Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 04, 2015 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | STERLING BANCORP | |
Entity Central Index Key | 1,070,154 | |
Document Period End Date | Sep. 30, 2015 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 129,740,728 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
ASSETS: | ||
Cash and due from banks | $ 318,139 | $ 121,520 |
Securities: | ||
Available for sale, at fair value | 1,854,862 | 1,140,846 |
Held to maturity, at amortized cost (fair value of $689,049 and $586,346 at September 30, 2015 and December 31, 2014, respectively) | 673,130 | 572,337 |
Total securities | 2,527,992 | 1,713,183 |
Loans held for sale | 66,506 | 46,599 |
Portfolio loans | 7,525,632 | 4,815,641 |
Allowance for loan losses | (47,611) | (42,374) |
Portfolio loans, net | 7,478,021 | 4,773,267 |
Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) stock, at cost | 89,626 | 75,437 |
Accrued interest receivable | 31,092 | 19,301 |
Premises and equipment, net | 63,508 | 46,156 |
Goodwill | 670,699 | 388,926 |
Core deposit and other intangible assets | 80,830 | 43,332 |
Bank owned life insurance | 195,741 | 150,522 |
Other real estate owned | 11,831 | 5,867 |
Other assets | 63,408 | 40,712 |
Total assets | 11,597,393 | 7,424,822 |
LIABILITIES: | ||
Deposits | 8,805,411 | 5,212,325 |
FHLB borrowings | 806,970 | 1,003,209 |
Other borrowings (repurchase agreements) | 42,286 | 9,846 |
Senior notes | 98,792 | 98,498 |
Mortgage escrow funds | 13,865 | 4,167 |
Other liabilities | 177,865 | 121,577 |
Total liabilities | 9,945,189 | 6,449,622 |
Commitments and Contingent liabilities | 0 | |
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; 136,671,178 shares and 91,246,024 shares issued at September 30, 2015 and December 31, 2014; 129,769,569 and 83,927,572 shares outstanding at September 30, 2015 and December 31, 2014, respectively) | 1,367 | 912 |
Additional paid-in capital | 1,508,669 | 858,489 |
Treasury stock, at cost (6,901,609 shares at September 30, 2015 and 7,318,452 at December 31, 2014) | (78,342) | (82,908) |
Retained earnings | 221,335 | 208,958 |
Accumulated other comprehensive loss, net of tax benefit of $610 at September 30, 2015 and $7,576 at December 31, 2014 | (825) | (10,251) |
Total stockholders’ equity | 1,652,204 | 975,200 |
Total liabilities and stockholders’ equity | $ 11,597,393 | $ 7,424,822 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Securities held to maturity | $ 689,049 | $ 586,346 |
Preferred stock, par value (USD per share) | $ 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 (USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 190,000,000 | 190,000,000 |
Common stock, shares issued | 136,671,178 | 91,246,024 |
Common stock, shares outstanding | 129,769,569 | 83,927,572 |
Treasury stock, shares | 6,901,609 | 7,318,452 |
Accumulated other comprehensive income, tax | $ (610) | $ (7,576) |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Interest and dividend income: | ||||
Loans and loan fees | $ 87,774 | $ 55,793 | $ 202,789 | $ 160,294 |
Securities taxable | 11,114 | 7,587 | 27,168 | 23,166 |
Securities non-taxable | 3,169 | 2,866 | 8,936 | 8,291 |
Other earning assets | 1,241 | 863 | 3,023 | 2,445 |
Total interest and dividend income | 103,298 | 67,109 | 241,916 | 194,196 |
Interest expense: | ||||
Deposits | 5,299 | 2,421 | 11,749 | 7,135 |
Borrowings | 4,645 | 5,055 | 14,372 | 14,949 |
Total interest expense | 9,944 | 7,476 | 26,121 | 22,084 |
Net interest income | 93,354 | 59,633 | 215,795 | 172,112 |
Provisions for loan losses | 5,000 | 5,350 | 10,200 | 16,100 |
Net interest income after provision for loan losses | 88,354 | 54,283 | 205,595 | 156,012 |
Non-interest income: | ||||
Accounts receivable management / factoring commissions and other fees | 4,761 | 3,814 | 12,698 | 10,927 |
Mortgage banking income | 2,956 | 2,160 | 8,643 | 6,470 |
Deposit fees and service charges | 4,450 | 3,850 | 11,628 | 11,651 |
Net gain on sale of securities | 2,726 | 33 | 4,958 | 1,287 |
Bank owned life insurance | 1,293 | 791 | 3,443 | 1,469 |
Investment management fees | 844 | 446 | 1,520 | 2,540 |
Other | 1,772 | 1,192 | 3,778 | 3,828 |
Total non-interest income | 18,802 | 12,286 | 46,668 | 38,172 |
Non-interest expense: | ||||
Compensation and benefits | 29,238 | 22,110 | 75,070 | 70,755 |
Stock-based compensation plans | 1,064 | 1,006 | 3,300 | 2,712 |
Occupancy and office operations | 9,576 | 7,148 | 23,610 | 21,393 |
Amortization of intangible assets | 3,431 | 2,511 | 6,611 | 7,533 |
FDIC insurance and regulatory assessments | 2,281 | 1,619 | 5,093 | 4,981 |
Other real estate owned expense (income), net | 183 | 214 | 187 | (605) |
Merger-related expense | 0 | 0 | 17,079 | 388 |
Defined benefit plan termination charge | 13,384 | 0 | 13,384 | 1,486 |
Other | 12,158 | 9,172 | 58,564 | 26,765 |
Total non-interest expense | 71,315 | 43,780 | 202,898 | 135,408 |
Income before income tax expense | 35,841 | 22,789 | 49,365 | 58,776 |
Income tax expense | 11,648 | 6,452 | 16,043 | 17,096 |
Net income | $ 24,193 | $ 16,337 | $ 33,322 | $ 41,680 |
Weighted average common shares: | ||||
Basic (in shares) | 129,172,832 | 83,105,944 | 102,655,566 | 83,051,192 |
Diluted (in shares) | 129,631,858 | 83,378,462 | 103,069,057 | 83,316,086 |
Earnings per common share: | ||||
Basic (USD per share) | $ 0.19 | $ 0.20 | $ 0.32 | $ 0.50 |
Diluted (USD per share) | $ 0.19 | $ 0.19 | $ 0.32 | $ 0.50 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 24,193 | $ 16,337 | $ 33,322 | $ 41,680 |
Other comprehensive income (loss), before tax: | ||||
Change in unrealized holding gains (losses) on securities available for sale | 14,598 | (5,838) | 10,503 | 16,459 |
Accretion of net unrealized loss on securities transferred to held to maturity | 296 | 277 | 1,120 | 896 |
Reclassification adjustment for net realized gains included in net income | (2,726) | (33) | (4,958) | (1,287) |
Change in the actuarial gain (loss) of defined benefit plan and post-retirement benefit plans | 9,357 | (817) | 9,729 | (2,144) |
Total other comprehensive income (loss), before tax | 21,525 | (6,411) | 16,394 | 13,924 |
Deferred tax (expense) benefit related to other comprehensive income | (9,148) | 2,724 | (6,968) | (5,918) |
Other comprehensive income (loss), net of tax | 12,377 | (3,687) | 9,426 | 8,006 |
Comprehensive income | $ 36,570 | $ 12,650 | $ 42,748 | $ 49,686 |
Consolidated Statement of Chang
Consolidated Statement of Changes In Stockholders' Equity - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Unallocated ESOP shares | Treasury stock | Retained earnings | Accumulated other comprehensive (loss) income |
Balance at Dec. 31, 2013 | $ 925,109 | $ 912 | $ 856,946 | $ (4,993) | $ (82,176) | $ 173,885 | $ (19,465) |
Balance, shares at Dec. 31, 2013 | 83,955,647 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 41,680 | 41,680 | 0 | ||||
Other comprehensive income | 8,006 | 8,006 | |||||
Stock option & other stock transactions, net | 2,501 | 685 | 2,244 | (428) | |||
Stock option & other stock transactions, net, shares | 173,597 | ||||||
ESOP shares allocated or committed to be released for allocation | 64 | 1,054 | 4,993 | (5,983) | |||
ESOP shares allocated or committed to be released for allocation, shares | (488,403) | ||||||
Restricted stock awards, net | 1,455 | 1,879 | (424) | ||||
Restricted stock awards, net, shares | (12,574) | ||||||
Cash dividends declared | (17,677) | (17,677) | |||||
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 | ||||||
Balance at Dec. 31, 2014 | 975,200 | $ 912 | 858,489 | 0 | (82,908) | 208,958 | (10,251) |
Balance, shares at Dec. 31, 2014 | 83,927,572 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 33,322 | 33,322 | |||||
Other comprehensive income | 9,426 | 9,426 | |||||
Common stock issued in HVB Merger | $ 563,613 | $ 386 | 563,227 | ||||
Common stock issued in HVB Merger, shares | 38,525,154 | 38,525,154 | |||||
Stock option & other stock transactions, net | $ 4,058 | 766 | 3,263 | 29 | |||
Stock option & other stock transactions, net, shares | 298,520 | ||||||
Restricted stock awards, net | 2,838 | 1,197 | 1,303 | 338 | |||
Restricted stock awards, net, shares | 118,323 | ||||||
Common equity issued, net of costs of issuance | 85,059 | $ 69 | 84,990 | ||||
Common equity issued, net of costs of issuance, shares | 6,900,000 | ||||||
Cash dividends declared | (21,312) | (21,312) | |||||
Balance at Sep. 30, 2015 | $ 1,652,204 | $ 1,367 | $ 1,508,669 | $ 0 | $ (78,342) | $ 221,335 | $ (825) |
Balance, shares at Sep. 30, 2015 | 129,769,569 |
Consolidated Statement of Chan7
Consolidated Statement of Changes In Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends paid (USD per share) | $ 0.07 | $ 0.07 | $ 0.21 | $ 0.21 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 33,322 | $ 41,680 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provisions for loan losses | 10,200 | 16,100 |
(Gain) net of losses and write-downs on other real estate owned | (953) | (1,237) |
(Gain) on redemption of Subordinated Debentures | 0 | (712) |
Depreciation of premises and equipment | 5,332 | 4,890 |
Asset write-downs, severance and retention compensation and other restructuring charges | 40,350 | 1,431 |
Defined benefit plan termination charge | 13,384 | 1,486 |
Amortization of intangibles | 6,611 | 7,533 |
Amortization of low income housing tax credit | 146 | 520 |
Net gain on sale of securities | (4,958) | (1,287) |
Net gain on loans held for sale | (8,643) | (6,470) |
Loss on disposition of premises and equipment | 116 | 0 |
Net amortization of premium and discount on securities | 3,465 | 2,665 |
Net accretion on loans | (4,805) | (446) |
Accretion of discount, amortization of premium on borrowings, net | 294 | (100) |
Amortization of pre-payment penalties on restructured borrowings | (58) | 683 |
Restricted stock compensation expense | 2,580 | 2,031 |
Stock option compensation expense | 740 | 682 |
Originations of loans held for sale | (485,397) | (348,495) |
Proceeds from sales of loans held for sale | 474,133 | 361,602 |
Increase in cash surrender value of BOLI | (3,443) | (2,456) |
Deferred income tax (benefit) | (851) | (99) |
Other adjustments (principally net changes in other assets and other liabilities) | (53,390) | 16,242 |
Net cash provided by operating activities | 28,175 | 96,243 |
Cash flows from investing activities: | ||
Available for sale | (890,925) | (340,394) |
Held to maturity | (125,286) | (118,584) |
Proceeds from maturities, calls and other principal payments on securities: | ||
Available for sale | 85,963 | 120,227 |
Held to maturity | 28,545 | 25,969 |
Proceeds from sales of securities available for sale | 808,892 | 282,673 |
Loan originations, net | (939,343) | (621,732) |
Proceeds from sale of loans held for investment | 44,020 | 0 |
Purchases of FHLB and FRB stock, net | (8,359) | (22,759) |
Proceeds from sales of other real estate owned | 3,040 | 8,939 |
Purchases of premises and equipment | (6,049) | (1,854) |
Redemption of bank owned life insurance | 2,455 | 0 |
Proceeds from sale of premises and equipment | 0 | 310 |
Purchase low income housing tax credit | 0 | (1,966) |
Cash received from acquisitions, net | 854,318 | 0 |
Net cash (used in) investing activities | (142,729) | (669,171) |
Cash flows from financing activities: | ||
Net increase in transaction, savings and money market deposits | 470,011 | 590,404 |
Net decrease in time deposits | (37,671) | (212,314) |
Net increase in short-term FHLB borrowings | 29,000 | 150,000 |
Advances of term FHLB borrowings | 80,000 | 325,000 |
Repayments of term FHLB borrowings | (305,181) | (190,705) |
Repayment of debt assumed in acquisition | (4,485) | 0 |
Net increase (decrease) in other borrowings | 7,074 | (15,939) |
Redemption of subordinated debentures | 0 | (26,140) |
Net increase (decrease) in mortgage escrow funds | 5,082 | (8,968) |
Proceeds from stock option exercises | 3,596 | 1,563 |
Equity capital raise, net of costs of issuance | 85,059 | 0 |
Cash dividends paid | (21,312) | (15,016) |
Net cash provided by financing activities | 311,173 | 597,885 |
Net increase in cash and cash equivalents | 196,619 | 24,957 |
Cash and cash equivalents at beginning of period | 121,520 | 152,662 |
Cash and cash equivalents at end of period | 318,139 | 177,619 |
Supplemental cash flow information: | ||
Interest payments | 28,092 | 23,358 |
Income tax payments | 30,990 | 7,822 |
Real estate acquired in settlement of loans | 7,829 | 1,669 |
Loans transfered from held for investment to held for sale | 44,020 | 0 |
Non-cash assets acquired: | ||
Securities available for sale | 710,230 | 0 |
Securities held to maturity | 3,611 | 0 |
Total loans, net | 1,814,826 | 0 |
FHLB stock | 5,830 | 0 |
Accrued interest receivable | 7,392 | 0 |
Goodwill | 281,773 | 0 |
Customer list | 8,950 | 0 |
Core deposit intangibles | 33,839 | 0 |
Bank owned life insurance | 44,231 | 0 |
Premises and equipment, net | 17,063 | 0 |
Other real estate owned | 222 | 0 |
Other assets | 25,871 | 0 |
Total non-cash assets acquired | 2,953,838 | 0 |
Liabilities assumed: | ||
Deposits | 3,160,746 | 0 |
Escrow deposits | 4,616 | 0 |
Other borrowings | 25,366 | 0 |
Other liabilities | 50,181 | 0 |
Total liabilities assumed | 3,240,909 | 0 |
Net non-cash assets acquired | (287,071) | 0 |
Cash and cash equivalents received in acquisitions | 879,240 | 0 |
Total consideration paid | $ 592,169 | $ 0 |
Basis of Financial Statement Pr
Basis of Financial Statement Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Financial Statement Presentation | Basis of Financial Statement Presentation Merger with Hudson Valley Holding Corp. On June 30, 2015 , Hudson Valley Holding Corp. (“HVHC”) merged with and into Sterling Bancorp (the “HVB Merger”). In connection with the merger, Hudson Valley Bank, the principal subsidiary of HVHC, also merged with and into Sterling National Bank. 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 (the “Provident Merger”). • Legacy Provident was the accounting acquirer and the surviving entity. • Legacy Provident changed its legal entity name to Sterling Bancorp (“Sterling” or the “Company”). • Sterling National Bank merged into Provident Bank. • Provident Bank changed its legal entity name to Sterling National Bank (the “Bank”). We refer to the merger with Legacy Sterling as the “Provident Merger.” Change in Fiscal Year End On January 27, 2015, the Board of Directors amended the Company’s bylaws to change the Company’s fiscal year end from September 30 to December 31. Nature of Operations and Principles of Consolidation The unaudited consolidated financial statements include the accounts of Sterling; Sterling Risk Management, Inc., which is a captive insurance company; STL Holdings, Inc., which has an investment in Sterling Silver Title Agency L.P., an inactive company that provided title searches and title insurance for residential and commercial real estate; the Bank; and the Bank’s wholly-owned subsidiaries. These subsidiaries included at September 30, 2015 : (i) Sterling REIT, Inc., and Grassy Sprain Real Estate Holding, which are real estate investment trusts that hold a portion of the Company’s real estate loans; (ii) Sterling National Funding Corp., a company that originates loans to municipalities and governmental entities and acquires securities issued by state and local governments; (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 by management and, in the opinion of management, include all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the Company’s financial position and results of its operations as of the dates and for the periods presented. Although certain information and footnote disclosures have been condensed or omitted pursuant to the rules and regulations of the United States Securities and Exchange Commission applicable to quarterly reports on Form 10-Q, the Company believes that the disclosures are adequate to make the information presented clear. The results of operations for the three months and nine months ended September 30, 2015 are not necessarily indicative of results to be expected for other interim periods or the entire calendar year ending December 31, 2015 . The unaudited consolidated financial statements presented herein should be read in conjunction with the audited financial statements included in the Company’s Transition Report on Form 10-K filed March 6, 2015 . The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). In preparing the consolidated financial statements, management 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. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions HVB Merger On June 30, 2015 (“acquisition date”), the Company completed the HVB Merger. Under the terms of the HVB Merger agreement, HVHC shareholders received 1.92 shares of the Company’s common stock for each share of HVHC common stock, which resulted in the issuance of 38,525,154 shares. Based on the Company’s closing stock price of $14.63 per share on June 29, 2015 , the aggregate consideration paid to HVHC shareholders was $566,307 , which, in accordance with the HVB Merger agreement, also included the in-the-money cash value of outstanding HVHC stock options, the fair value of outstanding HVHC restricted stock awards and cash in lieu of fractional shares. Consistent with the Company’s strategy, the primary reason for the HVB Merger was the expansion of the Company’s geographic footprint in the greater New York metropolitan region and beyond. The assets acquired and liabilities assumed have been accounted for under the acquisition method of accounting. The assets and liabilities, both tangible and intangible, were recorded at their fair values as of September 30, 2015 based on management’s best estimate using the information available as of the HVB Merger date. The application of the acquisition method of accounting resulted in the recognition of goodwill of $269,757 and a core deposit intangible of $33,839 . As of June 30, 2015 , HVHC had assets with a net book value of approximately $288,208 , including loans with a net book value of approximately $1,816,767 , and deposits with a net book value of approximately $3,160,746 . The table below summarizes the amounts recognized as of the HVB 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 HVB Merger date: Consideration paid through Sterling Bancorp common stock issued to HVHC shareholders $ 566,307 HVHC net book value Fair value adjustments As recorded at acquisition Cash and cash equivalents $ 878,988 $ — $ 878,988 Investment securities 713,625 217 (a) 713,842 Loans 1,816,767 (24,248 ) (b) 1,792,519 Federal Reserve Bank stock 5,830 — 5,830 Bank owned life insurance 44,231 — 44,231 Premises and equipment 11,918 4,925 (c) 16,843 Accrued interest receivable 7,392 — 7,392 Core deposits and other intangibles — 33,839 (d) 33,839 Other real estate owned 222 — 222 Other assets 32,639 (7,931 ) (e) 24,708 Deposits (3,160,746 ) — (3,160,746 ) Other borrowings (25,366 ) — (25,366 ) Other liabilities (37,292 ) 1,540 (f) (35,752 ) Total identifiable net assets $ 288,208 $ 8,342 $ 296,550 Goodwill recorded in the HVB Merger $ 269,757 Explanation of certain fair value related adjustments: (a) Represents the fair value adjustment on investment securities held to maturity. (b) Represents the elimination of HVHC ’ s allowance for loan losses and an adjustment of the net book value of loans to estimated fair value, which includes an interest rate mark and credit mark adjustment. (c) Represents an adjustment to reflect the fair value of HVHC owned real estate as determined by independent appraisals, which will be amortized on a straight-line basis over the estimated useful lives of the individual assets. (d) Represents intangible assets recorded to reflect the fair value of core deposits. 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. (e) Represents an adjustment in net deferred tax assets resulting from the fair value adjustments related to the acquired assets, liabilities assumed and identifiable intangibles recorded. (f) Represents the elimination of HVHC’s deferred rent liability. The fair values for loans acquired from HVB 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 HVHC’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 HVB Merger. Acquired loan portfolio data in the HVB Merger is presented below: Fair value of acquired loans at acquisition date Gross contractual amounts receivable at acquisition date Best estimate at acquisition date of contractual cash flows not expected to be collected Acquired loans with evidence of deterioration since origination $ 96,973 $ 122,104 $ 19,024 Acquired loans with no evidence of deterioration since origination 1,695,546 1,974,740 37,520 The core deposit intangible asset recognized is being amortized over its estimated useful life of approximately 10 years utilizing the sum-of-the-years 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 land, buildings and equipment was estimated using appraisals. Buildings will be amortized over their estimated useful lives of approximately 30 years. Improvements and equipment will be amortized or depreciated over their estimated useful lives ranging from one to five years. 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. Management concluded the carrying value was an appropriate estimate of fair value for these deposits. Direct acquisition and other charges incurred in connection with the HVB Merger were expensed as incurred and totaled $0 and $14,381 for the three months and nine months ended September 30, 2015 , respectively. These expenses were recorded in Merger-related expenses on the consolidated income statements. Results of operations for the nine months ended September 30, 2015 included a charge for asset write-downs, information technology services and other contract terminations, employee retention and severance compensation and impairment of leases and facilities which totaled $28,055 , which was recorded in other non-interest expense in the consolidated income statements. The table on page 13 presents selected unaudited pro forma financial information reflecting the HVB Merger assuming it was completed as of January 1, 2014. 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 HVB 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 HVB 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 HVHC for the 2014 period presented and in 2015 until the date of the HVB Merger, at which time HVHC’s results of operations were included in the Company’s financial statements. The unaudited pro forma information, for the nine months ended September 30, 2015 and 2014 , set forth below 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 the nine months ended September 30, 2015 to write-down assets and accrue for retention and severance compensation are assumed to have occurred prior to January 1, 2014. 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 nine months ended September 30, 2015 2014 Net interest income $ 264,850 $ 241,326 Non-interest income 50,605 48,601 Non-interest expense 204,034 206,432 Net income 67,295 47,084 Pro forma earnings per share from continuing operations: Basic $ 0.53 $ 0.39 Diluted 0.52 0.39 Damian Acquisition On February 27, 2015 , the Bank acquired 100% of the outstanding common stock of Damian Services Corporation (“Damian”) for total consideration of $24,670 in cash. Damian is a payroll services provider located in Chicago, Illinois. In connection with the acquisition, the Bank acquired $22,307 of outstanding payroll finance loans and assumed $14,560 of liabilities. The Bank recognized a customer list intangible asset of $8,950 that is being amortized over its 16 year estimated life, and $11,930 of goodwill. The Bank also recognized a $1,500 restructuring charge consisting mainly of retention and severance compensation and asset write-downs related to the consolidation of Damian’s operations, and approximately $300 of legal fees. FCC Acquisition On May 7, 2015, the Bank acquired a factoring portfolio from FCC, LLC, a subsidiary of First Capital Holdings, Inc. (“FCC”), with an outstanding factoring receivables balance of approximately $44,500 . The total consideration included a premium of $1,000 in addition to the outstanding receivables balance. |
Securities
Securities | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities A summary of amortized cost and estimated fair value of our securities as of September 30, 2015 and December 31, 2014 is presented below: September 30, 2015 Available for Sale Held to Maturity Amortized cost Gross unrealized gains Gross unrealized losses Fair value Amortized cost Gross unrecognized gains Gross unrecognized losses Fair value Residential MBS: Agency-backed $ 1,048,193 $ 9,206 $ (1,159 ) $ 1,056,240 $ 228,360 $ 4,484 $ (253 ) $ 232,591 CMO/Other MBS 84,430 418 (501 ) 84,347 52,201 571 (76 ) 52,696 Total residential MBS 1,132,623 9,624 (1,660 ) 1,140,587 280,561 5,055 (329 ) 285,287 Other securities: Federal agencies 86,746 77 (63 ) 86,760 103,976 3,673 (236 ) 107,413 Corporate 402,661 1,276 (4,279 ) 399,658 25,287 88 (19 ) 25,356 State and municipal 188,324 2,445 (235 ) 190,534 258,306 7,547 (208 ) 265,645 Trust preferred 27,926 606 — 28,532 — — — — Other 8,781 10 — 8,791 5,000 348 — 5,348 Total other securities 714,438 4,414 (4,577 ) 714,275 392,569 11,656 (463 ) 403,762 Total securities $ 1,847,061 $ 14,038 $ (6,237 ) $ 1,854,862 $ 673,130 $ 16,711 $ (792 ) $ 689,049 December 31, 2014 Available for Sale Held to Maturity Amortized cost Gross unrealized gains Gross unrealized losses Fair value Amortized cost Gross unrecognized gains Gross unrecognized losses Fair value Residential MBS: Agency-backed $ 528,818 $ 5,398 $ (553 ) $ 533,663 $ 138,589 $ 2,763 $ (2 ) $ 141,350 CMO/Other MBS 85,619 178 (959 ) 84,838 60,166 58 (564 ) 59,660 Total residential MBS 614,437 5,576 (1,512 ) 618,501 198,755 2,821 (566 ) 201,010 Other securities: Federal agencies 150,623 4 (3,471 ) 147,156 136,618 4,328 (548 ) 140,398 Corporate 206,267 319 (1,755 ) 204,831 — — — — State and municipal 129,576 2,737 (248 ) 132,065 231,964 7,713 (89 ) 239,588 Trust preferred 37,687 652 (46 ) 38,293 — — — — Other — — — — 5,000 350 — 5,350 Total other securities 524,153 3,712 (5,520 ) 522,345 373,582 12,391 (637 ) 385,336 Total securities $ 1,138,590 $ 9,288 $ (7,032 ) $ 1,140,846 $ 572,337 $ 15,212 $ (1,203 ) $ 586,346 The amortized cost and estimated fair value of securities at September 30, 2015 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 (“MBS”) are shown separately since they are not due at a single maturity date. September 30, 2015 Available for sale Held to maturity Amortized cost Fair value Amortized cost Fair value Other securities remaining period to contractual maturity: One year or less $ 27,914 $ 28,001 $ 15,166 $ 15,287 One to five years 362,015 362,461 31,610 32,858 Five to ten years 286,257 284,815 234,692 240,979 Greater than ten years 38,252 38,998 111,101 114,638 Total other securities 714,438 714,275 392,569 403,762 Residential MBS 1,132,623 1,140,587 280,561 285,287 Total securities $ 1,847,061 $ 1,854,862 $ 673,130 $ 689,049 Sales of securities for the periods indicated below were as follows: For the three months ended For the nine months ended September 30, September 30, 2015 2014 2015 2014 Available for sale: Proceeds from sales $ 606,459 $ 51,151 $ 808,892 $ 282,673 Gross realized gains 3,079 292 5,702 2,303 Gross realized losses (353 ) (259 ) (744 ) (1,016 ) Income tax expense on realized net gains 886 9 1,611 374 At September 30, 2015 and December 31, 2014 , there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity. The following table summarizes securities available for sale with unrealized losses, segregated by the length of time in a continuous unrealized loss position for the periods presented below: Continuous unrealized loss position Less than 12 months 12 months or longer Total Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available for sale September 30, 2015 Residential MBS: Agency-backed $ 194,747 $ (851 ) $ 19,899 $ (308 ) $ 214,646 $ (1,159 ) CMO/Other MBS 15,530 (61 ) 25,019 (440 ) 40,549 (501 ) Total residential MBS 210,277 (912 ) 44,918 (748 ) 255,195 (1,660 ) Other securities: Federal agencies 5,947 (1 ) 15,381 (62 ) 21,328 (63 ) Corporate 234,658 (3,505 ) 24,891 (774 ) 259,549 (4,279 ) State and municipal 35,945 (193 ) 3,587 (42 ) 39,532 (235 ) Total other securities 276,550 (3,699 ) 43,859 (878 ) 320,409 (4,577 ) Total $ 486,827 $ (4,611 ) $ 88,777 $ (1,626 ) $ 575,604 $ (6,237 ) December 31, 2014 Residential MBS: Agency-backed $ 17,379 $ (37 ) $ 21,616 $ (516 ) $ 38,995 $ (553 ) CMO/Other MBS 25,551 (206 ) 43,475 (753 ) 69,026 (959 ) Total residential MBS 42,930 (243 ) 65,091 (1,269 ) 108,021 (1,512 ) Other securities: Federal agencies 5,959 (87 ) 140,699 (3,384 ) 146,658 (3,471 ) Corporate 85,055 (731 ) 65,648 (1,024 ) 150,703 (1,755 ) State and municipal 12,012 (68 ) 11,400 (180 ) 23,412 (248 ) Trust preferred 3,900 (46 ) — — 3,900 (46 ) Total other securities 106,926 (932 ) 217,747 (4,588 ) 324,673 (5,520 ) Total $ 149,856 $ (1,175 ) $ 282,838 $ (5,857 ) $ 432,694 $ (7,032 ) The following table summarizes securities held to maturity with unrecognized losses, segregated by the length of time in a continuous unrecognized loss position for the periods presented below: Continuous unrecognized loss position Less than 12 months 12 months or longer Total Fair value Unrecognized losses Fair value Unrecognized losses Fair value Unrecognized losses Held to maturity September 30, 2015 Residential MBS: Agency-backed $ 9,989 $ (253 ) $ — $ — $ 9,989 $ (253 ) CMO (1) /Other MBS 2,511 (10 ) 6,389 (66 ) 8,900 (76 ) Total residential MBS 12,500 (263 ) 6,389 (66 ) 18,889 (329 ) Other securities: Federal agencies 9,948 (52 ) 14,816 (184 ) 24,764 (236 ) Corporate 5,268 (19 ) — — 5,268 (19 ) State and municipal 21,104 (166 ) 2,754 (42 ) 23,858 (208 ) Total other securities 36,320 (237 ) 17,570 (226 ) 53,890 (463 ) Total $ 48,820 $ (500 ) $ 23,959 $ (292 ) $ 72,779 $ (792 ) December 31, 2014 Residential MBS: Agency-backed $ 1,208 $ (2 ) $ — $ — $ 1,208 $ (2 ) CMO/Other MBS — — 42,979 (564 ) 42,979 (564 ) Total residential MBS 1,208 (2 ) 42,979 (564 ) 44,187 (566 ) Other securities: Federal agencies 9,711 (289 ) 14,741 (259 ) 24,452 (548 ) State and municipal 11,501 (86 ) 233 (3 ) 11,734 (89 ) Total other securities 21,212 (375 ) 14,974 (262 ) 36,186 (637 ) Total $ 22,420 $ (377 ) $ 57,953 $ (826 ) $ 80,373 $ (1,203 ) (1) CMO is defined in footnote 16. “Fair Value Measurements”. At September 30, 2015 , a total of 234 available for sale securities were in an unrealized loss position for less than 12 months and 42 securities were in a continuous unrealized loss position for 12 months or longer. Declines in the fair value of held to maturity and available for sale 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 (“OTTI”) losses, 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 its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in cost. Management has the ability and intent to hold the securities classified as held to maturity in the table above until they mature, at which time the Company will receive full value for the securities. Furthermore, as of September 30, 2015 , management does not have the intent to sell any of the securities classified as available for sale in the table above and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. Any unrealized losses are largely due to increases in market interest rates over the yields available at the time the underlying securities were purchased. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Management does not believe any of the securities are impaired due to reasons of credit quality. As of September 30, 2015 , management believes the impairments detailed in the table above are temporary. Securities pledged for borrowings at FHLB and other institutions, and securities pledged for municipal deposits and other purposes were as follows for the periods presented below: September 30, December 31, 2015 2014 Available for sale securities pledged for borrowings, at fair value $ 154,629 $ 187,314 Available for sale securities pledged for municipal deposits, at fair value 1,050,013 550,681 Available for sale securities pledged for customer back-to-back swaps, at fair value 2,152 1,959 Held to maturity securities pledged for borrowings, at amortized cost 211,385 154,712 Held to maturity securities pledged for municipal deposits, at amortized cost 353,646 352,843 Total securities pledged $ 1,771,825 $ 1,247,509 |
Portfolio Loans
Portfolio Loans | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Portfolio Loans | Portfolio Loans The composition of the Company’s loan portfolio, excluding loans held for sale, was the following for the periods presented below: September 30, December 31, 2015 2014 Commercial: Commercial & industrial (“C&I”) $ 1,652,556 $ 1,244,555 Payroll finance 193,669 154,229 Warehouse lending 318,634 173,786 Factored receivables 252,868 161,625 Equipment financing 597,316 411,449 Total commercial 3,015,043 2,145,644 Commercial mortgage: Commercial real estate 2,569,762 1,458,277 Multi-family 750,931 384,544 Acquisition, development & construction (“ADC”) 177,062 96,995 Total commercial mortgage 3,497,755 1,939,816 Total commercial and commercial mortgage 6,512,798 4,085,460 Residential mortgage 721,606 529,766 Consumer: Home equity lines of credit 256,020 163,569 Other consumer loans 35,208 36,846 Total consumer 291,228 200,415 Total portfolio loans 7,525,632 4,815,641 Allowance for loan losses (47,611 ) (42,374 ) Portfolio loans, net $ 7,478,021 $ 4,773,267 Total portfolio loans include net deferred loan origination costs of $2,644 at September 30, 2015 , and $1,609 at December 31, 2014 . At September 30, 2015 , the Company pledged loans totaling $2,029,760 to the FHLB as collateral for certain borrowing arrangements. See Note 7. “Borrowings and Senior Notes”. The following tables set forth the amounts and status of the Company’s loans, troubled debt restructurings (“TDRs”) and non-performing loans at September 30, 2015 and December 31, 2014 : September 30, 2015 Current 30-59 days past due 60-89 days past due 90+ days past due Non- accrual Total Commercial & industrial $ 1,630,894 $ 8,788 $ 1,792 $ 77 $ 11,005 $ 1,652,556 Payroll finance 193,562 23 7 77 — 193,669 Warehouse lending 318,634 — — — — 318,634 Factored receivables 252,641 — — — 227 252,868 Equipment financing 593,930 753 1,501 — 1,132 597,316 Commercial real estate 2,541,565 4,492 1,884 — 21,821 2,569,762 Multi-family 749,172 656 — — 1,103 750,931 ADC 169,454 2,893 — 59 4,656 177,062 Residential mortgage 697,343 4,122 950 — 19,191 721,606 Consumer 279,884 2,334 686 69 8,255 291,228 Total portfolio loans $ 7,427,079 $ 24,061 $ 6,820 $ 282 $ 67,390 $ 7,525,632 Total TDRs included above $ 15,557 $ 894 $ 181 $ 59 $ 8,240 $ 24,931 Non-performing loans: Loans 90+ days past due and still accruing $ 282 Non-accrual loans 67,390 Total non-performing loans $ 67,672 December 31, 2014 Current 30-59 days past due 60-89 days past due 90+ days past due Non- accrual Total Commercial & industrial $ 1,232,363 $ 6,237 $ 920 $ 60 $ 4,975 $ 1,244,555 Payroll finance 154,114 — — 115 — 154,229 Warehouse lending 173,786 — — — — 173,786 Factored receivables 161,381 — — — 244 161,625 Equipment financing 410,483 707 19 — 240 411,449 Commercial real estate 1,433,235 7,982 5,322 452 11,286 1,458,277 Multi-family 383,799 317 — 156 272 384,544 ADC 89,730 401 451 — 6,413 96,995 Residential mortgage 509,597 2,935 975 — 16,259 529,766 Consumer 191,528 1,110 1,607 — 6,170 200,415 Total loans $ 4,740,016 $ 19,689 $ 9,294 $ 783 $ 45,859 $ 4,815,641 Total TDRs included above $ 16,238 $ 847 $ 176 $ — $ 11,427 $ 28,688 Non-performing loans: Loans 90+ days past due and still accruing $ 783 Non-accrual loans 45,859 Total non-performing loans $ 46,642 Activity in the allowance for loan losses for the three and nine months ended September 30, 2015 and 2014 is summarized below: For the three months ended September 30, 2015 Beginning balance Charge-offs Recoveries Net charge-offs Provision Ending balance Commercial & industrial $ 11,350 $ (224 ) $ 781 $ 557 $ 197 $ 12,104 Payroll finance 1,650 (44 ) — (44 ) 241 1,847 Warehouse lending 1,263 — — — (136 ) 1,127 Factored receivables 1,496 (52 ) 18 (34 ) 343 1,805 Equipment financing 3,245 (1,369 ) 148 (1,221 ) 2,297 4,321 Commercial real estate 11,100 (223 ) 76 (147 ) 1,722 12,675 Multi-family 2,405 — — — (248 ) 2,157 ADC 2,425 — — — (332 ) 2,093 Residential mortgage 4,937 (546 ) 81 (465 ) 517 4,989 Consumer 4,446 (387 ) 35 (352 ) 399 4,493 Total allowance for loan losses $ 44,317 $ (2,845 ) $ 1,139 $ (1,706 ) $ 5,000 $ 47,611 Annualized net charge-offs to average loans outstanding 0.09 % For the three months ended September 30, 2014 Beginning balance Charge-offs Recoveries Net charge-offs Provision Ending balance Commercial & industrial $ 8,997 $ (240 ) $ 419 $ 179 $ 360 $ 9,536 Payroll finance 1,048 (758 ) — (758 ) 1,089 1,379 Warehouse lending 395 — — — 235 630 Factored receivables 639 (43 ) 9 (34 ) 689 1,294 Equipment financing 1,657 (451 ) 194 (257 ) 1,221 2,621 Commercial real estate 9,113 (135 ) 3 (132 ) 1,863 10,844 Multi-family 2,202 — 92 92 (427 ) 1,867 ADC 3,747 (1 ) — (1 ) (1,626 ) 2,120 Residential mortgage 4,746 (418 ) 314 (104 ) 1,195 5,837 Consumer 3,806 (113 ) 40 (73 ) 751 4,484 Total allowance for loan losses $ 36,350 $ (2,159 ) $ 1,071 $ (1,088 ) $ 5,350 $ 40,612 Annualized net charge-offs to average loans outstanding 0.09 % For the nine months ended September 30, 2015 Beginning Charge-offs Recoveries Net Provision Ending balance Commercial & industrial $ 11,027 $ (1,294 ) $ 1,045 $ (249 ) $ 1,326 $ 12,104 Payroll finance 1,506 (406 ) 11 (395 ) 736 1,847 Warehouse lending 608 — — — 519 1,127 Factored receivables 1,205 (270 ) 46 (224 ) 824 1,805 Equipment financing 2,569 (1,960 ) 416 (1,544 ) 3,296 4,321 Commercial real estate 10,121 (561 ) 92 (469 ) 3,023 12,675 Multi-family 2,111 (17 ) — (17 ) 63 2,157 ADC 2,987 — 9 9 (903 ) 2,093 Residential mortgage 5,843 (727 ) 92 (635 ) (219 ) 4,989 Consumer 4,397 (1,550 ) 111 (1,439 ) 1,535 4,493 Total allowance for loan losses $ 42,374 $ (6,785 ) $ 1,822 $ (4,963 ) $ 10,200 $ 47,611 Annualized net charge-offs to average loans outstanding 0.11 % For the nine months ended September 30, 2014 Beginning Charge-offs Recoveries Net Provision Ending balance Commercial & industrial $ 6,886 $ (2,295 ) $ 572 $ (1,723 ) $ 4,373 $ 9,536 Payroll finance — (758 ) — (758 ) 2,137 1,379 Warehouse lending — — — — 630 630 Factored receivables — (289 ) 9 (280 ) 1,574 1,294 Equipment financing — (1,074 ) 194 (880 ) 3,501 2,621 Commercial real estate 8,040 (488 ) 124 (364 ) 3,168 10,844 Multi-family 1,952 — 92 92 (177 ) 1,867 ADC 5,857 (1,261 ) — (1,261 ) (2,476 ) 2,120 Residential mortgage 4,600 (693 ) 316 (377 ) 1,614 5,837 Consumer 3,277 (639 ) 90 (549 ) 1,756 4,484 Total allowance for loan losses $ 30,612 $ (7,497 ) $ 1,397 $ (6,100 ) $ 16,100 $ 40,612 Annualized net charge-offs to average loans outstanding 0.19 % 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. Evaluation 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 or liquidation 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, 2015 : Loans evaluated by segment Allowance evaluated by segment Individually evaluated for impairment Collectively evaluated for impairment Purchased credit impaired loans Total loans Individually evaluated for impairment Collectively evaluated for impairment Total allowance for loan losses Commercial & industrial $ 3,630 $ 1,631,054 $ 17,872 $ 1,652,556 $ — $ 12,104 $ 12,104 Payroll finance — 193,669 — 193,669 — 1,847 1,847 Warehouse lending — 318,634 — 318,634 — 1,127 1,127 Factored receivables — 252,868 — 252,868 — 1,805 1,805 Equipment financing 670 596,646 — 597,316 — 4,321 4,321 Commercial real estate 13,974 2,494,999 60,789 2,569,762 — 12,675 12,675 Multi-family 922 745,576 4,433 750,931 — 2,157 2,157 ADC 8,724 162,783 5,555 177,062 — 2,093 2,093 Residential mortgage 515 713,587 7,504 721,606 — 4,989 4,989 Consumer — 289,611 1,617 291,228 — 4,493 4,493 Total loans $ 28,435 $ 7,399,427 $ 97,770 $ 7,525,632 $ — $ 47,611 $ 47,611 The following table sets forth loans evaluated for impairment by segment and the allowance evaluated by segment at December 31, 2014 : Loans evaluated by segment Allowance evaluated by segment Individually evaluated for impairment Collectively evaluated for impairment Purchased credit impaired loans Total loans Individually evaluated for impairment Collectively evaluated for impairment Total allowance for loan losses Commercial & industrial $ 4,461 $ 1,238,899 $ 1,195 $ 1,244,555 $ — $ 11,027 $ 11,027 Payroll finance — 154,229 — 154,229 — 1,506 1,506 Warehouse lending — 173,786 — 173,786 — 608 608 Factored receivables — 161,625 — 161,625 — 1,205 1,205 Equipment financing — 411,449 — 411,449 — 2,569 2,569 Commercial real estate 14,423 1,443,714 140 1,458,277 — 10,121 10,121 Multi-family — 384,544 — 384,544 — 2,111 2,111 ADC 11,624 85,371 — 96,995 — 2,987 2,987 Residential mortgage 515 527,171 2,080 529,766 — 5,843 5,843 Consumer — 200,415 — 200,415 — 4,397 4,397 Total loans $ 31,023 $ 4,781,203 $ 3,415 $ 4,815,641 $ — $ 42,374 $ 42,374 The Company acquired loans in the HVB Merger and the Provident Merger, for which there was, at acquisition, both evidence of deterioration of credit quality since origination and probability, at acquisition, that all contractually required payments would not be collected (“PCI loans”). The carrying amount of such loans is presented in the tables above. At September 30, 2015 , the net recorded amount of PCI loans was $97,770 . The balance of $3,415 at December 31, 2014 represented the remaining net recorded amount of PCI loans acquired in the Provident Merger. There was no portion of the allowance for loan losses that was associated with PCI loans at September 30, 2015 , as management determined there was no further deterioration in the credit quality of these loans since the acquisition date. The following table presents shows the changes in the balance of the accretable yield discount for PCI loans for the three and nine months ended September 30, 2015 and 2014: For the three months ended September 30, For the nine months ended September 30, 2015 2014 2015 2014 Balance at beginning of period $ 13,201 $ 748 $ 724 $ 2,841 Balance acquired in HVB Merger — — 12,527 — Accretion of income (862 ) — (862 ) — Disposals — (24 ) (50 ) (2,117 ) Reclassification from non-accretable difference 413 — 413 — Balance at end of period $ 12,752 $ 724 $ 12,752 $ 724 Income is not recognized on PCI loans unless the Company can reasonably estimate the cash flows that are expected to be collected over the life of the loan. The balance of PCI loans that were treated under the cost recovery method were $22,821 and $3,415 at September 30, 2015 and December 31, 2014, respectively. The following table presents loans individually evaluated for impairment, excluding purchased credit impaired loans, by segment of loans at September 30, 2015 and December 31, 2014 : C&I Commercial real estate ADC Residential mortgage Total Loans with no related allowance recorded: September 30, 2015 Unpaid principal balance $ 4,300 $ 15,453 $ 8,769 $ 515 $ 29,037 Recorded investment 4,300 14,896 8,724 515 28,435 December 31, 2014 Unpaid principal balance 4,571 14,635 12,848 515 32,569 Recorded investment 4,461 14,423 11,624 515 31,023 The following tables present the average recorded investment and interest income recognized related to loans individually evaluated for impairment by segment for the three months ended September 30, 2015 and September 30, 2014 : September 30, 2015 September 30, 2014 QTD average recorded investment Interest income recognized Cash-basis interest income recognized QTD average recorded investment Interest income recognized Cash-basis interest income recognized Loans with no related allowance recorded: Commercial & industrial $ 3,637 $ — $ — $ 6,266 $ — $ — Equipment financing 670 — — — — — Commercial real estate 14,217 42 — 20,857 92 — Multi-family 922 — — — — — ADC 8,800 56 — 28,622 71 — Residential mortgage 515 — — 772 — — Total $ 28,761 $ 98 $ — $ 56,517 $ 163 $ — There were no impaired loans with an allowance recorded at September 30, 2015 or September 30, 2014 . At September 30, 2015 and September 30, 2014 , there were no factored receivable, payroll finance, warehouse lending, or consumer impaired loans. The following table presents the average recorded investment and interest income recognized related to loans individually evaluated for impairment by segment for the nine months ended September 30, 2015 and September 30, 2014 : September 30, 2015 September 30, 2014 YTD average recorded investment Interest income recognized Cash-basis interest income recognized YTD average recorded investment Interest income recognized Cash-basis interest income recognized Loans with no related allowance recorded: Commercial & industrial $ 3,647 $ — $ — $ 4,177 $ — $ — Equipment financing 670 — — — — — Commercial real estate 14,529 125 — 13,952 185 — Multi-family 923 — — — — — ADC 8,831 171 — 19,804 152 — Residential mortgage 515 — — 515 — — Total $ 29,115 $ 296 $ — $ 38,448 $ 337 $ — There were no impaired loans with an allowance recorded at September 30, 2015 or September 30, 2014 . At September 30, 2015 and September 30, 2014 , there were no factored receivable, payroll finance, warehouse lending, or consumer impaired loans. Troubled Debt Restructuring: The following tables set forth the amounts and past due status of the Company’s TDRs at September 30, 2015 and December 31, 2014 : September 30, 2015 Current loans 30-59 days past due 60-89 days past due 90+ days past due Non- accrual Total Commercial & industrial $ 156 $ — $ — $ — $ 2,065 $ 2,221 Equipment financing 359 — — — — 359 Commercial real estate 4,793 260 — — — 5,053 ADC 5,180 — — 59 3,641 8,880 Residential mortgage 5,069 634 181 — 2,354 8,238 Consumer — — — — 180 180 Total $ 15,557 $ 894 $ 181 $ 59 $ 8,240 $ 24,931 December 31, 2014 Current loans 30-59 days past due 60-89 days past due 90+ days past due Non- accrual Total Commercial & industrial $ 245 $ — $ — $ — $ 2,065 $ 2,310 Equipment financing 409 — — — — 409 Commercial real estate 4,833 263 — — — 5,096 ADC 5,487 — — — 6,373 11,860 Residential mortgage 5,264 584 176 — 2,768 8,792 Consumer — — — — 221 221 Total $ 16,238 $ 847 $ 176 $ — $ 11,427 $ 28,688 There were no payroll finance, warehouse lending, factored receivable, or multi-family loans that were TDRs for either period presented above. The Company did not have outstanding commitments to lend additional amounts to customers with loans classified as TDRs as of September 30, 2015 and December 31, 2014, respectively. The following table presents loans by segment modified as TDRs that occurred during the first nine months of 2015 and 2014 : September 30, 2015 September 30, 2014 Recorded investment Recorded investment Number Pre- modification Post- modification Number Pre- modification Post- modification ADC — — — 2 1,060 1,060 Total TDRs — $ — $ — 2 $ 1,060 $ 1,060 As shown, there were no loans modified by TDR in the nine months ended September 30, 2015. The TDRs presented above did not increase the allowance for loan losses and did not result in charge-offs for the three or nine months ended September 30, 2015 and September 30, 2014 , respectively. There were no TDRs that were modified during the three months and nine months ended September 30, 2015 and 2014 that had subsequently defaulted (missed three consecutive payments) during the periods presented. 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 residential mortgage and consumer loans (home equity lines of credit (“HELOC”) and other consumer loans); (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 by credit risk, except residential mortgage loans, HELOC and other consumer, 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 credit. 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 reversed 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 affected 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, 2015 and December 31, 2014 , the risk category of gross loans by segment was as follows: September 30, 2015 December 31, 2014 Special mention Substandard Doubtful Special mention Substandard Commercial & industrial $ 37,974 $ 15,342 $ — $ 13,060 $ 7,730 Payroll finance 328 96 — 996 115 Factored receivables — 1,597 — 34 244 Equipment financing 493 1,379 — — 240 Commercial real estate 40,878 59,247 — 12,707 28,194 Multi-family 2,788 1,759 — 317 272 ADC 6,783 11,652 — 1,027 16,016 Residential mortgage 950 20,344 — 975 16,402 Consumer 882 9,268 152 1,200 6,690 Total $ 91,076 $ 120,684 $ 152 $ 30,316 $ 75,903 The Company acquired $48,153 of special mention loans and $49,914 of substandard loans in the HVB Merger. There were no criticized or classified warehouse lending loans for the periods presented. There were no loans rated “loss” at September 30, 2015 and no loans rated “doubtful” or “loss” at December 31, 2014 . |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The balance of goodwill and other intangible assets for the periods presented were as follows: September 30, December 31, 2015 2014 Goodwill $ 670,699 $ 388,926 Other intangible assets: Core deposits $ 48,264 $ 18,473 Customer lists 8,256 — Non-compete agreements 3,590 3,959 Trade name 20,500 20,500 Fair value of below market leases 220 400 Total other intangible assets $ 80,830 $ 43,332 The estimated aggregate future amortization expense for intangible assets remaining as of September 30, 2015 was as follows: Amortization expense Remainder of 2015 $ 3,463 2016 11,953 2017 8,088 2018 7,098 2019 6,074 2020 5,428 Thereafter 18,226 Total $ 60,330 |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2015 | |
Deposits [Abstract] | |
Deposits | Deposits Deposit balances at September 30, 2015 and December 31, 2014 were summarized as follows: September 30, December 31, 2015 2014 Non-interest bearing demand $ 3,126,258 $ 1,481,870 Interest bearing demand 1,602,613 747,667 Savings 908,497 711,509 Money market 2,621,029 1,790,435 Certificates of deposit 547,014 480,844 Total deposits $ 8,805,411 $ 5,212,325 Municipal deposits totaled $1,352,846 and $883,350 at September 30, 2015 and December 31, 2014 , respectively. See Note 3. “Securities” for the amount of securities that were pledged as collateral for municipal deposits and other purposes. Listed below are the Company’s brokered deposits: September 30, December 31, 2015 2014 Money market $ 288,778 $ 75,462 Reciprocal CDARs 1 3,779 6,666 CDARs one way 19,752 86,530 Total brokered deposits $ 312,309 $ 168,658 1 Certificate of deposit account registry service |
Borrowings and Senior Notes
Borrowings and Senior Notes | 9 Months Ended |
Sep. 30, 2015 | |
Debt Instruments [Abstract] | |
Borrowings and Senior Notes | Borrowings and Senior Notes The Company’s borrowings and weighted average interest rates are summarized as follows for the periods presented: September 30, December 31, 2015 2014 Amount Rate Amount Rate By type of borrowing: FHLB borrowings $ 806,970 1.62 % $ 1,003,209 1.37 % Other borrowings (repurchase agreements) 42,286 0.34 9,846 0.30 Senior notes 98,792 5.98 98,498 5.98 Total borrowings $ 948,048 2.02 % $ 1,111,553 1.77 % By remaining period to maturity: Less than one year $ 489,499 0.47 % $ 532,835 0.39 % One to two years 257,470 3.51 152,760 0.69 Two to three years 198,791 3.86 255,000 3.54 Three to four years — — 168,498 4.38 Greater than five years 2,288 4.92 2,460 4.92 Total borrowings $ 948,048 2.02 % $ 1,111,553 1.77 % FHLB borrowings. As a member of the FHLB, the Bank may borrow up a discounted percentage of the amount of eligible mortgages and securities that have been pledged as collateral under a blanket security agreement. As of September 30, 2015 and December 31, 2014 , the Bank had total residential mortgage and commercial real estate loans pledged after discount of $2,029,760 and $1,302,681 , respectively. In addition to the pledged mortgages, the Bank had also pledged securities to secure borrowings, which are disclosed in Note 3. “Securities.” As of September 30, 2015 , the Bank had unused borrowing capacity at the FHLB of $1,447,595 and may increase its borrowing capacity by pledging securities not required to be pledged for other purposes with a collateral value of approximately $505,000 . FHLB borrowings includes $200,000 at September 30, 2015 and December 31, 2014 that are putable quarterly at the discretion of the FHLB. These borrowings have a weighted average remaining term to the contractual maturity dates of approximately 1.56 and 2.31 years at September 30, 2015 and December 31, 2014 , respectively and a weighted average interest rate of 4.23% . Other borrowings (repurchase agreements). The Bank enters into sales of securities under agreements to repurchase. These repurchase agreements facilitate the needs of our customers and a portion of our secured short-term funding needs. Securities sold under agreements to repurchase at September 30, 2015 and December 31, 2014 are secured short-term borrowings that mature in one to 45 days and are generally renewed on a continuous basis. Repurchase agreements are stated at the amount of cash received in connection with these transactions. The securities pledged under these repurchase agreements fluctuate in value due to market conditions. The Bank is obligated to promptly transfer additional securities if the market value of the securities falls below the repurchase agreement price. Securities pledged as collateral under repurchase agreements are maintained with our safekeeping agents. Senior Notes. On July 2, 2013 , the Company issued $100,000 principal amount of 5.50% fixed rate senior notes (the “Senior Notes”)through a private placement at a discount of 1.75% . The cost of issuance was $303 , and at September 30, 2015 and December 31, 2014 the unamortized discount was $1,208 and $1,502 , 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 between the Company and U.S. Bank National Association, as trustee. Revolving line of credit. On September 4, 2015, the Company amended and renewed its existing revolving line of credit agreement for a new 12 -month term. This loan agreement is for a $15,000 revolving line of credit facility (the “Credit Facility”) with a financial institution that matures on September 5, 2016 . The balance was zero at September 30, 2015 and December 31, 2014 . The use of proceeds are for general corporate purposes. The line and accrued interest is payable at maturity, and the Company is required to maintain a zero balance for at least 30 days during its term. Loans under the Credit Facility bear interest at one-month LIBOR plus 1.25% . Under the terms of the Credit 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 Credit Facility at September 30, 2015 . |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedges, Assets [Abstract] | |
Derivatives | Derivatives 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 a fair value of $2,152 as of September 30, 2015 . The Company may need to post additional collateral to swap counterparties in the future in proportion to potential increases in unrealized loss positions. 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. Summary information as of September 30, 2015 and December 31, 2014 regarding these derivatives is presented below: Notional amount Average maturity (in years) Weighted average fixed rate Weighted average variable rate Fair value September 30, 2015 3rd party interest rate swap $ 64,581 5.61 4.11 % 1 m Libor + 2.17 $ 2,152 Customer interest rate swap (64,581 ) 5.61 4.11 1 m Libor + 2.17 (2,152 ) December 31, 2014 3rd party interest rate swap 67,551 4.70 4.13 1 m Libor + 2.36 1,332 Customer interest rate swap (67,551 ) 4.70 4.13 1 m Libor + 2.36 (1,332 ) 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 | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes 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 three months ended For the nine months ended September 30, September 30, 2015 2014 2015 2014 Income before income tax expense $ 35,841 $ 22,789 $ 49,365 $ 58,776 Tax at Federal statutory rate of 35% 12,543 7,977 17,278 20,572 State and local income taxes, net of Federal tax benefit 1,888 (355 ) 2,379 1,097 Tax-exempt interest, net of disallowed interest (1,171 ) (1,115 ) (3,345 ) (3,086 ) BOLI income (423 ) (270 ) (1,114 ) (851 ) Non-deductible acquisition related costs — — 700 — Low income housing tax credits (53 ) (53 ) (161 ) (453 ) Other, net (1,136 ) 268 306 (183 ) Actual income tax (benefit) expense $ 11,648 $ 6,452 $ 16,043 $ 17,096 Effective income tax rate 32.5 % 28.3 % 32.5 % 29.1 % Net deferred tax assets totaled $23,408 at September 30, 2015 and $14,857 at December 31, 2014 . No valuation allowance was recorded against deferred tax assets at September 30, 2015 as management believes it is more likely than not that all of the deferred tax assets will be realized as they were supported by recoverable taxes paid in prior years. There were no unrecognized tax benefits during any of the reported periods. Interest and/or penalties related to income taxes are reported as a component of other non-interest expense. Such amounts were not material during the reported periods. The Company is no longer subject to U.S. federal income tax examinations by tax authorities for years before 2010. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company has active stock-based compensation plans, as described below. The Company’s stockholders approved the 2015 Omnibus Equity and Incentive Plan (the “2015 Plan”) on May 28, 2015. The 2015 Plan permits the grant of stock options, stock appreciation rights, restricted stock (both time-based and performance-based), restricted stock units, deferred stock and other stock-based awards. The total number of shares that may be awarded under the 2015 Plan is 2,800,000 shares plus the remaining shares available for grant under the 2014 Stock Incentive Plan (the “2014 Plan”). At September 30, 2015 , there were 4,394,333 shares available for future grant under the 2015 Plan. The 2014 Plan was a stockholder approved plan. The 2014 Plan 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 for up to 3,400,000 shares of common stock. The approval of the 2015 Plan resulted in the termination of the 2014 Plan. Awards outstanding as of May 28, 2015 will continue to be governed by the 2014 Plan document; however, no future grants will be made under the 2014 Plan. Under the 2015 Plan, shares awarded are counted as one share deducted from the 2015 Plan for every share delivered under the awards. Under the 2014 Plan, any shares subject to stock options or stock appreciation rights were also counted as one share deducted from the 2014 Plan for every one share delivered, and shares granted other than stock options and stock appreciation rights, were counted as 3.5 shares deducted from the 2014 Plan for every one share delivered under the awards. Restricted stock awards are granted with a fair value equal to the market price of the Company’s common stock at the date of grant. Stock option awards are granted with a strike price that is equal to the market price of the Company’s 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 1 to 5 years and stock options having 10 year contractual terms. In addition to the 2015 Plan and the 2014 Plan, the Company previously granted 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 vested in four equal installments through July 2015. In connection with the Provident 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, which expire March 15, 2017 . 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 a prior plan to certain executives of Legacy Sterling. The weighted average grant date fair value under both of these plans 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 the nine months ended September 30, 2015 : 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 January 1, 2015 1,999,022 643,887 $ 11.79 2,040,299 $ 11.10 2015 Plan 2,800,000 — — — — Granted (1) (463,356 ) 166,379 13.71 19,566 14.02 Stock awards vested — (52,471 ) 11.33 — — Exercised — — — (384,781 ) 11.65 Forfeited 180,217 (31,295 ) 12.90 (70,371 ) 12.89 Canceled/expired (121,550 ) — — — — Balance at September 30, 2015 4,394,333 726,500 $ 12.21 1,604,713 $ 10.93 Exercisable at September 30, 2015 807,598 $ 9.93 (1) Reflects certain non-vested stock awards granted under the 2014 Plan that counted as 3.5 shares for each share granted. The total intrinsic value of outstanding in-the-money stock options and outstanding in-the-money exercisable stock options was $6,320 and $3,992 , respectively, at September 30, 2015 . 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 $2.11 for the nine months ended September 30, 2015 . There were 19,566 stock options granted during the nine months ended September 30, 2015 . There were no stock options granted during the nine months ended September 30, 2014. The fair value of options granted was determined using the following weighted average assumptions as of the grant date: For the nine months ended September 30, 2015 2014 Risk-free interest rate 1.9 % — % Expected stock price volatility 21.1 — Dividend yield (1) 3.1 — Expected term in years 5.76 — (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 periods presented below: For the three months For the nine months ended September 30, ended September 30, 2015 2014 2015 2014 Stock options $ 201 $ 251 $ 740 $ 682 Non-vested stock awards/performance units 863 573 2,580 1,707 Total $ 1,064 $ 824 $ 3,320 $ 2,389 Income tax benefit 68 219 727 456 Proceeds from stock option exercises 3,596 1,563 Unrecognized stock-based compensation expense as of September 30, 2015 was as follows: September 30, 2015 Stock options $ 896 Non-vested stock awards/performance units 5,219 Total $ 6,115 The weighted average period over which unrecognized stock options is expected to be recognized is 1.48 years . The weighted average period over which unrecognized non-vested stock awards/performance units is expected to be recognized is 1.59 years . |
Pension and Other Post Retireme
Pension and Other Post Retirement Plans | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Post Retirement Plans | Pension and Other Post Retirement Plans Net pension expense (benefit) and post-retirement expense (benefit) is comprised of the following for the periods presented below: Pension plan Other post retirement plans For the three months ended For the three months ended September 30, September 30, 2015 2014 2015 2014 Service cost $ — $ — $ 2 $ 16 Interest cost 589 734 119 584 Expected return on plan assets (729 ) (892 ) — — Net amortization and deferral 90 49 44 205 Plan termination charge (settlement benefit) 13,384 — — (2,485 ) Total pension and other post-retirement expense (benefit) $ 13,334 $ (109 ) $ 165 $ (1,680 ) Pension plan Other post retirement plans For the nine months ended For the nine months ended September 30, September 30, 2015 2014 2015 2014 Service cost $ — $ — $ 4 $ 39 Interest cost 1,766 2,228 384 649 Expected return on plan assets (2,187 ) (2,709 ) — — Net amortization and deferral 272 129 121 241 Plan termination charge (settlement benefit) 13,384 1,486 — (2,485 ) Total pension and other post-retirement expense (benefit) $ 13,235 $ 1,134 $ 509 $ (1,556 ) Net pension expense (benefit) and post-retirement expense (benefit) is included as a component of compensation and benefits in the consolidated income statements, except that the termination and settlement charge for the defined benefit pension plan described below was presented separately due to its significance. On October 15, 2015, the Company terminated the Sterling National Bank / Sterling Bancorp Defined Benefit Pension Plan (the “Plan”). After obtaining the required regulatory approvals, the Company purchased annuities from a third-party insurance carrier and made lump sum distributions as elected by Plan participants in the amount of $58,171 . In connection with the Plan termination, the Company incurred a charge of $13,384 , which was comprised of the change in fair value of Plan assets of $4,068 , the recognition of the remaining balance of accumulated other comprehensive loss through earnings of $7,936 and a charge representing the difference between the Company’s effective tax rate and its marginal tax rate of $1,380 . The remaining pension reversion asset of $11,718 (recorded in other assets in the consolidated balance sheet) at September 30, 2015, will be held in custody by the Company’s 401(k) plan custodian and is expected to be charged to earnings over the next five to seven years as it is distributed to employees under qualified compensation and benefit programs. The Company’s other post retirement plans include a non-qualified Supplemental Executive Retirement Plan (“SERP”) that provides certain officers and executives with supplemental retirement benefits. The Company contributed $79 and $75 to fund SERP benefits during the nine months ended September 30, 2015 and 2014 , respectively. Total post retirement plan liabilities were $12,134 (recorded in other liabilities in the consolidated balance sheet) at September 30, 2015 . In connection with the HVB Merger, the Company assumed SERP liabilities of $13,868 . The Company terminated the HVHC SERP as of the acquisition date. Plan participants received a lump-sum cash payment in July 2015 and all plan obligations were satisfied. |
Other Non-Interest Expense
Other Non-Interest Expense | 9 Months Ended |
Sep. 30, 2015 | |
Other Income and Expenses [Abstract] | |
Other Non-interest Expense | Other Non-interest Expense Other non-interest expense items for the three- and nine-month periods ended September 30, 2015 and 2014, respectively, 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 three months ended For the nine months ended September 30, September 30, 2015 2014 2015 2014 Other non-interest expense: Advertising and promotion $ 699 $ 664 $ 1,771 $ 2,048 Professional fees 2,159 1,913 6,173 5,079 Data and check processing 2,667 1,065 6,383 2,796 Insurance & surety bond premium 1,161 675 2,290 2,086 Charge for asset write-downs — — 29,026 2,321 Other 5,472 4,855 12,921 12,435 Total other non-interest expense $ 12,158 $ 9,172 $ 58,564 $ 26,765 |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share Earnings per common share is computed using the two-class method. Basic earnings per common share is computed by dividing net earnings allocated to common stock by the weighted average number of common shares outstanding during the applicable period, excluding outstanding participating securities. Non-vested stock awards are considered participating securities because holders of these securities receive non-forfeitable dividends at the same rate as holders of the Company’s common stock. Diluted earnings per common share is computed using the weighted average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method. The Company’s dilutive securities include stock options and non-participating performance based stock awards. The following table presents a reconciliation of net income available to common stockholders, net earnings allocated to common stock and the number of shares used in the calculation of basic and diluted earnings per common share: For the three months ended For the nine months ended September 30, September 30, 2015 2014 2015 2014 Basic: Net income $ 24,193 $ 16,337 $ 33,322 $ 41,680 Less: Earnings allocated to participating securities 105 98 247 254 Net earnings attributable to common stock 24,088 16,239 33,075 41,426 Distributed earnings allocated to common stock 9,031 5,932 21,196 17,569 Undistributed earnings allocated to common stock 15,057 10,307 11,879 23,857 Net earnings attributable to common stock $ 24,088 $ 16,239 $ 33,075 $ 41,426 Weighted average total shares outstanding 129,733,911 83,610,943 103,199,765 83,563,334 Less: Weighted average participating securities 561,079 504,999 544,199 512,142 Weighted average common shares outstanding 129,172,832 83,105,944 102,655,566 83,051,192 Basic earnings per common share $ 0.19 $ 0.20 $ 0.32 $ 0.50 Diluted: Net earnings attributable to common stock $ 24,088 $ 16,239 $ 33,075 $ 41,426 Weighted average common shares outstanding 129,172,832 83,105,944 102,655,566 83,051,192 Dilutive effect of stock-based compensation 459,026 272,518 413,491 264,894 Weighted average diluted shares outstanding 129,631,858 83,378,462 103,069,057 83,316,086 Diluted earnings per common share $ 0.19 $ 0.19 $ 0.32 $ 0.50 Dividends per common share $ 0.07 $ 0.07 $ 0.21 $ 0.21 As of September 30, 2015 and September 30, 2014 , 149 and 530,547 weighted average common shares that could be exercised under stock option plans were anti-dilutive for the three month periods, respectively. As of September 30, 2015 and September 30, 2014 , 102,310 and 586,664 weighted average common shares that could be exercised under stock option plans were anti-dilutive for the nine month periods, respectively. Anti-dilutive shares are not included in determining diluted earnings per share. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity (a) Regulatory Capital Requirements In connection with the Provident 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. 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. The Basel III Capital Rules became effective for the Company and the Bank on January 1, 2015 (subject to a phase-in period for certain provisions). Quantitative measures established by the Basel III Capital Rules to ensure capital adequacy require the maintenance of minimum amounts and ratios (set forth in the table below) of Common Equity Tier 1 capital (as defined in the regulations), Tier 1 capital (as defined in the regulations) and Total capital (as defined in the regulations) to risk-weighted assets (as defined, “RWA”), and of Tier 1 capital to adjusted quarterly average assets (as defined) (the “Tier 1 leverage ratio”). The Company’s and the Bank’s Common Equity Tier 1 capital consists of common stock and related paid-in capital, net of treasury stock, and retained earnings. In connection with the adoption of the Basel III Capital Rules, we elected to opt-out of the requirement to include most components of accumulated other comprehensive income in Common Equity Tier 1 capital. Common Equity Tier 1 capital for both the Company and the Bank is reduced by goodwill and other intangible assets, net of associated deferred tax liabilities and subject to transition provisions. Tier 1 capital includes Common Equity Tier 1 capital and additional Tier 1 capital. Total capital includes Tier 1 capital and Tier 2 capital. Tier 2 capital (as defined in the regulations) for both the Company and the Bank includes a permissible portion of the allowance for loan losses. Prior to January 1, 2015, the Company’s and the Bank’s Tier 1 capital consisted of total shareholders’ equity excluding accumulated other comprehensive income, goodwill and other intangible assets. The Common Equity Tier 1 (beginning in 2015), Tier 1 and Total capital ratios are calculated by dividing the respective capital amounts by RWA. RWA is calculated based on regulatory requirements and includes total assets, excluding goodwill and other intangible assets, allocated by risk weight category, and certain off-balance-sheet items, among other things. The Tier 1 leverage ratio is calculated by dividing Tier 1 capital by adjusted quarterly average total assets, which exclude goodwill and other intangible assets, among other things.When fully phased-in on January 1, 2019, the Basel III Capital Rules will require the Company and the Bank to maintain: (i) a minimum ratio of Common Equity Tier 1 capital to RWA of at least 4.5%, plus a 2.5% “capital conservation buffer” (which is added to the 4.5% Common Equity Tier 1 capital ratio as that buffer is phased in, effectively resulting in a minimum ratio of Common Equity Tier 1 capital to RWA of at least 7.0% upon full implementation); (ii) a minimum ratio of Tier 1 capital to RWA of at least 6.0%, plus the capital conservation buffer (which is added to the 6.0% Tier 1 capital ratio as that buffer is phased in, effectively resulting in a minimum Tier 1 capital ratio of 8.5% upon full implementation); (iii) a minimum ratio of Total capital (that is, Tier 1 plus Tier 2) to RWA of at least 8.0%, plus the capital conservation buffer (which is added to the 8.0% total capital ratio as that buffer is phased in, effectively resulting in a minimum total capital ratio of 10.5% upon full implementation); and (iv) a minimum leverage ratio of 4.0%, calculated as the ratio of Tier 1 capital to adjusted quarterly average assets. The implementation of the capital conservation buffer will begin on January 1, 2016 at the 0.625% level and be phased in over a four-year period (increasing by that amount on each subsequent January 1, until it reaches 2.5% on January 1, 2019). The Basel III Capital Rules also provide for a “countercyclical capital buffer” that is applicable to only certain covered institutions and does not have any current applicability to the Company or the Bank. The aforementioned capital conservation buffer is designed to absorb losses during periods of economic stress. Banking institutions with a ratio of Common Equity Tier 1 capital to RWA above the minimum but below the conservation buffer (or below the combined capital conservation buffer and countercyclical capital buffer, when the latter is applied) will face constraints on dividends, equity repurchases and compensation based on the amount of the shortfall. The following table presents actual and required capital ratios as of September 30, 2015 for the Company and the Bank under the Basel III Capital Rules. The minimum required capital amounts presented include the minimum required capital levels as of September 30, 2015 based on the phase-in provisions of the Basel III Capital Rules and the minimum required capital levels as of January 1, 2019 when the Basel III Capital Rules have been fully phased-in. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules. Actual Minimum capital required - Basel III phase-in schedule Minimum capital required - Basel III fully phased-in Required to be considered well capitalized Capital amount Ratio Capital amount Ratio Capital amount Ratio Capital amount Ratio September 30, 2015 Common equity tier 1 to RWA: Sterling National Bank $ 1,032,930 11.79 % $ 394,214 4.50 % $ 613,221 7.00 % $ 569,420 6.50 % Sterling Bancorp 963,090 10.94 396,017 4.50 616,026 7.00 N/A N/A Tier 1 capital to RWA: Sterling National Bank 1,032,930 11.79 % 525,618 6.00 % 744,626 8.50 % 700,824 8.00 % Sterling Bancorp 963,090 10.94 528,022 6.00 748,031 8.50 N/A N/A Total capital to RWA: Sterling National Bank 1,081,090 12.34 % 700,824 8.00 % 919,832 10.50 % 876,030 10.00 % Sterling Bancorp 1,011,250 11.49 704,030 8.00 924,039 10.50 N/A N/A Tier 1 leverage ratio: Sterling National Bank 1,032,930 9.80 % 421,732 4.00 % 421,732 4.00 % 527,165 5.00 % Sterling Bancorp 963,090 9.12 422,388 4.00 422,388 4.00 N/A N/A The following table presents actual and required capital ratios as of December 31, 2014 for the Bank and the Company under the regulatory capital rules then in effect: Regulatory requirements Actual Minimum capital adequacy Classification as well- capitalized Capital amount Ratio Capital amount Ratio Capital amount Ratio December 31, 2014 Tier 1 capital to RWA: Sterling National Bank $ 651,203 12.00 % $ 216,988 4.00 % $ 325,481 6.00 % Sterling Bancorp 569,609 10.43 218,405 4.00 N/A N/A Total capital to RWA: Sterling National Bank 693,972 12.79 % 433,975 8.00 % 542,469 10.00 % Sterling Bancorp 612,378 11.22 436,809 8.00 N/A N/A Tier 1 leverage ratio: Sterling National Bank 651,203 9.39 % 277,534 4.00 % 346,918 5.00 % Sterling Bancorp 569,609 8.21 277,352 4.00 N/A N/A As of September 30, 2015 , capital levels at the Bank and the Company exceeded all capital adequacy requirements under the Basel III Capital Rules on a fully phased-in basis. Based on the ratios presented above, capital levels as of September 30, 2015 at the Bank and the Company exceeded the minimum levels necessary to be considered “well-capitalized”. The Bank and the Company are subject to the regulatory capital requirements administered by the Federal Reserve, and, for the Bank, the Office of the Comptroller of the Currency. Regulatory authorities can initiate certain mandatory actions if the Bank or the Company fail to meet the minimum capital requirements, which could have a direct material effect on our financial statements. Management believes, as of September 30, 2015 , that the Bank and the Company meet all capital adequacy requirements to which they are subject. (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, 2015 , the Bank had capacity to pay aggregate dividends of up to $56,549 to the Company without prior regulatory approval. (c) Capital Raise On February 11, 2015 , the Company completed a public offering of 6.9 million shares of common stock at an offering price of $13.00 per share for gross proceeds of approximately $ 89,700 , and net proceeds, after underwriting discounts, commissions and other costs of issuance of $85,059 . (d) 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 the currently announced stock repurchase program. There were no shares repurchased under the repurchase program during the nine months ended September 30, 2015 or September 30, 2014 . (e ) Liquidation Rights Upon completion of a second-step conversion in January 2004 , the Bank established a special “liquidation account” in accordance with Office of Comptroller of the Currency 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 (as defined in the plan of conversion) 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 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, 2015 , 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 reduce its stockholder’s equity below the amount of the liquidation account. (f) Impact of HVB Merger On June 30, 2015, the Company completed the HVB Merger. In connection with the HVB Merger, the Company issued 38.5 million common shares to HVHC shareholders which resulted in an increase of $563,613 in stockholders’ equity. |
Commitment and Contingencies
Commitment and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies (a) Off-Balance-Sheet Financial Instruments In the normal course of business, the Company enters into various transactions, which in accordance with GAAP 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 losses 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. 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, December 31, 2015 2014 Loan origination commitments $ 324,602 $ 208,486 Unused lines of credit 578,629 332,295 Letters of credit 83,831 83,316 (b) Lease Commitments The Company leases certain premises and equipment under operating leases with terms expiring through January 2034. Included in occupancy and office operations expense was net rent expense of $3,335 and $1,908 during the three months ended September 30, 2015 and 2014 , respectively, and net rent expense of $6,570 and $5,735 during the nine months ended September 30, 2015 and 2014 , respectively. Future minimum lease payments due under non-cancelable operating leases at September 30, 2015 were as follows: Remainder of 2015 $ 3,308 2016 12,252 2017 11,311 2018 10,091 2019 7,568 2020 6,477 2021 and thereafter 27,792 $ 78,799 (c) 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 are or 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. There can be no assurance as to the ultimate outcome of a legal proceeding; however, the Company and the Bank have generally denied liability in all significant litigation pending against us, including the matter described below, 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. On November 25, 2014, an action captioned Graner v. Hudson Valley Holding Corp., et al., Index No. 70348/2014 (Sup. Ct., Westchester Cnty.), was filed on behalf of a putative class of HVHC shareholders against HVHC, its current directors, and Sterling. On January 7, 2015, the plaintiff filed an amended complaint. As amended, the complaint alleges that the HVHC board of directors breached its fiduciary duties by agreeing to the HVB Merger and certain terms of the HVB Merger agreement and by failing to disclose all material information concerning the HVB Merger to the HVHC shareholders. The complaint further alleges that Sterling aided and abetted those alleged fiduciary breaches. The action sought, among other things, an order enjoining the operation of certain provisions of the HVB Merger agreement, enjoining any shareholder vote on the HVB Merger, as well as other equitable relief and/or monetary damages in the event that the HVB Merger is consummated. On April 9, 2015, the parties entered into a memorandum of understanding (the “MOU”) regarding the settlement of the putative class action. Under the terms of the MOU, the Company, HVHC, the other named defendants and the plaintiff reached an agreement in principle to settle the action. Pursuant to the terms of the MOU, the plaintiff agreed to release the defendants from all claims relating to the HVB Merger in exchange for certain additional disclosure to the HVHC shareholders, which disclosure was made on April 13, 2015 by HVHC via a filing with the Securities and Exchange Commission on Form 8-K. Under the terms of the MOU, plaintiff’s counsel also has reserved the right to seek an award of attorneys’ fees and expenses. The settlement is subject to approval by the Court, and, if the Court approves the settlement contemplated by the MOU, the action will be dismissed with prejudice. The settlement will not affect the merger consideration paid to HVHC’s shareholders pursuant to, and subject to the HVB Merger agreement. The HVB Merger agreement and the HVB Merger were approved by the Company’s stockholders at a special meeting held on April 28, 2015 and by HVHC’s shareholders at a special meeting held on April 30, 2015. The Company, HVHC and the other defendants deny all of the allegations made by the plaintiff. Nevertheless, the Company, HVHC and the other defendants have agreed to settle the action in order to avoid the costs, disruption and distraction of further litigation. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
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. As of September 30, 2015 , we do not believe any of our securities are other than temporarily impaired (“OTTI”); however, we review all of our securities on at least a quarterly basis to assess whether 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 interest rate swaps. See Note 8. “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, if material, 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, 2015 measured at estimated fair value on a recurring basis is as follows: September 30, 2015 Fair value Level 1 inputs Level 2 inputs Level 3 inputs Assets: Investment securities available for sale: Residential MBS: Agency-backed $ 1,056,240 $ — $ 1,056,240 $ — CMO (1) /Other MBS 84,347 — 84,347 — Total residential MBS 1,140,587 — 1,140,587 — Other securities: Federal agencies 86,760 — 86,760 — Corporate 399,658 — 399,658 — State and municipal 190,534 — 190,534 — Trust preferred 28,532 — 28,532 — Other 8,791 — 8,791 — Total other securities 714,275 — 714,275 — Total available for sale securities 1,854,862 — 1,854,862 — Swaps 2,152 — 2,152 — Total assets $ 1,857,014 $ — $ 1,857,014 $ — Liabilities: Swaps $ 2,152 $ — $ 2,152 $ — Total liabilities $ 2,152 $ — $ 2,152 $ — (1) Collateralized Mortgage Obligations (“CMOs”) are debt securities that are collateralized by a specific pool of residential mortgage loans, in which the issuer of the CMOs can direct the payments of principal and interest received on the underlying collateral to achieve specific investor cash flow objectives. The Bank generally acquires planned-amortization class securities (“PAC bonds”) and CMOs with a sequential pay structure in order to manage duration and extension risk inherent in these securities. A summary of assets and liabilities at December 31, 2014 measured at estimated fair value on a recurring basis is as follows: December 31, 2014 Fair value Level 1 inputs Level 2 inputs Level 3 inputs Assets: Investment securities available for sale: Residential MBS: Agency-backed $ 533,663 $ — $ 533,663 $ — CMO/Other MBS 84,838 — 84,838 — Total residential MBS 618,501 — 618,501 — Federal agencies 147,156 — 147,156 — Corporate bonds 204,831 — 204,831 — State and municipal 132,065 — 132,065 — Trust preferred 38,293 — 38,293 — Total investment securities available for sale 522,345 — 522,345 — Total available for sale securities 1,140,846 — 1,140,846 — Swaps 1,332 — 1,332 — Total assets $ 1,142,178 $ — $ 1,142,178 $ — Liabilities: Swaps $ 1,332 $ — $ 1,332 $ — Total liabilities $ 1,332 $ — $ 1,332 $ — 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 $28,435 and $36,208 at September 30, 2015 and September 30, 2014 , respectively. Changes in fair value recognized as a charge-off on loans held by the Company were $280 and $905 for the nine months ended September 30, 2015 and 2014 , 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, 2015 measured at estimated fair value on a non-recurring basis is the following: September 30, 2015 Fair value Level 1 inputs Level 2 inputs Level 3 inputs Commercial real estate $ 1,347 $ — $ — $ 1,347 ADC 41 — — 41 Total impaired loans measured at fair value $ 1,388 $ — $ — $ 1,388 A summary of impaired loans at December 31, 2014 measured at estimated fair value on a non-recurring basis is the following: December 31, 2014 Fair value Level 1 inputs Level 2 inputs Level 3 inputs Commercial & industrial $ 65 $ — $ — $ 65 Commercial real estate 1,950 — — 1,950 ADC 3,800 — — 3,800 Total impaired loans measured at fair value $ 5,815 $ — $ — $ 5,815 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, 2015 and December 31, 2014 were $1,288 and $1,456 , respectively. OREO - 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 and facilities held for sale subject to non-recurring fair value measurement were $11,831 and $5,867 at September 30, 2015 and December 31, 2014 , respectively. There were no write-downs related to changes in fair value for those foreclosed assets held by the Company during the nine months ended September 30, 2015 and September 30, 2014 . 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, 2015 : Non-recurring fair value measurements Fair value Valuation technique Unobservable input / assumptions Range (1) (weighted average) Impaired loans: Commercial real estate $ 1,347 Appraisal Adjustments for comparable properties 22.0% (22.0%) ADC 41 Appraisal Adjustments for comparable properties 10.0% - 22.0% (13.5%) Assets taken in foreclosure: Residential mortgage 1,596 Appraisal Adjustments by management to reflect current conditions/selling costs 10.0% - 22.0% (21.6%) Commercial real estate (2) 5,206 Appraisal Adjustments by management to reflect current conditions/selling costs 10.0% - 22.0% (22.0%) ADC 4,695 Appraisal Adjustments by management to reflect current conditions/selling costs 10.0% - 22.0% (22.0%) Mortgage servicing rights 1,288 Third-party Discount rates 8.3% - 11.3% (9.5%) Third-party Prepayment speeds 100 - 353 (186) (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 $334 of commercial properties that are former financial centers that were closed and are now held for sale. These assets were not taken in foreclosure and their fair value is determined by third-party appraisals and our internal assessment of the market for this type of real estate. 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 financial statements 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, 2015 : September 30, 2015 Carrying amount Level 1 inputs Level 2 inputs Level 3 inputs Financial assets: Cash and cash equivalents $ 318,139 $ 318,139 $ — $ — Securities available for sale 1,854,862 — 1,854,862 — Securities held to maturity 673,130 — 689,049 — Portfolio loans, net 7,478,021 — — 7,550,744 Loans held for sale 66,506 — 66,506 — Accrued interest receivable on securities 12,327 — 12,327 — Accrued interest receivable on loans 18,765 — — 18,765 FHLB stock and FRB stock 89,626 — — — Swaps 2,152 — 2,152 — Financial liabilities: Non-maturity deposits (8,258,397 ) (8,258,397 ) — — Certificates of deposit (547,014 ) — (546,947 ) — FHLB borrowings (806,970 ) — (819,997 ) — Other borrowings (42,286 ) — (42,066 ) — Senior notes (98,792 ) — (101,066 ) — Mortgage escrow funds (13,865 ) — (13,863 ) — Accrued interest payable on deposits (414 ) — (414 ) — Accrued interest payable on borrowings (2,861 ) — (2,861 ) — Swaps (2,152 ) — (2,152 ) — 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 December 31, 2014 : December 31, 2014 Carrying amount Level 1 inputs Level 2 inputs Level 3 inputs Financial assets: Cash and cash equivalents $ 121,520 $ 121,520 $ — $ — Securities available for sale 1,140,846 — 1,140,846 — Securities held to maturity 572,337 — 586,346 — Portfolio loans, net 4,773,267 — — 4,783,508 Loans held for sale 46,599 — 46,599 — Accrued interest receivable on securities 7,742 — 7,742 — Accrued interest receivable on loans 11,559 — — 11,559 FHLB stock and FRB stock 75,437 — — — Swaps 1,332 — 1,332 — Financial liabilities: Non-maturity deposits (4,731,481 ) (4,731,481 ) — — Certificates of deposit (480,844 ) — (480,621 ) — FHLB borrowings (1,003,209 ) — (1,019,690 ) — Other borrowings (9,846 ) — (9,846 ) — Senior notes (98,498 ) — (100,769 ) — Mortgage escrow funds (4,167 ) — (4,167 ) — Accrued interest payable on deposits (329 ) — (329 ) — Accrued interest payable on borrowings (4,354 ) — (4,354 ) — Swaps (1,332 ) — (1,332 ) — 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 Stock and FRB 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 demand, money market and saving 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 the “Off-Balance Sheet Financial Instruments” section of Note 15. “Commitments and Contingencies” 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, 2015 and December 31, 2014 , 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 in accordance with the related instrument. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income Components of accumulated other comprehensive (loss) income (“AOCI”) were as follows as of the dates shown below: September 30, December 31, 2015 2014 Net unrealized holding gain on available for sale securities $ 7,800 $ 2,256 Related income tax (expense) (3,315 ) (959 ) Available for sale securities AOCI, net of tax 4,485 1,297 Net unrealized holding loss on securities transferred to held to maturity (7,518 ) (8,638 ) Related income tax benefit 3,195 3,671 Securities transferred to held to maturity AOCI, net of tax (4,323 ) (4,967 ) Net unrealized holding loss on retirement plans (1,717 ) (11,445 ) Related income tax benefit 730 4,864 Retirement plans AOCI, net of tax (987 ) (6,581 ) AOCI $ (825 ) $ (10,251 ) The following table presents the changes in each component of AOCI for the three months ended September 30, 2015 and 2014 : Net unrealized holding gain (loss) on available for sale securities Net unrealized holding gain (loss) on securities transferred to held to maturity Net unrealized holding (loss) gain on retirement plans Total Three months ended September 30, 2015 Balance beginning of the period $ (2,342 ) $ (4,493 ) $ (6,367 ) $ (13,202 ) Other comprehensive gain before reclassification 5,260 — — 5,260 Amounts reclassified from AOCI 1,567 170 5,380 7,117 Total other comprehensive income 6,827 170 5,380 12,377 Balance at end of period $ 4,485 $ (4,323 ) $ (987 ) $ (825 ) Three months ended September 30, 2014 Balance beginning of the period $ 705 $ (5,303 ) $ (3,174 ) $ (7,772 ) Other comprehensive gain before reclassification (3,395 ) (3,395 ) Amounts reclassified from AOCI 19 159 (470 ) (292 ) Total other comprehensive (loss) income (3,376 ) 159 (470 ) (3,687 ) Balance at end of period $ (2,671 ) $ (5,144 ) $ (3,644 ) $ (11,459 ) Location in statement of operations where reclassification from AOCI is included Net gain on sale of securities Interest income on securities See explanation below The following table presents the changes in each component of AOCI for the nine months ended September 30, 2015 and 2014: Net unrealized holding gain (loss) on available for sale securities Net unrealized holding gain (loss) on securities transferred to held to maturity Net unrealized holding gain (loss) on retirement plans Total Nine months ended September 30, 2015 Balance beginning of the period $ 1,297 $ (4,967 ) $ (6,581 ) $ (10,251 ) Other comprehensive gain before reclassification 337 — — 337 Amounts reclassified from AOCI 2,851 644 5,594 9,089 Total other comprehensive income 3,188 644 5,594 9,426 Balance at end of period $ 4,485 $ (4,323 ) $ (987 ) $ (825 ) Nine months ended September 30, 2014 Balance beginning of the period $ (11,395 ) $ (5,659 ) $ (2,411 ) $ (19,465 ) Other comprehensive gain before reclassification 7,984 — — 7,984 Amounts reclassified from AOCI 740 515 (1,233 ) 22 Total other comprehensive income (loss) 8,724 515 (1,233 ) 8,006 Balance at end of period $ (2,671 ) $ (5,144 ) $ (3,644 ) $ (11,459 ) Location in statement of operations where reclassification from AOCI is included Net gain on sale of securities Interest income on securities See explanation below In the three months ended September 30, 2015, the Company incurred a charge of $13,384 for the termination of the Plan, which is presented separately in the income statement. Included in this charge for the three months and nine months ended September 30, 2015 was $5,357 , which represents the amount reclassified from AOCI related to the plan termination. This amount is included in the amounts shown above of $5,380 and $5,594 , respectively, for the three and nine months ended September 30, 2015. The remaining amounts of $23 and $237 for the three months and nine months ended September 30, 2015, were included in compensation and benefits expense and represented regular pension amortization expense. |
Recent Accounting Standards, No
Recent Accounting Standards, Not Yet Adopted | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards Not Yet Adopted | Recently Issued Accounting Standards Not Yet Adopted Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)." ASU 2014-09 implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize 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. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 was originally going to be effective for us on January 1, 2017; however, the FASB recently issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606) - Deferral of the Effective Date” which deferred the effective date of ASU 2014-09 by one year to January 1, 2018. The Company is currently evaluating the potential impact of ASU 2014-09 on its consolidated financial statements. ASU 2014-11, “Transfers and Servicing (Topic 860).” ASU 2014-11 requires that repurchase-to-maturity transactions be accounted for as secured borrowings consistent with the accounting for other repurchase agreements. In addition, ASU 2014-11 requires separate accounting for repurchase financings, which entails the transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty. ASU 2014-11 requires entities to disclose certain information about transfers accounted for as sales in transactions that are economically similar to repurchase agreements. In addition, ASU 2014-11 requires disclosures related to collateral, remaining contractual tenor and of the potential risks associated with repurchase agreements, securities lending transactions and repurchase-to-maturity transactions. ASU 2014-11 became effective for the Company on January 1, 2015 and did not have a significant impact on its consolidated financial statements. The new disclosures required by ASU 2014-11 are in Note 7. “Borrowings and Senior Notes”. ASU 2015-01, “Income Statement - Extraordinary and Unusual Items (Subtopic 225-20) – Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” ASU 2015-01 eliminates from GAAP the concept of extraordinary items, which, among other things, requires an entity to segregate extraordinary items considered to be unusual and infrequent from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. As permitted, the Company adopted ASU 2015-01 effective January 1, 2015 and its adoption did not have a significant impact on its consolidated financial statements. ASU 2015-02, “Consolidation (Topic 810) – Amendments to the Consolidation Analysis.” ASU 2015-02 implements changes to both the variable interest consolidation model and the voting interest consolidation model. ASU 2015-02 (i) eliminates certain criteria that must be met when determining when fees paid to a decision maker or service provider do not represent a variable interest; (ii) amends the criteria for determining whether a limited partnership is a variable interest entity; and (iii) eliminates the presumption that a general partner controls a limited partnership in the voting model. ASU 2015-02 will be effective for the Company on January 1, 2016 and is not expected to have a significant impact on its consolidated financial statements. ASU 2015-03, “Interest - Imputation of Interest (Subtopic 835-30) – Simplifying the Presentation of Debt Issuance Costs.” ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in ASU 2015-03. ASU 2015-03 will be effective for the Company on January 1, 2016, though early adoption is permitted. ASU 2015-03 is not expected to have a significant impact on the Company’s consolidated financial statements. ASU 2015-05, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) – Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” ASU 2015-05 addresses accounting for fees paid by a customer in cloud computing arrangements such as (i) software as a service; (ii) platform as a service; (iii) infrastructure as a service; and (iv) other similar hosting arrangements. ASU 2015-05 provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. ASU 2015-05 will be effective for the Company on January 1, 2016 and is not expected to have a significant impact on its consolidated financial statements. ASU 2015-15, “ Interest – Imputation of Interest (Subtopic 835-30) – Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting." ASU 2015-15 adds SEC paragraphs pursuant to an SEC Staff Announcement that given the absence of authoritative guidance within ASU 2015-03 for debt issuance costs related to line-of-credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. ASU 2015-16, “Business Combinations (Topic 805) – Simplifying the Accounting for Measurement-Period Adjustments.” ASU 2015-16 requires that adjustments to provisional amounts that are identified during the measurement period of a business combination be recognized in the reporting period in which the adjustment amounts are determined. Furthermore, the income statement effects of such adjustments, if any, must be calculated as if the accounting had been completed at the acquisition date. The portion of the amount recorded in current-period earnings that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. Under previous guidance, adjustments to provisional amounts identified during the measurement period are to be recognized retrospectively. ASU 2015-16 will be effective for us on January 1, 2016 and is not expected to have a significant impact on our financial statements. |
Basis of Financial Statement 27
Basis of Financial Statement Presentation (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | Nature of Operations and Principles of Consolidation The unaudited consolidated financial statements include the accounts of Sterling; Sterling Risk Management, Inc., which is a captive insurance company; STL Holdings, Inc., which has an investment in Sterling Silver Title Agency L.P., an inactive company that provided title searches and title insurance for residential and commercial real estate; the Bank; and the Bank’s wholly-owned subsidiaries. These subsidiaries included at September 30, 2015 : (i) Sterling REIT, Inc., and Grassy Sprain Real Estate Holding, which are real estate investment trusts that hold a portion of the Company’s real estate loans; (ii) Sterling National Funding Corp., a company that originates loans to municipalities and governmental entities and acquires securities issued by state and local governments; (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. |
Recently Issued Accounting Standards Not Yet Adopted | Recently Issued Accounting Standards Not Yet Adopted Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)." ASU 2014-09 implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize 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. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 was originally going to be effective for us on January 1, 2017; however, the FASB recently issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606) - Deferral of the Effective Date” which deferred the effective date of ASU 2014-09 by one year to January 1, 2018. The Company is currently evaluating the potential impact of ASU 2014-09 on its consolidated financial statements. ASU 2014-11, “Transfers and Servicing (Topic 860).” ASU 2014-11 requires that repurchase-to-maturity transactions be accounted for as secured borrowings consistent with the accounting for other repurchase agreements. In addition, ASU 2014-11 requires separate accounting for repurchase financings, which entails the transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty. ASU 2014-11 requires entities to disclose certain information about transfers accounted for as sales in transactions that are economically similar to repurchase agreements. In addition, ASU 2014-11 requires disclosures related to collateral, remaining contractual tenor and of the potential risks associated with repurchase agreements, securities lending transactions and repurchase-to-maturity transactions. ASU 2014-11 became effective for the Company on January 1, 2015 and did not have a significant impact on its consolidated financial statements. The new disclosures required by ASU 2014-11 are in Note 7. “Borrowings and Senior Notes”. ASU 2015-01, “Income Statement - Extraordinary and Unusual Items (Subtopic 225-20) – Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” ASU 2015-01 eliminates from GAAP the concept of extraordinary items, which, among other things, requires an entity to segregate extraordinary items considered to be unusual and infrequent from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. As permitted, the Company adopted ASU 2015-01 effective January 1, 2015 and its adoption did not have a significant impact on its consolidated financial statements. ASU 2015-02, “Consolidation (Topic 810) – Amendments to the Consolidation Analysis.” ASU 2015-02 implements changes to both the variable interest consolidation model and the voting interest consolidation model. ASU 2015-02 (i) eliminates certain criteria that must be met when determining when fees paid to a decision maker or service provider do not represent a variable interest; (ii) amends the criteria for determining whether a limited partnership is a variable interest entity; and (iii) eliminates the presumption that a general partner controls a limited partnership in the voting model. ASU 2015-02 will be effective for the Company on January 1, 2016 and is not expected to have a significant impact on its consolidated financial statements. ASU 2015-03, “Interest - Imputation of Interest (Subtopic 835-30) – Simplifying the Presentation of Debt Issuance Costs.” ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in ASU 2015-03. ASU 2015-03 will be effective for the Company on January 1, 2016, though early adoption is permitted. ASU 2015-03 is not expected to have a significant impact on the Company’s consolidated financial statements. ASU 2015-05, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) – Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” ASU 2015-05 addresses accounting for fees paid by a customer in cloud computing arrangements such as (i) software as a service; (ii) platform as a service; (iii) infrastructure as a service; and (iv) other similar hosting arrangements. ASU 2015-05 provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. ASU 2015-05 will be effective for the Company on January 1, 2016 and is not expected to have a significant impact on its consolidated financial statements. ASU 2015-15, “ Interest – Imputation of Interest (Subtopic 835-30) – Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting." ASU 2015-15 adds SEC paragraphs pursuant to an SEC Staff Announcement that given the absence of authoritative guidance within ASU 2015-03 for debt issuance costs related to line-of-credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. ASU 2015-16, “Business Combinations (Topic 805) – Simplifying the Accounting for Measurement-Period Adjustments.” ASU 2015-16 requires that adjustments to provisional amounts that are identified during the measurement period of a business combination be recognized in the reporting period in which the adjustment amounts are determined. Furthermore, the income statement effects of such adjustments, if any, must be calculated as if the accounting had been completed at the acquisition date. The portion of the amount recorded in current-period earnings that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. Under previous guidance, adjustments to provisional amounts identified during the measurement period are to be recognized retrospectively. ASU 2015-16 will be effective for us on January 1, 2016 and is not expected to have a significant impact on our financial statements. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | Acquired loan portfolio data in the HVB Merger is presented below: Fair value of acquired loans at acquisition date Gross contractual amounts receivable at acquisition date Best estimate at acquisition date of contractual cash flows not expected to be collected Acquired loans with evidence of deterioration since origination $ 96,973 $ 122,104 $ 19,024 Acquired loans with no evidence of deterioration since origination 1,695,546 1,974,740 37,520 The table below summarizes the amounts recognized as of the HVB 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 HVB Merger date: Consideration paid through Sterling Bancorp common stock issued to HVHC shareholders $ 566,307 HVHC net book value Fair value adjustments As recorded at acquisition Cash and cash equivalents $ 878,988 $ — $ 878,988 Investment securities 713,625 217 (a) 713,842 Loans 1,816,767 (24,248 ) (b) 1,792,519 Federal Reserve Bank stock 5,830 — 5,830 Bank owned life insurance 44,231 — 44,231 Premises and equipment 11,918 4,925 (c) 16,843 Accrued interest receivable 7,392 — 7,392 Core deposits and other intangibles — 33,839 (d) 33,839 Other real estate owned 222 — 222 Other assets 32,639 (7,931 ) (e) 24,708 Deposits (3,160,746 ) — (3,160,746 ) Other borrowings (25,366 ) — (25,366 ) Other liabilities (37,292 ) 1,540 (f) (35,752 ) Total identifiable net assets $ 288,208 $ 8,342 $ 296,550 Goodwill recorded in the HVB Merger $ 269,757 Explanation of certain fair value related adjustments: (a) Represents the fair value adjustment on investment securities held to maturity. (b) Represents the elimination of HVHC ’ s allowance for loan losses and an adjustment of the net book value of loans to estimated fair value, which includes an interest rate mark and credit mark adjustment. (c) Represents an adjustment to reflect the fair value of HVHC owned real estate as determined by independent appraisals, which will be amortized on a straight-line basis over the estimated useful lives of the individual assets. (d) Represents intangible assets recorded to reflect the fair value of core deposits. 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. (e) Represents an adjustment in net deferred tax assets resulting from the fair value adjustments related to the acquired assets, liabilities assumed and identifiable intangibles recorded. (f) Represents the elimination of HVHC’s deferred rent liability. |
Pro Forma Information | The unaudited pro forma information, for the nine months ended September 30, 2015 and 2014 , set forth below 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 the nine months ended September 30, 2015 to write-down assets and accrue for retention and severance compensation are assumed to have occurred prior to January 1, 2014. 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 nine months ended September 30, 2015 2014 Net interest income $ 264,850 $ 241,326 Non-interest income 50,605 48,601 Non-interest expense 204,034 206,432 Net income 67,295 47,084 Pro forma earnings per share from continuing operations: Basic $ 0.53 $ 0.39 Diluted 0.52 0.39 |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of securities available for sale | A summary of amortized cost and estimated fair value of our securities as of September 30, 2015 and December 31, 2014 is presented below: September 30, 2015 Available for Sale Held to Maturity Amortized cost Gross unrealized gains Gross unrealized losses Fair value Amortized cost Gross unrecognized gains Gross unrecognized losses Fair value Residential MBS: Agency-backed $ 1,048,193 $ 9,206 $ (1,159 ) $ 1,056,240 $ 228,360 $ 4,484 $ (253 ) $ 232,591 CMO/Other MBS 84,430 418 (501 ) 84,347 52,201 571 (76 ) 52,696 Total residential MBS 1,132,623 9,624 (1,660 ) 1,140,587 280,561 5,055 (329 ) 285,287 Other securities: Federal agencies 86,746 77 (63 ) 86,760 103,976 3,673 (236 ) 107,413 Corporate 402,661 1,276 (4,279 ) 399,658 25,287 88 (19 ) 25,356 State and municipal 188,324 2,445 (235 ) 190,534 258,306 7,547 (208 ) 265,645 Trust preferred 27,926 606 — 28,532 — — — — Other 8,781 10 — 8,791 5,000 348 — 5,348 Total other securities 714,438 4,414 (4,577 ) 714,275 392,569 11,656 (463 ) 403,762 Total securities $ 1,847,061 $ 14,038 $ (6,237 ) $ 1,854,862 $ 673,130 $ 16,711 $ (792 ) $ 689,049 December 31, 2014 Available for Sale Held to Maturity Amortized cost Gross unrealized gains Gross unrealized losses Fair value Amortized cost Gross unrecognized gains Gross unrecognized losses Fair value Residential MBS: Agency-backed $ 528,818 $ 5,398 $ (553 ) $ 533,663 $ 138,589 $ 2,763 $ (2 ) $ 141,350 CMO/Other MBS 85,619 178 (959 ) 84,838 60,166 58 (564 ) 59,660 Total residential MBS 614,437 5,576 (1,512 ) 618,501 198,755 2,821 (566 ) 201,010 Other securities: Federal agencies 150,623 4 (3,471 ) 147,156 136,618 4,328 (548 ) 140,398 Corporate 206,267 319 (1,755 ) 204,831 — — — — State and municipal 129,576 2,737 (248 ) 132,065 231,964 7,713 (89 ) 239,588 Trust preferred 37,687 652 (46 ) 38,293 — — — — Other — — — — 5,000 350 — 5,350 Total other securities 524,153 3,712 (5,520 ) 522,345 373,582 12,391 (637 ) 385,336 Total securities $ 1,138,590 $ 9,288 $ (7,032 ) $ 1,140,846 $ 572,337 $ 15,212 $ (1,203 ) $ 586,346 |
Summary of securities held-to-maturity | A summary of amortized cost and estimated fair value of our securities as of September 30, 2015 and December 31, 2014 is presented below: September 30, 2015 Available for Sale Held to Maturity Amortized cost Gross unrealized gains Gross unrealized losses Fair value Amortized cost Gross unrecognized gains Gross unrecognized losses Fair value Residential MBS: Agency-backed $ 1,048,193 $ 9,206 $ (1,159 ) $ 1,056,240 $ 228,360 $ 4,484 $ (253 ) $ 232,591 CMO/Other MBS 84,430 418 (501 ) 84,347 52,201 571 (76 ) 52,696 Total residential MBS 1,132,623 9,624 (1,660 ) 1,140,587 280,561 5,055 (329 ) 285,287 Other securities: Federal agencies 86,746 77 (63 ) 86,760 103,976 3,673 (236 ) 107,413 Corporate 402,661 1,276 (4,279 ) 399,658 25,287 88 (19 ) 25,356 State and municipal 188,324 2,445 (235 ) 190,534 258,306 7,547 (208 ) 265,645 Trust preferred 27,926 606 — 28,532 — — — — Other 8,781 10 — 8,791 5,000 348 — 5,348 Total other securities 714,438 4,414 (4,577 ) 714,275 392,569 11,656 (463 ) 403,762 Total securities $ 1,847,061 $ 14,038 $ (6,237 ) $ 1,854,862 $ 673,130 $ 16,711 $ (792 ) $ 689,049 December 31, 2014 Available for Sale Held to Maturity Amortized cost Gross unrealized gains Gross unrealized losses Fair value Amortized cost Gross unrecognized gains Gross unrecognized losses Fair value Residential MBS: Agency-backed $ 528,818 $ 5,398 $ (553 ) $ 533,663 $ 138,589 $ 2,763 $ (2 ) $ 141,350 CMO/Other MBS 85,619 178 (959 ) 84,838 60,166 58 (564 ) 59,660 Total residential MBS 614,437 5,576 (1,512 ) 618,501 198,755 2,821 (566 ) 201,010 Other securities: Federal agencies 150,623 4 (3,471 ) 147,156 136,618 4,328 (548 ) 140,398 Corporate 206,267 319 (1,755 ) 204,831 — — — — State and municipal 129,576 2,737 (248 ) 132,065 231,964 7,713 (89 ) 239,588 Trust preferred 37,687 652 (46 ) 38,293 — — — — Other — — — — 5,000 350 — 5,350 Total other securities 524,153 3,712 (5,520 ) 522,345 373,582 12,391 (637 ) 385,336 Total securities $ 1,138,590 $ 9,288 $ (7,032 ) $ 1,140,846 $ 572,337 $ 15,212 $ (1,203 ) $ 586,346 |
Summary of amortized cost and fair value of investment securities available for sale by remaining period to contractual maturity | September 30, 2015 Available for sale Held to maturity Amortized cost Fair value Amortized cost Fair value Other securities remaining period to contractual maturity: One year or less $ 27,914 $ 28,001 $ 15,166 $ 15,287 One to five years 362,015 362,461 31,610 32,858 Five to ten years 286,257 284,815 234,692 240,979 Greater than ten years 38,252 38,998 111,101 114,638 Total other securities 714,438 714,275 392,569 403,762 Residential MBS 1,132,623 1,140,587 280,561 285,287 Total securities $ 1,847,061 $ 1,854,862 $ 673,130 $ 689,049 |
Sale of securities | Sales of securities for the periods indicated below were as follows: For the three months ended For the nine months ended September 30, September 30, 2015 2014 2015 2014 Available for sale: Proceeds from sales $ 606,459 $ 51,151 $ 808,892 $ 282,673 Gross realized gains 3,079 292 5,702 2,303 Gross realized losses (353 ) (259 ) (744 ) (1,016 ) Income tax expense on realized net gains 886 9 1,611 374 |
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 for the periods presented below: Continuous unrealized loss position Less than 12 months 12 months or longer Total Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available for sale September 30, 2015 Residential MBS: Agency-backed $ 194,747 $ (851 ) $ 19,899 $ (308 ) $ 214,646 $ (1,159 ) CMO/Other MBS 15,530 (61 ) 25,019 (440 ) 40,549 (501 ) Total residential MBS 210,277 (912 ) 44,918 (748 ) 255,195 (1,660 ) Other securities: Federal agencies 5,947 (1 ) 15,381 (62 ) 21,328 (63 ) Corporate 234,658 (3,505 ) 24,891 (774 ) 259,549 (4,279 ) State and municipal 35,945 (193 ) 3,587 (42 ) 39,532 (235 ) Total other securities 276,550 (3,699 ) 43,859 (878 ) 320,409 (4,577 ) Total $ 486,827 $ (4,611 ) $ 88,777 $ (1,626 ) $ 575,604 $ (6,237 ) December 31, 2014 Residential MBS: Agency-backed $ 17,379 $ (37 ) $ 21,616 $ (516 ) $ 38,995 $ (553 ) CMO/Other MBS 25,551 (206 ) 43,475 (753 ) 69,026 (959 ) Total residential MBS 42,930 (243 ) 65,091 (1,269 ) 108,021 (1,512 ) Other securities: Federal agencies 5,959 (87 ) 140,699 (3,384 ) 146,658 (3,471 ) Corporate 85,055 (731 ) 65,648 (1,024 ) 150,703 (1,755 ) State and municipal 12,012 (68 ) 11,400 (180 ) 23,412 (248 ) Trust preferred 3,900 (46 ) — — 3,900 (46 ) Total other securities 106,926 (932 ) 217,747 (4,588 ) 324,673 (5,520 ) Total $ 149,856 $ (1,175 ) $ 282,838 $ (5,857 ) $ 432,694 $ (7,032 ) |
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 unrecognized losses, segregated by the length of time in a continuous unrecognized loss position for the periods presented below: Continuous unrecognized loss position Less than 12 months 12 months or longer Total Fair value Unrecognized losses Fair value Unrecognized losses Fair value Unrecognized losses Held to maturity September 30, 2015 Residential MBS: Agency-backed $ 9,989 $ (253 ) $ — $ — $ 9,989 $ (253 ) CMO (1) /Other MBS 2,511 (10 ) 6,389 (66 ) 8,900 (76 ) Total residential MBS 12,500 (263 ) 6,389 (66 ) 18,889 (329 ) Other securities: Federal agencies 9,948 (52 ) 14,816 (184 ) 24,764 (236 ) Corporate 5,268 (19 ) — — 5,268 (19 ) State and municipal 21,104 (166 ) 2,754 (42 ) 23,858 (208 ) Total other securities 36,320 (237 ) 17,570 (226 ) 53,890 (463 ) Total $ 48,820 $ (500 ) $ 23,959 $ (292 ) $ 72,779 $ (792 ) December 31, 2014 Residential MBS: Agency-backed $ 1,208 $ (2 ) $ — $ — $ 1,208 $ (2 ) CMO/Other MBS — — 42,979 (564 ) 42,979 (564 ) Total residential MBS 1,208 (2 ) 42,979 (564 ) 44,187 (566 ) Other securities: Federal agencies 9,711 (289 ) 14,741 (259 ) 24,452 (548 ) State and municipal 11,501 (86 ) 233 (3 ) 11,734 (89 ) Total other securities 21,212 (375 ) 14,974 (262 ) 36,186 (637 ) Total $ 22,420 $ (377 ) $ 57,953 $ (826 ) $ 80,373 $ (1,203 ) |
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 for the periods presented below: September 30, December 31, 2015 2014 Available for sale securities pledged for borrowings, at fair value $ 154,629 $ 187,314 Available for sale securities pledged for municipal deposits, at fair value 1,050,013 550,681 Available for sale securities pledged for customer back-to-back swaps, at fair value 2,152 1,959 Held to maturity securities pledged for borrowings, at amortized cost 211,385 154,712 Held to maturity securities pledged for municipal deposits, at amortized cost 353,646 352,843 Total securities pledged $ 1,771,825 $ 1,247,509 |
Portfolio Loans (Tables)
Portfolio Loans (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [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 for the periods presented below: September 30, December 31, 2015 2014 Commercial: Commercial & industrial (“C&I”) $ 1,652,556 $ 1,244,555 Payroll finance 193,669 154,229 Warehouse lending 318,634 173,786 Factored receivables 252,868 161,625 Equipment financing 597,316 411,449 Total commercial 3,015,043 2,145,644 Commercial mortgage: Commercial real estate 2,569,762 1,458,277 Multi-family 750,931 384,544 Acquisition, development & construction (“ADC”) 177,062 96,995 Total commercial mortgage 3,497,755 1,939,816 Total commercial and commercial mortgage 6,512,798 4,085,460 Residential mortgage 721,606 529,766 Consumer: Home equity lines of credit 256,020 163,569 Other consumer loans 35,208 36,846 Total consumer 291,228 200,415 Total portfolio loans 7,525,632 4,815,641 Allowance for loan losses (47,611 ) (42,374 ) Portfolio loans, net $ 7,478,021 $ 4,773,267 |
Schedule of amounts and status of loans and TDRs | The following tables set forth the amounts and status of the Company’s loans, troubled debt restructurings (“TDRs”) and non-performing loans at September 30, 2015 and December 31, 2014 : September 30, 2015 Current 30-59 days past due 60-89 days past due 90+ days past due Non- accrual Total Commercial & industrial $ 1,630,894 $ 8,788 $ 1,792 $ 77 $ 11,005 $ 1,652,556 Payroll finance 193,562 23 7 77 — 193,669 Warehouse lending 318,634 — — — — 318,634 Factored receivables 252,641 — — — 227 252,868 Equipment financing 593,930 753 1,501 — 1,132 597,316 Commercial real estate 2,541,565 4,492 1,884 — 21,821 2,569,762 Multi-family 749,172 656 — — 1,103 750,931 ADC 169,454 2,893 — 59 4,656 177,062 Residential mortgage 697,343 4,122 950 — 19,191 721,606 Consumer 279,884 2,334 686 69 8,255 291,228 Total portfolio loans $ 7,427,079 $ 24,061 $ 6,820 $ 282 $ 67,390 $ 7,525,632 Total TDRs included above $ 15,557 $ 894 $ 181 $ 59 $ 8,240 $ 24,931 Non-performing loans: Loans 90+ days past due and still accruing $ 282 Non-accrual loans 67,390 Total non-performing loans $ 67,672 December 31, 2014 Current 30-59 days past due 60-89 days past due 90+ days past due Non- accrual Total Commercial & industrial $ 1,232,363 $ 6,237 $ 920 $ 60 $ 4,975 $ 1,244,555 Payroll finance 154,114 — — 115 — 154,229 Warehouse lending 173,786 — — — — 173,786 Factored receivables 161,381 — — — 244 161,625 Equipment financing 410,483 707 19 — 240 411,449 Commercial real estate 1,433,235 7,982 5,322 452 11,286 1,458,277 Multi-family 383,799 317 — 156 272 384,544 ADC 89,730 401 451 — 6,413 96,995 Residential mortgage 509,597 2,935 975 — 16,259 529,766 Consumer 191,528 1,110 1,607 — 6,170 200,415 Total loans $ 4,740,016 $ 19,689 $ 9,294 $ 783 $ 45,859 $ 4,815,641 Total TDRs included above $ 16,238 $ 847 $ 176 $ — $ 11,427 $ 28,688 Non-performing loans: Loans 90+ days past due and still accruing $ 783 Non-accrual loans 45,859 Total non-performing loans $ 46,642 |
Allowance for loan losses activity | Activity in the allowance for loan losses for the three and nine months ended September 30, 2015 and 2014 is summarized below: For the three months ended September 30, 2015 Beginning balance Charge-offs Recoveries Net charge-offs Provision Ending balance Commercial & industrial $ 11,350 $ (224 ) $ 781 $ 557 $ 197 $ 12,104 Payroll finance 1,650 (44 ) — (44 ) 241 1,847 Warehouse lending 1,263 — — — (136 ) 1,127 Factored receivables 1,496 (52 ) 18 (34 ) 343 1,805 Equipment financing 3,245 (1,369 ) 148 (1,221 ) 2,297 4,321 Commercial real estate 11,100 (223 ) 76 (147 ) 1,722 12,675 Multi-family 2,405 — — — (248 ) 2,157 ADC 2,425 — — — (332 ) 2,093 Residential mortgage 4,937 (546 ) 81 (465 ) 517 4,989 Consumer 4,446 (387 ) 35 (352 ) 399 4,493 Total allowance for loan losses $ 44,317 $ (2,845 ) $ 1,139 $ (1,706 ) $ 5,000 $ 47,611 Annualized net charge-offs to average loans outstanding 0.09 % For the three months ended September 30, 2014 Beginning balance Charge-offs Recoveries Net charge-offs Provision Ending balance Commercial & industrial $ 8,997 $ (240 ) $ 419 $ 179 $ 360 $ 9,536 Payroll finance 1,048 (758 ) — (758 ) 1,089 1,379 Warehouse lending 395 — — — 235 630 Factored receivables 639 (43 ) 9 (34 ) 689 1,294 Equipment financing 1,657 (451 ) 194 (257 ) 1,221 2,621 Commercial real estate 9,113 (135 ) 3 (132 ) 1,863 10,844 Multi-family 2,202 — 92 92 (427 ) 1,867 ADC 3,747 (1 ) — (1 ) (1,626 ) 2,120 Residential mortgage 4,746 (418 ) 314 (104 ) 1,195 5,837 Consumer 3,806 (113 ) 40 (73 ) 751 4,484 Total allowance for loan losses $ 36,350 $ (2,159 ) $ 1,071 $ (1,088 ) $ 5,350 $ 40,612 Annualized net charge-offs to average loans outstanding 0.09 % For the nine months ended September 30, 2015 Beginning Charge-offs Recoveries Net Provision Ending balance Commercial & industrial $ 11,027 $ (1,294 ) $ 1,045 $ (249 ) $ 1,326 $ 12,104 Payroll finance 1,506 (406 ) 11 (395 ) 736 1,847 Warehouse lending 608 — — — 519 1,127 Factored receivables 1,205 (270 ) 46 (224 ) 824 1,805 Equipment financing 2,569 (1,960 ) 416 (1,544 ) 3,296 4,321 Commercial real estate 10,121 (561 ) 92 (469 ) 3,023 12,675 Multi-family 2,111 (17 ) — (17 ) 63 2,157 ADC 2,987 — 9 9 (903 ) 2,093 Residential mortgage 5,843 (727 ) 92 (635 ) (219 ) 4,989 Consumer 4,397 (1,550 ) 111 (1,439 ) 1,535 4,493 Total allowance for loan losses $ 42,374 $ (6,785 ) $ 1,822 $ (4,963 ) $ 10,200 $ 47,611 Annualized net charge-offs to average loans outstanding 0.11 % For the nine months ended September 30, 2014 Beginning Charge-offs Recoveries Net Provision Ending balance Commercial & industrial $ 6,886 $ (2,295 ) $ 572 $ (1,723 ) $ 4,373 $ 9,536 Payroll finance — (758 ) — (758 ) 2,137 1,379 Warehouse lending — — — — 630 630 Factored receivables — (289 ) 9 (280 ) 1,574 1,294 Equipment financing — (1,074 ) 194 (880 ) 3,501 2,621 Commercial real estate 8,040 (488 ) 124 (364 ) 3,168 10,844 Multi-family 1,952 — 92 92 (177 ) 1,867 ADC 5,857 (1,261 ) — (1,261 ) (2,476 ) 2,120 Residential mortgage 4,600 (693 ) 316 (377 ) 1,614 5,837 Consumer 3,277 (639 ) 90 (549 ) 1,756 4,484 Total allowance for loan losses $ 30,612 $ (7,497 ) $ 1,397 $ (6,100 ) $ 16,100 $ 40,612 Annualized net charge-offs to average loans outstanding 0.19 % |
Schedule of changes in the balance of accretable yield discount for PCI loans | The following table presents shows the changes in the balance of the accretable yield discount for PCI loans for the three and nine months ended September 30, 2015 and 2014: For the three months ended September 30, For the nine months ended September 30, 2015 2014 2015 2014 Balance at beginning of period $ 13,201 $ 748 $ 724 $ 2,841 Balance acquired in HVB Merger — — 12,527 — Accretion of income (862 ) — (862 ) — Disposals — (24 ) (50 ) (2,117 ) Reclassification from non-accretable difference 413 — 413 — Balance at end of period $ 12,752 $ 724 $ 12,752 $ 724 |
Impaired financing receivables | The following table sets forth loans evaluated for impairment by segment and the allowance evaluated by segment at September 30, 2015 : Loans evaluated by segment Allowance evaluated by segment Individually evaluated for impairment Collectively evaluated for impairment Purchased credit impaired loans Total loans Individually evaluated for impairment Collectively evaluated for impairment Total allowance for loan losses Commercial & industrial $ 3,630 $ 1,631,054 $ 17,872 $ 1,652,556 $ — $ 12,104 $ 12,104 Payroll finance — 193,669 — 193,669 — 1,847 1,847 Warehouse lending — 318,634 — 318,634 — 1,127 1,127 Factored receivables — 252,868 — 252,868 — 1,805 1,805 Equipment financing 670 596,646 — 597,316 — 4,321 4,321 Commercial real estate 13,974 2,494,999 60,789 2,569,762 — 12,675 12,675 Multi-family 922 745,576 4,433 750,931 — 2,157 2,157 ADC 8,724 162,783 5,555 177,062 — 2,093 2,093 Residential mortgage 515 713,587 7,504 721,606 — 4,989 4,989 Consumer — 289,611 1,617 291,228 — 4,493 4,493 Total loans $ 28,435 $ 7,399,427 $ 97,770 $ 7,525,632 $ — $ 47,611 $ 47,611 The following table sets forth loans evaluated for impairment by segment and the allowance evaluated by segment at December 31, 2014 : Loans evaluated by segment Allowance evaluated by segment Individually evaluated for impairment Collectively evaluated for impairment Purchased credit impaired loans Total loans Individually evaluated for impairment Collectively evaluated for impairment Total allowance for loan losses Commercial & industrial $ 4,461 $ 1,238,899 $ 1,195 $ 1,244,555 $ — $ 11,027 $ 11,027 Payroll finance — 154,229 — 154,229 — 1,506 1,506 Warehouse lending — 173,786 — 173,786 — 608 608 Factored receivables — 161,625 — 161,625 — 1,205 1,205 Equipment financing — 411,449 — 411,449 — 2,569 2,569 Commercial real estate 14,423 1,443,714 140 1,458,277 — 10,121 10,121 Multi-family — 384,544 — 384,544 — 2,111 2,111 ADC 11,624 85,371 — 96,995 — 2,987 2,987 Residential mortgage 515 527,171 2,080 529,766 — 5,843 5,843 Consumer — 200,415 — 200,415 — 4,397 4,397 Total loans $ 31,023 $ 4,781,203 $ 3,415 $ 4,815,641 $ — $ 42,374 $ 42,374 The following table presents loans individually evaluated for impairment, excluding purchased credit impaired loans, by segment of loans at September 30, 2015 and December 31, 2014 : C&I Commercial real estate ADC Residential mortgage Total Loans with no related allowance recorded: September 30, 2015 Unpaid principal balance $ 4,300 $ 15,453 $ 8,769 $ 515 $ 29,037 Recorded investment 4,300 14,896 8,724 515 28,435 December 31, 2014 Unpaid principal balance 4,571 14,635 12,848 515 32,569 Recorded investment 4,461 14,423 11,624 515 31,023 The following tables present the average recorded investment and interest income recognized related to loans individually evaluated for impairment by segment for the three months ended September 30, 2015 and September 30, 2014 : September 30, 2015 September 30, 2014 QTD average recorded investment Interest income recognized Cash-basis interest income recognized QTD average recorded investment Interest income recognized Cash-basis interest income recognized Loans with no related allowance recorded: Commercial & industrial $ 3,637 $ — $ — $ 6,266 $ — $ — Equipment financing 670 — — — — — Commercial real estate 14,217 42 — 20,857 92 — Multi-family 922 — — — — — ADC 8,800 56 — 28,622 71 — Residential mortgage 515 — — 772 — — Total $ 28,761 $ 98 $ — $ 56,517 $ 163 $ — There were no impaired loans with an allowance recorded at September 30, 2015 or September 30, 2014 . At September 30, 2015 and September 30, 2014 , there were no factored receivable, payroll finance, warehouse lending, or consumer impaired loans. The following table presents the average recorded investment and interest income recognized related to loans individually evaluated for impairment by segment for the nine months ended September 30, 2015 and September 30, 2014 : September 30, 2015 September 30, 2014 YTD average recorded investment Interest income recognized Cash-basis interest income recognized YTD average recorded investment Interest income recognized Cash-basis interest income recognized Loans with no related allowance recorded: Commercial & industrial $ 3,647 $ — $ — $ 4,177 $ — $ — Equipment financing 670 — — — — — Commercial real estate 14,529 125 — 13,952 185 — Multi-family 923 — — — — — ADC 8,831 171 — 19,804 152 — Residential mortgage 515 — — 515 — — Total $ 29,115 $ 296 $ — $ 38,448 $ 337 $ — |
Troubled debt restructurings | The following table presents loans by segment modified as TDRs that occurred during the first nine months of 2015 and 2014 : September 30, 2015 September 30, 2014 Recorded investment Recorded investment Number Pre- modification Post- modification Number Pre- modification Post- modification ADC — — — 2 1,060 1,060 Total TDRs — $ — $ — 2 $ 1,060 $ 1,060 The following tables set forth the amounts and past due status of the Company’s TDRs at September 30, 2015 and December 31, 2014 : September 30, 2015 Current loans 30-59 days past due 60-89 days past due 90+ days past due Non- accrual Total Commercial & industrial $ 156 $ — $ — $ — $ 2,065 $ 2,221 Equipment financing 359 — — — — 359 Commercial real estate 4,793 260 — — — 5,053 ADC 5,180 — — 59 3,641 8,880 Residential mortgage 5,069 634 181 — 2,354 8,238 Consumer — — — — 180 180 Total $ 15,557 $ 894 $ 181 $ 59 $ 8,240 $ 24,931 December 31, 2014 Current loans 30-59 days past due 60-89 days past due 90+ days past due Non- accrual Total Commercial & industrial $ 245 $ — $ — $ — $ 2,065 $ 2,310 Equipment financing 409 — — — — 409 Commercial real estate 4,833 263 — — — 5,096 ADC 5,487 — — — 6,373 11,860 Residential mortgage 5,264 584 176 — 2,768 8,792 Consumer — — — — 221 221 Total $ 16,238 $ 847 $ 176 $ — $ 11,427 $ 28,688 |
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, 2015 and December 31, 2014 , the risk category of gross loans by segment was as follows: September 30, 2015 December 31, 2014 Special mention Substandard Doubtful Special mention Substandard Commercial & industrial $ 37,974 $ 15,342 $ — $ 13,060 $ 7,730 Payroll finance 328 96 — 996 115 Factored receivables — 1,597 — 34 244 Equipment financing 493 1,379 — — 240 Commercial real estate 40,878 59,247 — 12,707 28,194 Multi-family 2,788 1,759 — 317 272 ADC 6,783 11,652 — 1,027 16,016 Residential mortgage 950 20,344 — 975 16,402 Consumer 882 9,268 152 1,200 6,690 Total $ 91,076 $ 120,684 $ 152 $ 30,316 $ 75,903 |
Goodwill and Other Intangible31
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill and intangible assets | The balance of goodwill and other intangible assets for the periods presented were as follows: September 30, December 31, 2015 2014 Goodwill $ 670,699 $ 388,926 Other intangible assets: Core deposits $ 48,264 $ 18,473 Customer lists 8,256 — Non-compete agreements 3,590 3,959 Trade name 20,500 20,500 Fair value of below market leases 220 400 Total other intangible assets $ 80,830 $ 43,332 |
Future amortization expense | The estimated aggregate future amortization expense for intangible assets remaining as of September 30, 2015 was as follows: Amortization expense Remainder of 2015 $ 3,463 2016 11,953 2017 8,088 2018 7,098 2019 6,074 2020 5,428 Thereafter 18,226 Total $ 60,330 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Deposits [Abstract] | |
Summary of major classification of deposits | Deposit balances at September 30, 2015 and December 31, 2014 were summarized as follows: September 30, December 31, 2015 2014 Non-interest bearing demand $ 3,126,258 $ 1,481,870 Interest bearing demand 1,602,613 747,667 Savings 908,497 711,509 Money market 2,621,029 1,790,435 Certificates of deposit 547,014 480,844 Total deposits $ 8,805,411 $ 5,212,325 |
List of Company's Brokered deposits | Listed below are the Company’s brokered deposits: September 30, December 31, 2015 2014 Money market $ 288,778 $ 75,462 Reciprocal CDARs 1 3,779 6,666 CDARs one way 19,752 86,530 Total brokered deposits $ 312,309 $ 168,658 1 Certificate of deposit account registry service |
Borrowings and Senior Notes (Ta
Borrowings and Senior Notes (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Instruments [Abstract] | |
Schedule of debt | The Company’s borrowings and weighted average interest rates are summarized as follows for the periods presented: September 30, December 31, 2015 2014 Amount Rate Amount Rate By type of borrowing: FHLB borrowings $ 806,970 1.62 % $ 1,003,209 1.37 % Other borrowings (repurchase agreements) 42,286 0.34 9,846 0.30 Senior notes 98,792 5.98 98,498 5.98 Total borrowings $ 948,048 2.02 % $ 1,111,553 1.77 % By remaining period to maturity: Less than one year $ 489,499 0.47 % $ 532,835 0.39 % One to two years 257,470 3.51 152,760 0.69 Two to three years 198,791 3.86 255,000 3.54 Three to four years — — 168,498 4.38 Greater than five years 2,288 4.92 2,460 4.92 Total borrowings $ 948,048 2.02 % $ 1,111,553 1.77 % |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedges, Assets [Abstract] | |
Summary of derivatives | Summary information as of September 30, 2015 and December 31, 2014 regarding these derivatives is presented below: Notional amount Average maturity (in years) Weighted average fixed rate Weighted average variable rate Fair value September 30, 2015 3rd party interest rate swap $ 64,581 5.61 4.11 % 1 m Libor + 2.17 $ 2,152 Customer interest rate swap (64,581 ) 5.61 4.11 1 m Libor + 2.17 (2,152 ) December 31, 2014 3rd party interest rate swap 67,551 4.70 4.13 1 m Libor + 2.36 1,332 Customer interest rate swap (67,551 ) 4.70 4.13 1 m Libor + 2.36 (1,332 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
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 three months ended For the nine months ended September 30, September 30, 2015 2014 2015 2014 Income before income tax expense $ 35,841 $ 22,789 $ 49,365 $ 58,776 Tax at Federal statutory rate of 35% 12,543 7,977 17,278 20,572 State and local income taxes, net of Federal tax benefit 1,888 (355 ) 2,379 1,097 Tax-exempt interest, net of disallowed interest (1,171 ) (1,115 ) (3,345 ) (3,086 ) BOLI income (423 ) (270 ) (1,114 ) (851 ) Non-deductible acquisition related costs — — 700 — Low income housing tax credits (53 ) (53 ) (161 ) (453 ) Other, net (1,136 ) 268 306 (183 ) Actual income tax (benefit) expense $ 11,648 $ 6,452 $ 16,043 $ 17,096 Effective income tax rate 32.5 % 28.3 % 32.5 % 29.1 % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Summary of Company's stock option activity | The following table summarizes the activity in the Company’s active stock-based compensation plans for the nine months ended September 30, 2015 : 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 January 1, 2015 1,999,022 643,887 $ 11.79 2,040,299 $ 11.10 2015 Plan 2,800,000 — — — — Granted (1) (463,356 ) 166,379 13.71 19,566 14.02 Stock awards vested — (52,471 ) 11.33 — — Exercised — — — (384,781 ) 11.65 Forfeited 180,217 (31,295 ) 12.90 (70,371 ) 12.89 Canceled/expired (121,550 ) — — — — Balance at September 30, 2015 4,394,333 726,500 $ 12.21 1,604,713 $ 10.93 Exercisable at September 30, 2015 807,598 $ 9.93 (1) Reflects certain non-vested stock awards granted under the 2014 Plan that counted as 3.5 shares for each share granted. |
Schedule of valuation assumptions | The fair value of options granted was determined using the following weighted average assumptions as of the grant date: For the nine months ended September 30, 2015 2014 Risk-free interest rate 1.9 % — % Expected stock price volatility 21.1 — Dividend yield (1) 3.1 — Expected term in years 5.76 — (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 periods presented below: For the three months For the nine months ended September 30, ended September 30, 2015 2014 2015 2014 Stock options $ 201 $ 251 $ 740 $ 682 Non-vested stock awards/performance units 863 573 2,580 1,707 Total $ 1,064 $ 824 $ 3,320 $ 2,389 Income tax benefit 68 219 727 456 Proceeds from stock option exercises 3,596 1,563 |
Unrecognized stock-based compensation expense | Unrecognized stock-based compensation expense as of September 30, 2015 was as follows: September 30, 2015 Stock options $ 896 Non-vested stock awards/performance units 5,219 Total $ 6,115 |
Pension and Other Post Retire37
Pension and Other Post Retirement Plans (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of net pension (benefit) expense and post-retirement expense | Net pension expense (benefit) and post-retirement expense (benefit) is comprised of the following for the periods presented below: Pension plan Other post retirement plans For the three months ended For the three months ended September 30, September 30, 2015 2014 2015 2014 Service cost $ — $ — $ 2 $ 16 Interest cost 589 734 119 584 Expected return on plan assets (729 ) (892 ) — — Net amortization and deferral 90 49 44 205 Plan termination charge (settlement benefit) 13,384 — — (2,485 ) Total pension and other post-retirement expense (benefit) $ 13,334 $ (109 ) $ 165 $ (1,680 ) Pension plan Other post retirement plans For the nine months ended For the nine months ended September 30, September 30, 2015 2014 2015 2014 Service cost $ — $ — $ 4 $ 39 Interest cost 1,766 2,228 384 649 Expected return on plan assets (2,187 ) (2,709 ) — — Net amortization and deferral 272 129 121 241 Plan termination charge (settlement benefit) 13,384 1,486 — (2,485 ) Total pension and other post-retirement expense (benefit) $ 13,235 $ 1,134 $ 509 $ (1,556 ) |
Other Non-interest Expense (Tab
Other Non-interest Expense (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Non-interest Expense | Other non-interest expense items for the three- and nine-month periods ended September 30, 2015 and 2014, respectively, 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 three months ended For the nine months ended September 30, September 30, 2015 2014 2015 2014 Other non-interest expense: Advertising and promotion $ 699 $ 664 $ 1,771 $ 2,048 Professional fees 2,159 1,913 6,173 5,079 Data and check processing 2,667 1,065 6,383 2,796 Insurance & surety bond premium 1,161 675 2,290 2,086 Charge for asset write-downs — — 29,026 2,321 Other 5,472 4,855 12,921 12,435 Total other non-interest expense $ 12,158 $ 9,172 $ 58,564 $ 26,765 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted earnings per share | The following table presents a reconciliation of net income available to common stockholders, net earnings allocated to common stock and the number of shares used in the calculation of basic and diluted earnings per common share: For the three months ended For the nine months ended September 30, September 30, 2015 2014 2015 2014 Basic: Net income $ 24,193 $ 16,337 $ 33,322 $ 41,680 Less: Earnings allocated to participating securities 105 98 247 254 Net earnings attributable to common stock 24,088 16,239 33,075 41,426 Distributed earnings allocated to common stock 9,031 5,932 21,196 17,569 Undistributed earnings allocated to common stock 15,057 10,307 11,879 23,857 Net earnings attributable to common stock $ 24,088 $ 16,239 $ 33,075 $ 41,426 Weighted average total shares outstanding 129,733,911 83,610,943 103,199,765 83,563,334 Less: Weighted average participating securities 561,079 504,999 544,199 512,142 Weighted average common shares outstanding 129,172,832 83,105,944 102,655,566 83,051,192 Basic earnings per common share $ 0.19 $ 0.20 $ 0.32 $ 0.50 Diluted: Net earnings attributable to common stock $ 24,088 $ 16,239 $ 33,075 $ 41,426 Weighted average common shares outstanding 129,172,832 83,105,944 102,655,566 83,051,192 Dilutive effect of stock-based compensation 459,026 272,518 413,491 264,894 Weighted average diluted shares outstanding 129,631,858 83,378,462 103,069,057 83,316,086 Diluted earnings per common share $ 0.19 $ 0.19 $ 0.32 $ 0.50 Dividends per common share $ 0.07 $ 0.07 $ 0.21 $ 0.21 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following table presents actual and required capital ratios as of September 30, 2015 for the Company and the Bank under the Basel III Capital Rules. The minimum required capital amounts presented include the minimum required capital levels as of September 30, 2015 based on the phase-in provisions of the Basel III Capital Rules and the minimum required capital levels as of January 1, 2019 when the Basel III Capital Rules have been fully phased-in. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules. Actual Minimum capital required - Basel III phase-in schedule Minimum capital required - Basel III fully phased-in Required to be considered well capitalized Capital amount Ratio Capital amount Ratio Capital amount Ratio Capital amount Ratio September 30, 2015 Common equity tier 1 to RWA: Sterling National Bank $ 1,032,930 11.79 % $ 394,214 4.50 % $ 613,221 7.00 % $ 569,420 6.50 % Sterling Bancorp 963,090 10.94 396,017 4.50 616,026 7.00 N/A N/A Tier 1 capital to RWA: Sterling National Bank 1,032,930 11.79 % 525,618 6.00 % 744,626 8.50 % 700,824 8.00 % Sterling Bancorp 963,090 10.94 528,022 6.00 748,031 8.50 N/A N/A Total capital to RWA: Sterling National Bank 1,081,090 12.34 % 700,824 8.00 % 919,832 10.50 % 876,030 10.00 % Sterling Bancorp 1,011,250 11.49 704,030 8.00 924,039 10.50 N/A N/A Tier 1 leverage ratio: Sterling National Bank 1,032,930 9.80 % 421,732 4.00 % 421,732 4.00 % 527,165 5.00 % Sterling Bancorp 963,090 9.12 422,388 4.00 422,388 4.00 N/A N/A The following table presents actual and required capital ratios as of December 31, 2014 for the Bank and the Company under the regulatory capital rules then in effect: Regulatory requirements Actual Minimum capital adequacy Classification as well- capitalized Capital amount Ratio Capital amount Ratio Capital amount Ratio December 31, 2014 Tier 1 capital to RWA: Sterling National Bank $ 651,203 12.00 % $ 216,988 4.00 % $ 325,481 6.00 % Sterling Bancorp 569,609 10.43 218,405 4.00 N/A N/A Total capital to RWA: Sterling National Bank 693,972 12.79 % 433,975 8.00 % 542,469 10.00 % Sterling Bancorp 612,378 11.22 436,809 8.00 N/A N/A Tier 1 leverage ratio: Sterling National Bank 651,203 9.39 % 277,534 4.00 % 346,918 5.00 % Sterling Bancorp 569,609 8.21 277,352 4.00 N/A N/A |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [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, December 31, 2015 2014 Loan origination commitments $ 324,602 $ 208,486 Unused lines of credit 578,629 332,295 Letters of credit 83,831 83,316 |
Schedule of future minimum lease payments due | Future minimum lease payments due under non-cancelable operating leases at September 30, 2015 were as follows: Remainder of 2015 $ 3,308 2016 12,252 2017 11,311 2018 10,091 2019 7,568 2020 6,477 2021 and thereafter 27,792 $ 78,799 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Estimated fair value on a recurring basis | A summary of assets and liabilities at September 30, 2015 measured at estimated fair value on a recurring basis is as follows: September 30, 2015 Fair value Level 1 inputs Level 2 inputs Level 3 inputs Assets: Investment securities available for sale: Residential MBS: Agency-backed $ 1,056,240 $ — $ 1,056,240 $ — CMO (1) /Other MBS 84,347 — 84,347 — Total residential MBS 1,140,587 — 1,140,587 — Other securities: Federal agencies 86,760 — 86,760 — Corporate 399,658 — 399,658 — State and municipal 190,534 — 190,534 — Trust preferred 28,532 — 28,532 — Other 8,791 — 8,791 — Total other securities 714,275 — 714,275 — Total available for sale securities 1,854,862 — 1,854,862 — Swaps 2,152 — 2,152 — Total assets $ 1,857,014 $ — $ 1,857,014 $ — Liabilities: Swaps $ 2,152 $ — $ 2,152 $ — Total liabilities $ 2,152 $ — $ 2,152 $ — (1) Collateralized Mortgage Obligations (“CMOs”) are debt securities that are collateralized by a specific pool of residential mortgage loans, in which the issuer of the CMOs can direct the payments of principal and interest received on the underlying collateral to achieve specific investor cash flow objectives. The Bank generally acquires planned-amortization class securities (“PAC bonds”) and CMOs with a sequential pay structure in order to manage duration and extension risk inherent in these securities. A summary of assets and liabilities at December 31, 2014 measured at estimated fair value on a recurring basis is as follows: December 31, 2014 Fair value Level 1 inputs Level 2 inputs Level 3 inputs Assets: Investment securities available for sale: Residential MBS: Agency-backed $ 533,663 $ — $ 533,663 $ — CMO/Other MBS 84,838 — 84,838 — Total residential MBS 618,501 — 618,501 — Federal agencies 147,156 — 147,156 — Corporate bonds 204,831 — 204,831 — State and municipal 132,065 — 132,065 — Trust preferred 38,293 — 38,293 — Total investment securities available for sale 522,345 — 522,345 — Total available for sale securities 1,140,846 — 1,140,846 — Swaps 1,332 — 1,332 — Total assets $ 1,142,178 $ — $ 1,142,178 $ — Liabilities: Swaps $ 1,332 $ — $ 1,332 $ — Total liabilities $ 1,332 $ — $ 1,332 $ — |
Impaired loans measured at estimated fair value on nonrecurring basis | A summary of impaired loans at September 30, 2015 measured at estimated fair value on a non-recurring basis is the following: September 30, 2015 Fair value Level 1 inputs Level 2 inputs Level 3 inputs Commercial real estate $ 1,347 $ — $ — $ 1,347 ADC 41 — — 41 Total impaired loans measured at fair value $ 1,388 $ — $ — $ 1,388 A summary of impaired loans at December 31, 2014 measured at estimated fair value on a non-recurring basis is the following: December 31, 2014 Fair value Level 1 inputs Level 2 inputs Level 3 inputs Commercial & industrial $ 65 $ — $ — $ 65 Commercial real estate 1,950 — — 1,950 ADC 3,800 — — 3,800 Total impaired loans measured at fair value $ 5,815 $ — $ — $ 5,815 |
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, 2015 : Non-recurring fair value measurements Fair value Valuation technique Unobservable input / assumptions Range (1) (weighted average) Impaired loans: Commercial real estate $ 1,347 Appraisal Adjustments for comparable properties 22.0% (22.0%) ADC 41 Appraisal Adjustments for comparable properties 10.0% - 22.0% (13.5%) Assets taken in foreclosure: Residential mortgage 1,596 Appraisal Adjustments by management to reflect current conditions/selling costs 10.0% - 22.0% (21.6%) Commercial real estate (2) 5,206 Appraisal Adjustments by management to reflect current conditions/selling costs 10.0% - 22.0% (22.0%) ADC 4,695 Appraisal Adjustments by management to reflect current conditions/selling costs 10.0% - 22.0% (22.0%) Mortgage servicing rights 1,288 Third-party Discount rates 8.3% - 11.3% (9.5%) Third-party Prepayment speeds 100 - 353 (186) (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 $334 of commercial properties that are former financial centers that were closed and are now held for sale. These assets were not taken in foreclosure and their fair value is determined by third-party appraisals and our internal assessment of the market for this type of real estate. |
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, 2015 : September 30, 2015 Carrying amount Level 1 inputs Level 2 inputs Level 3 inputs Financial assets: Cash and cash equivalents $ 318,139 $ 318,139 $ — $ — Securities available for sale 1,854,862 — 1,854,862 — Securities held to maturity 673,130 — 689,049 — Portfolio loans, net 7,478,021 — — 7,550,744 Loans held for sale 66,506 — 66,506 — Accrued interest receivable on securities 12,327 — 12,327 — Accrued interest receivable on loans 18,765 — — 18,765 FHLB stock and FRB stock 89,626 — — — Swaps 2,152 — 2,152 — Financial liabilities: Non-maturity deposits (8,258,397 ) (8,258,397 ) — — Certificates of deposit (547,014 ) — (546,947 ) — FHLB borrowings (806,970 ) — (819,997 ) — Other borrowings (42,286 ) — (42,066 ) — Senior notes (98,792 ) — (101,066 ) — Mortgage escrow funds (13,865 ) — (13,863 ) — Accrued interest payable on deposits (414 ) — (414 ) — Accrued interest payable on borrowings (2,861 ) — (2,861 ) — Swaps (2,152 ) — (2,152 ) — 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 December 31, 2014 : December 31, 2014 Carrying amount Level 1 inputs Level 2 inputs Level 3 inputs Financial assets: Cash and cash equivalents $ 121,520 $ 121,520 $ — $ — Securities available for sale 1,140,846 — 1,140,846 — Securities held to maturity 572,337 — 586,346 — Portfolio loans, net 4,773,267 — — 4,783,508 Loans held for sale 46,599 — 46,599 — Accrued interest receivable on securities 7,742 — 7,742 — Accrued interest receivable on loans 11,559 — — 11,559 FHLB stock and FRB stock 75,437 — — — Swaps 1,332 — 1,332 — Financial liabilities: Non-maturity deposits (4,731,481 ) (4,731,481 ) — — Certificates of deposit (480,844 ) — (480,621 ) — FHLB borrowings (1,003,209 ) — (1,019,690 ) — Other borrowings (9,846 ) — (9,846 ) — Senior notes (98,498 ) — (100,769 ) — Mortgage escrow funds (4,167 ) — (4,167 ) — Accrued interest payable on deposits (329 ) — (329 ) — Accrued interest payable on borrowings (4,354 ) — (4,354 ) — Swaps (1,332 ) — (1,332 ) — |
Accumulated Other Comprehensi43
Accumulated Other Comprehensive (Loss) Income (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Components of accumulated other comprehensive (loss) income (“AOCI”) were as follows as of the dates shown below: September 30, December 31, 2015 2014 Net unrealized holding gain on available for sale securities $ 7,800 $ 2,256 Related income tax (expense) (3,315 ) (959 ) Available for sale securities AOCI, net of tax 4,485 1,297 Net unrealized holding loss on securities transferred to held to maturity (7,518 ) (8,638 ) Related income tax benefit 3,195 3,671 Securities transferred to held to maturity AOCI, net of tax (4,323 ) (4,967 ) Net unrealized holding loss on retirement plans (1,717 ) (11,445 ) Related income tax benefit 730 4,864 Retirement plans AOCI, net of tax (987 ) (6,581 ) AOCI $ (825 ) $ (10,251 ) The following table presents the changes in each component of AOCI for the three months ended September 30, 2015 and 2014 : Net unrealized holding gain (loss) on available for sale securities Net unrealized holding gain (loss) on securities transferred to held to maturity Net unrealized holding (loss) gain on retirement plans Total Three months ended September 30, 2015 Balance beginning of the period $ (2,342 ) $ (4,493 ) $ (6,367 ) $ (13,202 ) Other comprehensive gain before reclassification 5,260 — — 5,260 Amounts reclassified from AOCI 1,567 170 5,380 7,117 Total other comprehensive income 6,827 170 5,380 12,377 Balance at end of period $ 4,485 $ (4,323 ) $ (987 ) $ (825 ) Three months ended September 30, 2014 Balance beginning of the period $ 705 $ (5,303 ) $ (3,174 ) $ (7,772 ) Other comprehensive gain before reclassification (3,395 ) (3,395 ) Amounts reclassified from AOCI 19 159 (470 ) (292 ) Total other comprehensive (loss) income (3,376 ) 159 (470 ) (3,687 ) Balance at end of period $ (2,671 ) $ (5,144 ) $ (3,644 ) $ (11,459 ) Location in statement of operations where reclassification from AOCI is included Net gain on sale of securities Interest income on securities See explanation below The following table presents the changes in each component of AOCI for the nine months ended September 30, 2015 and 2014: Net unrealized holding gain (loss) on available for sale securities Net unrealized holding gain (loss) on securities transferred to held to maturity Net unrealized holding gain (loss) on retirement plans Total Nine months ended September 30, 2015 Balance beginning of the period $ 1,297 $ (4,967 ) $ (6,581 ) $ (10,251 ) Other comprehensive gain before reclassification 337 — — 337 Amounts reclassified from AOCI 2,851 644 5,594 9,089 Total other comprehensive income 3,188 644 5,594 9,426 Balance at end of period $ 4,485 $ (4,323 ) $ (987 ) $ (825 ) Nine months ended September 30, 2014 Balance beginning of the period $ (11,395 ) $ (5,659 ) $ (2,411 ) $ (19,465 ) Other comprehensive gain before reclassification 7,984 — — 7,984 Amounts reclassified from AOCI 740 515 (1,233 ) 22 Total other comprehensive income (loss) 8,724 515 (1,233 ) 8,006 Balance at end of period $ (2,671 ) $ (5,144 ) $ (3,644 ) $ (11,459 ) Location in statement of operations where reclassification from AOCI is included Net gain on sale of securities Interest income on securities See explanation below |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 30, 2015 | Feb. 27, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Jun. 29, 2015 | May. 07, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||||||||
Deposits | $ 8,805,411 | $ 8,805,411 | $ 5,212,325 | ||||||
Closing stock price (USD per share) | $ 14.63 | ||||||||
Consideration paid | 592,169 | $ 0 | |||||||
Goodwill | 670,699 | 670,699 | 388,926 | ||||||
Merger-related expense | 0 | $ 0 | 17,079 | 388 | |||||
Asset write-downs, severance and retention compensation and other restructuring charges | 40,350 | $ 1,431 | |||||||
Loans | 7,478,021 | 7,478,021 | $ 4,773,267 | ||||||
HVB Merger | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of shares each shareholder received from merger | 1.92 | ||||||||
Common stock issued as consideration | 38,525,154 | ||||||||
Consideration paid | $ 566,307 | ||||||||
Goodwill | 269,757 | 269,757 | |||||||
Intangible asset acquired | 33,839 | 33,839 | |||||||
Assets | 296,550 | 296,550 | |||||||
Loans | 1,792,519 | 1,792,519 | |||||||
Deposits | 3,160,746 | 3,160,746 | |||||||
Merger-related expense | 0 | 14,381 | |||||||
Asset write-downs, severance and retention compensation and other restructuring charges | $ 28,055 | ||||||||
Damian | |||||||||
Business Acquisition [Line Items] | |||||||||
Goodwill | $ 11,930 | ||||||||
Merger-related expense | $ 300 | ||||||||
Percentage of outstanding common stock acquired | 100.00% | ||||||||
Cash consideration | $ 24,670 | ||||||||
Outstanding finance loans acquired | 22,307 | ||||||||
Liabilities assumed | 14,560 | ||||||||
Restructuring charges | 1,500 | ||||||||
Core Deposits | HVB Merger | |||||||||
Business Acquisition [Line Items] | |||||||||
Estimated life | 10 years | ||||||||
Customer Lists | Damian | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible asset acquired | $ 8,950 | ||||||||
Estimated life | 16 years | ||||||||
Buildings | HVB Merger | |||||||||
Business Acquisition [Line Items] | |||||||||
Useful life | 30 years | ||||||||
Minimum | Building Improvements and Equipment | HVB Merger | |||||||||
Business Acquisition [Line Items] | |||||||||
Useful life | 1 year | ||||||||
Maximum | Building Improvements and Equipment | HVB Merger | |||||||||
Business Acquisition [Line Items] | |||||||||
Useful life | 5 years | ||||||||
FCC, LLC | |||||||||
Business Acquisition [Line Items] | |||||||||
Outstanding factoring receivables balance acquired | $ 44,500 | ||||||||
Premium for factoring receivables acquired | $ 1,000 | ||||||||
Noninterest Expense, Other | HVB Merger | |||||||||
Business Acquisition [Line Items] | |||||||||
Asset write-downs, severance and retention compensation and other restructuring charges | $ 28,055 |
Acquisitions (Details 1)
Acquisitions (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 318,139 | $ 177,619 | $ 121,520 | $ 152,662 | |
Investment securities | 2,527,992 | 1,713,183 | |||
Loans | 7,478,021 | 4,773,267 | |||
Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) stock, at cost | 89,626 | 75,437 | |||
Bank owned life insurance | 195,741 | 150,522 | |||
Premises and equipment | 63,508 | 46,156 | |||
Accrued interest receivable | 31,092 | 19,301 | |||
Core deposits and other intangibles | 80,830 | 43,332 | |||
Other real estate owned | 11,831 | 5,867 | |||
Other assets | 63,408 | 40,712 | |||
Deposits | (8,805,411) | (5,212,325) | |||
Other borrowings (repurchase agreements) | 42,286 | 9,846 | |||
Other liabilities | (177,865) | (121,577) | |||
Goodwill | 670,699 | $ 388,926 | |||
Hudson Valley Holding Corp | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | 878,988 | ||||
Investment securities | 713,842 | ||||
Loans | 1,792,519 | ||||
Federal Reserve Bank stock | 5,830 | ||||
Bank owned life insurance | 44,231 | ||||
Premises and equipment | 16,843 | ||||
Accrued interest receivable | 7,392 | ||||
Core deposits and other intangibles | 33,839 | ||||
Other real estate owned | 222 | ||||
Other assets | 24,708 | ||||
Deposits | (3,160,746) | ||||
Other borrowings | (25,366) | ||||
Other liabilities | (35,752) | ||||
Total identifiable net assets | 296,550 | ||||
Goodwill | 269,757 | ||||
Fair value of acquired loans at acquisition date | $ 1,695,546 | ||||
Gross contractual amounts receivable at acquisition date | 1,974,740 | ||||
Best estimate at acquisition date of contractual cash flows not expected to be collected | 37,520 | ||||
Business Acquisition, Pro Forma Information [Abstract] | |||||
Net interest income | 264,850 | 241,326 | |||
Non-interest income | 50,605 | 48,601 | |||
Non-interest expense | 204,034 | 206,432 | |||
Net income | $ 67,295 | $ 47,084 | |||
Pro forma earnings per share from continuing operations, basic (USD per share) | $ 0.53 | $ 0.39 | |||
Pro forma earnings per share from continuing operations, diluted (USD per share) | $ 0.52 | $ 0.39 | |||
Purchased Credit Impaired Loans | Hudson Valley Holding Corp | |||||
Business Acquisition [Line Items] | |||||
Fair value of acquired loans at acquisition date | 96,973 | ||||
Gross contractual amounts receivable at acquisition date | 122,104 | ||||
Best estimate at acquisition date of contractual cash flows not expected to be collected | 19,024 | ||||
Hudson Valley Holding Corp | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | 878,988 | ||||
Investment securities | 713,625 | ||||
Loans | 1,816,767 | ||||
Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) stock, at cost | 5,830 | ||||
Bank owned life insurance | 44,231 | ||||
Premises and equipment | 11,918 | ||||
Accrued interest receivable | 7,392 | ||||
Core deposits and other intangibles | 0 | ||||
Other real estate owned | 222 | ||||
Other assets | 32,639 | ||||
Deposits | (3,160,746) | ||||
Other borrowings | (25,366) | ||||
Other liabilities | (37,292) | ||||
Total identifiable net assets | $ 288,208 | ||||
Fair value adjustments | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 0 | ||||
Investment securities | 217 | ||||
Loans | (24,248) | ||||
Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) stock, at cost | 0 | ||||
Bank owned life insurance | 0 | ||||
Premises and equipment | 4,925 | ||||
Accrued interest receivable | 0 | ||||
Core deposits and other intangibles | 33,839 | ||||
Other real estate owned | 0 | ||||
Other assets | (7,931) | ||||
Deposits | 0 | ||||
Other borrowings | 0 | ||||
Other liabilities | 1,540 | ||||
Total identifiable net assets | $ 8,342 |
Securities (Details)
Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Dec. 31, 2014 | Sep. 30, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $ 1,138,590 | $ 1,847,061 |
Gross unrealized gains | 9,288 | 14,038 |
Gross unrealized losses | (7,032) | (6,237) |
Available for sale, at fair value | 1,140,846 | 1,854,862 |
Amortized cost | 572,337 | 673,130 |
Gross unrealized gains | 15,212 | 16,711 |
Gross unrealized losses | (1,203) | (792) |
Fair value | 586,346 | 689,049 |
Residential MBS: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 614,437 | 1,132,623 |
Gross unrealized gains | 5,576 | 9,624 |
Gross unrealized losses | (1,512) | (1,660) |
Available for sale, at fair value | 618,501 | 1,140,587 |
Amortized cost | 198,755 | 280,561 |
Gross unrealized gains | 2,821 | 5,055 |
Gross unrealized losses | (566) | (329) |
Fair value | 201,010 | 285,287 |
Other securities: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 524,153 | 714,438 |
Gross unrealized gains | 3,712 | 4,414 |
Gross unrealized losses | (5,520) | (4,577) |
Available for sale, at fair value | 522,345 | 714,275 |
Amortized cost | 373,582 | 392,569 |
Gross unrealized gains | 12,391 | 11,656 |
Gross unrealized losses | (637) | (463) |
Fair value | 385,336 | 403,762 |
Agency-backed | Residential MBS: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 528,818 | 1,048,193 |
Gross unrealized gains | 5,398 | 9,206 |
Gross unrealized losses | (553) | (1,159) |
Available for sale, at fair value | 533,663 | 1,056,240 |
Amortized cost | 138,589 | 228,360 |
Gross unrealized gains | 2,763 | 4,484 |
Gross unrealized losses | (2) | (253) |
Fair value | 141,350 | 232,591 |
CMO/Other MBS | Residential MBS: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 85,619 | 84,430 |
Gross unrealized gains | 178 | 418 |
Gross unrealized losses | (959) | (501) |
Available for sale, at fair value | 84,838 | 84,347 |
Amortized cost | 60,166 | 52,201 |
Gross unrealized gains | 58 | 571 |
Gross unrealized losses | (564) | (76) |
Fair value | 59,660 | 52,696 |
Federal agencies | Other securities: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 150,623 | 86,746 |
Gross unrealized gains | 4 | 77 |
Gross unrealized losses | (3,471) | (63) |
Available for sale, at fair value | 147,156 | 86,760 |
Amortized cost | 136,618 | 103,976 |
Gross unrealized gains | 4,328 | 3,673 |
Gross unrealized losses | (548) | (236) |
Fair value | 140,398 | 107,413 |
Corporate | Other securities: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 206,267 | 402,661 |
Gross unrealized gains | 319 | 1,276 |
Gross unrealized losses | (1,755) | (4,279) |
Available for sale, at fair value | 204,831 | 399,658 |
Amortized cost | 0 | 25,287 |
Gross unrealized gains | 0 | 88 |
Gross unrealized losses | 0 | (19) |
Fair value | 0 | 25,356 |
State and municipal | Other securities: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 129,576 | 188,324 |
Gross unrealized gains | 2,737 | 2,445 |
Gross unrealized losses | (248) | (235) |
Available for sale, at fair value | 132,065 | 190,534 |
Amortized cost | 231,964 | 258,306 |
Gross unrealized gains | 7,713 | 7,547 |
Gross unrealized losses | (89) | (208) |
Fair value | 239,588 | 265,645 |
Trust preferred | Other securities: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 37,687 | 27,926 |
Gross unrealized gains | 652 | 606 |
Gross unrealized losses | (46) | 0 |
Available for sale, at fair value | 38,293 | 28,532 |
Amortized cost | 0 | 0 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair value | 0 | 0 |
Other | Other securities: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 0 | 8,781 |
Gross unrealized gains | 0 | 10 |
Gross unrealized losses | 0 | 0 |
Available for sale, at fair value | 0 | 8,791 |
Amortized cost | 5,000 | 5,000 |
Gross unrealized gains | 350 | 348 |
Gross unrealized losses | 0 | 0 |
Fair value | $ 5,350 | $ 5,348 |
Securities (Details 1)
Securities (Details 1) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Available-for-sale Securities [Abstract] | ||
Amortized cost, One year or less | $ 27,914 | |
Amortized cost, One to five years | 362,015 | |
Amortized cost, Five to ten years | 286,257 | |
Amortized cost, Greater than ten years | 38,252 | |
Amortized cost, Total other securities | 714,438 | |
Amortized cost, Available for sale securities | 1,847,061 | $ 1,138,590 |
Fair value, One year or less | 28,001 | |
Fair value, One to five years | 362,461 | |
Fair value, Five to ten years | 284,815 | |
Fair value, Greater than ten years | 38,998 | |
Fair value, Total other securities | 714,275 | |
Fair value, Available for sale securities | 1,854,862 | 1,140,846 |
Held-to-Maturity Securities [Abstract] | ||
Amortized cost, One year or less | 15,166 | |
Amortized cost, One to five years | 31,610 | |
Amortized cost, Five to ten years | 234,692 | |
Amortized cost, Greater than ten years | 111,101 | |
Amortized cost, Total other securities | 392,569 | |
Amortized cost, Held to maturity securities | 673,130 | 572,337 |
Fair value, One year or less | 15,287 | |
Fair value, One to five years | 32,858 | |
Fair value, Five to ten years | 240,979 | |
Fair value, Greater than ten years | 114,638 | |
Fair value, Total other securities | 403,762 | |
Fair value | 689,049 | 586,346 |
Residential MBS: | ||
Available-for-sale Securities [Abstract] | ||
Amortized cost, Available for sale securities | 1,132,623 | 614,437 |
Fair value, Available for sale securities | 1,140,587 | 618,501 |
Held-to-Maturity Securities [Abstract] | ||
Amortized cost, Held to maturity securities | 280,561 | |
Fair value | $ 285,287 | $ 201,010 |
Securities (Details 2)
Securities (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales of securities available for sale | $ 606,459 | $ 51,151 | $ 808,892 | $ 282,673 |
Gross realized gains from securities available for sale | 3,079 | 292 | 5,702 | 2,303 |
Gross realized losses from securities available for sale | (353) | (259) | (744) | (1,016) |
Income tax expense on realized net gains of securities available for sale | $ 886 | $ 9 | $ 1,611 | $ 374 |
Securities (Details 3)
Securities (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Dec. 31, 2014 | Sep. 30, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, Less than 12 months | $ 149,856 | $ 486,827 |
Unrealized losses, Less than 12 months | (1,175) | (4,611) |
Fair value, 12 months or longer | 282,838 | 88,777 |
Unrealized losses, 12 months or longer | (5,857) | (1,626) |
Fair value, Total | 432,694 | 575,604 |
Unrealized losses, Total | (7,032) | (6,237) |
Residential MBS: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, Less than 12 months | 42,930 | 210,277 |
Unrealized losses, Less than 12 months | (243) | (912) |
Fair value, 12 months or longer | 65,091 | 44,918 |
Unrealized losses, 12 months or longer | (1,269) | (748) |
Fair value, Total | 108,021 | 255,195 |
Unrealized losses, Total | (1,512) | (1,660) |
Other securities: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, Less than 12 months | 106,926 | 276,550 |
Unrealized losses, Less than 12 months | (932) | (3,699) |
Fair value, 12 months or longer | 217,747 | 43,859 |
Unrealized losses, 12 months or longer | (4,588) | (878) |
Fair value, Total | 324,673 | 320,409 |
Unrealized losses, Total | (5,520) | (4,577) |
Agency-backed | Residential MBS: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, Less than 12 months | 17,379 | 194,747 |
Unrealized losses, Less than 12 months | (37) | (851) |
Fair value, 12 months or longer | 21,616 | 19,899 |
Unrealized losses, 12 months or longer | (516) | (308) |
Fair value, Total | 38,995 | 214,646 |
Unrealized losses, Total | (553) | (1,159) |
CMO/Other MBS | Residential MBS: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, Less than 12 months | 25,551 | 15,530 |
Unrealized losses, Less than 12 months | (206) | (61) |
Fair value, 12 months or longer | 43,475 | 25,019 |
Unrealized losses, 12 months or longer | (753) | (440) |
Fair value, Total | 69,026 | 40,549 |
Unrealized losses, Total | (959) | (501) |
Federal agencies | Other securities: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, Less than 12 months | 5,959 | 5,947 |
Unrealized losses, Less than 12 months | (87) | (1) |
Fair value, 12 months or longer | 140,699 | 15,381 |
Unrealized losses, 12 months or longer | (3,384) | (62) |
Fair value, Total | 146,658 | 21,328 |
Unrealized losses, Total | (3,471) | (63) |
Corporate | Other securities: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, Less than 12 months | 85,055 | 234,658 |
Unrealized losses, Less than 12 months | (731) | (3,505) |
Fair value, 12 months or longer | 65,648 | 24,891 |
Unrealized losses, 12 months or longer | (1,024) | (774) |
Fair value, Total | 150,703 | 259,549 |
Unrealized losses, Total | (1,755) | (4,279) |
State and municipal | Other securities: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, Less than 12 months | 12,012 | 35,945 |
Unrealized losses, Less than 12 months | (68) | (193) |
Fair value, 12 months or longer | 11,400 | 3,587 |
Unrealized losses, 12 months or longer | (180) | (42) |
Fair value, Total | 23,412 | 39,532 |
Unrealized losses, Total | (248) | $ (235) |
Trust preferred | Other securities: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, Less than 12 months | 3,900 | |
Unrealized losses, Less than 12 months | (46) | |
Fair value, 12 months or longer | 0 | |
Unrealized losses, 12 months or longer | 0 | |
Fair value, Total | 3,900 | |
Unrealized losses, Total | $ (46) |
Securities (Details 4)
Securities (Details 4) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Dec. 31, 2014 | Sep. 30, 2015 | |
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair value, Less than 12 months | $ 22,420 | $ 48,820 |
Unrealized losses, Less than 12 months | (377) | (500) |
Fair value, 12 months or longer | 57,953 | 23,959 |
Unrealized losses, 12 months or longer | (826) | (292) |
Fair value, Total | 80,373 | 72,779 |
Unrealized losses, Total | (1,203) | (792) |
Residential MBS: | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair value, Less than 12 months | 1,208 | 12,500 |
Unrealized losses, Less than 12 months | (2) | (263) |
Fair value, 12 months or longer | 42,979 | 6,389 |
Unrealized losses, 12 months or longer | (564) | (66) |
Fair value, Total | 44,187 | 18,889 |
Unrealized losses, Total | (566) | (329) |
Residential MBS: | Agency-backed | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair value, Less than 12 months | 1,208 | 9,989 |
Unrealized losses, Less than 12 months | (2) | (253) |
Fair value, 12 months or longer | 0 | 0 |
Unrealized losses, 12 months or longer | 0 | 0 |
Fair value, Total | 1,208 | 9,989 |
Unrealized losses, Total | (2) | (253) |
Residential MBS: | CMO/Other MBS | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair value, Less than 12 months | 0 | 2,511 |
Unrealized losses, Less than 12 months | 0 | (10) |
Fair value, 12 months or longer | 42,979 | 6,389 |
Unrealized losses, 12 months or longer | (564) | (66) |
Fair value, Total | 42,979 | 8,900 |
Unrealized losses, Total | (564) | (76) |
Other securities: | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair value, Less than 12 months | 21,212 | 36,320 |
Unrealized losses, Less than 12 months | (375) | (237) |
Fair value, 12 months or longer | 14,974 | 17,570 |
Unrealized losses, 12 months or longer | (262) | (226) |
Fair value, Total | 36,186 | 53,890 |
Unrealized losses, Total | (637) | (463) |
Other securities: | Federal agencies | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair value, Less than 12 months | 9,711 | 9,948 |
Unrealized losses, Less than 12 months | (289) | (52) |
Fair value, 12 months or longer | 14,741 | 14,816 |
Unrealized losses, 12 months or longer | (259) | (184) |
Fair value, Total | 24,452 | 24,764 |
Unrealized losses, Total | (548) | (236) |
Other securities: | Corporate | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair value, Less than 12 months | 5,268 | |
Unrealized losses, Less than 12 months | (19) | |
Fair value, 12 months or longer | 0 | |
Unrealized losses, 12 months or longer | 0 | |
Fair value, Total | 5,268 | |
Unrealized losses, Total | (19) | |
Other securities: | State and municipal | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair value, Less than 12 months | 11,501 | 21,104 |
Unrealized losses, Less than 12 months | (86) | (166) |
Fair value, 12 months or longer | 233 | 2,754 |
Unrealized losses, 12 months or longer | (3) | (42) |
Fair value, Total | 11,734 | 23,858 |
Unrealized losses, Total | $ (89) | $ (208) |
Securities (Details 5)
Securities (Details 5) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Total securities pledged | $ 1,771,825 | $ 1,247,509 |
Federal Home Loan Bank Borrowings | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Available-for-sale securities pledged as collateral | 154,629 | 187,314 |
Held-to-maturity securities pledged as collateral | 211,385 | 154,712 |
Municipal Deposits | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Available-for-sale securities pledged as collateral | 1,050,013 | 550,681 |
Held-to-maturity securities pledged as collateral | 353,646 | 352,843 |
Interest Rate Swap | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Available-for-sale securities pledged as collateral | $ 2,152 | $ 1,959 |
Securities (Details Textual)
Securities (Details Textual) | 9 Months Ended |
Sep. 30, 2015Security | |
Investments, Debt and Equity Securities [Abstract] | |
Number of securities which were in continuous unrealized loss position for less than 12 months | 234 |
Number of securities which were in continuous unrealized loss position for 12 months or more | 42 |
Portfolio Loans (Details)
Portfolio Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Components of loan portfolio, excluding loans held for sale | ||||||
Commercial & industrial (“C&I”) | $ 1,652,556 | $ 1,244,555 | ||||
Payroll finance | 193,669 | 154,229 | ||||
Warehouse lending | 318,634 | 173,786 | ||||
Factored receivables | 252,868 | 161,625 | ||||
Equipment financing | 597,316 | 411,449 | ||||
Total commercial | 3,015,043 | 2,145,644 | ||||
Commercial real estate | 2,569,762 | 1,458,277 | ||||
Multi-family | 750,931 | 384,544 | ||||
Acquisition, development & construction (“ADC”) | 177,062 | 96,995 | ||||
Total commercial mortgage | 3,497,755 | 1,939,816 | ||||
Total commercial and commercial mortgage | 6,512,798 | 4,085,460 | ||||
Residential mortgage | 721,606 | 529,766 | ||||
Consumer: | ||||||
Home equity lines of credit | 256,020 | 163,569 | ||||
Other consumer loans | 35,208 | 36,846 | ||||
Total consumer | 291,228 | 200,415 | ||||
Portfolio loans | 7,525,632 | 4,815,641 | ||||
Allowance for loan losses | (47,611) | $ (44,317) | (42,374) | $ (40,612) | $ (36,350) | $ (30,612) |
Portfolio loans, net | $ 7,478,021 | $ 4,773,267 |
Portfolio Loans (Details 1)
Portfolio Loans (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Dec. 31, 2014 | Sep. 30, 2015 | |
Non-Performing loans: | ||
Current loans | $ 4,740,016 | $ 7,427,079 |
Non accrual loans | 45,859 | 67,390 |
Portfolio loans | 4,815,641 | 7,525,632 |
Current loans | 16,238 | 15,557 |
30-59 days past due | 847 | 894 |
60-89 days past due | 176 | 181 |
90 plus days past due | 0 | 59 |
Non-Accrual | 11,427 | 8,240 |
Total | 28,688 | 24,931 |
Nonperforming loans | ||
Non-Performing loans: | ||
Non accrual loans | 45,859 | 67,390 |
Non-performing loans: | ||
Loans 90 days past due and still accruing | 783 | 282 |
Total non-performing loans | 46,642 | 67,672 |
Commercial & industrial | ||
Non-Performing loans: | ||
Current loans | 1,232,363 | 1,630,894 |
Non accrual loans | 4,975 | 11,005 |
Portfolio loans | 1,244,555 | 1,652,556 |
Current loans | 245 | 156 |
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | 0 |
90 plus days past due | 0 | 0 |
Non-Accrual | 2,065 | 2,065 |
Total | 2,310 | 2,221 |
Payroll finance | ||
Non-Performing loans: | ||
Current loans | 154,114 | 193,562 |
Non accrual loans | 0 | 0 |
Portfolio loans | 154,229 | 193,669 |
Warehouse lending | ||
Non-Performing loans: | ||
Current loans | 173,786 | 318,634 |
Non accrual loans | 0 | 0 |
Portfolio loans | 173,786 | 318,634 |
Factored receivables | ||
Non-Performing loans: | ||
Current loans | 161,381 | 252,641 |
Non accrual loans | 244 | 227 |
Portfolio loans | 161,625 | 252,868 |
Equipment financing | ||
Non-Performing loans: | ||
Current loans | 410,483 | 593,930 |
Non accrual loans | 240 | 1,132 |
Portfolio loans | 411,449 | 597,316 |
Current loans | 409 | 359 |
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | 0 |
90 plus days past due | 0 | 0 |
Non-Accrual | 0 | 0 |
Total | 409 | 359 |
Commercial real estate | ||
Non-Performing loans: | ||
Current loans | 1,433,235 | 2,541,565 |
Non accrual loans | 11,286 | 21,821 |
Portfolio loans | 1,458,277 | 2,569,762 |
Current loans | 4,833 | 4,793 |
30-59 days past due | 263 | 260 |
60-89 days past due | 0 | 0 |
90 plus days past due | 0 | 0 |
Non-Accrual | 0 | 0 |
Total | 5,096 | 5,053 |
Multi-family | ||
Non-Performing loans: | ||
Current loans | 383,799 | 749,172 |
Non accrual loans | 272 | 1,103 |
Portfolio loans | 384,544 | 750,931 |
ADC | ||
Non-Performing loans: | ||
Current loans | 89,730 | 169,454 |
Non accrual loans | 6,413 | 4,656 |
Portfolio loans | 96,995 | 177,062 |
Current loans | 5,487 | 5,180 |
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | 0 |
90 plus days past due | 0 | 59 |
Non-Accrual | 6,373 | 3,641 |
Total | 11,860 | 8,880 |
Residential mortgage | ||
Non-Performing loans: | ||
Current loans | 509,597 | 697,343 |
Non accrual loans | 16,259 | 19,191 |
Portfolio loans | 529,766 | 721,606 |
Current loans | 5,264 | 5,069 |
30-59 days past due | 584 | 634 |
60-89 days past due | 176 | 181 |
90 plus days past due | 0 | 0 |
Non-Accrual | 2,768 | 2,354 |
Total | 8,792 | 8,238 |
Consumer | ||
Non-Performing loans: | ||
Current loans | 191,528 | 279,884 |
Non accrual loans | 6,170 | 8,255 |
Portfolio loans | 200,415 | 291,228 |
Current loans | 0 | 0 |
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | 0 |
90 plus days past due | 0 | 0 |
Non-Accrual | 221 | 180 |
Total | 221 | 180 |
30 to 59 Days Past Due | ||
Non-Performing loans: | ||
Past due loans | 19,689 | 24,061 |
30 to 59 Days Past Due | Commercial & industrial | ||
Non-Performing loans: | ||
Past due loans | 6,237 | 8,788 |
30 to 59 Days Past Due | Payroll finance | ||
Non-Performing loans: | ||
Past due loans | 0 | 23 |
30 to 59 Days Past Due | Warehouse lending | ||
Non-Performing loans: | ||
Past due loans | 0 | 0 |
30 to 59 Days Past Due | Factored receivables | ||
Non-Performing loans: | ||
Past due loans | 0 | 0 |
30 to 59 Days Past Due | Equipment financing | ||
Non-Performing loans: | ||
Past due loans | 707 | 753 |
30 to 59 Days Past Due | Commercial real estate | ||
Non-Performing loans: | ||
Past due loans | 7,982 | 4,492 |
30 to 59 Days Past Due | Multi-family | ||
Non-Performing loans: | ||
Past due loans | 317 | 656 |
30 to 59 Days Past Due | ADC | ||
Non-Performing loans: | ||
Past due loans | 401 | 2,893 |
30 to 59 Days Past Due | Residential mortgage | ||
Non-Performing loans: | ||
Past due loans | 2,935 | 4,122 |
30 to 59 Days Past Due | Consumer | ||
Non-Performing loans: | ||
Past due loans | 1,110 | 2,334 |
60 to 89 Days Past Due | ||
Non-Performing loans: | ||
Past due loans | 9,294 | 6,820 |
60 to 89 Days Past Due | Commercial & industrial | ||
Non-Performing loans: | ||
Past due loans | 920 | 1,792 |
60 to 89 Days Past Due | Payroll finance | ||
Non-Performing loans: | ||
Past due loans | 0 | 7 |
60 to 89 Days Past Due | Warehouse lending | ||
Non-Performing loans: | ||
Past due loans | 0 | 0 |
60 to 89 Days Past Due | Factored receivables | ||
Non-Performing loans: | ||
Past due loans | 0 | 0 |
60 to 89 Days Past Due | Equipment financing | ||
Non-Performing loans: | ||
Past due loans | 19 | 1,501 |
60 to 89 Days Past Due | Commercial real estate | ||
Non-Performing loans: | ||
Past due loans | 5,322 | 1,884 |
60 to 89 Days Past Due | Multi-family | ||
Non-Performing loans: | ||
Past due loans | 0 | 0 |
60 to 89 Days Past Due | ADC | ||
Non-Performing loans: | ||
Past due loans | 451 | 0 |
60 to 89 Days Past Due | Residential mortgage | ||
Non-Performing loans: | ||
Past due loans | 975 | 950 |
60 to 89 Days Past Due | Consumer | ||
Non-Performing loans: | ||
Past due loans | 1,607 | 686 |
90 or More Days Past Due | ||
Non-Performing loans: | ||
Past due loans | 783 | 282 |
90 or More Days Past Due | Commercial & industrial | ||
Non-Performing loans: | ||
Past due loans | 60 | 77 |
90 or More Days Past Due | Payroll finance | ||
Non-Performing loans: | ||
Past due loans | 115 | 77 |
90 or More Days Past Due | Warehouse lending | ||
Non-Performing loans: | ||
Past due loans | 0 | 0 |
90 or More Days Past Due | Factored receivables | ||
Non-Performing loans: | ||
Past due loans | 0 | 0 |
90 or More Days Past Due | Equipment financing | ||
Non-Performing loans: | ||
Past due loans | 0 | 0 |
90 or More Days Past Due | Commercial real estate | ||
Non-Performing loans: | ||
Past due loans | 452 | 0 |
90 or More Days Past Due | Multi-family | ||
Non-Performing loans: | ||
Past due loans | 156 | 0 |
90 or More Days Past Due | ADC | ||
Non-Performing loans: | ||
Past due loans | 0 | 59 |
90 or More Days Past Due | Residential mortgage | ||
Non-Performing loans: | ||
Past due loans | 0 | 0 |
90 or More Days Past Due | Consumer | ||
Non-Performing loans: | ||
Past due loans | $ 0 | $ 69 |
Portfolio Loans (Details 2)
Portfolio Loans (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
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 | $ 44,317 | $ 36,350 | $ 42,374 | $ 30,612 |
Charge-offs | (2,845) | (2,159) | (6,785) | (7,497) |
Recoveries | 1,139 | 1,071 | 1,822 | 1,397 |
Net Charge-offs | (1,706) | (1,088) | (4,963) | (6,100) |
Provision | 5,000 | 5,350 | 10,200 | 16,100 |
Ending Allowance for Loan Losses | $ 47,611 | $ 40,612 | $ 47,611 | $ 40,612 |
Annualized net charge-offs to average loans outstanding | 0.09% | 0.09% | 0.11% | 0.19% |
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 | $ 11,350 | $ 8,997 | $ 11,027 | $ 6,886 |
Charge-offs | (224) | (240) | (1,294) | (2,295) |
Recoveries | 781 | 419 | 1,045 | 572 |
Net Charge-offs | 557 | 179 | (249) | (1,723) |
Provision | 197 | 360 | 1,326 | 4,373 |
Ending Allowance for Loan Losses | 12,104 | 9,536 | 12,104 | 9,536 |
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 | 1,650 | 1,048 | 1,506 | 0 |
Charge-offs | (44) | (758) | (406) | (758) |
Recoveries | 0 | 0 | 11 | 0 |
Net Charge-offs | (44) | (758) | (395) | (758) |
Provision | 241 | 1,089 | 736 | 2,137 |
Ending Allowance for Loan Losses | 1,847 | 1,379 | 1,847 | 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 | 1,263 | 395 | 608 | 0 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Net Charge-offs | 0 | 0 | 0 | 0 |
Provision | (136) | 235 | 519 | 630 |
Ending Allowance for Loan Losses | 1,127 | 630 | 1,127 | 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 | 1,496 | 639 | 1,205 | 0 |
Charge-offs | (52) | (43) | (270) | (289) |
Recoveries | 18 | 9 | 46 | 9 |
Net Charge-offs | (34) | (34) | (224) | (280) |
Provision | 343 | 689 | 824 | 1,574 |
Ending Allowance for Loan Losses | 1,805 | 1,294 | 1,805 | 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 | 3,245 | 1,657 | 2,569 | 0 |
Charge-offs | (1,369) | (451) | (1,960) | (1,074) |
Recoveries | 148 | 194 | 416 | 194 |
Net Charge-offs | (1,221) | (257) | (1,544) | (880) |
Provision | 2,297 | 1,221 | 3,296 | 3,501 |
Ending Allowance for Loan Losses | 4,321 | 2,621 | 4,321 | 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 | 11,100 | 9,113 | 10,121 | 8,040 |
Charge-offs | (223) | (135) | (561) | (488) |
Recoveries | 76 | 3 | 92 | 124 |
Net Charge-offs | (147) | (132) | (469) | (364) |
Provision | 1,722 | 1,863 | 3,023 | 3,168 |
Ending Allowance for Loan Losses | 12,675 | 10,844 | 12,675 | 10,844 |
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 | 2,405 | 2,202 | 2,111 | 1,952 |
Charge-offs | 0 | 0 | (17) | 0 |
Recoveries | 0 | 92 | 0 | 92 |
Net Charge-offs | 0 | 92 | (17) | 92 |
Provision | (248) | (427) | 63 | (177) |
Ending Allowance for Loan Losses | 2,157 | 1,867 | 2,157 | 1,867 |
ADC | ||||
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 | 2,425 | 3,747 | 2,987 | 5,857 |
Charge-offs | 0 | (1) | 0 | (1,261) |
Recoveries | 0 | 0 | 9 | 0 |
Net Charge-offs | 0 | (1) | 9 | (1,261) |
Provision | (332) | (1,626) | (903) | (2,476) |
Ending Allowance for Loan Losses | 2,093 | 2,120 | 2,093 | 2,120 |
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 | 4,937 | 4,746 | 5,843 | 4,600 |
Charge-offs | (546) | (418) | (727) | (693) |
Recoveries | 81 | 314 | 92 | 316 |
Net Charge-offs | (465) | (104) | (635) | (377) |
Provision | 517 | 1,195 | (219) | 1,614 |
Ending Allowance for Loan Losses | 4,989 | 5,837 | 4,989 | 5,837 |
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 | 4,446 | 3,806 | 4,397 | 3,277 |
Charge-offs | (387) | (113) | (1,550) | (639) |
Recoveries | 35 | 40 | 111 | 90 |
Net Charge-offs | (352) | (73) | (1,439) | (549) |
Provision | 399 | 751 | 1,535 | 1,756 |
Ending Allowance for Loan Losses | $ 4,493 | $ 4,484 | $ 4,493 | $ 4,484 |
Portfolio Loans (Details 3)
Portfolio Loans (Details 3) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Loans evaluated for impairment by segment | ||
Loans evaluated by segment, Individually evaluated for impairment | $ 28,435 | $ 31,023 |
Loans evaluated by segment, Collectively evaluated for impairment | 7,399,427 | 4,781,203 |
Portfolio loans | 7,525,632 | 4,815,641 |
Allowance evaluated by segment, Individually evaluated for impairment | 0 | 0 |
Allowance evaluated by segment, Collectively evaluated for impairment | 47,611 | 42,374 |
Total allowance for loan losses | 47,611 | 42,374 |
Commercial & industrial | ||
Loans evaluated for impairment by segment | ||
Loans evaluated by segment, Individually evaluated for impairment | 3,630 | 4,461 |
Loans evaluated by segment, Collectively evaluated for impairment | 1,631,054 | 1,238,899 |
Portfolio loans | 1,652,556 | 1,244,555 |
Allowance evaluated by segment, Individually evaluated for impairment | 0 | 0 |
Allowance evaluated by segment, Collectively evaluated for impairment | 12,104 | 11,027 |
Total allowance for loan losses | 12,104 | 11,027 |
Payroll finance | ||
Loans evaluated for impairment by segment | ||
Loans evaluated by segment, Individually evaluated for impairment | 0 | 0 |
Loans evaluated by segment, Collectively evaluated for impairment | 193,669 | 154,229 |
Portfolio loans | 193,669 | 154,229 |
Allowance evaluated by segment, Individually evaluated for impairment | 0 | 0 |
Allowance evaluated by segment, Collectively evaluated for impairment | 1,847 | 1,506 |
Total allowance for loan losses | 1,847 | 1,506 |
Warehouse lending | ||
Loans evaluated for impairment by segment | ||
Loans evaluated by segment, Individually evaluated for impairment | 0 | 0 |
Loans evaluated by segment, Collectively evaluated for impairment | 318,634 | 173,786 |
Portfolio loans | 318,634 | 173,786 |
Allowance evaluated by segment, Individually evaluated for impairment | 0 | 0 |
Allowance evaluated by segment, Collectively evaluated for impairment | 1,127 | 608 |
Total allowance for loan losses | 1,127 | 608 |
Factored receivables | ||
Loans evaluated for impairment by segment | ||
Loans evaluated by segment, Individually evaluated for impairment | 0 | 0 |
Loans evaluated by segment, Collectively evaluated for impairment | 252,868 | 161,625 |
Portfolio loans | 252,868 | 161,625 |
Allowance evaluated by segment, Individually evaluated for impairment | 0 | 0 |
Allowance evaluated by segment, Collectively evaluated for impairment | 1,805 | 1,205 |
Total allowance for loan losses | 1,805 | 1,205 |
Equipment financing | ||
Loans evaluated for impairment by segment | ||
Loans evaluated by segment, Individually evaluated for impairment | 670 | 0 |
Loans evaluated by segment, Collectively evaluated for impairment | 596,646 | 411,449 |
Portfolio loans | 597,316 | 411,449 |
Allowance evaluated by segment, Individually evaluated for impairment | 0 | 0 |
Allowance evaluated by segment, Collectively evaluated for impairment | 4,321 | 2,569 |
Total allowance for loan losses | 4,321 | 2,569 |
Commercial real estate | ||
Loans evaluated for impairment by segment | ||
Loans evaluated by segment, Individually evaluated for impairment | 13,974 | 14,423 |
Loans evaluated by segment, Collectively evaluated for impairment | 2,494,999 | 1,443,714 |
Portfolio loans | 2,569,762 | 1,458,277 |
Allowance evaluated by segment, Individually evaluated for impairment | 0 | 0 |
Allowance evaluated by segment, Collectively evaluated for impairment | 12,675 | 10,121 |
Total allowance for loan losses | 12,675 | 10,121 |
Multi-family | ||
Loans evaluated for impairment by segment | ||
Loans evaluated by segment, Individually evaluated for impairment | 922 | 0 |
Loans evaluated by segment, Collectively evaluated for impairment | 745,576 | 384,544 |
Portfolio loans | 750,931 | 384,544 |
Allowance evaluated by segment, Individually evaluated for impairment | 0 | 0 |
Allowance evaluated by segment, Collectively evaluated for impairment | 2,157 | 2,111 |
Total allowance for loan losses | 2,157 | 2,111 |
ADC | ||
Loans evaluated for impairment by segment | ||
Loans evaluated by segment, Individually evaluated for impairment | 8,724 | 11,624 |
Loans evaluated by segment, Collectively evaluated for impairment | 162,783 | 85,371 |
Portfolio loans | 177,062 | 96,995 |
Allowance evaluated by segment, Individually evaluated for impairment | 0 | 0 |
Allowance evaluated by segment, Collectively evaluated for impairment | 2,093 | 2,987 |
Total allowance for loan losses | 2,093 | 2,987 |
Residential mortgage | ||
Loans evaluated for impairment by segment | ||
Loans evaluated by segment, Individually evaluated for impairment | 515 | 515 |
Loans evaluated by segment, Collectively evaluated for impairment | 713,587 | 527,171 |
Portfolio loans | 721,606 | 529,766 |
Allowance evaluated by segment, Individually evaluated for impairment | 0 | 0 |
Allowance evaluated by segment, Collectively evaluated for impairment | 4,989 | 5,843 |
Total allowance for loan losses | 4,989 | 5,843 |
Consumer | ||
Loans evaluated for impairment by segment | ||
Loans evaluated by segment, Individually evaluated for impairment | 0 | 0 |
Loans evaluated by segment, Collectively evaluated for impairment | 289,611 | 200,415 |
Portfolio loans | 291,228 | 200,415 |
Allowance evaluated by segment, Individually evaluated for impairment | 0 | 0 |
Allowance evaluated by segment, Collectively evaluated for impairment | 4,493 | 4,397 |
Total allowance for loan losses | 4,493 | 4,397 |
Purchased Credit Impaired Loans | ||
Loans evaluated for impairment by segment | ||
Loans evaluated by segment, Purchased credit impaired loans | 97,770 | 3,415 |
Purchased Credit Impaired Loans | Commercial & industrial | ||
Loans evaluated for impairment by segment | ||
Loans evaluated by segment, Purchased credit impaired loans | 17,872 | 1,195 |
Purchased Credit Impaired Loans | Payroll finance | ||
Loans evaluated for impairment by segment | ||
Loans evaluated by segment, Purchased credit impaired loans | 0 | 0 |
Purchased Credit Impaired Loans | Warehouse lending | ||
Loans evaluated for impairment by segment | ||
Loans evaluated by segment, Purchased credit impaired loans | 0 | 0 |
Purchased Credit Impaired Loans | Factored receivables | ||
Loans evaluated for impairment by segment | ||
Loans evaluated by segment, Purchased credit impaired loans | 0 | 0 |
Purchased Credit Impaired Loans | Equipment financing | ||
Loans evaluated for impairment by segment | ||
Loans evaluated by segment, Purchased credit impaired loans | 0 | 0 |
Purchased Credit Impaired Loans | Commercial real estate | ||
Loans evaluated for impairment by segment | ||
Loans evaluated by segment, Purchased credit impaired loans | 60,789 | 140 |
Purchased Credit Impaired Loans | Multi-family | ||
Loans evaluated for impairment by segment | ||
Loans evaluated by segment, Purchased credit impaired loans | 4,433 | 0 |
Purchased Credit Impaired Loans | ADC | ||
Loans evaluated for impairment by segment | ||
Loans evaluated by segment, Purchased credit impaired loans | 5,555 | 0 |
Purchased Credit Impaired Loans | Residential mortgage | ||
Loans evaluated for impairment by segment | ||
Loans evaluated by segment, Purchased credit impaired loans | 7,504 | 2,080 |
Purchased Credit Impaired Loans | Consumer | ||
Loans evaluated for impairment by segment | ||
Loans evaluated by segment, Purchased credit impaired loans | $ 1,617 | $ 0 |
Portfolio Loans Portfolio Loans
Portfolio Loans Portfolio Loans (Details 4) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||||
Balance at beginning of period | $ 13,201 | $ 748 | $ 724 | $ 2,841 |
Balance acquired in HVB Merger | 0 | 0 | 12,527 | 0 |
Accretion of income | (862) | 0 | (862) | 0 |
Disposals | 0 | (24) | (50) | (2,117) |
Reclassification from non-accretable difference | 413 | 0 | 413 | 0 |
Balance at end of period | $ 12,752 | $ 724 | $ 12,752 | $ 724 |
Portfolio Loans (Details 5)
Portfolio Loans (Details 5) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
With no related allowance recorded: | ||
Unpaid principal balance with no related allowance recorded | $ 29,037 | $ 32,569 |
Recorded investment with no related allowance recorded | 28,435 | 31,023 |
Commercial & industrial | ||
With no related allowance recorded: | ||
Unpaid principal balance with no related allowance recorded | 4,300 | 4,571 |
Recorded investment with no related allowance recorded | 4,300 | 4,461 |
Commercial real estate | ||
With no related allowance recorded: | ||
Unpaid principal balance with no related allowance recorded | 15,453 | 14,635 |
Recorded investment with no related allowance recorded | 14,896 | 14,423 |
ADC | ||
With no related allowance recorded: | ||
Unpaid principal balance with no related allowance recorded | 8,769 | 12,848 |
Recorded investment with no related allowance recorded | 8,724 | 11,624 |
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 |
Portfolio Loans (Details 6)
Portfolio Loans (Details 6) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Financing Receivable, Impaired [Line Items] | ||||
Average recorded investment with no related allowance | $ 28,761 | $ 56,517 | $ 29,115 | $ 38,448 |
Interest income recognized with no related allowance | 98 | 163 | 296 | 337 |
Cash-basis interest income recognized with no related allowance | 0 | 0 | 0 | 0 |
Commercial & industrial | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average recorded investment with no related allowance | 3,637 | 6,266 | 3,647 | 4,177 |
Interest income recognized with no related allowance | 0 | 0 | 0 | 0 |
Cash-basis interest income recognized with no related allowance | 0 | 0 | 0 | 0 |
Equipment financing | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average recorded investment with no related allowance | 670 | 0 | 670 | 0 |
Interest income recognized with no related allowance | 0 | 0 | 0 | 0 |
Cash-basis interest income recognized with no related allowance | 0 | 0 | 0 | 0 |
Commercial real estate | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average recorded investment with no related allowance | 14,217 | 20,857 | 14,529 | 13,952 |
Interest income recognized with no related allowance | 42 | 92 | 125 | 185 |
Cash-basis interest income recognized with no related allowance | 0 | 0 | 0 | 0 |
Multi-family | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average recorded investment with no related allowance | 922 | 0 | 923 | 0 |
Interest income recognized with no related allowance | 0 | 0 | 0 | 0 |
Cash-basis interest income recognized with no related allowance | 0 | 0 | 0 | 0 |
ADC | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average recorded investment with no related allowance | 8,800 | 28,622 | 8,831 | 19,804 |
Interest income recognized with no related allowance | 56 | 71 | 171 | 152 |
Cash-basis interest income recognized with no related allowance | 0 | 0 | 0 | 0 |
Residential mortgage | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average recorded investment with no related allowance | 515 | 772 | 515 | 515 |
Interest income recognized with no related allowance | 0 | 0 | 0 | 0 |
Cash-basis interest income recognized with no related allowance | $ 0 | $ 0 | $ 0 | $ 0 |
Portfolio Loans (Details 7)
Portfolio Loans (Details 7) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Dec. 31, 2014 | Sep. 30, 2015 | |
Financing Receivable, Modifications [Line Items] | ||
Current loans | $ 16,238 | $ 15,557 |
30-59 days past due | 847 | 894 |
60-89 days past due | 176 | 181 |
90 plus days past due | 0 | 59 |
Non- accrual | 11,427 | 8,240 |
Total | 28,688 | 24,931 |
Commercial & industrial | ||
Financing Receivable, Modifications [Line Items] | ||
Current loans | 245 | 156 |
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | 0 |
90 plus days past due | 0 | 0 |
Non- accrual | 2,065 | 2,065 |
Total | 2,310 | 2,221 |
Equipment financing | ||
Financing Receivable, Modifications [Line Items] | ||
Current loans | 409 | 359 |
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | 0 |
90 plus days past due | 0 | 0 |
Non- accrual | 0 | 0 |
Total | 409 | 359 |
Commercial real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Current loans | 4,833 | 4,793 |
30-59 days past due | 263 | 260 |
60-89 days past due | 0 | 0 |
90 plus days past due | 0 | 0 |
Non- accrual | 0 | 0 |
Total | 5,096 | 5,053 |
ADC | ||
Financing Receivable, Modifications [Line Items] | ||
Current loans | 5,487 | 5,180 |
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | 0 |
90 plus days past due | 0 | 59 |
Non- accrual | 6,373 | 3,641 |
Total | 11,860 | 8,880 |
Residential mortgage | ||
Financing Receivable, Modifications [Line Items] | ||
Current loans | 5,264 | 5,069 |
30-59 days past due | 584 | 634 |
60-89 days past due | 176 | 181 |
90 plus days past due | 0 | 0 |
Non- accrual | 2,768 | 2,354 |
Total | 8,792 | 8,238 |
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 plus days past due | 0 | 0 |
Non- accrual | 221 | 180 |
Total | $ 221 | $ 180 |
Portfolio Loans (Details 8)
Portfolio Loans (Details 8) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015USD ($)loan | Sep. 30, 2014USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||
Number | loan | 0 | 2 |
Recorded investment, Pre-modification | $ 0 | $ 1,060 |
Recorded investment, Post-modification | $ 0 | $ 1,060 |
ADC | ||
Financing Receivable, Modifications [Line Items] | ||
Number | loan | 0 | 2 |
Recorded investment, Pre-modification | $ 0 | $ 1,060 |
Recorded investment, Post-modification | $ 0 | $ 1,060 |
Portfolio Loans (Details 9)
Portfolio Loans (Details 9) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Special mention | ||
Risk category of loans by segment of gross loans | ||
Gross loans by segment | $ 91,076,000 | $ 30,316,000 |
Substandard | ||
Risk category of loans by segment of gross loans | ||
Gross loans by segment | 120,684,000 | 75,903,000 |
Doubtful | ||
Risk category of loans by segment of gross loans | ||
Gross loans by segment | 152,000 | 0 |
Loss | ||
Risk category of loans by segment of gross loans | ||
Gross loans by segment | 0 | 0 |
Commercial & industrial | Special mention | ||
Risk category of loans by segment of gross loans | ||
Gross loans by segment | 37,974,000 | 13,060,000 |
Commercial & industrial | Substandard | ||
Risk category of loans by segment of gross loans | ||
Gross loans by segment | 15,342,000 | 7,730,000 |
Commercial & industrial | Doubtful | ||
Risk category of loans by segment of gross loans | ||
Gross loans by segment | 0 | |
Payroll finance | Special mention | ||
Risk category of loans by segment of gross loans | ||
Gross loans by segment | 328,000 | 996,000 |
Payroll finance | Substandard | ||
Risk category of loans by segment of gross loans | ||
Gross loans by segment | 96,000 | 115,000 |
Payroll finance | Doubtful | ||
Risk category of loans by segment of gross loans | ||
Gross loans by segment | 0 | |
Factored receivables | Special mention | ||
Risk category of loans by segment of gross loans | ||
Gross loans by segment | 0 | 34,000 |
Factored receivables | Substandard | ||
Risk category of loans by segment of gross loans | ||
Gross loans by segment | 1,597,000 | 244,000 |
Factored receivables | Doubtful | ||
Risk category of loans by segment of gross loans | ||
Gross loans by segment | 0 | |
Equipment financing | Special mention | ||
Risk category of loans by segment of gross loans | ||
Gross loans by segment | 493,000 | 0 |
Equipment financing | Substandard | ||
Risk category of loans by segment of gross loans | ||
Gross loans by segment | 1,379,000 | 240,000 |
Equipment financing | Doubtful | ||
Risk category of loans by segment of gross loans | ||
Gross loans by segment | 0 | |
Commercial real estate | Special mention | ||
Risk category of loans by segment of gross loans | ||
Gross loans by segment | 40,878,000 | 12,707,000 |
Commercial real estate | Substandard | ||
Risk category of loans by segment of gross loans | ||
Gross loans by segment | 59,247,000 | 28,194,000 |
Commercial real estate | Doubtful | ||
Risk category of loans by segment of gross loans | ||
Gross loans by segment | 0 | |
Multi-family | Special mention | ||
Risk category of loans by segment of gross loans | ||
Gross loans by segment | 2,788,000 | 317,000 |
Multi-family | Substandard | ||
Risk category of loans by segment of gross loans | ||
Gross loans by segment | 1,759,000 | 272,000 |
Multi-family | Doubtful | ||
Risk category of loans by segment of gross loans | ||
Gross loans by segment | 0 | |
Acquisition, development & construction | Special mention | ||
Risk category of loans by segment of gross loans | ||
Gross loans by segment | 6,783,000 | 1,027,000 |
Acquisition, development & construction | Substandard | ||
Risk category of loans by segment of gross loans | ||
Gross loans by segment | 11,652,000 | 16,016,000 |
Acquisition, development & construction | Doubtful | ||
Risk category of loans by segment of gross loans | ||
Gross loans by segment | 0 | |
Residential mortgage | Special mention | ||
Risk category of loans by segment of gross loans | ||
Gross loans by segment | 950,000 | 975,000 |
Residential mortgage | Substandard | ||
Risk category of loans by segment of gross loans | ||
Gross loans by segment | 20,344,000 | 16,402,000 |
Residential mortgage | Doubtful | ||
Risk category of loans by segment of gross loans | ||
Gross loans by segment | 0 | |
Consumer | Special mention | ||
Risk category of loans by segment of gross loans | ||
Gross loans by segment | 882,000 | 1,200,000 |
Consumer | Substandard | ||
Risk category of loans by segment of gross loans | ||
Gross loans by segment | 9,268,000 | $ 6,690,000 |
Consumer | Doubtful | ||
Risk category of loans by segment of gross loans | ||
Gross loans by segment | $ 152,000 |
Portfolio Loans (Details Textua
Portfolio Loans (Details Textual) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Net deferred loan origination costs | $ 2,644,000 | $ 1,609,000 |
Pledged loans | 2,029,760,000 | 1,302,681,000 |
Maximum outstanding balance of loan to be evaluated for impairment on a homogeneous pool basis | 500,000 | |
Maximum loan balance for credit risk to be evaluated on a homogeneous basis | 500,000 | |
Purchased Credit Impaired Loans | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans evaluated by segment, Purchased credit impaired loans | 97,770,000 | 3,415,000 |
Balance of PCI loans treated under cost recovery method | 22,821,000 | 3,415,000 |
Special mention | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans evaluated by segment, Purchased credit impaired loans | 91,076,000 | 30,316,000 |
Special mention | HVB Merger | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans evaluated by segment, Purchased credit impaired loans | 48,153,000 | |
Substandard | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans evaluated by segment, Purchased credit impaired loans | 120,684,000 | 75,903,000 |
Substandard | HVB Merger | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans evaluated by segment, Purchased credit impaired loans | 49,914,000 | |
Loss | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans evaluated by segment, Purchased credit impaired loans | 0 | 0 |
Doubtful | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans evaluated by segment, Purchased credit impaired loans | $ 152,000 | $ 0 |
Goodwill and Other Intangible64
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 670,699 | $ 388,926 |
Finite-Lived Intangible Assets [Line Items] | ||
Core deposits and other intangibles | 80,830 | 43,332 |
Core Deposits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Core deposits and other intangibles | 48,264 | 18,473 |
Customer Lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
Core deposits and other intangibles | 8,256 | 0 |
Non-compete Agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Core deposits and other intangibles | 3,590 | 3,959 |
Trade Names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Core deposits and other intangibles | 20,500 | 20,500 |
Fair Value of Below Market Leases | ||
Finite-Lived Intangible Assets [Line Items] | ||
Core deposits and other intangibles | $ 220 | $ 400 |
Goodwill and Other Intangible65
Goodwill and Other Intangible Assets (Details 1) $ in Thousands | Sep. 30, 2015USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2015 | $ 3,463 |
2,016 | 11,953 |
2,017 | 8,088 |
2,018 | 7,098 |
2,019 | 6,074 |
2,020 | 5,428 |
Thereafter | 18,226 |
Total | $ 60,330 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Deposits [Abstract] | ||
Non-interest bearing demand | $ 3,126,258 | $ 1,481,870 |
Interest bearing demand | 1,602,613 | 747,667 |
Savings | 908,497 | 711,509 |
Money market | 2,621,029 | 1,790,435 |
Certificates of deposit | 547,014 | 480,844 |
Deposits | $ 8,805,411 | $ 5,212,325 |
Deposits (Details 1)
Deposits (Details 1) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
List of Company's Brokered deposits | ||
Brokered deposits | $ 312,309 | $ 168,658 |
Money Market | ||
List of Company's Brokered deposits | ||
Brokered deposits | 288,778 | 75,462 |
Reciprocal CDAR's | ||
List of Company's Brokered deposits | ||
Brokered deposits | 3,779 | 6,666 |
CDAR's one way | ||
List of Company's Brokered deposits | ||
Brokered deposits | $ 19,752 | $ 86,530 |
Deposits (Details Textual)
Deposits (Details Textual) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Deposits [Abstract] | ||
Municipal deposits | $ 1,352,846 | $ 883,350 |
Borrowings and Senior Notes (De
Borrowings and Senior Notes (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 | Jul. 02, 2013 |
By period to maturity: | |||
Less than one year, Amount | $ 489,499,000 | $ 532,835,000 | |
Less than one year, Rate | 0.47% | 0.39% | |
One to two years, Amount | $ 257,470,000 | $ 152,760,000 | |
One to two years, Rate | 3.51% | 0.69% | |
Two to three years, Amount | $ 198,791,000 | $ 255,000,000 | |
Two to three years, Rate | 3.86% | 3.54% | |
Three to four years, Amount | $ 0 | $ 168,498,000 | |
Three to four years, Rate | 0.00% | 4.38% | |
Greater than five years, Amount | $ 2,288,000 | $ 2,460,000 | |
Greater than five years, Rate | 4.92% | 4.92% | |
Total borrowings, Amount | $ 948,048,000 | $ 1,111,553,000 | |
Total borrowings, Rate | 2.02% | 1.77% | |
FHLB Borrowings | |||
By period to maturity: | |||
Total borrowings, Amount | $ 806,970,000 | $ 1,003,209,000 | |
Total borrowings, Rate | 1.62% | 1.37% | |
Repurchase Agreements | |||
By period to maturity: | |||
Total borrowings, Amount | $ 42,286,000 | $ 9,846,000 | |
Total borrowings, Rate | 0.34% | 0.30% | |
Senior Notes | |||
By period to maturity: | |||
Total borrowings, Amount | $ 98,792,000 | $ 98,498,000 | $ 100,000,000 |
Total borrowings, Rate | 5.98% | 5.98% |
Borrowings and Senior Notes (70
Borrowings and Senior Notes (Details Textual) - USD ($) | Sep. 04, 2015 | Sep. 05, 2014 | Jul. 02, 2013 | Dec. 31, 2014 | Sep. 30, 2015 |
Debt Instrument [Line Items] | |||||
Bank pledged mortgages | $ 1,302,681,000 | $ 2,029,760,000 | |||
Increased borrowing capacity by pledging securities | 505,000,000 | ||||
Federal home loan bank borrowings | $ 200,000,000 | $ 200,000,000 | |||
Long term debt weighted average remaining term | 2 years 3 months 21 days | 1 year 6 months 21 days | |||
Weighted average interest rates | 4.23% | 4.23% | |||
Long-term debt | $ 1,111,553,000 | $ 948,048,000 | |||
Private placement discount rate | 1.75% | ||||
Interest expense cost over the life of Senior note | 5.98% | ||||
FHLB Borrowings | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Unused Borrowing Capacity, Amount | $ 1,447,595,000 | ||||
Long-term debt | 1,003,209,000 | 806,970,000 | |||
Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 100,000,000 | 98,498,000 | 98,792,000 | ||
Fixed interest rate (percent) | 5.50% | ||||
Cost of issuance | $ 303,000 | ||||
Unamortized discount | 1,502,000 | 1,208,000 | |||
Revolving Credit Facility | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Revolving line of credit amount | $ 15,000,000 | ||||
Revolving line of credit balance | $ 0 | $ 0 | |||
Required balance | $ 0 | ||||
Duration of minimum outstanding balance | 30 days | ||||
Revolving line of credit renewal term | 12 months | ||||
London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Basis spread on one-month LIBOR | 1.25% | ||||
Minimum | |||||
Debt Instrument [Line Items] | |||||
Repurchase agreements maturity | 1 day | 1 day | |||
Maximum | |||||
Debt Instrument [Line Items] | |||||
Repurchase agreements maturity | 45 days | 45 days |
Derivatives (Details)
Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Dec. 31, 2014 | Sep. 30, 2015 | |
3rd party interest rate swap | ||
Summary of derivatives | ||
Notional amount | $ 67,551 | $ 64,581 |
Average maturity (in years) | 4 years 8 months 12 days | 5 years 7 months 9 days |
Weighted average fixed rate | 4.13% | 4.11% |
Fair value | $ 1,332 | $ 2,152 |
3rd party interest rate swap | One Month Libor | ||
Summary of derivatives | ||
Basis spread | 2.36% | 2.17% |
Customer interest rate swap | ||
Summary of derivatives | ||
Notional amount | $ 67,551 | $ 64,581 |
Average maturity (in years) | 4 years 8 months 12 days | 5 years 7 months 9 days |
Weighted average fixed rate | 4.13% | 4.11% |
Fair value | $ (1,332) | $ (2,152) |
Customer interest rate swap | One Month Libor | ||
Summary of derivatives | ||
Basis spread | 2.36% | 2.17% |
Derivatives (Details Textual)
Derivatives (Details Textual) $ in Thousands | Sep. 30, 2015USD ($) |
Derivative Instruments and Hedges, Assets [Abstract] | |
Fair value of investment securities pledged as collateral | $ 2,152 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Efftective tax rate reconciliation: | |||||
Income before income tax expense | $ 35,841,000 | $ 22,789,000 | $ 49,365,000 | $ 58,776,000 | |
Federal statutory rate | 35.00% | 35.00% | 35.00% | 35.00% | |
Tax at Federal statutory rate of 35% | $ 12,543,000 | $ 7,977,000 | $ 17,278,000 | $ 20,572,000 | |
State and local income taxes, net of Federal tax benefit | 1,888,000 | (355,000) | 2,379,000 | 1,097,000 | |
Tax-exempt interest, net of disallowed interest | (1,171,000) | (1,115,000) | (3,345,000) | (3,086,000) | |
BOLI income | (423,000) | (270,000) | (1,114,000) | (851,000) | |
Non-deductible acquisition related costs | 0 | 0 | 700,000 | 0 | |
Low income housing tax credits | (53,000) | (53,000) | (161,000) | (453,000) | |
Other, net | (1,136,000) | 268,000 | 306,000 | (183,000) | |
Actual income tax (benefit) expense | $ 11,648,000 | $ 6,452,000 | $ 16,043,000 | $ 17,096,000 | |
Effective income tax rate | 32.50% | 28.30% | 32.50% | 29.10% | |
Components of deferred tax assets and liabilities: | |||||
Net deferred tax asset | $ 23,408,000 | $ 23,408,000 | $ 14,857,000 | ||
Valuation allowance | $ 0 | $ 0 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-based Compensation Activity (Details) | 9 Months Ended | ||
Sep. 30, 2015$ / sharesshares | Sep. 30, 2014shares | May. 28, 2015shares | |
Shares available for grant (in shares) | |||
Beginning balance | 1,999,022 | ||
Granted | (463,356) | ||
Stock awards vested | 0 | ||
Forfeited | 180,217 | ||
Canceled/expired | (121,550) | ||
Ending balance | 4,394,333 | ||
Stock options outstanding - Number of shares | |||
Beginning balance | 2,040,299 | ||
Granted | 19,566 | 0 | |
Exercised | (384,781) | ||
Forfeited | (70,371) | ||
Canceled/expired | 0 | ||
Ending balance | 1,604,713 | ||
Exercisable at September 30, 2015 | 807,598 | ||
Stock options outstanding - Weighted average exercise price (USD per share) | |||
Beginning balance | $ / shares | $ 11.10 | ||
Granted | $ / shares | 14.02 | ||
Exercised | $ / shares | 11.65 | ||
Forfeited | $ / shares | 12.89 | ||
Canceled/expired | $ / shares | 0 | ||
Ending balance | $ / shares | 10.93 | ||
Exercisable at September 30, 2015 | $ / shares | $ 9.93 | ||
Non-vested Stock Awards and Performance Units | |||
Non-vested stock awards/stock units outstanding - Number of shares | |||
Beginning balance | 643,887 | ||
Granted | 166,379 | ||
Stock awards vested | (52,471) | ||
Forfeited | (31,295) | ||
Ending balance | 726,500 | ||
Non-vested stock awards/stock units outstanding - Weighted average grant date fair value (USD per share) | |||
Beginning balance | $ / shares | $ 11.79 | ||
Granted | $ / shares | 13.71 | ||
Stock awards vested | $ / shares | 11.33 | ||
Forfeited | $ / shares | 12.90 | ||
Ending balance | $ / shares | $ 12.21 | ||
2014 Plan | |||
Shares available for grant (in shares) | |||
2015 Plan | 3,400,000 | ||
Stock options outstanding - Weighted average exercise price (USD per share) | |||
Number of shares granted for each share received | 3.5 | ||
2015 Plan | |||
Shares available for grant (in shares) | |||
2015 Plan | 2,800,000 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions (Details) - Stock Options - 2011 Employment Inducement Stock Program | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Fair value of options granted determined using weighted-average assumptions as grant date | ||
Risk-free interest rate | 1.90% | 0.00% |
Expected stock price volatility | 21.10% | 0.00% |
Dividend yield | 3.10% | 0.00% |
Expected term in years | 5 years 9 months 3 days | 0 years |
Stock-Based Compensation - St76
Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 1,064 | $ 824 | $ 3,320 | $ 2,389 |
Stock-based compensation expense, income tax benefit | 68 | 219 | 727 | 456 |
Unrecognized stock-based compensation, stock options | 896 | 896 | ||
Unrecognized stock-based compensation, non-vested stock awards/performance units | 5,219 | 5,219 | ||
Total unrecognized stock-based compensation expense | 6,115 | 6,115 | ||
Proceeds from stock option exercises | 3,596 | 1,563 | ||
Stock Options | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 201 | 251 | 740 | 682 |
Non-vested Stock Awards and Performance Units | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 863 | $ 573 | $ 2,580 | $ 1,707 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Textual) $ / shares in Units, $ in Thousands | 9 Months Ended | |||
Sep. 30, 2015USD ($)$ / sharesshares | Sep. 30, 2014shares | May. 28, 2015shares | Dec. 31, 2014shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares remaining that are authorized and available for future grant | 4,394,333 | 1,999,022 | ||
Grant of share options (in shares) | 19,566 | 0 | ||
Exercise price (USD per share) | $ / shares | $ 14.02 | |||
Intrinsic value of options outstanding | $ | $ 6,320 | |||
Intrinsic value of options exercisable | $ | $ 3,992 | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average period total unrecognized compensation cost related to non-vested shares granted | 1 year 5 months 24 days | |||
Non-vested Stock Awards and Performance Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in period, other than options (in shares) | 166,379 | |||
Weighted average grant date fair value (USD per share) | $ / shares | $ 13.71 | |||
Weighted-average period total unrecognized compensation cost related to non-vested shares granted | 1 year 7 months 3 days | |||
2015 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 2,800,000 | |||
Number of shares granted for each share received | 1 | |||
2014 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 3,400,000 | |||
Number of shares granted for each share received | 1 | |||
Number of shares other than options granted for each share received | 3.5 | |||
2011 Employment Inducement Stock Program | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grant of share options (in shares) | 107,256 | |||
Weighted average fair value of options granted (USD per share) | $ / shares | $ 2.11 | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grant of share options (in shares) | 29,550 | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Term of contract | 10 years | |||
Stock Options | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period for awards | 1 year | |||
Stock Options | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period for awards | 5 years | |||
Sterling Bancorp (Legacy) | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period for awards | 3 years | |||
Sterling Bancorp (Legacy) | Fully Vested legacy Sterling options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grant of share options (in shares) | 104,152 | |||
Sterling Bancorp (Legacy) | Sterling Bancorp 2013 Employment Inducement Award Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grant of share options (in shares) | 95,991 | |||
Sterling Bancorp (Legacy) | Prior Plan | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in period, other than options (in shares) | 255,973 | |||
Stock Compensation Grants associated with legacy Sterling Merger | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price (USD per share) | $ / shares | $ 14.25 | |||
Stock Compensation Grants associated with legacy Sterling Merger | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average grant date fair value (USD per share) | $ / shares | $ 11.72 |
Pension and Other Post Retire78
Pension and Other Post Retirement Plans - Net Pension and Post-retirement Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan termination charge (settlement benefit) | $ 13,384 | $ 0 | $ 13,384 | $ 1,486 |
Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 589 | 734 | 1,766 | 2,228 |
Expected return on plan assets | (729) | (892) | (2,187) | (2,709) |
Net amortization and deferral | 90 | 49 | 272 | 129 |
Plan termination charge (settlement benefit) | 13,384 | 0 | 13,384 | 1,486 |
Total pension and other post-retirement expense (benefit) | 13,334 | (109) | 13,235 | 1,134 |
Other Post retirement Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 2 | 16 | 4 | 39 |
Interest cost | 119 | 584 | 384 | 649 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Net amortization and deferral | 44 | 205 | 121 | 241 |
Plan termination charge (settlement benefit) | 0 | (2,485) | 0 | (2,485) |
Total pension and other post-retirement expense (benefit) | $ 165 | $ (1,680) | $ 509 | $ (1,556) |
Pension and Other Post Retire79
Pension and Other Post Retirement Plans (Details Textual) - USD ($) $ in Thousands | Oct. 15, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 |
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan termination charge (settlement benefit) | $ 13,384 | $ 0 | $ 13,384 | $ 1,486 | |
HVB Merger | Other Liabilities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
SERP liabilities assumed in acquisition | 13,868 | 13,868 | |||
Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan termination charge (settlement benefit) | 13,384 | 0 | $ 13,384 | 1,486 | |
Pension Plans | Minimum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Remaining reversion asset, recognition period | 5 years | ||||
Pension Plans | Maximum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Remaining reversion asset, recognition period | 7 years | ||||
Pension Plans | Other Assets | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Remaining reversion asset | 11,718 | $ 11,718 | |||
Pension Plans | Subsequent Event | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Lump sum distributions as elected by Plan participants | $ 58,171 | ||||
Plan termination charge (settlement benefit) | 13,384 | ||||
Change in fair value of Plan assets | 4,068 | ||||
Remaining balance of accumulated other comprehensive loss through earnings recognized | 7,936 | ||||
Difference between effective tax rate and marginal tax rate | $ 1,380 | ||||
Other Post retirement Benefit Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan termination charge (settlement benefit) | 0 | $ (2,485) | 0 | (2,485) | |
Employer contributions to fund SERP | 79 | $ 75 | |||
Other Post retirement Benefit Plans | Other Liabilities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total post retirement plan liabilities | $ 12,134 | $ 12,134 |
Other Non-interest Expense (Det
Other Non-interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Other Income and Expenses [Abstract] | ||||
Other non-interest expense: | $ 699 | $ 664 | $ 1,771 | $ 2,048 |
Professional fees | 2,159 | 1,913 | 6,173 | 5,079 |
Data and check processing | 2,667 | 1,065 | 6,383 | 2,796 |
Insurance & surety bond premium | 1,161 | 675 | 2,290 | 2,086 |
Charge for asset write-downs | 0 | 0 | 29,026 | 2,321 |
Other | 5,472 | 4,855 | 12,921 | 12,435 |
Total other non-interest expense | $ 12,158 | $ 9,172 | $ 58,564 | $ 26,765 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share, Basic [Abstract] | ||||
Net income | $ 24,193 | $ 16,337 | $ 33,322 | $ 41,680 |
Less: Earnings allocated to participating securities | 105 | 98 | 247 | 254 |
Net earnings attributable to common stock | 24,088 | 16,239 | 33,075 | 41,426 |
Distributed earnings allocated to common stock | 9,031 | 5,932 | 21,196 | 17,569 |
Undistributed earnings allocated to common stock | $ 15,057 | $ 10,307 | $ 11,879 | $ 23,857 |
Weighted average total shares outstanding | 129,733,911 | 83,610,943 | 103,199,765 | 83,563,334 |
Less: Weighted average participating securities | 561,079 | 504,999 | 544,199 | 512,142 |
Weighted average common shares outstanding | 129,172,832 | 83,105,944 | 102,655,566 | 83,051,192 |
Basic (loss) earnings per common share (USD per share) | $ 0.19 | $ 0.20 | $ 0.32 | $ 0.50 |
Earnings Per Share, Diluted [Abstract] | ||||
Dilutive effect of stock-based compensation | 459,026 | 272,518 | 413,491 | 264,894 |
Weighted average diluted shares outstanding (in shares) | 129,631,858 | 83,378,462 | 103,069,057 | 83,316,086 |
Diluted (loss) earnings per common share (USD per share) | $ 0.19 | $ 0.19 | $ 0.32 | $ 0.50 |
Dividends per common share (USD per share) | $ 0.07 | $ 0.07 | $ 0.21 | $ 0.21 |
Antidilutive securities excluded from earnings per share (in shares) | 149 | 530,547 | 102,310 | 586,664 |
Stockholders' Equity - Complian
Stockholders' Equity - Compliance with Regulatory Capital Requirements (Schedule) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Tier 1 leverage ratio: | ||
Common stock issued in HVB Merger | $ 563,613 | |
Sterling National Bank | ||
Common equity tier 1 to RWA: | ||
Tier 1 common equity | $ 1,032,930 | |
Tier 1 common equity ratio | 11.79% | |
Tier 1 common equity required for minimum capital adequacy, phase-in schedule | $ 394,214 | |
Tier 1 common equity required for minimum capital adequacy ratio, phase-in schedule | 4.50% | |
Tier 1 common equity required for minimum capital adequacy, fully phased-in | $ 613,221 | |
Tier 1 common equity required for minimum capital adequacy ratio, phase-in schedule | 7.00% | |
Tier 1 common equity required to be well capitalized | $ 569,420 | |
Tier 1 common equity required to be well capitalized ratio | 6.50% | |
Tier 1 capital to RWA: | ||
Tier 1 risk-based capital | $ 1,032,930 | $ 651,203 |
Tier 1 risk-based capital ratio | 11.79% | 12.00% |
Tier 1 risk-based capital required for capital adequacy | $ 216,988 | |
Tier 1 risk-based capital required for capital adequacy ratio | 4.00% | |
Tier 1 risk-based capital required for minimum capital adequacy, phase-in schedule | $ 525,618 | |
Tier 1 risk-based capital required for minimum capital adequacy ratio, phase-in schedule | 6.00% | |
Tier 1 risk-based capital required for minimum capital adequacy, fully phased-in | $ 744,626 | |
Tier 1 risk-based capital required for minimum capital adequacy, fully phased-in | 8.50% | |
Tier 1 risk-based capital required to be well capitalized | $ 700,824 | $ 325,481 |
Tier 1 risk-based capital required to be well capitalized ratio | 8.00% | 6.00% |
Total capital to RWA: | ||
Total risk-based capital | $ 1,081,090 | $ 693,972 |
Total risk-based capital ratio | 12.34% | 12.79% |
Total risk-based capital required for minimum capital adequacy | $ 433,975 | |
Total risk-based capital required for minimum capital adequacy ratio | 8.00% | |
Total risk-based capital required for minimum capital adequacy, phase-in schedule | $ 700,824 | |
Total risk-based capital required for minimum capital adequacy ratio, phase-in schedule | 8.00% | |
Total risk-based capital required for minimum capital adequacy, fully phased-in | $ 919,832 | |
Total risk-based capital required for minimum capital adequacy ratio, fully phased-in | 10.50% | |
Total risk-based capital required to be well capitalized | $ 876,030 | $ 542,469 |
Total risk-based capital required to be well capitalized ratio | 10.00% | 10.00% |
Tier 1 leverage ratio: | ||
Tier 1 (core) capital | $ 1,032,930 | $ 651,203 |
Tier 1 (core) capital ratio | 9.80% | 9.39% |
Tier 1 (core) capital required for minimum capital adequacy | $ 277,534 | |
Tier 1 (core) capital required for minimum capital adequacy ratio | 4.00% | |
Tier 1 (core) capital required for minimum capital adequacy, phase-in schedule | $ 421,732 | |
Tier 1 (core) capital required for minimum capital adequacy ratio, phase-in schedule | 4.00% | |
Tier 1 (core) capital required for minimum capital adequacy, fully phased- in | $ 421,732 | |
Tier 1 (core) capital required for minimum capital adequacy ratio, fully phased-in | 4.00% | |
Tier 1 (core) capital required to be well capitalized | $ 527,165 | $ 346,918 |
Tier 1 (core) capital required to be well capitalized ratio | 5.00% | 5.00% |
Sterling Bancorp | ||
Common equity tier 1 to RWA: | ||
Tier 1 common equity | $ 963,090 | |
Tier 1 common equity ratio | 10.94% | |
Tier 1 common equity required for minimum capital adequacy, phase-in schedule | $ 396,017 | |
Tier 1 common equity required for minimum capital adequacy ratio, phase-in schedule | 4.50% | |
Tier 1 common equity required for minimum capital adequacy, fully phased-in | $ 616,026 | |
Tier 1 common equity required for minimum capital adequacy ratio, phase-in schedule | 7.00% | |
Tier 1 capital to RWA: | ||
Tier 1 risk-based capital | $ 963,090 | $ 569,609 |
Tier 1 risk-based capital ratio | 10.94% | 10.43% |
Tier 1 risk-based capital required for capital adequacy | $ 218,405 | |
Tier 1 risk-based capital required for capital adequacy ratio | 4.00001% | |
Tier 1 risk-based capital required for minimum capital adequacy, phase-in schedule | $ 528,022 | |
Tier 1 risk-based capital required for minimum capital adequacy ratio, phase-in schedule | 6.00% | |
Tier 1 risk-based capital required for minimum capital adequacy, fully phased-in | $ 748,031 | |
Tier 1 risk-based capital required for minimum capital adequacy, fully phased-in | 8.50% | |
Total capital to RWA: | ||
Total risk-based capital | $ 1,011,250 | $ 612,378 |
Total risk-based capital ratio | 11.49% | 11.22% |
Total risk-based capital required for minimum capital adequacy | $ 436,809 | |
Total risk-based capital required for minimum capital adequacy ratio | 8.00% | |
Total risk-based capital required for minimum capital adequacy, phase-in schedule | $ 704,030 | |
Total risk-based capital required for minimum capital adequacy ratio, phase-in schedule | 8.00% | |
Total risk-based capital required for minimum capital adequacy, fully phased-in | $ 924,039 | |
Total risk-based capital required for minimum capital adequacy ratio, fully phased-in | 10.50% | |
Tier 1 leverage ratio: | ||
Tier 1 (core) capital | $ 963,090 | $ 569,609 |
Tier 1 (core) capital ratio | 9.12% | 8.21% |
Tier 1 (core) capital required for minimum capital adequacy | $ 277,352 | |
Tier 1 (core) capital required for minimum capital adequacy ratio | 4.00% | |
Tier 1 (core) capital required for minimum capital adequacy, phase-in schedule | $ 422,388 | |
Tier 1 (core) capital required for minimum capital adequacy ratio, phase-in schedule | 4.00% | |
Tier 1 (core) capital required for minimum capital adequacy, fully phased- in | $ 422,388 | |
Tier 1 (core) capital required for minimum capital adequacy ratio, fully phased-in | 4.00% |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 11, 2015 | Sep. 30, 2015 | Sep. 30, 2014 |
Class of Stock [Line Items] | |||
Aggregate dividend capacity without prior regulatory approval | $ 56,549 | ||
Capital raise, shares | 6,900,000 | ||
Capital raise, price per share (USD per share) | $ 13 | ||
Total proceeds from public offering | $ 89,700 | $ 85,059 | $ 0 |
Net proceeds from public offering | $ 85,059 | ||
Shares available for repurchase program | 776,713 | ||
Common stock issued in HVB Merger, shares | 38,525,154 | ||
Common stock issued in HVB Merger | $ 563,613 | ||
Sterling Bancorp | |||
Class of Stock [Line Items] | |||
Shares repurchased under repurchase program | 0 | 0 | |
Sterling National Bank | |||
Class of Stock [Line Items] | |||
Liquidation account | $ 13,300 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Rent expense | $ 3,335 | $ 1,908 | $ 6,570 | $ 5,735 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||||
Remainder of 2015 | 3,308 | 3,308 | |||
2,016 | 12,252 | 12,252 | |||
2,017 | 11,311 | 11,311 | |||
2,018 | 10,091 | 10,091 | |||
2,019 | 7,568 | 7,568 | |||
2,020 | 6,477 | 6,477 | |||
2021 and thereafter | 27,792 | 27,792 | |||
Total future minimum payments | 78,799 | 78,799 | |||
Loan origination commitments | |||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Lending-related instruments | 324,602 | 324,602 | $ 208,486 | ||
Unused lines of credit | |||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Lending-related instruments | 578,629 | 578,629 | 332,295 | ||
Letters of credit | |||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Lending-related instruments | $ 83,831 | $ 83,831 | $ 83,316 |
Fair Value Measurements (Detail
Fair Value Measurements (Details 1) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Other securities: | ||
Securities available for sale | $ 1,854,862 | $ 1,140,846 |
Fair Value, Measurements, Recurring | ||
Residential MBS: | ||
Mortgage-backed securities-residential | 1,140,587 | 618,501 |
Other securities: | ||
Total investment securities available for sale | 714,275 | 522,345 |
Securities available for sale | 1,854,862 | 1,140,846 |
Swaps | 2,152 | 1,332 |
Total Assets | 1,857,014 | 1,142,178 |
Swaps | 2,152 | 1,332 |
Total Liabilities | 2,152 | 1,332 |
Agency-backed | Fair Value, Measurements, Recurring | ||
Residential MBS: | ||
Mortgage-backed securities-residential | 1,056,240 | 533,663 |
CMO/Other MBS | Fair Value, Measurements, Recurring | ||
Residential MBS: | ||
Mortgage-backed securities-residential | 84,347 | 84,838 |
Federal agencies | Fair Value, Measurements, Recurring | ||
Other securities: | ||
Total investment securities available for sale | 86,760 | 147,156 |
Corporate bonds | Fair Value, Measurements, Recurring | ||
Other securities: | ||
Total investment securities available for sale | 399,658 | 204,831 |
State and municipal | Fair Value, Measurements, Recurring | ||
Other securities: | ||
Total investment securities available for sale | 190,534 | 132,065 |
Trust preferred | Fair Value, Measurements, Recurring | ||
Other securities: | ||
Total investment securities available for sale | 28,532 | 38,293 |
Other | Fair Value, Measurements, Recurring | ||
Other securities: | ||
Total investment securities available for sale | 8,791 | |
Quoted Prices in Active markets for Identical Assets Level 1 | ||
Other securities: | ||
Securities available for sale | 0 | 0 |
Swaps | 0 | 0 |
Swaps | 0 | 0 |
Quoted Prices in Active markets for Identical Assets Level 1 | Fair Value, Measurements, Recurring | ||
Residential MBS: | ||
Mortgage-backed securities-residential | 0 | 0 |
Other securities: | ||
Total investment securities available for sale | 0 | 0 |
Securities available for sale | 0 | 0 |
Swaps | 0 | 0 |
Total Assets | 0 | 0 |
Swaps | 0 | 0 |
Total Liabilities | 0 | 0 |
Quoted Prices in Active markets for Identical Assets Level 1 | Agency-backed | Fair Value, Measurements, Recurring | ||
Residential MBS: | ||
Mortgage-backed securities-residential | 0 | 0 |
Quoted Prices in Active markets for Identical Assets Level 1 | CMO/Other MBS | Fair Value, Measurements, Recurring | ||
Residential MBS: | ||
Mortgage-backed securities-residential | 0 | 0 |
Quoted Prices in Active markets for Identical Assets Level 1 | Federal agencies | Fair Value, Measurements, Recurring | ||
Other securities: | ||
Total investment securities available for sale | 0 | 0 |
Quoted Prices in Active markets for Identical Assets Level 1 | Corporate bonds | Fair Value, Measurements, Recurring | ||
Other securities: | ||
Total investment securities available for sale | 0 | 0 |
Quoted Prices in Active markets for Identical Assets Level 1 | State and municipal | Fair Value, Measurements, Recurring | ||
Other securities: | ||
Total investment securities available for sale | 0 | 0 |
Quoted Prices in Active markets for Identical Assets Level 1 | Trust preferred | Fair Value, Measurements, Recurring | ||
Other securities: | ||
Total investment securities available for sale | 0 | 0 |
Quoted Prices in Active markets for Identical Assets Level 1 | Other | Fair Value, Measurements, Recurring | ||
Other securities: | ||
Total investment securities available for sale | 0 | |
Significant Other Observable Inputs Level 2 | ||
Other securities: | ||
Securities available for sale | 1,854,862 | 1,140,846 |
Swaps | 2,152 | 1,332 |
Swaps | 2,152 | 1,332 |
Significant Other Observable Inputs Level 2 | Fair Value, Measurements, Recurring | ||
Residential MBS: | ||
Mortgage-backed securities-residential | 1,140,587 | 618,501 |
Other securities: | ||
Total investment securities available for sale | 714,275 | 522,345 |
Securities available for sale | 1,854,862 | 1,140,846 |
Swaps | 2,152 | 1,332 |
Total Assets | 1,857,014 | 1,142,178 |
Swaps | 2,152 | 1,332 |
Total Liabilities | 2,152 | 1,332 |
Significant Other Observable Inputs Level 2 | Agency-backed | Fair Value, Measurements, Recurring | ||
Residential MBS: | ||
Mortgage-backed securities-residential | 1,056,240 | 533,663 |
Significant Other Observable Inputs Level 2 | CMO/Other MBS | Fair Value, Measurements, Recurring | ||
Residential MBS: | ||
Mortgage-backed securities-residential | 84,347 | 84,838 |
Significant Other Observable Inputs Level 2 | Federal agencies | Fair Value, Measurements, Recurring | ||
Other securities: | ||
Total investment securities available for sale | 86,760 | 147,156 |
Significant Other Observable Inputs Level 2 | Corporate bonds | Fair Value, Measurements, Recurring | ||
Other securities: | ||
Total investment securities available for sale | 399,658 | 204,831 |
Significant Other Observable Inputs Level 2 | State and municipal | Fair Value, Measurements, Recurring | ||
Other securities: | ||
Total investment securities available for sale | 190,534 | 132,065 |
Significant Other Observable Inputs Level 2 | Trust preferred | Fair Value, Measurements, Recurring | ||
Other securities: | ||
Total investment securities available for sale | 28,532 | 38,293 |
Significant Other Observable Inputs Level 2 | Other | Fair Value, Measurements, Recurring | ||
Other securities: | ||
Total investment securities available for sale | 8,791 | |
Significant Unobservable Inputs Level 3 | ||
Other securities: | ||
Securities available for sale | 0 | 0 |
Swaps | 0 | 0 |
Swaps | 0 | 0 |
Significant Unobservable Inputs Level 3 | Fair Value, Measurements, Recurring | ||
Residential MBS: | ||
Mortgage-backed securities-residential | 0 | 0 |
Other securities: | ||
Total investment securities available for sale | 0 | 0 |
Securities available for sale | 0 | 0 |
Swaps | 0 | 0 |
Total Assets | 0 | 0 |
Swaps | 0 | 0 |
Total Liabilities | 0 | 0 |
Significant Unobservable Inputs Level 3 | Agency-backed | Fair Value, Measurements, Recurring | ||
Residential MBS: | ||
Mortgage-backed securities-residential | 0 | 0 |
Significant Unobservable Inputs Level 3 | CMO/Other MBS | Fair Value, Measurements, Recurring | ||
Residential MBS: | ||
Mortgage-backed securities-residential | 0 | 0 |
Significant Unobservable Inputs Level 3 | Federal agencies | Fair Value, Measurements, Recurring | ||
Other securities: | ||
Total investment securities available for sale | 0 | 0 |
Significant Unobservable Inputs Level 3 | Corporate bonds | Fair Value, Measurements, Recurring | ||
Other securities: | ||
Total investment securities available for sale | 0 | 0 |
Significant Unobservable Inputs Level 3 | State and municipal | Fair Value, Measurements, Recurring | ||
Other securities: | ||
Total investment securities available for sale | 0 | 0 |
Significant Unobservable Inputs Level 3 | Trust preferred | Fair Value, Measurements, Recurring | ||
Other securities: | ||
Total investment securities available for sale | 0 | $ 0 |
Significant Unobservable Inputs Level 3 | Other | Fair Value, Measurements, Recurring | ||
Other securities: | ||
Total investment securities available for sale | $ 0 |
Fair Value Measurements (Deta86
Fair Value Measurements (Details 2) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Quoted Prices in Active markets for Identical Assets Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Portfolio loans, net | $ 0 | $ 0 |
Significant Other Observable Inputs Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Portfolio loans, net | 0 | 0 |
Significant Unobservable Inputs Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Portfolio loans, net | 7,550,744 | 4,783,508 |
Impaired | Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Portfolio loans, net | 1,388 | 5,815 |
Impaired | Fair Value, Measurements, Nonrecurring | Quoted Prices in Active markets for Identical Assets Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Portfolio loans, net | 0 | 0 |
Impaired | Fair Value, Measurements, Nonrecurring | Significant Other Observable Inputs Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Portfolio loans, net | 0 | 0 |
Impaired | Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Portfolio loans, net | 1,388 | 5,815 |
Impaired | Commercial & industrial | Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Portfolio loans, net | 65 | |
Impaired | Commercial & industrial | Fair Value, Measurements, Nonrecurring | Quoted Prices in Active markets for Identical Assets Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Portfolio loans, net | 0 | |
Impaired | Commercial & industrial | Fair Value, Measurements, Nonrecurring | Significant Other Observable Inputs Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Portfolio loans, net | 0 | |
Impaired | Commercial & industrial | Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Portfolio loans, net | 65 | |
Impaired | Commercial Real Estate | Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Portfolio loans, net | 1,347 | 1,950 |
Impaired | Commercial Real Estate | Fair Value, Measurements, Nonrecurring | Quoted Prices in Active markets for Identical Assets Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Portfolio loans, net | 0 | 0 |
Impaired | Commercial Real Estate | Fair Value, Measurements, Nonrecurring | Significant Other Observable Inputs Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Portfolio loans, net | 0 | 0 |
Impaired | Commercial Real Estate | Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Portfolio loans, net | 1,347 | 1,950 |
Impaired | ADC | Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Portfolio loans, net | 41 | 3,800 |
Impaired | ADC | Fair Value, Measurements, Nonrecurring | Quoted Prices in Active markets for Identical Assets Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Portfolio loans, net | 0 | 0 |
Impaired | ADC | Fair Value, Measurements, Nonrecurring | Significant Other Observable Inputs Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Portfolio loans, net | 0 | 0 |
Impaired | ADC | Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Portfolio loans, net | $ 41 | $ 3,800 |
Fair Value Measurements (Deta87
Fair Value Measurements (Details 3) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015USD ($)speed | Dec. 31, 2014USD ($) | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Mortgage servicing rights | $ 1,288 | $ 1,456 |
Significant Unobservable Inputs Level 3 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Portfolio loans, net | 7,550,744 | 4,783,508 |
Fair Value, Measurements, Nonrecurring | Mortgage Servicing Rights | Significant Unobservable Inputs Level 3 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Mortgage servicing rights | 1,288 | |
Market Approach Valuation Technique | Fair Value, Measurements, Nonrecurring | Commercial Real Estate | Significant Unobservable Inputs Level 3 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Portfolio loans, net | $ 334 | |
Minimum | Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs Level 3 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Prepayment speed | speed | 100 | |
Minimum | Fair Value, Measurements, Nonrecurring | Mortgage Servicing Rights | Significant Unobservable Inputs Level 3 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount rates | 8.30% | |
Maximum | Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs Level 3 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Prepayment speed | speed | 353 | |
Maximum | Fair Value, Measurements, Nonrecurring | Mortgage Servicing Rights | Significant Unobservable Inputs Level 3 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount rates | 11.30% | |
Weighted Average | Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs Level 3 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Prepayment speed | speed | 186 | |
Weighted Average | Fair Value, Measurements, Nonrecurring | Mortgage Servicing Rights | Significant Unobservable Inputs Level 3 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount rates | 9.50% | |
Impaired | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Portfolio loans, net | $ 1,388 | 5,815 |
Impaired | Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs Level 3 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Portfolio loans, net | 1,388 | $ 5,815 |
Impaired | Market Approach Valuation Technique | Fair Value, Measurements, Nonrecurring | Commercial Real Estate | Significant Unobservable Inputs Level 3 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Portfolio loans, net | $ 1,347 | |
Comparability adjustments | 22.00% | |
Impaired | Market Approach Valuation Technique | Fair Value, Measurements, Nonrecurring | ADC | Significant Unobservable Inputs Level 3 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Portfolio loans, net | $ 41 | |
Impaired | Minimum | Market Approach Valuation Technique | Fair Value, Measurements, Nonrecurring | ADC | Significant Unobservable Inputs Level 3 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Comparability adjustments | 10.00% | |
Impaired | Maximum | Market Approach Valuation Technique | Fair Value, Measurements, Nonrecurring | ADC | Significant Unobservable Inputs Level 3 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Comparability adjustments | 22.00% | |
Impaired | Weighted Average | Market Approach Valuation Technique | Fair Value, Measurements, Nonrecurring | Commercial Real Estate | Significant Unobservable Inputs Level 3 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Comparability adjustments | 22.00% | |
Impaired | Weighted Average | Market Approach Valuation Technique | Fair Value, Measurements, Nonrecurring | ADC | Significant Unobservable Inputs Level 3 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Comparability adjustments | 13.50% | |
Taken in Foreclosure | Market Approach Valuation Technique | Fair Value, Measurements, Nonrecurring | Commercial Real Estate | Significant Unobservable Inputs Level 3 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Portfolio loans, net | $ 5,206 | |
Taken in Foreclosure | Market Approach Valuation Technique | Fair Value, Measurements, Nonrecurring | ADC | Significant Unobservable Inputs Level 3 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Portfolio loans, net | 4,695 | |
Taken in Foreclosure | Market Approach Valuation Technique | Fair Value, Measurements, Nonrecurring | Residential mortgage | Significant Unobservable Inputs Level 3 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Portfolio loans, net | $ 1,596 | |
Taken in Foreclosure | Minimum | Market Approach Valuation Technique | Fair Value, Measurements, Nonrecurring | Commercial Real Estate | Significant Unobservable Inputs Level 3 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Management adjustments | 10.00% | |
Taken in Foreclosure | Minimum | Market Approach Valuation Technique | Fair Value, Measurements, Nonrecurring | ADC | Significant Unobservable Inputs Level 3 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Management adjustments | 10.00% | |
Taken in Foreclosure | Minimum | Market Approach Valuation Technique | Fair Value, Measurements, Nonrecurring | Residential mortgage | Significant Unobservable Inputs Level 3 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Management adjustments | 10.00% | |
Taken in Foreclosure | Maximum | Market Approach Valuation Technique | Fair Value, Measurements, Nonrecurring | Commercial Real Estate | Significant Unobservable Inputs Level 3 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Management adjustments | 22.00% | |
Taken in Foreclosure | Maximum | Market Approach Valuation Technique | Fair Value, Measurements, Nonrecurring | ADC | Significant Unobservable Inputs Level 3 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Management adjustments | 22.00% | |
Taken in Foreclosure | Maximum | Market Approach Valuation Technique | Fair Value, Measurements, Nonrecurring | Residential mortgage | Significant Unobservable Inputs Level 3 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Management adjustments | 22.00% | |
Taken in Foreclosure | Weighted Average | Market Approach Valuation Technique | Fair Value, Measurements, Nonrecurring | Commercial Real Estate | Significant Unobservable Inputs Level 3 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Management adjustments | 22.00% | |
Taken in Foreclosure | Weighted Average | Market Approach Valuation Technique | Fair Value, Measurements, Nonrecurring | ADC | Significant Unobservable Inputs Level 3 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Management adjustments | 22.00% | |
Taken in Foreclosure | Weighted Average | Market Approach Valuation Technique | Fair Value, Measurements, Nonrecurring | Residential mortgage | Significant Unobservable Inputs Level 3 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Management adjustments | 21.60% |
Fair value Measurements (Deta88
Fair value Measurements (Details 4) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | $ 1,854,862 | $ 1,140,846 |
Securities held to maturity | 689,049 | 586,346 |
FHLB borrowings | (200,000) | (200,000) |
Senior notes | (98,792) | (98,498) |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 318,139 | 121,520 |
Securities available for sale | 1,854,862 | 1,140,846 |
Securities held to maturity | 673,130 | 572,337 |
Portfolio loans, net | 7,478,021 | 4,773,267 |
Loans held for sale | 66,506 | 46,599 |
Accrued interest receivable on securities | 12,327 | 7,742 |
Accrued interest receivable on loans | 18,765 | 11,559 |
FHLB stock and FRB stock | 89,626 | 75,437 |
Swaps | 2,152 | 1,332 |
Non-maturity deposits | (8,258,397) | (4,731,481) |
Certificates of deposit | (547,014) | (480,844) |
FHLB borrowings | (806,970) | (1,003,209) |
Other borrowings | (42,286) | (9,846) |
Senior notes | (98,792) | (98,498) |
Mortgage escrow funds | (13,865) | (4,167) |
Accrued interest payable on deposits | (414) | (329) |
Accrued interest payable on borrowings | (2,861) | (4,354) |
Swaps | (2,152) | (1,332) |
Fair Value, Inputs, Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 318,139 | 121,520 |
Securities available for sale | 0 | 0 |
Securities held to maturity | 0 | 0 |
Portfolio loans, net | 0 | 0 |
Loans held for sale | 0 | 0 |
Accrued interest receivable on securities | 0 | 0 |
Accrued interest receivable on loans | 0 | 0 |
FHLB stock and FRB stock | 0 | 0 |
Swaps | 0 | 0 |
Non-maturity deposits | (8,258,397) | (4,731,481) |
Certificates of deposit | 0 | 0 |
FHLB borrowings | 0 | 0 |
Other borrowings | 0 | 0 |
Senior notes | 0 | 0 |
Mortgage escrow funds | 0 | 0 |
Accrued interest payable on deposits | 0 | 0 |
Accrued interest payable on borrowings | 0 | 0 |
Swaps | 0 | 0 |
Significant Other Observable Inputs Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Securities available for sale | 1,854,862 | 1,140,846 |
Securities held to maturity | 689,049 | 586,346 |
Portfolio loans, net | 0 | 0 |
Loans held for sale | 66,506 | 46,599 |
Accrued interest receivable on securities | 12,327 | 7,742 |
Accrued interest receivable on loans | 0 | 0 |
FHLB stock and FRB stock | 0 | 0 |
Swaps | 2,152 | 1,332 |
Non-maturity deposits | 0 | 0 |
Certificates of deposit | (546,947) | (480,621) |
FHLB borrowings | (819,997) | (1,019,690) |
Other borrowings | (42,066) | (9,846) |
Senior notes | (101,066) | (100,769) |
Mortgage escrow funds | (13,863) | (4,167) |
Accrued interest payable on deposits | (414) | (329) |
Accrued interest payable on borrowings | (2,861) | (4,354) |
Swaps | (2,152) | (1,332) |
Significant Unobservable Inputs Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Securities available for sale | 0 | 0 |
Securities held to maturity | 0 | 0 |
Portfolio loans, net | 7,550,744 | 4,783,508 |
Loans held for sale | 0 | 0 |
Accrued interest receivable on securities | 0 | 0 |
Accrued interest receivable on loans | 18,765 | 11,559 |
FHLB stock and FRB stock | 0 | 0 |
Swaps | 0 | 0 |
Non-maturity deposits | 0 | 0 |
Certificates of deposit | 0 | 0 |
FHLB borrowings | 0 | 0 |
Other borrowings | 0 | 0 |
Senior notes | 0 | 0 |
Mortgage escrow funds | 0 | 0 |
Accrued interest payable on deposits | 0 | 0 |
Accrued interest payable on borrowings | 0 | 0 |
Swaps | $ 0 | $ 0 |
Fair value measurements (Deta89
Fair value measurements (Details Textual) - USD ($) | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Changes in fair value recognized on provisions on loans held by the Company | $ 280,000 | $ 905,000 | |
Mortgage servicing rights | 1,288,000 | $ 1,456,000 | |
Assets taken in foreclosure, defaulted loans and facilities held for sale | 11,831,000 | $ 5,867,000 | |
Changes in fair value recognized through income for foreclosed assets held by the Company | 0 | 0 | |
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Portfolio loans, net | $ 28,435,000 | $ 36,208,000 |
Accumulated Other Comprehensi90
Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Equity [Abstract] | ||||||
Net unrealized holding gain on available for sale securities | $ 7,800 | $ 2,256 | ||||
Related income tax (expense) | (3,315) | (959) | ||||
Available for sale securities AOCI, net of tax | 4,485 | 1,297 | ||||
Net unrealized holding loss on securities transferred to held to maturity | (7,518) | (8,638) | ||||
Related income tax benefit | 3,195 | 3,671 | ||||
Securities transferred to held to maturity AOCI, net of tax | (4,323) | (4,967) | ||||
Net unrealized holding loss on retirement plans | (1,717) | (11,445) | ||||
Related income tax benefit | 730 | 4,864 | ||||
Retirement plans AOCI, net of tax | (987) | (6,581) | ||||
AOCI | $ (825) | $ (13,202) | $ (10,251) | $ (11,459) | $ (7,772) | $ (19,465) |
Accumulated Other Comprehensi91
Accumulated Other Comprehensive (Loss) Income (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance beginning of the period | $ (13,202) | $ (7,772) | $ (10,251) | $ (19,465) |
Other comprehensive gain before reclassification | 5,260 | (3,395) | 337 | 7,984 |
Amounts reclassified from AOCI | 7,117 | (292) | 9,089 | 22 |
Other comprehensive income (loss), net of tax | 12,377 | (3,687) | 9,426 | 8,006 |
Balance at end of period | (825) | (11,459) | (825) | (11,459) |
Plan termination charge (settlement benefit) | 13,384 | 0 | 13,384 | 1,486 |
Compensation and benefits expense | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Amounts reclassified from AOCI | 23 | 237 | ||
Net unrealized holding gain (loss) on available for sale securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance beginning of the period | (2,342) | 705 | 1,297 | (11,395) |
Other comprehensive gain before reclassification | 5,260 | (3,395) | 337 | 7,984 |
Amounts reclassified from AOCI | 1,567 | 19 | 2,851 | 740 |
Other comprehensive income (loss), net of tax | 6,827 | (3,376) | 3,188 | 8,724 |
Balance at end of period | 4,485 | (2,671) | 4,485 | (2,671) |
Net unrealized holding gain (loss) on securities transferred to held to maturity | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance beginning of the period | (4,493) | $ (5,303) | (4,967) | (5,659) |
Other comprehensive gain before reclassification | 0 | 0 | 0 | |
Amounts reclassified from AOCI | 170 | $ 159 | 644 | 515 |
Other comprehensive income (loss), net of tax | 170 | 159 | 644 | 515 |
Balance at end of period | (4,323) | (5,144) | (4,323) | (5,144) |
Net unrealized holding gain (loss) on retirement plans | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance beginning of the period | (6,367) | $ (3,174) | (6,581) | (2,411) |
Other comprehensive gain before reclassification | 0 | 0 | 0 | |
Amounts reclassified from AOCI | 5,380 | $ (470) | 5,594 | (1,233) |
Other comprehensive income (loss), net of tax | 5,380 | (470) | 5,594 | (1,233) |
Balance at end of period | (987) | (3,644) | (987) | (3,644) |
AOCI related to plan termination | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Amounts reclassified from AOCI | 5,357 | 5,357 | ||
Pension Plans | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Plan termination charge (settlement benefit) | $ 13,384 | $ 0 | $ 13,384 | $ 1,486 |