10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________________________ 

FORM 10-Q

______________________________ 

x QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2013

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-35385

______________________________ 

PROVIDENT NEW YORK BANCORP

(Exact Name of Registrant as Specified in its Charter)

______________________________ 

Delaware	80-0091851
(State or Other Jurisdiction of	(IRS Employer ID No.)
Incorporation or Organization)
400 Rella Boulevard, Montebello, New York	10901
(Address of Principal Executive Office)	(Zip Code)

(845) 369-8040

(Registrant’s Telephone Number including area code)

______________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer	¨	Accelerated Filer	x
Non-Accelerated Filer	¨	Smaller Reporting Company	¨

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes  ¨    No  x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Classes of Common Stock	Shares Outstanding as of May 7, 2013
$0.01 per share	44,353,276

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

QUARTERLY PERIOD ENDED MARCH 31, 2013

	PART I. FINANCIAL INFORMATION
Item 1. 1.	Financial Statements
	Consolidated Statements of Financial Condition (unaudited) at March 31, 2013 and September 30, 2012	3
	Consolidated Statements of Income (unaudited) for the three and six months ended March 31, 2013 and 2012	4
	Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended March 31, 2013 and 2012	5
	Consolidated Statements of Changes in Stockholders’ Equity (unaudited) for the six months ended March 31, 2013	6
	Consolidated Statements of Cash Flows (unaudited) for the six months ended December 31, 2013 and 2012	7
	Notes to Consolidated Financial Statements (unaudited)	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	42
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	57
Item 4.	Controls and Procedures	58
	PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	59
Item 1A.	Risk Factors	59
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	60
Item 3.	Defaults Upon Senior Securities	61
Item 4.	Mine Safety Disclosures	61
Item 5.	Other Information	61
Item 6.	Exhibits	62
	Signatures	63

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited)

(Dollars in thousands, except per share data)

	March 31, 2013			September 30, 2012
ASSETS
Cash and due from banks	$	73,396		$	437,982
Securities:
Available for sale	945,678			1,010,872
Held to maturity, at amortized cost (fair value of $186,078 and $146,324 at March 31, 2013 and September 30, 2012, respectively)	183,535			142,376
Total securities	1,129,213			1,153,248
Assets held for sale	—			4,550
Loans held for sale	1,040			7,505
Gross loans	2,204,555			2,119,472
Allowance for loan losses	(27,544		)	(28,282		)
Total loans, net	2,177,011			2,091,190
Federal Home Loan Bank (“FHLB”) stock, at cost	20,251			19,249
Accrued interest receivable	11,819			10,513
Premises and equipment, net	37,617			38,483
Goodwill	163,117			163,247
Core deposit and other intangible assets	6,538			7,164
Bank owned life insurance (“BOLI”)	59,916			59,017
Foreclosed properties	5,486			6,403
Other assets	25,036			24,431
Total assets	$	3,710,440		$	4,022,982
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Deposits	$	2,799,658		$	3,111,151
FHLB and other borrowings	367,976			345,176
Mortgage escrow funds	17,582			11,919
Other liabilities	30,513			63,614
Total liabilities	3,215,729			3,531,860
Commitment and contingent liabilities
STOCKHOLDERS’ EQUITY
Preferred stock (par value $0.01 per share; 10,000,000 shares authorized; none issued or outstanding)	—			—
Common stock (par value $0.01 per share; 75,000,000 shares authorized; 52,188,056 issued; 44,353,276 and 44,173,470 shares outstanding at March 31, 2013 and September 30, 2012, respectively)	522			522
Additional paid-in capital	403,005			403,541
Unallocated common stock held by employee stock ownership plan (“ESOP”)	(5,389		)	(5,638		)
Treasury stock, at cost (7,834,780 and 8,014,586 shares at March 31, 2013 and September 30, 2012, respectively)	(88,517		)	(90,173		)
Retained earnings	184,171			175,971
Accumulated other comprehensive income, net of taxes	919			6,899
Total stockholders’ equity	494,711			491,122
Total liabilities and stockholders’ equity	$	3,710,440		$	4,022,982

See accompanying notes to unaudited consolidated financial statements

3

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

(Dollars in thousands, except per share data)

	For the three months ended March 31,					For the six months ended March 31,
	2013			2012		2013			2012
Interest and dividend income:
Loans	$	26,378		$	22,153	$	53,449		$	44,302
Taxable securities	4,288			4,415		8,572			8,405
Non-taxable securities	1,490			1,599		2,947			3,373
Other earning assets	264			244		597			499
Total interest and dividend income	32,420			28,411		65,565			56,579
Interest expense:
Deposits	1,624			1,217		3,721			2,530
Borrowings	2,977			3,289		6,102			6,906
Total interest expense	4,601			4,506		9,823			9,436
Net interest income	27,819			23,905		55,742			47,143
Provision for loan losses	2,600			2,850		5,550			4,800
Net interest income after provision for loan losses	25,219			21,055		50,192			42,343
Non-interest income:
Deposit fees and service charges	2,736			2,706		5,514			5,496
Net gain on sale of securities	2,229			2,899		3,645			4,888
Other than temporary impairment on securities	(7		)	—		(73		)	(536		)
Loss recognized in other comprehensive income	—			—		41			498
Net impairment loss in earnings	(7		)	—		(32		)	(38		)
Bank owned life insurance	491			502		1,000			1,020
Gain on sale of loans	507			450		1,253			890
Investment management fees	422			800		1,127			1,565
Other	474			614		2,004			1,326
Total non-interest income	6,852			7,971		14,511			15,147
Non-interest expense:
Compensation and employee benefits	11,805			11,395		24,104			22,320
Stock-based compensation	679			284		1,179			559
Merger-related expense	542			299		542			546
Occupancy and office operations	3,954			3,409		7,764			7,110
Advertising and promotion	535			427		779			1,040
Professional fees	912			1,056		2,127			1,983
Data and check processing	823			710		1,472			1,382
Foreclosed property expense	915			412		1,200			617
Other	3,174			3,298		6,718			6,454
Total non-interest expense	23,339			21,290		45,885			42,011
Income before income tax expense	8,732			7,736		18,818			15,479
Income tax expense	2,203			2,035		5,269			4,061
Net income	$	6,529		$	5,701	$	13,549		$	11,418
Weighted average common shares basic	43,743,640			37,280,651		43,704,163			37,266,480
Weighted average common shares diluted	43,848,486			37,316,778		43,790,915			37,275,633
Per common share basic	$	0.15		$	0.15	$	0.31		$	0.31
Per common share diluted	$	0.15		$	0.15	$	0.31		$	0.31

See accompanying notes to unaudited consolidated financial statements

4

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (unaudited)

(Dollars in thousands, except per share data)

	For the three months ended March 31,						For the six months ended March 31,
	2013			2012			2013			2012
Net income	$	6,529		$	5,701		$	13,549		$	11,418
Other comprehensive (loss) income:
Net unrealized holding (losses) gains on securities available for sale net of related tax (benefit) expense of ($1,885), ($220) and ($3,039) $2,090	(2,753		)	(320		)	(4,446		)	3,056
Less:
Reclassification adjustment for net realized gains included in net income, net of related income tax expense of $905, $1,177 and $1,480, $1,985	1,324			1,722			2,165			2,903
Reclassification adjustment for other than temporary impaired losses included in net income, net of related income tax benefit of $3, $0 and $13, $15	(4		)	—			(19		)	(23		)
	(4,073		)	(2,042		)	(6,592		)	176
Change in funded status of defined benefit plans, net of related income tax expense of $224, $231 and $419, $460	327			335			612			673
Other comprehensive (loss) income	(3,746		)	(1,707		)	(5,980		)	849
Total comprehensive income	$	2,783		$	3,994		$	7,569		$	12,267

See accompanying notes to unaudited consolidated financial statements

5

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (unaudited)

(Dollars in thousands, except per share data)

	Number of shares	Common stock		Additional paid-in capital			Unallocated ESOP shares			Treasury stock			Retained earnings			Accumulated other comprehensive income			Total stockholders’ equity
Balance at September 30, 2012	44,173,470	$	522	$	403,541		$	(5,638	)	$	(90,173	)	$	175,971		$	6,899		$	491,122
Net income	—												13,549			—			13,549
Other comprehensive loss	—															(5,980		)	(5,980		)
Deferred compensation transactions	—	—		13			—			—			—			—			13
Stock option transactions, net	6,250	—		347			—			72			(29		)	—			390
ESOP shares allocated or committed to be released for allocation (24,966 shares)	—	—		122			249			—			—			—			371
Recognition and Retention Plan ( “RRP”) Awards, net	173,556	—		(1,018		)	—			1,584			—			—			566
Cash dividends paid ($0.12 per common share)	—	—		—			—			—			(5,320		)	—			(5,320		)
Balance at March 31, 2013	44,353,276	$	522	$	403,005		$	(5,389	)	$	(88,517	)	$	184,171		$	919		$	494,711

See accompanying notes to unaudited consolidated financial statements

6

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

(Dollars in thousands, except per share data)

	For the six months ended March 31,
	2013			2012
Cash flows from operating activities:
Net income	$	13,549		$	11,418
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	5,550			4,800
Loss on sales of real estate owned	34			178
Depreciation of premises and equipment	2,342			2,505
Amortization of intangibles	626			628
Net gain on loans held for sale	(1,253		)	(890		)
Other than temporary impairment loss recorded in earnings	32			38
Net gain on sale of securities	(3,645		)	(4,888		)
Fair value loss on interest rate cap	1			43
Net gain on sale of premises and equipment	(5		)	—
Net amortization of premium on securities	1,768			1,466
(Amortization) accretion on borrowings	(192		)	1
Accretion of early extinguishment fees on borrowings	733			727
ESOP and RRP expense	832			308
ESOP forfeitures	—			(1		)
Stock option compensation expense	347			252
Originations of loans held for sale	(48,642		)	(35,935		)
Proceeds from sales of loans held for sale	56,360			39,265
Increase in cash surrender value of bank owned life insurance	(899		)	(1,020		)
Net changes in accrued interest receivable and payable	(1,579		)	(329		)
Other adjustments (principally net changes in other assets and other liabilities)	(22,855		)	2,506
Net cash provided by operating activities	3,104			21,072
Cash flows from investing activities:
Purchases of available for sale securities	(209,010		)	(261,775		)
Purchases of held to maturity securities	(81,838		)	(77,080		)
Proceeds from maturities, calls and other principal payments on securities:
Available for sale	128,589			52,149
Held to maturity	39,003			12,027
Proceeds from sales of securities available for sale	136,804			150,657
Proceeds from sales of securities held to maturity	1,234			—
Loan originations	(495,649		)	(362,282		)
Loan principal payments	402,295			259,975
Proceeds from sales of other real estate owned	2,085			1,449
(Purchase) sale of FHLB stock, net	(1,002		)	455
Purchases of premises and equipment	(1,471		)	(781		)
Net cash used in investing activities	(78,960		)	(225,206		)
Cash flows from financing activities:
Net (decrease) increase in transaction, savings and money market deposits	(271,387		)	101,863
Net (decrease) in time deposits	(40,106		)	(29,570		)
Net increase (decrease) in short-term borrowings	32,385			(10,000		)

See accompanying notes to unaudited consolidated financial statements

7

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

(Dollars in thousands, except per share data)

	For the six months ended March 31,
	2013			2012
Gross repayments of long-term borrowings	(10,126		)	(5,122		)
Restructured debt	—			5,000
Payment of penalties on restructured borrowings	—			(278		)
Net decrease in senior note borrowings	—			(51,500		)
Net increase in mortgage escrow funds	5,663			5,509
Stock option transactions	148			153
Other stock-based compensation transactions	13			138
Cash dividends paid	(5,320		)	(4,552		)
Net cash (used in) provided by financing activities	(288,730		)	11,641
Net decrease in cash and cash equivalents	(364,586		)	(192,493		)
Cash and cash equivalents at beginning of period	437,982			281,512
Cash and cash equivalents at end of period	$	73,396		$	89,019
Supplemental information:
Interest payments	$	10,096		$	9,695
Income tax payments	4,603			1,575
Real estate acquired in settlement of loans	1,983			2,064
Unsettled securities transactions	4,823			49,955

See accompanying notes to unaudited consolidated financial statements

8

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in thousands, except per share data)

1. Basis of Presentation

The consolidated financial statements include the accounts of Provident New York Bancorp (“Provident” or the “Company”) and its consolidated subsidiaries. Provident Bank (the “Bank”) is the Company’s principal subsidiary and accounts for substantially all of the Company’s assets and results from operations. The Company’s other subsidiaries include:

• PB Madison Holding, Inc., a holding company for the Company’s 50% joint venture in PB Madison Title Agency, L.P., a title insurance agency, which provides title searches and title insurance for residential and commercial real estate;

• LandSave Development, LLC an inactive entity formally known as Hudson Valley Investment Advisors, LLC, the assets of which were sold in November 2012, with modest results from operations included in the Company’s financial statements for fiscal 2013; and

• Provident Risk Management, Inc. (a Vermont captive insurance company).

The Bank’s wholly-owned subsidiaries include:

• Provident Municipal Bank (“PMB”) which is a limited-purpose, New York State-chartered commercial bank formed to accept deposits from municipalities in the Bank’s market area;

• Provident REIT, Inc. and WSB Funding, Inc. which are real estate investment trusts that hold a portion of the Bank’s real estate mortgage loans;

• Provest Services Corp. I, which has an investment in a low-income housing partnership;

• Provest Services Corp. II, a New York licensed insurance agent, which has engaged a third-party provider to sell mutual funds, annuities and insurance to the Bank’s customers; and

• Subsidiaries that hold foreclosed properties acquired by the Bank.

Intercompany transactions and balances are eliminated in consolidation.

The consolidated financial statements have been prepared by management without audit, but, 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 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 six months ended March 31, 2013 are not necessarily indicative of results to be expected for other interim periods or the entire fiscal year ending September 30, 2013. The unaudited consolidated financial statements presented herein should be read in conjunction with the annual audited financial statements included in the Company’s Form 10-K for the fiscal year ended September 30, 2012.

The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. 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. A material estimate that is particularly susceptible to near-term change is the allowance for loan loss (see note 3), which reflects the application of a critical accounting policy.

9

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in thousands, except per share data)

2. Securities

A summary of the amortized cost and estimated fair value of securities, is presented below.

	March 31, 2013									September 30, 2012
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value		Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
Available for Sale
Residential mortgage-backed securities:
Fannie Mae	$	130,113	$	2,552	$	(566	)	$	132,099	$	155,601	$	5,806	$	—		$	161,407
Freddie Mac	53,518		2,214		—			55,732		81,509		3,751		—			85,260
Ginnie Mae	3,946		248		—			4,194		4,488		290		—			4,778
CMO/Other MBS	184,017		1,680		(496		)	185,201		191,867		1,787		(590		)	193,064
Total residential mortgage-backed securities	371,594		6,694		(1,062		)	377,226		433,465		11,634		(590		)	444,509
Other securities:
Federal agencies	368,576		1,302		(602		)	369,276		404,820		4,013		(10		)	408,823
Corporate bonds	25,890		11		(22		)	25,879		—		—		—			—
Obligations of states and political subdivisions	164,534		8,432		(487		)	172,479		146,136		10,349		(4		)	156,481
Equities	818		—		—			818		1,087		—		(28		)	1,059
Total other securities	559,818		9,745		(1,111		)	568,452		552,043		14,362		(42		)	566,363
Total securities available for sale	$	931,412	$	16,439	$	(2,173	)	$	945,678	$	985,508	$	25,996	$	(632	)	$	1,010,872

	March 31, 2013									September 30, 2012
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value		Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
Held to Maturity
Residential mortgage-backed securities:
Fannie Mae	$	23,307	$	790	$	—		$	24,097	$	28,637	$	1,212	$	—		$	29,849
Freddie Mac	32,212		785		—			32,997		42,706		1,347		—			44,053
CMO/Other MBS	29,113		217		(40		)	29,290		27,921		226		(28		)	28,119
Total residential mortgage-backed securities	84,632		1,792		(40		)	86,384		99,264		2,785		(28		)	102,021
Other securities:
Federal agencies	77,319		88		(129		)	77,278		22,236		106		—			22,342
Obligations of states and political subdivisions	20,084		881		(67		)	20,898		19,376		1,059		—			20,435
Other	1,500		18		—			1,518		1,500		26		—			1,526
Total other securities	98,903		987		(196		)	99,694		43,112		1,191		—			44,303
Total held to maturity	$	183,535	$	2,779	$	(236	)	$	186,078	$	142,376	$	3,976	$	(28	)	$	146,324

10

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in thousands, except per share data)

The amortized cost and estimated fair value of securities at March 31, 2013 are presented below by contractual maturity. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Residential mortgage-backed securities are shown separately since they are not due at a single maturity date. Equities are shown separately since there is no maturity date.

	March 31, 2013
	Available for sale				Held to maturity
	Amortized cost		Fair value		Amortized cost		Fair value
Remaining period to contractual maturity:
One year or less	$	2,000	$	2,013	$	3,854	$	3,866
One to five years	86,072		87,687		3,028		3,158
Five to ten years	427,202		432,688		84,462		84,825
Greater than ten years	43,726		45,246		7,559		7,845
Total other securities	559,000		567,634		98,903		99,694
Residential mortgage-backed securities	371,594		377,226		84,632		86,384
Equities	818		818		—		—
Total securities available for sale	$	931,412	$	945,678	$	183,535	$	186,078

Sales of securities were as follows:

	For the three months ended March 31,						For the six months ended March 31,
	2013			2012			2013			2012
Available for sale securities:
Proceeds from sales	$	94,839		$	67,078		$	136,804		$	150,657
Gross realized gains	2,202			2,912			3,618			4,901
Gross realized losses	(10		)	(13		)	(10		)	(13		)
Tax expense of securities gains	(552		)	(763		)	(1,010		)	(1,282		)
Held to maturity securities: (1)
Proceeds from sales	1,234			—			1,234			—
Gross realized gains	37			—			37			—
Tax expense of securities gains	(9		)	—			(10		)	—

⁽¹⁾ The Company sold eight held to maturity securities after the Company had already collected at least 85% of the principal outstanding at acquisition.

11

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in thousands, except per share data)

The following table summarizes those securities with unrealized losses, segregated by the length of time in a continuous unrealized loss position:

	Continuous unrealized loss position
	Less than 12 Months					12 months or longer				Total
Available for Sale	Fair value		Unrealized losses			Fair value		Unrealized losses		Fair value		Unrealized losses
March 31, 2013
Residential mortgage-backed securities:
Federal agencies	$	53,011	$	(566	)	$	—	$	—	$	53,011	$	(566	)
CMO/Other MBS	62,165		(496		)	—		—		62,165		(496		)
Total residential mortgage-backed securities	115,176		(1,062		)	—		—		115,176		(1,062		)
Federal agencies	145,726		(602		)	—		—		145,726		(602		)
Obligations of states and political subdivisions	23,664		(487		)	—		—		23,664		(487		)
Corporate bonds	13,100		(22		)	—		—		13,100		(22		)
Total	$	297,666	$	(2,173	)	$	—	$	—	$	297,666	$	(2,173	)

September 30, 2012
CMO/Other MBS	$	64,065	$	(590	)	$	—	$	—		$	64,065	$	(590	)
Federal agencies	4,993		(10		)	—		—			4,993		(10		)
Obligations of states and political subdivisions	716		(4		)	—		—			716		(4		)
Equities	—		—			809		(28		)	809		(28		)
Total	$	69,774	$	(604	)	$	809	$	(28	)	$	70,583	$	(632	)

	Continuous unrealized loss position
	Less than 12 Months					12 Months or longer				Total
Held to Maturity	Fair value		Unrealized losses			Fair value		Unrealized losses		Fair value		Unrealized losses
March 31, 2013
CMO/Other MBS	$	4,911	$	(40	)	$	—	$	—	$	4,911	$	(40	)
Federal agencies	37,211		(129		)	—		—		37,211		(129		)
Obligations of states and political subdivisions	5,294		(67		)	—		$	—	5,294		(67		)
Total	$	47,416	$	(236	)	$	—	$	—	$	47,416	$	(236	)

September 30, 2012
CMO/Other MBS	$	13,189	$	(28	)	$	—	$	—	$	13,189	$	(28	)
Total	$	13,189	$	(28	)	$	—	$	—	$	13,189	$	(28	)

12

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in thousands, except per share data)

Declines in the fair value of available for sale and held to maturity securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses to the extent the impairment is related to credit losses. The amount of the impairment related to other factors is recognized in other comprehensive income. In estimating other-than-temporary impairment losses (“OTTI”), management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, and (iii) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in cost.

Substantially all of the unrealized losses at March 31, 2013 relate to investment grade debt securities and are attributable to changes in market interest rates subsequent to purchase. At March 31, 2013, a total of 148 available for sale securities were in a continuous unrealized loss position for less than 12 months and no securities were in that position for 12 months or longer. For debt securities with fixed maturities, there are no securities past due or securities for which the Company currently believes it is not probable that it will collect all amounts due according to the contractual terms of the investment.

Within the CMO category of the available for sale portfolio there are four private label CMOs that had an amortized cost of $4,142 and a fair value (carrying value) of $4,216 as of March 31, 2013. Two of the four securities are considered to be other than temporarily impaired and are below investment grade. The impaired private label CMOs had an amortized cost of $3,764 and a fair value of $3,825 at March 31, 2013. There were no impairment charges on these securities for the three months ended March 31, 2013 and March 31, 2012, respectively. Impairment charges on these securities totaled $14 and $38 for the six months ended March 31, 2013 and March 31, 2012, respectively. At March 31, 2013 total cumulative impairment charges on these two private label CMOs totaled $136. The remaining two securities are rated at or above Ba1 and were performing as of March 31, 2013 and are expected to perform based on current information. In determining whether OTTI existed on these debt securities the Company evaluated the present value of cash flows expected to be collected based on collateral specific assumptions, including credit risk and liquidity risk, and determined that no losses were expected. The Company will continue to evaluate its investment securities portfolio for OTTI on at least a quarterly basis.

Excluding FHLB and New York Business Development Corporation stock, the Company owned one equity security with a balance of $818 and $809 at March 31, 2013 and September 30, 2012, respectively. During the three months ended March 31, 2013 and March 31, 2012, the Company incurred an OTTI charge on this equity security of $7 and $0, respectively. For the six months ended March 31, 2013 and 2012, the Company incurred an OTTI charge on this security of $18 and $0, respectively. At March 31, 2013, accumulated OTTI charge on this security was $222. The Company may not hold this equity security until the unrealized loss position of the security is recovered; therefore, the security was determined to be OTTI.

Securities pledged for borrowings at FHLB and other borrowings, and securities pledged for municipal deposits and other purposes were as follows:

	Securities pledged at
	March 31, 2013		September 30, 2012
Available for sale securities pledged for borrowings, at fair value	$	206,073	$	144,041
Available for sale securities pledged for municipal deposits, at fair value	473,443		703,261
Held to maturity securities pledged for borrowings, at amortized cost	51,286		46,538
Held to maturity securities pledged for municipal deposits, at amortized cost	92,958		138,855

13

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in thousands, except per share data)

3. Loans

The components of the loan portfolio, excluding loans held for sale, were as follows:

	March 31, 2013			September 30, 2012
Residential mortgage	$	365,485		$	350,022
Commercial:
Commercial real estate	1,149,463			1,072,504
Commercial & industrial	370,246			343,307
Acquisition, development & construction	118,115			144,061
Total commercial	1,637,824			1,559,872
Consumer:
Home equity lines of credit	161,646			165,200
Homeowner	31,683			34,999
Other consumer loans	7,917			9,379
Total consumer	201,246			209,578
Total loans	2,204,555			2,119,472
Allowance for loan losses	(27,544		)	(28,282		)
Total loans, net	$	2,177,011		$	2,091,190

Total loans include net deferred loan origination costs of $797 at March 31, 2013 and net deferred loan origination fees of ($310) at September 30, 2012.

A substantial portion of the Company’s loan portfolio is secured by residential and commercial real estate located in the Company’s primary market area, primarily in Rockland and Orange Counties of New York and contiguous areas such as Ulster, Sullivan, Putnam and Westchester Counties of New York, Bergen County, New Jersey and New York City. The ability of the Company’s borrowers to make principal and interest payments is dependent upon, among other things, the level of overall economic activity and the real estate market conditions prevailing within the Company’s concentrated lending area. Commercial real estate loans, and acquisition, development and construction loans in particular, are considered by management to be of somewhat greater credit risk than other loan types such as loans to fund the purchase of a primary residence due to the generally larger loan amounts and dependency on income production or sale of the real estate.

Included in the Company’s loan portfolio are loans acquired from Gotham Bank. These loans were recorded at fair value at acquisition. These loans carried a balance of $176,383 and $205,764 at March 31, 2013 and September 30, 2012, respectively. The discount associated with these loans which includes adjustments associated with market interest rates and anticipated credit losses, was $3,032 and $3,924 at March 31, 2013 and September 30, 2012, respectively. We evaluate Gotham Bank acquired loans for impairment collectively. None of the Gotham Bank acquired loans were identified as purchase credit impaired at acquisition.

14

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in thousands, except per share data)

The following tables set forth the amounts and status of the Company’s loans and troubled debt restructurings (“TDRs”) at March 31, 2013 and September 30, 2012:

	March 31, 2013
	Current		30-59 Days past due		60-89 Days past due		90+ Days past due		Non- accrual		Total
Loans by segment:
Residential mortgage	$	353,107	$	1,053	$	603	$	2,368	$	8,354	$	365,485
Commercial real estate	1,130,964		6,073		339		1,132		10,955		1,149,463
Commercial & industrial	365,071		2,164		1,867		341		803		370,246
Acquisition, development & construction	112,885		973		—		—		4,257		118,115
Consumer	197,744		430		6		416		2,650		201,246
Total	$	2,159,771	$	10,693	$	2,815	$	4,257	$	27,019	$	2,204,555
Total TDRs included above	$	21,318	$	543	$	—	$	—	$	1,706	$	23,567
Non-performing loans:
Loans 90+ days past due and still accruing									$	4,257
Non-accrual loans									27,019
Total non-performing loans									$	31,276

	September 30, 2012
	Current		30-59 Days past due		60-89 Days past due		90+ Days past due		Non- accrual		Total
Loans by segment:
Residential mortgage	$	337,356	$	855	$	497	$	2,263	$	9,051	$	350,022
Commercial real estate	1,060,176		902		973		1,638		8,815		1,072,504
Commercial & industrial	342,726		96		141		—		344		343,307
Acquisition, development & construction	121,590		7,067		—		—		15,404		144,061
Consumer	205,463		1,551		265		469		1,830		209,578
Total	$	2,067,311	$	10,471	$	1,876	$	4,370	$	35,444	$	2,119,472
Total TDRs included above	$	13,543	$	270	$	264	$	—	$	10,870	$	24,947
Non-performing loans:
Loans 90+ days past due and still accruing									$	4,370
Non-accrual loans									35,444
Total non-performing loans									$	39,814

15

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in thousands, except per share data)

Activity in the allowance for loan losses for the three months ended March 31, 2013 and 2012 is summarized below: 

	For the three months ended March 31, 2013
	Beginning allowance for loan losses		Charge-offs			Recoveries		Net charge-offs			Provision for loan losses			Ending allowance for loan losses
Residential mortgage	$	4,368	$	(959	)	$	9	$	(950	)	$	1,025		$	4,443
Commercial real estate	7,616		(1,199		)	331		(868		)	2,401			9,149
Commercial & industrial	5,533		(359		)	127		(232		)	(930		)	4,371
Acquisition, development & construction	7,026		(567		)	164		(403		)	(521		)	6,102
Consumer	3,571		(748		)	31		(717		)	625			3,479
Total	$	28,114	$	(3,832	)	$	662	$	(3,170	)	$	2,600		$	27,544
Annualized net charge-offs to average gross loans outstanding								0.58		%

	For the three months ended March 31, 2012
	Beginning allowance  for loan losses		Charge-offs			Recoveries		Net charge-offs			Provision for loan losses			Ending allowance  for loan losses
Residential mortgage	$	4,167	$	(677	)	$	1	$	(676	)	$	696		$	4,187
Commercial real estate	5,522		(715		)	51		(664		)	1,608			6,466
Commercial & industrial	5,621		(493		)	83		(410		)	(480		)	4,731
Acquisition, development & construction	9,403		(1,021		)	—		(1,021		)	559			8,941
Consumer	3,532		(566		)	29		(537		)	467			3,462
Total	$	28,245	$	(3,472	)	$	164	$	(3,308	)	$	2,850		$	27,787
Annualized net charge-offs to average gross loans outstanding								0.74		%

Activity in the allowance for loan losses for the six months ended March 31, 2013 and 2012 is summarized below: 

	For the six months ended March 31, 2013
	Beginning allowance for loan losses		Charge-offs			Recoveries		Net charge-offs			Provision for loan losses			Ending allowance for loan losses
Residential mortgage	$	4,359	$	(1,909	)	$	60	$	(1,849	)	$	1,933		$	4,443
Commercial real estate	7,230		(1,427		)	412		(1,015		)	2,934			9,149
Commercial & industrial	4,603		(518		)	247		(271		)	39			4,371
Acquisition, development & construction	8,526		(2,161		)	169		(1,992		)	(432		)	6,102
Consumer	3,564		(1,231		)	70		(1,161		)	1,076			3,479
Total	$	28,282	$	(7,246	)	$	958	$	(6,288	)	$	5,550		$	27,544
Annualized net charge-offs to average gross loans outstanding								0.58		%

16

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in thousands, except per share data)

	For the six months ended March 31, 2012
	Beginning allowance  for loan losses		Charge-offs			Recoveries		Net charge-offs			Provision for loan losses			Ending allowance  for loan losses
Residential mortgage	$	3,498	$	(1,466	)	$	120	$	(1,346	)	$	2,035		$	4,187
Commercial real estate	5,568		(1,661		)	401		(1,260		)	2,158			6,466
Commercial & industrial	5,945		(701		)	629		(72		)	(1,142		)	4,731
Acquisition, development & construction	9,895		(1,296		)	—		(1,296		)	342			8,941
Consumer	3,011		(1,028		)	72		(956		)	1,407			3,462
Total	$	27,917	$	(6,152	)	$	1,222	$	(4,930	)	$	4,800		$	27,787
Annualized net charge-offs to average gross loans outstanding								0.56		%

The following table sets forth the loans evaluated for impairment by segment and the allowance evaluated by segment at March 31, 2013:

	Loans evaluated by segment						Allowance evaluated by segment
	Individually evaluated for impairment		Collectively evaluated for impairment		Total  loans		Individually evaluated for impairment		Collectively evaluated for impairment		Total allowance for loan losses
Residential mortgage	$	12,480	$	353,005	$	365,485	$	305	$	4,138	$	4,443
Commercial real estate	15,434		1,134,029		1,149,463		2,155		6,994		9,149
Commercial & industrial	2,813		367,433		370,246		179		4,192		4,371
Acquisition, development & construction	19,315		98,800		118,115		144		5,958		6,102
Consumer	3,066		198,180		201,246		149		3,330		3,479
Total	$	53,108	$	2,151,447	$	2,204,555	$	2,932	$	24,612	$	27,544

The following table sets forth the loans evaluated for impairment by segment and the allowance evaluated by segment at September 30, 2012:

	Loans evaluated by segment						Allowance evaluated by segment
	Individually evaluated for impairment		Collectively evaluated for impairment		Total loans		Individually evaluated for impairment		Collectively evaluated for impairment		Total allowance for loan losses
Residential mortgage	$	12,739	$	337,283	$	350,022	$	871	$	3,488	$	4,359
Commercial real estate	13,017		1,059,487		1,072,504		1,036		6,194		7,230
Commercial & industrial	357		342,950		343,307		48		4,555		4,603
Acquisition, development & construction	24,880		119,181		144,061		996		7,530		8,526
Consumer	2,299		207,279		209,578		263		3,301		3,564
Total	$	53,292	$	2,066,180	$	2,119,472	$	3,214	$	25,068	$	28,282

17

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in thousands, except per share data)

The following table presents loans individually evaluated for impairment by segment of loans at March 31, 2013 and September 30, 2012:

	March 31, 2013						September 30, 2012
	Unpaid principal balance		Recorded investment		Related allowance		Unpaid principal balance		Recorded investment		Related allowance
With no related allowance recorded:
Residential mortgage	$	10,665	$	8,539	$	—	$	6,193	$	5,413	$	—
Commercial real estate	10,440		9,229		—		9,296		7,837		—
Commercial & industrial	2,498		2,455		—		262		262		—
Acquisition, development & construction	19,986		18,645		—		24,144		20,597		—
Consumer	2,577		2,341		—		1,146		1,122		—
Subtotal	46,166		41,209		—		41,041		35,231		—
With an allowance recorded:
Residential mortgage	5,303		3,941		305		8,485		7,326		871
Commercial real estate	8,988		6,205		2,155		5,942		5,180		1,036
Commercial & industrial	538		358		179		95		95		48
Acquisition, development & construction	814		670		144		7,159		4,283		996
Consumer	1,197		725		149		1,400		1,177		263
Subtotal	16,840		11,899		2,932		23,081		18,061		3,214
Total	$	63,006	$	53,108	$	2,932	$	64,122	$	53,292	$	3,214

18

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in thousands, except per share data)

The following table presents the average recorded investment and interest income recognized related to loans individually evaluated for impairment by segment for the three months ended March 31, 2013 and 2012:

	March 31, 2013						March 31, 2012
	QTD average recorded investment		Interest income recognized		Cash-basis interest income recognized		QTD average recorded investment		Interest income recognized		Cash-basis interest income recognized
With no related allowance recorded:
Residential mortgage	$	7,978	$	100	$	52	$	4,182	$	63	$	28
Commercial real estate	9,248		99		53		9,525		95		75
Commercial & industrial	1,873		45		21		798		10		10
Acquisition, development & construction	15,582		313		161		21,442		166		114
Consumer	2,127		7		3		2,290		20		5
Subtotal	36,808		564		290		38,237		354		232
With an allowance recorded:
Residential mortgage	3,857		14		6		6,790		35		30
Commercial real estate	6,265		13		9		7,256		33		24
Commercial & industrial	368		3		3		97		2		2
Acquisition, development & construction	649		—		—		10,640		44		41
Consumer	700		4		2		1,099		3		2
Subtotal	11,839		34		20		25,882		117		99
Total	$	48,647	$	598	$	310	$	64,119	$	471	$	331

19

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in thousands, except per share data)

The following table presents the average recorded investment and interest income recognized related to loans individually evaluated for impairment by segment for the six months ended March 31, 2013 and 2012:

	March 31, 2013						March 31, 2012
	YTD average recorded investment		Interest income recognized		Cash-basis interest income recognized		YTD average recorded investment		Interest income recognized		Cash-basis interest income recognized
With no related allowance recorded:
Residential mortgage	$	8,165	$	201	$	104	$	4,244	$	126	$	57
Commercial real estate	9,241		199		105		9,690		184		151
Commercial & industrial	2,067		90		42		849		20		20
Acquisition, development & construction	16,603		630		321		21,715		344		229
Consumer	2,198		14		6		2,297		39		11
Subtotal	38,274		1,134		578		38,795		713		468
With an allowance recorded:
Residential mortgage	3,885		27		12		6,968		69		59
Commercial real estate	6,245		27		19		7,399		66		47
Commercial & industrial	365		6		6		96		3		3
Acquisition, development & construction	656		—		—		10,941		88		82
Consumer	709		8		4		1,085		4		4
Subtotal	11,860		68		41		26,489		230		195
Total	$	50,134	$	1,202	$	619	$	65,284	$	943	$	663

Troubled Debt Restructuring:

The following tables set forth the amounts of the Company’s TDRs at March 31, 2013 and September 30, 2012:

	March 31, 2013
	Current		30-59 Days past due		60-89 Days past due		90+ Days past due		Non- accrual		Total
Residential mortgage	$	1,560	$	198	$	—	$	—	$	1,558	$	3,316
Commercial real estate	3,347		—		—		—		—		3,347
Commercial & industrial	1,669		—		—		—		—		1,669
Acquisition, development & construction	14,742		345		—		—		148		15,235
Total	$	21,318	$	543	$	—	$	—	$	1,706	$	23,567
Allowance for loan losses	$	—	$	—	$	—	$	—	$	4	$	4

20

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in thousands, except per share data)

	September 30, 2012
	Current		30-59 Days past due		60-89 Days past due		90+ Days past due		Non- accrual		Total
Residential mortgage	$	1,226	$	—	$	264	$	—	$	2,178	$	3,668
Commercial real estate	2,640		270		—		—		—		2,910
Acquisition, development & construction	9,677		—		—		—		8,692		18,369
Total	$	13,543	$	270	$	264	$	—	$	10,870	$	24,947
Allowance for loan losses	$	—	$	—	$	41	$	—	$	955	$	996

The Company has outstanding commitments to lend additional amounts totaling up to $0 and $4,225 as of March 31, 2013, and September 30, 2012, respectively, to customers with outstanding loans that are classified as TDRs.

The following table presents loans by segment modified as TDRs that occurred during the three months ended March 31, 2013 and 2012:

	March 31, 2013					March 31, 2012
		Recorded investment					Recorded investment
	Number of loans	Pre- modification		Post- modification		Number of loans	Pre- modification		Post- modification
Commercial & industrial	2	$	169	$	169	—	$	—	$	—
Acquisition, development & construction	5	3,049		3,049		1	446		446
Total restructured loans	7	$	3,218	$	3,218	1	$	446	$	446

The following table presents loans by segment modified as TDRs that occurred during the six months ended March 31, 2013 and 2012:

	March 31, 2013					March 31, 2012
		Recorded investment					Recorded investment
	Number of loans	Pre- modification		Post- modification		Number of loans	Pre- modification		Post- modification
Residential mortgage	1	$	275	$	275	1	$	446	$	446
Commercial real estate	1	450		450		1	850		850
Commercial & industrial	3	1,669		1,669		—	—		—
Acquisition, development & construction	7	5,772		5,772		—	—		—
Total restructured loans	12	$	8,166	$	8,166	2	$	1,296	$	1,296

The TDRs presented above increased the allowance for loan losses by $0 for the three months ended March 31, 2013 and 2012. There were no charge-offs as a result of the above TDRs, for the respective periods.

The TDRs presented above increased the allowance for loan losses by $0 and $134 for the six months ended March 31, 2013 and 2012, respectively. There were $40 and $134 in charge-offs as a result of the above TDRs, for the respective periods.

There were 4 residential mortgage loans totaling $1,100 that were modified as TDRs during the last twelve months that had subsequently defaulted during the six months ended March 31, 2013.

21

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in thousands, except per share data)

Credit Quality Indicators

The Bank places loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Bank analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on at least a quarterly basis on all criticized/classified loans. The Bank uses the following definitions of risk ratings:

Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected these potential weaknesses may result in the deterioration of the repayment prospects for the loan or the Bank’s credit position at some future date.

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.

Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Based on the analysis performed as of March 31, 2013 and September 30, 2012, the risk category of loans by segment of gross loans is as follows:

	March 31, 2013						September 30, 2012
	Special mention		Substandard		Doubtful		Special mention		Substandard		Doubtful
Residential mortgage	$	1,200	$	10,763	$	—	$	830	$	11,314	$	—
Commercial real estate	18,531		27,212		—		20,729		27,674		—
Acquisition, development & construction	9,054		23,298		—		5,669		42,871		—
Commercial & industrial	12,973		5,836		330		14,920		3,995		338
Consumer	20		3,249		—		274		2,482		—
Total	$	41,778	$	70,358	$	330	$	42,422	$	88,336	$	338

22

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in thousands, except per share data)

4. Deposits

Major classifications of deposits are summarized below:  

	March 31, 2013		September 30, 2012
Transaction accounts:
Demand deposits:
Retail	$	170,102	$	167,050
Business	426,783		412,630
Municipal	26,889		367,624
NOW deposits:
Retail	235,658		213,755
Business	43,389		38,486
Municipal	166,812		195,882
Total transaction accounts	1,069,633		1,395,427
Savings	549,440		506,538
Money market	833,209		821,704
Certificates of deposit	347,376		387,482
Total deposits	$	2,799,658	$	3,111,151

Municipal deposits of $537,070 and $901,739 were included in total deposits at March 31, 2013 and September 30, 2012, respectively. Deposits received for tax receipts were approximately $425,000 at September 30, 2012. See Note 2, for the amount of securities that are pledged as collateral for municipal deposits and other purposes.

Listed below are the Company’s brokered deposits included in the table above:

	March 31, 2013		September 30, 2012
Savings	$	—	$	13,344
Money market	34,641		46,566
Reciprocal CDARs(1)	1,356		1,354
CDARs one way	766		764
Total brokered deposits	$	36,763	$	62,028

^{(1)  Certificate of deposit account registry service.}  

23

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in thousands, except per share data)

5. Borrowings

The Company’s FHLB and other borrowings and weighted average interest rates are summarized as follows:

	March 31, 2013				September 30, 2012
	Amount		Rate		Amount		Rate
By type of borrowing:
Advances	$	139,323	2.95	%	$	106,904	3.89	%
Repurchase agreements	228,653		3.24		238,272		3.49
Total borrowings	$	367,976	3.13	%	$	345,176	3.61	%
By remaining period to maturity:
One year or less	$	68,810	1.27	%	$	10,136	1.88	%
One to two years	73,731		1.75		56,819		2.44
Two to three years	—		—		52,693		2.89
Three to four years	102,597		4.19		201		5.32
Four to five years	120,000		4.10		202,386		4.21
Greater than five years	2,838		4.92		22,941		3.74
Total borrowings	$	367,976	3.13	%	$	345,176	3.61	%

As a member of the FHLB, the Bank may borrow in the form of term and overnight borrowings up to the amount of eligible mortgages and securities that have been pledged as collateral under a blanket security agreement. As of March 31, 2013 and September 30, 2012, the Bank had pledged mortgage loans totaling $645,488 and $613,554, respectively. The Bank had also pledged securities to secure borrowings, which are disclosed in Note 2. Securities. As of March 31, 2013, the Bank may increase its borrowing capacity by pledging securities and mortgage loans not required to be pledged for other purposes with a market value of $486,394.

FHLB borrowings which are putable quarterly at the discretion of the FHLB (includes both advance and repurchase agreements) were $200,000 as of March 31, 2013 and September 30, 2012. These borrowings have a weighted average remaining term to the contractual maturity dates of approximately 4.06 years and 4.56 years and weighted average interest rates of 4.23% at March 31, 2013 and September 30, 2012.

24

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in thousands, except per share data)

6. Guarantor’s Obligations Under Guarantees

Most letters of credit issued by or on behalf of the Company are standby letters of credit. Standby letters of credit are commitments issued by the Company on behalf of its customer/obligor in favor of a beneficiary that specify an amount the Company can be called upon to pay upon the beneficiary’s compliance with the terms of the letter of credit. These commitments are primarily issued in favor of local municipalities to support the obligor’s completion of real estate development projects. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers.

As of March 31, 2013, the Company had $26,942 in outstanding letters of credit, of which $6,546 are cash secured and $4,524 were secured by other collateral. The carrying values of these obligations are not considered material.

7. Contingencies

Certain premises and equipment are leased under operating leases with terms expiring through 2033. The Company has the option to renew certain of these leases for additional terms.

Litigation

The Company is a defendant in certain claims and legal actions arising in the ordinary course of business. Management, after consultation with legal counsel, does not anticipate losses on any of these claims or actions that would have a material adverse effect on the consolidated financial statements.

8. Earnings Per Common Share

The number of shares used in the computation of basic earnings per share excludes unallocated ESOP shares and unvested shares of restricted stock that are not participating securities.

Common stock equivalent shares are incremental shares (computed using the treasury stock method) that would have been outstanding if all potentially dilutive stock options and unvested recognition and retention plan shares were exercised or became vested during the periods presented.

Basic earnings per common share are computed as follows:

	For the three months ended March 31,				For the six months ended March 31,
	2013		2012		2013		2012
Weighted average common shares outstanding (basic)	43,743,640		37,280,651		43,704,163		37,266,480
Net income	$	6,529	$	5,701	$	13,549	$	11,418
Basic earnings per common share	0.15		0.15		0.31		0.31

Diluted earnings per common share are computed as follows:

	For the three months ended March 31,				For the six months ended March 31,
	2013		2012		2013		2012
Weighted average common shares outstanding (basic)	43,743,640		37,280,651		43,704,163		37,266,480
Effect of common stock equivalents	104,846		36,127		86,752		9,153
Weighted average common shares outstanding (diluted)	43,848,486		37,316,778		43,790,915		37,275,633
Net income	$	6,529	$	5,701	$	13,549	$	11,418
Diluted earnings per common share	0.15		0.15		0.31		0.31

25

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in thousands, except per share data)

As of March 31, 2013 and March 31, 2012, 1,332,619 and 1,710,943 weighted average shares were anti-dilutive for the three month period, respectively. As of March 31, 2013 and March 31, 2012, 1,344,024 and 1,832,280 weighted average shares were anti-dilutive for the six month period, respectively. Anti-dilutive shares are not included in the determination of diluted earnings per share.

9. Stock-Based Compensation

The Company has three active stock-based compensation plans as described below. Total compensation expense that was charged against income for those plans was $566, and $181, for the three months ended March 31, 2013 and 2012, respectively. There was no income tax benefit realized for the three months ended March 31, 2013 and 2012.

Total compensation expense that was charged against income for those plans was $950, and $373, for the six months ended March 31, 2013 and 2012, respectively. There was no income tax benefit realized for the six months ended March 31, 2013 and 2012.

Active Stock-Based Compensation Plans

The Company’s shareholders approved the 2012 Stock Incentive Plan (the “2012 Plan”) on February 16, 2012. The 2012 Plan permits the grant of stock options, stock appreciation rights, restricted stock (both time-based and performance-based), restricted stock units, performance units, deferred stock and other stock-based awards for up to 1,867,340 shares of common stock as of March 31, 2013. Awards are generally granted with an exercise price equal to the market price of the Company’s common stock at the date of grant; those awards have vesting periods ranging from 2 to 5 years and have 10 year contractual terms. The Company has a policy of using shares held as treasury stock to satisfy its stock-based compensation stock issuances. Currently, the Company has a sufficient number of treasury shares to satisfy expected stock-based compensation issuances.

The Company’s 2004 Stock Incentive Plan (the “2004 Plan”), which is shareholder approved, permits the grant of stock options to its employees for up to 119,457 shares of common stock as of March 31, 2013. Option awards are generally granted with an exercise price equal to the market price of the Company’s common stock at the date of grant; those option awards have vesting periods ranging from 2 to 5 years and have 10 year contractual terms. The Company has a policy of using shares held as treasury stock to satisfy its stock-based compensation stock issuances.

The Company’s 2004 Restricted Stock Plan, which historically has been referred to as the Recognition and Retention Plan (“RRP”), provides for the issuance of shares to directors and officers. Compensation expense is recognized on a straight-line basis over the vesting period of the awards based on the fair value of the stock at issue date. RRP shares vest annually on the anniversary of the grant date over the vesting period. Total shares remaining that are authorized and available for future grant under the RRP are 7,120 at March 31, 2013.

Under the 2004 Plan and the RRP each grant of stock or restricted stock counts as one share against the number of shares available for grant. Under the 2012 Plan each share of restricted stock, (or non-vested stock awards), is counted as 3.6 shares against the number of shares available for grant. Under the 2012 Plan other grants, including stock options, stock appreciation rights, performance units, deferred stock and other stock awards will be counted as one share against the number of shares available for grant.

The fair value of each stock option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the table below. Expected volatility is based on the historical volatility of the Company’s common stock. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the date of grant.

26

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in thousands, except per share data)

The fair value of options granted was determined using the following weighted average assumptions as of the grant date:

	For the six months ended March 31,
	2013		2012
Risk-free interest rate	0.96	%	1.50	%
Expected stock price volatility	40.8	%	39.8	%
Dividend yield (1)	2.61	%	3.10	%
Expected term in years	5.75		5.80

^{(1) Represents the approximate annualized cash dividend rate paid with respect to a share of common stock at or near the grant date.} 

The following table summarizes the combined activity in the Company’s active stock-based compensation plans for the six months ended March 31, 2013:

			Non-vested stock awards/stock units outstanding				Stock options outstanding
	Shares available for grant		Number of shares		Weighted average grant date fair value		Number of shares		Weighted average exercise price
Balance at October 1, 2012	2,875,877		97,817		$	8.31	1,972,480		$	11.04
Granted (1)	(1,028,140	)	186,900		9.04		360,500		9.04
Stock awards vested	—		(32,166	)	8.73		—		—
Exercised	—		—		—		(6,250	)	6.71
Forfeited	153,234		(9,300	)	7.28		(130,900	)	10.23
Canceled/expired	(7,054	)	—		—		(7,054	)	13.97
Balance at March 31, 2013	1,993,917		243,251		$	8.85	2,188,776		$	10.76
Exercisable at March 31, 2013							1,392,338		$	12.08

^{(1) Reflects certain non-vested stock awards that count as 3.6 shares for each share granted.}  

The weighted average fair value of options granted was $2.74 and $2.27 for the six months ended March 31, 2013 and 2012, respectively.

As of March 31, 2013, there was $1,726 of total unrecognized compensation expense related to non-vested stock options granted under the Company’s stock-based compensation plans. The expense is expected to be recognized over a weighted average period of 2.49 years.

As of March 31, 2013, there was $1,683 of total unrecognized compensation expense related to non-vested restricted shares granted under the 2012 Plan and the RRP. The expense is expected to be recognized over a weighted average period of 2.24 years.

There were no modifications for the six months ended March 31, 2013 and 2012.

27

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in thousands, except per share data)

10. Pension and Other Post Retirement Plans

Net pension and post-retirement expense, which is recorded within compensation and employee benefits expense in the consolidated statements of income, is comprised of the following:

	Pension plan						Other post retirement plans
	For the three months ended March 31,						For the three months ended March 31,
	2013			2012			2013			2012
Service cost	$	—		$	—		$	11		$	9
Interest cost	363			376			31			27
Expected return on plan assets	(615		)	(532		)	—			—
Amortization of net transition obligation	—			—			6			6
Amortization of prior service cost	—			—			12			12
Amortization of (gain) or loss	515			579			(6		)	(15		)
Total cost	$	263		$	423		$	54		$	39

	Pension plan						Other post retirement plans
	For the six months ended March 31,						For the six months ended March 31,
	2013			2012			2013			2012
Service cost	$	—		$	—		$	23		$	18
Interest cost	726			751			63			54
Expected return on plan assets	(1,231		)	(1,063		)	—			—
Amortization of net transition obligation	—			—			12			12
Amortization of prior service cost	—			—			23			24
Amortization of (gain) or loss	1,031			1,158			(13		)	(30		)
Total cost	$	526		$	846		$	108		$	78

As of March 31, 2013, no contributions had been made into the pension plan during fiscal year 2013. The Company has not yet determined if additional contributions will be made during the fiscal year 2013.

The Company has also established a non-qualified Supplemental Executive Retirement Plan (“SERP”) to provide certain executives with supplemental retirement benefits in addition to the benefits provided by the pension plan due to amounts limited by the Internal Revenue Code of 1986, as amended (“IRS Code”). The periodic pension expense for the supplemental plan amounted to $12 for the three months ended March 31, 2013 and $14 for the three months ended March 31, 2012.

The periodic pension expense for the supplemental plan amounted to $24 for the six months ended March 31, 2013 and $26 for the six months ended March 31, 2012.

For the three months ended March 31, 2013 and 2012 there was $9 and $75, respectively, in contributions to fund benefit payments related to the SERP. For the six months ended March 31, 2013 and 2012, there was $18 and $84, respectively, in contributions to fund benefit payments related to the SERP.

28

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in thousands, except per share data)

11. Derivatives

The Company purchased two interest rate caps in fiscal 2010 to assist in offsetting a portion of interest rate exposure should short- term rate increases lead to rapid increases in general levels of market interest rates on deposits. These caps are linked to LIBOR and have strike prices of 3.50% and 4.00%. These caps are stand-alone derivatives and therefore changes in fair value are reported in current period earnings; the amount for the quarter ended March 31, 2013 and 2012 is a fair value loss of $0 and a fair value loss of $40, respectively. For the six months ended March 31, 2013 and 2012 the fair value loss was $1 and $43, respectively. The fair value of the interest rate caps and interest rate swaps discussed below at March 31, 2013 and September 30, 2012 are included in other assets with a corresponding credit (charge) to income recorded as a gain (loss) to non-interest income.

The Company acts as an interest rate swap counterparty with certain commercial customers and manages this risk by entering into corresponding and offsetting interest rate risk agreements with third parties. The swaps are considered a derivative instrument and must be carried at fair value. As the swaps are not a designated qualifying hedge, the change in fair value is recognized in current earnings, with no offset from any other instrument. There was no net gain or loss recorded in earnings during the three and six months ended March 31, 2013 and 2012.

The Company pledged collateral to derivative counterparties in the form of securities with an amortized cost of $5,042 and a fair value of $5,044 as of March 31, 2013. 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 ISDA and loan documents where, in default situations, the Bank is allowed to access collateral supporting the loan relationship to recover any losses suffered on the derivative asset or liability. The Company may need to post additional collateral in the future in proportion to potential increases in unrealized loss positions.

At March 31, 2013 summary information regarding these derivatives is presented below:

	March 31, 2013
	Notional amount			Weighted average maturity (in years)	Weighted average fixed rate		Weighted average variable rate	Fair value
Interest rate caps	$	50,000		1.68	3.75	%	NA	$	1
Third-party interest rate swaps	55,190			6.26	4.22		1 m Libor + 2.45	2,198
Customer interest rate swaps	(55,190		)	6.26	4.22		1 m Libor + 2.45	(2,198		)

At September 30, 2012, summary information regarding these derivatives is presented below:

	September 30, 2012
	Notional amount			Weighted average maturity (in years)	Weighted average fixed rate		Weighted average variable rate	Fair value
Interest rate caps	$	50,000		2.18	3.75	%	NA	$	2
Third-party interest rate swaps	42,332			7.30	4.29		1 m Libor + 2.28	2,485
Customer interest rate swaps	(42,332		)	7.30	4.29		1 m Libor + 2.28	(2,485		)

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 are carried at estimated fair value on the consolidated balance sheets. The fair values of these commitments are not considered material.

29

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in thousands, except per share data)

12. 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 – Valuation is based on quoted prices in active markets for identical assets and liabilities.

Level 2 – Valuation is determined from quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar instruments in markets that are not active or by model-based techniques in which all significant inputs are observable in the market.

Level 3 – Valuation is derived from model-based techniques in which at least one significant input is unobservable and based on the Company’s own estimates about the assumptions that the market participants would use to value the asset or liability.

When available, the Company attempts to use quoted market prices in active markets to determine fair value and classifies such items as Level 1 or Level 2. If quoted market prices in active markets are not available, fair value is often determined using model-based techniques incorporating various assumptions including interest rates, prepayment speeds and credit losses. Assets and liabilities valued using model-based techniques are classified as either Level 2 or Level 3, depending on the lowest level classification of an input that is considered significant to the overall valuation.

The following is a description of the valuation methodologies used for the Company’s assets and liabilities that are measured on a recurring basis at estimated fair value.

Investment Securities Available for Sale

The majority of the Company’s available for sale investment securities have been valued by reference to prices for similar securities or through model-based techniques in which all significant inputs are observable and, therefore, such valuations have been classified as Level 2.

The Company utilizes an outside vendor to obtain valuations for its securities as well as information received from a third-party investment adviser. The Company utilizes prices from a leading provider of financial market data and compares them to dealer indicative bids from the Company’s external investment adviser. The Company does not make adjustments to these prices unless it is determined there is limited trading activity. For securities where there is limited trading activity (private label collateralized mortgage obligations or “CMOs”) and less observable valuation inputs, the Company has classified such valuations as Level 3.

The Company reviewed the volume and level of activity for its available for sale securities to identify transactions which may not be orderly or reflective of significant activity and volume. Although estimated prices were generally obtained for such securities, there continues to be a decline in the volume and level of activity in the market for its private label mortgage-backed securities as compared to prior periods. The market assumptions regarding credit adjusted cash flows and liquidity influences on discount rates were difficult to observe at the individual security level. Because of the inactivity in the markets and the lack of observable valuation inputs the Company has classified the valuation of private label residential mortgage-backed securities as Level 3. As of March 31, 2013, these securities have an amortized cost of $4,142 and a fair value of $4,216. In determining the fair value of these securities the Company utilized unobservable inputs which reflect assumptions regarding the inputs that market participants would use in pricing these securities in an orderly market. Significant increases (decreases) in any of the unobservable inputs would result in a significantly lower (higher) fair value measurement of the securities. Present value estimated cash flow models were used to discount expected cash flows at the interest rate reflective of similarly structured securities in an orderly market. The resultant prices were averaged with prices obtained from two independent third parties to arrive at the fair value as of March 31, 2013. Management ultimately determines the fair value of Level 3 investment securities. These securities have a weighted average coupon rate of 3.80%, a weighted average life of 4.05 years, a weighted average one month constant prepayment rate history of 12.06 and a weighted average twelve month constant default rate of 3.19%. It was determined that two of these securities with a carrying value of $3,825 and an amortized cost of $3,764 had OTTI which resulted in a $0 and $14 OTTI charge through earnings for the three and six months ended March 31, 2013. These securities have an accumulated OTTI of $136 at March 31, 2013. The calculation of the OTTI was determined by performing a present value of estimated credit loss using the underlying security book yields of 3.12% and 3.39%.

30

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in thousands, except per share data)

The credit ratings of private label CMO securities at March 31, 2013 were as follows:

	Amortized cost		Fair value
Credit rating:
Aa3	$	270	$	282
Ba1	108		109
B1	2,230		2,267
B3	1,534		1,558
Total private label CMOs	$	4,142	$	4,216

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 counter party as of the measurement date (Level 2). The Company’s derivatives consist of two interest rate caps and twelve interest rate swaps (see note 11).

Commitments to Sell Real Estate Loans

The Company enters into various commitments to sell real estate loans in the secondary market. Such commitments are considered to be derivative financial instruments and therefore are carried at estimated fair value on the consolidated statements of financial condition. 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 values of these commitments are not considered material.

31

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in thousands, except per share data)

A summary of assets and liabilities at March 31, 2013 measured at estimated fair value on a recurring basis were as follows:

	March 31, 2013
	Fair value measurements		Quoted prices in active markets for identical assets Level 1		Significant other observable inputs Level 2		Significant unobservable inputs Level  3
Assets:
Investment securities available for sale:
Residential mortgage-backed securities:
Fannie Mae	$	132,099	$	—	$	132,099	$	—
Freddie Mac	55,732		—		55,732		—
Ginnie Mae	4,194		—		4,194		—
CMO/Other MBS	180,985		—		180,985		—
Private label CMOs	4,216		—		—		4,216
Total residential mortgage-backed securities	377,226		—		373,010		4,216
Other securities:
Federal agencies	369,276		—		369,276		—
Corporate bonds	25,879		—		25,879		—
Obligations of states and political subdivisions	172,479		—		172,479		—
Equities	818		—		818		—
Total other securities	568,452		—		568,452		—
Total investment securities available for sale	945,678		—		941,462		4,216
Interest rate caps and swaps	2,199		—		2,199		—
Total assets measured at estimated fair value on a recurring basis	$	947,877	$	—	$	943,661	$	4,216
Liabilities:
Interest rate swaps	$	2,198	$	—	$	2,198	$	—
Total liabilities measured at estimated fair value on a recurring basis	$	2,198	$	—	$	2,198	$	—

32

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in thousands, except per share data)

A summary of assets and liabilities at September 30, 2012 measured at estimated fair value on a recurring basis were as follows:

	September 30, 2012
	Fair value measurements		Quoted prices in active  markets for identical assets Level 1		Significant other observable inputs Level 2		Significant unobservable inputs Level 3
Assets:
Investment securities available for sale:
Residential mortgage-backed securities:
Fannie Mae	$	161,407	$	—	$	161,407	$	—
Freddie Mac	85,260		—		85,260		—
Ginnie Mae	4,778		—		4,778		—
CMO/Other MBS	188,434		—		188,434		—
Private label CMOs	4,630		—		—		4,630
Total residential mortgage-backed securities	444,509		—		439,879		4,630
Other securities:
Federal agencies	408,823		—		408,823		—
Obligations of states and political subdivisions	156,481		—		156,481		—
Equities	1,059		—		1,059		—
Total other securities	566,363		—		566,363		—
Total investment securities available for sale	1,010,872		—		1,006,242		4,630
Interest rate caps and swaps	2,487		—		2,487		—
Total assets measured at estimated fair value on a recurring basis	$	1,013,359	$	—	$	1,008,729	$	4,630
Liabilities:
Interest rate swaps	$	2,485	$	—	$	2,485	$	—
Total liabilities measured at estimated fair value on a recurring basis	$	2,485	$	—	$	2,485	$	—

There were no transfers between Level 1 and Level 2 inputs during the six months ended March 31, 2013 and 2012.

33

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in thousands, except per share data)

The changes in Level 3 assets measured at fair value on a recurring basis are summarized as follows for the three and six months ended March 31, 2013 and 2012:

	Fair value measurement for the three and six months ended March 31, 2013 using significant unobservable inputs Level 3			Fair value measurement for the three and six months ended March 31, 2012 using significant unobservable inputs Level 3
Balance at September 30,	$	4,630		$	4,851
Paydowns	(325		)	(148		)
Accretion, net	6			3
OTTI	(14		)	(38		)
Change in fair value	63			7
Balance at December 31,	4,360			4,675
Paydowns	(196		)	(178		)
Accretion, net	5			3
OTTI	—			—
Change in fair value	47			211
Balance at March 31,	$	4,216		$	4,711

Changes in fair value are included as part of net unrealized holding gains (losses) on securities available for sale net of related tax expense on the Consolidated Statements of Comprehensive Income (Loss).

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).

Mortgage loans held for sale are generally sold with servicing rights retained. The carrying value of mortgage loans sold is reduced by the amount allocated to the value of the servicing rights which is 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. Such 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 valuation amount does not necessarily represent the fair value of the loan. Real estate collateral is valued using independent appraisals or other indications of value based upon recent comparable sales of similar properties or assumptions generally observable by market participants. Any fair value adjustments for loans categorized here are classified as Level 3. Estimates of fair value used for other collateral supporting commercial loans generally are based on assumptions not observable in the market place and therefore such valuations have been classified as Level 3. 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 $50,176 and $50,078 which equals the carrying value less the allowance for loan losses allocated to these loans at March 31, 2013 and September 30, 2012, respectively. Changes in fair value recognized on provisions on loans held by the Company were $3,947 and $2,359 for the six months ended March 31, 2013 and 2012, respectively.

34

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in thousands, except per share data)

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. Nearly all of our impaired loans are considered collateral dependent.

Impaired loans at March 31, 2013 measured at estimated fair value on a non-recurring basis were as follows:

	March 31, 2013
	Fair value measurements		Quoted prices  in active  markets for identical assets Level 1		Significant other observable inputs Level 2		Significant unobservable inputs Level 3
Residential mortgage	$	8,664	$	—	$	—	$	8,664
Commercial real estate	7,216		—		—		7,216
Commercial & industrial	358		—		—		358
Acquisition, development & construction	3,896		—		—		3,896
Consumer	1,008		—		—		1,008
Total impaired loans measured at fair value	$	21,142	$	—	$	—	$	21,142

Impaired loans at September 30, 2012 measured at estimated fair value on a non-recurring basis were as follows:

	September 30, 2012
	Fair value measurements		Quoted prices  in active  markets for identical assets Level 1		Significant other observable inputs Level 2		Significant unobservable inputs Level 3
Residential mortgage	$	8,628	$	—	$	—	$	8,628
Commercial real estate	6,537		—		—		6,537
Commercial & industrial	95		—		—		95
Acquisition, development & construction	8,232		—		—		8,232
Consumer loans	1,215		—		—		1,215
Total impaired loans measured at fair value	$	24,707	$	—	$	—	$	24,707

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 vendor, 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 for impairment purposes is considered a Level 3 valuation. The fair value of mortgage servicing rights at March 31, 2013 and 2012 was $1,886 and $1,433.

35

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in thousands, except per share data)

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 loans 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 property and upon initial recognition, were re-measured and reported at fair value through a charge-off to the allowance for loan losses based upon 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. Such adjustments have been classified as Level 3. Appraisals are reviewed by our credit department, our external loan review consultant and verified by officers in our credit administration area. Assets taken in foreclosure of defaulted loans subject to non-recurring fair value measurement were $5,486 and $6,403 at March 31, 2013 and September 30, 2012, respectively. There were $606 and $208 changes in fair value recognized through income for those foreclosed assets held by the Company during the three months ending March 31, 2013 and 2012, respectively.

There were $815 and $276 changes in fair value recognized through income for those foreclosed assets held by the Company during the six months ending March 31, 2013 and 2012, respectively.

Significant Unobservable Inputs to Level 3 Measurements

The following table presents quantitative information about significant unobservable inputs that are utilized to determine the estimated fair value of Level 3 assets that are presented at fair value on a non-recurring basis at March 31, 2013:

Non-recurring fair value measurements	Fair value		Valuation technique	Unobservable input / assumptions	Range(1)
Impaired loans:
Residential mortgage	$	8,664	Appraisal	Adjustments for comparable properties	18.0% - 23.0%
Commercial real estate	7,216		Appraisal	Adjustments for comparable properties	18.0% - 23.0%
Commercial & industrial	358		Appraisal	Adjustments for comparable properties	18.0% - 32.0%
Acquisition, development & construction	3,896		Appraisal	Adjustments for comparable properties	22.0% - 32.0%
Consumer loans	1,008		Appraisal	Adjustments for comparable properties	18.0% - 23.0%
Assets taken in foreclosure:
Residential mortgage	1,207		Appraisal	Adjustments by management to reflect current conditions/selling costs	18.0% - 23.0%
Commercial real estate	1,239		Appraisal	Adjustments by management to reflect current conditions/selling costs	18.0% - 23.0%
Acquisition, development & construction	3,040		Appraisal	Adjustments by management to reflect current conditions/selling costs	22.0% - 32.0%
Mortgage servicing rights	1,886		Third-party valuation	Discount rate	9.3% - 12.8%
			Third-party valuation	Prepayment speed	100 - 968 (weighted average of 224)

⁽¹⁾ Represents range of discount factors applied to the appraisal to determine fair value. The amounts used for mortgage servicing rights are discounts applied by a third-party valuation provider which the Company believes are appropriate.

36

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in thousands, except per share data)

Fair Values of Financial Instruments

FASB Codification Topic 825 - Financial Instruments, requires disclosure of fair value information for those financial instruments for which it is practicable to estimate fair value, whether or not such financial instruments are recognized in the consolidated statements of financial condition for interim and annual periods. Fair value is the amount at 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 values of financial assets and liabilities (none of which were held for trading purposes) as of March 31, 2013:

	March 31, 2013
	Carrying amount			Quoted prices in active  markets for identical assets Level 1			Significant other observable inputs Level 2			Significant unobservable inputs Level 3
Financial assets:
Cash and due from banks	$	73,396		$	73,396		$	—		$	—
Securities available for sale	945,678			—			941,462			4,216
Securities held to maturity	183,535			—			186,078			—
Loans, net	2,177,011			—			—			2,207,571
Loans held for sale	1,040			—			1,040
Accrued interest receivable on securities	4,597			—			4,597			—
Accrued interest receivable on loans	7,222			—			—			7,222
FHLB stock	20,251			NA			NA			NA
Interest rate caps and swaps	2,199			—			2,199			—
Financial liabilities:
Non-maturity deposits	(2,452,282		)	(2,452,282		)	—			—
Certificates of deposit	(347,376		)	—			(348,076		)	—
FHLB and other borrowings	(367,976		)	—			(400,019		)	—
Mortgage escrow funds	(17,582		)	—			(17,579		)	—
Accrued interest payable on deposits including escrow	(308		)	—			(308		)	—
Accrued interest payable on borrowings	(1,361		)	—			(1,361		)	—
Interest rate caps and swaps	2,198			—			2,198			—

37

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in thousands, except per share data)

The following is a summary of the carrying amounts and estimated fair values of financial assets and liabilities (none of which were held for trading purposes) as of September 30, 2012:

	September 30, 2012
	Carrying amount			Quoted prices in active  markets for identical assets Level 1			Significant other observable inputs Level 2			Significant unobservable inputs Level 3
Financial assets:
Cash and due from banks	$	437,982		$	437,982		$	—		$	—
Securities available for sale	1,010,872			—			1,006,242			4,630
Securities held to maturity	142,376			—			146,324			—
Loans, net	2,091,190			—			—			2,157,133
Loans held for sale	7,505			—			7,505			—
Accrued interest receivable on securities	4,011			—			4,011			—
Accrued interest receivable on loans	6,502			—			—			6,502
FHLB stock	19,249			NA			NA			NA
Interest rate caps and swaps	2,487			—			2,487			—
Financial liabilities:
Non-maturity deposits	(2,723,669		)	(2,723,669		)	—			—
Certificates of deposit	(387,482		)	—			(389,031		)	—
FHLB and other borrowings	(345,176		)	—			(377,906		)	—
Mortgage escrow funds	(11,919		)	—			(11,917		)	—
Accrued interest payable on deposits including escrow	(500		)	—			(500		)	—
Accrued interest payable on borrowings	(1,442		)	—			(1,442		)	—
Interest rate caps and swaps	2,485			—			2,485			—

The following paragraphs summarize the principal methods and assumptions, not previously presented, used by management to estimate the fair value of the Company’s financial instruments.

(a) Cash and due from banks

The carrying value of cash and due from banks approximates their fair value and are classified as Level 1.

(b) Securities

The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, live trading levels, market consensus prepayment speeds, credit information and the bond’s terms and conditions among other items. For certain securities, for which the inputs used by independent pricing services were derived from unobservable market information, the Company evaluated the appropriateness of each price. The Company reviewed the volume and level of activity for its different classes of securities to determine whether transactions were not considered orderly. For these securities, the quoted prices received from independent pricing services may be adjusted, as necessary, to estimate fair value. If applicable, adjustments to fair value were based on averaging present value cash flow model projections with prices obtained from independent pricing services.

(c) Loans held for sale

Loans held for sale are recorded at the lower of cost or fair value in accordance with GAAP and are classified as Level 2.

38

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in thousands, except per share data)

(d) Loans

Fair values were estimated for portfolios of loans with similar financial characteristics. For valuation purposes, the total loan portfolio was segregated into adjustable-rate and fixed-rate categories. Fixed-rate loans were further segmented by type, such as residential mortgage, commercial mortgage, commercial business and consumer loans. Loans were also segmented by maturity dates. Fair values were estimated by discounting scheduled future cash flows through estimated maturity using a discount rate equivalent to the current market rate on loans that are similar with regard to collateral, maturity and the type of borrower. The discounted value of the cash flows was reduced by a credit risk adjustment based on loan categories. Based on the current composition of the Company’s loan portfolio, as well as past experience and current economic conditions and trends, the future cash flows were adjusted by prepayment assumptions that shortened the estimated remaining time to maturity and therefore affected the fair value estimates resulting in a Level 3 classification.

(e) FHLB stock

It is not practical to determine the fair value of FHLB stock due to the restrictions on transfer of their securities.

(f) Deposits and mortgage escrow funds

In accordance with FASB Codification Topic 825, deposits with no stated maturity (such as savings, demand and money market deposits) were assigned fair values equal to the carrying amounts payable on demand and are classified as Level 1. Certificates of deposit and mortgage escrow funds were segregated by account type and original term, and fair values were estimated by discounting the contractual cash flows and are classified as Level 2. The discount rate for each account grouping was 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 deposit base. Management believes 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.

(g) Borrowings

Fair values of FHLB of New York and other borrowings were estimated by discounting the contractual cash flows and are classified as Level 2. A discount rate was utilized for each outstanding borrowing equivalent to the then-current rate offered on borrowings of similar type and maturity.

(h) Accrued interest receivable/payable

The carrying amounts of accrued interest approximate fair value and are classified as Level 2.

(i) Other financial instruments

The other financial assets and liabilities listed in the preceding table 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 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 March 31, 2013 and September 30, 2012, the estimated fair values of these instruments approximated the related carrying amounts, which were insignificant.

39

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in thousands, except per share data)

13. Adoption of New Accounting Standards

Update Number 2013-02 - Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The amendments in this Update supersede and replace the presentation requirements for reclassifications out of accumulated other comprehensive income in ASUs 2011-05 (issued in June 2011) and 2011-12 (issued in December 2011) for all public and private organizations. The amendments would require an entity to provide additional information about reclassifications out of accumulated other comprehensive income. For public entities, the amendments are effective for reporting periods beginning after December 15, 2012. See Note 15 for the impact of this standard.

14. Subsequent Events

On April 4, 2013 Provident announced it had entered into a merger agreement with Sterling Bancorp (NYSE: STL). In the merger, which is a stock-for-stock transaction valued at $344 million based on the closing price of Provident common stock on April 3, 2013, Sterling Bancorp shareholders will receive a fixed ratio of 1.2625 shares of Provident common stock for each share of Sterling Bancorp common stock. Upon closing, Provident shareholders will own approximately 53% of stock in the combined company and Sterling Bancorp shareholders will own approximately 47%. On a pro forma combined basis, for the twelve months ended September 30, 2012, the companies had revenue of $253 million and $33 million in net income. Upon completion of the merger the combined company is expected to have approximately $6.5 billion in assets. The transaction, which has been approved by the boards of directors of both companies, is expected to close in the fourth calendar quarter of 2013. The transaction is subject to approval by shareholders from both companies, regulatory approval and other customary closing conditions.

15. Accumulated Other Comprehensive Income

Activity in accumulated other comprehensive income (loss) (“AOCI”), net of tax, for the six month period ended March 31, 2013 and 2012, was as follows:

	Unrealized gains(losses) on securities			Unrealized gains (losses) for pension and other post-retirement obligations			Total
Balance at September 30, 2011	$	13,604		$	(8,468	)	$	5,136
Period change	176			673			849
Balance at March 31, 2012	$	13,780		$	(7,795	)	$	5,985
Balance at September 30, 2012	$	15,066		$	(8,167	)	$	6,899
Other comprehensive income before reclassifications	(4,446		)	—			(4,446		)
Amounts reclassified from AOCI	(2,146		)	612			(1,534		)
Period change	(6,592		)	612			(5,980		)
Balance at March 31, 2013	$	8,474		$	(7,555	)	$	919

40

PROVIDENT NEW YORK BANCORP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in thousands, except per share data)

The following table presents the reclassification adjustments out of AOCI included in net income and the impacted line items on the income statement for the six months ended March 31, 2013:

Components of AOCI	Amount reclassified from AOCI (1)			Affected line item in the statement where net income is presented
Unrealized gains (losses) on available for sale securities
	$	3,645		Non-interest income - net gain on sale of securities
	(32		)	Non-interest income - net impairment loss in earnings
	3,613			Net change before tax
	(1,467		)	Tax expense
	$	2,146		Net change after tax
Amortization of defined benefit pension items
Actuarial loss	$	(1,031	)	Non-interest expense - compensation and employee benefits (2)
	(1,031		)	Total change before tax
	419			Tax benefit
	$	(612	)	Net change after tax

⁽¹⁾ Amounts in parentheses indicate debits in profit/loss.

⁽²⁾ These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 10 - Pensions and Other Post Retirement Benefits for additional details).

41

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

We make statements in this Report, and we may from time to time make other statements, regarding our outlook or expectations for earnings, revenues, expenses and/or other financial, business or strategic matters regarding or affecting Provident New York Bancorp that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project” and other similar words and expressions or future or conditional verbs such as “will,” “should,” “would,” “could,” or “may.” These statements are not historical facts, but instead represent our current expectations, plans or forecasts and are based on the beliefs and assumptions of the management and the information available to management at the time that these disclosures were prepared.

Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made. We do not assume any duty and do not undertake to update our forward-looking statements. Because forward-looking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those that we anticipated in our forward-looking statements and future results could differ materially from our historical performance.

The following factors, among others, could cause our future results to differ materially from the plans, objectives, goals, expectations, anticipations, estimates and intentions expressed in the forward-looking statements:

• legislative and regulatory changes such as the Dodd-Frank Act and its implementing regulations that adversely affect our business including changes in regulatory policies and principles or the interpretation of regulatory capital or other rules;

• a deterioration in general economic conditions, either nationally, internationally, or in our market areas, including extended declines in the real estate market and constrained financial markets;

• the effects of and changes in monetary and fiscal policies of the Board of Governors of the Federal Reserve System and the U.S. Government;

• our ability to make accurate assumptions and judgments about an appropriate level of allowance for loan losses and the collectibility of our loan portfolio, including changes in the level and trend of loan delinquencies and write-offs that may lead to increased losses and non-performing assets in our loan portfolio, result in our allowance for loan losses not being adequate to cover actual losses, and require us to materially increase our reserves;

• our use of estimates in determining fair value of certain of our assets, which estimates may prove to be incorrect and result in significant declines in valuation;

• ability to obtain regulatory approvals and meet other closing conditions to the merger (the “Merger”) between the Company and Sterling Bancorp ( “Sterling”), including approval by the Company and Sterling shareholders, on the expected terms and schedule;

• delay in closing the Merger;

• difficulties and delays in integrating the Company and Sterling businesses or fully realizing cost savings and other benefits;

• business disruption following the proposed Merger;

• changes in the Company’s stock price before completion of the Merger, including as a result of the financial performance of Sterling prior to closing;

• the reaction to the Merger of the companies’ customers, employees and counterparties;

• changes in the levels of general interest rates, and the relative differences between short and long-term interest rates, deposit interest rates, our net interest margin and funding sources;

• computer systems on which we depend could fail or experience a security breach, implementation of new technologies may not be successful; and our ability to anticipate and respond to technological changes can affect our ability to meet customer needs;

• changes in other economic, competitive, governmental, regulatory, and technological factors affecting our markets, operations, pricing, products, services and fees;

42

• our Company’s ability to successfully implement growth, expense reduction and other strategic initiatives and to complete merger and acquisition activities and realize expected strategic and operating efficiencies associated with such matters;

• our success at managing the risks involved in the foregoing and managing our business; and

• the timing and occurrence or non-occurrence of events that may be subject to circumstances beyond our control.

Additional factors that may affect our results are discussed in our annual report on Form 10-K under “Item 1A, Risk Factors” and elsewhere in this Report under “Part II. Item IA, Risk Factors” or in other filings with the SEC. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.

The following commentary presents management’s discussion and analysis of financial condition and results of operations and is intended to assist the reader in understanding our financial condition and results of operations. The following discussion and analysis should be read in conjunction with our consolidated financial statements and the accompanying notes included in Part I, Item I of this document and with our consolidated financial statements and the accompanying notes and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the 2012 Annual Report on Form 10-K. Operating results discussed herein are not necessarily indicative of the results of any future period. Tax-equivalent adjustments are the result of increasing income from tax-exempt securities by an amount equal to the federal taxes that would be paid if the income were fully taxable based on a 35.0% marginal effective income tax rate.

Critical Accounting Policies

Our accounting and reporting policies are prepared in accordance with accounting principles generally accepted in the United States of America and conform to general practices within the banking industry. Accounting policies considered critical to our financial results include the allowance for loan losses, accounting for goodwill and other intangible assets, accounting for deferred income taxes and the recognition of interest income. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. While the Company bases estimates on historical experience, current information and other factors deemed to be relevant, actual results could differ from those estimates.

Allowance for Loan Losses. The methodology for determining the allowance for loan losses is considered by the Company to be a critical accounting policy due to the high degree of judgment involved, the subjectivity of the assumptions utilized and the potential for changes in the economic environment that could result in changes to the amount of the allowance for loan losses considered necessary. We evaluate our loans at least quarterly, and review their risk components as a part of that evaluation. See our Annual Report on Form 10-K, Note 1, “Basis of Financial Statement Presentation and Summary of Significant Accounting Policies” in our “Notes to Consolidated Financial Statements” for a discussion of the risk components. We consistently review the risk components to identify any changes in trends.

Goodwill and Other Intangible Assets. The Company accounts for goodwill and other intangible assets in accordance with GAAP, which, in general, requires that goodwill not be amortized, but rather that it be tested for impairment at least annually at the reporting unit level using the two step approach. Testing for impairment of goodwill and intangible assets is performed annually and involves the identification of reporting units and the estimation of fair values. The estimation of fair values involves a high degree of judgment and subjectivity in the assumptions used.  Changes in the local and national economy, the federal and state legislative and regulatory environments for financial institutions, the stock market, interest rates and other external factors (such as natural disasters or significant world events) may occur from time to time, often with great unpredictability, and may materially impact the fair value of publicly traded financial institutions and could result in an impairment charge at a future date.

We also use judgment in the valuation of other intangible assets. A core deposit intangible asset has been recorded for core deposits (defined as checking, money market and savings deposits) that were acquired in acquisitions that were accounted for as purchase business combinations. The core deposit intangible asset has been recorded using the assumption that the acquired deposits provide a more favorable source of funding than more expensive wholesale borrowings. An intangible asset has been recorded for the present value of the difference between the expected interest to be incurred on these deposits and interest expense that would be expected if these deposits were replaced by wholesale borrowings, over the expected lives of the core deposits. If we determine these deposits have a shorter life than was estimated, we will write down the asset by expensing the amount that is impaired.

Income Taxes. We use the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. If current available information raises doubt as to the realization of the deferred tax assets, a valuation allowance is established. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. We exercise significant judgment in evaluating the amount and timing of recognition of the resulting tax liabilities and

43

assets, including projections of future taxable income. These judgments and estimates are reviewed on a continual basis as regulatory and business factors change.

Interest income. Interest income on loans, securities and other interest-earning assets is accrued monthly unless the Company considers the collection of interest to be doubtful. Loans are placed on non-accrual status when payments are contractually past due 90 days or more, or when we have determined that the borrower is unlikely to meet contractual principal or interest obligations, unless the assets are well secured and in the process of collection. At such time, unpaid interest is reversed by charging interest income for interest in the current fiscal year or the allowance for loan losses with respect to prior year income. Interest payments received on non-accrual loans (including impaired loans) are not recognized as income unless future collections are reasonably assured. Loans are returned to accrual status when collectability is no longer considered doubtful.

Overview and Management Strategy

Provident New York Bancorp is headquartered in Montebello, New York. With $3.7 billion in assets, we are a growing financial services firm that specializes in the delivery of services and solutions to business owners, their families and consumers in communities within the greater New York metropolitan area through teams of dedicated and experienced relationship managers. We offer a complete line of commercial, business and consumer banking products and services. Our financial condition and results of operations are discussed herein on a consolidated basis with the Bank. References to Provident New York Bancorp, we, us, or the Company may signify the Bank, depending on the context.

We focus our efforts on generating core deposits, especially transaction accounts, and originating high quality loans with an emphasis on growing our commercial loan balances. We seek to maintain a disciplined pricing strategy on deposits that will allow us to compete for high quality loans while maintaining an appropriate spread over funding costs. Our strategic objectives include growing revenues and earnings by expanding client acquisitions, improving asset quality and increasing efficiency. To achieve these goals we are focusing on high value client segments, expanding our delivery and distribution channels, creating a high productivity performance culture, closely monitoring operating costs and proactively managing enterprise risk.

Our current target markets encompass New York City including Manhattan and Long Island; our Central Market, which consists of Rockland and Westchester counties in New York and Bergen county in New Jersey; and our Northern Market, which consists of Orange, Sullivan, Ulster, and Putnam counties in New York. Our goal is to create a regional bank operating in the greater New York metropolitan area that achieves top-tier performance on key metrics including return on equity, return on assets and earnings per share growth.

On April 4, 2013 we announced a merger agreement with Sterling Bancorp (NYSE: STL). This merger presents an opportunity to continue building a high performing institution and is a significant step in our strategy of expanding within the greater New York metropolitan area. We expect the merger will create a larger, more diversified company and will allow us to accelerate the build-out of our differentiated strategy targeting small-to-middle market commercial and consumer clients.

In the merger, which is a stock-for-stock transaction valued at approximately $344 million based on the closing price of Provident common stock on April 3, 2013, Sterling Bancorp shareholders will receive a fixed ratio of 1.2625 shares of Provident common stock for each share of Sterling Bancorp common stock. Upon closing, Provident shareholders will own approximately 53% of stock in the combined company, and Sterling Bancorp shareholders will own approximately 47%. On a pro forma combined basis, for the twelve months ended September 30, 2012, the companies had revenue of $253 million and $33 million in net income. Upon completion of the merger the combined company is expected to have approximately $6.5 billion in assets. The merger is expected to generate approximately $34 million in fully phased-in annual cost savings or approximately 18% of the expected combined expense total. The merger is expected to be accretive to Provident earnings per share in 2014, excluding the impact of the potential revenue enhancement opportunities. The transaction, which has been approved by the boards of directors of both companies, is expected to close in the fourth calendar quarter of 2013. The transaction is subject to approval by shareholders from both companies, regulatory approval and other customary closing conditions.

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	As of or for the three months ended March 31,						As of or for the six months ended March 31,
	2013			2012			2013			2012
Per Common Share Data
Earnings, basic and diluted	$	0.15		$	0.15		$	0.31		$	0.31
Book value	11.15			11.60			11.15			11.60
Tangible book value (1)	7.33			7.25			7.33			7.25
Dividends declared per share	0.06			0.06			0.12			0.12
Performance Ratios (annualized)
Return on average assets	0.70		%	0.73		%	0.72		%	0.74		%
Return on average equity	5.37			5.22			5.52			5.25
Return on average tangible equity (1)	8.21			8.36			8.46			8.46
Core operating efficiency (1)	64.6			67.9			63.8			67.8
Balance Sheet Data (dollars in thousands)
Total assets	$	3,710,440		$	3,210,871		$	3,710,440		$	3,210,871
Total securities	1,129,213			1,027,541			1,129,213			1,027,541
Total loans	2,204,555			1,799,112			2,204,555			1,799,112
Allowance for loan losses	27,544			27,787			27,544			27,787
Total goodwill and intangible assets	169,655			164,862			169,655			164,862
Deposits	2,799,658			2,368,988			2,799,658			2,368,988
Borrowings	367,976			313,849			367,976			313,849
Stockholders’ equity	494,711			439,699			494,711			439,699
Tangible equity (1)	325,056			274,837			325,056			274,837
Income Statement Data (dollars in thousands)
Net interest income	$	27,819		$	23,905		$	55,742		$	47,143
Provision for loan losses	2,600			2,850			5,550			4,800
Non-interest income	6,852			7,971			14,511			15,147
Non-interest expense	23,339			21,290			45,885			42,011
Net income	6,529			5,701			13,549			11,418
Capital
Tangible equity as a % of tangible assets (1)	9.18		%	9.02		%	9.18		%	9.02		%
Asset Quality (dollars in thousands)
Non-performing loans (NPLs): non-accrual	$	27,019		$	47,269		$	27,019		$	47,269
Non-performing loans (NPLs): still accruing	4,257			4,693			4,257			4,693
Other real estate owned	5,486			5,828			5,486			5,828
Non-performing assets (NPAs)	36,762			57,790			36,762			57,790
Net charge-offs	3,170			3,308			6,288			4,930
Net charge-offs as a % of average loans (annualized)	0.58		%	0.74		%	0.58		%	0.56		%
NPLs as a % of total loans	1.42			2.89			1.42			2.89
NPAs as a % of total assets	0.99			1.80			0.99			1.80
Allowance for loan losses as a % of NPLs	88.1			53.5			88.1			53.5
Allowance for loan losses as a % of total loans	1.25			1.54			1.25			1.54

⁽¹⁾ See reconciliation of non-GAAP measure on page 55.

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Summary

The key highlights as of and for the six months ended March 31, 2013 included the following:

• Net income of $13.5 million, which represents an increase of 18.7% compared to the six months ended March 31, 2012.

• Loan originations of $544.3 million.

• Total loans reached $2.2 billion, representing growth of $85.1 million compared to September 30, 2012.

• Commercial & industrial and commercial real estate loans increased $103.9 million, or 15% on an annualized basis compared to September 30, 2012.

• The allowance for loan losses to non-performing loans increased to 88.1% at March 31, 2013 from 71.0% at September 30, 2012.

• Deposits declined $311.5 million at March 31, 2013 compared to September 30, 2012, due to a decline in municipal deposits given elevated levels of municipal deposits at the Company’s fiscal year end as a result of seasonal factors.

• Return on average tangible equity, a non-GAAP measure, was 8.46% for the six months ended March 31, 2013 compared to 8.46% for the six months ended March 31, 2012 (see page 55 for non-GAAP reconciliation of return on tangible equity).

• Return on average assets was 0.72% for the six months ended March 31, 2013 compared to 0.74% for the six months ended March 31, 2012.

• The efficiency ratio, a non-GAAP measure, improved to 63.8% for the six months ended March 31, 2013 compared to 67.8% for the six months ended March 31, 2012.

Comparison of Financial Condition at March 31, 2013 and September 30, 2012

Total assets as of March 31, 2013 decreased $312.5 million or 7.77% from September 30, 2012 mainly related to a decrease in our cash balance of $364.6 million. Our cash balance at September 30, 2012 was elevated due to municipal tax collections that were subsequently drawn down.

Total securities decreased by $24.0 million, to $1.1 billion at March 31, 2013 as compared to September 30, 2012. Due to the decrease in total assets, securities represented 30.4% of total assets at March 31, 2013 compared to 28.7% at September 30, 2012. Over time, we expect securities will decline as a percentage of total assets as we continue to grow our loan portfolio. For the six months ended March 31, 2013, securities purchases were $290.8 million, sales of securities were $138.0 million, and maturities, calls, and repayments were $167.6 million. A decrease in unrealized gains decreased the carrying values of securities by $11.1 million. Securities gains net of OTTI losses were $3.6 million and net amortization of securities premiums was $1.8 million for the six months ended March 31, 2013. We are focusing our securities purchases on 5-8 year duration municipal and corporate securities in order to diversify our investment portfolio.  At March 31, 2013, the investment portfolio weighted average duration was 4.49 years and the yield was 2.32% and 2.31% for the three month and six month periods ended March 31, 2013, respectively.

Net loans as of March 31, 2013 were $2.2 billion, which represented an $85.8 million increase relative to September 30, 2012. Growth in commercial real estate and commercial & industrial loans was the main driver, as the balance in these loan categories increased $103.9 million. The Company has expanded its market reach in the greater New York metropolitan area by deploying a team-based relationship and distribution strategy. The success of our team-based approach is allowing us to better serve our small to middle market commercial clients and is driving our loan growth. Including loans originated for sale, the Company originated $544.3 million loans for the six months ended March 31, 2013, while repayments were $458.7 million.

Credit Quality (also see Note 3 to the consolidated financial statements)

Loans acquired in connection with the acquisition of Gotham Bank in August 2012 were recorded at fair value at the date of acquisition. These loans totaled $176.4 million at March 31, 2013 compared to $205.8 million at September 30, 2012. Factors that went into the determination of fair value of the acquired loans included adjustments related to interest rates and expected credit losses. There had been no amounts charged-off against this discount for the six months ended March 31, 2013. None of the Gotham Bank acquired loans were considered purchased credit impaired loans.

Our non-performing loans decreased $8.5 million during the six months ended March 31, 2013 to $31.3 million. The decrease was mainly driven by declines in acquisition development and construction (“ADC”) non-performing loans of $11.1 million, which was principally the result of the resolution of one significant relationship. Partially offsetting this decline were increases in non-performing commercial real estate loans of $1.6 million, and non-performing consumer loans of $767 thousand.

Classified loans are loans rated substandard or lower in the Company’s risk rating system. Classified loans declined $18.0 million to $70.7 million at March 31, 2013 compared to $88.7 million at September 30, 2012. This represents 3.21% of the loan portfolio at March 31, 2013 compared to 4.18% of the loan portfolio at September 30, 2012.

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Allowance for loan losses. Under accounting guidance established for business combinations, acquired loans are recorded at fair value with no loan loss allowance on the date of acquisition. A loan loss allowance is recorded by the Company for the emergence of new probable and estimable loan losses on acquired loans that were not impaired as of the acquisition date. Because of this accounting requirement certain measures of loan loss allowance and related metrics are not comparable to periods prior to the acquisition date.

The allowance for loan losses was $27.5 million at March 31, 2013 compared to $28.3 million at September 30, 2012. The allowance represented 1.25% of total loans at March 31, 2013 compared to 1.33% of total loans at September 30, 2012. The allowance as a percentage of total loans for the prior two quarters is lower than it was previously due mainly to the acquisition of loans from Gotham that were recorded at fair value and for which there continues to be no allowance for loan losses, and to our continued efforts in reducing non-performing loan balances.

The allowance for loan losses to non-performing loans equaled 88.1% at March 31, 2013, compared to 71.0% at September 30, 2012. Net charge-offs for the six months ended March 31, 2013 were $6.3 million. The majority of charge-offs were driven by ADC loans, which totaled $2.0 million, and charge-offs in residential mortgage loans, which totaled $1.8 million. The ADC charge-offs were mainly related to the resolution of one significant relationship and the residential mortgage charge-offs were the result of updated appraisal information on certain loans.

Loans transferred to foreclosed properties for the six months ended March 31, 2013 were $2.0 million. This was partially offset by sales and write-downs of $2.9 million and resulted in a foreclosed properties balance of $5.5 million at March 31, 2013, compared to $6.4 million at September 30, 2012.

ADC loans declined $25.9 million to $118.1 million compared to $144.1 million at September 30, 2012, reflecting the Company’s de-emphasis on originations of this type of loan.

Deposits as of March 31, 2013 were $2.8 billion, a decrease of $311.5 million, or 10.0%, from September 30, 2012. As of March 31, 2013 transaction accounts were 38.2% of deposits, or $1.1 billion compared to $1.4 billion or 44.9% of deposits at September 30, 2012. As of March 31, 2013, savings deposits were $549.4 million, an increase of $42.9 million or 8.47% from September 30, 2012. Money market accounts increased $11.5 million or 1.40% to $833.2 million at March 31, 2013. Certificates of deposit accounts decreased by $40.1 million or 10.4%. Municipal deposits were $537.1 million at March 31, 2013 compared to $901.7 million at September 30, 2012. Municipal deposits reach peak volumes in connection with tax payments collected during the month of September. Excluding municipal deposits, deposits increased $53.2 million during the six months ended March 31, 2013. Our banking teams are driving our core deposit growth.

Borrowings increased by $22.8 million or 6.61%, from September 30, 2012 to $368.0 million, due primarily to an increase in short-term advances from the FHLB. The new short-term advances were utilized principally to fund a portion of the decline in municipal deposits. At March 31, 2013, the balance of the discount associated with our long-term FHLB borrowings that will accrete as additional interest expense over the remaining term of the instruments was $2.2 million.

Stockholders’ equity increased $3.6 million from September 30, 2012 to $494.7 million at March 31, 2013. The change was mainly due to retained earnings of $8.2 million and treasury stock transactions of $1.7 million. This was partially offset by a decrease in accumulated other comprehensive income of $6.0 million.

As of March 31, 2013, the Company had authorization to purchase up to an additional 776,713 shares of common stock; however, at this time the Company has no plans to acquire any of its shares for the remainder of this fiscal year. The Bank’s Tier 1 leverage ratio was 8.62% at March 31, 2013. The Company’s tangible equity as a percentage of tangible assets was 9.18% at March 31, 2013 (see non-GAAP reconciliation of tangible equity as a percentage of tangible assets on page 55).

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Comparison of Operating Results for the Three Months Ended March 31, 2013 and March 31, 2012

Net income for the three months ended March 31, 2013 was $6.5 million or $0.15 per diluted share, an increase of $828 thousand compared to $5.7 million or $0.15 per diluted share, for the three months ended March 31, 2012. Diluted earnings per share was unchanged between the periods due primarily to an increase in common shares outstanding as a result of the 6.3 million common shares the Company issued in August 2012 in connection with the Gotham acquisition. The primary factors contributing to the increase in net income for the current period were higher net interest income of $3.9 million or 16.4%. Also contributing to the increase in net income for the period was a reduction of $250 thousand in the provision for loan losses due to the continued improvement in asset quality. Partially offsetting these increases were a decline of $1.1 million, or 14.0%, in non-interest income and an increase of $2.0 million, or 9.6% in non-interest expense. The decline in non-interest income was the result of lower net gains on sale of securities of $670 thousand and lower investment management fees of $378 thousand. The increase in non-interest expense was the result of an increase in compensation and employee benefits, and related occupancy and office expense of $955 thousand associated with the hiring of new commercial banking teams; an increase of $503 thousand in foreclosed property expense as we exited several non-performing assets; and a $243 thousand increase in merger-related expense due to our pending merger with Sterling Bancorp.

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The following table sets forth the consolidated average balance sheets for the Company for the periods indicated. Also set forth is information regarding weighted average yields on interest-earning assets and weighted average rates paid on interest-bearing liabilities (dollars in thousands). 

	For the three months ended March 31,
	2013								2012
	Average outstanding balance			Interest			Average yield/ rate		Average outstanding balance			Interest			Average yield/ rate
Interest earning assets:
Commercial loans	$	1,593,003		$	19,801		5.04	%	$	1,167,620		$	14,600		5.03	%
Consumer loans	208,672			2,230			4.33		223,988			2,459			4.42
Residential mortgage loans	366,224			4,347			4.81		378,851			5,094			5.41
Total net loans(1)	2,167,899			26,378			4.93		1,770,459			22,153			5.03
Securities-taxable	967,889			4,288			1.80		799,753			4,415			2.22
Securities-tax exempt(2)	181,803			2,292			5.11		185,062			2,460			5.35
Federal Reserve balances	66,096			39			0.24		17,604			9			0.21
Other earning assets	19,522			225			4.67		19,164			235			4.92
Total securities and other earning assets	1,235,310			6,844			2.25		1,021,583			7,119			2.80
Total interest earning assets	3,403,209			33,222			3.96		2,792,042			29,272			4.22
Non-interest earning assets	401,451								339,812
Total assets	$	3,804,660							$	3,131,854
Interest bearing liabilities:
NOW deposits	$	508,129		124			0.10	%	$	389,846		106			0.11	%
Savings, club and escrow deposits	575,380			314			0.22		463,971			66			0.06
Money market deposits	877,101			652			0.30		654,013			430			0.26
Certificates of deposit	355,917			534			0.61		284,737			615			0.87
Total interest bearing deposits	2,316,527			1,624			0.28		1,792,567			1,217			0.27
Borrowings	345,717			2,977			3.49		375,765			3,289			3.52
Total interest bearing liabilities	2,662,244			4,601			0.70		2,168,332			4,506			0.84
Non-interest bearing deposits	641,194								503,539
Other non-interest bearing liabilities	8,497								20,599
Total liabilities	3,311,935								2,692,470
Stockholders’ equity	492,725								439,384
Total liabilities and equity	$	3,804,660							$	3,131,854
Net interest rate spread							3.26	%							3.38	%
Net earning assets	$	740,965							$	623,710
Net interest margin				28,621			3.41	%				24,766			3.57	%
Less tax equivalent adjustment(2)				(802		)						(861		)
Net interest income				$	27,819							$	23,905
Ratio of average interest earning assets to average interest bearing liabilities	127.8		%						128.8		%

(1)	Includes non-accrual loans.
(2)	Reflects tax equivalent adjustment for tax exempt income based on a 35% federal rate.

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The table below details the changes in interest income and interest expense for the periods indicated due to both changes in average outstanding balances and changes in average interest rates (dollars in thousands):

	For the three months ended March 31, 2013 vs. 2012 Increase / (decrease) due to
	Volume(1)			Rate(1)			Total
Interest earning assets:
Commercial loans	$	5,173		$	28		$	5,201
Consumer loans	(177		)	(52		)	(229		)
Residential mortgage loans	(173		)	(574		)	(747		)
Securities-taxable	817			(944		)	(127		)
Securities-tax exempt(2)	(48		)	(120		)	(168		)
Federal Reserve excess reserves	29			1			30
Other earning assets	4			(14		)	(10		)
Total interest income	5,625			(1,675		)	3,950
Interest-bearing liabilities:
NOW deposits	29			(11		)	18
Savings, club and escrow deposits	21			227			248
Money market deposits	153			69			222
Certificates of deposit	132			(213		)	(81		)
Borrowings	(188		)	(124		)	(312		)
Total interest expense	147			(52		)	95
Net interest margin	5,478			(1,623		)	3,855
Less tax equivalent adjustment(2)	(17		)	(42		)	(59		)
Net interest income	$	5,495		$	(1,581	)	$	3,914

(1)	Changes due to increases in both rate and volume have been allocated proportionately to rate and volume.
(2)	Reflects tax equivalent adjustment for tax-exempt income based on a 35% federal rate.

Net interest income for the three months ended March 31, 2013 was $27.8 million , an increase of $3.9 million or 16.4%, compared to the same quarter of fiscal 2012. Gross interest income on a tax-equivalent basis of $33.2 million increased $4.0 million for the quarter ended March 31, 2013 compared to the same period in fiscal 2012. The increase in interest income on a tax-equivalent basis was principally the result of an increase in the average daily balance of commercial loans due to a combination of the loans acquired from Gotham Bank and new loans originated by our commercial banking teams. Interest expense increased by $95 thousand, primarily the result of increased levels of average interest bearing liabilities assumed in the Gotham acquisition and the deposits generated by our commercial banking teams.

The Company’s net interest margin declined 16 basis points to 3.41% for the three months ended March 31, 2013 compared to 3.57% for the three months ended March 31, 2012. Total interest earning assets on a tax-equivalent basis yielded 3.96% for the second fiscal quarter of 2013 compared to 4.22% for the second fiscal quarter of 2012. The decline in net interest margin was due to a decline in the yield on total loans of 10 basis points, to 4.93% for the three months ended March 31, 2013, and a 55 basis points decline in the yield on total securities and other earning assets, which was 2.25% for the three months ended March 31, 2013. The decline in interest earning asset yields is reflective of the current interest rate environment. The cost of interest bearing liabilities declined 14 basis points to 70 basis points for the second fiscal quarter of 2013 compared to 84 basis points for the second fiscal quarter of 2012. The decline was due mainly to maturities of higher cost certificates of deposit repricing to current market rates and a reduction in the average balance of borrowings.

Provision for loan losses. The Company records provisions for loan losses, which are charged to earnings, in order to maintain the allowance for loan losses at a level necessary to absorb probable and estimable incurred loan losses inherent in the existing portfolio as of period end. The provision for loan losses and resulting level of the allowance for loan losses is a critical accounting

50

estimate, which is subject to substantial fluctuation from period to period. The Company recorded $2.6 million in loan loss provisions for the quarter ended March 31, 2013 compared to $2.9 million at March 31, 2012, a decrease of $250 thousand. Please see the “Credit Quality” section for a discussion of the metrics associated with our loan portfolio.

Non-interest income for the three months ended March 31, 2013 decreased by $1.1 million or 14.0% to $6.9 million compared to second quarter of fiscal 2012. The decline in non interest income was primarily the result of lower net gain on sale of securities of $670 thousand and lower investment management fees of $378 thousand. During the second fiscal quarter of 2013, we have reinvested in a new title insurance joint venture which was launched in January 2013. We have also deployed a new wealth management strategy. We expect both of these initiatives will allow us to drive growth in non-interest income.

Non-interest expense for the three months ended March 31, 2013 increased $2.0 million to $23.3 million, which represented a 9.62% increase compared to the same period in 2012. The increase in non-interest expense was the result of additional compensation and benefits expense of $410 thousand due to the hiring of additional banking teams. Our occupancy expense increased $545 thousand, also associated with the increase in the number of our new banking teams. Foreclosed property expense increased $503 thousand to $915 thousand for the three months ended March 31, 2013. Foreclosed property expense was comprised of $688 thousand in write-downs on four properties and and $227 thousand in expenses associated with owning properties. Merger-related expenses increased $243 thousand to $542 thousand for the three months ended March 31, 2013; these increased expenses were incurred in connection with our pending merger with Sterling Bancorp.

Income taxexpense increased $168 thousand to $2.2 million for the three months ended March 31, 2013, compared to $2.0 million for the period ended March 31, 2012. The effective tax rate was 25.2% for the three months ended March 31, 2013 compared to 26.3% for the three months ended March 31, 2012. Our effective tax rate for the three months ended March 31, 2013 reflects our expectation of an increase in current and anticipated merger-related expense as well as the proportion of tax-exempt earnings to total earnings.

Comparison of Operating Results for the Six Months Ended March 31, 2013 and March 31, 2012

Net income for the six months ended March 31, 2013 was $13.5 million or $0.31 per diluted share, an increase of $2.1 million compared to $11.4 million or $0.31 per diluted share, for the six months ended March 31, 2012. Diluted earnings per share was unchanged between the periods due primarily to an increase in common shares outstanding as a result of the 6.3 million common shares the Company issued in August 2012 in connection with the Gotham acquisition. The primary factor contributing to the increase in earnings for the current period was higher net interest income of $8.6 million or 18.2%. Partially offsetting the increase in net interest income was a $750 thousand increase in the provision for loan losses, a $636 thousand reduction in non-interest income and a $3.9 million increase in non-interest income expense. The increase in provision for loan losses was based on our assessment of the adequacy of the allowance for loan losses and was impacted by a provision for a large ADC loan in the first fiscal quarter of 2013 that allowed us to exit a significant non-performing loan. Non-interest income declined $636 thousand due mainly to a $1.2 million reduction in net gain on sale of securities and partially offset by an increase in gain on sale of loans. The increase in non-interest expense was the result of an increase in compensation and employee benefits of $1.8 million; $654 thousand increase of occupancy and office expense both of which are related to the hiring of new banking teams; an increase of $583 thousand in foreclosed property expense as we exited several non-performing assets; and a $620 thousand increase in stock-based compensation expense.

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The following table sets forth the consolidated average balance sheets for the Company for the periods indicated. Also set forth is information regarding weighted average yields on interest-earning assets and weighted average rates paid on interest-bearing liabilities (dollars in thousands). 

	For the six months ended March 31,
	2013								2012
	Average outstanding balance			Interest			Average yield/ rate		Average outstanding balance			Interest			Average yield/ rate
Interest earning assets:
Commercial loans	$	1,578,976		$	40,149		5.10	%	$	1,132,356		$	28,845		5.09	%
Consumer loans	210,790			4,555			4.33		225,640			5,094			4.52
Residential mortgage loans	358,922			8,745			4.89		383,172			10,363			5.41
Total net loans(1)	2,148,688			53,449			4.99		1,741,168			44,302			5.09
Securities-taxable	961,057			8,572			1.79		747,741			8,405			2.25
Securities-tax exempt(2)	177,960			4,534			5.11		195,269			5,189			5.31
Federal Reserve balances	84,814			142			0.34		50,198			72			0.29
Other earning assets	19,399			455			4.70		18,948			427			4.51
Total securities and other earning assets	1,243,230			13,703			2.21		1,012,156			14,093			2.78
Total interest earning assets	3,391,918			67,152			3.97		2,753,324			58,395			4.24
Non-interest earning assets	406,444								343,674
Total assets	$	3,798,362							$	3,096,998
Interest bearing liabilities:
NOW deposits	$	488,441		249			0.10	%	$	394,390		270			0.14	%
Savings, club and escrow deposits	553,000			511			0.19		454,552			147			0.06
Money market deposits	892,853			1,583			0.36		615,491			827			0.27
Certificates of deposit	368,214			1,378			0.75		293,775			1,286			0.88
Total interest bearing deposits	2,302,508			3,721			0.32		1,758,208			2,530			0.29
Borrowings	345,836			6,102			3.54		384,321			6,906			3.59
Total interest bearing liabilities	2,648,344			9,823			0.74		2,142,529			9,436			0.88
Non-interest bearing deposits	645,179								502,072
Other non-interest bearing liabilities	12,225								17,163
Total liabilities	3,305,748								2,661,764
Stockholders’ equity	492,614								435,234
Total liabilities and equity	$	3,798,362							$	3,096,998
Net interest rate spread							3.23	%							3.36	%
Net earning assets	$	743,574							$	610,795
Net interest margin				57,329			3.39	%				48,959			3.56	%
Less tax equivalent adjustment (2)				(1,587		)						(1,816		)
Net interest income				$	55,742							$	47,143
Ratio of average interest-earning assets to average interest bearing liabilities	128.1		%						128.5		%

(1)	Includes non-accrual loans.
(2)	Reflects tax equivalent adjustment for tax exempt income based on a 35% federal rate.

52

The table below details the changes in interest income and interest expense for the periods indicated due to both changes in average outstanding balances and changes in average interest rates (dollars in thousands):

	For the six months ended March 31, 2013 vs. 2012 Increase / (decrease) due to
	Volume(1)			Rate(1)			Total
Interest earning assets:
Commercial loans	$	11,248		$	56		$	11,304
Consumer loans	(329		)	(210		)	(539		)
Residential mortgage loans	(642		)	(976		)	(1,618		)
Securities-taxable	2,101			(1,934		)	167
Securities-tax exempt(2)	(460		)	(195		)	(655		)
Federal Reserve excess reserves	56			14			70
Other earning assets	8			20			28
Total interest income	11,982			(3,225		)	8,757
Interest-bearing liabilities:
NOW deposits	62			(83		)	(21		)
Savings, club and escrow deposits	34			330			364
Money market deposits	434			322			756
Certificates of deposit	300			(208		)	92
Borrowings	(381		)	(423		)	(804		)
Total interest expense	449			(62		)	387
Net interest margin	11,533			(3,163		)	8,370
Less tax equivalent adjustment(2)	(161		)	(68		)	(229		)
Net interest income	$	11,694		$	(3,095	)	$	8,599

(1)	Changes due to increases in both rate and volume have been allocated proportionately to rate and volume.
(2)	Reflects tax equivalent adjustment for tax-exempt income based on a 35% federal rate.

Net interest income for the six months ended March 31, 2013 was $55.7 million, an increase of $8.6 million or 18.2% compared to the six months ended March 31, 2012. Gross interest income on a tax-equivalent basis of $67.2 million increased $8.8 million for the six months ended March 31, 2013 compared to the same period in fiscal 2012. The increase in interest income on a tax-equivalent basis was principally the result of an increase in the average daily balance of commercial loans, driven by our acquisition of Gotham Bank and new loans originated by our banking teams. Interest expense increased by $387 thousand primarily the result of increased levels of municipal money market deposits. Municipal deposits reach their peak volume in September, which results in increased average balances outstanding that were held at September 30, 2012 in transaction accounts and then were subsequently moved to interest bearing accounts. By March 31, 2013, a substantial portion of these deposits had been withdrawn; however, this increase had an impact on average deposit balances for the period.

The Company’s net interest margin declined 17 basis points to 3.39% for the six months ended March 31, 2013 compared to 3.56% for the six months ended March 31, 2012. Total interest earning assets on a tax-equivalent basis yielded 3.97% for the first six months of fiscal 2013 compared to 4.24% for the first six months of fiscal 2012, principally due to a decrease of 57 basis points in the weighted average yield on our investment securities. The cost of interest bearing deposits increased 3 basis points to 0.32 basis points for the first six months of fiscal 2013 compared to 0.29 basis points for the first six months of fiscal 2012. The increase was mainly the result of an increase in the average volume of higher cost deposits including certificates of deposit and money market accounts.

Provision for loan losses. The Company records provisions for loan losses, which are charged to earnings, in order to maintain the allowance for loan losses at a level necessary to absorb probable and estimable incurred loan losses inherent in the existing portfolio as of period end. The Company recorded $5.6 million in loan loss provisions for the six month period ended March 31,

53

2013 compared to $4.8 million for the six month period ended March 31, 2012, an increase of $750 thousand. Please see the “Credit Quality” section for a discussion of the metrics associated with our loan portfolio.

Non-interest income for the six months ended March 31, 2013 decreased by $636 thousand; this represented a 4.20% decrease to $14.5 million compared to the six months ended March 31, 2012. Non-interest income declined mainly due to a $1.2 million reduction in net gain on sale of securities. Also contributing to the decline for the first six months of fiscal 2013 was $438 thousand in lower investment management fees, which was discussed above in “Comparison of Operating Results for the three months ended March 31, 2013 and March 2012 - Non-interest income. Partially offsetting these declines were higher gain on sale of loans of $363 thousand and other loan fees included in other non-interest income, which increased by approximately $621 thousand due to higher loan transaction volumes.

Non-interest expense for the six months ended March 31, 2013 increased by 9.22% or $3.9 million, to $45.9 million compared to the same period in 2012. The increase in non-interest expense was principally the result of additional compensation and benefits expense of $1.8 million and a $654 thousand increase in occupancy and office operation expense both of which are related to the hiring of new banking teams; an increase of $583 thousand in foreclosed property expense as we exited non-performing assets; and a $620 thousand increase in stock-based compensation expense due to grants awarded to management and directors.

Income taxexpense increased $1.2 million to $5.3 million for the six months ended March 31, 2013, compared to $4.1 million for the six month period ended March 31, 2012. The effective tax rate was 28.0% for the first half of fiscal 2013 compared to 26.2% for the first half of fiscal 2012. The increase in the effective tax rate is attributable to higher pre-tax earnings and a reduction in the proportion of tax-exempt earnings from investment securities and bank owned life insurance.

54

The Company provides supplemental reporting of non-GAAP measures as management believes this information is useful to investors.

	As of or for the three months ended March 31,						As of or for the six months ended March 31,
	2013			2012			2013			2012
Reconciliation of return on average tangible equity (dollars in thousands):
Average stockholders’ equity	$	492,725		$	439,384		$	492,614		$	435,234
Average goodwill and other amortizable intangibles	(170,042		)	(165,045		)	(171,396		)	(165,203		)
Average tangible stockholders’ equity	322,683			274,339			321,218			270,031
Net income	6,529			5,701			13,549			11,418
Net income (annualized)	26,479			22,929			27,172			22,836
Return on average tangible equity	8.21		%	8.36		%	8.46		%	8.46		%
Reconciliation of the core operating efficiency ratio (dollars in thousands) :
Net interest income	$	27,819		$	23,905		$	55,742		$	47,143
Non-interest income	6,852			7,971			14,511			15,147
Total net revenues	34,671			31,876			70,253			62,290
Tax equivalent adjustment on securities interest income	802			861			1,587			1,816
Net gain on sale of securities	(2,229		)	(2,899		)	(3,645		)	(4,888		)
Net gain on sale of fixed assets	—			—			(5		)	—
Other than temporary loss on securities	7			—			32			38
Other (other gains and fair value loss on interest rate caps)	—			40			1			43
Core total revenues	33,251			29,878			68,223			59,299
Non-interest expense	23,339			21,290			45,885			42,011
Merger-related expense	(542		)	(299		)	(542		)	(546		)
Foreclosed property expense	(915		)	(412		)	(1,200		)	(617		)
Amortization of intangible assets	(388		)	(305		)	(649		)	(628		)
Core non-interest expense	21,494			20,274			43,494			40,220
Core operating efficiency ratio	64.6		%	67.9		%	63.8		%	67.8		%
The core operating efficiency ratio reflects total revenues inclusive of the tax equivalent adjustment on municipal securities and excludes securities gains, other than temporary impairments and other adjustments shown above. Core non-interest expense is adjusted to exclude the effect of foreclosed property expense and amortization of intangible assets.
Reconciliation of stockholders’ equity to tangible equity and the tangible equity ratio (dollars in thousands):
Total assets							$	3,710,440		$	3,210,871
Goodwill and other amortizable intangibles							(169,655		)	(164,862		)
Tangible assets							3,540,785			3,046,009
Stockholders’ equity							494,711			439,699
Goodwill and other intangible assets							(169,655		)	(164,862		)
Tangible stockholders’ equity							325,056			274,837
Shares of common stock outstanding at period end							44,353,276			37,899,007
Tangible equity as a % of tangible assets							9.18		%	9.02		%
Tangible book value per share							$	7.33		$	7.25

55

Liquidity and Capital Resources

The overall objective of our liquidity management is to ensure the availability of sufficient cash funds to meet all financial commitments and to take advantage of investment opportunities. We manage liquidity in order to meet deposit withdrawals on demand or at contractual maturity, to repay borrowings as they mature, and to fund new loans and investments as opportunities arise.

Our primary sources of funds are deposits, principal and interest payments on loans and securities, wholesale borrowings, the proceeds from maturing securities and short-term investments, and the proceeds from the sales of loans and securities. The scheduled amortizations of loans and securities, as well as proceeds from borrowings, are predictable sources of funds. Other funding sources, however, such as deposit inflows, mortgage prepayments and mortgage loan sales are greatly influenced by market interest rates, economic conditions and competition.

Our cash flows are derived from operating activities, investing activities and financing activities as reported in the Consolidated Statements of Cash Flows in our consolidated financial statements. Our primary investing activities are the origination of commercial loans and residential mortgage loans, and the purchase of investment securities. During the six months ended March 31, 2013 and 2012, our loan originations totaled $544.3 million and $398.2 million, respectively. Purchases of securities available for sale totaled $209.0 million and $261.8 million for the six months ended March 31, 2013 and 2012, respectively. Purchases of securities held to maturity totaled $81.8 million and $77.1 million for the six months ended March 31, 2013 and 2012, respectively. These activities were funded primarily by sales of securities, deposit growth, borrowings and by principal repayments on loans and securities. Loan origination commitments totaled $219.8 million at March 31, 2013 and unused lines of credit granted to customers were $105.5 million at March 31, 2013. We anticipate that we will have sufficient funds available to meet current loan commitments and lines of credit.

The Company’s investments in bank owned life insurance (“BOLI”) policies are considered illiquid and are therefore classified as other assets. Earnings from BOLI are derived from the net increase in cash surrender value of the BOLI contracts and the proceeds from the payment on the insurance policies, if any. The recorded value of BOLI contracts totaled $59.9 million and $59.0 million at March 31, 2013 and September 30, 2012, respectively.

Deposit flows are generally affected by the level of market interest rates, the interest rates and other conditions on deposit products offered by our banking competitors, seasonal fluctuations related to municipal deposits and other factors. The net change in total deposits was a decrease of $311.5 million and an increase of $72.3 million for the six months ended March 31, 2013 and 2012, respectively. The decline in the first six months of the 2013 fiscal year is principally related to seasonal fluctuations in municipal deposits, which generally peak in September and are subsequently withdrawn. Based upon prior experience and our current pricing strategy, management believes that a majority of our deposits are core deposits and as such these deposits are expected to remain with us. Our relationship based banking teams provide a full range of services to our clients, and a high emphasis is placed on the generation and retention of core deposits. We compete in a highly competitive financial services marketplace, and we may be required to compete for certain deposits based on the interest rate we offer in addition to the quality of our services. The preference of depositors to invest their funds in deposit products subject to immediate withdrawal could lead to potential liquidity reductions in the future if we do not raise interest rates to retain these funds.

The Bank has substantial liquidity. In addition to the liquidity on our Statement of Condition, Provident Bank has access to additional sources of funds through the FHLB. Borrowings from FHLB and other borrowings totaled $368.0 million at March 31, 2013. At March 31, 2013, we had the ability to borrow an additional $486.4 million million under our credit facilities with the FHLB. The Bank may borrow up to an additional $369.5 million by pledging securities not required to be pledged for other purposes as of March 31, 2013. Further, at March 31, 2013 we had $36.8 million in brokered deposits and have relationships with several brokers to access these low cost sources of funding should conditions warrant.

The Company has an effective shelf registration statement covering $29 million of debt and equity securities that may be used, subject to Board authorization and market conditions, to issue equity or debt securities in an expedited manner. In addition, the Board has authorized management to file a new replacement shelf registration statement covering $150 million of debt and equity securities. While we seek to preserve flexibility with respect to cash requirements, there can be no assurance that market conditions would permit us to sell securities on acceptable terms at any given time or at all.

The Company declared a dividend of $0.06 per share payable on May 16, 2013 to stockholders of record on May 6, 2013.

The following table sets forth the Bank’s regulatory capital position at March 31, 2013 and September 30, 2012, compared to OCC requirements:

56

					OCC requirements
	Bank actual				Minimum capital adequacy				Classification as well-capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
March 31, 2013
Tier 1 (core) capital	$	304,696	8.62	%	$	141,440	4.00	%	$	176,800	5.00	%
Risk-based capital:
Tier 1	304,696		12.41		—		—		147,268		6.00
Total	$	332,447	13.54	%	$	196,358	8.00	%	$	245,447	10.00	%
September 30, 2012
Tier 1 (core) capital	$	289,441	7.50	%	$	153,469	4.00	%	$	191,836	5.00	%
Risk-based capital:
Tier 1	289,441		12.10		—		—		143,085		6.00
Total	$	317,929	13.30	%	$	190,780	8.00	%	$	238,475	10.0	%

The Bank’s capital levels are above current regulatory capital requirements to be considered well-capitalized.

We expect to raise approximately $80 million through a debt offering prior to the closing of the merger with Sterling and we anticipate using the net proceeds to fund a capital contribution to the Bank, redeem Sterling’ s trust preferred securities and for general corporate purposes.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Management believes that our most significant form of market risk is interest rate risk. The general objective of our interest rate risk management is to determine the appropriate level of risk given our business strategy, and then manage that risk in a manner that is consistent with our policy to limit the exposure of our net interest income to changes in market interest rates. Provident Bank’s Asset/Liability Management Committee (“ALCO”), which consists of certain members of senior management, evaluates the interest rate risk inherent in certain assets and liabilities, our operating environment, and capital and liquidity requirements, and modifies our lending, investing and deposit gathering strategies accordingly. A committee of the Board of Directors reviews the ALCO’s activities and strategies, the effect of those strategies on our net interest margin, and the effect that changes in market interest rates would have on the economic value of our loan and securities portfolios as well as the intrinsic value of our deposits and borrowings.

We actively evaluate interest rate risk in connection with our lending, investing, and deposit activities. We emphasize the origination of commercial mortgage loans, commercial & industrial loans, and residential fixed-rate mortgage loans that are repaid monthly and bi-weekly, adjustable-rate residential and consumer loans. Depending on market interest rates and our capital and liquidity position, we may retain all of the fixed-rate, fixed-term residential mortgage loans that we originate or we may sell or securitize all, or a portion of such longer-term loans, generally on a servicing-retained basis. We also invest in shorter-term securities, which generally have lower yields compared to longer-term investments. Shortening the average maturity of our interest-earning assets by increasing our investments in shorter-term loans and securities may help us to better match the maturities and interest rates of our assets and liabilities, thereby reducing the exposure of our net interest income to changes in market interest rates. These strategies may adversely affect net interest income due to lower initial yields on these investments in comparison to longer-term, fixed-rate loans and investments.

Management monitors interest rate sensitivity primarily through the use of a model that simulates net interest income (“NII”) under varying interest rate assumptions. Management also evaluates this sensitivity using a model that estimates the change in the Company and the Bank’s economic value of equity (“EVE”) over a range of interest rate scenarios. EVE is the present value of expected cash flows from assets, liabilities and off-balance sheet contracts. The model assumes estimated loan prepayment rates, reinvestment rates and deposit decay rates that seem reasonable, based on historical experience during prior interest rate changes.

57

Estimated Changes in EVE and NII. The table below sets forth, as of March 31, 2013, the estimated changes in our (1) EVE that would result from the designated instantaneous changes in the forward rate curves, and (2) NII that would result from the designated instantaneous changes in the U.S. Treasury yield curve. Computations of prospective effects of hypothetical interest rate changes are based on numerous assumptions including relative levels of market interest rates, loan prepayments and deposit decay, and should not be relied upon as indicative of actual results.

Interest rates	Estimated		Estimated change in EVE					Estimated		Estimated change in NII
(basis points)	EVE		Amount			Percent		NII		Amount			Percent
	(Dollars in thousands)
+300	$	417,719	$	(48,728	)	-10.4	%	$	120,690	$	9,960		9.0	%
+200	439,626		(26,821		)	--5.8		117,217		6,487			5.9
+100	474,052		7,605			1.6		114,128		3,398			3.1
0	466,447		—			—		110,730		—			—
-100	450,311		(16,136		)	--3.5		103,566		(7,164		)	--6.5

The table set forth above indicates that at March 31, 2013, in the event of an immediate 200 basis point increase in interest rates, we would expect to experience a 5.8% decrease in EVE and a 5.9% increase in NII. Due to the current level of interest rates, management is unable to reasonably model the impact of decreases in interest rates on EVE and NII beyond -100 basis points.

Certain shortcomings are inherent in the methodology used in the above interest rate risk measurements. Modeling changes in EVE and NII requires making certain assumptions that may or may not reflect the manner in which actual yields and costs respond to changes in market interest rates. The EVE and NII table presented above assumes that the composition of our interest-rate sensitive assets and liabilities existing at the beginning of a period remains constant over the period being measured and, accordingly, the data does not reflect any actions management may undertake in response to changes in interest rates. The table also assumes that a particular change in interest rates is reflected uniformly across the yield curve regardless of the duration to maturity or the re-pricing characteristics of specific assets and liabilities. Accordingly, although the EVE and NII table provides an indication of our sensitivity to interest rate changes at a particular point in time, such measurements are not intended to and do not provide a precise forecast of the effect of changes in market interest rates on our net interest income and will differ from actual results.

During the first two quarters of fiscal year 2013, the federal funds target rate remained in a range of 0.00 - 0.25% as the Federal Open Market Committee (“FOMC”) did not change the target overnight lending rate. U.S. Treasury yields in the two year maturities increased 2 basis points from 0.23% to 0.25% at the end of the second quarter of fiscal year 2013 while the yield on U.S. Treasury 10 year notes increased 22 basis points from 1.65% to 1.87% over the same six month period. The greater increase in yield on longer term maturities resulted in the 2-10 year treasury yield curve steepening at the end of the second quarter of fiscal 2013 relative to the beginning of the fiscal year. The FOMC declared a willingness to keep the federal funds target low for an “extended period” and subsequently stated that it anticipates that exceptionally low levels for the federal funds rate would likely be warranted at least through mid-2015. During the second quarter of the current fiscal year the FOMC reaffirmed its willingness to maintain an accommodative stance stating that it intends to do so until the unemployment rate and inflation expectations reach certain thresholds. The FOMC further stated that it viewed these thresholds as consistent with its earlier date-based guidance. However, should economic conditions improve, the FOMC could reverse direction and increase the federal funds target rate. This could cause the shorter end of the yield curve to rise disproportionately relative to the longer end, thereby resulting in short-term margin compression. We hold a notional amount of $50 million in interest rate caps to help mitigate this risk.

Item 4. Controls and Procedures

The Company’s  management,  including the Principal Executive Officer and Principal Financial Officer, evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended the “Exchange Act”) as of the end of the period covered by this report.  Based on management’s identification of two previously reported deficiencies in internal control over financial reporting that it considers to be material weaknesses, management has concluded that disclosure controls and procedures were not effective at March 31, 2013.  Steps being undertaken to remediate these weaknesses are discussed below.

58

Changes in Internal Controls

On December 5, 2012, the Company appointed a new Principal Financial Officer.  On January 2, 2013 the Company appointed a new Chief Accounting Officer and Controller.  The Company has engaged an independent nationally known public accounting firm to assist the Company in implementing a systematic process and procedures that will enable the Company to maintain effective internal controls over the provision for income taxes and deferred taxes, which resulted in the material weaknesses discussed above.  The Company has also commenced implementation of enhancements to its internal controls over financial reporting related to pension accounting in fiscal 2013.  The Company believes the steps taken to remediate these weaknesses are appropriate and the Company expects them to be fully remediated before the end of the Company’s 2013 fiscal year.

PART II

OTHER INFORMATION

Item 1. Legal Proceedings

The Company is not involved in any pending legal proceedings which, in the aggregate, management believes to be material to the consolidated financial condition and operations of the Company.

Item 1A. Risk Factors

For information regarding factors that could affect the Company’s results of operations, financial condition and liquidity, see the risk factors discussed under Part I, Item 1A of the Company’s most recent annual report on Form 10-K. See also Part I, Item 2 (Forward-Looking Statements) of this quarterly report on Form 10-Q.

On April 4, 2013, the company announced it had entered into a merger agreement with Sterling Bancorp. In connection with the execution of that agreement, the Company has supplemented the risk factors previously disclosed in the Company’s most recent annual report on Form 10-K as follows:

Regulatory approvals may not be received, may take longer than expected or may impose conditions that are not presently anticipated or that could have an adverse effect on the combined company following the merger.

Before the merger and the bank merger may be completed, Provident and Sterling must obtain approvals from the Federal Reserve Board and the Office of the Comptroller of the Currency. Other approvals, waivers or consents from regulators may also be required. These regulators may impose conditions on the completion of the merger or the bank merger or require changes to the terms of the merger or the bank merger. Such conditions or changes could have the effect of delaying or preventing completion of the merger or the bank merger or imposing additional costs on or limiting the revenues of the combined company following the merger and the bank merger, any of which might have an adverse effect on the combined company following the merger.

Combining the two companies may be more difficult, costly or time consuming than expected and the anticipated benefits and cost savings of the merger may not be realized.

Provident and Sterling have operated and, until the completion of the merger, will continue to operate, independently. The success of the merger, including anticipated benefits and cost savings, will depend, in part, on Provident’s ability to successfully combine the businesses of Provident and Sterling. To realize these anticipated benefits and cost savings, after the completion of the merger, Provident expects to integrate Sterling’s business into its own. It is possible that the integration process could result in the loss of key employees, the disruption of each company’s ongoing businesses or inconsistencies in standards, controls, procedures and policies that adversely affect the combined company’s ability to maintain relationships with clients, customers, depositors and employees or to achieve the anticipated benefits and cost savings of the merger. The loss of key employees could adversely affect Provident’s ability to successfully conduct its business in the markets in which Sterling now operates, which could have an adverse effect on Provident’s financial results and the value of its common stock. If Provident experiences difficulties with the integration process, the anticipated benefits of the merger may not be realized fully or at all, or may take longer to realize than expected. As with any merger of financial institutions, there also may be business disruptions that cause Provident and/or Sterling to lose customers or cause customers to remove their accounts from Provident and/or Sterling and move their business to competing financial institutions. Integration efforts between the two companies will also divert management attention and resources. These integration matters could have an adverse effect on each of Sterling and Provident during this transition period and for an undetermined period after completion of the merger on the combined company. In addition, the actual cost savings of the merger could be less than anticipated.

59

Termination of the merger agreement could negatively impact Provident.

If the merger agreement is terminated, there may be various consequences. For example, Provident’s businesses may have been impacted adversely by the failure to pursue other beneficial opportunities due to the focus of management on the merger, without realizing any of the anticipated benefits of completing the merger. Additionally, if the merger agreement is terminated, the market price of Provident’s common stock could decline to the extent that the current market prices reflect a market assumption that the merger will be completed. If the merger agreement is terminated under certain circumstances, Provident may be required to pay to the other party a termination fee of $13.25 million.

Sterling and Provident will be subject to business uncertainties and contractual restrictions while the merger is pending.

Uncertainty about the effect of the merger on employees and customers may have an adverse effect on Sterling or Provident as well as the combined organization. These uncertainties may impair Sterling’s or Provident’s ability to attract, retain and motivate key personnel until the merger is completed, and could cause customers and others that deal with Sterling or Provident to seek to change existing business relationships with Sterling or Provident. Retention of certain employees by Sterling or Provident may be challenging while the merger is pending, as certain employees may experience uncertainty about their future roles with Sterling or Provident. If key employees depart because of issues relating to the uncertainty and difficulty of integration or a desire not to remain with Sterling or Provident, Sterling’s business or Provident’s business could be harmed. In addition, subject to certain exceptions, each of Sterling and Provident has agreed to operate its business in the ordinary course prior to closing.

If the merger is not completed, Provident will have incurred substantial expenses without realizing the expected benefits of the merger.

Provident has incurred and will incur substantial expenses in connection with the negotiation and completion of the transactions contemplated by the merger agreement, as well as the costs and expenses of filing, printing and mailing a joint proxy statement/prospectus and all filing and other fees paid to the SEC in connection with the merger. If the merger is not completed, Provident would have to recognize these expenses without realizing the expected benefits of the merger.

The merger agreement limits Provident’s and Sterling’s ability to pursue acquisition proposals and requires Provident to pay a termination fee of $13.25 million under limited circumstances, including circumstances relating to acquisition proposals.

The merger agreement prohibits Provident from initiating, soliciting, knowingly encouraging or knowingly facilitating certain third party acquisition proposals, subject to exceptions set forth in the merger agreement. The merger agreement also provides that Provident must pay a termination fee in the amount of $13.25 million in the event that the merger agreement is terminated under certain circumstances, including involving its failure to abide by certain obligations not to solicit acquisition proposals. These provisions might discourage a potential competing acquirer that might have an interest in acquiring all or a significant part of Provident from considering or proposing such an acquisition.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(a) Not applicable.

(b) Not applicable

(c) Issuer Purchases of Equity Securities

	Total number of shares (or units) Purchased (1)	Average price paid per share (or Unit)		Total number of shares (or units) purchased as part of publicly announced plans or programs (2)	Maximum number (or approximate dollar value) of Shares (or Units) that may yet be purchased under the plans or programs (2)
Period (2013)
January 1 - January 31	—	$	—	—	776,713
February 1 - February 28	—	—		—	776,713
March 1 - March 31	1,761	9.02		—	776,713
Total	1,761	$	9.02	—

60

(1	)	The total number of shares purchased includes shares received from employees who exercised stock options by submitting previously acquired shares of common stock in satisfaction of the exercise price, or shares withheld for tax purposes as is permitted under the Company’s stock benefit plans.
(2	)	The Company announced its fifth repurchase program on December 17, 2009 authorizing the repurchase of 2,000,000 shares of which 776,713 remain available for repurchase.

Item 3. Defaults Upon Senior Securities

None

Item 4. Not Applicable

Item 5. Other Information

None

61

Item 6. Exhibits

Exhibit Number	Description
31.1	Certification of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-
	Oxley Act of 2002
31.2	Certification of the Principal Financial Officer pursuant to Section 302 of the Sarbanes-
	Oxley Act of 2002
32.1	Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	XBRL Instance Document 1(filed herewith)
101.SCH	XBRL Taxonomy Extension Schema Document 1(filed herewith)
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document 1(filed herewith)
101.LAB	XBRL Taxonomy Extension Label Linkbase Document 1(filed herewith)
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document 1(filed herewith)
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document 1(filed herewith)

1	In accordance with Rule 406T of Regulation S-T, these interactive data files are deemed “not filed” for purposes of
	section 18 of the Exchange Act, and otherwise are not subject to liability under that section.

62

SIGNATURES

Pursuant to the requirements of Section 13 of the Securities Exchange Act of 1934, Provident New York Bancorp has duly caused this report to be signed on its behalf by the undersigned, there unto duly authorized.

Provident New York Bancorp

Date:	May 8, 2013	By:	/s/ Jack Kopnisky
			Jack Kopnisky
			President, Chief Executive Officer and Director
			(Principal Executive Officer)
Date:	May 8, 2013	By:	/s/ Luis Massiani
			Luis Massiani
			Executive Vice President and Chief Financial Officer
			(Principal Financial Officer and Principal Accounting Officer)

63

EX-31.1

Exhibit 31.1

Certification of Principal Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Jack Kopnisky, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Provident New York Bancorp;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 8, 2013	By:	/s/ Jack Kopnisky
			Jack Kopnisky
			President, Chief Executive Officer and Director
			(Principal Executive Officer)

EX-31.2

Exhibit 31.2

Certification of Principal Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Luis Massiani, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Provident New York Bancorp;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 8, 2013	By:	/s/ Luis Massiani
			Luis Massiani
			Executive Vice President
			Chief Financial Officer
			Principal Financial Officer

EX-32.1

Exhibit 32.1

Certification of Principal Executive Officer and Principal Financial Officer

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Jack Kopnisky, Chief Executive Officer and Luis Massiani, Chief Financial Officer of Provident New York Bancorp (the “Company”) each certify in his capacity as an officer of the Company that he has reviewed the quarterly report on Form 10-Q for the quarter ended March 31, 2013 and that to the best of his knowledge:

(1) the report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	May 8, 2013	By:	/s/ Jack Kopnisky
			Jack Kopnisky
			President, Chief Executive Officer and Director
			(Principal Executive Officer)

Date:	May 8, 2013	By:	/s/ Luis Massiani
			Luis Massiani
			Executive Vice President
			Chief Financial Officer
			(Principal Financial Officer)

A signed original of this written statement required by Section 906 has been provided to Provident New York Bancorp and will be retained by Provident New York Bancorp and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Securities (Details 3) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Sep. 30, 2012
Held-to-maturity securities
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	$ 183,535	$ 142,376
Gross Unrealized Gains	2,779	3,976
Gross Unrealized Losses	(236)	(28)
Securities held-to-maturity at fair value	186,078	146,324
Mortgage-backed securities-residential [Member]
Held-to-maturity securities
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	84,632	99,264
Gross Unrealized Gains	1,792	2,785
Gross Unrealized Losses	(40)	(28)
Securities held-to-maturity at fair value	86,384	102,021
Investment securities [Member]
Held-to-maturity securities
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	98,903	43,112
Gross Unrealized Gains	987	1,191
Gross Unrealized Losses	(196)	0
Securities held-to-maturity at fair value	99,694	44,303
Fannie Mae [Member] | Mortgage-backed securities-residential [Member]
Held-to-maturity securities
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	23,307	28,637
Gross Unrealized Gains	790	1,212
Gross Unrealized Losses	0	0
Securities held-to-maturity at fair value	24,097	29,849
Freddie Mac [Member] | Mortgage-backed securities-residential [Member]
Held-to-maturity securities
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	32,212	42,706
Gross Unrealized Gains	785	1,347
Gross Unrealized Losses	0	0
Securities held-to-maturity at fair value	32,997	44,053
CMO/Other MBS [Member] | Mortgage-backed securities-residential [Member]
Held-to-maturity securities
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	29,113	27,921
Gross Unrealized Gains	217	226
Gross Unrealized Losses	(40)	(28)
Securities held-to-maturity at fair value	29,290	28,119
Federal agencies [Member] | Investment securities [Member]
Held-to-maturity securities
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	77,319	22,236
Gross Unrealized Gains	88	106
Gross Unrealized Losses	(129)	0
Securities held-to-maturity at fair value	77,278	22,342
Obligations of states and political subdivisions [Member] | Investment securities [Member]
Held-to-maturity securities
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	20,084	19,376
Gross Unrealized Gains	881	1,059
Gross Unrealized Losses	(67)	0
Securities held-to-maturity at fair value	20,898	20,435
Other [Member] | Investment securities [Member]
Held-to-maturity securities
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	1,500	1,500
Gross Unrealized Gains	18	26
Gross Unrealized Losses	0	0
Securities held-to-maturity at fair value	$ 1,518	$ 1,526

XML

Deposits (Details Textual) (USD $)	Mar. 31, 2013	Sep. 30, 2012
Deposits (Textual) [Abstract]
Municipal deposits	$ 537,070,000	$ 901,739,000
Deposits received for tax receipts		$ 425,000,000

XML

Loans (Details 6) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Mar. 31, 2013	Sep. 30, 2012
Troubled debt restructurings
Current	$ 21,318	$ 13,543
30-59 Days past due	543	270
60-89 Days past due	0	264
90 Days past due	0	0
Non- accrual	1,706	10,870
Total	23,567	24,947
Allowance, Current Loans	0	0
Allowance, 30-59 days past due	0	0
Allowance, 60-89 days past due	0	41
Allowance, 90+ days past due	0	0
Allowance, Non-Accrual	4	955
Allowance, Total TDR's	4	996
Commercial Portfolio Segment [Member]
Troubled debt restructurings
Current	1,669
30-59 Days past due	0
60-89 Days past due	0
90 Days past due	0
Non- accrual	0
Total	1,669
One-to-four family residential [Member]
Troubled debt restructurings
Current	1,560	1,226
30-59 Days past due	198	0
60-89 Days past due	0	264
90 Days past due	0	0
Non- accrual	1,558	2,178
Total	3,316	3,668
Commerical real estate [Member]
Troubled debt restructurings
Current	3,347	2,640
30-59 Days past due	0	270
60-89 Days past due	0	0
90 Days past due	0	0
Non- accrual	0	0
Total	3,347	2,910
Acquisition, development & construction [Member]
Troubled debt restructurings
Current	14,742	9,677
30-59 Days past due	345	0
60-89 Days past due	0	0
90 Days past due	0	0
Non- accrual	148	8,692
Total	$ 15,235	$ 18,369

XML

Fair Value Measurements Fair value measurements (Details 4) (USD $) In Thousands, unless otherwise specified													6 Months Ended													6 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2013 Significant Unobservable Inputs Level 3 [Member]	Sep. 30, 2012 Significant Unobservable Inputs Level 3 [Member]	Sep. 30, 2012 Fair Value, Measurements, Nonrecurring [Member]	Mar. 31, 2013 Fair Value, Measurements, Nonrecurring [Member] Significant Unobservable Inputs Level 3 [Member]	Sep. 30, 2012 Fair Value, Measurements, Nonrecurring [Member] Significant Unobservable Inputs Level 3 [Member]	Mar. 31, 2013 Impaired [Member] Market Approach Valuation Technique [Member] Fair Value, Measurements, Nonrecurring [Member] Real estate-residential mortgage [Member] Significant Unobservable Inputs Level 3 [Member]	Mar. 31, 2013 Impaired [Member] Market Approach Valuation Technique [Member] Fair Value, Measurements, Nonrecurring [Member] Real estate-commercial mortgage [Member] Significant Unobservable Inputs Level 3 [Member]	Mar. 31, 2013 Impaired [Member] Market Approach Valuation Technique [Member] Fair Value, Measurements, Nonrecurring [Member] Commercial business loans [Member] Significant Unobservable Inputs Level 3 [Member]	Mar. 31, 2013 Impaired [Member] Market Approach Valuation Technique [Member] Fair Value, Measurements, Nonrecurring [Member] Acquisition, development and construction [Member] Significant Unobservable Inputs Level 3 [Member]	Mar. 31, 2013 Impaired [Member] Market Approach Valuation Technique [Member] Fair Value, Measurements, Nonrecurring [Member] Consumer loans [Member] Significant Unobservable Inputs Level 3 [Member]	Mar. 31, 2013 Impaired [Member] Minimum [Member] Market Approach Valuation Technique [Member] Fair Value, Measurements, Nonrecurring [Member] Real estate-residential mortgage [Member] Significant Unobservable Inputs Level 3 [Member]	Mar. 31, 2013 Impaired [Member] Minimum [Member] Market Approach Valuation Technique [Member] Fair Value, Measurements, Nonrecurring [Member] Real estate-commercial mortgage [Member] Significant Unobservable Inputs Level 3 [Member]	Mar. 31, 2013 Impaired [Member] Minimum [Member] Market Approach Valuation Technique [Member] Fair Value, Measurements, Nonrecurring [Member] Commercial business loans [Member] Significant Unobservable Inputs Level 3 [Member]	Mar. 31, 2013 Impaired [Member] Minimum [Member] Market Approach Valuation Technique [Member] Fair Value, Measurements, Nonrecurring [Member] Acquisition, development and construction [Member] Significant Unobservable Inputs Level 3 [Member]	Mar. 31, 2013 Impaired [Member] Minimum [Member] Market Approach Valuation Technique [Member] Fair Value, Measurements, Nonrecurring [Member] Consumer loans [Member] Significant Unobservable Inputs Level 3 [Member]	Mar. 31, 2013 Impaired [Member] Maximum [Member] Market Approach Valuation Technique [Member] Fair Value, Measurements, Nonrecurring [Member] Real estate-residential mortgage [Member] Significant Unobservable Inputs Level 3 [Member]	Mar. 31, 2013 Impaired [Member] Maximum [Member] Market Approach Valuation Technique [Member] Fair Value, Measurements, Nonrecurring [Member] Real estate-commercial mortgage [Member] Significant Unobservable Inputs Level 3 [Member]	Mar. 31, 2013 Impaired [Member] Maximum [Member] Market Approach Valuation Technique [Member] Fair Value, Measurements, Nonrecurring [Member] Commercial business loans [Member] Significant Unobservable Inputs Level 3 [Member]	Mar. 31, 2013 Impaired [Member] Maximum [Member] Market Approach Valuation Technique [Member] Fair Value, Measurements, Nonrecurring [Member] Acquisition, development and construction [Member] Significant Unobservable Inputs Level 3 [Member]	Mar. 31, 2013 Impaired [Member] Maximum [Member] Market Approach Valuation Technique [Member] Fair Value, Measurements, Nonrecurring [Member] Consumer loans [Member] Significant Unobservable Inputs Level 3 [Member]	Mar. 31, 2013 Taken in Foreclosure [Member] Market Approach Valuation Technique [Member] Fair Value, Measurements, Nonrecurring [Member] Real estate-residential mortgage [Member] Significant Unobservable Inputs Level 3 [Member]	Mar. 31, 2013 Taken in Foreclosure [Member] Market Approach Valuation Technique [Member] Fair Value, Measurements, Nonrecurring [Member] Real estate-commercial mortgage [Member] Significant Unobservable Inputs Level 3 [Member]	Mar. 31, 2013 Taken in Foreclosure [Member] Market Approach Valuation Technique [Member] Fair Value, Measurements, Nonrecurring [Member] Acquisition, development and construction [Member] Significant Unobservable Inputs Level 3 [Member]	Mar. 31, 2013 Taken in Foreclosure [Member] Market Approach Valuation Technique [Member] Fair Value, Measurements, Nonrecurring [Member] Mortgage Servicing Rights [Member] Significant Unobservable Inputs Level 3 [Member] speed	Mar. 31, 2013 Taken in Foreclosure [Member] Minimum [Member] Market Approach Valuation Technique [Member] Fair Value, Measurements, Nonrecurring [Member] Real estate-residential mortgage [Member] Significant Unobservable Inputs Level 3 [Member]	Mar. 31, 2013 Taken in Foreclosure [Member] Minimum [Member] Market Approach Valuation Technique [Member] Fair Value, Measurements, Nonrecurring [Member] Real estate-commercial mortgage [Member] Significant Unobservable Inputs Level 3 [Member]	Mar. 31, 2013 Taken in Foreclosure [Member] Minimum [Member] Market Approach Valuation Technique [Member] Fair Value, Measurements, Nonrecurring [Member] Acquisition, development and construction [Member] Significant Unobservable Inputs Level 3 [Member]	Mar. 31, 2013 Taken in Foreclosure [Member] Minimum [Member] Market Approach Valuation Technique [Member] Fair Value, Measurements, Nonrecurring [Member] Mortgage Servicing Rights [Member] Significant Unobservable Inputs Level 3 [Member] speed	Mar. 31, 2013 Taken in Foreclosure [Member] Maximum [Member] Market Approach Valuation Technique [Member] Fair Value, Measurements, Nonrecurring [Member] Real estate-residential mortgage [Member] Significant Unobservable Inputs Level 3 [Member]	Mar. 31, 2013 Taken in Foreclosure [Member] Maximum [Member] Market Approach Valuation Technique [Member] Fair Value, Measurements, Nonrecurring [Member] Real estate-commercial mortgage [Member] Significant Unobservable Inputs Level 3 [Member]	Mar. 31, 2013 Taken in Foreclosure [Member] Maximum [Member] Market Approach Valuation Technique [Member] Fair Value, Measurements, Nonrecurring [Member] Acquisition, development and construction [Member] Significant Unobservable Inputs Level 3 [Member]	Mar. 31, 2013 Taken in Foreclosure [Member] Maximum [Member] Market Approach Valuation Technique [Member] Fair Value, Measurements, Nonrecurring [Member] Mortgage Servicing Rights [Member] Significant Unobservable Inputs Level 3 [Member] speed
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Loans, net			$ 2,207,571	$ 2,157,133	$ 24,707	$ 21,142	$ 24,707	$ 8,664	$ 7,216	$ 358	$ 3,896	$ 1,008											$ 1,207	$ 1,239	$ 3,040
Comparability adjustments													18.00%	18.00%	18.00%	22.00%	18.00%	23.00%	23.00%	32.00%	32.00%	23.00%					18.00%	18.00%	22.00%	9.30%	23.00%	23.00%	32.00%	12.80%
Prepayment speed																														100				968
Weighted average prepayment speed																										224
Servicing Asset at Fair Value, Amount	$ 1,886	$ 1,433																								$ 1,886

XML

Borrowings (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Sep. 30, 2012
By period to maturity:
Less than one year, Amount	$ 68,810	$ 10,136
Less than one year, Rate	1.27%	1.88%
One to two years, Amount	73,731	56,819
One to two years, Rate	175.00%	244.00%
Two to three years, Amount	0	52,693
Two to three years, Rate	0.00%	289.00%
Three to four years, Amount	102,597	201
Three to four years, Rate	419.00%	532.00%
Four to five years, Amount	120,000	202,386
Four to five years, Rate	410.00%	421.00%
Greater than five years, Amount	2,838	22,941
Greater than five years, Rate	492.00%	374.00%
Total borrowings, Amount	367,976	345,176
Total borrowings, Rate	3.13%	3.61%
FHLB Advances [Member]
By period to maturity:
Total borrowings, Amount	139,323	106,904
Total borrowings, Rate	2.95%	3.89%
FHLB Repurchase Agreements [Member]
By period to maturity:
Total borrowings, Amount	$ 228,653	$ 238,272
Total borrowings, Rate	324.00%	349.00%

XML

Loans (Details 4) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2013	Mar. 31, 2012	Sep. 30, 2012
Financing Receivable, Impaired [Line Items]
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	$ 2,932		$ 2,932		$ 3,214
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	24,612		24,612		25,068
Financing Receivable, Allowance for Credit Losses	27,544		27,544		28,282
With no related allowance recorded:
Unpaid Principal Balance with no related allowance recorded	46,166		46,166		41,041
Recorded Investment with no related allowance recorded	41,209		41,209		35,231
Average Impaired Loans with no allowance recorded	36,808	38,237	38,274	38,795
Interest Income Recognized with no allowance recorded	564	354	1,134	713
Cash-basis Interest Income Recognized with no allowance recorded	290	232	578	468
With an allowance recorded:
Unpaid Principal Balance with an allowance recorded	16,840		16,840		23,081
Recorded Investment with an allowance recorded	11,899		11,899		18,061
Allowance for Loan Losses Allocated with an allowance recorded			2,932		3,214
QTD Average Impaired Loans with an allowance recorded	11,839	25,882	11,860	26,489
Interest Income Recognized with an allowance recorded	34	117	68	230
Cash-basis Interest Income Recognized with an allowance recorded	20	99	41	195
Unpaid Principal Balance Total	63,006		63,006		64,122
Recorded Investment Total	53,108		53,108		53,292
Allowance for Loan Losses Allocated Total			2,932		3,214
Average Impaired Loans Total	48,647	64,119	50,134	65,284
Interest Income Recognized Total	598	471	1,202	943
Cash-basis Interest Income Recognized Total	310	331	619	663
One-to-four family residential [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	305		305		871
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	4,138		4,138		3,488
Financing Receivable, Allowance for Credit Losses	4,443		4,443		4,359
With no related allowance recorded:
Unpaid Principal Balance with no related allowance recorded	10,665		10,665		6,193
Recorded Investment with no related allowance recorded	8,539		8,539		5,413
Average Impaired Loans with no allowance recorded	7,978	4,182	8,165	4,244
Interest Income Recognized with no allowance recorded	100	63	201	126
Cash-basis Interest Income Recognized with no allowance recorded	52	28	104	57
With an allowance recorded:
Unpaid Principal Balance with an allowance recorded	5,303		5,303		8,485
Recorded Investment with an allowance recorded	3,941		3,941		7,326
Allowance for Loan Losses Allocated with an allowance recorded			305		871
QTD Average Impaired Loans with an allowance recorded	3,857	6,790	3,885	6,968
Interest Income Recognized with an allowance recorded	14	35	27	69
Cash-basis Interest Income Recognized with an allowance recorded	6	30	12	59
Commerical real estate [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	2,155		2,155		1,036
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	6,994		6,994		6,194
Financing Receivable, Allowance for Credit Losses	9,149		9,149		7,230
With no related allowance recorded:
Unpaid Principal Balance with no related allowance recorded	10,440		10,440		9,296
Recorded Investment with no related allowance recorded	9,229		9,229		7,837
Average Impaired Loans with no allowance recorded	9,248	9,525	9,241	9,690
Interest Income Recognized with no allowance recorded	99	95	199	184
Cash-basis Interest Income Recognized with no allowance recorded	53	75	105	151
With an allowance recorded:
Unpaid Principal Balance with an allowance recorded	8,988		8,988		5,942
Recorded Investment with an allowance recorded	6,205		6,205		5,180
Allowance for Loan Losses Allocated with an allowance recorded			2,155		1,036
QTD Average Impaired Loans with an allowance recorded	6,265	7,256	6,245	7,399
Interest Income Recognized with an allowance recorded	13	33	27	66
Cash-basis Interest Income Recognized with an allowance recorded	9	24	19	47
Commercial Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	179		179		48
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	4,192		4,192		4,555
Financing Receivable, Allowance for Credit Losses	4,371		4,371		4,603
With no related allowance recorded:
Unpaid Principal Balance with no related allowance recorded	2,498		2,498		262
Recorded Investment with no related allowance recorded	2,455		2,455		262
Average Impaired Loans with no allowance recorded	1,873	798	2,067	849
Interest Income Recognized with no allowance recorded	45	10	90	20
Cash-basis Interest Income Recognized with no allowance recorded	10		42	20
With an allowance recorded:
Unpaid Principal Balance with an allowance recorded	538		538		95
Recorded Investment with an allowance recorded	358		358		95
Allowance for Loan Losses Allocated with an allowance recorded			179		48
QTD Average Impaired Loans with an allowance recorded	368	97	365	96
Interest Income Recognized with an allowance recorded	3	2	6	3
Cash-basis Interest Income Recognized with an allowance recorded	3	2	6	3
Commercial Portfolio Segment Two [Member]
With no related allowance recorded:
Cash-basis Interest Income Recognized with no allowance recorded	21
Acquisition, development & construction [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	144		144		996
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	5,958		5,958		7,530
Financing Receivable, Allowance for Credit Losses	6,102		6,102		8,526
With no related allowance recorded:
Unpaid Principal Balance with no related allowance recorded	19,986		19,986		24,144
Recorded Investment with no related allowance recorded	18,645		18,645		20,597
Average Impaired Loans with no allowance recorded	15,582	21,442	16,603	21,715
Interest Income Recognized with no allowance recorded	313	166	630	344
Cash-basis Interest Income Recognized with no allowance recorded	161	114	321	229
With an allowance recorded:
Unpaid Principal Balance with an allowance recorded	814		814		7,159
Recorded Investment with an allowance recorded	670		670		4,283
Allowance for Loan Losses Allocated with an allowance recorded			144		996
QTD Average Impaired Loans with an allowance recorded	649	10,640	656	10,941
Interest Income Recognized with an allowance recorded	0	44	0	88
Cash-basis Interest Income Recognized with an allowance recorded	0	41	0	82
Consumer [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	149		149		263
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	3,330		3,330		3,301
Financing Receivable, Allowance for Credit Losses	3,479		3,479		3,564
With no related allowance recorded:
Unpaid Principal Balance with no related allowance recorded	2,577		2,577		1,146
Recorded Investment with no related allowance recorded	2,341		2,341		1,122
Average Impaired Loans with no allowance recorded	2,127	2,290	2,198	2,297
Interest Income Recognized with no allowance recorded	7	20	14	39
Cash-basis Interest Income Recognized with no allowance recorded	3	5	6	11
With an allowance recorded:
Unpaid Principal Balance with an allowance recorded	1,197		1,197		1,400
Recorded Investment with an allowance recorded	725		725		1,177
Allowance for Loan Losses Allocated with an allowance recorded			149		263
QTD Average Impaired Loans with an allowance recorded	700	1,099	709	1,085
Interest Income Recognized with an allowance recorded	4	3	8	4
Cash-basis Interest Income Recognized with an allowance recorded	$ 2	$ 2	$ 4	$ 4

XML

Derivatives (Tables)

6 Months Ended

Mar. 31, 2013

Derivative Instruments and Hedges, Assets [Abstract]

Summary of derivatives

At March 31, 2013 summary information regarding these derivatives is presented below:

	March 31, 2013
	Notional amount			Weighted average maturity (in years)	Weighted average fixed rate		Weighted average variable rate	Fair value
Interest rate caps	$	50,000		1.68	3.75	%	NA	$	1
Third-party interest rate swaps	55,190			6.26	4.22		1 m Libor + 2.45	2,198
Customer interest rate swaps	(55,190		)	6.26	4.22		1 m Libor + 2.45	(2,198		)

At September 30, 2012, summary information regarding these derivatives is presented below:

	September 30, 2012
	Notional amount			Weighted average maturity (in years)	Weighted average fixed rate		Weighted average variable rate	Fair value
Interest rate caps	$	50,000		2.18	3.75	%	NA	$	2
Third-party interest rate swaps	42,332			7.30	4.29		1 m Libor + 2.28	2,485
Customer interest rate swaps	(42,332		)	7.30	4.29		1 m Libor + 2.28	(2,485		)

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Subsequent Events (Details) (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Sep. 30, 2012	Dec. 31, 2013
Subsequent Events [Abstract]
Stock for stock value of merger		$ 344
Business Acquisition, Percentage of Voting Interests Acquired		53.00%
Business aquisition, percentage of stock aquired Sterling		47.00%
Business Acquisition, Pro Forma Revenue	253
Business Acquisition, Pro Forma Net Income (Loss)	33
Total assets after merger Sterling		$ 6,500
Fixed ratio of shares to be received by Sterling		1.2625

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Guarantor's Obligations Under Guarantees (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013
Guarantor's Obligations Under Guarantees (Textual) [Abstract]
Outstanding letters of credit	$ 26,942
Outstanding letters of credit cash secured	6,546
Outstanding letters of credit secured by collateral	$ 4,524

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Fair Value Measurements (Details 5) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Sep. 30, 2012	Mar. 31, 2013 Level 1 [Member]	Sep. 30, 2012 Level 1 [Member]	Mar. 31, 2013 Level 2 [Member]	Sep. 30, 2012 Level 2 [Member]	Mar. 31, 2013 Level 3 [Member]	Sep. 30, 2012 Level 3 [Member]	Mar. 31, 2013 Carrying Amount [Member]	Sep. 30, 2012 Carrying Amount [Member]	Mar. 31, 2013 Fair Value, Measurements, Recurring [Member]	Sep. 30, 2012 Fair Value, Measurements, Recurring [Member]	Mar. 31, 2013 Fair Value, Measurements, Recurring [Member] Level 1 [Member]	Sep. 30, 2012 Fair Value, Measurements, Recurring [Member] Level 1 [Member]	Mar. 31, 2013 Fair Value, Measurements, Recurring [Member] Level 2 [Member]	Sep. 30, 2012 Fair Value, Measurements, Recurring [Member] Level 2 [Member]	Mar. 31, 2013 Fair Value, Measurements, Recurring [Member] Level 3 [Member]	Mar. 31, 2012 Fair Value, Measurements, Recurring [Member] Level 3 [Member]	Mar. 31, 2013 Fair Value, Measurements, Recurring [Member] Fair Value Measurements [Member]	Sep. 30, 2012 Fair Value, Measurements, Recurring [Member] Fair Value Measurements [Member]
Financial assets:
Cash and due from banks			$ 73,396	$ 437,982	$ 0	$ 0	$ 0	$ 0	$ 73,396	$ 437,982
Available-for-sale Securities, Fair Value Disclosure	945,678	1,010,872	0	0	941,462	1,006,242	4,216	4,630	945,678	1,010,872			0	0	941,462	1,006,242	4,216	4,630	945,678	1,010,872
Securities held to maturity			0	0	186,078	146,324	0	0	183,535	142,376
Loans, net			0	0	0	0	2,207,571	2,157,133	2,177,011	2,091,190	50,176	50,078
Loans held for sale			0	0	1,040	7,505		0	1,040	7,505
Accrued interest receivable on securities			0	0	4,597	4,011	0	0	4,597	4,011
Accrued interest receivable on loans			0	0	0	0	7,222	6,502	7,222
FHLB stock									20,251	19,249
Derivative Assets													0	0	2,199	2,487	0	0	2,199	2,487
Financial liabilities:
Non-maturity deposits			(2,452,282)	(2,723,669)	0	0	0	0	(2,452,282)	(2,723,669)
Certificates of deposit			0	0	(348,076)	(389,031)	0	0	(347,376)	(387,482)
FHLB and other borrowings			0	0	(400,019)	(377,906)	0	0	(367,976)	(345,176)
Mortgage escrow funds			0	0	(17,579)	(11,917)	0	0	(17,582)	(11,919)
Accrued interest payable on deposits including escrow			0	0	(308)	(500)	0	0	(308)	(500)
Accrued interest payable on borrowings			0	0	(1,361)	(1,442)	0	0	(1,361)
Liabilities, Fair Value Disclosure													0	0	2,198	2,485	0	0	2,198	2,485
Derivative Financial Instruments, Liabilities, Fair Value Disclosure													$ 0	$ 0	$ 2,198	$ 2,485	$ 0	$ 0	$ 2,198	$ 2,485

XML

Basis of Presentation Basis of Presentation (Policies)

6 Months Ended

Mar. 31, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Loan Allowance Policy

A substantial portion of the Company’s loan portfolio is secured by residential and commercial real estate located in the Company’s primary market area, primarily in Rockland and Orange Counties of New York and contiguous areas such as Ulster, Sullivan, Putnam and Westchester Counties of New York, Bergen County, New Jersey and New York City. The ability of the Company’s borrowers to make principal and interest payments is dependent upon, among other things, the level of overall economic activity and the real estate market conditions prevailing within the Company’s concentrated lending area. Commercial real estate loans, and acquisition, development and construction loans in particular, are considered by management to be of somewhat greater credit risk than other loan types such as loans to fund the purchase of a primary residence due to the generally larger loan amounts and dependency on income production or sale of the real estate.

Fair Value Policy

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 – Valuation is based on quoted prices in active markets for identical assets and liabilities.

Level 2 – Valuation is determined from quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar instruments in markets that are not active or by model-based techniques in which all significant inputs are observable in the market.

Level 3 – Valuation is derived from model-based techniques in which at least one significant input is unobservable and based on the Company’s own estimates about the assumptions that the market participants would use to value the asset or liability.

When available, the Company attempts to use quoted market prices in active markets to determine fair value and classifies such items as Level 1 or Level 2. If quoted market prices in active markets are not available, fair value is often determined using model-based techniques incorporating various assumptions including interest rates, prepayment speeds and credit losses. Assets and liabilities valued using model-based techniques are classified as either Level 2 or Level 3, depending on the lowest level classification of an input that is considered significant to the overall valuation.

The following is a description of the valuation methodologies used for the Company’s assets and liabilities that are measured on a recurring basis at estimated fair value.

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Loans (Details 8) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Sep. 30, 2012
Special Mention [Member]
Risk category of loans by segment of gross loans
Risk Category of loans by Segment of loans	$ 41,778	$ 42,422
Substandard [Member]
Risk category of loans by segment of gross loans
Risk Category of loans by Segment of loans	70,358	88,336
Doubtful [Member]
Risk category of loans by segment of gross loans
Risk Category of loans by Segment of loans	330	338
One-to-four family residential [Member] | Special Mention [Member]
Risk category of loans by segment of gross loans
Risk Category of loans by Segment of loans	1,200	830
One-to-four family residential [Member] | Substandard [Member]
Risk category of loans by segment of gross loans
Risk Category of loans by Segment of loans	10,763	11,314
One-to-four family residential [Member] | Doubtful [Member]
Risk category of loans by segment of gross loans
Risk Category of loans by Segment of loans	0	0
Commerical real estate [Member] | Special Mention [Member]
Risk category of loans by segment of gross loans
Risk Category of loans by Segment of loans	18,531	20,729
Commerical real estate [Member] | Substandard [Member]
Risk category of loans by segment of gross loans
Risk Category of loans by Segment of loans	27,212	27,674
Commerical real estate [Member] | Doubtful [Member]
Risk category of loans by segment of gross loans
Risk Category of loans by Segment of loans	0	0
Acquisition, development & construction [Member] | Special Mention [Member]
Risk category of loans by segment of gross loans
Risk Category of loans by Segment of loans	9,054	5,669
Acquisition, development & construction [Member] | Substandard [Member]
Risk category of loans by segment of gross loans
Risk Category of loans by Segment of loans	23,298	42,871
Acquisition, development & construction [Member] | Doubtful [Member]
Risk category of loans by segment of gross loans
Risk Category of loans by Segment of loans	0	0
Commercial Portfolio Segment [Member] | Special Mention [Member]
Risk category of loans by segment of gross loans
Risk Category of loans by Segment of loans	12,973	14,920
Commercial Portfolio Segment [Member] | Substandard [Member]
Risk category of loans by segment of gross loans
Risk Category of loans by Segment of loans	5,836	3,995
Commercial Portfolio Segment [Member] | Doubtful [Member]
Risk category of loans by segment of gross loans
Risk Category of loans by Segment of loans	330	338
Consumer [Member] | Special Mention [Member]
Risk category of loans by segment of gross loans
Risk Category of loans by Segment of loans	20	274
Consumer [Member] | Substandard [Member]
Risk category of loans by segment of gross loans
Risk Category of loans by Segment of loans	3,249	2,482
Consumer [Member] | Doubtful [Member]
Risk category of loans by segment of gross loans
Risk Category of loans by Segment of loans	$ 0	$ 0

XML

Loans (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011
Components of loan portfolio, excluding loans held for sale
One-to four-family residential mortgage loans	$ 365,485		$ 350,022
Commercial real estate	1,149,463		1,072,504
Commercial & industrial	370,246		343,307
Acquisition, development & construction	118,115		144,061
Total commercial	1,637,824		1,559,872
Consumer:
Home equity lines of credit	161,646		165,200
Homeowner	31,683		34,999
Other consumer loans	7,917		9,379
Total consumer	201,246		209,578
Total loans	2,204,555		2,119,472
Allowance for loan losses	(27,544)	(28,114)	(28,282)	(27,787)	(28,245)	(27,917)
Total loans, net	$ 2,177,011		$ 2,091,190

XML

Securities (Details 1) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Sep. 30, 2012
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-sale Securities, Amortized Cost Basis	$ 931,412	$ 985,508
Available-for-sale Securities, Fair Value Disclosure	945,678	1,010,872
Remaining period to contractual maturity
Amortized Cost, Less than one year	2,000
Fair Value, Less than one year	2,013
Held-to-maturity Securities, Debt Maturities, within One Year, Net Carrying Amount	3,854
Held-to-maturity Securities, Debt Maturities, Next Twelve Months, Fair Value	3,866
Amortized Cost, One to five years	86,072
Fair Value, One to five years	87,687
Held-to-maturity Securities, Debt Maturities, after One Through Five Years, Net Carrying Amount	3,028
Held-to-maturity Securities, Debt Maturities, Year Two Through Five, Fair Value	3,158
Amortized Cost, Five to ten years	427,202
Fair Value, Five to ten years	432,688
Held-to-maturity Securities, Debt Maturities, after Five Through Ten Years, Net Carrying Amount	84,462
Held-to-maturity Securities, Debt Maturities, Year Six Through Ten, Fair Value	84,825
Amortized Cost, Greater than ten years	43,726
Fair Value, Greater than ten years	45,246
Held-to-maturity Securities, Debt Maturities, after Ten Years, Net Carrying Amount	7,559
Held-to-maturity Securities, Debt Maturities, after Ten Years, Fair Value	7,845
Amortized Cost, Total investment securities	559,000
Fair Value, Total investment securities	567,634
Held-to-maturity Securities, Debt Maturities, Net Carrying Amount	98,903
Held-to-maturity Securities, Debt Maturities, Fair Value	99,694
Mortgage-backed securities-residential [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-sale Securities, Amortized Cost Basis	371,594	433,465
Available-for-sale Securities, Fair Value Disclosure	377,226	444,509
Remaining period to contractual maturity
Held-to-maturity Securities, Debt Maturities, Net Carrying Amount	84,632
Held-to-maturity Securities, Debt Maturities, Fair Value	86,384
Securities Investment [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-sale Securities, Amortized Cost Basis	559,818	552,043
Available-for-sale Securities, Fair Value Disclosure	568,452	566,363
Equity Securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-sale Securities, Amortized Cost Basis	818
Available-for-sale Securities, Fair Value Disclosure	818
Federal agencies [Member] | Securities Investment [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-sale Securities, Amortized Cost Basis	368,576	404,820
Available-for-sale Securities, Fair Value Disclosure	369,276	408,823
Corporate Debt Securities [Member] | Securities Investment [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-sale Securities, Amortized Cost Basis		25,890
Available-for-sale Securities, Fair Value Disclosure		$ 25,879

XML

Deposits (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Sep. 30, 2012
Summary of major classification of deposits
Total transaction accounts	$ 1,069,633	$ 1,395,427
Savings	549,440	506,538
Money market	833,209	821,704
Certificates of deposit	347,376	387,482
Total deposits	2,799,658	3,111,151
Retail [Member]
Summary of major classification of deposits
Demand Deposits:	170,102	167,050
NOW Deposits:	235,658	213,755
Business [Member]
Summary of major classification of deposits
Demand Deposits:	426,783	412,630
NOW Deposits:	43,389	38,486
Municipal [Member]
Summary of major classification of deposits
Demand Deposits:	26,889	367,624
NOW Deposits:	$ 166,812	$ 195,882

XML

Fair Value Measurements (Details 1) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Sep. 30, 2012	Mar. 31, 2012
Investment securities
Fair value	$ 945,678	$ 1,010,872
Fair Value Measurements [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	377,226	444,509
Investment securities
Investments, Fair Value Disclosure	568,452	566,363
Fair value	945,678	1,010,872
Interest rate caps and swaps	2,199	2,487
Total assets measured at estimated fair value on a recurring basis	947,877	1,013,359
Interest rate swaps	2,198	2,485
Total liabilities measured at estimated fair value on a recurring basis	2,198	2,485
Fair Value Measurements [Member] | Fannie Mae [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	132,099	161,407
Fair Value Measurements [Member] | Freddie Mac [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	55,732	85,260
Fair Value Measurements [Member] | Ginnie Mae [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	4,194	4,778
Fair Value Measurements [Member] | CMO/Other MBS [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	180,985	188,434
Fair Value Measurements [Member] | Privately issued collateralized mortgage obligations [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	4,216	4,630
Fair Value Measurements [Member] | Federal Agencies [Member] | Fair Value, Measurements, Recurring [Member]
Investment securities
Investments, Fair Value Disclosure	369,276	408,823
Fair Value Measurements [Member] | Corporate Bond Securities [Member] | Fair Value, Measurements, Recurring [Member]
Investment securities
Investments, Fair Value Disclosure	25,879
Fair Value Measurements [Member] | Obligations of states and political subdivisions [Member] | Fair Value, Measurements, Recurring [Member]
Investment securities
Investments, Fair Value Disclosure	172,479	156,481
Fair Value Measurements [Member] | Equities [Member] | Fair Value, Measurements, Recurring [Member]
Investment securities
Investments, Fair Value Disclosure	818	1,059
Quoted Prices in Active markets for Identical Assets Level 1 [Member]
Investment securities
Investments, Fair Value Disclosure		0
Fair value	0	0
Quoted Prices in Active markets for Identical Assets Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	0	0
Investment securities
Investments, Fair Value Disclosure	0
Fair value	0	0
Interest rate caps and swaps	0	0
Total assets measured at estimated fair value on a recurring basis	0	0
Interest rate swaps	0	0
Total liabilities measured at estimated fair value on a recurring basis	0	0
Quoted Prices in Active markets for Identical Assets Level 1 [Member] | Fannie Mae [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	0	0
Quoted Prices in Active markets for Identical Assets Level 1 [Member] | Freddie Mac [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	0	0
Quoted Prices in Active markets for Identical Assets Level 1 [Member] | Ginnie Mae [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	0	0
Quoted Prices in Active markets for Identical Assets Level 1 [Member] | CMO/Other MBS [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	0	0
Quoted Prices in Active markets for Identical Assets Level 1 [Member] | Privately issued collateralized mortgage obligations [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	0	0
Quoted Prices in Active markets for Identical Assets Level 1 [Member] | Federal Agencies [Member] | Fair Value, Measurements, Recurring [Member]
Investment securities
Investments, Fair Value Disclosure	0	0
Quoted Prices in Active markets for Identical Assets Level 1 [Member] | Corporate Bond Securities [Member] | Fair Value, Measurements, Recurring [Member]
Investment securities
Investments, Fair Value Disclosure	0
Quoted Prices in Active markets for Identical Assets Level 1 [Member] | Obligations of states and political subdivisions [Member] | Fair Value, Measurements, Recurring [Member]
Investment securities
Investments, Fair Value Disclosure	0	0
Quoted Prices in Active markets for Identical Assets Level 1 [Member] | Equities [Member] | Fair Value, Measurements, Recurring [Member]
Investment securities
Investments, Fair Value Disclosure	0	0
Significant Other Observable Inputs Level 2 [Member]
Investment securities
Fair value	941,462	1,006,242
Significant Other Observable Inputs Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	373,010	439,879
Investment securities
Investments, Fair Value Disclosure	568,452	566,363
Fair value	941,462	1,006,242
Interest rate caps and swaps	2,199	2,487
Total assets measured at estimated fair value on a recurring basis	943,661	1,008,729
Interest rate swaps	2,198	2,485
Total liabilities measured at estimated fair value on a recurring basis	2,198	2,485
Significant Other Observable Inputs Level 2 [Member] | Fannie Mae [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	132,099	161,407
Significant Other Observable Inputs Level 2 [Member] | Freddie Mac [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	55,732	85,260
Significant Other Observable Inputs Level 2 [Member] | Ginnie Mae [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	4,194	4,778
Significant Other Observable Inputs Level 2 [Member] | CMO/Other MBS [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	180,985	188,434
Significant Other Observable Inputs Level 2 [Member] | Privately issued collateralized mortgage obligations [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	0	0
Significant Other Observable Inputs Level 2 [Member] | Federal Agencies [Member] | Fair Value, Measurements, Recurring [Member]
Investment securities
Investments, Fair Value Disclosure	369,276	408,823
Significant Other Observable Inputs Level 2 [Member] | Corporate Bond Securities [Member] | Fair Value, Measurements, Recurring [Member]
Investment securities
Investments, Fair Value Disclosure	25,879
Significant Other Observable Inputs Level 2 [Member] | Obligations of states and political subdivisions [Member] | Fair Value, Measurements, Recurring [Member]
Investment securities
Investments, Fair Value Disclosure	172,479	156,481
Significant Other Observable Inputs Level 2 [Member] | Equities [Member] | Fair Value, Measurements, Recurring [Member]
Investment securities
Investments, Fair Value Disclosure	818	1,059
Significant Unobservable Inputs Level 3 [Member]
Investment securities
Investments, Fair Value Disclosure			0
Fair value	4,216	4,630
Significant Unobservable Inputs Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	4,216		4,630
Investment securities
Investments, Fair Value Disclosure	0
Fair value	4,216		4,630
Interest rate caps and swaps	0		0
Total assets measured at estimated fair value on a recurring basis	4,216		4,630
Interest rate swaps	0		0
Total liabilities measured at estimated fair value on a recurring basis	0		0
Significant Unobservable Inputs Level 3 [Member] | Fannie Mae [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	0		0
Significant Unobservable Inputs Level 3 [Member] | Freddie Mac [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	0		0
Significant Unobservable Inputs Level 3 [Member] | Ginnie Mae [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	0		0
Significant Unobservable Inputs Level 3 [Member] | CMO/Other MBS [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	0		0
Significant Unobservable Inputs Level 3 [Member] | Privately issued collateralized mortgage obligations [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	4,216		4,630
Significant Unobservable Inputs Level 3 [Member] | Federal Agencies [Member] | Fair Value, Measurements, Recurring [Member]
Investment securities
Investments, Fair Value Disclosure	0		0
Significant Unobservable Inputs Level 3 [Member] | Corporate Bond Securities [Member] | Fair Value, Measurements, Recurring [Member]
Investment securities
Investments, Fair Value Disclosure	0
Significant Unobservable Inputs Level 3 [Member] | Obligations of states and political subdivisions [Member] | Fair Value, Measurements, Recurring [Member]
Investment securities
Investments, Fair Value Disclosure	0		0
Significant Unobservable Inputs Level 3 [Member] | Equities [Member] | Fair Value, Measurements, Recurring [Member]
Investment securities
Investments, Fair Value Disclosure	$ 0		$ 0

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Stock-Based Compensation (Details Textual) (USD $)	3 Months Ended		6 Months Ended			12 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2013		Mar. 31, 2012	Sep. 30, 2012
Stock Based Compensation (Textual) [Abstract]
Total compensation cost that has been charged against income for share based compensation plan	$ 679,000	$ 284,000	$ 1,179,000		$ 559,000
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense	0		0
Grant of share options to employees as per Employee Share Option Plan (stock option plan)			1,028,140	[1]
Shares remaining that are authorized and available for future grant under the 2004 RRP	7,120		7,120
Number of shares received for each share granted			3.6
Weighted average fair value of options granted			$ 2.74			$ 2.27
Total unrecognized compensation cost related to non-vested shares granted under the 2004 RRP	1,726,000		1,726,000
Weighted-average period total unrecognized compensation cost related to non-vested shares granted under the 2004 RRP			2 years 5 months 25 days
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Incremental Compensation Cost			0
Recognition and Retention Plan [Member]
Stock Based Compensation (Textual) [Abstract]
Total unrecognized compensation cost related to non-vested shares granted under the 2004 RRP	1,683,000		1,683,000
Weighted-average period total unrecognized compensation cost related to non-vested shares granted under the 2004 RRP			2 years 2 months 25 days
Stock Options [Member]
Stock Based Compensation (Textual) [Abstract]
Total compensation cost that has been charged against income for share based compensation plan	$ 566,000	$ 181,000	$ 950,000		$ 373,000
Share Option Plan 2012 [Member]
Stock Based Compensation (Textual) [Abstract]
Grant of share options to employees as per Employee Share Option Plan (stock option plan)			1,867,340
Term of Contract			10 years 0 months 0 days
Share Option Plan 2012 [Member] | Minimum [Member]
Stock Based Compensation (Textual) [Abstract]
Vesting period for Option awards			2 years 0 months 0 days
Share Option Plan 2012 [Member] | Maximum [Member]
Stock Based Compensation (Textual) [Abstract]
Vesting period for Option awards			5 years 0 months 0 days
Share Option Plan 2004 [Member]
Stock Based Compensation (Textual) [Abstract]
Grant of share options to employees as per Employee Share Option Plan (stock option plan)			119,457
Term of Contract			10 years 0 months 0 days
Share Option Plan 2004 [Member] | Minimum [Member]
Stock Based Compensation (Textual) [Abstract]
Vesting period for Option awards			2 years 0 months 0 days
Share Option Plan 2004 [Member] | Maximum [Member]
Stock Based Compensation (Textual) [Abstract]
Vesting period for Option awards			5 years 0 months 0 days

[1] Reflects certain non-vested stock awards that count as 3.6 shares for each share granted.

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Loans (Details 5) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Mar. 31, 2013	Sep. 30, 2012
Non-Performing loans:
Current Loans	$ 2,159,771	$ 2,067,311
Non-performing loans, 30-59 Days Past Due	10,693	10,471
Non-performing loans, 60-89 Days Past Due	2,815	1,876
Non-performing loans, 90+ Days Past Due	4,257	4,370
Non accrual loans	27,019	35,444
Total Loans	2,204,555	2,119,472
Current Loans under Troubled debt restructuring	21,318	13,543
30-59 Days past due	543	270
60-89 Days past due	0	264
90 Days past due	0	0
Non- accrual	1,706	10,870
Total	23,567	24,947
Nonperforming Financing Receivable [Member]
Non-Performing loans:
Non accrual loans	27,019	35,444
Non Performing Assets
Loans 90 days past due and still accruing	4,257	4,370
Total non-performing loans	31,276	39,814
One-to-four family residential [Member]
Non-Performing loans:
Current Loans	353,107	337,356
Non-performing loans, 30-59 Days Past Due	1,053	855
Non-performing loans, 60-89 Days Past Due	603	497
Non-performing loans, 90+ Days Past Due	2,368	2,263
Non accrual loans	8,354	9,051
Total Loans	365,485	350,022
Commerical real estate [Member]
Non-Performing loans:
Current Loans	1,130,964	1,060,176
Non-performing loans, 30-59 Days Past Due	6,073	902
Non-performing loans, 60-89 Days Past Due	339	973
Non-performing loans, 90+ Days Past Due	1,132	1,638
Non accrual loans	10,955	8,815
Total Loans	1,149,463	1,072,504
Commercial Portfolio Segment [Member]
Non-Performing loans:
Current Loans	365,071	342,726
Non-performing loans, 30-59 Days Past Due	2,164	96
Non-performing loans, 60-89 Days Past Due	1,867	141
Non-performing loans, 90+ Days Past Due	341	0
Non accrual loans	803	344
Total Loans	370,246	343,307
Acquisition, development & construction [Member]
Non-Performing loans:
Current Loans	112,885	121,590
Non-performing loans, 30-59 Days Past Due	973	7,067
Non-performing loans, 60-89 Days Past Due	0	0
Non-performing loans, 90+ Days Past Due	0	0
Non accrual loans	4,257	15,404
Total Loans	118,115	144,061
Consumer [Member]
Non-Performing loans:
Current Loans	197,744	205,463
Non-performing loans, 30-59 Days Past Due	430	1,551
Non-performing loans, 60-89 Days Past Due	6	265
Non-performing loans, 90+ Days Past Due	416	469
Non accrual loans	2,650	1,830
Total Loans	$ 201,246	$ 209,578

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Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Cash flows from operating activities:
Net income	$ 13,549	$ 11,418
Adjustments to reconcile net income to net cash provided by operating activities
Provision for loan losses	5,550	4,800
Loss on real estate owned	(34)	(178)
Depreciation of premises and equipment	2,342	2,505
Amortization of intangibles	626	628
Net gain on loans held for sale	(1,253)	(890)
Other than temporary impairment loss recorded in earnings	32	38
Net gain on sale of securities	(3,645)	(4,888)
Fair value loss on interest rate cap	(1)	(43)
Net gain on sale of premises and equipment	(5)	0
Net amortization of premium on securities	(1,768)	(1,466)
(Amortization) accretion on borrowings	(192)	1
Accretion of early extinguishment fees on borrowings	733	727
ESOP and RRP expense	832	308
ESOP forfeitures	0	(1)
Stock option compensation expense	347	252
Originations of loans held for sale	(48,642)	(35,935)
Proceeds from sales of loans held for sale	56,360	39,265
Increase in cash surrender value of bank owned life insurance	(899)	(1,020)
Net changes in accrued interest receivable and payable	(1,579)	(329)
Other adjustments (principally net changes in other assets and other liabilities)	(22,855)	2,506
Net cash (used in) provided by operating activities	3,104	21,072
Cash flows from investing activities:
Purchases of available for sale securities	(209,010)	(261,775)
Purchases of held to maturity securities	(81,838)	(77,080)
Proceeds from maturities, calls and other principal payments on securities:
Available for sale	128,589	52,149
Held to maturity	39,003	12,027
Proceeds from Sale of Available-for-sale Securities	136,804	150,657
Proceeds from Sale and Maturity of Held-to-maturity Securities	1,234	0
Loan originations	(495,649)	(362,282)
Loan principal payments	402,295	259,975
Proceeds from sales of other real estate owned	2,085	1,449
Sale (purchase) of FHLB stock, net	(1,002)	455
Purchases of premises and equipment	(1,471)	(781)
Net cash used in investing activities	(78,960)	(225,206)
Cash flows from financing activities:
Net decrease in transaction, savings and money market deposits	(271,387)	101,863
Net (decrease) increase in time deposits	(40,106)	(29,570)
Net increase in short-term borrowings	32,385	(10,000)
Gross repayments of long-term borrowings	(10,126)	(5,122)
Restructured debt	0	5,000
Payment of penalties on restructured borrowings	0	(278)
Repayments of Senior Debt	0	(51,500)
Net increase in mortgage escrow funds	5,663	5,509
Net proceeds/expense stock option transactions	148	153
Other stock-based compensation transactions	13	138
Cash dividends paid	(5,320)	(4,552)
Net cash used in financing activities	(288,730)	11,641
Net decrease in cash and cash equivalents	(364,586)	(192,493)
Cash and cash equivalents at beginning of period	437,982	281,512
Cash and cash equivalents at end of period	73,396	89,019
Supplemental information:
Interest payments	10,096	9,695
Income tax payments	4,603	1,575
Real estate acquired in settlement of loans	1,983	2,064
Settlements, Security Purchases, Subsequent Periods	$ 4,823	$ 49,955

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Pension and Other Post Retirement Plans (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2013	Mar. 31, 2012
Pension Plan [Member]
Net post-retirement cost, recorded within salaries and employee benefits expense
Service cost	$ 0	$ 0	$ 0	$ 0
Interest cost	363	376	726	751
Expected return on plan assets	(615)	(532)	(1,231)	(1,063)
Amortization of net transition obligation	0	0	0	0
Amortization of prior service cost	0	0	0	0
Amortization of (gain) or loss	515	579	1,031	1,158
Total cost	263	423	526	846
Other Post Retirement Plans [Member]
Net post-retirement cost, recorded within salaries and employee benefits expense
Service cost	11	9	23	18
Interest cost	31	27	63	54
Expected return on plan assets	0	0	0	0
Amortization of net transition obligation	6	6	12	12
Amortization of prior service cost	12	12	23	24
Amortization of (gain) or loss	(6)	(15)	(13)	(30)
Total cost	$ 54	$ 39	$ 108	$ 78

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Loans (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2013	Mar. 31, 2012
Summary of activity in allowance for loan losses and recorded investments in loans by portfolio segment based on impairment method
Beginning Allowance for loan losses	$ 28,114	$ 28,245	$ 28,282	$ 27,917
Charge-offs	(3,832)	(3,472)	(7,246)	(6,152)
Recoveries	662	164	958	1,222
Net charge-offs	(3,170)	(3,308)	(6,288)	(4,930)
Provision for losses	2,600	2,850	5,550	4,800
Ending Allowance for Loan Losses	27,544	27,787	27,544	27,787
Annualized net charge-offs to average gross loans	0.58%	0.74%	0.58%	0.56%
One-to-four family residential [Member]
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	4,368	4,167	4,359	3,498
Charge-offs	(959)	(677)	(1,909)	(1,466)
Recoveries	9	1	60	120
Net charge-offs	(950)	(676)	(1,849)	(1,346)
Provision for losses	1,025	696	1,933	2,035
Ending Allowance for Loan Losses	4,443	4,187	4,443	4,187
Commerical real estate [Member]
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	7,616	5,522	7,230	5,568
Charge-offs	(1,199)	(715)	(1,427)	(1,661)
Recoveries	331	51	412	401
Net charge-offs	(868)	(664)	(1,015)	(1,260)
Provision for losses	2,401	1,608	2,934	2,158
Ending Allowance for Loan Losses	9,149	6,466	9,149	6,466
Commercial Portfolio Segment [Member]
Summary of activity in allowance for loan losses and recorded investments in loans by portfolio segment based on impairment method
Beginning Allowance for loan losses	5,533	5,621	4,603	5,945
Charge-offs	(359)	(493)	(518)	(701)
Recoveries	127	83	247	629
Net charge-offs	(232)	(410)	(271)	(72)
Provision for losses	(930)	(480)	39	(1,142)
Ending Allowance for Loan Losses	4,371	4,731	4,371	4,731
Acquisition, development & construction [Member]
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	7,026	9,403	8,526	9,895
Charge-offs	(567)	(1,021)	(2,161)	(1,296)
Recoveries	164	0	169	0
Net charge-offs	(403)	(1,021)	(1,992)	(1,296)
Provision for losses	(521)	559	(432)	342
Ending Allowance for Loan Losses	6,102	8,941	6,102	8,941
Consumer [Member]
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	3,571	3,532	3,564	3,011
Charge-offs	(748)	(566)	(1,231)	(1,028)
Recoveries	31	29	70	72
Net charge-offs	(717)	(537)	(1,161)	(956)
Provision for losses	625	467	1,076	1,407
Ending Allowance for Loan Losses	$ 3,479	$ 3,462	$ 3,479	$ 3,462

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Borrowings (Tables)

6 Months Ended

Mar. 31, 2013

Debt Instruments [Abstract]

Schedule of debt

The Company’s FHLB and other borrowings and weighted average interest rates are summarized as follows:

	March 31, 2013				September 30, 2012
	Amount		Rate		Amount		Rate
By type of borrowing:
Advances	$	139,323	2.95	%	$	106,904	3.89	%
Repurchase agreements	228,653		3.24		238,272		3.49
Total borrowings	$	367,976	3.13	%	$	345,176	3.61	%
By remaining period to maturity:
One year or less	$	68,810	1.27	%	$	10,136	1.88	%
One to two years	73,731		1.75		56,819		2.44
Two to three years	—		—		52,693		2.89
Three to four years	102,597		4.19		201		5.32
Four to five years	120,000		4.10		202,386		4.21
Greater than five years	2,838		4.92		22,941		3.74
Total borrowings	$	367,976	3.13	%	$	345,176	3.61	%

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Deposits (Tables)

6 Months Ended

Mar. 31, 2013

Deposits [Abstract]

Summary of major classification of deposits

Major classifications of deposits are summarized below:  

	March 31, 2013		September 30, 2012
Transaction accounts:
Demand deposits:
Retail	$	170,102	$	167,050
Business	426,783		412,630
Municipal	26,889		367,624
NOW deposits:
Retail	235,658		213,755
Business	43,389		38,486
Municipal	166,812		195,882
Total transaction accounts	1,069,633		1,395,427
Savings	549,440		506,538
Money market	833,209		821,704
Certificates of deposit	347,376		387,482
Total deposits	$	2,799,658	$	3,111,151

List of Company's Brokered deposits

Listed below are the Company’s brokered deposits included in the table above:

	March 31, 2013		September 30, 2012
Savings	$	—	$	13,344
Money market	34,641		46,566
Reciprocal CDARs(1)	1,356		1,354
CDARs one way	766		764
Total brokered deposits	$	36,763	$	62,028

^{(1)  Certificate of deposit account registry service.}

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Borrowings (Details Textual) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Mar. 31, 2013	Sep. 30, 2012
Borrowings (Textual) [Abstract]
Bank pledged mortgages	$ 645,488	$ 613,554
Increased borrowing capacity by pledging securities	486,394
Federal home loan bank borrowings	$ 200,000	$ 200,000
Long term debt weighted average remaining term	4 years 0 months 22 days	4 years 6 months 22 days
Weighted average interest rates	4.23%	4.23%

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Loans (Details 2) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Sep. 30, 2012
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses	$ 27,544	$ 28,282
Loans evaluated for impairment by segment
Individually evaluated for impairment	53,108	53,292
Collectively evaluated for impairment	2,151,447	2,066,180
Total loans	2,204,555	2,119,472
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	2,932	3,214
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	24,612	25,068
One-to-four family residential [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses	4,443	4,359
Loans evaluated for impairment by segment
Individually evaluated for impairment	12,480	12,739
Collectively evaluated for impairment	353,005	337,283
Total loans	365,485	350,022
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	305	871
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	4,138	3,488
Commerical real estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses	9,149	7,230
Loans evaluated for impairment by segment
Individually evaluated for impairment	15,434	13,017
Collectively evaluated for impairment	1,134,029	1,059,487
Total loans	1,149,463	1,072,504
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	2,155	1,036
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	6,994	6,194
Commercial Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses	4,371	4,603
Loans evaluated for impairment by segment
Individually evaluated for impairment	2,813	357
Collectively evaluated for impairment	367,433	342,950
Total loans	370,246	343,307
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	179	48
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	4,192	4,555
Acquisition, development & construction [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses	6,102	8,526
Loans evaluated for impairment by segment
Individually evaluated for impairment	19,315	24,880
Collectively evaluated for impairment	98,800	119,181
Total loans	118,115	144,061
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	144	996
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	5,958	7,530
Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses	3,479	3,564
Loans evaluated for impairment by segment
Individually evaluated for impairment	3,066	2,299
Collectively evaluated for impairment	198,180	207,279
Total loans	201,246	209,578
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	149	263
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	$ 3,330	$ 3,301

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Earnings Per Common Share (Tables)

6 Months Ended

Mar. 31, 2013

Earnings Per Share [Abstract]

Computation of basic and diluted earnings per share

Basic earnings per common share are computed as follows:

	For the three months ended March 31,				For the six months ended March 31,
	2013		2012		2013		2012
Weighted average common shares outstanding (basic)	43,743,640		37,280,651		43,704,163		37,266,480
Net income	$	6,529	$	5,701	$	13,549	$	11,418
Basic earnings per common share	0.15		0.15		0.31		0.31

Diluted earnings per common share are computed as follows:

	For the three months ended March 31,				For the six months ended March 31,
	2013		2012		2013		2012
Weighted average common shares outstanding (basic)	43,743,640		37,280,651		43,704,163		37,266,480
Effect of common stock equivalents	104,846		36,127		86,752		9,153
Weighted average common shares outstanding (diluted)	43,848,486		37,316,778		43,790,915		37,275,633
Net income	$	6,529	$	5,701	$	13,549	$	11,418
Diluted earnings per common share	0.15		0.15		0.31		0.31

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Stock-Based Compensation (Tables)

6 Months Ended

Mar. 31, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Fair value of options granted determined using weighted-average assumptions as grant date

The fair value of options granted was determined using the following weighted average assumptions as of the grant date:

	For the six months ended March 31,
	2013		2012
Risk-free interest rate	0.96	%	1.50	%
Expected stock price volatility	40.8	%	39.8	%
Dividend yield (1)	2.61	%	3.10	%
Expected term in years	5.75		5.80

^{(1) Represents the approximate annualized cash dividend rate paid with respect to a share of common stock at or near the grant date.}

Summary of Company's stock option activity

The following table summarizes the combined activity in the Company’s active stock-based compensation plans for the six months ended March 31, 2013:

			Non-vested stock awards/stock units outstanding				Stock options outstanding
	Shares available for grant		Number of shares		Weighted average grant date fair value		Number of shares		Weighted average exercise price
Balance at October 1, 2012	2,875,877		97,817		$	8.31	1,972,480		$	11.04
Granted (1)	(1,028,140	)	186,900		9.04		360,500		9.04
Stock awards vested	—		(32,166	)	8.73		—		—
Exercised	—		—		—		(6,250	)	6.71
Forfeited	153,234		(9,300	)	7.28		(130,900	)	10.23
Canceled/expired	(7,054	)	—		—		(7,054	)	13.97
Balance at March 31, 2013	1,993,917		243,251		$	8.85	2,188,776		$	10.76
Exercisable at March 31, 2013							1,392,338		$	12.08

^{(1) Reflects certain non-vested stock awards that count as 3.6 shares for each share granted.}  

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Consolidated Statement of Changes In Stockholders' Equity (Parenthetical) (Unaudited) (USD $)	6 Months Ended
	Mar. 31, 2013
Statement of Stockholders' Equity [Abstract]
ESOP shares allocated or committed to be released for allocation, shares	24,966
Cash dividends paid, per common share	$ 0.12

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Pension and Other Post Retirement Plans (Tables)

6 Months Ended

Mar. 31, 2013

Compensation Related Costs [Abstract]

Net post-retirement cost, recorded within salaries and employee benefits expense

Net pension and post-retirement expense, which is recorded within compensation and employee benefits expense in the consolidated statements of income, is comprised of the following:

	Pension plan						Other post retirement plans
	For the three months ended March 31,						For the three months ended March 31,
	2013			2012			2013			2012
Service cost	$	—		$	—		$	11		$	9
Interest cost	363			376			31			27
Expected return on plan assets	(615		)	(532		)	—			—
Amortization of net transition obligation	—			—			6			6
Amortization of prior service cost	—			—			12			12
Amortization of (gain) or loss	515			579			(6		)	(15		)
Total cost	$	263		$	423		$	54		$	39

	Pension plan						Other post retirement plans
	For the six months ended March 31,						For the six months ended March 31,
	2013			2012			2013			2012
Service cost	$	—		$	—		$	23		$	18
Interest cost	726			751			63			54
Expected return on plan assets	(1,231		)	(1,063		)	—			—
Amortization of net transition obligation	—			—			12			12
Amortization of prior service cost	—			—			23			24
Amortization of (gain) or loss	1,031			1,158			(13		)	(30		)
Total cost	$	526		$	846		$	108		$	78

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Securities (Details 5) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Sep. 30, 2012
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract]
Fair Value, Less Than 12 Months	$ 47,416	$ 13,189
Unrealized Losses, Less Than 12 Months	(236)	(28)
Fair Value, 12 Months or Longer	0	0
Unrealized Losses, 12 Months or Longer	0	0
Fair Value, Total	47,416	13,189
Unrealized Losses, Total	(236)	(28)
CMO/Other MBS [Member]
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract]
Fair Value, Less Than 12 Months	4,911	13,189
Unrealized Losses, Less Than 12 Months	(40)	(28)
Fair Value, 12 Months or Longer	0	0
Unrealized Losses, 12 Months or Longer	0	0
Fair Value, Total	4,911	13,189
Unrealized Losses, Total	(40)	(28)
Federal agencies [Member]
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract]
Fair Value, Less Than 12 Months	37,211
Unrealized Losses, Less Than 12 Months	(129)
Fair Value, 12 Months or Longer	0
Unrealized Losses, 12 Months or Longer	0
Fair Value, Total	37,211
Unrealized Losses, Total	(129)
US States and Political Subdivisions Debt Securities [Member]
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract]
Fair Value, Less Than 12 Months	5,294
Unrealized Losses, Less Than 12 Months	(67)
Fair Value, 12 Months or Longer	0
Unrealized Losses, 12 Months or Longer	0
Fair Value, Total	5,294
Unrealized Losses, Total	$ (67)

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Deposits (Details 1) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013		Sep. 30, 2012
List of Company's Brokered deposits
Brokered deposits	$ 36,763		$ 62,028
Savings [Member]
List of Company's Brokered deposits
Brokered deposits	0		13,344
Money Market Deposits [Member]
List of Company's Brokered deposits
Brokered deposits	34,641		46,566
Reciprocal CDAR's [Member]
List of Company's Brokered deposits
Brokered deposits	1,356	[1]	1,354	[1]
CDAR's One Way [Member]
List of Company's Brokered deposits
Brokered deposits	$ 766		$ 764

[1] Certificate of deposit account registry service.

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Fair Value Measurements Fair value measurements (Details Textual) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Mar. 31, 2013 third_parties	Mar. 31, 2012	Mar. 31, 2013 third_parties	Mar. 31, 2012	Sep. 30, 2012
Fair Value Measurements (Textual) [Abstract]
Available-for-sale Securities, Amortized Cost Basis	$ 931,412		$ 931,412		$ 985,508
Fair value	945,678		945,678		1,010,872
Number of third parties used to measure fair value	2		2
Weighted average coupon rate of investment securities			3.80%
Weighted average life of investment securities			4 years 0 months 20 days
Fair value inputs prepayment period			12 years 0 months 22 days
Fair Value Inputs, Probability of Default			3.19%
Carrying amount of two securities	3,825		3,825
Amortized cost of two securities	3,764		3,764
Temporary impairment charge for the securities due to Temporary losses to securities	0		14
Total other than temporary charges	136		136
Changes in fair value recognized on provisions on loans held by the Company			3,947	2,359
Mortgage servicing rights	1,886	1,433	1,886	1,433
Assets taken in foreclosure of defaulted loans subject to nonrecurring fair value measurement	5,486		5,486		6,403
Changes in fair value recognized through income for foreclosed assets held by the Company	606	208	815	276
Fair Value, Measurements, Recurring [Member]
Fair Value Measurements (Textual) [Abstract]
Loans	50,176		50,176		50,078
Fair Value, Measurements, Nonrecurring [Member]
Fair Value Measurements (Textual) [Abstract]
Loans					24,707
Fair Value, Measurements, Nonrecurring [Member] | Real estate-residential mortgage [Member]
Fair Value Measurements (Textual) [Abstract]
Loans					8,628
Fair Value, Measurements, Nonrecurring [Member] | Real estate-commercial mortgage [Member]
Fair Value Measurements (Textual) [Abstract]
Loans					6,537
Collateralized Mortgage Obligation 1 [Member]
Fair Value Measurements (Textual) [Abstract]
Securities book yields			3.12%
Collateralized Mortgage Obligation 2 [Member]
Fair Value Measurements (Textual) [Abstract]
Securities book yields			3.39%
Level 3 [Member]
Fair Value Measurements (Textual) [Abstract]
Fair value	4,216		4,216		4,630
Loans	2,207,571		2,207,571		2,157,133
Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value Measurements (Textual) [Abstract]
Fair value	4,216	4,630	4,216	4,630
Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member]
Fair Value Measurements (Textual) [Abstract]
Loans	21,142		21,142		24,707
Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Real estate-residential mortgage [Member]
Fair Value Measurements (Textual) [Abstract]
Loans	8,664		8,664		8,628
Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Real estate-commercial mortgage [Member]
Fair Value Measurements (Textual) [Abstract]
Loans	7,216		7,216		6,537
Mortgage-backed securities-residential [Member]
Fair Value Measurements (Textual) [Abstract]
Available-for-sale Securities, Amortized Cost Basis	371,594		371,594		433,465
Fair value	377,226		377,226		444,509
Mortgage-backed securities-residential [Member] | Level 3 [Member]
Fair Value Measurements (Textual) [Abstract]
Available-for-sale Securities, Amortized Cost Basis	4,142		4,142
Fair value	$ 4,216		$ 4,216

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Consolidated Statements of Financial Condition (Unaudited) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Sep. 30, 2012
ASSETS
Cash and due from banks	$ 73,396	$ 437,982
Securities:
Available for sale	945,678	1,010,872
Held to maturity, at amortized cost (fair value of $186,078 and $146,324 at March 31, 2013 and September 30, 2012, respectively)	183,535	142,376
Total securities	1,129,213	1,153,248
Assets held for sale	0	4,550
Loans held for sale	1,040	7,505
Gross loans	2,204,555	2,119,472
Allowance for loan losses	(27,544)	(28,282)
Total loans, net	2,177,011	2,091,190
Federal Home Loan Bank (“FHLB”) stock, at cost	20,251	19,249
Accrued interest receivable	11,819	10,513
Premises and equipment, net	37,617	38,483
Goodwill	163,117	163,247
Core deposit and other intangible assets	6,538	7,164
Bank owned life insurance (“BOLI”)	59,916	59,017
Foreclosed properties	5,486	6,403
Other assets	25,036	24,431
Total assets	3,710,440	4,022,982
LIABILITIES
Deposits	2,799,658	3,111,151
FHLB and other borrowings	367,976	345,176
Advance Payments by Borrowers for Taxes and Insurance	17,582	11,919
Other liabilities	30,513	63,614
Total liabilities	3,215,729	3,531,860
Commitment and contingent liabilities
STOCKHOLDERS' EQUITY
Preferred stock (par value $0.01 per share; 10,000,000 shares authorized; none issued or outstanding)	0	0
Common stock (par value $0.01 per share; 75,000,000 shares authorized; 52,188,056 issued; 44,353,276 and 44,173,470 shares outstanding at March 31, 2013 and September 30, 2012, respectively)	522	522
Additional paid-in capital	403,005	403,541
Unallocated common stock held by employee stock ownership plan (“ESOP”)	(5,389)	(5,638)
Treasury stock, at cost (7,834,780 and 8,014,586 shares at March 31, 2013 and September 30, 2012, respectively)	(88,517)	(90,173)
Retained earnings	184,171	175,971
Accumulated other comprehensive income, net of taxes	919	6,899
Total stockholders’ equity	494,711	491,122
Total liabilities and stockholders’ equity	$ 3,710,440	$ 4,022,982

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Loans (Details 3) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Sep. 30, 2012
Loans evaluated for impairment by segment
Individually evaluated for impairment	$ 2,932	$ 3,214
Collectively evaluated for impairment	24,612	25,068
Total allowance for loan losses	27,544	28,282
One-to-four family residential [Member]
Loans evaluated for impairment by segment
Individually evaluated for impairment	305	871
Collectively evaluated for impairment	4,138	3,488
Total allowance for loan losses	4,443	4,359
Commerical real estate [Member]
Loans evaluated for impairment by segment
Individually evaluated for impairment	2,155	1,036
Collectively evaluated for impairment	6,994	6,194
Total allowance for loan losses	9,149	7,230
Commercial Portfolio Segment [Member]
Loans evaluated for impairment by segment
Individually evaluated for impairment	179	48
Collectively evaluated for impairment	4,192	4,555
Total allowance for loan losses	4,371	4,603
Acquisition, development & construction [Member]
Loans evaluated for impairment by segment
Individually evaluated for impairment	144	996
Collectively evaluated for impairment	5,958	7,530
Total allowance for loan losses	6,102	8,526
Consumer [Member]
Loans evaluated for impairment by segment
Individually evaluated for impairment	149	263
Collectively evaluated for impairment	3,330	3,301
Total allowance for loan losses	$ 3,479	$ 3,564

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Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2013	Mar. 31, 2012
Unrealized holding gains (losses) on securities available for sale, related tax expense (benefit)	$ (1,885)	$ (220)	$ (3,039)	$ 2,090
Reclassification adjustment for net unrealized gains included in net income, related tax expense	905	1,177	1,480	1,985
Reclassification adjustment for other than temporary impaired losses included in net income, related income tax expense	(3)	0	(13)	15
Change in funded status of defined benefit plans, related tax expense	$ (224)	$ (231)	$ 419	$ (460)

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Stock-Based Compensation (Details) (Stock Options [Member])	6 Months Ended
	Mar. 31, 2013		Mar. 31, 2012
Stock Options [Member]
Fair value of options granted determined using weighted-average assumptions as grant date
Risk-free interest rate	0.96%		1.50%
Expected stock price volatility	40.80%		39.80%
Dividend yield	2.61%	[1]	3.10%	[1]
Expected term in years	5 years 9 months 0 days		5 years 9 months 17 days

[1] Represents the approximate annualized cash dividend rate paid with respect to a share of common stock at or near the grant date

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Comprehensive Income (Tables)

6 Months Ended

Mar. 31, 2013

Comprehensive income [Abstract]

Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block]

Activity in accumulated other comprehensive income (loss) (“AOCI”), net of tax, for the six month period ended March 31, 2013 and 2012, was as follows:

	Unrealized gains(losses) on securities			Unrealized gains (losses) for pension and other post-retirement obligations			Total
Balance at September 30, 2011	$	13,604		$	(8,468	)	$	5,136
Period change	176			673			849
Balance at March 31, 2012	$	13,780		$	(7,795	)	$	5,985
Balance at September 30, 2012	$	15,066		$	(8,167	)	$	6,899
Other comprehensive income before reclassifications	(4,446		)	—			(4,446		)
Amounts reclassified from AOCI	(2,146		)	612			(1,534		)
Period change	(6,592		)	612			(5,980		)
Balance at March 31, 2013	$	8,474		$	(7,555	)	$	919

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

eclassification adjustments out of AOCI included in net income and the impacted line items on the income statement for the six months ended March 31, 2013:

Components of AOCI	Amount reclassified from AOCI (1)			Affected line item in the statement where net income is presented
Unrealized gains (losses) on available for sale securities
	$	3,645		Non-interest income - net gain on sale of securities
	(32		)	Non-interest income - net impairment loss in earnings
	3,613			Net change before tax
	(1,467		)	Tax expense
	$	2,146		Net change after tax
Amortization of defined benefit pension items
Actuarial loss	$	(1,031	)	Non-interest expense - compensation and employee benefits (2)
	(1,031		)	Total change before tax
	419			Tax benefit
	$	(612	)	Net change after tax

⁽¹⁾ Amounts in parentheses indicate debits in profit/loss.

⁽²⁾ These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 10 - Pensions and Other Post Retirement Benefits for additional details).

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Derivatives (Details Textual) (USD $)	3 Months Ended	6 Months Ended	3 Months Ended		6 Months Ended
	Mar. 31, 2013	Mar. 31, 2013	Mar. 31, 2013 Interest Rate Caps [Member]	Mar. 31, 2012 Interest Rate Caps [Member]	Mar. 31, 2013 Interest Rate Caps [Member]	Mar. 31, 2012 Interest Rate Caps [Member]	Dec. 31, 2010 Interest Rate Caps [Member] Derivatives	Dec. 31, 2009 Interest Rate Cap 1 [Member]	Dec. 31, 2009 Interest Rate Cap 2 [Member]
Credit Derivatives [Line Items]
Number of interest rate derivatives held							2
Strike price								3.50%	4.00%
Changes in fair value			$ 0	$ 40,000	$ 1,000	$ 43,000
Gain (Loss) on Derivative Instruments, Net, Pretax	0.00	0
Securities pledged as collateral for Dervatives Amortized cost	5,000,000	5,000,000
Securities pledged as collteral for derivatives at fair vaue	$ 5,000,000	$ 5,000,000

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Recent Accounting Standards

6 Months Ended

Mar. 31, 2013

Recent accounting standards [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]

Update Number 2013-02 - Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The amendments in this Update supersede and replace the presentation requirements for reclassifications out of accumulated other comprehensive income in ASUs 2011-05 (issued in June 2011) and 2011-12 (issued in December 2011) for all public and private organizations. The amendments would require an entity to provide additional information about reclassifications out of accumulated other comprehensive income. For public entities, the amendments are effective for reporting periods beginning after December 15, 2012. See Note 15 for the impact of this standard.

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Securities (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Sep. 30, 2012
Summary of securities available for sale
Available-for-sale Securities, Amortized Cost Basis	$ 931,412	$ 985,508
Gross Unrealized Gains	16,439	25,996
Gross Unrealized Losses	(2,173)	(632)
Fair value	945,678	1,010,872
Mortgage-backed securities-residential [Member]
Summary of securities available for sale
Available-for-sale Securities, Amortized Cost Basis	371,594	433,465
Gross Unrealized Gains	6,694	11,634
Gross Unrealized Losses	(1,062)	(590)
Fair value	377,226	444,509
Investment securities [Member]
Summary of securities available for sale
Available-for-sale Securities, Amortized Cost Basis	559,818	552,043
Gross Unrealized Gains	9,745	14,362
Gross Unrealized Losses	(1,111)	(42)
Fair value	568,452	566,363
Fannie Mae [Member] | Mortgage-backed securities-residential [Member]
Summary of securities available for sale
Available-for-sale Securities, Amortized Cost Basis	130,113	155,601
Gross Unrealized Gains	2,552	5,806
Gross Unrealized Losses	(566)	0
Fair value	132,099	161,407
Freddie Mac [Member] | Mortgage-backed securities-residential [Member]
Summary of securities available for sale
Available-for-sale Securities, Amortized Cost Basis	53,518	81,509
Gross Unrealized Gains	2,214	3,751
Gross Unrealized Losses	0	0
Fair value	55,732	85,260
Ginnie Mae [Member] | Mortgage-backed securities-residential [Member]
Summary of securities available for sale
Available-for-sale Securities, Amortized Cost Basis	3,946	4,488
Gross Unrealized Gains	248	290
Gross Unrealized Losses	0	0
Fair value	4,194	4,778
CMO/Other MBS [Member]
Summary of securities available for sale
Available-for-sale Securities, Amortized Cost Basis	4,142
Fair value	4,216
CMO/Other MBS [Member] | Mortgage-backed securities-residential [Member]
Summary of securities available for sale
Available-for-sale Securities, Amortized Cost Basis	184,017	191,867
Gross Unrealized Gains	1,680	1,787
Gross Unrealized Losses	(496)	(590)
Fair value	185,201	193,064
Federal agencies [Member] | Investment securities [Member]
Summary of securities available for sale
Available-for-sale Securities, Amortized Cost Basis	368,576	404,820
Gross Unrealized Gains	1,302	4,013
Gross Unrealized Losses	(602)	(10)
Fair value	369,276	408,823
Corporate Debt Securities [Member] | Investment securities [Member]
Summary of securities available for sale
Available-for-sale Securities, Amortized Cost Basis		25,890
Gross Unrealized Gains		11
Gross Unrealized Losses		(22)
Fair value		25,879
Obligations of states and political subdivisions [Member] | Investment securities [Member]
Summary of securities available for sale
Available-for-sale Securities, Amortized Cost Basis	164,534	146,136
Gross Unrealized Gains	8,432	10,349
Gross Unrealized Losses	(487)	(4)
Fair value	172,479	156,481
Equities [Member] | Investment securities [Member]
Summary of securities available for sale
Available-for-sale Securities, Amortized Cost Basis	818	1,087
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	(28)
Fair value	$ 818	$ 1,059

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Comprehensive income (Notes)

6 Months Ended

Mar. 31, 2013

Comprehensive income [Abstract]

Comprehensive Income (Loss) Note [Text Block]

15. Accumulated Other Comprehensive Income

Activity in accumulated other comprehensive income (loss) (“AOCI”), net of tax, for the six month period ended March 31, 2013 and 2012, was as follows:

	Unrealized gains(losses) on securities			Unrealized gains (losses) for pension and other post-retirement obligations			Total
Balance at September 30, 2011	$	13,604		$	(8,468	)	$	5,136
Period change	176			673			849
Balance at March 31, 2012	$	13,780		$	(7,795	)	$	5,985
Balance at September 30, 2012	$	15,066		$	(8,167	)	$	6,899
Other comprehensive income before reclassifications	(4,446		)	—			(4,446		)
Amounts reclassified from AOCI	(2,146		)	612			(1,534		)
Period change	(6,592		)	612			(5,980		)
Balance at March 31, 2013	$	8,474		$	(7,555	)	$	919

The following table presents the reclassification adjustments out of AOCI included in net income and the impacted line items on the income statement for the six months ended March 31, 2013:

Components of AOCI	Amount reclassified from AOCI (1)			Affected line item in the statement where net income is presented
Unrealized gains (losses) on available for sale securities
	$	3,645		Non-interest income - net gain on sale of securities
	(32		)	Non-interest income - net impairment loss in earnings
	3,613			Net change before tax
	(1,467		)	Tax expense
	$	2,146		Net change after tax
Amortization of defined benefit pension items
Actuarial loss	$	(1,031	)	Non-interest expense - compensation and employee benefits (2)
	(1,031		)	Total change before tax
	419			Tax benefit
	$	(612	)	Net change after tax

⁽¹⁾ Amounts in parentheses indicate debits in profit/loss.

⁽²⁾ These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 10 - Pensions and Other Post Retirement Benefits for additional details).

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Fair Value Measurements (Details 2) (Fair Value, Measurements, Recurring [Member], Significant Unobservable Inputs Level 3 [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended			6 Months Ended
	Dec. 31, 2012	Mar. 31, 2012	Dec. 31, 2011	Mar. 31, 2013
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs Level 3 [Member]
Summary of changes in Level 3 assets measured at fair value on a recurring basis
Beginning Balance	$ 4,630	$ 4,675	$ 4,851	$ 4,630
Pay-downs	(325)	(178)	(148)	(196)
Amortization, net	6	3	3	5
OTTI	(14)	0	(38)	0
Change in fair value	63	211	7	47
Ending Balance	$ 4,360	$ 4,711	$ 4,675	$ 4,216

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Consolidated Statement of Changes In Stockholders' Equity (Unaudited) (USD $) In Thousands, except Share data, unless otherwise specified	Total	Common stock	Additional paid-in capital	Unallocated ESOP shares	Treasury stock	Retained earnings	Accumulated other comprehensive income
Balance at Sep. 30, 2011
Increase (Decrease) in Stockholders' Equity
Cash dividends paid ($0.12 per common share)						$ (5,320)
Balance at Sep. 30, 2012	491,122	522	403,541	(5,638)	(90,173)	175,971	6,899
Balance, shares at Sep. 30, 2012	44,173,470
Increase (Decrease) in Stockholders' Equity
Net income	13,549					13,549
Other Comprehensive Income (Loss), Net of Tax	(5,980)						(5,980)
Deferred compensation transactions	13	0	13	0	0	0	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Period Increase (Decrease)	6,250
Stock option transactions, net	390		347	0	72	(29)	0
ESOP shares allocated or committed to be released for allocation (24,966 shares)	371	0	122	249	0	0	0
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures	(173,556)
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures	566	0	(1,018)	0	1,584	0	0
Cash dividends paid ($0.12 per common share)	(5,320)	0	0	0	0		0
Balance at Mar. 31, 2013	494,711	522	403,005	(5,389)	(88,517)	184,171	919
Balance, shares at Mar. 31, 2013	44,353,276
Balance at Dec. 31, 2012
Increase (Decrease) in Stockholders' Equity
Net income	6,529						0
Other Comprehensive Income (Loss), Net of Tax	(3,746)
Deferred compensation transactions	13	0	13	0	0	0	0
Stock option transactions, net		0
Balance at Mar. 31, 2013	$ 494,711	$ 522	$ 403,005	$ (5,389)	$ (88,517)	$ 184,171	$ 919
Balance, shares at Mar. 31, 2013	44,353,276

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Consolidated Statements of Financial Condition (Parenthetical) (Unaudited) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2013	Sep. 30, 2012
Securities held-to-maturity at fair value	$ 186,078	$ 146,324
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	52,188,056	52,188,056
Common stock, shares outstanding	44,353,276	44,173,470
Treasury stock, shares	7,834,780	8,014,586

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Earnings Per Common Share

6 Months Ended

Mar. 31, 2013

Earnings Per Share [Abstract]

Earnings Per Common Share

Earnings Per Common Share

The number of shares used in the computation of basic earnings per share excludes unallocated ESOP shares and unvested shares of restricted stock that are not participating securities.

Common stock equivalent shares are incremental shares (computed using the treasury stock method) that would have been outstanding if all potentially dilutive stock options and unvested recognition and retention plan shares were exercised or became vested during the periods presented.

Basic earnings per common share are computed as follows:

	For the three months ended March 31,				For the six months ended March 31,
	2013		2012		2013		2012
Weighted average common shares outstanding (basic)	43,743,640		37,280,651		43,704,163		37,266,480
Net income	$	6,529	$	5,701	$	13,549	$	11,418
Basic earnings per common share	0.15		0.15		0.31		0.31

Diluted earnings per common share are computed as follows:

	For the three months ended March 31,				For the six months ended March 31,
	2013		2012		2013		2012
Weighted average common shares outstanding (basic)	43,743,640		37,280,651		43,704,163		37,266,480
Effect of common stock equivalents	104,846		36,127		86,752		9,153
Weighted average common shares outstanding (diluted)	43,848,486		37,316,778		43,790,915		37,275,633
Net income	$	6,529	$	5,701	$	13,549	$	11,418
Diluted earnings per common share	0.15		0.15		0.31		0.31

As of March 31, 2013 and March 31, 2012, 1,332,619 and 1,710,943 weighted average shares were anti-dilutive for the three month period, respectively. As of March 31, 2013 and March 31, 2012, 1,344,024 and 1,832,280 weighted average shares were anti-dilutive for the six month period, respectively. Anti-dilutive shares are not included in the determination of diluted earnings per share.

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Document and Entity Information	6 Months Ended
	Mar. 31, 2013	May 07, 2013
Document and Entity Information [Abstract]
Entity Registrant Name	PROVIDENT NEW YORK BANCORP
Entity Central Index Key	0001070154
Current Fiscal Year End Date	--09-30
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		44,353,276

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Stock-Based Compensation

6 Months Ended

Mar. 31, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Stock-Based Compensation

The Company has three active stock-based compensation plans as described below. Total compensation expense that was charged against income for those plans was $566, and $181, for the three months ended March 31, 2013 and 2012, respectively. There was no income tax benefit realized for the three months ended March 31, 2013 and 2012.

Total compensation expense that was charged against income for those plans was $950, and $373, for the six months ended March 31, 2013 and 2012, respectively. There was no income tax benefit realized for the six months ended March 31, 2013 and 2012.

Active Stock-Based Compensation Plans

The Company’s shareholders approved the 2012 Stock Incentive Plan (the “2012 Plan”) on February 16, 2012. The 2012 Plan permits the grant of stock options, stock appreciation rights, restricted stock (both time-based and performance-based), restricted stock units, performance units, deferred stock and other stock-based awards for up to 1,867,340 shares of common stock as of March 31, 2013. Awards are generally granted with an exercise price equal to the market price of the Company’s common stock at the date of grant; those awards have vesting periods ranging from 2 to 5 years and have 10 year contractual terms. The Company has a policy of using shares held as treasury stock to satisfy its stock-based compensation stock issuances. Currently, the Company has a sufficient number of treasury shares to satisfy expected stock-based compensation issuances.

The Company’s 2004 Stock Incentive Plan (the “2004 Plan”), which is shareholder approved, permits the grant of stock options to its employees for up to 119,457 shares of common stock as of March 31, 2013. Option awards are generally granted with an exercise price equal to the market price of the Company’s common stock at the date of grant; those option awards have vesting periods ranging from 2 to 5 years and have 10 year contractual terms. The Company has a policy of using shares held as treasury stock to satisfy its stock-based compensation stock issuances.

The Company’s 2004 Restricted Stock Plan, which historically has been referred to as the Recognition and Retention Plan (“RRP”), provides for the issuance of shares to directors and officers. Compensation expense is recognized on a straight-line basis over the vesting period of the awards based on the fair value of the stock at issue date. RRP shares vest annually on the anniversary of the grant date over the vesting period. Total shares remaining that are authorized and available for future grant under the RRP are 7,120 at March 31, 2013.

Under the 2004 Plan and the RRP each grant of stock or restricted stock counts as one share against the number of shares available for grant. Under the 2012 Plan each share of restricted stock, (or non-vested stock awards), is counted as 3.6 shares against the number of shares available for grant. Under the 2012 Plan other grants, including stock options, stock appreciation rights, performance units, deferred stock and other stock awards will be counted as one share against the number of shares available for grant.

The fair value of each stock option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the table below. Expected volatility is based on the historical volatility of the Company’s common stock. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the date of grant.

The fair value of options granted was determined using the following weighted average assumptions as of the grant date:

	For the six months ended March 31,
	2013		2012
Risk-free interest rate	0.96	%	1.50	%
Expected stock price volatility	40.8	%	39.8	%
Dividend yield (1)	2.61	%	3.10	%
Expected term in years	5.75		5.80

^{(1) Represents the approximate annualized cash dividend rate paid with respect to a share of common stock at or near the grant date.} 

The following table summarizes the combined activity in the Company’s active stock-based compensation plans for the six months ended March 31, 2013:

			Non-vested stock awards/stock units outstanding				Stock options outstanding
	Shares available for grant		Number of shares		Weighted average grant date fair value		Number of shares		Weighted average exercise price
Balance at October 1, 2012	2,875,877		97,817		$	8.31	1,972,480		$	11.04
Granted (1)	(1,028,140	)	186,900		9.04		360,500		9.04
Stock awards vested	—		(32,166	)	8.73		—		—
Exercised	—		—		—		(6,250	)	6.71
Forfeited	153,234		(9,300	)	7.28		(130,900	)	10.23
Canceled/expired	(7,054	)	—		—		(7,054	)	13.97
Balance at March 31, 2013	1,993,917		243,251		$	8.85	2,188,776		$	10.76
Exercisable at March 31, 2013							1,392,338		$	12.08

^{(1) Reflects certain non-vested stock awards that count as 3.6 shares for each share granted.}  

The weighted average fair value of options granted was $2.74 and $2.27 for the six months ended March 31, 2013 and 2012, respectively.

As of March 31, 2013, there was $1,726 of total unrecognized compensation expense related to non-vested stock options granted under the Company’s stock-based compensation plans. The expense is expected to be recognized over a weighted average period of 2.49 years.

As of March 31, 2013, there was $1,683 of total unrecognized compensation expense related to non-vested restricted shares granted under the 2012 Plan and the RRP. The expense is expected to be recognized over a weighted average period of 2.24 years.

There were no modifications for the six months ended March 31, 2013 and 2012.

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Consolidated Statements of Income (Unaudited) (USD $)	3 Months Ended		6 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2013	Mar. 31, 2012
Interest and dividend income:
Loans	$ 26,378,000	$ 22,153,000	$ 53,449,000	$ 44,302,000
Taxable securities	4,288,000	4,415,000	8,572,000	8,405,000
Non-taxable securities	1,490,000	1,599,000	2,947,000	3,373,000
Other earning assets	264,000	244,000	597,000	499,000
Total interest and dividend income	32,420,000	28,411,000	65,565,000	56,579,000
Interest expense:
Deposits	1,624,000	1,217,000	3,721,000	2,530,000
Borrowings	2,977,000	3,289,000	6,102,000	6,906,000
Total interest expense	4,601,000	4,506,000	9,823,000	9,436,000
Net interest income	27,819,000	23,905,000	55,742,000	47,143,000
Provision for loan losses	2,600,000	2,850,000	5,550,000	4,800,000
Net interest income after provision for loan losses	25,219,000	21,055,000	50,192,000	42,343,000
Non-interest income:
Deposit fees and service charges	2,736,000	2,706,000	5,514,000	5,496,000
Net gain on sale of securities	(2,229,000)	(2,899,000)	(3,645,000)	(4,888,000)
Other than temporary impairment on securities	(7,000)	0	(73,000)	(536,000)
Loss recognized in other comprehensive income	0	0	41,000	498,000
Net impairment loss in earnings	(7,000)	0	(32,000)	(38,000)
Bank owned life insurance	491,000	502,000	1,000,000	1,020,000
Net gain on sale of premises and equipment			(5,000)	0
Gain on sale of loans	507,000	450,000	1,253,000	890,000
Investment management fees	422,000	800,000	1,127,000	1,565,000
Gain (Loss) on Derivative Instruments, Net, Pretax	0.00		0
Other	474,000	614,000	2,004,000	1,326,000
Total non-interest income	6,852,000	7,971,000	14,511,000	15,147,000
Non-interest expense:
Compensation and employee benefits	11,805,000	11,395,000	24,104,000	22,320,000
Stock-based compensation	679,000	284,000	1,179,000	559,000
Merger-related expense	542,000	299,000	542,000	546,000
Occupancy and office operations	3,954,000	3,409,000	7,764,000	7,110,000
Advertising and promotion	535,000	427,000	779,000	1,040,000
Professional fees	912,000	1,056,000	2,127,000	1,983,000
Data and check processing	823,000	710,000	1,472,000	1,382,000
Foreclosed property expense	915,000	412,000	1,200,000	617,000
Other	3,174,000	3,298,000	6,718,000	6,454,000
Total non-interest expense	23,339,000	21,290,000	45,885,000	42,011,000
Income before income tax expense	8,732,000	7,736,000	18,818,000	15,479,000
Income tax expense	2,203,000	2,035,000	5,269,000	4,061,000
Net income	$ 6,529,000	$ 5,701,000	$ 13,549,000	$ 11,418,000
Weighted average common shares:
Weighted average common shares basic (shares)	43,743,640	37,280,651	43,704,163	37,266,480
Weighted average common shares diluted (shares)	43,848,486	37,316,778	43,790,915	37,275,633
Per common share
Per common share basic (USD per share)	$ 0.15	$ 0.15	$ 0.31	$ 0.31
Per common share diluted (USD per share)	$ 0.15	$ 0.15	$ 0.31	$ 0.31

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Loans

6 Months Ended

Mar. 31, 2013

Loans [Abstract]

Loans

Loans

The components of the loan portfolio, excluding loans held for sale, were as follows:

	March 31, 2013			September 30, 2012
Residential mortgage	$	365,485		$	350,022
Commercial:
Commercial real estate	1,149,463			1,072,504
Commercial & industrial	370,246			343,307
Acquisition, development & construction	118,115			144,061
Total commercial	1,637,824			1,559,872
Consumer:
Home equity lines of credit	161,646			165,200
Homeowner	31,683			34,999
Other consumer loans	7,917			9,379
Total consumer	201,246			209,578
Total loans	2,204,555			2,119,472
Allowance for loan losses	(27,544		)	(28,282		)
Total loans, net	$	2,177,011		$	2,091,190

Total loans include net deferred loan origination costs of $797 at March 31, 2013 and net deferred loan origination fees of ($310) at September 30, 2012.

A substantial portion of the Company’s loan portfolio is secured by residential and commercial real estate located in the Company’s primary market area, primarily in Rockland and Orange Counties of New York and contiguous areas such as Ulster, Sullivan, Putnam and Westchester Counties of New York, Bergen County, New Jersey and New York City. The ability of the Company’s borrowers to make principal and interest payments is dependent upon, among other things, the level of overall economic activity and the real estate market conditions prevailing within the Company’s concentrated lending area. Commercial real estate loans, and acquisition, development and construction loans in particular, are considered by management to be of somewhat greater credit risk than other loan types such as loans to fund the purchase of a primary residence due to the generally larger loan amounts and dependency on income production or sale of the real estate.

Included in the Company’s loan portfolio are loans acquired from Gotham Bank. These loans were recorded at fair value at acquisition. These loans carried a balance of $176,383 and $205,764 at March 31, 2013 and September 30, 2012, respectively. The discount associated with these loans which includes adjustments associated with market interest rates and anticipated credit losses, was $3,032 and $3,924 at March 31, 2013 and September 30, 2012, respectively. We evaluate Gotham Bank acquired loans for impairment collectively. None of the Gotham Bank acquired loans were identified as purchase credit impaired at acquisition.

The following tables set forth the amounts and status of the Company’s loans and troubled debt restructurings (“TDRs”) at March 31, 2013 and September 30, 2012:

	March 31, 2013
	Current		30-59 Days past due		60-89 Days past due		90+ Days past due		Non- accrual		Total
Loans by segment:
Residential mortgage	$	353,107	$	1,053	$	603	$	2,368	$	8,354	$	365,485
Commercial real estate	1,130,964		6,073		339		1,132		10,955		1,149,463
Commercial & industrial	365,071		2,164		1,867		341		803		370,246
Acquisition, development & construction	112,885		973		—		—		4,257		118,115
Consumer	197,744		430		6		416		2,650		201,246
Total	$	2,159,771	$	10,693	$	2,815	$	4,257	$	27,019	$	2,204,555
Total TDRs included above	$	21,318	$	543	$	—	$	—	$	1,706	$	23,567
Non-performing loans:
Loans 90+ days past due and still accruing									$	4,257
Non-accrual loans									27,019
Total non-performing loans									$	31,276

	September 30, 2012
	Current		30-59 Days past due		60-89 Days past due		90+ Days past due		Non- accrual		Total
Loans by segment:
Residential mortgage	$	337,356	$	855	$	497	$	2,263	$	9,051	$	350,022
Commercial real estate	1,060,176		902		973		1,638		8,815		1,072,504
Commercial & industrial	342,726		96		141		—		344		343,307
Acquisition, development & construction	121,590		7,067		—		—		15,404		144,061
Consumer	205,463		1,551		265		469		1,830		209,578
Total	$	2,067,311	$	10,471	$	1,876	$	4,370	$	35,444	$	2,119,472
Total TDRs included above	$	13,543	$	270	$	264	$	—	$	10,870	$	24,947
Non-performing loans:
Loans 90+ days past due and still accruing									$	4,370
Non-accrual loans									35,444
Total non-performing loans									$	39,814

Activity in the allowance for loan losses for the three months ended March 31, 2013 and 2012 is summarized below: 

	For the three months ended March 31, 2013
	Beginning allowance for loan losses		Charge-offs			Recoveries		Net charge-offs			Provision for loan losses			Ending allowance for loan losses
Residential mortgage	$	4,368	$	(959	)	$	9	$	(950	)	$	1,025		$	4,443
Commercial real estate	7,616		(1,199		)	331		(868		)	2,401			9,149
Commercial & industrial	5,533		(359		)	127		(232		)	(930		)	4,371
Acquisition, development & construction	7,026		(567		)	164		(403		)	(521		)	6,102
Consumer	3,571		(748		)	31		(717		)	625			3,479
Total	$	28,114	$	(3,832	)	$	662	$	(3,170	)	$	2,600		$	27,544
Annualized net charge-offs to average gross loans outstanding								0.58		%

	For the three months ended March 31, 2012
	Beginning allowance  for loan losses		Charge-offs			Recoveries		Net charge-offs			Provision for loan losses			Ending allowance  for loan losses
Residential mortgage	$	4,167	$	(677	)	$	1	$	(676	)	$	696		$	4,187
Commercial real estate	5,522		(715		)	51		(664		)	1,608			6,466
Commercial & industrial	5,621		(493		)	83		(410		)	(480		)	4,731
Acquisition, development & construction	9,403		(1,021		)	—		(1,021		)	559			8,941
Consumer	3,532		(566		)	29		(537		)	467			3,462
Total	$	28,245	$	(3,472	)	$	164	$	(3,308	)	$	2,850		$	27,787
Annualized net charge-offs to average gross loans outstanding								0.74		%

Activity in the allowance for loan losses for the six months ended March 31, 2013 and 2012 is summarized below: 

	For the six months ended March 31, 2013
	Beginning allowance for loan losses		Charge-offs			Recoveries		Net charge-offs			Provision for loan losses			Ending allowance for loan losses
Residential mortgage	$	4,359	$	(1,909	)	$	60	$	(1,849	)	$	1,933		$	4,443
Commercial real estate	7,230		(1,427		)	412		(1,015		)	2,934			9,149
Commercial & industrial	4,603		(518		)	247		(271		)	39			4,371
Acquisition, development & construction	8,526		(2,161		)	169		(1,992		)	(432		)	6,102
Consumer	3,564		(1,231		)	70		(1,161		)	1,076			3,479
Total	$	28,282	$	(7,246	)	$	958	$	(6,288	)	$	5,550		$	27,544
Annualized net charge-offs to average gross loans outstanding								0.58		%

	For the six months ended March 31, 2012
	Beginning allowance  for loan losses		Charge-offs			Recoveries		Net charge-offs			Provision for loan losses			Ending allowance  for loan losses
Residential mortgage	$	3,498	$	(1,466	)	$	120	$	(1,346	)	$	2,035		$	4,187
Commercial real estate	5,568		(1,661		)	401		(1,260		)	2,158			6,466
Commercial & industrial	5,945		(701		)	629		(72		)	(1,142		)	4,731
Acquisition, development & construction	9,895		(1,296		)	—		(1,296		)	342			8,941
Consumer	3,011		(1,028		)	72		(956		)	1,407			3,462
Total	$	27,917	$	(6,152	)	$	1,222	$	(4,930	)	$	4,800		$	27,787
Annualized net charge-offs to average gross loans outstanding								0.56		%

The following table sets forth the loans evaluated for impairment by segment and the allowance evaluated by segment at March 31, 2013:

	Loans evaluated by segment						Allowance evaluated by segment
	Individually evaluated for impairment		Collectively evaluated for impairment		Total  loans		Individually evaluated for impairment		Collectively evaluated for impairment		Total allowance for loan losses
Residential mortgage	$	12,480	$	353,005	$	365,485	$	305	$	4,138	$	4,443
Commercial real estate	15,434		1,134,029		1,149,463		2,155		6,994		9,149
Commercial & industrial	2,813		367,433		370,246		179		4,192		4,371
Acquisition, development & construction	19,315		98,800		118,115		144		5,958		6,102
Consumer	3,066		198,180		201,246		149		3,330		3,479
Total	$	53,108	$	2,151,447	$	2,204,555	$	2,932	$	24,612	$	27,544

The following table sets forth the loans evaluated for impairment by segment and the allowance evaluated by segment at September 30, 2012:

	Loans evaluated by segment						Allowance evaluated by segment
	Individually evaluated for impairment		Collectively evaluated for impairment		Total loans		Individually evaluated for impairment		Collectively evaluated for impairment		Total allowance for loan losses
Residential mortgage	$	12,739	$	337,283	$	350,022	$	871	$	3,488	$	4,359
Commercial real estate	13,017		1,059,487		1,072,504		1,036		6,194		7,230
Commercial & industrial	357		342,950		343,307		48		4,555		4,603
Acquisition, development & construction	24,880		119,181		144,061		996		7,530		8,526
Consumer	2,299		207,279		209,578		263		3,301		3,564
Total	$	53,292	$	2,066,180	$	2,119,472	$	3,214	$	25,068	$	28,282

The following table presents loans individually evaluated for impairment by segment of loans at March 31, 2013 and September 30, 2012:

	March 31, 2013						September 30, 2012
	Unpaid principal balance		Recorded investment		Related allowance		Unpaid principal balance		Recorded investment		Related allowance
With no related allowance recorded:
Residential mortgage	$	10,665	$	8,539	$	—	$	6,193	$	5,413	$	—
Commercial real estate	10,440		9,229		—		9,296		7,837		—
Commercial & industrial	2,498		2,455		—		262		262		—
Acquisition, development & construction	19,986		18,645		—		24,144		20,597		—
Consumer	2,577		2,341		—		1,146		1,122		—
Subtotal	46,166		41,209		—		41,041		35,231		—
With an allowance recorded:
Residential mortgage	5,303		3,941		305		8,485		7,326		871
Commercial real estate	8,988		6,205		2,155		5,942		5,180		1,036
Commercial & industrial	538		358		179		95		95		48
Acquisition, development & construction	814		670		144		7,159		4,283		996
Consumer	1,197		725		149		1,400		1,177		263
Subtotal	16,840		11,899		2,932		23,081		18,061		3,214
Total	$	63,006	$	53,108	$	2,932	$	64,122	$	53,292	$	3,214

The following table presents the average recorded investment and interest income recognized related to loans individually evaluated for impairment by segment for the three months ended March 31, 2013 and 2012:

	March 31, 2013						March 31, 2012
	QTD average recorded investment		Interest income recognized		Cash-basis interest income recognized		QTD average recorded investment		Interest income recognized		Cash-basis interest income recognized
With no related allowance recorded:
Residential mortgage	$	7,978	$	100	$	52	$	4,182	$	63	$	28
Commercial real estate	9,248		99		53		9,525		95		75
Commercial & industrial	1,873		45		21		798		10		10
Acquisition, development & construction	15,582		313		161		21,442		166		114
Consumer	2,127		7		3		2,290		20		5
Subtotal	36,808		564		290		38,237		354		232
With an allowance recorded:
Residential mortgage	3,857		14		6		6,790		35		30
Commercial real estate	6,265		13		9		7,256		33		24
Commercial & industrial	368		3		3		97		2		2
Acquisition, development & construction	649		—		—		10,640		44		41
Consumer	700		4		2		1,099		3		2
Subtotal	11,839		34		20		25,882		117		99
Total	$	48,647	$	598	$	310	$	64,119	$	471	$	331

The following table presents the average recorded investment and interest income recognized related to loans individually evaluated for impairment by segment for the six months ended March 31, 2013 and 2012:

	March 31, 2013						March 31, 2012
	YTD average recorded investment		Interest income recognized		Cash-basis interest income recognized		YTD average recorded investment		Interest income recognized		Cash-basis interest income recognized
With no related allowance recorded:
Residential mortgage	$	8,165	$	201	$	104	$	4,244	$	126	$	57
Commercial real estate	9,241		199		105		9,690		184		151
Commercial & industrial	2,067		90		42		849		20		20
Acquisition, development & construction	16,603		630		321		21,715		344		229
Consumer	2,198		14		6		2,297		39		11
Subtotal	38,274		1,134		578		38,795		713		468
With an allowance recorded:
Residential mortgage	3,885		27		12		6,968		69		59
Commercial real estate	6,245		27		19		7,399		66		47
Commercial & industrial	365		6		6		96		3		3
Acquisition, development & construction	656		—		—		10,941		88		82
Consumer	709		8		4		1,085		4		4
Subtotal	11,860		68		41		26,489		230		195
Total	$	50,134	$	1,202	$	619	$	65,284	$	943	$	663

Troubled Debt Restructuring:

The following tables set forth the amounts of the Company’s TDRs at March 31, 2013 and September 30, 2012:

	March 31, 2013
	Current		30-59 Days past due		60-89 Days past due		90+ Days past due		Non- accrual		Total
Residential mortgage	$	1,560	$	198	$	—	$	—	$	1,558	$	3,316
Commercial real estate	3,347		—		—		—		—		3,347
Commercial & industrial	1,669		—		—		—		—		1,669
Acquisition, development & construction	14,742		345		—		—		148		15,235
Total	$	21,318	$	543	$	—	$	—	$	1,706	$	23,567
Allowance for loan losses	$	—	$	—	$	—	$	—	$	4	$	4

	September 30, 2012
	Current		30-59 Days past due		60-89 Days past due		90+ Days past due		Non- accrual		Total
Residential mortgage	$	1,226	$	—	$	264	$	—	$	2,178	$	3,668
Commercial real estate	2,640		270		—		—		—		2,910
Acquisition, development & construction	9,677		—		—		—		8,692		18,369
Total	$	13,543	$	270	$	264	$	—	$	10,870	$	24,947
Allowance for loan losses	$	—	$	—	$	41	$	—	$	955	$	996

The Company has outstanding commitments to lend additional amounts totaling up to $0 and $4,225 as of March 31, 2013, and September 30, 2012, respectively, to customers with outstanding loans that are classified as TDRs.

The following table presents loans by segment modified as TDRs that occurred during the three months ended March 31, 2013 and 2012:

	March 31, 2013					March 31, 2012
		Recorded investment					Recorded investment
	Number of loans	Pre- modification		Post- modification		Number of loans	Pre- modification		Post- modification
Commercial & industrial	2	$	169	$	169	—	$	—	$	—
Acquisition, development & construction	5	3,049		3,049		1	446		446
Total restructured loans	7	$	3,218	$	3,218	1	$	446	$	446

The following table presents loans by segment modified as TDRs that occurred during the six months ended March 31, 2013 and 2012:

	March 31, 2013					March 31, 2012
		Recorded investment					Recorded investment
	Number of loans	Pre- modification		Post- modification		Number of loans	Pre- modification		Post- modification
Residential mortgage	1	$	275	$	275	1	$	446	$	446
Commercial real estate	1	450		450		1	850		850
Commercial & industrial	3	1,669		1,669		—	—		—
Acquisition, development & construction	7	5,772		5,772		—	—		—
Total restructured loans	12	$	8,166	$	8,166	2	$	1,296	$	1,296

The TDRs presented above increased the allowance for loan losses by $0 for the three months ended March 31, 2013 and 2012. There were no charge-offs as a result of the above TDRs, for the respective periods.

The TDRs presented above increased the allowance for loan losses by $0 and $134 for the six months ended March 31, 2013 and 2012, respectively. There were $40 and $134 in charge-offs as a result of the above TDRs, for the respective periods.

There were 4 residential mortgage loans totaling $1,100 that were modified as TDRs during the last twelve months that had subsequently defaulted during the six months ended March 31, 2013.

Credit Quality Indicators

The Bank places loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Bank analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on at least a quarterly basis on all criticized/classified loans. The Bank uses the following definitions of risk ratings:

Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected these potential weaknesses may result in the deterioration of the repayment prospects for the loan or the Bank’s credit position at some future date.

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.

Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Based on the analysis performed as of March 31, 2013 and September 30, 2012, the risk category of loans by segment of gross loans is as follows:

	March 31, 2013						September 30, 2012
	Special mention		Substandard		Doubtful		Special mention		Substandard		Doubtful
Residential mortgage	$	1,200	$	10,763	$	—	$	830	$	11,314	$	—
Commercial real estate	18,531		27,212		—		20,729		27,674		—
Acquisition, development & construction	9,054		23,298		—		5,669		42,871		—
Commercial & industrial	12,973		5,836		330		14,920		3,995		338
Consumer	20		3,249		—		274		2,482		—
Total	$	41,778	$	70,358	$	330	$	42,422	$	88,336	$	338

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Securities

6 Months Ended

Mar. 31, 2013

Marketable Securities [Abstract]

Securities

Securities

A summary of the amortized cost and estimated fair value of securities, is presented below.

	March 31, 2013									September 30, 2012
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value		Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
Available for Sale
Residential mortgage-backed securities:
Fannie Mae	$	130,113	$	2,552	$	(566	)	$	132,099	$	155,601	$	5,806	$	—		$	161,407
Freddie Mac	53,518		2,214		—			55,732		81,509		3,751		—			85,260
Ginnie Mae	3,946		248		—			4,194		4,488		290		—			4,778
CMO/Other MBS	184,017		1,680		(496		)	185,201		191,867		1,787		(590		)	193,064
Total residential mortgage-backed securities	371,594		6,694		(1,062		)	377,226		433,465		11,634		(590		)	444,509
Other securities:
Federal agencies	368,576		1,302		(602		)	369,276		404,820		4,013		(10		)	408,823
Corporate bonds	25,890		11		(22		)	25,879		—		—		—			—
Obligations of states and political subdivisions	164,534		8,432		(487		)	172,479		146,136		10,349		(4		)	156,481
Equities	818		—		—			818		1,087		—		(28		)	1,059
Total other securities	559,818		9,745		(1,111		)	568,452		552,043		14,362		(42		)	566,363
Total securities available for sale	$	931,412	$	16,439	$	(2,173	)	$	945,678	$	985,508	$	25,996	$	(632	)	$	1,010,872

	March 31, 2013									September 30, 2012
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value		Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
Held to Maturity
Residential mortgage-backed securities:
Fannie Mae	$	23,307	$	790	$	—		$	24,097	$	28,637	$	1,212	$	—		$	29,849
Freddie Mac	32,212		785		—			32,997		42,706		1,347		—			44,053
CMO/Other MBS	29,113		217		(40		)	29,290		27,921		226		(28		)	28,119
Total residential mortgage-backed securities	84,632		1,792		(40		)	86,384		99,264		2,785		(28		)	102,021
Other securities:
Federal agencies	77,319		88		(129		)	77,278		22,236		106		—			22,342
Obligations of states and political subdivisions	20,084		881		(67		)	20,898		19,376		1,059		—			20,435
Other	1,500		18		—			1,518		1,500		26		—			1,526
Total other securities	98,903		987		(196		)	99,694		43,112		1,191		—			44,303
Total held to maturity	$	183,535	$	2,779	$	(236	)	$	186,078	$	142,376	$	3,976	$	(28	)	$	146,324

The amortized cost and estimated fair value of securities at March 31, 2013 are presented below by contractual maturity. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Residential mortgage-backed securities are shown separately since they are not due at a single maturity date. Equities are shown separately since there is no maturity date.

	March 31, 2013
	Available for sale				Held to maturity
	Amortized cost		Fair value		Amortized cost		Fair value
Remaining period to contractual maturity:
One year or less	$	2,000	$	2,013	$	3,854	$	3,866
One to five years	86,072		87,687		3,028		3,158
Five to ten years	427,202		432,688		84,462		84,825
Greater than ten years	43,726		45,246		7,559		7,845
Total other securities	559,000		567,634		98,903		99,694
Residential mortgage-backed securities	371,594		377,226		84,632		86,384
Equities	818		818		—		—
Total securities available for sale	$	931,412	$	945,678	$	183,535	$	186,078

Sales of securities were as follows:

	For the three months ended March 31,						For the six months ended March 31,
	2013			2012			2013			2012
Available for sale securities:
Proceeds from sales	$	94,839		$	67,078		$	136,804		$	150,657
Gross realized gains	2,202			2,912			3,618			4,901
Gross realized losses	(10		)	(13		)	(10		)	(13		)
Tax expense of securities gains	(552		)	(763		)	(1,010		)	(1,282		)
Held to maturity securities: (1)
Proceeds from sales	1,234			—			1,234			—
Gross realized gains	37			—			37			—
Tax expense of securities gains	(9		)	—			(10		)	—

⁽¹⁾ The Company sold eight held to maturity securities after the Company had already collected at least 85% of the principal outstanding at acquisition.

The following table summarizes those securities with unrealized losses, segregated by the length of time in a continuous unrealized loss position:

	Continuous unrealized loss position
	Less than 12 Months					12 months or longer				Total
Available for Sale	Fair value		Unrealized losses			Fair value		Unrealized losses		Fair value		Unrealized losses
March 31, 2013
Residential mortgage-backed securities:
Federal agencies	$	53,011	$	(566	)	$	—	$	—	$	53,011	$	(566	)
CMO/Other MBS	62,165		(496		)	—		—		62,165		(496		)
Total residential mortgage-backed securities	115,176		(1,062		)	—		—		115,176		(1,062		)
Federal agencies	145,726		(602		)	—		—		145,726		(602		)
Obligations of states and political subdivisions	23,664		(487		)	—		—		23,664		(487		)
Corporate bonds	13,100		(22		)	—		—		13,100		(22		)
Total	$	297,666	$	(2,173	)	$	—	$	—	$	297,666	$	(2,173	)

September 30, 2012
CMO/Other MBS	$	64,065	$	(590	)	$	—	$	—		$	64,065	$	(590	)
Federal agencies	4,993		(10		)	—		—			4,993		(10		)
Obligations of states and political subdivisions	716		(4		)	—		—			716		(4		)
Equities	—		—			809		(28		)	809		(28		)
Total	$	69,774	$	(604	)	$	809	$	(28	)	$	70,583	$	(632	)

	Continuous unrealized loss position
	Less than 12 Months					12 Months or longer				Total
Held to Maturity	Fair value		Unrealized losses			Fair value		Unrealized losses		Fair value		Unrealized losses
March 31, 2013
CMO/Other MBS	$	4,911	$	(40	)	$	—	$	—	$	4,911	$	(40	)
Federal agencies	37,211		(129		)	—		—		37,211		(129		)
Obligations of states and political subdivisions	5,294		(67		)	—		$	—	5,294		(67		)
Total	$	47,416	$	(236	)	$	—	$	—	$	47,416	$	(236	)

September 30, 2012
CMO/Other MBS	$	13,189	$	(28	)	$	—	$	—	$	13,189	$	(28	)
Total	$	13,189	$	(28	)	$	—	$	—	$	13,189	$	(28	)

Declines in the fair value of available for sale and held to maturity securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses to the extent the impairment is related to credit losses. The amount of the impairment related to other factors is recognized in other comprehensive income. In estimating other-than-temporary impairment losses (“OTTI”), management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, and (iii) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in cost.

Substantially all of the unrealized losses at March 31, 2013 relate to investment grade debt securities and are attributable to changes in market interest rates subsequent to purchase. At March 31, 2013, a total of 148 available for sale securities were in a continuous unrealized loss position for less than 12 months and no securities were in that position for 12 months or longer. For debt securities with fixed maturities, there are no securities past due or securities for which the Company currently believes it is not probable that it will collect all amounts due according to the contractual terms of the investment.

Within the CMO category of the available for sale portfolio there are four private label CMOs that had an amortized cost of $4,142 and a fair value (carrying value) of $4,216 as of March 31, 2013. Two of the four securities are considered to be other than temporarily impaired and are below investment grade. The impaired private label CMOs had an amortized cost of $3,764 and a fair value of $3,825 at March 31, 2013. There were no impairment charges on these securities for the three months ended March 31, 2013 and March 31, 2012, respectively. Impairment charges on these securities totaled $14 and $38 for the six months ended March 31, 2013 and March 31, 2012, respectively. At March 31, 2013 total cumulative impairment charges on these two private label CMOs totaled $136. The remaining two securities are rated at or above Ba1 and were performing as of March 31, 2013 and are expected to perform based on current information. In determining whether OTTI existed on these debt securities the Company evaluated the present value of cash flows expected to be collected based on collateral specific assumptions, including credit risk and liquidity risk, and determined that no losses were expected. The Company will continue to evaluate its investment securities portfolio for OTTI on at least a quarterly basis.

Excluding FHLB and New York Business Development Corporation stock, the Company owned one equity security with a balance of $818 and $809 at March 31, 2013 and September 30, 2012, respectively. During the three months ended March 31, 2013 and March 31, 2012, the Company incurred an OTTI charge on this equity security of $7 and $0, respectively. For the six months ended March 31, 2013 and 2012, the Company incurred an OTTI charge on this security of $18 and $0, respectively. At March 31, 2013, accumulated OTTI charge on this security was $222. The Company may not hold this equity security until the unrealized loss position of the security is recovered; therefore, the security was determined to be OTTI.

Securities pledged for borrowings at FHLB and other borrowings, and securities pledged for municipal deposits and other purposes were as follows:

	Securities pledged at
	March 31, 2013		September 30, 2012
Available for sale securities pledged for borrowings, at fair value	$	206,073	$	144,041
Available for sale securities pledged for municipal deposits, at fair value	473,443		703,261
Held to maturity securities pledged for borrowings, at amortized cost	51,286		46,538
Held to maturity securities pledged for municipal deposits, at amortized cost	92,958		138,855

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Subsequent Events (Notes)

6 Months Ended

Mar. 31, 2013

Subsequent Events [Abstract]

Subsequent Events [Text Block]

Provident announced it had entered into a merger agreement with Sterling Bancorp (NYSE: STL). In the merger, which is a stock-for-stock transaction valued at $344 million based on the closing price of Provident common stock on April 3, 2013, Sterling Bancorp shareholders will receive a fixed ratio of 1.2625 shares of Provident common stock for each share of Sterling Bancorp common stock. Upon closing, Provident shareholders will own approximately 53% of stock in the combined company and Sterling Bancorp shareholders will own approximately 47%. On a pro forma combined basis, for the twelve months ended September 30, 2012, the companies had revenue of $253 million and $33 million in net income. Upon completion of the merger the combined company is expected to have approximately $6.5 billion in assets. The transaction, which has been approved by the boards of directors of both companies, is expected to close in the fourth calendar quarter of 2013. The transaction is subject to approval by shareholders from both companies, regulatory approval and other customary closing conditions.

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Pension and Other Post Retirement Plans

6 Months Ended

Mar. 31, 2013

Compensation Related Costs [Abstract]

Pension and Other Post Retirement Plans

Pension and Other Post Retirement Plans

Net pension and post-retirement expense, which is recorded within compensation and employee benefits expense in the consolidated statements of income, is comprised of the following:

	Pension plan						Other post retirement plans
	For the three months ended March 31,						For the three months ended March 31,
	2013			2012			2013			2012
Service cost	$	—		$	—		$	11		$	9
Interest cost	363			376			31			27
Expected return on plan assets	(615		)	(532		)	—			—
Amortization of net transition obligation	—			—			6			6
Amortization of prior service cost	—			—			12			12
Amortization of (gain) or loss	515			579			(6		)	(15		)
Total cost	$	263		$	423		$	54		$	39

	Pension plan						Other post retirement plans
	For the six months ended March 31,						For the six months ended March 31,
	2013			2012			2013			2012
Service cost	$	—		$	—		$	23		$	18
Interest cost	726			751			63			54
Expected return on plan assets	(1,231		)	(1,063		)	—			—
Amortization of net transition obligation	—			—			12			12
Amortization of prior service cost	—			—			23			24
Amortization of (gain) or loss	1,031			1,158			(13		)	(30		)
Total cost	$	526		$	846		$	108		$	78

As of March 31, 2013, no contributions had been made into the pension plan during fiscal year 2013. The Company has not yet determined if additional contributions will be made during the fiscal year 2013.

The Company has also established a non-qualified Supplemental Executive Retirement Plan (“SERP”) to provide certain executives with supplemental retirement benefits in addition to the benefits provided by the pension plan due to amounts limited by the Internal Revenue Code of 1986, as amended (“IRS Code”). The periodic pension expense for the supplemental plan amounted to $12 for the three months ended March 31, 2013 and $14 for the three months ended March 31, 2012.

The periodic pension expense for the supplemental plan amounted to $24 for the six months ended March 31, 2013 and $26 for the six months ended March 31, 2012.

For the three months ended March 31, 2013 and 2012 there was $9 and $75, respectively, in contributions to fund benefit payments related to the SERP. For the six months ended March 31, 2013 and 2012, there was $18 and $84, respectively, in contributions to fund benefit payments related to the SERP.

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Guarantor's Obligations Under Guarantees

6 Months Ended

Mar. 31, 2013

Guarantees [Abstract]

Guarantor's Obligations Under Guarantees

Guarantor’s Obligations Under Guarantees

Most letters of credit issued by or on behalf of the Company are standby letters of credit. Standby letters of credit are commitments issued by the Company on behalf of its customer/obligor in favor of a beneficiary that specify an amount the Company can be called upon to pay upon the beneficiary’s compliance with the terms of the letter of credit. These commitments are primarily issued in favor of local municipalities to support the obligor’s completion of real estate development projects. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers.

As of March 31, 2013, the Company had $26,942 in outstanding letters of credit, of which $6,546 are cash secured and $4,524 were secured by other collateral. The carrying values of these obligations are not considered material.

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Stock-Based Compensation (Details 1) (USD $)	6 Months Ended
	Mar. 31, 2013
Summary of Company's stock option activity
Outstanding at beginning of period, Number of Shares	2,875,877
Granted, Number of Shares	1,028,140	[1]
Exercised, Number of Shares	0
Forfeited, Number of Shares	(153,234)
Canceled/expired, Number of Shares	(7,054)
Outstanding at end of period, Number of Shares	1,993,917
Restricted Stock [Member]
Summary of restricted stock award activity
Nonvested shares at beginning of period, Number of Shares	97,817
Granted, Number of Shares	(186,900)	[1]
Vested, Number of Shares	(32,166)
Forfeited, Number of Shares	9,300
Nonvested shares at end of period, Number of Shares	243,251
Summary of restricted stock award activity, weighted average grant date fair value
Nonvested shares at beginning of period, Weighted Average Grant-Date Fair Value	8.31
Granted, Weighted Average Grant-Date Fair Value	9.04	[1]
Vested, Weighted Average Grant-Date Fair Value	8.73
Forfeited, Weighted Average Grant-Date Fair Value	7.28
Nonvested shares at end of period, Weighted Average Grant-Date Fair Value	8.85
Stock Compensation Plan [Member]
Summary of Company's stock option activity
Outstanding at beginning of period, Number of Shares	1,972,480
Granted, Number of Shares	360,500	[1]
Exercised, Number of Shares	(6,250)
Forfeited, Number of Shares	(130,900)
Canceled/expired, Number of Shares	7,054
Outstanding at end of period, Number of Shares	2,188,776
Exercisable at end of period, Number of Shares	1,392,338
Summary of Company's stock option activity, weighted average exercise price
Outstanding at beginning of period, Weighted Average Exercise Price (USD per share)	11.04
Granted, Weighted Average Exercise Price (USD per share)	9.04	[1]
Exercised, Weighted Average Exercise Price (USD per share)	6.71
Forfeited, Weighted Average Exercise Price (USD per share)	10.23
Canceled/expired, Weighted Average Exercise Price (USD per share)	13.97
Outstanding at end of period, Weighted Average Exercise Price (USD per share)	10.76
Exercisable at end of period, Weighted Average Exercise Price (USD per share)	12.08

[1] Reflects certain non-vested stock awards that count as 3.6 shares for each share granted.

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Deposits

6 Months Ended

Mar. 31, 2013

Deposits [Abstract]

Deposits

Deposits

Major classifications of deposits are summarized below:  

	March 31, 2013		September 30, 2012
Transaction accounts:
Demand deposits:
Retail	$	170,102	$	167,050
Business	426,783		412,630
Municipal	26,889		367,624
NOW deposits:
Retail	235,658		213,755
Business	43,389		38,486
Municipal	166,812		195,882
Total transaction accounts	1,069,633		1,395,427
Savings	549,440		506,538
Money market	833,209		821,704
Certificates of deposit	347,376		387,482
Total deposits	$	2,799,658	$	3,111,151

Municipal deposits of $537,070 and $901,739 were included in total deposits at March 31, 2013 and September 30, 2012, respectively. Deposits received for tax receipts were approximately $425,000 at September 30, 2012. See Note 2, for the amount of securities that are pledged as collateral for municipal deposits and other purposes.

Listed below are the Company’s brokered deposits included in the table above:

	March 31, 2013		September 30, 2012
Savings	$	—	$	13,344
Money market	34,641		46,566
Reciprocal CDARs(1)	1,356		1,354
CDARs one way	766		764
Total brokered deposits	$	36,763	$	62,028

^{(1)  Certificate of deposit account registry service.}

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Borrowings

6 Months Ended

Mar. 31, 2013

Debt Instruments [Abstract]

Borrowings

Borrowings

The Company’s FHLB and other borrowings and weighted average interest rates are summarized as follows:

	March 31, 2013				September 30, 2012
	Amount		Rate		Amount		Rate
By type of borrowing:
Advances	$	139,323	2.95	%	$	106,904	3.89	%
Repurchase agreements	228,653		3.24		238,272		3.49
Total borrowings	$	367,976	3.13	%	$	345,176	3.61	%
By remaining period to maturity:
One year or less	$	68,810	1.27	%	$	10,136	1.88	%
One to two years	73,731		1.75		56,819		2.44
Two to three years	—		—		52,693		2.89
Three to four years	102,597		4.19		201		5.32
Four to five years	120,000		4.10		202,386		4.21
Greater than five years	2,838		4.92		22,941		3.74
Total borrowings	$	367,976	3.13	%	$	345,176	3.61	%

As a member of the FHLB, the Bank may borrow in the form of term and overnight borrowings up to the amount of eligible mortgages and securities that have been pledged as collateral under a blanket security agreement. As of March 31, 2013 and September 30, 2012, the Bank had pledged mortgage loans totaling $645,488 and $613,554, respectively. The Bank had also pledged securities to secure borrowings, which are disclosed in Note 2. Securities. As of March 31, 2013, the Bank may increase its borrowing capacity by pledging securities and mortgage loans not required to be pledged for other purposes with a market value of $486,394.

FHLB borrowings which are putable quarterly at the discretion of the FHLB (includes both advance and repurchase agreements) were $200,000 as of March 31, 2013 and September 30, 2012. These borrowings have a weighted average remaining term to the contractual maturity dates of approximately 4.06 years and 4.56 years and weighted average interest rates of 4.23% at March 31, 2013 and September 30, 2012.

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Contingencies

6 Months Ended

Mar. 31, 2013

Commitments and Contingencies Disclosure [Abstract]

Contingencies

Contingencies

Certain premises and equipment are leased under operating leases with terms expiring through 2033. The Company has the option to renew certain of these leases for additional terms.

Litigation

The Company is a defendant in certain claims and legal actions arising in the ordinary course of business. Management, after consultation with legal counsel, does not anticipate losses on any of these claims or actions that would have a material adverse effect on the consolidated financial statements.

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Derivatives (Details) (USD $)	3 Months Ended	6 Months Ended		12 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2013	Mar. 31, 2013	Mar. 31, 2013 Interest Rate Caps [Member]	Sep. 30, 2012 Interest Rate Caps [Member]	Mar. 31, 2013 3rd party interest rate swap [Member]	Sep. 30, 2012 3rd party interest rate swap [Member]	Mar. 31, 2013 3rd party interest rate swap [Member] One Month Libor [Member]	Sep. 30, 2012 3rd party interest rate swap [Member] One Month Libor [Member]	Mar. 31, 2013 Customer interest rate swap [Member]	Sep. 30, 2012 Customer interest rate swap [Member]	Mar. 31, 2013 Customer interest rate swap [Member] One Month Libor [Member]	Sep. 30, 2012 Customer interest rate swap [Member] One Month Libor [Member]
Summary of derivatives
Notional amount			$ (50,000,000)	$ (50,000,000)	$ (55,190,000)	$ (42,332,000)			$ (55,190,000)	$ (42,332,000)
Weighted average maturity (in years)			1 year 8 months 5 days	2 years 2 months 5 days	6 years 3 months 2 days	7 years 3 months 18 days			6 years 3 months 2 days	7 years 3 months 18 days
Weighted average fixed rate			3.75%	3.75%	4.22%	4.29%			4.22%	4.29%
Weighted average variable rate							1 m Libor + 2.45	1 m Libor + 2.28			1 m Libor + 2.45	1 m Libor + 2.28
Basis Spread on Variable Rate					2.45%	2.28%			2.45%	2.28%
Fair value			(1,000)	(2,000)	(2,198,000)	(2,485,000)			(2,198,000)	(2,485,000)
Gain (Loss) on Derivative Instruments, Net, Pretax	$ 0.00	$ 0

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Fair Value Measurements (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Sep. 30, 2012
Investment grades of securities
Available-for-sale Securities, Amortized Cost Basis	$ 931,412	$ 985,508
Fair value	945,678	1,010,872
Privately issued residential mortgage backed securities Level 3 [Member]
Investment grades of securities
Available-for-sale Securities, Amortized Cost Basis	371,594	433,465
Fair value	377,226	444,509
Significant Unobservable Inputs Level 3 [Member]
Investment grades of securities
Fair value	4,216	4,630
Significant Unobservable Inputs Level 3 [Member] | Privately issued residential mortgage backed securities Level 3 [Member]
Investment grades of securities
Available-for-sale Securities, Amortized Cost Basis	4,142
Fair value	4,216
Significant Unobservable Inputs Level 3 [Member] | Privately issued residential mortgage backed securities Level 3 [Member] | Aa3 [Member]
Investment grades of securities
Available-for-sale Securities, Amortized Cost Basis	270
Fair value	282
Significant Unobservable Inputs Level 3 [Member] | Privately issued residential mortgage backed securities Level 3 [Member] | Ba1 [Member]
Investment grades of securities
Available-for-sale Securities, Amortized Cost Basis	108
Fair value	109
Significant Unobservable Inputs Level 3 [Member] | Privately issued residential mortgage backed securities Level 3 [Member] | B1 [Member]
Investment grades of securities
Available-for-sale Securities, Amortized Cost Basis	2,230
Fair value	2,267
Significant Unobservable Inputs Level 3 [Member] | Privately issued residential mortgage backed securities Level 3 [Member] | B3 [Member]
Investment grades of securities
Available-for-sale Securities, Amortized Cost Basis	1,534
Fair value	$ 1,558

XML

Pension and Other Post Retirement Plans (Details) (Textual) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2013	Mar. 31, 2012	Sep. 30, 2012
Defined benefit plan contributions by employer supplemental (SERP)	$ 0	$ 0	$ 18		$ 0
Periodic pension expense for the supplemental plan	12	14	24	26
Contributions to fund benefit payments related to the SERP			$ 0

XML

Fair Value Measurements (Tables)

6 Months Ended

Mar. 31, 2013

Fair Value Disclosures [Abstract]

Investment grades of securities

The credit ratings of private label CMO securities at March 31, 2013 were as follows:

	Amortized cost		Fair value
Credit rating:
Aa3	$	270	$	282
Ba1	108		109
B1	2,230		2,267
B3	1,534		1,558
Total private label CMOs	$	4,142	$	4,216

Estimated fair value on a recurring basis

A summary of assets and liabilities at September 30, 2012 measured at estimated fair value on a recurring basis were as follows:

	September 30, 2012
	Fair value measurements		Quoted prices in active  markets for identical assets Level 1		Significant other observable inputs Level 2		Significant unobservable inputs Level 3
Assets:
Investment securities available for sale:
Residential mortgage-backed securities:
Fannie Mae	$	161,407	$	—	$	161,407	$	—
Freddie Mac	85,260		—		85,260		—
Ginnie Mae	4,778		—		4,778		—
CMO/Other MBS	188,434		—		188,434		—
Private label CMOs	4,630		—		—		4,630
Total residential mortgage-backed securities	444,509		—		439,879		4,630
Other securities:
Federal agencies	408,823		—		408,823		—
Obligations of states and political subdivisions	156,481		—		156,481		—
Equities	1,059		—		1,059		—
Total other securities	566,363		—		566,363		—
Total investment securities available for sale	1,010,872		—		1,006,242		4,630
Interest rate caps and swaps	2,487		—		2,487		—
Total assets measured at estimated fair value on a recurring basis	$	1,013,359	$	—	$	1,008,729	$	4,630
Liabilities:
Interest rate swaps	$	2,485	$	—	$	2,485	$	—
Total liabilities measured at estimated fair value on a recurring basis	$	2,485	$	—	$	2,485	$	—

A summary of assets and liabilities at March 31, 2013 measured at estimated fair value on a recurring basis were as follows:

	March 31, 2013
	Fair value measurements		Quoted prices in active markets for identical assets Level 1		Significant other observable inputs Level 2		Significant unobservable inputs Level  3
Assets:
Investment securities available for sale:
Residential mortgage-backed securities:
Fannie Mae	$	132,099	$	—	$	132,099	$	—
Freddie Mac	55,732		—		55,732		—
Ginnie Mae	4,194		—		4,194		—
CMO/Other MBS	180,985		—		180,985		—
Private label CMOs	4,216		—		—		4,216
Total residential mortgage-backed securities	377,226		—		373,010		4,216
Other securities:
Federal agencies	369,276		—		369,276		—
Corporate bonds	25,879		—		25,879		—
Obligations of states and political subdivisions	172,479		—		172,479		—
Equities	818		—		818		—
Total other securities	568,452		—		568,452		—
Total investment securities available for sale	945,678		—		941,462		4,216
Interest rate caps and swaps	2,199		—		2,199		—
Total assets measured at estimated fair value on a recurring basis	$	947,877	$	—	$	943,661	$	4,216
Liabilities:
Interest rate swaps	$	2,198	$	—	$	2,198	$	—
Total liabilities measured at estimated fair value on a recurring basis	$	2,198	$	—	$	2,198	$	—

Changes in Level 3 assets measured at fair value on recurring basis

The changes in Level 3 assets measured at fair value on a recurring basis are summarized as follows for the three and six months ended March 31, 2013 and 2012:

	Fair value measurement for the three and six months ended March 31, 2013 using significant unobservable inputs Level 3			Fair value measurement for the three and six months ended March 31, 2012 using significant unobservable inputs Level 3
Balance at September 30,	$	4,630		$	4,851
Paydowns	(325		)	(148		)
Accretion, net	6			3
OTTI	(14		)	(38		)
Change in fair value	63			7
Balance at December 31,	4,360			4,675
Paydowns	(196		)	(178		)
Accretion, net	5			3
OTTI	—			—
Change in fair value	47			211
Balance at March 31,	$	4,216		$	4,711

Impaired loans measured at estimated fair value on nonrecurring basis

mpaired loans at March 31, 2013 measured at estimated fair value on a non-recurring basis were as follows:

	March 31, 2013
	Fair value measurements		Quoted prices  in active  markets for identical assets Level 1		Significant other observable inputs Level 2		Significant unobservable inputs Level 3
Residential mortgage	$	8,664	$	—	$	—	$	8,664
Commercial real estate	7,216		—		—		7,216
Commercial & industrial	358		—		—		358
Acquisition, development & construction	3,896		—		—		3,896
Consumer	1,008		—		—		1,008
Total impaired loans measured at fair value	$	21,142	$	—	$	—	$	21,142

Impaired loans at September 30, 2012 measured at estimated fair value on a non-recurring basis were as follows:

	September 30, 2012
	Fair value measurements		Quoted prices  in active  markets for identical assets Level 1		Significant other observable inputs Level 2		Significant unobservable inputs Level 3
Residential mortgage	$	8,628	$	—	$	—	$	8,628
Commercial real estate	6,537		—		—		6,537
Commercial & industrial	95		—		—		95
Acquisition, development & construction	8,232		—		—		8,232
Consumer loans	1,215		—		—		1,215
Total impaired loans measured at fair value	$	24,707	$	—	$	—	$	24,707

Quantitative information of Level 3 assets

The following table presents quantitative information about significant unobservable inputs that are utilized to determine the estimated fair value of Level 3 assets that are presented at fair value on a non-recurring basis at March 31, 2013:

Non-recurring fair value measurements	Fair value		Valuation technique	Unobservable input / assumptions	Range(1)
Impaired loans:
Residential mortgage	$	8,664	Appraisal	Adjustments for comparable properties	18.0% - 23.0%
Commercial real estate	7,216		Appraisal	Adjustments for comparable properties	18.0% - 23.0%
Commercial & industrial	358		Appraisal	Adjustments for comparable properties	18.0% - 32.0%
Acquisition, development & construction	3,896		Appraisal	Adjustments for comparable properties	22.0% - 32.0%
Consumer loans	1,008		Appraisal	Adjustments for comparable properties	18.0% - 23.0%
Assets taken in foreclosure:
Residential mortgage	1,207		Appraisal	Adjustments by management to reflect current conditions/selling costs	18.0% - 23.0%
Commercial real estate	1,239		Appraisal	Adjustments by management to reflect current conditions/selling costs	18.0% - 23.0%
Acquisition, development & construction	3,040		Appraisal	Adjustments by management to reflect current conditions/selling costs	22.0% - 32.0%
Mortgage servicing rights	1,886		Third-party valuation	Discount rate	9.3% - 12.8%
			Third-party valuation	Prepayment speed	100 - 968 (weighted average of 224)

Summary of carrying amounts and estimated fair values of financial assets and liabilities

The following is a summary of the carrying amounts and estimated fair values of financial assets and liabilities (none of which were held for trading purposes) as of March 31, 2013:

	March 31, 2013
	Carrying amount			Quoted prices in active  markets for identical assets Level 1			Significant other observable inputs Level 2			Significant unobservable inputs Level 3
Financial assets:
Cash and due from banks	$	73,396		$	73,396		$	—		$	—
Securities available for sale	945,678			—			941,462			4,216
Securities held to maturity	183,535			—			186,078			—
Loans, net	2,177,011			—			—			2,207,571
Loans held for sale	1,040			—			1,040
Accrued interest receivable on securities	4,597			—			4,597			—
Accrued interest receivable on loans	7,222			—			—			7,222
FHLB stock	20,251			NA			NA			NA
Interest rate caps and swaps	2,199			—			2,199			—
Financial liabilities:
Non-maturity deposits	(2,452,282		)	(2,452,282		)	—			—
Certificates of deposit	(347,376		)	—			(348,076		)	—
FHLB and other borrowings	(367,976		)	—			(400,019		)	—
Mortgage escrow funds	(17,582		)	—			(17,579		)	—
Accrued interest payable on deposits including escrow	(308		)	—			(308		)	—
Accrued interest payable on borrowings	(1,361		)	—			(1,361		)	—
Interest rate caps and swaps	2,198			—			2,198			—

The following is a summary of the carrying amounts and estimated fair values of financial assets and liabilities (none of which were held for trading purposes) as of September 30, 2012:

	September 30, 2012
	Carrying amount			Quoted prices in active  markets for identical assets Level 1			Significant other observable inputs Level 2			Significant unobservable inputs Level 3
Financial assets:
Cash and due from banks	$	437,982		$	437,982		$	—		$	—
Securities available for sale	1,010,872			—			1,006,242			4,630
Securities held to maturity	142,376			—			146,324			—
Loans, net	2,091,190			—			—			2,157,133
Loans held for sale	7,505			—			7,505			—
Accrued interest receivable on securities	4,011			—			4,011			—
Accrued interest receivable on loans	6,502			—			—			6,502
FHLB stock	19,249			NA			NA			NA
Interest rate caps and swaps	2,487			—			2,487			—
Financial liabilities:
Non-maturity deposits	(2,723,669		)	(2,723,669		)	—			—
Certificates of deposit	(387,482		)	—			(389,031		)	—
FHLB and other borrowings	(345,176		)	—			(377,906		)	—
Mortgage escrow funds	(11,919		)	—			(11,917		)	—
Accrued interest payable on deposits including escrow	(500		)	—			(500		)	—
Accrued interest payable on borrowings	(1,442		)	—			(1,442		)	—
Interest rate caps and swaps	2,485			—			2,485			—

XML

Loans (Details Textual) (USD $) In Thousands, unless otherwise specified	3 Months Ended	6 Months Ended		12 Months Ended	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2013	Mar. 31, 2012	Sep. 30, 2012	Dec. 31, 2012 Minimum [Member]	Dec. 31, 2012 Maximum [Member]	Mar. 31, 2013 Additional restricted loan [Member]	Sep. 30, 2012 Additional restricted loan [Member]
Loans (Textual) [Abstract]
Net deferred loan origination Fees and Costs	$ (797)	$ (797)		$ 310
Increased allowance for loan losses	0	0	0
Charge offs resulting from troubled debt restructurings	0	0	0
Amount of residential loans that were modified as TDRS		4
Financing Receivable, Allowance for Credit Losses [Line Items]
Additional restricted loan	1	1					0	4,225
Allowance for Loan and Lease losses period	90 days
Allowance for Loan and Lease losses delinquency period					90 days	120 days
Loans assessed for full or partial charge-off period					90 days	120 days
TDR interest rate modifications period					3 months	30 years
TDR maturity date modifications period					6 months	30 years
Gotham Loans aquired carried at fair value	176,383	176,383		205,764
Discounts associated with loans aquired from Gotham Bank		$ 3,032		$ 3,924

XML

Fair Value Measurements

6 Months Ended

Mar. 31, 2013

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 – Valuation is based on quoted prices in active markets for identical assets and liabilities.

Level 2 – Valuation is determined from quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar instruments in markets that are not active or by model-based techniques in which all significant inputs are observable in the market.

Level 3 – Valuation is derived from model-based techniques in which at least one significant input is unobservable and based on the Company’s own estimates about the assumptions that the market participants would use to value the asset or liability.

When available, the Company attempts to use quoted market prices in active markets to determine fair value and classifies such items as Level 1 or Level 2. If quoted market prices in active markets are not available, fair value is often determined using model-based techniques incorporating various assumptions including interest rates, prepayment speeds and credit losses. Assets and liabilities valued using model-based techniques are classified as either Level 2 or Level 3, depending on the lowest level classification of an input that is considered significant to the overall valuation.

The following is a description of the valuation methodologies used for the Company’s assets and liabilities that are measured on a recurring basis at estimated fair value.

Investment Securities Available for Sale

The majority of the Company’s available for sale investment securities have been valued by reference to prices for similar securities or through model-based techniques in which all significant inputs are observable and, therefore, such valuations have been classified as Level 2.

The Company utilizes an outside vendor to obtain valuations for its securities as well as information received from a third-party investment adviser. The Company utilizes prices from a leading provider of financial market data and compares them to dealer indicative bids from the Company’s external investment adviser. The Company does not make adjustments to these prices unless it is determined there is limited trading activity. For securities where there is limited trading activity (private label collateralized mortgage obligations or “CMOs”) and less observable valuation inputs, the Company has classified such valuations as Level 3.

The Company reviewed the volume and level of activity for its available for sale securities to identify transactions which may not be orderly or reflective of significant activity and volume. Although estimated prices were generally obtained for such securities, there continues to be a decline in the volume and level of activity in the market for its private label mortgage-backed securities as compared to prior periods. The market assumptions regarding credit adjusted cash flows and liquidity influences on discount rates were difficult to observe at the individual security level. Because of the inactivity in the markets and the lack of observable valuation inputs the Company has classified the valuation of private label residential mortgage-backed securities as Level 3. As of March 31, 2013, these securities have an amortized cost of $4,142 and a fair value of $4,216. In determining the fair value of these securities the Company utilized unobservable inputs which reflect assumptions regarding the inputs that market participants would use in pricing these securities in an orderly market. Significant increases (decreases) in any of the unobservable inputs would result in a significantly lower (higher) fair value measurement of the securities. Present value estimated cash flow models were used to discount expected cash flows at the interest rate reflective of similarly structured securities in an orderly market. The resultant prices were averaged with prices obtained from two independent third parties to arrive at the fair value as of March 31, 2013. Management ultimately determines the fair value of Level 3 investment securities. These securities have a weighted average coupon rate of 3.80%, a weighted average life of 4.05 years, a weighted average one month constant prepayment rate history of 12.06 and a weighted average twelve month constant default rate of 3.19%. It was determined that two of these securities with a carrying value of $3,825 and an amortized cost of $3,764 had OTTI which resulted in a $0 and $14 OTTI charge through earnings for the three and six months ended March 31, 2013. These securities have an accumulated OTTI of $136 at March 31, 2013. The calculation of the OTTI was determined by performing a present value of estimated credit loss using the underlying security book yields of 3.12% and 3.39%.

The credit ratings of private label CMO securities at March 31, 2013 were as follows:

	Amortized cost		Fair value
Credit rating:
Aa3	$	270	$	282
Ba1	108		109
B1	2,230		2,267
B3	1,534		1,558
Total private label CMOs	$	4,142	$	4,216

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 counter party as of the measurement date (Level 2). The Company’s derivatives consist of two interest rate caps and twelve interest rate swaps (see note 11).

Commitments to Sell Real Estate Loans

The Company enters into various commitments to sell real estate loans in the secondary market. Such commitments are considered to be derivative financial instruments and therefore are carried at estimated fair value on the consolidated statements of financial condition. 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 values of these commitments are not considered material.

A summary of assets and liabilities at March 31, 2013 measured at estimated fair value on a recurring basis were as follows:

	March 31, 2013
	Fair value measurements		Quoted prices in active markets for identical assets Level 1		Significant other observable inputs Level 2		Significant unobservable inputs Level  3
Assets:
Investment securities available for sale:
Residential mortgage-backed securities:
Fannie Mae	$	132,099	$	—	$	132,099	$	—
Freddie Mac	55,732		—		55,732		—
Ginnie Mae	4,194		—		4,194		—
CMO/Other MBS	180,985		—		180,985		—
Private label CMOs	4,216		—		—		4,216
Total residential mortgage-backed securities	377,226		—		373,010		4,216
Other securities:
Federal agencies	369,276		—		369,276		—
Corporate bonds	25,879		—		25,879		—
Obligations of states and political subdivisions	172,479		—		172,479		—
Equities	818		—		818		—
Total other securities	568,452		—		568,452		—
Total investment securities available for sale	945,678		—		941,462		4,216
Interest rate caps and swaps	2,199		—		2,199		—
Total assets measured at estimated fair value on a recurring basis	$	947,877	$	—	$	943,661	$	4,216
Liabilities:
Interest rate swaps	$	2,198	$	—	$	2,198	$	—
Total liabilities measured at estimated fair value on a recurring basis	$	2,198	$	—	$	2,198	$	—

A summary of assets and liabilities at September 30, 2012 measured at estimated fair value on a recurring basis were as follows:

	September 30, 2012
	Fair value measurements		Quoted prices in active  markets for identical assets Level 1		Significant other observable inputs Level 2		Significant unobservable inputs Level 3
Assets:
Investment securities available for sale:
Residential mortgage-backed securities:
Fannie Mae	$	161,407	$	—	$	161,407	$	—
Freddie Mac	85,260		—		85,260		—
Ginnie Mae	4,778		—		4,778		—
CMO/Other MBS	188,434		—		188,434		—
Private label CMOs	4,630		—		—		4,630
Total residential mortgage-backed securities	444,509		—		439,879		4,630
Other securities:
Federal agencies	408,823		—		408,823		—
Obligations of states and political subdivisions	156,481		—		156,481		—
Equities	1,059		—		1,059		—
Total other securities	566,363		—		566,363		—
Total investment securities available for sale	1,010,872		—		1,006,242		4,630
Interest rate caps and swaps	2,487		—		2,487		—
Total assets measured at estimated fair value on a recurring basis	$	1,013,359	$	—	$	1,008,729	$	4,630
Liabilities:
Interest rate swaps	$	2,485	$	—	$	2,485	$	—
Total liabilities measured at estimated fair value on a recurring basis	$	2,485	$	—	$	2,485	$	—

There were no transfers between Level 1 and Level 2 inputs during the six months ended March 31, 2013 and 2012.

The changes in Level 3 assets measured at fair value on a recurring basis are summarized as follows for the three and six months ended March 31, 2013 and 2012:

	Fair value measurement for the three and six months ended March 31, 2013 using significant unobservable inputs Level 3			Fair value measurement for the three and six months ended March 31, 2012 using significant unobservable inputs Level 3
Balance at September 30,	$	4,630		$	4,851
Paydowns	(325		)	(148		)
Accretion, net	6			3
OTTI	(14		)	(38		)
Change in fair value	63			7
Balance at December 31,	4,360			4,675
Paydowns	(196		)	(178		)
Accretion, net	5			3
OTTI	—			—
Change in fair value	47			211
Balance at March 31,	$	4,216		$	4,711

Changes in fair value are included as part of net unrealized holding gains (losses) on securities available for sale net of related tax expense on the Consolidated Statements of Comprehensive Income (Loss).

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).

Mortgage loans held for sale are generally sold with servicing rights retained. The carrying value of mortgage loans sold is reduced by the amount allocated to the value of the servicing rights which is 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. Such 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 valuation amount does not necessarily represent the fair value of the loan. Real estate collateral is valued using independent appraisals or other indications of value based upon recent comparable sales of similar properties or assumptions generally observable by market participants. Any fair value adjustments for loans categorized here are classified as Level 3. Estimates of fair value used for other collateral supporting commercial loans generally are based on assumptions not observable in the market place and therefore such valuations have been classified as Level 3. 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 $50,176 and $50,078 which equals the carrying value less the allowance for loan losses allocated to these loans at March 31, 2013 and September 30, 2012, respectively. Changes in fair value recognized on provisions on loans held by the Company were $3,947 and $2,359 for the six months ended March 31, 2013 and 2012, 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. Nearly all of our impaired loans are considered collateral dependent.

Impaired loans at March 31, 2013 measured at estimated fair value on a non-recurring basis were as follows:

	March 31, 2013
	Fair value measurements		Quoted prices  in active  markets for identical assets Level 1		Significant other observable inputs Level 2		Significant unobservable inputs Level 3
Residential mortgage	$	8,664	$	—	$	—	$	8,664
Commercial real estate	7,216		—		—		7,216
Commercial & industrial	358		—		—		358
Acquisition, development & construction	3,896		—		—		3,896
Consumer	1,008		—		—		1,008
Total impaired loans measured at fair value	$	21,142	$	—	$	—	$	21,142

Impaired loans at September 30, 2012 measured at estimated fair value on a non-recurring basis were as follows:

	September 30, 2012
	Fair value measurements		Quoted prices  in active  markets for identical assets Level 1		Significant other observable inputs Level 2		Significant unobservable inputs Level 3
Residential mortgage	$	8,628	$	—	$	—	$	8,628
Commercial real estate	6,537		—		—		6,537
Commercial & industrial	95		—		—		95
Acquisition, development & construction	8,232		—		—		8,232
Consumer loans	1,215		—		—		1,215
Total impaired loans measured at fair value	$	24,707	$	—	$	—	$	24,707

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 vendor, 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 for impairment purposes is considered a Level 3 valuation. The fair value of mortgage servicing rights at March 31, 2013 and 2012 was $1,886 and $1,433.

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 loans 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 property and upon initial recognition, were re-measured and reported at fair value through a charge-off to the allowance for loan losses based upon 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. Such adjustments have been classified as Level 3. Appraisals are reviewed by our credit department, our external loan review consultant and verified by officers in our credit administration area. Assets taken in foreclosure of defaulted loans subject to non-recurring fair value measurement were $5,486 and $6,403 at March 31, 2013 and September 30, 2012, respectively. There were $606 and $208 changes in fair value recognized through income for those foreclosed assets held by the Company during the three months ending March 31, 2013 and 2012, respectively.

There were $815 and $276 changes in fair value recognized through income for those foreclosed assets held by the Company during the six months ending March 31, 2013 and 2012, respectively.

Significant Unobservable Inputs to Level 3 Measurements

The following table presents quantitative information about significant unobservable inputs that are utilized to determine the estimated fair value of Level 3 assets that are presented at fair value on a non-recurring basis at March 31, 2013:

Non-recurring fair value measurements	Fair value		Valuation technique	Unobservable input / assumptions	Range(1)
Impaired loans:
Residential mortgage	$	8,664	Appraisal	Adjustments for comparable properties	18.0% - 23.0%
Commercial real estate	7,216		Appraisal	Adjustments for comparable properties	18.0% - 23.0%
Commercial & industrial	358		Appraisal	Adjustments for comparable properties	18.0% - 32.0%
Acquisition, development & construction	3,896		Appraisal	Adjustments for comparable properties	22.0% - 32.0%
Consumer loans	1,008		Appraisal	Adjustments for comparable properties	18.0% - 23.0%
Assets taken in foreclosure:
Residential mortgage	1,207		Appraisal	Adjustments by management to reflect current conditions/selling costs	18.0% - 23.0%
Commercial real estate	1,239		Appraisal	Adjustments by management to reflect current conditions/selling costs	18.0% - 23.0%
Acquisition, development & construction	3,040		Appraisal	Adjustments by management to reflect current conditions/selling costs	22.0% - 32.0%
Mortgage servicing rights	1,886		Third-party valuation	Discount rate	9.3% - 12.8%
			Third-party valuation	Prepayment speed	100 - 968 (weighted average of 224)

⁽¹⁾ Represents range of discount factors applied to the appraisal to determine fair value. The amounts used for mortgage servicing rights are discounts applied by a third-party valuation provider which the Company believes are appropriate.

Fair Values of Financial Instruments

FASB Codification Topic 825 - Financial Instruments, requires disclosure of fair value information for those financial instruments for which it is practicable to estimate fair value, whether or not such financial instruments are recognized in the consolidated statements of financial condition for interim and annual periods. Fair value is the amount at 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 values of financial assets and liabilities (none of which were held for trading purposes) as of March 31, 2013:

	March 31, 2013
	Carrying amount			Quoted prices in active  markets for identical assets Level 1			Significant other observable inputs Level 2			Significant unobservable inputs Level 3
Financial assets:
Cash and due from banks	$	73,396		$	73,396		$	—		$	—
Securities available for sale	945,678			—			941,462			4,216
Securities held to maturity	183,535			—			186,078			—
Loans, net	2,177,011			—			—			2,207,571
Loans held for sale	1,040			—			1,040
Accrued interest receivable on securities	4,597			—			4,597			—
Accrued interest receivable on loans	7,222			—			—			7,222
FHLB stock	20,251			NA			NA			NA
Interest rate caps and swaps	2,199			—			2,199			—
Financial liabilities:
Non-maturity deposits	(2,452,282		)	(2,452,282		)	—			—
Certificates of deposit	(347,376		)	—			(348,076		)	—
FHLB and other borrowings	(367,976		)	—			(400,019		)	—
Mortgage escrow funds	(17,582		)	—			(17,579		)	—
Accrued interest payable on deposits including escrow	(308		)	—			(308		)	—
Accrued interest payable on borrowings	(1,361		)	—			(1,361		)	—
Interest rate caps and swaps	2,198			—			2,198			—

The following is a summary of the carrying amounts and estimated fair values of financial assets and liabilities (none of which were held for trading purposes) as of September 30, 2012:

	September 30, 2012
	Carrying amount			Quoted prices in active  markets for identical assets Level 1			Significant other observable inputs Level 2			Significant unobservable inputs Level 3
Financial assets:
Cash and due from banks	$	437,982		$	437,982		$	—		$	—
Securities available for sale	1,010,872			—			1,006,242			4,630
Securities held to maturity	142,376			—			146,324			—
Loans, net	2,091,190			—			—			2,157,133
Loans held for sale	7,505			—			7,505			—
Accrued interest receivable on securities	4,011			—			4,011			—
Accrued interest receivable on loans	6,502			—			—			6,502
FHLB stock	19,249			NA			NA			NA
Interest rate caps and swaps	2,487			—			2,487			—
Financial liabilities:
Non-maturity deposits	(2,723,669		)	(2,723,669		)	—			—
Certificates of deposit	(387,482		)	—			(389,031		)	—
FHLB and other borrowings	(345,176		)	—			(377,906		)	—
Mortgage escrow funds	(11,919		)	—			(11,917		)	—
Accrued interest payable on deposits including escrow	(500		)	—			(500		)	—
Accrued interest payable on borrowings	(1,442		)	—			(1,442		)	—
Interest rate caps and swaps	2,485			—			2,485			—

The following paragraphs summarize the principal methods and assumptions, not previously presented, used by management to estimate the fair value of the Company’s financial instruments.

(a) Cash and due from banks

The carrying value of cash and due from banks approximates their fair value and are classified as Level 1.

(b) Securities

The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, live trading levels, market consensus prepayment speeds, credit information and the bond’s terms and conditions among other items. For certain securities, for which the inputs used by independent pricing services were derived from unobservable market information, the Company evaluated the appropriateness of each price. The Company reviewed the volume and level of activity for its different classes of securities to determine whether transactions were not considered orderly. For these securities, the quoted prices received from independent pricing services may be adjusted, as necessary, to estimate fair value. If applicable, adjustments to fair value were based on averaging present value cash flow model projections with prices obtained from independent pricing services.

(c) Loans held for sale

Loans held for sale are recorded at the lower of cost or fair value in accordance with GAAP and are classified as Level 2.

(d) Loans

Fair values were estimated for portfolios of loans with similar financial characteristics. For valuation purposes, the total loan portfolio was segregated into adjustable-rate and fixed-rate categories. Fixed-rate loans were further segmented by type, such as residential mortgage, commercial mortgage, commercial business and consumer loans. Loans were also segmented by maturity dates. Fair values were estimated by discounting scheduled future cash flows through estimated maturity using a discount rate equivalent to the current market rate on loans that are similar with regard to collateral, maturity and the type of borrower. The discounted value of the cash flows was reduced by a credit risk adjustment based on loan categories. Based on the current composition of the Company’s loan portfolio, as well as past experience and current economic conditions and trends, the future cash flows were adjusted by prepayment assumptions that shortened the estimated remaining time to maturity and therefore affected the fair value estimates resulting in a Level 3 classification.

(e) FHLB stock

It is not practical to determine the fair value of FHLB stock due to the restrictions on transfer of their securities.

(f) Deposits and mortgage escrow funds

In accordance with FASB Codification Topic 825, deposits with no stated maturity (such as savings, demand and money market deposits) were assigned fair values equal to the carrying amounts payable on demand and are classified as Level 1. Certificates of deposit and mortgage escrow funds were segregated by account type and original term, and fair values were estimated by discounting the contractual cash flows and are classified as Level 2. The discount rate for each account grouping was 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 deposit base. Management believes 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.

(g) Borrowings

Fair values of FHLB of New York and other borrowings were estimated by discounting the contractual cash flows and are classified as Level 2. A discount rate was utilized for each outstanding borrowing equivalent to the then-current rate offered on borrowings of similar type and maturity.

(h) Accrued interest receivable/payable

The carrying amounts of accrued interest approximate fair value and are classified as Level 2.

(i) Other financial instruments

The other financial assets and liabilities listed in the preceding table 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 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 March 31, 2013 and September 30, 2012, the estimated fair values of these instruments approximated the related carrying amounts, which were insignificant.

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Securities (Tables)

6 Months Ended

Mar. 31, 2013

Marketable Securities [Abstract]

Summary of securities available for sale

	March 31, 2013									September 30, 2012
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value		Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
Available for Sale
Residential mortgage-backed securities:
Fannie Mae	$	130,113	$	2,552	$	(566	)	$	132,099	$	155,601	$	5,806	$	—		$	161,407
Freddie Mac	53,518		2,214		—			55,732		81,509		3,751		—			85,260
Ginnie Mae	3,946		248		—			4,194		4,488		290		—			4,778
CMO/Other MBS	184,017		1,680		(496		)	185,201		191,867		1,787		(590		)	193,064
Total residential mortgage-backed securities	371,594		6,694		(1,062		)	377,226		433,465		11,634		(590		)	444,509
Other securities:
Federal agencies	368,576		1,302		(602		)	369,276		404,820		4,013		(10		)	408,823
Corporate bonds	25,890		11		(22		)	25,879		—		—		—			—
Obligations of states and political subdivisions	164,534		8,432		(487		)	172,479		146,136		10,349		(4		)	156,481
Equities	818		—		—			818		1,087		—		(28		)	1,059
Total other securities	559,818		9,745		(1,111		)	568,452		552,043		14,362		(42		)	566,363
Total securities available for sale	$	931,412	$	16,439	$	(2,173	)	$	945,678	$	985,508	$	25,996	$	(632	)	$	1,010,872

Held-to-maturity securities

	March 31, 2013									September 30, 2012
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value		Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
Held to Maturity
Residential mortgage-backed securities:
Fannie Mae	$	23,307	$	790	$	—		$	24,097	$	28,637	$	1,212	$	—		$	29,849
Freddie Mac	32,212		785		—			32,997		42,706		1,347		—			44,053
CMO/Other MBS	29,113		217		(40		)	29,290		27,921		226		(28		)	28,119
Total residential mortgage-backed securities	84,632		1,792		(40		)	86,384		99,264		2,785		(28		)	102,021
Other securities:
Federal agencies	77,319		88		(129		)	77,278		22,236		106		—			22,342
Obligations of states and political subdivisions	20,084		881		(67		)	20,898		19,376		1,059		—			20,435
Other	1,500		18		—			1,518		1,500		26		—			1,526
Total other securities	98,903		987		(196		)	99,694		43,112		1,191		—			44,303
Total held to maturity	$	183,535	$	2,779	$	(236	)	$	186,078	$	142,376	$	3,976	$	(28	)	$	146,324

Investments Classified by Contractual Maturity Date [Table Text Block]

The amortized cost and estimated fair value of securities at March 31, 2013 are presented below by contractual maturity. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Residential mortgage-backed securities are shown separately since they are not due at a single maturity date. Equities are shown separately since there is no maturity date.

	March 31, 2013
	Available for sale				Held to maturity
	Amortized cost		Fair value		Amortized cost		Fair value
Remaining period to contractual maturity:
One year or less	$	2,000	$	2,013	$	3,854	$	3,866
One to five years	86,072		87,687		3,028		3,158
Five to ten years	427,202		432,688		84,462		84,825
Greater than ten years	43,726		45,246		7,559		7,845
Total other securities	559,000		567,634		98,903		99,694
Residential mortgage-backed securities	371,594		377,226		84,632		86,384
Equities	818		818		—		—
Total securities available for sale	$	931,412	$	945,678	$	183,535	$	186,078

Sale of Securities [Table Text Block]

Sales of securities were as follows:

	For the three months ended March 31,						For the six months ended March 31,
	2013			2012			2013			2012
Available for sale securities:
Proceeds from sales	$	94,839		$	67,078		$	136,804		$	150,657
Gross realized gains	2,202			2,912			3,618			4,901
Gross realized losses	(10		)	(13		)	(10		)	(13		)
Tax expense of securities gains	(552		)	(763		)	(1,010		)	(1,282		)
Held to maturity securities: (1)
Proceeds from sales	1,234			—			1,234			—
Gross realized gains	37			—			37			—
Tax expense of securities gains	(9		)	—			(10		)	—

⁽¹⁾ The Company sold eight held to maturity securities after the Company had already collected at least 85% of the principal outstanding at acquisition.

Securities available for sale with unrealized losses

The following table summarizes those securities with unrealized losses, segregated by the length of time in a continuous unrealized loss position:

	Continuous unrealized loss position
	Less than 12 Months					12 months or longer				Total
Available for Sale	Fair value		Unrealized losses			Fair value		Unrealized losses		Fair value		Unrealized losses
March 31, 2013
Residential mortgage-backed securities:
Federal agencies	$	53,011	$	(566	)	$	—	$	—	$	53,011	$	(566	)
CMO/Other MBS	62,165		(496		)	—		—		62,165		(496		)
Total residential mortgage-backed securities	115,176		(1,062		)	—		—		115,176		(1,062		)
Federal agencies	145,726		(602		)	—		—		145,726		(602		)
Obligations of states and political subdivisions	23,664		(487		)	—		—		23,664		(487		)
Corporate bonds	13,100		(22		)	—		—		13,100		(22		)
Total	$	297,666	$	(2,173	)	$	—	$	—	$	297,666	$	(2,173	)

September 30, 2012
CMO/Other MBS	$	64,065	$	(590	)	$	—	$	—		$	64,065	$	(590	)
Federal agencies	4,993		(10		)	—		—			4,993		(10		)
Obligations of states and political subdivisions	716		(4		)	—		—			716		(4		)
Equities	—		—			809		(28		)	809		(28		)
Total	$	69,774	$	(604	)	$	809	$	(28	)	$	70,583	$	(632	)

Securities held to maturity with unrealized losses

	Continuous unrealized loss position
	Less than 12 Months					12 Months or longer				Total
Held to Maturity	Fair value		Unrealized losses			Fair value		Unrealized losses		Fair value		Unrealized losses
March 31, 2013
CMO/Other MBS	$	4,911	$	(40	)	$	—	$	—	$	4,911	$	(40	)
Federal agencies	37,211		(129		)	—		—		37,211		(129		)
Obligations of states and political subdivisions	5,294		(67		)	—		$	—	5,294		(67		)
Total	$	47,416	$	(236	)	$	—	$	—	$	47,416	$	(236	)

September 30, 2012
CMO/Other MBS	$	13,189	$	(28	)	$	—	$	—	$	13,189	$	(28	)
Total	$	13,189	$	(28	)	$	—	$	—	$	13,189	$	(28	)

Schedule of Financial Instruments Owned and Pledged as Collateral [Table Text Block]

Securities pledged for borrowings at FHLB and other borrowings, and securities pledged for municipal deposits and other purposes were as follows:

	Securities pledged at
	March 31, 2013		September 30, 2012
Available for sale securities pledged for borrowings, at fair value	$	206,073	$	144,041
Available for sale securities pledged for municipal deposits, at fair value	473,443		703,261
Held to maturity securities pledged for borrowings, at amortized cost	51,286		46,538
Held to maturity securities pledged for municipal deposits, at amortized cost	92,958		138,855

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Loans (Details 7) (USD $) In Thousands, unless otherwise specified	1 Months Ended	3 Months Ended						3 Months Ended			3 Months Ended		3 Months Ended		12 Months Ended
	Feb. 28, 2013	Mar. 31, 2013 loans	Mar. 31, 2012 loans	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2013 One-to-four family residential [Member] loans	Mar. 31, 2012 One-to-four family residential [Member] loans	Mar. 31, 2013 Commerical real estate [Member] loans	Mar. 31, 2013 Commerical real estate [Member]	Mar. 31, 2012 Commerical real estate [Member] loans	Mar. 31, 2013 Commercial Portfolio Segment [Member] loans	Mar. 31, 2013 Commercial Portfolio Segment [Member]	Mar. 31, 2013 Acquisition, development & construction [Member] loans	Mar. 31, 2012 Acquisition, development & construction [Member] loans	Sep. 30, 2012 Acquisition, development & construction [Member]	Mar. 31, 2013 Acquisition, development & construction [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications During Period, Number of Contracts		7						2					5	0
Financing Receivable, Modifications During Period, Recorded Investment	$ 3,218		$ 446					$ 169						$ 446	$ 3,049
Financing Receivable, Post Modification		3,218	446								169		3,049	446
Restructured Loans:
Number of loans		12	2			1	1	1		1	3		7
Pre-Modification				8,166	1,296	275	446		450	850		1,669				5,772
Post-Modification		$ 8,166	$ 1,296			$ 275	$ 446	$ 450		$ 850	$ 1,669		$ 5,772

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Securities (Details Textual) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2013 Securities	Mar. 31, 2012	Sep. 30, 2012 Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of held to maturity securities sold with a remaining balance of less than 85% of isssue			8
Available For Sale Securities Continuous Unrealized Loss Position Twelve Months Or Longer Number Of Securities			148
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Number Of Securities			0
Available-for-sale Securities Pledged as Collateral	$ 473,443	$ 703,261	$ 473,443	$ 703,261
Impairment charges incurred on CMO's	0		14
Available-for-sale Securities, Amortized Cost Basis	931,412		931,412		985,508
Fair value	945,678		945,678		1,010,872
Available for sale	945,678		945,678		1,010,872
Available-for-sale Securities, Gross Realized Losses	(10)	(13)		(13)	(10)
Tax expense of securities gains	(552)	(763)	(1,010)	(1,282)
Proceeds from sales of securities available for sale	94,839	67,078
Proceeds from Sale of Available-for-sale Securities			136,804	150,657
Gross realized gains on sale of securities	2,202	2,912	3,618	4,901
Securities pledged as collateral	92,958	138,855	92,958	138,855
Available for sale securities, equity securities					1
Proceeds from Sale of Held-to-maturity Securities	1,234	0	1,234	0
Held-to-maturity Securities, Sold Security, Realized Gain (Loss)	37	0	37	0
Tax expense held to maturity security gains	(9)	0	(10)	0
CMO/Other MBS [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of individual private label CMO's	4		4
Impairment charges incurred on CMO's			14	38
Total cumulative impairment charges on CMO's	136		136
Available-for-sale Securities, Amortized Cost Basis	4,142		4,142
Fair value	4,216		4,216
Securities considered to be below investment grade	2		2
Amortized cost of impaired private label CMO's	3,764		3,764
Fair value of impaired private label CMO's	3,825		3,825
Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment charges incurred on CMO's	7	0	18	0
Available for sale	818		818		809
Other than temporary impairment Investments available for sale accumulated			222
Federal Home Loan Bank Borrowings [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities Pledged as Collateral	206,073	144,041	206,073	144,041
Securities pledged as collateral	$ 51,286	$ 46,538	$ 51,286	$ 46,538

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Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2013	Mar. 31, 2012
Net income	$ 6,529	$ 5,701	$ 13,549	$ 11,418
Other comprehensive (loss) income:
Net unrealized holding (losses) gains on securities available for sale net of related tax (benefit) expense of ($1,885), ($220) and ($3,039) $2,090	2,753	320	4,446	(3,056)
Less:
Reclassification adjustment for net realized gains included in net income, net of related income tax expense of $905, $1,177 and $1,480, $1,985	1,324	1,722	2,165	2,903
Reclassification adjustment for other than temporary impaired losses included in net income, net of related income tax benefit of $3, $0 and $13, $15	(4)	0	(19)	(23)
Other comprehensive income (loss)	(4,073)	(2,042)	(6,592)	176
Change in funded status of defined benefit plans, net of related income tax expense of $224, $231 and $419, $460	327	335	612	673
Other comprehensive (loss) income	(3,746)	(1,707)	(5,980)	849
Total comprehensive income	$ 2,783	$ 3,994	$ 7,569	$ 12,267

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Basis of Presentation

6 Months Ended

Mar. 31, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The consolidated financial statements include the accounts of Provident New York Bancorp (“Provident” or the “Company”) and its consolidated subsidiaries. Provident Bank (the “Bank”) is the Company’s principal subsidiary and accounts for substantially all of the Company’s assets and results from operations. The Company’s other subsidiaries include:

• PB Madison Holding, Inc., a holding company for the Company’s 50% joint venture in PB Madison Title Agency, L.P., a title insurance agency, which provides title searches and title insurance for residential and commercial real estate;

• LandSave Development, LLC an inactive entity formally known as Hudson Valley Investment Advisors, LLC, the assets of which were sold in November 2012, with modest results from operations included in the Company’s financial statements for fiscal 2013; and

• Provident Risk Management, Inc. (a Vermont captive insurance company).

The Bank’s wholly-owned subsidiaries include:

• Provident Municipal Bank (“PMB”) which is a limited-purpose, New York State-chartered commercial bank formed to accept deposits from municipalities in the Bank’s market area;

• Provident REIT, Inc. and WSB Funding, Inc. which are real estate investment trusts that hold a portion of the Bank’s real estate mortgage loans;

• Provest Services Corp. I, which has an investment in a low-income housing partnership;

• Provest Services Corp. II, a New York licensed insurance agent, which has engaged a third-party provider to sell mutual funds, annuities and insurance to the Bank’s customers; and

• Subsidiaries that hold foreclosed properties acquired by the Bank.

Intercompany transactions and balances are eliminated in consolidation.

The consolidated financial statements have been prepared by management without audit, but, 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 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 six months ended March 31, 2013 are not necessarily indicative of results to be expected for other interim periods or the entire fiscal year ending September 30, 2013. The unaudited consolidated financial statements presented herein should be read in conjunction with the annual audited financial statements included in the Company’s Form 10-K for the fiscal year ended September 30, 2012.

The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. 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. A material estimate that is particularly susceptible to near-term change is the allowance for loan loss (see note 3), which reflects the application of a critical accounting policy.

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Earnings Per Common Share (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2013	Mar. 31, 2012
Computation of basic and diluted earnings per share
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,332,619	1,710,943	1,344,024	1,832,280
Basic earnings per common share
Weighted average common shares outstanding (basic)	43,743,640	37,280,651	43,704,163	37,266,480
Net income	$ 6,529	$ 5,701	$ 13,549	$ 11,418
Basic earnings per common share	$ 0.15	$ 0.15	$ 0.31	$ 0.31
Diluted earnings per common share
Weighted average common shares outstanding (basic)	43,743,640	37,280,651	43,704,163	37,266,480
Effect of common stock equivalents	104,846	36,127	86,752	9,153
Weighted average common shares diluted	43,848,486	37,316,778	43,790,915	37,275,633
Net income	$ 6,529	$ 5,701	$ 13,549	$ 11,418
Diluted earnings per common share	$ 0.15	$ 0.15	$ 0.31	$ 0.31

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Fair Value Measurements (Details 3) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Sep. 30, 2012
Quoted Prices in Active markets for Identical Assets Level 1 [Member]
Impaired loans measured at estimated fair value on nonrecurring basis
Loans, net	$ 0	$ 0
Significant Other Observable Inputs Level 2 [Member]
Impaired loans measured at estimated fair value on nonrecurring basis
Loans, net	0	0
Significant Unobservable Inputs Level 3 [Member]
Impaired loans measured at estimated fair value on nonrecurring basis
Loans, net	2,207,571	2,157,133
Fair Value, Measurements, Nonrecurring [Member]
Impaired loans measured at estimated fair value on nonrecurring basis
Loans, net		24,707
Fair Value, Measurements, Nonrecurring [Member] | Fair Value Measurements [Member]
Impaired loans measured at estimated fair value on nonrecurring basis
Loans, net	21,142
Fair Value, Measurements, Nonrecurring [Member] | Quoted Prices in Active markets for Identical Assets Level 1 [Member]
Impaired loans measured at estimated fair value on nonrecurring basis
Loans, net	0	0
Fair Value, Measurements, Nonrecurring [Member] | Significant Other Observable Inputs Level 2 [Member]
Impaired loans measured at estimated fair value on nonrecurring basis
Loans, net	0	0
Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs Level 3 [Member]
Impaired loans measured at estimated fair value on nonrecurring basis
Loans, net	21,142	24,707
Real estate-residential mortgage [Member] | Fair Value, Measurements, Nonrecurring [Member]
Impaired loans measured at estimated fair value on nonrecurring basis
Loans, net		8,628
Real estate-residential mortgage [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value Measurements [Member]
Impaired loans measured at estimated fair value on nonrecurring basis
Loans, net	8,664
Real estate-residential mortgage [Member] | Fair Value, Measurements, Nonrecurring [Member] | Quoted Prices in Active markets for Identical Assets Level 1 [Member]
Impaired loans measured at estimated fair value on nonrecurring basis
Loans, net	0	0
Real estate-residential mortgage [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Other Observable Inputs Level 2 [Member]
Impaired loans measured at estimated fair value on nonrecurring basis
Loans, net	0	0
Real estate-residential mortgage [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs Level 3 [Member]
Impaired loans measured at estimated fair value on nonrecurring basis
Loans, net	8,664	8,628
Real estate-commercial mortgage [Member] | Fair Value, Measurements, Nonrecurring [Member]
Impaired loans measured at estimated fair value on nonrecurring basis
Loans, net		6,537
Real estate-commercial mortgage [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value Measurements [Member]
Impaired loans measured at estimated fair value on nonrecurring basis
Loans, net	7,216
Real estate-commercial mortgage [Member] | Fair Value, Measurements, Nonrecurring [Member] | Quoted Prices in Active markets for Identical Assets Level 1 [Member]
Impaired loans measured at estimated fair value on nonrecurring basis
Loans, net	0	0
Real estate-commercial mortgage [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Other Observable Inputs Level 2 [Member]
Impaired loans measured at estimated fair value on nonrecurring basis
Loans, net	0	0
Real estate-commercial mortgage [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs Level 3 [Member]
Impaired loans measured at estimated fair value on nonrecurring basis
Loans, net	7,216	6,537
Commercial business loans [Member] | Fair Value, Measurements, Nonrecurring [Member]
Impaired loans measured at estimated fair value on nonrecurring basis
Loans, net		95
Commercial business loans [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value Measurements [Member]
Impaired loans measured at estimated fair value on nonrecurring basis
Loans, net	358
Commercial business loans [Member] | Fair Value, Measurements, Nonrecurring [Member] | Quoted Prices in Active markets for Identical Assets Level 1 [Member]
Impaired loans measured at estimated fair value on nonrecurring basis
Loans, net	0	0
Commercial business loans [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Other Observable Inputs Level 2 [Member]
Impaired loans measured at estimated fair value on nonrecurring basis
Loans, net	0	0
Commercial business loans [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs Level 3 [Member]
Impaired loans measured at estimated fair value on nonrecurring basis
Loans, net	358	95
Acquisition, development and construction [Member] | Fair Value, Measurements, Nonrecurring [Member]
Impaired loans measured at estimated fair value on nonrecurring basis
Loans, net		8,232
Acquisition, development and construction [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value Measurements [Member]
Impaired loans measured at estimated fair value on nonrecurring basis
Loans, net	3,896
Acquisition, development and construction [Member] | Fair Value, Measurements, Nonrecurring [Member] | Quoted Prices in Active markets for Identical Assets Level 1 [Member]
Impaired loans measured at estimated fair value on nonrecurring basis
Loans, net	0	0
Acquisition, development and construction [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Other Observable Inputs Level 2 [Member]
Impaired loans measured at estimated fair value on nonrecurring basis
Loans, net	0	0
Acquisition, development and construction [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs Level 3 [Member]
Impaired loans measured at estimated fair value on nonrecurring basis
Loans, net	3,896	8,232
Consumer loans [Member] | Fair Value, Measurements, Nonrecurring [Member]
Impaired loans measured at estimated fair value on nonrecurring basis
Loans, net		1,215
Consumer loans [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value Measurements [Member]
Impaired loans measured at estimated fair value on nonrecurring basis
Loans, net	1,008
Consumer loans [Member] | Fair Value, Measurements, Nonrecurring [Member] | Quoted Prices in Active markets for Identical Assets Level 1 [Member]
Impaired loans measured at estimated fair value on nonrecurring basis
Loans, net	0	0
Consumer loans [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Other Observable Inputs Level 2 [Member]
Impaired loans measured at estimated fair value on nonrecurring basis
Loans, net	0	0
Consumer loans [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs Level 3 [Member]
Impaired loans measured at estimated fair value on nonrecurring basis
Loans, net	$ 1,008	$ 1,215

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Loans (Tables)

6 Months Ended

Mar. 31, 2013

Loans [Abstract]

Components of loan portfolio excluding loans held for sale

The components of the loan portfolio, excluding loans held for sale, were as follows:

	March 31, 2013			September 30, 2012
Residential mortgage	$	365,485		$	350,022
Commercial:
Commercial real estate	1,149,463			1,072,504
Commercial & industrial	370,246			343,307
Acquisition, development & construction	118,115			144,061
Total commercial	1,637,824			1,559,872
Consumer:
Home equity lines of credit	161,646			165,200
Homeowner	31,683			34,999
Other consumer loans	7,917			9,379
Total consumer	201,246			209,578
Total loans	2,204,555			2,119,472
Allowance for loan losses	(27,544		)	(28,282		)
Total loans, net	$	2,177,011		$	2,091,190

Troubled debt restructurings and other real estate owned

The following tables set forth the amounts and status of the Company’s loans and troubled debt restructurings (“TDRs”) at March 31, 2013 and September 30, 2012:

	March 31, 2013
	Current		30-59 Days past due		60-89 Days past due		90+ Days past due		Non- accrual		Total
Loans by segment:
Residential mortgage	$	353,107	$	1,053	$	603	$	2,368	$	8,354	$	365,485
Commercial real estate	1,130,964		6,073		339		1,132		10,955		1,149,463
Commercial & industrial	365,071		2,164		1,867		341		803		370,246
Acquisition, development & construction	112,885		973		—		—		4,257		118,115
Consumer	197,744		430		6		416		2,650		201,246
Total	$	2,159,771	$	10,693	$	2,815	$	4,257	$	27,019	$	2,204,555
Total TDRs included above	$	21,318	$	543	$	—	$	—	$	1,706	$	23,567
Non-performing loans:
Loans 90+ days past due and still accruing									$	4,257
Non-accrual loans									27,019
Total non-performing loans									$	31,276

	September 30, 2012
	Current		30-59 Days past due		60-89 Days past due		90+ Days past due		Non- accrual		Total
Loans by segment:
Residential mortgage	$	337,356	$	855	$	497	$	2,263	$	9,051	$	350,022
Commercial real estate	1,060,176		902		973		1,638		8,815		1,072,504
Commercial & industrial	342,726		96		141		—		344		343,307
Acquisition, development & construction	121,590		7,067		—		—		15,404		144,061
Consumer	205,463		1,551		265		469		1,830		209,578
Total	$	2,067,311	$	10,471	$	1,876	$	4,370	$	35,444	$	2,119,472
Total TDRs included above	$	13,543	$	270	$	264	$	—	$	10,870	$	24,947
Non-performing loans:
Loans 90+ days past due and still accruing									$	4,370
Non-accrual loans									35,444
Total non-performing loans									$	39,814

Summary of activity in allowance for loan losses and recorded investments in loans by portfolio segment based on impairment method

Activity in the allowance for loan losses for the three months ended March 31, 2013 and 2012 is summarized below: 

	For the three months ended March 31, 2013
	Beginning allowance for loan losses		Charge-offs			Recoveries		Net charge-offs			Provision for loan losses			Ending allowance for loan losses
Residential mortgage	$	4,368	$	(959	)	$	9	$	(950	)	$	1,025		$	4,443
Commercial real estate	7,616		(1,199		)	331		(868		)	2,401			9,149
Commercial & industrial	5,533		(359		)	127		(232		)	(930		)	4,371
Acquisition, development & construction	7,026		(567		)	164		(403		)	(521		)	6,102
Consumer	3,571		(748		)	31		(717		)	625			3,479
Total	$	28,114	$	(3,832	)	$	662	$	(3,170	)	$	2,600		$	27,544
Annualized net charge-offs to average gross loans outstanding								0.58		%

	For the three months ended March 31, 2012
	Beginning allowance  for loan losses		Charge-offs			Recoveries		Net charge-offs			Provision for loan losses			Ending allowance  for loan losses
Residential mortgage	$	4,167	$	(677	)	$	1	$	(676	)	$	696		$	4,187
Commercial real estate	5,522		(715		)	51		(664		)	1,608			6,466
Commercial & industrial	5,621		(493		)	83		(410		)	(480		)	4,731
Acquisition, development & construction	9,403		(1,021		)	—		(1,021		)	559			8,941
Consumer	3,532		(566		)	29		(537		)	467			3,462
Total	$	28,245	$	(3,472	)	$	164	$	(3,308	)	$	2,850		$	27,787
Annualized net charge-offs to average gross loans outstanding								0.74		%

Activity in the allowance for loan losses for the six months ended March 31, 2013 and 2012 is summarized below: 

	For the six months ended March 31, 2013
	Beginning allowance for loan losses		Charge-offs			Recoveries		Net charge-offs			Provision for loan losses			Ending allowance for loan losses
Residential mortgage	$	4,359	$	(1,909	)	$	60	$	(1,849	)	$	1,933		$	4,443
Commercial real estate	7,230		(1,427		)	412		(1,015		)	2,934			9,149
Commercial & industrial	4,603		(518		)	247		(271		)	39			4,371
Acquisition, development & construction	8,526		(2,161		)	169		(1,992		)	(432		)	6,102
Consumer	3,564		(1,231		)	70		(1,161		)	1,076			3,479
Total	$	28,282	$	(7,246	)	$	958	$	(6,288	)	$	5,550		$	27,544
Annualized net charge-offs to average gross loans outstanding								0.58		%

	For the six months ended March 31, 2012
	Beginning allowance  for loan losses		Charge-offs			Recoveries		Net charge-offs			Provision for loan losses			Ending allowance  for loan losses
Residential mortgage	$	3,498	$	(1,466	)	$	120	$	(1,346	)	$	2,035		$	4,187
Commercial real estate	5,568		(1,661		)	401		(1,260		)	2,158			6,466
Commercial & industrial	5,945		(701		)	629		(72		)	(1,142		)	4,731
Acquisition, development & construction	9,895		(1,296		)	—		(1,296		)	342			8,941
Consumer	3,011		(1,028		)	72		(956		)	1,407			3,462
Total	$	27,917	$	(6,152	)	$	1,222	$	(4,930	)	$	4,800		$	27,787
Annualized net charge-offs to average gross loans outstanding								0.56		%

Loans Evaluated For Impairment By Segment [Table Text Block]

The following table sets forth the loans evaluated for impairment by segment and the allowance evaluated by segment at March 31, 2013:

	Loans evaluated by segment						Allowance evaluated by segment
	Individually evaluated for impairment		Collectively evaluated for impairment		Total  loans		Individually evaluated for impairment		Collectively evaluated for impairment		Total allowance for loan losses
Residential mortgage	$	12,480	$	353,005	$	365,485	$	305	$	4,138	$	4,443
Commercial real estate	15,434		1,134,029		1,149,463		2,155		6,994		9,149
Commercial & industrial	2,813		367,433		370,246		179		4,192		4,371
Acquisition, development & construction	19,315		98,800		118,115		144		5,958		6,102
Consumer	3,066		198,180		201,246		149		3,330		3,479
Total	$	53,108	$	2,151,447	$	2,204,555	$	2,932	$	24,612	$	27,544

The following table sets forth the loans evaluated for impairment by segment and the allowance evaluated by segment at September 30, 2012:

	Loans evaluated by segment						Allowance evaluated by segment
	Individually evaluated for impairment		Collectively evaluated for impairment		Total loans		Individually evaluated for impairment		Collectively evaluated for impairment		Total allowance for loan losses
Residential mortgage	$	12,739	$	337,283	$	350,022	$	871	$	3,488	$	4,359
Commercial real estate	13,017		1,059,487		1,072,504		1,036		6,194		7,230
Commercial & industrial	357		342,950		343,307		48		4,555		4,603
Acquisition, development & construction	24,880		119,181		144,061		996		7,530		8,526
Consumer	2,299		207,279		209,578		263		3,301		3,564
Total	$	53,292	$	2,066,180	$	2,119,472	$	3,214	$	25,068	$	28,282

The following table presents loans individually evaluated for impairment by segment of loans at March 31, 2013 and September 30, 2012:

	March 31, 2013						September 30, 2012
	Unpaid principal balance		Recorded investment		Related allowance		Unpaid principal balance		Recorded investment		Related allowance
With no related allowance recorded:
Residential mortgage	$	10,665	$	8,539	$	—	$	6,193	$	5,413	$	—
Commercial real estate	10,440		9,229		—		9,296		7,837		—
Commercial & industrial	2,498		2,455		—		262		262		—
Acquisition, development & construction	19,986		18,645		—		24,144		20,597		—
Consumer	2,577		2,341		—		1,146		1,122		—
Subtotal	46,166		41,209		—		41,041		35,231		—
With an allowance recorded:
Residential mortgage	5,303		3,941		305		8,485		7,326		871
Commercial real estate	8,988		6,205		2,155		5,942		5,180		1,036
Commercial & industrial	538		358		179		95		95		48
Acquisition, development & construction	814		670		144		7,159		4,283		996
Consumer	1,197		725		149		1,400		1,177		263
Subtotal	16,840		11,899		2,932		23,081		18,061		3,214
Total	$	63,006	$	53,108	$	2,932	$	64,122	$	53,292	$	3,214

The following table presents the average recorded investment and interest income recognized related to loans individually evaluated for impairment by segment for the three months ended March 31, 2013 and 2012:

	March 31, 2013						March 31, 2012
	QTD average recorded investment		Interest income recognized		Cash-basis interest income recognized		QTD average recorded investment		Interest income recognized		Cash-basis interest income recognized
With no related allowance recorded:
Residential mortgage	$	7,978	$	100	$	52	$	4,182	$	63	$	28
Commercial real estate	9,248		99		53		9,525		95		75
Commercial & industrial	1,873		45		21		798		10		10
Acquisition, development & construction	15,582		313		161		21,442		166		114
Consumer	2,127		7		3		2,290		20		5
Subtotal	36,808		564		290		38,237		354		232
With an allowance recorded:
Residential mortgage	3,857		14		6		6,790		35		30
Commercial real estate	6,265		13		9		7,256		33		24
Commercial & industrial	368		3		3		97		2		2
Acquisition, development & construction	649		—		—		10,640		44		41
Consumer	700		4		2		1,099		3		2
Subtotal	11,839		34		20		25,882		117		99
Total	$	48,647	$	598	$	310	$	64,119	$	471	$	331

The following table presents the average recorded investment and interest income recognized related to loans individually evaluated for impairment by segment for the six months ended March 31, 2013 and 2012:

	March 31, 2013						March 31, 2012
	YTD average recorded investment		Interest income recognized		Cash-basis interest income recognized		YTD average recorded investment		Interest income recognized		Cash-basis interest income recognized
With no related allowance recorded:
Residential mortgage	$	8,165	$	201	$	104	$	4,244	$	126	$	57
Commercial real estate	9,241		199		105		9,690		184		151
Commercial & industrial	2,067		90		42		849		20		20
Acquisition, development & construction	16,603		630		321		21,715		344		229
Consumer	2,198		14		6		2,297		39		11
Subtotal	38,274		1,134		578		38,795		713		468
With an allowance recorded:
Residential mortgage	3,885		27		12		6,968		69		59
Commercial real estate	6,245		27		19		7,399		66		47
Commercial & industrial	365		6		6		96		3		3
Acquisition, development & construction	656		—		—		10,941		88		82
Consumer	709		8		4		1,085		4		4
Subtotal	11,860		68		41		26,489		230		195
Total	$	50,134	$	1,202	$	619	$	65,284	$	943	$	663

Loans and allowance evaluated for impairment by segment [Table Text Block]

The following table sets forth the loans evaluated for impairment by segment and the allowance evaluated by segment at March 31, 2013:

	Loans evaluated by segment						Allowance evaluated by segment
	Individually evaluated for impairment		Collectively evaluated for impairment		Total  loans		Individually evaluated for impairment		Collectively evaluated for impairment		Total allowance for loan losses
Residential mortgage	$	12,480	$	353,005	$	365,485	$	305	$	4,138	$	4,443
Commercial real estate	15,434		1,134,029		1,149,463		2,155		6,994		9,149
Commercial & industrial	2,813		367,433		370,246		179		4,192		4,371
Acquisition, development & construction	19,315		98,800		118,115		144		5,958		6,102
Consumer	3,066		198,180		201,246		149		3,330		3,479
Total	$	53,108	$	2,151,447	$	2,204,555	$	2,932	$	24,612	$	27,544

The following table sets forth the loans evaluated for impairment by segment and the allowance evaluated by segment at September 30, 2012:

	Loans evaluated by segment						Allowance evaluated by segment
	Individually evaluated for impairment		Collectively evaluated for impairment		Total loans		Individually evaluated for impairment		Collectively evaluated for impairment		Total allowance for loan losses
Residential mortgage	$	12,739	$	337,283	$	350,022	$	871	$	3,488	$	4,359
Commercial real estate	13,017		1,059,487		1,072,504		1,036		6,194		7,230
Commercial & industrial	357		342,950		343,307		48		4,555		4,603
Acquisition, development & construction	24,880		119,181		144,061		996		7,530		8,526
Consumer	2,299		207,279		209,578		263		3,301		3,564
Total	$	53,292	$	2,066,180	$	2,119,472	$	3,214	$	25,068	$	28,282

Troubled debt restructurings

The following table presents loans by segment modified as TDRs that occurred during the three months ended March 31, 2013 and 2012:

	March 31, 2013					March 31, 2012
		Recorded investment					Recorded investment
	Number of loans	Pre- modification		Post- modification		Number of loans	Pre- modification		Post- modification
Commercial & industrial	2	$	169	$	169	—	$	—	$	—
Acquisition, development & construction	5	3,049		3,049		1	446		446
Total restructured loans	7	$	3,218	$	3,218	1	$	446	$	446

The following table presents loans by segment modified as TDRs that occurred during the six months ended March 31, 2013 and 2012:

	March 31, 2013					March 31, 2012
		Recorded investment					Recorded investment
	Number of loans	Pre- modification		Post- modification		Number of loans	Pre- modification		Post- modification
Residential mortgage	1	$	275	$	275	1	$	446	$	446
Commercial real estate	1	450		450		1	850		850
Commercial & industrial	3	1,669		1,669		—	—		—
Acquisition, development & construction	7	5,772		5,772		—	—		—
Total restructured loans	12	$	8,166	$	8,166	2	$	1,296	$	1,296

The following tables set forth the amounts of the Company’s TDRs at March 31, 2013 and September 30, 2012:

	March 31, 2013
	Current		30-59 Days past due		60-89 Days past due		90+ Days past due		Non- accrual		Total
Residential mortgage	$	1,560	$	198	$	—	$	—	$	1,558	$	3,316
Commercial real estate	3,347		—		—		—		—		3,347
Commercial & industrial	1,669		—		—		—		—		1,669
Acquisition, development & construction	14,742		345		—		—		148		15,235
Total	$	21,318	$	543	$	—	$	—	$	1,706	$	23,567
Allowance for loan losses	$	—	$	—	$	—	$	—	$	4	$	4

	September 30, 2012
	Current		30-59 Days past due		60-89 Days past due		90+ Days past due		Non- accrual		Total
Residential mortgage	$	1,226	$	—	$	264	$	—	$	2,178	$	3,668
Commercial real estate	2,640		270		—		—		—		2,910
Acquisition, development & construction	9,677		—		—		—		8,692		18,369
Total	$	13,543	$	270	$	264	$	—	$	10,870	$	24,947
Allowance for loan losses	$	—	$	—	$	41	$	—	$	955	$	996

Risk category of loans by segment of gross loans

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Based on the analysis performed as of March 31, 2013 and September 30, 2012, the risk category of loans by segment of gross loans is as follows:

	March 31, 2013						September 30, 2012
	Special mention		Substandard		Doubtful		Special mention		Substandard		Doubtful
Residential mortgage	$	1,200	$	10,763	$	—	$	830	$	11,314	$	—
Commercial real estate	18,531		27,212		—		20,729		27,674		—
Acquisition, development & construction	9,054		23,298		—		5,669		42,871		—
Commercial & industrial	12,973		5,836		330		14,920		3,995		338
Consumer	20		3,249		—		274		2,482		—
Total	$	41,778	$	70,358	$	330	$	42,422	$	88,336	$	338

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Comprehensive income Comprehensive income (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2013	Mar. 31, 2012	Sep. 30, 2012	Sep. 30, 2011
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	$ 919	$ 5,985	$ 919	$ 5,985	$ 6,899	$ 5,136
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax	(2,753)	(320)	(4,446)	3,056
Gain (Loss) on Sale of Securities, Net	2,229	2,899	3,645	4,888
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax	7	0	32	38
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, before Tax			3,613
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Tax			(1,467)
Other comprehensive income (loss)			(2,146)
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, before Tax			(1,031)
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax	(224)	(231)	419	(460)
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax	327	335	612	673
Accumulated other comprehensive income reclass adjustments net of tax			(1,534)
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax	(4,073)	(2,042)	(6,592)	176
Other Comprehensive Income (Loss), Net of Tax	(3,746)	(1,707)	(5,980)	849
Accumulated Other Comprehensive Income (Loss) [Member]
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Other Comprehensive Income (Loss), Net of Tax			(5,980)
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	8,474	13,780	8,474	13,780	15,066	13,604
Unrealized gain(loss) for pension and other post-retirement obligations [Member]
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	$ (7,555)	$ (7,795)	$ (7,555)	$ (7,795)	$ (8,167)	$ (8,468)

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Securities (Details 2) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Sep. 30, 2012
Securities available for sale with unrealized losses
Fair Value, Less Than 12 Months	$ 297,666	$ 69,774
Unrealized Losses, Less Than 12 Months	(2,173)	(604)
Fair Value, 12 Months or Longer	0	809
Unrealized Losses, 12 Months or Longer	0	(28)
Fair Value, Total	297,666	70,583
Unrealized Losses, Total	(2,173)	(632)
Fannie Mae [Member]
Securities available for sale with unrealized losses
Fair Value, Less Than 12 Months	53,011
Unrealized Losses, Less Than 12 Months	(566)
Fair Value, 12 Months or Longer	0
Unrealized Losses, 12 Months or Longer	0
Fair Value, Total	53,011
Unrealized Losses, Total	(566)
CMO/Other MBS [Member]
Securities available for sale with unrealized losses
Fair Value, Less Than 12 Months	62,165	64,065
Unrealized Losses, Less Than 12 Months	(496)	(590)
Fair Value, 12 Months or Longer	0	0
Unrealized Losses, 12 Months or Longer	0	0
Fair Value, Total	62,165	64,065
Unrealized Losses, Total	(496)	(590)
Mortgage-backed securities-residential [Member]
Securities available for sale with unrealized losses
Fair Value, Less Than 12 Months	115,176
Unrealized Losses, Less Than 12 Months	(1,062)
Fair Value, 12 Months or Longer	0
Unrealized Losses, 12 Months or Longer	0
Fair Value, Total	115,176
Unrealized Losses, Total	(1,062)
Federal agencies [Member]
Securities available for sale with unrealized losses
Fair Value, Less Than 12 Months	145,726	4,993
Unrealized Losses, Less Than 12 Months	(602)	(10)
Fair Value, 12 Months or Longer	0	0
Unrealized Losses, 12 Months or Longer	0	0
Fair Value, Total	145,726	4,993
Unrealized Losses, Total	(602)	(10)
Obligations of states and political subdivisions [Member]
Securities available for sale with unrealized losses
Fair Value, Less Than 12 Months	23,664	716
Unrealized Losses, Less Than 12 Months	(487)	(4)
Fair Value, 12 Months or Longer	0	0
Unrealized Losses, 12 Months or Longer	0	0
Fair Value, Total	23,664	716
Unrealized Losses, Total	(487)	(4)
Corporate Debt Securities [Member]
Securities available for sale with unrealized losses
Fair Value, Less Than 12 Months	13,100
Unrealized Losses, Less Than 12 Months	22
Fair Value, 12 Months or Longer	0
Unrealized Losses, 12 Months or Longer	0
Fair Value, Total	13,100
Unrealized Losses, Total	22
Equity Securities [Member]
Securities available for sale with unrealized losses
Fair Value, Less Than 12 Months		0
Unrealized Losses, Less Than 12 Months		0
Fair Value, 12 Months or Longer		809
Unrealized Losses, 12 Months or Longer		(28)
Fair Value, Total		809
Unrealized Losses, Total		$ (28)

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Derivatives

6 Months Ended

Mar. 31, 2013

Derivative Instruments and Hedges, Assets [Abstract]

Derivatives

Derivatives

The Company purchased two interest rate caps in fiscal 2010 to assist in offsetting a portion of interest rate exposure should short- term rate increases lead to rapid increases in general levels of market interest rates on deposits. These caps are linked to LIBOR and have strike prices of 3.50% and 4.00%. These caps are stand-alone derivatives and therefore changes in fair value are reported in current period earnings; the amount for the quarter ended March 31, 2013 and 2012 is a fair value loss of $0 and a fair value loss of $40, respectively. For the six months ended March 31, 2013 and 2012 the fair value loss was $1 and $43, respectively. The fair value of the interest rate caps and interest rate swaps discussed below at March 31, 2013 and September 30, 2012 are included in other assets with a corresponding credit (charge) to income recorded as a gain (loss) to non-interest income.

The Company acts as an interest rate swap counterparty with certain commercial customers and manages this risk by entering into corresponding and offsetting interest rate risk agreements with third parties. The swaps are considered a derivative instrument and must be carried at fair value. As the swaps are not a designated qualifying hedge, the change in fair value is recognized in current earnings, with no offset from any other instrument. There was no net gain or loss recorded in earnings during the three and six months ended March 31, 2013 and 2012.

The Company pledged collateral to derivative counterparties in the form of securities with an amortized cost of $5,042 and a fair value of $5,044 as of March 31, 2013. 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 ISDA and loan documents where, in default situations, the Bank is allowed to access collateral supporting the loan relationship to recover any losses suffered on the derivative asset or liability. The Company may need to post additional collateral in the future in proportion to potential increases in unrealized loss positions.

At March 31, 2013 summary information regarding these derivatives is presented below:

	March 31, 2013
	Notional amount			Weighted average maturity (in years)	Weighted average fixed rate		Weighted average variable rate	Fair value
Interest rate caps	$	50,000		1.68	3.75	%	NA	$	1
Third-party interest rate swaps	55,190			6.26	4.22		1 m Libor + 2.45	2,198
Customer interest rate swaps	(55,190		)	6.26	4.22		1 m Libor + 2.45	(2,198		)

At September 30, 2012, summary information regarding these derivatives is presented below:

	September 30, 2012
	Notional amount			Weighted average maturity (in years)	Weighted average fixed rate		Weighted average variable rate	Fair value
Interest rate caps	$	50,000		2.18	3.75	%	NA	$	2
Third-party interest rate swaps	42,332			7.30	4.29		1 m Libor + 2.28	2,485
Customer interest rate swaps	(42,332		)	7.30	4.29		1 m Libor + 2.28	(2,485		)

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 are carried at estimated fair value on the consolidated balance sheets. The fair values of these commitments are not considered material.