | $ | 17,376 | $ | 18,391 | |||||||
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Computation of basic and diluted earnings per share | ' | |||||||||||
The following is a summary of the calculation of earnings per share (“EPS”): | ||||||||||||
For the year ended September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net income | $ | 27,678 | $ | 25,254 | $ | 19,888 | ||||||
Weighted average common shares outstanding for computation of basic EPS (1) | 80,268,970 | 43,734,425 | 38,227,653 | |||||||||
Common-equivalent shares due to the dilutive effect of stock options (2) | 265,073 | 48,628 | 20,393 | |||||||||
Weighted average common shares for computation of diluted EPS | 80,534,043 | 43,783,053 | 38,248,046 | |||||||||
Earnings per common share: | ||||||||||||
Basic | $ | 0.34 | $ | 0.58 | $ | 0.52 | ||||||
Diluted | 0.34 | 0.58 | 0.52 | |||||||||
-1 | Includes earned ESOP shares. | |||||||||||
-2 | Represents incremental shares computed using the treasury stock method. |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | |||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||||||||
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | ' | |||||||||||||||||||||
Fiscal year end actual and required capital ratios for the Company and the Bank were as follows: | ||||||||||||||||||||||
Regulatory requirements | ||||||||||||||||||||||
The Bank and the Company | Minimum capital | Classification as well- | ||||||||||||||||||||
adequacy | capitalized | |||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||
Tier 1 leverage capital (to average assets): | ||||||||||||||||||||||
Sterling National Bank | $ | 636,507 | 9.34 | % | $ | 272,542 | 4 | % | $ | 340,677 | 5 | % | ||||||||||
Sterling Bancorp | 553,117 | 8.12 | 272,385 | 4 | 340,481 | 5 | ||||||||||||||||
Tier 1 capital (to risk-weighted assets): | ||||||||||||||||||||||
Sterling National Bank | 636,507 | 11.94 | 213,176 | 4 | 319,763 | 6 | ||||||||||||||||
Sterling Bancorp | 553,117 | 10.33 | 214,102 | 4 | 321,153 | 6 | ||||||||||||||||
Total capital (to risk-weighted assets): | ||||||||||||||||||||||
Sterling National Bank | 677,514 | 12.71 | 426,351 | 8 | 532,939 | 10 | ||||||||||||||||
Sterling Bancorp | 594,124 | 11.1 | 428,204 | 8 | 535,254 | 10 | ||||||||||||||||
Sterling National Bank only | ||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||
Tier 1 leverage | $ | 363,274 | 9.33 | % | $ | 155,670 | 4 | % | $ | 194,587 | 5 | % | ||||||||||
Risk-based capital: | ||||||||||||||||||||||
Tier 1 | 363,274 | 13.18 | 110,235 | 4 | 165,352 | 6 | ||||||||||||||||
Total | 392,376 | 14.24 | 220,469 | 8 | 275,587 | 10 | ||||||||||||||||
Reconciliation of Stockholders' Equity to Bank Regulatory Capital | ' | |||||||||||||||||||||
A reconciliation of the Company’s stockholders’ equity to its regulatory capital at September 30, 2014 and the Bank’s total stockholder’s equity to the Bank’s regulatory capital at September 30, 2014 and 2013 is as follows: | ||||||||||||||||||||||
The Company | The Bank | |||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||
2014 | 2014 | 2013 | ||||||||||||||||||||
Total GAAP stockholders’ equity | $ | 961,138 | $ | 1,011,973 | $ | 516,281 | ||||||||||||||||
Disallowed goodwill and other intangible assets | (419,327 | ) | (386,766 | ) | (168,122 | ) | ||||||||||||||||
Net unrealized loss on available for sale securities | 7,815 | 7,809 | 11,455 | |||||||||||||||||||
Disallowed servicing asset | (153 | ) | (153 | ) | (198 | ) | ||||||||||||||||
Net actuarial loss on defined benefit pension plans | 3,644 | 3,644 | 3,858 | |||||||||||||||||||
Tier 1 risk-based capital | 553,117 | 636,507 | 363,274 | |||||||||||||||||||
Allowance for loan losses and off-balance sheet commitments | 41,007 | 41,007 | 29,102 | |||||||||||||||||||
Total risk-based capital | $ | 594,124 | $ | 677,514 | $ | 392,376 | ||||||||||||||||
OffBalanceSheet_Financial_Inst1
Off-Balance-Sheet Financial Instruments (Tables) | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Off-Balance-Sheet Financial Instruments [Abstract] | ' | |||||||
Schedule of off-balance-sheet financial instruments | ' | |||||||
The contractual or notional amounts of these instruments, which reflect the extent of the Company’s involvement in particular classes of off-balance sheet financial instruments, are summarized as follows: | ||||||||
September 30, | ||||||||
2014 | 2013 | |||||||
Loan origination commitments | $ | 213,793 | $ | 171,032 | ||||
Unused lines of credit | 306,482 | 207,201 | ||||||
Letters of credit | 97,468 | 35,052 | ||||||
Commitment_and_Contingencies_T
Commitment and Contingencies (Tables) | 12 Months Ended | |||
Sep. 30, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Schedule of Future Minimum Rental Payments for Operating Leases | ' | |||
Future minimum rental payments due under non-cancellable operating leases with initial or remaining terms of more than one year at September 30, 2014 were as follows: | ||||
2014 | $ | 8,984 | ||
2015 | 8,517 | |||
2016 | 7,690 | |||
2017 | 7,702 | |||
2018 | 6,386 | |||
2019 and thereafter | 27,012 | |||
$ | 66,291 | |||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Estimated fair value on a recurring basis | ' | |||||||||||||||
A summary of assets and liabilities at September 30, 2014 measured at estimated fair value on a recurring basis is as follows: | ||||||||||||||||
30-Sep-14 | ||||||||||||||||
Fair value | Level 1 inputs | Level 2 inputs | Level 3 inputs | |||||||||||||
Asset: | ||||||||||||||||
Investment securities available for sale: | ||||||||||||||||
Residential MBS: | ||||||||||||||||
Agency-backed | $ | 477,705 | $ | — | $ | 477,705 | $ | — | ||||||||
CMO/Other MBS | 111,276 | — | 111,276 | — | ||||||||||||
Privately issued CMOs | 2,869 | — | — | 2,869 | ||||||||||||
Total residential MBS | 591,850 | — | 588,981 | 2,869 | ||||||||||||
Federal agencies | 152,814 | — | 152,814 | — | ||||||||||||
Corporate bonds | 192,839 | — | 192,839 | — | ||||||||||||
State and municipal | 134,898 | — | 134,898 | — | ||||||||||||
Trust preferred | 38,412 | — | 38,412 | — | ||||||||||||
Total other securities | 518,963 | — | 518,963 | — | ||||||||||||
Total investment securities available for sale | 1,110,813 | — | 1,107,944 | 2,869 | ||||||||||||
Interest rate caps and swaps | 1,096 | — | 1,096 | — | ||||||||||||
Total assets | $ | 1,111,909 | $ | — | $ | 1,109,040 | $ | 2,869 | ||||||||
Swaps | $ | 1,096 | $ | — | $ | 1,096 | $ | — | ||||||||
Total liabilities | $ | 1,096 | $ | — | $ | 1,096 | $ | — | ||||||||
A summary of assets and liabilities at September 30, 2013 measured at estimated fair value on a recurring basis is the follows: | ||||||||||||||||
September 30, 2013 | ||||||||||||||||
Fair value | Level 1 inputs | Level 2 inputs | Level 3 inputs | |||||||||||||
Available for sale securities: | ||||||||||||||||
Residential MBS: | ||||||||||||||||
Agency-backed | $ | 282,529 | $ | — | $ | 282,529 | $ | — | ||||||||
CMO/Other MBS | 163,041 | — | 163,041 | — | ||||||||||||
Privately issued CMOs | 3,613 | — | — | 3,613 | ||||||||||||
Total residential MBS | 449,183 | — | 445,570 | 3,613 | ||||||||||||
Investment securities | ||||||||||||||||
Federal agencies | 261,547 | — | 261,547 | — | ||||||||||||
Corporate | 114,933 | — | 114,933 | — | ||||||||||||
State and municipal | 128,730 | — | 128,730 | — | ||||||||||||
Total investment securities available for sale | 505,210 | — | 505,210 | — | ||||||||||||
Total available for sale securities | 954,393 | — | 950,780 | 3,613 | ||||||||||||
Interest rate caps and swaps | 997 | — | 997 | — | ||||||||||||
Total assets | $ | 955,390 | $ | — | $ | 951,777 | $ | 3,613 | ||||||||
Swaps | $ | 997 | $ | — | $ | 997 | $ | — | ||||||||
Total liabilities | $ | 997 | $ | — | $ | 997 | $ | — | ||||||||
Impaired loans measured at estimated fair value on nonrecurring basis | ' | |||||||||||||||
A summary of impaired loans at September 30, 2014 measured at estimated fair value on a non-recurring basis is the following: | ||||||||||||||||
September 30, 2014 | ||||||||||||||||
Fair value | Level 1 inputs | Level 2 inputs | Level 3 inputs | |||||||||||||
Commercial real estate | 1,463 | — | — | 1,463 | ||||||||||||
Acquisition, development and construction | 2,173 | — | — | 2,173 | ||||||||||||
Total impaired loans measured at fair value | $ | 3,636 | $ | — | $ | — | $ | 3,636 | ||||||||
A summary of impaired loans at September 30, 2013 measured at estimated fair value on a non-recurring basis is the following: | ||||||||||||||||
September 30, 2013 | ||||||||||||||||
Fair value | Level 1 inputs | Level 2 inputs | Level 3 inputs | |||||||||||||
Commercial real estate | 3,672 | — | — | 3,672 | ||||||||||||
Commercial & industrial | 500 | — | — | 500 | ||||||||||||
Acquisition, development and construction | 1,839 | — | — | 1,839 | ||||||||||||
Consumer | 2 | — | — | 2 | ||||||||||||
Total impaired loans measured at fair value | $ | 6,013 | $ | — | $ | — | $ | 6,013 | ||||||||
Quantitative information of Level 3 assets | ' | |||||||||||||||
The following table presents quantitative information about significant unobservable inputs used in the fair value measurements for Level 3 assets at September 30, 2014: | ||||||||||||||||
Non-recurring fair value measurements | Fair value | Valuation technique | Unobservable input / assumptions | Range (1) (weighted average) | ||||||||||||
Impaired loans: | ||||||||||||||||
Commercial real estate | $ | 1,463 | Appraisal | Adjustments for comparable properties | 15.0% - 36.0% (22.0%) | |||||||||||
Acquisition, development & construction | 2,173 | Appraisal | Adjustments for comparable properties | 10.0% - 30.0% (13.5%) | ||||||||||||
Assets taken in foreclosure: | ||||||||||||||||
Residential mortgage | 1,301 | Appraisal | Adjustments by management to reflect current conditions/selling costs | 16.0% - 59.0% (21.6%) | ||||||||||||
Commercial real estate(2) | 1,910 | Appraisal | Adjustments by management to reflect current conditions/selling costs | 20.0% - 37.0% (24.8%) | ||||||||||||
Acquisition, development & construction | 1,973 | Appraisal | Adjustments by management to reflect current conditions/selling costs | 25.0% - 70.0% (30.2%) | ||||||||||||
Mortgage servicing rights | 1,526 | Third-party | Discount rates | 9.3% - 12.8% | ||||||||||||
Third-party | Prepayment speeds | 100 - 968 (224) | ||||||||||||||
Carrying amounts and estimated fair value of financial assets and liabilities | ' | |||||||||||||||
The following is a summary of the carrying amounts and estimated fair value of financial assets and liabilities (none of which were held for trading purposes) as of September 30, 2014: | ||||||||||||||||
September 30, 2014 | ||||||||||||||||
Carrying | Level 1 inputs | Level 2 inputs | Level 3 inputs | |||||||||||||
amount | ||||||||||||||||
Financial assets: | ||||||||||||||||
Cash and due from banks | $ | 177,619 | $ | 177,619 | $ | — | $ | — | ||||||||
Securities available for sale | 1,110,813 | — | 1,110,813 | — | ||||||||||||
Securities held to maturity | 579,075 | — | 587,838 | — | ||||||||||||
Loans, net | 4,719,826 | — | — | 4,758,366 | ||||||||||||
Loans held for sale | 17,846 | — | 17,846 | — | ||||||||||||
Accrued interest receivable on securities | 8,876 | — | 8,876 | — | ||||||||||||
Accrued interest receivable on loans | 10,791 | — | — | 10,791 | ||||||||||||
FHLB stock and Federal Reserve Bank stock | 66,085 | — | — | — | ||||||||||||
Interest rate caps and swaps | 1,096 | — | 1,096 | — | ||||||||||||
Financial liabilities: | ||||||||||||||||
Non-maturity deposits | (4,860,783 | ) | (4,860,783 | ) | — | — | ||||||||||
Certificates of deposit | (437,871 | ) | — | (438,088 | ) | — | ||||||||||
FHLB borrowings | (795,028 | ) | — | (813,490 | ) | — | ||||||||||
Other borrowings | (45,639 | ) | — | (45,640 | ) | — | ||||||||||
Senior notes | (98,402 | ) | — | (100,482 | ) | — | ||||||||||
Mortgage escrow funds | (4,494 | ) | — | (4,494 | ) | — | ||||||||||
Accrued interest payable on deposits | (320 | ) | — | (320 | ) | — | ||||||||||
Accrued interest payable on borrowings | (2,942 | ) | — | (2,942 | ) | — | ||||||||||
Interest rate caps and swaps | (1,096 | ) | — | (1,096 | ) | — | ||||||||||
The following is a summary of the carrying amounts and estimated fair value of financial assets and liabilities (none of which were held for trading purposes) as of September 30, 2013: | ||||||||||||||||
September 30, 2013 | ||||||||||||||||
Carrying | Level 1 inputs | Level 2 inputs | Level 3 inputs | |||||||||||||
amount | ||||||||||||||||
Financial assets: | ||||||||||||||||
Cash and due from banks | $ | 113,090 | $ | 113,090 | $ | — | $ | — | ||||||||
Securities available for sale | 954,393 | — | 950,780 | 3,613 | ||||||||||||
Securities held to maturity | 253,999 | — | 250,896 | — | ||||||||||||
Loans, net | 2,384,021 | — | — | 2,422,824 | ||||||||||||
Loans held for sale | 1,011 | — | 1,011 | — | ||||||||||||
Accrued interest receivable on securities | 4,892 | — | 4,892 | — | ||||||||||||
Accrued interest receivable on loans | 6,805 | — | — | 6,805 | ||||||||||||
FHLB stock | 24,312 | — | — | — | ||||||||||||
Interest rate caps and swaps | 997 | — | 997 | — | ||||||||||||
Financial liabilities: | ||||||||||||||||
Non-maturity deposits | (2,694,166 | ) | (2,694,166 | ) | — | — | ||||||||||
Certificates of deposit | (268,128 | ) | — | (268,088 | ) | — | ||||||||||
FHLB and other borrowings | (345,176 | ) | — | (488,369 | ) | — | ||||||||||
Mortgage escrow funds | (12,646 | ) | — | (12,644 | ) | — | ||||||||||
Accrued interest payable on deposits | (1,480 | ) | — | (1,480 | ) | — | ||||||||||
Accrued interest payable on borrowings | (1,525 | ) | — | (1,525 | ) | — | ||||||||||
Interest rate caps and swaps | (997 | ) | — | (997 | ) | — | ||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive (Loss) Income (Tables) | 12 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||
Components of accumulated other comprehensive income (loss) (“AOCI”) were as follows at September 30: | ||||||||||||||||
September 30, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Net unrealized holding loss on available for sale securities | $ | (4,645 | ) | $ | (19,316 | ) | ||||||||||
Related income tax benefit | 1,974 | 7,844 | ||||||||||||||
Available for sale securities AOCI, net of tax | (2,671 | ) | (11,472 | ) | ||||||||||||
Net unrealized holding loss on securities transferred to held to maturity | (8,947 | ) | — | |||||||||||||
Related income tax benefit | 3,803 | — | ||||||||||||||
Securities transferred to held to maturity AOCI, net of tax | (5,144 | ) | — | |||||||||||||
Net unrealized holding loss on retirement plans | (6,336 | ) | (6,496 | ) | ||||||||||||
Related income tax benefit | 2,692 | 2,638 | ||||||||||||||
Retirement plan AOCI, net of tax | (3,644 | ) | (3,858 | ) | ||||||||||||
Accumulated other comprehensive loss | $ | (11,459 | ) | $ | (15,330 | ) | ||||||||||
The following table presents the changes in each component of accumulated other comprehensive income for the fiscal years ended September 30, 2014, 2013 and 2012: | ||||||||||||||||
Net unrealized holding gain (loss) on AFS securities | Net unrealized holding (loss) on securities transferred to held to maturity | Net unrealized holding gain (loss) on retirement plans | Total | |||||||||||||
Fiscal year ended September 30, 2014 | ||||||||||||||||
Balance beginning of the year | $ | (11,472 | ) | $ | — | $ | (3,858 | ) | $ | (15,330 | ) | |||||
Other comprehensive gain (loss) before reclassification | 9,170 | (5,144 | ) | — | 4,026 | |||||||||||
Amounts reclassified from AOCI | (369 | ) | — | 214 | (155 | ) | ||||||||||
Total other comprehensive income (loss) | 8,801 | (5,144 | ) | 214 | 3,871 | |||||||||||
Balance at end of period | $ | (2,671 | ) | $ | (5,144 | ) | $ | (3,644 | ) | $ | (11,459 | ) | ||||
Fiscal year ended September 30, 2013 | ||||||||||||||||
Balance beginning of the year | $ | 15,066 | $ | — | $ | (8,167 | ) | $ | 6,899 | |||||||
Other comprehensive (loss) gain before reclassification | (22,167 | ) | — | 3,041 | (19,126 | ) | ||||||||||
Amounts reclassified from AOCI | (4,371 | ) | — | 1,268 | (3,103 | ) | ||||||||||
Total other comprehensive (loss) income | (26,538 | ) | — | 4,309 | (22,229 | ) | ||||||||||
Balance at end of period | $ | (11,472 | ) | $ | — | $ | (3,858 | ) | $ | (15,330 | ) | |||||
Fiscal year ended September 30, 2012 | ||||||||||||||||
Balance beginning of the year | $ | 13,604 | $ | — | $ | (8,468 | ) | $ | 5,136 | |||||||
Other comprehensive gain before reclassification | 7,640 | — | — | 7,640 | ||||||||||||
Amounts reclassified from AOCI | (6,178 | ) | — | 301 | (5,877 | ) | ||||||||||
Total other comprehensive income | 1,462 | $ | — | 301 | 1,763 | |||||||||||
Balance at end of period | $ | 15,066 | $ | — | $ | (8,167 | ) | $ | 6,899 | |||||||
Condensed_Parent_Company_Finan1
Condensed Parent Company Financial Statements (Tables) | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | |||||||||||
Condensed Statements of Financial Condition | ' | |||||||||||
Set forth below are the condensed balance sheets of Sterling and the related condensed statements of income and cash flows: | ||||||||||||
September 30, | ||||||||||||
2014 | 2013 | |||||||||||
Assets: | ||||||||||||
Cash | $ | 23,369 | $ | 56,230 | ||||||||
Loan receivable from ESOP | — | 6,437 | ||||||||||
Investment in Sterling National Bank | 1,011,973 | 517,907 | ||||||||||
Investment in non-bank subsidiaries | 3,587 | 3,271 | ||||||||||
Goodwill | 18,970 | — | ||||||||||
Trade name | 20,500 | — | ||||||||||
Other intangible assets, net | 917 | — | ||||||||||
Other assets | 528 | 1,184 | ||||||||||
Total assets | $ | 1,079,844 | $ | 585,029 | ||||||||
Liabilities: | ||||||||||||
Senior Notes | $ | 98,402 | $ | 98,033 | ||||||||
Other liabilities | 20,304 | 4,130 | ||||||||||
Total liabilities | 118,706 | 102,163 | ||||||||||
Stockholders’ equity | 961,138 | 482,866 | ||||||||||
Total liabilities & stockholders’ equity | $ | 1,079,844 | $ | 585,029 | ||||||||
Condensed Income Statement | ' | |||||||||||
The table below presents the condensed statement of income: | ||||||||||||
For the year ended September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Interest income | $ | 139 | $ | 262 | $ | 282 | ||||||
Dividend income on equity securities | — | 22 | 30 | |||||||||
Dividends from Sterling National Bank | 22,500 | — | 6,000 | |||||||||
Dividends from non-bank subsidiaries | 750 | 1,600 | 500 | |||||||||
Other | 18 | — | 10 | |||||||||
Interest expense | (6,265 | ) | (1,431 | ) | — | |||||||
Non-interest expense | (5,841 | ) | (2,700 | ) | (1,838 | ) | ||||||
Income tax benefit | 3,431 | 898 | 87 | |||||||||
Income (loss) before equity in undistributed earnings of subsidiaries | 14,732 | (1,349 | ) | 5,071 | ||||||||
Equity in undistributed (excess distributed) earnings of: | ||||||||||||
Sterling National Bank | 12,590 | 27,174 | 13,739 | |||||||||
Non-bank subsidiaries | 355 | (571 | ) | 1,078 | ||||||||
Net income | $ | 27,677 | $ | 25,254 | $ | 19,888 | ||||||
Condensed Statements of Cash Flows | ' | |||||||||||
The table below presents the condensed statement of cash flows: | ||||||||||||
For the year ended September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 27,677 | $ | 25,254 | $ | 19,888 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Equity in (undistributed) excess distributed earnings of: | ||||||||||||
Sterling National Bank | (12,590 | ) | (27,174 | ) | (13,739 | ) | ||||||
Non-bank subsidiaries | (355 | ) | 571 | (1,078 | ) | |||||||
(Gain) on redemption of Subordinated Debentures | (712 | ) | — | — | ||||||||
Other adjustments, net | 22,066 | 5,259 | 380 | |||||||||
Net cash provided by operating activities | 36,086 | 3,910 | 5,451 | |||||||||
Cash flows from investing activities: | ||||||||||||
Purchase of securities | — | — | (105 | ) | ||||||||
Sales of securities | 1,112 | 818 | 103 | |||||||||
Investment in subsidiaries | (15,000 | ) | (45,000 | ) | (44,203 | ) | ||||||
ESOP loan principal repayments | 6,437 | 459 | 441 | |||||||||
Net cash (used for) investing activities | (7,451 | ) | (43,723 | ) | (43,764 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Net change in other short-term borrowings | (20,659 | ) | — | — | ||||||||
Redemption of Subordinated Debentures | (26,140 | ) | — | — | ||||||||
Senior Notes offering | — | 97,946 | — | |||||||||
Equity capital raise | — | — | 46,000 | |||||||||
Cash dividends paid | (17,677 | ) | (10,642 | ) | (9,100 | ) | ||||||
Stock option transactions including RRP | 2,980 | 1,758 | 910 | |||||||||
Other equity transactions | — | 265 | 527 | |||||||||
Net cash (used for) provided by financing activities | (61,496 | ) | 89,327 | 38,337 | ||||||||
Net (decrease) increase in cash | (32,861 | ) | 49,514 | 24 | ||||||||
Cash at beginning of year | 56,230 | 6,716 | 6,692 | |||||||||
Cash at end of year | $ | 23,369 | $ | 56,230 | $ | 6,716 | ||||||
Quarterly_Results_Of_Operation1
Quarterly Results Of Operations (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Quarterly Financial Information | ' | |||||||||||||||
The following is a condensed summary of quarterly results of operations for the fiscal years ended September 30, 2014 and 2013: | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
quarter | quarter | quarter | quarter | |||||||||||||
Year ended September 30, 2014 | ||||||||||||||||
Interest and dividend income | $ | 52,711 | $ | 61,325 | $ | 65,761 | $ | 67,109 | ||||||||
Interest expense | 6,835 | 7,297 | 7,310 | 7,476 | ||||||||||||
Net interest income | 45,876 | 54,028 | 58,451 | 59,633 | ||||||||||||
Provision for loan losses | 3,000 | 4,800 | 5,950 | 5,350 | ||||||||||||
Non-interest income | 9,148 | 12,415 | 13,471 | 12,286 | ||||||||||||
Non-interest expense | 72,974 | 46,723 | 44,904 | 43,780 | ||||||||||||
(Loss) income before income tax | (20,950 | ) | 14,920 | 21,068 | 22,789 | |||||||||||
Income tax (benefit) expense | (6,948 | ) | 4,588 | 6,057 | 6,452 | |||||||||||
Net (loss) income | $ | (14,002 | ) | $ | 10,332 | $ | 15,011 | $ | 16,337 | |||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | (0.20 | ) | $ | 0.12 | $ | 0.18 | $ | 0.2 | |||||||
Diluted | (0.20 | ) | 0.12 | 0.18 | 0.19 | |||||||||||
Year ended September 30, 2013 | ||||||||||||||||
Interest and dividend income | $ | 33,145 | $ | 32,420 | $ | 32,593 | $ | 33,903 | ||||||||
Interest expense | 5,222 | 4,601 | 4,276 | 5,795 | ||||||||||||
Net interest income | 27,923 | 27,819 | 28,317 | 28,108 | ||||||||||||
Provision for loan losses | 2,950 | 2,600 | 3,900 | 2,700 | ||||||||||||
Non-interest income | 7,659 | 6,852 | 6,581 | 6,600 | ||||||||||||
Non-interest expense | 22,546 | 23,339 | 21,789 | 23,367 | ||||||||||||
Income before income tax | 10,086 | 8,732 | 9,209 | 8,641 | ||||||||||||
Income tax expense | 3,066 | 2,203 | 2,833 | 3,312 | ||||||||||||
Net income | $ | 7,020 | $ | 6,529 | $ | 6,376 | $ | 5,329 | ||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 0.16 | $ | 0.15 | $ | 0.15 | $ | 0.12 | ||||||||
Diluted | 0.16 | 0.15 | 0.15 | 0.12 | ||||||||||||
Basis_of_Financial_Statement_P2
Basis of Financial Statement Presentation and Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
derivative_type | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax benefit | ($6,452,000) | ($6,057,000) | ($4,588,000) | $6,948,000 | ($3,312,000) | ($2,833,000) | ($2,203,000) | ($3,066,000) | ($10,152,000) | ($11,414,000) | ($6,159,000) |
Required cash on hand or on deposit with the Federal Reserve Bank | 28,700,000 | ' | ' | ' | 14,600,000 | ' | ' | ' | 28,700,000 | 14,600,000 | ' |
Servicing fees | ' | ' | ' | ' | ' | ' | ' | ' | 911,000 | 778,000 | 695,000 |
Minimum duration of performance required by loan restructures | ' | ' | ' | ' | ' | ' | ' | ' | '6 months | ' | ' |
Number of types of derivatives | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' |
Accounting Standards Update 2014-01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax benefit | ' | ' | ' | ' | ' | ' | ' | ' | 508,000 | ' | ' |
Equity in (undistributed) excess distributed earnings | ' | ' | ' | ' | ' | ' | ' | ' | $520,000 | ' | ' |
Basis_of_Financial_Statement_P3
Basis of Financial Statement Presentation and Summary of Significant Accounting Policies Allowance for Loan Losses (Details) (USD $) | 12 Months Ended |
Sep. 30, 2014 | |
loan_segment | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' |
Number of Loan Segments | 2 |
Minimum duration past due for impairment review | '90 days |
Minimum investment in loan for significance | $500,000 |
Percentage discount of appraised value for costs to hold and liquidate | 10.00% |
Percentage of loan carrying value used for impairment review | 10.00% |
Minimum [Member] | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' |
Duration until re-appraisal | '6 months |
Maximum [Member] | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' |
Duration until re-appraisal | '9 months |
Commercial real estate | Minimum [Member] | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' |
Percentage of costs to hold and liquidate | 12.00% |
Commercial real estate | Maximum [Member] | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' |
Percentage of costs to hold and liquidate | 22.00% |
Commercial business loans [Member] | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' |
Allowance for Credit Losses, Duration Past Due Until Chargeoff | '90 days |
Homeowner loans [Member] | Minimum [Member] | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' |
Percentage of costs to hold and liquidate | 7.00% |
Homeowner loans [Member] | Maximum [Member] | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' |
Percentage of costs to hold and liquidate | 13.00% |
Consumer loans, including home equity [Member] | Minimum [Member] | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' |
Allowance for Credit Losses, Duration Past Due Until Chargeoff | '90 days |
Consumer loans, including home equity [Member] | Maximum [Member] | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' |
Allowance for Credit Losses, Duration Past Due Until Chargeoff | '120 days |
Basis_of_Financial_Statement_P4
Basis of Financial Statement Presentation and Summary of Significant Accounting Policies Premises and Equipment (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Premises and equipment, useful life | '3 years |
Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Premises and equipment, useful life | '40 years |
Other Non-interest Expense [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Premises and equipment impairment charges | 9.3 |
Basis_of_Financial_Statement_P5
Basis of Financial Statement Presentation and Summary of Significant Accounting Policies Other Intangible Assets (Details) | 12 Months Ended |
Sep. 30, 2014 | |
Naming Rights [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Estimated useful life | '10 years |
Minimum [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Estimated useful life | '1 year |
Minimum [Member] | Core Deposits [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Acquired intangible assets, weighted average useful life | '8 years |
Maximum [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Estimated useful life | '10 years |
Maximum [Member] | Core Deposits [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Acquired intangible assets, weighted average useful life | '10 years |
Acquisitions_Details
Acquisitions (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | |||
In Thousands, unless otherwise specified | Purchased credit impaired loans | Book Value [Member] | Fair Value Adjustment [Member] | Core Deposits [Member] | Core Deposits [Member] | Core Deposits [Member] | Trade Names [Member] | Trade Names [Member] | Trade Names [Member] | ||||||
Purchased credit impaired loans | Purchased credit impaired loans | Purchased credit impaired loans | Book Value [Member] | Fair Value Adjustment [Member] | Purchased credit impaired loans | Book Value [Member] | Fair Value Adjustment [Member] | ||||||||
Purchased credit impaired loans | Purchased credit impaired loans | Purchased credit impaired loans | Purchased credit impaired loans | ||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Cash and cash equivalents | ' | ' | ' | $277,798 | $277,798 | $0 | ' | ' | ' | ' | ' | ' | |||
Investment securities | ' | ' | ' | 607,911 | 613,154 | -5,243 | [1] | ' | ' | ' | ' | ' | ' | ||
Loans held for sale | ' | ' | ' | 30,341 | 30,341 | 0 | ' | ' | ' | ' | ' | ' | |||
Loans | ' | ' | ' | 1,698,108 | 1,704,801 | -6,693 | [2] | ' | ' | ' | ' | ' | ' | ||
Federal Reserve Bank stock | ' | ' | ' | 7,680 | 7,680 | 0 | ' | ' | ' | ' | ' | ' | |||
Bank owned life insurance | ' | ' | ' | 55,374 | 55,374 | 0 | ' | ' | ' | ' | ' | ' | |||
Premises and equipment | ' | ' | ' | 23,594 | 21,293 | 2,301 | [3] | ' | ' | ' | ' | ' | ' | ||
Accrued interest receivable | ' | ' | ' | 6,590 | 6,590 | 0 | ' | ' | ' | ' | ' | ' | |||
Core deposit intangible | ' | ' | ' | ' | ' | ' | 20,089 | 0 | 20,089 | [4] | 20,500 | 0 | 20,500 | [5] | |
Other real estate owned | ' | ' | ' | 5,815 | 1,720 | 4,095 | [6] | ' | ' | ' | ' | ' | ' | ||
Other assets | ' | ' | ' | 20,933 | 40,877 | -19,944 | [7] | ' | ' | ' | ' | ' | ' | ||
Deposits | ' | ' | ' | -2,297,190 | -2,296,713 | -477 | [8] | ' | ' | ' | ' | ' | ' | ||
FHLB borrowings | ' | ' | ' | -100,619 | -100,346 | -273 | [9] | ' | ' | ' | ' | ' | ' | ||
Other borrowings | ' | ' | ' | -62,465 | -62,465 | 0 | ' | ' | ' | ' | ' | ' | |||
Subordinated Debentures | ' | ' | ' | -26,527 | -25,774 | -753 | [10] | ' | ' | ' | ' | ' | ' | ||
Other liabilities | ' | ' | ' | -55,960 | -60,462 | 4,502 | [11] | ' | ' | ' | ' | ' | ' | ||
Total identifiable net assets | 130 | ' | ' | 231,972 | 213,868 | 18,104 | ' | ' | ' | ' | ' | ' | |||
Goodwill | $388,926 | $163,117 | $163,247 | $225,809 | ' | ' | ' | ' | ' | ' | ' | ' | |||
[1] | Represents the fair value adjustment on investment securities held to maturity. | ||||||||||||||
[2] | Represents the elimination of Legacy Sterling’s allowance for loan losses and an adjustment of the amortized cost of loans to estimated fair value, which includes an interest rate mark and credit mark. Gross loans acquired were $1,723,447; of the acquired loans, $1,699,271 were not considered purchased credit impaired and we recorded a fair value adjustment of $14,440. | ||||||||||||||
[3] | Represents an adjustment to reflect the fair value of leasehold improvements. | ||||||||||||||
[4] | Represents intangible assets recorded to reflect the fair value of core deposits and below market rent on leased premises. The core deposit asset was recorded as an identifiable intangible asset and will be amortized on an accelerated basis over the estimated average life of the deposit base. The below market rent intangible asset will be amortized on a straight-line basis over the remaining term of the leases. | ||||||||||||||
[5] | Represents the estimated fair value of Legacy Sterling’s trade name. This intangible asset will not be amortized and will be reviewed at least annually for impairment. | ||||||||||||||
[6] | Represents an adjustment to an acquired property which Legacy Sterling utilized as a financial center and recorded as premises and equipment. The Company included this asset in OREO as it was held for sale. This asset was sold during the fiscal year ended September 30, 2014. | ||||||||||||||
[7] | Consists primarily of adjustments in net deferred tax assets resulting from the fair value adjustments related to the acquired assets, liabilities assumed and identifiable intangibles recorded. | ||||||||||||||
[8] | Represents the fair value adjustment on deposits as the weighted average interest rate of deposits assumed exceeded the cost of similar funding available in the market at the time of the Merger. | ||||||||||||||
[9] | Represents the fair value adjustment on FHLB borrowings as the weighted average interest rate of FHLB borrowings assumed exceeded the cost of similar funding available in the market at the time of the Merger. | ||||||||||||||
[10] | Represents the fair value adjustment on subordinated debentures as the weighted average interest rate of the debentures assumed exceeded the cost of similar debt funding available in the market at the time of the Merger. | ||||||||||||||
[11] | Represents the fair value of other liabilities assumed at the Merger date |
Acquisitions_Details_1
Acquisitions (Details 1) (Purchased credit impaired loans, USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Oct. 31, 2013 | |
Purchased credit impaired loans | ' | ' | ' |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ' | ' | ' |
Contractual principal balance at acquisition | ' | ' | $24,176,000 |
Principal not expected to be collected (non-accretable discount) | ' | ' | -10,927,000 |
Expected cash flows at acquisition | ' | ' | 13,249,000 |
Interest component of expected cash flows (accretable discount) | ' | ' | 0 |
Fair value of acquired loans | ' | ' | 13,249,000 |
Net interest income | 198,776,000 | 180,030,000 | ' |
Non-interest income | 54,396,000 | 65,749,000 | ' |
Non-interest expense | 187,306,000 | 189,136,000 | ' |
Net income | $44,460,000 | $39,190,000 | ' |
Basic earnings per share (in dollars per share) | $0.53 | $0.47 | ' |
Diluted earnings per share (in dollars per share) | $0.53 | $0.47 | ' |
Acquisitions_Details_Textual
Acquisitions (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Oct. 31, 2013 | Oct. 31, 2013 | Sep. 30, 2014 | Oct. 31, 2013 | Oct. 31, 2013 | Aug. 10, 2012 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
Sterling Bancorp (Legacy) | Sterling Bancorp (Legacy) | Sterling Bancorp (Legacy) | Sterling Bancorp (Legacy) | Gotham Bank of New York [Member] | Book Value [Member] | Book Value [Member] | Book Value [Member] | Assets Write-down, Retention, and Severance Costs [Member] | Assets Write-down, Retention, and Severance Costs [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | ||||||
Core Deposits [Member] | Core Deposits [Member] | Trade Names [Member] | Sterling Bancorp (Legacy) | Sterling Bancorp (Legacy) | Sterling Bancorp (Legacy) | Sterling Bancorp (Legacy) | Core Deposits [Member] | Equipment [Member] | Core Deposits [Member] | Equipment [Member] | |||||||||||
Core Deposits [Member] | Trade Names [Member] | Sterling Bancorp (Legacy) | Sterling Bancorp (Legacy) | ||||||||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares each shareholder received from merger | ' | ' | ' | ' | ' | 1.2625 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, par value (in dollars per share) | ' | $0.01 | $0.01 | ' | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | ' | $388,926,000 | $163,117,000 | $163,247,000 | ' | $225,809,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares issued in merger | ' | ' | ' | ' | ' | 39,057,968 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share price of stock issued in merger (in dollars per share) | ' | ' | ' | ' | ' | $11.72 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consideration paid through Sterling Bancorp common stock issued to Legacy Sterling shareholders | ' | ' | ' | ' | ' | 457,781,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash paid for fractional shares | ' | ' | ' | ' | ' | 23,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consideration transferred for outstanding vested stock options | ' | ' | ' | ' | ' | 6,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangibles | ' | ' | ' | ' | ' | ' | ' | 20,089,000 | 20,500,000 | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Book value of assets | ' | ' | ' | ' | ' | 2,759,628,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal Home Loan Bank (FHLB) stock, at cost | ' | ' | ' | ' | ' | 1,735,142,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deposits | ' | ' | ' | ' | ' | 2,297,190,000 | ' | ' | ' | ' | 2,296,713,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquired intangible assets, weighted average useful life | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | '8 years | ' | ' | '10 years | ' |
Premises and equipment, useful life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | '1 year | '40 years | ' | '5 years |
Merger related expense | 9,100,000 | 9,455,000 | 2,772,000 | 5,925,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of voting interests acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of tangible net worth used for calculating cash payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,510,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recognized charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,200,000 | 26,591,000 | ' | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Loans, Gross | ' | ' | ' | ' | ' | 1,723,447 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Loans, Not Purchased Credit Impaired | ' | ' | ' | ' | ' | 1,699,271 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets, Fair Value Adjustment | ' | ' | ' | ' | ' | $14,440 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Securities_Details
Securities (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | $1,115,458 | $973,709 |
Gross unrealized gains | 6,856 | 5,805 |
Gross unrealized losses | -11,501 | -25,121 |
Fair value | 1,110,813 | 954,393 |
Residential Mortgage Backed Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 592,398 | 454,173 |
Gross unrealized gains | 2,499 | 2,205 |
Gross unrealized losses | -3,047 | -7,195 |
Fair value | 591,850 | 449,183 |
Investment securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 523,060 | 519,536 |
Gross unrealized gains | 4,357 | 3,600 |
Gross unrealized losses | -8,454 | -17,926 |
Fair value | 518,963 | 505,210 |
Agency-backed [Member] | Residential Mortgage Backed Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 477,003 | 284,837 |
Gross unrealized gains | 2,257 | 1,849 |
Gross unrealized losses | -1,555 | -4,157 |
Fair value | 477,705 | 282,529 |
CMO/Other MBS [Member] | Residential Mortgage Backed Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 115,395 | 169,336 |
Gross unrealized gains | 242 | 356 |
Gross unrealized losses | -1,492 | -3,038 |
Fair value | 114,145 | 166,654 |
Federal agencies [Member] | Investment securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 158,114 | 273,637 |
Gross unrealized gains | 3 | 0 |
Gross unrealized losses | -5,303 | -12,090 |
Fair value | 152,814 | 261,547 |
Corporate bonds [Member] | Investment securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 195,547 | 118,575 |
Gross unrealized gains | 149 | 153 |
Gross unrealized losses | -2,857 | -3,795 |
Fair value | 192,839 | 114,933 |
State and municipal [Member] | Investment securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 131,715 | 127,324 |
Gross unrealized gains | 3,439 | 3,447 |
Gross unrealized losses | -256 | -2,041 |
Fair value | 134,898 | 128,730 |
Trust preferred [Member] | Investment securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 37,684 | 0 |
Gross unrealized gains | 766 | 0 |
Gross unrealized losses | -38 | 0 |
Fair value | $38,412 | $0 |
Securities_Details_1
Securities (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized cost | $579,075 | $253,999 |
Gross unrealized gains | 11,155 | 1,324 |
Gross unrealized losses | -2,392 | -4,427 |
Fair value, Held to maturity securities | 587,838 | 250,896 |
Residential Mortgage Backed Securities [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized cost | 205,019 | 156,147 |
Gross unrealized gains | 1,369 | 749 |
Gross unrealized losses | -1,307 | -423 |
Fair value, Held to maturity securities | 205,081 | 156,473 |
Residential Mortgage Backed Securities [Member] | Agency-backed [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized cost | 142,329 | 130,371 |
Gross unrealized gains | 1,360 | 716 |
Gross unrealized losses | -103 | -108 |
Fair value, Held to maturity securities | 143,586 | 130,979 |
Residential Mortgage Backed Securities [Member] | CMO/Other MBS [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized cost | 62,690 | 25,776 |
Gross unrealized gains | 9 | 33 |
Gross unrealized losses | -1,204 | -315 |
Fair value, Held to maturity securities | 61,495 | 25,494 |
Securities Investment [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized cost | 374,056 | 97,852 |
Gross unrealized gains | 9,786 | 575 |
Gross unrealized losses | -1,085 | -4,004 |
Fair value, Held to maturity securities | 382,757 | 94,423 |
Securities Investment [Member] | Federal agencies [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized cost | 136,413 | 77,341 |
Gross unrealized gains | 2,634 | 0 |
Gross unrealized losses | -962 | -3,458 |
Fair value, Held to maturity securities | 138,085 | 73,883 |
Securities Investment [Member] | State and municipal [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized cost | 232,643 | 19,011 |
Gross unrealized gains | 6,814 | 556 |
Gross unrealized losses | -123 | -546 |
Fair value, Held to maturity securities | 239,334 | 19,021 |
Securities Investment [Member] | Other [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized cost | 5,000 | 1,500 |
Gross unrealized gains | 338 | 19 |
Gross unrealized losses | 0 | 0 |
Fair value, Held to maturity securities | $5,338 | $1,519 |
Securities_Details_2
Securities (Details 2) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Available-for-sale Securities [Abstract] | ' | ' |
Amortized cost, One year or less | $2,100 | ' |
Amortized cost, One to five years | 141,508 | ' |
Amortized cost, Five to ten years | 334,295 | ' |
Amortized cost, Greater than ten years | 45,157 | ' |
Amortized cost, Total other securities | 523,060 | ' |
Amortized cost, Available for sale securities | 1,115,458 | 973,709 |
Fair value, One year or less | 2,112 | ' |
Fair value, One to five years | 141,748 | ' |
Fair value, Five to ten years | 328,902 | ' |
Fair value, Greater than ten years | 46,201 | ' |
Fair value, Total other securities | 518,963 | ' |
Fair value, Available for sale securities | 1,110,813 | 954,393 |
Held-to-Maturity Securities [Abstract] | ' | ' |
Amortized cost, One year or less | 8,847 | ' |
Amortized cost, One to five years | 9,138 | ' |
Amortized cost, Five to ten years | 189,494 | ' |
Amortized cost, Greater than ten years | 166,577 | ' |
Amortized cost, Total other securities | 374,056 | ' |
Amortized cost, Held to maturity securities | 579,075 | 253,999 |
Fair value, One year or less | 8,897 | ' |
Fair value, One to five years | 9,624 | ' |
Fair value, Five to ten years | 192,109 | ' |
Fair value, Greater than ten years | 172,127 | ' |
Fair value, Total other securities | 382,757 | ' |
Fair value, Held to maturity securities | 587,838 | 250,896 |
Residential Mortgage Backed Securities [Member] | ' | ' |
Available-for-sale Securities [Abstract] | ' | ' |
Amortized cost, Available for sale securities | 592,398 | 454,173 |
Fair value, Available for sale securities | 591,850 | 449,183 |
Held-to-Maturity Securities [Abstract] | ' | ' |
Amortized cost, Held to maturity securities | 205,019 | ' |
Fair value, Held to maturity securities | $205,081 | $156,473 |
Securities_Details_3
Securities (Details 3) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |||
Investments, Debt and Equity Securities [Abstract] | ' | ' | ' | |||
Proceeds from sales of securities available for sale | $529,107 | $339,123 | $344,431 | |||
Gross realized gains from securities available for sale | 1,964 | 7,709 | 10,468 | |||
Gross realized losses from securities available for sale | -1,323 | -377 | 0 | |||
Income tax expense on realized net gains of securities available for sale | 172 | 2,282 | 2,475 | |||
Proceeds from sales of securities held to maturity | 0 | [1] | 1,187 | [1] | 0 | [1] |
Gross realized gains from securities held to maturity | 0 | [1] | 59 | [1] | 0 | [1] |
Income tax expense on securities held to maturity | $0 | [1] | $18 | [1] | $0 | [1] |
[1] | (1) During the fiscal year ended September 30, 2013, the Company sold held to maturity securities after the Company had already collected at least 85% of the principal balance outstanding at acquisition. |
Securities_Details_4
Securities (Details 4) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair value, Less than 12 months | $316,263 | $659,734 |
Unrealized losses, Less than 12 months | -2,550 | -24,817 |
Fair value, 12 months or longer | 296,680 | 7,932 |
Unrealized losses, 12 months or longer | -8,951 | -304 |
Fair value, Total | 612,943 | 667,666 |
Unrealized losses, Total | -11,501 | -25,121 |
Securities Investment [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair value, Less than 12 months | 116,063 | 400,145 |
Unrealized losses, Less than 12 months | -1,588 | -17,918 |
Fair value, 12 months or longer | 225,665 | 112 |
Unrealized losses, 12 months or longer | -6,866 | -8 |
Fair value, Total | 341,728 | 400,257 |
Unrealized losses, Total | -8,454 | -17,926 |
Residential Mortgage Backed Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair value, Less than 12 months | 200,200 | 259,589 |
Unrealized losses, Less than 12 months | -962 | -6,899 |
Fair value, 12 months or longer | 71,015 | 7,820 |
Unrealized losses, 12 months or longer | -2,085 | -296 |
Fair value, Total | 271,215 | 267,409 |
Unrealized losses, Total | -3,047 | -7,195 |
Agency-backed [Member] | Residential Mortgage Backed Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair value, Less than 12 months | 137,693 | 137,265 |
Unrealized losses, Less than 12 months | -516 | -4,157 |
Fair value, 12 months or longer | 41,516 | 0 |
Unrealized losses, 12 months or longer | -1,039 | 0 |
Fair value, Total | 179,209 | 137,265 |
Unrealized losses, Total | -1,555 | -4,157 |
CMO/Other MBS [Member] | Residential Mortgage Backed Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair value, Less than 12 months | 62,507 | 122,324 |
Unrealized losses, Less than 12 months | -446 | -2,742 |
Fair value, 12 months or longer | 29,499 | 7,820 |
Unrealized losses, 12 months or longer | -1,046 | -296 |
Fair value, Total | 92,006 | 130,144 |
Unrealized losses, Total | -1,492 | -3,038 |
Federal agencies [Member] | Securities Investment [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair value, Less than 12 months | 6,153 | 261,547 |
Unrealized losses, Less than 12 months | -144 | -12,090 |
Fair value, 12 months or longer | 146,416 | 0 |
Unrealized losses, 12 months or longer | -5,159 | 0 |
Fair value, Total | 152,569 | 261,547 |
Unrealized losses, Total | -5,303 | -12,090 |
State and municipal [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair value, Less than 12 months | 8,170 | ' |
Unrealized losses, Less than 12 months | -58 | ' |
Fair value, 12 months or longer | 12,809 | ' |
Unrealized losses, 12 months or longer | -198 | ' |
Fair value, Total | 20,979 | ' |
Unrealized losses, Total | -256 | ' |
State and municipal [Member] | Securities Investment [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair value, Less than 12 months | ' | 43,585 |
Unrealized losses, Less than 12 months | ' | -2,033 |
Fair value, 12 months or longer | ' | 112 |
Unrealized losses, 12 months or longer | ' | -8 |
Fair value, Total | ' | 43,697 |
Unrealized losses, Total | ' | -2,041 |
Trust preferred [Member] | Securities Investment [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair value, Less than 12 months | 3,907 | ' |
Unrealized losses, Less than 12 months | -38 | ' |
Fair value, 12 months or longer | 0 | ' |
Unrealized losses, 12 months or longer | 0 | ' |
Fair value, Total | 3,907 | ' |
Unrealized losses, Total | -38 | ' |
Corporate bonds [Member] | Securities Investment [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair value, Less than 12 months | 97,833 | 95,013 |
Unrealized losses, Less than 12 months | -1,348 | -3,795 |
Fair value, 12 months or longer | 66,440 | 0 |
Unrealized losses, 12 months or longer | -1,509 | 0 |
Fair value, Total | 164,273 | 95,013 |
Unrealized losses, Total | ($2,857) | ($3,795) |
Securities_Details_5
Securities (Details 5) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Fair value, Less than 12 months | $73,243 | $125,788 |
Unrealized losses, Less than 12 months | -633 | -4,427 |
Fair value, 12 months or longer | 68,226 | 0 |
Unrealized losses, 12 months or longer | -1,759 | 0 |
Fair value, Total | 141,469 | 125,788 |
Unrealized losses, Total | -2,392 | -4,427 |
Securities Investment [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Fair value, Less than 12 months | 37,699 | 83,413 |
Unrealized losses, Less than 12 months | -162 | -4,004 |
Fair value, 12 months or longer | 25,580 | 0 |
Unrealized losses, 12 months or longer | -923 | 0 |
Fair value, Total | 63,279 | 83,413 |
Unrealized losses, Total | -1,085 | -4,004 |
Securities Investment [Member] | Federal agencies [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Fair value, Less than 12 months | 23,756 | 73,883 |
Unrealized losses, Less than 12 months | -62 | -3,458 |
Fair value, 12 months or longer | 24,101 | 0 |
Unrealized losses, 12 months or longer | -900 | 0 |
Fair value, Total | 47,857 | 73,883 |
Unrealized losses, Total | -962 | -3,458 |
Securities Investment [Member] | State and municipal [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Fair value, Less than 12 months | 13,943 | 9,530 |
Unrealized losses, Less than 12 months | -100 | -546 |
Fair value, 12 months or longer | 1,479 | 0 |
Unrealized losses, 12 months or longer | -23 | 0 |
Fair value, Total | 15,422 | 9,530 |
Unrealized losses, Total | -123 | -546 |
Residential Mortgage Backed Securities [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Fair value, Less than 12 months | 35,544 | 42,375 |
Unrealized losses, Less than 12 months | -471 | -423 |
Fair value, 12 months or longer | 42,646 | 0 |
Unrealized losses, 12 months or longer | -836 | 0 |
Fair value, Total | 78,190 | 42,375 |
Unrealized losses, Total | -1,307 | -423 |
Residential Mortgage Backed Securities [Member] | Agency-backed [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Fair value, Less than 12 months | 20,616 | 10,963 |
Unrealized losses, Less than 12 months | -103 | -86 |
Fair value, 12 months or longer | 0 | 0 |
Unrealized losses, 12 months or longer | 0 | 0 |
Fair value, Total | 20,616 | 10,963 |
Unrealized losses, Total | -103 | -86 |
Residential Mortgage Backed Securities [Member] | CMO/Other MBS [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Fair value, Less than 12 months | 14,928 | 31,412 |
Unrealized losses, Less than 12 months | -368 | -337 |
Fair value, 12 months or longer | 42,646 | 0 |
Unrealized losses, 12 months or longer | -836 | 0 |
Fair value, Total | 57,574 | 31,412 |
Unrealized losses, Total | ($1,204) | ($337) |
Securities_Details_6
Securities (Details 6) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Total securities pledged | $1,292,140 | $1,008,466 |
Federal Home Loan Bank Borrowings [Member] | ' | ' |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Available-for-sale securities pledged as collateral | 268,316 | 199,642 |
Held-to-maturity securities pledged as collateral | 58,509 | 55,497 |
Municipal Deposits [Member] | ' | ' |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Available-for-sale securities pledged as collateral | 532,770 | 580,756 |
Held-to-maturity securities pledged as collateral | 430,611 | 167,926 |
Interest Rate Swap [Member] | ' | ' |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Available-for-sale securities pledged as collateral | $1,934 | $4,645 |
Securities_Details_Textual
Securities (Details Textual) (USD $) | 0 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Oct. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Security | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Investment securities transferred from held to maturity to available for sale | $165,230 | ' | ' |
Investment securities transferred from available for sale to held to maturity | 221,904 | ' | ' |
Unrealized gain(loss) on investment securities transferred | $9,657 | $8,947 | ' |
Life of investment securities transferred | ' | '5 years 3 months 18 days | ' |
Held to maturity securities sold after the company collected principal outstanding balance | ' | ' | 85.00% |
Number of securities which were in continuous unrealized loss position for 12 months or more | ' | 99 | ' |
Number of securities which were in continuous unrealized loss position for less than 12 months | ' | 118 | ' |
Number of fixed maturity securities past due | ' | 0 | ' |
Loans_Details
Loans (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
In Thousands, unless otherwise specified | ||||
Components of loan portfolio, excluding loans held for sale | ' | ' | ' | ' |
Commercial & industrial | ' | $439,787 | ' | ' |
Payroll finance | ' | 0 | ' | ' |
Warehouse lending | ' | 0 | ' | ' |
Factored receivables | ' | 0 | ' | ' |
Equipment financing | ' | 0 | ' | ' |
Total commercial | 2,076,474 | 439,787 | ' | ' |
Commercial real estate | ' | 969,490 | ' | ' |
Multi-family | ' | 307,547 | ' | ' |
Acquisition, development & construction | ' | 102,494 | ' | ' |
Total commercial mortgage | 1,909,725 | 1,379,531 | ' | ' |
Total commercial and commercial mortgage | 3,986,199 | 1,819,318 | ' | ' |
Real estate-residential mortgage loans | ' | 400,009 | ' | ' |
Consumer loans: | ' | ' | ' | ' |
Home equity lines of credit | 159,944 | 156,995 | ' | ' |
Other consumer loans, including overdrafts | 43,864 | 36,576 | ' | ' |
Total consumer | 203,808 | 193,571 | ' | ' |
Gross loans | 4,760,438 | 2,412,898 | ' | ' |
Allowance for loan losses | -40,612 | -28,877 | -28,282 | -27,917 |
Total loans, net | $4,719,826 | $2,384,021 | ' | ' |
Loans_Details_1
Loans (Details 1) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Loans and Lease Receivable Allowance Under Troubled Debt Restructurings | $891,000 | $877,000 |
Non-Performing loans: | ' | ' |
Current Loans | 4,684,196,000 | 2,379,522,000 |
Non-performing loans, 30-59 Days Past Due | 10,307,000 | 3,844,000 |
Non-performing loans, 60-89 Days Past Due | 14,972,000 | 2,626,000 |
Non-performing loans, 90+ Days Past Due | 1,401,000 | 4,099,000 |
Non accrual loans | 49,562,000 | 22,807,000 |
Loans and Leases Receivable, Gross | 4,760,438,000 | 2,412,898,000 |
Current loans | 17,138,000 | 23,754,000 |
30-59 days past due | 346,000 | 0 |
60-89 days past due | 169,000 | 0 |
90 days past due | 0 | 141,000 |
Non-Accrual | 11,944,000 | 2,199,000 |
Total | 29,597,000 | 26,094,000 |
Nonperforming loans | ' | ' |
Non-Performing loans: | ' | ' |
Non accrual loans | 49,562,000 | 22,807,000 |
Non-performing loans: | ' | ' |
Loans 90 days past due and still accruing | 1,401,000 | 4,099,000 |
Total non-performing loans | 50,963,000 | 26,906,000 |
Commercial & industrial | ' | ' |
Non-Performing loans: | ' | ' |
Current Loans | 1,150,854,000 | 438,818,000 |
Non-performing loans, 30-59 Days Past Due | 2,316,000 | 178,000 |
Non-performing loans, 60-89 Days Past Due | 7,043,000 | 2,000 |
Non-performing loans, 90+ Days Past Due | 0 | 289,000 |
Non accrual loans | 4,324,000 | 500,000 |
Loans and Leases Receivable, Gross | 1,164,537,000 | 439,787,000 |
Payroll finance | ' | ' |
Non-Performing loans: | ' | ' |
Current Loans | 145,029,000 | ' |
Non-performing loans, 30-59 Days Past Due | 99,000 | ' |
Non-performing loans, 60-89 Days Past Due | 0 | ' |
Non-performing loans, 90+ Days Past Due | 346,000 | ' |
Non accrual loans | 0 | ' |
Loans and Leases Receivable, Gross | 145,474,000 | ' |
Warehouse lending | ' | ' |
Non-Performing loans: | ' | ' |
Current Loans | 192,003,000 | ' |
Non-performing loans, 30-59 Days Past Due | 0 | ' |
Non-performing loans, 60-89 Days Past Due | 0 | ' |
Non-performing loans, 90+ Days Past Due | 0 | ' |
Non accrual loans | 0 | ' |
Loans and Leases Receivable, Gross | 192,003,000 | ' |
Factored receivables | ' | ' |
Non-Performing loans: | ' | ' |
Current Loans | 181,063,000 | ' |
Non-performing loans, 30-59 Days Past Due | 0 | ' |
Non-performing loans, 60-89 Days Past Due | 0 | ' |
Non-performing loans, 90+ Days Past Due | 0 | ' |
Non accrual loans | 370,000 | ' |
Loans and Leases Receivable, Gross | 181,433,000 | ' |
Equipment financing | ' | ' |
Non-Performing loans: | ' | ' |
Current Loans | 391,914,000 | ' |
Non-performing loans, 30-59 Days Past Due | 689,000 | ' |
Non-performing loans, 60-89 Days Past Due | 162,000 | ' |
Non-performing loans, 90+ Days Past Due | 0 | ' |
Non accrual loans | 262,000 | ' |
Loans and Leases Receivable, Gross | 393,027,000 | ' |
Commercial real estate | ' | ' |
Non-Performing loans: | ' | ' |
Current Loans | 1,433,805,000 | 1,263,933,000 |
Non-performing loans, 30-59 Days Past Due | 93,000 | 1,978,000 |
Non-performing loans, 60-89 Days Past Due | 4,188,000 | 2,357,000 |
Non-performing loans, 90+ Days Past Due | 521,000 | 1,574,000 |
Non accrual loans | 10,445,000 | 7,195,000 |
Loans and Leases Receivable, Gross | 1,449,052,000 | 1,277,037,000 |
Multi-family | ' | ' |
Non-Performing loans: | ' | ' |
Current Loans | 368,393,000 | ' |
Non-performing loans, 30-59 Days Past Due | 0 | ' |
Non-performing loans, 60-89 Days Past Due | 0 | ' |
Non-performing loans, 90+ Days Past Due | 0 | ' |
Non accrual loans | 131,000 | ' |
Loans and Leases Receivable, Gross | 368,524,000 | ' |
Acquisition, development & construction | ' | ' |
Non-Performing loans: | ' | ' |
Current Loans | 79,732,000 | 96,306,000 |
Non-performing loans, 30-59 Days Past Due | 0 | 768,000 |
Non-performing loans, 60-89 Days Past Due | 56,000 | 0 |
Non-performing loans, 90+ Days Past Due | 0 | 0 |
Non accrual loans | 12,361,000 | 5,420,000 |
Loans and Leases Receivable, Gross | 92,149,000 | 102,494,000 |
Residential mortgage | ' | ' |
Non-Performing loans: | ' | ' |
Current Loans | 547,912,000 | 390,072,000 |
Non-performing loans, 30-59 Days Past Due | 4,023,000 | 354,000 |
Non-performing loans, 60-89 Days Past Due | 2,036,000 | 267,000 |
Non-performing loans, 90+ Days Past Due | 534,000 | 1,832,000 |
Non accrual loans | 15,926,000 | 7,484,000 |
Loans and Leases Receivable, Gross | 570,431,000 | 400,009,000 |
Consumer | ' | ' |
Non-Performing loans: | ' | ' |
Current Loans | 193,491,000 | 190,393,000 |
Non-performing loans, 30-59 Days Past Due | 3,087,000 | 566,000 |
Non-performing loans, 60-89 Days Past Due | 1,487,000 | 0 |
Non-performing loans, 90+ Days Past Due | 0 | 404,000 |
Non accrual loans | 5,743,000 | 2,208,000 |
Loans and Leases Receivable, Gross | $203,808,000 | $193,571,000 |
Loans_Details_2
Loans (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Summary of activity in allowance for loan losses and recorded investments in loans by portfolio segment based on impairment method | ' | ' | ' |
Beginning Allowance for loan losses | $28,877 | $28,282 | $27,917 |
Charge-offs | -9,331 | -13,057 | -12,809 |
Recoveries | 1,966 | 1,502 | 2,562 |
Net Charge-offs | -7,365 | -11,555 | -10,247 |
Provision | 19,100 | 12,150 | 10,612 |
Ending Allowance for Loan Losses | 40,612 | 28,877 | 28,282 |
Annualized net charge-offs to average loans outstanding | 0.24% | 0.52% | 0.56% |
Commercial & industrial | ' | ' | ' |
Summary of activity in allowance for loan losses and recorded investments in loans by portfolio segment based on impairment method | ' | ' | ' |
Beginning Allowance for loan losses | 5,302 | 4,603 | 5,945 |
Charge-offs | -2,901 | -1,354 | -1,526 |
Recoveries | 1,073 | 410 | 1,116 |
Net Charge-offs | -1,828 | -944 | -410 |
Provision | 6,062 | 1,643 | -932 |
Ending Allowance for Loan Losses | 9,536 | 5,302 | 4,603 |
Payroll finance | ' | ' | ' |
Summary of activity in allowance for loan losses and recorded investments in loans by portfolio segment based on impairment method | ' | ' | ' |
Beginning Allowance for loan losses | 0 | ' | ' |
Charge-offs | -758 | ' | ' |
Recoveries | 0 | ' | ' |
Net Charge-offs | -758 | ' | ' |
Provision | 2,137 | ' | ' |
Ending Allowance for Loan Losses | 1,379 | ' | ' |
Warehouse lending | ' | ' | ' |
Summary of activity in allowance for loan losses and recorded investments in loans by portfolio segment based on impairment method | ' | ' | ' |
Beginning Allowance for loan losses | 0 | ' | ' |
Charge-offs | 0 | ' | ' |
Recoveries | 0 | ' | ' |
Net Charge-offs | 0 | ' | ' |
Provision | 630 | ' | ' |
Ending Allowance for Loan Losses | 630 | ' | ' |
Factored receivables | ' | ' | ' |
Summary of activity in allowance for loan losses and recorded investments in loans by portfolio segment based on impairment method | ' | ' | ' |
Beginning Allowance for loan losses | 0 | ' | ' |
Charge-offs | -211 | ' | ' |
Recoveries | 9 | ' | ' |
Net Charge-offs | -202 | ' | ' |
Provision | 1,496 | ' | ' |
Ending Allowance for Loan Losses | 1,294 | ' | ' |
Equipment financing | ' | ' | ' |
Summary of activity in allowance for loan losses and recorded investments in loans by portfolio segment based on impairment method | ' | ' | ' |
Beginning Allowance for loan losses | 0 | ' | ' |
Charge-offs | -1,074 | ' | ' |
Recoveries | 194 | ' | ' |
Net Charge-offs | -880 | ' | ' |
Provision | 3,501 | ' | ' |
Ending Allowance for Loan Losses | 2,621 | ' | ' |
Commercial real estate | ' | ' | ' |
Summary of activity in allowance for loan losses and recorded investments in loans by portfolio segment based on impairment method | ' | ' | ' |
Beginning Allowance for loan losses | 9,967 | 7,230 | 5,568 |
Charge-offs | -741 | -3,725 | -2,707 |
Recoveries | 161 | 577 | 528 |
Net Charge-offs | -580 | -3,148 | -2,179 |
Provision | 1,457 | 5,885 | 3,841 |
Ending Allowance for Loan Losses | 10,844 | 9,967 | 7,230 |
Multi-family | ' | ' | ' |
Summary of activity in allowance for loan losses and recorded investments in loans by portfolio segment based on impairment method | ' | ' | ' |
Beginning Allowance for loan losses | 0 | ' | ' |
Charge-offs | -418 | ' | ' |
Recoveries | 92 | ' | ' |
Net Charge-offs | -326 | ' | ' |
Provision | 2,193 | ' | ' |
Ending Allowance for Loan Losses | 1,867 | ' | ' |
Acquisition, development & construction | ' | ' | ' |
Summary of activity in allowance for loan losses and recorded investments in loans by portfolio segment based on impairment method | ' | ' | ' |
Beginning Allowance for loan losses | 5,806 | 8,526 | 9,895 |
Charge-offs | -1,479 | -3,422 | -4,124 |
Recoveries | 0 | 182 | 299 |
Net Charge-offs | -1,479 | -3,240 | -3,825 |
Provision | -2,207 | 520 | 2,456 |
Ending Allowance for Loan Losses | 2,120 | 5,806 | 8,526 |
Residential mortgage | ' | ' | ' |
Summary of activity in allowance for loan losses and recorded investments in loans by portfolio segment based on impairment method | ' | ' | ' |
Beginning Allowance for loan losses | 4,474 | 4,359 | 3,498 |
Charge-offs | -963 | -2,547 | -2,551 |
Recoveries | 323 | 101 | 356 |
Net Charge-offs | -640 | -2,446 | -2,195 |
Provision | 2,003 | 2,561 | 3,056 |
Ending Allowance for Loan Losses | 5,837 | 4,474 | 4,359 |
Consumer | ' | ' | ' |
Summary of activity in allowance for loan losses and recorded investments in loans by portfolio segment based on impairment method | ' | ' | ' |
Beginning Allowance for loan losses | 3,328 | 3,564 | 3,011 |
Charge-offs | -786 | -2,009 | -1,901 |
Recoveries | 114 | 232 | 263 |
Net Charge-offs | -672 | -1,777 | -1,638 |
Provision | 1,828 | 1,541 | 2,191 |
Ending Allowance for Loan Losses | $4,484 | $3,328 | $3,564 |
Loans_Details_3
Loans (Details 3) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Loans evaluated for impairment by segment | ' | ' |
Loans evaluated by segment, Individually evaluated for impairment | $36,208,000 | $36,821,000 |
Loans evaluated by segment, Collectively evaluated for impairment | 4,720,467,000 | 2,376,077,000 |
Total loans | 4,760,438,000 | 2,412,898,000 |
Allowance evaluated by segment, Individually evaluated for impairment | 0 | 1,593,000 |
Allowance evaluated by segment, Collectively evaluated for impairment | 40,612,000 | 27,284,000 |
Total allowance for loan losses | 40,612,000 | 28,877,000 |
Commercial & industrial | ' | ' |
Loans evaluated for impairment by segment | ' | ' |
Loans evaluated by segment, Individually evaluated for impairment | 4,177,000 | 2,631,000 |
Loans evaluated by segment, Collectively evaluated for impairment | 1,158,837,000 | 437,156,000 |
Total loans | 1,164,537,000 | 439,787,000 |
Allowance evaluated by segment, Individually evaluated for impairment | 0 | 249,000 |
Allowance evaluated by segment, Collectively evaluated for impairment | 9,536,000 | 5,053,000 |
Total allowance for loan losses | 9,536,000 | 5,302,000 |
Payroll finance | ' | ' |
Loans evaluated for impairment by segment | ' | ' |
Loans evaluated by segment, Individually evaluated for impairment | 0 | ' |
Loans evaluated by segment, Collectively evaluated for impairment | 145,474,000 | ' |
Total loans | 145,474,000 | ' |
Allowance evaluated by segment, Individually evaluated for impairment | 0 | ' |
Allowance evaluated by segment, Collectively evaluated for impairment | 1,379,000 | ' |
Total allowance for loan losses | 1,379,000 | ' |
Warehouse lending | ' | ' |
Loans evaluated for impairment by segment | ' | ' |
Loans evaluated by segment, Individually evaluated for impairment | 0 | ' |
Loans evaluated by segment, Collectively evaluated for impairment | 192,003,000 | ' |
Total loans | 192,003,000 | ' |
Allowance evaluated by segment, Individually evaluated for impairment | 0 | ' |
Allowance evaluated by segment, Collectively evaluated for impairment | 630,000 | ' |
Total allowance for loan losses | 630,000 | ' |
Factored receivables | ' | ' |
Loans evaluated for impairment by segment | ' | ' |
Loans evaluated by segment, Individually evaluated for impairment | 0 | ' |
Loans evaluated by segment, Collectively evaluated for impairment | 181,433,000 | ' |
Total loans | 181,433,000 | ' |
Allowance evaluated by segment, Individually evaluated for impairment | 0 | ' |
Allowance evaluated by segment, Collectively evaluated for impairment | 1,294,000 | ' |
Total allowance for loan losses | 1,294,000 | ' |
Equipment financing | ' | ' |
Loans evaluated for impairment by segment | ' | ' |
Loans evaluated by segment, Individually evaluated for impairment | 0 | ' |
Loans evaluated by segment, Collectively evaluated for impairment | 393,027,000 | ' |
Total loans | 393,027,000 | ' |
Allowance evaluated by segment, Individually evaluated for impairment | 0 | ' |
Allowance evaluated by segment, Collectively evaluated for impairment | 2,621,000 | ' |
Total allowance for loan losses | 2,621,000 | ' |
Commercial real estate | ' | ' |
Loans evaluated for impairment by segment | ' | ' |
Loans evaluated by segment, Individually evaluated for impairment | 13,750,000 | 14,091,000 |
Loans evaluated by segment, Collectively evaluated for impairment | 1,435,163,000 | 1,262,946,000 |
Total loans | 1,449,052,000 | 1,277,037,000 |
Allowance evaluated by segment, Individually evaluated for impairment | 0 | 803,000 |
Allowance evaluated by segment, Collectively evaluated for impairment | 10,844,000 | 9,164,000 |
Total allowance for loan losses | 10,844,000 | 9,967,000 |
Multi-family | ' | ' |
Loans evaluated for impairment by segment | ' | ' |
Loans evaluated by segment, Individually evaluated for impairment | 0 | ' |
Loans evaluated by segment, Collectively evaluated for impairment | 368,524,000 | ' |
Total loans | 368,524,000 | ' |
Allowance evaluated by segment, Individually evaluated for impairment | 0 | ' |
Allowance evaluated by segment, Collectively evaluated for impairment | 1,867,000 | ' |
Total allowance for loan losses | 1,867,000 | ' |
Acquisition, development & construction | ' | ' |
Loans evaluated for impairment by segment | ' | ' |
Loans evaluated by segment, Individually evaluated for impairment | 17,766,000 | 19,582,000 |
Loans evaluated by segment, Collectively evaluated for impairment | 74,383,000 | 82,912,000 |
Total loans | 92,149,000 | 102,494,000 |
Allowance evaluated by segment, Individually evaluated for impairment | 0 | 540,000 |
Allowance evaluated by segment, Collectively evaluated for impairment | 2,120,000 | 5,266,000 |
Total allowance for loan losses | 2,120,000 | 5,806,000 |
Residential mortgage | ' | ' |
Loans evaluated for impairment by segment | ' | ' |
Loans evaluated by segment, Individually evaluated for impairment | 515,000 | 515,000 |
Loans evaluated by segment, Collectively evaluated for impairment | 567,815,000 | 399,494,000 |
Total loans | 570,431,000 | 400,009,000 |
Allowance evaluated by segment, Individually evaluated for impairment | 0 | 0 |
Allowance evaluated by segment, Collectively evaluated for impairment | 5,837,000 | 4,474,000 |
Total allowance for loan losses | 5,837,000 | 4,474,000 |
Consumer | ' | ' |
Loans evaluated for impairment by segment | ' | ' |
Loans evaluated by segment, Individually evaluated for impairment | 0 | 2,000 |
Loans evaluated by segment, Collectively evaluated for impairment | 203,808,000 | 193,569,000 |
Total loans | 203,808,000 | 193,571,000 |
Allowance evaluated by segment, Individually evaluated for impairment | 0 | 1,000 |
Allowance evaluated by segment, Collectively evaluated for impairment | 4,484,000 | 3,327,000 |
Total allowance for loan losses | 4,484,000 | 3,328,000 |
Purchased credit impaired loans | ' | ' |
Loans evaluated for impairment by segment | ' | ' |
Loans evaluated by segment, Purchased credit impaired loans | 3,763,000 | ' |
Purchased credit impaired loans | Commercial & industrial | ' | ' |
Loans evaluated for impairment by segment | ' | ' |
Loans evaluated by segment, Purchased credit impaired loans | 1,523,000 | ' |
Purchased credit impaired loans | Payroll finance | ' | ' |
Loans evaluated for impairment by segment | ' | ' |
Loans evaluated by segment, Purchased credit impaired loans | 0 | ' |
Purchased credit impaired loans | Warehouse lending | ' | ' |
Loans evaluated for impairment by segment | ' | ' |
Loans evaluated by segment, Purchased credit impaired loans | 0 | ' |
Purchased credit impaired loans | Factored receivables | ' | ' |
Loans evaluated for impairment by segment | ' | ' |
Loans evaluated by segment, Purchased credit impaired loans | 0 | ' |
Purchased credit impaired loans | Equipment financing | ' | ' |
Loans evaluated for impairment by segment | ' | ' |
Loans evaluated by segment, Purchased credit impaired loans | 0 | ' |
Purchased credit impaired loans | Commercial real estate | ' | ' |
Loans evaluated for impairment by segment | ' | ' |
Loans evaluated by segment, Purchased credit impaired loans | 139,000 | ' |
Purchased credit impaired loans | Multi-family | ' | ' |
Loans evaluated for impairment by segment | ' | ' |
Loans evaluated by segment, Purchased credit impaired loans | 0 | ' |
Purchased credit impaired loans | Acquisition, development & construction | ' | ' |
Loans evaluated for impairment by segment | ' | ' |
Loans evaluated by segment, Purchased credit impaired loans | 0 | ' |
Purchased credit impaired loans | Residential mortgage | ' | ' |
Loans evaluated for impairment by segment | ' | ' |
Loans evaluated by segment, Purchased credit impaired loans | 2,101,000 | ' |
Purchased credit impaired loans | Consumer | ' | ' |
Loans evaluated for impairment by segment | ' | ' |
Loans evaluated by segment, Purchased credit impaired loans | $0 | ' |
Loans_Details_4
Loans (Details 4) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
With no related allowance recorded: | ' | ' |
Unpaid principal balance with no related allowance recorded | $37,254 | $33,112 |
Recorded investment with no related allowance recorded | 36,208 | 32,411 |
With an allowance recorded: | ' | ' |
Unpaid principal balance with an allowance recorded | 0 | 6,405 |
Recorded investment with an allowance recorded | 0 | 4,410 |
Allowance for loan losses allocated with an allowance recorded | 0 | 1,593 |
Unpaid principal balance, total | 37,254 | 39,517 |
Recorded investment total | 36,208 | 36,821 |
Allowance for loan losses allocated, total | 0 | 1,593 |
Commercial & industrial | ' | ' |
With no related allowance recorded: | ' | ' |
Unpaid principal balance with no related allowance recorded | 4,177 | 2,175 |
Recorded investment with no related allowance recorded | 4,177 | 2,131 |
With an allowance recorded: | ' | ' |
Unpaid principal balance with an allowance recorded | 0 | 500 |
Recorded investment with an allowance recorded | 0 | 500 |
Allowance for loan losses allocated with an allowance recorded | 0 | 249 |
Commercial real estate | ' | ' |
With no related allowance recorded: | ' | ' |
Unpaid principal balance with no related allowance recorded | 13,886 | 12,451 |
Recorded investment with no related allowance recorded | 13,750 | 11,820 |
With an allowance recorded: | ' | ' |
Unpaid principal balance with an allowance recorded | 0 | 3,150 |
Recorded investment with an allowance recorded | 0 | 2,271 |
Allowance for loan losses allocated with an allowance recorded | 0 | 803 |
Acquisition, development & construction | ' | ' |
With no related allowance recorded: | ' | ' |
Unpaid principal balance with no related allowance recorded | 18,676 | 17,971 |
Recorded investment with no related allowance recorded | 17,766 | 17,945 |
With an allowance recorded: | ' | ' |
Unpaid principal balance with an allowance recorded | 0 | 2,753 |
Recorded investment with an allowance recorded | 0 | 1,637 |
Allowance for loan losses allocated with an allowance recorded | 0 | 540 |
Residential mortgage | ' | ' |
With no related allowance recorded: | ' | ' |
Unpaid principal balance with no related allowance recorded | 515 | 515 |
Recorded investment with no related allowance recorded | 515 | 515 |
Consumer | ' | ' |
With an allowance recorded: | ' | ' |
Unpaid principal balance with an allowance recorded | 0 | 2 |
Recorded investment with an allowance recorded | 0 | 2 |
Allowance for loan losses allocated with an allowance recorded | $0 | $1 |
Loans_Details_5
Loans (Details 5) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Average recorded investment with no related allowance | $39,236 | $32,343 | ' |
Interest income recognized with no related allowance | 425 | 1,008 | ' |
Cash-basis interest income recognized with no related allowance | 419 | 948 | ' |
Average recorded investment with an allowance recorded | 0 | 10,285 | ' |
Interest income recognized with an allowance recorded | 0 | 21 | ' |
Cash-basis interest income recognized with an allowance recorded | 0 | 17 | ' |
Average recorded investment, Total | 39,236 | 42,628 | 58,195 |
Interest income recognized, Total | 425 | 1,029 | 1,878 |
Cash-basis interest income recognized, Total | 419 | 965 | 1,136 |
Commercial & industrial | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Average recorded investment with no related allowance | 4,180 | 1,821 | ' |
Interest income recognized with no related allowance | 0 | 91 | ' |
Cash-basis interest income recognized with no related allowance | 0 | 86 | ' |
Average recorded investment with an allowance recorded | 0 | 705 | ' |
Interest income recognized with an allowance recorded | 0 | 0 | ' |
Cash-basis interest income recognized with an allowance recorded | 0 | 0 | ' |
Commercial real estate | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Average recorded investment with no related allowance | 14,016 | 17,325 | ' |
Interest income recognized with no related allowance | 186 | 286 | ' |
Cash-basis interest income recognized with no related allowance | 180 | 275 | ' |
Average recorded investment with an allowance recorded | 0 | 6,646 | ' |
Interest income recognized with an allowance recorded | 0 | 7 | ' |
Cash-basis interest income recognized with an allowance recorded | 0 | 7 | ' |
Acquisition, development & construction | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Average recorded investment with no related allowance | 20,525 | 12,827 | ' |
Interest income recognized with no related allowance | 239 | 631 | ' |
Cash-basis interest income recognized with no related allowance | 239 | 587 | ' |
Average recorded investment with an allowance recorded | 0 | 1,104 | ' |
Interest income recognized with an allowance recorded | 0 | 0 | ' |
Cash-basis interest income recognized with an allowance recorded | 0 | 0 | ' |
Residential mortgage | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Average recorded investment with no related allowance | 515 | 309 | ' |
Interest income recognized with no related allowance | 0 | 0 | ' |
Cash-basis interest income recognized with no related allowance | 0 | 0 | ' |
Average recorded investment with an allowance recorded | 0 | 1,602 | ' |
Interest income recognized with an allowance recorded | 0 | 14 | ' |
Cash-basis interest income recognized with an allowance recorded | 0 | 10 | ' |
Consumer | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Average recorded investment with no related allowance | 0 | 61 | ' |
Interest income recognized with no related allowance | 0 | 0 | ' |
Cash-basis interest income recognized with no related allowance | 0 | 0 | ' |
Average recorded investment with an allowance recorded | 0 | 228 | ' |
Interest income recognized with an allowance recorded | 0 | 0 | ' |
Cash-basis interest income recognized with an allowance recorded | $0 | $0 | ' |
Loans_Details_6
Loans (Details 6) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Financing Receivable, Modifications [Line Items] | ' | ' |
Current loans | $17,138 | $23,754 |
30-59 days past due | 346 | 0 |
60-89 days past due | 169 | 0 |
90 days past due | 0 | 141 |
Non- accrual | 11,944 | 2,199 |
Total | 29,597 | 26,094 |
Allowance for loan losses, Current loans | 409 | 438 |
Allowance for loan losses, 30-59 days past due | 0 | 0 |
Allowance for loan losses, 60-89 days past due | 31 | 0 |
Allowance for loan losses, 90 plus days past due | 0 | 0 |
Allowance for loan losses, Non-accrual | 451 | 439 |
Allowance for loan losses, Total | 891 | 877 |
Commercial & industrial | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Current loans | 275 | 1,843 |
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | 0 |
90 days past due | 0 | 141 |
Non- accrual | 1,618 | 0 |
Total | 1,893 | 1,984 |
Equipment financing | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Current loans | 435 | ' |
30-59 days past due | 0 | ' |
60-89 days past due | 0 | ' |
90 days past due | 0 | ' |
Non- accrual | 0 | ' |
Total | 435 | ' |
Commercial real estate | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Current loans | 4,838 | 5,305 |
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | 0 |
90 days past due | 0 | 0 |
Non- accrual | 447 | 0 |
Total | 5,285 | 5,305 |
Acquisition, development & construction | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Current loans | 5,732 | 14,190 |
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | 0 |
90 days past due | 0 | 0 |
Non- accrual | 6,817 | 151 |
Total | 12,549 | 14,341 |
Residential mortgage | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Current loans | 5,858 | 2,416 |
30-59 days past due | 346 | 0 |
60-89 days past due | 169 | 0 |
90 days past due | 0 | 0 |
Non- accrual | 2,841 | 1,792 |
Total | 9,214 | 4,208 |
Consumer | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Current loans | 0 | 0 |
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | 0 |
90 days past due | 0 | 0 |
Non- accrual | 221 | 256 |
Total | $221 | $256 |
Loans_Details_7
Loans (Details 7) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
loan | loan | loan | |
Financing Receivable, Modifications [Line Items] | ' | ' | ' |
Number | 2 | 21 | 12 |
Recorded investment, Pre-modification | $1,060 | $12,193 | $9,160 |
Recorded investment, Post-modification | 1,060 | 12,129 | 8,945 |
Commercial & industrial | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' |
Number | 0 | 5 | ' |
Recorded investment, Pre-modification | 0 | 2,001 | ' |
Recorded investment, Post-modification | 0 | 2,001 | ' |
Commercial real estate | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' |
Number | 0 | 2 | ' |
Recorded investment, Pre-modification | 0 | 2,682 | ' |
Recorded investment, Post-modification | 0 | 2,682 | ' |
Acquisition, development & construction | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' |
Number | 2 | 7 | ' |
Recorded investment, Pre-modification | 1,060 | 5,772 | ' |
Recorded investment, Post-modification | 1,060 | 5,772 | ' |
Residential mortgage | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' |
Number | 0 | 6 | ' |
Recorded investment, Pre-modification | 0 | 1,436 | ' |
Recorded investment, Post-modification | 0 | 1,372 | ' |
Consumer | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' |
Number | 0 | 1 | ' |
Recorded investment, Pre-modification | 0 | 302 | ' |
Recorded investment, Post-modification | $0 | $302 | ' |
Loans_Details_8
Loans (Details 8) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Special mention | ' | ' |
Risk category of loans by segment of gross loans | ' | ' |
Gross loans by segment | $39,553 | $13,530 |
Substandard | ' | ' |
Risk category of loans by segment of gross loans | ' | ' |
Gross loans by segment | 73,093 | 60,503 |
Doubtful | ' | ' |
Risk category of loans by segment of gross loans | ' | ' |
Gross loans by segment | 0 | 592 |
Commercial & industrial | Special mention | ' | ' |
Risk category of loans by segment of gross loans | ' | ' |
Gross loans by segment | 24,980 | 3,545 |
Commercial & industrial | Substandard | ' | ' |
Risk category of loans by segment of gross loans | ' | ' |
Gross loans by segment | 5,749 | 3,855 |
Commercial & industrial | Doubtful | ' | ' |
Risk category of loans by segment of gross loans | ' | ' |
Gross loans by segment | 0 | 365 |
Payroll finance | Special mention | ' | ' |
Risk category of loans by segment of gross loans | ' | ' |
Gross loans by segment | 0 | 0 |
Payroll finance | Substandard | ' | ' |
Risk category of loans by segment of gross loans | ' | ' |
Gross loans by segment | 346 | 0 |
Payroll finance | Doubtful | ' | ' |
Risk category of loans by segment of gross loans | ' | ' |
Gross loans by segment | 0 | 0 |
Factored receivables | Special mention | ' | ' |
Risk category of loans by segment of gross loans | ' | ' |
Gross loans by segment | 46 | 0 |
Factored receivables | Substandard | ' | ' |
Risk category of loans by segment of gross loans | ' | ' |
Gross loans by segment | 370 | 0 |
Factored receivables | Doubtful | ' | ' |
Risk category of loans by segment of gross loans | ' | ' |
Gross loans by segment | 0 | 0 |
Equipment financing | Special mention | ' | ' |
Risk category of loans by segment of gross loans | ' | ' |
Gross loans by segment | 0 | 0 |
Equipment financing | Substandard | ' | ' |
Risk category of loans by segment of gross loans | ' | ' |
Gross loans by segment | 262 | 0 |
Equipment financing | Doubtful | ' | ' |
Risk category of loans by segment of gross loans | ' | ' |
Gross loans by segment | 0 | 0 |
Commercial real estate | Special mention | ' | ' |
Risk category of loans by segment of gross loans | ' | ' |
Gross loans by segment | 8,720 | 7,279 |
Commercial real estate | Substandard | ' | ' |
Risk category of loans by segment of gross loans | ' | ' |
Gross loans by segment | 26,826 | 24,561 |
Commercial real estate | Doubtful | ' | ' |
Risk category of loans by segment of gross loans | ' | ' |
Gross loans by segment | 0 | 227 |
Multi-family | Special mention | ' | ' |
Risk category of loans by segment of gross loans | ' | ' |
Gross loans by segment | 0 | 0 |
Multi-family | Substandard | ' | ' |
Risk category of loans by segment of gross loans | ' | ' |
Gross loans by segment | 131 | 0 |
Multi-family | Doubtful | ' | ' |
Risk category of loans by segment of gross loans | ' | ' |
Gross loans by segment | 0 | 0 |
Acquisition, development & construction | Special mention | ' | ' |
Risk category of loans by segment of gross loans | ' | ' |
Gross loans by segment | 1,040 | 1,867 |
Acquisition, development & construction | Substandard | ' | ' |
Risk category of loans by segment of gross loans | ' | ' |
Gross loans by segment | 16,456 | 19,410 |
Acquisition, development & construction | Doubtful | ' | ' |
Risk category of loans by segment of gross loans | ' | ' |
Gross loans by segment | 0 | 0 |
Residential mortgage | Special mention | ' | ' |
Risk category of loans by segment of gross loans | ' | ' |
Gross loans by segment | 2,988 | 824 |
Residential mortgage | Substandard | ' | ' |
Risk category of loans by segment of gross loans | ' | ' |
Gross loans by segment | 16,981 | 9,786 |
Residential mortgage | Doubtful | ' | ' |
Risk category of loans by segment of gross loans | ' | ' |
Gross loans by segment | 0 | 0 |
Consumer | Special mention | ' | ' |
Risk category of loans by segment of gross loans | ' | ' |
Gross loans by segment | 1,779 | 15 |
Consumer | Substandard | ' | ' |
Risk category of loans by segment of gross loans | ' | ' |
Gross loans by segment | 5,972 | 2,891 |
Consumer | Doubtful | ' | ' |
Risk category of loans by segment of gross loans | ' | ' |
Gross loans by segment | $0 | $0 |
Loans_Details_Textual
Loans (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Oct. 31, 2013 | |
loan | loan | loan | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' |
Net deferred loan origination costs | ($1,261,000) | ($1,261,000) | ($1,201,000) | ' | ' |
Legacy Sterling loans not considered impaired | ' | ' | ' | ' | 1,683,454,000 |
Recorded amount of loans | 3,763,000 | 3,763,000 | ' | ' | ' |
Interest income | ' | 0 | ' | ' | ' |
Pledged loans | 1,246,315,000 | 1,246,315,000 | 784,422,000 | ' | ' |
Maximum outstanding loan balance to be evaluated for impairment on a homogeneous pool basis | ' | 500,000 | ' | ' | ' |
Interest income recognized | ' | 425,000 | 1,029,000 | 1,878,000 | ' |
Cash-basis interest income recognized | ' | 419,000 | 965,000 | 1,136,000 | ' |
Average recorded investment | ' | 39,236,000 | 42,628,000 | 58,195,000 | ' |
Number of TDRs | ' | 2 | 21 | 12 | ' |
Recorded investment, Pre-modification | ' | 1,060,000 | 12,193,000 | 9,160,000 | ' |
Recorded investment, Post-modification | ' | 1,060,000 | 12,129,000 | 8,945,000 | ' |
Increased allowance for loan losses | 0 | ' | 300,000 | 134,000 | ' |
Charge-offs | 0 | ' | 110,000 | 0 | ' |
Maximum loan balance for credit risk to be evaluated on a homogeneous basis | ' | 500,000 | ' | ' | ' |
Additional restricted loan [Member] | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' |
Additional restricted loan | 0 | 0 | 4,101,000 | ' | ' |
Sterling Bancorp (Legacy) | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' |
Loans | ' | ' | ' | ' | 1,698,108,000 |
Fair value of acquired loans | ' | ' | ' | ' | 13,249,000 |
Accretable yield | 0 | 0 | ' | ' | ' |
Sterling Bancorp (Legacy) | Purchased credit impaired loans | Commercial & industrial | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' |
Amount included in allowance for loan losses associated with purchased credit impaired loans | $0 | $0 | ' | ' | ' |
Premises_And_Equipment_Net_Det
Premises And Equipment, Net (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Total premises and equipment, gross | $112,242 | $86,140 |
Accumulated depreciation and amortization | -68,956 | -49,620 |
Total premises and equipment, net | 43,286 | 36,520 |
Land and Land Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total premises and equipment, gross | 6,048 | 7,282 |
Buildings [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total premises and equipment, gross | 22,888 | 30,558 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total premises and equipment, gross | 32,963 | 8,136 |
Furniture, Fixtures and Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total premises and equipment, gross | $50,343 | $40,164 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' |
Identifiable net assets | $130 | ' |
Goodwill [Roll Forward] | ' | ' |
Beginning of year | 163,117 | 163,247 |
Acquisitions | 225,809 | -130 |
Disposals | 0 | 0 |
End of year | $388,926 | $163,117 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross intangible assets | $58,129 | $7,232 | ' |
Accumulated amortization | -12,851 | -1,341 | ' |
Net intangible assets | 45,278 | 5,891 | ' |
Amortization of intangible assets | 9,408 | 1,296 | 1,245 |
Minimum [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Estimated useful life | '1 year | ' | ' |
Maximum [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Estimated useful life | '10 years | ' | ' |
Core Deposits [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross intangible assets | 24,182 | 4,818 | ' |
Accumulated amortization | -4,694 | -798 | ' |
Net intangible assets | 19,488 | 4,020 | ' |
Amortization of intangible assets | 9,408 | ' | ' |
Noncompete Agreements [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross intangible assets | 10,308 | ' | ' |
Accumulated amortization | -5,490 | ' | ' |
Net intangible assets | 4,818 | ' | ' |
Amortization of intangible assets | 1,296 | ' | ' |
Trade Names [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross intangible assets | 20,500 | ' | ' |
Accumulated amortization | 0 | ' | ' |
Net intangible assets | 20,500 | ' | ' |
Fair Value of Below Market Leases [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross intangible assets | 725 | ' | ' |
Accumulated amortization | -253 | ' | ' |
Net intangible assets | 472 | ' | ' |
Provident Bank Ball Park Naming Rights [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross intangible assets | 2,414 | 2,414 | ' |
Accumulated amortization | -2,414 | -543 | ' |
Net intangible assets | 0 | 1,871 | ' |
Estimated useful life | '10 years | ' | ' |
Amortization of intangible assets | $1,245 | ' | ' |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets (Details 3) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
2015 | $6,113 |
2016 | 5,042 |
2017 | 2,598 |
2018 | 2,178 |
2019 | 2,058 |
Thereafter | 6,786 |
Intangible assets | $24,775 |
Deposits_Details
Deposits (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Deposits [Abstract] | ' | ' |
Non-interest bearing demand | $1,799,685 | $943,934 |
Interest bearing demand | 766,852 | 434,398 |
Savings | 698,443 | 580,125 |
Money market | 1,595,803 | 735,709 |
Certificates of deposit | 437,871 | 268,128 |
Deposits | $5,298,654 | $2,962,294 |
Deposits_Details_1
Deposits (Details 1) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Deposits [Abstract] | ' | ' |
Less than one year | $340,813 | $239,104 |
One to two years | 53,319 | 17,248 |
Two to three years | 35,632 | 5,185 |
Three to four years | 4,000 | 3,062 |
Four to five years | 4,107 | 3,529 |
Total certificates of deposit | $437,871 | $268,128 |
Deposits_Details_2
Deposits (Details 2) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | ||
In Thousands, unless otherwise specified | ||||
List of Company's Brokered deposits | ' | ' | ||
Noninterest-bearing Domestic Deposit, Brokered | $121,067 | $36,682 | ||
Money Market [Member] | ' | ' | ||
List of Company's Brokered deposits | ' | ' | ||
Noninterest-bearing Domestic Deposit, Brokered | 84,022 | 34,571 | ||
Reciprocal CDAR's [Member] | ' | ' | ||
List of Company's Brokered deposits | ' | ' | ||
Noninterest-bearing Domestic Deposit, Brokered | 34,017 | [1] | 1,343 | [1] |
CDAR's one way [Member] | ' | ' | ||
List of Company's Brokered deposits | ' | ' | ||
Noninterest-bearing Domestic Deposit, Brokered | $3,028 | $768 | ||
[1] | Certificate of deposit account registry service |
Deposits_Details_Textual
Deposits (Details Textual) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Deposits [Abstract] | ' | ' |
Municipal deposits | $992,761 | $757,065 |
Certificates of Deposits, $100,000 or More | $290,483 | $104,225 |
Borrowings_and_Senior_Notes_De
Borrowings and Senior Notes (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | Jul. 02, 2013 |
In Thousands, unless otherwise specified | |||
By period to maturity: | ' | ' | ' |
Less than one year, Amount | $370,365 | $158,897 | ' |
Less than one year, Rate | 0.69% | 0.95% | ' |
One to two years, Amount | 140,344 | 78,717 | ' |
One to two years, Rate | 0.59% | 1.97% | ' |
Two to three years, Amount | 257,442 | 191 | ' |
Two to three years, Rate | 3.52% | 5.32% | ' |
Three to four years, Amount | 168,402 | 202,414 | ' |
Three to four years, Rate | 4.38% | 4.21% | ' |
Four to five years, Amount | 0 | 118,033 | ' |
Four to five years, Rate | 0.00% | 5.57% | ' |
Greater than five years, Amount | 2,516 | 2,734 | ' |
Greater than five years, Rate | 4.92% | 4.92% | ' |
Total borrowings, Amount | 939,069 | 560,986 | ' |
Total borrowings, Rate | 2.12% | 3.26% | ' |
FHLB Advances [Member] | ' | ' | ' |
By period to maturity: | ' | ' | ' |
Total borrowings, Amount | 795,028 | 442,602 | ' |
Total borrowings, Rate | 1.75% | 2.77% | ' |
FHLB Repurchase Agreements [Member] | ' | ' | ' |
By period to maturity: | ' | ' | ' |
Total borrowings, Amount | 25,639 | 20,351 | ' |
Total borrowings, Rate | 0.39% | 0.88% | ' |
Federal Funds Purchased [Member] | ' | ' | ' |
By period to maturity: | ' | ' | ' |
Total borrowings, Amount | 20,000 | 0 | ' |
Total borrowings, Rate | 0.31% | 0.00% | ' |
Senior Notes [Member] | ' | ' | ' |
By period to maturity: | ' | ' | ' |
Total borrowings, Amount | $98,402 | $98,033 | $100,000 |
Total borrowings, Rate | 5.98% | 5.98% | ' |
Borrowings_and_Senior_Notes_De1
Borrowings and Senior Notes (Details Textual) (USD $) | 0 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||||
Jul. 02, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Feb. 28, 2002 | Sep. 30, 2014 | Sep. 30, 2013 | Jul. 02, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 05, 2014 | Sep. 05, 2014 | Sep. 05, 2014 | Feb. 28, 2002 | Jun. 01, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
repurchase_agreement | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | FHLB Advances [Member] | FHLB Advances [Member] | FHLB Repurchase Agreements [Member] | FHLB Repurchase Agreements [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Sterling Bancorp Trust I [Member] | Trust preferred [Member] | Minimum [Member] | Maximum [Member] | |||||
Line of Credit [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | Sterling Bancorp [Member] | ||||||||||||||||
Line of Credit [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bank pledged mortgages | ' | $1,246,315,000 | $784,422,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increased borrowing capacity by pledging securities | ' | 703,486,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal home loan bank borrowings | ' | 200,000,000 | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long term debt weighted average remaining term | ' | '2 years 6 months 22 days | '3 years 6 months 22 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average interest rates | ' | 4.23% | 4.23% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase agreements maturity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 day | '17 days |
Amount of repurchase agreements | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase agreements | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving line of credit amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000 | ' | ' | ' | ' | ' |
Revolving line of credit balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' |
Required balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' |
Duration of minimum outstanding balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | ' | ' | ' | ' | ' | ' |
Basis spread on one-month LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.25% | ' | ' | ' | ' |
Long-term debt | ' | 939,069,000 | 560,986,000 | ' | ' | 98,402,000 | 98,033,000 | 100,000,000 | 795,028,000 | 442,602,000 | 25,639,000 | 20,351,000 | ' | ' | ' | ' | ' | ' | ' |
Fixed interest rate (percent) | ' | ' | ' | ' | ' | ' | ' | 5.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Private placement discount rate | 1.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost of issuance | ' | ' | ' | ' | ' | 303,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unamortized discount | ' | ' | ' | ' | ' | 1,597,000 | 1,967,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense cost over the life of Senior note | ' | 5.98% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from trust preferred capital securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000,000 | ' | ' | ' |
Stated interest rate (percent) | ' | ' | ' | ' | 8.38% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Junior Subordinated Notes | ' | ' | ' | ' | 25,774,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percent of liquidation amount of securities and accumulated and unpaid interest (percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' |
(Gain) on redemption of Subordinated Debentures | ' | $712,000 | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivatives_Details
Derivatives (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Interest rate caps [Member] | ' | ' |
Summary of derivatives | ' | ' |
Notional amount | $50,000 | $50,000 |
Average maturity (in years) | '2 months 5 days | '1 year 2 months 5 days |
Weighted average fixed rate | 3.75% | 3.75% |
Fair value | 0 | 0 |
3rd party interest rate swap [Member] | ' | ' |
Summary of derivatives | ' | ' |
Notional amount | 50,729 | 54,180 |
Average maturity (in years) | '4 years 10 months 10 days | '5 years 9 months 4 days |
Weighted average fixed rate | 4.20% | 4.22% |
Fair value | 1,096 | 997 |
3rd party interest rate swap [Member] | One Month Libor [Member] | ' | ' |
Summary of derivatives | ' | ' |
Weighted average variable rate | '1 m Libor + 2.44 | '1 m Libor + 2.45 |
Basis spread | 2.44% | 2.45% |
Customer interest rate swap [Member] | ' | ' |
Summary of derivatives | ' | ' |
Notional amount | 50,729 | 54,180 |
Average maturity (in years) | '4 years 10 months 10 days | '5 years 9 months 4 days |
Weighted average fixed rate | 4.20% | 4.22% |
Fair value | ($1,096) | ($997) |
Customer interest rate swap [Member] | One Month Libor [Member] | ' | ' |
Summary of derivatives | ' | ' |
Weighted average variable rate | '1 m Libor + 2.44 | '1 m Libor + 2.45 |
Basis spread | 2.44% | 2.45% |
Derivatives_Details_Textual
Derivatives (Details Textual) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Derivatives | ||
Credit Derivatives [Line Items] | ' | ' |
Amortized cost of investment securities pledged as collateral | $5,034 | ' |
Fair value of investment securities pledged as collateral | 4,836 | ' |
Interest rate caps [Member] | ' | ' |
Credit Derivatives [Line Items] | ' | ' |
Number of interest rate derivatives held | 2 | ' |
Changes in fair value: loss | $0 | $2 |
Interest Rate Cap 1 [Member] | ' | ' |
Credit Derivatives [Line Items] | ' | ' |
Strike price | 3.50% | ' |
Interest Rate Cap 2 [Member] | ' | ' |
Credit Derivatives [Line Items] | ' | ' |
Strike price | 4.00% | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Current tax expense: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | $11,613,000 | $9,146,000 | $5,538,000 |
State | ' | ' | ' | ' | ' | ' | ' | ' | 1,598,000 | 1,549,000 | 685,000 |
Current tax expense | ' | ' | ' | ' | ' | ' | ' | ' | 13,211,000 | 10,695,000 | 6,223,000 |
Deferred tax expense (benefit): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | -2,745,000 | 522,000 | -261,000 |
State | ' | ' | ' | ' | ' | ' | ' | ' | -314,000 | 197,000 | 197,000 |
Deferred tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | -3,059,000 | 719,000 | -64,000 |
Total income tax expense | 6,452,000 | 6,057,000 | 4,588,000 | -6,948,000 | 3,312,000 | 2,833,000 | 2,203,000 | 3,066,000 | 10,152,000 | 11,414,000 | 6,159,000 |
Efftective tax rate reconciliation: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax at Federal statutory rate of 35% | ' | ' | ' | ' | ' | ' | ' | ' | 13,241,000 | 12,833,000 | 9,116,000 |
State income taxes, net of Federal tax benefit | ' | ' | ' | ' | ' | ' | ' | ' | 834,000 | 1,135,000 | 573,000 |
Tax-exempt interest | ' | ' | ' | ' | ' | ' | ' | ' | -3,824,000 | -2,192,000 | -2,448,000 |
BOLI income | ' | ' | ' | ' | ' | ' | ' | ' | -1,110,000 | -699,000 | -718,000 |
Non deductible acquisition costs | ' | ' | ' | ' | ' | ' | ' | ' | 712,000 | 416,000 | 418,000 |
Low income housing tax credits | ' | ' | ' | ' | ' | ' | ' | ' | -165,000 | 0 | 0 |
Other, net | ' | ' | ' | ' | ' | ' | ' | ' | 464,000 | -79,000 | -782,000 |
Effective income tax rate | ' | ' | ' | ' | ' | ' | ' | ' | 26.80% | 31.10% | 23.60% |
Deferred tax assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | 17,272,000 | ' | ' | ' | 11,809,000 | ' | ' | ' | 17,272,000 | 11,809,000 | ' |
Deferred compensation | 649,000 | ' | ' | ' | 798,000 | ' | ' | ' | 649,000 | 798,000 | ' |
Other accrued compensation and benefits | 5,418,000 | ' | ' | ' | 1,497,000 | ' | ' | ' | 5,418,000 | 1,497,000 | ' |
Accrued post retirement expense | 2,705,000 | ' | ' | ' | 1,441,000 | ' | ' | ' | 2,705,000 | 1,441,000 | ' |
Deferred tax assets deferred rent | 0 | ' | ' | ' | 1,059,000 | ' | ' | ' | 0 | 1,059,000 | ' |
Core deposit intangibles | 2,439,000 | ' | ' | ' | 0 | ' | ' | ' | 2,439,000 | 0 | ' |
Other comprehensive income (defined benefits) | 5,777,000 | ' | ' | ' | 7,844,000 | ' | ' | ' | 5,777,000 | 7,844,000 | ' |
Deferred tax assets, other comprehensive loss- Defined benefit plans | 2,371,000 | ' | ' | ' | 2,638,000 | ' | ' | ' | 2,371,000 | 2,638,000 | ' |
Depreciation of premises and equipment | 433,000 | ' | ' | ' | 0 | ' | ' | ' | 433,000 | 0 | ' |
State NOL carryforward | 1,431,000 | ' | ' | ' | 0 | ' | ' | ' | 1,431,000 | 0 | ' |
Other | 3,511,000 | ' | ' | ' | 2,172,000 | ' | ' | ' | 3,511,000 | 2,172,000 | ' |
Total deferred tax assets | 42,006,000 | ' | ' | ' | 29,258,000 | ' | ' | ' | 42,006,000 | 29,258,000 | ' |
Deferred tax liabilities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Undistributed earnings of subsidiary not consolidated for tax return purposes (REIT Income) | 9,303,000 | ' | ' | ' | 4,483,000 | ' | ' | ' | 9,303,000 | 4,483,000 | ' |
Deferred tax liability prepaid pension cost | 10,579,000 | ' | ' | ' | 3,758,000 | ' | ' | ' | 10,579,000 | 3,758,000 | ' |
Purchase accounting fair value adjustments | 16,056,000 | ' | ' | ' | 1,057,000 | ' | ' | ' | 16,056,000 | 1,057,000 | ' |
Depreciation of premises and equipment | 0 | ' | ' | ' | 2,686,000 | ' | ' | ' | 0 | 2,686,000 | ' |
Intangibles amortization | 0 | ' | ' | ' | 112,000 | ' | ' | ' | 0 | 112,000 | ' |
Deferred rent | 163,000 | ' | ' | ' | 0 | ' | ' | ' | 163,000 | 0 | ' |
Other | 2,557,000 | ' | ' | ' | 2,207,000 | ' | ' | ' | 2,557,000 | 2,207,000 | ' |
Total deferred tax liabilities | 38,658,000 | ' | ' | ' | 14,303,000 | ' | ' | ' | 38,658,000 | 14,303,000 | ' |
Net deferred tax asset | 3,348,000 | ' | ' | ' | 14,955,000 | ' | ' | ' | 3,348,000 | 14,955,000 | ' |
Cumulative amount of deferred tax liability not recognized | 9,313,000 | ' | ' | ' | 0 | ' | ' | ' | 9,313,000 | 0 | ' |
Provision for federal income tax | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' |
Unrecorded deferred tax liability | $3,260,000 | ' | ' | ' | $0 | ' | ' | ' | $3,260,000 | $0 | ' |
Employee_Benefit_Plans_And_Sto2
Employee Benefit Plans And Stock-Based Compensation Plans (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Pension Plans [Member] | ' | ' | ' |
Changes in projected benefit obligation: | ' | ' | ' |
Beginning of year | $31,705 | $35,471 | ' |
Obligations assumed from Legacy Sterling | 52,296 | 0 | ' |
Service cost | 0 | 0 | 0 |
Interest cost | 2,779 | 1,452 | 1,501 |
Actuarial loss (gain) | 9,460 | -3,672 | ' |
Partial settlement | -44,774 | 0 | ' |
Benefits and distributions paid | -1,748 | -1,546 | ' |
End of year | 49,718 | 31,705 | 35,471 |
Changes in fair value of plan assets: | ' | ' | ' |
Beginning of year | 35,417 | 32,657 | ' |
Fair value of the Legacy Sterling Plan assets at October 31, 2013 | 71,538 | 0 | ' |
Actual gain (loss) on plan assets | 8,137 | 4,306 | ' |
Employer contributions | 0 | 0 | ' |
Partial settlement | -44,774 | 0 | ' |
Benefits and distributions paid | -1,748 | -1,546 | ' |
End of year | 68,570 | 35,417 | 32,657 |
Funded status at end of year | 18,852 | 3,712 | ' |
Other Post retirement Benefit Plans [Member] | ' | ' | ' |
Changes in projected benefit obligation: | ' | ' | ' |
Beginning of year | 3,302 | 3,103 | ' |
Obligations assumed from Legacy Sterling | 9,644 | 0 | ' |
Service cost | 51 | 48 | 46 |
Interest cost | 683 | 134 | 125 |
Actuarial loss (gain) | 79 | 177 | ' |
Amendments | -2,485 | 0 | ' |
Benefits and distributions paid | -284 | -160 | ' |
End of year | 10,990 | 3,302 | 3,103 |
Changes in fair value of plan assets: | ' | ' | ' |
Beginning of year | 0 | 0 | ' |
Employer contributions | 284 | 160 | ' |
Plan participants' contributions | 0 | 0 | ' |
Benefits and distributions paid | -284 | -160 | ' |
End of year | 0 | 0 | 0 |
Funded status at end of year | ($10,990) | ($3,302) | ' |
Employee_Benefit_Plans_And_Sto3
Employee Benefit Plans And Stock-Based Compensation Plans (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Pension Plans [Member] | Pension Plans [Member] | Pension Plans [Member] | Other Post retirement Benefit Plans [Member] | Other Post retirement Benefit Plans [Member] | Other Post retirement Benefit Plans [Member] | ||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Service cost | ' | $0 | $0 | $0 | $51 | $48 | $46 |
Interest cost | ' | 2,779 | 1,452 | 1,501 | 683 | 134 | 125 |
Expected return on plan assets | ' | -3,380 | -2,462 | -2,125 | ' | ' | ' |
Amortization of unrecognized actuarial (gain) loss | ' | 236 | 2,062 | 2,316 | -45 | 2 | -25 |
Partial settlement charge | 2,700 | 3,922 | 0 | 0 | ' | ' | ' |
Amortization of transition obligation | ' | ' | ' | ' | 34 | 24 | 24 |
Amortization of prior service cost | ' | ' | ' | ' | 270 | 47 | 47 |
Curtailment (gain) | ' | ' | ' | ' | -2,485 | 0 | 0 |
Total | ' | $3,557 | $1,052 | $1,692 | ($1,492) | $255 | $217 |
Employee_Benefit_Plans_And_Sto4
Employee Benefit Plans And Stock-Based Compensation Plans (Details 2) (Pension Plans [Member], USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Pension Plans [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Unrecognized actuarial loss | ($6,024) | ($5,479) |
Deferred tax asset | 2,556 | 2,225 |
Net amount recognized in accumulated other comprehensive income (loss) | ($3,468) | ($3,254) |
Recovered_Sheet1
Employee Benefit Plans and Stock-Based Compensation Plans (Details 3) (Pension Plans [Member]) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Pension Plans [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Projected benefit obligation, Discount rate | 4.50% | 5.20% |
Net periodic pension cost, Discount rate | 4.50% | 5.20% |
Net periodic pension cost, Long-term rate of return on plan assets | 4.00% | 7.75% |
Employee_Benefit_Plans_And_Sto5
Employee Benefit Plans And Stock-Based Compensation Plans (Details 4) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Pension Plans [Member] | ' |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | ' |
2015 | $726 |
2016 | 902 |
2017 | 1,079 |
2018 | 1,625 |
2019 | 1,851 |
2020 - 2024 | 13,461 |
Other Post retirement Benefit Plans [Member] | ' |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | ' |
2015 | 660 |
2016 | 231 |
2017 | 271 |
2018 | 319 |
2019 | 373 |
2020 - 2024 | $2,370 |
Employee_Benefit_Plans_And_Sto6
Employee Benefit Plans And Stock-Based Compensation Plans (Details 5) (Pension Plans [Member], USD $) | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | $68,570 | $35,417 | $32,657 |
Fair Value Measurements [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 68,521 | 35,417 | ' |
Quoted Prices in Active markets for Identical Assets Level 1 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
Significant Other Observable Inputs Level 2 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 68,521 | 35,417 | ' |
Significant Unobservable Inputs Level 3 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
Total Equity [Member] | Fair Value Measurements [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | ' | 24,475 | ' |
Total Equity [Member] | Quoted Prices in Active markets for Identical Assets Level 1 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | ' | 0 | ' |
Total Equity [Member] | Significant Other Observable Inputs Level 2 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | ' | 24,475 | ' |
Total Equity [Member] | Significant Unobservable Inputs Level 3 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | ' | 0 | ' |
Large U.S. equity [Member] | Fair Value Measurements [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | ' | 16,378 | ' |
Large U.S. equity [Member] | Quoted Prices in Active markets for Identical Assets Level 1 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | ' | 0 | ' |
Large U.S. equity [Member] | Significant Other Observable Inputs Level 2 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | ' | 16,378 | ' |
Large U.S. equity [Member] | Significant Unobservable Inputs Level 3 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | ' | 0 | ' |
Small Mid U.S. equity [Member] | Fair Value Measurements [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | ' | 4,443 | ' |
Small Mid U.S. equity [Member] | Quoted Prices in Active markets for Identical Assets Level 1 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | ' | 0 | ' |
Small Mid U.S. equity [Member] | Significant Other Observable Inputs Level 2 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | ' | 4,443 | ' |
Small Mid U.S. equity [Member] | Significant Unobservable Inputs Level 3 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | ' | 0 | ' |
International Equity [Member] | Fair Value Measurements [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | ' | 3,654 | ' |
International Equity [Member] | Quoted Prices in Active markets for Identical Assets Level 1 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | ' | 0 | ' |
International Equity [Member] | Significant Other Observable Inputs Level 2 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | ' | 3,654 | ' |
International Equity [Member] | Significant Unobservable Inputs Level 3 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | ' | 0 | ' |
Total Balanced Asset Allocation [Member] | Fair Value Measurements [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | ' | 1,691 | ' |
Total Balanced Asset Allocation [Member] | Quoted Prices in Active markets for Identical Assets Level 1 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | ' | 0 | ' |
Total Balanced Asset Allocation [Member] | Significant Other Observable Inputs Level 2 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | ' | 1,691 | ' |
Total Balanced Asset Allocation [Member] | Significant Unobservable Inputs Level 3 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | ' | 0 | ' |
Total Fixed Income [Member] | Fair Value Measurements [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | ' | 9,251 | ' |
Total Fixed Income [Member] | Quoted Prices in Active markets for Identical Assets Level 1 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | ' | 0 | ' |
Total Fixed Income [Member] | Significant Other Observable Inputs Level 2 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | ' | 9,251 | ' |
Total Fixed Income [Member] | Significant Unobservable Inputs Level 3 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | ' | 0 | ' |
High yield bond [Member] | Fair Value Measurements [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | ' | 1,018 | ' |
High yield bond [Member] | Quoted Prices in Active markets for Identical Assets Level 1 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | ' | 0 | ' |
High yield bond [Member] | Significant Other Observable Inputs Level 2 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | ' | 1,018 | ' |
High yield bond [Member] | Significant Unobservable Inputs Level 3 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | ' | 0 | ' |
Intermediate term bond [Member] | Fair Value Measurements [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 8,629 | 8,233 | ' |
Intermediate term bond [Member] | Quoted Prices in Active markets for Identical Assets Level 1 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
Intermediate term bond [Member] | Significant Other Observable Inputs Level 2 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 8,629 | 8,233 | ' |
Intermediate term bond [Member] | Significant Unobservable Inputs Level 3 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
Fixed Income Funds Long Term Bond [Member] | Fair Value Measurements [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 59,892 | ' | ' |
Fixed Income Funds Long Term Bond [Member] | Quoted Prices in Active markets for Identical Assets Level 1 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 0 | ' | ' |
Fixed Income Funds Long Term Bond [Member] | Significant Other Observable Inputs Level 2 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 59,892 | ' | ' |
Fixed Income Funds Long Term Bond [Member] | Significant Unobservable Inputs Level 3 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | $0 | ' | ' |
Employee_Benefit_Plans_And_Sto7
Employee Benefit Plans And Stock-Based Compensation Plans (Details 6) (Pension Plans [Member]) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Actual plan asset allocations | 100.00% | 100.00% |
Weighted average expected rate of return | 4.00% | ' |
Total Equity [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Actual plan asset allocations | 0.00% | 65.00% |
Target allocation 2014 | 0.00% | ' |
Weighted average expected rate of return | 0.00% | ' |
Large U.S. equity [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Actual plan asset allocations | 0.00% | 44.00% |
Weighted average expected rate of return | 0.00% | ' |
Small Mid U.S. equity [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Actual plan asset allocations | 0.00% | 11.00% |
Weighted average expected rate of return | 0.00% | ' |
International Equity [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Actual plan asset allocations | 0.00% | 10.00% |
Weighted average expected rate of return | 0.00% | ' |
Total Balanced Asset Allocation [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Actual plan asset allocations | 0.00% | 5.00% |
Weighted average expected rate of return | 0.00% | ' |
Total Fixed Income [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Actual plan asset allocations | 100.00% | 30.00% |
Target allocation range 2014, minimum | 95.00% | ' |
Target allocation range 2014, maximum | 1.00% | ' |
Weighted average expected rate of return | 4.00% | ' |
High yield bond [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Actual plan asset allocations | 0.00% | 3.00% |
Weighted average expected rate of return | 0.00% | ' |
Intermediate term bond [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Actual plan asset allocations | 13.00% | 27.00% |
Weighted average expected rate of return | 0.00% | ' |
Fixed Income Funds Long Term Bond [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Actual plan asset allocations | 87.00% | 0.00% |
Weighted average expected rate of return | 0.00% | ' |
Cash [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Actual plan asset allocations | 0.00% | 0.00% |
Target allocation range 2014, minimum | 0.00% | ' |
Target allocation range 2014, maximum | 5.00% | ' |
Weighted average expected rate of return | 0.00% | ' |
Employee_Benefit_Plans_And_Sto8
Employee Benefit Plans And Stock-Based Compensation Plans (Details 7) (Other Post retirement Benefit Plans [Member]) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Medical trend rate next year | 4.50% | 4.50% |
Ultimate trend rate | 4.50% | 4.50% |
Discount rate | ' | 4.20% |
Discount rate used to value periodic cost | ' | 4.10% |
Minimum [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Discount rate | 3.50% | ' |
Discount rate used to value periodic cost | 3.50% | ' |
Maximum [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Discount rate | 4.27% | ' |
Discount rate used to value periodic cost | 4.20% | ' |
Employee_Benefit_Plans_And_Sto9
Employee Benefit Plans And Stock-Based Compensation Plans (Details 8) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | ||
Shares available for grant (in shares) | ' | |
Beginning balance | 2,066,184 | |
Grants | -719,674 | [1] |
Stock awards vested | 0 | |
Forfeited | 439,594 | |
Canceled/expired | -347,286 | |
Ending balance | 3,350,761 | |
Stock options outstanding - Number of shares | ' | |
Beginning balance | 2,114,509 | |
Grants | 324,862 | [1] |
Exercised | -507,955 | |
Forfeited | -375,235 | |
Ending balance | 1,660,333 | |
Exercisable at September 30, 2014 | 951,492 | |
Stock options outstanding - Weighted average exercise price (in usd per share) | ' | |
Beginning balance | $10.71 | |
Grants | $11.45 | [1] |
Exercised | $11.29 | |
Forfeited | $12.24 | |
Ending balance | $10.55 | |
Exercisable at September 30, 2014 | $11.11 | |
Recognition and Retention Plan [Member] | Non-vested Stock Awards and Performance Units [Member] | ' | |
Non-vested stock awards/stock units outstanding - Number of shares | ' | |
Beginning balance | 209,697 | |
Grants | 115,145 | [1] |
Stock awards vested | -69,211 | |
Forfeited | -18,841 | |
Ending balance | 588,754 | |
Non-vested stock awards/stock units outstanding - Weighted average grant date fair value (in usd per share) | ' | |
Beginning balance | $8.73 | |
Grants | $11.53 | [1] |
Stock awards vested | $9.51 | |
Forfeited | ($9.18) | |
Ending balance | $10.99 | |
2014 Stock Incentive Plan [Member] | ' | |
Shares available for grant (in shares) | ' | |
2014 Stock Incentive Plan | 3,400,000 | |
2012 Stock Plan [Member] | ' | |
Shares available for grant (in shares) | ' | |
2012 Stock Incentive Plan termination | -566,554 | |
Stock Compensation Grants associated with legacy Sterling Merger [Member] | ' | |
Shares available for grant (in shares) | ' | |
Grants | -921,503 | [1] |
Stock options outstanding - Number of shares | ' | |
Grants | 104,152 | [1] |
Stock options outstanding - Weighted average exercise price (in usd per share) | ' | |
Grants | $14.25 | [1] |
Stock Compensation Grants associated with legacy Sterling Merger [Member] | Recognition and Retention Plan [Member] | Non-vested Stock Awards and Performance Units [Member] | ' | |
Non-vested stock awards/stock units outstanding - Number of shares | ' | |
Grants | 351,964 | [1] |
Non-vested stock awards/stock units outstanding - Weighted average grant date fair value (in usd per share) | ' | |
Grants | $11.72 | [1] |
[1] | (1) Reflects certain non-vested stock awards that count as 3.5 shares or 3.6 shares for each share granted. |
Recovered_Sheet2
Employee Benefit Plans And Stock-Based Compensation Plans (Details 9) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Stock Option Plan [Member] | $6.71 to $9.00 [Member] | $9.28 to $12.64 [Member] | $12.84 to $13.92 [Member] | |||
Stock Option Plan [Member] | Stock Option Plan [Member] | Stock Option Plan [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' | ' | ' |
Range of exercise price, lower range limit (in dollars per share) | ' | ' | ' | $6.71 | $9.28 | $12.84 |
Range of exercise price, upper range limit (in dollars per share) | ' | ' | ' | $9 | $12.64 | $13.92 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, End of Period [Abstract] | ' | ' | ' | ' | ' | ' |
Outstanding, Number of stock options | 0 | 549,262 | 1,660,333 | 689,711 | 787,243 | 183,379 |
Outstanding, Weighted-average exercise price (in usd per share) | ' | ' | $10.55 | $8.38 | $11.73 | $13.68 |
Outstanding, Weighted-average life (in years) | ' | ' | '5 years 9 months 26 days | '7 years 6 months 26 days | '5 years 0 months 8 days | '2 years 8 months 9 days |
Exercisable, Number of stock options | ' | ' | 951,492 | 322,148 | 445,965 | 183,379 |
Exercisable, Weighted-average exercise price (in usd per share) | ' | ' | $11.11 | $8.36 | $12.05 | $13.68 |
Exercisable, Weighted-average life (in years) | ' | ' | '5 years 9 months 26 days | '7 years 6 months 26 days | '5 years 0 months 8 days | '2 years 8 months 9 days |
Recovered_Sheet3
Employee Benefit Plans And Stock-Based Compensation Plans (Details 10) (Stock Options [Member], Stock Option Plan [Member]) | 12 Months Ended | |||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Stock Options [Member] | Stock Option Plan [Member] | ' | ' | ' | |||
Fair value of options granted determined using weighted-average assumptions as grant date | ' | ' | ' | |||
Risk-free interest rate | 1.80% | 1.00% | 1.40% | |||
Expected stock price volatility | 26.40% | 40.80% | 40.00% | |||
Dividend yield | 2.00% | [1] | 2.60% | [1] | 3.00% | [1] |
Expected term in years | '5 years 8 months 1 day | '5 years 9 months | '5 years 9 months 26 days | |||
[1] | Represents the approximate annualized cash dividend rate paid with respect to a share of common stock at or near the grant date. |
Recovered_Sheet4
Employee Benefit Plans and Stock-Based Compensation Plans (Details 11) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | $3,409 | $1,742 | $797 |
Stock-based compensation expense, income tax benefit | 914 | 542 | 188 |
Unrecognized stock-based compensation, stock options | 962 | ' | ' |
Unrecognized stock-based compensation, non-vested stock awards/stock units | 4,013 | ' | ' |
Total unrecognized stock-based compensation expense | 4,975 | ' | ' |
Stock Options [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | 901 | 695 | 521 |
Non-vested Stock Awards and Performance Units [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | $2,508 | $1,047 | $276 |
Recovered_Sheet5
Employee Benefit Plans And Stock-Based Compensation Plans (Details Textual) (USD $) | 0 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Oct. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Jan. 31, 2004 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Feb. 04, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Feb. 28, 2010 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Feb. 04, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Oct. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |||||
Share Option Plan Two Thousand Four [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | 2012 Stock Plan [Member] | Employee Savings Plan [Member] | Employee Savings Plan [Member] | Employee Savings Plan [Member] | Employee Stock Ownership Plan [Member] | Employee Stock Ownership Plan [Member] | Employee Stock Ownership Plan [Member] | Employee Stock Ownership Plan [Member] | Employee Stock Ownership Plan [Member] | 2014 Stock Incentive Plan [Member] | Recognition and Retention Plan [Member] | Stock Option Plan [Member] | Stock Option Plan [Member] | Stock Option Plan [Member] | Stock Option Plan [Member] | Restricted Stock [Member] | Restricted Stock Units (RSUs) [Member] | Non-vested Stock Awards and Performance Units [Member] | Non-vested Stock Awards and Performance Units [Member] | Stock Options [Member] | Pension Plans [Member] | Pension Plans [Member] | Employee Stock Ownership Plan (ESOP) loan repayment [Member] | Sterling Bancorp (Legacy) | Sterling Bancorp (Legacy) | Sterling Bancorp (Legacy) | Sterling Bancorp (Legacy) | Sterling Bancorp (Legacy) | Sterling Bancorp (Legacy) | Stock Compensation Grants associated with legacy Sterling Merger [Member] | Stock Compensation Grants associated with legacy Sterling Merger [Member] | Stock Compensation Grants associated with legacy Sterling Merger [Member] | Stock Compensation Grants associated with legacy Sterling Merger [Member] | |||||||||
Minimum [Member] | Maximum [Member] | Recognition and Retention Plan [Member] | Maximum [Member] | Sterling Bancorp 2013 Employment Inducement Award Plan [Member] | Fully Vested legacy Sterling options [Member] | Restricted Stock Units (RSUs) [Member] | legacy Sterling/ National Bank employees' Retirement Plan [Member] | Stock Options [Member] | Non-vested Stock Awards and Performance Units [Member] | Restricted Stock Units (RSUs) [Member] | |||||||||||||||||||||||||||||||||||
2012 Stock Plan [Member] | Recognition and Retention Plan [Member] | Recognition and Retention Plan [Member] | |||||||||||||||||||||||||||||||||||||||||||
Schedule of Employee Benefit Plans And Stock-Based Compensation Plans [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Increase of accrued benefit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.40% | ' | ' | ' | ' | ||||
Partial settlement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($44,774,000) | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Unrecognized acturaial loss and prior service cost expected to be amortized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Net periodic pension cost, Long-term rate of return on plan assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.00% | 7.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Pension plan assets consisting of company common stock (in shares) | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Health care cost trend rate | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Maximum contribution by employee, percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Maximum contribution by employer, percent of employee contribution | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Maximum annual contribution per employee, percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Savings plan expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,614,000 | 935,000 | 1,029,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Amount borrowed by ESOP | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,987,000 | ' | ' | ' | 5,983,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Number of shares purchased for ESOP with borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 998,650 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Term of loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '20 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Employee stock ownership plan percent automatically vested upon termination | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Cumulative shares in ESOP | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 499,330 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 488,403 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Number of ESPO shares allocated | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,927 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
ESOP expense (net of forfeitures) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 295,000 | 497,000 | 390,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Number of shares authorized | ' | ' | ' | ' | 2,796,220 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Shares remaining that are authorized and available for future grant | ' | 3,350,761 | 2,066,184 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Number of shares granted for each share received | ' | ' | ' | ' | ' | ' | ' | ' | 3.6 | ' | ' | ' | ' | ' | ' | ' | ' | 3.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Number of shares remaining for issuance under the 2012 Plan | ' | ' | ' | ' | ' | ' | ' | ' | 566,554 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Number of shares subject to accelerated vesting | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,533 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Term of contract | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Vesting period for awards | ' | ' | ' | ' | ' | ' | '2 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Grant of share options (in shares) | ' | 324,862 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 107,256 | ' | ' | ' | 29,550 | 11,820 | ' | ' | ' | ' | ' | ' | ' | ' | 95,991 | 104,152 | ' | ' | 104,152 | [1] | ' | ' | ' | ||
Exercise price (in usd per share) | ' | $11.45 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $14.25 | [1] | $14.25 | ' | ' | ||
Awards canceled of forfeited (in shares) | ' | 375,235 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 37,873 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Grants in period, other than options (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 115,145 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | 255,973 | ' | ' | ' | 351,964 | [1] | ' | ||
Weighted average grant date fair value (in usd per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $11.53 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $11.72 | [1] | $11.72 | ||
Intrinsic value of options outstanding | ' | 3,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Intrinsic value of options exercisable | ' | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 651,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Proceeds from stock option exercises | ' | $2,980,000 | $62,000 | $102,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Weighted average fair value of options granted (in usd per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.51 | $2.74 | $2.31 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Weighted-average period total unrecognized compensation cost related to non-vested shares granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year 9 months 26 days | ' | '1 year 7 months 28 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
[1] | (1) Reflects certain non-vested stock awards that count as 3.5 shares or 3.6 shares for each share granted. |
Other_Noninterest_Expense_Deta
Other Non-interest Expense (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Other Income and Expenses [Abstract] | ' | ' | ' |
Advertising and promotion | $2,358 | $1,502 | $1,849 |
Professional fees | 6,913 | 3,393 | 4,247 |
Data and check processing | 3,439 | 2,520 | 2,802 |
ATM/debit card expense | 1,249 | 1,722 | 1,711 |
Insurance & surety bond premium | 2,703 | 1,199 | 1,220 |
Charge for asset write-downs, severance and retention | 22,976 | 0 | 0 |
Charge for banking systems conversion | 3,249 | 0 | 0 |
Other | 15,030 | 7,040 | 6,562 |
Total other non-interest expense | $57,917 | $17,376 | $18,391 |
Earnings_Per_Common_Share_Deta
Earnings Per Common Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |||
Computation of basic and diluted earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net income | $16,337 | $15,011 | $10,332 | ($14,002) | $5,329 | $6,376 | $6,529 | $7,020 | $27,678 | $25,254 | $19,888 | |||
Weighted average common shares outstanding for computation of basic EPS (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 80,268,970 | [1] | 43,734,425 | [1] | 38,227,653 | [1] |
Common-equivalent shares due to the dilutive effect of stock options (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 265,073 | [2] | 48,628 | [2] | 20,393 | [2] |
Weighted average common shares for computation of diluted EPS (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 80,534,043 | 43,783,053 | 38,248,046 | |||
Basic (USD per share) | $0.20 | $0.18 | $0.12 | ($0.20) | $0.12 | $0.15 | $0.15 | $0.16 | $0.34 | $0.58 | $0.52 | |||
Diluted (USD per share) | $0.19 | $0.18 | $0.12 | ($0.20) | $0.12 | $0.15 | $0.15 | $0.16 | $0.34 | $0.58 | $0.52 | |||
Antidilutive securities excluded from earnings per share (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 697,475 | 1,786,608 | 1,771,132 | |||
[1] | Includes earned ESOP shares. | |||||||||||||
[2] | Represents incremental shares computed using the treasury stock method. |
Stockholders_Equity_Compliance
Stockholders' Equity - Compliance with Regulatory Capital Requirements (Schedule) (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Sterling Bancorp [Member] | ' | ' |
Tier 1 capital (to risk-weighted assets): | ' | ' |
Tier 1 risk-based capital | $553,117 | ' |
Total capital (to risk-weighted assets): | ' | ' |
Total risk-based capital | 594,124 | ' |
Sterling National Bank [Member] | ' | ' |
Tier 1 leverage capital (to average assets): | ' | ' |
Tier 1 (core) capital | 636,507 | 363,274 |
Tier 1 (core) capital ratio | 9.34% | 9.33% |
Tier 1 (core) capital required for minimum capital adequacy | 272,542 | 155,670 |
Tier 1 (core) capital required for minimum capital adequacy ratio | 4.00% | 4.00% |
Tier 1 (core) capital required to be well capitalized | 340,677 | 194,587 |
Tier 1 (core) capital required to be well capitalized ratio | 5.00% | 5.00% |
Tier 1 capital (to risk-weighted assets): | ' | ' |
Tier 1 risk-based capital | 636,507 | 363,274 |
Tier 1 risk-based capital ratio | 11.94% | 13.18% |
Tier 1 risk-based capital required for minimum capital adequacy | 213,176 | 110,235 |
Tier 1 risk-based capital required for minimum capital adequacy ratio | 4.00% | 4.00% |
Tier 1 risk-based capital required to be well capitalized | 319,763 | 165,352 |
Tier 1 risk-based capital required to be well capitalized ratio | 6.00% | 6.00% |
Total capital (to risk-weighted assets): | ' | ' |
Total risk-based capital | 677,514 | 392,376 |
Total risk-based capital ratio | 12.71% | 14.24% |
Total risk-based capital required for minimum capital adequacy | 426,351 | 220,469 |
Total risk-based capital required for minimum capital adequacy ratio | 8.00% | 8.00% |
Total risk-based capital required to be well capitalized | 532,939 | 275,587 |
Total risk-based capital required to be well capitalized ratio | 10.00% | 10.00% |
Sterling Bancorp [Member] | ' | ' |
Tier 1 leverage capital (to average assets): | ' | ' |
Tier 1 (core) capital | 553,117 | ' |
Tier 1 (core) capital ratio | 8.12% | ' |
Tier 1 (core) capital required for minimum capital adequacy | 272,385 | ' |
Tier 1 (core) capital required for minimum capital adequacy ratio | 4.00% | ' |
Tier 1 (core) capital required to be well capitalized | 340,481 | ' |
Tier 1 (core) capital required to be well capitalized ratio | 5.00% | ' |
Tier 1 capital (to risk-weighted assets): | ' | ' |
Tier 1 risk-based capital | 553,117 | ' |
Tier 1 risk-based capital ratio | 10.33% | ' |
Tier 1 risk-based capital required for minimum capital adequacy | 214,102 | ' |
Tier 1 risk-based capital required for minimum capital adequacy ratio | 4.00% | ' |
Tier 1 risk-based capital required to be well capitalized | 321,153 | ' |
Tier 1 risk-based capital required to be well capitalized ratio | 6.00% | ' |
Total capital (to risk-weighted assets): | ' | ' |
Total risk-based capital | 594,124 | ' |
Total risk-based capital ratio | 11.10% | ' |
Total risk-based capital required for minimum capital adequacy | 428,204 | ' |
Total risk-based capital required for minimum capital adequacy ratio | 8.00% | ' |
Total risk-based capital required to be well capitalized | $535,254 | ' |
Total risk-based capital required to be well capitalized ratio | 10.00% | ' |
Stockholders_Equity_Reconcilia
Stockholders' Equity - Reconciliation of Stockholders' Equity to Bank Regulatory Capital (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | Sterling Bancorp [Member] | Sterling Bancorp [Member] | Sterling National Bank [Member] | Sterling National Bank [Member] | ||||
Reconciliation of Stockholders' Equity To Bank Regulatory Capital [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Total GAAP stockholders’ equity | $961,138 | $482,866 | $491,122 | $431,134 | $961,138 | $482,866 | $1,011,973 | $516,281 |
Disallowed goodwill and other intangible assets | ' | ' | ' | ' | -419,327 | ' | -386,766 | -168,122 |
Net unrealized loss on available for sale securities | ' | ' | ' | ' | 7,815 | ' | 7,809 | 11,455 |
Disallowed servicing asset | ' | ' | ' | ' | -153 | ' | -153 | -198 |
Net actuarial loss on defined benefit pension plans | ' | ' | ' | ' | 3,644 | ' | 3,644 | 3,858 |
Tier 1 risk-based capital | ' | ' | ' | ' | 553,117 | ' | 636,507 | 363,274 |
Allowance for loan losses and off-balance sheet commitments | 40,612 | 28,877 | 28,282 | 27,917 | 41,007 | ' | 41,007 | 29,102 |
Total risk-based capital | ' | ' | ' | ' | $594,124 | ' | $677,514 | $392,376 |
Stockholders_Equity_Narrative_
Stockholders' Equity (Narrative) (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Class of Stock [Line Items] | ' | ' | ' |
Aggregate dividend capacity without prior regulatory approval | 47,879,000 | ' | ' |
Shares available for repurchase program | 776,713 | ' | ' |
Sterling Bancorp [Member] | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' |
Shares repurchased under repurchase program | 0 | 0 | 0 |
Sterling National Bank [Member] | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' |
Liquidation account | 13,300,000 | ' | ' |
OffBalanceSheet_Financial_Inst2
Off-Balance-Sheet Financial Instruments (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Loan origination commitments [Member] | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' |
Lending-related instruments | $213,793 | $171,032 |
Unused lines of credit [Member] | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' |
Lending-related instruments | 306,482 | 207,201 |
Letters of credit [Member] | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' |
Lending-related instruments | $97,468 | $35,052 |
OffBalanceSheet_Financial_Inst3
Off-Balance-Sheet Financial Instruments (Details Textual) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' |
Assets secured by other collateral | $34,687 | ' |
Letters of credit [Member] | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' |
Lending-related instruments | 97,468 | 35,052 |
Assets secured by cash as collateral | $21,756 | ' |
Commitment_and_Contingencies_D
Commitment and Contingencies (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Future minimum rental payments due under non-cancelable operating leases | ' | ' | ' |
2014 | $8,984 | ' | ' |
2015 | 8,517 | ' | ' |
2016 | 7,690 | ' | ' |
2017 | 7,702 | ' | ' |
2018 | 6,386 | ' | ' |
2019 and thereafter | 27,012 | ' | ' |
Future minimum rental payments | 66,291 | ' | ' |
Rent expense | $7,893 | $3,340 | $2,952 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details 1) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Investment securities | ' | ' |
Securities available for sale | $1,110,813 | $954,393 |
Fair Value Measurements [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Mortgage-backed securities-residential | ' | ' |
Mortgage-backed securities-residential | 591,850 | 449,183 |
Investment securities | ' | ' |
Total investment securities available for sale | 518,963 | 505,210 |
Securities available for sale | 1,110,813 | 954,393 |
Interest rate caps and swaps | ' | -997 |
Total Assets | 1,111,909 | 955,390 |
Swaps | 1,096 | 997 |
Total Liabilities | 1,096 | 997 |
Fair Value Measurements [Member] | Agency-backed [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Mortgage-backed securities-residential | ' | ' |
Mortgage-backed securities-residential | 477,705 | 282,529 |
Fair Value Measurements [Member] | CMO/Other MBS [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Mortgage-backed securities-residential | ' | ' |
Mortgage-backed securities-residential | 111,276 | 163,041 |
Fair Value Measurements [Member] | Privately issued collateralized mortgage obligations [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Mortgage-backed securities-residential | ' | ' |
Mortgage-backed securities-residential | 2,869 | 3,613 |
Fair Value Measurements [Member] | Federal agencies [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Investment securities | ' | ' |
Total investment securities available for sale | 152,814 | 261,547 |
Fair Value Measurements [Member] | Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Investment securities | ' | ' |
Total investment securities available for sale | 192,839 | 114,933 |
Fair Value Measurements [Member] | US States and Political Subdivisions Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Investment securities | ' | ' |
Total investment securities available for sale | 134,898 | 128,730 |
Fair Value Measurements [Member] | Trust preferred [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Investment securities | ' | ' |
Total investment securities available for sale | 38,412 | ' |
Quoted Prices in Active markets for Identical Assets Level 1 [Member] | ' | ' |
Investment securities | ' | ' |
Securities available for sale | 0 | 0 |
Interest rate caps and swaps | 0 | 0 |
Swaps | ' | 0 |
Quoted Prices in Active markets for Identical Assets Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Mortgage-backed securities-residential | ' | ' |
Mortgage-backed securities-residential | 0 | 0 |
Investment securities | ' | ' |
Total investment securities available for sale | 0 | 0 |
Securities available for sale | 0 | 0 |
Interest rate caps and swaps | 0 | 0 |
Total Assets | 0 | 0 |
Swaps | 0 | 0 |
Total Liabilities | 0 | 0 |
Quoted Prices in Active markets for Identical Assets Level 1 [Member] | Agency-backed [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Mortgage-backed securities-residential | ' | ' |
Mortgage-backed securities-residential | 0 | 0 |
Quoted Prices in Active markets for Identical Assets Level 1 [Member] | CMO/Other MBS [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Mortgage-backed securities-residential | ' | ' |
Mortgage-backed securities-residential | 0 | 0 |
Quoted Prices in Active markets for Identical Assets Level 1 [Member] | Privately issued collateralized mortgage obligations [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Mortgage-backed securities-residential | ' | ' |
Mortgage-backed securities-residential | 0 | 0 |
Quoted Prices in Active markets for Identical Assets Level 1 [Member] | Federal agencies [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Investment securities | ' | ' |
Total investment securities available for sale | 0 | 0 |
Quoted Prices in Active markets for Identical Assets Level 1 [Member] | Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Investment securities | ' | ' |
Total investment securities available for sale | 0 | 0 |
Quoted Prices in Active markets for Identical Assets Level 1 [Member] | US States and Political Subdivisions Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Investment securities | ' | ' |
Total investment securities available for sale | 0 | 0 |
Quoted Prices in Active markets for Identical Assets Level 1 [Member] | Trust preferred [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Investment securities | ' | ' |
Total investment securities available for sale | 0 | ' |
Significant Other Observable Inputs Level 2 [Member] | ' | ' |
Investment securities | ' | ' |
Securities available for sale | 1,110,813 | 950,780 |
Interest rate caps and swaps | -1,096 | ' |
Significant Other Observable Inputs Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Mortgage-backed securities-residential | ' | ' |
Mortgage-backed securities-residential | 588,981 | 445,570 |
Investment securities | ' | ' |
Total investment securities available for sale | 518,963 | 505,210 |
Securities available for sale | 1,107,944 | 950,780 |
Interest rate caps and swaps | -1,096 | -997 |
Total Assets | 1,109,040 | 951,777 |
Swaps | 1,096 | 997 |
Total Liabilities | 1,096 | 997 |
Significant Other Observable Inputs Level 2 [Member] | Agency-backed [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Mortgage-backed securities-residential | ' | ' |
Mortgage-backed securities-residential | 477,705 | 282,529 |
Significant Other Observable Inputs Level 2 [Member] | CMO/Other MBS [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Mortgage-backed securities-residential | ' | ' |
Mortgage-backed securities-residential | 111,276 | 163,041 |
Significant Other Observable Inputs Level 2 [Member] | Privately issued collateralized mortgage obligations [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Mortgage-backed securities-residential | ' | ' |
Mortgage-backed securities-residential | 0 | 0 |
Significant Other Observable Inputs Level 2 [Member] | Federal agencies [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Investment securities | ' | ' |
Total investment securities available for sale | 152,814 | 261,547 |
Significant Other Observable Inputs Level 2 [Member] | Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Investment securities | ' | ' |
Total investment securities available for sale | 192,839 | 114,933 |
Significant Other Observable Inputs Level 2 [Member] | US States and Political Subdivisions Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Investment securities | ' | ' |
Total investment securities available for sale | 134,898 | 128,730 |
Significant Other Observable Inputs Level 2 [Member] | Trust preferred [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Investment securities | ' | ' |
Total investment securities available for sale | 38,412 | ' |
Significant Unobservable Inputs Level 3 [Member] | ' | ' |
Investment securities | ' | ' |
Securities available for sale | 0 | 3,613 |
Interest rate caps and swaps | 0 | 0 |
Swaps | ' | 0 |
Significant Unobservable Inputs Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Mortgage-backed securities-residential | ' | ' |
Mortgage-backed securities-residential | 2,869 | 3,613 |
Investment securities | ' | ' |
Total investment securities available for sale | 0 | 0 |
Securities available for sale | 2,869 | 3,613 |
Interest rate caps and swaps | 0 | 0 |
Total Assets | 2,869 | 3,613 |
Swaps | 0 | 0 |
Total Liabilities | 0 | 0 |
Significant Unobservable Inputs Level 3 [Member] | Agency-backed [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Mortgage-backed securities-residential | ' | ' |
Mortgage-backed securities-residential | 0 | 0 |
Significant Unobservable Inputs Level 3 [Member] | CMO/Other MBS [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Mortgage-backed securities-residential | ' | ' |
Mortgage-backed securities-residential | 0 | 0 |
Significant Unobservable Inputs Level 3 [Member] | Privately issued collateralized mortgage obligations [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Mortgage-backed securities-residential | ' | ' |
Mortgage-backed securities-residential | 2,869 | 3,613 |
Significant Unobservable Inputs Level 3 [Member] | Federal agencies [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Investment securities | ' | ' |
Total investment securities available for sale | 0 | 0 |
Significant Unobservable Inputs Level 3 [Member] | Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Investment securities | ' | ' |
Total investment securities available for sale | 0 | 0 |
Significant Unobservable Inputs Level 3 [Member] | US States and Political Subdivisions Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Investment securities | ' | ' |
Total investment securities available for sale | 0 | 0 |
Significant Unobservable Inputs Level 3 [Member] | Trust preferred [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Investment securities | ' | ' |
Total investment securities available for sale | $0 | ' |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Quoted Prices in Active markets for Identical Assets Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Loans, net | $0 | $0 |
Significant Other Observable Inputs Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Loans, net | 0 | 0 |
Significant Unobservable Inputs Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Loans, net | 4,758,366 | 2,422,824 |
Impaired [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value Measurements [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Loans, net | 3,636 | 6,013 |
Impaired [Member] | Fair Value, Measurements, Nonrecurring [Member] | Quoted Prices in Active markets for Identical Assets Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Loans, net | 0 | 0 |
Impaired [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Other Observable Inputs Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Loans, net | 0 | 0 |
Impaired [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Loans, net | 3,636 | 6,013 |
Impaired [Member] | Commercial Real Estate [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value Measurements [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Loans, net | 1,463 | 3,672 |
Impaired [Member] | Commercial Real Estate [Member] | Fair Value, Measurements, Nonrecurring [Member] | Quoted Prices in Active markets for Identical Assets Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Loans, net | 0 | 0 |
Impaired [Member] | Commercial Real Estate [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Other Observable Inputs Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Loans, net | 0 | 0 |
Impaired [Member] | Commercial Real Estate [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Loans, net | 1,463 | 3,672 |
Impaired [Member] | Commercial & industrial | Fair Value, Measurements, Nonrecurring [Member] | Fair Value Measurements [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Loans, net | ' | 500 |
Impaired [Member] | Commercial & industrial | Fair Value, Measurements, Nonrecurring [Member] | Quoted Prices in Active markets for Identical Assets Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Loans, net | ' | 0 |
Impaired [Member] | Commercial & industrial | Fair Value, Measurements, Nonrecurring [Member] | Significant Other Observable Inputs Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Loans, net | ' | 0 |
Impaired [Member] | Commercial & industrial | Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Loans, net | ' | 500 |
Impaired [Member] | Acquisition development and construction [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value Measurements [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Loans, net | 2,173 | 1,839 |
Impaired [Member] | Acquisition development and construction [Member] | Fair Value, Measurements, Nonrecurring [Member] | Quoted Prices in Active markets for Identical Assets Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Loans, net | 0 | 0 |
Impaired [Member] | Acquisition development and construction [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Other Observable Inputs Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Loans, net | 0 | 0 |
Impaired [Member] | Acquisition development and construction [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Loans, net | 2,173 | 1,839 |
Impaired [Member] | Consumer loans [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value Measurements [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Loans, net | ' | 2 |
Impaired [Member] | Consumer loans [Member] | Fair Value, Measurements, Nonrecurring [Member] | Quoted Prices in Active markets for Identical Assets Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Loans, net | ' | 0 |
Impaired [Member] | Consumer loans [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Other Observable Inputs Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Loans, net | ' | 0 |
Impaired [Member] | Consumer loans [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Loans, net | ' | $2 |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 3) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | Significant Unobservable Inputs Level 3 [Member] | Significant Unobservable Inputs Level 3 [Member] | Market Approach Valuation Technique [Member] | Impaired [Member] | Impaired [Member] | Impaired [Member] | Impaired [Member] | Impaired [Member] | Impaired [Member] | Impaired [Member] | Impaired [Member] | Impaired [Member] | Impaired [Member] | Taken in Foreclosure [Member] | Taken in Foreclosure [Member] | Taken in Foreclosure [Member] | Taken in Foreclosure [Member] | Taken in Foreclosure [Member] | Taken in Foreclosure [Member] | Taken in Foreclosure [Member] | Taken in Foreclosure [Member] | Taken in Foreclosure [Member] | Taken in Foreclosure [Member] | Taken in Foreclosure [Member] | Taken in Foreclosure [Member] | Taken in Foreclosure [Member] | Taken in Foreclosure [Member] | Taken in Foreclosure [Member] | ||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Market Approach Valuation Technique [Member] | Market Approach Valuation Technique [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Weighted Average [Member] | Weighted Average [Member] | Market Approach Valuation Technique [Member] | Market Approach Valuation Technique [Member] | Market Approach Valuation Technique [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Weighted Average [Member] | Weighted Average [Member] | Weighted Average [Member] | Weighted Average [Member] | |||||
Real estate-commercial mortgage [Member] | Significant Unobservable Inputs Level 3 [Member] | Significant Unobservable Inputs Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Market Approach Valuation Technique [Member] | Market Approach Valuation Technique [Member] | Market Approach Valuation Technique [Member] | Market Approach Valuation Technique [Member] | Market Approach Valuation Technique [Member] | Market Approach Valuation Technique [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Market Approach Valuation Technique [Member] | Market Approach Valuation Technique [Member] | Market Approach Valuation Technique [Member] | Market Approach Valuation Technique [Member] | Market Approach Valuation Technique [Member] | Market Approach Valuation Technique [Member] | Market Approach Valuation Technique [Member] | Market Approach Valuation Technique [Member] | Market Approach Valuation Technique [Member] | Market Approach Valuation Technique [Member] | Market Approach Valuation Technique [Member] | Market Approach Valuation Technique [Member] | |||||
Significant Unobservable Inputs Level 3 [Member] | Real estate-commercial mortgage [Member] | Acquisition development and construction [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Real estate-commercial mortgage [Member] | Real estate-residential mortgage [Member] | Acquisition development and construction [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||||||
Significant Unobservable Inputs Level 3 [Member] | Significant Unobservable Inputs Level 3 [Member] | Real estate-commercial mortgage [Member] | Acquisition development and construction [Member] | Real estate-commercial mortgage [Member] | Acquisition development and construction [Member] | Real estate-commercial mortgage [Member] | Acquisition development and construction [Member] | Significant Unobservable Inputs Level 3 [Member] | Significant Unobservable Inputs Level 3 [Member] | Significant Unobservable Inputs Level 3 [Member] | Real estate-commercial mortgage [Member] | Real estate-residential mortgage [Member] | Acquisition development and construction [Member] | Mortgage Servicing Rights [Member] | Real estate-commercial mortgage [Member] | Real estate-residential mortgage [Member] | Acquisition development and construction [Member] | Mortgage Servicing Rights [Member] | Real estate-commercial mortgage [Member] | Real estate-residential mortgage [Member] | Acquisition development and construction [Member] | Mortgage Servicing Rights [Member] | ||||||||
Significant Unobservable Inputs Level 3 [Member] | Significant Unobservable Inputs Level 3 [Member] | Significant Unobservable Inputs Level 3 [Member] | Significant Unobservable Inputs Level 3 [Member] | Significant Unobservable Inputs Level 3 [Member] | Significant Unobservable Inputs Level 3 [Member] | Significant Unobservable Inputs Level 3 [Member] | Significant Unobservable Inputs Level 3 [Member] | Significant Unobservable Inputs Level 3 [Member] | Significant Unobservable Inputs Level 3 [Member] | Significant Unobservable Inputs Level 3 [Member] | Significant Unobservable Inputs Level 3 [Member] | Significant Unobservable Inputs Level 3 [Member] | Significant Unobservable Inputs Level 3 [Member] | Significant Unobservable Inputs Level 3 [Member] | Significant Unobservable Inputs Level 3 [Member] | Significant Unobservable Inputs Level 3 [Member] | Significant Unobservable Inputs Level 3 [Member] | |||||||||||||
speed | speed | speed | ||||||||||||||||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans, net | ' | ' | $4,758,366 | $2,422,824 | $2,396 | $3,636 | $6,013 | $1,463 | $2,173 | ' | ' | ' | ' | ' | ' | $1,910 | $1,301 | $1,973 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage servicing rights | $1,526 | $1,978 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Comparability adjustments | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | 10.00% | 36.00% | 30.00% | 22.00% | 13.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Management adjustments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | 16.00% | 25.00% | ' | 37.00% | 59.00% | 70.00% | ' | 24.80% | 21.60% | 30.20% | ' |
Discount rates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.30% | ' | ' | ' | 12.80% | ' | ' | ' | ' |
Prepayment speed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100 | ' | ' | ' | 968 | ' | ' | ' | 224 |
Recovered_Sheet6
Fair value Measurements (Details 4) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Securities available for sale | $1,110,813 | $954,393 |
Securities held to maturity | 587,838 | 250,896 |
Senior notes | -98,402 | -98,033 |
Carrying Amount [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Cash and due from banks | 177,619 | 113,090 |
Securities available for sale | 1,110,813 | 954,393 |
Securities held to maturity | 579,075 | 253,999 |
Loans, net | 4,719,826 | 2,384,021 |
Loans held for sale | 17,846 | 1,011 |
Accrued interest receivable on securities | 8,876 | 4,892 |
Accrued interest receivable on loans | 10,791 | 6,805 |
FHLB stock and Federal Reserve Bank stock | 66,085 | 24,312 |
Interest rate caps and swaps | 1,096 | 997 |
Non-maturity deposits | -4,860,783 | -2,694,166 |
Certificates of deposit | -437,871 | -268,128 |
FHLB borrowings | -795,028 | -345,176 |
Other borrowings | -45,639 | ' |
Senior notes | -98,402 | ' |
Mortgage escrow funds | -4,494 | ' |
Accrued interest payable on deposits | -320 | -12,646 |
Accrued interest payable on borrowings | -2,942 | -1,480 |
Interest rate caps and swaps | -1,096 | -1,525 |
Interest rate caps and swaps | ' | -997 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Cash and due from banks | 177,619 | 113,090 |
Securities available for sale | 0 | 0 |
Securities held to maturity | 0 | 0 |
Loans, net | 0 | 0 |
Loans held for sale | 0 | 0 |
Accrued interest receivable on securities | 0 | 0 |
Accrued interest receivable on loans | 0 | 0 |
Interest rate caps and swaps | 0 | 0 |
Non-maturity deposits | -4,860,783 | -2,694,166 |
Certificates of deposit | 0 | 0 |
FHLB borrowings | 0 | 0 |
Senior notes | 0 | ' |
Mortgage escrow funds | 0 | ' |
Accrued interest payable on deposits | 0 | 0 |
Accrued interest payable on borrowings | 0 | 0 |
Interest rate caps and swaps | 0 | 0 |
Interest rate caps and swaps | ' | 0 |
Significant Other Observable Inputs Level 2 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Cash and due from banks | 0 | 0 |
Securities available for sale | 1,110,813 | 950,780 |
Securities held to maturity | 587,838 | 250,896 |
Loans, net | 0 | 0 |
Loans held for sale | 17,846 | 1,011 |
Accrued interest receivable on securities | 8,876 | 4,892 |
Accrued interest receivable on loans | 0 | 0 |
Interest rate caps and swaps | 1,096 | ' |
Non-maturity deposits | 0 | 0 |
Certificates of deposit | -438,088 | -268,088 |
FHLB borrowings | -813,490 | -488,369 |
Other borrowings | -45,640 | ' |
Senior notes | -100,482 | ' |
Mortgage escrow funds | -4,494 | ' |
Accrued interest payable on deposits | -320 | -12,644 |
Accrued interest payable on borrowings | -2,942 | -1,480 |
Interest rate caps and swaps | -1,096 | -1,525 |
Significant Other Observable Inputs Level 2 [Member] | Carrying Amount [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Interest rate caps and swaps | ' | 997 |
Interest rate caps and swaps | ' | -997 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Cash and due from banks | 0 | 0 |
Securities available for sale | 0 | 3,613 |
Securities held to maturity | 0 | 0 |
Loans, net | 4,758,366 | 2,422,824 |
Loans held for sale | 0 | 0 |
Accrued interest receivable on securities | 0 | 0 |
Accrued interest receivable on loans | 10,791 | 6,805 |
Interest rate caps and swaps | 0 | 0 |
Non-maturity deposits | 0 | 0 |
Certificates of deposit | 0 | 0 |
FHLB borrowings | 0 | 0 |
Senior notes | 0 | ' |
Mortgage escrow funds | 0 | ' |
Accrued interest payable on deposits | 0 | 0 |
Accrued interest payable on borrowings | 0 | 0 |
Interest rate caps and swaps | 0 | 0 |
Interest rate caps and swaps | ' | $0 |
Recovered_Sheet7
Fair value measurements (Details Textual) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Amortized cost | $1,115,458 | $973,709 |
Changes in fair value recognized on provisions on loans held by the Company | 905 | 2,726 |
Other real estate owned | 7,580 | 6,022 |
Changes in fair value recognized through income for foreclosed assets held by the Company | 224 | 1,978 |
Significant Unobservable Inputs Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Loans, net | 4,758,366 | 2,422,824 |
Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Loans, net | 36,208 | 35,228 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Mortgage-backed securities-residential | 2,869 | 3,613 |
Privately issued collateralized mortgage obligations [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Amortized cost | 2,866 | ' |
Privately issued collateralized mortgage obligations [Member] | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Mortgage-backed securities-residential | 2,869 | 3,613 |
Mortgage-backed securities, percent of portfolio | 0.17% | ' |
Market Approach Valuation Technique [Member] | Commercial Real Estate [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Loans, net | $2,396 | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive (Loss) Income (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
In Thousands, unless otherwise specified | ||||
Equity [Abstract] | ' | ' | ' | ' |
Net unrealized holding loss on available for sale securities | ($4,645) | ($19,316) | ' | ' |
Related income tax benefit | 1,974 | 7,844 | ' | ' |
Available for sale securities AOCI, net of tax | -2,671 | -11,472 | ' | ' |
Net unrealized holding loss on securities transferred to held to maturity | -8,947 | 0 | ' | ' |
Related income tax benefit | 3,803 | 0 | ' | ' |
Securities transferred to held to maturity AOCI, net of tax | -5,144 | 0 | ' | ' |
Net unrealized holding loss on retirement plans | -6,336 | -6,496 | ' | ' |
Related income tax benefit | 2,692 | 2,638 | ' | ' |
Retirement plan AOCI, net of tax | -3,644 | -3,858 | ' | ' |
Accumulated other comprehensive loss | ($11,459) | ($15,330) | $6,899 | $5,136 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive (Loss) Income (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' |
Balance beginning of the year | ($15,330) | $6,899 | $5,136 |
Other comprehensive gain (loss) before reclassification | 4,026 | -19,126 | 7,640 |
Amounts reclassified from AOCI | -155 | -3,103 | -5,877 |
Other comprehensive income | 3,871 | -22,229 | 1,763 |
Balance at end of period | -11,459 | -15,330 | 6,899 |
Net unrealized holding gain (loss) on AFS securities | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' |
Balance beginning of the year | -11,472 | 15,066 | 13,604 |
Other comprehensive gain (loss) before reclassification | 9,170 | -22,167 | 7,640 |
Amounts reclassified from AOCI | -369 | -4,371 | -6,178 |
Other comprehensive income | 8,801 | -26,538 | 1,462 |
Balance at end of period | -2,671 | -11,472 | 15,066 |
Net unrealized holding (loss) on securities transferred to held to maturity | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' |
Balance beginning of the year | 0 | 0 | 0 |
Other comprehensive gain (loss) before reclassification | -5,144 | 0 | 0 |
Amounts reclassified from AOCI | 0 | 0 | 0 |
Other comprehensive income | -5,144 | 0 | 0 |
Balance at end of period | -5,144 | 0 | 0 |
Net unrealized holding gain (loss) on retirement plans | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' |
Balance beginning of the year | -3,858 | -8,167 | -8,468 |
Other comprehensive gain (loss) before reclassification | 0 | 3,041 | 0 |
Amounts reclassified from AOCI | 214 | 1,268 | 301 |
Other comprehensive income | 214 | 4,309 | 301 |
Balance at end of period | ($3,644) | ($3,858) | ($8,167) |
Condensed_Parent_Company_Finan2
Condensed Parent Company Financial Statements - Statements of Financial Condition (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash | $177,619,000 | $113,090,000 | $437,982,000 | $281,512,000 |
Goodwill | 388,926,000 | 163,117,000 | 163,247,000 | ' |
Other assets | 41,900,000 | 34,184,000 | ' | ' |
Total assets | 7,337,387,000 | 4,049,172,000 | ' | ' |
Senior Notes | 98,402,000 | 98,033,000 | ' | ' |
Other liabilities | 134,032,000 | 30,380,000 | ' | ' |
Total liabilities | 6,376,249,000 | 3,566,306,000 | ' | ' |
Stockholders’ equity | 961,138,000 | 482,866,000 | 491,122,000 | 431,134,000 |
Total liabilities and stockholders’ equity | 7,337,387,000 | 4,049,172,000 | ' | ' |
Sterling Bancorp [Member] | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash | 23,369,000 | 56,230,000 | 6,716,000 | 6,692,000 |
Loan receivable from ESOP | 0 | 6,437,000 | ' | ' |
Goodwill | 18,970,000 | 0 | ' | ' |
Trade name | 20,500,000 | 0 | ' | ' |
Other intangible assets, net | 917,000 | 0 | ' | ' |
Other assets | 528,000 | 1,184,000 | ' | ' |
Total assets | 1,079,844,000 | 585,029,000 | ' | ' |
Senior Notes | 98,402,000 | 98,033,000 | ' | ' |
Other liabilities | 20,304,000 | 4,130,000 | ' | ' |
Total liabilities | 118,706,000 | 102,163,000 | ' | ' |
Stockholders’ equity | 961,138,000 | 482,866,000 | ' | ' |
Total liabilities and stockholders’ equity | 1,079,844,000 | 585,029,000 | ' | ' |
Sterling National Bank [Member] | Sterling Bancorp [Member] | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Investment in Sterling National Bank | 1,011,973,000 | 517,907,000 | ' | ' |
Non-bank Subsidiaries[Member] | Sterling Bancorp [Member] | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Investment in non-bank subsidiaries | $3,587,000 | $3,271,000 | ' | ' |
Condensed_Parent_Company_Finan3
Condensed Parent Company Financial Statements - Statements of Income (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other | ' | ' | ' | ' | ' | ' | ' | ' | $3,080 | $1,998 | $2,050 |
Interest expense | -7,476 | -7,310 | -7,297 | -6,835 | -5,795 | -4,276 | -4,601 | -5,222 | -28,918 | -19,894 | -18,573 |
Non-interest expense | -43,780 | -44,904 | -46,723 | -72,974 | -23,367 | -21,789 | -23,339 | -22,546 | -208,428 | -91,041 | -91,957 |
Income tax benefit | -6,452 | -6,057 | -4,588 | 6,948 | -3,312 | -2,833 | -2,203 | -3,066 | -10,152 | -11,414 | -6,159 |
Net income | 16,337 | 15,011 | 10,332 | -14,002 | 5,329 | 6,376 | 6,529 | 7,020 | 27,678 | 25,254 | 19,888 |
Sterling Bancorp [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | 139 | 262 | 282 |
Dividend income on equity securities | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 22 | 30 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | 18 | 0 | 10 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | -6,265 | -1,431 | 0 |
Non-interest expense | ' | ' | ' | ' | ' | ' | ' | ' | -5,841 | -2,700 | -1,838 |
Income tax benefit | ' | ' | ' | ' | ' | ' | ' | ' | 3,431 | 898 | 87 |
Income (loss) before equity in undistributed earnings of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 14,732 | -1,349 | 5,071 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 27,677 | 25,254 | 19,888 |
Sterling National Bank [Member] | Sterling Bancorp [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend income from subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 22,500 | 0 | 6,000 |
Equity in undistributed (excess distributed) earnings | ' | ' | ' | ' | ' | ' | ' | ' | 12,590 | 27,174 | 13,739 |
Non-bank Subsidiaries[Member] | Sterling Bancorp [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend income from subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 750 | 1,600 | 500 |
Equity in undistributed (excess distributed) earnings | ' | ' | ' | ' | ' | ' | ' | ' | $355 | ($571) | $1,078 |
Condensed_Parent_Company_Finan4
Condensed Parent Company Financial Statements - Statements of Cash Flows (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' | ' |
Net income | $27,678 | $25,254 | $19,888 |
Adjustments to reconcile net income to net cash provided by operating activities | ' | ' | ' |
(Gain) on redemption of Subordinated Debentures | -712 | 0 | 0 |
Other adjustments, net | -40,497 | 26,413 | -2,237 |
Net cash provided by operating activities | 127,664 | 22,624 | 25,026 |
Cash flows from investing activities: | ' | ' | ' |
Net cash provided by (used in) investing activities | -266,707 | -403,098 | -291,473 |
Cash flows from financing activities | ' | ' | ' |
Redemption of Subordinated Debentures | -26,140 | 0 | 0 |
Senior Notes offering | 0 | 97,946 | 0 |
Cash dividends paid | -17,677 | -10,642 | -9,100 |
Net increase (decrease) in cash and cash equivalents | 64,529 | -324,892 | 156,470 |
Cash and cash equivalents at beginning of year | 113,090 | 437,982 | 281,512 |
Cash and cash equivalents at end of year | 177,619 | 113,090 | 437,982 |
Sterling Bancorp [Member] | ' | ' | ' |
Cash flows from operating activities: | ' | ' | ' |
Net income | 27,677 | 25,254 | 19,888 |
Adjustments to reconcile net income to net cash provided by operating activities | ' | ' | ' |
Other adjustments, net | -22,066 | -5,259 | -380 |
Net cash provided by operating activities | 36,086 | 3,910 | 5,451 |
Cash flows from investing activities: | ' | ' | ' |
Purchase of securities | 0 | 0 | -105 |
Sales of securities | 1,112 | 818 | 103 |
Investment in subsidiaries | -15,000 | -45,000 | -44,203 |
ESOP loan principal repayments | 6,437 | 459 | 441 |
Net cash provided by (used in) investing activities | -7,451 | -43,723 | -43,764 |
Cash flows from financing activities | ' | ' | ' |
Net change in other short-term borrowings | -20,659 | 0 | 0 |
Redemption of Subordinated Debentures | -26,140 | 0 | 0 |
Senior Notes offering | 0 | 97,946 | 0 |
Equity capital raise | 0 | 0 | 46,000 |
Cash dividends paid | -17,677 | -10,642 | -9,100 |
Stock option transactions including RRP | 2,980 | 1,758 | 910 |
Other equity transactions | 0 | 265 | 527 |
Net cash (used for) provided by financing activities | -61,496 | 89,327 | 38,337 |
Net increase (decrease) in cash and cash equivalents | -32,861 | 49,514 | 24 |
Cash and cash equivalents at beginning of year | 56,230 | 6,716 | 6,692 |
Cash and cash equivalents at end of year | 23,369 | 56,230 | 6,716 |
Sterling National Bank [Member] | Sterling Bancorp [Member] | ' | ' | ' |
Adjustments to reconcile net income to net cash provided by operating activities | ' | ' | ' |
Equity in (undistributed) excess distributed earnings | -12,590 | -27,174 | -13,739 |
Non-bank Subsidiaries[Member] | Sterling Bancorp [Member] | ' | ' | ' |
Adjustments to reconcile net income to net cash provided by operating activities | ' | ' | ' |
Equity in (undistributed) excess distributed earnings | ($355) | $571 | ($1,078) |
Quarterly_Results_Of_Operation2
Quarterly Results Of Operations (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest and dividend income | $67,109 | $65,761 | $61,325 | $52,711 | $33,903 | $32,593 | $32,420 | $33,145 | $246,906 | $132,061 | $115,037 |
Interest expense | 7,476 | 7,310 | 7,297 | 6,835 | 5,795 | 4,276 | 4,601 | 5,222 | 28,918 | 19,894 | 18,573 |
Net interest income | 59,633 | 58,451 | 54,028 | 45,876 | 28,108 | 28,317 | 27,819 | 27,923 | 217,988 | 112,167 | 96,464 |
Provisions for loan losses | 5,350 | 5,950 | 4,800 | 3,000 | 2,700 | 3,900 | 2,600 | 2,950 | 19,100 | 12,150 | 10,612 |
Non-interest income | 12,286 | 13,471 | 12,415 | 9,148 | 6,600 | 6,581 | 6,852 | 7,659 | 47,370 | 27,692 | 32,152 |
Non-interest expense | 43,780 | 44,904 | 46,723 | 72,974 | 23,367 | 21,789 | 23,339 | 22,546 | 208,428 | 91,041 | 91,957 |
Income before income tax expense | 22,789 | 21,068 | 14,920 | -20,950 | 8,641 | 9,209 | 8,732 | 10,086 | 37,830 | 36,668 | 26,047 |
Income tax expense | 6,452 | 6,057 | 4,588 | -6,948 | 3,312 | 2,833 | 2,203 | 3,066 | 10,152 | 11,414 | 6,159 |
Net income | 16,337 | 15,011 | 10,332 | -14,002 | 5,329 | 6,376 | 6,529 | 7,020 | 27,678 | 25,254 | 19,888 |
Basic (USD per share) | $0.20 | $0.18 | $0.12 | ($0.20) | $0.12 | $0.15 | $0.15 | $0.16 | $0.34 | $0.58 | $0.52 |
Diluted (USD per share) | $0.19 | $0.18 | $0.12 | ($0.20) | $0.12 | $0.15 | $0.15 | $0.16 | $0.34 | $0.58 | $0.52 |
Business Combination, Separately Recognized Transactions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Merger related expense | ' | ' | ' | 9,100 | ' | ' | ' | ' | 9,455 | 2,772 | 5,925 |
Partial settlement charge | ' | ' | ' | 2,700 | ' | ' | ' | ' | ' | ' | ' |
Assets Write-down, Retention, and Severance Costs [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Separately Recognized Transactions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recognized charges | ' | ' | ' | $22,200 | ' | ' | ' | ' | ' | ' | ' |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Nov. 05, 2014 | Nov. 05, 2014 |
Hudson Valley Holding Corp [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |||
Hudson Valley Holding Corp [Member] | Hudson Valley Holding Corp [Member] | ||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' |
Consideration paid | ' | ' | ' | $539,234 | ' |
Number of shares each shareholder received from merger | ' | ' | ' | 1.92 | ' |
Ownership percentage (percent) | ' | ' | ' | ' | 69.00% |
Hudson Valley Holding Corp ownership percentage (percent) | ' | ' | ' | ' | 31.00% |
Pro forma revenue | ' | ' | 363,217 | ' | ' |
Net income | ' | ' | 21,962 | ' | ' |
Total assets | 7,337,387,000 | 4,049,172,000 | ' | ' | 10,703,764 |
Gross loans | 4,760,438,000 | 2,412,898,000 | ' | ' | 6,551,482 |
Deposits | $5,298,654,000 | $2,962,294,000 | ' | ' | $8,071,799 |