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Loans Receivable And Allowance For Credit Losses (Tables)
 12 Months Ended
Dec. 31, 2012
Loans and Leases Receivable, Allowance [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
The following table presents the composition of Sterling’s loan portfolio as of the balance sheet dates:
 
 
December 31,
2012
 
December 31,
2011
 
(in thousands)
Residential real estate
$
806,722

 
$
688,020

Commercial real estate ("CRE"):
 
 
 
Investor CRE
1,219,847

 
1,275,667

Multifamily
1,580,289

 
1,001,479

Construction
74,665

 
174,608

Total CRE
2,874,801

 
2,451,754

Commercial:
 
 
 
Owner occupied CRE
1,276,591

 
1,272,461

Commercial & Industrial ("C&I")
540,499

 
431,693

Total commercial
1,817,090

 
1,704,154

Consumer
754,621

 
674,961

Gross loans receivable
6,253,234

 
5,518,889

Deferred loan costs (fees), net
2,860

 
(252
)
Allowance for loan losses
(154,345
)
 
(177,458
)
Net loans receivable
$
6,101,749

 
$
5,341,179
Allowance for Credit Losses on Financing Receivables
The following table sets forth details by segment for Sterling’s loan portfolio and related allowance as of the balance sheet dates:
 
 
Residential Real Estate
 
Commercial Real Estate
 
Commercial
 
Consumer
 
Unallocated
 
Total
 
(in thousands)
December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
Loans receivable, gross:
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
9,134

 
$
68,317

 
$
48,312

 
$
494

 
$
0

 
$
126,257

Collectively evaluated for impairment
797,588

 
2,806,484

 
1,768,778

 
754,127

 
0

 
6,126,977

Total loans receivable, gross
$
806,722

 
$
2,874,801

 
$
1,817,090

 
$
754,621

 
$
0

 
$
6,253,234

Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
365

 
$
3,182

 
$
4,916

 
$
0

 
$
0

 
$
8,463

Collectively evaluated for impairment
19,482

 
44,912

 
36,958

 
25,602

 
18,928

 
145,882

Total allowance for loan losses
$
19,847

 
$
48,094

 
$
41,874

 
$
25,602

 
$
18,928

 
$
154,345

December 31, 2011
 
 
 
 
 
 
 
 
 
 
 
Loans receivable, gross:
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
18,301

 
$
149,578

 
$
74,041

 
$
1,192

 
$
0

 
$
243,112

Collectively evaluated for impairment
669,719

 
2,302,176

 
1,630,113

 
673,769

 
0

 
5,275,777

Total loans receivable, gross
$
688,020

 
$
2,451,754

 
$
1,704,154

 
$
674,961

 
$
0

 
$
5,518,889

Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
872

 
$
11,170

 
$
4,206

 
$
57

 
$
0

 
$
16,305

Collectively evaluated for impairment
14,325

 
80,552

 
33,840

 
13,370

 
19,066

 
161,153

Total allowance for loan losses
$
15,197

 
$
91,722

 
$
38,046

 
$
13,427

 
$
19,066

 
$
177,458
Allowance for Credit Losses Rollforward
The following tables present a roll-forward by segment of the allowance for credit losses for the periods presented:
 
Residential Real Estate
 
Commercial Real Estate
 
Commercial
 
Consumer
 
Unallocated
 
Total
 
(in thousands)
2012
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance, January 1
$
15,197

 
$
91,722

 
$
38,046

 
$
13,427

 
$
19,066

 
$
177,458

Provisions
8,778

 
(33,184
)
 
12,189

 
19,855

 
(138
)
 
7,500

Charge-offs
(5,203
)
 
(27,385
)
 
(17,005
)
 
(9,144
)
 
0

 
(58,737
)
Recoveries
1,075

 
16,941

 
8,644

 
1,464

 
0

 
28,124

Ending balance, December 31
19,847

 
48,094

 
41,874

 
25,602

 
18,928

 
154,345

 
 
 
 
 
 
 
 
 
 
 
 
Reserve for unfunded credit commitments:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance, January 1
3,828

 
2,321

 
1,796

 
1,787

 
297

 
10,029

Provisions
2,929

 
(1,916
)
 
1,010

 
331

 
146

 
2,500

Charge-offs
(4,527
)
 
0

 
0

 
0

 
0

 
(4,527
)
Recoveries
0

 
0

 
0

 
0

 
0

 
0

Ending balance, December 31
2,230

 
405

 
2,806

 
2,118

 
443

 
8,002

Total credit allowance
$
22,077

 
$
48,499

 
$
44,680

 
$
27,720

 
$
19,371

 
$
162,347

 
 
 
 
 
 
 
 
 
 
 
 
2011
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance, January 1
$
17,307

 
$
124,907

 
$
56,951

 
$
14,645

 
$
33,246

 
$
247,056

Provisions
15,024

 
19,129

 
2,708

 
5,819

 
(14,180
)
 
28,500

Charge-offs
(18,553
)
 
(73,379
)
 
(28,369
)
 
(8,868
)
 
0

 
(129,169
)
Recoveries
1,419

 
21,065

 
6,756

 
1,831

 
0

 
31,071

Ending balance, December 31
15,197

 
91,722

 
38,046

 
13,427

 
19,066

 
177,458

 
 
 
 
 
 
 
 
 
 
 
 
Reserve for unfunded credit commitments:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance, January 1
3,189

 
4,157

 
1,515

 
817

 
1,029

 
10,707

Provisions
2,817

 
(1,836
)
 
281

 
970

 
(732
)
 
1,500

Charge-offs
(2,178
)
 
0

 
0

 
0

 
0

 
(2,178
)
Recoveries
0

 
0

 
0

 
0

 
0

 
0

Ending balance, December 31
3,828

 
2,321

 
1,796

 
1,787

 
297

 
10,029

Total credit allowance
$
19,025

 
$
94,043

 
$
39,842

 
$
15,214

 
$
19,363

 
$
187,487

 
 
 
 
 
 
 
 
 
 
 
 
 
Residential Real Estate
 
Commercial Real Estate
 
Commercial
 
Consumer
 
Unallocated
 
Total
2010
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance, January 1
$
28,319

 
$
236,501

 
$
59,136

 
$
19,198

 
$
289

 
$
343,443

Provisions
24,204

 
151,323

 
33,764

 
8,343

 
32,957

 
250,591

Charge-offs
(37,347
)
 
(283,578
)
 
(41,165
)
 
(14,765
)
 
0

 
(376,855
)
Recoveries
2,131

 
20,661

 
5,216

 
1,869

 
0

 
29,877

Ending balance, December 31
17,307

 
124,907

 
56,951

 
14,645

 
33,246

 
247,056

 
 
 
 
 
 
 
 
 
 
 
 
Reserve for unfunded credit commitments:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance, January 1
798

 
9,228

 
1,952

 
1,107

 
(1,118
)
 
11,967

Provisions
3,291

 
(5,071
)
 
(437
)
 
(290
)
 
2,147

 
(360
)
Charge-offs
(900
)
 
0

 
0

 
0

 
0

 
(900
)
Recoveries
0

 
0

 
0

 
0

 
0

 
0

Ending balance, December 31
3,189

 
4,157

 
1,515

 
817

 
1,029

 
10,707

Total credit allowance
$
20,496

 
$
129,064

 
$
58,466

 
$
15,462

 
$
34,275

 
$
257,763
Financing Receivable Credit Quality Indicators
The following table presents credit quality indicators for Sterling’s loan portfolio grouped according to internally assigned risk ratings and performance status:
 
 
 
 
Commercial Real Estate
 
Commercial
 
 
 
 
 
 
 
Residential Real Estate
 
Investor CRE
 
Multifamily
 
Construction
 
Owner Occupied CRE
 
Commercial & Industrial
 
Consumer
 
Total
 
% of
Total
 
(in thousands)
December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pass
$
714,346

 
$
599,660

 
$
1,486,824

 
$
10,946

 
$
678,916

 
$
349,674

 
$
723,698

 
$
4,564,064

 
73
%
Marginal
53,722

 
472,801

 
74,379

 
42,518

 
454,348

 
146,554

 
17,255

 
1,261,577

 
20
%
Special mention
11,739

 
77,342

 
10,122

 
3,401

 
85,228

 
38,874

 
4,864

 
231,570

 
4
%
Substandard
26,550

 
67,347

 
8,745

 
17,534

 
53,183

 
5,397

 
8,804

 
187,560

 
3
%
Doubtful/Loss
365

 
2,697

 
219

 
266

 
4,916

 
0

 
0

 
8,463

 
0
%
Total
$
806,722

 
$
1,219,847

 
$
1,580,289

 
$
74,665

 
$
1,276,591

 
$
540,499

 
$
754,621

 
$
6,253,234

 
100
%
Restructured
$
22,968

 
$
4,334

 
$
4,094

 
$
8,551

 
$
23,152

 
$
810

 
$
307

 
$
64,216

 
1
%
Nonaccrual
20,457

 
46,399

 
4,055

 
8,144

 
31,696

 
3,424

 
6,938

 
121,113

 
2
%
Nonperforming
43,425

 
50,733

 
8,149

 
16,695

 
54,848

 
4,234

 
7,245

 
185,329

 
3
%
Performing
763,297

 
1,169,114

 
1,572,140

 
57,970

 
1,221,743

 
536,265

 
747,376

 
6,067,905

 
97
%
Total
$
806,722

 
$
1,219,847

 
$
1,580,289

 
$
74,665

 
$
1,276,591

 
$
540,499

 
$
754,621

 
$
6,253,234

 
100
%
December 31, 2011
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pass
$
643,071

 
$
1,116,991

 
$
975,583

 
$
51,284

 
$
1,123,796

 
$
385,643

 
$
663,829

 
$
4,960,197

 
90
%
Special mention
14,031

 
83,372

 
9,901

 
24,578

 
54,009

 
25,334

 
4,166

 
215,391

 
4
%
Substandard
30,046

 
70,412

 
15,279

 
93,185

 
90,613

 
19,355

 
6,909

 
325,799

 
6
%
Doubtful/Loss
872

 
4,892

 
716

 
5,561

 
4,043

 
1,361

 
57

 
17,502

 
0
%
Total
$
688,020

 
$
1,275,667

 
$
1,001,479

 
$
174,608

 
$
1,272,461

 
$
431,693

 
$
674,961

 
$
5,518,889

 
100
%
Restructured
$
17,638

 
$
4,366

 
$
0

 
$
38,833

 
$
13,519

 
$
2,583

 
$
0

 
$
76,939

 
1
%
Nonaccrual
25,265

 
47,827

 
5,867

 
56,385

 
59,752

 
9,296

 
5,829

 
210,221

 
4
%
Nonperforming
42,903

 
52,193

 
5,867

 
95,218

 
73,271

 
11,879

 
5,829

 
287,160

 
5
%
Performing
645,117

 
1,223,474

 
995,612

 
79,390

 
1,199,190

 
419,814

 
669,132

 
5,231,729

 
95
%
Total
$
688,020

 
$
1,275,667

 
$
1,001,479

 
$
174,608

 
$
1,272,461

 
$
431,693

 
$
674,961

 
$
5,518,889

 
100
%
Past Due Financing Receivables
Aging by class for Sterling’s loan portfolio as of December 31, 2012 and December 31, 2011 was as follows:
 
 
 
 
Commercial Real Estate
 
Commercial
 
 
 
 
 
 
 
Residential Real Estate
 
Investor CRE
 
Multifamily
 
Construction
 
Owner Occupied CRE
 
Commercial & Industrial
 
Consumer
 
Total
 
% of
Total
 
(in thousands)
 
 
December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
30 - 59 days past due
$
5,800

 
$
10,565

 
$
707

 
$
611

 
$
10,543

 
$
2,690

 
$
4,028

 
$
34,944

 
1
%
60 - 89 days past due
1,576

 
1,042

 
479

 
0

 
3,300

 
376

 
1,796

 
8,569

 
0
%
> 90 days past due
20,507

 
34,196

 
3,436

 
8,243

 
20,883

 
1,954

 
4,717

 
93,936

 
2
%
Total past due
27,883

 
45,803

 
4,622

 
8,854

 
34,726

 
5,020

 
10,541

 
137,449

 
3
%
Current
778,839

 
1,174,044

 
1,575,667

 
65,811

 
1,241,865

 
535,479

 
744,080

 
6,115,785

 
97
%
Total Loans
$
806,722

 
$
1,219,847

 
$
1,580,289

 
$
74,665

 
$
1,276,591

 
$
540,499

 
$
754,621

 
$
6,253,234

 
100
%
> 90 days and accruing
$
0

 
$
0

 
$
0

 
$
0

 
$
0

 
$
0

 
$
0

 
$
0

 
0
%
December 31, 2011
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
30 - 59 days past due
$
5,718

 
$
3,354

 
$
1,523

 
$
11,830

 
$
19,967

 
$
1,741

 
$
4,167

 
$
48,300

 
1
%
60 - 89 days past due
4,585

 
3,954

 
193

 
879

 
4,233

 
520

 
2,258

 
16,622

 
0
%
> 90 days past due
20,207

 
33,759

 
3,178

 
68,024

 
40,987

 
7,871

 
5,054

 
179,080

 
3
%
Total past due
30,510

 
41,067

 
4,894

 
80,733

 
65,187

 
10,132

 
11,479

 
244,002

 
4
%
Current
657,510

 
1,234,600

 
996,585

 
93,875

 
1,207,274

 
421,561

 
663,482

 
5,274,887

 
96
%
Total Loans
$
688,020

 
$
1,275,667

 
$
1,001,479

 
$
174,608

 
$
1,272,461

 
$
431,693

 
$
674,961

 
$
5,518,889

 
100
%
> 90 days and accruing
$
0

 
$
0

 
$
0

 
$
0

 
$
0

 
$
0

 
$
0

 
$
0

 
0
%
Impaired Financing Receivables
For purchased impaired 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

The following table summarizes impaired loans by class as of December 31, 2012 and December 31, 2011:
 
 
 
 
 
Book Balance
 
 
 
Unpaid Principal Balance
 
Charge-Offs
 
Without Specific Reserve
 
With Specific Reserve
 
Specific Reserve
 
(in thousands)
December 31, 2012
 
 
 
 
 
 
 
 
 
Residential real estate
$
49,816

 
$
6,391

 
$
43,060

 
$
365

 
$
365

CRE:
 
 
 
 
 
 
 
 
 
Investor CRE
59,099

 
8,366

 
33,540

 
17,193

 
2,697

Multifamily
9,554

 
1,405

 
6,873

 
1,276

 
219

Construction
31,040

 
14,345

 
15,421

 
1,274

 
266

Total CRE
99,693

 
24,116

 
55,834

 
19,743

 
3,182

Commercial:
 
 
 
 
 
 
 
 
 
Owner Occupied CRE
61,300

 
6,452

 
42,075

 
12,773

 
4,916

C&I
16,959

 
12,725

 
4,234

 
0

 
0

Total commercial
78,259

 
19,177

 
46,309

 
12,773

 
4,916

Consumer
7,671

 
426

 
7,245

 
0

 
0

Total
$
235,439

 
$
50,110

 
$
152,448

 
$
32,881

 
$
8,463

 
 
 
 
 
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

The following table presents the average book balance and interest income recognized for impaired loans by class for the periods presented:
 
Years Ended December 31,
 
2012
 
2011
 
Average Book Balance
 
Interest Income Recognized
 
Average Book Balance
 
Interest Income Recognized
 
(in thousands)
Residential real estate
$
43,164

 
$
819

 
$
67,157

 
$
992

Investor CRE
51,463

 
1,595

 
79,139

 
2,245

Multifamily
7,007

 
441

 
14,704

 
804

Construction
55,956

 
1,708

 
215,436

 
1,401

Owner Occupied CRE
64,060

 
2,553

 
75,553

 
2,757

C&I
8,057

 
105

 
12,009

 
460

Consumer
6,537

 
8

 
6,901

 
0

Total
$
236,244

 
$
7,229

 
$
470,899

 
$
8,659
Troubled Debt Restructurings on Financing Receivables
The following tables present loans that were modified and recorded as TDRs during the following periods:
 
Years Ended December 31,
 
2012
 
2011
 
Number of
Contracts
 
Pre-Modification
Recorded
Investment
 
Post-Modification
Recorded
Investment
 
Number of
Contracts
 
Pre-Modification
Recorded
Investment
 
Post-Modification
Recorded
Investment
 
(in thousands, except number of contracts)
Residential real estate
29

 
$
5,887

 
$
5,835

 
1

 
$
1,372

 
$
1,372

Investor CRE
1

 
1,302

 
1,302

 
8

 
3,271

 
3,282

Multifamily
3

 
2,955

 
2,945

 
0

 
0

 
0

Construction
4

 
10,062

 
9,194

 
3

 
23,701

 
24,348

Owner Occupied CRE
11

 
16,186

 
15,921

 
6

 
14,411

 
14,502

C&I
9

 
3,482

 
2,206

 
6

 
4,384

 
3,944

Consumer
3

 
468

 
472

 
0

 
0

 
0

Total (1)
60

 
$
40,342

 
$
37,875

 
24

 
$
47,139

 
$
47,448


(1) Amounts exclude specific loan loss reserves.
Schedule of Post-Modification Investments in Troubled Debt Restructings
The following tables show the post-modification recorded investment by class for TDRs restructured during the periods presented by the primary type of concession granted:
 
Principal
Deferral
 
Rate
Reduction
 
Extension of Terms
 
Forgiveness of Principal and/or Interest
 
Total
 
(in thousands)
Year Ended December 31, 2012
 
 
 
 
 
 
 
 
 
Residential Real Estate
$
407

 
$
5,428

 
$
0

 
$
0

 
$
5,835

Investor CRE
0

 
1,302

 
0

 
0

 
1,302

Multifamily
571

 
2,374

 
0

 
0

 
2,945

Construction
0

 
3,261

 
5,933

 
0

 
9,194

Owner CRE
6,219

 
9,393

 
0

 
309

 
15,921

C&I
0

 
1,317

 
183

 
706

 
2,206

Consumer
0

 
173

 
299

 
0

 
472

 
$
7,197

 
$
23,248

 
$
6,415

 
$
1,015

 
$
37,875

 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2011
 
 
 
 
 
 
 
 
 
Residential Real Estate
$
0

 
$
1,372

 
$
0

 
$
0

 
$
1,372

Investor CRE
0

 
1,856

 
1,426

 
0

 
3,282

Multifamily
0

 
0

 
0

 
0

 
0

Construction
2,816

 
2,302

 
0

 
19,230

 
24,348

Owner CRE
10,159

 
0

 
0

 
4,343

 
14,502

C&I
576

 
3,368

 
0

 
0

 
3,944

Consumer
0

 
0

 
0

 
0

 
0

 
$
13,551

 
$
8,898

 
$
1,426

 
$
23,573

 
$
47,448