Business Combination (Tables)

6 Months Ended

Jun. 30, 2012

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]

The following table summarizes the amounts recorded at closing:



	February 29, 2012
	(in thousands)
Cash and cash equivalents	$	150,045
Investments and MBS	187,465
Loans receivable, net	349,990
Goodwill	22,577
Core deposit intangible	11,974
Fixed assets	4,038
Other assets	10,886
Total assets acquired	$	736,975
Deposits	$	695,919
Other liabilities	409
Total liabilities assumed	696,328
Net assets acquired	$	40,647

Business Acquisition, Pro Forma Information [Table Text Block]

Cost savings estimates are not included in the pro forma combined results, nor are certain credit impaired loans and associated losses excluded from the purchase and assumption transaction.



	First Independent (stand alone)				Pro Forma Combined				Pro Forma Combined
	Three Months Ended		Six Months Ended		Three Months Ended				Six Months Ended
	June 30, 2012				June 30, 2012		June 30, 2011		June 30, 2012		June 30, 2011
	(in thousands, except per share data)
Net interest income	$	7,859	$	11,100	$	78,910	$	82,633	$	159,744	$	164,716
Noninterest income	1,678		2,181		44,741		36,628		77,333		69,031
Net income	3,901		6,008		320,886		10,368		338,391		20,406
Earnings per share - basic	0.06		0.10		5.17		0.17		5.45		0.33
Earnings per share - diluted	$	0.06	$	0.10	$	5.13	$	0.17	$	5.40	$	0.33

Impaired Financing Receivables [Table Text Block]

For purchased impaired loans (ASC 310-30 loans), details as of the acquisition date were as follows:



	February 29, 2012
	(in thousands)
Contractual cash flows	$	24,408
Expected prepayments and credit losses	7,220
Expected cash flows	17,188
Present value of expected cash flows	15,265
Accretable yield	$	1,923

ling considers its nonperforming loans to be impaired loans. The following table summarizes impaired loans by class as of June 30, 2012 and December 31, 2011:



					Book Balance
	Unpaid Principal Balance		Charge-Offs		Without Specific Reserve		With Specific Reserve		Specific Reserve
	(in thousands)
June 30, 2012
Residential real estate	$	50,066	$	6,507	$	43,194	$	365	$	365
CRE:
Investor CRE	87,488		13,114		65,635		8,739		2,463
Multifamily	27,746		1,238		6,844		19,664		1,029
Construction	53,994		21,152		31,115		1,727		154
Total CRE	169,228		35,504		103,594		30,130		3,646
Commercial:
Owner Occupied CRE	83,401		10,296		49,504		23,601		5,816
C&I	23,167		12,804		10,038		325		326
Total commercial	106,568		23,100		59,542		23,926		6,142
Consumer	5,007		418		4,140		449		43
Total	$	330,869	$	65,529	$	210,470	$	54,870	$	10,196
					Book Balance
	Unpaid Principal Balance		Charge-Offs		Without Specific Reserve		With Specific Reserve		Specific Reserve
	(in thousands)
December 31, 2011
Residential real estate	$	52,023	$	9,120	$	38,519	$	4,384	$	872
CRE:
Investor CRE	70,517		18,324		31,503		20,690		4,892
Multifamily	6,185		318		4,496		1,371		716
Construction	133,588		38,370		43,281		51,937		5,562
Total CRE	210,290		57,012		79,280		73,998		11,170
Commercial:
Owner Occupied CRE	89,604		16,333		48,194		25,077		4,043
C&I	25,497		13,618		11,207		672		163
Total commercial	115,101		29,951		59,401		25,749		4,206
Consumer	6,613		784		5,246		583		57
Total	$	384,027	$	96,867	$	182,446	$	104,714	$	16,305

For impaired loans by class, the following table presents the average book balance and interest income recognized during the three and six month periods ended June 30, 2012 and 2011, respectively:



	Three Months Ended June 30,
	2012				2011
	Average Book Balance		Interest Income Recognized		Average Book Balance		Interest Income Recognized
	(in thousands)
Residential real estate	$	46,485	$	174	$	58,572	$	320
Investor CRE	60,793		421		60,416		908
Multifamily	16,839		255		15,075		95
Construction	58,289		21		206,881		14
Owner Occupied CRE	73,688		628		75,947		597
C&I	11,530		6		13,649		112
Consumer	4,897		0		6,048		0
Total	$	272,521	$	1,505	$	436,588	$	2,046
	Six Months Ended June 30,
	2012				2011
	Average Book Balance		Interest Income Recognized		Average Book Balance		Interest Income Recognized
	(in thousands)
Residential real estate	$	43,231	$	418	$	72,911	$	320
Investor CRE	63,283		1,003		81,247		1,228
Multifamily	16,188		350		16,328		623
Construction	64,030		873		255,732		44
Owner Occupied CRE	73,188		1,406		79,528		1,189
C&I	11,122		35		12,860		242
Consumer	5,209		0		6,769		0
Total	$	276,251	$	4,085	$	525,375	$	3,646

Other than Temporary Impairment, Credit Losses Recognized in Earnings [Table Text Block]

The following table presents a roll forward of activity for the accretable yield for the purchased impaired loans:



	Three Months Ended			Six Months Ended
	June 30, 2012
				(in thousands)
Beginning balance	$	1,909		$	0
Additions	0			1,923
Accretion to interest income	(308		)	(322		)
Reclassifications	730			730
Ending balance	$	2,331		$	2,331

Sterling intends to sell the security prior to its scheduled maturity or recovery of its amortized cost basis, and accordingly recognized an OTTI charge on the security during the second quarter of 2012. The following table presents a rollforward of OTTI for the periods presented:



	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
	(in thousands)
OTTI, beginning balance	$	0	$	0	$	0	$	0
Additions	6,819		0		6,819		0
Ending Balance	$	6,819	$	0	$	6,819	$	0

Five-Year Maturity, Projected Accretion Of The Discount, Recognized In Interest Income [Table Text Block]

As of June 30, 2012, the following table presents the related five-year projected accretion of the discount which will be recognized as an increase to interest income:



	Amount
Remainder of 2012	$	4,022
Years ended December 31,
2013	4,210
2014	2,796
2015	1,724
2016	1,031
2017	679

- Definition

Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate.

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- Definition

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

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