10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________________

FORM 10-K

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

For the Fiscal Year Ended September 30, 2014 Commission File Number: 001-35385

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STERLING BANCORP

(Exact name of Registrant as Specified in its Charter)

Delaware	80-0091851
(State or Other Jurisdiction of Incorporation or Organization)	(IRS Employer Identification Number)
400 Rella Blvd., Montebello, New York	10901
(Address of Principal Executive Office)	(Zip Code)

(845) 369-8040

(Registrant’s Telephone Number including Area Code)

Securities Registered Pursuant to Section 12(b) of the Act:

Title of Class	Name of Each Exchange On Which Registered
Common Stock, par value $0.01 per share	New York Stock Exchange

Securities Registered Pursuant to Section 12(g) of the Act:

None

____________________________

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act    YES  ý  NO  ¨

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act.    YES  ¨     NO  ý

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  ý    NO  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for shorter period that the registrant was required to submit and post such files)   YES  ý     NO  ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendments to this Form 10-K.    ¨

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

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   YES  ¨     NO  ý

The aggregate market value of the voting stock held by non-affiliates of the Registrant, computed by reference to the closing price of the common stock as of March 31, 2014 was $1,057,670,927

As of November 25, 2014 there were 83,899,070 outstanding shares of the Registrant’s common stock.

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DOCUMENT INCORPORATED BY REFERENCE

Proxy Statement for the Annual Meeting of Stockholders (Part III) to be filed within 120 days after the end of the Registrant’s fiscal year ended September 30, 2014.

STERLING BANCORP

FORM 10-K TABLE OF CONTENTS

September 30, 2014

PART I
ITEM 1.	Business	1
ITEM 1A.	Risk Factors	13
ITEM 1B.	Unresolved Staff Comments	18
ITEM 2.	Properties	19
ITEM 3.	Legal Proceedings	19
ITEM 4.	Mine Safety Disclosures	19
PART II
ITEM 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	20
ITEM 6.	Selected Financial Data	23
ITEM 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	27
ITEM 7A.	Quantitative and Qualitative Disclosures about Market Risk	60
ITEM 8.	Financial Statements and Supplementary Data	61
ITEM 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	125
ITEM 9A.	Controls and Procedures	125
ITEM 9B.	Other Information	125
PART III
ITEM 10.	Directors, Executive Officers, and Corporate Governance	126
ITEM 11.	Executive Compensation	126
ITEM 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	126
ITEM 13.	Certain Relationships and Related Transactions, and Director Independence	126
ITEM 14.	Principal Accountant Fees and Services	126
PART IV
ITEM 15.	Exhibits and Financial Statement Schedules	127
SIGNATURES		130

PART I

ITEM 1. Business

The disclosures set forth in this item are qualified by Item 1A. Risk Factors and the section captioned “Forward-Looking Statements” in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations of this report and other cautionary statements set forth elsewhere in this report.

Sterling Bancorp

Sterling Bancorp (“Sterling” or the “Company”) is a Delaware corporation that owns all of the outstanding shares of common stock of Sterling National Bank (the “Bank”), which is the Company’s principal subsidiary. At September 30, 2014, the Company had, on a consolidated basis, $7.3 billion in assets, $5.3 billion in deposits, stockholders’ equity of $961.1 million and 83,628,267 shares of common stock outstanding. Our financial condition and results of operations are discussed herein on a consolidated basis with the Bank.

On October 31, 2013, Provident New York Bancorp (“Legacy Provident”) and the former Sterling Bancorp (“Legacy Sterling”) merged.

In connection with the merger, the Company completed the following corporate actions:

• Legacy Sterling merged with and into Legacy Provident, the accounting acquirer and the surviving entity.

• The Company changed its legal entity name to Sterling Bancorp and became a bank holding company and a financial holding company, as defined by the Bank Holding Company Act of 1956, as amended.

• Sterling National Bank, which was owned by Legacy Sterling, merged into Provident Bank, which was owned by Legacy Provident.

• The Bank changed its legal entity name to Sterling National Bank.

We refer to the transactions detailed above collectively as the “Merger”.

The Merger was a stock-for-stock transaction valued at $457.8 million based on the closing price of Legacy Provident’s common stock on October 31, 2013. Under the terms of the Merger, each share of Legacy Sterling was converted into the right to receive 1.2625 shares of Legacy Provident’s common stock. Consistent with our strategy of expanding in the greater New York metropolitan region, we believe the Merger has created a larger, more diversified company and accelerated the build-out of our differentiated strategy targeting small-to-middle market commercial clients and consumers. See additional disclosure regarding the Merger in Note 2. “Acquisitions” to the consolidated financial statements.

Pending Acquisition of Hudson Valley Holding Corp.

On November 5, 2014, the Company announced it had entered into a definitive merger agreement with Hudson Valley Holding Corp. (NYSE: HVB) (the “HVB Merger”). In the HVB Merger, which is a stock-for-stock transaction valued at approximately $539 million based on the closing price of Company common stock on November 4, 2014, Hudson Valley Holding Corp. shareholders will receive a fixed ratio of 1.92 shares of Company common stock for each share of Hudson Valley Holding Corp. common stock. Upon closing, the Company’s shareholders will own approximately 69% of stock in the combined company and Hudson Valley Holding Corp. shareholders will own approximately 31%.

On a pro forma combined basis, for the twelve months ended September 30, 2014, the companies had revenue of $363 million and $22million in net income. Upon completion of the HVB Merger, the combined company is expected to have approximately $10.7 billion in assets, $6.6 billion in gross loans, and deposits of $8.1 billion. The HVB Merger will further the Company’s strategy of expanding in the greater New York metropolitan region by providing the Company with a significant presence and deposit market share in Westchester County, New York, and will create an opportunity to realize significant operating expense savings. The transaction is expected to be accretive to earnings per share in fiscal 2015 and 2016.

The transaction is subject to approval by shareholders from both companies, regulatory approval and other customary closing conditions, and is expected to close in the second calendar quarter of 2015.

Senior Notes Capital Raise

In connection with the Merger, the Company completed the offering of $100 million of its senior notes due 2018 (the “Senior Notes”) on July 2, 2013. The Senior Notes, which bear interest at 5.50% annually, were issued under an indenture dated July 2, 2013 (the “Indenture”) between the Company and U.S. Bank National Association, as trustee. The Senior Notes were sold in a private placement

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and resold by the initial purchasers to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”).

The Senior Notes are unsecured obligations of the Company and rank equally with all other unsecured unsubordinated indebtedness, and will be effectively subordinated to any secured indebtedness to the extent of the value of the collateral securing such indebtedness, and structurally subordinated to the existing and future indebtedness of the Company’s subsidiaries. Interest on the Senior Notes is payable on January 2 and July 2 and began January 2, 2014. Interest is calculated on the basis of a 360-day year of twelve 30-day months. The Senior Notes will mature on July 2, 2018.

Acquisition of Gotham Bank of New York

On August 10, 2012, the Company acquired Gotham Bank of New York (“Gotham”), a New York state-chartered banking corporation with approximately $431.5 million in assets, $205.5 million in loans, and $368.9 million in deposits and one branch location in midtown Manhattan. At the closing, Gotham was merged with and into the Bank, with the Bank as the surviving entity. The shareholders of Gotham received cash equal to 125% of adjusted tangible net worth, subject to fair value adjustments. The aggregate cash consideration to Gotham shareholders and option holders was approximately $41 million.

Common Equity Capital Raise

On August 7, 2012, the Company sold directly to several institutional investors an aggregate of 6,258,504 shares of its common stock at a price of $7.35 per share. The Company received net proceeds of approximately $46 million, which were used to fund the acquisition of Gotham and for general corporate purposes.

Sterling National Bank

The Bank is a growing full-service regional bank founded in 1888. Headquartered in Montebello, New York, the Bank specializes in the delivery of services and solutions to business owners, their families and consumers within the communities we serve through teams of dedicated and experienced relationship managers. Sterling National Bank offers a complete line of commercial, business, and consumer banking products and services. As of September 30, 2014, the Bank had $7.3 billion in assets, $5.3 billion in deposits and 836 full-time equivalent employees.

Subsidiaries

The Company and the Bank maintain a number of wholly-owned subsidiaries, including a real estate investment trust that holds real estate mortgage loans, several subsidiaries that hold foreclosed properties acquired by the Bank, a Vermont captive insurance company and other subsidiaries that have an immaterial impact on the financial condition or results of operations of the Company.

Additional Information

The Company’s website (www.sterlingbancorp.com) contains a direct link to the Company’s filings with the Securities and Exchange Commission (“SEC”), including copies of annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to these filings, registration statements on Form S-4, as well as ownership reports on Forms 3, 4 and 5 filed by the Company’s directors and executive officers. Copies may also be obtained, without charge, by written request to Sterling Bancorp, 400 Rella Boulevard, Montebello, New York 10901, Attention: Investor Relations. Sterling’s website is not part of this Annual Report on Form 10-K.

Strategy

Through its subsidiary Sterling National Bank, the Company operates as a regional bank providing a broad offering of deposit, lending and wealth management products to commercial, consumer and municipal clients in its market area. The Bank seeks to differentiate itself by focusing on the following principles:

• Prioritize client relationships over transactions.

• Compete on service experience versus price superiority.

• Deploy a single point of contact, relationship-based distribution strategy through our commercial banking teams and financial centers.

• Focus on specific customer segments and geographic markets.

• Maximize efficiency through a technology enabled, low-cost operating platform.

• Maintain strong risk management systems.

Our strategic objectives include generating sustainable growth in revenues and earnings by expanding client acquisitions, improving asset quality and increasing operating efficiency. To achieve these goals we are: 1) focusing on high value client segments; 2) expanding our

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delivery and distribution channels; 3) creating a high productivity and performance culture; 4) controlling our operating costs; and 5) proactively managing enterprise risk.

We focus on delivering products and services to small and middle market commercial businesses and affluent consumers.  We believe that this is a client segment that is underserved by larger bank competitors in our market area.

The Bank targets the following geographic markets: the New York Metro Market, which includes Manhattan and Long Island; and the New York Suburban Market, which consists of Rockland, Orange, Sullivan, Ulster, Putnam and Westchester counties in New York and Bergen County in New Jersey. We believe the Bank operates in an attractive footprint that presents us with significant opportunities to execute our strategy. Based on data from Oxxford Information Technology, we estimate the total number of small and middle market businesses in our footprint exceeds 550 thousand.

We deploy a team-based distribution strategy in which clients are served by a focused and experienced group of relationship managers that are responsible for all aspects of the client relationship and delivery of our products and services. A significant portion of the Bank’s organic growth in 2014 was driven by the recruitment of new teams. As of September 30, 2014, the Bank had 21 commercial banking teams. We expect to continue to grow deposits and loan balances through the addition of new teams.

The Bank focuses on building client relationships that allow us to gather low cost, core deposits and originate high quality loans. The Bank maintains a disciplined pricing strategy on deposits that allows us to compete for loans while maintaining an appropriate spread over funding costs. We offer diverse loan products to commercial businesses, real estate owners, real estate developers and consumers. In 2014, we continued to emphasize growth in our commercial loan balances;  as a result, we believe that we have a high quality, diversified loan portfolio with a favorable mix of loan types, maturities and yields. 

The Company augments organic growth with opportunistic acquisitions. Between fiscal 2002 and October 2013, the Company completed seven acquisitions, including: National Bank of Florida in 2002; Ellenville National Bank in 2004; Warwick Community Bancorp in 2005; a branch office of HSBC Bank USA in 2005; Hudson Valley Investment Advisors in 2007; Gotham Bank of New York in August 2012; and Legacy Sterling on October 31, 2013. These acquisitions have supported the expansion of the Company into attractive markets and diversified businesses. See additional disclosure of our acquisitions in Note 2. “Acquisitions” to the consolidated financial statements.

On November 5, 2014, the Company announced its pending acquisition of Hudson Valley Holding Corp. which is detailed previously in this section.

Competition

The greater New York metropolitan region is a highly competitive market area with a concentration of financial institutions, many of which are significantly larger institutions with greater financial resources than us, and many of which are our competitors to varying degrees. Our competition for loans comes principally from commercial banks, savings banks, mortgage banking companies, credit unions, insurance companies and other financial services companies. Our most direct competition for deposits has historically come from commercial banks, savings banks and credit unions. We face additional competition for deposits from non-depository competitors such as mutual funds, securities and brokerage firms and insurance companies. We have emphasized relationship banking and the advantage of local decision-making in our banking business. We do not rely on any individual, group, or entity for a material portion of our deposits. Net interest income could be adversely affected should competitive pressures cause us to increase the interest rates paid on deposits in order to maintain our market share.

Employees

As of September 30, 2014, we had 836 full-time equivalent employees. The employees are not represented by a collective bargaining unit and we consider our relationship with our employees to be good.

Supervision and Regulation

General

Sterling Bancorp and Sterling National Bank are subject to extensive regulation under federal and state laws. The regulatory framework is intended primarily for the protection of depositors, federal deposit insurance funds and the banking system as a whole and not for the protection of stockholders and creditors.

Significant elements of the laws and regulations applicable to the Company and the Bank are described below. The description is qualified in its entirety by reference to the full text of the statutes, regulations and policies that are described. Also, such statutes, regulations and

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policies are continually under review by Congress and state legislatures and federal and state regulatory agencies. A change in statutes, regulations or regulatory policies applicable to Sterling and its subsidiaries could have a material effect on the business, financial condition and results of operations of the Company.  While the Bank currently has less than $10 billion in assets, after the completion of the HVB Merger, the Bank’s total assets could exceed $10 billion, thus subjecting it to additional supervision and regulation, including by the Consumer Financial Protection Bureau (“CFPB”), with such additional supervision and regulation discussed throughout this section.

Regulatory Reforms

The Dodd-Frank Act significantly restructures the financial regulatory regime in the United States, and will continue to affect, into the immediate future, the lending and investment activities and general operations of depository institutions and their holding companies. This will particularly be the case for the Company and the Bank if, as anticipated, the Bank’s total assets exceed $10 billion as a result of the HVB Merger.

The Dodd-Frank Act made many changes in banking regulation, including:

• forming the CFPB with broad powers to adopt and enforce consumer protection regulations;

• the standard maximum amount of deposit insurance per customer was permanently increased to $250,000;

• the assessment base for determining deposit insurance premiums has been expanded from domestic deposits to average assets minus average tangible equity; and

• the Federal Reserve Board (the “FRB”) has imposed on financial institutions with assets of $10 billion or more a cap on the debit card interchange fees the financial institutions may charge.

In addition, the Dodd-Frank Act requires that the FRB establish minimum consolidated capital requirements for bank holding companies that are as stringent as those required for insured depository institutions, and that the components of Tier 1 capital be restricted to capital instruments that are currently considered to be Tier 1 capital for insured depository institutions. In addition, the proceeds of trust preferred securities will be excluded from Tier 1 capital unless (i) such securities are issued by bank holding companies with assets of less than $500 million, or (ii) such securities were issued prior to May 19, 2010 by bank or savings and loan holding companies with assets of less than $15 billion.

Many of the provisions of the Dodd-Frank Act are not yet effective. The Dodd-Frank Act requires various federal agencies to promulgate numerous and extensive implementing regulations over the next several years. Although it is difficult to predict at this time what impact the Dodd-Frank Act and the implementing regulations will have on the Company and the Bank, they may have a material impact on operations through, among other things, heightened regulatory supervision and increased compliance costs. The Company continues to analyze the impact of rules adopted under the Dodd-Frank Act on the Company’s business. However, the full impact will not be known until the rules, and other regulatory initiatives that overlap with the rules, are finalized and their combined impacts can be understood.

Regulatory Agencies

Sterling Bancorp is a legal entity separate and distinct from Sterling National Bank and its other subsidiaries. As bank and a financial holding company, Sterling Bancorp is regulated under the Bank Holding Company Act of 1956, as amended (“BHC Act”), and its subsidiaries are subject to inspection, examination and supervision by the FRB as its primary federal regulator.

As a national bank, the Bank is principally subject to the supervision, examination and reporting requirements of the Office of the Comptroller of the Currency (the “OCC”), as its primary federal regulator, as well as the Federal Deposit Insurance Corporation (the “FDIC”). Insured banks, including the Bank, are subject to extensive regulations that relate to, among other things: (a) the nature and amount of loans that may be made by the Bank and the rates of interest that may be charged; (b) types and amounts of other investments; (c) branching; (d) permissible activities; (e) reserve requirements; and (f) dealings with officers, directors and affiliates. 

Bank Holding Company Activities

In general, the BHC Act limits the business of bank holding companies to banking, managing or controlling banks and other activities that the FRB has determined to be so closely related to banking as to be a proper incident thereto. In addition, bank holding companies that qualify and elect to be financial holding companies such as the Company, may engage in any activity, or acquire and retain the shares of a company engaged in any activity, that is either (i) financial in nature or incidental to such financial activity (as determined by the FRB in consultation with the Secretary of the Treasury) or (ii) complementary to a financial activity and does not pose a substantial risk to the safety and soundness of depository institutions or the financial system generally (as solely determined by the FRB), without prior approval of the FRB.

To maintain financial holding company status, a financial holding company and all of its depository institution subsidiaries must be “well capitalized” and “well managed.” A depository institution subsidiary is considered to be “well capitalized” if it satisfies the requirements for this status discussed in the section captioned “Prompt Corrective Action.” A depository institution subsidiary is considered “well

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managed” if it received a composite rating and management rating of at least “satisfactory” in its most recent examination. A financial holding company’s status will also depend upon it maintaining its status as “well capitalized” and “well managed” under applicable FRB regulations. If a financial holding company ceases to meet these capital and management requirements, the FRB’s regulations provide that the financial holding company must enter into an agreement with the FRB to comply with all applicable capital and management requirements. Until the financial holding company returns to compliance, the FRB may impose limitations or conditions on the conduct of its activities, and the company may not commence any of the broader financial activities permissible for financial holding companies or acquire a company engaged in such financial activities without prior approval of the FRB. If the company does not return to compliance within 180 days, the FRB may require divestiture of the holding company’s depository institutions.

In order for a financial holding company to commence any new activity permitted by the BHC Act or to acquire a company engaged in any new activity permitted by the BHC Act, each insured depository institution subsidiary of the financial holding company must have received a rating of at least “satisfactory” in its most recent examination under the Community Reinvestment Act.

The FRB has the power to order any bank holding company or its subsidiaries to terminate any activity or to terminate its ownership or control of any subsidiary when the FRB has reasonable grounds to believe that continuation of such activity or such ownership or control constitutes a serious risk to the financial soundness, safety or stability of any bank subsidiary of the bank holding company.

The BHC Act, the Bank Merger Act, and other federal and state statutes regulate acquisitions of banks and banking companies. The BHC Act requires the prior approval of the FRB for the direct or indirect acquisition by the Company of more than 5% of the voting shares or substantially all of the assets of a bank or bank holding company. Under the Bank Merger Act, the prior approval of the FRB or other appropriate bank regulatory authority is required for the Bank to merge with another bank or purchase the assets or assume the deposits of another bank. In reviewing applications seeking approval of merger and acquisition transactions, the bank regulatory authorities will consider, among other things, the competitive effect and public benefits of the transactions, the capital position of the combined organization, the risks to the stability of the U.S. banking or financial system, the applicant’s performance record under the Community Reinvestment Act and fair housing laws and the effectiveness of the subject organizations in combating money laundering activities.

Capital Requirements

As a bank holding company, the Company is subject to consolidated regulatory capital requirements administered by the FRB. The Bank is subject to similar capital requirements administered by the OCC. The federal regulatory authorities’ risk-based capital guidelines are based upon the 1988 capital accord (“Basel I”) of the Basel Committee, which are intended to ensure that banking organizations have adequate capital given the risk levels of assets and off-balance sheet financial instruments. Under the requirements, banking organizations are required to maintain minimum ratios for Tier 1 capital and total capital to risk-weighted assets (including certain off-balance sheet items, such as letters of credit). For purposes of calculating the ratios, a banking organization’s assets and some of its specified off-balance sheet commitments and obligations are assigned to various risk categories. A banking organization’s capital, in turn, is classified in tiers, depending on type:

Core Capital (Tier 1)

Currently, Tier 1 capital includes common equity, retained earnings, qualifying noncumulative perpetual preferred stock, minority interests in equity accounts of consolidated subsidiaries, and, under existing standards, a limited amount of qualifying trust preferred securities, and qualifying cumulative perpetual preferred stock at the holding company level, less goodwill, most intangible assets and certain other assets.

Supplementary Capital (Tier 2)

Currently, Tier 2 capital includes, among other things, perpetual preferred stock not meeting the Tier 1 definition, qualifying mandatory convertible debt securities, qualifying subordinated debt, and allowances for loan and lease losses, subject to limitations.

Under the existing risk-based capital rules, the Company and the Bank are currently required to maintain Tier 1 capital and total capital (the sum of Tier 1 and Tier 2 capital) equal to at least 4.0% and 8.0%, respectively, of its total risk-weighted assets (including various off-balance-sheet items, such as standby letters of credit). For a depository institution to be considered “well capitalized,” its Tier 1 and total capital ratios must be at least 6.0% and 10.0% on a risk-adjusted basis, respectively.

The elements currently comprising Tier 1 capital and Tier 2 capital and the minimum Tier 1 capital and total capital ratios may in the future be subject to change, as discussed in more detail below.

Bank holding companies and banks are also required to comply with minimum leverage ratio requirements. The leverage ratio is the ratio of a banking organization’s Tier 1 capital to its total adjusted quarterly average assets (as defined for regulatory purposes). The requirements

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necessitate a minimum leverage ratio of 3.0% for financial holding companies and banking organizations that have the highest supervisory rating. All other banking organizations are required to maintain a minimum leverage ratio of 4.0%, unless a different minimum is specified by an appropriate regulatory authority. For a depository institution to be considered “well capitalized,” its leverage ratio must be at least 5.0%. The bank regulatory agencies have encouraged banking organizations to operate with capital ratios substantially in excess of the stated ratios required to maintain “well capitalized” status. In light of the foregoing, the Company and the Bank expect that they will maintain capital ratios in excess of well capitalized requirements.

Prompt Corrective Action

The Federal Deposit Insurance Act (“FDIA”) requires, among other things, the federal banking agencies to take “prompt corrective action” in respect of depository institutions that do not meet minimum capital requirements. The FDIA includes the following five capital tiers: “well capitalized,” “adequately capitalized,” “undercapitalized,” “significantly undercapitalized” and “critically undercapitalized.” A depository institution’s capital tier will depend upon how its capital levels compare with various relevant capital measures and certain other factors, as established by regulation. The relevant capital measures are the total capital ratio, the Tier 1 capital ratio and the leverage ratio.

Currently, a depository institution will be (i) “well capitalized” if the institution has a total risk-based capital ratio of 10.0% or greater, a Tier 1 risk-based capital ratio of 6.0% or greater, and a leverage ratio of 5.0% or greater, and is not subject to any regulatory order agreement or written directive to meet and maintain a specific capital level for any capital measure; (ii) “adequately capitalized” if the institution has a total risk-based capital ratio of 8.0% or greater, a Tier 1 risk-based capital ratio of 4.0% or greater, and a leverage ratio of 4.0% or greater and is not “well capitalized”; (iii) “undercapitalized” if the institution has a total risk-based capital ratio that is less than 8.0%, a Tier 1 risk-based capital ratio of less than 4.0% or a leverage ratio of less than 4.0%; (iv) “significantly undercapitalized” if the institution has a total risk-based capital ratio of less than 6.0%, a Tier 1 risk-based capital ratio of less than 3.0% or a leverage ratio of less than 3.0%; and (v) “critically undercapitalized” if the institution’s tangible equity is equal to or less than 2.0% of total assets. An institution may be downgraded to, or deemed to be in, a capital category that is lower than indicated by its capital ratios if it is determined to be in an unsafe or unsound condition or if it receives an unsatisfactory examination rating with respect to certain matters. A bank’s capital category is determined solely for the purpose of applying prompt corrective action regulations, and the capital category may not constitute an accurate representation of the bank’s overall financial condition or prospects for other purposes.

The FDIA generally prohibits a depository institution from making any capital distributions (including payment of a dividend) or paying any management fee to its parent holding company if the depository institution would thereafter be “undercapitalized.” “Undercapitalized” institutions are subject to growth limitations and are required to submit a capital restoration plan. The agencies may not accept such a plan without determining, among other things, that the plan is based on realistic assumptions and is likely to succeed in restoring the depository institution’s capital. In addition, for a capital restoration plan to be acceptable, the depository institution’s parent holding company must guarantee that the institution will comply with such capital restoration plan. The bank holding company must also provide appropriate assurances of performance. The aggregate liability of the parent holding company is limited to the lesser of (i) an amount equal to 5.0% of the depository institution’s total assets at the time it became undercapitalized and (ii) the amount which is necessary (or would have been necessary) to bring the institution into compliance with all capital standards applicable with respect to such institution as of the time it fails to comply with the plan. If a depository institution fails to submit an acceptable plan, it is treated as if it is “significantly undercapitalized.”

“Significantly undercapitalized” depository institutions may be subject to a number of requirements and restrictions, including orders to sell sufficient voting stock to become “adequately capitalized,” requirements to reduce total assets, and cessation of receipt of deposits from correspondent banks. “Critically undercapitalized” institutions are subject to the appointment of a receiver or conservator.

The appropriate federal banking agency may, under certain circumstances, reclassify a well-capitalized insured depository institution as adequately capitalized. The FDIA provides that an institution may be reclassified if the appropriate federal banking agency determines (after notice and opportunity for hearing) that the institution is in an unsafe or unsound condition or deems the institution to be engaging in an unsafe or unsound practice.

The appropriate agency is also permitted to require an adequately capitalized or undercapitalized institution to comply with the supervisory provisions as if the institution were in the next lower category (but not treat a significantly undercapitalized institution as critically undercapitalized) based on supervisory information other than the capital levels of the institution.

Sterling believes that, as of September 30, 2014, its bank subsidiary, Sterling National Bank, was “well capitalized” based on the aforementioned ratios. For further information regarding the capital ratios and leverage ratio of the Company and the Bank, see the discussion under the section captioned “Capital and Liquidity” included in Item 7. “Management’s Discussion and Analysis of Financial

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Condition and Results of Operations” and Note 14. “Stockholder’s Equity - Regulatory Capital Requirements” in the notes to consolidated financial statements included in Item 8. “Financial Statements and Supplementary Data”, elsewhere in this report.

Basel III Capital Rules

In July 2013, the Company’s and the Bank’s primary federal regulators, the FRB and the OCC, respectively, approved final rules known as the “Basel III Capital Rules” that substantially revise the risk-based capital and leverage capital requirements applicable to bank holding companies and depository institutions with total consolidated assets of $500 million or more, including the Company and the Bank. The Basel III Capital Rules address the components of capital and other issues affecting the numerator in banking institutions’ regulatory capital ratios. Basel III Capital Rules also implement the requirements of Section 939A of the Dodd-Frank Act to remove references to credit ratings from the federal banking agencies’ rules. The Basel III Capital Rules will come into effect for the Company and the Bank on January 1, 2015 (subject to a phase-in period).

The Basel III Capital Rules, among other things, (i) introduce as a new capital measure “Common Equity Tier 1” (“CET1”), (ii) specify that Tier 1 capital consists of CET1 and “Additional Tier 1 capital” instruments meeting specified requirements, (iii) define CET1 narrowly by requiring that most adjustments to regulatory capital measures be made to CET1 and not to the other components of capital and (iv) expand the scope of the adjustments as compared to existing regulations. CET1 capital consists of common stock instruments that meet the eligibility criteria in the final rules, retained earnings, accumulated other comprehensive income and common equity Tier 1 minority interest.

When fully phased-in on January 1, 2019, Basel III Capital Rules require banking organizations to maintain (i) a minimum ratio of CET1 to risk-weighted assets of at least 4.5%, plus a 2.5% “capital conservation buffer” (which is added to the 4.5% CET1 ratio as that buffer is phased-in, effectively resulting in a minimum ratio of CET1 to risk-weighted assets of at least 7.0% upon full implementation), (ii) a minimum ratio of Tier 1 capital to risk-weighted assets of at least 6.0%, plus the capital conservation buffer (which is added to the 6.0% Tier 1 capital ratio as that buffer is phased-in, effectively resulting in a minimum Tier 1 capital ratio of 8.5% upon full implementation), (iii) a minimum ratio of total capital (that is, Tier 1 plus Tier 2 capital) to risk-weighted assets of at least 8.0%, plus the capital conservation buffer (which is added to the 8.0% total capital ratio as that buffer is phased-in, effectively resulting in a minimum total capital ratio of 10.5% upon full implementation) and (iv) as a newly adopted international standard, a minimum leverage ratio of 4.0%, calculated as the ratio of Tier 1 capital to adjusted average consolidated assets.

The aforementioned capital conservation buffer is designed to absorb losses during periods of economic stress. Banking institutions with a ratio of CET1 to risk-weighted assets above the minimum but below the conservation buffer will face limitations on the payment of dividends, common stock repurchases and discretionary cash payments to executive officers based on the amount of the shortfall.

With respect to the Bank, the Basel III Capital Rules also revise the “prompt corrective action” regulations pursuant to Section 38 of the Federal Deposit Insurance Act, by (i) introducing a CET1 ratio requirement at each level (other than critically undercapitalized), with the required CET1 ratio being 6.5% for well-capitalized status; (ii) increasing the minimum Tier 1 capital ratio requirement for each category, with the minimum Tier 1 risk-based capital ratio for well-capitalized status being 8.0% (as compared to the current 6.0%); and (iii) eliminating the current provision that provides that a bank with a composite supervisory rating of 1 may have a 3.0% leverage ratio and still be well-capitalized.

Management believes that, as of September 30, 2014, the Company and the Bank would meet all capital adequacy requirements under the Basel III Capital Rules on a fully phased-in basis if such requirements were currently effective. Requirements to maintain higher levels of capital or to maintain higher levels of liquid assets could adversely impact the Company’s net income.

Dividend Restrictions

The Company depends on funds maintained or generated by its subsidiaries, principally the Bank, for its cash requirements. Various legal restrictions limit the extent to which the Bank can pay dividends or make other distributions to the Company. All national banks are limited in the payment of dividends without the approval of the OCC to an amount not to exceed the net profits (as defined by OCC regulations) for that year-to-date combined with its retained net profits for the preceding two calendar years, less any required transfers to surplus. Federal law also prohibits national banks from paying dividends that would be greater than the bank’s undivided profits after deducting statutory bad debt in excess of the bank’s allowance for loan losses. Under the foregoing restrictions, and while maintaining its “well capitalized” status, as of September 30, 2014, the Bank could pay dividends of approximately $47.9 million to the Company, without obtaining regulatory approval. This is not necessarily indicative of amounts that may be paid or are available to be paid in future periods.

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Under the Federal Deposit Insurance Corporation Improvement Act of 1991 (“FDICIA”), a depository institution, such as the Bank, may not pay dividends if payment would cause it to become undercapitalized or if it is already undercapitalized. The payment of dividends by the Company and the Bank may also be affected or limited by other factors, such as the requirement to maintain adequate capital. The appropriate federal regulatory authority is authorized to determine under certain circumstances relating to the financial condition of a bank holding company or a bank that the payment of dividends would be an unsafe or unsound practice and to prohibit such payment. The appropriate federal regulatory authorities have indicated that paying dividends that deplete a banking organization’s capital base to an inadequate level would be an unsafe and unsound banking practice and that banking organizations should generally pay dividends only out of current operating earnings.

Source of Strength Doctrine

FRB policy and federal law require bank holding companies to act as a source of financial and managerial strength to their subsidiary banks. Under this requirement, the Company is expected to commit resources to support the Bank, including at times when the Company may not be in a financial position to provide such resources. Any capital loans by a bank holding company to any of its subsidiary banks are subordinate in right of payment to depositors and to certain other indebtedness of such subsidiary banks.

Deposit Insurance

Substantially all of the deposits of the Bank are insured up to applicable limits by the Deposit Insurance Fund (“DIF”) of the FDIC and the Bank is subject to deposit insurance assessments to maintain the DIF. Due to the decline in economic conditions, the deposit insurance provided by the FDIC per account owner was raised to $250,000 for all types of accounts. That change, initially intended to be temporary, was made permanent by the Dodd-Frank Act.

As insurer, the FDIC is authorized to conduct examinations of, and to require reporting by, DIF-insured institutions. It also may prohibit any DIF-insured institution from engaging in any activity the FDIC determines by regulation or order to pose a serious threat to the DIF. The FDIC also has the authority to take enforcement actions against insured institutions. Under the Federal Deposit Insurance Act, as amended (“FDIA”), the FDIC may terminate deposit insurance upon a finding that the institution has engaged in unsafe and unsound practices, is in an unsafe or unsound condition to continue operations, or has violated any applicable law, regulation, rule, order or condition imposed by the FDIC.

Under the FDIC’s risk-based assessment system, insured institutions are assigned to one of four risk categories based upon supervisory evaluations, regulatory capital level, and certain other factors, with less risky institutions paying lower assessments. An institution’s assessment rate depends upon the category to which it is assigned and certain other factors. Historically, assessment rates ranged from seven to 77.5 basis points of each institution’s deposit assessment base. On February 7, 2011, as required by the Dodd-Frank Act, the FDIC published a final rule to revise the deposit insurance assessment system. The rule, which took effect April 1, 2011, changed the assessment base used for calculating deposit insurance assessments from deposits to total assets less tangible (Tier 1) capital. Since the new base is larger than the previous base, the FDIC also lowered assessment rates so that the rule would not significantly alter the total amount of revenue collected from the industry. The range of adjusted assessment rates is now 2.5 to 45 basis points of the new assessment base.

As the DIF reserve ratio grows, the rate schedule will be adjusted downward. Additionally, an institution must pay an additional premium equal to 50 basis points on every dollar (above 3% of an institution’s Tier 1 capital) of long-term, unsecured debt held that was issued by another insured depository institution (excluding debt guaranteed under the Temporary Liquidity Guarantee Program). The FDIC has the authority to raise or lower assessment rates, subject to limits, and to impose special additional assessments.

The Dodd-Frank Act increased the minimum target DIF ratio from 1.15% of estimated insured deposits to 1.35% of estimated insured deposits. The FDIC must seek to achieve the 1.35% ratio by September 30, 2020. Insured institutions with assets of $10 billion or more, as expected the Bank will reach after the completion of the HVB Merger, are supposed to fund the increase. The Dodd-Frank Act eliminated the 1.5% maximum fund ratio, leaving it, instead, to the discretion of the FDIC. The FDIC has recently exercised that discretion by establishing a long-range fund ratio of 2%, which could result in our paying higher deposit insurance premiums in the future.

FDIC deposit insurance expense totaled $5.0 million, $2.4 million and $2.5 million in fiscal 2014, 2013 and 2012, respectively. FDIC deposit insurance expense includes deposit insurance assessments and Financing Corporation (“FICO”) assessments related to outstanding bonds issued by FICO in the late 1980s to recapitalize the now defunct Federal Savings & Loan Insurance Corporation. The FICO assessments will continue until the bonds mature in 2017 to 2019.

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Safety and Soundness Regulations

In accordance with the FDIA, the federal banking agencies adopted guidelines establishing general standards relating to internal controls, information systems, internal audit systems, loan documentation, credit underwriting, interest rate risk exposure, asset growth, asset quality, earnings, compensation, fees and benefits. In general, the guidelines require, among other things, appropriate systems and practices to identify and manage the risks and exposures specified in the guidelines. The guidelines prohibit excessive compensation as an unsafe and unsound practice and describe compensation as excessive when the amounts paid are unreasonable or disproportionate to the services performed by an executive officer, employee, director or principal shareholder. In addition, regulations adopted by the federal banking agencies authorize the agencies to require that an institution that has been given notice that it is not satisfying any of such safety and soundness standards to submit a compliance plan. If, after being so notified, the institution fails to submit an acceptable compliance plan or fails in any material respect to implement an accepted compliance plan, the agency must issue an order directing corrective actions and may issue an order directing other actions of the types to which an undercapitalized institution is subject under the “prompt corrective action” provisions of FDIA. If the institution fails to comply with such an order, the agency may seek to enforce such order in judicial proceedings and to impose civil money penalties.

Incentive Compensation

The Dodd-Frank Act requires the federal bank regulatory agencies and the Securities and Exchange Commission (the “SEC”) to establish joint regulations or guidelines prohibiting incentive-based payment arrangements at specified regulated entities, such as the Company and the Bank, having at least $1 billion in total assets that encourage inappropriate risks by providing an executive officer, employee, director or principal shareholder with excessive compensation, fees, or benefits or that could lead to material financial loss to the entity. In addition, these regulators must establish regulations or guidelines requiring enhanced disclosure to regulators of incentive-based compensation arrangements. The agencies proposed such regulations in April 2011, but the regulations have not been finalized. If the regulations are adopted in the form initially proposed, they will impose limitations on the manner in which the Company may structure compensation for its executives.

In June 2010, the FRB, OCC and FDIC issued comprehensive final guidance on incentive compensation policies intended to ensure that the incentive compensation policies of banking organizations do not undermine the safety and soundness of such organizations by encouraging excessive risk-taking. The guidance, which covers all employees that have the ability to materially affect the risk profile of an organization, either individually or as part of a group, is based upon the key principles that a banking organization’s incentive compensation arrangements should (i) provide incentives that do not encourage risk-taking beyond the organization’s ability to effectively identify and manage risks, (ii) be compatible with effective internal controls and risk management, and (iii) be supported by strong corporate governance, including active and effective oversight by the organization’s board of directors. These three principles are incorporated into the proposed joint compensation regulations under the Dodd-Frank Act, discussed above.

The FRB will review, as part of the regular, risk-focused examination process, the incentive compensation arrangements of banking organizations, such as the Company, that are not “large, complex banking organizations.” These reviews will be tailored to each organization based on the scope and complexity of the organization’s activities and the prevalence of incentive compensation arrangements. The findings of the supervisory initiatives will be included in reports of examination. Deficiencies will be incorporated into the organization’s supervisory ratings, which can affect the organization’s ability to make acquisitions and take other actions. Enforcement actions may be taken against a banking organization if its incentive compensation arrangements, or related risk-management control or governance processes, pose a risk to the organization’s safety and soundness and the organization is not taking prompt and effective measures to correct the deficiencies.

Loans to One Borrower

The Bank generally may not make loans or extend credit to a single or related group of borrowers in excess of 15% of unimpaired capital and surplus. An additional amount may be loaned, up to 10% of unimpaired capital and surplus, if the loan is secured by readily marketable collateral, which generally does not include real estate. As of September 30, 2014, the Bank was in compliance with the loans-to-one-borrower limitations.

Community Reinvestment Act

The Community Reinvestment Act of 1977 (“CRA”) requires depository institutions to assist in meeting the credit needs of their market areas consistent with safe and sound banking practice. Under the CRA, each depository institution is required to help meet the credit needs of its market areas by, among other things, providing credit to low- and moderate-income individuals and communities. Depository institutions are periodically examined for compliance with the CRA and are assigned ratings that must be publicly disclosed. In order for a financial holding company to commence any new activity permitted by the BHC Act, or to acquire any company engaged in any new activity permitted by the BHC Act, each insured depository institution subsidiary of the financial holding company must have received

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a rating of at least “satisfactory” in its most recent examination under the CRA. Furthermore, banking regulators take into account CRA ratings when considering approval of certain applications. The Bank received a rating of “satisfactory” in its most recent CRA exam.

Financial Privacy

The federal banking regulators adopted rules that limit the ability of banks and other financial institutions to disclose non-public information about consumers to nonaffiliated third parties. These limitations require disclosure of privacy policies to consumers and, in some circumstances, allow consumers to prevent disclosure of certain personal information to a nonaffiliated third party. These regulations affect how consumer information is transmitted through diversified financial companies and conveyed to outside vendors.

The Bank is also subject to regulatory guidelines establishing standards for safeguarding customer information. These guidelines describe the federal banking agencies’ expectations for the creation, implementation and maintenance of an information security program, which would include administrative, technical and physical safeguards appropriate to the size and complexity of the institution and the nature and scope of its activities.

Anti-Money Laundering and the USA Patriot Act

A major focus of governmental policy on financial institutions in recent years has been aimed at combating money laundering and terrorist financing. The USA PATRIOT Act of 2001 (the “USA Patriot Act”) substantially broadened the scope of United States anti-money laundering laws and regulations by imposing significant new compliance and due diligence obligations of financial institutions, creating new crimes and penalties and expanding the extra-territorial jurisdiction of the United States. Failure of a financial institution to maintain and implement adequate programs to combat money laundering and terrorist financing, or to comply with all of the relevant laws or regulations, could have serious legal and reputational consequences for the institution, including causing applicable bank regulatory authorities not to approve merger or acquisition transactions when regulatory approval is required or to prohibit such transactions even if approval is not required.

Stress Testing

On October 9, 2012, the FDIC and the FRB issued final rules requiring certain large insured depository institutions and bank holding companies to conduct annual capital-adequacy stress tests. Recognizing that banks and their parent holding companies may have different primary federal regulators, the FDIC and FRB have attempted to ensure that the standards of the final rules are consistent and comparable in the areas of scope of application, scenarios, data collection, reporting, and disclosure. To implement section 165(i) of the Dodd-Frank Act, the rules would apply to FDIC-insured state non-member banks and bank holding companies with total consolidated assets of more than $10 billion (“covered institutions”). While the Bank currently has less than $10 billion in assets, after completion of the HVB Merger, the Bank’s total assets could exceed $10 billion. The final rule requirement for public disclosure of a summary of the stress testing results for $10 billion to $50 billion covered institutions is being implemented starting with the 2014 stress test, with the disclosure occurring by June 30, 2015. The final rules define a stress test as a process to assess the potential impact of economic and financial scenarios on the consolidated earnings, losses and capital of the covered institution over a set planning horizon, taking into account the current condition of the covered institution and its risks, exposures, strategies and activities.

Under the rules, each covered institution with between $10 billion and $50 billion in assets would be required to conduct annual stress tests using the bank’s and the bank holding company’s financial data as of September 30 of that year to assess the potential impact of different scenarios on the consolidated earnings and capital of that bank and its holding company and certain related items over a nine-quarter forward-looking planning horizon, taking into account all relevant exposures and activities. On or before March 31 of each year, each covered institution, including the Bank and the Company, would be required to report to the FDIC and the FRB, respectively, in the manner and form prescribed in the rules, the results of the stress tests conducted by the covered institution during the immediately preceding year. Based on the information provided by a covered institution in the required reports to the FDIC and the FRB, as well as other relevant information, the FDIC and FRB would conduct an analysis of the quality of the covered institution’s stress test processes and related results. The FDIC and FRB envision that feedback concerning such analysis would be provided to a covered institution through the supervisory process. Consistent with the requirements of the Dodd-Frank Act, the rule would require each covered institution to publish a summary of the results of its annual stress tests within 90 days of the required date for submitting its stress test report to the FDIC and the FRB.

Volcker Rule

The Dodd-Frank Act amended the BHC Act to require the federal bank regulatory agencies to adopt rules that prohibit banks and their affiliates from engaging in proprietary trading and investing in and sponsoring certain unregistered investmentcompanies (defined as hedge funds and private equity funds), commonly referred to as the “Volcker Rule.”  The Volcker Rule also requires covered banking entities to implement certain compliance programs, and the complexity and rigor of such programs is determined based on the asset size of the covered company. Upon completion of the HVB Merger, we will be subject to heightened compliance requirements as a covered

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banking entity with over $10 billion in assets. The rules were effective April 1, 2014, but the conformance period has been extended from its statutory end date of July 21, 2014 until July 21, 2015. We continue to evaluate the impact of the Volcker Rule and the final rules adopted by the Federal Reserve thereunder, and whether it will require the Bank to divest any securities in its portfolio as a result of the Volcker Rule. The Bank may incur costs to adopt additional policies and systems to ensure compliance with the Volcker Rule.

Durbin Amendment

The Dodd-Frank Act included provisions which restrict interchange fees to those which are “reasonable and proportionate” for certain debit card issuers and limits the ability of networks and issuers to restrict debit card transaction routing. This statutory provision is known as the “Durbin Amendment.”  The Federal Reserve issued final rules implementing the Durbin Amendment on June 29, 2011.  In the final rules, interchange fees for debit card transactions were capped at $0.21 plus five basis points in order to be eligible for a safe harbor such that the fee is conclusively determined to be reasonable and proportionate.  The interchange fee restrictions contained in the Durbin Amendment, and the rules promulgated thereunder, only apply to debit card issuers with $10 billion or more in total consolidated assets, which we expect the Bank will reach after the completion of the HVB Merger.

Transactions with Affiliates

Transactions between the Bank and its affiliates are regulated by the FRB under sections 23A and 23B of the Federal Reserve Act and related FRB regulations. These regulations limit the types and amounts of covered transactions engaged in by the Bank and generally require those transactions to be on an arm’s-length basis. The term “affiliate” is defined to mean any company that controls or is under common control with the Bank and includes the Company and its non-bank subsidiaries. “Covered transactions” include a loan or extension of credit, as well as a purchase of securities issued by an affiliate, a purchase of assets (unless otherwise exempted by the FRB) from the affiliate, certain derivative transactions that create a credit exposure to an affiliate, the acceptance of securities issued by the affiliate as collateral for a loan, and the issuance of a guarantee, acceptance or letter of credit on behalf of an affiliate. In general, these regulations require that any such transaction by the Bank (or its subsidiaries) with an affiliate must be secured by designated amounts of specified collateral and must be limited to certain thresholds on an individual and aggregate basis.

Federal law also limits the Bank’s authority to extend credit to its directors, executive officers and 10% shareholders, as well as to entities controlled by such persons. Among other things, extensions of credit to insiders are required to be made on terms that are substantially the same as, and follow credit underwriting procedures that are not less stringent than, those prevailing for comparable transactions with unaffiliated persons. Also, the terms of such extensions of credit may not involve more than the normal risk of repayment or present other unfavorable features and may not exceed certain limitations on the amount of credit extended to such persons, individually and in the aggregate, which limits are based, in part, on the amount of the Bank’s capital.

Federal Home Loan Bank System

The Bank is a member of the Federal Home Loan Bank System, which consists of 12 regional Federal Home Loan Banks. The Federal Home Loan Bank System provides a central credit facility primarily for member institutions. As a member of the Federal Home Loan Bank of New York (“FHLBNY”), the Bank is required to acquire and hold shares of capital stock of the FHLBNY in an amount at least equal to the sum of the membership stock purchase requirement, determined on an annual basis at the end of each calendar year, and the activity-based stock purchase requirement, determined on a daily basis. For the Bank, the membership stock purchase requirement is 0.15% of the Mortgage-Related Assets, as defined by the FHLBNY, which consists principally of residential mortgage loans and mortgage-backed securities, held by the Bank. The activity-based stock purchase requirement is equal to the sum of: (1) a specified percentage ranging from 4.0% to 5.0%, which for the Bank is 4.5%, of outstanding borrowings from the FHLBNY; (2) a specified percentage ranging from 4.0% to 5.0%, which for the Bank is inapplicable, of the outstanding principal balance of Acquired Member Assets, as defined by the FHLBNY, and delivery commitments for Acquired Member Assets; (3) a specified dollar amount related to certain off-balance sheet items, which for the Bank is inapplicable; and (4) a specified percentage ranging from 0% to 5%, which for the Bank is inapplicable, of the carrying value on the FHLBNY’s balance sheet of derivative contracts between the FHLBNY and the Bank. The FHLBNY can adjust the specified percentages and dollar amount from time to time within the ranges established by the FHLBNY capital plan. As of September 30, 2014, the Bank was in compliance with the minimum stock ownership requirement.

Federal Reserve System

FRB regulations require depository institutions to maintain cash reserves against their transaction accounts (primarily NOW and demand deposit accounts). A reserve of 3% is to be maintained against aggregate transaction accounts between $13.3 million and $89.0 million (subject to adjustment by the FRB) plus a reserve of 10% (subject to adjustment by the FRB between 8% and 14%) against that portion of total transaction accounts in excess of $89.0 million. The first $13.3 million of otherwise reservable balances (subject to adjustment by the FRB) is exempt from the reserve requirements. The Bank is in compliance with the foregoing requirements.

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Consumer Protection Regulations

The Bank is subject to federal consumer protection statutes and regulations promulgated under those laws, including, but not limited to the following:

• Truth-In-Lending Act and Regulation Z, governing disclosures of credit terms to consumer borrowers;

• Home Mortgage Disclosure Act and Regulation C, requiring financial institutions to provide certain information about home mortgage and refinanced loans;

• Equal Credit Opportunity Act and Regulation B, prohibiting discrimination on the basis of race, creed, or other prohibited factors in extending credit;

• Fair Credit Reporting Act and Regulation V, governing the provision of consumer information to credit reporting agencies and the use of consumer information; and

• Fair Debt Collection Act, governing the manner in which consumer debts may be collected by collection agencies.

Deposit operations are also subject to:

• The Truth in Savings Act and Regulation DD, which requires disclosure of deposit terms to consumers;

• Regulation CC, which relates to the availability of deposit funds to consumers;

• The Right to Financial Privacy Act, which imposes a duty to maintain the confidentiality of consumer financial records and prescribes procedures for complying with administrative subpoenas of financial records; and

• Electronic Funds Transfer Act and Regulation E, governing automatic deposits to, and withdrawals from, deposit accounts and customers’ rights and liabilities arising from the use of automated teller machines and other electronic banking services.

In addition, the Bank may be subject to certain state laws and regulations designed to protect consumers.

Many of the foregoing laws and regulations are subject to change resulting from the provisions in the Dodd-Frank Act, which in many cases calls for revisions to implementing regulations. In addition, oversight responsibilities of these and other consumer protection laws and regulations will, in large measure, transfer from the Bank’s primary regulators to the CFPB, which will have supervisory authority over the Bank if, as anticipated, the Bank’s assets exceed $10 billion after the completion of the HVB Merger. We cannot predict the effect that being regulated by the CFPB, or any new or revised regulations that may result from its establishment, will have on our businesses.

Consumer Financial Protection Bureau

Created under the Dodd-Frank Act, and given extensive implementation and enforcement powers over all banks with over $10 billion in assets, which the Bank expects to reach with the HVB Merger, the CFPB has broad rulemaking authority for a wide range of consumer financial laws that apply to all banks including, among other things, the authority to prohibit “unfair, deceptive, or abusive” acts and practices. Abusive acts or practices are defined as those that (1) materially interfere with a consumer’s ability to understand a term or condition of a consumer financial product or service, or (2) take unreasonable advantage of a consumer’s (a) lack of financial savvy, (b) inability to protect himself in the selection or use of consumer financial products or services, or (c) reasonable reliance on a covered entity to act in the consumer’s interests. The CFPB has the authority to investigate possible violations of federal consumer financial law, hold hearings and commence civil litigation. The CFPB can issue cease-and-desist orders against banks and other entities that violate consumer financial laws. The CFPB may also institute a civil action against an entity in violation of federal consumer financial law in order to impose a civil penalty or an injunction.

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ITEM 1A. Risk Factors

Changes in laws, government regulation and monetary policy may have a material effect on our results of operations

Financial institutions are the subject of significant legislative and regulatory laws, rules and regulations and may be subject to further additional legislation, rulemaking or regulation in the future, none of which is within our control. Significant new laws, rules or regulations or changes in, or repeals of, existing laws, rules or regulations, including, but not limited to, those with respect to federal and state taxation, may cause our results of operations to differ materially. In addition, the costs and burden of compliance have significantly increased and could adversely affect our ability to operate profitably. Further, federal monetary policy significantly affects credit conditions for the Bank, as well as for our borrowers, particularly as implemented through the Federal Reserve System, primarily through open market operations in U.S. government securities, the discount rate for bank borrowings and reserve requirements. A material change in any of these conditions could have a material impact on the Bank or our borrowers, and therefore on our results of operations.

Recent legislative and regulatory initiatives to support the financial services industry have been coupled with numerous restrictions and requirements that could detrimentally affect our business.

The Dodd-Frank Act and the rules and regulations promulgated thereunder have and continue to significantly impact the United States bank regulatory structure and affect the lending, deposit, investment, trading and operating activities of financial institutions and their holding companies.

The Dodd-Frank Act broadens the base for FDIC insurance assessments. The FDIC insures deposits at FDIC-insured financial institutions, including the Bank. The FDIC charges insured financial institutions premiums to maintain the DIF at a specific level. In addition, the Dodd-Frank Act increased the minimum target DIF ratio from 1.15% of estimated insured deposits to 1.35% of estimated insured deposits and the FDIC must seek to achieve the 1.35% ratio by September 30, 2020. The FDIC has issued regulations to implement these provisions of the Dodd-Frank Act. It has, in addition, established a higher reserve ratio of 2% as a long-term goal beyond what is required by statute, although there is no implementation deadline for the 2% ratio. The FDIC may increase the assessment rates or impose additional special assessments in the future to keep the DIF at the statutory target level. The Bank’s FDIC insurance premiums increased substantially beginning in 2009, and we continue to expect to pay high premiums in the future. Any increase in our FDIC premiums could have a materially adverse effect on the Bank’s financial condition, results of operations and its ability to pay dividends.

Additionally, on December 10, 2013, five financial regulatory agencies, including the Bank’s primary federal regulator, the OCC, adopted final rules implementing a provision of the Dodd-Frank Act, commonly referred to as the Volcker Rule. The Volcker Rule prohibits banking entities from, among other things, engaging in short-term proprietary trading of securities, derivatives, commodity futures and options on these instruments for their own account; or owning, sponsoring, or having certain relationships with hedge funds or private equity funds, referred to as “covered funds.” The Volcker Rule also requires covered banking entities to implement certain compliance programs, policies and procedures. The complexity and rigor of such programs is determined based on the asset size of the covered company. Upon completion of the HVB Merger, we will be subject to heightened compliance requirements as a covered banking entity with over $10 billion in assets. The rules were effective April 1, 2014, but the conformance period has been extended from its statutory end date of July 21, 2014 until July 21, 2015. We are currently evaluating the Volcker Rule. If we are required to divest any securities in our portfolio, hire additional compliance or personnel, design and implement additional internal controls or incur other significant expenses as a result of the Volcker Rule, it could result in impairments that could materially adversely affect our financial condition, results of operations and our ability to pay dividends or repurchase shares.

The Dodd-Frank Act also significantly impacts the various consumer protection laws, rules and regulations applicable to financial institutions. First, it rolls back the federal preemption of state consumer protection laws that was enjoyed by national banks by (1) requiring that a state consumer financial law prevent or significantly interfere with the exercise of a national bank’s powers before it can be preempted, (2) mandating that any preemption decision be made on a case by case basis rather than a blanket rule, and (3) ending the applicability of preemption to subsidiaries and affiliates of national banks. As a result, we may now be subject to state consumer protection laws in each state where we do business, and those laws may be interpreted and enforced differently in each state. In addition, the Dodd-Frank Act created the CFPB, which has assumed responsibility for supervising financial institutions which have assets of $10 billion or more for their compliance with the principal federal consumer protection laws, such as the Truth in Lending Act, the Equal Credit Opportunity Act, the Real Estate Settlement Procedures Act and the Truth in Savings Act, among others (institutions which have assets of $10 billion or less will continue to be supervised in this area by their primary federal regulators) . While the Bank currently has less than $10 billion in assets, after the completion of the HVB Merger we believe that the Bank’s total assets will exceed $10 billion, thus making it subject to the CFPB’s supervision. Thus, in addition to a variety of new consumer protection laws, rules and regulations that we may be subject to, the Bank may also be subject to a new agency with evolving regulations and practices.

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The scope and impact of many of the Dodd-Frank Act provisions, including the authority provided to the CFPB, will continue to be determined over time as rules and regulations are issued and become effective. As a result, we cannot predict the ultimate impact of the Dodd-Frank Act on us at this time, including the extent to which it could increase costs or limit our ability to pursue business opportunities in an efficient manner, or otherwise adversely affect our business, financial condition, results of operations and our ability to pay dividends or repurchase shares. However, it is expected that at a minimum they will increase our operating and compliance costs. Compliance with these requirements may necessitate that we hire additional compliance or other personnel, design and implement additional internal controls, or incur other significant expenses, any of which could have a material adverse effect on our business, financial condition or results of operations and our ability to pay dividends or repurchase shares.

We are subject to extensive regulatory oversight.

We and our subsidiaries are subject to extensive supervision and regulation. The Company is supervised and regulated by the Federal Reserve and the Bank is supervised and regulated by the OCC. The application of laws, rules and regulations may vary as administered by the Federal Reserve and the OCC. In addition, the Company is subject to consolidated capital requirements and must serve as a source of strength to the Bank. 

As a result, we are limited in the manner in which we conduct our business, undertake new investments and activities and obtain financing. This regulatory structure is designed primarily for the protection of the DIF and our depositors, as well as other consumers and not to benefit our shareholders. This regulatory structure also gives the regulatory authorities extensive discretion in connection with their supervisory and enforcement activities and examination policies, including policies with respect to capital levels, the timing and amount of dividend payments, the classification of assets and the establishment of adequate loan loss reserves for regulatory purposes, all of which can have a material adverse effect on our financial condition, results of operations and our ability to pay dividends or repurchase shares. Our regulators have also intensified their focus on bank lending criteria and controls, and on the USA PATRIOT Act’s anti-money laundering and Bank Secrecy Act compliance requirements. There is also increased scrutiny of our compliance with the rules enforced by the Office of Foreign Assets Control. In order to comply with laws, rules, regulations, guidelines and examination procedures in the anti-money laundering area, we have been required to adopt new policies and procedures and to install new systems. We cannot be certain that the policies, procedures and systems we have in place to ensure compliance are without error and there is no assurance that in every instance we are in full compliance with these requirements.

Our failure to comply with applicable laws, rules and regulations could result in a range of sanctions, legal proceedings and enforcement actions, including the imposition of civil monetary penalties, formal agreements and cease and desist orders. In addition, the OCC and the FDIC have specific authority to take “prompt corrective action,” depending on our capital levels. For example, currently, we are considered “well-capitalized” for prompt corrective action purposes. If we are designated by the OCC as “adequately capitalized,” we would become subject to additional restrictions and limitations, such as the Bank’s ability to take brokered deposits becoming limited. If we were to be designated by the OCC in one of the lower capital levels (such as “undercapitalized,” “significantly undercapitalized” or “critically undercapitalized”) we would be required to raise additional capital and also would be subject to progressively more severe restrictions on our operations, management and capital distributions; replacement of senior executive officers and directors; and, if we became “critically undercapitalized,” to the appointment of a conservator or receiver.

In addition, and as mentioned above in “Risk Factors - Recent legislative and regulatory initiatives to support the financial services industry have been coupled with numerous restrictions and requirements that could detrimentally affect our business,” the Dodd-Frank Act and its implementing regulations impose various additional requirements on bank holding companies with $10 billion or more in total assets, including compliance with portions of the Federal Reserve’s enhanced prudential oversight requirements and annual stress testing requirements. Compliance with the annual stress testing requirements, part of which must be publicly disclosed, may also be misinterpreted by the market generally or our customers and, as a result, may adversely affect our stock price or our ability to retain our customers or effectively compete for new business opportunities. To ensure compliance with these heightened requirements when effective, our regulators may require us to fully comply with these requirements or take actions to prepare for compliance even before the completion of the HVB Merger, when our or the Bank’s total assets could equal or exceed $10 billion. As a result, we may incur compliance-related costs before we might otherwise be required. Our regulators may also consider our preparation for compliance with these regulatory requirements when examining our operations generally or considering any request for regulatory approval we may make, even requests for approvals on unrelated matters.

New capital rules that were recently issued generally require insured depository institutions and their holding companies to hold more capital. The impact of the new rules on our financial condition and operations is uncertain but could be materially adverse.

In 2013, the Federal Reserve, the FDIC and the OCC adopted final rules for the Basel III capital framework. These rules substantially amend the regulatory risk-based capital rules applicable to us. The rules phase in over time beginning in 2015 and will become fully effective in 2019. The rules apply to the Company as well as to the Bank. Beginning in 2015, our minimum capital requirements will be

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(i) a common Tier 1 equity ratio of 4.5%, (ii) a Tier 1 capital (common Tier 1 capital plus Additional Tier 1 capital) of 6% and (iii) a total capital ratio of 8% (the current requirement). Beginning in 2016, a capital conservation buffer will phase in over three years, ultimately resulting in a requirement of 2.5% on top of the common Tier 1, Tier 1 and total capital requirements, resulting in a required common Tier 1 equity ratio of 7%, a Tier 1 ratio of 8.5%, and a total capital ratio of 10.5%. Failure to satisfy any of these three capital requirements will result in limits on paying dividends, engaging in share repurchases and paying discretionary bonuses. These limitations will establish a maximum percentage of eligible retained income that could be utilized for such actions.

General economic conditions in our market area could adversely affect us.

We are affected by the general economic conditions in the local markets in which we operate. When the recession began in 2008, the market experienced a significant downturn in which we saw falling home prices, rising foreclosures and an increased level of commercial and consumer delinquencies. Although economic conditions have improved, many businesses and individuals are still experiencing difficulty as a result of the recent economic downturn and protracted recovery. If economic conditions do not continue to improve, we could experience further adverse consequences, including a decline in demand for our products and services and an increase in problem assets, foreclosures and loan losses. Future economic conditions in our market will depend on factors outside of our control such as political and market conditions, broad trends in industry and finance, legislative and regulatory changes, changes in government, military and fiscal policies and inflation, any of which could negatively affect our performance and financial condition.

An inadequate allowance for loan losses would negatively impact our results of operations.

We are exposed to the risk that our customers will be unable to repay their loans according to their terms and that any collateral securing the payment of their loans will not be sufficient to avoid losses. Credit losses are inherent in the lending business and could have a material adverse effect on our operating results. Volatility and deterioration in the broader economy may also increase our risk of credit losses. The determination of an appropriate level of allowance for loan losses is an inherently uncertain process and is based on numerous assumptions. The amount of future losses is susceptible to changes in economic, operating and other conditions, including changes in interest rates, that may be beyond our control, and charge-offs may exceed current estimates. We evaluate the collectability of our loan portfolio and provide an allowance for loan losses that we believe is adequate based upon such factors as, including, but not limited to: the risk characteristics of various classifications of loans; previous loan loss experience; specific loans that have loss potential; delinquency trends; the estimated fair market value of the collateral; current economic conditions; the views of our regulators; and geographic and industry loan concentrations. If any of our evaluations are incorrect and/or borrower defaults result in losses exceeding our allowance for loan losses, our results of operations could be significantly and adversely affected. We cannot assure you that our allowance will be adequate to cover probable loan losses inherent in our portfolio.

The need to account for assets at market prices may adversely affect our results of operations.

We report certain assets, including investments and securities, at fair value. Generally, for assets that are reported at fair value we use quoted market prices or valuation models that utilize market data inputs to estimate fair value. Because we carry these assets on our books at their fair value, we may incur losses even if the assets in question present minimal credit risk. We may be required to recognize other-than-temporary impairments in future periods with respect to securities in our portfolio. The amount and timing of any impairment recognized will depend on the severity and duration of the decline in fair value of the securities and our estimation of the anticipated recovery period.

Changes in the value of goodwill and intangible assets could reduce our earnings.

The Company accounts for goodwill and other intangible assets in accordance with GAAP (as defined below), 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. As of September 30, 2014, the fair value of Sterling Bancorp shares exceeds the recorded book value. 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.

Commercial real estate, commercial & industrial and ADC loans expose us to increased risk and earnings volatility.

We consider our commercial real estate loans, commercial & industrial loans and ADC loans to be higher risk categories in our loan portfolio. These loans are particularly sensitive to economic conditions. At September 30, 2014, our portfolio of commercial real estate loans, including multi-family loans, totaled $1.8 billion, or 38.1% of total loans, our portfolio of commercial & industrial loans totaled $2.1 billion, or 43.7% of total loans, and our portfolio of ADC loans totaled $92.1 million, or 1.9% of total loans. We plan to continue to emphasize the origination of these types of loans, other than ADC loans, which we now make only on an exception basis.

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Commercial real estate loans generally involve a higher degree of credit risk than residential loans because they typically have larger balances and are more affected by adverse conditions in the economy. Because payments on loans secured by commercial real estate often depend on the successful operation and management of the businesses which hold the loans, repayment of such loans may be affected by factors outside the borrower’s control, such as adverse conditions in the real estate market or the economy or changes in government regulation. In the case of commercial & industrial loans, although we strive to maintain high credit standards and limit exposure to any one borrower, the collateral for these loans often consists of accounts receivable, inventory and equipment. This type of collateral typically does not yield substantial recovery in the event we need to foreclose on it and may rapidly deteriorate, disappear, or be misdirected in advance of foreclosure. This adds to the potential that our charge-offs will be more volatile than we have experienced in the past, which could significantly negatively affect our earnings in any quarter. In addition, some of our ADC loans pose higher risk levels than the levels expected at origination, as projects may stall or sell at prices lower than expected. We continue to seek pay downs on loans with or without sales activity. While this portfolio may cause us to incur additional bad debt expense even if losses are not realized, such loans only comprise 1.9% of our loan portfolio.

In addition, many of our borrowers also have more than one commercial real estate, commercial business or ADC loan outstanding with us. Consequently, an adverse development with respect to one loan or one credit relationship may expose us to significantly greater risk of loss.

Our continuing concentration of loans in our primary market area may increase our risk.

Our success depends primarily on the general economic conditions in the counties in which we conduct most of our business. Most of our loans and deposits are generated from customers primarily in the New York City metropolitan region and in Rockland and Orange Counties in New York. We also have a presence in Ulster, Sullivan, Westchester and Putnam Counties in New York and in Bergen County, New Jersey. Our expansion into New York City and continued growth in Westchester County and Bergen County has helped us diversify our geographic concentration with respect to our lending activities. Deterioration in economic conditions in our market area would adversely affect our results of operations and financial condition.

Changes in market interest rates could adversely affect our financial condition and results of operations.

Our financial condition and results of operations are significantly affected by changes in market interest rates. Our results of operations substantially depend on our net interest income, which is the difference between the interest income that we earn on our interest-earning assets and the interest expense that we pay on our interest-bearing liabilities. In recent years, our balance sheet has become more asset sensitive because our assets mature or re-price at a faster pace than our liabilities. If interest rates were to continue at existing levels or decline, net interest income would be adversely affected as asset yields would be expected to decline at faster rates than deposit or borrowing costs. A decline in net interest income may also occur, offsetting a portion or all gains in net interest income from assets re-pricing and increases in volume, if competitive market pressures limit our ability to maintain or lag deposit costs. Wholesale funding costs may also increase at a faster pace than asset re-pricing. As of September 30, 2014, we have $200.0 million in structured advances with the FHLB at an average cost of 4.23%. If interest rates were to approach or exceed this level, the FHLB may call those borrowings and offer replacement borrowings at current market rates which would be higher.

We also are subject to reinvestment risk associated with changes in interest rates. Changes in interest rates may affect the average life of loans and securities. Decreases in interest rates often result in increased prepayments of loans and securities, as borrowers refinance their loans to reduce borrowings costs. Under these circumstances, we are subject to reinvestment risk to the extent that we are unable to reinvest the cash received from such prepayments in loans or other investments that have interest rates that are comparable to the interest rates on existing loans and securities. Additionally, increases in interest rates may decrease loan demand and/or may make it more difficult for borrowers to repay adjustable rate loans.

Changes in interest rates also affect the value of our interest earning assets and in particular our securities portfolio. Generally, the value of our securities fluctuates inversely with changes in interest rates. At September 30, 2014, our available for sale securities portfolio totaled $1.1 billion. Unrealized losses on securities available for sale, net of tax, amounted to $2.8 million and are reported as part of other comprehensive income (loss), included as a separate component of stockholders’ equity. Further decreases in the fair value of securities available for sale could have an adverse effect on stockholders’ equity.

Our ability to pay dividends is subject to regulatory limitations and other limitations which may affect our ability to pay dividends to our stockholders or to repurchase our common stock.

Sterling Bancorp is a separate legal entity from its subsidiary, Sterling National Bank, and does not have significant operations of its own. The availability of dividends from the Bank is limited by various statutes and regulations. It is possible, depending upon the financial condition of the Bank and other factors, that the Bank’s regulators could assert that payment of dividends or other payments may result in an unsafe or unsound practice. In addition, under the Dodd-Frank Act, Sterling Bancorp is subjected to consolidated capital requirements

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and must serve as a source of strength to the Bank. If the Bank is unable to pay dividends to Sterling Bancorp or Sterling Bancorp is required to retain capital or contribute capital to the Bank, we may not be able to pay dividends on our common stock or to repurchase shares of common stock.

A breach of information security could negatively affect our earnings.

Increasingly, we depend upon data processing, communication and information exchange on a variety of computing platforms and networks, and over the Internet from both internal sources and external, third-party vendors. While to date we have not been subject to material cyber-attacks or other cyber incidents, we cannot guarantee all our systems are free from vulnerability to attack, despite safeguards we and our vendors have instituted. In addition, disruptions to our vendors’ systems may arise from events that are wholly or partially beyond our and our vendors’ control (including, for example, computer viruses or electrical or telecommunications outages). If information security is breached, despite the controls we and our third-party vendors have instituted, information can be lost or misappropriated, resulting in financial losses or costs to us or damages to others. These costs or losses could materially exceed the amount of insurance coverage, if any, which would adversely affect our earnings. In addition, our reputation could be damaged which could result in loss of customers, greater difficulty in attracting new customers, or an adverse effect on the value of our common stock.

We are subject to competition from both banks and non-bank companies.

The financial services industry, including commercial banking, is highly competitive, and we encounter strong competition for deposits, loans and other financial services in our market area. Our principal competitors include commercial banks, savings banks and savings and loan associations, mutual funds, money market funds, finance companies, trust companies, insurers, leasing companies, credit unions, mortgage companies, real estate investment trusts (REITs), private issuers of debt obligations, venture capital firms, and suppliers of other investment alternatives, such as securities firms. Many of our non-bank competitors are not subject to the same degree of regulation as we are and have advantages over us in providing certain services. Many of our competitors are significantly larger than we are and have greater access to capital and other resources. Also, our ability to compete effectively is dependent on our ability to adapt successfully to technological changes within the banking and financial services industry.

Various factors may make takeover attempts more difficult to achieve.

Our Board of Directors (the “Board”) has no current intention to sell control of Sterling Bancorp. Provisions of our certificate of incorporation and bylaws, federal regulations, Delaware law and various other factors may make it more difficult for companies or persons to acquire control of Sterling Bancorp without the consent of our Board. A shareholder may want a takeover attempt to succeed because, for example, a potential acquirer could offer a premium over the then prevailing market price of our common stock. The factors that may discourage takeover attempts or make them more difficult include:

(a) Certificate of Incorporation and statutory provisions.

Provisions of the certificate of incorporation and bylaws of Sterling Bancorp and Delaware law may make it more difficult and expensive to pursue a takeover attempt that our Board opposes. These provisions also would make it more difficult to remove our current Board, or to elect new directors. These provisions also include limitations on voting rights of beneficial owners of more than 10% of our common stock, super majority voting requirements for certain business combinations, and plurality voting. Our bylaws also contain provisions regarding the timing and content of stockholder proposals and nominations and qualification for service on the Board.

(b) Required change in control payments and issuance of stock options and recognition and retention plan shares.

We have entered into employment agreements with executive officers, which require payments to be made to them in the event their employment is terminated following a change in control of Sterling Bancorp or Sterling National Bank. We have issued stock grants and stock options in accordance with the 2004 Provident Bancorp Inc. Stock Incentive Plan and the Sterling Bancorp 2014 Stock Incentive Plan. In the event of a change in control, the vesting of stock and option grants would accelerate. In 2006, we adopted the Provident Bank & Affiliates Transition Benefit Plan. The plan calls for severance payments ranging from 12 weeks to one year for employees not covered by separate agreements if they are terminated in connection with a change in control of the Company.

Our ability to make opportunistic acquisitions is subject to significant risks, including the risk that regulators will not provide the requisite approvals.

We may make opportunistic whole or partial acquisitions of other banks, branches, financial institutions, or related businesses from time to time that we expect may further our business strategy, including through participation in FDIC-assisted acquisitions or assumption of deposits from troubled institutions. Any possible acquisition will be subject to regulatory approval, and there can be no assurance that we will be able to obtain such approval in a timely manner or at all. Even if we obtain regulatory approval, these acquisitions could involve numerous risks, including lower than expected performance or higher than expected costs, difficulties related to integration, difficulties and costs associated with consolidation and streamlining inefficiencies, diversion of management’s attention from other business activities, changes in relationships with customers, and the potential loss of key employees. In addition, we may not be successful

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in identifying acquisition candidates, integrating acquired institutions, or preventing deposit erosion or loan quality deterioration at acquired institutions. Competition for acquisitions can be highly competitive, and we may not be able to acquire other institutions on attractive terms. There can be no assurance that we will be successful in completing or will even pursue future acquisitions, or if such transactions are completed, that we will be successful in integrating acquired businesses into operations. Our ability to grow may be limited if we choose not to pursue or are unable to successfully make acquisitions in the future.

Moreover, as noted previously, Hudson Valley and the Company have entered into a definitive agreement to merge the two companies. The HVB Merger will be subject to regulatory approval and the approval of both companies’ shareholders, and there can be no assurance that such approvals will be obtained in a timely manner or at all. Even if the approvals are obtained, the success of the HVB Merger, including anticipated benefits and cost savings, will depend, in part, on the Company’s ability to successfully combine and integrate the businesses of the predecessor companies in a manner that permits growth opportunities and does not result in the loss of key employees, the disruption of either company’s ongoing businesses, including existing customer relationships, 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 HVB Merger. Such integration will likely require the consolidation of financial centers in overlapping market areas to reduce redundancy and promote efficiency. As was the case with the Merger in the first quarter of fiscal 2014, consolidation of overlapping financial centers following the HVB Merger may result in restructuring charges, charges for asset write-downs and severance costs that we may not recoup until a date in the future, if at all. If the Company experiences difficulties with the integration process, the anticipated benefits of the HVB Merger may not be realized fully or at all, or may take longer to realize than expected.

Our results of operations, financial condition or liquidity may be adversely impacted by issues arising from certain industry deficiencies in foreclosure practices, including delays and challenges in the foreclosure process.

Over the past few years, foreclosure time lines have increased due to, among other reasons, delays associated with the significant increase in the number of foreclosure cases as a result of the economic downturn, federal and state legal and regulatory actions, including additional consumer protection initiatives related to the foreclosure process and voluntary and, in some cases, mandatory programs intended to permit or require lenders to consider loan modifications or other alternatives to foreclosure. Residential mortgages in particular may present us with foreclosure process issues. Residential mortgages, for example, are 12% of our total loan portfolio, but constitute 32.1% of our non-accrual loans. Collateral for many of our residential loans is located within the State of New York, where there may continue to be foreclosure process and timeline issues. Further increases in the foreclosure time-line may have an adverse effect on collateral values and our ability to minimize our losses.

The Company depends on its executive officers and key personnel to continue the implementation of its long-term business strategy and could be harmed by the loss of their services.

The Company believes that its continued growth and future success will depend in large part on the skills of its management team and its ability to motivate and retain these individuals and other key personnel. In particular, the Company relies on the leadership of its Chief Executive Officer, Jack Kopnisky. The loss of service of Mr. Kopnisky or one or more of the Company’s other executive officers or key personnel could reduce the Company’s ability to successfully implement its long-term business strategy, its business could suffer and the value of the Company’s common stock could be materially adversely affected. Leadership changes will occur from time to time and the Company cannot predict whether significant resignations will occur or whether the Company will be able to recruit additional qualified personnel. The Company believes its management team possesses valuable knowledge about the banking industry and the Company’s markets and that their knowledge and relationships would be very difficult to replicate. Although the Chief Executive Officer, Chief Financial Officer and other executive officers have entered into employment agreements with the Company, it is possible that they may not complete the term of their employment agreements or renew them upon expiration. The Company’s success also depends on the experience of its branch managers and lending officers and on their relationships with the customers and communities they serve. The loss of these key personnel could negatively impact the Company’s banking operations. The loss of key personnel, or the inability to recruit and retain qualified personnel in the future, could have an adverse effect on the Company’s business, financial condition or operating results.

ITEM 1B. Unresolved Staff Comments

Not Applicable.

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ITEM 2. Properties

We maintain our executive offices, commercial lending division and wealth management and back office operations departments at a leased facility located at 400 Rella Boulevard, Montebello, New York consisting of 48,623 square feet. At September 30, 2014, we conducted our business through 32 full-service financial centers which serve the New York Metro Market and the New York Suburban Market. Of these financial centers, seven are located in Orange County, New York and nine in Rockland County, New York. We operate five offices in Ulster, Sullivan, Westchester and Putnam Counties in New York, seven offices in New York City, three offices in Long Island and 1 office in Bergen County, New Jersey. Additionally, 12 of our financial centers are owned and 20 are leased.

In addition to our financial center network and corporate headquarters, we lease four additional properties which are used for general corporate purposes and 26 other real estate owned properties located in Putnam, Orange, Rockland, Sullivan and Ulster counties. See Note 5. “Premises and Equipment, net” to the consolidated financial statements for further detail on our premises and equipment.

Item 3. Legal Proceedings

Note 16. “Commitments and Contingencies - Litigation” to the consolidated financial statements contained in Item 8. hereof is incorporated herein by reference. The Company does not anticipate that the aggregate liability arising out of litigation pending against the Company and its subsidiaries will be material to its consolidated financial statements.

ITEM 4. Mine Safety Disclosures

Not Applicable.

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PART II

ITEM 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Common Stock Market Prices and Dividends

The Company’s common stock is traded on the New York Stock Exchange (“NYSE”) under the symbol “STL”. The following table sets forth the high and low intra-day sales prices per share of Sterling Bancorp common stock and the cash dividends declared per share for the past two fiscal years.

Quarter ended	High		Low		Cash dividends declared
September 30, 2014	$	13.34	$	11.60	$	0.07
June 30, 2014	13.00		10.84		0.07
March 31, 2014	13.34		11.73		0.07
December 31, 2013	13.52		10.71		—
September 30, 2013	11.32		9.36		0.12
June 30, 2013	9.55		8.69		0.06
March 31, 2013	9.71		8.59		0.06
December 31, 2012	9.83		8.62		0.06

As of September 30, 2014, there were 83,628,267 shares of the Company’s common stock outstanding held by 5,471 holders of record (excluding the number of persons or entities holding stock in street name through various brokerage firms). The closing price per share of common stock on September 30, 2014, the last trading day of the Company’s fiscal year, was $12.79.

The Board is committed to continuing to pay regular cash dividends; however, there can be no assurance as to future dividends because they are dependent upon the Company’s future earnings, capital requirements and financial condition. In connection with the Merger, the Company accelerated the dividend that would have been regularly declared in the quarter ended December 31, 2013 to the quarter ended September 30, 2013. Therefore, the Company declared cash dividends of $0.12 per share in the quarter ended September 30, 2013 and did not declare a dividend in the quarter ended December 31, 2013.

See the section captioned “Regulation” included in Item 1. “Business”, the section captioned “Capital and Liquidity” included in Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Note 14. “Stockholders’ Equity” to the consolidated financial statements all of which are included elsewhere in this report, for additional information regarding our common stock and our ability to pay dividends.

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Performance Graph

Set forth below is a stock performance graph comparing the cumulative total shareholder return on Sterling Bancorp common stock with (a) the cumulative total return on the S&P 500 Composite Index and (b) the SNL Mid-Atlantic Bank Index, measured as of the last trading day of each year shown. The graph assumes an investment of $100 on September 30, 2009 and reinvestment of dividends on the date of payment without commissions. The performance graph represents past performance and should not be considered to be an indication of future stock performance.

	Performance at September 30,
Index	2009	2010	2011	2012	2013	2014
Sterling Bancorp	100.00	90.20	64.30	107.17	127.21	152.93
S&P 500 Index	100.00	110.16	111.42	145.07	173.13	207.30
SNL Mid-Atlantic Bank Index	100.00	89.97	71.02	94.54	127.03	145.65

This stock performance graph shall not be deemed incorporated by reference by any general statement incorporating by reference this Form 10-K under the Securities Act, or the Securities Exchange Act of 1934, as amended, except to the extent that Sterling Bancorp specifically incorporates this information by reference, and shall not otherwise be deemed filed under such Acts.

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Issuer Purchases of Equity Securities

The following table reports information regarding purchases of the Company’s common stock during the fourth fiscal quarter of 2014 and the stock repurchase plan approved by the Board:  

	Total Number of shares (or units) purchased	Average price paid per share (or unit)		Total number of shares (or units) purchased as part of publicly announced plans or programs (1)	Maximum number (or approximate dollar value) of shares (or units) that may yet be purchased under the plans or programs (1)
Period (2014)
July 1 — July 31	—	$	—	—	776,713
August 1 — August 31	—	—		—	776,713
September 1 — September 30	—	—		—	776,713
Total	—	$	—	—

¹  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.

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ITEM 6. Selected Financial Data

The following summary data is based in part on the consolidated financial statements and accompanying notes, and other schedules appearing elsewhere in this Form 10-K. Comparability of the selected financial data at or for the year ended September 30, 2014 to earlier periods is affected by the Merger. See discussion of the Merger in Item 1. “Business”, in Item 7. “Management’s Discussion and Analysis, and in Note 2. “Acquisitions” in the consolidated financial statements. Historical data is also based in part on, and should be read in conjunction with, prior filings with the SEC. Additional information is provided in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated financial statements and related notes included as Item 7 and Item 8 of this Report, respectively.

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	At or for the year ended September 30,
	2014			2013			2012			2011			2010
	(Dollars in thousands)
Selected financial condition data:
Period end:
Total assets	$	7,337,387		$	4,049,172		$	4,022,982		$	3,137,402		$	3,021,025
Loans, net (1)	4,719,826			2,384,021			2,091,190			1,675,882			1,670,698
Securities available for sale	1,110,813			954,393			1,010,872			739,844			901,012
Securities held to maturity	579,075			253,999			142,376			110,040			33,848
Deposits	5,298,654			2,962,294			3,111,151			2,296,695			2,142,702
Borrowings	939,069			560,986			345,176			323,522			363,751
Stockholders’ equity	961,138			482,866			491,122			431,134			430,955
Average:
Total assets	$	6,757,094		$	3,815,609		$	3,195,299		$	2,949,251		$	2,913,560
Loans, net (1)	4,120,749			2,216,871			1,806,136			1,665,360			1,656,016
Securities available for sale	1,175,618			950,628			801,792			880,624			836,130
Securities held to maturity	517,270			172,642			165,722			28,787			42,903
Deposits	4,921,930			2,856,640			2,366,263			2,082,727			1,978,380
Borrowings	814,409			446,916			356,296			422,816			488,330
Stockholders’ equity	906,134			489,412			447,065			427,290			425,408
Selected income statement data:
Interest and dividend income	$	246,906		$	132,061		$	115,037		$	112,614		$	119,774
Interest expense	28,918			19,894			18,573			21,324			26,440
Net interest income	217,988			112,167			96,464			91,290			93,334
Provision for loan losses	19,100			12,150			10,612			16,584			10,000
Net interest income after provision for loan losses	198,888			100,017			85,852			74,706			83,334
Non-interest income	47,370			27,692			32,152			29,951			27,201
Non-interest expense	208,428			91,041			91,957			90,111			83,170
Income before income tax expense	37,830			36,668			26,047			14,546			27,365
Income tax expense	10,152			11,414			6,159			2,807			6,873
Net income	$	27,678		$	25,254		$	19,888		$	11,739		$	20,492
Per share data:
Basic earnings per share	$	0.34		$	0.58		$	0.52		$	0.31		$	0.54
Diluted earnings per share	0.34			0.58			0.52			0.31			0.54
Dividends declared per share	0.21			0.30			0.24			0.24			0.24
Dividend payout ratio	61.8		%	51.7		%	45.2		%	77.4		%	44.4		%
Book value per share	$	11.49		$	10.89		$	11.12		$	11.39		$	11.26
Common shares outstanding:
Weighted average shares basic	80,268,970			43,734,425			38,227,653			37,452,596			37,161,180
Weighted average shares diluted	80,534,043			43,783,053			38,248,046			37,453,542			38,185,122

_________________________

See legend on the following page.

24

	At or for the year ended September 30,
	2014			2013			2012			2011			2010
	(Dollars in Thousands)
Performance ratios:
Return on assets (ratio of net income to average total assets)	0.41		%	0.63		%	0.62		%	0.40		%	0.70		%
Return on equity (ratio of net income to average equity)	3.1			5.2			4.5			2.8			4.8
Net interest margin (2)	3.74			3.37			3.51			3.65			3.78
Core operating efficiency ratio(3)	59.4			63.7			69.7			72.1			69.1
Capital ratios (Company):(4)
Equity to total assets at end of period	13.10		%	11.90		%	12.21		%	13.74		%	14.27		%
Average equity to average assets	13.41			12.82			13.99			14.49			14.60
Tier 1 leverage ratio	8.12			—			—			—			—
Tier 1 risk-based capital ratio	10.33			—			—			—			—
Total risk-based capital ratio	11.10			—			—			—			—
Regulatory capital ratios (Bank):
Tier 1 leverage ratio	9.34		%	9.33		%	7.56		%	8.14		%	8.43		%
Tier 1 risk-based capital ratio	11.94			13.18			12.16			11.85			12.09
Total risk-based capital ratio	12.71			14.24			13.36			13.03			13.34
Asset quality data and ratios:
Allowance for loan losses	$	40,612		$	28,877		$	28,282		$	27,917		$	30,843
Non-performing loans	50,963			26,906			39,814			40,567			26,840
Non-performing assets	58,543			32,928			46,217			45,958			30,731
Net charge-offs	7,365			11,555			10,247			19,510			9,207
Non-performing assets to total assets	0.80		%	0.81		%	1.15		%	1.46		%	1.02		%
Non-performing loans to total loans (1)	1.07			1.12			1.88			2.38			1.58
Allowance for loan losses to non-performing loans	80			107			71			69			115
Allowance for loan losses to total loans	0.85			1.20			1.47			1.64			1.81
Net charge-offs to average loans	0.24			0.52			0.56			1.17			0.56

_________________________

(1) Excludes loans held for sale.

(2) The net interest margin represents net interest income as a percent of average interest-earning assets for the period. Net interest income is commonly presented on a tax-equivalent basis. This is to the extent that some component of the institution’s net interest income will be exempt from taxation (e.g., was received as a result of its holdings of state or municipal obligations), an amount equal to the tax benefit derived from that component is added back to the net interest income total. This adjustment is considered helpful in comparing one financial institution’s net interest income (pre-tax) to that of another institution, as each will have a different proportion of tax-exempt items in their portfolios.

(3) The core operating efficiency ratio is a non-GAAP measure and is reconciled on page 27.

(4) Prior to the Merger, the Company was a unitary savings and loan holding company and as a result was not required to maintain or report regulatory capital ratios. The Company became a bank holding company in connection with the Merger and has maintained and reported regulatory capital ratios since December 31, 2013.

25

The following tables show the reconciliation of the core operating efficiency ratio, core net income and core earnings per share which are non-GAAP financial measures:

	For the year ended September 30,
	2014			2013			2012			2011			2010
	(Dollars in Thousands)
Net interest income	$	217,988		$	112,167		$	96,464		$	91,290		$	93,334
Non-interest income	47,370			27,692			32,152			29,951			27,201
Total net revenues	265,358			139,859			128,616			121,241			120,535
Tax equivalent adjustment on securities interest income	5,628			3,060			3,498			4,007			4,186
Net (gain) on sale of securities	(641		)	(7,391		)	(10,452		)	(10,011		)	(8,157		)
Other than temporary loss on securities	—			32			47			278			—
Other (other gains and fair value loss on interest rate caps)	(93		)	77			(12		)	197			1,160
Core total revenues	270,252			135,637			121,697			115,712			117,724
Non-interest expense	208,428			91,041			91,957			90,111			83,170
Merger-related expense	(9,455		)	(2,772		)	(5,925		)	(255		)	—
Charge for asset write-downs, banking systems conversion, retention and severance	(26,590		)	(564		)	—			(3,201		)	—
Gain on sale of financial center and redemption of TRUPs	1,637			—			—			—			—
Amortization of intangible assets	(9,408		)	(1,296		)	(1,245		)	(1,426		)	(1,849		)
Charge on benefit plan settlement	(4,095		)	—			—			(1,772		)	—
Core non-interest expense	$	160,517		$	86,409		$	84,787		$	83,457		$	81,321
Core operating efficiency ratio	59.4		%	63.7		%	69.7		%	72.1		%	69.1		%

	For the year ended September 30,
	2014			2013			2012			2011			2010
	(Dollars in Thousands)
Income before income tax expense	$	37,830		$	36,668		$	26,047		$	14,546		$	27,365
Income tax expense	10,152			11,414			6,159			2,807			6,873
Net income	27,678			25,254			19,888			11,739			20,492
Net (gain) on sale of securities	(641		)	(7,391		)	(10,452		)	(10,011		)	(8,157		)
Gain on sale of financial center and redemption of TRUPs	(1,637		)	—			—			—			—
Merger-related expense	9,455			2,772			5,925			255			—
Charge for asset write-downs, banking systems conversion, retention and severance	26,591			564			—			3,201			—
Charge on benefit plan settlement	4,095			—			—			1,772			—
Amortization of non-compete agreements	5,489			—			—			—			—
Total charges (gains)	43,352			(4,055		)	(4,527		)	(4,783		)	(8,157		)
Income tax (benefit)	(13,188		)	1,245			1,070			923			2,049
Total non-core charges (gains) net of taxes	30,164			(2,778		)	(3,457		)	(3,860		)	(6,108		)
Core net income	$	57,842		$	22,476		$	16,431		$	7,879		$	14,384
Weighted average diluted shares	80,534,043			43,783,053			38,248,046			37,453.542			38,185,122
Diluted EPS as reported	$	0.34		$	0.58		$	0.52		$	0.31		$	0.54
Core diluted EPS (excluding total charges)	0.72			0.51			0.43			0.21			0.38

The Company believes the non-GAAP information shown above provides useful information to investors to assess the Company’s core operating performance.

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ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

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 Sterling Bancorp that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “outlook,” “target,” “estimate,” “forecast,” “project” by future conditional verbs such as “will,” “should,” “would,” “could” or “may,” or by variations of such words or by similar expressions. 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 (both known and unknown) and uncertainties, and other factors 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, risks, uncertainties, and other factors 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:

• our Company’s ability to successfully implement growth, expense reduction and other strategic initiatives and to integrate and fully realize cost savings and other benefits we estimate in connection with acquisitions generally;

• continued implementation of our team based business strategy, including customer acceptance of our products and services and the perceived overall value, pricing and quality of them, compared to our competitors;

• the possibility that the benefits anticipated from the HVB Merger will not be fully realized, the possibility the HVB Merger may not close, and other risks in connection with the proposed transaction and integration of HVB;

• 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;

• adverse publicity, regulatory actions or litigation with respect to us or other well-known companies and the financial services industry in general and a failure to satisfy regulatory standards;

• 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 collectability 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;

• 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;

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

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

Additional factors that may affect our results are discussed in this Report on Form 10-K under “Item 1A, Risk Factors” and elsewhere in this Report 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. You should read such statements carefully.

Critical Accounting Policies

Our accounting and reporting policies are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) 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.

27

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, review their risk components, the carrying value of loans as a part of that evaluation and the allowance is adjusted accordingly. While management uses the best information available to make evaluations, future adjustments to the allowance may be necessary if conditions differ substantially from the information used in making the evaluations. In addition, as an integral part of their examination process, our regulatory agencies periodically review the allowance for loan losses. Such agencies may require us to recognize additions to the allowance based on their judgments of information available to them at the time of their examination.

See Note 1. “Basis of Financial Statement Presentation and Summary of Significant Accounting Policies” to our notes to the consolidated financial statements for a discussion of the risk components. We consistently review the risk components to identify any changes in trends.

Business Combinations. The Company accounts for business combinations under the purchase method of accounting. The application of this method of accounting requires the use of significant estimates and assumptions in the determination of the fair value of assets acquired and liabilities assumed in order to properly allocate purchase price consideration between assets that are amortized, accreted or depreciated from those that are recorded as goodwill. Our estimates of the fair values of assets acquired and liabilities assumed are based upon assumptions that we believe to be reasonable, and whenever necessary, include assistance from independent third-party appraisal and valuation firms.

Goodwill, Trade Names and Other Intangible Assets. The Company accounts for goodwill, trade names and other intangible assets in accordance with GAAP, which, in general, requires that goodwill and trade names not be amortized, but rather that they be tested for impairment at least annually. The Company assesses qualitative factors to determine whether it is more likely than not (i.e., a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount. In evaluating whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company assesses relevant events and circumstances (e.g., macroeconomic conditions, industry and market considerations, overall financial performance and other relevant Company-specific events). If, after assessing the totality of events or circumstances such as those described above, the Company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the first and second steps of the goodwill impairment test are unnecessary. Testing for impairment of goodwill, trade names and other 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 base 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 base 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 find these deposits have a shorter life than was estimated, we will write down the asset by expensing the amount that is impaired.

Deferred 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 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 upon the earlier of (i) when payments are contractually past due 90 days or more, or (ii) 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. Loans the Company acquired in mergers are initially

28

recorded at fair value which involves estimating the amount and timing of principal and interest cash flows initially expected to be collected on the loans and discounting those cash flows at an appropriate market rate of interest. The Company continues to evaluate reasonableness of expectations for the timing and amount of cash to be collected. Subsequent decreases in expected cash flows may result in changes in the amortization or accretion of fair market value adjustments, and in some cases may result in the loan being considered impaired.

General

The following discussion and analysis presents the more significant factors affecting the Company’s financial condition as of September 30, 2014 and 2013 and results of operations for each of the years in the three-year period ended September 30, 2014. The Merger was effective October 31, 2013, which significantly impacts comparisons to earlier periods. The Merger and the acquisition of Gotham Bank of New York were accounted for as purchase transactions, and accordingly, their related results of operations are included from the date of acquisition. The MD&A should be read in conjunction with the consolidated financial statements, notes to consolidated financial statements and other information contained in this report.

On October 31, 2013, we completed the Merger of Legacy Sterling and Legacy Provident. This acquisition was consistent with our strategy of expanding in the greater New York metropolitan region and focusing on commercial banking. We believe the Merger has created a larger, more a more profitable company by combining Legacy Provident’s differentiated team-based distribution channels with Legacy Sterling’s diverse commercial and consumer lending product capabilities. The Merger has allowed us to accelerate loan growth, improve our ability to gather low cost core deposits and generate substantial cost savings and revenue enhancement opportunities.

The Merger has significantly diversified our business. Legacy Sterling was predominately a commercial & industrial lender which has complemented our loan portfolio, which was substantially collateralized by real estate. Further, Legacy Sterling provides us greater non-interest income revenue streams. On a combined basis, we anticipate greater than 20% of our total revenues will consist of non-interest income over time.

Results of Operations

In fiscal 2014, the Company reported net income of $27.7 million, or $0.34 per diluted common share, compared to net income of $25.3 million, or $0.58 per diluted common share, in fiscal 2013 and $19.9 million, or $0.52 per diluted common share in fiscal 2012. In connection with the Merger, the Company issued 39.1 million common shares, which increased weighted average diluted shares outstanding from 43.8 million in fiscal 2013 to 80.5 million in fiscal 2014.

The table below summarizes the Company’s results of operations on a tax-equivalent basis. Tax equivalent adjustments are the result of increasing income from tax-free securities by an amount equal to the taxes that would be paid if the income were fully taxable based on a 35% federal tax rate, thus making tax-exempt yields comparable to taxable asset yields.

Selected income statement data, net interest margin, return on average assets, return on average common equity and dividends per common share for the comparable periods follows:

29

	For the fiscal year ended September 30,
	2014			2013			2012
	(Dollars in Thousands)
Tax equivalent net interest income	$	223,616		$	115,227		$	99,962
Less tax equivalent adjustment	(5,628		)	(3,060		)	(3,498		)
Net interest income	217,988			112,167			96,464
Provision for loan losses	19,100			12,150			10,612
Non-interest income	47,370			27,692			32,152
Non-interest expense	208,428			91,041			91,957
Income before income tax expense	37,830			36,668			26,047
Income tax expense	10,152			11,414			6,159
Net income	$	27,678		$	25,254		$	19,888
Earnings per common share - basic	$	0.34		$	0.58		$	0.52
Earnings per common share - diluted	0.34			0.58			0.52
Dividends per common share	0.21			0.30			0.24
Return on assets	0.41		%	0.63		%	0.62		%
Return on common equity	3.1			5.2			4.5
Average equity to average assets	13.4			12.8			14.0

Net income increased $2.4 million in fiscal 2014 compared to fiscal 2013. Results in fiscal 2014 were positively impacted by the Merger and organic growth generated through our commercial banking teams. This resulted in a $108.4 million increase in tax equivalent net interest income and a $19.7 million increase in non-interest income between the periods. Results in fiscal 2014 were also impacted by merger-related expenses associated with the Merger, and charges for asset write-downs, the settlement of benefit plan obligations, costs associated with our banking systems conversion and other charges, which totaled $45.6 million. Excluding the impact of these items, net income was $57.8 million, and diluted earnings per share were $0.72 in fiscal 2014. Please refer to Item 6. “Selected Financial Data” for a reconciliation of this non-GAAP financial measure.

Details of the changes in the various components of net income are further discussed below.

Net Interest Income is the the difference between interest income on earning assets, such as loans and securities, and interest expense on liabilities, such as deposits and borrowings, which are used to fund those assets. Net interest income is the Company’s largest source of revenue, representing 82.1% of total revenue in fiscal 2014. Net interest margin is the ratio of taxable equivalent net interest income to average earning assets for the period. The level of interest rates and the volume and mix of earning assets and interest bearing liabilities impact net interest income and net interest margin.

The Company is primarily funded by core deposits, with non-interest bearing demand deposits being a significant source of funding. This lower cost funding base has had a positive impact on the Company’s net interest income and net interest margin and is expected to do so in a rising interest rate environment.

30

The following table sets forth average balance sheets, average yields and costs, and certain other information for the years indicated. All average balances are daily average balances. Non-accrual loans were included in the computation of average balances, but have been reflected in the table as loans carrying a zero yield. The yields set forth below include the effect of deferred fees, discounts and premiums that are amortized or accreted to interest income or expense.

	For the year ended September 30,
	2014							2013							2012
	Average balance		Interest			Yield/Rate		Average balance		Interest			Yield/Rate		Average balance		Interest			Yield/Rate
	(Dollars in thousands)
Interest earning assets:
Loans (1)	$	4,120,749	$	202,982		4.93	%	$	2,216,871	$	107,810		4.86	%	$	1,806,136	$	91,010		5.04	%
Securities taxable	1,371,703		30,067			2.19	%	948,884		17,509			1.85	%	778,994		16,537			2.12	%
Securities tax exempt	321,185		16,081			5.01	%	174,386		8,742			5.01	%	188,520		9,996			5.30	%
Interest earning deposits	109,626		292			0.27	%	59,375		193			0.33	%	51,351		127			0.25	%
FRB and FHLB Stock	56,104		3,112			5.55	%	23,905		867			3.63	%	18,901		865			4.58	%
Total interest earnings assets	5,979,367		252,534			4.22	%	3,423,421		135,121			3.95	%	2,843,902		118,535			4.17	%
Non-interest earning assets	777,727							392,188							351,397
Total assets	$	6,757,094						$	3,815,609						$	3,195,299
Interest bearing liabilities:
Demand deposits	$	706,160	$	571		0.08	%	$	466,110	$	391		0.08	%	$	399,819	$	483		0.12	%
Savings deposits (2)	622,414		876			0.14	%	572,246		973			0.17	%	485,624		393			0.08	%
Money market deposits	1,458,852		5,096			0.35	%	819,442		2,436			0.30	%	671,325		2,194			0.33	%
Certificates of deposit	554,396		2,421			0.44	%	352,469		2,123			0.60	%	289,230		2,511			0.87	%
Senior notes(3)	98,202		4,401			5.98	%	24,478		1,431			5.85	%	19,136		753			3.93	%
Other borrowings	716,207		15,553			2.17	%	422,438		12,540			2.97	%	337,160		12,239			3.65	%
Total interest bearing liabilities	4,156,231		28,918			0.70	%	2,657,183		19,894			0.75	%	2,202,294		18,573			0.84	%
Non-interest bearing deposits	1,580,108							646,373							520,265
Other non-interest bearing liabilities	114,621							22,641							25,675
Total liabilities	5,850,960							3,326,197							2,748,234
Stockholders’ equity	906,134							489,412							447,065
Total liabilities and Stockholders’ equity	$	6,757,094						$	3,815,609						$	3,195,299
Net interest rate spread (4)						3.52	%						3.20	%						3.33	%
Net interest earning assets (5)	$	1,823,136						$	766,238						$	641,608
Net interest margin			223,616			3.74	%			115,227			3.37	%			99,962			3.51	%
Less tax equivalent adjustment			(5,628		)					(3,060		)					(3,498		)
Net interest income			$	217,988						$	112,167						$	96,464
Ratio of interest earning assets to interest bearing liabilities			143.9		%					128.8		%					129.1		%

(1) Includes the effect of net deferred loan origination fees and costs, allowance for loan losses, and non-accrual loans. Includes prepayment fees and late charges.

(2) Includes club accounts and interest bearing mortgage escrow balances.

(3) Senior notes for fiscal 2014 and 2013 represent the notes issued July 2, 2013, as described in Note 8. “Borrowings and Senior Notes” in the consolidated financial statements. The balance of senior notes shown in fiscal 2012 represents FDIC insured senior unsecured debt that was repaid in February 2012.

(4) Net interest rate spread represents the difference between the tax equivalent yield on average interest earning assets and the cost of average interest bearing liabilities.

(5) Net interest earning assets represents total interest earning assets less total interest bearing liabilities.

31

The following table presents the dollar amount of changes in interest income (on a fully tax equivalent basis) and interest expense for the major categories of our interest earning assets and interest bearing liabilities. Information is provided for each category of interest earning assets and interest bearing liabilities with respect to (i) changes attributable to changes in volume (i.e., changes in average balances multiplied by the prior period average rate) and (ii) changes attributable to rate (i.e., changes in average rate multiplied by prior period average balances). For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated proportionately to the change due to volume and the change due to rate.

	2014 vs. 2013								2013 vs. 2012
	Increase (Decrease) due to					Total increase			Increase (Decrease) due to						Total increase
	Volume		Rate			(decrease)			Volume			Rate			(decrease)
	(Dollars in thousands)
Interest earning assets:
Loans	$	95,915	$	(743	)	$	95,172		$	20,489		$	(3,689	)	$	16,800
Securities taxable	8,891		3,667			12,558			3,269			(2,297		)	972
Securities tax exempt	7,339		—			7,339			(725		)	(529		)	(1,254		)
Interest earning deposits	141		(42		)	99			22			44			66
FRB and FHLB Stock	1,612		633			2,245			180			(178		)	2
Total interest earning assets	113,898		3,515			117,413			23,235			(6,649		)	16,586
Interest bearing liabilities:
NOW deposits	180		—			180			76			(168		)	(92		)
Savings deposits	82		(179		)	(97		)	79			501			580
Money market deposits	2,192		468			2,660			456			(214		)	242
Certificates of deposit	973		(675		)	298			485			(873		)	(388		)
Senior notes	3,378		(408		)	2,970			247			431			678
Other borrowings	6,508		(3,495		)	3,013			2,764			(2,463		)	301
Total interest bearing liabilities	13,313		(4,289		)	9,024			4,107			(2,786		)	1,321
Less tax equivalent adjustment	2,568		—			2,568			(245		)	(193		)	(438		)
Change in net interest income	$	98,017	$	7,804		$	105,821		$	19,373		$	(3,670	)	$	15,703

Tax equivalent net interest income in fiscal 2014 increased $108.4 million, or 94.1%, compared to fiscal 2013. The increase was the result of an increase in average balances in interest earning assets due to the Merger and organic growth generated by our commercial banking teams. The average volume of interest earning assets increased $2.6 billion, or 74.7% in fiscal 2014 relative to the prior year. In addition, net interest margin increased 37 basis points to 3.74% in fiscal 2014 from 3.37% in fiscal 2013. The increase in net interest margin was mainly due to an increase in the yield on interest earning assets which was 4.22% in fiscal 2014 compared to 3.95% in fiscal 2013. The increase was principally the result of higher yielding loans acquired in the Merger and a rebalancing of earning assets from investment securities to higher yielding loans. For the fiscal year ended September 30, 2014, our securities to earning assets ratio was 28.3% versus 32.8% at September 30, 2013.

Tax equivalent net interest income increased $15.3 million in fiscal 2013 compared to the prior year. The increase was due to an increase in average loan balances of $410.7 million to $2.2 billion, which increased interest income by $20.5 million. This was partially offset by an 18 basis points decline in the yield on loans to 4.86% in fiscal 2013 as compared to 5.04% in fiscal 2012 which reduced interest income on loans by $3.7 million. The increase in loan volume was due to organic growth generated by our commercial banking teams and our successful retention of Gotham Bank clients and interest earning assets; the decline in loan yields reflects mainly the repayment of loans originated in prior periods that were replaced with new loan originations at lower rates of interest in the current market environment.

The balance of average loans outstanding increased $1.9 billion, or 85.9% in fiscal 2014. In connection with the Merger, we acquired $1.7 billion of loans on October 31, 2013 and increased average loans outstanding during the year through organic growth. Loans accounted for 68.9% of average interest earning assets in fiscal 2014 compared to 64.8% in fiscal 2013 and 63.5% in fiscal 2012. The average yield on loans was 4.93% in fiscal 2014 compared to 4.86% in fiscal 2013 and 5.04% in fiscal 2012.

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Tax equivalent interest income on securities increased $19.9 million, or 75.8% in fiscal 2014, which was mainly the result of an increase of $569.6 million, or 50.7% in the average balance of securities over the period. In connection with the Merger, we acquired $607.9 million of securities on October 31, 2013. The tax equivalent yield on securities was 2.73% in fiscal 2014 compared to 2.34% in fiscal 2013 and 2.74% in fiscal 2012. The increase in tax equivalent yield in fiscal 2014 was mainly due to the proportion of tax exempt securities which comprised 19.0% of average securities in fiscal 2014 compared to 15.5% in fiscal 2013 and a rebalancing of the securities portfolio due to the Merger, which increased the yield on taxable securities in fiscal 2014 to 2.19% compared to 1.85% in fiscal 2013. The 40 basis point decline in the tax equivalent yield on securities between fiscal 2012 and 2013 was due to overall declines in market rates of interest.

Average deposits increased $2.1 billion, or 72.3% in fiscal 2014 and were $4.9 billion compared to $2.9 billion in fiscal 2013 and $2.4 billion in fiscal 2012. The increase in the average balance of deposits was mainly due to the Merger, as we assumed $2.3 billion in deposits on October 31, 2013. Average interest bearing deposits increased $1.1 billion, or 51.2%, in fiscal 2014 and $364.3 million, or 19.7%, in fiscal 2013 compared to fiscal 2012. Average non-interest bearing deposits increased $933.7 million and were $1.6 billion in fiscal 2014 compared to $646.4 million in fiscal 2013 and $520.3 million in fiscal 2012. The average cost of interest bearing deposits was 0.27% in fiscal 2014 and 2013 and was 0.30% in fiscal 2012. The cost of deposits reflects the current low interest rate environment.

Average borrowings increased $367.5 million, or 82.2% in fiscal 2014 and were $814.4 million compared to $446.9 million in fiscal 2013 and $356.3 million in fiscal 2012. The increase in average borrowings in fiscal 2014 was required to fund loan growth and included the $100.0 million of senior notes issued in connection with the Merger. Average borrowings also included $25.7 million of subordinated debentures which were redeemed in June 2014. The average cost of borrowings was 2.45% for fiscal 2014 compared to 3.13% in fiscal 2013 and 3.65% in fiscal 2012. The decline in the average cost of borrowings between the periods was mainly due to an increase in short-term FHLB borrowings as a percentage of total average borrowings.

Provision for Loan Losses. The provision for loan losses is determined by the Company as the amount to be added to the allowance for loan losses after net charge-offs have been deducted to bring the allowance to a level that is the Company’s best estimate of probable incurred credit losses inherent in the outstanding loan portfolio. The provision for loan losses totaled $19.1 million in fiscal 2014 compared to $12.2 million in fiscal 2013 and $10.6 million in fiscal 2012. See the section captioned “Loans - Provision for Loan Losses” elsewhere in this discussion for further analysis of the provision for loan losses.

Non-interest income. The components of non-interest income were as follows:

	For the year ended September 30,
	2014		2013		2012
	(Dollars in Thousands)
Accounts receivable management / factoring commissions and other related fees	$	13,146	$	—	$	—
Mortgage banking income	8,086		1,979		1,897
Deposit fees and service charges	15,595		10,964		11,377
Net gain on sale of securities	641		7,391		10,452
Bank owned life insurance	3,080		1,998		2,050
Investment management fees	2,209		2,413		3,143
Other	4,613		2,947		3,233
Total non-interest income	$	47,370	$	27,692	$	32,152

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Non-interest income was $47.4 million in fiscal 2014, compared to $27.7 million in fiscal 2013 and $32.2 million in fiscal 2012. Included in non-interest income is net gain on sale of securities which was $641 thousand in fiscal 2014, compared to $7.4 million in fiscal 2013 and $10.5 million in fiscal 2012. Net gain on sale of securities is impacted significantly by changes in market interest rates and strategies we use to manage liquidity and interest rate risk. Excluding net gain on sale of securities, non-interest income was $46.7 million in fiscal 2014 compared to $20.3 million in fiscal 2013 and $21.7 million in fiscal 2012. The main driver of growth between fiscal 2013 and fiscal 2014 were fees generated in accounts receivable management and mortgage banking income as a result of the Merger. Our goal is to grow non-interest income excluding securities gains to over 20% of net interest income plus non-interest income excluding securities gains. This ratio was 17.7% in fiscal 2014 compared to 15.3% in fiscal 2013 and 18.4% in fiscal 2012.

Accounts receivable management / factoring commissions and other related fees represents fees generated in our factoring and payroll finance businesses. In factoring, we receive a nonrefundable factoring fee, which is generally a percentage of the factored receivables or sales volume and is designed to compensate us for the bookkeeping and collection services provided and, if applicable, the credit review of the client’s customer and assumption of customer credit risk. In payroll finance, we provide outsourcing support services for clients in the temporary staffing industry. We generate fee income in exchange for providing full back-office, payroll, tax and accounting services to independently-owned temporary staffing companies. Accounts receivable management / factoring commissions and other related fees totaled $13.1 million in fiscal 2014.

Mortgage banking income represents mortgage banking and brokerage business conducted through loan production offices located principally in New York City and through our financial centers. The Merger substantially increased our mortgage banking volume; mortgage banking revenue was $8.1 million in fiscal 2014 compared to $2.0 million in fiscal 2013 and $1.9 million in fiscal 2012.

Deposit fees and service charges increased by $5.6 million to $15.6 million in fiscal 2014, as the average balance of deposits increased by $2.1 billion over average balances in fiscal 2013. The decline in deposit fees and service charges of $413 thousand in fiscal 2013 compared to fiscal 2012 was mainly caused by a change in the composition of our deposits, as deposits gathered by our commercial banking teams are generally higher balance deposits but typically generate lower levels of fees and service charges than retail deposits.

Bank owned life insurance(“BOLI”) income represents the change in the cash surrender value of life insurance policies owned by the Bank. BOLI income increased by $1.1 million and was $3.1 million in fiscal 2014, as we acquired Legacy Sterling’s BOLI balances in connection with the Merger. The decrease in BOLI income between fiscal 2013 and fiscal 2012 was due to a decline in the interest crediting rate we receive from the insurance carriers given the current low interest rate environment.

Investment management fees principally represent fees from the sale of mutual funds and annuities and were $2.2 million in fiscal 2014 compared to $2.4 million in fiscal 2013 and $3.1 million in fiscal 2012. In fiscal 2012, we sold the assets of our former subsidiary that was active in the investment management business. We commenced a new wealth management initiative in fiscal 2013 focused on partnering with a third-party vendor to deliver wealth management products through our financial centers and commercial banking teams.

Other non-interest income principally includes loan servicing revenues, miscellaneous loan fees earned, letter of credit fees, and safe deposit box rentals. Other non-interest income increased by $1.7 million to $4.6 million in fiscal 2014 as a result of the Merger.

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Non-interest expense. The components of non-interest expense were as follows:

	For the fiscal year ended September 30,
	2014			2013		2012
	(Dollars in Thousands)
Compensation and employee benefits	$	94,310		$	47,833	$	46,038
Stock-based compensation plans	3,703			2,239		1,187
Occupancy and office operations	27,726			14,953		14,457
Amortization of intangible assets	9,408			1,296		1,245
FDIC insurance and regulatory assessments	6,146			3,010		3,096
Other real estate owned expense	(237		)	1,562		1,618
Merger-related expense	9,455			2,772		5,925
Other	57,917			17,376		18,391
Total non-interest expense	$	208,428		$	91,041	$	91,957

Non-interest expense in fiscal 2014 increased $117.4 million to $208.4 million compared to $91.0 million fiscal 2013 and $92.0 million in fiscal 2012. The changes in the various components of non-interest expense between fiscal 2014 and fiscal 2013 were mainly the result of the Merger, which significantly increased the Company’s personnel, facilities and operating expense base. The decline in non-interest expense between fiscal 2012 and fiscal 2013 is mainly due to lower merger-related expenses. Merger-related expenses in fiscal 2012 of $5.9 million included expenses related to due diligence, restructuring costs and other charges in connection with the acquisition of Gotham Bank in August 2012.

Compensation and employee benefits in fiscal 2014 increased $46.5 million, or 97.2% to $94.3 million compared to $47.8 million in the prior year. At September 30, 2014, we had 21 commercial banking teams, as compared to September 30, 2013 and 2012 when we had 16 commercial banking teams. Our full-time equivalent employees were 836 at September 30, 2014 compared to 477 at September 30, 2013 and 493 at September 30, 2012. The increase in personnel in fiscal 2014 was due to the Merger. The decline in personnel between fiscal 2012 and fiscal 2013 was the result of operational efficiencies generated by the acquisition of Gotham Bank and the consolidation of several financial centers.

Included in compensation and employee benefits expense are expenses associated with the Company’s defined benefit pension plan and ESOP plan. During fiscal 2014, we merged the Legacy Provident defined benefit pension plan and the Legacy Sterling defined benefit pension plan and settled $44.8 million of the merged plan benefit obligations through the purchase of annuities for certain retirees. We also terminated the Company’s ESOP plan in fiscal 2014. Compensation and employee benefits expense in fiscal 2014 included a charge of $3.9 million on the purchase of the annuities referenced above.

Stock-based compensation plans were $3.7 million in fiscal 2014 compared to $2.2 million in fiscal 2013 and $1.2 million in fiscal 2012. The increase in fiscal 2014 was mainly due to an increase in personnel due to the Merger. The increase between fiscal 2012 and fiscal 2013 was mainly due to a shift in our compensation plans which increased the proportion of stock-based compensation to total compensation for key personnel and the number of key personnel receiving stock-based compensation.

For additional information related to the Company’s employee benefit plans and stock-based compensation, see Note 11. “Employee Benefit Plans and Stock-Based Compensation Plans” in the consolidated financial statements included elsewhere in this Report.

Occupancy and office operations increased $12.8 million to $27.7 million in fiscal 2014 compared to $15.0 million in fiscal 2013 and $14.5 million in fiscal 2012. The increase between fiscal 2013 and fiscal 2014 was due to an increase in financial centers and other locations acquired in the Merger. As discussed below, we moved certain financial center locations to other real estate owned and are actively marketing these properties and other leased locations with the objective of reducing our occupancy and office operations expense over time.

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Amortization of intangible assets mainly includes amortization of core deposit intangible assets and non-compete agreements. Amortization of intangible assets increased $8.1 million to $9.4 million in fiscal 2014 compared to $1.3 million in fiscal 2013 and $1.2 million in fiscal 2012. The increase in fiscal 2014 was a result of core deposit intangibles and non-compete agreement intangibles recorded in connection with the Merger. Amortization of intangible assets is expected to be $6.1 million in fiscal 2015. See Note 6. “Goodwill and Other Intangible Assets” in the consolidated financial statements included elsewhere in this Report.

FDIC insurance and regulatory assessments expense increased $3.1 million and was $6.1 million in fiscal 2014 compared to $3.0 million in fiscal 2013 and $3.1 million in fiscal 2012. The increase in deposit insurance and regulatory fees in fiscal 2014 was due to the Merger as these assessments are mainly based on the average balance of total assets on a quarterly basis. The decline during fiscal 2013 relative to fiscal 2012 was mainly due to a change in the deposit insurance assessment base.

Other real estate owned expense (“OREO”) includes maintenance costs, taxes, insurance, write-downs (subsequent to any write-down at the time of foreclosure or transfer to OREO), and gains and losses from the disposition of OREO. OREO includes real estate assets foreclosed and financial center locations that are held for sale. OREO expense declined $1.8 million in fiscal 2014 compared to fiscal 2013 and declined $56 thousand in fiscal 2013 compared to fiscal 2012. The net benefit of $237 thousand in fiscal 2014 was due to a $925 thousand gain on the sale of a financial center location that was acquired in the Merger.

Merger-related expense was $9.5 million in fiscal 2014, $2.8 million in fiscal 2013 and $5.9 million in fiscal 2012. Merger-related expense in fiscal 2013 included due diligence costs and financial advisor fees only, which were incurred due to the Merger. Merger-related expense in fiscal 2014 and fiscal 2012 included due diligence, restructuring costs and other charges incurred in connection with the Merger and the acquisition of Gotham Bank, respectively.

Other non-interest expense for fiscal 2014 increased $40.5 million to $57.9 million compared to $17.4 million in fiscal 2013 and $18.4 million in fiscal 2012. Included in other non-interest expense for fiscal 2014 were charges of $26.6 million that included asset write-downs to consolidate our financial center and other locations, retention and severance payments and charges incurred on the conversion of our banking systems. Excluding these charges, other non-interest expense was $31.3 million in fiscal 2014 compared to $17.4 million in fiscal 2013 and $18.4 million in fiscal 2012. Other non-interest expense mainly includes professional fees, data processing, insurance, communications, advertising, supplies, loan processing and postage. The increase in fiscal 2014 compared to fiscal 2013 was principally due to the Merger.

Income Tax expense was $10.2 million for fiscal 2014, compared to $11.4 million for fiscal 2013, and $6.2 million for fiscal 2012. This represented an effective tax rate of 26.8%, 31.1%, and 23.6%, respectively. The effective income tax rates differed from the 35% federal statutory rate during the periods primarily due to the effect of tax exempt income from securities and BOLI income. The effective tax rate in fiscal 2014 was the result of a higher proportion of income being tax exempt given the Merger-related expenses and other charges detailed above. The higher effective tax rate recognized in fiscal 2013 was mainly the result of Merger-related expenses incurred that were fully non-tax deductible and a higher proportion of taxable vs. non-taxable income versus fiscal 2012.

Sources and Uses of Funds

The following table illustrates the mix of the Company’s funding sources and the assets in which those funds are invested as a percentage of the Company’s total assets for the period indicated. Average assets totaled $6.8 billion in fiscal 2014 compared to $3.8 billion in fiscal 2013 and $3.2 billion in fiscal 2012.

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	For the fiscal year ended September 30,
	2014		2013		2012
Sources of Funds:
Non-interest bearing deposits	23.4	%	17.0	%	16.3	%
Interest bearing deposits	49.5		57.9		57.8
FHLB and other borrowings	10.4		11.1		10.5
Subordinated debentures	0.2		—		—
Senior notes	1.4		0.6		0.6
Other non-interest bearing liabilities	1.7		0.6		0.8
Stockholders’ equity	13.4		12.8		14.0
Total	100.0	%	100.0	%	100.0	%
Uses of Funds:
Loans	61.0	%	58.1	%	56.5	%
Securities	25.1		29.4		30.3
Interest bearing deposits	1.6		1.6		1.6
FHLBNY and FRB stock	0.8		0.6		0.6
Other non-interest earning assets	11.5		10.3		11.0
Total	100.0	%	100.0	%	100.0	%

General. Deposits, borrowings, repayments and prepayments of loans and securities, proceeds from sales of loans and securities, proceeds from maturing securities and cash flows from operations are our primary sources of funds for use in lending, investing and for other general corporate purposes. Average deposits increased $2.1 billion, or 72.3%, in fiscal 2014 compared to fiscal 2013 and increased $490.3 million, or 20.7% in fiscal 2013 compared to fiscal 2012. Non-interest bearing deposits and low cost deposits are a significant source of our funding, and generating and maintaining these deposits through our commercial banking teams and financial centers is key to our strategy. Average non-interest bearing deposits were 32.1% of total average deposits in fiscal 2014 compared to 22.6% in fiscal 2013 and 22.0% in fiscal 2012.

The Company primarily invests funds in loans and securities. Average loans increased $1.9 billion, or 85.9% compared to fiscal 2013 and increased $410.7 million, or 22.7% in fiscal 2013 compared to fiscal 2012. Average securities increased $569.6 million or 50.7% in fiscal 2014 compared to fiscal 2013 and increased $155.8 million or 16.1% in fiscal 2013 compared to fiscal 2012.

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Loans

The following table sets forth the composition of our loan portfolio, excluding loans held for sale, by type of loan at the periods indicated.

	September 30,
	2014					2013					2012					2011					2010
	Amount			%		Amount			%		Amount			%		Amount			%		Amount			%
	(Dollars in thousands)
Commercial:
Commercial & industrial	$	1,164,537		24.5	%	$	434,932		18.0	%	$	343,307		16.2	%	$	209,923		12.3	%	$	217,927		12.8	%
Payroll finance	145,474			3.1		—			—		—			—		—			—		—			—
Warehouse lending	192,003			4.0		4,855			0.2		—			—		—			—		—			—
Factored receivables	181,433			3.8		—			—		—			—		—			—		—			—
Equipment finance	393,027			8.3		—			—		—			—		—			—		—			—
Total commercial	2,076,474			43.7		439,787			18.2		343,307			16.2		209,923			12.3		217,927			12.8
Commercial mortgage:
Commercial real estate	1,449,052			30.4		969,490			40.2		896,746			42.3		592,201			34.8		535,227			31.5
Multi-family	368,524			7.7		307,547			12.7		175,758			8.3		111,155			6.6		44,005			2.5
Acquisition, development & construction	92,149			1.9		102,494			4.2		144,061			6.8		175,931			10.3		231,258			13.6
Total commercial mortgage	1,909,725			40.0		1,379,531			57.1		1,216,565			57.4		879,287			51.7		810,490			47.6
Residential mortgage	570,431			12.0		400,009			16.6		350,022			16.5		389,765			22.9		434,900			25.5
Consumer	203,808			4.3		193,571			8.1		209,578			9.9		224,824			13.1		238,224			14.1
Total loans	4,760,438			100.0	%	2,412,898			100.0	%	2,119,472			100.0	%	1,703,799			100.0	%	1,701,541			100.0	%
Allowance for loan losses	(40,612		)			(28,877		)			(28,282		)			(27,917		)			(30,843		)
Total loans, net	$	4,719,826				$	2,384,021				$	2,091,190				$	1,675,882				$	1,670,698

Overview. Total loans increased $2.3 billion to $4.7 billion at September 30, 2014 compared to $2.4 billion at September 30, 2013. Prior to fiscal 2014, the Bank’s loan portfolio was concentrated in real estate loans, mainly commercial mortgages, residential mortgages and other consumer loans collateralized by real estate. In connection with the Merger, the Bank became a national bank and more evenly balanced its loan portfolio between commercial loans and real estate loans. At September 30, 2014, commercial loans comprised 43.7% of the loan portfolio compared to 18.2% at September 30, 2013 and commercial mortgage loans comprised 40.0% of the loan portfolio, compared to 57.1% a year ago.

General. Our commercial banking teams focus on the origination of commercial loans and commercial mortgage loans. We also originate residential mortgage loans and consumer loans such as home equity lines of credit, homeowner loans and personal loans in our market area. We sell many of the residential mortgage loans we originate and we enter into loan participations in some commercial loans for portfolio management purposes.

Loan Approval/Authority and Underwriting. The Board has established the Credit Risk Committee (the “CRC”) a sub-committee of the Company’s Enterprise Risk Committee, to oversee the lending functions of the Bank. The CRC oversees the performance of the Bank’s loan portfolio and its various components, assists in the development of strategic initiatives to enhance portfolio performance, and considers loans for approval and recommendation to the Board.

The Senior Credit Committee (the “SCC”) consists of the Chief Executive Officer, Chief Banking Officer, Chief Credit Officer, and other senior lending personnel. The SCC is authorized to approve all loans within the legal lending limit of the Bank.

The SCC may also authorize lending authority to individual Bank officers for both single and dual initial approval authority. Other than overdrafts, the only single initial lending authorities are for credit secured small business loans up to $250,000 and up to $500,000 if secured by residential property.

We have established a risk rating system for our commercial & industrial loans, commercial real estate loans and ADC loans. The risk rating system assesses a variety of factors to rank the risk of default and risk of loss associated with the loan. These ratings are assessed by commercial credit personnel who do not have responsibility for loan originations. We determine our maximum loan-to-one-borrower limits based on the rating of the loan and the relative risk associated with the borrower’s portfolio type.

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In connection with our residential mortgage and commercial real estate loans, we generally require property appraisals to be performed by independent appraisers who are approved by the Board. Appraisals are then reviewed by the appropriate loan underwriting areas. Under certain conditions, appraisals may not be required for loans under $250,000 or in other limited circumstances. We also require title insurance, hazard insurance and, if indicated, flood insurance on property securing mortgage loans. Title insurance is not required for consumer loans under $100,000, such as home equity lines of credit and homeowner loans and in connection with certain residential mortgage refinances.

Commercial & Industrial Lending. We make various types of secured and unsecured commercial & industrial loans to small and medium-sized businesses in our market area including loans collateralized by assets, such as accounts receivable, inventory, marketable securities, other liquid collateral, equipment and other assets. The terms of these loans generally range from less than one year to seven years. The loans are either structured on a fixed-rate basis or carry adjustable interest rates indexed to a lending rate that is determined internally, or a short-term market rate index. At September 30, 2014, commercial loans totaled $2.1 billion, or 43.7% of our total loan portfolio.

In the Merger, we acquired the following commercial lending businesses:

Payroll Finance Lending. The Bank provides financing and human resource business process outsourcing support services to the temporary staffing industry. The Bank provides full back-office, computer and tax accounting services, and financing to independently-owned staffing companies located throughout the United States. Loans typically are structured as an advance used by our clients to fund their payroll and are outstanding on average for 40 to 45 days.

Warehouse Lending. The Bank provides residential mortgage warehouse funding services to mortgage bankers. These loans consist of a line of credit used by the mortgage banker as a form of temporary financing during the period between the closing of a mortgage loan until its sale into the secondary market, which typically lasts from 15 to 30 days. The Bank provides warehouse lines ranging from $5 million to $35 million. The warehouse lines are collateralized by high quality first mortgage loans, which include mainly conventional Fannie Mae and Freddie Mac, jumbo and FHA loans.

Factored Receivables Lending. We provide accounts receivable management services. The purchase of a client’s accounts receivable is traditionally known as “factoring” and results in payment by the client of a nonrefundable factoring fee, which is generally a percentage of the factored receivables or sales volume and is designed to compensate the Bank for the bookkeeping and collection services provided and, if applicable, its credit review of the client’s customer and assumption of customer credit risk. When the Bank “factors” (i.e., purchases) an account receivable from a client, it records the receivable as an asset (included in “Gross loans” ), records a liability for the funds due to the client (included in “Other liabilities”) and credits to non-interest income the nonrefundable factoring fee (included in “Accounts receivable management/factoring commissions and other fees”). The Bank also may advance funds to its client prior to the collection of receivables, charging interest on such advances (in addition to any factoring fees) and normally satisfying such advances by the collection of receivables. The accounts receivable factoring is primarily for clients engaged in the apparel and textile industries.

Equipment Finance Lending. The Bank offers equipment financing across the United States through direct lending programs, third-party sources and vendor programs. The Bank finances full payout leases and secured loans for various types of business equipment, generally written on a recourse basis—with personal guarantees of the principals, with terms generally ranging from 24 to 60 months.

The above four categories of loans acquired in the Merger, plus our commercial & industrial loans are referred to as commercial loans in the discussion below.

Underwriting of a commercial loan is based on an assessment of the applicant’s willingness and ability to repay in accordance with the proposed terms, as well as an overall assessment of the risks involved. This includes an evaluation of the applicant to determine character and capacity to manage. Personal guarantees of the principals are generally required, except in the case of certain factored receivables the Bank accepts on a non-recourse basis from publicly owned and not-for-profit corporations. In addition to an evaluation of the loan applicant’s financial statements, we analyze the adequacy of the primary and secondary sources of repayment to be relied upon in the transaction. Credit agency reports of the applicant’s credit history supplement the analysis of the applicant’s creditworthiness. Checking with other banks and trade investigations may also be conducted. Collateral supporting a secured transaction also is analyzed to determine its marketability.

Commercial Real Estate and Multi-Family Lending. We originate real estate loans secured predominantly by first liens on commercial real estate and multi-family properties. The underlying collateral of our commercial real estate loans consists of multi-family properties, retail properties including shopping centers and strip centers, office buildings, nursing homes, industrial and warehouse properties, hotels, motels, restaurants, and schools. To a lesser extent, we originate commercial real estate loans for medical use, non-profits, gas stations

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and other categories. We may, from time to time, purchase commercial real estate loan participations. At September 30, 2014, loans secured by commercial real estate and multi-family properties totaled $1.8 billion, or 38.2% of our total loan portfolio. Substantially all of our commercial real estate loans are secured by properties located in our primary market area.

The majority of our commercial real estate loans have a term of ten years and are structured as five-year fixed rate loans with a rate adjustment for the second five-year period or as ten-year fixed-rate loans. Amortization on these loans is typically based on 20 to 25 year terms with balloon maturities generally in five or ten years. Interest rates on commercial real estate loans generally range from 200 basis points to 300 basis points above a reference index.

In the underwriting of commercial real estate loans, we generally lend up to 75% of the appraised value. Decisions to lend are based on the economic viability of the property and the creditworthiness of the borrower. In evaluating a proposed commercial real estate loan, we primarily emphasize the ratio of the projected net cash flow to the debt service requirement (generally targeting a minimum ratio of 120%), computed after deductions for a vacancy factor and property expenses we deem appropriate. In addition, a personal guarantee of the loan or a portion thereof is generally required from the principal(s) of the borrower, except for loans secured by multi-family properties, which meet certain debt service coverage and loan to value thresholds. We require title insurance insuring the priority of our lien, fire and extended coverage casualty insurance, and flood insurance, if appropriate, in order to protect our security interest in the underlying property.

Commercial real estate loans typically involve significant loan balances concentrated with single borrowers or groups of related borrowers. In addition, the payment experience on loans secured by income-producing properties typically depends on the successful operation of the related real estate project and may be subject to adverse conditions in the real estate market and in the general economy. For commercial real estate loans in which the borrower is a significant tenant, repayment experience also depends on the successful operation of the borrower’s underlying business.

Acquisition, Development and Construction Lending. We originate acquisition, development and construction (“ADC”) loans to selected builders in our market area. Since 2011, the Company has deemphasized this lending activity and we currently originate ADC loans on an exception basis.

ADC loans help finance the purchase of land intended for further development, including single-family homes, multi-family housing, and commercial income properties. Historically, we have made an acquisition loan before the borrower received approval to develop the land as planned; however, we did not originate any such loans in fiscal 2014 or 2013. In general, the maximum loan-to-value ratio for a land acquisition loan is 50% of the appraised value of the property, although higher loan-to-value ratios may be allowed for certain borrowers we deem to be lower risk. We also fund development loans to builders in our market area to finance improvements to real estate, consisting mainly of single-family subdivisions, typically to finance the cost of utilities, roads, sewers and other development costs. Builders generally rely on the sale of single-family homes to repay development loans, although in some cases the improved building lots may be sold to another builder. The maximum loan amount is generally limited to the cost of the improvements plus limited approval of soft costs subject to an overall loan-to-value limitation. In general, we do not originate loans with interest reserves. Advances are made in accordance with a schedule reflecting the cost of the improvements.

We also make construction loans to finance the cost of completing homes on the improved property. Advances on construction loans are made in accordance with a schedule reflecting the cost of construction. Repayment of construction loans on residential subdivisions is normally expected from the sale of units to individual purchasers except in cases of owner occupied construction loans. In the case of income-producing property, repayment is usually expected from permanent financing upon completion of construction. We provide permanent mortgage financing on most of our construction loans on income-producing property. Collateral coverage and risk profile are maintained by restricting the number of model or speculative units in each project.

ADC lending exposes us to greater credit risk than permanent mortgage financing. The repayment of ADC loans generally depends on the sale of the property to third parties or the availability of permanent financing upon completion of all improvements. In the event we make an acquisition loan on property that is not yet approved for the planned development, there is the risk that approvals will not be granted or will be delayed. These events may adversely affect the borrower and the collateral value of the property. Development and construction loans also expose us to the risk that improvements will not be completed on time in accordance with specifications and projected costs. In addition, the ultimate sale or rental of the property may not occur as anticipated.

Large Credit Relationships. The Company originates and maintains large credit relationships with numerous commercial customers in the ordinary course of business. The Company considers large credit relationships to be those with commitments equal to or in excess of $10.0 million, prior to any portion being sold. Large relationships also include loan participations purchased if the credit relationship

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with the agent is equal to or in excess of $10.0 million. In addition to the Company’s normal policies and procedures related to the origination of large credits, the Senior Credit Committee of the Bank must approve all new and renewed credit facilities which are part of large credit relationships. The Senior Credit Committee meets regularly and reviews large credit relationship activity and discusses the current loan pipeline, among other things. The following table provides additional information on the Company’s large credit relationships outstanding at September 30:

	2014					2013
	Number of Relationships	Period end balances				Number of Relationships	Period end balances
		Committed		Outstanding			Committed		Outstanding
	(Dollars in Thousands)
Committed amount:
$20.0 million and greater	45	$	1,256,487	$	681,187	4	$	92,630	$	87,261
$10.0 million to $19.9 million	78	1,055,628		835,360		48	613,865		543,933

The average commitment per large credit relationship in excess of $20.0 million totaled $27.9 million at September 30, 2014 and $23.2 million at September 30, 2013. The average outstanding balance per large credit relationship with a commitment in excess of $20.0 million totaled $15.1 million at September 30, 2014 and $21.8 million at September 30, 2013. The average commitment per large credit relationship between $10.0 million and $19.9 million totaled $13.5 million at September 30, 2014 and $12.8 million at September 30, 2013. The average outstanding balance per large credit relationship with a commitment between $10 million and $19.9 million totaled $10.7 million at September 30, 2014 and $11.3 million at September 30, 2013.

Industry concentrations. As of September 30, 2014 and 2013, there were no concentrations of loans within any single industry in excess of 10% of company total loans, as segregated by Standard Industrial Classification code (“SIC code”). The SIC code is a federally designed standard industrial numbering system used by the Company to categorize loans by the borrower’s type of business. The majority of the Bank’s loans are to borrowers located in the greater New York metropolitan region. The Bank has no foreign loans.

Residential Mortgage Lending. We offer conforming and non-conforming, fixed-rate and adjustable-rate (“ARM”) residential mortgage loans with maturities up to 30 years and maximum loan amounts generally up to $4.0 million that are fully amortizing with monthly or bi-weekly loan payments. Our residential mortgage loan portfolio totaled $570.4 million, or 12.0% of our total loan portfolio at September 30, 2014.

Residential mortgage loans are generally underwritten according to Fannie Mae and Freddie Mac guidelines for loans they designate as acceptable for purchase. Loans that conform to such guidelines are referred to as “conforming loans.” We generally originate fixed-rate loans in amounts up to the maximum conforming loan limits as established by Fannie Mae and Freddie Mac, which are currently $417 thousand in many locations in the continental U.S. and are $625.5 thousand in high-cost areas such as New York City and surrounding counties. Private mortgage insurance is generally required for loans with loan-to-value ratios in excess of 80%. The Bank operates a residential mortgage banking and brokerage business through offices located in the greater New York Metropolitan area, Virginia, and other mid-Atlantic states. In order to manage our exposure to rising interest rates, we sell the majority of our conforming fixed rate residential mortgage loans, in the secondary market to nationally known entities including government sponsored entities such as Fannie Mae and Freddie Mac.

We also originate loans above conforming limits, referred to as “jumbo loans,” which have been underwritten to substantially the same credit standards as conforming loans. These loans are generally intended to be held in our residential mortgage loan portfolio. Our bi-weekly residential mortgage loans result in shorter repayment schedules than conventional monthly mortgage loans, and are repaid through an automatic deduction from the borrower’s savings or checking account. We retained the servicing rights on a portion of loans sold; however, in fiscal 2014 the majority of loans sold were sold with servicing rights released. As of September 30, 2014, residential mortgage loans serviced for others, excluding loan participations, totaled approximately $234.4 million. Effective October 1, 2013, we transferred the servicing function for residential mortgage loans we own and service for others to a nationally recognized mortgage loan servicer.

We currently offer several ARM loan products secured by residential properties with rates that are fixed for a period ranging from six months to ten years. After the initial term, if the loan is not already refinanced, the interest rate on these loans generally resets every year based upon a contractual spread or margin above the average yield on U.S. Treasury securities, adjusted to a constant maturity of one year, as published weekly by the Federal Reserve Board and subject to certain periodic and lifetime limitations on interest rate changes. Many of the borrowers who select these loans have shorter-term credit needs than those who select long-term, fixed-rate loans. ARM

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loans generally pose different credit risks than fixed-rate loans primarily because the underlying debt service payments of the borrowers rise as interest rates rise, thereby increasing the potential for default.

We require title insurance on all of our residential mortgage loans, and we also require that borrowers maintain fire and extended coverage or all risk casualty insurance (and, if appropriate, flood insurance) in an amount at least equal to the lesser of the loan balance or the replacement cost of the improvements, but in any event in an amount calculated to avoid the effect of any coinsurance clause. Residential mortgage loans generally are required to have a mortgage escrow account from which disbursements are made for real estate taxes and for hazard and flood insurance.

Consumer Lending. We originate a variety of consumer loans, including homeowner loans, home equity lines of credit, new and used automobile loans, and personal unsecured loans, including fixed-rate installment loans and variable lines of credit. As of September 30, 2014, consumer loans totaled $203.8 million, or 4.3%, of the total loan portfolio.

We offer fixed-rate, fixed-term second mortgage loans, referred to as homeowner loans, and we also offer adjustable-rate home equity lines of credit secured by junior liens on residential properties. As of September 30, 2014, homeowner loans totaled $23.9 million or 0.5% of our total loan portfolio. The disbursed portion of home equity lines of credit totaled $59.9 million, or 3.4%, of our total loan portfolio at September 30, 2014, with $99.0 million remaining undisbursed.

Loan Portfolio Maturities and Yields. The following table summarizes the scheduled repayments of our loan portfolio at September 30, 2014. Demand loans, loans having no stated repayment schedule or maturity, and overdraft loans are reported as being due in one year or less. Weighted average rates are computed based on the rate of the loan at September 30, 2014.

	Less than one year				One to five years				Over five years				Total
	Amount		Rate		Amount		Rate		Amount		Rate		Amount		Rate
	(Dollars in thousands)
Commercial:
Commercial & industrial	$	696,389	4.13	%	$	362,907	3.90	%	$	105,241	4.12	%	$	1,164,537	4.06	%
Payroll finance	145,474		9.00		—		—		—		—		145,474		9.00
Warehouse lending	192,003		3.34		—		—		—		—		192,003		3.34
Factored receivables	181,433		5.00		—		—		—		—		181,433		5.00
Equipment financing	21,296		4.26		338,369		4.38		33,362		4.30		393,027		4.37
Total commercial	1,236,595		4.71		701,276		4.13		138,603		4.16		2,076,474		4.48
Commercial mortgage:
Commercial real estate	114,678		4.83		654,341		4.37		680,033		4.47		1,449,052		4.45
Multi-family	14,153		5.14		174,188		3.88		180,183		4.04		368,524		4.01
Acquisition, development & construction	44,259		4.36		38,187		4.29		9,703		3.40		92,149		4.23
Total commercial mortgage	173,090		4.74		866,716		4.27		869,919		4.37		1,909,725		4.35
Residential mortgage	8,855		4.81		36,148		4.59		525,428		4.22		570,431		4.25
Consumer	4,274		13.82		9,343		6.52		190,191		4.14		203,808		4.45
Total loans	$	1,422,814	4.74	%	$	1,613,483	4.23	%	$	1,724,141	4.28	%	$	4,760,438	4.40	%

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The following table sets forth the composition of fixed-rate and adjustable-rate loans at September 30, 2014 that are contractually due after September 30, 2015:

	Fixed		Adjustable		Total
	(Dollars in thousands)
Commercial & industrial	$	284,166	$	183,982	$	468,148
Equipment financing	371,731		—		371,731
Commercial real estate	733,681		600,693		1,334,374
Multi-family	171,339		183,032		354,371
Acquisition, development & construction	7,053		40,837		47,890
Residential mortgage	284,811		276,765		561,576
Consumer	28,553		170,981		199,534
Total loans	$	1,881,334	$	1,456,290	$	3,337,624

All payroll finance, warehouse lending and factored receivables are contractually due within 12 months.

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Delinquent Loans, Troubled Debt Restructuring, Impaired Loans, Other Real Estate Owned and Classified Assets

Loan Portfolio Delinquencies. The following table sets forth certain information on our loan portfolio delinquencies at the dates indicated.

	Loans delinquent for
	30-89 Days			90 days or more still accruing & non-accrual			Total
	Number	Amount		Number	Amount		Number	Amount
	(Dollars in thousands)
At September 30, 2014:
Commercial & industrial	15	$	9,359	8	$	4,324	23	$	13,683
Payroll finance	1	99		2	346		3	445
Factored receivables	—	—		2	370		2	370
Equipment finance	2	851		1	262		3	1,113
Commercial real estate	6	4,281		36	10,966		42	15,247
Multi-family	—	—		2	131		2	131
Acquisition, development & construction	1	56		21	12,361		22	12,417
Residential mortgage	41	6,059		97	16,460		138	22,519
Consumer	48	4,574		61	5,743		109	10,317
	114	$	25,279	230	$	50,963	344	$	76,242
At September 30, 2013:
Commercial & industrial	5	$	180	8	$	789	13	$	969
Commercial real estate	8	4,335		26	8,769		34	13,104
Acquisition, development & construction	2	768		11	5,420		13	6,188
Residential mortgage	6	621		52	9,316		58	9,937
Consumer	14	566		28	2,612		42	3,178
Total	35	$	6,470	125	$	26,906	160	$	33,376
At September 30, 2012:
Commercial & industrial	7	$	237	2	$	344	9	$	581
Commercial real estate	7	1,875		30	10,453		37	12,328
Acquisition, development & construction	9	7,067		29	15,404		38	22,471
Residential Mortgage	10	1,352		56	11,314		66	12,666
Consumer	22	1,816		21	2,299		43	4,115
Total	55	$	12,347	138	$	39,814	193	$	52,161
At September 30, 2011:
Commercial & industrial	2	$	490	3	$	243	5	$	733
Commercial real estate	4	1,105		34	13,214		38	14,319
Acquisition, development & construction	4	4,265		24	16,984		28	21,249
Residential mortgage	8	1,212		40	7,976		48	9,188
Consumer	20	794		26	2,150		46	2,944
Total	38	$	7,866	127	$	40,567	165	$	48,433
At September 30, 2010:
Commercial & industrial	2	$	3,403	6	$	1,376	8	$	4,779
Commercial real estate	4	1,469		26	9,857		30	11,326
Acquisition, development & construction	2	6,681		11	5,730		13	12,411
Residential mortgage	1	113		36	8,033		37	8,146
Consumer	27	681		22	1,844		49	2,525
Total	36	$	12,347	101	$	26,840	137	$	39,187

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Collection Procedures for Residential and Commercial Mortgage Loans and Consumer Loans. A late payment notice is generated after the 16th day of the loan payment due date requesting the payment due plus any late charge assessed. Legal action, notwithstanding ongoing collection efforts, is generally initiated after 90 days of the original due date for failure to make payment. Unsecured consumer loans are generally charged-off after 120 days. For commercial loans, procedures vary depending on individual circumstances.

Past Due, Non-Performing Loans, Non-Performing Assets (Risk Elements). The table below sets forth the amounts and categories of our non-performing assets at the dates indicated.

	September 30,
	2014			2013			2012			2011			2010
	(Dollars in thousands)
Non-accrual loans:
Commercial & industrial	$	4,324		$	500		$	344		$	243		$	1,376
Factored receivables	370			—			—			—			—
Equipment finance	262			—			—			—			—
Commercial real estate	10,445			5,573			7,319			11,225			6,886
Multi-family	131			1,622			1,496			—			—
Acquisition, development & construction	12,361			5,420			15,404			16,538			5,730
Residential mortgage	15,926			7,484			9,051			7,485			6,080
Consumer	5,743			2,208			1,830			986			1,341
Accruing loans past due 90 days or more	1,401			4,099			4,370			4,090			5,427
Total non-performing loans	50,963			26,906			39,814			40,567			26,840
OREO	7,580			6,022			6,403			5,391			3,891
Total non-performing assets	$	58,543		$	32,928		$	46,217		$	45,958		$	30,731
TDRs accruing and not included above	$	17,653		$	23,895		$	14,077		$	8,470		$	16,047
Ratios:
Non-performing loans to total loans	1.07		%	1.12		%	1.87		%	2.38		%	1.58		%
Non-performing assets to total assets	0.80			0.81			1.15			1.46			1.02

Loans are reviewed on a regular basis and are placed on non-accrual status upon the earlier of (i) when full payment of principal or interest is in doubt, or (ii) when either principal or interest is 90 days or more past due, unless the loan is well secured and in the process of collection. Interest accrued and unpaid at the time a loan is placed on non-accrual status is reversed against interest income. Interest payments received on non-accrual loans are generally applied to the principal balance of the outstanding loan. However, based on an assessment of the borrower’s financial condition and payment history, an interest payment may be applied to interest income on a cash basis. Appraisals are performed at least annually on classifieds loans. At September 30, 2014, we had non-accrual loans of $49.6 million, and we had $1.4 million of loans 90 days past due and still accruing interest which were well secured and in the process of collection. At September 30, 2013, we had non-accrual loans of $22.8 million and $4.1 million of loans 90 days past due and still accruing interest.

Non-performing loans (“NPLs”) increased $24.1 million to $51.0 million at September 30, 2014 compared to $26.9 million at September 30, 2013. Included in this increase are $3.8 million of loans acquired in the Merger that were identified as purchased credit impaired loans, of which $1.5 million were commercial & industrial loans, $2.1 million were residential mortgage loans and $139 thousand were commercial real estate loans. Non-performing loans in the ADC portfolio increased by $6.9 million in fiscal 2014 to $12.3 million; the increase consisted of three loans which are well secured and one loan which has performed as expected in fiscal 2014. We continue to actively manage and reduce outstanding balances in the ADC portfolio. Residential mortgage non-performing loans increased $8.4 million and consumer non-performing loans increased $3.5 million at September 30, 2014 as compared to September 30, 2013. This increase is mainly attributed to the extended period of time necessary to foreclose on residential mortgages in New York state. In fiscal 2014, we outsourced all residential mortgage servicing activities to a third-party vendor, which we anticipate will allow us to better service our residential mortgage portfolio and reduce non-performing balances over time.

Troubled Debt Restructuring. The Company has formally modified loans to certain borrowers who experienced financial difficulty. If the terms of the modification include a concession, as defined by GAAP, the loan is considered a troubled debt restructuring (“TDR”), which are also considered impaired loans. Nearly all of these loans are secured by real estate. Total TDRs were $29.6 million at September 30, 2014, of which $11.9 million were non-accrual and $17.7 million were performing according to terms and still accruing interest income. TDRs still accruing interest income are loans modified for borrowers that have experienced one or more financial

45

difficulties and are still performing in accordance with the terms of their loan prior to the modification. Loan modifications include actions such as extension of maturity date or the lowering of interest rates and monthly payments. As of September 30, 2014, there were no commitments to lend additional funds to borrowers with loans that have been modified.

Other Real Estate Owned. Real estate acquired as a result of foreclosure or by deed in lieu of foreclosure is classified as OREO until such time as it is sold. In addition, financial centers that were closed or consolidated due to the Merger that are held for sale are also classified as OREO. When real estate is transfered to OREO, it is recorded at the lower of our investment in the loan/asset or fair value less cost to sell. If the fair value less cost to sell is less than the loan balance, the difference is charged against the allowance for loan losses. If the fair value of a financial center that we hold for sale is less than its prior carrying value, we recognize a charge included in other operating expense to reduce the recorded value of the investment to fair value, less costs to sell. At September 30, 2014, we had 34 OREO properties with a recorded balance of $7.6 million. After transfer to OREO, we regularly update the fair value of the property. Subsequent declines in fair value are charged to current earnings and included in other non-interest expense as part of OREO expense.

Classification of Assets. Our policies, consistent with regulatory guidelines, provide for the classification of loans and other assets that are considered to be of lesser quality such as substandard, doubtful, or loss assets. An asset is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard assets include those characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Assets classified as “doubtful” have all of 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. Assets classified as “loss” are those considered uncollectible and of such little value that their continuance as assets is not warranted and are charged-off. Assets that do not expose us to risk sufficient to warrant classification in one of the aforementioned categories, but which possess potential weaknesses that deserve our close attention, are designated as “special mention”. As of September 30, 2014, we had $39.6 million of assets designated as “special mention”.

Our determination as to the classification of our assets and the amount of our loan loss allowance are subject to review by our regulators, which can order the establishment of an additional valuation allowance. Management regularly reviews our asset portfolio to determine whether any assets require classification in accordance with applicable regulations. On the basis of management’s review of our assets at September 30, 2014, classified assets consisted of loans of $73.1 million, OREO of $5.2 million and $2.9 million of private label mortgage-backed securities.

For the year ended September 30, 2014, gross interest income that would have been recorded had the non-accrual loans at the end of the year remained on accrual status throughout the year amounted to approximately $1.5 million. Interest income actually recognized on such loans totaled $425 thousand.

Allowance for Loan Losses. We believe the allowance for loan losses is critical to the understanding of our financial condition and results of operations. Selection and application of this “critical accounting policy” involves judgments, estimates, and uncertainties that are susceptible to change. In the event that different assumptions or conditions were to occur, and depending upon the severity of such changes, materially different financial conditions or results of operations is a reasonable possibility. In addition, as an integral part of their examination process, our regulatory agencies periodically review our allowance for loan losses. Such agencies may require us to recognize additions to the allowance based on their judgments of information available to them at the time of their examination.

We maintain our allowance for loan losses at a level that the Company believes is adequate to absorb probable losses inherent in the existing loan portfolio based on an evaluation of the collectibility of loans, underlying collateral, geographic and other concentrations, and prior loss experience. We use a risk rating system for all commercial loans, including commercial real estate loans, to evaluate the adequacy of the allowance for loan losses. With this system, each loan, with the exception of those included in large groups of smaller-balance homogeneous loans, is risk rated between one and ten, by credit administration, loan review or loan committee, with one being the best case and ten being a loss or the worst case. Loans with risk ratings between seven and nine are monitored more closely by the credit administration team and may result in specific valuation allowances. We calculate an average loss experience by loan type that is a twelve quarter average for commercial loans and eight quarter average for consumer loans. To the loss experience, we apply individual qualitative loss factors that result in an overall loss factor at an appropriate level for the allowance for loan losses for a particular loan type. These qualitative loss factors are determined by management, based on historical loss experience for the applicable loan category, and are adjusted to reflect our evaluation of:

• levels of, and trends in, delinquencies and non-accruals;

• trends in volume and terms of loans;

• effects of any changes in lending policies and procedures;

46

• experience, ability, and depth of lending management and staff;

• national and local economic trends and conditions;

• concentrations of credit by such factors as location, industry, inter-relationships, and borrower; and

• for commercial loans, trends in risk ratings.

The allowance for loan losses also includes an element for estimated probable but undetected losses. The Company analyzes loans by two broad segments or classes: real estate secured loans and loans that are either unsecured or secured by other collateral. The segments or classes considered real estate secured are: residential mortgage loans; commercial real estate loans; multi-family loans; ADC loans; homeowner loans; and home equity lines of credit. The segments or classes considered unsecured or secured by other than real estate collateral are: commercial & industrial loans, including payroll finance; warehouse lending; factored receivables; and equipment finance and consumer loans. Commercial loan segments and residential mortgage loans over $500,000 are reviewed for impairment once they are past due 90 days or more. If a loan is deemed to be impaired in one of the real estate secured segments, and it is anticipated that our ultimate source of repayment will be through foreclosure and sale of the underlying collateral, it is generally considered collateral dependent. If the value of the collateral securing a collateral dependent impaired loan is less than the carrying value of the loan, a charge-off is recognized equal to the difference between the appraised value and the book value of the loan. In addition, included in impairment losses are charges recognized for estimated costs to hold and to liquidate the collateral. The ranges for the costs to hold and liquidate are 12-22% for the following segments: commercial real estate, residential and ADC loans and 7-13% for homeowner loans and home equity lines of credit.

For loans in the consumer segment,we charge-off the full amount of the loan when it becomes 90 to 120 days or more past due, or earlier in the case of bankruptcy, after giving effect to any cash or marketable securities pledged as collateral for the loan. For loans in the commercial & industrial loan segment, we conduct a cash flow projection, and charge-off the difference between the net present value of the cash flows discounted at the effective note rate and the carrying value of the loan, and generally recognize an additional impairment reserve to account for the imprecision of our estimates. 

ADC lending exposes us to greater credit risk than permanent mortgage financing. The repayment of ADC loans depends on the sale of the property to third parties or the availability of permanent financing upon completion of all improvements. In the event we make an acquisition loan on property that is not yet approved for the planned development, there is the risk that approvals will not be granted or will be delayed. These events may adversely affect the borrower and the collateral value of the property. ADC loans also expose us to the risk that improvements will not be completed on time in accordance with specifications and projected costs. In addition, the ultimate sale or rental of the property may not occur as anticipated. All of these factors are considered as part of the underwriting, structuring and pricing of the loan. We have deemphasized this type of loan.

Commercial real estate loans subject us to the risks that the property securing the loan may not generate sufficient cash flow to service the debt or the borrower may use the cash flow for other purposes. In addition, the foreclosure process, if necessary, may be slow and properties may deteriorate in the process. The market values are also subject to a wide variety of factors, including general economic conditions, industry specific factors, environmental factors, interest rates and the availability and terms of credit.

Commercial & industrial lending also exposes us to risk because repayment depends on the successful operation of the business which is subject to a wide range of risks and uncertainties. In addition, the ability to successfully liquidate collateral, if any, is subject to a variety of risks because we must gain control of assets used in the borrower’s business before foreclosing, which we cannot be assured of doing, and the value in a foreclosure sale or other means of liquidation may be uncertain.

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Allowance for Loan Losses. The following table sets forth activity in our allowance for loan losses for the years indicated.

	For the year ended September 30,
	2014			2013			2012			2011			2010
	(Dollars in thousands)
Balance at beginning of period	$	28,877		$	28,282		$	27,917		$	30,843		$	30,050
Charge-offs:
Commercial & industrial	(2,901		)	(1,354		)	(1,526		)	(5,400		)	(6,578		)
Payroll finance	(758		)	—			—			—			—
Warehouse lending	—			—			—			—			—
Factored receivables	(211		)	—			—			—			—
Equipment finance	(1,074		)	—			—			—			—
Commercial real estate	(741		)	(3,285		)	(2,682		)	(1,752		)	(984		)
Multi-family	(418		)	(440		)	(25		)	(50		)	(3		)
Acquisition, development & construction	(1,479		)	(3,422		)	(4,124		)	(8,939		)	(848		)
Residential mortgage	(963		)	(2,547		)	(2,551		)	(2,140		)	(749		)
Consumer	(786		)	(2,009		)	(1,901		)	(1,989		)	(1,168		)
Total charge-offs	(9,331		)	(13,057		)	(12,809		)	(20,270		)	(10,330		)
Recoveries:
Commercial & industrial	1,073			410			1,116			605			670
Payroll finance	—			—			—			—			—
Warehouse lending	—			—			—			—			—
Factored receivables	9			—			—			—			—
Equipment finance	194			—			—			—			—
Commercial real estate	161			567			528			2			23
Multi-family	92			10			—			—			—
Acquisition, development & construction	—			182			299			10			261
Residential mortgage	323			101			356			15			3
Consumer	114			232			263			128			166
Total recoveries	1,966			1,502			2,562			760			1,123
Net charge-offs	(7,365		)	(11,555		)	(10,247		)	(19,510		)	(9,207		)
Provision for loan losses	19,100			12,150			10,612			16,584			10,000
Balance at end of period	$	40,612		$	28,877		$	28,282		$	27,917		$	30,843
Ratios:
Net charge-offs to average loans outstanding	0.24		%	0.52		%	0.56		%	1.17		%	0.56		%
Allowance for loan losses to non-performing loans	80			107			71			69			115
Allowance for loan losses to total loans	0.85			1.20			1.33			1.64			1.81

The allowance for loan losses increased from $28.9 million to $40.6 million as the provision for loan losses exceeded net charge-offs by $11.7 million. The allowance for loan losses at September 30, 2014 represented 79.7% of non-performing loans and 0.85% of the total loan portfolio. Net charge-offs for the year ended September 30, 2014 were $7.4 million, or 0.24% of average loans, compared to net charge-offs of $11.6 million, or 0.52% of average loans for the prior year. The decrease in net charge-offs as a percentage of average loans was mostly due to improved collateral values and performance in our commercial real estate and ADC loans.

Provision for Loan Losses. We recorded $19.1 million in loan loss provisions for the year ended September 30, 2014 compared to $12.2 million in the prior year, an increase of approximately $7 million. Loans acquired in the Merger were initially recorded at fair value and in accordance with GAAP did not carry an allowance for loan losses at the acquisition date. In fiscal 2014, we recorded provision for loan losses as a result of organic growth and renewed loans from the Legacy Sterling acquired portfolio. Provision for loan losses was $12.2 million in fiscal 2013, an increase of approximately $1.5 million as compared to fiscal 2012. Net charge-offs in the loan portfolio were $11.6 million in fiscal 2013 compared to $10.2 million in the prior year.

48

Our loss experience indicates classified loans, those rated substandard or worse, require higher levels of provision for loan losses and allowance for loan losses than loans that are not classified. Classified loans increased from $61.1 million at September 30, 2013 to $73.1 million at September 30, 2014 primarily due to classified loans acquired in the Merger. Special mention loans increased from $13.5 million at September 30, 2013 to $39.6 million at September 30, 2014, also mainly due to the Merger.

Impaired Loans. A loan is impaired when it is probable we will be unable to collect all amounts due according to the contractual terms of the loan agreement. Impaired loan values are based on one of three measures (i) the present value of expected future cash flows discounted at the loan’s effective interest rate; (ii) the loan’s observable market price; or (iii) the fair value of the collateral if the loan is collateral dependent. If the measure of an impaired loan is less than its recorded investment, the Bank’s practice is to write-down the loan against the allowance for loan losses so the recorded investment matches the impaired value of the loan. Impaired loans generally include a portion of non-performing loans and accruing and performing TDR loans. At September 30, 2014, we had $36.2 million in impaired loans compared to $36.8 million at September 30, 2013 and $53.3 million at September 30, 2012. The decline between 2012 and 2013 was mainly due to the resolution of several ADC relationships. In fiscal 2013, we modified the methodology we use to determine the allowance for loan losses required for residential mortgage loans and equity lines of credit. In prior periods, we evaluated these loans for impairment on an individual basis. In fiscal 2013, we began evaluating residential mortgage loans and equity lines of credit with an outstanding balance of $500 or less on a homogeneous pool basis. This modified approach to our methodology did not have a material impact on the allowance for loan losses.

Allocation of Allowance for Loan Losses. The following tables set forth the allowance for loan losses allocated by loan category, the total loan balances by category (excluding loans held for sale), and the percent of loans in each category to total loans at the dates indicated. The allowance for loan losses allocated to each category is not necessarily indicative of future losses in any particular category and does not restrict the use of the allowance to absorb losses in other categories.

	September 30,
	2014						2013						2012
	Allowance for loan losses		Loan balance		% of total loans		Allowance for loan losses		Loan balance		% of total loans		Allowance for loan losses		Loan balance		% of total loans
	(Dollars in thousands)
Commercial & industrial	$	9,536	$	1,164,537	24.5	%	$	5,302	$	434,932	18.0	%	$	4,603	$	343,307	16.2	%
Payroll finance	1,379		145,474		3.1		—		—		—		—		—		—
Warehouse lending	630		192,003		4.0		—		4,855		0.2	%	—		—		—
Factored receivables	1,294		181,433		3.8		—		—		—		—		—		—
Equipment finance	2,621		393,027		8.3		—		—		—		—		—		—
Commercial real estate	10,844		1,449,052		30.4		7,567		969,490		40.2		5,754		896,746		42.3
Multi-family	1,867		368,524		7.7		2,400		307,547		12.7		1,476		175,758		8.3
Acquisition, development & construction	2,120		92,149		1.9		5,806		102,494		4.2		8,526		144,061		6.8
Residential mortgage	5,837		570,431		12.0		4,474		400,009		16.6		4,359		350,022		16.5
Consumer	4,484		203,808		4.3		3,328		193,571		8.1		3,564		209,578		9.9
Total	$	40,612	$	4,760,438	100.0	%	$	28,877	$	2,412,898	100.0	%	$	28,282	$	2,119,472	100.0	%

49

	September 30,
	2011						2010
	Allowance for loan losses		Loan balance		% of total loans		Allowance for loan losses		Loan balance		% of total loans
	(Dollars in thousands)
Commercial & industrial	$	5,945	$	209,923	12.3	%	$	8,970	$	217,927	12.8	%
Commercial real estate	5,123		592,201		34.8		5,739		535,227		31.5
Multi-family	445		111,155		6.6		176		44,005		2.5
Acquisition, development & construction	9,895		175,931		10.3		9,752		231,258		13.6
Residential mortgage	3,498		389,765		22.9		2,641		434,900		25.5
Consumer	3,011		224,824		13.1		3,565		238,224		14.1
Total	$	27,917	$	1,703,799	100.0	%	$	30,843	$	1,701,541	100.0	%

The allowance allocated to commercial & industrial loans, payroll finance, warehouse lending, factored receivables and equipment financing mainly increased in fiscal 2014 as a result of higher loan balances due to the Merger and organic loan growth. The loans acquired in the Merger were recorded at fair value with no allowance for loan losses at the acquisition date. The reserve allocated to commercial loans in total was $15.5 million, or 38.1% of the allowance for loan losses at September 30, 2014 compared to $5.3 million or 18.4% of the allowance for loan losses at September 30, 2013. This increase reflects mainly the increase in commercial loans as a percentage of the total loan portfolio. Commercial real estate loans, including multi-family loans, represented 38.1% of the loan portfolio at September 30, 2014 and 31.3% of the allowance for loan losses as compared to September 30, 2013, in which commercial real estate loans were 52.9% of the loan portfolio and 34.5% of the allowance for loan losses. The allowance allocated to acquisition, development and construction loans declined to $2.1 million at September 30, 2014 compared to $5.8 million at September 30, 2013. The decrease in the allowance allocated to acquisition, development and construction loans was mainly due to a reduction in the trailing loan loss allocation factor, which is the main component in determining the estimated allowance required for each class of loan, and also to a change in the composition of the non-performing ADC loans at September 30, 2014, which included several loans that management has determined are well-secured. In our allowance for loan losses methodology the allocation of loss on commercial real estate loans increases as the loan ages during the initial two years of the life of the loan, which results in a higher allocation of the allowance for loan losses as the loan portfolio becomes more seasoned. The increase in the allowance for loan losses on residential mortgage loans and consumer loans is primarily related to the increase in non-performing residential mortgage and consumer loans.

50

Investment Securities

Available for Sale Portfolio. The following table sets forth the composition of our available for sale securities portfolio at the dates indicated.

	September 30,
	2014				2013				2012
	Amortized cost		Fair value		Amortized cost		Fair value		Amortized cost		Fair value
	(Dollars in thousands)
Residential MBS:
Agency-backed	$	477,003	$	477,705	$	284,837	$	282,529	$	241,598	$	251,445
CMO/Other MBS	115,395		114,145		169,336		166,654		191,867		193,064
Total residential MBS	592,398		591,850		454,173		449,183		433,465		444,509
Other securities:
Federal agencies	158,114		152,814		273,637		261,547		404,820		408,823
Corporate bonds	195,547		192,839		118,575		114,933		—		—
State and municipal	131,715		134,898		127,324		128,730		146,136		156,481
Trust Preferred	37,684		38,412		—		—		—		—
Equities	—		—		—		—		1,087		1,059
Total other securities	523,060		518,963		519,536		505,210		552,043		566,363
Total available for sale securities	$	1,115,458	$	1,110,813	$	973,709	$	954,393	$	985,508	$	1,010,872

Held to Maturity Portfolio. The following table sets forth the composition of our held to maturity securities portfolio at the dates indicated.

	September 30,
	2014				2013				2012
	Amortized cost		Fair value		Amortized cost		Fair value		Amortized cost		Fair value
	(Dollars in thousands)
Residential MBS:
Agency-backed	$	142,329	$	143,586	$	130,371	$	130,979	$	71,343	$	73,902
CMO/Other MBS	62,690		61,495		25,776		25,494		27,921		28,119
Total residential MBS	205,019		205,081		156,147		156,473		99,264		102,021
Other securities:
Federal agencies	136,413		138,085		77,341		73,883		22,236		22,342
State and municipal	232,643		239,334		19,011		19,021		19,376		20,435
Other	5,000		5,338		1,500		1,519		1,500		1,526
Total other securities	374,056		382,757		97,852		94,423		43,112		44,303
Total held to maturity securities	$	579,075	$	587,838	$	253,999	$	250,896	$	142,376	$	146,324

Overview. The Board’s Enterprise Risk Committee oversees our investment program and evaluates our investment policy and objectives. Our Chief Financial Officer, Chief Executive Officer, Chief Investment Officer/Treasurer and certain other senior officers have the authority to purchase and sell securities within specific guidelines established in the investment policy. In addition, a summary of all transactions is reviewed by the Enterprise Risk Committee at least quarterly.

The Company’s objectives for the investment securities is to maintain a high quality portfolio that consists primarily of liquid investment securities with a duration that is designed to limit the impact of fair value declines in a rising interest rate environment. The primary use of funds from deposit growth and the primary source of interest income is expected to be from loan growth. The investment portfolio provides for flexibility in interest rate risk management and additional liquidity, in addition to contributing to our overall earnings. Investment securities are also utilized for pledging purposes as collateral for borrowings from FHLB, municipal deposits, and other

51

borrowings. The Company regularly evaluates the portfolio against its overall balance sheet optimization strategy of producing growth in earnings per share, and contributing to return on assets. The Company evaluates the portfolio size, risk and duration on a daily basis. At September 30, 2014, the portfolio represented 23.0% of total assets. Our goal is to establish and maintain the investment portfolio at 18.0% to 20.0% of total assets over time.

FASB ASC Topic 320, Investments - Debt and Equity Securities, requires that, at the time of purchase, we designate a security as held to maturity, available for sale, or trading, depending on our intent and ability to hold the security. Securities designated available for sale are reported at fair value, while securities designated held to maturity are reported at amortized cost. We do not have a trading portfolio. The carrying value of investment securities is comprised of the fair value of investment securities available for sale and the amortized cost of held to maturity securities.

Investment portfolio activity. At September 30, 2014, the carrying value of investment securities was $1.7 billion, an increase of $481.5 million compared to September 30, 2013. At September 30, 2013, the carrying value of the portfolio was $1.2 billion, an increase of $55.1 million as compared to September 30, 2012. In connection with the Merger, the Company acquired securities with a fair value of $607.9 million.

In accordance with FASB ASC Subtopic 320-10-25-6, in a significant business combination a company may transfer held to maturity securities to available for sale securities to maintain the company’s existing interest rate risk position or credit risk policy. Based on management’s review of the combined investment securities portfolio and implications for asset and liability management, investment securities totaling $165.2 million were transferred from held to maturity to available for sale. Investment securities that were transferred included residential mortgage-backed securities, federal agency securities and state and municipal securities and was based mainly on the premium amortization and extension risk inherent in these securities. Concurrent with this repositioning, a total of $221.9 million of investment securities were also transferred from available for sale to held to maturity. Substantially all of the securities transferred from available for sale to held to maturity have a maturity date in 2020 or beyond. Management believes the transfers of investment securities highlighted above maintain the Company’s interest rate risk position and credit risk profile on a combined basis post-Merger.

Portfolio Maturities and Yields. The following table summarizes the composition, maturities and weighted average yield of our investment securities portfolio at September 30, 2014. Maturities are based on the final contractual payment dates and do not reflect the impact of prepayments or early redemptions that may occur. State and municipal securities yields have not been adjusted to a tax equivalent basis.

	1 Year or Less				1-5 years				5-10 years				10 years or more				Total
	Amortized cost		Yield		Amortized cost		Yield		Amortized cost		Yield		Amortized cost		Yield		Amortized cost		Fair Value		Yield
	(Dollars in thousands)
Available for sale:
Residential MBS:
Agency-backed	$	—	—	%	$	9,088	1.93	%	$	111,629	2.27	%	$	356,286	2.49	%	$	477,003	$	477,705	2.43	%
CMO/Other MBS	—		—		2,130		3.22		11,022		1.92		102,243		2.21		115,395		114,145		2.20
Residential MBS	—		—		11,218		2.17		122,651		2.24		458,529		2.43		592,398		591,850		2.39
Federal agencies	—		—		24,996		1.35		133,118		1.52		—		—		158,114		152,814		1.49
Corporate	—		—		66,473		2.02		129,074		2.41		—		—		195,547		192,839		2.28
State and municipal	2,100		1.96		50,039		3.06		72,103		2.94		7,473		3.97		131,715		134,898		3.03
Trust Preferred	—		—		—		—		—		—		37,684		6.60		37,684		38,412		6.60
Total	$	2,100	1.96	%	$	152,726	2.26	%	$	456,946	2.19	%	$	503,686	2.87	%	$	1,115,458	$	1,110,813	2.46	%
Held to maturity:
Residential MBS:
Agency-backed	$	—	—	%	$	—	—	%	$	42,796	2.77	%	$	99,533	2.55	%	$	142,329	$	143,586	2.62	%
CMO/Other MBS	—		—		—		—		—		—		62,690		1.95		62,690		61,495		1.95
Residential MBS	—		—		—		—		42,796		2.77		162,223		2.32		205,019		205,081		2.42
Federal agencies	—		—		—		—		108,317		2.50		28,096		2.56		136,413		138,085		2.51
State and municipal	8,846		2.18		4,388		3.30		80,928		3.00		138,481		3.52		232,643		239,333		3.03
Other	—				4,750		3.09		250		3.75		—		—		5,000		5,338		3.12
Total	$	8,846	2.18	%	$	9,138	3.20	%	$	232,291	2.73	%	$	328,800	2.85	%	$	579,075	$	587,837	2.69	%

52

Mortgage-Backed Securities. Mortgage-backed securities are created by pooling mortgages and issuing a security collateralized by the pool of mortgages with an interest rate that is less than the interest rate on the underlying mortgages. Mortgage-backed securities typically represent a participation interest in a pool of single-family or multi-family mortgages, although most of our mortgage-backed securities are collateralized by single-family mortgages. The issuers of such securities (generally U.S. Government agencies and government sponsored enterprises, including Fannie Mae, Freddie Mac and Ginnie Mae) pool and resell the participation interests in the form of securities to investors, such as us, and guarantee the payment of principal and interest to these investors. Investments in mortgage-backed securities involve a risk in addition to the guarantee of repayment of principal outstanding that actual prepayments will be greater or less than the prepayment rate estimated at the time of purchase, which may require adjustments to the amortization of any premium or accretion of any discount relating to such instruments, thereby affecting the net yield and duration of such securities. We review prepayment estimates for our mortgage-backed securities at purchase to ensure that prepayment assumptions are reasonable considering the underlying collateral for the securities at issue and current interest rates, and to determine the yield and estimated maturity of the mortgage-backed securities portfolio. Periodic reviews of current prepayment speeds are performed in order to ascertain whether prepayment estimates require modification that would cause amortization or accretion adjustments.

A portion of our mortgage-backed securities portfolio is invested in collateralized mortgage obligations (“CMOs”), including Real Estate Mortgage Investment Conduits (“REMICs”), backed by Fannie Mae and Freddie Mac. CMOs and REMICs are types of debt securities issued by special-purpose entities that aggregate pools of mortgages and mortgage-backed securities and create different classes of securities with varying maturities and amortization schedules, as well as a residual interest, with each class possessing different risk characteristics. The cash flows from the underlying collateral are generally divided into “tranches” or classes that have descending priorities with respect to the distribution of principal and interest cash flows, while cash flows on pass-through mortgage-backed securities are distributed pro rata to all security holders. Our practice is to limit fixed-rate CMO investments primarily to the early-to-intermediate tranches, which have the greatest cash flow stability. Floating rate CMOs are purchased with an emphasis on the relative trade-offs between lifetime rate caps, prepayment risk, and interest rates.

Government and Agency Securities. While these securities generally provide lower yields than other investments such as mortgage-backed securities, our current investment strategy is to maintain investments in such instruments to the extent appropriate for liquidity purposes and as collateral for borrowings and municipal deposits.

Corporate Bonds. Corporate bonds have a higher risk of default due to potential for adverse changes in the creditworthiness of the issuer. In recognition of this risk, our policy limits investments in corporate bonds to securities with maturities of ten years or less and rated “A-” or better by at least one nationally recognized rating agency at time of purchase, and to a total investment size of no more than $20.0 million per issuer. Our total corporate bond portfolio limit is the lesser of 5% of total assets or 75% of risk-based capital.

State and Municipal Bonds. The investment policy limits municipal bonds to securities with maturities of 20 years or less and rated as investment grade by at least one nationally recognized rating agency at the time of purchase. However, we also purchase securities that are issued by local government entities within our service area. Such local entity obligations generally are not rated, and are subject to internal credit reviews. In addition, the policy generally imposes an investment size limit of $5.0 million per municipal issuer and a total municipal bond portfolio limit of 10% of assets. At September 30, 2014, we did not hold any obligations that were rated less than “A-” as available for sale.

Trust preferred securities. The Company owns securities of single-issuer bank trust preferred securities, all of which are paying in accordance with their terms and have no deferrals of interest or other deferrals. Management analyzes the credit risk and the probability of impairment on the contractual cash flows of applicable securities. Based upon our analysis, all of the issuers have maintained performance levels adequate to support the contractual cash flows of the securities.

53

Deposits

The following table sets forth the distribution of average deposit accounts by account category and the average rates paid at the dates indicated.

	September 30,
	2014				2013				2012
	Average balance		Rate		Average balance		Rate		Average balance		Rate
	(Dollars in thousands)
Non-interest bearing demand	$	1,580,108	—	%	$	646,373	—	%	$	520,265	—	%
Interest bearing demand	706,160		0.08		466,110		0.08		399,819		0.12
Savings	622,414		0.14		572,246		0.17		485,624		0.08
Money market	1,458,852		0.35		819,442		0.30		671,325		0.33
Certificates of deposit	554,396		0.44		352,469		0.60		289,230		0.87
Total interest bearing deposits	3,341,822		0.27		2,210,267		0.27		1,845,998		0.30
Total deposits	$	4,921,930	0.18		$	2,856,640	0.21		$	2,366,263	0.24

Average deposits increased $2.1 billion, or 72.3% in fiscal 2014 and were $4.9 billion compared to $2.9 billion in fiscal 2013 and $2.4 billion in fiscal 2012. The increase in the average balance of deposits from 2013 to 2014 was mainly due to the Merger. The ratio of average non-interest bearing deposits to total deposits was 32.1% in the fiscal year ended September 30, 2014 compared to 22.6% in fiscal 2013 and 22.0% in fiscal 2012. The average cost of interest bearing and total deposits was 0.27% and 0.18% during fiscal 2014 compared to 0.27% and 0.21% during fiscal 2013 and 0.30% and 0.24% during fiscal 2012.

Distribution of Deposit Accounts by Type. The following table sets forth the distribution of total deposit accounts, by account type, at the dates indicated.

	September 30,
	2014				2013				2012
	Amount		%		Amount		%		Amount		%
	(Dollars in thousands)
Non-interest bearing demand	$	1,799,685	34.0	%	$	943,934	31.9	%	$	947,304	30.4	%
Interest bearing demand	766,852		14.5		434,398		14.7		448,123		14.4
Savings	698,443		13.2		580,125		19.6		506,538		16.3
Money market	1,595,803		30.1		735,709		24.8		821,704		26.4
Subtotal	4,860,783		91.8		2,694,166		91.0		2,723,669		87.5
Certificates of deposit	437,871		8.2		268,128		9.0		387,482		12.5
Total deposits	$	5,298,654	100.0	%	$	2,962,294	100.0	%	$	3,111,151	100.0	%

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The following table presents the proportion of each component of total deposits for the periods presented:

	September 30,
	2014		2013		2012
Retail and business deposits	77.1	%	72.7	%	69.0	%
Municipal deposits	18.7		25.5		29.0
Wholesale deposits	4.2		1.8		2.0
	100.0	%	100.0	%	100.0	%

As of September 30, 2014, 2013 and 2012, the Company had $992.8 million, $757.1 million and $901.7 million, respectively, in municipal deposits. A significant portion of the municipal deposits at September 30 are associated with school district tax collections and we generally retain these deposits only for a short period of time. Wholesale deposits were $220.7 million, $53.1 million and $62.0 million at September 30, 2014, 2013 and 2012, respectively. Wholesale deposits consist of brokered deposits and deposits acquired through listing services.

Certificates of Deposit by Interest Rate Range. The following table sets forth information concerning certificates of deposit by interest rate range at the dates indicated.

	At September 30, 2014
	Period to maturity												At September 30,
	1 year or less		1-2 years		2-3 years		3 years or more		Total		% of total		2013		2012
	(Dollars in thousands)
Interest rate range:
1.00% and below	$	299,149	$	41,600	$	3,702	$	7,642	$	352,093	80.4	%	$	236,786	$	239,149
1.01% to 2.00%	32,360		11,172		31,930		465		75,927		17.3		8,880		114,836
2.01% to 3.00%	6,068		547		—		—		6,615		1.5		10,257		11,569
3.01% to 4.00%	3,235		—		—		—		3,235		0.8		5,838		9,101
4.01% to 5.00%	1		—		—		—		1		—		6,367		12,524
5.01% to 6.00%	—		—		—		—		—		—		—		303
Total	$	340,813	$	53,319	$	35,632	$	8,107	$	437,871	100.0	%	$	268,128	$	387,482

Certificates of Deposit by Time to Maturity. The following table sets forth certificates of deposit by time remaining until maturity as of September 30, 2014.

	Period to maturity
	3 months or less		3-6 months		6-12 months		Over 12 months		Total		Rate
	(Dollars in thousands)
Certificates of deposit less than $100,000	$	58,505	$	35,719	$	35,391	$	17,773	$	147,388	0.26	%
Certificates of deposit $100,000 or more	105,709		52,649		52,840		79,285		290,483		0.70
	$	164,214	$	88,368	$	88,231	$	97,058	$	437,871	0.55	%

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Brokered Deposits. We utilize brokered deposits on a limited basis and maintain limits for the use of wholesale deposits and other short-term funding in general to be less than 10% of total assets. Most of the brokered deposit funding maintained by the Bank has a maturity to coincide with the anticipated inflows of deposits through municipal tax collections.

Listed below are the Company’s brokered deposits:

	September 30,
	2014		2013
	(Dollars in thousands)
Money market	$	84,022	$	34,571
Reciprocal CDAR’s 1	34,017		1,343
CDAR’s one way	3,028		768
Total brokered deposits	$	121,067	$	36,682

¹  Certificate of deposit account registry service

Short-term Borrowings. The Company’s primary source of short-term borrowings (which include borrowings with a maturity less than one year) are advances from the Federal Home Loan Bank of New York. Short-term borrowings also include federal funds purchased and repurchase agreements.

The following table sets forth information concerning balances and interest rates on our short-term borrowings at the dates indicated.

	At or for the fiscal year ended September 30,
	2014			2013			2012
	(Dollars in thousands)
Balance at end of year	$	370,365		$	158,897		$	10,136
Average balance during year	264,249			88,779			27,286
Maximum amount outstanding at any month end	563,085			295,652			103,500
Weighted average interest rate at end of year	0.69		%	0.95		%	1.88		%
Weighted average interest rate during year	0.68			0.57			0.78

Short-term borrowings balances have been mainly used to fund continued loan growth. On a daily and average balance basis, the amount of short-term borrowings will fluctuate based on the inflows and outflows of municipal deposits and other deposits.

Off-Balance Sheet Arrangements and Aggregate Contractual Obligations

In the normal course of operations, the Company engages in a variety of financial transactions that, in accordance with GAAP, are not recorded in the financial statements, or are recorded in amounts that differ from the notional amounts. These transactions involve, to varying degrees, elements of credit, interest rate, and liquidity risk. Such transactions are used by the Company for general corporate purposes or for customer needs. The Company minimizes its exposure to loss under these commitments by subjecting them to credit approval and monitoring procedures.

The Company’s off-balance sheet arrangements, which principally include lending commitments, are described below.

Lending Commitments. Lending commitments include loan commitments, unused credit lines, and letters of credit. These instruments are not recorded in the consolidated balance sheet until funds are advanced under the commitments.

For our non-real estate commercial customers, loan commitments generally take the form of revolving credit arrangements to finance customers’ working capital requirements. At September 30, 2014 these commitments totaled $225.8 million. For our real estate businesses, loan commitments are generally for residential construction, multi-family and commercial construction projects, which totaled $114.8 million at September 30, 2014. Loan commitments for our retail customers are generally home equity lines of credit secured by residential property and totaled $99.0 million. In addition loan commitments for overdrafts were $17.7 million. Letters of credit issued by the Company generally 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

56

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. Standby letters of credit are conditional commitments to support performance, typically of a contract or the financial integrity of a customer to a third-party, and represent an independent undertaking by the Company to the third-party. Letters of credit as of September 30, 2014 totaled $97.5 million.

See Note 15. “Off-Balance-Sheet Financial Instruments” to the consolidated financial statements for additional information regarding lending commitments.

Contractual Obligations. In the ordinary course of our operations, we enter into certain contractual obligations. Such obligations include operating leases for premises and equipment.

Payments Due by Period. The following table summarizes our significant fixed and determinable contractual obligations and other funding needs by payment date at September 30, 2014. The payment amounts represent those amounts due to the recipient.

	Payments due by period
	1 year or less		1-3 years		3-5 years		5 years or more		Total
	(Dollars in thousands)
Contractual obligations:
FHLB borrowings	$	324,726	$	397,786	$	70,000	$	2,516	$	795,028
Other borrowings	45,639		—		—		—		45,639
Senior notes	—		—		98,402		—		98,402
Time deposits	340,812		88,951		8,108		—		437,871
Operating leases	8,984		16,207		14,089		27,012		66,292
	720,161		502,944		190,599		29,528		1,443,232
Other commitments:
Letters of credit	81,599		7,492		—		8,377		97,468
Undrawn lines of credit	520,275		—		—		—		520,275
Total	$	1,322,035	$	510,436	$	190,599	$	37,905	$	2,060,975

See Note 16. “Commitments and contingencies” to the consolidated financial statements for additional information regarding our contractual obligations.

Impact of Inflation and Changing Prices

The consolidated financial statements and related notes of the Company have been prepared in accordance with GAAP, which generally requires the measurement of financial position and operating results in terms of historical dollars without consideration for changes in the relative purchasing power of money over time due to inflation. The impact of inflation is reflected in the increased cost of our operations. Unlike industrial companies, our assets and liabilities are primarily monetary in nature. As a result, changes in market interest rates have a greater impact on performance than the effects of inflation.

Liquidity and Capital Resources

Capital. At September 30, 3014, stockholders’ equity totaled $961.1 million compared to $482.9 million at September 30, 2013. In connection with the Merger, the Company issued 39,057,968 shares of its common stock with a value of $457.8 million on October 31, 2013. Other significant increases in stockholders’ equity included net income of $27.7 million, other comprehensive income, net of tax of $3.9 million, and stock-based compensation of $6.6 million which were partially offset by dividends declared of $17.7 million.

The accumulated other comprehensive loss component of stockholders’ equity totaled a net, after-tax, unrealized loss of $11.5 million compared to a net, after-tax unrealized loss of $15.3 million at September 30, 2013. The increase was the result of a $9.2 million net after-tax increase in the value of securities available for sale, a $214 thousand after-tax decrease in the net actuarial loss on the defined benefit pension plan and a net after-tax decrease in the net unrealized loss on securities transferred to held maturity of $5.1 million.

57

Under current regulatory requirements, amounts reported as accumulated other comprehensive (loss) income related to securities available for sale, securities transferred to held to maturity, and defined benefit pension plans do not reduce or increase regulatory capital and are not included in the calculation of leverage and risk-based capital ratios. Regulatory agencies for banks and bank holding companies utilize capital guidelines to measure Tier 1 and total capital and to take into consideration the risk inherent in both on-balance sheet and off-balance sheet items. See Note 14. “Stockholders’ Equity” in the consolidated financial statements included elsewhere in this Report.

The Company paid a $0.06 dividend per common share in the first fiscal quarter of 2014 and paid a dividend of $0.07 per common share in the second, third and fourth fiscal quarters of 2014. Dividends of $0.06 were paid in each fiscal quarter of 2013.

The Company’s board of directors has authorized the repurchase of the Company’s common stock. At September 30, 2014, there are 776,713 shares available for repurchase. No shares were repurchased under this plan during fiscal 2014 or 2013. See Part II, Item 5. “Market for Registrants Common Equity, Related Stockholder Matters, Issuer Purchases of Equity Securities”, included elsewhere in this Report.

Basel III Capital Rules. In July 2013, the Company’s primary federal regulators published final rules (the “Basel III Capital Rules”) establishing a new comprehensive capital framework for U.S. banking organizations. The rules are discussed under “Supervision and Regulation - Capital Requirements - Basel III Capital Rules.”

Liquidity. Liquidity measures the ability to meet current and future cash flow needs as they become due. The liquidity of a financial institution reflects its ability to meet loan requests, to accommodate possible outflows in deposits and to take advantage of interest rate market opportunities. The ability of a financial institution to meet its current financial obligations is a function of its balance sheet structure, its ability to liquidate assets and its access to alternative sources of funds. The objective of the Company’s liquidity management is to manage cash flow and liquidity reserves so that they are adequate to fund the Company’s operations and to meet obligations and other commitments on a timely basis and at a reasonable cost. The Company seeks to achieve this objective and ensure that funding needs are met by maintaining an appropriate level of liquid funds through asset/liability management, which includes managing the mix and time to maturity of financial assets and financial liabilities on the Company’s balance sheet. The Company’s liquidity position is enhanced by its ability to raise additional funds as needed in the wholesale markets.

Asset liquidity is provided by liquid assets which are readily marketable or pledgeable or which will mature in the near future. Liquid assets include cash, interest-bearing deposits in banks, securities available for sale, maturities and cash flow from securities held to maturity.

Liability liquidity is provided by access to funding sources which include core deposits, federal funds purchased and repurchase agreements. The liquidity position of the Company is continuously monitored and adjustments are made to the balance between sources and uses of funds as deemed appropriate. Liquidity risk management is an important element in the Company’s asset/liability management process. The Company regularly models liquidity stress scenarios to assess potential liquidity outflows or funding problems resulting from economic activity, volatility in the financial markets, unexpected credit events or other significant occurrences. These scenarios are incorporated into the Company’s contingency funding plan, which provides the basis for the identification of the Company’s liquidity needs. As of September 30, 2014, management is not aware of any events that are reasonably likely to have a material adverse effect on the Company’s liquidity, capital resources or operations. In addition, management is not aware of any regulatory recommendations regarding liquidity, including the Basel III liquidity framework, which, if implemented, would have a material adverse effect on the Company.

At September 30, 2014 the Bank had $176.6 million in cash on hand and unused borrowing capacity at the FHLB of $785.1 million. In addition, the Bank may purchase additional federal funds from other institutions and enter into additional repurchase agreements.

The Company is a bank holding company and does not conduct operations. Its primary sources of liquidity are dividends received from the Bank and borrowings from outside sources. Banking regulations may limit the amount of dividends that may be paid by the Bank. At September 30, 2014, the Bank had capacity to pay up to $47.9 million of dividends to the Company. At September 30, 2014 the Company had cash of $23.4 million, and $15 million available under a revolving line of credit facility.

In September 2014, the Company entered into a $15 million revolving line of credit facility with a third-party financial institution that matures on September 5, 2015. The use of proceeds are for general corporate purposes. The facility has not been used and requires the Company and the Bank to maintain certain ratios related to capital, nonperforming asset to capital, reserves to nonperforming loans and debt service coverage. The Company and the Bank were in compliance with all requirements at September 30, 2014.

58

The Company has an effective shelf registration covering $29 million of debt and equity securities remaining available for use, subject to Board authorization and market conditions, to issue equity or debt securities at our discretion. 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.

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ITEM 7A. 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. The 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 reviews 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 real estate loans, commercial & industrial loans, residential fixed-rate mortgage loans that are repaid monthly and bi-weekly, and 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-released 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’s 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.

Estimated Changes in EVE and NII. The table below sets forth, as of September 30, 2014, 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 on 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	$	916,800	$	(31,928	)	(3.4	)%	$	278,113	$	30,308		12.2	%
+200	936,800		(11,928		)	(1.3	)	268,343		20,538			8.3
+100	955,109		6,381			(0.7	)	257,610		9,805			4.0
0	948,728		—			—		247,805		—			—
-100	927,870		(20,858		)	(2.2	)	229,429		(18,376		)	(7.4	)

The table above indicates that at September 30, 2014, in the event of an immediate 200 basis point increase in interest rates, we would expect to experience a 1.3% decrease in EVE and a 8.3% 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 may have on our net interest income. Actual results will likely differ.

60

During the fiscal year 2014, 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 25 basis points from 0.33% to 0.58% in fiscal 2014 while the yield on U.S. Treasury 10-year notes decreased 12 basis points from 2.64% to 2.52% over the same twelve month period. The decrease in rates on longer-term maturities coupled with the increase in rates on the short-term maturities resulted in a flatter 2-10 year treasury yield curve at the end of fiscal 2014 relative to the beginning of the fiscal year. During the fourth quarter, the FOMC reaffirmed its willingness to maintain an accommodative stance on monetary policy stating that it intends to do so even after employment and inflation are near mandate consistent levels should economic conditions warrant keeping the target federal funds rate below levels the committee views as normal in the longer run. However, should economic conditions improve, the FOMC could 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 a short-term margin compression.

ITEM 8. Financial Statements and Supplementary Data

The following are included in this item:

(A) Report of Independent Registered Public Accounting Firm

(B) Consolidated Balance Sheets as of September 30, 2014 and 2013

(C) Consolidated Income Statements for the fiscal years ended September 30, 2014, 2013 and 2012

(D) Consolidated Statements of Changes in Stockholders’ Equity for the fiscal years ended September 30, 2014, 2013 and 2012

(E) Consolidated Statements of Cash Flows for the fiscal years ended September 30, 2014, 2013 and 2012

(F) Notes to Consolidated Financial Statements

The supplementary data required by this item (selected quarterly financial data) is provided in Note 21. “Quarterly Results of Operations (Unaudited)” to the consolidated financial statements.

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Report of Independent Registered Public Accounting Firm

Board of Directors and Stockholders

Sterling Bancorp

We have audited the accompanying consolidated balance sheets of Sterling Bancorp as of September 30, 2014 and 2013, and the related consolidated statements of income, comprehensive income, changes in stockholders' equity and cash flows for each of the years in the three year period ended September 30, 2014. We also have audited Sterling Bancorp’s internal control over financial reporting as of September 30, 2014, based on criteria established in the 2013 Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Sterling Bancorp’s management is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying, Management’s Annual Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on these consolidated financial statements and an opinion on the company's internal control over financial reporting based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the consolidated financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Sterling Bancorp as of September 30, 2014 and 2013, and the results of its operations and its cash flows for each of the years in the three year period ended September 30, 2014 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, Sterling Bancorp maintained, in all material respects, effective internal control over financial reporting as of September 30, 2014, based on criteria established in the 2013 Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.

/s/ Crowe Horwath LLP

New York, New York

November 28, 2014

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STERLING BANCORP AND SUBSIDIARIES

Consolidated Balance Sheets

(Dollars in thousands, except per share data)

	September 30,
	2014			2013
ASSETS:
Cash and due from banks	$	177,619		$	113,090
Securities:
Available for sale, at fair value	1,110,813			954,393
Held to maturity, at amortized cost (fair value of $587,838 and $250,896 in 2014 and 2013, respectively)	579,075			253,999
Total securities	1,689,888			1,208,392
Loans held for sale	17,846			1,011
Gross loans	4,760,438			2,412,898
Allowance for loan losses	(40,612		)	(28,877		)
Total loans, net	4,719,826			2,384,021
Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) stock, at cost	66,085			24,312
Accrued interest receivable	19,667			11,698
Premises and equipment, net	43,286			36,520
Goodwill	388,926			163,117
Core deposit and other intangible assets	45,278			5,891
Bank owned life insurance	119,486			60,914
Other real estate owned	7,580			6,022
Other assets	41,900			34,184
Total assets	$	7,337,387		$	4,049,172
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES:
Deposits	$	5,298,654		$	2,962,294
FHLB borrowings	795,028			462,953
Other borrowings (federal funds purchased and repurchase agreements)	45,639			—
Senior notes	98,402			98,033
Mortgage escrow funds	4,494			12,646
Other liabilities	134,032			30,380
Total liabilities	6,376,249			3,566,306
Commitments and Contingent liabilities (See Note 16.)
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; 190,000,000 shares authorized; 91,246,024 and 52,188,056 issued for 2014 and 2013, respectively; 83,628,267 and 44,351,046 shares outstanding in 2014 and 2013, respectively)	912			522
Additional paid-in capital	860,564			403,816
Unallocated common stock held by employee stock ownership plan (“ESOP”); 0 and 549,262 unallocated shares outstanding in 2014 and 2013, respectively	—			(5,493		)
Treasury stock, at cost (7,617,757 shares in 2014 and 7,837,010 shares in 2013)	(86,339		)	(88,538		)
Retained earnings	197,460			187,889
Accumulated other comprehensive (loss), net of tax (benefit) of ($8,470) in 2014 and ($10,482) in 2013	(11,459		)	(15,330		)
Total stockholders’ equity	961,138			482,866
Total liabilities and stockholders’ equity	$	7,337,387		$	4,049,172

See accompanying notes to consolidated financial statements.

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STERLING BANCORP AND SUBSIDIARIES

Consolidated Income Statements

For the year ended September 30,

(Dollars in thousands, except per share data)

	2014			2013		2012
Interest and dividend income:
Loans, including fees	$	202,982		$	107,810	$	91,010
Taxable securities	30,067			17,509		16,538
Non-taxable securities	10,453			5,682		6,497
Other earning assets	3,404			1,060		992
Total interest and dividend income	246,906			132,061		115,037
Interest expense:
Deposits	8,964			5,923		5,581
Borrowings	19,954			13,971		12,992
Total interest expense	28,918			19,894		18,573
Net interest income	217,988			112,167		96,464
Provision for loan losses	19,100			12,150		10,612
Net interest income after provision for loan losses	198,888			100,017		85,852
Non-interest income:
Accounts receivable management / factoring commissions and other related fees	13,146			—		—
Mortgage banking income	8,086			1,979		1,897
Deposit fees and service charges	15,595			10,964		11,377
Net gain on sale of securities	641			7,391		10,452
Bank owned life insurance	3,080			1,998		2,050
Investment management fees	2,209			2,413		3,143
Other	4,613			2,947		3,233
Total non-interest income	47,370			27,692		32,152
Non-interest expense:
Compensation and employee benefits	94,310			47,833		46,038
Stock-based compensation plans	3,703			2,239		1,187
Occupancy and office operations	27,726			14,953		14,457
Amortization of intangible assets	9,408			1,296		1,245
FDIC insurance and regulatory assessments	6,146			3,010		3,096
Other real estate owned (income) expense, net	(237		)	1,562		1,618
Merger-related expense	9,455			2,772		5,925
Other	57,917			17,376		18,391
Total non-interest expense	208,428			91,041		91,957
Income before income taxes	37,830			36,668		26,047
Income taxes	10,152			11,414		6,159
Net income	$	27,678		$	25,254	$	19,888
Weighted average common shares:
Basic	80,268,970			43,734,425		38,227,653
Diluted	80,534,043			43,783,053		38,248,046
Earnings per common share:
Basic	$	0.34		$	0.58	$	0.52
Diluted	0.34			0.58		0.52

See accompanying notes to consolidated financial statements.

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STERLING BANCORP AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the year ended September 30,

(Dollars in thousands, except share data)

	2014			2013			2012
Net income	$	27,678		$	25,254		$	19,888
Other comprehensive income (“OCI”) (loss):
Change in unrealized holding gains (losses) on securities available for sale	15,948			(37,324		)	12,866
Related income tax (expense) benefit	(6,778		)	15,157			(5,224		)
Change in net unrealized (loss) on securities transferred to held to maturity	(8,947		)	—			—
Related income tax benefit	3,803			—			—
Reclassification adjustment for net realized (gains) included in net income	(641		)	(7,391		)	(10,452		)
Related income tax expense	272			3,001			4,245
Reclassification adjustment for other than temporary impaired losses included in net income	—			32			47
Related income tax benefit	—			(13		)	(19		)
Total OCI securities component	3,657			(26,538		)	1,463
Acceleration of future amortization of accumulated other comprehensive loss on defined benefit pension plan and change in funded status of defined benefit plans	372			7,255			505
Related income tax (expense)	(158		)	(2,946		)	(205		)
Other comprehensive income (loss)	3,871			(22,229		)	1,763
Total comprehensive income	$	31,549		$	3,025		$	21,651

See accompanying notes to consolidated financial statements.

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STERLING BANCORP AND SUBSIDIARIES

Consolidated Statements of Changes in Stockholders’ Equity

For the year ended September 30,

(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 (loss)			Total stockholders’ equity
Balance at October 1, 2011	37,864,008		$	459	$	357,063		$	(6,138	)	$	(90,585	)	$	165,199		$	5,136		$	431,134
Net income	—		—		—			—			—			19,888			—			19,888
Other comprehensive income	—		—		—			—			—			—			1,763			1,763
Stock option & other stock transactions, net	—		—		685			—			—			—			—			685
ESOP shares allocated or committed to be released for allocation (49,932 shares)	—		—		43			500			—			—			—			543
Restricted stock awards, net	50,958		—		(187		)	—			412			(16		)	—			209
Capital raise	6,258,504		63		45,937			—			—			—			—			46,000
Cash dividends declared ($0.24 per common share)	—		—		—			—			—			(9,100		)	—			(9,100		)
Balance at September 30, 2012	44,173,470		522		403,541			(5,638		)	(90,173		)	175,971			6,899			491,122
Net income	—		—		—			—			—			25,254			—			25,254
Other comprehensive income	—		—		—			—			—			—			(22,229		)	(22,229		)
Stock option & other stock transactions, net	8,250		—		730			—			95			(33		)	—			792
ESOP shares allocated or committed to be released for allocation (49,932 shares)	—		—		119			145			—			—			—			264
Restricted stock awards, net	169,326		—		(574		)	—			1,540			—			—			966
Cash dividends declared ($0.30 per common share)	—		—		—			—			—			(13,303		)	—			(13,303		)
Balance at September 30, 2013	44,351,046		522		403,816			(5,493		)	(88,538		)	187,889			(15,330		)	482,866
Net income	—		—		—			—			—			27,678			—			27,678
Other comprehensive income	—		—		—			—			—			—			3,871			3,871
Common stock issued in Legacy Sterling merger transaction	39,057,968		390		457,362			—			—			—			—			457,752
Stock option & other stock transactions, net	267,188		—		880			—			3,333			(430		)	—			3,783
ESOP shares allocated and ESOP termination	(488,403	)	—		1,280			5,493			(5,983		)	—			—			790
Restricted stock awards, net	440,468		—		(2,774		)	—			4,849			—			—			2,075
Cash dividends declared ($0.21 per common share)	—		—		—			—			—			(17,677		)	—			(17,677		)
Balance at September 30, 2014	83,628,267		$	912	$	860,564		$	—		$	(86,339	)	$	197,460		$	(11,459	)	$	961,138

See accompanying notes to consolidated financial statements.

66

STERLING BANCORP AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the Year Ended September 30,

(Dollars in thousands)

	2014			2013			2012
Cash flows from operating activities:
Net income	$	27,678		$	25,254		$	19,888
Adjustments to reconcile net income to net cash provided by operating activities:
Provisions for loan losses	19,100			12,150			10,612
(Gain) loss and write-downs on other real estate owned	(1,208		)	1,285			694
(Gain) on redemption of Subordinated Debentures	(712		)	—			—
Depreciation of premises and equipment	6,507			4,243			4,746
Impairment of premises and equipment	11,043			—			—
Amortization of intangibles	9,408			1,296			1,245
Amortization of low income housing tax credit	520			—			—
Net gain on sale of securities	(641		)	(7,391		)	(10,452		)
Net gains on loans held for sale	(8,086		)	(1,979		)	(1,897		)
(Gain) loss on sale of premises and equipment	(93		)	75			(75		)
Net amortization of premium and discount on securities	3,176			2,068			(1,006		)
Change in unamortized acquisition costs and premiums	1,028			1,050			—
Accretion of premium on borrowings (includes calls on borrowings), net	(446		)	87			(67		)
Amortization of pre-payment fees on restructured borrowings	1,302			1,466			1,459
ESOP and restricted stock expense	2,803			1,544			667
Stock option compensation expense	901			695			521
Originations of loans held for sale	(462,030		)	(85,657		)	(80,579		)
Proceeds from sales of loans held for sale	483,622			94,130			79,147
Increase in cash surrender value of bank owned life insurance	(3,198		)	(1,998		)	(2,050		)
Deferred income tax (benefit) expense	(3,507		)	719			(64		)
Other adjustments (principally net changes in other assets and other liabilities)	40,497			(26,413		)	2,237
Net cash provided by operating activities	127,664			22,624			25,026
Cash flows from investing activities:
Purchases of securities:
Available for sale	(407,438		)	(490,160		)	(679,553		)
Held to maturity	(172,899		)	(169,320		)	(95,157		)
Proceeds from maturities, calls and other principal payments on securities:
Available for sale	163,199			168,771			174,497
Held to maturity	31,227			55,866			63,037
Proceeds from sales of securities available for sale	529,107			339,123			344,431
Proceeds from sales of securities held to maturity	—			1,187			—
Loan originations, net	(659,013		)	(310,615		)	(226,616		)
(Purchases) of FHLB and FRB stock, net	(34,093		)	(5,063		)	(620		)
Proceeds from sales of other real estate owned	9,645			4,730			3,468
Purchases of premises and equipment	(2,584		)	(2,355		)	(1,853		)
Proceeds from sale of Hudson Valley Investment Advisors	—			4,738			—
Proceeds from sale of fixed assets	310			—			75
Purchase low income housing tax credit	(1,966		)	—			—
Cash received from acquisitions	277,798			—			126,818
Net cash (used in) investing activities	(266,707		)	(403,098		)	(291,473		)

67

STERLING BANCORP AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the Year Ended September 30,

(Dollars in thousands)

	2014			2013			2012
Cash flows from financing activities:
Net increase (decrease) in transaction, savings and money market deposits	301,028			(29,503		)	499,340
Net (decrease) in time deposits	(261,858		)	(119,354		)	(53,786		)
Net increase (decrease) in short-term FHLB borrowings	103,000			91,528			(5,000		)
Net increase (decrease) in long-term FHLB borrowings	147,506			24,783			(5,244		)
Net (decrease) in repurchase agreements and other short-term borrowings	(37,177		)	—			—
Redemption of Subordinated Debentures	(26,140		)	—			—
Payments of pre-payment fees on FHLB borrowings	—			—			(278		)
Repayment of senior unsecured note	—			—			(51,499		)
Net proceeds from Senior Notes	—			97,946			—
Net increase in mortgage escrow funds	(8,152		)	727			2,218
Stock option transactions	2,980			62			102
Other stock-based compensation transactions	62			35			164
Equity capital raise	—			—			46,000
Cash dividends paid	(17,677		)	(10,642		)	(9,100		)
Net cash provided by financing activities	203,572			55,582			422,917
Net increase (decrease) in cash and cash equivalents	64,529			(324,892		)	156,470
Cash and cash equivalents at beginning of year	113,090			437,982			281,512
Cash and cash equivalents at end of year	$	177,619		$	113,090		$	437,982
Supplemental cash flow information:
Interest payments	$	29,419		$	18,831		$	18,447
Income tax payments	12,473			4,475			1,873
Real estate acquired in settlement of loans	2,542			5,634			6,148
Unsettled securities transactions	—			—			41,758
Dividends declared, not yet paid	—			2,661			—
Acquisitions:
Non-cash assets acquired:
Securities available for sale	$	233,190		$	—		$	54,994
Securities held to maturity	374,721			—			—
Loans held for sale	30,341			—			—
Total loans, net	1,698,108			—			205,453
FHLB stock	7,680			—			1,045
Accrued interest receivable	6,590			—			417
Goodwill	225,809			—			5,535
Trade name	20,500			—			—
Core deposit intangibles	20,089			—			4,818
Bank owned life insurance	55,374			—			—
Premises and equipment, net	23,594			—			490
Other real estate owned	5,815			—			—
Other assets	20,933			—			1,793
Total non-cash assets acquired	2,722,744			—			274,545

68

STERLING BANCORP AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the Year Ended September 30,

(Dollars in thousands)

	2014		2013		2012
Liabilities assumed:
Deposits	2,297,190		—		368,902
FHLB and other borrowings	100,619		—		30,784
Other borrowings	62,465		—		—
Subordinated debentures	26,527		—		—
Other liabilities	55,960		—		1,677
Total liabilities assumed	$	2,542,761	$	—	$	401,363
Net non-cash (liabilities) acquired	$	179,983	$	—	$	(126,818	)
Cash and cash equivalents acquired in acquisitions	277,798		—		126,818

See accompanying notes to consolidated financial statements.

69

STERLING BANCORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

(1) Basis of Financial Statement Presentation and Summary of Significant Accounting Policies

Merger with Sterling Bancorp

On October 31, 2013, Provident New York Bancorp (“Legacy Provident”) merged with Sterling Bancorp (“Legacy Sterling”). In connection with the merger, the following corporate actions occurred:

• Legacy Sterling merged with and into Legacy Provident. Legacy Provident was the accounting acquirer and the surviving entity.

• Legacy Provident changed its legal entity name to Sterling Bancorp and became a bank holding company and a financial holding company as defined by the Bank Holding Company Act of 1956, as amended (“Sterling” or the “Company”).

• Provident Bank converted to a national bank charter.

• Sterling National Bank merged into Provident Bank.

• Provident Bank changed its legal entity name to Sterling National Bank.

• Provident Municipal Bank merged into Sterling National Bank.

We refer to the transactions detailed above collectively as the “Merger.”

The consolidated financial statements include the accounts of Sterling; STL Holdings, Inc. (formerly PBNY Holdings, Inc.) which has an investment in Sterling Silver Title Agency L.P. (formerly PB Madison Title Agency L.P.), a company that provides title searches and title insurance for residential and commercial real estate; LandSave Development, LLC an inactive subsidiary, which was dissolved on September 30, 2014; Sterling Risk Management, Inc. (formerly Provident Risk Management, Inc., a captive insurance company); Sterling National Bank (the “Bank”) and the Bank’s wholly-owned subsidiaries. These subsidiaries included at September 30, 2014: (i) Sterling REIT, Inc. a real estate investment trust that holds a portion of the Company’s real estate loans; (ii) Provest Services Corp. I, which has invested in a low-income housing partnership; (iii) Provest Services Corp. II, which has engaged a third-party provider to sell mutual funds and annuities to the Bank’s customers and (iv) several limited liability companies which hold other real estate owned. Intercompany transactions and balances are eliminated in consolidation.

The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. Certain amounts from prior years have been reclassified to conform to the current fiscal year presentation. Reclassifications had no affect on prior year net income or stockholders’ equity.

(a)Nature of Business

Since October 31, 2013, Sterling is a bank holding company and financial holding company under the Bank Holding Company Act of 1956. Sterling is a Delaware corporation that owns all of the outstanding shares of the Bank. Sterling is listed on the New York Stock Exchange (“NYSE”) under the symbol STL.

The Bank, an independent, full-service bank founded in 1888, is headquartered in Montebello, New York and is the principal bank subsidiary of Sterling. The Bank accounts for substantially all of Sterling’s consolidated assets and net income. The Bank operates through commercial banking teams and financial centers which serve the greater New York metropolitan region. The Bank targets the following geographic markets: (i) the New York Metro Market, which includes Manhattan and Long Island; and (ii) the New York Suburban Market, which consists of Rockland, Orange, Sullivan, Ulster, Putnam and Westchester counties in New York and Bergen County in New Jersey.

The Bank’s principal business is accepting deposits and, together with funds generated from operations and borrowings, investing in various types of loans and securities. In connection with the Merger, the Bank became a national bank and its deposits are insured up to applicable limits by the Deposit Insurance Fund of the Federal Deposit Insurance Corporation (“FDIC”). The Office of the Comptroller of the Currency (“OCC”) and the Federal Reserve Board are the primary regulators for the Bank and the Company, respectively.

(b)Use of estimates

The consolidated financial statements have been prepared in conformity with GAAP. In preparing the consolidated financial statements, the Company is required to make estimates and assumptions that affect the reported amounts of assets, liabilities, income and expense. Actual results could differ significantly from these estimates. An estimate that is particularly susceptible to significant near-term change is the allowance for loan losses, which is discussed below. Also subject to change are estimates involving goodwill impairment evaluations, mortgage servicing rights, benefit plans, deferred income taxes and fair values of financial instruments.

70

STERLING BANCORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

(c)Cash Flows

For purposes of reporting cash flows, cash equivalents include highly liquid, short-term investments such as overnight federal funds, as well as cash and deposits with other financial institutions. Net cash flows are reported for customer loan and deposit transactions and short-term borrowings with an original maturity of 90 days or less.

(d) Restrictions on Cash

The Bank was required to have $28.7 million and $14.6 million of cash on hand or on deposit with the Federal Reserve Bank to meet regulatory reserve and clearing requirements at September 30, 2014 and 2013.

(e)Long-Term Assets

Premises and equipment, core deposit and other intangible assets are reviewed annually for impairment or when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value.

(f)Fair Values of Financial Instruments

Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. (See Note 17. “Fair Value Measurements”)

(g)Adoption of New Accounting Standards

Accounting Standards Update (ASU) 2014-01 - Investments - Equity method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects was issued. This standard provides reporting guidance for entities that invest in qualified affordable housing projects through limited liability entities that are flow through entities for tax purposes. The amendments in this ASU eliminate the effective yield election and permit the Company to make an accounting policy election to account for its investment in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, the Company amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the statement of operations as a component of income tax expense. The amendments in this ASU should be applied retrospectively to all periods presented. The Company adopted this ASU in the quarter ended March 31, 2014, which coincided with the Company’s initial recognition of low income housing tax credits. The adoption of this ASU resulted in a $508 income tax benefit and a $520 expense associated with the amortization of the Company’s investment for the fiscal year ended September 30, 2014.

(h)Securities

Securities include U.S. Treasury, U.S. Government Agency and Government Sponsored Agencies, municipal and corporate bonds, mortgage-backed securities, collateralized mortgage obligations and trust preferred securities.

The Company can classify its securities among three categories: held to maturity, trading, and available for sale. The Company determines the appropriate classification of the Company’s securities at the time of purchase.

Held to maturity securities are limited to debt securities for which there is the intent and the ability to hold to maturity. These securities are reported at amortized cost.

Trading securities are debt and equity securities held principally for the purpose of selling them in the near-term. These securities are reported at fair value, with unrealized gains and losses included in earnings. The Company does not engage in securities trading activities.

All other debt and marketable equity securities are classified as available for sale. These securities are reported at fair value, with unrealized gains and losses (net of the related deferred income tax effect) excluded from earnings and reported in a separate component of stockholders’ equity (accumulated other comprehensive income or loss). Available for sale securities include securities that the Company intends to hold for an indefinite period of time, such as securities to be used as part of the Company’s asset/liability management strategy or securities that may be sold to fund loan growth, in response to changes in interest rates, changes in prepayment risks, the need to increase capital, or similar factors.

Premiums and discounts on debt securities are recognized in interest income on a level yield basis over the period to maturity. Amortization of premiums and accretion of discounts on mortgage-backed securities are based on the estimated cash flows of the

71

STERLING BANCORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

mortgage-backed securities, periodically adjusted for changes in estimated lives, on a level yield basis. The cost of securities sold is determined using the specific identification method.

Securities are evaluated for impairment at least quarterly, and more frequently when economic and market conditions warrant such an evaluation. For securities in an unrealized loss position, we consider the extent and duration of the unrealized loss, and the financial condition of the issuer. The Company also assesses whether it intends to sell, or is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either criteria regarding intent to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. If the Company does not expect to recover the entire amortized cost basis of the security, the Company does not intend to sell the security and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, the other than temporary impairment is separated into a) the amount representing the credit loss and b) the amount related to all other factors. The amount of other than temporary impairment related to credit loss is recognized in earnings while the amount related to other factors is recognized in other comprehensive income, net of applicable taxes. The cost basis of individual equity securities is written down to estimated fair value through a charge to earnings when declines in value below cost are considered to be other than temporary. As of September 30, 2014, the Company does not intend to sell nor is it more likely than not that it would be required to sell any of its debt securities with unrealized losses prior to recovery of its amortized cost basis less any current period credit loss.

(i)Loans Held For Sale

Mortgage loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value, as determined by outstanding commitments from investors. In the absence of commitments from investors, fair value is based on current investor yield requirements. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings.

Historically mortgage loans held for sale were generally sold with servicing rights retained. The carrying value of mortgage loans sold is reduced by the amount allocated to the value of the servicing rights which is its fair value. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold.

(j)Servicing Rights

When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans.

Under the amortization measurement method, the Company subsequently measures servicing rights at fair value at each reporting date and records any impairment in value of servicing assets in earnings in the period in which the impairment occurs. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses.

Servicing fee income, which is reported on the income statement as other income, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan, and are recorded as income when earned. Servicing fees totaled $911, $778 and $695 for the years ended September 30, 2014, 2013 and 2012, respectively. Late fees and ancillary fees related to loan servicing are not material. Effective October 1, 2013, the Bank outsourced servicing of residential mortgage loans to a nationally recognized mortgage loan servicing company.

(k)Loans

Loans where Sterling has the intent and ability to hold for the foreseeable future or until maturity or payoff (other than loans held for sale) are reported at amortized cost less the allowance for loan losses. Interest income on loans is accrued on the unpaid principal balance.

A loan is placed on non-accrual status upon the earlier of (i) when Sterling determines that the borrower may likely be unable to meet contractual principal or interest obligations, or (ii) when payments are 90 days or more past due, unless well secured and in the process of collection. Accrual of interest ceases and, in general, uncollected past due interest is reversed and charged against current interest income. Interest payments received on non-accrual loans, including impaired loans, are not recognized as income unless warranted based on the borrower’s financial condition and payment record. Furthermore, negative tax escrow will be included in the unpaid principal for loans individually evaluated for impairment, as this is part of the customer’s legal obligation to the Company.

72

STERLING BANCORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

The Company defers nonrefundable loan origination and commitment fees, and certain direct loan origination costs, and amortizes the net amount as an adjustment of the yield over the estimated life of the loan. If a loan is prepaid or sold, the net deferred amount is recognized in the statement of income at that time. Interest and fees on loans include prepayment fees and late charges collected.

(l)Allowance for Loan Losses

The allowance for loan losses is a reserve established through a provision for loan losses charged to expense, which represents management’s best estimate of probable incurred credit losses inherent in the loan portfolio. The allowance for loan losses is a critical accounting estimate and requires substantial judgment of management. The allowance for loan losses includes allowance allocations calculated in accordance with ASC Subtopic 450-20, “Loss Contingencies” and ASC Subtopic 310-35-2, “Loan Impairment.” The level of the allowance reflects management’s continuing evaluation of loan loss experience, specific credit risks, current loan portfolio quality, industry and loan type concentrations, economic and regulatory conditions and unidentified losses inherent in the loan portfolios, as well as trends in the foregoing. The Company analyzes loans by two broad segments: real estate secured loans and loans that are either unsecured or secured by other collateral.

The classes considered real estate secured are: residential mortgage loans; commercial real estate (“CRE”) loans; business banking CRE; multi-family loans; acquisition, development and construction (“ADC”) loans; homeowner loans, and home equity lines of credit. The classes considered unsecured or secured by other than real estate collateral are: commercial & industrial (“C&I”) loans; payroll finance loans, warehouse lending; factored receivables; equipment finance loans; business banking C&I loans and consumer loans. In all segments or classes, significant loans are reviewed for impairment once they are past due 90 days or more or are classified substandard or doubtful. Generally the Company considers a homogeneous residential mortgage or home equity line of credit to be significant if the Company’s investment in the loan is greater than $500. If a loan is deemed to be impaired in one of the real estate secured segment, it is generally considered collateral dependent. If the value of the collateral securing a collateral dependent impaired loan is less than the loan’s carrying value, a charge-off is recognized equal to the difference between the appraised value and the book value of the loan. Additionally, impairment reserves are recognized for estimated costs to hold and liquidate and for a 10% discount on the appraisal value. The range for costs to hold and liquidate is 12-22% for CRE, business banking CRE and ADC loans and is 7-13% for homeowner loans, home equity lines of credit, and residential mortgage loans. Impaired loans in the real estate secured segments are re-appraised using a summary or drive-by appraisal report every six to nine months.

For loans in the business banking C&I classwe charge-off the full amount of the loan when it becomes 90 days or more past due, or earlier in the case of bankruptcy, after giving effect to any cash or marketable securities pledged as collateral for the loan. For other classes of C&I loans, we prepare a cash flow projection, and charge-off the difference between the net present value of the cash flows discounted at the effective note rate and the carrying value of the loan, and generally recognize a 10% impairment reserve to account for the potential imprecision of our estimates. However, on most of these cases receipt of future cash flows is too unreliable to be considered probable, resulting in the charge-off of the entire balance of the loan. For unsecured consumer loans, charg0- offs are recognized once the loan is 90 to 120 days or more past due or the borrower files for bankruptcy protection.

Subsequent recoveries, if any, are credited to the allowance for loan losses. The allowance for loan losses consists of amounts specifically allocated to non-performing loans and other criticized or classified loans (if any), as well as allowances determined for the pass rated loans in each major loan category. After we establish an allowance for loan losses for loans that are known to be non-performing, criticized or classified, we calculate a percentage to apply to the remaining loan portfolio to estimate the probable incurred losses inherent in that portion of the portfolio. These percentages are determined by management, based on historical loss experience for the applicable loan class, and are adjusted to reflect our evaluation of:

•levels of, and trends in, delinquencies and non-accruals;

•trends in volume and terms of loans;

•effects of any changes in lending policies and procedures;

•experience, ability, and depth of lending management and staff;

•national and local economic trends and conditions;

• concentrations of credit by such factors as location, industry, inter-relationships, and borrower; and for commercial loans, trends in risk ratings.

Commercial real estate loans subject us to the risks that the property securing the loan may not generate sufficient cash flow to service the debt or the borrower may use the cash flow for other purposes. In addition, if necessary, the foreclosure process may be slow and properties may deteriorate in the process. The market values are also subject to a wide variety of factors, including general economic conditions, industry specific factors, environmental factors, interest rates and the availability and terms of credit.

73

STERLING BANCORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

Commercial business lending presents a risk because repayment depends on the successful operation of the business which is subject to a wide range of risks and uncertainties. In addition, the ability to successfully liquidate collateral, if any, is subject to a variety of risks because we must gain control of assets used in the borrower’s business before foreclosing which we cannot be assured of doing, and the value in a foreclosure sale or other means of liquidation is uncertain.

Acquisition, development and construction (“ADC”) lending is considered higher risk and exposes us to greater credit risk than permanent mortgage financing. The repayment of ADC loans depends upon the sale of the property to third parties or the availability of permanent financing upon completion of all improvements. In the event we make a land acquisition loan on property that is not yet approved for the planned development, there is the risk that approvals will not be granted or will be delayed. These events may adversely affect the borrower and the collateral value of the property. Development and construction loans also expose us to the risk that improvements will not be completed on time or in accordance with specifications and projected costs. In addition, the ultimate sale or rental of the property may not occur as anticipated. All of these factors are considered as part of the underwriting, structuring and pricing of the loan. We have deemphasized this type of lending.

When we evaluate residential mortgage loans and home equity loans we weigh both the credit capacity of the borrower and the collateral value of the home. If unemployment or underemployment increase, the credit capacity of underlying borrowers will decrease, which increases our risk. Similarly, as we obtain a mortgage on the property, if home prices decline, we are exposed to risk in both our first mortgage and equity lending programs due to declines in the value of our collateral. We are also exposed to risk because the time to foreclose is significant and has become longer under current market conditions.

(m) Troubled Debt Restructuring

Troubled debt restructuring (“TDR”) is a formally renegotiated loan in which the Bank, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to the borrower that would not have been granted to the borrower otherwise. Not all loans that are restructured as a TDR are classified as non-accrual before the restructuring occurs. Restructured loans can convert from non-accrual to accrual status when said loans have demonstrated performance, generally evidenced by six months of consistent payment performance in accordance with the restructured terms, or by the presence of other significant items.

(n) Federal Reserve Bank of New York and Federal Home Loan Bank Stock

As a member of the Federal Reserve Bank of New York (“FRB”) and the Federal Home Loan Bank of New York (“FHLB”), the Bank is required to hold a certain amount of FRB and FHLB common stock. This stock is a non-marketable equity security and, is reported at cost.

(o) Premises and Equipment

Land is reported at cost, while premises and equipment are reported at cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets, which range from three years for equipment and 40 years for premises. Leasehold improvements are amortized on a straight-line basis over the terms of the respective leases, including renewal options, or the estimated useful lives of the improvements, whichever is shorter. Routine holding costs are charged to expense as incurred, while significant improvements are capitalized. The Company recognizes an impairment charge based on the excess of the carrying amount of assets (generally assets associated with a financial center) over the fair value of the assets. Fair value is determined by third-party valuations and evaluations prepared by management. For the fiscal year ended September 30, 2014, the Company recognized premises and equipment impairment charges of $9.3 million related to financial center consolidations as a result of the Merger. These charges were included in other non-interest expense in the income statement.

(p) Goodwill, Trade Names and Other Intangible Assets

Goodwill resulting from business combinations represents the excess of the purchase price over the fair value of the net assets of businesses acquired. Goodwill and trade names acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually. Goodwill and trade name are the only intangible assets with an indefinite life on our balance sheet.

The Company accounts for goodwill, trade names and other intangible assets in accordance with GAAP, which, in general, requires that goodwill and trade names not be amortized, but rather that they be tested for impairment at least annually at the reporting unit level. The Company has the option to first perform a qualitative assessment to test goodwill for impairment on a reporting-unit-by-reporting-unit basis. If, after performing the qualitative assessment, the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company will perform the two-step process described below:

74

STERLING BANCORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

1. Identify potential impairments by comparing the fair value of a reporting unit to its carrying amount, including goodwill. Goodwill is not considered impaired as long as the fair value of the reporting unit is greater than its carrying value. The second step is only required if a potential impairment to goodwill is identified in step one.

2. Compare the implied fair value of goodwill to its carrying amount, where the implied fair value of goodwill is computed on a residual basis, that is, by subtracting the sum of the fair values of the individual asset categories (tangible and intangible) from the indicated fair value of the reporting unit as determined under step one. If the carrying amount of goodwill exceeds its implied fair value, an impairment loss is recognized. That loss is equal to the carrying amount of goodwill that is in excess of its implied fair value, and it must be presented as a separate line item on financial statements.

At September 30, 2014, the Company assessed goodwill for impairment using qualitative factors and concluded the two-step process was unnecessary.

Core deposit intangibles recorded in acquisitions are amortized to expense using an accelerated method over their estimated lives of 8 to 10 years. Non-compete agreements are amortized on a straight line basis over their estimated life. Prior to March 31, 2014, intangibles related to the naming rights on Provident Bank Ball Park were amortized over 10 years on a straight-line basis. Impairment losses on intangible assets are charged to expense, if and when they occur.

(q) Other Real Estate Owned

Real estate properties acquired through loan foreclosures are recorded initially at estimated fair value, less expected sales costs, with any resulting write-down charged to the allowance for loan losses. Other real estate owned also includes the fair value of the Bank’s financial centers that are held for sale. Any write-down associated with the transfer of a financial center from premises and equipment to other real state owned was included as a charge to other non-interest income in the income statement. Subsequent valuations of other real estate owned are performed by management, and the carrying amount of a property is adjusted by a charge to expense to reflect any subsequent declines in estimated fair value. Fair value estimates are based on recent appraisals and other available information. Routine holding costs are charged to expense as incurred, while significant improvements are capitalized. Gains and losses on sales of real estate owned properties are recognized upon disposition.

(r) Securities Repurchase Agreements

In securities repurchase agreements, the Company transfers securities to a counterparty under an agreement to repurchase the identical securities at a fixed price on a future date. These agreements are accounted for as secured financing transactions since the Company maintains effective control over the transferred securities and the transfer meets other specified criteria. Accordingly, the transaction proceeds are recorded as borrowings and the underlying securities continue to be carried in the Company’s investment securities portfolio. Disclosure of the pledged securities is made in the consolidated balance sheets if the counterparty has the right by contract to sell or re-pledge such collateral.

(s)Income Taxes

Net deferred taxes are recognized for the estimated future tax effects attributable to “temporary differences” between the financial statement carrying amounts and the tax bases of existing assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax laws or rates is recognized in income tax expense in the period that includes the enactment date of the change.

A deferred tax liability is recognized for all temporary differences that will result in future taxable income. A deferred tax asset is recognized for all temporary differences that will result in future tax deductions, subject to reduction of the asset by a valuation allowance in certain circumstances. This valuation allowance is recognized if, based on an analysis of available evidence, we determine that it is more likely than not that some portion, or all of the deferred tax asset will not be realized.

The valuation allowance is subject to ongoing adjustment based on changes in circumstances that affect management’s judgment about the realizability of the deferred tax asset. Adjustments to increase or decrease the valuation allowance are charged or credited, respectively, to income tax expense. The Company recognizes interest and/or penalties related to income tax matters in income tax expense.

The Company evaluates uncertain tax positions in a two step process. The first step is recognition, which requires a determination of whether it is more likely than not that a tax position will be sustained upon examination. The second step is measurement. Under the measurement step, a tax position that meets the more likely than not recognition threshold is measured at the largest amount of

75

STERLING BANCORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more likely than not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. A previously recognized tax position that no longer meets the more likely than not recognition threshold should be derecognized in the first subsequent financial reporting period in which the threshold is no longer met. The Company did not have any such position as of September 30, 2014. (See Note 10 “Income Taxes”).

(t) Bank Owned Life Insurance (BOLI)

The Company owns life insurance policies (purchased and acquired) on certain officers and key executives. Bank owned life insurance is recorded at its cash surrender value (or the amount that can be realized).

(u) Stock-Based Compensation Plans

Compensation expense for stock options, non-vested stock awards/stock units is based on the fair value of the award on the measurement date, which is the date of grant. The expense is recognized ratably over the service period of the award. The fair value of stock options is estimated using a Black-Scholes valuation model. the fair value of non-vested stock awards/stock units is generally the market price of the Company’s common stock on the date of grant.

(v) Earnings Per Share

Basic earnings per share (“EPS”) is computed by dividing net income applicable to common stock by the weighted average number of common shares outstanding during the period.

Diluted EPS is computed in a similar manner, except that the weighted average number of common shares is increased to include incremental shares (computed using the treasury stock method) that would have been outstanding if all potentially dilutive stock options were exercised and unvested restricted stock became vested during the periods. For purposes of computing both basic and diluted EPS, outstanding shares include earned ESOP shares.

(w) Segment Information

Public companies are required to report certain financial information about significant revenue-producing segments of the business for which such information is available and utilized by the chief operating decision maker. Substantially all of the Company’s operations occur through the Bank and involve the delivery of loan and deposit products to customers. Management makes operating decisions and assesses performance based on an ongoing review of its banking operation, which constitutes the Company’s only operating segment for financial reporting purposes.

(x) Loss Contingencies

Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. The Company does not believe there are such matters that will have a material effect on the financial statements.

(y) Derivatives

At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company’s intentions and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), or (3) an instrument with no hedging designation (“stand-alone derivative”). For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same period during which the hedged transaction affects earnings. For both types of hedges, changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as non-interest income. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged.

The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative

76

STERLING BANCORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended.

When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as non-interest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings.

(z) Loan Commitments and Related Financial Instruments

Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. 

(2) Acquisitions

On October 31, 2013, the Company completed the Merger. Under the terms of the Agreement and Plan of Merger, Legacy Sterling shareholders received 1.2625 shares of Legacy Provident’s common stock, par value $0.01 per share, for each share of Legacy Sterling common stock, which resulted in the issuance of 39,057,968 shares. Based on the closing stock price of $11.72 per share on October 31, 2013, the aggregate consideration paid to Legacy Sterling shareholders was $457,781, including $23 paid in cash for fractional shares, and $6 which represented outstanding vested stock options. Consistent with the Company’s strategy, the primary reason for the Merger was the expansion of the Company’s geographic footprint and diversification of its business in the greater New York metropolitan region and beyond.

The assets acquired and liabilities assumed were accounted for under the acquisition method of accounting. The assets and liabilities, both tangible and intangible, were recorded at their fair values as of October 31, 2013 based on management’s best estimate using the information available as of the Merger date. The application of the acquisition method of accounting resulted in the recognition of goodwill of $225,809, a core deposit intangible of $20,089 and a trade name intangible of $20,500.  As of October 31, 2013, Legacy Sterling had assets with a book value of approximately $2,759,628, loans including loans held for sale with a book value of approximately $1,735,142, and deposits with a book value of approximately $2,296,713. The table below summarizes the amounts recognized as of the Merger date for each major class of assets acquired and liabilities assumed, the estimated fair value adjustments and the amounts recorded in the Company’s financial statements at fair value at the Merger date:

77

STERLING BANCORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

Consideration paid through Sterling Bancorp common stock issued to Legacy Sterling shareholders $ 457,781

	Legacy Sterling carrying value			Fair value adjustments				As recorded at acquisition
Cash and cash equivalents	$	277,798		$	—			$	277,798
Investment securities	613,154			(5,243		)	(a)	607,911
Loans held for sale	30,341			—				30,341
Loans	1,704,801			(6,693		)	(b)	1,698,108
Federal Reserve Bank stock	7,680			—				7,680
Bank owned life insurance	55,374			—				55,374
Premises and equipment	21,293			2,301			(c)	23,594
Accrued interest receivable	6,590			—				6,590
Core deposit and other intangibles	—			20,089			(d)	20,089
Trade name intangible	—			20,500			(e)	20,500
Other real estate owned	1,720			4,095			(f)	5,815
Other assets	40,877			(19,944		)	(g)	20,933
Deposits	(2,296,713		)	(477		)	(h)	(2,297,190		)
FHLB borrowings	(100,346		)	(273		)	(i)	(100,619		)
Other borrowings	(62,465		)	—				(62,465		)
Subordinated Debentures	(25,774		)	(753		)	(j)	(26,527		)
Other liabilities	(60,462		)	4,502			(k)	(55,960		)
Total identifiable net assets	$	213,868		$	18,104			$	231,972
Goodwill recorded in the Merger								225,809
Goodwill at September 30, 2013								163,117
Goodwill at September 30, 2014								$	388,926

Explanation of certain fair value related adjustments:

(a) Represents the fair value adjustment on investment securities held to maturity.

(b) Represents the elimination of Legacy Sterling’s allowance for loan losses and an adjustment of the amortized cost of loans to estimated fair value, which includes an interest rate mark and credit mark. Gross loans acquired were $1,723,447; of the acquired loans, $1,699,271 were not considered purchased credit impaired and we recorded a fair value adjustment of $14,440.

(c) Represents an adjustment to reflect the fair value of leasehold improvements.

(d) Represents intangible assets recorded to reflect the fair value of core deposits and below market rent on leased premises. The core deposit asset was recorded as an identifiable intangible asset and will be amortized on an accelerated basis over the estimated average life of the deposit base. The below market rent intangible asset will be amortized on a straight-line basis over the remaining term of the leases.

(e) Represents the estimated fair value of Legacy Sterling’s trade name. This intangible asset will not be amortized and will be reviewed at least annually for impairment.

(f) Represents an adjustment to an acquired property which Legacy Sterling utilized as a financial center and recorded as premises and equipment. The Company included this asset in OREO as it was held for sale. This asset was sold during the fiscal year ended September 30, 2014.

(g) Consists primarily of adjustments in net deferred tax assets resulting from the fair value adjustments related to the acquired assets, liabilities assumed and identifiable intangibles recorded.

(h) Represents the fair value adjustment on deposits as the weighted average interest rate of deposits assumed exceeded the cost of similar funding available in the market at the time of the Merger.

(i) Represents the fair value adjustment on FHLB borrowings as the weighted average interest rate of FHLB borrowings assumed exceeded the cost of similar funding available in the market at the time of the Merger.

78

STERLING BANCORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

(j) Represents the fair value adjustment on subordinated debentures as the weighted average interest rate of the debentures assumed exceeded the cost of similar debt funding available in the market at the time of the Merger.

(k) Represents the fair value of other liabilities assumed at the Merger date.

Except for collateral dependent loans with deteriorated credit quality, the fair values for loans acquired from Legacy Sterling were estimated using cash flow projections based on the remaining maturity and repricing terms. Cash flows were adjusted by estimating future credit losses and the rate of prepayments. Projected monthly cash flows were then discounted to present value using a risk-adjusted market rate for similar loans. For collateral dependent loans with deteriorated credit quality, fair value was estimated by analyzing the value of the underlying collateral, assuming the fair values of the loans were derived from the eventual sale of the collateral. These values were discounted using market derived rates of return, with consideration given to the period of time and costs associated with the foreclosure and disposition of the collateral. There was no carryover of Legacy Sterling’s allowance for loan losses associated with the loans that were acquired, as the loans were initially recorded at fair value on the date of the Merger.

The impaired loans acquired in the Merger as of October 31, 2013 were accounted for in accordance with ASC Topic 310-30 Accounting for Certain Loans or Debt Securities Acquired in a Transfer (“ASC 310-30”) and were comprised of collateral dependent loans with deteriorated credit quality as follows:

	ASC 310-30 loans
Contractual principal balance at acquisition	$	24,176
Principal not expected to be collected (non-accretable discount)	(10,927		)
Expected cash flows at acquisition	13,249
Interest component of expected cash flows (accretable discount)	—
Fair value of acquired loans	$	13,249

The core deposit intangible asset recognized is being amortized over its estimated useful life of approximately 10 years utilizing the accelerated method. Other intangibles consist of below market rents which are amortized over the remaining life of each lease using the straight-line method.

Goodwill is not amortized for book purposes; however, it is reviewed at least annually for impairment and is not deductible for tax purposes.

The fair value of premises and equipment and other real estate owned was estimated using appraisals of like kind properties and assets. Premises, equipment and leasehold improvements will be amortized or depreciated over their estimated useful lives ranging from one to five years for equipment or over the life of the lease for leasehold improvements. Other real estate owned is not amortized and is carried at estimated fair value determined by the appraised value less costs to sell.

The fair value of retail demand and interest bearing deposit accounts was assumed to approximate the carrying value as these accounts have no stated maturity and are payable on demand. The fair value of time deposits was estimated by discounting the contractual future cash flows using market rates offered for time deposits of similar remaining maturities. The fair value of borrowed funds was estimated by discounting the future cash flows using market rates for similar borrowings.

Direct acquisition and integration costs of the Merger were expensed as incurred and totaled $9,455 and $2,772, for the fiscal years ended September 30, 2014 and 2013, respectively. These items were recorded as Merger-related expenses in the income statement. Other direct integration costs of the Merger for the fiscal year ended September 30, 2014, totaled $26,591 and included a charge for asset write-downs, banking systems conversion, employee retention and severance compensation. These items were recorded in non-interest expense in the income statement.

The following table presents selected unaudited pro forma financial information reflecting the Merger assuming it was completed as of October 1, 2012. The unaudited pro forma financial information is presented for illustrative purposes only and is not necessarily indicative of the financial results of the combined companies had the Merger actually been completed at the beginning of the periods presented, nor does it indicate future results for any other interim or full fiscal year period. Pro forma basic and diluted earnings per common share were calculated using the Company’s actual weighted average shares outstanding for the periods presented, plus the incremental shares issued, assuming the Merger occurred at the beginning of the periods presented. The unaudited pro forma information is based on the actual financial statements of the Company for the periods presented, and on the actual financial statements of Legacy Sterling for the

79

STERLING BANCORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

2012 period presented and in 2013 until the date of the Merger, at which time Legacy Sterling’s results of operations were included in the Company’s financial statements.

The unaudited pro forma information set forth below for the fiscal years ended September 30, 2014 and 2013, reflects adjustments related to (a) purchase accounting fair value adjustments; (b) amortization of core deposit and other intangibles; and (c) adjustments to interest income and expense due to amortization of premiums and accretion of discounts. Direct Merger-related expenses and charges incurred in fiscal years ended September 30, 2014 and 2013 to write-down assets and accrue for retention and severance compensation are assumed to have occurred prior to October 1, 2012. Furthermore, the unaudited pro forma information does not reflect management’s estimate of any revenue enhancement opportunities or anticipated potential cost savings.

	Pro forma for the
	fiscal year ended September 30,
	2014		2013
Net interest income	$	198,776	$	180,030
Non-interest income	54,396		65,749
Non-interest expense	187,306		189,136
Net income	44,460		39,190
Pro forma earnings per share:
Basic	$	0.53	$	0.47
Diluted	0.53		0.47

On August 10, 2012, the Company acquired 100% of the outstanding common shares of Gotham Bank of New York (“Gotham”) in exchange for $40,510 in cash. Under the terms of the acquisition, common shareholders received cash equal to 125% of adjusted tangible net worth. The acquisition of Gotham provided a strategic expansion into the metropolitan New York City market, enabling the Company to grow its small-to-middle market commercial business. Gotham delivered a core asset and deposit base, long-term client relationships, an advantageous location in midtown Manhattan and an initial commercial banking team. Gotham’s results of operations are included in the Company’s results for all periods presented in these financial statements.

80

STERLING BANCORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

(3) Securities

A summary of amortized cost and estimated fair value of our securities is presented below:    

	September 30, 2014									September 30, 2013
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value		Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
Available for Sale
Residential MBS:
Agency-backed	$	477,003	$	2,257	$	(1,555	)	$	477,705	$	284,837	$	1,849	$	(4,157	)	$	282,529
CMO/Other MBS	115,395		242		(1,492		)	114,145		169,336		356		(3,038		)	166,654
Total residential MBS	592,398		2,499		(3,047		)	591,850		454,173		2,205		(7,195		)	449,183
Other securities:
Federal agencies	158,114		3		(5,303		)	152,814		273,637		—		(12,090		)	261,547
Corporate	195,547		149		(2,857		)	192,839		118,575		153		(3,795		)	114,933
State and municipal	131,715		3,439		(256		)	134,898		127,324		3,447		(2,041		)	128,730
Trust preferred	37,684		766		(38		)	38,412		—		—		—			—
Total other securities	523,060		4,357		(8,454		)	518,963		519,536		3,600		(17,926		)	505,210
Total available for sale	$	1,115,458	$	6,856	$	(11,501	)	$	1,110,813	$	973,709	$	5,805	$	(25,121	)	$	954,393

	September 30, 2014									September 30, 2013
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value		Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
Held to Maturity
Residential MBS:
Agency-backed	$	142,329	$	1,360	$	(103	)	143,586		130,371		716		(108		)	130,979
CMO/Other MBS	62,690		9		(1,204		)	61,495		25,776		33		(315		)	25,494
Total residential MBS	205,019		1,369		(1,307		)	205,081		156,147		749		(423		)	156,473
Other securities:
Federal agencies	136,413		2,634		(962		)	138,085		77,341		—		(3,458		)	73,883
State and municipal	232,643		6,814		(123		)	239,334		19,011		556		(546		)	19,021
Other	5,000		338		—			5,338		1,500		19		—			1,519
Total other securities	374,056		9,786		(1,085		)	382,757		97,852		575		(4,004		)	94,423
Total held to maturity	$	579,075	$	11,155	$	(2,392	)	$	587,838	$	253,999	$	1,324	$	(4,427	)	$	250,896

In accordance with ASC Subtopic 320-10-25-6, in a significant business combination a company may transfer held to maturity securities to available for sale securities to maintain the company’s existing interest rate risk position or credit risk policy. Based on management’s review of the combined investment securities portfolio and implications for asset and liability management, investment securities totaling $165,230 were transferred from held to maturity to available for sale in connection with the Merger. Investment securities that were transferred included residential mortgage-backed securities, federal agency securities and state and municipal securities and was based mainly on the premium amortization and extension risk inherent in these securities. Concurrent with this repositioning, a total of $221,904 of investment securities were also transferred from available for sale to held to maturity. Substantially all of the securities transferred from available for sale to held to maturity have a maturity date in 2020 or beyond. At the date of transfer, these securities were in an unrealized loss position of $9,657, which will be accreted into interest income using the level yield method over the life of the securities, which is estimated to be approximately 5.3 year. At September 30, 2014 the remaining unrealized loss was $8,947. The

81

STERLING BANCORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

unrealized loss amount is included in accumulated other comprehensive (loss) on an after-tax basis. Management believes the transfers of investment securities discussed above maintain the Company’s interest rate risk position and credit risk profile on a combined basis post-Merger.

The amortized cost and estimated fair value of securities at September 30, 2014 are presented below by contractual maturity. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Residential mortgage-backed securities are shown separately since they are not due at a single maturity date.

	September 30, 2014
	Available for sale				Held to maturity
	Amortized cost		Fair value		Amortized cost		Fair value
Other securities remaining period to contractual maturity:
One year or less	$	2,100	$	2,112	$	8,847	$	8,897
One to five years	141,508		141,748		9,138		9,624
Five to ten years	334,295		328,902		189,494		192,109
Greater than ten years	45,157		46,201		166,577		172,127
Total other securities	523,060		518,963		374,056		382,757
Residential MBS	592,398		591,850		205,019		205,081
Total securities	$	1,115,458	$	1,110,813	$	579,075	$	587,838

Sales of securities for the periods indicated below were as follows:

	For the fiscal year ended September 30,
	2014			2013			2012
Available for sale:
Proceeds from sales	$	529,107		$	339,123		$	344,431
Gross realized gains	1,964			7,709			10,468
Gross realized losses	(1,323		)	(377		)	—
Income tax expense on realized net gains	172			2,282			2,475
Held to maturity: (1)
Proceeds from sales	$	—		$	1,187		$	—
Gross realized gains	—			59			—
Income tax expense on realized gains	—			18			—

⁽¹⁾ During the fiscal year ended September 30, 2013, the Company sold held to maturity securities after the Company had already collected at least 85% of the principal balance outstanding at acquisition.

82

STERLING BANCORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

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

	Continuous unrealized loss position
	Less than 12 months					12 months or longer					Total
	Fair value		Unrealized losses			Fair value		Unrealized losses			Fair value		Unrealized losses
Available for sale
September 30, 2014
Residential MBS:
Agency-backed	$	137,693	$	(516	)	$	41,516	$	(1,039	)	$	179,209	$	(1,555	)
CMO/other MBS	62,507		(446		)	29,499		(1,046		)	92,006		(1,492		)
Total residential MBS	200,200		(962		)	71,015		(2,085		)	271,215		(3,047		)
Other securities:
Federal agencies	6,153		(144		)	146,416		(5,159		)	152,569		(5,303		)
Corporate	97,833		(1,348		)	66,440		(1,509		)	164,273		(2,857		)
State and municipal	8,170		(58		)	12,809		(198		)	20,979		(256		)
Trust preferred	3,907		(38		)	—		—			3,907		(38		)
Total other securities	116,063		(1,588		)	225,665		(6,866		)	341,728		(8,454		)
Total	$	316,263	$	(2,550	)	$	296,680	$	(8,951	)	$	612,943	$	(11,501	)
September 30, 2013
Residential MBS:
Agency-backed	$	137,265	$	(4,157	)	$	—	$	—		$	137,265	$	(4,157	)
CMO/Other MBS	122,324		(2,742		)	7,820		(296		)	130,144		(3,038		)
Total residential MBS	259,589		(6,899		)	7,820		(296		)	267,409		(7,195		)
Other securities:
Federal agencies	261,547		(12,090		)	—		—			261,547		(12,090		)
State and municipal	43,585		(2,033		)	112		(8		)	43,697		(2,041		)
Corporate	95,013		(3,795		)	—		—			95,013		(3,795		)
Total other securities	400,145		(17,918		)	112		(8		)	400,257		(17,926		)
Total	$	659,734	$	(24,817	)	$	7,932	$	(304	)	$	667,666	$	(25,121	)

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Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

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

	Continuous unrealized loss position
	Less than 12 months					12 months or longer					Total
	Fair value		Unrealized losses			Fair value		Unrealized losses			Fair value		Unrealized losses
Held to maturity
September 30, 2014
Residential MBS:
Agency-backed	$	20,616	$	(103	)	$	—	$	—		$	20,616	$	(103	)
CMO/Other MBS	14,928		(368		)	42,646		(836		)	57,574		(1,204		)
Total residential MBS	35,544		(471		)	42,646		(836		)	78,190		(1,307		)
Other securities:
Federal agencies	23,756		(62		)	24,101		(900		)	47,857		(962		)
State and municipal	13,943		(100		)	1,479		(23		)	15,422		(123		)
Total other securities	37,699		(162		)	25,580		(923		)	63,279		(1,085		)
Total	$	73,243	$	(633	)	$	68,226	$	(1,759	)	$	141,469	$	(2,392	)
September 30, 2013
Residential MBS:
Agency-backed	$	10,963	$	(86	)	$	—	$	—		$	10,963	$	(86	)
CMO/Other MBS	31,412		(337		)	—		—			31,412		(337		)
Total residential MBS	42,375		(423		)	—		—			42,375		(423		)
Other securities:
Federal agencies	73,883		(3,458		)	—		—			73,883		(3,458		)
State and municipal	9,530		(546		)	—		—			9,530		(546		)
Total other securities	83,413		(4,004		)	—		—			83,413		(4,004		)
Total	$	125,788	$	(4,427	)	$	—	$	—		$	125,788	$	(4,427	)

Substantially all of the unrealized losses at September 30, 2014 relate to investment grade debt securities and are attributable to changes in market interest rates subsequent to purchase. At September 30, 2014, a total of 99 available for sale securities were in a continuous unrealized loss position for less than 12 months and 118 securities were in an unrealized loss position for 12 months or longer. For securities with fixed maturities, there are no securities past due or securities for which the Company currently believes it is not probable that it will collect all amounts due according to the contractual terms of the investment.

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

84

STERLING BANCORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

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

	September 30,
	2014		2013
Available for sale securities pledged for borrowings, at fair value	$	268,316	$	199,642
Available for sale securities pledged for municipal deposits, at fair value	532,770		580,756
Available for sale securities pledged for customer back-to-back swaps, at fair value	1,934		4,645
Held to maturity securities pledged for borrowings, at amortized cost	58,509		55,497
Held to maturity securities pledged for municipal deposits, at amortized cost	430,611		167,926
Total securities pledged	$	1,292,140	$	1,008,466

(4) Loans

The composition of the Company’s loan portfolio, excluding loans held for sale, was the following:

	September 30,
	2014			2013
Commercial:
Commercial & industrial	$	1,164,537		$	439,787
Payroll finance	145,474			—
Warehouse lending	192,003			—
Factored receivables	181,433			—
Equipment financing	393,027			—
Total commercial	2,076,474			439,787
Commercial mortgage:
Commercial real estate	1,449,052			969,490
Multi-family	368,524			307,547
Acquisition, development & construction	92,149			102,494
Total commercial mortgage	1,909,725			1,379,531
Total commercial and commercial mortgage	3,986,199			1,819,318
Residential mortgage	570,431			400,009
Consumer:
Home equity lines of credit	159,944			156,995
Other consumer loans	43,864			36,576
Total consumer	203,808			193,571
Total loans	4,760,438			2,412,898
Allowance for loan losses	(40,612		)	(28,877		)
Total loans, net	$	4,719,826		$	2,384,021

Total loans include net deferred loan origination costs of $1,261 at September 30, 2014 and $1,201 at September 30, 2013.

Loans acquired from Legacy Sterling were a total of $1,698,108, net of purchase accounting adjustments and were comprised of $1,683,454 of loans that were not considered impaired at the acquisition date and $13,249 of loans that were determined to be impaired at the time of acquisition. The impaired loans were accounted for in accordance with ASC 310-30. At September 30, 2014, the net recorded amount of loans accounted for under ASC 310-30 was $3,763.

85

STERLING BANCORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

Loans acquired in the Merger that were determined to be purchased credit impaired were all considered collateral dependent loans. Therefore, estimated fair value calculations and projected cash flows included only return of principal and no interest income. There was no accretable yield associated with these loans during the twelve months ended September 30, 2014.

At September 30, 2014, the Company pledged loans totaling $1,246,315 to the FHLB as collateral for certain borrowing arrangements. See Note 8. “Borrowings and Senior Notes”.

The following tables set forth the amounts and status of the Company’s loans and TDRs at September 30, 2014 and September 30, 2013:

	September 30, 2014
	Current		30-59 days past due		60-89 days past due		90+ days past due		Non- accrual		Total
Commercial & industrial	$	1,150,854	$	2,316	$	7,043	$	—	$	4,324	$	1,164,537
Payroll finance	145,029		99		—		346		—		145,474
Warehouse lending	192,003		—		—		—		—		192,003
Factored receivables	181,063		—		—		—		370		181,433
Equipment financing	391,914		689		162		—		262		393,027
Commercial real estate	1,433,805		93		4,188		521		10,445		1,449,052
Multi-family	368,393		—		—		—		131		368,524
Acquisition, development & construction	79,732		—		56		—		12,361		92,149
Residential mortgage	547,912		4,023		2,036		534		15,926		570,431
Consumer	193,491		3,087		1,487		—		5,743		203,808
Total loans	$	4,684,196	$	10,307	$	14,972	$	1,401	$	49,562	$	4,760,438
Total TDRs included above	$	17,138	$	346	$	169	$	—	$	11,944	$	29,597
Non-performing loans:
Loans 90+ days past due and still accruing									$	1,401
Non-accrual loans									49,562
Total non-performing loans									$	50,963

	September 30, 2013
	Current		30-59 days past due		60-89 days past due		90+ days past due		Non- accrual		Total
Commercial & industrial	$	438,818	$	178	$	2	$	289	$	500	439,787
Commercial real estate	1,263,933		1,978		2,357		1,574		7,195		1,277,037
Acquisition, development & construction	96,306		768		—		—		5,420		102,494
Residential mortgage	390,072		354		267		1,832		7,484		400,009
Consumer	190,393		566		—		404		2,208		193,571
Total loans	$	2,379,522	$	3,844	$	2,626	$	4,099	$	22,807	$	2,412,898
Total TDRs included above	$	23,754	$	—	$	—	$	141	$	2,199	$	26,094
Non-performing loans:
Loans 90+ days past due and still accruing									$	4,099
Non-accrual loans									22,807
Total non-performing loans									$	26,906

86

STERLING BANCORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

Activity in the allowance for loan losses for the fiscal years ended September 30, 2014, 2013 and 2012 is summarized below:

	September 30, 2014
	Beginning balance		Charge-offs			Recoveries		Net charge-offs			Provision			Ending balance
Commercial & industrial	$	5,302	$	(2,901	)	$	1,073	$	(1,828	)	$	6,062		$	9,536
Payroll finance	—		(758		)	—		(758		)	2,137			1,379
Warehouse lending	—		—			—		—			630			630
Factored receivables	—		(211		)	9		(202		)	1,496			1,294
Equipment financing	—		(1,074		)	194		(880		)	3,501			2,621
Commercial real estate	9,967		(741		)	161		(580		)	1,457			10,844
Multi-family	—		(418		)	92		(326		)	2,193			1,867
Acquisition, development & construction	5,806		(1,479		)	—		(1,479		)	(2,207		)	2,120
Residential mortgage	4,474		(963		)	323		(640		)	2,003			5,837
Consumer	3,328		(786		)	114		(672		)	1,828			4,484
Total loans	$	28,877	$	(9,331	)	$	1,966	$	(7,365	)	$	19,100		$	40,612
Annualized net charge-offs to average loans outstanding														0.24		%

	September 30, 2013
	Beginning balance		Charge-offs			Recoveries		Net charge-offs			Provision		Ending balance
Commercial & industrial	$	4,603	$	(1,354	)	$	410	$	(944	)	$	1,643	$	5,302
Commercial real estate	7,230		(3,725		)	577		(3,148		)	5,885		9,967
Acquisition, development & construction	8,526		(3,422		)	182		(3,240		)	520		5,806
Residential mortgage	4,359		(2,547		)	101		(2,446		)	2,561		4,474
Consumer	3,564		(2,009		)	232		(1,777		)	1,541		3,328
Total loans	$	28,282	$	(13,057	)	$	1,502	$	(11,555	)	$	12,150	$	28,877
Annualized net charge-offs to average loans outstanding													0.52		%

	September 30, 2012
	Beginning balance		Charge-offs			Recoveries		Net charge-offs			Provision			Ending balance
Commercial & industrial	$	5,945	$	(1,526	)	$	1,116	$	(410	)	$	(932	)	$	4,603
Commercial real estate	5,568		(2,707		)	528		(2,179		)	3,841			7,230
Acquisition, development & construction	9,895		(4,124		)	299		(3,825		)	2,456			8,526
Residential mortgage	3,498		(2,551		)	356		(2,195		)	3,056			4,359
Consumer	3,011		(1,901		)	263		(1,638		)	2,191			3,564
Total loans	$	27,917	$	(12,809	)	$	2,562	$	(10,247	)	$	10,612		$	28,282
Annualized net charge-offs to average loans outstanding														0.56		%

Management considers a loan to be impaired when, based on current information and events, it is determined that the Company will not be able to collect all amounts due according to the loan contract, including scheduled interest payments. Determination of impairment is treated the same across all classes of loans on a loan-by-loan basis, except residential mortgage loans and home equity lines of credit with an outstanding balance of $500 or less, which are evaluated for impairment on a homogeneous pool basis. When management identifies a loan as impaired, the impairment is measured based on the present value of expected future cash flows, discounted at the

87

STERLING BANCORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

loan’s effective interest rate, except when the sole remaining source of repayment of the loan is the operation or liquidation of the collateral. In these cases, management uses the current fair value of the collateral, less selling costs when foreclosure is probable, instead of discounted cash flows. If management determines that the value of the impaired loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is generally recognized through a charge-off to the allowance for loan losses. 

When the ultimate collectibility of the total principal of an impaired loan is in doubt and the loan is on non-accrual status, all payments are applied to principal, under the cost recovery method. When the ultimate collectibility of the total principal of an impaired loan is not in doubt and the loan is on non-accrual status, contractual interest is credited to interest income when received, under the cash basis method.

The following table sets forth loans evaluated for impairment by segment and the allowance evaluated by segment at September 30, 2014:

	Loans evaluated by segment								Allowance evaluated by segment
	Individually evaluated for impairment		Collectively evaluated for impairment		Purchased credit impaired loans		Total  loans		Individually evaluated for impairment		Collectively evaluated for impairment		Total allowance for loan losses
Commercial & industrial	$	4,177	$	1,158,837	$	1,523	$	1,164,537	$	—	$	9,536	$	9,536
Payroll finance	—		145,474		—		145,474		—		1,379		1,379
Warehouse lending	—		192,003		—		192,003		—		630		630
Factored receivables	—		181,433		—		181,433		—		1,294		1,294
Equipment financing	—		393,027		—		393,027		—		2,621		2,621
Commercial real estate	13,750		1,435,163		139		1,449,052		—		10,844		10,844
Multi-family	—		368,524		—		368,524		—		1,867		1,867
Acquisition, development & construction	17,766		74,383		—		92,149		—		2,120		2,120
Residential mortgage	515		567,815		2,101		570,431		—		5,837		5,837
Consumer	—		203,808		—		203,808		—		4,484		4,484
Total loans	$	36,208	$	4,720,467	$	3,763	$	4,760,438	$	—	$	40,612	$	40,612

There was no amount included in the allowance for loan losses associated with purchased credit impaired loans at September 30, 2014, as there was no further deterioration in the credit quality of these loans since the Merger date.

The following table sets forth loans evaluated for impairment by segment and the allowance evaluated by segment at September 30, 2013:

	Loans evaluated by segment						Allowance evaluated by segment
	Individually evaluated for impairment		Collectively evaluated for impairment		Total loans		Individually evaluated for impairment		Collectively evaluated for impairment		Total allowance for loan losses
Commercial & industrial	$	2,631	$	437,156	$	439,787	$	249	$	5,053	$	5,302
Commercial real estate	14,091		1,262,946		1,277,037		803		9,164		9,967
Acquisition, development & construction	19,582		82,912		102,494		540		5,266		5,806
Residential mortgage	515		399,494		400,009		—		4,474		4,474
Consumer	2		193,569		193,571		1		3,327		3,328
Total loans	$	36,821	$	2,376,077	$	2,412,898	$	1,593	$	27,284	$	28,877

88

STERLING BANCORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

The following table presents loans individually evaluated for impairment by segment of loans at September 30, 2014 and September 30, 2013:

	September 30, 2014						September 30, 2013
	Unpaid principal balance		Recorded investment		Related allowance		Unpaid principal balance		Recorded investment		Related allowance
With no related allowance recorded:
Commercial & industrial	$	4,177	$	4,177	$	—	$	2,175	$	2,131	$	—
Commercial real estate	13,886		13,750		—		12,451		11,820		—
Acquisition, development & construction	18,676		17,766		—		17,971		17,945		—
Residential mortgage	515		515		—		515		515		—
Subtotal	37,254		36,208		—		33,112		32,411		—
With an allowance recorded:
Commercial & industrial	—		—		—		500		500		249
Commercial real estate	—		—		—		3,150		2,271		803
Acquisition, development & construction	—		—		—		2,753		1,637		540
Consumer	—		—		—		2		2		1
Subtotal	—		—		—		6,405		4,410		1,593
Total	$	37,254	$	36,208	$	—	$	39,517	$	36,821	$	1,593

During the quarter ended March 31, 2014, the Company modified its allowance for loan loss policy to generally require a charge-off of the difference between the book balance of a collateral dependent impaired loan and the net value of the collateral securing the loan.

The following table presents the average recorded investment and interest income recognized related to loans individually evaluated for impairment by segment for the fiscal year September 30, 2014 and 2013:

	September 30, 2014						September 30, 2013
	YTD average 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:
Commercial & industrial	$	4,180	$	—	$	—	$	1,821	$	91	$	86
Commercial real estate	14,016		186		180		17,325		286		275
Acquisition, development & construction	20,525		239		239		12,827		631		587
Residential mortgage	515		—		—		309		—		—
Consumer	—		—		—		61		—		—
Subtotal	39,236		425		419		32,343		1,008		948
With an allowance recorded:
Commercial & industrial	—		—		—		705		—		—
Commercial real estate	—		—		—		6,646		7		7
Acquisition, development & construction	—		—		—		1,104		—		—
Residential mortgage	—		—		—		1,602		14		10
Consumer	—		—		—		228		—		—
Subtotal	—		—		—		10,285		21		17
Total	$	39,236	$	425	$	419	$	42,628	$	1,029	$	965

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STERLING BANCORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

In the fiscal year ended September 30, 2012, the Company recognized interest income of $1,878 including cash-basis interest income recognized of $1,136 on $58,195 of average impaired loans.

Troubled Debt Restructuring:

The following tables set forth the amounts and past due status of the Company’s TDRs at September 30, 2014 and 2013:

	September 30, 2014
	Current loans		30-59 days past due		60-89 days past due		90+ days past due		Non- accrual		Total
Commercial & industrial	$	275	$	—	$	—	$	—	$	1,618	$	1,893
Equipment financing	435		—		—		—		—		435
Commercial real estate	4,838		—		—		—		447		5,285
Acquisition, development & construction	5,732		—		—		—		6,817		12,549
Residential mortgage	5,858		346		169		—		2,841		9,214
Consumer	—		—		—		—		221		221
Total	$	17,138	$	346	$	169	$	—	$	11,944	$	29,597
Allowance for loan losses	$	409	$	—	$	31	$	—	$	451	$	891

	September 30, 2013
	Current loans		30-59 days past due		60-89 days past due		90+ days past due		Non- accrual		Total
Commercial & industrial	$	1,843	$	—	$	—	$	141	$	—	$	1,984
Commercial real estate	5,305		—		—		—		—		5,305
Acquisition, development & construction	14,190		—		—		—		151		14,341
Residential mortgage	2,416		—		—		—		1,792		4,208
Consumer	—		—		—		—		256		256
Total loans	$	23,754	$	—	$	—	$	141	$	2,199	$	26,094
Allowance for loan losses	$	438	$	—	$	—	$	—	$	439	$	877

The Company had outstanding commitments to lend additional amounts of $0 and $4,101 to customers with loans classified as TDRs as of September 30, 2014 and September 30, 2013, respectively.

The following table presents loans by segment modified as TDRs that occurred during the twelve months ended September 30, 2014 and 2013:

	September 30, 2014					September 30, 2013
		Recorded investment					Recorded investment
	Number	Pre- modification		Post- modification		Number	Pre- modification		Post- modification
Commercial & industrial	—	$	—	$	—	5	$	2,001	$	2,001
Commercial real estate	—	—		—		2	2,682		2,682
Acquisition, development & construction	2	1,060		1,060		7	5,772		5,772
Residential mortgage	—	—		—		6	1,436		1,372
Consumer	—	—		—		1	302		302
Total restructured loans	2	$	1,060	$	1,060	21	$	12,193	$	12,129

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STERLING BANCORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

There were 12 TDRs in the fiscal year ended September 30, 2012, with a pre-modification balance of $9,160 and a post-modification balance of $8,945.

The TDRs presented above increased the allowance for loan losses by $0, $300 and $134 and resulted in charge-offs of $0, $110 and $0 for the years ended September 30, 2014, 2013, and 2012, respectively.

There were no TDRs that were modified during the last twelve months that had subsequently defaulted during the year.

Credit Quality Indicators

As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to (i) the weighted-average risk grade of commercial loans, (ii) the level of classified commercial loans, (iii) the delinquency status of consumer loans (residential mortgage and home equity lines of credit (“HELOC”)), (iv) net charge-offs, (v) non-performing loans (see details above) and (vi) the general economic conditions in the greater New York metropolitan region. The Bank analyzes loans individually by classifying the loans as to credit risk, except residential mortgage loans and consumer loans, which are evaluated on a homogeneous pool basis unless the loan balance is greater than $500. This analysis is performed at least quarterly on all criticized/classified loans. The Bank uses the following definitions of risk ratings:

1 and 2 - These grades include loans that are secured by cash, marketable securities or cash surrender value of life insurance policies.

3 - This grade includes loans to borrowers with strong earnings and cash flow and that have the ability to service debt. The borrower’s assets and liabilities are generally well matched and are above average quality. The borrower has ready access to multiple sources of funding including alternatives such as term loans, private equity placements or trade credit.

4 - This grade includes loans to borrowers with above average cash flow, adequate earnings and debt service coverage ratios. The borrower generates discretionary cash flow, assets and liabilities are reasonably matched, and the borrower has access to other sources of debt funding or additional trade credit at market rates.

5 - This grade includes loans to borrowers with adequate earnings and cash flow and reasonable debt service coverage ratios. Overall leverage is acceptable and there is average reliance upon trade debt. Management has a reasonable amount of experience and depth, and owners are willing to invest available outside capital as necessary.

6 - This grade includes loans to borrowers where there is evidence of some strain, earnings are inconsistent and volatile, and the borrowers’ outlook is uncertain. Generally such borrowers have higher leverage than those with a better risk rating. These borrowers typically have limited access to alternative sources of bank debt and may be dependent upon debt funding for working capital support.

7 - Special Mention (OCC definition) - Other Assets Especially Mentioned (OAEM) are loans that have potential weaknesses which may, if not reviewed or corrected, weaken the asset or inadequately protect the Bank’s credit position at some future date. Such assets constitute an undue and unwarranted credit risk but not to the point of justifying a classification of “Substandard.” The credit risk may be relatively minor yet constitute an unwarranted risk in light of the circumstances surrounding a specific asset.

8 - Substandard (OCC definition) - These loans are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a well-defined weakness that jeopardizes the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some losses if the deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets classified as substandard.

9 - Doubtful (OCC definition)- These loans have all the weakness inherent in one classified as “Substandard” with the added characteristics that the weakness makes collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors which may work to the advantage and strengthening of the asset, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors include proposed merger, acquisition, or liquidating procedures, capital injection, perfecting liens or additional collateral and refinancing plans.

10 - Loss (OCC definition) - These loans are charged-off because they are determined to be uncollectible and unbankable assets. This classification does not reflect that the asset has no absolute recovery or salvage value, but rather it is not practical or desirable to defer writing-off this asset even though partial recovery may be effected in the future. Losses should be taken in the period in which they are determined to be uncollectible.

91

STERLING BANCORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

Loans that are risk-rated 1 through 6 as defined above are considered to be pass-rated loans. As of September 30, 2014 and 2013, the risk category of gross loans by segment was as follows:

	September 30, 2014						September 30, 2013
	Special mention		Substandard		Doubtful		Special mention		Substandard		Doubtful
Commercial & industrial	$	24,980	$	5,749	$	—	$	3,545	$	3,855	$	365
Payroll finance	—		346		—		—		—		—
Factored receivables	46		370		—		—		—		—
Equipment financing	—		262		—		—		—		—
Commercial real estate	8,720		26,826		—		7,279		24,561		227
Multi-family	—		131		—		—		—		—
Acquisition, development & construction	1,040		16,456		—		1,867		19,410		—
Residential mortgage	2,988		16,981		—		824		9,786		—
Consumer	1,779		5,972		—		15		2,891		—
Total	$	39,553	$	73,093	$	—	$	13,530	$	60,503	$	592

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STERLING BANCORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

(5) Premises and Equipment, Net

Premises and equipment are summarized as follows:

	September 30,
	2014			2013
Land and land improvements	$	6,048		$	7,282
Buildings	22,888			30,558
Leasehold improvements	32,963			8,136
Furniture, fixtures and equipment	50,343			40,164
Total premises and equipment, gross	112,242			86,140
Accumulated depreciation and amortization	(68,956		)	(49,620		)
Total premises and equipment, net	$	43,286		$	36,520

(6) Goodwill and Other Intangible Assets

Goodwill and other intangible assets are presented in the tables below. The increase in goodwill and certain other intangible assets in fiscal 2014 was related to the acquisition of Legacy Sterling, which is described more fully in Note 2. “Acquisitions.”

Goodwill

The change in goodwill in the fiscal years ended September 30, 2014 and 2013 was as follows:

	September 30,
	2014		2013
Beginning of year balance	$	163,117	$	163,247
Acquisitions	225,809		(130		)
Disposals	—		—
End of year balance	$	388,926	$	163,117

During the fiscal year ended September 30, 2013, the Company decreased the goodwill recorded in connection with the Gotham Bank acquisition by $130 based on the completion of the analysis of fair value of the net assets acquired.

Other intangible assets

The balance of other intangible assets at September 30, 2014 and 2013 was as follows:

	Gross intangible assets		Accumulated amortization			Net intangible assets
September 30, 2014
Core deposits	$	24,182	$	(4,694	)	$	19,488
Non-compete agreements	10,308		(5,490		)	4,818
Trade name	20,500		—			20,500
Fair value of below market leases	725		(253		)	472
Provident Bank Ball Park naming rights	2,414		(2,414		)	—
	$	58,129	$	(12,851	)	$	45,278
September 30, 2013
Core deposits	$	4,818	$	(798	)	$	4,020
Provident Bank Ball Park naming rights	2,414		(543		)	1,871
	$	7,232	$	(1,341	)	$	5,891

Included in other intangible assets was an intangible asset associated with the naming rights to Provident Bank Ball Park which is located in Rockland County, New York. At the time of the Merger, the Company wrote-off the remaining book value.

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STERLING BANCORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

Other intangible assets are amortized on a straight-line or accelerated bases over their estimated useful lives, which range from one to 10 years. Amortization expense related to core deposits, non-compete agreements and naming rights totaled $9,408, $1,296 and $1,245 for the fiscal years ended September 30, 2014, 2013, and 2012, respectively. The amortization of the fair value of below market leases was included in rent expense for the fiscal year ended September 30, 2014. The estimated aggregate future amortization expense for other intangible assets remaining as of September 30, 2014 was as follows:

	Amortization expense
2015	$	6,113
2016	5,042
2017	2,598
2018	2,178
2019	2,058
Thereafter	6,786
	$	24,775

(7) Deposits

Deposit balances at September 30, 2014 and 2013 are summarized as follows:

	September 30,
	2014		2013
Non-interest bearing demand	$	1,799,685	$	943,934
Interest bearing demand	766,852		434,398
Savings	698,443		580,125
Money market	1,595,803		735,709
Certificates of deposit	437,871		268,128
Total deposits	$	5,298,654	$	2,962,294

Municipal deposits totaled $992,761 and $757,065 at September 30, 2014 and September 30, 2013, respectively. See Note 3. “Securities” for the amount of securities that were pledged as collateral for municipal deposits and other purposes.

Certificates of deposit had remaining periods to contractual maturity as follows:

	September 30,
	2014		2013
Remaining period to contractual maturity:
Less than one year	$	340,813	$	239,104
One to two years	53,319		17,248
Two to three years	35,632		5,185
Three to four years	4,000		3,062
Four to five years	4,107		3,529
Total certificates of deposit	$	437,871	$	268,128

94

STERLING BANCORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

Certificates of deposit accounts with a denomination of $100 or more totaled $290,483 and $104,225 at September 30, 2014 and 2013, respectively. Listed below are the Company’s brokered deposits at September 30, 2014 and 2013:

	September 30,
	2014		2013
Money market	$	84,022	$	34,571
Reciprocal CDAR’s 1	34,017		1,343
CDAR’s one way	3,028		768
Total brokered deposits	$	121,067	$	36,682

1 Certificate of deposit account registry service

(8) Borrowings and Senior Notes

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

	September 30,
	2014				2013
	Amount		Rate		Amount		Rate
By type of borrowing:
FHLB advances and overnight	$	795,028	1.75	%	$	442,602	2.77	%
Repurchase agreements	25,639		0.39		20,351		0.88
Fed funds purchased	20,000		0.31		—		—
Senior notes	98,402		5.98		98,033		5.98
Total borrowings	$	939,069	2.12	%	$	560,986	3.26	%
By remaining period to maturity:
Less than one year	$	370,365	0.69	%	$	158,897	0.95	%
One to two years	140,344		0.59		78,717		1.97
Two to three years	257,442		3.52		191		5.32
Three to four years	168,402		4.38		202,414		4.21
Four to five years	—		—		118,033		5.57
Greater than five years	2,516		4.92		2,734		4.92
Total borrowings	$	939,069	2.12	%	$	560,986	3.26	%

FHLB advances and overnight. As a member of the FHLB, the Bank may borrow up to the amount of eligible mortgages and securities that have been pledged as collateral under a blanket security agreement. As of September 30, 2014 and 2013, the Bank had pledged residential mortgage and commercial real estate loans totaling $1,246,315 and $784,422, respectively. The Bank had also pledged securities to secure borrowings, which are disclosed in Note 3. “Securities.” As of September 30, 2014, the Bank may increase its borrowing capacity by pledging securities and mortgage loans not required to be pledged for other purposes with a collateral value of $703,486.

FHLB borrowings which are putable quarterly at the discretion of the FHLB were $200,000 at September 30, 2014 and 2013. These borrowings have a weighted average remaining term to the contractual maturity dates of approximately 2.56 years and 3.56 years and a weighted average interest rates of 4.23% at both September 30, 2014 and 2013, respectively.

Repurchase agreements. Securities sold under agreements to repurchase at September 30, 2014 are secured short-term borrowings that mature in one to 17 days. Repurchase agreements are stated at the amount of cash received in connection with these transactions. The Bank may be required to provide additional collateral based on the fair value of the underlying securities. The Bank had two$10,000 long-term repurchase agreements which were redeemed during the fiscal year ended September 30, 2014.

Fed funds purchased. Fed funds purchased are short-term borrowings that typically mature daily and are recorded at the amount of funds received.

95

STERLING BANCORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

Revolving line of credit. On September 5, 2014, the Company entered into a $15,000 revolving line of credit facility with a financial institution that matures on September 5, 2015. The balance was zero at September 30, 2014. The use of proceeds are for general corporate purposes. The line and accrued interest is payable at maturity, and is required to maintain a zero balance for at least 30 days during its term. The line bears interest at one-month LIBOR plus 1.25%. Under the terms of the facility, the Company and the Bank must maintain certain ratios related to capital, non-performing assets to capital, reserves to non-performing loans and debt service coverage. The Company and the Bank were in compliance with all requirements of the line at September 30, 2014.

Senior Notes. On July 2, 2013, the Company issued $100,000 principal amount of 5.50% fixed rate Senior Notes through a private placement at a discount of 1.75%. The cost of issuance was $303, and at September 30, 2014 and 2013 the unamortized discount was $1,597 and $1,967, respectively, which will be accreted to interest expense over the life of the Senior Notes, resulting in an effective yield of 5.98%. Interest is due semi-annually in arrears on January 2 and July 2 until maturity on July 2, 2018. The Senior Notes were issued under an indenture (the “Indenture”) between the Company and U.S. Bank National Association, as trustee.

The Senior Notes are unsecured obligations of the Company and rank equally with all other unsecured unsubordinated indebtedness, and will be effectively subordinated to any secured indebtedness to the extent of the value of the collateral securing such indebtedness, and structurally subordinated to the existing and future indebtedness of the Company’s subsidiaries.

The indenture includes provisions that, among other things, restrict the Company’s ability to dispose of or issue shares of voting stock of a principal subsidiary bank (as defined in the Indenture) or transfer the entirety of, or a substantial amount of, the Company’s assets or merge or consolidate with or into other entities, without satisfying certain conditions.

The Senior Notes will not be registered under the Securities Act and may not be offered or sold in the U.S. absent registration or an applicable exemption from registration requirements.

Trust preferred capital securities. In connection with the Merger, the Company assumed $25,000 of trust preferred capital securities (the “Subordinated Debentures”). The capital securities, which were due March 31, 2032 and bore interest at 8.375%, were issued by Sterling Bancorp Trust I, a wholly-owned, non-consolidated statutory business trust. The trust was formed with initial capitalization of common stock and for the exclusive purpose of issuing the capital securities. The trust used the proceeds from the issuance of the capital securities to acquire $25,774 junior subordinated debenture securities that paid interest at 8.375% issued by the Company. The Company was not considered the primary beneficiary of the trust (which is a VIE); therefore, the trust was not consolidated in the Company’s financial statements and the subordinated debentures were recorded as a liability. The debt securities were due concurrently with the capital securities.

On June 1, 2014, the Company redeemed all of the outstanding capital securities at a redemption price equal to 100% of the liquidation amount of the securities plus accumulated and unpaid interest, with such redemption payment made on June 2, 2014. In connection with the redemption, the Company eliminated the unamortized premium recorded to reflect the fair value of the Subordinated Debentures at the date of the Merger. The balance of the unamortized premium was $712 and this amount was recognized as a gain on extinguishment of debt and recorded as a reduction of other non-interest expense in the fiscal year ended September 30, 2014.

(9) Derivatives

The Company has two interest rate caps to offset a portion of interest rate exposure should short-term rate increases lead to rapid increases in general levels of market interest rates on deposits. These caps are linked to LIBOR and have strike prices of 3.5% and 4.0%. These caps are stand alone derivatives and therefore changes in fair value are reported in current period earnings. Losses recognized in earnings were $0 and $2 in fiscal 2014 and 2013, respectively. The fair value of the interest rate caps at September 30, 2014, is reflected in other assets with a corresponding credit (charge) to income recorded as a gain (loss) to non-interest income.

The Company has entered into certain interest rate swap contracts that are not designated as hedging instruments. These derivative contracts relate to transactions in which the Company enters into an interest rate swap with a customer while at the same time entering into an offsetting interest rate swap with another financial institution. In connection with each swap transaction, the Company agrees to pay interest to the customer on a notional amount at a variable interest rate and receive interest from the customer on a similar notional amount at a fixed interest rate. At the same time, the Company agrees to pay another financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. The transaction allows the Company’s customers to effectively convert a variable rate loan to a fixed rate. Because the Company acts as an intermediary for its customer, changes

96

STERLING BANCORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

in the fair value of the underlying derivative contracts for the most part offset each other and do not significantly impact the Company’s results of operations.

The Company pledged collateral to another financial institution in the form of investment securities with an amortized cost of $5,034 and a fair value of $4,836 as of September 30, 2014. The Company does not typically require its commercial customers to post cash or securities as collateral on its program of back-to-back swaps. However, certain language is written into the International Swaps and Derivatives Association agreement and loan documents where, in default situations, the Company is allowed to access collateral supporting the loan relationship to recover any losses suffered on the derivative asset or liability. The Company may need to post additional collateral to swap counterparties in the future in proportion to potential increases in unrealized loss positions.

Summary information as of September 30, 2014 and 2013 regarding these derivatives is presented below:

	Notional amount			Average maturity (in years)	Weighted average fixed rate		Weighted average variable rate	Fair value
September 30, 2014
Interest rate caps	$	50,000		0.18	3.75	%	NA	$	—
3rd party interest rate swap	50,729			4.86	4.20		1 m Libor + 2.44	1,096
Customer interest rate swap	(50,729		)	4.86	4.20		1 m Libor + 2.44	(1,096		)
September 30, 2013
Interest rate caps	$	50,000		1.18	3.75	%	NA	$	—
3rd party interest rate swap	54,180			5.76	4.22		1 m Libor + 2.45	997
Customer interest rate swap	(54,180		)	5.76	4.22		1 m Libor + 2.45	(997		)

The Company enters into various commitments to sell real estate loans into the secondary market. Such commitments are considered to be derivative financial instruments; however, the fair value of these commitments is not material.

97

STERLING BANCORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

(10) Income Taxes

Income tax expense for the periods indicated consists of the following:

	For the year ended September 30,
	2014			2013		2012
Current tax expense:
Federal	$	11,613		$	9,146	$	5,538
State	1,598			1,549		685
Total current tax expense	13,211			10,695		6,223
Deferred tax (benefit) expense:
Federal	(2,745		)	522		(261		)
State	(314		)	197		197
Total deferred tax (benefit) expense	(3,059		)	719		(64		)
Total income tax expense	$	10,152		$	11,414	$	6,159

Actual income tax expense differs from the tax computed based on pre-tax income and the applicable statutory Federal tax rate for the following reasons:

	For the year ended September 30,
	2014			2013			2012
Tax at Federal statutory rate of 35%	$	13,241		$	12,833		$	9,116
State and local income taxes, net of Federal tax benefit	834			1,135			573
Tax-exempt interest, net of disallowed interest	(3,824		)	(2,192		)	(2,448		)
BOLI income	(1,110		)	(699		)	(718		)
Non-deductible acquisition related costs	712			416			418
Low income housing tax credits	(165		)	—			—
Other, net	464			(79		)	(782		)
Actual income tax expense	$	10,152		$	11,414		$	6,159
Effective income tax rate	26.8		%	31.1		%	23.6		%

98

STERLING BANCORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

The following table presents the Company’s deferred tax position at September 30, 2014 and 2013:

	September 30,
	2014		2013
Deferred tax assets:
Allowance for loan losses	$	17,272	$	11,809
Deferred compensation	649		798
Other accrued compensation and benefits	5,418		1,497
Accrued post retirement expense	2,705		1,441
Deferred rent	—		1,059
Intangible assets	2,439		—
Other comprehensive loss (securities)	5,777		7,844
Other comprehensive loss (defined benefit plans)	2,371		2,638
Depreciation of premises and equipment	433		—
State NOL carryforward	1,431		—
Other	3,511		2,172
Total deferred tax assets	42,006		29,258
Deferred tax liabilities:
Undistributed earnings of subsidiary not consolidated for tax return purposes (income from REITs)	9,303		4,483
Prepaid pension costs	10,579		3,758
Purchase accounting adjustments	16,056		1,057
Depreciation and lease adjustments	—		2,686
Deferred rent	163		—
Intangibles amortization	—		112
Other	2,557		2,207
Total deferred tax liabilities	38,658		14,303
Net deferred tax asset	$	3,348	$	14,955

Based on the Company’s consideration of historical and anticipated future pre-tax income, as well as the reversal period for the items giving rise to the deferred tax assets and liabilities, a valuation allowance for deferred tax assets was not considered necessary at either September 30, 2014 or 2013.

Retained earnings at September 30, 2014 and 2013 included approximately $9,313 for which no provision for federal income taxes has been made. This amount represents the tax bad debt reserve at December 31, 1987, which is the end of the Bank’s base year for purposes of calculating the bad debt deduction for tax purposes. If this portion of retained earnings is used in the future for any purposes other than to absorb bad debts, the amount used will be added to future taxable income. The unrecorded deferred tax liability on the above amount at both September 30, 2014 and 2013 was approximately $3,260.

At September 30, 2014 the Company has state and local NOL carryforwards that were acquired from Legacy Sterling as part of the Merger on October 31, 2013. The utilization of state and local NOLs are subject to an annual limitation. Based on our projections, we believe the state and local NOL carryforwards will be fully utilized before expiration.

At September 30, 2014and 2013, the Company had no unrecognized tax benefits or accrued interest and penalties recorded. The Company does not expect the total amount of unrecognized tax benefits to significantly increase within the next twelve months. The Company records interest and penalties as a component of income tax expense.

Sterling and its subsidiaries are subject to U.S. federal income tax as well as income tax of the state of New York and various other states. The Company is no longer subject to examination by Federal and New York taxing authorities for tax years prior to 2011.

(11) Employee Benefit Plans and Stock-Based Compensation Plans

99

STERLING BANCORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

(a)Pension Plans

On May 31, 2014, the Company merged the Provident Bank Benefit Pension Plan (the “legacy Provident Plan”) and the Legacy Sterling/Sterling National Bank Employees’ Retirement Plan (the “Legacy Sterling Plan”) and formed the Sterling National Bank Defined Benefit Pension Plan. The legacy Provident Plan covers employees that were eligible as of September 30, 2006. The Board of Directors approved a curtailment to the legacy Provident Plan effective September 30, 2006. At that time, all benefit accruals for future service ceased and no new participants were allowed to enter the Plan. The purpose of the Plan curtailment was to afford flexibility in the retirement benefits the Company provides, while preserving all retirement plan participants’ earned and vested benefits, and to manage the increasing costs associated with the defined benefit pension plan. The Legacy Sterling Plan was a defined benefit plan that covered eligible employees of Legacy Sterling and Legacy Sterling National Bank and certain of its subsidiaries who were hired prior to January 3, 2006 and who attained age 21 prior to January 3, 2007. Effective October 31, 2013, the Legacy Sterling Plan was amended and the accrued benefit of each eligible actively employed participant that had not yet commenced benefits was increased by approximately 4.4% and the accrual of future service benefits ceased. 

The following is a summary of changes in the projected benefit obligation and fair value of plan assets. The Company uses a September 30 measurement date for its pension plans.

	September 30,
	2014			2013
Changes in projected benefit obligation:
Beginning of year balance	$	31,705		$	35,471
Benefit obligation of the Legacy Sterling Plan at October 31, 2013	52,296			—
Service cost	—			—
Interest cost	2,779			1,452
Actuarial loss (gain)	9,460			(3,672		)
Partial settlement	(44,774		)	—
Benefits and distributions paid	(1,748		)	(1,546		)
End of year balance	49,718			31,705
Changes in fair value of plan assets:
Beginning of year balance	35,417			32,657
Fair value of the Legacy Sterling Plan assets at October 31, 2013	71,538			—
Actual gain on plan assets	8,137			4,306
Employer contributions	—			—
Partial settlement	(44,774		)	—
Benefits and distributions paid	(1,748		)	(1,546		)
End of year balance	68,570			35,417
Funded status at end of year	$	18,852		$	3,712

During the year ended September 30, 2014 the Company settled a portion of the pension obligation associated with retired employees in the amount of $44,774 through the purchase of annuities.

The over-funded status of the Sterling National Bank Defined Benefit Pension Plan is included in other assets in the Consolidated Balance Sheets.

The components of net periodic pension expense were as follows:

100

STERLING BANCORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

	For the year ended September 30,
	2014			2013			2012
Service cost	$	—		$	—		$	—
Interest cost	2,779			1,452			1,501
Expected return on plan assets	(3,380		)	(2,462		)	(2,125		)
Amortization of unrecognized actuarial loss	236			2,062			2,316
Partial settlement charge	3,922			—			—
Net periodic pension expense	$	3,557		$	1,052		$	1,692

Net periodic pension expense is included in compensation and benefits in the Consolidated Income Statements.

The amount of unrecognized actuarial loss and prior service cost that is expected to be amortized to net periodic pension expense during the fiscal year ending September 30, 2015 is $0.

Amounts recognized in accumulated other comprehensive (loss) at September 30, 2014 and 2013 consisted of:

	September 30,
	2014			2013
Unrecognized actuarial loss	$	(6,024	)	$	(5,479	)
Deferred tax asset	2,556			2,225
Net amount recognized in accumulated other comprehensive (loss)	$	(3,468	)	$	(3,254	)

The principal actuarial assumptions used at September 30, 2014 and 2013 were as follows:

	September 30,
	2014		2013
Projected benefit obligation:
Discount rate	4.50	%	5.20	%
Net periodic pension cost:
Discount rate	4.50	%	5.20	%
Long-term rate of return on plan assets	4.00	%	7.75	%

The discount rate used in the measurement of the projected benefit obligation is determined by comparing the expected future retirement benefit payment cash flows of the Plan to the cash flows of a high-quality corporate bond portfolio as of the measurement date. The expected long-term rate of return on Plan assets reflect earnings expectations on existing Plan assets.  In estimating this rate, appropriate consideration was given to historical returns earned by Plan assets in the funds and the rates of return expected to be available for reinvestment.  The rate of return estimated at September 30, 2014 reflects the shift in the allocation of the Plan assets to a liability driven investment strategy which is more heavily weighted towards long-term fixed income assets with a similar duration profile to the Plan liabilities.  

Estimated future benefit payments are the following for the years ending September 30:

2015	$	726
2016	902
2017	1,079
2018	1,625
2019	1,851
2020 - 2024	13,461

101

STERLING BANCORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

The Company’s funding policy is to contribute annually an amount sufficient to meet statutory minimum funding requirements, but not in excess of the maximum amount deductible for Federal income tax purposes. Contributions are intended to provide not only for benefits attributed to service to date, but also for benefits expected to be earned in the future.

The following is a description of the valuation methodologies used for assets measured at fair value. There were no changes in the methodologies used at September 30, 2014 and 2013. See Note 17. “Fair Value Measurements” for a detailed discussion of the three levels of inputs that may be used to measure fair values.

The fair value of the Plan assets is based on the lowest level of any input that is significant to the fair value measurement within the fair value hierarchy. Plan assets consisted of pooled separate accounts at September 30, 2014. The fair value of shares of units of participation in pooled separate accounts are based on the net asset values of the funds reported by the fund managers as of September 30, 2014 and recent transaction prices (Level 2 inputs). Assets allocated to these pooled separate accounts can include, but are not limited to stocks (both domestic and foreign), bonds and mutual funds. While some pooled separate accounts may have publicly quoted prices (Level 1 inputs), the units of separate accounts are not publicly quoted and are therefore classified as Level 2. The fair value of Plan assets by asset category as of September 30, 2014 and 2013, was the following:

	September 30, 2014
	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Asset category:
Intermediate term bond	$	8,629	$	—	$	8,629	$	—
Long-term bond	59,892		—		59,892		—
Total assets	$	68,521	$	—	$	68,521	$	—

	September 30, 2013
	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Asset category:
Large cap U.S. equity	$	16,378	$	—	$	16,378	$	—
Small and mid cap U.S. equity	4,443		—		4,443		—
International equity	3,654		—		3,654		—
Total equity	24,475		—		24,475		—
Total balanced asset allocation	1,691		—		1,691		—
High yield bond	1,018		—		1,018		—
Intermediate term bond	8,233		—		8,233		—
Total fixed income	9,251		—		9,251		—
Total assets	$	35,417	$	—	$	35,417	$	—

The Company’s policy is to invest the Plan assets in a prudent manner for the purpose of providing benefit payments to participants and offsetting reasonable expenses of administration. Historically, the Company’s investment strategy was designed to provide a total return that, over the long-term, placed a strong emphasis on the preservation of capital and compliance with applicable regulations and laws. Management intends to terminate the Plan in fiscal 2015 subject to obtaining required approvals from the Internal Revenue Service and other regulators. Therefore, the investment allocation of Plan assets was shifted in fiscal 2014 to a liability driven investment strategy which is more heavily weighted towards long-term fixed income assets with a similar duration profile to the Plan liabilities. As of September 30, 2014, the majority of the Plan assets were invested in funds specifically designed for liability driven investment strategies and had a weighted average expected rate of return of 4.0%.

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Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

The Plan’s investment policy prohibits the direct investment in real estate but allows the Plan’s mutual funds to include a small percentage of real estate related investments. The investment strategy utilizes asset allocation as a principal determinant for establishing an appropriate risk profile. Weighted average pension plan asset allocations based on the fair value of such assets at September 30, 2014 and September 30, 2013 and target allocation ranges for 2014, by asset category, are as follows:

	2014		2013		Target allocation range 2014	Weighted average expected rate of return
Large cap U.S. equity	—	%	44	%		—	%
Small and mid cap U.S. equity	—		11			—
International equity	—		10			—
Total equity	—		65		0%	—
Total balanced asset allocation	—		5			—
High yield bond	—		3			—
Intermediate term bond	13		27			—
Long-term bond	87		—			—
Total fixed income	100		30		95% - 100%	4.0
Total assets	100	%	100	%		4.0	%
Cash	—		—		0% to 5%	—

There were no pension plan assets consisting of Sterling Bancorp equity securities (common stock) at September 30, 2014 or at September 30, 2013.

The Company makes contributions to its funded qualified pension plans as required by government regulation or as deemed appropriate by management after considering the fair value of plan assets, expected returns on such assets, and the present value of benefit obligations of the plans. At this time, the Company has not determined whether contributions in fiscal 2015 will be made.

(b) Other Post Retirement Benefit Plans

The Company provides other post retirement benefit plans, which are unfunded. Included in the tables below is information regarding the Company’s optional medical, dental and life insurance benefits to retirees plan, Supplemental Executive Retirement Plan to certain former directors and officers of the Company, life insurance benefits to certain directors, officers and former officers of Legacy Sterling.

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Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

Data relating to other post retirement benefit plans is the following:

	September 30,
	2014			2013
Changes in accumulated post retirement benefit obligation:
Beginning of year	$	3,302		$	3,103
Obligations assumed from Legacy Sterling	9,644			—
Service cost	51			48
Interest cost	683			134
Actuarial loss	79			177
Curtailment (gain)	(2,485		)	—
Benefits paid	(284		)	(160		)
End of year	10,990			3,302
Changes in fair value of plan assets:
Beginning of year	$	—		$	—
Employer contributions	284			160
Plan participants’ contributions	—			—
Benefits paid	(284		)	(160		)
End of year	—			—
Funded status	$	(10,990	)	$	(3,302	)

Components of net periodic (benefit) expense for other post retirement benefit plans was the following:

	For the year ended September 30,
	2014			2013		2012
Service cost	$	51		$	48	$	46
Interest cost	683			134		125
Amortization of transition obligation	34			24		24
Amortization of prior service cost	270			47		47
Amortization of net actuarial (gain) loss	(45		)	2		(25		)
Curtailment (gain)	(2,485		)	—		—
Total	$	(1,492	)	$	255	$	217

The Company terminated the optional medical and dental plan to retirees effective September 30, 2014 and all payments under the plan will cease on December 31, 2014. Net periodic benefit expense for other post retirement benefit plans is included in non-interest expense - compensation and employee benefits for the fiscal years ended September 30, 2014, 2013 and 2012. The Company’s liability under its other post retirement benefit plans is included in other liabilities in the balance sheet at September 30, 2014 and 2013.

Estimated future benefit payments are the following for the years ending September 30:

2015	$	660
2016	231
2017	271
2018	319
2019	373
2020 - 2024	2,370

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Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

Plan assumptions for the other post retirement medical, dental and vision plans include the following:

	For the year ended September 30,
	2014		2013
Medical trend rate next year	4.5	%	4.5	%
Ultimate trend rate	4.5		4.5
Discount rate	3.50% to 4.27%		4.2
Discount rate used to value periodic cost	3.50% to 4.20%		4.1

There is no impact of a 1% increase or decrease in health care trend rate due to the Company’s cap on cost.

(c) Employee Savings Plan

The Company also sponsors a defined contribution plan established under Section 401(k) of the IRS Code. Eligible employees may elect to contribute up to 50.0% of their compensation to the plan. The Company currently makes matching contributions equal to 50.0% of a participant’s contributions up to a maximum matching contribution of 3.0% of eligible compensation. The plan also provides for a discretionary profit sharing component, in addition to the matching contributions. Fiscal year 2014 did not include a profit sharing component. Voluntary matching and profit sharing contributions are invested in accordance with the participant’s direction in one or a number of investment options. Savings plan expense was $1,614, $935 and $1,029 for the years ended September 30, 2014, 2013 and 2012, respectively.

(d) Employee Stock Ownership Plan (“ESOP”)

In connection with the Second-Step Stock Conversion and Offering in January 2004, the Company established an ESOP for substantially all eligible employees who meet certain age and service requirements. The ESOP borrowed $9,987 from Sterling and used the funds to purchase 998,650 shares of common stock in the offering. The term of this ESOP loan was twenty years.

On October 30, 2013,  the Company terminated the ESOP.  In accordance with the provisions of the plan, all participants received contributions for calendar year 2013 and became 100% vested in their accounts.  On February 4, 2014, the ESOP held 499,330 shares of the Company’s common stock.  Of these shares, 488,403 were used to retire the ESOP trust outstanding loan obligation, which was $5,983 including accrued interest.  In accordance with the provisions of the ESOP, the remaining 10,927 shares were allocated ratably to ESOP participants.  ESOP expense was $295, $497, and $390 for the years ended September 30, 2014, 2013 and 2012, respectively.

(e) Stock Compensation Plans

The Company has active stock compensation plans as described below.

The Company’s stockholders approved the 2014 Stock Incentive Plan (the “2014 Plan”) on February 20, 2014. The 2014 Plan permits the grant of stock options, stock appreciation rights, restricted stock (both time-based and performance-based), restricted stock units, performance units, deferred stock, and other stock-based awards for up to 3,400,000 shares of common stock. At September 30, 2014 there were 3,350,761 shares available for future grant. The 2014 Plan replaced the Company’s 2012 Stock Incentive Plan (the “2012 Plan”) described below.

Under the 2014 Plan, any shares that are subject to stock options or stock appreciation rights are counted as one share deducted from the 2014 Plan for every one share delivered under those awards. Any shares granted under the 2014 Plan that are subject to awards other than stock options and stock appreciation rights are counted as 3.5 shares deducted from the 2014 Plan for every one share delivered under those awards.

The 2012 Plan was a shareholder-approved plan that permitted the grant of stock options, stock appreciation rights, restricted stock (both time-based and performance-based), restricted stock units, performance units, deferred stock and other stock-based awards. Prior to the approval of the 2014 Plan, there were 566,554 shares remaining for issuance under the 2012 Plan. These shares are included in the aggregate 3,400,000 shares available under the 2014 Plan. The Company will no longer make awards under the 2012 Plan.

The Company’s 2004 Stock Incentive Plan (the “2004 Plan”), was a shareholder-approved plan that permitted the grant of stock options to its employees for up to 2,796,220 shares of common stock. The Company will no longer make awards under the 2004 Plan. As of September 30, 2014, 11,533 restricted shares awarded under the 2004 Plan were potentially subject to accelerated vesting as the employees were eligible for retirement.

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Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

Stock option awards are granted with a fair value equal to the market price of the Company’s common stock at the date of grant; the awards generally vest in equal installments annually on the anniversary date and have total vesting periods ranging from 2 to 5 years and stock options have 10 year contractual terms.

The Company’s 2004 Restricted Stock Plan, which historically has been referred to as the Recognition and Retention Plan (“RRP”), provides for the issuance of shares to directors and officers. RRP shares vest annually on the anniversary of the grant date over the vesting period. There were no shares remaining that are authorized and available for future grant under the RRP at September 30, 2014.

In addition to the above plans, the Company provided awards under its 2011 Employment Inducement Stock Program which included options to purchase 107,256 shares of common stock and restricted stock awards covering 29,550 shares of common stock, both of which vest in four equal installments through July 2015, and performance-based restricted stock awards covering 11,820 shares which vest upon attainment of designated performance conditions in combination with continued service through December 31, 2014. These awards are governed by the terms of an award notice and the terms of the 2004 Plan.

In connection with the Merger, the Company granted 104,152 options at an exercise price of $14.25 per share pursuant to a Registration Statement on Form S-8 under which the Company assumed all outstanding fully vested Legacy Sterling stock options. Substantially all of these options expire March 15, 2017. During the fiscal year ended September 30, 2014, 37,873 of these awards were canceled or forfeited. The Company also granted 95,991 shares under the Sterling Bancorp 2013 Employment Inducement Award Plan to certain executive officers of Legacy Sterling. In addition, the Company issued 255,973 shares of restricted stock from shares available under the Company’s 2012 Plan to certain executives of Legacy Sterling. The weighted average grant date fair value was $11.72 per share and the restricted stock awards vest in equal annual installments on the anniversary date over a three-year period.

The following table summarizes the activity in the Company’s active stock-based compensation plans for September 30, 2014:

			Non-vested stock awards/stock units outstanding					Stock options outstanding
	Shares available for grant		Number of shares		Weighted average grant date fair value			Number of shares		Weighted average exercise price
Balance at October 1, 2013	2,066,184		209,697		$	8.73		2,114,509		$	10.71
2014 Stock Incentive Plan	3,400,000
2012 Stock Incentive Plan termination	(566,554	)
Grants associated with the Merger(1)	(921,503	)	351,964		11.72			104,152		14.25
Granted (1)	(719,674	)	115,145		11.53			324,862		11.45
Stock awards vested	—		(69,211	)	9.51			—		—
Exercised	—		—		—			(507,955	)	11.29
Forfeited	439,594		(18,841	)	(9.18		)	(375,235	)	12.24
Canceled/expired	(347,286	)	—		—			—
Balance at September 30, 2014	3,350,761		588,754		$	10.99		1,660,333		$	10.55
Exercisable at September 30, 2014								951,492		$	11.11

(1) Reflects certain non-vested stock awards that count as 3.5 shares or 3.6 shares for each share granted.

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Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

Other information regarding options outstanding at September 30, 2014 follows:

	Outstanding				Exercisable
		Weighted average				Weighted average
	Number of stock options	Exercise price		Life (in years)	Number of stock options	Exercise price		Life (in years)
Range of exercise prices:
$6.71 to $9.00	689,711	$	8.38	7.57	322,148	$	8.36	7.57
$9.28 to $12.64	787,243	11.73		5.02	445,965	12.05		5.10
$12.84 to $13.92	183,379	13.68		2.69	183,379	13.68		2.69
	1,660,333	10.55		5.82	951,492	11.11		5.82

The total intrinsic value of outstanding in-the-money stock options and outstanding in-the-money exercisable stock options was $3.9 million and $1.8 million, at September 30, 2014.

Proceeds from stock option exercises were $2,980, $62 and $102 for fiscal 2014, 2013, and 2012, respectively.

The Company uses an option pricing model to estimate the grant date fair value of stock options granted. The weighted average estimated value per option granted was $2.51 in 2014, $2.74 in 2013, and $2.31 in 2012.

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

	For the year ended September 30,
	2014		2013		2012
Risk-free interest rate	1.8	%	1.0	%	1.4	%
Expected stock price volatility	26.4		40.8		40.0
Dividend yield (1)	2.0		2.6		3.0
Expected term in years	5.67		5.75		5.82

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

Stock-based compensation expense is recognized ratably over the requisite service period for all awards. Stock-based compensation expense associated with stock options and non-vested stock awards and the related income tax benefit was as follows:

	For the year ended September 30,
	2014		2013		2012
Stock options	$	901	$	695	$	521
Non-vested stock awards/performance units	2,508		1,047		276
Total	$	3,409	$	1,742	$	797
Income tax benefit	914		542		188

Unrecognized stock-based compensation expense at September 30, 2014 was as follows:

	September 30, 2014
Stock options	$	962
Non-vested stock awards/stock units	4,013
Total	$	4,975

The weighted average period over which unrecognized stock options was expected to be recognized was 1.66 years. The weighted average period over which unrecognized non-vested awards/performance units was expected to be recognized was 1.82 years.

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(12) Other Non-interest Expense

Other non-interest expense items are presented in the following table. Components exceeding 1% of the aggregate of total net interest income and total non-interest income are presented separately.

	For the year ended September 30,
	2014		2013		2012
Other non-interest expense:
Advertising and promotion	$	2,358	$	1,502	$	1,849
Professional fees	6,913		3,393		4,247
Data and check processing	3,439		2,520		2,802
ATM/debit card expense	1,249		1,722		1,711
Insurance & surety bond premium	2,703		1,199		1,220
Charge for asset write-downs, severance and retention	22,976		—		—
Charge for banking systems conversion	3,249		—		—
Other	15,030		7,040		6,562
Total other non-interest expense	$	57,917	$	17,376	$	18,391

(13) Earnings Per Common Share

The following is a summary of the calculation of earnings per share (“EPS”):

	For the year ended September 30,
	2014		2013		2012
Net income	$	27,678	$	25,254	$	19,888
Weighted average common shares outstanding for computation of basic EPS (1)	80,268,970		43,734,425		38,227,653
Common-equivalent shares due to the dilutive effect of stock options (2)	265,073		48,628		20,393
Weighted average common shares for computation of diluted EPS	80,534,043		43,783,053		38,248,046
Earnings per common share:
Basic	$	0.34	$	0.58	$	0.52
Diluted	0.34		0.58		0.52

(1) Includes earned ESOP shares.

(2) Represents incremental shares computed using the treasury stock method.

As of September 30, 2014, 2013 and 2012 there were 697,475; 1,786,608; and 1,771,132 stock options, respectively, that were considered anti-dilutive and were not included in common-equivalent shares.

(14) Stockholders’ Equity

(a) Regulatory Capital Requirements

In connection with the Merger, the Company became a bank holding company and a financial holding company as defined by the Bank Holding Company Act of 1956, as amended. Effective in the quarter ended December 31, 2013, Sterling Bancorp is subject to capital ratio requirements as discussed below.

Banks and bank holding companies are subject to various regulatory capital requirements administered by the federal banking agencies. Capital adequacy guidelines, and additionally for banks, prompt corrective action regulations, involve quantitative measures of assets,

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STERLING BANCORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk-weighting, and other factors. Quantitative measures established by regulations to ensure capital adequacy require the maintenance of minimum amounts and ratios (as forth in the table below) of Total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital to adjusted quarterly average assets (as defined).

The Tier 1 and Total capital ratios are calculated by dividing the respective capital amounts by risk-weighed assets. Risk-weighted assets are calculated based on regulatory requirements and include total assets, excluding goodwill and other intangible assets, allocated by risk weight category, and certain off-balance sheet items (mainly loan commitments). Tier 1 capital to average assets is calculated by dividing Tier 1 capital by adjusted quarterly average total assets, which exclude goodwill and other intangible assets.

Fiscal year end actual and required capital ratios for the Company and the Bank were as follows:

					Regulatory requirements
	The Bank and the Company				Minimum capital adequacy				Classification as well- capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
September 30, 2014
Tier 1 leverage capital (to average assets):
Sterling National Bank	$	636,507	9.34	%	$	272,542	4.00	%	$	340,677	5.00	%
Sterling Bancorp	553,117		8.12		272,385		4.00		340,481		5.00
Tier 1 capital (to risk-weighted assets):
Sterling National Bank	636,507		11.94		213,176		4.00		319,763		6.00
Sterling Bancorp	553,117		10.33		214,102		4.00		321,153		6.00
Total capital (to risk-weighted assets):
Sterling National Bank	677,514		12.71		426,351		8.00		532,939		10.00
Sterling Bancorp	594,124		11.10		428,204		8.00		535,254		10.00
	Sterling National Bank only
September 30, 2013
Tier 1 leverage	$	363,274	9.33	%	$	155,670	4.00	%	$	194,587	5.00	%
Risk-based capital:
Tier 1	363,274		13.18		110,235		4.00		165,352		6.00
Total	392,376		14.24		220,469		8.00		275,587		10.00

Management believes that as of September 30, 2014, Sterling Bancorp and Sterling National Bank were “well-capitalized”.

A reconciliation of the Company’s stockholders’ equity to its regulatory capital at September 30, 2014 and the Bank’s total stockholder’s equity to the Bank’s regulatory capital at September 30, 2014 and 2013 is as follows:

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STERLING BANCORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

	The Company			The Bank
	September 30,			September 30,
	2014			2014			2013
Total GAAP stockholders’ equity	$	961,138		$	1,011,973		$	516,281
Disallowed goodwill and other intangible assets	(419,327		)	(386,766		)	(168,122		)
Net unrealized loss on available for sale securities	7,815			7,809			11,455
Disallowed servicing asset	(153		)	(153		)	(198		)
Net actuarial loss on defined benefit pension plans	3,644			3,644			3,858
Tier 1 risk-based capital	553,117			636,507			363,274
Allowance for loan losses and off-balance sheet commitments	41,007			41,007			29,102
Total risk-based capital	$	594,124		$	677,514		$	392,376

(b) Dividend Restrictions

The Company is mainly dependent upon dividends from the Bank to provide funds for the payment of dividends to stockholders and to provide for other cash requirements. Banking regulations may limit the amount of dividends that may be paid. Approval by regulatory authorities is required if the effect of dividends declared would cause the regulatory capital of the Bank to fall below specified minimum levels. Approval is also required if dividends declared exceed the net profits for that fiscal year combined with the retained net profits for the preceding two fiscal years. Under the foregoing dividend restrictions and while maintaining its “well-capitalized” status, at September 30, 2014, the Bank had capacity to pay aggregate dividends of up to $47,879 to the Company without prior regulatory approval.

(c) Stock Repurchase Plans

From time to time, the Company’s board of directors has authorized stock repurchase plans. The Company has 776,713 shares that are available to be purchased under an announced stock repurchase program. There were no shares repurchased under the repurchase programs during the fiscal years ended September 30, 2014, 2013, or 2012.

(d) Liquidation Rights

Upon completion of the second-step conversion in January 2004, the Bank established a special “liquidation account” in accordance with OCC regulations. The account was established for the benefit of Eligible Account Holders and Supplemental Eligible Account Holders (as defined in the plan of conversion) in an amount equal to the greater of (i) the Mutual Holding Company’s ownership interest in the retained earnings of the Bank as of the date of its latest balance sheet contained in the prospectus, or (ii) the retained earnings of the Bank at the time that the Bank reorganized into the Mutual Holding Company in 1999. Each Eligible Account Holder and Supplemental Eligible Account Holder that continues to maintain his or her deposit account at the Bank would be entitled, in the event of a complete liquidation of the Bank, to a pro rata interest in the liquidation account prior to any payment to the stockholders of the Holding Company. The liquidation account is reduced annually on September 30 to the extent that Eligible Account Holders and Supplemental Eligible Account Holders have reduced their qualifying deposits as of each anniversary date. At September 30, 2014, the liquidation account had a balance of $13,300. Subsequent increases in deposits do not restore such account holder’s interest in the liquidation account. The Bank may not pay cash dividends or make other capital distributions if the effect thereof would be to reduce its stockholder’s equity below the amount of the liquidation account.

(15) Off-Balance-Sheet Financial Instruments

In the normal course of business, the Company enters into various transactions, which in accordance with generally accepted accounting principles are not included in its consolidated balance sheet. The Company enters into these transactions to meet the financing needs of its customers. These transactions include commitments to extend credit and standby letters of credit, which involve, to varying degrees, elements of credit risk and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. The Company minimizes its exposure to loss under these commitments by subjecting them to credit approval and monitoring procedures.

The Company enters into contractual commitments to extend credit, normally with fixed expiration dates or termination clauses, at specified rates and for specific purposes.  Substantially all of the Company’s commitments to extend credit are contingent upon customers maintaining specific credit standards at the time of loan funding. Standby letters of credit are written conditional commitments issued by the Company to guarantee the performance of a customer to a third-party. In the event the customer does not perform in accordance with the terms of the agreement with the third-party, the Company would be required to fund the commitment. The maximum potential amount of future payments the Company could be required to make is represented by the contractual amount of the commitment. If the commitment were funded, the Company would be entitled to seek recovery from the customer. Based on the Company’s credit risk

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exposure assessment of standby letter of credit arrangements, the arrangements contain security and debt covenants similar to those contained in loan agreements. As of September 30, 2014, the Company had $97,468 in outstanding letters of credit, of which $21,756 were secured by cash collateral and $34,687 were secured by other collateral. The carrying value of these obligations are not considered material.

The contractual or notional amounts of these instruments, which reflect the extent of the Company’s involvement in particular classes of off-balance sheet financial instruments, are summarized as follows:

	September 30,
	2014		2013
Loan origination commitments	$	213,793	$	171,032
Unused lines of credit	306,482		207,201
Letters of credit	97,468		35,052

(16) Commitments and Contingencies

Certain premises and equipment are leased under operating leases with terms expiring through 2033. The Company has the option to renew certain of these leases for additional terms. Future minimum rental payments due under non-cancellable operating leases with initial or remaining terms of more than one year at September 30, 2014 were as follows:

2014	$	8,984
2015	8,517
2016	7,690
2017	7,702
2018	6,386
2019 and thereafter	27,012
	$	66,291

Occupancy and office operations expense includes net rent expense of $7,893, $3,340 and $2,952 for the years ended September 30, 2014, 2013 and 2012, respectively.

Litigation

The Company and the Bank are involved in a number of judicial proceedings concerning matters arising from conducting their business activities. These include routine legal proceedings arising in the ordinary course of business. These proceedings also include actions brought against the Company and the Bank with respect to corporate matters and transactions in which the Company and the Bank were involved. In addition, the Company and the Bank may be requested to provide information or otherwise cooperate with government authorities in the conduct of investigations of other persons or industry groups. It is possible the Company will be named as a defendant in shareholder litigation arising out of the announcement of the HVB Merger. The Company believes that any such claims would be without merit.

There can be no assurance as to the ultimate outcome of a legal proceeding; however, the Company and the Bank have generally denied, or believe they have meritorious defenses and will deny, liability in all significant litigation pending against us, and we intend to defend vigorously each case, other than matters we determine are appropriate to be settled. We accrue a liability for legal claims when payments associated with the claims become probable and the costs can be reasonably estimated. The actual costs of resolving legal claims may be substantially higher or lower than the amounts accrued for those claims.

(17) 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.

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Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date.

Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risk, etc.) or inputs that are derived principally from, or corroborated by, market data by correlation or other means.

Level 3 Inputs – Unobservable inputs for determining the fair value of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.

In general, fair value is based on quoted market prices, when available. If quoted market prices in active markets are not available, fair value is based on internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value.  These adjustments may include amounts to reflect counterparty credit quality and the Company’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Furthermore, the reported fair value amounts have not been comprehensively revalued since the presentation dates, and therefore, estimates of fair value after the balance sheet date may differ significantly from the amounts presented herein. A more detailed description of the valuation methodologies used for assets and liabilities measured at fair value is set forth below. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincide with the Company’s monthly and/or quarterly valuation process.

Investment Securities Available for Sale

The majority of the Company’s available for sale investment securities are reported at fair value utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the securities’ terms and conditions, among other things.

The Company reviews the prices supplied by the independent pricing service, as well as their underlying pricing methodologies, for reasonableness and to ensure such prices are aligned with traditional pricing matrices. In general, the Company does not purchase investment securities that have a complicated structure. The Company’s entire portfolio consists of traditional investments, nearly all of which are mortgage pass-through securities, state and municipal general obligation or revenue bonds, U.S. agency bullet and callable securities and corporate bonds. Pricing for such instruments is fairly generic and is easily obtained. From time to time, the Company validates, on a sample basis, prices supplied by the independent pricing service by comparison to prices obtained from third-party sources or derived using internal models.

The Company reports the fair value of private label collateralized mortgage obligations or “CMOs” with a rating from a nationally recognized bond rating agency of below investment grade using Level 3 inputs. As of September 30, 2014, these securities have an amortized cost $2,866 and fair value of $2,869, representing 17 basis points of our total investment portfolio. At September 30, 2014, we do not anticipate further OTTI charges on these securities. These securities, along with all of the Company’s other securities, will be reviewed on at least a quarterly basis to assess whether the impairment, if any, is OTTI.

Derivatives

The fair values of derivatives are based on valuation models using current market terms (including interest rates and fees), the remaining terms of the agreements and the credit worthiness of the counterparty as of the measurement date (Level 2). The Company’s derivatives consist of two interest rate caps and twelve interest rate swaps. See Note 9. “Derivatives.”

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Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

Commitments to Sell Real Estate Loans

The Company enters into various commitments to sell real estate loans in the secondary market. Such commitments are considered to be derivative financial instruments and therefore are carried at estimated fair value on the consolidated balance sheets. The estimated fair values of these commitments were generally calculated by reference to quoted prices in secondary markets for commitments to sell to certain government sponsored agencies. The fair values of these commitments generally result in a Level 2 classification. The fair value of these commitments is not material.

A summary of assets and liabilities at September 30, 2014 measured at estimated fair value on a recurring basis is as follows:

	September 30, 2014
	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Asset:
Investment securities available for sale:
Residential MBS:
Agency-backed	$	477,705	$	—	$	477,705	$	—
CMO/Other MBS	111,276		—		111,276		—
Privately issued CMOs	2,869		—		—		2,869
Total residential MBS	591,850		—		588,981		2,869
Federal agencies	152,814		—		152,814		—
Corporate bonds	192,839		—		192,839		—
State and municipal	134,898		—		134,898		—
Trust preferred	38,412		—		38,412		—
Total other securities	518,963		—		518,963		—
Total investment securities available for sale	1,110,813		—		1,107,944		2,869
Interest rate caps and swaps	1,096		—		1,096		—
Total assets	$	1,111,909	$	—	$	1,109,040	$	2,869
Swaps	$	1,096	$	—	$	1,096	$	—
Total liabilities	$	1,096	$	—	$	1,096	$	—

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Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

A summary of assets and liabilities at September 30, 2013 measured at estimated fair value on a recurring basis is the follows:

	September 30, 2013
	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Available for sale securities:
Residential MBS:
Agency-backed	$	282,529	$	—	$	282,529	$	—
CMO/Other MBS	163,041		—		163,041		—
Privately issued CMOs	3,613		—		—		3,613
Total residential MBS	449,183		—		445,570		3,613
Investment securities
Federal agencies	261,547		—		261,547		—
Corporate	114,933		—		114,933		—
State and municipal	128,730		—		128,730		—
Total investment securities available for sale	505,210		—		505,210		—
Total available for sale securities	954,393		—		950,780		3,613
Interest rate caps and swaps	997		—		997		—
Total assets	$	955,390	$	—	$	951,777	$	3,613
Swaps	$	997	$	—	$	997	$	—
Total liabilities	$	997	$	—	$	997	$	—

The following categories of financial assets are not measured at fair value on a recurring basis, but are subject to fair value adjustments in certain circumstances.

Loans Held for Sale and Impaired Loans

Mortgage loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value as determined by outstanding commitments from investors. Fair value of loans held for sale is determined using quoted prices for similar assets (Level 2 inputs).

When mortgage loans held for sale are sold with servicing rights retained, the carrying value of mortgage loans sold is reduced by the amount allocated to the value of the servicing rights, which is equal to its fair value. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold.

The Company may record adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of these loans. These adjustments also include certain impairment amounts for collateral dependent loans calculated in accordance with FASB ASC Topic 310 – Receivables, when establishing the allowance for loan losses. Impairment amounts are generally based on the fair value of the underlying collateral supporting the loan and, as a result, the carrying value of the loan less the calculated impairment amount applicable to that loan does not necessarily represent the fair value of the loan. Real estate collateral is valued using independent appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable by market participants. However, due to the substantial judgment applied and limited volume of activity as compared to other assets, fair value is based on Level 3 inputs. Estimates of fair value used for collateral supporting commercial loans generally are based on assumptions not observable in the market place and are also based on Level 3 inputs. Impaired loans are evaluated on at least a quarterly basis for additional impairment and their carrying values are adjusted as needed. Loans subject to non-recurring fair value measurements were $36,208 and $35,228 (which equals the carrying value less the allowance for loan losses allocated to these loans) at September 30, 2014 and 2013, respectively. Changes in fair value recognized in provisions on loans held by the Company were $905 and $2,726 for the twelve months ended September 30, 2014 and 2013, respectively.

When valuing impaired loans that are collateral dependent, the Company charges-off the difference between the recorded investment in the loan and the appraised value, which is generally less than 12 months old. A discount for estimated costs to dispose of the asset is used when evaluating the impaired loans.

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Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

A summary of impaired loans at September 30, 2014 measured at estimated fair value on a non-recurring basis is the following:

	September 30, 2014
	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Commercial real estate	1,463		—		—		1,463
Acquisition, development and construction	2,173		—		—		2,173
Total impaired loans measured at fair value	$	3,636	$	—	$	—	$	3,636

A summary of impaired loans at September 30, 2013 measured at estimated fair value on a non-recurring basis is the following:

	September 30, 2013
	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Commercial real estate	3,672		—		—		3,672
Commercial & industrial	500		—		—		500
Acquisition, development and construction	1,839		—		—		1,839
Consumer	2		—		—		2
Total impaired loans measured at fair value	$	6,013	$	—	$	—	$	6,013

Mortgage Servicing Rights

When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in net gain on sales of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income.

The Company utilizes the amortization method to subsequently measure the carrying value of its servicing rights. In accordance with FASB ASC Topic 860 - Transfers and Servicing, the Company must record impairment charges on a non-recurring basis, when the carrying value exceeds the estimated fair value. To estimate the fair value of servicing rights, the Company utilizes a third-party, which on a quarterly basis, considers the market prices for similar assets and the present value of expected future cash flows associated with the servicing rights. Assumptions utilized include estimates of the cost of servicing, loan default rates, an appropriate discount rate and prepayment speeds. The determination of fair value of servicing rights relies upon Level 3 inputs. The fair value of mortgage servicing rights at September 30, 2014 and 2013 were $1,526 and $1,978, respectively.

Assets Taken in Foreclosure of Defaulted Loans

Assets taken in foreclosure of defaulted loans are initially recorded at fair value less costs to sell when acquired, which establishes a new cost basis. These assets are subsequently accounted for at the lower of cost or fair value less costs to sell and are primarily comprised of commercial and residential real estate property and upon initial recognition, are re-measured and reported at fair value through a charge-off to the allowance for loan losses based on the fair value of the foreclosed asset. The fair value is generally determined using appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable in the market place. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between comparable sales and income data available. The fair value is derived using Level 3 inputs. Appraisals are reviewed by our credit department, our external loan review consultant and verified by officers in our credit administration area. Assets taken in foreclosure of defaulted loans subject to non-recurring fair value measurement were $7,580 and $6,022 at September 30, 2014 and 2013, respectively. There were write-downs of $224 and $1,978 related to changes in fair value recognized through income for those foreclosed assets held by the Company during the twelve months ending September 30, 2014 and 2013, respectively.

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Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

Significant Unobservable Inputs to Level 3 Measurements

The following table presents quantitative information about significant unobservable inputs used in the fair value measurements for Level 3 assets at September 30, 2014:

Non-recurring fair value measurements	Fair value		Valuation technique	Unobservable input / assumptions	Range (1) (weighted average)
Impaired loans:
Commercial real estate	$	1,463	Appraisal	Adjustments for comparable properties	15.0% - 36.0% (22.0%)
Acquisition, development & construction	2,173		Appraisal	Adjustments for comparable properties	10.0% - 30.0% (13.5%)
Assets taken in foreclosure:
Residential mortgage	1,301		Appraisal	Adjustments by management to reflect current conditions/selling costs	16.0% - 59.0% (21.6%)
Commercial real estate(2)	1,910		Appraisal	Adjustments by management to reflect current conditions/selling costs	20.0% - 37.0% (24.8%)
Acquisition, development & construction	1,973		Appraisal	Adjustments by management to reflect current conditions/selling costs	25.0% - 70.0% (30.2%)
Mortgage servicing rights	1,526		Third-party	Discount rates	9.3% - 12.8%
			Third-party	Prepayment speeds	100 - 968 (224)

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

⁽²⁾ Excludes $2,396 of commercial buildings that are former financial centers held for sale. These assets were not taken in foreclosure and their fair value is determined by appraisal, and our internal assessment of the market for this type of real estate in these locations.

Fair Values of Financial Instruments

FASB Codification Topic 825 - Financial Instruments, requires disclosure of fair value information for those financial instruments for which it is practicable to estimate fair value, whether or not such financial instruments are recognized in the consolidated statements of financial condition for interim and annual periods. Fair value is the amount for which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation.

Quoted market prices are used to estimate fair values when those prices are available, although active markets do not exist for many types of financial instruments. Fair values for these instruments must be estimated by management using techniques such as discounted cash flow analysis and comparison to similar instruments. These estimates are highly subjective and require judgments regarding significant matters, such as the amount and timing of future cash flows and the selection of discount rates that appropriately reflect market and credit risks. Changes in these judgments often have a material effect on the fair value estimates. Since these estimates are made as of a specific point in time, they are susceptible to material near-term changes. Fair values disclosed in accordance with FASB Topic 825 do not reflect any premium or discount that could result from the sale of a large volume of a particular financial instrument, nor do they reflect possible tax ramifications or estimated transaction costs.

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Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

The following is a summary of the carrying amounts and estimated fair value of financial assets and liabilities (none of which were held for trading purposes) as of September 30, 2014:

	September 30, 2014
	Carrying amount			Level 1 inputs			Level 2 inputs			Level 3 inputs
Financial assets:
Cash and due from banks	$	177,619		$	177,619		$	—		$	—
Securities available for sale	1,110,813			—			1,110,813			—
Securities held to maturity	579,075			—			587,838			—
Loans, net	4,719,826			—			—			4,758,366
Loans held for sale	17,846			—			17,846			—
Accrued interest receivable on securities	8,876			—			8,876			—
Accrued interest receivable on loans	10,791			—			—			10,791
FHLB stock and Federal Reserve Bank stock	66,085			—			—			—
Interest rate caps and swaps	1,096			—			1,096			—
Financial liabilities:
Non-maturity deposits	(4,860,783		)	(4,860,783		)	—			—
Certificates of deposit	(437,871		)	—			(438,088		)	—
FHLB borrowings	(795,028		)	—			(813,490		)	—
Other borrowings	(45,639		)	—			(45,640		)	—
Senior notes	(98,402		)	—			(100,482		)	—
Mortgage escrow funds	(4,494		)	—			(4,494		)	—
Accrued interest payable on deposits	(320		)	—			(320		)	—
Accrued interest payable on borrowings	(2,942		)	—			(2,942		)	—
Interest rate caps and swaps	(1,096		)	—			(1,096		)	—

The following is a summary of the carrying amounts and estimated fair value of financial assets and liabilities (none of which were held for trading purposes) as of September 30, 2013:

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Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

	September 30, 2013
	Carrying amount			Level 1 inputs			Level 2 inputs			Level 3 inputs
Financial assets:
Cash and due from banks	$	113,090		$	113,090		$	—		$	—
Securities available for sale	954,393			—			950,780			3,613
Securities held to maturity	253,999			—			250,896			—
Loans, net	2,384,021			—			—			2,422,824
Loans held for sale	1,011			—			1,011			—
Accrued interest receivable on securities	4,892			—			4,892			—
Accrued interest receivable on loans	6,805			—			—			6,805
FHLB stock	24,312			—			—			—
Interest rate caps and swaps	997			—			997			—
Financial liabilities:
Non-maturity deposits	(2,694,166		)	(2,694,166		)	—			—
Certificates of deposit	(268,128		)	—			(268,088		)	—
FHLB and other borrowings	(345,176		)	—			(488,369		)	—
Mortgage escrow funds	(12,646		)	—			(12,644		)	—
Accrued interest payable on deposits	(1,480		)	—			(1,480		)	—
Accrued interest payable on borrowings	(1,525		)	—			(1,525		)	—
Interest rate caps and swaps	(997		)	—			(997		)	—

The following paragraphs summarize the principal methods and assumptions used by the Company to estimate the fair value of the Company’s financial instruments:

Loans

The estimated fair value approximates carrying value for variable-rate loans that reprice frequently and with no significant change in credit risk. The fair value of fixed-rate loans and variable-rate loans which reprice on an infrequent basis is estimated by discounting future cash flows using the current interest rates at which similar loans with similar terms would be made to borrowers of similar credit quality. An overall valuation adjustment is made for specific credit risks as well as general portfolio credit risk.

FHLB of New York Stock and Federal Reserve Bank Stock

The redeemable carrying amount of these securities with limited marketability approximates their fair value.

Deposits and Mortgage Escrow Funds

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

These fair values do not include the value of core deposit relationships that comprise a significant portion of the Company’s deposits. We believe that the Company’s core deposit relationships provide a relatively stable, low-cost funding source that has a substantial value separate from the deposit balances.

FHLB Borrowings, other borrowings and Senior notes

The estimated fair value approximates carrying value for short-term borrowings. The fair value of long-term fixed-rate borrowings is estimated using quoted market prices, if available, or by discounting future cash flows using current interest rates for similar financial instruments.

Other Financial Instruments

Other financial assets and liabilities listed in the table above have estimated fair values that approximate the respective carrying amounts because the instruments are payable on demand or have short-term maturities and present relatively low credit risk and interest rate risk.

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Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

The fair values of the Company’s off-balance-sheet financial instruments described in Note 15. “Off-Balance Sheet Financial Instruments” were estimated based on current market terms (including interest rates and fees), considering the remaining terms of the agreements and the credit worthiness of the counterparties. At September 30, 2014 and 2013, the estimated fair value of these instruments approximated the related carrying amounts, which were not material.

Accrued interest receivable/payable

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

(18) Recently Issued Accounting Standards Not Yet Adopted

Accounting Standards Update (“ASU”) 2014-14 Classification of Certain Government-Guaranteed Residential Mortgage Loans Upon Foreclosure. This standard provides guidance on how holders of certain government-guaranteed loans (e.g., mortgage loans guaranteed by the FHA or VA) should present such loans upon foreclosure. Specifically, the ASU provides that, upon foreclosure, government-guaranteed loans within the scope of the standard should be derecognized and re-recognized as a separate other receivable (i.e., a receivable from the government entity guaranteeing the loan). The standard does not require any new disclosures about such loans. ASU 2014-14 is effective for the Company for annual and interim periods beginning after December 15, 2014, and is not expected to have a material impact on our balance sheet or results of operations.

ASU 2014-11 Transfers and Servicing (topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. This standard amends the guidance in ASC 860 on accounting for certain repurchase agreements (“repos”). The standard (1) requires entities to account for repurchase-to-maturity transactions as secured borrowings, (2) eliminates accounting guidance on linked repurchase financing transactions, and (3) expands disclosure requirements related to certain transfers of financial assets that are accounted for as sales and certain transfers (specifically, repos, securities lending transactions, and repurchase-to-maturity transactions) that are accounted for as secured borrowings. This standard is effective for annual periods beginning after December 15, 2014 and is not expected to have a material impact on our balance sheet or results of operations.

ASU 2014-09 Revenue From Contracts With Customers. This standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is effective for annual reporting periods beginning after December 15, 2016. The Company is currently evaluating the impact this standard will have on its balance sheet and results of operations.

ASU 2014-04 Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40) - Reclassification of Residential Real Estate Collateralized Consumer Mortgage loans upon Foreclosure was issued. This standard provides clarification when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan should be removed from the balance sheet and other real estate owned recognized. These amendments clarify that when an in-substance foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan upon either: (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure, or (2) the borrower is conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. This standard was effective for the Company on October 1, 2014 and is not expected to have a material impact on our balance sheet or results of operations.

See Note 1. “Basis of Financial Statement Presentation and Summary of Significant Accounting Policy” for a discussion of the adoption of new accounting standards.

(19) Accumulated Other Comprehensive (Loss) Income

Components of accumulated other comprehensive income (loss) (“AOCI”) were as follows at September 30:

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Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

	September 30,
	2014			2013
Net unrealized holding loss on available for sale securities	$	(4,645	)	$	(19,316	)
Related income tax benefit	1,974			7,844
Available for sale securities AOCI, net of tax	(2,671		)	(11,472		)
Net unrealized holding loss on securities transferred to held to maturity	(8,947		)	—
Related income tax benefit	3,803			—
Securities transferred to held to maturity AOCI, net of tax	(5,144		)	—
Net unrealized holding loss on retirement plans	(6,336		)	(6,496		)
Related income tax benefit	2,692			2,638
Retirement plan AOCI, net of tax	(3,644		)	(3,858		)
Accumulated other comprehensive loss	$	(11,459	)	$	(15,330	)

The following table presents the changes in each component of accumulated other comprehensive income for the fiscal years ended September 30, 2014, 2013 and 2012:

	Net unrealized holding gain (loss) on AFS securities			Net unrealized holding (loss) on securities transferred to held to maturity			Net unrealized holding gain (loss) on retirement plans			Total
Fiscal year ended September 30, 2014
Balance beginning of the year	$	(11,472	)	$	—		$	(3,858	)	$	(15,330	)
Other comprehensive gain (loss) before reclassification	9,170			(5,144		)	—			4,026
Amounts reclassified from AOCI	(369		)	—			214			(155		)
Total other comprehensive income (loss)	8,801			(5,144		)	214			3,871
Balance at end of period	$	(2,671	)	$	(5,144	)	$	(3,644	)	$	(11,459	)
Fiscal year ended September 30, 2013
Balance beginning of the year	$	15,066		$	—		$	(8,167	)	$	6,899
Other comprehensive (loss) gain before reclassification	(22,167		)	—			3,041			(19,126		)
Amounts reclassified from AOCI	(4,371		)	—			1,268			(3,103		)
Total other comprehensive (loss) income	(26,538		)	—			4,309			(22,229		)
Balance at end of period	$	(11,472	)	$	—		$	(3,858	)	$	(15,330	)
Fiscal year ended September 30, 2012
Balance beginning of the year	$	13,604		$	—		$	(8,468	)	$	5,136
Other comprehensive gain before reclassification	7,640			—			—			7,640
Amounts reclassified from AOCI	(6,178		)	—			301			(5,877		)
Total other comprehensive income	1,462			$	—		301			1,763
Balance at end of period	$	15,066		$	—		$	(8,167	)	$	6,899

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Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

(20) Condensed Parent Company Financial Statements

Set forth below are the condensed balance sheets of Sterling and the related condensed statements of income and cash flows:

	September 30,
	2014		2013
Assets:
Cash	$	23,369	$	56,230
Loan receivable from ESOP	—		6,437
Investment in Sterling National Bank	1,011,973		517,907
Investment in non-bank subsidiaries	3,587		3,271
Goodwill	18,970		—
Trade name	20,500		—
Other intangible assets, net	917		—
Other assets	528		1,184
Total assets	$	1,079,844	$	585,029
Liabilities:
Senior Notes	$	98,402	$	98,033
Other liabilities	20,304		4,130
Total liabilities	118,706		102,163
Stockholders’ equity	961,138		482,866
Total liabilities & stockholders’ equity	$	1,079,844	$	585,029

The table  below presents the condensed statement of income:

	For the year ended September 30,
	2014			2013			2012
Interest income	$	139		$	262		$	282
Dividend income on equity securities	—			22			30
Dividends from Sterling National Bank	22,500			—			6,000
Dividends from non-bank subsidiaries	750			1,600			500
Other	18			—			10
Interest expense	(6,265		)	(1,431		)	—
Non-interest expense	(5,841		)	(2,700		)	(1,838		)
Income tax benefit	3,431			898			87
Income (loss) before equity in undistributed earnings of subsidiaries	14,732			(1,349		)	5,071
Equity in undistributed (excess distributed) earnings of:
Sterling National Bank	12,590			27,174			13,739
Non-bank subsidiaries	355			(571		)	1,078
Net income	$	27,677		$	25,254		$	19,888

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STERLING BANCORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

The table below presents the condensed statement of cash flows:

	For the year ended September 30,
	2014			2013			2012
Cash flows from operating activities:
Net income	$	27,677		$	25,254		$	19,888
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in (undistributed) excess distributed earnings of:
Sterling National Bank	(12,590		)	(27,174		)	(13,739		)
Non-bank subsidiaries	(355		)	571			(1,078		)
(Gain) on redemption of Subordinated Debentures	(712		)	—			—
Other adjustments, net	22,066			5,259			380
Net cash provided by operating activities	36,086			3,910			5,451
Cash flows from investing activities:
Purchase of securities	—			—			(105		)
Sales of securities	1,112			818			103
Investment in subsidiaries	(15,000		)	(45,000		)	(44,203		)
ESOP loan principal repayments	6,437			459			441
Net cash (used for) investing activities	(7,451		)	(43,723		)	(43,764		)
Cash flows from financing activities:
Net change in other short-term borrowings	(20,659		)	—			—
Redemption of Subordinated Debentures	(26,140		)	—			—
Senior Notes offering	—			97,946			—
Equity capital raise	—			—			46,000
Cash dividends paid	(17,677		)	(10,642		)	(9,100		)
Stock option transactions including RRP	2,980			1,758			910
Other equity transactions	—			265			527
Net cash (used for) provided by financing activities	(61,496		)	89,327			38,337
Net (decrease) increase in cash	(32,861		)	49,514			24
Cash at beginning of year	56,230			6,716			6,692
Cash at end of year	$	23,369		$	56,230		$	6,716

122

STERLING BANCORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

(21) Quarterly Results of Operations (Unaudited)

The following is a condensed summary of quarterly results of operations for the fiscal years ended September 30, 2014 and 2013:

	First quarter			Second quarter		Third quarter		Fourth quarter
Year ended September 30, 2014
Interest and dividend income	$	52,711		$	61,325	$	65,761	$	67,109
Interest expense	6,835			7,297		7,310		7,476
Net interest income	45,876			54,028		58,451		59,633
Provision for loan losses	3,000			4,800		5,950		5,350
Non-interest income	9,148			12,415		13,471		12,286
Non-interest expense	72,974			46,723		44,904		43,780
(Loss) income before income tax	(20,950		)	14,920		21,068		22,789
Income tax (benefit) expense	(6,948		)	4,588		6,057		6,452
Net (loss) income	$	(14,002	)	$	10,332	$	15,011	$	16,337
Earnings per common share:
Basic	$	(0.20	)	$	0.12	$	0.18	$	0.20
Diluted	(0.20		)	0.12		0.18		0.19
Year ended September 30, 2013
Interest and dividend income	$	33,145		$	32,420	$	32,593	$	33,903
Interest expense	5,222			4,601		4,276		5,795
Net interest income	27,923			27,819		28,317		28,108
Provision for loan losses	2,950			2,600		3,900		2,700
Non-interest income	7,659			6,852		6,581		6,600
Non-interest expense	22,546			23,339		21,789		23,367
Income before income tax	10,086			8,732		9,209		8,641
Income tax expense	3,066			2,203		2,833		3,312
Net income	$	7,020		$	6,529	$	6,376	$	5,329
Earnings per common share:
Basic	$	0.16		$	0.15	$	0.15	$	0.12
Diluted	0.16			0.15		0.15		0.12

The Company incurred a net loss in the first fiscal quarter of 2014 due mainly to charges and asset write-downs associated with the Merger. The Company recognized charges of $22.2 million for asset write-downs, retention and severance compensation, a write-off of the naming rights to remaining book value of the Provident Bank Ballpark, all of which are included in other non-interest income on the income statement. The charge for asset write-downs was based on the Company’s intent to consolidate several office locations and financial centers. The Company recognized $9.1 million of Merger-related expenses, which included professional advisory fees, legal fees, a portion of change-in-control payments to Legacy Sterling executive officers, costs associated with changing signage at various office and financial center locations and other Merger-related items. In addition, the Company incurred a $2.7 million charge for the settlement of a portion of the Legacy Provident pension plan in December 2013.

(22) Subsequent Events (Unaudited)

On November 5, 2014, the Company announced it had entered into a definitive merger agreement with Hudson Valley Holding Corp. (NYSE: HVB). In the merger, which is a stock-for-stock transaction valued at approximately $539,234 based on the closing price of Sterling common stock on November 4, 2014, Hudson Valley Holding Corp. shareholders will receive a fixed ratio of 1.92 shares of Sterling common stock for each share of Hudson Valley Holding Corp. common stock. Upon closing, Sterling shareholders will own approximately 69% of stock in the combined company and Hudson Valley Holding Corp. shareholders will own approximately 31%. On a pro forma combined basis, for the twelve months ended September 30, 2014, the companies had revenue of $363,217 and $21,962 in

123

STERLING BANCORP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

net income. Upon completion of the merger the combined company is expected to have $10,703,764 in assets, $6,551,482 in gross loans, and deposits of $8,071,799. The transaction, which has been approved by the boards of directors of both companies, is expected to close in the second calendar quarter of 2015. The transaction is subject to approval by shareholders from both companies, regulatory approval and other customary closing conditions.

The Company has engaged an independent third-party to assist management in estimating the fair value of the majority of the assets acquired and liabilities to be assumed. The Company will file a Current Report on Form 8-K (or an amendment to a prior report) no later than January 15, 2015 that will include historical and pro forma information regarding Hudson Valley Holding Corp. and the Company which is required in connection with the Merger.

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ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Not Applicable.

ITEM 9A. Controls and Procedures

(a) Evaluation of Disclosure Controls and Procedures

As of September 30, 2014, under the supervision and with the participation of Sterling Bancorp’s Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), management has evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures. Based on that evaluation, the CEO and CFO concluded that the Company’s disclosure controls and procedures were effective at the reasonable assurance level in timely alerting them to material information required to be recorded, processed, summarized and reported in Sterling Bancorp’s periodic SEC reports.

Changes in Internal Control Over Financial Reporting

There were no changes in the Company’s internal control over financial reporting during the year ended September 30, 2014 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

(b) Management’s Annual Report on Internal Control Over Financial Reporting

The management of Sterling Bancorp (the “Company”) is responsible for establishing and maintaining effective internal control over financial reporting. The Company’s system of internal controls is designed to provide reasonable assurance to the Company’s management and board of directors regarding the preparation and fair presentation of published financial statements in accordance with U.S. generally accepted accounting principles. All internal control systems have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Management assessed the Company’s internal control over financial reporting as of September 30, 2014. This assessment was based on criteria established in the 2013 Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on this assessment, we have concluded that, as of September 30, 2014, the Company’s internal control over financial reporting is effective.

The effectiveness of the Company’s internal control over financial reporting as of September 30, 2014 has been audited by Crowe Horwath LLP, as stated in their report which is included elsewhere herein.

ITEM 9B. Other Information

Not applicable.

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PART III

ITEM 10. Directors, Executive Officers, and Corporate Governance

The Proposal I — “Election of Directors” and “Section 16(a) Beneficial Ownership Reporting Compliance” sections of Sterling Bancorp’s Proxy Statement for the Annual Meeting of Stockholders to be held in February 2015 (the “Proxy Statement”) is incorporated herein by reference.

ITEM 11. Executive Compensation

The Proposal I — “Election of Directors” section of the Proxy Statement is incorporated herein by reference.

ITEM 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Sterling Bancorp does not have any equity compensation programs that were not approved by stockholders, other than its employee stock ownership plan.

Set forth below is certain information as of September 30, 2014, regarding equity compensation that has been approved by stockholders.

Equity compensation plans approved by stockholders	Number of securities to be issued upon exercise of outstanding options and rights	Weighted average Exercise  price (1)		Number of securities remaining available for issuance under plan
Stock Option Plans	1,660,333	$	10.55	3,350,761

(1) Weighted average exercise price represents Stock Option Plans only, since restricted shares have no exercise price.

The Proposal I — “Election of Directors” section of the Proxy Statement is incorporated herein by reference.

ITEM 13. Certain Relationships and Related Transactions and Director Independence

The “Transactions with Certain Related Persons” section of the Proxy Statement is incorporated herein by reference.

ITEM 14. Principal Accountant Fees and Services

The Proposal III - “Ratification of Appointment of Independent Registered Public Accounting Firm” section of the Proxy Statement is incorporated herein by reference.

126

PART IV

ITEM 15. Exhibits and Financial Statement Schedules

(1)    Financial Statements

The financial statements filed in Item 8 of this Form 10-K are as follows:

(A)Report of Independent Registered Public Accounting Firm on Financial Statements

(B)Consolidated Balance Sheets as of September 30, 2014 and 2013

(C)Consolidated Statements of Income for the years ended September 30, 2014, 2013 and 2012

(D)Consolidated Statements of Changes in Stockholders’ Equity for the years ended September 30, 2014, 2013 and 2012

(E)Consolidated Statements of Cash Flows for the years ended September 30, 2014, 2013 and 2012

(F)Notes to Consolidated Financial Statements

(G)Financial Statement Schedules

(2)    All financial statement schedules have been omitted as the required information is inapplicable or has been included in

the Notes to Consolidated Financial Statements.

(3)    Exhibits

2.1	Agreement and Plan of Merger, dated as of November 4, 2014, by and between Sterling Bancorp and Hudson Valley Holding Corp. (incorporated by reference to Exhibit 2.1 of the Company’s Current Report on Form 8-K filed on November 7, 2014).
3.1	Certificate of Incorporation of the Company, as amended (incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K filed on November 1, 2013).
3.2	Bylaws of the Company, as amended (incorporated by reference to Exhibit 3.2 of the Company’s Current Report on Form 8-K filed on November 1, 2013).
4.1	Form of Common Stock Certificate of the Company (incorporated by reference to Exhibit 4.1 of the Company’s Current Report on Form 8-K filed on November 1, 2013).
4.2	Form of Corporate Governance Agreement (incorporated by reference to Exhibit 10.2 of the Company’s Current Report on Form 8-K filed on August 7, 2012).
4.3	Pursuant to Item 601(b)(4)(iii)(A) of Regulation S-K, no instrument which defines the holders of long-term debt of the Company or any of its consolidated subsidiaries is filed herewith. Pursuant to this regulation, the Company hereby agrees to furnish a copy of any such instrument to the Commission upon request.
10.1	Employment Agreement, dated as of June 20, 2011, with Jack L. Kopnisky (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed on June 21, 2011).*
10.2	Form of Amendment to Employment Agreement, dated as of November 26, 2012, with Jack L. Kopnisky (incorporated by reference to Exhibit 10.3 of the Company’s Current Report on Form 8-K filed on November 26, 2012).*
10.3	Amendment No. 2 to Employment Agreement, dated as of April 3, 2013, with Jack L. Kopnisky (incorporated by reference to Exhibit 10.1 of the Company’s Amendment No. 1 to Current Report on Form 8-K filed on April 9, 2013).*
10.4	Employment Agreement, dated as of November 1, 2013, with Luis Massiani (incorporated by reference to Exhibit 10.2 of the Company’s Current Report on Form 8-K filed on November 4, 2013).*
10.5	Form of Employment Agreement, dated as of November 22, 2011, with Rodney Whitwell (incorporated by reference to Exhibit 10.20 of the Company’s Annual Report on Form 10-K filed on December 14, 2012).*
10.6	Form of Reinstated Employment Agreement, dated as of November 26, 2012, with Rodney Whitwell (incorporated by reference to Exhibit 10.5 of the Company’s Current Report on Form 8-K filed on November 27, 2012).*

127

10.7	Employment Agreement, dated as of November 1, 2013, with David S. Bagatelle (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed on November 4, 2013).*
10.8	Amendment No. 1 to Employment Agreement, dated as of September 23, 2014, with David S. Bagatelle (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed on September 25, 2014).*
10.9	Employment Agreement, dated as of November 1, 2013, with James R. Peoples (incorporated by reference to Exhibit 10.3 of the Company’s Current Report on Form 8-K filed on November 4, 2013).*
10.10	Employment Agreement dated as of April 3, 2013, with Michael Bizenov* (filed herewith)
10.11	Employment Agreement dated as of April 3, 2013, with Howard M. Applebaum* (filed herewith)
10.12	Services and Covenant Agreement, dated as of April 3, 2013, by and between the Company and Louis J. Cappelli (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on November 1, 2013).*
10.13	Services and Covenant Agreement, dated as of April 3, 2013, by and between the Company and John C. Millman (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on November 1, 2013).*
10.14	Retention Award Letter, dated as of May 13, 2013, with Daniel G. Rothstein (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed on May 14, 2013).*
10.15	Provident Bank Amended and Restated 1995 Supplemental Executive Retirement Plan (incorporated by reference to Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q filed on August 11, 2008 (File No. 0-25233)).*
10.16	Provident Bank 2005 Supplemental Executive Retirement Plan (incorporated by reference to Exhibit 10.2 of the Company’s Quarterly Report on Form 10-Q filed on August 11, 2008 (File No. 0-25233)).*
10.17	Provident Bank 2000 Stock Option Plan (incorporated by reference to Appendix A to the Company’s Proxy Statement filed on January 18, 2000 (File No. 0-25233)).*
10.18	Provident Bancorp, Inc. 2004 Stock Incentive Plan (incorporated by reference to Appendix A to the Company’s Proxy Statement filed on January 19, 2005 (File No. 0-25233)).*
10.19	Form of Stock Option Agreement, dated as of July 6, 2011, between the Company and Jack L. Kopnisky (incorporated by reference to Exhibit 10.3 of the Company’s Quarterly Report on Form 10-Q filed on August 9, 2011).*
10.20	Form of Restricted Stock Award Notice, dated as of July 6, 2011, between the Company and Jack L. Kopnisky (incorporated by reference to Exhibit 10.4 of the Company’s Quarterly Report on Form 10-Q filed on August 9, 2011)).*
10.21	Form of Performance-Based Restricted Stock Award Notice, dated as of July 6, 2011, between the Company and Jack L. Kopnisky (incorporated by reference to Exhibit 10.5 of the Company’s Quarterly Report on Form 10-Q filed on August 9, 2011).*
10.22	Provident Short-Term Incentive Plan (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed on November 1, 2011).*
10.23	Sterling Bancorp 2014 Stock Incentive Plan (incorporated by reference to Appendix A to the Company’s Proxy Statement for the 2014 Annual Meeting of Stockholders, filed on January 10, 2014).*
10.24	Sterling Bancorp Stock Incentive Plan (incorporated by reference to Exhibit 10 to Legacy Sterling’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2004 (File No. 1-05273)).*
10.25	Form of Sterling Bancorp 2013 Employment Inducement Award Agreement (incorporated by reference to Exhibit 10.1 of the Company’s Post Effective Amendment on Form S-8 to Form S-4 filed on November 1, 2013).*
10.26	Form of Restricted Stock Unit Award Agreement Pursuant to the Provident New York Bancorp 2012 Stock Incentive Plan (incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K filed on November 1, 2013).*
10.27	Form of Restricted Stock Award Agreement Pursuant to the Provident New York Bancorp 2012 Stock Incentive Plan* (filed herewith)
10.28	Form of Stock Option Award Agreement Pursuant to the Provident New York Bancorp 2012 Stock Incentive Plan* (filed herewith)
10.29	Form of Performance-Based Stock Award Agreement Pursuant to the Provident New York Bancorp 2012 Stock Incentive Plan* (filed herewith)
10.30	Form of Restricted Stock Award Agreement Pursuant to the 2014 Stock Incentive Plan* (filed herewith)
10.31	Form of Stock Option Award Agreement Pursuant to the 2014 Stock Incentive Plan* (filed herewith)
10.32	Form of Performance-Based Stock Award Agreement Pursuant to the 2014 Stock Incentive Plan* (filed herewith)
21	Subsidiaries of Registrant (filed herewith)

128

23	Consent of Crowe Horwath LLP (filed herewith)
31.1	Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
31.2	Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
32	Certification Pursuant to 18 U.S.C. Section 1350, as amended by Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith)
101.INS	XBRL Instance Document (filed herewith)
101.SCH	XBRL Taxonomy Extension Schema Document (filed herewith)
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document (filed herewith)
101.LAB	XBRL Taxonomy Extension Label Linkbase Document (filed herewith)
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document (filed herewith)
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document (filed herewith)

*    Indicates management contract or compensatory plan or arrangement.

129

SIGNATURES

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

Sterling Bancorp

Date:	November 28, 2014	By:	/s/ Jack L. Kopnisky
			Jack L. Kopnisky
			President, Chief Executive Officer and Director (Principal Executive Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By:	/s/ Jack L. Kopnisky	By:	/s/ Luis Massiani
	Jack L. Kopnisky		Luis Massiani
	President, Chief Executive Officer and		Executive Vice President
	Director		Chief Financial Officer
	Principal Executive Officer		Principal Financial Officer
Date:	November 28, 2014		Principal Accounting Officer
		Date:	November 28, 2014
By:	/s/ Louis J. Cappelli
	Louis J. Cappelli
	Chairman of the Board of Directors
Date:	November 28, 2014

By:	/s/ Robert Abrams	By:	/s/ James F. Deutsch	By:	/s/ Navy E. Djonovic
	Robert Abrams		James F. Deutsch		Navy E. Djonovic
	Director		Director		Director
Date:	November 28, 2014	Date:	November 28, 2014	Date:	November 28, 2014
By:	/s/ Fernando Ferrer	By:	/s/ William F. Helmer	By:	/s/ Thomas G. Kahn
	Fernando Ferrer		William F. Helmer		Thomas G. Kahn
	Director		Director		Director
Date:	November 28, 2014	Date:	November 28, 2014	Date:	November 28, 2014
By:	/s/ James B. Klein	By:	/s/ Robert W. Lazar	By:	/s/ John C. Millman
	James B. Klein		Robert W. Lazar		John C. Millman
	Director		Director		Director
Date:	November 28, 2014	Date:	November 28, 2014	Date:	November 28, 2014
By:	/s/ Richard O’Toole	By:	/s/ Burt Steinberg
	Richard O’Toole		Burt Steinberg
	Director		Director
Date:	November 28, 2014	Date:	November 28, 2014

130

EX-10.10

Exhibit 10.10

EMPLOYMENT AGREEMENT

This Employment Agreement (“Agreement”) is made and entered into as of the April 3, 2013, by and among Provident New York Bancorp, a Delaware corporation (the “Company”), Provident Bank, a savings bank organized and existing under the laws of the United States of America (the “Bank”; and together with the Company, “Provident”), and Michael Bizenov (“Executive”), to be effective upon the occurrence of the Effective Time (as defined in the Agreement and Plan of Merger, dated as of April 3, 2013, by and between Sterling Bancorp, a New York corporation (“Sterling”), and the Company (the “Merger Agreement”)). If the Effective Time does not occur, this Agreement shall be null and void ab initio, and of no further force and effect.

WITNESSETH:

WHEREAS, Executive is currently employed by Sterling as Executive Vice President and party to that certain Change in Control Severance Agreement, dated as of June 8, 2004, by and between Executive and Sterling, as amended (the “Prior Agreement”); and

WHEREAS, the Board of Directors of the Company (the “Company Board”) has determined that it is in the best interests of Provident and its shareholders to assure that Provident will have the continued dedication of Executive following the Merger (as defined in the Merger Agreement) and, in order to accomplish this objective, the Company Board and the Board of Directors of the Bank (the “Bank Board”) have caused the Company and the Bank, respectively, to enter into this Agreement; and

WHEREAS, effective as of the date on which the Effective Time occurs (the “Effective Date”), the Company and the Bank desire to continue to employ Executive as Executive Vice President, Consumer Bank President of the Company and the Bank pursuant to the terms of this Agreement, and the Prior Agreement shall terminate (other than with respect to Section 5 (“Certain Additional Payments by the Company”)) of the Prior Agreement, which shall survive as provided in Section 16(h) hereof); and

WHEREAS, Executive desires to serve in such positions.

NOW, THEREFORE, in consideration of the premises and the mutual covenants and obligations hereinafter set forth, the Company, the Bank and Executive hereby agree as follows:

1.Employment.

Subject to the terms set forth herein, the Company and the Bank agree to employ Executive as Executive Vice President, Consumer Bank President of the Company and the Bank, and Executive hereby accepts such employment. As Executive Vice President, Consumer Bank

Exhibit 10.10

President of the Company and the Bank, Executive shall have such authority, perform such duties, and fulfill such responsibilities commonly incident to such positions, including overseeing Mortgage Banking and Financial Centers (including Mortgage Warehouse Lending), and working with the Leadership Team to develop and implement the Private Wealth Management Strategy, as well as those duties that are delegated to Executive by the Chief Executive Officer of the Company or the President of Regional Banking. Executive shall also have a role in the strategic planning and marketing processes and shall be a member of the executive Leadership Team. While employed, Executive shall report to the Chief Executive Officer of the Company or the President of Regional Banking (as designated by the Chief Executive Officer of the Company), and Executive shall devote his or her full business time and attention to the business and affairs of the Company and the Bank, and shall use his or her best efforts to advance the interests of the Company and the Bank; provided that, Executive may engage in outside activities in accordance with Section 5.

2.Employment Period.

(a)Duration. Executive’s period of employment with the Company and the Bank under this Agreement shall begin on the Effective Date and shall continue until the day following the third anniversary of the Effective Date (or, if a Change in Control occurs prior to such day, the first anniversary of the date of the Change in Control, if later), unless terminated prior thereto by either Provident or Executive in accordance with Section 6 hereof (such period of employment being the “Employment Period”).

(b)Employment Following Termination of Employment Period. Nothing in this Agreement shall mandate or prohibit a continuation of Executive’s employment following the expiration of the Employment Period upon such terms and conditions as the Company, the Bank and Executive may agree.

3.Compensation.

(a)Base Salary. In consideration for the services performed by Executive during the Employment Period, the Bank shall pay to Executive an annual salary (“Base Salary”) of $400,000.00. The Base Salary shall be paid in approximately equal installments in accordance with the Bank’s customary payroll practices. Executive’s Base Salary shall be reviewed at least annually during the Employment Period for possible upward adjustment, and Executive’s Base Salary shall not be reduced without Executive’s consent. The term Base Salary, as utilized in this Agreement, shall refer to Base Salary as it may be increased.

(b)Annual Bonus. For each fiscal year of the Company during the Employment Period beginning with the fiscal year commencing on October 1, 2013, Executive shall be eligible to participate in the Company’s Short-Term Incentive Plan (or any successor

-2-

Exhibit 10.10

thereto) (the “Annual Bonus Plan”). Executive’s target annual bonus under the Annual Bonus Plan shall be 30% of Executive’s Base Salary (the “Target Bonus”). The actual amount of Executive’s annual bonus shall depend upon the achievement of performance goals established by the Compensation Committee of the Company Board, with the actual bonus to be determined by the Compensation Committee of the Company Board. The terms and conditions of the Annual Bonus Plan and the payments to Executive thereunder shall be applied on a basis not less favorable to Executive than to other similarly situated senior executives of Provident generally. Annual bonuses awarded to Executive under the Annual Bonus Plan are referred to herein as “Annual Bonuses.” The payment of any such Annual Bonus shall be subject to all the terms and conditions of the applicable Annual Bonus Plan.

(c)Long-Term Compensation.

(i)During the Employment Period, Executive shall be eligible to participate in any equity and/or other long-term compensation programs established by the Company from time to time for senior executive officers. Executive’s target annual equity award opportunity shall be 30% of the Base Salary, with the actual award to be determined by the Compensation Committee of the Company Board, on a basis not less favorable to Executive than to other similarly situated senior executives of Provident generally.

(ii)In consideration for Executive’s continued employment and for agreeing to the covenants set forth in Sections 8, 9(a) and 9(b), on the Effective Date, Executive shall be granted an award consisting of either restricted stock or restricted stock units (at the Company’s election) with an aggregate grant date value of $375,000.00 (the “Retention Award”), which award shall vest and be settled in equal annual installments on each of the first three anniversaries of the Effective Date, subject, except as provided below, to Executive’s continued employment with the Bank and compliance in all material respects with the restrictive covenants in Sections 8, 9(a) and 9(b) below, subject to written notice by the Bank and a reasonable opportunity for Executive to cure, if subject to cure, in each case, through the applicable vesting date. The number of shares of the Company’s common stock subject to the Retention Award shall be determined by dividing (x) $375,000.00 by (y) the Fair Market Value (as defined under the Provident New York Bancorp 2012 Stock Incentive Plan (the “Stock Plan”)) of a share of the Company’s common stock on the Effective Date. If Executive’s employment with the Bank is terminated without Cause (as defined below), for Good Reason (as defined below) or due to death or Disability (as defined below), the Retention Award shall vest in full (with settlement to occur as soon as reasonably practicable (but in no event later than 60 days) following such termination of employment), subject, in each case other than a termination due to death, to Section 6(g) and, until the third anniversary of the Effective Date, to the clawback of the shares received on vesting of the Retention Award (or recoupment of the value derived from the proceeds of any sale of any such shares (but not greater than the Fair Market Value of such

-3-

Exhibit 10.10

shares on the applicable vesting date)) if Executive does not comply in all material respects with the restrictive covenants set forth in Sections 8, 9(a) and 9(b), subject to written notice by the Bank and a reasonable opportunity for Executive to cure, if subject to cure. Except as provided herein, the Retention Award shall be subject to the terms and conditions of the Company’s standard form of award agreement and such other customary terms and conditions as the Company may establish; provided that, for the avoidance of doubt, (A) the vesting and termination provisions specified herein shall control notwithstanding the vesting and termination, including retirement, provisions contained in the standard form of award agreement or the Stock Plan and (B) such grant may be made pursuant to the “employment inducement awards” exemption under the New York Stock Exchange Listed Company Manual. Notwithstanding the foregoing, if any portion of the Retention Award cannot be granted under the Stock Plan or pursuant to the “employment inducement awards” exemption under the New York Stock Exchange Listed Company Manual or for any other reason, such portion of the Retention Award shall be granted in the form of cash-settled restricted stock units, which cash-settled restricted stock units shall otherwise have terms and conditions consistent with those applicable to any portion of the Retention Award granted as restricted stock or stock-settled restricted stock units, as applicable.

(d)Employee Benefit Plans; Paid Time Off.

(i)Benefit Plans. During the Employment Period, Executive shall be an employee of the Company and the Bank, and shall be entitled to participate, on terms and conditions not less favorable to Executive than other similarly situated senior executives of Provident generally, in Provident’s (A) tax-qualified defined contribution retirement plans (currently, Provident’s 401(k) and Profit Sharing Plan and Employee Stock Ownership Plan); (B) group life, health and disability insurance plans, and supplemental long-term disability and long-term care plans; and (C) any other employee benefit plans and programs and perquisites in accordance with Provident’s customary practices with respect to other similarly situated senior executives of Provident generally, provided that Executive’s participation shall be subject to the terms of such plans and programs (including being a member of the class of employees currently eligible to commence participating in the plan or program), and provided, further, that nothing herein shall limit Provident’s right to amend or terminate any such plans or programs. In addition, Executive shall be entitled to all accrued and vested rights and benefits under the terms of the broad-based employee benefit plans and programs of Sterling immediately prior to the Effective Time (for the avoidance of doubt, other than any rights relating to separation or termination pay or benefits).

(ii)Paid Time Off. Executive shall be entitled to four (4) weeks of paid vacation time each year during the Employment Period (measured on a fiscal or calendar year basis, in accordance with Provident’s usual practices), as well as sick leave, holidays and

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Exhibit 10.10

other paid absences in accordance with Provident’s policies and procedures for senior executives. Any unused paid time off during an annual period may be carried forward into the following year to the extent permitted under Provident’s policies and procedures and Executive shall be compensated for any unused paid time off to the extent provided for under Provident’s policies and procedures as applicable to other similarly situated senior executives of Provident generally.

(e)Expenses. The Bank shall reimburse Executive for Executive’s ordinary and necessary business expenses and travel and entertainment expenses incurred in connection with the performance of Executive’s duties under this Agreement upon presentation to the Bank of an itemized account of such expenses in such form as the Bank may reasonably require.

(f)Initial Payment. In full settlement of the Company, Sterling and their respective affiliates’ obligations under the Prior Agreement, within 10 business days after the Effective Date, the Bank shall pay to Executive a lump sum payment in cash of $950,000.00 (the “Initial Payment”). The Initial Payment shall not be considered compensation for purposes of determining payments or benefits due under any other employee benefit plan, program or agreement.

4.Principal Place of Employment.

Executive’s principal place of employment during the Employment Period shall be at the Company’s offices in Great Neck, New York or at such other location upon which the Company and Executive may mutually agree, and subject to travel to such other locations as shall be necessary to fulfill the employment duties.

5.Outside Activities and Board Memberships

During the Employment Period, Executive shall not provide services on behalf of any financial institution or other entity or business that competes with the Company, the Bank or any of their affiliates (each, a “competitive business”), or any subsidiary or affiliate of any such competitive business, as an employee, consultant, independent contractor, agent, sole proprietor, partner, joint venturer, corporate officer or director; nor shall Executive acquire, by reason of purchase during the Employment Period, the ownership of more than 1% of the outstanding equity interest in any such competitive business. In addition, during the Employment Period, Executive shall not, directly or indirectly, acquire a beneficial interest, or engage in any joint venture in real estate with Provident. Subject to the foregoing, Executive may serve on boards of directors of unaffiliated corporations, subject to approval by the Company Board, which shall not be unreasonably withheld, and boards of directors of not-for-profit organizations and trade associations, subject to approval by the Company in accordance with Provident’s policies and procedures. Except as specifically set forth herein, Executive may engage in personal business and investment activities, including real estate investments and personal investments in the

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Exhibit 10.10

stocks, securities and obligations of other financial institutions (or their holding companies). Notwithstanding the foregoing, in no event shall Executive’s outside activities, services, personal business and investments materially interfere with the performance of Executive’s duties under this Agreement. Nothing in this Section 5 shall limit any of Executive’s obligations under Section 9 hereof.

6.Termination of Employment.

(a)Termination by Provident without Cause.

(iii)Provident shall have the right to terminate Executive’s employment at any time during the Employment Period without Cause by giving notice to Executive as described in Section 6(f). For sake of clarity, neither termination of Executive’s employment pursuant to Section 6(e) nor upon or after expiration of the Employment Period shall constitute a termination without Cause for purposes of Section 3(c) or this Section 6.

(iv)In the event that Provident terminates Executive’s employment during the Employment Period without Cause:

(A)The Bank shall pay or provide to Executive any Accrued Obligations, and Executive shall, subject to Section 6(g), have the rights in respect of the Retention Award as set forth in Section 3(c);

(B)If such termination occurs other than as provided in Section 6(a)(ii)(C) below, then, subject to Section 6(g), the Bank shall (I) pay to Executive, within sixty (60) days following the date of termination, a lump sum cash payment (the “Severance Payment”) equal to the sum of (x) Executive’s Base Salary immediately prior to termination of employment plus (y) the amount of Executive’s Target Bonus for the fiscal year including Executive’s termination of employment, and (II) pay to Executive on a monthly basis commencing with the first month following Executive’s termination of employment, and continuing until the eighteenth month following Executive’s termination of employment, a cash payment equal to the monthly COBRA premium in effect as of the date of Executive’s termination of employment for the level of coverage in effect for Executive under Provident’s group health plan (the “COBRA Payments” and, together with the Severance Payment, the “Severance Benefits”); and

(C)If such termination occurs upon or within 12 months after a Change in Control, or Executive reasonably demonstrates (or the Bank agrees) that such termination was at the request of a third party who had indicated an intention or taken steps reasonably calculated to effect a Change in Control, then, subject to Section 6(g), the Bank shall (I) pay to Executive, within sixty (60) days following the date of termination, a lump sum cash payment (the “CIC Severance Payment”) equal to two (2) times the sum of (x) Executive’s Base

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Exhibit 10.10

Salary immediately prior to termination of employment plus (y) the amount of Executive’s Target Bonus for the fiscal year including Executive’s termination of employment, and (II) pay to Executive on a monthly basis commencing with the first month following Executive’s termination of employment, and continuing until the eighteenth month following Executive’s termination of employment, the COBRA Payments (together with the CIC Severance Payment, the “CIC Severance Benefits”).

(b)Termination by the Company for Cause. Provident shall have the right to terminate Executive’s employment at any time during the Employment Period for Cause by giving notice to Executive as provided in Section 6(f) hereof. In the event Executive’s employment is terminated for Cause, Provident’s sole obligation shall be to pay or provide to Executive any Accrued Obligations.

(c)Resignation by Executive without Good Reason. Executive may resign from employment during the Employment Period without Good Reason at any time by giving notice to the Bank as described in Section 6(f). In the event Executive resigns from employment without Good Reason, Provident’s sole obligation shall be to pay or provide to Executive any Accrued Obligations.

(d)Resignation by Executive for Good Reason. Executive may resign from employment under this Agreement for Good Reason by giving notice to the Bank as described in Section 6(f). In the event Executive resigns from employment for Good Reason, (i) the Bank shall pay or provide to Executive any Accrued Obligations, (ii) Executive shall, subject to Section 6(g), have the rights in respect of the Retention Award as set forth in Section 3(c), and (iii) if such resignation occurs upon or within 12 months after a Change in Control, Executive shall, subject to Section 6(g), be entitled to the CIC Severance Benefits to the same extent as if Executive’s employment was terminated by Provident without Cause pursuant to Section 6(a)(ii)(C) as of the date of Executive’s termination of employment for Good Reason.

(e)Termination by Reason of Death or Disability of Executive.

(i)In the event of Executive’s death during the Employment Period, Provident’s sole obligation shall be to pay to Executive’s legal representatives any Accrued Obligations, and Executive shall have the rights in respect of the Retention Award as set forth in Section 3(c).

(ii)Provident shall be entitled to terminate Executive’s employment due to Executive’s Disability. If Executive’s employment hereunder is terminated due to Executive’s Disability, Provident’s sole obligation shall be to pay or provide to Executive any Accrued Obligations, and Executive shall, subject to Section 6(g), have the rights in respect of the Retention Award as set forth in Section 3(e).

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Exhibit 10.10

(f)Notice; Effective Date of Termination. Notice of termination of employment under this Agreement shall be communicated by or to Executive (on one hand) or Provident (on the other hand) in writing in accordance with Section 14. Termination of Executive’s employment pursuant to this Agreement shall be effective on the earliest of:

(i)immediately after Provident gives notice to Executive of Executive’s termination without Cause, unless the parties agree to a later date, in which case, termination shall be effective as of such later date;

(ii)immediately upon approval by the Company Board of termination of Executive’s employment for Cause;

(iii)immediately upon Executive’s death;

(iv)in the case of termination by reason of Executive’s Disability, the date on which Executive is determined to be permanently disabled for purposes of Provident’s long-term disability plan or policy that covers Executive; or

(v)thirty (30) days after Executive gives written notice to Provident of Executive’s resignation from employment under this Agreement (including for Good Reason), provided that the Company or the Bank may set an earlier termination date at any time prior to the date of termination of employment, in which case Executive’s resignation shall be effective as of such other date.

(g)General Release of Claims. Executive shall not (i) be entitled to any of the Severance Benefits pursuant to Section 6(a)(ii)(B) or the CIC Severance Benefits pursuant to Section 6(a)(ii)(C) or 6(d) nor (ii) have any rights in respect of the Retention Award pursuant to Section 3(c) (including as incorporated into Section 6) in the event Executive’s employment terminates due to Disability, without Cause or for Good Reason, unless, in each case, (A) Executive has executed and delivered to the Company a general release of claims (in the form attached hereto as Exhibit A) (the “Release”) and (B) such Release has become irrevocable under the Age Discrimination in Employment Act not later than fifty-six (56) days after the date of Executive’s termination of employment hereunder. Executive’s entitlement to the Severance Benefits or CIC Severance Benefits, as applicable, and Executive’s rights in respect of the Retention Award under Sections 3(c) (including as incorporated into Section 6) are further conditioned upon Executive returning to Provident all property of Provident within seven (7) days following the date of Executive’s termination of employment with Provident and complying with the terms of Sections 8, 9(a) and 9(b) hereof, subject to written notice by the Bank and a reasonable opportunity for Executive to cure, if subject to cure, and the Release. Provident shall deliver to Executive a copy of the Release not later than three (3) days after Executive’s termination of employment hereunder pursuant to Section 6(a), 6(d) or 6(e)(ii) hereof. In the

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Exhibit 10.10

event that the fifty-six (56) day period referenced above begins and ends in different taxable years of Executive, any payments or benefits under this Agreement that constitute nonqualified deferred compensation under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the payment or settlement of which is conditioned on the effectiveness of the Release shall be paid in the later taxable year.

(h)No Other Severance Benefits. Executive acknowledges and agrees the Severance Benefits or CIC Severance Benefits, as applicable, and other rights and benefits provided under this Agreement upon termination are in lieu of, and not in addition to, any payments and/or benefits to which Executive may otherwise be entitled under any severance plan, policy or program of Provident.

(i)Payment of Obligations. Notwithstanding anything to the contrary herein, any payment obligation of the Bank under this Agreement may be satisfied in whole or in part by payment by the Company, the Bank or any affiliate, and any such payment shall, for purposes of this Agreement, be treated as if made by the Bank.

(j)Resignation from Positions. Upon termination of Executive’s employment for any reason, Executive shall promptly (i) resign from all positions (including, without limitation, any management, officer or director position) with Provident and its affiliates and (ii) relinquish any power of attorney, signing authority, trust authorization or bank account signatory authorization that Executive may hold on behalf of Provident or its affiliates. Executive’s execution of this Agreement shall be deemed the grant by Executive to the officers of the Company and the Bank of a limited power of attorney to sign in Executive’s name and on Executive’s behalf such documentation as may be necessary or appropriate for the limited purposes of effectuating such resignations and relinquishments.

(k)Golden Parachute Limit. Notwithstanding any other provision of this Agreement (including the proviso in Section 16(h)), in the event that any portion of the CIC Severance Benefits or any other payment or benefit received or to be received by Executive in connection with a “change in ownership or control” (within the meaning of Section 280G of the Code) of the Company occurring following the Effective Date (whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement) (collectively, the “Total Benefits”) would be subject to the excise tax imposed under Section 4999 of the Code (the “Excise Tax”), the Total Benefits shall be reduced to the extent necessary so that no portion of the Total Benefits is subject to the Excise Tax; provided, however, that no such reduction in the Total Benefits shall be made if by not making such reduction, Executive’s Retained Amount (as hereinafter defined) would be greater than Executive’s Retained Amount if the Total Benefits are so reduced. All determinations required to be made under this Section 6(k) shall be made by tax counsel selected by the Company and reasonably acceptable to Executive (“Tax Counsel”), which determinations shall be conclusive and binding on Executive and the Company absent

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Exhibit 10.10

manifest error. All fees and expenses of Tax Counsel shall be borne solely by the Company. Prior to any reduction in Executive’s Total Benefits pursuant to this Section 6(k), Tax Counsel shall provide Executive and the Company with a report setting forth its calculations and containing related supporting information. In the event any such reduction is required, the Total Benefits shall be reduced in the following order: (i) the COBRA Payments, (ii) the CIC Severance Payment, (iii) any other portion of the Total Benefits that are not subject to Section 409A of the Code (other than Total Benefits resulting from any accelerated vesting of equity awards), (iv) Total Benefits that are subject to Section 409A of the Code in reverse order of payment, and (v) Total Benefits that are not subject to Section 409A and arise from any accelerated vesting of equity awards. “Retained Amount” shall mean the present value (as determined in accordance with Sections 280G(b)(2)(A)(ii) and 280G(d)(4) of the Code) of the Total Benefits net of all federal, state and local taxes imposed on Executive with respect thereto. For the avoidance of doubt, in accordance with Section 16(h) of this Agreement, this Section 6(k) shall not apply to payments that are parachute payments as a result of a “change in ownership or control” (within the meaning of Section 280G of the Code) of Sterling resulting from the Merger.

7.Certain Definitions.

(a)“Accrued Obligations” means (i) any accrued and unpaid Base Salary of Executive through the date of termination of employment, payable pursuant to the Bank’s standard payroll policies, (ii) with respect to any termination without Cause, any earned and unpaid bonus of Executive under the Annual Bonus Plan for any completed fiscal year prior to the date of termination of employment, (iii) any compensation and benefits to the extent payable to Executive based on Executive’s participation in any compensation or benefit plan, program or arrangement of Provident through the date of termination of employment, payable in accordance with the terms of such plan, program or arrangement, (iv) any expense reimbursement to which Executive is entitled under Provident’s standard expense reimbursement policy (as applicable) and Sections 3(e) and 10 hereof, and (v) the Initial Payment (if not previously paid).

(b)“Cause” means Executive’s failure or refusal to substantially perform Executive’s duties hereunder, personal dishonesty, incompetence, willful misconduct, breach of fiduciary duty involving personal profit, breach of the Bank’s Code of Ethics, material violation of the Sarbanes-Oxley requirements for officers of public companies that in the reasonable opinion of the Company Board will likely cause substantial financial harm or substantial injury to the reputation of the Company or the Bank, willfully engaging in actions that in the reasonable opinion of the Company Board will likely cause substantial financial harm or substantial injury to the business reputation of the Company or the Bank, willful violation of any law, rule or regulation (other than routine traffic violations or similar offenses) or final cease-and-desist order, or material breach of any provision of this Agreement. The Bank shall furnish Executive

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Exhibit 10.10

with a statement of the grounds for termination for Cause and shall afford Executive a reasonable opportunity to refute the grounds for the proposed termination. For purposes of hereof, no act or failure to act, on the part of Executive, shall be considered “willful” unless it is done, or omitted to be done, by Executive in bad faith or without reasonable belief that Executive’s action or omission was in the best interests of the Company and the Bank. Any act, or failure to act, based upon the direction of the Company Board or the Bath Board based upon the advice of counsel for the Company or the Bank shall be conclusively presumed to be done, or omitted to be done, by Executive in good faith and in the best interests of the Company or the Bank.

(c)“Change in Control” means the occurrence of any of the following with respect to the Company occurring after the Effective Date:

(i)any “person” (as the term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), other than any employee benefit plan of Provident or any affiliate, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 25% or more of the combined voting power of Company’s outstanding securities; or

(ii)individuals who constitute the Company Board on the date hereof (the “Incumbent Board”) cease for any reason to constitute at least a majority thereof, provided that any person becoming a director subsequent to the date hereof whose election was approved by a vote of at least three-quarters of the directors comprising the Incumbent Board, or whose nomination for election by the Company’s stockholders was approved by the Nominating Committee serving under an Incumbent Board, shall be, for purposes of this clause (ii), considered as though such person were a member of the Incumbent Board; or

(iii)the Company consummates a merger, consolidation, share exchange, division or other reorganization or transaction of the Company (a “Fundamental Transaction”) with any other corporation, other than a Fundamental Transaction that results in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than fifty percent (50%) of the combined Voting Power immediately after such Fundamental Transaction of (i) the Company’s outstanding securities, (ii) the surviving entity’s outstanding securities, or (iii) in the case of a division, the outstanding securities of each entity resulting from the division; or

(iv)the shareholders of the Company approve a plan of complete liquidation or winding up of the Company; or

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Exhibit 10.10

(v)the consummation of an agreement for the sale or disposition (in one transaction or a series of transactions) of all or substantially all of the Company’s or the Bank’s assets.

(d)Disability” means that Executive is deemed disabled for purposes of Provident’s long-term disability plan or policy that covers Executive.

(e)“Good Reason” means the occurrence of any of the following events (without Executive’s consent):

(vi)a material adverse change in Executive’s functions, duties, or responsibilities with the Company or the Bank, which change would cause Executive’s position to become one of materially lesser responsibility, importance or scope; or

(vii)a material breach of this Agreement by the Company or the Bank.

Notwithstanding the foregoing, no such event shall constitute “Good Reason” unless (A) Executive shall have given written notice of such event to the Bank within ninety (90) days after the initial occurrence thereof, (B) the Bank shall have failed to cure the situation within thirty (30) days following the delivery of such notice (or such longer cure period as may be agreed upon by the parties), and (C) Executive terminates employment within thirty (30) days after expiration of such cure period.

8.Confidentiality.In the course of Executive’s employment with and involvement with Provident, Sterling and their respective affiliates, Executive has obtained, or may obtain, secret or confidential information, knowledge or data concerning Provident’s, Sterling’s and their respective affiliates’ businesses, strategies, operations, clients, customers, prospects, financial affairs, organizational and personnel matters, policies, procedures and other nonpublic matters, or concerning those of third parties. Executive shall hold in a fiduciary capacity for the benefit of Provident, Sterling and their respective affiliates, all secret or confidential information, knowledge or data relating to Provident, Sterling or any of their affiliated companies, and their respective businesses, which shall have been obtained by Executive during Executive’s employment by Sterling, Provident or any of their affiliates and which shall not be or become public knowledge (other than by acts by Executive or representatives of Executive in violation of this Agreement). All records, files, memoranda, reports, customer lists, documents and the like (whether in paper or electronic format) that Executive has used or prepared during Executive’s employment shall remain the sole property of Provident and shall be promptly returned to Provident’s premises upon any termination of employment. After termination of Executive’s services with Provident, Executive shall not, without the prior written consent of the Bank or as may otherwise be required by law or legal process, communicate or divulge any such information, knowledge or data to anyone other than the Bank and those designated by it. The confidentiality provision contained herein is in addition

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Exhibit 10.10

to and not in limitation of Executive’s duties as an officer and director under applicable law. For purposes of this Section 8 and Section 9 of this Agreement, references to the Company, the Bank, Provident, Sterling and their affiliates shall include their predecessor and any successor entities.

9.Nonsolicitation; Noncompetition; Post-Termination Cooperation.

(a)Executive hereby covenants and agrees that, while employed and for a period of eighteen (18) months following his or her termination of employment with Provident for any reason, Executive shall not, without the prior written consent of the Bank, either directly or indirectly, (i) induce or attempt to induce any employee or independent contractor of the Company, the Bank, Sterling or any of their respective affiliates to leave the Company, the Bank, Sterling or any such affiliate, (ii) hire any person who was an employee or independent contractor of the Company, the Bank, Sterling or any of their respective affiliates until six (6) months after such individual’s relationship with the Company, the Bank, Sterling or such affiliate has been terminated, (iii) induce or attempt to induce any client, customer or other business relation (whether (A) current, (B) former, within the six (6) months after such relationship has been terminated or (C) prospective, provided that there are demonstrable efforts or plans to establish such relationship) of the Company, the Bank, Sterling or any of their respective affiliates to cease doing business or to reduce the amount of business which any client, customer or other business relation has customarily done or contemplates doing with the Company, the Bank, Sterling or any such affiliate, whether or not the relationship between the Company, the Bank, Sterling or any such affiliate and such client, customer or other business relation was originally established, in whole or in part, through Executive’s efforts, or in any way interfere with the relationship between any such client, customer or business relation, on the one hand, and the Company, the Bank, Sterling or any such affiliate, on the other hand.

(b)Executive acknowledges that, in the course of Executive’s employment with the Company, the Bank, Sterling and their respective affiliates (including their predecessor and any successor entities), Executive has become familiar, or will become familiar, with the Company’s, the Bank’s, Sterling’s and their respective affiliates’ trade secrets and with other confidential information, knowledge or data concerning the Company, the Bank, Sterling, their respective affiliates and their respective predecessors, and that Executive’s services have been and will be of special, unique and extraordinary value to the Company, the Bank, Sterling and their respective affiliates. Therefore, Executive agrees that, while employed and for a period of twelve (12) months following his or her termination of employment with Provident for any reason (the “Noncompetition Period”), Executive shall not, directly or indirectly, own, manage, operate, control, be employed by (whether as an employee, director consultant, independent contractor or otherwise, and whether or not for compensation) or render services in any capacity to a Competing Business (as defined below), in any locale of any country in which the Company, the Bank, Sterling or any of their respective affiliates conducts business. For purposes of this

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Exhibit 10.10

Agreement, a “Competing Business” shall mean any person, firm, corporation or other entity, in whatever form, engaged in the business in which the Company, the Bank, Sterling and their respective affiliates engage, including the sale or servicing of banking and financial products and services, including business and consumer lending, asset-based financing, residential mortgage warehouse funding, factoring/accounts receivable management services, equipment financing, commercial and residential mortgage lending and brokerage, deposit services (including municipal deposit services) and trade financing, sale of annuities, life and health insurance products, title insurance services, real estate investment trusts and investment advisory services. Nothing herein shall prohibit Executive from being a passive owner of not more than 1%of the outstanding equity interest in any entity which is publicly traded, so long as Executive has no active participation in the business of such entity.

(c)Executive hereby agrees that prior to accepting employment with any other person or entity during the Noncompetition Period, Executive shall provide such prospective employer with written notice of this Section 9, with a copy of such notice delivered promptly to the Bank.

(d)During the Employment Period and following the cessation of Executive’s employment for any reason, Executive shall, upon reasonable notice, (i) furnish such information and assistance to the Company, the Bank, Sterling and/or their respective affiliates, as may reasonably be requested by the Company, the Bank, Sterling or such affiliates, with respect to any matter, project, initiative or effort for which Executive is or was responsible or has relevant knowledge or had substantial involvement in while employed by Sterling or while employed by the Bank under this Agreement, and (ii) cooperate with the Company, the Bank, Sterling and their respective affiliates during the course of all third-party proceedings arising out of the Company, the Bank, Sterling and their respective affiliates’ business about which Executive has knowledge or information.

(e)Executive acknowledges and agrees that: (i) the purposes of the foregoing covenants, including without limitation the noncompetition covenant of Section 9(b), are to protect the goodwill and trade secrets and confidential information of the Company, the Bank, Sterling and their respective affiliates; (ii) that the foregoing covenants, including without limitation the noncompetition covenant of Section 9(b), are being entered into in connection with the transactions contemplated by the Merger Agreement; and (iii) because of the nature of the business in which the Company, the Bank, Sterling and their respective affiliates are engaged, and because of the nature of the trade secrets and confidential information to which Executive has access, it would be impractical and excessively difficult to determine the actual damages of the Company and its affiliates in the event Executive breached any of the covenants of Section 8 or this Section 9. Executive understands that the covenants may limit Executive’s ability to earn a livelihood in a Competing Business. Executive acknowledges that the

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Exhibit 10.10

Company would be irreparably injured by a violation of Section 8 or this Section 9, and that it is impossible to measure in money the damages that will accrue to the Company by reason of a failure by Executive to perform any of Executive’s obligations under Section 8 or this Section 9. Accordingly, if the Company or its affiliates institutes any action or proceeding to enforce any of the provisions of Section 8 or this Section 9, to the extent permitted by applicable law, Executive hereby waives the claim or defense that the Company or its affiliates have an adequate remedy at law, and Executive shall not urge in any such action or proceeding the defense that any such remedy exists at law. Furthermore, in addition to other remedies that may be available (including, without limitation, clawback of the shares received on vesting of the Retention Award (or recoupment of the value derived therefrom), as provided in Section 3(c)(ii) of this Agreement, and termination of the obligation for the Company and the Bank to pay compensation or benefits hereunder due to Executive’s failure to comply in all material respects with the restrictive covenants in Section 8, 9(a) or 9(b), subject to written notice by the Bank and a reasonable opportunity for Executive to cure, if subject to cure), the Company and its affiliates shall be entitled to specific performance and other injunctive relief, without the requirement to post a bond. If any of the covenants set forth in Section 8 or this Section 9 is finally held to be invalid, illegal or unenforceable (whether in whole or in part), such covenant shall be deemed modified to the extent, but only to the extent, of such invalidity, illegality or unenforceability, and the remaining covenants shall not be affected thereby. Any termination of Executive’s services or of this Agreement shall have no effect on the continuing operation of Section 8 and this Section 9, which shall survive in accordance with their terms.

10.Section 409A of the Code

(a)This Agreement is intended to comply with the requirements of Section 409A of the Code (including the exceptions thereto), to the extent applicable, and the Company shall administer and interpret this Agreement in accordance with such requirements. If any provision contained in this Agreement conflicts with the requirements of Section 409A of the Code (or the exemptions intended to apply under the Agreement), this Agreement shall be deemed to be reformed to comply with the requirements of Section 409A of the Code (or the applicable exemptions thereto). Notwithstanding anything to the contrary herein, for purposes of determining Executive’s entitlement to the payment or receipt of amounts or benefits that constitute nonqualified deferred compensation within the meaning of Section 409A, Executive’s employment shall not be deemed to have terminated unless and until Executive incurs a “separation from service” as defined in Section 409A of the Code. Reimbursement of any expenses provided for in this Agreement shall be made promptly upon presentation of documentation in accordance with Provident’s policies with respect thereto as in effect from time to time (but in no event later than the end of calendar year following the year such expenses were incurred); provided, however, that in no event shall the amount of expenses eligible for reimbursement hereunder during a calendar year affect the expenses eligible for reimbursement

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Exhibit 10.10

in any other taxable year. Notwithstanding anything to the contrary herein, if a payment or benefit under this Agreement that constitutes nonqualified deferred compensation within the meaning of Section 409A is payable or provided due to a “separation from service” for purposes of the rules under Treas. Reg. § 1.409A-3(i)(2) (payments to specified employees upon a separation from service) and Executive is determined to be a “specified employee” (as determined under Treas. Reg. § 1.409A-1(i) and related Company procedures), such payment shall, to the extent necessary to comply with the requirements of Section 409A of the Code, be made on the later of (x) the date specified by the foregoing provisions of this Agreement or (y) the date that is six (6) months after the date of Executive’s separation from service (or, if earlier, the date of Executive’s death). Any installment payments that are delayed pursuant to this Section 10 shall be accumulated and paid in a lump sum on the first day of the seventh month following the date of Executive’s separation from service (or, if earlier, upon Executive’s death), and the remaining installment payments shall begin on such date in accordance with the schedule provided in this Agreement. The Severance Benefits and CIC Severance Benefits are intended not to constitute deferred compensation subject to Section 409A of the Code to the extent such Severance Benefits or CIC Severance Benefits are covered by (i) the “short-term deferral exception” set forth in Treas. Reg. § 1.409A-1(b)(4), (ii) the “two times severance exception” set forth in Treas. Reg. § 1.409A-1(b)(9)(iii), or (iii) the “limited payments exception” set forth in Treas. Reg. § 1.409A-1(b)(9)(v)(D). The short-term deferral exception, the two times severance exception and the limited payments exception shall be applied to the Severance Benefits or CIC Severance Benefits, as applicable, in order of payment in such manner as results in the maximum exclusion of such Severance Benefits or CIC Severance Benefits, as applicable, from treatment as deferred compensation under Section 409A of the Code. Each installment of the Severance Benefits or CIC Severance Benefits, as applicable, and any other payments or benefits that constitute nonqualified deferred compensation within the meaning of Section 409A shall be deemed to be a separate payment for purposes of Section 409A of the Code.

11.Additional Termination and Suspension Provisions

(a)If Executive is suspended and/or temporarily prohibited from participating in the conduct of the Bank’s affairs by a notice served under Section 8(e)(3) or (g)(1) of the Federal Deposit Insurance Act, as amended (12 U.S.C. §§ 1818(e)(3) and (g)(1)), all obligations of the Company and the Bank under this Agreement shall be suspended as of the date of service unless stayed by appropriate proceedings. If the charges in the notice are dismissed, the Company and the Bank may in their discretion (but subject in all events to the requirements of Code Section 409A), (i) pay Executive all of the compensation withheld while the Company’s and the Bank’s obligations under this Agreement were suspended and (ii) reinstate (in whole) any of the Company’s and the Bank’s obligations which were suspended, and in exercising such discretion, the Company and the Bank shall consider the facts and make a decision promptly following such dismissal of charges and act in good faith in deciding whether to pay any

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Exhibit 10.10

withheld compensation to Executive, and to reinstate any suspended obligations of the Company and the Bank.

(b)If Executive is removed and/or permanently prohibited from participating in the conduct of the Bank’s affairs by an order issued under Section 8(e)(4) or (g)(1) of the Federal Deposit Insurance Act, as amended (12 U.S.C. §§ 1818(e)(4) or (g)(1)), all obligations of the Company and the Bank under this Agreement shall terminate as of the effective date of the order, but vested rights of the parties shall not be affected.

(c)If the Bank is in default, as defined in Section 3(x)(1) of the Federal Deposit Insurance Act, as amended (12 U.S.C. §§ 1813(x)(1)), all obligations of the Company and the Bank under this Agreement shall terminate as of the date of default, but this provision shall not affect any vested rights of the parties.

(d)All obligations under this Agreement shall be terminated, except to the extent determined that continuation of this Agreement is necessary for the continued operation of the Bank, (i) by the OCC or other applicable banking regulator (the “Regulator”), at the time the FDIC enters into an agreement to provide assistance to or on behalf of the Bank under the authority contained in Section 13(c) of the Federal Deposit Insurance Act, as amended; or (ii) by the Regulator, at the time the Regulator approves a supervisory merger to resolve problems related to operation of the Bank or when the Bank is determined by the Regulator to be in an unsafe or unsound condition. Any rights of the parties that have already vested, however, shall not be affected by such action.

(e)If any regulation applicable to the Company or the Bank shall hereafter be adopted, amended or modified, or if any new regulation applicable to the Company or the Bank and effective after the date of this Agreement:

(i)shall require the inclusion in this Agreement of a provision not presently included in this Agreement, then the foregoing provisions of this Section shall be deemed amended to the extent necessary to give effect in this Agreement to any such amended, modified or new regulation; and

(ii)shall permit the exclusion of a limitation in this Agreement on the payment to Executive of an amount or benefit provided for presently in this Agreement, then the foregoing provisions of this Section shall be deemed amended to the extent permissible to exclude from this Agreement any such limitation previously required to be included in this Agreement by a regulation prior to its amendment, modification or repeal.

12.Arbitration.Any dispute or controversy arising out of, under, in connection with, or relating to this Agreement or any amendment hereof shall be submitted to binding arbitration before one arbitrator in New York County, New York, in accordance with the

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Exhibit 10.10

Commercial Arbitration Rules of the American Arbitration Association for expedited arbitration, and any judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.

13.Indemnification and Insurance

(a)To the extent that Provident provides its senior executive officers with coverage under a directors’ and officers’ liability insurance policy, Provident shall provide such coverage to Executive on substantially the same basis. Provident shall indemnify Executive (and Executive’s heirs, executors and administrators) to the fullest extent permitted under applicable law against all expenses and liabilities reasonably incurred by Executive in connection with or arising out of any action, suit or proceeding in which he may be involved by reason of Executive’s having been an officer of the Bank (whether or not Executive continues to be an officer at the time of incurring such expenses or liabilities and for a period of six years following Executive’s termination of employment with Provident), such expenses and liabilities to include, but not be limited to, judgments, court costs and attorneys’ fees and the cost of reasonable settlements (such settlements must be approved by the Company Board). Any such indemnification shall be made consistent with Regulations and Section 18(k) of the Federal Deposit Insurance Act, 12 U.S.C. § 1828(k), and the regulations issued thereunder in 12 C.F.R. Part 359.

(b)Notwithstanding the foregoing, no indemnification shall be made by the Bank unless the Bank gives the Regulator, to the extent required, at least 60 days’ notice of its intention to make such indemnification. Such notice shall state the facts on which the action arose, the terms of any settlement and any disposition of the action by a court. Such notice, a copy thereof, and a certified copy of the resolution containing the required determination by the Company Board shall be sent to the Regulator, to the extent required. The notice period for any such notice shall run from the date of such receipt. No such indemnification shall be made if the Regulator advises the Bank in writing within such notice period, of its objection thereto.

(c)Executive shall be entitled to indemnification pursuant to Section 6.7 of the Merger Agreement, and Provident’s obligations pursuant to this Section 13 shall be in addition to, and not in limitation of, its obligations pursuant to Section 6.7 of the Merger Agreement.

14.Notices.The persons or addresses to which mailings or deliveries shall be made may change from time to time by notice given pursuant to the provisions of this Section. Any notice or other communication given pursuant to the provisions of this Section shall be deemed to have been given (a) if sent by messenger, upon personal delivery to the party to whom the notice is directed; (b) if sent by reputable overnight courier, one business day after delivery to such courier; (c) if sent by facsimile, upon electronic or telephonic confirmation of receipt from

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Exhibit 10.10

the receiving facsimile machine; and (d) if sent by mail, three business days following deposit in the United States mail, properly addressed, postage prepaid, certified or registered mail with return receipt requested. All notices required or permitted to be given hereunder shall be addressed as follows:

If to Executive:	Michael Bizenov At the address most recently on the books and records of the Bank.
If to the Company or the Bank:	Provident New York Bancorp or Provident Bank, as applicable 400 Rella Boulevard Montebello, New York 10901 Attention: General Counsel

15.Amendment.No modifications of this Agreement shall be valid unless made in writing and signed by the parties hereto.

16.    Miscellaneous

(a)Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon Executive, his or her legal representatives and estate and intestate distributees, and the Company and the Bank, their successors and assigns, including any successor by merger or consolidation or a statutory receiver or any other person or firm or corporation to which all or substantially all of the assets and business of the Company or the Bank, as applicable, may be sold or otherwise transferred. Any such successor of the Company or the Bank shall be deemed to have assumed this Agreement and to have become obligated hereunder to the same extent as the Company or the Bank, as applicable, and Executive’s obligations hereunder shall continue in favor of such successor.

(b)Severability. A determination that any provision of this Agreement is invalid or unenforceable shall not affect the validity or enforceability of any other provision hereof.

(c)Waiver. Failure to insist upon strict compliance with any terms, covenants or conditions hereof shall not be deemed a waiver of such term, covenant or condition. A waiver of any provision of this Agreement must be made in writing, designated as a waiver, and signed by the party against whom its enforcement is sought. Any waiver or relinquishment of any right or power hereunder at any one or more times shall not be deemed a waiver or relinquishment of such right or power at any other time or times.

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Exhibit 10.10

(d)Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, and all of which shall constitute one and the same Agreement.

(e)Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York, without reference to conflicts of law principles, except to the extent governed by federal law in which case federal law shall govern. Any payments made to Executive pursuant to this Agreement or otherwise are subject to all applicable banking laws and regulations, including, without limitation, 12 U.S.C. §§ 1828(k) and any regulations promulgated thereunder.

(f)Withholding. The Company and the Bank may withhold from any amounts payable to Executive hereunder all federal, state, city or other taxes that the Company or the Bank may reasonably determine are required to be withheld pursuant to any applicable law or regulation (it being understood, that Executive shall be responsible for payment of all taxes in respect of the payments and benefits provided herein).

(g)Headings and Construction. The headings of sections in this Agreement are for convenience of reference only and are not intended to qualify the meaning of any Section. Any reference to a Section number shall refer to a Section of this Agreement, unless otherwise specified.

(h)Entire Agreement. This instrument contains the entire agreement of the parties relating to the subject matter hereof, and supersedes in its entirety any and all prior agreements, understandings or representations relating to the subject matter hereof, including without limitation, the Prior Agreement, which shall terminate as of the Effective Time; providedthat, notwithstanding the termination of the Prior Agreement, Section 5 of the Prior Agreement shall survive as if fully set forth herein, and shall survive any termination of this Agreement, solely with respect to payments that are parachute payments as a result of the “change in ownership or control” (within the meaning of Section 280G of the Code) of Sterling resulting from the Merger, regardless of whether such payments are determined to be parachute payments by Provident, Sterling or the Internal Revenue Service (for the avoidance of doubt, Section 6(k) of this Agreement shall apply to payments that are parachute payments as a result of a “change in ownership or control” (within the meaning of Section 280G of the Code) of the Company occurring after the Effective Date).

[Signatures on next page]

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Exhibit 10.10

IN WITNESS WHEREOF, the Company and the Bank have caused this Agreement to be executed and Executive has hereunto set his or her hand, all as of the date specified above.

April 3, 2013 Date	EXECUTIVE /s/ Michael Bizenov Michael Bizenov
April 3, 2013 Date	PROVIDENT NEW YORK BANCORP /s/ Jack L. Kopnisky Name: Jack L. Kopnisky Title: President and Chief Executive Officer
April 3, 2013 Date	PROVIDENT BANK /s/ Jack L. Kopnisky Name: Jack L. Kopnisky Title: President and Chief Executive Officer

Exhibit 10.10

Exhibit A

RELEASE AGREEMENT

THIS RELEASE AGREEMENT (hereinafter “Agreement”) is made and entered into on the [___] day of [________], 20[__] by and between Provident New York Bancorp (the “Company”) and Michael Bizenov (“Executive”).

WHEREAS, the Company and Executive are parties to an Employment Agreement, dated as of April 3, 2013 (the “Employment Agreement”), pursuant to which Executive is eligible, subject to the terms and conditions set forth in the Employment Agreement, to receive certain compensation and benefits in connection with certain terminations of Executive’s services to the Company.

NOW, THEREFORE, in consideration of the Company agreeing to provide the compensation and benefits under Section [___] of the Employment Agreement to Executive and of other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged by the parties, it is agreed as follows:

1.In exchange for the consideration referenced above, Executive hereby completely, irrevocably, and unconditionally releases and forever discharges the Company, and any of its predecessor or affiliated companies, and each and all of their officers, agents, directors, supervisors, employees, representatives, and their successors and assigns, and all persons acting by, through, under, for, or in concert with them, or any of them, in any and all of their capacities (hereinafter individually or collectively, the “Released Parties”), from any and all charges, complaints, claims, and liabilities of any kind or nature whatsoever, known or unknown, suspected or unsuspected (hereinafter referred to as “claim” or “claims”) which Executive at any time heretofore had or claimed to have or which Executive may have or claim to have regarding events that have occurred as of the Effective Date of this Agreement, including, without limitation, those based on: any employee welfare benefit or pension plan governed by the Employee Retirement Income Security Act of 1974, as amended (hereinafter “ERISA”) (provided that this release does not extend to any vested benefits of Executive under Company’s pension and welfare benefit plans as of the date of Executive’s termination of services); the Civil Rights Act of 1964, as amended (race, color, religion, sex and national origin discrimination and harassment); the Civil Rights Act of 1966 (42 U.S.C. § 1981) (discrimination); the Age Discrimination in Employment Act of 1967, as amended (hereinafter “ADEA”); the Older Workers Benefit Protection Act, as amended; the Americans With Disabilities Act, as amended (hereinafter “ADA”); § 503 of the Rehabilitation Act of 1973; the Fair Labor Standards Act, as amended (wage and hour matters); the Family and Medical Leave Act, as amended (family leave

Exhibit 10.10

matters); any other federal, state, or local laws or regulations regarding employment discrimination or harassment, wages, insurance, leave, privacy or any other matter; any negligent or intentional tort; any contract, policy or practice (implied, oral, or written); or any other theory of recovery under federal, state, or local law, and whether for compensatory or punitive damages, or other equitable relief, including, but not limited to, any and all claims which Executive may now have or may have had, arising from or in any way whatsoever connected with Executive’s employment, service, or contacts, with the Company or any other of the Released Parties. Notwithstanding the foregoing, the released claims do not include, and this Agreement does not release, any: (a) rights to compensation and benefits provided under Section [__] of the Employment Agreement (or any rights referenced in Section 16(h) of the Employment Agreement that, by their terms, are intended to survive the Employment Period); (b) rights to indemnification Executive may have under applicable law, the bylaws or certificate of incorporation of the Company, any applicable director and officer liability policy or under the Employment Agreement, as a result of having served as an officer or director of the Company or any of its affiliates; and (c) any claims that Executive may not by law release through a settlement agreement such as this.

2.To the extent permitted by law, Executive agrees that Executive will not cause or encourage any future legal proceedings to be maintained or instituted against any of the Released Parties. To the extent permitted by law, Executive agrees that Executive will not accept any remedy or recovery arising from any charge filed or proceedings or investigation conducted by the EEOC or by any state or local human rights or employment rights enforcement agency relating to any of the matters released in this Agreement.

3.Older Workers Benefit Protection Act /ADEA Waiver:

(g)Executive acknowledges that the Company has advised Executive in writing to consult with an attorney of Executive’s choice before signing this Agreement, and Executive has been given the opportunity to consult with an attorney of Executive’s choice before signing this Agreement.

(h)Executive acknowledges that Executive has been given the opportunity to review and consider this Agreement for a full twenty-one days before signing it, and that, if Executive has signed this Agreement in less than that time, Executive has done so voluntarily in order to obtain sooner the benefits of this Agreement.

(i)Executive further acknowledges that Executive may revoke this Agreement within seven (7) days after signing it, provided that this Agreement will not become effective until such seven (7) day period has expired. To be effective, any such revocation must be in writing and delivered to Company’s principal place of business by the close of business on the seventh (7th) day after signing the Agreement and must expressly state Executive’s intention

Exhibit 10.10

to revoke this Agreement. Provided that Executive does not timely revoke this Agreement, the eighth (8th) day following Executive’s execution hereof shall be deemed the “Effective Date” of this Agreement.

(j)The Parties also agree that the release provided by Executive in this Agreement does not include a release for claims under the ADEA arising after the date Executive signs this Agreement.

4.Executive shall promptly turn over to the Company any and all documents, files, computer records, or other materials belonging to, or containing confidential or proprietary information obtained from, the Company that are in Executive’s possession, custody, or control, including any such materials that may be at Executive’s home.

5.This Agreement shall not in any way be construed as an admission by the Company of any acts of unlawful conduct, wrongdoing or discrimination against Executive, and

the Company specifically disclaims any liability to Executive on the part of itself, its employees, and its agents.

6.This Agreement cannot be amended, modified, or supplemented in any respect except by written agreement entered into and signed by the parties hereto.

7.The Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard to the principles of conflict of laws.

8.Executive hereby acknowledges that Executive has read and understands the terms of this Agreement and that Executive signs it voluntarily and without coercion. Executive further acknowledges that Executive was given an opportunity to consider and review this Agreement and the waivers contained in this Agreement, that Executive has done so and that the waivers made herein are knowing, conscious and with full appreciation that Executive is forever foreclosed from pursing any of the rights so waived.

9.The Agreement may be signed in counterparts, and each counterpart shall be considered an original for all purposes.

Exhibit 10.10

PLEASE READ THIS AGREEMENT CAREFULLY; IT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer, and Executive has executed this Agreement, as of the date first written above.

EXECUTIVE

/s/ Michael Bizenov

Michael Bizenov

PROVIDENT NEW YORK BANCORP

/s/ Jack L. Kopnisky

Name: Jack L. Kopnisky

Title: President and Chief Executive Officer

PROVIDENT BANK

/s/ Jack L. Kopnisky

Name: Jack L. Kopnisky

Title: President and Chief Executive Officer

EX-10.11

STRICTLY CONFIDENTIAL

EMPLOYMENT AGREEMENT

This Employment Agreement ("Agreement") is made and entered into as of the April 3, 2013, by and among Provident New York Bancorp, a Delaware corporation (the "Company"), Provident Bank, a savings bank organized and existing under the laws of the United States of America (the "Bank"; and together with the Company, "Provident"), and Howard M. Applebaum ("Executive"), to be effective upon the occurrence of the Effective Time (as defined in the Agreement and Plan of Merger, dated as of April 3, 2013, by and between Sterling Bancorp, a New York corporation ("Sterling"), and the Company (the "Merger• Agreement")). If the Effective Time does not occur, this Agreement shall be null and void ab initio, and of no further force and effect.

WITNESSETH:

WHEREAS, Executive is currently employed by Sterling as Executive Vice President and Chief Lending Officer and party to that certain Change in Control Severance Agreement, dated as of April 3, 2002, by and between Executive and Sterling, as amended (the "Prior Agreement"); and

WHEREAS, the Board of Directors of the Company (the "Company Board") has determined that it is in the best interests of Provident and its shareholders to assure that Provident will have the continued dedication of Executive following the Merger (as defined in the Merger Agreement) and, in order to accomplish this objective, the Company Board and the Board of Directors of the Bank (the "Bank Board") have caused the Company and the Bank, respectively, to enter into this Agreement; and

WHEREAS, effective as of the date on which the Effective Time occurs (the "Effective Date"), the Company and the Bank desire to continue to employ Executive as Executive Vice President, President Speciality Lending Group of the Company and the Bank pursuant to the terms of this Agreement, and the Prior Agreement shall terminate (other than with respect to Section 5 ("Certain Additional Payments by the Company")) of the Prior Agreement, which shall survive as provided in Section 16(h) hereof); and

WHEREAS, Executive desires to serve in such positions.

NOW, THEREFORE, in consideration of the premises and the mutual covenants and obligations hereinafter set forth, the Company, the Bank and Executive hereby agree as follows:

1.    Employment.

Subject to the terms set forth herein, the Company and the Bank agree to employ

Executive as Executive Vice President, President Specialty Lending Group of the Company and the Bank, and Executive hereby accepts such employment. As Executive Vice President,

President Specialty Lending Group of the Company and the Bank, Executive shall have such authority, perform_ such duties, and fulfill such responsibilities commonly incident to such positions, as well as those that are delegated to Executive by the Chief Executive Officer of the Company. While employed, Executive shall report to Chief Executive Officer of the Company, and Executive shall devote his or her full business time and attention to the business and affairs

of the Company and the Bank, and shall use his or her best efforts to advance the interests of the Company and the Bank; provided that, Executive may engage in outside activities in accordance with Section 5.

2.    Employment Period.

(a)Duration. Executive's period of employment with the Company and the Bank under this Agreement shall begin on the Effective Date and shall continue until the day following the third anniversary of the Effective Date (or, if a Change in Control occurs prior to such day, the first anniversary of the date of the Change in Control, if later), unless terminated prior thereto by either Provident or Executive in accordance with Section 6 hereof (such period of employment being the "Employment Period").

(b)Employment Following Termination of Employment Period. Nothing in this Agreement shall mandate or prohibit a continuation of Executive's employment following the expiration of the Employment Period upon such terms and conditions as the Company, the Bank and Executive may agree.

3.    Compensation.

(a)Base Salary. In consideration for the services performed by Executive during the Employment Period, the Bank shall pay to Executive an annual salary ("Base Salary")of $400,000.00. The Base Salary shall be paid in approximately equal installments in accordance with the Bank's customary payroll practices. Executive's Base Salary shall be reviewed at least annually during the Employment Period for possible upward adjustment, and Executive's Base Salary shall not be reduced without Executive's consent. The term Base Salary, as utilized in this Agreement, shall refer to Base Salary as it may be increased.

(b)Annual Bonus. For each fiscal year of the Company during the Employment Period beginning with the fiscal year commencing on October 1, 2013, Executive shall be eligible to participate in the Company's Short-Term Incentive Plan (or any successor thereto) (the "Annual Bonus Plan"). Executive's target annual bonus under the Annual Bonus Plan shall be 30% of Executive's Base Salary (the "Target Bonus"). The actual amount of Executive's annual bonus shall depend upon the achievement of performance goals established by the Compensation Committee of the Company Board, with the actual bonus to be determined by the Compensation Committee of the Company Board. The terms and conditions of the Annual Bonus Plan and the payments to Executive thereunder shall be applied on a basis not less favorable to Executive than to other similarly situated senior executives of Provident generally. Annual bonuses awarded to Executive under the Annual Bonus Plan are referred to herein as "Annual Bonuses." The payment of any such Annual Bonus shall be subject to all the terms and conditions of the applicable Annual Bonus Plan.

(c)Long-Term Compensation.

(i)    During the Employment Period, Executive shall be eligible to

participate in any equity and/or other long-term compensation programs established by the Company from time to time for senior executive officers. Executive's target annual equity award opportunity shall be 30% of the Base Salary, with the actual award to be determined by the Compensation Committee of the Company Board, on a basis not less favorable to Executive than to other similarly situated senior executives of Provident generally.

(ii)    In consideration for Executive's continued employment and for

agreeing to the covenants set forth in Sections 8, 9(a) and 9(b), on the Effective Date, Executive shall be granted an award consisting of either restricted stock or restricted stock units (at the Company's election) with an aggregate grant date value of $600,000.00 (the "Retention Award"), which award shall vest and be settled in equal annual installments on each of the first three anniversaries of the Effective Date, subject, except as provided below, to Executive's continued employment with the Bank and compliance in all material respects with the restrictive covenants in Sections 8, 9(a) and 9(b) below, subject to written notice by the Bank and a reasonable opportunity for Executive to cure, if subject to cure, in each case, through the applicable vesting date. The number of shares of the Company's common stock subject to the Retention Award shall be determined by dividing (x) $600,000.00 by (y) the Fair Market Value (as defined under the Provident New York Bancorp 2012 Stock Incentive Plan (the "StockPlan")) of a share of the Company's common stock on the Effective Date. If Executive's employment with the Bank is terminated without Cause (as defined below), for Good Reason (as defined below) or due to death or Disability (as defined below), the Retention Award shall vest in full (with settlement to occur as soon as reasonably practicable (but in no event later than 60 days) following such termination of employment), subject, in each case other than a termination due to death, to Section 6(g) and, until the third anniversary of the Effective Date, to the clawback of the shares received on vesting of the Retention Award (or recoupment of the value derived from the proceeds of any sale of any such shares (but not greater than the Fair Market Value of such shares on the applicable vesting date)) if Executive does not comply in all material respects with the restrictive covenants set forth in Sections 8, 9(a) and 9(b), subject to written notice by the Bank and a reasonable opportunity for Executive to cure, if subject to cure. Except as provided herein, the Retention Award shall be subject to the terms and conditions of the Company's standard form of award agreement and such other customary terms and conditions as the Company may establish; provided that, for the avoidance of doubt, (A) the vesting and termination provisions specified herein shall control notwithstanding the vesting and termination, including retirement, provisions contained in the standard form of award agreement or the Stock Plan and (B) such grant may be made pursuant to the "employment inducement awards" exemption under the New York Stock Exchange Listed Company Manual. Notwithstanding the foregoing, if any portion of the Retention Award cannot be granted under the Stock Plan or pursuant to the "employment inducement awards" exemption under the New York Stock Exchange Listed Company Manual or for any other reason, such portion of the Retention Award shall be granted in the form of cash-settled restricted stock units, which cash-settled restricted stock units shall otherwise have terms and conditions consistent with those applicable to any portion of the Retention Award granted as restricted stock or stock-settled restricted stock units, as applicable.

(d)    Employee Benefit Plans; Paid Time Off.

(i)    Benefit Plans. During the Employment Period, Executive shall be

an employee of the Company and the Bank, and shall be entitled to participate, on terms and conditions not less favorable to Executive than other similarly situated senior executives of Provident generally, in Provident's (A) tax-qualified defined contribution retirement plans (currently, Provident's 401(k) and Profit Sharing Plan and Employee Stock Ownership Plan); (B) group life, health and disability insurance plans, and supplemental long-term disability and long-term care plans; and (C) any other employee benefit plans and programs and perquisites in accordance with Provident's customary practices with respect to other similarly situated senior executives of Provident generally, provided that Executive's participation shall be subject to the terms of such plans and programs (including being a member of the class of employees currently eligible to commence participating in the plan or program), and provided, further, that nothing herein shall limit Provident's right to amend or terminate any such plans or programs. Executive agrees that the increase in Executive's benefit resulting from the change in control provision under Section 3.09 of the Sterling Supplemental Pension Benefit Plan (the "SERP") shall not exceed $327,000.00, notwithstanding anything to the contrary. In addition, Executive shall be entitled to (I) subject to the immediately preceding sentence, payment of Executive's accrued benefit under the SERP in accordance with the terms of the SERP, (II) the rights and benefits under the applicable split-dollar life insurance agreement in accordance with the terms thereof, provided that for purposes of calculating Executive's death benefit under such agreement, Executive's "annual base compensation" shall be the annual base salary applicable under such agreement as of immediately prior to the Effective Time, and (III) all accrued and vested rights and benefits under the terms of the broad-based employee benefit plans and programs of Sterling immediately prior to the Effective Time (for the avoidance of doubt, other than any rights relating to separation or termination pay or benefits).

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(ii)    Paid Time Off. Executive shall be entitled to four (4) weeks of

paid vacation time each year during the Employment Period (measured on a fiscal or calendar year basis, in accordance with Provident's usual practices), as well as sick leave, holidays and other paid absences in accordance with Provident's policies and procedures for senior

executives. Any unused paid time off during an annual period may be carried forward into the following year to the extent permitted under Provident's policies and procedures and Executive shall be compensated for any unused paid time off to the extent provided for under Provident's policies and procedures as applicable to other similarly situated senior executives of Provident generally.

(e)Expenses. The Bank shall reimburse Executive for Executive's ordinary and necessary business expenses and travel and entertainment expenses incurred in connection with the performance of Executive's duties under this Agreement upon presentation to the Bank of an itemized account of such expenses in such form as the Bank may reasonably require.

(f)Initial Payment. In full settlement of the Company, Sterling and their respective affiliates' obligations under the Prior Agreement, within 10 business days after the Effective Date, the Bank shall pay to Executive a lump sum payment in cash of $675,000.00 (the "Initial Payment"). The Initial Payment shall not be considered compensation for purposes of determining payments or benefits due under any other employee benefit plan, program or agreement.

4.    Principal Place of Employment.

Executive's principal place of employment during the Employment Period shall be at the Company's offices in New York, New York or at such other location upon which the Company and Executive may mutually agree, and subject to travel to such other locations as shall be necessary to fulfill the employment duties.

5.Outside Activities and Board Memberships

During the Employment Period, Executive shall not provide services on behalf of any financial institution or other entity or business that competes with the Company, the Bank or any of their affiliates (each, a "competitive business"), or any subsidiary or affiliate of any such competitive business, as an employee, consultant, independent contractor, agent, sole proprietor, partner, joint venturer, corporate officer or director; nor shall Executive acquire, by reason of purchase during the Employment Period, the ownership of more than 1% of the outstanding equity interest in any such competitive business. In addition, during the Employment Period, Executive shall not, directly or indirectly, acquire a beneficial interest, or engage in any joint venture in real estate with Provident. Subject to the foregoing, Executive may serve on boards of directors of unaffiliated corporations, subject to approval by the Company Board, which shall not be unreasonably withheld, and boards of directors of not-for-profit organizations and trade associations, subject to approval by the Company in accordance with Provident's policies and procedures. Except as specifically set forth herein, Executive may engage in personal business and investment activities, including real estate investments and personal investments in the stocks, securities and obligations of other financial institutions (or their holding companies). Notwithstanding the foregoing, in no event shall Executive's outside activities, services, personal business and investments materially interfere with the performance of Executive's duties under this Agreement. Nothing in this Section 5 shall limit any of Executive's obligations under Section 9 hereof.

6.Termination of Employment.

(a)    Termination by Provident without Cause.

(1)    Provident shall have the right to terminate Executive's

employment at any time during the Employment Period without Cause by giving notice to Executive as described in Section 6(f). For sake of clarity, neither termination of Executive's employment pursuant to Section 6(e) nor upon or after expiration of the Employment Period shall constitute a termination without Cause for purposes of Section 3(c) or this Section 6.

(ii)    In the event that Provident terminates Executive's employment

during the Employment Period without Cause:

(A)The Bank shall pay or provide to Executive any Accrued Obligations, and Executive shall, subject to Section 6(g), have the rights in respect of the Retention Award as set forth in Section 3(c);

(b)If such termination occurs other than as provided in Section 6(a)(ii)(C) below, then, subject to Section 6(g), the Bank shall (I) pay to Executive, within sixty (60) days following the date of termination, a lump sum cash payment (the "Severance Payment") equal to the sum of (x) Executive's Base Salary immediately prior to termination of employment plus (y) the

amount of Executive's Target Bonus for the fiscal year including Executive's termination of employment, and (II) pay to Executive on a monthly basis commencing with the first month following Executive's termination of employment, and continuing until the eighteenth month following Executive's termination of employment, a cash payment equal to the monthly COBRA premium in effect as of the date of Executive's termination of employment for the level of coverage in effect for Executive under Provident's group health plan (the "COBRA Payments" and, together with the Severance Payment, the "Severance Benefits"); and

(C)    If such termination occurs upon or within 12 months after a

Change in Control, or Executive reasonably demonstrates (or the Bank agrees) that such termination was at the request of a third party who had indicated an intention or taken steps reasonably calculated to effect a Change in Control, then, subject to Section 6(g), the Bank shall (I) pay to Executive, within sixty (60) days following the date of termination, a lump sum cash payment (the "CIC Severance Payment") equal to two (2) times the sum of (x) Executive's Base Salary immediately prior to termination of employment plus (y) the amount of Executive's Target Bonus for the fiscal year including Executive's termination of employment, and (II) pay to Executive on a monthly basis commencing with the first month following Executive's termination of employment, and continuing until the eighteenth month following Executive's termination of employment, the COBRA Payments (together with the CIC Severance Payment, the "CIC Severance Benefits").

(c)Termination by the Company for Cause. Provident shall have the right to terminate Executive's employment at any time during the Employment Period for Cause by giving notice to Executive as provided in Section 6(f) hereof. In the event Executive's employment is terminated for Cause, Provident's sole obligation shall be to pay or provide to Executive any Accrued Obligations.

(d)Resignation by Executive without Good Reason. Executive may resign from employment during the Employment Period without Good Reason at any time by giving notice to the Bank as described in Section 6(f). In the event Executive resigns from employment without Good Reason, Provident's sole obligation shall be to pay or provide to Executive any Accrued Obligations.

(e)Resignation by Executive for Good Reason. Executive may resign from employment under this Agreement for Good Reason by giving notice to the Bank as described in Section 6(f). In the event Executive resigns from employment for Good Reason, (i) the Bank shall pay or provide to Executive any Accrued Obligations, (ii) Executive shall, subject to Section 6(g), have the rights in respect of the Retention Award as set forth in Section 3(c), and (iii) if such resignation occurs upon or within 12 months after a Change in Control, Executive shall, subject to Section 6(g), be entitled to the CIC Severance Benefits to the same extent as if Executive's employment was terminated by Provident without Cause pursuant to

Section 6(a)(ii)(C) as of the date of Executive's termination of employment for Good Reason.

(f)Termination by Reason of Death or Disability of Executive.

(i)    In the event of Executive's death during the Employment Period,

Provident's sole obligation shall be to pay to Executive's legal representatives any Accrued Obligations, and Executive shall have the rights in respect of the Retention Award as set forth in Section 3(c).

(ii)    Provident shall be entitled to terminate Executive's employment

due to Executive's Disability, If Executive's employment hereunder is terminated due to Executive's Disability, Provident's sole obligation shall be to pay or provide to Executive any Accrued Obligations, and Executive shall, subject to Section 6(g), have the rights in respect of the Retention Award as set forth in Section 3(c).

(f)    Notice; Effective Date of Termination. Notice of termination of

employment under this Agreement shall be communicated by or to Executive (on one hand) or Provident (on the other hand) in writing in accordance with Section 14. Termination of Executive's employment pursuant to this Agreement shall be effective on the earliest of:

(i)immediately after Provident gives notice to Executive of Executive's termination without Cause, unless the parties agree to a later date, in which case, termination shall be effective as of such later date;

(ii)immediately upon approval by the Company Board of termination of Executive's employment for Cause;

(iii)immediately upon Executive's death;

(iv)in the case of termination by reason of Executive's Disability, the date on which Executive is determined to be permanently disabled for purposes of Provident's long-term disability plan or policy that covers Executive; or

(v)thirty (30) days after Executive gives written notice to Provident of Executive's resignation from employment under this Agreement (including for Good Reason), provided that the Company or the Bank may set an earlier termination date at any time prior to the date of termination of employment, in which case Executive's resignation shall be effective as of such other date.

(g)    General Release of Claims. Executive shall not (i) be entitled to any of

the Severance Benefits pursuant to Section 6(a)(ii)(B) or the CIC Severance Benefits pursuant to Section 6(a)(ii)(C) or 6(d) nor (ii) have any rights in respect of the Retention Award pursuant to Section 3(c) (including as incorporated into Section 6) in the event Executive's employment terminates due to Disability, without Cause or for Good Reason, unless, in each case, (A) Executive has executed and delivered to the Company a general release of claims (in the form attached hereto as Exhibit A) (the "Release") and (B) such Release has become irrevocable under the Age Discrimination in Employment Act not later than fifty-six (56) days after the date of Executive's termination of employment hereunder. Executive's entitlement to the Severance Benefits or CIC Severance Benefits, as applicable, and Executive's rights in respect of the Retention Award under Sections 3(c) (including as incorporated into Section 6) are further conditioned upon Executive returning to Provident all property of Provident within seven (7) days following the date of Executive's termination of employment with Provident and complying with the terms of Sections 8, 9(a) and 9(b) hereof, subject to written notice by the Bank and a reasonable opportunity for Executive to cure, if subject to cure, and the Release. Provident shall deliver to Executive a copy of the Release not later than three (3) days after Executive's termination of employment hereunder pursuant to Section 6(a), 6(d) or 6(e)(ii) hereof. In the event that the fifty-six (56) day period referenced above begins and ends in different taxable years of Executive, any payments or benefits under this Agreement that constitute nonqualified deferred compensation under Section 409A of the Internal Revenue Code of 1986, as

amended (the "Code") and the payment or settlement of which is conditioned on the effectiveness of the Release shall be paid in the later taxable year.

(h)No Other Severance Benefits. Executive acknowledges and agrees the Severance Benefits or CIC Severance Benefits, as applicable, and other rights and benefits provided under this Agreement upon termination are in lieu of, and not in addition to, any payments and/or benefits to which Executive may otherwise be entitled under any severance plan, policy or program of Provident.

(i)Payment of Obligations. Notwithstanding anything to the contrary herein, any payment obligation of the Bank under this Agreement may be satisfied in whole or in part by payment by the Company, the Bank or any affiliate, and any such payment shall, for purposes of this Agreement, be treated as if made by the Bank.

Resignation from Positions. Upon termination of Executive's employment for any reason, Executive shall promptly (i) resign from all positions (including, without limitation, any management, officer or director position) with Provident and its affiliates and (ii) relinquish any power of attorney, signing authority, trust authorization or bank account signatory authorization that Executive may hold on behalf of Provident or its affiliates. Executive's execution of this Agreement shall be deemed the grant by Executive to the officers of the Company and the Bank of a limited power of attorney to sign in Executive's name and on Executive's behalf such documentation as may be necessary or appropriate for the limited purposes of effectuating such resignations and relinquishments.

(k)    Golden Parachute Limit. Notwithstanding any other provision of this

Agreement (including the proviso in Section 16(h)), in the event that any portion of the CIC Severance Benefits or any other payment or benefit received or to be received by Executive in connection with a "change in ownership or control" (within the meaning of Section 280G of the Code) of the Company occurring following the Effective Date (whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement) (collectively, the "Total Benefits")would be subject to the excise tax imposed under Section 4999 of the Code (the "ExciseTax"), the Total Benefits shall be reduced to the extent necessary so that no portion of the Total Benefits is subject to the Excise Tax; provided, however, that no such reduction in the Total Benefits shall be made if by not making such reduction, Executive's Retained Amount (as hereinafter defined) would be greater than Executive's Retained Amount if the Total Benefits are so reduced. All determinations required to be made under this Section 6(k) shall be made by tax counsel selected by the Company and reasonably acceptable to Executive ("Tax Counsel"),which determinations shall be conclusive and binding on Executive and the Company absent manifest error. All fees and expenses of Tax Counsel shall be borne solely by the Company. Prior to any reduction in Executive's Total Benefits pursuant to this Section 6(k), Tax Counsel shall provide Executive and the Company with a report setting forth its calculations and containing related supporting information. In the event any such reduction is required, the Total Benefits shall be reduced in the following order: (i) the COBRA Payments, (ii) the CIC Severance Payment, (iii) any other portion of the Total Benefits that are not subject to Section 409A of the Code (other than Total Benefits resulting from any accelerated vesting of equity awards), (iv) Total Benefits that are subject to Section 409A of the Code in reverse order of payment, and (v) Total Benefits that are not subject to Section

409A and arise from any accelerated vesting of equity awards. "Retained Amount" shall mean the present value (as determined in accordance with Sections 280G(b)(2)(A)(ii) and 2800(d)(4) of the Code) of the Total Benefits net of all federal, state and local taxes imposed on Executive with respect thereto. For the avoidance of doubt, in accordance with Section 16(h) of this Agreement, this

Section 6(k) shall not apply to payments that are parachute payments as a result of a "change in ownership or control" (within the meaning of Section 280G of the Code) of Sterling resulting from the Merger.

7.    Certain Definitions.

(a)"Accrued Obligations" means (i) any accrued and unpaid Base Salary of Executive through the date of termination of employment, payable pursuant to the Bank's standard payroll policies, (ii) with respect to any termination without Cause, any earned and unpaid bonus of Executive under the Annual Bonus Plan for any completed fiscal year prior to the date of termination of employment, (iii) any compensation and benefits to the extent payable to Executive based on Executive's participation in any compensation or benefit plan, program or arrangement of Provident through the date of termination of employment, payable in accordance with the terms of such plan, program or arrangement, (iv) any expense reimbursement to which Executive is entitled under Provident's standard expense reimbursement policy (as applicable) and Sections 3(e) and 10 hereof, and (v) the Initial Payment (if not previously paid).

(b)"Cause" means Executive's failure or refusal to substantially perform Executive's duties hereunder, personal dishonesty, incompetence, willful misconduct, breach of fiduciary duty involving personal profit, breach of the Bank's Code of Ethics, material violation of the Sarbanes-Oxley requirements for officers of public companies that in the reasonable opinion of the Company Board will likely cause substantial financial harm or substantial injury to the reputation of the Company or the Bank, willfully engaging in actions that in the reasonable opinion of the Company Board will likely cause substantial financial harm or substantial injury to the business reputation of the Company or the Bank, willful violation of any law, rule or regulation (other than routine traffic violations or similar offenses) or final cease-and-desist order, or material breach of any provision of this Agreement. The Bank shall furnish Executive with a statement of the grounds for termination for Cause and shall afford Executive a reasonable opportunity to refute the grounds for the proposed termination. For purposes of hereof; no act or failure to act, on the part of Executive, shall be considered "willful" unless it is done, or omitted to be done, by Executive in bad faith or without reasonable belief that Executive's action or omission was in the best interests of the Company and the Bank. Any act, or failure to act, based upon the direction of the Company Board or the Bank Board based upon the advice of counsel for the Company or the Bank shall be conclusively presumed to be done, or omitted to be done, by Executive in good faith and in the best interests of the Company or the Bank.

(ii)(c)    "Change in Control" means the occurrence of any of the following with

respect to the Company occurring after the Effective Date:

(1)    any "person" (as the term is used in Sections 13(d) and 14(d) of the

Securities Exchange Act of 1934, as amended (the "ExchangeAct")), other than any employee benefit plan of Provident or any affiliate, is or becomes the "beneficial owner" (as defined in Rule 13d-3 under the

Exchange Act), directly or indirectly, of securities of the Company representing 25% or more of the combined voting power of Company's outstanding securities; or

(iii)individuals who constitute the Company Board on the date hereof (the "Incumbent Board") cease for any reason to constitute at least a majority thereof, provided that any person becoming a director subsequent to the date hereof whose election was approved by a vote of at least three-quarters of the directors comprising the Incumbent Board, or whose nomination for election by the Company's stockholders was approved by the Nominating Committee serving under an Incumbent Board, shall be, for purposes of this clause (ii), considered as though such person were a member of the Incumbent Board; or

(iv)the Company consummates a merger, consolidation, share exchange, division or other reorganization or transaction of the Company (a "Fundamental Transaction") with any other corporation, other than a Fundamental Transaction that results in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than fifty percent (50%) of the combined Voting Power immediately after such Fundamental Transaction of (i) the Company's outstanding securities, (ii) the surviving entity's outstanding securities, or (iii) in the case of a division, the outstanding securities of each entity resulting from the division; or

(v)the shareholders of the Company approve a plan of complete liquidation or winding up of the Company; or

(vi)the consummation of an agreement for the sale or disposition (in one transaction or a series of transactions) of all or substantially all of the Company's or the Bank's assets.

(d)    "Disability" means that Executive is deemed disabled for purposes of

Provident's long-term disability plan or policy that covers Executive.

(e)    "Good Reason" means the occurrence of any of the following events

(without Executive's consent):

(i)a material adverse change in Executive's functions, duties, or responsibilities with the Company or the Bank, which change would cause Executive's position to become one of materially lesser responsibility, importance or scope; or

(ii)a material breach of this Agreement by the Company or the Bank.

Notwithstanding the foregoing, no such event shall constitute "Good Reason" unless

(A) Executive shall have given written notice of such event to the Bank within ninety (90) days after the initial occurrence thereof, (B) the Bank shall have failed to cure the situation within thirty (30) days following the delivery of such notice (or such longer cure period as may be agreed upon by the parties), and (C) Executive terminates employment within thirty (30) days after expiration of such cure period.

8.Confidentiality. In the course of Executive's employment with and involvement with Provident, Sterling and their respective affiliates, Executive has obtained, or may obtain, secret or confidential information, knowledge or data concerning Provident's, Sterling's and their respective affiliates' businesses, strategies, operations, clients, customers, prospects, financial affairs, organizational and personnel matters, policies, procedures and other nonpublic matters, or concerning

those of third parties. Executive shall hold in a fiduciary capacity for the benefit of Provident, Sterling and their respective affiliates, all secret or confidential information, knowledge or data relating to Provident, Sterling or any of their affiliated companies, and their respective businesses, which shall have been obtained by Executive during Executive's employment by Sterling, Provident or any of their affiliates and which shall not be or become public knowledge (other than by acts by Executive or representatives of Executive in violation of this Agreement). All records, files, memoranda, reports, customer lists, documents and the like (whether in paper or electronic format) that Executive has used or prepared during Executive's employment shall remain the sole property of Provident and shall be promptly returned to Provident's premises upon any termination of employment. After termination of Executive's services with Provident, Executive shall not, without the prior written consent of the Bank or as may otherwise be required by law or legal process, communicate or divulge any such information, knowledge or data to anyone other than the Bank and those designated by it. The confidentiality provision contained herein is in addition to and not in limitation of Executive's duties as an officer and director under applicable law. For purposes of this Section 8 and Section 9 of this Agreement, references to the Company, the Bank, Provident, Sterling and their affiliates shall include their predecessor and any successor entities.

9.Nonsolicitation; Noncompetition; Post-Termination Cooperation.

(a)    Executive hereby covenants and agrees that, while employed and for a

period of eighteen (18) months following his or her termination of employment with Provident for any reason , Executive shall not, without the prior written consent of the Bank, either directly or indirectly, (i) induce or attempt to induce any employee or independent contractor of the Company, the Bank, Sterling or any of their respective affiliates to leave the Company, the Bank, Sterling or any such affiliate, (ii) hire any person who was an employee or independent contractor of the Company, the Bank, Sterling or any of their respective affiliates until six (6) months after such individual's relationship with the Company, the Bank, Sterling or such affiliate has been terminated, (iii) induce or attempt to induce any client, customer or other business relation (whether (A) current, (B) former, within the six (6) months after such relationship has been terminated or (C) prospective, provided that there are demonstrable efforts or plans to establish such relationship) of the Company, the Bank, Sterling or any of their respective affiliates to cease doing business or to reduce the amount of business which any client, customer or other business relation has customarily done or contemplates doing with the Company, the Bank, Sterling or any such affiliate, whether or not the relationship between the Company, the Bank, Sterling or any such affiliate and such client, customer or other business relation was originally established, in whole or in part, through Executive's efforts, or in any way interfere with the relationship between any such client, customer or business relation, on the one hand, and the Company, the Bank, Sterling or any such affiliate, on the other hand,

(b)Executive acknowledges that, in the course of Executive's employment with the Company, the Bank, Sterling and their respective affiliates (including their predecessor and any successor entities), Executive has become familiar, or will become familiar, with the Company's, the Bank's, Sterling's and their respective affiliates' trade secrets and with other confidential information, knowledge or data concerning the Company, the Bank, Sterling, their respective affiliates and their respective predecessors, and that Executive's services have been and will be of special, unique and extraordinary value to the Company, the Bank, Sterling and their respective affiliates. Therefore, Executive agrees that, while employed and for a period of twelve (12) months following his or her

termination of employment with Provident for any reason (the "Noncompetition Period"), Executive shall not, directly or indirectly, own, manage, operate, control, be employed by (whether as an employee, director consultant, independent contractor or otherwise, and whether or not for compensation) or render services in any capacity to a Competing Business (as defined below), in any locale of any country in which the Company, the Bank, Sterling or any of their respective affiliates conducts business. For purposes of this Agreement, a "Competing Business" shall mean any person, firm, corporation or other entity, in whatever form, engaged in the business in which the Company, the Bank, Sterling and their respective affiliates engage, including the sale or servicing of banking and financial products and services, including business and consumer lending, asset-based financing, residential mortgage warehouse funding, factoring/accounts receivable management services, equipment financing, commercial and residential mortgage lending and brokerage, deposit services (including municipal deposit services) and trade financing, sale of annuities, life and health insurance products, title insurance services, real estate investment trusts and investment advisory services. Nothing herein shall prohibit Executive from being a passive owner of not more than 1% of the outstanding equity interest in any entity which is publicly traded, so long as Executive has no active participation in the business of such entity.

(c)Executive hereby agrees that prior to accepting employment with any other person or entity during the Noncompetition Period, Executive shall provide such

prospective employer with written notice of this Section 9, with a copy of such notice delivered promptly to the Bank.

(d)During the Employment Period and following the cessation of Executive's employment for any reason, Executive shall, upon reasonable notice, (i) furnish such information and assistance to the Company, the Bank, Sterling and/or their respective affiliates, as may reasonably be requested by the Company, the Bank, Sterling or such affiliates, with respect to any matter, project, initiative or effort for which Executive is or was responsible or has relevant knowledge or had substantial involvement in while employed by Sterling or while employed by the Bank under this Agreement, and (ii) cooperate with the Company, the Bank, Sterling and their respective affiliates during the course of all third-party proceedings arising out of the Company, the Bank, Sterling and their respective affiliates' business about which Executive has knowledge or information.

(e)    Executive acknowledges and agrees that: (i) the purposes of the foregoing

covenants, including without limitation the noncompetition covenant of Section 9(b), are to protect the goodwill and trade secrets and confidential information of the Company, the Bank, Sterling and their respective affiliates; (ii) that the foregoing covenants, including without limitation the noncompetition covenant of Section 9(6), are being entered into in connection with the transactions contemplated by the Merger Agreement; and (iii) because of the nature of the business in which the Company, the Bank, Sterling and their respective affiliates are engaged, and because of the nature of the trade secrets and confidential information to which Executive has access, it would be impractical and excessively difficult to determine the actual damages of the Company and its affiliates in the event Executive breached any of the covenants of Section 8 or this Section 9. Executive understands that the covenants may limit Executive's ability to earn a livelihood in a Competing Business. Executive acknowledges that the Company would be irreparably injured by a violation of Section 8 or this Section 9, and that it is impossible to measure in money the damages that will accrue to the Company by reason of a failure by Executive to perform any of Executive's obligations under Section 8 or this Section 9. Accordingly, if the Company or its affiliates institutes any action or proceeding to enforce any of the provisions of

Section 8 or this Section 9, to the extent permitted by applicable law, Executive hereby waives the claim or defense that the Company or its affiliates have an adequate remedy at law, and Executive shall not urge in any such action or proceeding the defense that any such remedy exists at law, Furthermore, in addition to other remedies that may be available (including, without limitation, clawback of the shares received on vesting of the Retention Award (or recoupment of the value derived therefrom), as provided in Section 3(c)(ii) of this Agreement, and termination of the obligation for the Company and the Bank to pay

compensation or benefits hereunder due to Executive's failure to comply in all material respects with the restrictive covenants in Section 8, 9(a) or 9(b), subject to written notice by the Bank and a reasonable opportunity for Executive to cure, if subject to cure), the Company and its affiliates shall be entitled to specific performance and other injunctive relief, without the requirement to post a bond. If any of the covenants set forth in Section 8 or this Section 9 is finally held to be invalid, illegal or unenforceable (whether in whole or in part), such covenant shall be deemed modified to the extent, but only to the extent, of such invalidity, illegality or unenforceability, and the remaining covenants shall not be affected thereby. Any termination of Executive's services or of this Agreement shall have no effect on the continuing operation of Section 8 and this Section 9, which shall survive in accordance with their terms.

10.    Section 409A of the Code

(a)    This Agreement is intended to comply with the requirements of

Section 409A of the Code (including the exceptions thereto), to the extent applicable, and the Company shall administer and interpret this Agreement in accordance with such requirements. If any provision contained in this Agreement conflicts with the requirements of Section 409A of the Code (or the exemptions intended to apply under the Agreement), this Agreement shall be deemed to be reformed to comply with the requirements of Section 409A of the Code (or the applicable exemptions thereto). Notwithstanding anything to the contrary herein, for purposes of determining Executive's entitlement to the payment or receipt of amounts or benefits that constitute nonqualified deferred compensation within the meaning of Section 409A, Executive's employment shall not be deemed to have terminated unless and until Executive incurs a "separation from service" as defined in Section 409A of the Code. Reimbursement of any expenses provided for in this Agreement shall be made promptly upon presentation of documentation in accordance with Provident's policies with respect thereto as in effect from time to time (but in no event later than the end of calendar year following the year such expenses were incurred); provided, however, that in no event shall the amount of expenses eligible for reimbursement hereunder during a calendar year affect the expenses eligible for reimbursement in any other taxable year. Notwithstanding anything to the contrary herein, if a payment or benefit under this Agreement that constitutes nonqualified deferred compensation within the meaning of Section 409A is payable or provided due to a "separation from service" for purposes of the rules under Treas. Reg. § 1.409A-3(i)(2) (payments to specified employees upon a separation from service) and Executive is determined to be a "specified employee" (as determined under Treas. Reg. § 1.409A-1(i) and related Company procedures), such payment shall, to the extent necessary to comply with the requirements of Section 409A of the Code, be made on the later of (x) the date specified by the foregoing provisions of this Agreement or (y) the date that is six (6) months after the date of Executive's separation from service (or, if earlier, the date of Executive's death). Any installment payments that are delayed pursuant to this Section 10 shall be accumulated and paid in a lump sum on the first day of the seventh month following the date of Executive's separation from service (or, if earlier, upon Executive's death),

and the remaining installment payments shall begin on such date in accordance with the schedule provided in this Agreement. The Severance Benefits and CIC Severance Benefits are intended not to constitute deferred compensation subject to Section 409A of the Code to the extent such Severance Benefits or CIC Severance Benefits are covered by (i) the "short-term deferral exception" set forth in Treas. Reg. § 1.409A-1(b)(4), (ii) the "two times severance exception" set forth in Treas. Reg. § 1.409A-1(b)(9)(iii), or (iii) the "limited payments exception" set forth in Treas. Reg. § 1.409A-1(b)(9)(v)(D). The short-term deferral exception, the two times severance exception and the limited payments exception shall be applied to the Severance Benefits or CIC Severance Benefits, as applicable, in order of payment in such manner as results in the maximum exclusion of such Severance Benefits or CIC Severance Benefits, as applicable, from treatment as deferred compensation under Section 409A of the Code. Each installment of the Severance Benefits or CIC Severance Benefits, as applicable, and any other payments or benefits that constitute nonqualified deferred compensation within the meaning of Section 409A shall be deemed to be a separate payment for purposes of

Section 409A of the Code.

11.    Additional Termination and Suspension Provisions

(a)    If Executive is suspended and/or temporarily prohibited from participating

in the conduct of the Bank's affairs by a notice served under Section 8(e)(3) or (g)(1) of the Federal Deposit Insurance Act, as amended (12 U.S.C. §§ 1818(e)(3) and (g)(1)), all obligations of the Company and the Bank tinder this Agreement shall be suspended as of the date of service unless stayed by appropriate proceedings. If the charges in the notice are dismissed, the Company and the Bank may in their discretion (but subject in all events to the requirements of Code Section 409A), (i) pay Executive all of the compensation withheld while the Company's and the Bank's obligations under this Agreement were suspended and (ii) reinstate (in whole) any of the Company's and the Bank's obligations which were suspended, and in exercising such discretion, the Company and the Bank shall consider the facts and make a decision promptly following such dismissal of charges and act in good faith in deciding whether to pay any withheld compensation to Executive, and to reinstate any suspended obligations of the Company and the Bank.

(b)If Executive is removed and/or permanently prohibited from participating in the conduct of the Bank's affairs by an order issued under Section 8(0(4) or (g)(1) of the Federal Deposit Insurance Act, as amended (12 U.S.C. §§ 1818(e)(4) or (g)(1)), all obligations of the Company and the Bank under this Agreement shall terminate as of the effective date of the order, but vested rights of the parties shall not be affected.

(c)If the Bank is in default, as defined in Section 3(x)(1) of the Federal Deposit Insurance Act, as amended (12 U.S.C. §§ 1813(x)(1)), all obligations of the Company and the Bank under this Agreement shall terminate as of the date of default, but this provision shall not affect any vested rights of the parties.

(d)All obligations under this Agreement shall be terminated, except to the extent determined that continuation of this Agreement is necessary for the continued operation of the Bank, (i) by the OCC or other applicable banking regulator (the "Regulator"), at the time the FDIC enters into an agreement to provide assistance to or on behalf of the Bank under the authority contained in Section 13(c) of the Federal Deposit Insurance Act, as amended; or (ii) by the Regulator, at the time the Regulator

approves a supervisory merger to resolve problems related to operation of the Bank or when the Bank is determined by the Regulator to be in an unsafe or unsound condition. Any rights of the parties that have already vested, however, shall not be affected by such action.

(e)If any regulation applicable to the Company or the Bank shall hereafter be adopted, amended or modified, or if any new regulation applicable to the Company or the Bank and effective after the date of this Agreement:

(i)shall require the inclusion in this Agreement of a provision not presently included in this Agreement, then the foregoing provisions of this Section shall be deemed amended to the extent necessary to give effect in this Agreement to any such amended, modified or new regulation; and

(ii)shall permit the exclusion of a limitation in this Agreement on the payment to Executive of an amount or benefit provided for presently in this Agreement, then the foregoing provisions of this Section shall be deemed amended to the extent permissible to exclude from this Agreement any such limitation previously required to be included in this Agreement by a regulation prior to its amendment, modification or repeal.

12.    Arbitration. Any dispute or controversy arising out of, under, in

connection with, or relating to this Agreement or any amendment hereof shall be submitted to binding arbitration before one arbitrator in New York County, New York, in accordance with the Commercial Arbitration Rules of the American Arbitration Association for expedited arbitration, and any judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.

13.    Indemnification and Insurance

(a)To the extent that Provident provides its senior executive officers with coverage under a directors' and officers' liability insurance policy, Provident shall provide such coverage to Executive on substantially the same basis. Provident shall indemnify Executive (and Executive's heirs, executors and administrators) to the fullest extent permitted under applicable law against all expenses and liabilities reasonably incurred by Executive in connection with or arising out of any action, suit or proceeding in which he may be involved by reason of Executive's having been an officer of the Bank (whether or not Executive continues to be an officer at the time of incurring such expenses or liabilities and for a period of six years following Executive's termination of employment with Provident), such expenses and liabilities to include, but not be limited to, judgments, court costs and attorneys' fees and the cost of reasonable settlements (such settlements must be approved by the Company Board). Any such indemnification shall be made consistent with Regulations and Section 18(k) of the Federal Deposit Insurance Act, 12 U.S.C. § 1828(k), and the regulations issued thereunder in 12 C.F.R. Part 359.

(b)Notwithstanding the foregoing, no indemnification shall be made by the Bank unless the Bank gives the Regulator, to the extent required, at least 60 days' notice of its intention to make such indemnification. Such notice shall state the facts on which the action arose, the terms of any settlement and any disposition of the action by a court. Such notice, a copy thereof, and a certified copy of the resolution containing the required determination by the Company Board shall be sent to the Regulator, to the extent required. The notice period for any such notice shall run from the date of

such receipt. No such indemnification shall be made if the Regulator advises the Bank in writing within such notice period, of its objection thereto.

(c)Executive shall be entitled to indemnification pursuant to Section 6.7 of the Merger Agreement, and Provident's obligations pursuant to this Section 13 shall be in addition to, and not in limitation of, its obligations pursuant to Section 6.7 of the Merger Agreement.

14.    Notices. The persons or addresses to which mailings or deliveries shall be

made may change from time to time by notice given pursuant to the provisions of this Section. Any notice or other communication given pursuant to the provisions of this Section shall be deemed to have been given (a) if sent by messenger, upon personal delivery to the party to whom the notice is directed; (b) if sent by reputable overnight courier, one business day after delivery to such courier; (c) if sent by facsimile, upon electronic or telephonic confirmation of receipt from the receiving facsimile machine; and (d) if sent by mail, three business days following deposit in the United States mail, properly addressed, postage prepaid, certified or registered mail with return receipt requested. All notices required or permitted to be given hereunder shall be addressed as follows:

If to Executive:    Howard M. Applebaum

At the address most recently on the books and records of the Bank.

If to the Company or the Bank: Provident New York Bancorp or Provident Bank, as applicable 400 ReIla Boulevard Montebello, New York 10901 Attention: General Counsel

15.Amendment. No modifications of this Agreement shall be valid unless made in writing and signed by the parties hereto.

16.Miscellaneous

(a)Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon Executive, his or her legal representatives and estate and intestate distributees, and the Company and the Bank, their successors and assigns, including any successor by merger or consolidation or a statutory receiver or any other person or firm or corporation to which all or substantially all of the assets and business of the Company or the Bank, as applicable, may be sold or otherwise transferred. Any such successor of the Company or the Bank shall be deemed to have assumed this Agreement and to have become obligated hereunder to the same extent as the Company or the Bank, as applicable, and Executive's obligations hereunder shall continue in favor of such successor.

(b)Severability. A determination that any provision of this Agreement is invalid or unenforceable shall not affect the validity or enforceability of any other provision hereof.

(c)Waiver. Failure to insist upon strict compliance with any terms, covenants or conditions hereof shall not be deemed a waiver of such term, covenant or condition. A waiver of any provision of this Agreement must be made in writing, designated as a waiver, and signed by the party

against whom its enforcement is sought. Any waiver or relinquishment of any right or power hereunder at any one or more times shall not be deemed a waiver or relinquishment of such right or power at any other time or times.

(d)Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, and all of which shall constitute one and the same Agreement.

(e)Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York, without reference to conflicts of law principles, except to the extent governed by federal law in which case federal law shall govern. Any payments made to Executive pursuant to this Agreement or otherwise are subject to all applicable banking laws and regulations, including, without limitation, 12 U.S.C. §§ 1828(k) and any regulations promulgated thereunder.

(g)Withholding. The Company and the Bank may withhold from any amounts payable to Executive hereunder all federal, state, city or other taxes that the Company or the Bank may reasonably determine are required to be withheld pursuant to any applicable law or regulation (it being understood, that Executive shall be responsible for payment of all taxes in respect of the payments and benefits provided herein).

(h)Headings and Construction. The headings of sections in this Agreement are for convenience of reference only and are not intended to qualify the meaning of any Section. Any reference to a Section number shall refer to a Section of this Agreement, unless otherwise specified.

(i)Entire Agreement. This instrument contains the entire agreement of the parties relating to the subject matter hereof, and supersedes in its entirety any and all prior agreements, understandings or representations relating to the subject matter hereof, including without limitation, the Prior Agreement, which shall terminate as of the Effective Time; providedthat, notwithstanding the termination of the Prior Agreement, Section 5 of the Prior Agreement shall survive as if fully set forth herein, and shall survive any termination of this Agreement, solely with respect to payments that are parachute payments as a result of the "change in ownership or control" (within the meaning of Section 280G of the Code) of Sterling resulting from the Merger, regardless of whether such payments are determined to be parachute payments by Provident, Sterling or the Internal Revenue Service (for the avoidance of doubt, Section 6(k) of this Agreement shall apply to payments that are parachute payments as a result of a "change in ownership or control" (within the meaning of Section 280G of the Code) of the Company occurring after the Effective Date).

[Signatures on next page]

IN WITNESS WHEREOF, the Company and the Bank have caused this Agreement to be executed and Executive has hereunto set his or her hand, all as of the date specified above.

	EXECUTIVE
April 3, 2013	/s/Howard M. Applebaum
Date	Howard M Applebaum
	PROVIDENT NEW YORK BANCORP
April 3, 2013	/s/Jack L Kopnisky
Date	Name: Jack L Kopnisky
	Title: President and Chief Executive Officer
	PROVIDENT BANK
April 3, 2013	/s/Jack L Kopnisky
Date	Name: Jack L Kopnisky
	Title: President and Chief Executive Officer

Exhibit A

RELEASE AGREEMENT

THIS RELEASE AGREEMENT (hereinafter "Agreement") is made and entered

into on the [ 1 day of [    ], 20[ 1 by and between Provident New York Bancorp (the "Company") and Howard M. Applebaum ("Executive").

WHEREAS, the Company and Executive are parties to an Employment Agreement, dated as of April 3, 2013 (the "Employment Agreement"), pursuant to which Executive is eligible, subject to the terms and conditions set forth in the Employment Agreement, to receive certain compensation and benefits in connection with certain terminations of Executive's services to the Company.

NOW, THEREFORE, in consideration of the Company agreeing to provide the compensation and benefits under Section [ 1 of the Employment Agreement to Executive and of other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged by the parties, it is agreed as follows:

1.    In exchange for the consideration referenced above, Executive hereby

completely, irrevocably, and unconditionally releases and forever discharges the Company, and any of its predecessor or affiliated companies, and each and all of their officers, agents, directors, supervisors, employees, representatives, and their successors and assigns, and all persons acting by, through, under, for, or in concert with them, or any of them, in any and all of their capacities (hereinafter individually or collectively, the "Released Parties"), from any and all charges, complaints, claims, and liabilities of any kind or nature whatsoever, known or unknown, suspected or unsuspected (hereinafter referred to as "claim" or "claims") which Executive at any time heretofore had or claimed to have or which Executive may have or claim to have regarding events that have occurred as of the Effective Date of this Agreement, including, without limitation, those based on: any employee welfare benefit or pension plan governed by the Employee Retirement Income Security Act of 1974, as amended (hereinafter "ERISA") (provided that this release does not extend to any vested benefits of Executive under Company's pension and welfare benefit plans as of the date of Executive's termination of services); the Civil Rights Act of 1964, as amended (race, color, religion, sex and national origin discrimination and harassment); the Civil Rights Act of 1966 (42 U.S.C. § 1981) (discrimination); the Age Discrimination in Employment Act of 1967, as amended (hereinafter "ADEA"); the Older Workers Benefit Protection Act, as amended; the Americans With Disabilities Act, as amended (hereinafter "ADA"); § 503 of the Rehabilitation Act of 1973; the Fair Labor Standards Act, as amended (wage and hour matters); the Family and Medical Leave Act, as amended (family leave matters); any other federal, state, or local laws or regulations regarding employment discrimination or harassment, wages, insurance, leave, privacy or any other matter; any negligent or intentional tort; any contract, policy or practice (implied, oral, or written); or any other theory of recovery under federal, state, or local law, and whether for compensatory or punitive damages, or other equitable relief, including, but not limited to, any and all claims which Executive may now have or may have had, arising from or in any way whatsoever connected with Executive's employment, service, or contacts, with the Company or any other of the Released Parties. Notwithstanding the foregoing, the released claims do not include, and this Agreement does not release, any: (a) rights to compensation and benefits provided under Section [    ] of the

Employment Agreement (or any rights referenced in Section 16(h) of the Employment Agreement that, by their terms, are intended to survive the Employment Period); (b) rights to indemnification Executive may have under applicable law, the bylaws or certificate of incorporation of the Company, any applicable director and officer liability policy or under the Employment Agreement, as a result of having served as an officer or director of the Company or any of its affiliates; and (c) any claims that Executive may not by law release through a settlement agreement such as this.

2.To the extent permitted by law, Executive agrees that Executive will not cause or encourage any future legal proceedings to be maintained or instituted against any of the Released Parties. To the extent permitted by law, Executive agrees that Executive will not accept any remedy or recovery arising from any charge filed or proceedings or investigation conducted by the EEOC or by any state or local human rights or employment rights enforcement agency relating to any of the matters released in this Agreement.

3.Older Workers Benefit Protection Act /ADEA Waiver:

(a)Executive acknowledges that the Company has advised Executive in writing to consult with an attorney of Executive's choice before signing this Agreement, and Executive has been given the opportunity to consult with an attorney of Executive's choice before signing this Agreement.

(b)Executive acknowledges that Executive has been given the opportunity to review and consider this Agreement for a full twenty-one days before signing it, and that, if Executive has signed this Agreement in less than that time, Executive has done so voluntarily in order to obtain sooner the benefits of this Agreement.

(c)Executive further acknowledges that Executive may revoke this Agreement within seven (7) days after signing it, provided that this-Agreement will not become effective until such seven (7) day period has expired. To be effective, any such revocation must be in writing and delivered to Company's principal place of business by the close of business on the seventh (7th) day after signing the Agreement and must expressly state Executive's intention to revoke this Agreement. Provided that Executive does not timely revoke this Agreement, the eighth (8th) day following Executive's execution hereof shall be deemed the "Effective Date" of this Agreement.

(d)The Parties also agree that the release provided by Executive in this Agreement does not include a release for claims under the ADEA arising after the date Executive signs this Agreement.

4.Executive shall promptly turn over to the Company any and all

documents, files, computer records, or other materials belonging to, or containing confidential or proprietary information obtained from, the Company that are in Executive's possession, custody, or control, including any such materials that may be at Executive's home.

6.This Agreement shall not in any way be construed as an admission by the Company of any acts of unlawful conduct, wrongdoing or discrimination against Executive, and the Company specifically disclaims any liability to Executive on the part of itself, its employees, and its agents.

7.This Agreement cannot be amended, modified, or supplemented in any respect except by written agreement entered into and signed by the parties hereto.

8.The Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard to the principles of conflict of laws.

9.Executive hereby acknowledges that Executive has read and understands the terms of this Agreement and that Executive signs it voluntarily and without coercion. Executive further acknowledges that Executive was given an opportunity to consider and review this Agreement and the waivers contained in this Agreement, that Executive has done so and that the waivers made herein are knowing, conscious and with full appreciation that Executive is forever foreclosed from pursing any of the rights so waived.

10.The Agreement may be signed in counterparts, and each counterpart shall be considered an original for all purposes.

PLEASE READ THIS AGREEMENT CAREFULLY; IT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer, and Executive has executed this Agreement, as of the date first written above.

	EXECUTIVE
April 3, 2013	/s/Howard M. Applebaum
Date	Howard M Applebaum
	PROVIDENT NEW YORK BANCORP
April 3, 2013	/s/Jack L Kopnisky
Date	Name: Jack L Kopnisky
	Title: President and Chief Executive Officer
	PROVIDENT BANK
April 3, 2013	/s/Jack L Kopnisky
Date	Name: Jack L Kopnisky
	Title: President and Chief Executive Officer

EX-10.27

Exhibit 10.27

PROVIDENT NEW YORK BANCORP

2012 STOCK INCENTIVE PLAN

RESTRICTED STOCK AWARD NOTICE

Name of Award RecipientSocial Security Number

Street Address

City State                                  ZIP Code    

This Restricted Stock Award Notice is intended to set forth the terms and conditions on which a Restricted Stock Award has been granted under the Provident New York Bancorp 2012 Stock Incentive Plan. Set forth below are the specific terms and conditions applicable to this Restricted Stock Award. Attached as Exhibit A are its general terms and conditions.

Restricted Stock Award	(A)	(B)	(C)
Effective Date
Class of Shares*	Common	Common	Common
No. of Awarded Shares*
Vesting Date*

*Subject to adjustment as provided in the Plan and the General Terms and Conditions.

By signing where indicated below, Provident New York Bancorp (the “Company”) grants this Restricted Stock Award upon the specified terms and conditions, and the Restricted Stock Award Recipient acknowledges receipt of this Restricted Stock Award Notice, including Exhibit A, and agrees to observe and be bound by the terms and conditions set forth herein

PROVIDENT NEW YORK BANCORP AWARD RECIPIENT

By

Name:

Title:    

Instructions: This page should be completed by or on behalf of the Compensation Committee. Any blank space intentionally left blank should be crossed out. A Restricted Stock Award consists of shares granted with uniform terms and conditions. Where shares granted under a Restricted Stock Award are awarded on the same date with varying terms and conditions (for example, varying vesting dates), the awards should be recorded as a series of grants each with its own uniform terms and conditions.

Exhibit 10.27

EXHIBIT A

PROVIDENT NEW YORK BANCORP

2012 STOCK INCENTIVE PLAN

RESTRICTED STOCK AWARD NOTICE

General Terms and Conditions

Section 1.    General Terms.

(a)    Size and Type of Award. The shares of Common Stock of Provident New York Bancorp ("Shares") covered by this Award ("Awarded Shares") are listed on the Restricted Stock Award Notice. The Restricted Stock Award Notice is subject to all of the terms and conditions of this Award Notice and the Provident New York Bancorp 2012 Stock Incentive Plan (“Plan”).

(b)     Holding of Awarded Shares. A certificate evidencing the Awarded Shares will be issued to you and will include a restrictive legend incorporating the terms and conditions of this Award Notice, which will include a one-year holding requirement once the award has fully vested, except for any shares sold in accordance with Section 6 to cover the amount of taxes required to be withheld with respect to such Shares. If permitted by the Compensation Committee, you may elect to be taxed on shares immediately upon their transfer to you instead of later when they vest. If you make this election, you will be required to include in ordinary income, for the taxable year in which the transfer of certificates occurs, an amount equal to the fair market value of the shares on the transfer date. Provident New York Bancorp may be allowed to claim a tax deduction, for compensation expense, in a like amount. You make this election by filing a statement of election containing specified items of information with the Internal Revenue Service within thirty (30) days after the date of transfer of the shares to you. You must give a copy of the statement you file to Provident New York Bancorp and Provident Bank. If you make this election, the vesting of your awards will not subject you to further income tax.

(c)     Employment. Your employment with Provident New York Bancorp and Provident Bank constitutes adequate consideration for the issuance of the Awarded Shares to you having a value at least equal to the par value of the Awarded Shares, but the vesting conditions described below will nevertheless determine your right to acquire unrestricted ownership of the Awarded Shares.

Section 2.     Vesting.

(a)    Vesting Dates. The Vesting Dates for your Awarded Shares are specified on the Award Notice. On each Vesting Date, you will obtain unrestricted ownership of the Awarded Shares that vest on that Vesting Date, subject to a one-year holding requirement.

(b)    Vesting Conditions. There are conditions you must satisfy before your Restricted Stock Award will vest. If you receive your Restricted Stock Award for services as an officer or employee, you must, except as otherwise provided herein, remain in continuous Service from the Effective Date shown on the Restricted Stock Award Notice through the relevant Vesting Date.

(c)    Forfeitures. If you terminate service with the Company prior to a Vesting Date, you will forfeit any Awarded Shares that are scheduled to vest on or after that date. To the extent that any Awarded Shares have vested prior to your termination of service with the Company, the one-year holding requirement will continue to apply. When you forfeit Awarded Shares, all of your interest in the Awarded Shares will be canceled and any stock certificate or other evidence of ownership must be returned to the Compensation Committee or to the Company. You agree to take any action and execute and deliver any document that the Company requests to effect the return of your unvested Awarded Shares. In the event you do not cooperate with the Company in this regard, you hereby appoint and designate the Company as your attorney-in-fact for the purpose of taking any action and signing any document, in your name, which the Company determines is necessary to enforce the forfeiture.

(d)    Accelerated Vesting. Your Awarded Shares that have not previously vested will become fully vested immediately (and no one-year holding requirement will apply), and without any further action on your part, in the event of your death or Disability (as defined in the Plan) before your termination of service with the Company or your Retirement (as defined in the Plan) from the Company. To qualify for Retirement, you must enter into a retirement agreement with the Company in a form approved by the Compensation Committee, within the Compensation Committee’s discretion, and under which you agree, for a period of two (2) years, to provide consulting services to the Company and Provident Bank (as specified in Section 2.46 of the Plan) and to refrain from competing with or soliciting employees and customers of the Company and Provident Bank. In addition, in the event a Change in Control (as defined in the Plan) occurs before you terminate service with the Company, then any Awarded Shares not theretofore forfeited shall become immediately vested on the date of the Change in Control (and no one-year holding requirement will apply). You may designate a Beneficiary to receive any Awarded Shares that vest upon your death using the Beneficiary Designation attached as Appendix A.

(e)    Definition of Service. For purposes of determining the vesting of your Awarded Shares, you will be deemed to be in the service of the Company for so long as you serve in any capacity as an employee, officer, non-employee director or consultant of the Company and/or Provident Bank.

(f)    Application of Clawback Policy.Notwithstanding anything in the Restricted Stock Award Notice to the contrary, the Awarded Shares and any related dividends shall be subject to adjustment and/or recovery, in whole or in part, following the date on which

Page 1 of 3

Exhibit 10.27

they become vested and payable if and to the extent (i) required by any applicable law, rule or regulation or (ii) provided under the terms of any clawback policy or other policy of similar import adopted by the Company and in effect on the date the Awarded Shares or dividends, as applicable, become vested and payable.

Section 3.    Dividends. Any dividends declared by the Company with a record date that is after the Grant Date specified in the Award Notice will be paid in the same manner as for other shareholders.

Section 4.     Voting and Tender Rights. You will have the right to vote, or direct the voting of, Awarded Shares.

Section 5.    Taxes. Where any person is entitled to receive Shares pursuant to the Restricted Stock Award granted hereunder, the Company shall have the right to require such person to pay to the Company the amount of any tax which the Company is required to withhold with respect to such Shares, or, in lieu thereof, to retain, or to sell without notice, a sufficient number of Shares to cover the amount required to be withheld.

Section 6.    Notices. Any communication required or permitted to be given under the Plan, including any notice, direction, designation, comment, instruction, objection or waiver, shall be in writing and shall be deemed to have been given at such time as it is delivered personally or five (5) days after mailing if mailed, postage prepaid, by registered or certified mail, return receipt requested, addressed to such party at the address listed below, or at such other address as one such party may by written notice specify to the other party:

If to the Recipient, to the Recipient's address as shown in the Company's records.

If to the Compensation Committee:

Provident New York Bancorp
c/o Provident Bank
400 Rella Blvd.
Montebello, New York
Attention: Corporate Secretary

Section 7.    Restrictions on Transfer. The Restricted Stock Award granted hereunder shall not be subject in any manner to anticipation, alienation or assignment, nor shall such award be liable for, or subject to, debts, contracts, liabilities, engagements or torts, nor shall it be transferable by the Recipient other than by will or by the laws of descent and distribution or as otherwise permitted by the Plan. To name a Beneficiary, complete the attached Appendix A and file it with the Corporate Secretary of Provident New York Bancorp.

Section8.    Successors and Assigns. This Agreement shall inure to the benefit of and shall be binding upon the Company and the Recipient and their respective heirs, successors and assigns.

Section 9.    Construction of Language. Whenever appropriate in the Agreement, words used in the singular may be read in the plural, words used in the plural may be read in the singular, and words importing the masculine gender may be read as referring equally to the feminine or the neuter. Any reference to a section shall be a reference to a section of this Notice, unless the context clearly indicates otherwise. Capitalized terms not specifically defined herein shall have the meanings assigned to them under the Plan.

Section 10.    Governing Law. This Notice shall be construed, administered and enforced according to the laws of the State of New York without giving effect to the conflict of law principles thereof, except to the extent that such laws are preempted by federal law. The federal and state courts having jurisdiction in Rockland County, New York shall have exclusive jurisdiction over any claim, action, complaint or lawsuit brought under the terms of the Plan. By accepting any Award granted under this Notice, the Recipient, and any other person claiming any rights under the Notice, agrees to submit himself, and any such legal action as he shall bring under the Plan, to the sole jurisdiction of such courts for the adjudication and resolution of any such disputes.

Section 11.    Amendment. This Award may be amended, in whole or in part and in any manner not inconsistent with the provisions of the Plan, at any time and from time to time, by written agreement between the Company and the Recipient. This Award amends and supersedes any Restricted Stock Award Notice bearing the same effective date.

Section 12.    Plan Provisions Control. This Award and the rights and obligations created hereunder shall be subject to all of the terms and conditions of the Plan that would apply if this Award were being made under the Plan In the event of any conflict between the provisions of the Plan and the provisions of this Notice, the terms of the Plan, which are incorporated herein by reference, shall control. By signing this Agreement, the Recipient acknowledges receipt of a copy of the Plan. The Recipient acknowledges that he or she may not and will not rely on any statement of account or other communication or document issued in connection with the Award other than the Plan, this Notice, or any document signed by an authorized representative of the Company that is designated as an amendment of the Plan or this Notice.

Page 2 of 3

Exhibit 10.27

APPENDIX A TO RESTRICTED STOCK AWARD NOTICE

Beneficiary Designation Form - Restricted Stock

GENERAL INFORMATION				Use this form to designate the Beneficiary(ies) who may receive Restricted Stock Awards that become vested at your death.
Name of Person Making Designation						Social Security Number ______—_____—__________
BENEFICIARY DESIGNATION			Complete sections A and B. If no percentage shares are specified, each Beneficiary in the same class (primary or contingent) shall have an equal share. If any designated Beneficiary predeceases you, the shares of each remaining Beneficiary in the same class (primary or contingent) shall be increased proportionately.
A PRIMARY BENEFICIARY(IES).  I hereby designate the following person as my primary Beneficiary under the Plan, reserving the right to change or revoke this designation at any time prior to my death:
Name					Address		Relationship	Birthdate	Share
									%
									%
									% Total = 100%
B CONTINGENT BENEFICIARY(IES).  I hereby designate the following person(s) as my contingent Beneficiary(ies) under the Plan to receive benefits only if all of my primary Beneficiaries should predecease me, reserving the right to change or revoke this designation at any time prior to my death as to all outstanding Options:
Name					Address		Relationship	Birthdate	Share
									%
									%
									% Total = 100%
S I G N	H E R E	I understand that this Beneficiary Designation shall be effective only if properly completed and received by the Corporate Secretary of Provident New York Bancorp prior to my death, and that it is subject to all of the terms and conditions of the Plan. I also understand that an effective Beneficiary designation revokes my prior designation(s) with respect to all outstanding Restricted Stock Awards          Your SignatureDate

---------------------------------------------------- Internal Use Only ------------------------------------------------------------

This Beneficiary Designation was received by the Corporate Secretary of Provident New York Bancorp on the date indicated. By    Authorized Signature Date Comments

EX-10.28

PROVIDENT NEW YORK BANCORP 2012 STOCK INCENTIVE PLAN

STOCK OPTION AWARD AGREEMENT

Name of Option Holder	Social Security Number
Address                            City  State	Zip Code

This Award Agreement is intended to set forth the terms and conditions on which an Option has been granted under the Provident New York Bancorp 2012 Stock Incentive Plan. Set forth below are the specific terms and conditions applicable to this Option. Attached as Exhibit A are its general terms and conditions.

OPTION GRANT	GRANT SUMMARY**	OPTION DETAIL BY VESTING DATE
Grant Date:
Class of Optioned Shares *
No. of Optioned Shares*
Option Type (ISO or NQSO)
Exercise Price Per Share *
Vesting Percent *
Cumulative No. of Shares Exercisable on Each Indicated Vesting Date *			less any previously exercised Shares from this Grant	less any previously exercised Shares from this Grant	less any previously exercised Shares from this Grant	less any previously exercised Shares from this Grant
Option Expiration Date *

*Subject to adjustment as provided in the Plan and the General Terms and Conditions.

** This column reflects a summary of the option grant detailed in the remaining columns of this table. It does not constitute a separate, additional option grant.

By signing where indicated below, Provident New York Bancorp grants this Option upon the specified terms and conditions, and the Option Holder acknowledges receipt of this Award Agreement, including Exhibit A, and agrees to observe and be bound by the terms and conditions set forth herein.

Provident New York Bancorp:	Option Holder:
BY NAME: TITLE:	PRINT NAME

EXHIBIT A

PROVIDENT NEW YORK BANCORP 2012 STOCK INCENTIVE PLAN

STOCK OPTION AWARD AGREEMENT

General Terms and Conditions

Section 1.    Incentive Stock Option. If the Option has been granted to an Option Holder who is a non-employee director, it is a Non-Qualified Stock Option (NQSO). If the Option has been granted to an individual who is an employee and is designated as an ISO, the Company intends the Option evidenced hereby to be an "incentive stock option" within the meaning of section 422 of the Internal Revenue Code of 1986 ("Code"). If the Option or any part of the Option does not qualify as an "incentive stock option" under the Plan or the Code, the Option, or the part not qualifying, shall be treated as a Non-Qualified Stock Option under the Code.

Section 2.    Exercise Period. (a) Subject to section 2(b), the Option Holder shall have the right to purchase all or any portion of the optioned Shares at any time during the period ("Exercise Period") commencing on the Earliest Vesting Date and ending on the earliest to occur of the following dates:

(i)    the close of business on the date of the Option Holder’s termination of service due to resignation or immediately upon Termination for Cause;

(ii)    last day of the 3-month period commencing on the date of the termination of all service with the Company and Provident Bank due to a discharge that is not a Termination for Cause;

(iii)    the last day of the 1-year period commencing on the date of termination of all service with the Company and Provident Bank due to death, Disability or Retirement, and

(iv)    the last day of the ten-year period following the date on which the Option was granted.

(b)    If the Option is designated as an ISO, the favorable tax treatment applicable to incentive stock options may not apply if it is exercisable more than three months after termination of employment for reasons other than death or total and permanent disability (within this meaning of section 22(e)(3) of the Code) or more than one year after termination of employment due to total and permanent disability.

(c)    If the Option has an Earliest Exercise Date that is before its Vesting Date, the Option may be exercised before it is vested. In this case, the Shares issued will bear a restrictive legend and will be nontransferable and subject to forfeiture until their Vesting Date.

(d)    To become vested in an Option, the Option Holder must be in continuous service with the Company and/or Provident Bank during the period beginning on the Grant Date and ending on the Vesting Date. In addition, the disinterested members of the “Committee” (as defined in the 2012 Stock Incentive Plan) must determine in its discretion that the Option Holder's performance as an officer or employee has been satisfactory. In general, performance is considered satisfactory if the Option Holder has been the subject of a formal written performance appraisal within the most recent 12 months and received a salary increase or one-time payment in lieu of a salary increase and no material negative change in the performance level has occurred. If performance is not determined to have been satisfactory, or, if the Option Holder terminated service with the Company prior to a Vesting Date, any Options granted hereunder that are scheduled to vest on that Vesting Date, and any Shares issued upon exercise of such an Option, are deemed forfeited for that Option Holder. In the event of the Option Holder’s termination of service with the Company due to death, Disability or Retirement, unvested Options with a Vesting Date that occurs during the calendar year of termination or the following calendar year, and any Shares issued upon exercise of such Options, will be deemed vested as of the termination date. Options that are forfeited will be immediately canceled and will cease to be exercisable. Any Shares that are forfeited must be returned to the Company in exchange for a payment equal to Exercise Price paid for the Shares or their Fair Market Value on the date forfeited, whichever is less. In the event of a Change in Control, all Options evidenced by this Agreement that were not previously forfeited will be 100% vested.

(e)    To qualify for Retirement, the Option Holder must, as of the termination date, enter into a retirement agreement with the Company in a form approved by the Committee, within the Committee’s discretion, and under which the Option Holder agrees, for a period of 2 years, to provide consulting services to the Company and Provident Bank (as specified in Section 2.46 of the Plan) and to refrain from competing with or soliciting employees and customers of the Company and Provident Bank.

Section 3.    Exercise Price. During the Exercise Period, and after the applicable Earliest Exercise Date, the Option Holder shall have the right to purchase all or any portion of the optioned Shares at the Exercise Price per Share.

Section 4.    Method of Exercise. The Option Holder may, at any time during the Exercise Period provided by section 2, exercise his right to purchase all or any part of the optioned Shares then available for purchase; provided, however, that the minimum number of shares of optioned Shares which may be purchased shall be one hundred (100) or, if less, the total number of shares of optioned Shares then available for purchase. The Option Holder shall exercise such right by:

(a)    giving written notice to the Committee, in the form attached hereto as Appendix A; and

(b)    delivering to the Committee full payment of the Exercise Price for the optioned Common Stock to be purchased.    

The date of exercise shall be the earliest date practicable following the date the requirements of this section 4 have been satisfied. Payment shall be made (i) in United States dollars by certified check, money order, official bank check or personal check made payable to the order of Provident New York Bancorp, (ii) with the Committee’s approval, in Shares duly endorsed for transfer and with all necessary stock transfer tax stamps attached (or using a “constructive delivery” method approved by the Committee), already owned by the Option Holder for more than 6 months and having a fair market value equal to the Exercise Price, such fair market value to be determined in such manner as may be provided by the Committee or as may be required in order to comply with or conform to the requirements of any applicable laws or regulations, or (iii) in a combination of (i) and (ii). In lieu thereof, payment for any Shares to be purchased upon exercise of an Option may also be made by delivering a properly executed notice to the Company, together with a copy of irrevocable instructions to a broker to deliver promptly to the Company the amount of sale or loan proceeds to pay the Exercise Price and applicable tax withholding amounts (if any).

Section 5.    Delivery and Registration of Optioned Shares. As soon as is practicable following the date on which the Option Holder has satisfied the requirements of section 4, the Committee shall take such action as is necessary to cause the Company to issue a stock certificate evidencing the Option Holder’s ownership of the optioned Shares that have been purchased. The Option Holder shall have no right to vote or to receive dividends, nor have any other rights with respect to optioned Shares, prior to the date as of which such optioned Shares are transferred to the Option Holder on the stock transfer records of the Company, and no adjustments shall be made for any dividends or other rights for which the record date is prior to the date as of which such transfer is affected. The obligation of the Company to deliver Shares under this Agreement shall, if the Committee so requests, be conditioned upon the receipt of a representation as to the investment intention of the person to whom such Shares are to be delivered, in such form as the Committee shall determine to be necessary or advisable to comply with the provisions of applicable federal, state or local law.

Section 6.    No Right to Continued Service. Nothing in this Agreement nor any action of the Board or Committee with respect to this Agreement shall be held or construed to confer upon the Option Holder any right to a continuation of service by the Company or Provident Bank. The Option Holder may be dismissed or otherwise dealt with as though this Agreement had not been entered into.

Section 7.    Taxes. Where any person is entitled to receive Shares pursuant to the exercise of the Option granted hereunder, the Company shall have the right to require such person to pay to the Company the amount of any tax which the Company is required to withhold with respect to such Shares, or, in lieu thereof, to retain, or to sell without notice, a sufficient number of Shares to cover the amount required to be withheld.

Section 8.    Notices. Any communication required or permitted to be given under the Plan, including any notice, direction, designation, comment, instruction, objection or waiver, shall be in writing and shall be deemed to have been given at such time as it is delivered personally or five (5) days after mailing if mailed, postage prepaid, by registered or certified mail, return receipt requested, addressed to such party at the address listed below, or at such other address as one such party may by written notice specify to the other party:

(a)    If to the Committee:

Provident New York Bancorp

c/o Provident Bank

400 Rella Boulevard

Montebello, New York

Attention:    Corporate Secretary

(b)    If to the Option Holder, to the Option Holder's address as shown in the Company's records.

Section 9.    Restrictions on Transfer. The Option granted hereunder is not transferable by any Option Holder, except that: (i) an Option Holder may transfer a Non-Qualified Stock Option to his Family Members during his lifetime; and (ii) any Option Holder may transfer Options remaining unexercised at his death to a Beneficiary or by will or by the laws of descent and distribution. Any permitted transfer to Family Members during an Option Holder’s lifetime shall be effected by written notice to the Company given in such form and manner as the Committee may prescribe and shall be recognized only if such notice is received by the Company prior to the death of the person giving it. Thereafter, the Permitted Transferee shall have, with respect to such Option, all of the rights, privileges and obligations which would attach thereunder to the Recipient except the right to transfer the Option to Family Members. If a privilege of the Option depends on the life, Service, employment or other status of the transferor, such privilege of the Option for the transferee shall continue to depend on the life, Service, employment or other status of the transferor. The Committee shall have full and exclusive authority to interpret and apply the provisions of this Plan to transferees to the extent not specifically described herein.

Section 10.    Successors and Assigns. This Agreement shall inure to the benefit of and shall be binding upon the Company and the Option Holder and their respective heirs, successors and assigns.

Section 11.    Construction of Language. Whenever appropriate in the Agreement, words used in the singular may be read in the plural, words used in the plural may be read in the singular, and words importing the masculine gender may be read as referring equally to the feminine or the neuter. Any reference to a section shall be a reference to a section of this Agreement, unless the context clearly indicates otherwise. Capitalized terms not specifically defined herein shall have the meanings assigned to them under the Plan.

Section 12.    Governing Law. This Agreement shall be construed, administered and enforced according to the laws of the State of New York without giving effect to the conflict of laws principles thereof, except to the extent that such laws are preempted by the federal law. The federal and state courts having jurisdiction in Rockland County, New York shall have exclusive jurisdiction over any claim, action, complaint or lawsuit brought under the terms of the Plan. By accepting any Option granted under this Agreement, the Option Holder, and any other person claiming any rights under the Agreement, agrees to submit himself, and any such legal action as he shall bring under the Plan, to the sole jurisdiction of such courts for the adjudication and resolution of any such disputes.

Section 13.    Amendment. This Agreement may be amended, in whole or in part and in any manner not inconsistent with the provisions of the Plan, at any time and from time to time, by written agreement between the Company and the Option Holder. This Agreement amends and supersedes any Stock Option Agreement bearing the same grant date.

Section 14.    Plan Provisions Control. This Agreement and the rights and obligations created hereunder shall be subject to all of the terms and conditions of the Plan. In the event of any conflict between the provisions of the Plan and the provisions of this Agreement, the terms of the Plan, which are incorporated herein by reference, shall control. By signing this Agreement, the Option Holder acknowledges receipt of a copy of the Plan. The Option Holder acknowledges that he or she may not and will not rely on any statement of account or other communication or document issued in connection with the Plan other than the Plan, this Agreement, and any document signed by an authorized representative of the Company that is designated as an amendment of the Plan or this Agreement.

APPENDIX A TO STOCK OPTION AWARD AGREEMENT

NOTICE OF EXERCISE

Notice is hereby given pursuant to Section 4 of the General Terms and Conditions of my Stock Option Award Agreement that I elect to purchase the number of Shares set forth below at the Exercise Price set forth in my Stock Option Award Agreement:

Stock Option Award Agreement dated: ____________

Number of shares being purchased: ____________

Total Exercise Price: $____________

This Notice of Exercise is accompanied by either (check one):

  certified check, money order, official bank check or personal check made payable to the order of the Company in an amount equal to the Exercise Price;

_____ Shares of the Company already in my possession with a Fair Market Value of

$;* or

  a properly executed notice to the Company, together with a copy of irrevocable instructions to a broker to deliver promptly to the Company the amount of sale or loan proceeds to pay the Exercise Price and applicable tax withholding amounts (if any).

I agree to provide to the Company such additional documents or information as may be required pursuant to the Company's 2012 Stock Incentive Plan.

OPTION HOLDER

By:

Print Name:

*     If I elect to exercise by exchanging shares I already own, I will constructively return shares that I already own to purchase the new option shares. If my shares are in certificate form, I must attach a separate statement indicating the certificate number of the shares I am treating as having exchanged. If the shares are held in “street name” by a registered broker, I must provide the Company with a notarized statement attesting to the number of shares owned that will be treated as having been exchanged. I will keep the shares that I already own and treat them as if they are shares acquired by the option exercise. In addition, I will receive additional shares equal to the difference between the shares I constructively exchanged and the total new option shares that I acquired.

DESIGNATION OF BENEFICIARY

General Information: Use this form to designate the Beneficiary(ies) who may exercise Options outstanding to you at the time of your death.

Name of Person Making Designation:				Social Security Number:
BENEFICIARY DESIGNATION:		Complete sections A and B. If no percentage shares are specified, each Beneficiary in the same class (primary or contingent) shall have an equal share. If any designated Beneficiary predeceases you, the shares of each remaining Beneficiary in the same class (primary or contingent) shall be increased proportionately.
A. PRIMARY BENEFICIARY(IES).  I hereby designate the following person as my primary Beneficiary under the Plan, reserving the right to change or revoke this designation at any time prior to my death (attach additional sheets as necessary):
Name	Address		Relationship		Birth date	Share
						Total=100 percent
B. CONTINGENT BENEFICIARY(IES).  I hereby designate the following person(s) as my contingent Beneficiary(ies) under the Plan to receive benefits only if all of my primary Beneficiaries should predecease me, reserving the right to change or revoke this designation at any time prior to my death as to all outstanding Options:
Name	Address		Relationship		Birth date	Share
						Total = 100 percent
SIGN HERE	I understand that this Beneficiary Designation shall be effective only if properly completed and received by the Corporate Secretary of Provident New York Bancorp prior to my death, and that it is subject to all of the terms and conditions of the Plan. I also understand that an effective Beneficiary designation revokes my prior designation(s) with respect to all outstanding Options.
Your signature					Date

------------------------------------------- Internal Use Only ------------------------------------------------

This Beneficiary Designation was received by the Corporate Secretary of Provident New York Bancorp on the date indicated. By Authorized Signature Date Comments

EX-10.29

EXHIBIT 10.29

PROVIDENT NEW YORK BANCORP

2012 STOCK INCENTIVE PLAN

PERFORMANCE-BASED STOCK AWARD NOTICE

____-______-________

Name of Award RecipientSocial Security Number

Street Address

City State                              ZIP Code    

This Performance-Based Stock Award Notice is intended to set forth the terms and conditions on which a Performance-Based Stock Award has been granted under the Provident New York Bancorp 2012 Stock Incentive Plan. Set forth below are the specific terms and conditions applicable to this Award. Attached as Exhibit A are its general terms and conditions.

Stock Award	(A)	(B)	(C)
Effective Date
Class of Shares	Common	Common	Common
No. of Awarded Shares*
Vesting Date
Performance Conditions	See Appendix B to Exhibit A	See Appendix B to Exhibit A	See Appendix B to Exhibit A

*Represents performance for Target Award as set forth in Appendix B to Exhibit A. Subject to adjustment as provided in the Plan and the General Terms and Conditions.

By signing where indicated below, Provident New York Bancorp (the “Company”) grants this Performance-Based Stock Award upon the specified terms and conditions, and the Performance-Based Stock Award Recipient acknowledges receipt of this Performance-Based Stock Award Notice, including Exhibit A and Appendices A and B, and agrees to observe and be bound by the terms and conditions set forth herein

PROVIDENT NEW YORK BANCORP AWARD RECIPIENT

By

Name:

Title:     

Instructions: This page should be completed by or on behalf of the Compensation Committee. Any blank space intentionally left blank should be crossed out. A Performance-Based Stock Award consists of shares granted with uniform terms and conditions. Where shares granted under a Performance-Based Stock Award are awarded on the same date with varying terms and conditions (for example, varying vesting dates), the awards should be recorded as a series of grants each with its own uniform terms and conditions.

EXHIBIT 10.29

EXHIBIT A

PROVIDENT NEW YORK BANCORP

2012 STOCK INCENTIVE PLAN

PERFORMANCE-BASED STOCK AWARD NOTICE

General Terms and Conditions

Section 1.     Size and Type of Award. The shares of Common Stock of Provident New York Bancorp ("Shares") covered by this Award ("Awarded Shares") are listed on the Performance-Based Stock Award Notice. The Performance-Based Stock Award Notice is subject to all of the terms and conditions of this Award Notice and the Provident Bancorp 2012 Stock Incentive Plan (“Plan”).

Unless otherwise specified by the Compensation Committee, your Awarded Shares as set forth on the Performance-Based Stock Award Notice will be designated “Escrow” and held in the name of the Compensation Committee or of a trustee or custodian named by the Compensation Committee on a pooled basis with other Awarded Shares. You may receive additional Shares, or forfeit Awarded Shares, as set forth in Section 2 below.

Your employment with Provident New York Bancorp and Provident Bank constitutes adequate consideration for the issuance of the Awarded Shares to you having a value at least equal to the par value of the Awarded Shares, but the vesting conditions described below will nevertheless determine your right to acquire unrestricted ownership of the Awarded Shares.

Section 2.     Vesting.

(a)     Vesting Conditions. There are conditions you must satisfy before your Performance-Based Stock Award will vest:

(i) You must remain in the continuous service of Provident New York Bancorp and/or Provident Bank through the Vesting Date shown in this Performance-Based Stock Award Notice (“Service Conditions”).

(ii) Any Performance Condition(s) specified in this Performance-Based Stock Award Notice must be met as of the end of their respective Performance Measurement Period(s) as determined by the Compensation Committee on the basis of such evidence as it deems appropriate (“Performance Conditions”).

(iii) Awarded Shares, as adjusted based on satisfaction of the Performance Conditions, will vest and become non-forfeitable on the Vesting Date.

As a general rule, if you have satisfied BOTH the Service Conditions and the Performance Conditions, your right to the Awarded Shares will be non-forfeitable.

(b)     Vesting Date. The Vesting Date for your Awarded Shares, as adjusted, is specified on the Award Notice. On the Vesting Date, you will obtain unrestricted ownership of the Awarded Shares, as adjusted, that vest on that Vesting Date. A stock certificate evidencing unrestricted ownership will be transferred to you.

(c)     Forfeitures. If you terminate service with the Company prior to a Vesting Date, you will forfeit any Awarded Shares that are scheduled to vest on that date. If you remain in continuous service with Provident New York Bancorp and/or Provident Bank through the applicable Vesting Date but one or more of the applicable Performance Conditions are not satisfied, you will forfeit any Awarded Shares the vesting of which depended on satisfaction of the unsatisfied Performance Condition(s). When you forfeit Awarded Shares, all of your interest in the Awarded Shares will be canceled and any stock certificate or other evidence of ownership must be returned to the Company. You agree to take any action and execute and deliver any document that the Company requests to effect the return of your unvested Awarded Shares. In the event you do not cooperate with the Company in this regard, you hereby appoint and designate the Company as your attorney-in-fact for the purpose of taking any action and signing any document, in your name, which the Company determines is necessary to enforce the forfeiture.

(d)     Death, Disability or Retirement. In the event of your service terminates due to death or Disability (as defined in the Plan) or Retirement (as defined in the Plan), you will receive a pro-rated portion of the Awarded Shares at the end of the Performance Measurement Period. The pro-rated portion will be determined by calculating the total number of Awarded Shares you would have received if your employment had not terminated prior to the end of the Performance Measurement Period, and multiplying that number by a fraction, the numerator of which is the number of full and partial months of employment that you completed after the Award Date,

Page 1 of 3

EXHIBIT 10.29

and the denominator of which is the number of full and partial months between the Award Date and the end of the Performance Measurement Period.

To qualify for Retirement, you must enter into a retirement agreement with the Company in a form approved by the Compensation Committee, within the Compensation Committee’s discretion, and under which the you agree, for a period of two (2) years, to provide consulting services to the Company and Provident Bank (as specified in Section 2.46 of the Plan) and to refrain from competing with or soliciting employees and customers of the Company and Provident Bank.

(e)     Accelerated Vesting. Upon a “Change in Control” (as defined in the Plan), the Awarded Shares will vest on an accelerated basis and any Performance Condition for which the Performance Measurement Period has not ended will be deemed satisfied (or will be deemed achieved at target if more than one level of performance is provided for). In such event, you will receive a pro-rated portion of the Awarded Shares at the time of the Change of Control determined by calculating the total number of Awarded Shares you would have received upon satisfaction of the Performance Condition and multiplying that number by a fraction, the numerator of which is the number of full and partial months of employment that you completed after the Award Date, and the denominator of which is the number of full and partial months between the Award Date and the date of the Change in Control.

(f)     Definition of Service. For purposes of determining the vesting of your Awarded Shares, you will be deemed to be in the service of the Company for so long as you serve in any capacity as an employee, officer, non-employee director or consultant of the Company and/or Provident Bank.

(g) Application of Clawback Policy. Notwithstanding anything in the Performance-Based Stock Award Notice to the contrary, the Awarded Shares and any related dividends shall be subject to adjustment and/or recovery, in whole or in part, following the date on which they become vested and payable if and to the extent (i) required by any applicable law, rule or regulation or (ii) provided under the terms of any clawback policy or other policy of similar import adopted by the Company and in effect on the date the Awarded Shares or dividends, as applicable, become vested and payable.

Section 3.     Dividends. Dividends or distributions paid on Awarded Shares, whether or not in cash, will not be paid to you currently. Instead, they will be vested, accumulated and paid to you if, as and when the related Awarded Shares become vested and will be subject to the same Service Conditions and Performance Conditions as the Awarded Shares.

Section 4.     Voting and Tender Rights. You will not have the right to vote, or direct the voting of, Awarded Shares, or the right to respond, or direct the response with respect to Awarded Shares to any tender offer, exchange offer or other offer made to the holder of Shares, unless and until the applicable Service Conditions and Performance Conditions have been satisfied and ownership of record of the Awarded Shares has been transferred to you.

Section 5.    Taxes. Where any person is entitled to receive Shares pursuant to the Award granted hereunder, the Company shall have the right to require such person to pay to the Company the amount of any tax which the Company is required to withhold with respect to such Shares, or, in lieu thereof, to retain, or to sell without notice, a sufficient number of Shares to cover the amount required to be withheld.

Section 6.    Notices. Any communication required or permitted to be given under the Plan, including any notice, direction, designation, comment, instruction, objection or waiver, shall be in writing and shall be deemed to have been given at such time as it is delivered personally or five (5) days after mailing if mailed, postage prepaid, by registered or certified mail, return receipt requested, addressed to such party at the address listed below, or at such other address as one such party may by written notice specify to the other party:

If to the Recipient, to the Recipient's address as shown in the Company's records.

If to the Compensation Committee:

Provident New York Bancorp
c/o Provident Bank
400 Rella Blvd.
Montebello, New York
Attention: Corporate Secretary

Section 7.    Restrictions on Transfer. The Performance-Based Stock Award granted hereunder shall not be subject in any manner to anticipation, alienation or assignment, nor shall such award be liable for or subject to debts, contracts, liabilities, engagements or torts, nor shall it be transferable by the Recipient other than by will or by the laws of descent and distribution or as otherwise permitted by the Plan. To name a Beneficiary, complete the attached Appendix A and file it with the Corporate Secretary of Provident New York Bancorp.

Page 2 of 3

EXHIBIT 10.29

Section 8.    Successors and Assigns. This Agreement shall inure to the benefit of and shall be binding upon the Company and the Recipient and their respective heirs, successors and assigns.

Section 9.    Construction of Language. Whenever appropriate in the Agreement, words used in the singular may be read in the plural, words used in the plural may be read in the singular, and words importing the masculine gender may be read as referring equally to the feminine or the neuter. Any reference to a section shall be a reference to a section of this Notice, unless the context clearly indicates otherwise. Capitalized terms not specifically defined herein shall have the meanings assigned to them under the Plan.

Section 10.    Governing Law. This Notice shall be construed, administered and enforced according to the laws of the State of New York without giving effect to the conflict of law principles thereof, except to the extent that such laws are preempted by federal law. The federal and state courts having jurisdiction in Rockland County, New York shall have exclusive jurisdiction over any claim, action, complaint or lawsuit brought under the terms of the Plan. By accepting any Award granted under this Notice, the Recipient, and any other person claiming any rights under the Notice, agrees to submit himself, and any such legal action as he shall bring under the Plan, to the sole jurisdiction of such courts for the adjudication and resolution of any such disputes.

Section 11.    Amendment. This Award may be amended, in whole or in part and in any manner not inconsistent with the provisions of the Plan, at any time and from time to time, by written agreement between the Company and the Recipient. This Award amends and supersedes any Performance-Based Stock Award Notice bearing the same effective date.

Section 12.    Plan Provisions Control. This Award and the rights and obligations created hereunder shall be subject to all of the terms and conditions of the Plan that would apply if this Award were being made under the Plan In the event of any conflict between the provisions of the Plan and the provisions of this Notice, the terms of the Plan, which are incorporated herein by reference, shall control. By signing this Agreement, the Recipient acknowledges receipt of a copy of the Plan. The Recipient acknowledges that he or she may not and will not rely on any statement of account or other communication or document issued in connection with the Award other than the Plan, this Notice, or any document signed by an authorized representative of the Company that is designated as an amendment of the Plan or this Notice.

Page 3 of 3

EXHIBIT 10.29

APPENDIX A TO PERFORMANCE-BASED STOCK AWARD NOTICE

Beneficiary Designation Form - Performance-Based Stock

GENERAL INFORMATION				Use this form to designate the Beneficiary(ies) who may receive Performance-Based Stock Awards that become vested at your death.
Name of Person Making Designation						Social Security Number ______—_____—__________
BENEFICIARY DESIGNATION			Complete sections A and B. If no percentage shares are specified, each Beneficiary in the same class (primary or contingent) shall have an equal share. If any designated Beneficiary predeceases you, the shares of each remaining Beneficiary in the same class (primary or contingent) shall be increased proportionately.
A PRIMARY BENEFICIARY(IES).  I hereby designate the following person as my primary Beneficiary under the Plan, reserving the right to change or revoke this designation at any time prior to my death:
Name					Address		Relationship	Birthdate	Share
									%
									%
									% Total = 100%
B CONTINGENT BENEFICIARY(IES).  I hereby designate the following person(s) as my contingent Beneficiary(ies) under the Plan to receive benefits only if all of my primary Beneficiaries should predecease me, reserving the right to change or revoke this designation at any time prior to my death as to all outstanding Options:
Name					Address		Relationship	Birthdate	Share
									%
									%
									% Total = 100%
S I G N	H E R E	I understand that this Beneficiary Designation shall be effective only if properly completed and received by the Corporate Secretary of Provident New York Bancorp prior to my death, and that it is subject to all of the terms and conditions of the Plan. I also understand that an effective Beneficiary designation revokes my prior designation(s) with respect to all outstanding Awards          Your SignatureDate

---------------------------------------------------- Internal Use Only ------------------------------------------------------------

This Beneficiary Designation was received by the Corporate Secretary of Provident New York Bancorp on the date indicated. By    Authorized Signature Date Comments

EXHIBIT 10.29

APPENDIX B TO PERFORMANCE-BASED STOCK AWARD NOTICE

[Insert Performance Vesting Conditions as determined by the Compensation Committee]

EX-10.30

EXHIBIT 10.30

STERLING BANCORP (FKA PROVIDENT NEW YORK BANCORP)

ID: 80-0091851

400 Rella Boulevard

Montebello, NY 10901

Notice of Grant of Award and Award Agreement

_______________________________________            Award Number:     _________

Name of Award Holder                        Plan:         2014

______

Address                    City            State                Zip

Effective __________, you have been granted a restricted stock award of ______ shares of STERLING BANCORP (FKA PROVIDENT NEW YORK BANCORP) (the Company) common stock. These shares are restricted until the vest date(s) shown below.

The current total value of the award is $___________.

The total price of the award is $__________.

The award will vest in increments on the date(s) shown.

Shares Full Vest Date

By your signature and the Company’s signature below, you and the Company agree that this award is granted under and governed by the terms and conditions of the Company’s Award Plan as amended and the Award Agreement, all of which are attached and made a part of this document.

STERLING BANCORP (FKA PROVIDENT NEW YORK BANCORP)

_____________________________________________________________________________

Print Name:                            Date:

Title:        

HOLDER:

________________________________________________        _____________________________

Print Name:                            Date:

EXHIBIT 10.30

EXHIBIT A

STERLING BANCORP

2014 STOCK INCENTIVE PLAN

RESTRICTED STOCK AWARD NOTICE

General Terms and Conditions

Section 1.    General Terms.

(a)    Size and Type of Award. The shares of Common Stock (the “Shares”) of Sterling Bancorp (the “Company”) covered by this Award (“Awarded Shares”) are listed on the Restricted Stock Award Notice. This Restricted Stock Award Notice (this “Award Notice”) is subject to all of the terms and conditions of the Sterling Bancorp 2014 Stock Incentive Plan (the “Plan”).

(b)     Holding of Awarded Shares. A certificate evidencing the Awarded Shares will be issued to you and will include a restrictive legend incorporating the terms and conditions of this Award Notice, which will include a one-year holding requirement once the award has fully vested, except for any shares sold in accordance with Section 6 to cover the amount of taxes required to be withheld with respect to such Shares. If permitted by the Compensation Committee, you may elect to be taxed on shares immediately upon their transfer to you instead of later when they vest. If you make this election, you will be required to include in ordinary income, for the taxable year in which the transfer of certificates occurs, an amount equal to the fair market value of the shares on the transfer date. The Company may be allowed to claim a tax deduction, for compensation expense, in a like amount. You make this election by filing a statement of election containing specified items of information with the Internal Revenue Service within thirty (30) days after the date of transfer of the shares to you. You must give a copy of the statement you file to the Company. If you make this election, the vesting of your awards will not subject you to further income tax.

(c)     Employment. Your employment with the Company, Sterling National Bank and/or any of their subsidiaries constitutes adequate consideration for the issuance of the Awarded Shares to you having a value at least equal to the par value of the Awarded Shares, but the vesting conditions described below will nevertheless determine your right to acquire unrestricted ownership of the Awarded Shares.

Section 2.     Vesting.

(a)    Vesting Dates. The Vesting Dates for your Awarded Shares are specified on this Award Notice. On each Vesting Date, you will obtain unrestricted ownership of the Awarded Shares that vest on that Vesting Date, subject to a one-year holding requirement.

(b)    Vesting Conditions. There are conditions you must satisfy before your Restricted Stock Award will vest. If you receive your Restricted Stock Award for services as an officer or employee, you must, except as otherwise provided herein, remain in continuous service from the Effective Date shown on this Award Notice through the relevant Vesting Date.

(c)    Forfeitures. If you terminate service with the Company, Sterling National Bank and/or any of their subsidiaries prior to a Vesting Date, you will forfeit any Awarded Shares that are scheduled to vest on or after that date. To the extent that any Awarded Shares have vested prior to your termination of service with the Company, the one-year holding requirement will continue to apply. When you forfeit Awarded Shares, all of your interest in the Awarded Shares will be canceled and any stock certificate or other evidence of ownership must be returned to the Compensation Committee or to the Company. You agree to take any action and execute and deliver any document that the Company requests to effect the return of your unvested Awarded Shares. In the event you do not cooperate with the Company in this regard, you hereby appoint and designate the Company as your attorney-in-fact for the purpose of taking any action and signing any document, in your name, which the Company determines is necessary to enforce the forfeiture.

(d)    Accelerated Vesting. Your Awarded Shares that have not previously vested will become fully vested immediately (and no one-year holding requirement will apply), and without any further action on your part, in the event of your death or Disability before your termination of service with the Company, Sterling National Bank and/or any of their subsidiaries or your Retirement from the Company, Sterling National Bank and/or any of their subsidiaries. To qualify for Retirement, you must enter into a retirement agreement with the Company, Sterling National Bank or any of their subsidiaries in a form approved by the Compensation Committee, within the Compensation Committee’s discretion, and under which you agree, for a period of two (2) years, to provide consulting services to the Company, Sterling National Bank and/or any of their subsidiaries (as specified in Section 2.46 of the Plan) and to refrain from competing with or soliciting employees and customers of the Company, Sterling National Bank or any of their subsidiaries. In addition, in the event a Change in Control occurs before you terminate service with the Company, Sterling National Bank and/or any of their subsidiaries, then any Awarded Shares not theretofore forfeited shall become immediately vested on the

Page 1 of 3

date of the Change in Control (and no one-year holding requirement will apply). You may designate a Beneficiary to receive any Awarded Shares that vest upon your death using the Beneficiary Designation attached as Appendix A.

(e)    Definition of Service. For purposes of determining the vesting of your Awarded Shares, you will be deemed to be in the service of the Company, Sterling National Bank and/or any of their subsidiaries for so long as you serve in any capacity as an employee, officer, non-employee director or consultant of the Company, Sterling National Bank and/or any of their subsidiaries.

(f)    Application of Clawback Policy.Notwithstanding anything in the this Award Notice to the contrary, the Awarded Shares and any related dividends shall be subject to adjustment and/or recovery, in whole or in part, following the date on which they become vested and payable if and to the extent (i) required by any applicable law, rule or regulation or (ii) provided under the terms of any clawback policy or other policy of similar import adopted by the Company and in effect on the date the Awarded Shares or dividends, as applicable, become vested and payable.

Section 3.    Dividends. Any dividends declared by the Company with a record date that is after the Effective Date specified in this Award Notice will be paid in the same manner as for other shareholders.

Section 4.     Voting and Tender Rights. You will have the right to vote, or direct the voting of, Awarded Shares.

Section 5.    No Right to Continued Service. Nothing in this Award Notice, or any action of the Board or Compensation Committee with respect to this Award Notice, shall be held or construed to confer upon you any right to a continuation of service by the Company, Sterling National Bank or any of their subsidiaries. You may be dismissed or otherwise dealt with as though this Award Notice had not been entered into.

Section 6.    Taxes. Where any person is entitled to receive Shares pursuant to the Restricted Stock Award granted hereunder, the Company shall have the right to require such person to pay to the Company the amount of any tax which the Company is required to withhold with respect to such Shares, or, in lieu thereof, to retain, or to sell without notice, a sufficient number of Shares to cover the amount required to be withheld.

Section 7.    Notices. Any communication required or permitted to be given under the Plan, including any notice, direction, designation, comment, instruction, objection or waiver, shall be in writing and shall be deemed to have been given at such time as it is delivered personally or five (5) days after mailing if mailed, postage prepaid, by registered or certified mail, return receipt requested, addressed to such party at the address listed below, or at such other address as one such party may by written notice specify to the other party:

If to the Recipient, to the Recipient's address as shown in the Company's records.

If to the Compensation Committee:

Sterling Bancorp
c/o Sterling National Bank
400 Rella Blvd.
Montebello, New York
Attention: Compensation Committee and Corporate Secretary

Section 8.    Restrictions on Transfer. The Restricted Stock Award granted hereunder shall not be subject in any manner to anticipation, alienation or assignment, nor shall such award be liable for, or subject to, debts, contracts, liabilities, engagements or torts, nor shall it be transferable by the Recipient other than by will or by the laws of descent and distribution or as otherwise permitted by the Plan. To name a Beneficiary, complete the attached Appendix A and file it with the Corporate Secretary of the Company.

Section 9.    Successors and Assigns. This Award Notice shall inure to the benefit of and shall be binding upon the Company and the Recipient and their respective heirs, successors and assigns.

Section 10.    Construction of Language. Whenever appropriate in this Award Notice, words used in the singular may be read in the plural, words used in the plural may be read in the singular, and words importing the masculine gender may be read as referring equally to the feminine or the neuter. Any reference to a section shall be a reference to a section of this Award Notice, unless the context clearly indicates otherwise. Capitalized terms not specifically defined herein shall have the meanings assigned to them under the Plan.

Section 11.    Governing Law. This Award Notice shall be construed, administered and enforced according to the laws of the State of New York without giving effect to the conflict of law principles thereof, except to the extent that such laws are preempted by federal law. The federal and state courts having jurisdiction in Rockland County, New York shall have exclusive jurisdiction over any claim, action, complaint or lawsuit brought under the terms of the Plan. By accepting any Award granted under this Award Notice, the Recipient, and any other person claiming any rights under this Award Notice, agrees to submit himself or herself, and

Page 2 of 3

any such legal action as he or she shall bring under the Plan, to the sole jurisdiction of such courts for the adjudication and resolution of any such disputes.

Section 12.    Amendment. This Award Notice may be amended, in whole or in part and in any manner not inconsistent with the provisions of the Plan, at any time and from time to time, by written agreement between the Company and the Recipient. This Award Notice amends and supersedes any Award Notice bearing the same effective date.

Section 13.    Plan Provisions Control. This Award Notice and the rights and obligations created hereunder shall be subject to all of the terms and conditions of the Plan that would apply if this Award Notice were being made under the Plan. In the event of any conflict between the provisions of the Plan and the provisions of this Award Notice, the terms of the Plan, which are incorporated herein by reference, shall control. By signing this Award Notice, the Recipient acknowledges receipt of a copy of the Plan. The Recipient acknowledges that he or she may not and will not rely on any statement of account or other communication or document issued in connection with the Award other than the Plan, this Award Notice, or any document signed by an authorized representative of the Company that is designated as an amendment of the Plan or this Award Notice.

Page 3 of 3

EXHIBIT 10.30

APPENDIX A TO RESTRICTED STOCK AWARD NOTICE

Beneficiary Designation Form - Restricted Stock

GENERAL INFORMATION				Use this form to designate the Beneficiary(ies) who may receive Restricted Stock Awards that become vested at your death.
Name of Person Making Designation						Social Security Number ______—_____—__________
BENEFICIARY DESIGNATION			Complete sections A and B. If no percentage shares are specified, each Beneficiary in the same class (primary or contingent) shall have an equal share. If any designated Beneficiary predeceases you, the shares of each remaining Beneficiary in the same class (primary or contingent) shall be increased proportionately.
A PRIMARY BENEFICIARY(IES).  I hereby designate the following person as my primary Beneficiary under the Plan, reserving the right to change or revoke this designation at any time prior to my death:
Name					Address		Relationship	Birthdate	Share
									%
									%
									% Total = 100%
B CONTINGENT BENEFICIARY(IES).  I hereby designate the following person(s) as my contingent Beneficiary(ies) under the Plan to receive benefits only if all of my primary Beneficiaries should predecease me, reserving the right to change or revoke this designation at any time prior to my death as to all outstanding Restricted Stock Awards:
Name					Address		Relationship	Birthdate	Share
									%
									%
									% Total = 100%
S I G N	H E R E	I understand that this Beneficiary Designation shall be effective only if properly completed and received by the Corporate Secretary of Sterling Bancorp prior to my death, and that it is subject to all of the terms and conditions of the Plan. I also understand that an effective Beneficiary designation revokes my prior designation(s) with respect to all outstanding Restricted Stock Awards.          Your SignatureDate

---------------------------------------------------- Internal Use Only ------------------------------------------------------------

This Beneficiary Designation was received by the Corporate Secretary of Sterling Bancorp on the date indicated. By    Authorized Signature Date Comments

Page 4 of 3

EX-10.31

EXHIBIT 10.31

STERLING BANCORP (FKA PROVIDENT NEW YORK BANCORP)

ID: 80-0091851

400 Rella Boulevard

Montebello, NY 10901

Notice of Grant of Stock Options and Option Agreement

_______________________________________            Option Number:     _________

Name of Option Holder                        Plan:         2014

Address                    City            State                Zip Code

Effective __________, you have been granted a(n) Incentive Stock Option to buy __________ shares of STERLING BANCORP (FKA PROVIDENT NEW YORK BANCORP) (the Company) stock at $_______ per share.

The total option price of the shares granted is $__________.

Shares in each period will become fully vested on the date shown.

Shares Vest Type Full Vest Expiration

By your signature and the Company’s signature below, you and the Company agree that these options are granted under and governed by the terms and conditions of the Company’s Stock Option Plan as amended and the Option Agreement, all of which are attached and made a part of this document.

STERLING BANCORP (FKA PROVIDENT NEW YORK BANCORP)

________________________________________________    _____________________________

Print Name:                            Date:

Title:        

OPTION HOLDER:

________________________________________________    _____________________________

Print Name:                            Date:

EXHIBIT 10.31

EXHIBIT A

STERLING BANCORP 2014 STOCK INCENTIVE PLAN

STOCK OPTION AWARD AGREEMENT

General Terms and Conditions

Section 1.    Incentive Stock Option. If the Option has been granted to an Option Holder who is a non-employee director, it is a Non-Qualified Stock Option (“NQSO”). If the Option has been granted to an individual who is an employee and is designated as an ISO, Sterling Bancorp (the “Company”) intends the Option evidenced hereby to be an “incentive stock option” within the meaning of section 422 of the Internal Revenue Code of 1986, as amended (the “Code”). If the Option or any part of the Option does not qualify as an “incentive stock option” under the Plan or the Code, the Option, or the part not qualifying, shall be treated as an NQSO under the Code.

Section 2.    Exercise Period. (a) Subject to section 2(b), the Option Holder shall have the right to purchase all or any portion of the optioned Shares at any time during the period (“Exercise Period”) commencing on the Earliest Exercise Date and ending on the earliest to occur of the following dates:

(i)    the date and time of the Option Holder’s termination of service for any reason other than the Option Holder’s death, Retirement, Disability or discharge that is not a Termination for Cause;

(ii)    last day of the 3-month period commencing on the date and time of the termination of all service with the Company, Sterling National Bank and/or any of their subsidiaries due to a discharge that is not a Termination for Cause;

(iii)    the last day of the 1-year period commencing on the date and time of termination of all service with the Company, Sterling National Bank and/or any of their subsidiaries due to death, Disability or Retirement, and

(iv)    the last day of the ten (10) year period following the date on which the Option was granted.

(b)    If the Option is designated as an ISO, the favorable tax treatment applicable to incentive stock options will not apply if it is exercised more than three (3) months after termination of employment for reasons other than death or total and permanent disability (within the meaning of section 22(e)(3) of the Code) or more than one (1) year after termination of employment due to total and permanent disability.

(c)    If the Option has an Earliest Exercise Date that is before its Vesting Date, the Option may be exercised before it is vested. In this case, the Shares issued will bear a restrictive legend and will be nontransferable and subject to forfeiture until their Vesting Date.

(d)    To become vested in an Option, the Option Holder must be in continuous service with the Company, Sterling National Bank and/or any of their subsidiaries during the period beginning on the Grant Date and ending on the Vesting Date. In addition, the disinterested members of the Compensation Committee must determine in its discretion that the Option Holder's performance as an officer or employee has been satisfactory. In general, performance is considered satisfactory if the Option Holder has been the subject of a formal written performance appraisal within the most recent twelve (12) months and received a salary increase or one-time payment in lieu of a salary increase and no material negative change in the performance level has occurred. If performance is not determined to have been satisfactory, or, if the Option Holder terminated service with the Company, Sterling National Bank and/or any of their subsidiaries prior to a Vesting Date, any Options granted hereunder that are scheduled to vest on that Vesting Date, and any

Page 1 of 5

EXHIBIT 10.31

Shares issued upon exercise of such an Option, are deemed forfeited for that Option Holder. In the event of the Option Holder’s termination of service with the Company, Sterling National Bank and/or any of their subsidiaries due to death, Disability or Retirement, unvested Options with a Vesting Date that occurs during the calendar year of termination or the following calendar year, and any Shares issued upon exercise of such Options, will be deemed vested as of the termination date. Options that are forfeited will be immediately canceled and will cease to be exercisable. Any Shares that are forfeited must be returned to the Company in exchange for a payment equal to Exercise Price paid for the Shares or their Fair Market Value on the date forfeited, whichever is less. In the event of a Change in Control, all Options evidenced by this Award Agreement that were not previously forfeited will be one hundred percent (100%) vested upon the Change in Control on the business day following consummation of the Change in Control event.

(e)    To qualify for Retirement, the Option Holder must, as of the termination date, enter into a retirement agreement with the Company in a form approved by the Compensation Committee, within the Compensation Committee’s discretion, and under which the Option Holder agrees, for a period of two (2) years, to provide consulting services to the Company, Sterling National Bank and/or any of their subsidiaries (as specified in Section 2.46 of the Plan) and to refrain from competing with or soliciting employees and customers of the Company, Sterling National Bank or any of their subsidiaries.

Section 3.    Exercise Price. During the Exercise Period, and after the applicable Earliest Exercise Date, the Option Holder shall have the right to purchase all or any portion of the optioned Shares at the Exercise Price per Share.

Section 4.    Method of Exercise. The Option Holder may, at any time during the Exercise Period provided by section 2, exercise his or her right to purchase all or any part of the optioned Shares then available for purchase; provided, however, that the minimum number of optioned Shares which may be purchased shall be one hundred (100) or, if less, the total number of optioned Shares then available for purchase. The Option Holder shall exercise such right by:

(a)    giving written notice to the Compensation Committee, in the form attached hereto as Appendix A; and

(b)    delivering to the Compensation Committee full payment of the Exercise Price for the optioned Shares to be purchased.    

The date of exercise shall be the earliest date practicable following the date the requirements of this section 4 have been satisfied. Payment shall be made (i) in United States dollars by certified check, money order, official bank check or personal check made payable to the order of Sterling Bancorp, (ii) with the Compensation Committee’s approval, in Shares duly endorsed for transfer and with all necessary stock transfer tax stamps attached (or using a “constructive delivery” method approved by the Compensation Committee), already owned by the Option Holder for more than six (6) months as of the exercise date and having an aggregate Fair Market Value on the date the Option is exercised equal to the aggregate Exercise Price to be paid, such Fair Market Value to be determined in such manner as may be provided by the Compensation Committee or as may be required in order to comply with or conform to the requirements of any applicable laws or regulations, (iii) if and to the extent permitted by the Compensation Committee, by directing the Company to withhold from the Shares to be issued upon exercise of the Option (or a portion thereof) being exercised a number of Shares having a Fair Market Value equal to the aggregate Exercise Price to be paid (a “cashless exercise”), or (iv) in a combination of (i), (ii) and (iii). In lieu thereof, payment for any Shares to be purchased upon exercise of an Option may also be made by delivering a properly executed exercise notice to the Company, together with a copy of irrevocable instructions to a broker to deliver promptly to the Company the amount of sale or loan proceeds to pay the Exercise Price and applicable tax withholding amounts (if any).

Section 5.    Delivery and Registration of Optioned Shares. As soon as is practicable following the date on which the Option Holder has satisfied the requirements of section 4, the Compensation

Page 2 of 5

EXHIBIT 10.31

Committee shall take such action as is necessary to cause the Company to issue a stock certificate evidencing the Option Holder’s ownership of the optioned Shares that have been purchased. The Option Holder shall have no right to vote or to receive dividends, nor have any other rights with respect to the optioned Shares, prior to the date as of which such optioned Shares are transferred to the Option Holder on the stock transfer records of the Company, and no adjustments shall be made for any dividends or other rights for which the record date is prior to the date as of which such transfer is affected. The obligation of the Company to deliver Shares under this Award Agreement shall, if the Compensation Committee so requests, be conditioned upon the receipt of a representation as to the investment intention of the person to whom such Shares are to be delivered, in such form as the Compensation Committee shall determine to be necessary or advisable to comply with the provisions of applicable federal, state or local law.

Section 6.    No Right to Continued Service. Nothing in this Award Agreement nor any action of the Board or Compensation Committee with respect to this Award Agreement shall be held or construed to confer upon the Option Holder any right to a continuation of service by the Company, Sterling National Bank or any of their subsidiaries. The Option Holder may be dismissed or otherwise dealt with as though this Award Agreement had not been entered into.

Section 7. Application of Clawback Policy. Notwithstanding anything in this Award Agreement to the contrary, the Option shall be subject to adjustment and/or recovery, in whole or in part, following the date on which they become vested and payable if and to the extent (i) required by any applicable law, rule or regulation or (ii) provided under the terms of any clawback policy or other policy of similar import adopted by the Company and in effect on the date the Option become vested and payable.

Section 8.    Taxes. Where any person is entitled to receive Shares pursuant to the exercise of the Option granted hereunder, the Company shall have the right to require such person to pay to the Company the amount of any tax which the Company is required to withhold with respect to such Shares, or, in lieu thereof, to retain, or to sell without notice, a sufficient number of Shares to cover the amount required to be withheld.

Section 9.    Notices. Any communication required or permitted to be given under the Plan, including any notice, direction, designation, comment, instruction, objection or waiver, shall be in writing and shall be deemed to have been given at such time as it is delivered personally or five (5) days after mailing if mailed, postage prepaid, by registered or certified mail, return receipt requested, addressed to such party at the address listed below, or at such other address as one such party may by written notice specify to the other party:

(a)    If to the Compensation Committee:

Sterling Bancorp

c/o Sterling National Bank

400 Rella Boulevard

Montebello, New York

Attention:    Compensation Committee and Corporate Secretary

(b)    If to the Option Holder, to the Option Holder's address as shown in the Company's records.

Section 10.    Restrictions on Transfer. The Option granted hereunder is not transferable by any Option Holder, except that: (i) an Option Holder may transfer an NQSO to his or her Family Members during his or her lifetime; and (ii) any Option Holder may transfer Options remaining unexercised at his or her death to a Beneficiary or by will or by the laws of descent and distribution. Any permitted transfer to Family Members during an Option Holder’s lifetime shall be effected by written notice

Page 3 of 5

EXHIBIT 10.31

to the Company given in such form and manner as the Compensation Committee may prescribe and shall be recognized only if such notice is received by the Company prior to the death of the person giving it. Thereafter, the Permitted Transferee shall have, with respect to such Option, all of the rights, privileges and obligations which would attach thereunder to the Recipient except the right to transfer the Option to Family Members. If a privilege of the Option depends on the life, Service, employment or other status of the transferor, such privilege of the Option for the transferee shall continue to depend on the life, Service, employment or other status of the transferor. The Compensation Committee shall have full and exclusive authority to interpret and apply the provisions of this Plan to transferees to the extent not specifically described herein.

Section 11.    Successors and Assigns. This Award Agreement shall inure to the benefit of and shall be binding upon the Company and the Option Holder and their respective heirs, successors and assigns.

Section 12.    Construction of Language. Whenever appropriate in the Award Agreement, words used in the singular may be read in the plural, words used in the plural may be read in the singular, and words importing the masculine gender may be read as referring equally to the feminine or the neuter. Any reference to a section shall be a reference to a section of this Award Agreement, unless the context clearly indicates otherwise. Capitalized terms not specifically defined herein shall have the meanings assigned to them under the Plan.

Section 13.    Governing Law. This Award Agreement shall be construed, administered and enforced according to the laws of the State of New York without giving effect to the conflict of laws principles thereof, except to the extent that such laws are preempted by federal law. The federal and state courts having jurisdiction in Rockland County, New York shall have exclusive jurisdiction over any claim, action, complaint or lawsuit brought under the terms of the Plan. By accepting any Option granted under this Award Agreement, the Option Holder, and any other person claiming any rights under the Award Agreement, agrees to submit himself or herself, and any such legal action as he or she shall bring under the Plan, to the sole jurisdiction of such courts for the adjudication and resolution of any such disputes.

Section 14.    Amendment. This Award Agreement may be amended, in whole or in part and in any manner not inconsistent with the provisions of the Plan, at any time and from time to time, by written agreement between the Company and the Option Holder. This Award Agreement amends and supersedes any Stock Option Award Agreement bearing the same grant date.

Section 15.    Plan Provisions Control. This Award Agreement and the rights and obligations created hereunder shall be subject to all of the terms and conditions of the Plan. In the event of any conflict between the provisions of the Plan and the provisions of this Award Agreement, the terms of the Plan, which are incorporated herein by reference, shall control. By signing this Award Agreement, the Option Holder acknowledges receipt of a copy of the Plan. The Option Holder acknowledges that he or she may not and will not rely on any statement of account or other communication or document issued in connection with the Plan other than the Plan, this Award Agreement, and any document signed by an authorized representative of the Company that is designated as an amendment of the Plan or this Award Agreement.

Page 4 of 5

EXHIBIT 10.31

APPENDIX A TO STOCK OPTION AWARD AGREEMENT

NOTICE OF EXERCISE

Notice is hereby given pursuant to Section 4 of the General Terms and Conditions of my Stock Option Award Agreement that I elect to purchase the number of Shares set forth below at the Exercise Price set forth in my Stock Option Award Agreement:

Stock Option Award Agreement dated: ____________

Number of Shares being purchased: ____________

Total Exercise Price: $____________

This Notice of Exercise is accompanied by the following (check one):

  certified check, money order, official bank check or personal check made payable to the order of the Company in an amount equal to the Exercise Price;

_____ Shares of the Company already in my possession with a Fair Market Value of $;*

_____ I direct the Company to withhold from the Shares to be issued upon exercise of the Option (or portion thereof) being exercised a number of Shares having a Fair Market Value equal to the aggregate Exercise Price to be paid (a “cashless exercise”);

OR

_____ A combination of the above; I have specified below how I will pay for the Exercise Price and the specific amount for each payment option:

$__________	Payment made in certified check, money order, official bank check or personal check
$__________	Other Company stock in my possession*
$__________	Cashless exercise
$__________	Total Exercise Price

I agree to provide to the Company such additional documents or information as may be required pursuant to the Company's 2014 Stock Incentive Plan.

OPTION HOLDER

By:

Print Name:

*     If I elect to exercise by exchanging shares I already own, I will constructively return shares that I already own to purchase the new option shares. If my shares are in certificate form, I must attach a separate statement indicating the certificate number of the shares I am treating as having exchanged. If the shares are held in “street name” by a registered broker, I must provide the Company with a notarized statement attesting to the number of shares owned that will be treated as having been exchanged. I will keep the shares that I already own and treat them as if they are shares acquired by the option exercise. In addition, I will receive additional shares equal to the difference between the shares I constructively exchanged and the total new option shares that I acquired.

Page 5 of 5

EXHIBIT 10.31

DESIGNATION OF BENEFICIARY

General Information: Use this form to designate the Beneficiary(ies) who may exercise Options outstanding to you at the time of your death.

Name of Person Making Designation:				Social Security Number:
BENEFICIARY DESIGNATION:		Complete sections A and B. If no percentage shares are specified, each Beneficiary in the same class (primary or contingent) shall have an equal share. If any designated Beneficiary predeceases you, the shares of each remaining Beneficiary in the same class (primary or contingent) shall be increased proportionately.
A. PRIMARY BENEFICIARY(IES).  I hereby designate the following person as my primary Beneficiary under the Plan, reserving the right to change or revoke this designation at any time prior to my death (attach additional sheets as necessary):
Name	Address		Relationship		Birth date	Share
						Total=100 percent
B. CONTINGENT BENEFICIARY(IES).  I hereby designate the following person(s) as my contingent Beneficiary(ies) under the Plan to receive benefits only if all of my primary Beneficiaries should predecease me, reserving the right to change or revoke this designation at any time prior to my death as to all outstanding Options:
Name	Address		Relationship		Birth date	Share
						Total = 100 percent
SIGN HERE	I understand that this Beneficiary Designation shall be effective only if properly completed and received by the Corporate Secretary of Sterling Bancorp prior to my death, and that it is subject to all of the terms and conditions of the Plan. I also understand that an effective Beneficiary designation revokes my prior designation(s) with respect to all outstanding Options.
Your signature					Date

------------------------------------------- Internal Use Only ------------------------------------------------

EXHIBIT 10.31

This Beneficiary Designation was received by the Corporate Secretary of Sterling Bancorp on the date indicated. By Authorized Signature Date Comments

EX-10.32

EXHIBIT 10.32

STERLING BANCORP (FKA PROVIDENT NEW YORK BANCORP)

ID: 80-0091851

400 Rella Boulevard

Montebello, NY 10901

Notice of Grant of Award and Award Agreement

_______________________________________            Award Number:     _________

Name of Award Holder                        Plan:         2014

______

Address                    City            State                Zip

Effective __________, you have been granted a performance award of ________ shares of STERLING BANCORP (FKA PROVIDENT NEW YORK BANCORP) (the Company) common stock. These shares are restricted contingent upon the achievement of the associated Goal(s).

The current total value of the performance award is $__________.

The Goal will be measured in increments on the date(s) shown.

Vest Period Shares Final Measurement Date

By your signature and the Company’s signature below, you and the Company agree that this award is granted under and governed by the terms and conditions of the Company’s Award Plan as amended and the Award Agreement, all of which are attached and made a part of this document.

STERLING BANCORP (FKA PROVIDENT NEW YORK BANCORP)

________________________________________________    _____________________________

Print Name:                        Date:

Title:        

HOLDER

________________________________________________    _____________________________

Print Name:                        Date:

EXHIBIT 10.32

EXHIBIT A

STERLING BANCORP

2014 STOCK INCENTIVE PLAN

PERFORMANCE-BASED STOCK AWARD NOTICE

General Terms and Conditions

Section 1.     Size and Type of Award. The shares of Common Stock (the “Shares”) of Sterling Bancorp (the “Company”) covered by this Award (“Awarded Shares”) are listed on the Performance-Based Stock Award Notice. This Performance-Based Stock Award Notice (this “Award Notice”) is subject to all of the terms and conditions of the Sterling Bancorp 2014 Stock Incentive Plan (“Plan”).

Unless otherwise specified by the Compensation Committee, your Awarded Shares as set forth on this Award Notice will be designated “Escrow,” registered in the name of the Recipient and held by the Compensation Committee, together with a stock power executed by the Recipient in favor of the Committee, on a pooled basis with other Awarded Shares. You may receive additional Shares, or forfeit Awarded Shares, as set forth in Section 2 below.

Your employment with the Company, Sterling National Bank, and/or any of their subsidiaries constitutes adequate consideration for the issuance of the Awarded Shares to you having a value at least equal to the par value of the Awarded Shares, but the vesting conditions described below will nevertheless determine your right to acquire unrestricted ownership of the Awarded Shares.

Section 2.     Vesting.

(a)     Vesting Conditions. There are conditions you must satisfy before your Performance-Based Stock Award will vest:

(i)     You must remain in the continuous service of the Company, Sterling National Bank and/or any of their subsidiaries through the Vesting Date shown in this Award Notice (“Service Conditions”).

(ii)     Any Performance Condition(s) specified in this Award Notice must be met as of the end of their respective Performance Measurement Period(s) as determined by the Compensation Committee on the basis of such evidence as it deems appropriate (“Performance Conditions”).

(iii)     Awarded Shares, as adjusted based on satisfaction of the Performance Conditions, will vest and become non-forfeitable on the Vesting Date.

As a general rule, if you have satisfied BOTH the Service Conditions and the Performance Conditions, your right to the Awarded Shares will be non-forfeitable.

(b)     Vesting Date. The Vesting Date for your Awarded Shares, as adjusted, is specified on this Award Notice. On the Vesting Date, you will obtain unrestricted ownership of the Awarded Shares, as adjusted, that vest on that Vesting Date. A stock certificate evidencing unrestricted ownership will be transferred to you.

(c)     Forfeitures. If you terminate service with the Company, Sterling National Bank and/or any of their subsidiaries prior to a Vesting Date, you will forfeit any Awarded Shares that are scheduled to vest on that date. If you remain in continuous service with the Company, Sterling National Bank and/or any of their subsidiaries through the applicable Vesting Date but one or more of the applicable Performance Conditions are not satisfied, you will forfeit any Awarded Shares the vesting of which depended on satisfaction of the unsatisfied Performance Condition(s). When you forfeit Awarded Shares, all of your interest in the Awarded Shares will be canceled and any stock certificate or other evidence of ownership must be returned to the Company. You agree to take any action and execute and deliver any document that the Company requests to effect the return of your unvested Awarded Shares. In the event you do not cooperate with the Company in this regard, you hereby appoint and designate the Company as your attorney-in-fact for the purpose of taking any action and signing any document, in your name, which the Company determines is necessary to enforce the forfeiture.

(d)     Death, Disability or Retirement. In the event your service terminates due to death, Disability or Retirement, you will receive a pro-rated portion of the Awarded Shares at the end of the Performance Measurement Period. The pro-rated portion will be determined by calculating the total number of Awarded Shares you would have received if your employment had not terminated prior to the end of the Performance Measurement Period, and multiplying that number by a fraction, the numerator of which is the number of full and partial months of employment that you completed after the Award Date, and the denominator of which is the number of full and partial months between the Award Date and the end of the Performance Measurement Period.

To qualify for Retirement, you must enter into a retirement agreement with the Company, Sterling National Bank or any of their subsidiaries in a form approved by the Compensation Committee, within the Compensation Committee’s discretion, and under which you agree, for a period of two (2) years, to provide consulting services to the Company, Sterling National Bank and/or any of their

52720073v2

Page 1 of 3

subsidiaries (as specified in Section 2.46 of the Plan) and to refrain from competing with or soliciting employees and customers of the Company, Sterling National Bank or any of their subsidiaries.

(e)     Accelerated Vesting. Upon a Change in Control, the Awarded Shares will vest on an accelerated basis and any Performance Condition for which the Performance Measurement Period has not ended will be deemed satisfied (or will be deemed achieved at target if more than one level of performance is provided for). In such event, you will receive a pro-rated portion of the Awarded Shares at the time of the Change of Control determined by calculating the total number of Awarded Shares you would have received upon satisfaction of the Performance Condition and multiplying that number by a fraction, the numerator of which is the number of full and partial months of employment that you completed after the Award Date, and the denominator of which is the number of full and partial months between the Award Date and the date of the Change in Control.

(f)     Definition of Service. For purposes of determining the vesting of your Awarded Shares, you will be deemed to be in the service of the Company, Sterling National Bank and/or any of their subsidiaries for so long as you serve in any capacity as an employee, officer, non-employee director or consultant of the Company, Sterling National Bank and/or any of their subsidiaries.

(g) Application of Clawback Policy. Notwithstanding anything in this Award Notice to the contrary, the Awarded Shares and any related dividends shall be subject to adjustment and/or recovery, in whole or in part, following the date on which they become vested and payable if and to the extent (i) required by any applicable law, rule or regulation or (ii) provided under the terms of any clawback policy or other policy of similar import adopted by the Company and in effect on the date the Awarded Shares or dividends, as applicable, become vested and payable.

Section 3.     Dividends. Dividends or distributions paid on Awarded Shares, whether or not in cash, will not be paid to you currently. Instead, they will be vested, accumulated and paid to you if, as and when the related Awarded Shares become vested and will be subject to the same Service Conditions and Performance Conditions as the Awarded Shares.

Section 4.     Voting and Tender Rights. You will not have the right to vote, or direct the voting of, Awarded Shares, or the right to respond, or direct the response with respect to Awarded Shares to any tender offer, exchange offer or other offer made to the holder of Shares, unless and until the applicable Service Conditions and Performance Conditions have been satisfied and ownership of record of the Awarded Shares has been transferred to you.

Section 5.    No Right to Continued Service. Nothing in this Award Notice, or any action of the Board or Compensation Committee with respect to this Award Notice, shall be held or construed to confer upon you any right to a continuation of service by the Company, Sterling National Bank, or any of their subsidiaries. You may be dismissed or otherwise dealt with as though this Award Notice had not been entered into.

Section 6.    Taxes. Where any person is entitled to receive Shares pursuant to the Award granted hereunder, the Company shall have the right to require such person to pay to the Company the amount of any tax which the Company is required to withhold with respect to such Shares, or, in lieu thereof, to retain, or to sell without notice, a sufficient number of Shares to cover the amount required to be withheld.

Section 7.    Notices. Any communication required or permitted to be given under the Plan, including any notice, direction, designation, comment, instruction, objection or waiver, shall be in writing and shall be deemed to have been given at such time as it is delivered personally or five (5) days after mailing if mailed, postage prepaid, by registered or certified mail, return receipt requested, addressed to such party at the address listed below, or at such other address as one such party may by written notice specify to the other party:

If to the Recipient, to the Recipient's address as shown in the Company's records.

If to the Compensation Committee:

Sterling Bancorp
c/o Sterling National Bank
400 Rella Blvd.
Montebello, New York
Attention: Compensation Committee and Corporate Secretary

Section 8.    Restrictions on Transfer. The Performance-Based Stock Award granted hereunder shall not be subject in any manner to anticipation, alienation or assignment, nor shall such award be liable for or subject to debts, contracts, liabilities, engagements or torts, nor shall it be transferable by the Recipient other than by will or by the laws of descent and distribution or as otherwise permitted by the Plan. To name a Beneficiary, complete the attached Appendix A and file it with the Corporate Secretary of the Company.

Section 9.    Successors and Assigns. This Award Notice shall inure to the benefit of and shall be binding upon the Company and the Recipient and their respective heirs, successors and assigns.

Page 2 of 3

Section 10.    Construction of Language. Whenever appropriate in this Award Notice, words used in the singular may be read in the plural, words used in the plural may be read in the singular, and words importing the masculine gender may be read as referring equally to the feminine or the neuter. Any reference to a section shall be a reference to a section of this Award Notice, unless the context clearly indicates otherwise. Capitalized terms not specifically defined herein shall have the meanings assigned to them under the Plan.

Section 11.    Governing Law. This Award Notice shall be construed, administered and enforced according to the laws of the State of New York without giving effect to the conflict of law principles thereof, except to the extent that such laws are preempted by federal law. The federal and state courts having jurisdiction in Rockland County, New York shall have exclusive jurisdiction over any claim, action, complaint or lawsuit brought under the terms of the Plan. By accepting any Award granted under this Award Notice, the Recipient, and any other person claiming any rights under this Award Notice, agrees to submit himself or herself, and any such legal action as he or she shall bring under the Plan, to the sole jurisdiction of such courts for the adjudication and resolution of any such disputes.

Section 12.    Amendment. This Award may be amended, in whole or in part and in any manner not inconsistent with the provisions of the Plan, at any time and from time to time, by written agreement between the Company and the Recipient. This Award Notice amends and supersedes any Award Notice bearing the same effective date.

Section 13.    Plan Provisions Control. This Award Notice and the rights and obligations created hereunder shall be subject to all of the terms and conditions of the Plan that would apply if this Award Notice were being made under the Plan. In the event of any conflict between the provisions of the Plan and the provisions of this Award Notice, the terms of the Plan, which are incorporated herein by reference, shall control. By signing this Award Notice, the Recipient acknowledges receipt of a copy of the Plan. The Recipient acknowledges that he or she may not and will not rely on any statement of account or other communication or document issued in connection with the Award other than the Plan, this Award Notice, or any document signed by an authorized representative of the Company that is designated as an amendment of the Plan or this Award Notice.

Page 3 of 3

EXHIBIT 10.32

APPENDIX A TO PERFORMANCE-BASED STOCK AWARD NOTICE

Beneficiary Designation Form - Performance-Based Stock

GENERAL INFORMATION				Use this form to designate the Beneficiary(ies) who may receive Performance-Based Stock Awards that become vested at your death.
Name of Person Making Designation						Social Security Number ______—_____—__________
BENEFICIARY DESIGNATION			Complete sections A and B. If no percentage shares are specified, each Beneficiary in the same class (primary or contingent) shall have an equal share. If any designated Beneficiary predeceases you, the shares of each remaining Beneficiary in the same class (primary or contingent) shall be increased proportionately.
A PRIMARY BENEFICIARY(IES).  I hereby designate the following person as my primary Beneficiary under the Plan, reserving the right to change or revoke this designation at any time prior to my death:
Name					Address		Relationship	Birthdate	Share
									%
									%
									% Total = 100%
B CONTINGENT BENEFICIARY(IES).  I hereby designate the following person(s) as my contingent Beneficiary(ies) under the Plan to receive benefits only if all of my primary Beneficiaries should predecease me, reserving the right to change or revoke this designation at any time prior to my death as to all outstanding Awards:
Name					Address		Relationship	Birthdate	Share
									%
									%
									% Total = 100%
S I G N	H E R E	I understand that this Beneficiary Designation shall be effective only if properly completed and received by the Corporate Secretary of Sterling Bancorp prior to my death, and that it is subject to all of the terms and conditions of the Plan. I also understand that an effective Beneficiary designation revokes my prior designation(s) with respect to all outstanding Awards.          Your SignatureDate

---------------------------------------------------- Internal Use Only ------------------------------------------------------------

This Beneficiary Designation was received by the Corporate Secretary of Sterling Bancorp on the date indicated. By    Authorized Signature Date Comments

EXHIBIT 10.32

APPENDIX B TO PERFORMANCE-BASED STOCK AWARD NOTICE

[Insert Performance Vesting Conditions as determined by the Compensation Committee]

EX-21.0

Exhibit 21

Subsidiaries of the Registrant

The following is a list of the subsidiaries of the Registrant:

Name	State of Incorporation
STL Holdings, Inc.	New York
High Barney Road, LLC	New York
Provest Services Corp.	New York (inactive)
Provest Services Corp. I	New York
Provest Services Corp. II	New York
Sterling REIT, Inc.	New York
Warsave Development, Inc.	New York
Sterling Risk Management, Inc.	Vermont
HudSave Development, Inc.	New York
AllSave Development, LLC	New York
ProSave Development, Inc.	New York
Godfrey Road, LLC	New York
Sterling National Bank	U.S.A.
Sterling Factors Corporation	New York
Sterling National Mortgage Company, Inc.	New York
500 Commercial Holding Corp.	New York
10 Ben Holding Corp.	New York
143 Will Holding Corp	New York
682 Jam Holding Corp	New York
325 West Holding Corp.	New York

EX-23.0

EXHIBIT 23

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in Registration Statement Nos. 333-189098, 333-183663, 333-123089, 333-123079, 333-153276, 333-192036, and 333-197959 of Sterling Bancorp on Form S-8; Registration Statement No. 333-125855 of Sterling Bancorp on Form S-3D; and Registration Statement No. 333-179575 of Sterling Bancorp on Form S-3 of our report dated November 28, 2014, with respect to the consolidated financial statements of Sterling Bancorp, and the effectiveness of internal control over financial reporting, which report appears in this Annual Report on Form 10-K of Sterling Bancorp for the year ended September 30, 2014.

                                                                                                                /s/ Crowe Horwath LLP

New York, New York

November 28, 2014

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 Annual Report on Form 10-K of Sterling 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:	November 28, 2014	By:	/s/ Jack Kopnisky
			Jack Kopnisky
			President, Chief Executive Officer and Director
			(Principal Executive Officer)

EX-31.2

Exhibit 31.2

Certification of Principal Financial Officer

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

I, Luis Massiani, certify that:

1. I have reviewed this Annual Report on Form 10-K of Sterling 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:	November 28, 2014	By:	/s/ Luis Massiani
			Luis Massiani
			Executive Vice President
			Chief Financial Officer
			Principal Accounting Officer
			(Principal Financial Officer)

EX-32.0

Exhibit 32

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 Sterling Bancorp (the “Company”) each certify in his capacity as an officer of the Company that he has reviewed the Annual report on Form 10-K for the year ended September 30, 2014 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:	November 28, 2014	By:	/s/ Jack Kopnisky
			Jack Kopnisky
			President, Chief Executive Officer and Director
			(Principal Executive Officer)

Date:	November 28, 2014	By:	/s/ Luis Massiani
			Luis Massiani
			Executive Vice President
			Chief Financial Officer
			Principal Accounting Officer
			(Principal Financial Officer)

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

XML

Derivatives (Tables)

12 Months Ended

Sep. 30, 2014

Derivative Instruments and Hedges, Assets [Abstract]

Summary of derivatives

Summary information as of September 30, 2014 and 2013 regarding these derivatives is presented below:

	Notional amount			Average maturity (in years)	Weighted average fixed rate		Weighted average variable rate	Fair value
September 30, 2014
Interest rate caps	$	50,000		0.18	3.75	%	NA	$	—
3rd party interest rate swap	50,729			4.86	4.20		1 m Libor + 2.44	1,096
Customer interest rate swap	(50,729		)	4.86	4.20		1 m Libor + 2.44	(1,096		)
September 30, 2013
Interest rate caps	$	50,000		1.18	3.75	%	NA	$	—
3rd party interest rate swap	54,180			5.76	4.22		1 m Libor + 2.45	997
Customer interest rate swap	(54,180		)	5.76	4.22		1 m Libor + 2.45	(997		)

XML

Fair Value Measurements (Details 3) (USD $) In Thousands, unless otherwise specified										12 Months Ended									12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014 Significant Unobservable Inputs Level 3 [Member]	Sep. 30, 2013 Significant Unobservable Inputs Level 3 [Member]	Sep. 30, 2014 Market Approach Valuation Technique [Member] Fair Value, Measurements, Nonrecurring [Member] Real estate-commercial mortgage [Member] Significant Unobservable Inputs Level 3 [Member]	Sep. 30, 2014 Impaired [Member] Fair Value, Measurements, Nonrecurring [Member] Significant Unobservable Inputs Level 3 [Member]	Sep. 30, 2013 Impaired [Member] Fair Value, Measurements, Nonrecurring [Member] Significant Unobservable Inputs Level 3 [Member]	Sep. 30, 2014 Impaired [Member] Market Approach Valuation Technique [Member] Fair Value, Measurements, Nonrecurring [Member] Real estate-commercial mortgage [Member] Significant Unobservable Inputs Level 3 [Member]	Sep. 30, 2014 Impaired [Member] Market Approach Valuation Technique [Member] Fair Value, Measurements, Nonrecurring [Member] Acquisition development and construction [Member] Significant Unobservable Inputs Level 3 [Member]	Sep. 30, 2014 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]	Sep. 30, 2014 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]	Sep. 30, 2014 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]	Sep. 30, 2014 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]	Sep. 30, 2014 Impaired [Member] Weighted Average [Member] Market Approach Valuation Technique [Member] Fair Value, Measurements, Nonrecurring [Member] Real estate-commercial mortgage [Member] Significant Unobservable Inputs Level 3 [Member]	Sep. 30, 2014 Impaired [Member] Weighted Average [Member] Market Approach Valuation Technique [Member] Fair Value, Measurements, Nonrecurring [Member] Acquisition development and construction [Member] Significant Unobservable Inputs Level 3 [Member]	Sep. 30, 2014 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]	Sep. 30, 2014 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]	Sep. 30, 2014 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]	Sep. 30, 2014 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]	Sep. 30, 2014 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]	Sep. 30, 2014 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]	Sep. 30, 2014 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	Sep. 30, 2014 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]	Sep. 30, 2014 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]	Sep. 30, 2014 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]	Sep. 30, 2014 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	Sep. 30, 2014 Taken in Foreclosure [Member] Weighted Average [Member] Market Approach Valuation Technique [Member] Fair Value, Measurements, Nonrecurring [Member] Real estate-commercial mortgage [Member] Significant Unobservable Inputs Level 3 [Member]	Sep. 30, 2014 Taken in Foreclosure [Member] Weighted Average [Member] Market Approach Valuation Technique [Member] Fair Value, Measurements, Nonrecurring [Member] Real estate-residential mortgage [Member] Significant Unobservable Inputs Level 3 [Member]	Sep. 30, 2014 Taken in Foreclosure [Member] Weighted Average [Member] Market Approach Valuation Technique [Member] Fair Value, Measurements, Nonrecurring [Member] Acquisition development and construction [Member] Significant Unobservable Inputs Level 3 [Member]	Sep. 30, 2014 Taken in Foreclosure [Member] Weighted Average [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			$ 4,758,366	$ 2,422,824	$ 2,396	$ 3,636	$ 6,013	$ 1,463	$ 2,173							$ 1,910	$ 1,301	$ 1,973
Mortgage servicing rights	$ 1,526	$ 1,978
Comparability adjustments										15.00%	10.00%	36.00%	30.00%	22.00%	13.50%
Management adjustments																			20.00%	16.00%	25.00%		37.00%	59.00%	70.00%		24.80%	21.60%	30.20%
Discount rates																						9.30%				12.80%
Prepayment speed																						100				968				224

XML

Basis of Financial Statement Presentation and Summary of Significant Accounting Policies Other Intangible Assets (Details)	12 Months Ended
	Sep. 30, 2014
Naming Rights [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated useful life	10 years
Minimum [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated useful life	1 year
Minimum [Member] | Core Deposits [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired intangible assets, weighted average useful life	8 years
Maximum [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated useful life	10 years
Maximum [Member] | Core Deposits [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired intangible assets, weighted average useful life	10 years

XML

Accumulated Other Comprehensive (Loss) Income (Tables)

12 Months Ended

Sep. 30, 2014

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

Components of accumulated other comprehensive income (loss) (“AOCI”) were as follows at September 30:

	September 30,
	2014			2013
Net unrealized holding loss on available for sale securities	$	(4,645	)	$	(19,316	)
Related income tax benefit	1,974			7,844
Available for sale securities AOCI, net of tax	(2,671		)	(11,472		)
Net unrealized holding loss on securities transferred to held to maturity	(8,947		)	—
Related income tax benefit	3,803			—
Securities transferred to held to maturity AOCI, net of tax	(5,144		)	—
Net unrealized holding loss on retirement plans	(6,336		)	(6,496		)
Related income tax benefit	2,692			2,638
Retirement plan AOCI, net of tax	(3,644		)	(3,858		)
Accumulated other comprehensive loss	$	(11,459	)	$	(15,330	)

The following table presents the changes in each component of accumulated other comprehensive income for the fiscal years ended September 30, 2014, 2013 and 2012:

	Net unrealized holding gain (loss) on AFS securities			Net unrealized holding (loss) on securities transferred to held to maturity			Net unrealized holding gain (loss) on retirement plans			Total
Fiscal year ended September 30, 2014
Balance beginning of the year	$	(11,472	)	$	—		$	(3,858	)	$	(15,330	)
Other comprehensive gain (loss) before reclassification	9,170			(5,144		)	—			4,026
Amounts reclassified from AOCI	(369		)	—			214			(155		)
Total other comprehensive income (loss)	8,801			(5,144		)	214			3,871
Balance at end of period	$	(2,671	)	$	(5,144	)	$	(3,644	)	$	(11,459	)
Fiscal year ended September 30, 2013
Balance beginning of the year	$	15,066		$	—		$	(8,167	)	$	6,899
Other comprehensive (loss) gain before reclassification	(22,167		)	—			3,041			(19,126		)
Amounts reclassified from AOCI	(4,371		)	—			1,268			(3,103		)
Total other comprehensive (loss) income	(26,538		)	—			4,309			(22,229		)
Balance at end of period	$	(11,472	)	$	—		$	(3,858	)	$	(15,330	)
Fiscal year ended September 30, 2012
Balance beginning of the year	$	13,604		$	—		$	(8,468	)	$	5,136
Other comprehensive gain before reclassification	7,640			—			—			7,640
Amounts reclassified from AOCI	(6,178		)	—			301			(5,877		)
Total other comprehensive income	1,462			$	—		301			1,763
Balance at end of period	$	15,066		$	—		$	(8,167	)	$	6,899

XML

Subsequent Events (Details) (USD $)			12 Months Ended	0 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014 Hudson Valley Holding Corp [Member]	Nov. 05, 2014 Subsequent Event [Member] Hudson Valley Holding Corp [Member]	Nov. 05, 2014 Subsequent Event [Member] Hudson Valley Holding Corp [Member]
Subsequent Event [Line Items]
Consideration paid				$ 539,234
Number of shares each shareholder received from merger				1.92
Ownership percentage (percent)					69.00%
Hudson Valley Holding Corp ownership percentage (percent)					31.00%
Pro forma revenue			363,217
Net income			21,962
Total assets	7,337,387,000	4,049,172,000			10,703,764
Gross loans	4,760,438,000	2,412,898,000			6,551,482
Deposits	$ 5,298,654,000	$ 2,962,294,000			$ 8,071,799

XML

Loans (Details 4) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
With no related allowance recorded:
Unpaid principal balance with no related allowance recorded	$ 37,254	$ 33,112
Recorded investment with no related allowance recorded	36,208	32,411
With an allowance recorded:
Unpaid principal balance with an allowance recorded	0	6,405
Recorded investment with an allowance recorded	0	4,410
Allowance for loan losses allocated with an allowance recorded	0	1,593
Unpaid principal balance, total	37,254	39,517
Recorded investment total	36,208	36,821
Allowance for loan losses allocated, total	0	1,593
Commercial & industrial
With no related allowance recorded:
Unpaid principal balance with no related allowance recorded	4,177	2,175
Recorded investment with no related allowance recorded	4,177	2,131
With an allowance recorded:
Unpaid principal balance with an allowance recorded	0	500
Recorded investment with an allowance recorded	0	500
Allowance for loan losses allocated with an allowance recorded	0	249
Commercial real estate
With no related allowance recorded:
Unpaid principal balance with no related allowance recorded	13,886	12,451
Recorded investment with no related allowance recorded	13,750	11,820
With an allowance recorded:
Unpaid principal balance with an allowance recorded	0	3,150
Recorded investment with an allowance recorded	0	2,271
Allowance for loan losses allocated with an allowance recorded	0	803
Acquisition, development & construction
With no related allowance recorded:
Unpaid principal balance with no related allowance recorded	18,676	17,971
Recorded investment with no related allowance recorded	17,766	17,945
With an allowance recorded:
Unpaid principal balance with an allowance recorded	0	2,753
Recorded investment with an allowance recorded	0	1,637
Allowance for loan losses allocated with an allowance recorded	0	540
Residential mortgage
With no related allowance recorded:
Unpaid principal balance with no related allowance recorded	515	515
Recorded investment with no related allowance recorded	515	515
Consumer
With an allowance recorded:
Unpaid principal balance with an allowance recorded	0	2
Recorded investment with an allowance recorded	0	2
Allowance for loan losses allocated with an allowance recorded	$ 0	$ 1

XML

Acquisitions (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012	Oct. 31, 2013 Purchased credit impaired loans	Oct. 31, 2013 Book Value [Member] Purchased credit impaired loans	Oct. 31, 2013 Fair Value Adjustment [Member] Purchased credit impaired loans		Oct. 31, 2013 Core Deposits [Member] Purchased credit impaired loans	Oct. 31, 2013 Core Deposits [Member] Book Value [Member] Purchased credit impaired loans	Oct. 31, 2013 Core Deposits [Member] Fair Value Adjustment [Member] Purchased credit impaired loans		Oct. 31, 2013 Trade Names [Member] Purchased credit impaired loans	Oct. 31, 2013 Trade Names [Member] Book Value [Member] Purchased credit impaired loans	Oct. 31, 2013 Trade Names [Member] Fair Value Adjustment [Member] Purchased credit impaired loans
Business Acquisition [Line Items]
Cash and cash equivalents				$ 277,798	$ 277,798	$ 0
Investment securities				607,911	613,154	(5,243)	[1]
Loans held for sale				30,341	30,341	0
Loans				1,698,108	1,704,801	(6,693)	[2]
Federal Reserve Bank stock				7,680	7,680	0
Bank owned life insurance				55,374	55,374	0
Premises and equipment				23,594	21,293	2,301	[3]
Accrued interest receivable				6,590	6,590	0
Core deposit intangible								20,089	0	20,089	[4]	20,500	0	20,500	[5]
Other real estate owned				5,815	1,720	4,095	[6]
Other assets				20,933	40,877	(19,944)	[7]
Deposits				(2,297,190)	(2,296,713)	(477)	[8]
FHLB borrowings				(100,619)	(100,346)	(273)	[9]
Other borrowings				(62,465)	(62,465)	0
Subordinated Debentures				(26,527)	(25,774)	(753)	[10]
Other liabilities				(55,960)	(60,462)	4,502	[11]
Total identifiable net assets	130			231,972	213,868	18,104
Goodwill	$ 388,926	$ 163,117	$ 163,247	$ 225,809

[1] Represents the fair value adjustment on investment securities held to maturity.

[2] Represents the elimination of Legacy Sterling’s allowance for loan losses and an adjustment of the amortized cost of loans to estimated fair value, which includes an interest rate mark and credit mark. Gross loans acquired were $1,723,447; of the acquired loans, $1,699,271 were not considered purchased credit impaired and we recorded a fair value adjustment of $14,440.

[3] Represents an adjustment to reflect the fair value of leasehold improvements.

[4] Represents intangible assets recorded to reflect the fair value of core deposits and below market rent on leased premises. The core deposit asset was recorded as an identifiable intangible asset and will be amortized on an accelerated basis over the estimated average life of the deposit base. The below market rent intangible asset will be amortized on a straight-line basis over the remaining term of the leases.

[5] Represents the estimated fair value of Legacy Sterling’s trade name. This intangible asset will not be amortized and will be reviewed at least annually for impairment.

[6] Represents an adjustment to an acquired property which Legacy Sterling utilized as a financial center and recorded as premises and equipment. The Company included this asset in OREO as it was held for sale. This asset was sold during the fiscal year ended September 30, 2014.

[7] Consists primarily of adjustments in net deferred tax assets resulting from the fair value adjustments related to the acquired assets, liabilities assumed and identifiable intangibles recorded.

[8] Represents the fair value adjustment on deposits as the weighted average interest rate of deposits assumed exceeded the cost of similar funding available in the market at the time of the Merger.

[9] Represents the fair value adjustment on FHLB borrowings as the weighted average interest rate of FHLB borrowings assumed exceeded the cost of similar funding available in the market at the time of the Merger.

[10] Represents the fair value adjustment on subordinated debentures as the weighted average interest rate of the debentures assumed exceeded the cost of similar debt funding available in the market at the time of the Merger.

[11] Represents the fair value of other liabilities assumed at the Merger date

XML

Goodwill and Other Intangible Assets (Details 2) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Finite-Lived Intangible Assets [Line Items]
Gross intangible assets	$ 58,129	$ 7,232
Accumulated amortization	(12,851)	(1,341)
Net intangible assets	45,278	5,891
Amortization of intangible assets	9,408	1,296	1,245
Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	1 year
Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	10 years
Core Deposits [Member]
Finite-Lived Intangible Assets [Line Items]
Gross intangible assets	24,182	4,818
Accumulated amortization	(4,694)	(798)
Net intangible assets	19,488	4,020
Amortization of intangible assets	9,408
Noncompete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Gross intangible assets	10,308
Accumulated amortization	(5,490)
Net intangible assets	4,818
Amortization of intangible assets	1,296
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Gross intangible assets	20,500
Accumulated amortization	0
Net intangible assets	20,500
Fair Value of Below Market Leases [Member]
Finite-Lived Intangible Assets [Line Items]
Gross intangible assets	725
Accumulated amortization	(253)
Net intangible assets	472
Provident Bank Ball Park Naming Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Gross intangible assets	2,414	2,414
Accumulated amortization	(2,414)	(543)
Net intangible assets	0	1,871
Estimated useful life	10 years
Amortization of intangible assets	$ 1,245

XML

Stockholders' Equity - Compliance with Regulatory Capital Requirements (Schedule) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Sterling Bancorp [Member]
Tier 1 capital (to risk-weighted assets):
Tier 1 risk-based capital	$ 553,117
Total capital (to risk-weighted assets):
Total risk-based capital	594,124
Sterling National Bank [Member]
Tier 1 leverage capital (to average assets):
Tier 1 (core) capital	636,507	363,274
Tier 1 (core) capital ratio	9.34%	9.33%
Tier 1 (core) capital required for minimum capital adequacy	272,542	155,670
Tier 1 (core) capital required for minimum capital adequacy ratio	4.00%	4.00%
Tier 1 (core) capital required to be well capitalized	340,677	194,587
Tier 1 (core) capital required to be well capitalized ratio	5.00%	5.00%
Tier 1 capital (to risk-weighted assets):
Tier 1 risk-based capital	636,507	363,274
Tier 1 risk-based capital ratio	11.94%	13.18%
Tier 1 risk-based capital required for minimum capital adequacy	213,176	110,235
Tier 1 risk-based capital required for minimum capital adequacy ratio	4.00%	4.00%
Tier 1 risk-based capital required to be well capitalized	319,763	165,352
Tier 1 risk-based capital required to be well capitalized ratio	6.00%	6.00%
Total capital (to risk-weighted assets):
Total risk-based capital	677,514	392,376
Total risk-based capital ratio	12.71%	14.24%
Total risk-based capital required for minimum capital adequacy	426,351	220,469
Total risk-based capital required for minimum capital adequacy ratio	8.00%	8.00%
Total risk-based capital required to be well capitalized	532,939	275,587
Total risk-based capital required to be well capitalized ratio	10.00%	10.00%
Sterling Bancorp [Member]
Tier 1 leverage capital (to average assets):
Tier 1 (core) capital	553,117
Tier 1 (core) capital ratio	8.12%
Tier 1 (core) capital required for minimum capital adequacy	272,385
Tier 1 (core) capital required for minimum capital adequacy ratio	4.00%
Tier 1 (core) capital required to be well capitalized	340,481
Tier 1 (core) capital required to be well capitalized ratio	5.00%
Tier 1 capital (to risk-weighted assets):
Tier 1 risk-based capital	553,117
Tier 1 risk-based capital ratio	10.33%
Tier 1 risk-based capital required for minimum capital adequacy	214,102
Tier 1 risk-based capital required for minimum capital adequacy ratio	4.00%
Tier 1 risk-based capital required to be well capitalized	321,153
Tier 1 risk-based capital required to be well capitalized ratio	6.00%
Total capital (to risk-weighted assets):
Total risk-based capital	594,124
Total risk-based capital ratio	11.10%
Total risk-based capital required for minimum capital adequacy	428,204
Total risk-based capital required for minimum capital adequacy ratio	8.00001%
Total risk-based capital required to be well capitalized	$ 535,254
Total risk-based capital required to be well capitalized ratio	10.00%

XML

Commitment and Contingencies (Tables)

12 Months Ended

Sep. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases

Future minimum rental payments due under non-cancellable operating leases with initial or remaining terms of more than one year at September 30, 2014 were as follows:

2014	$	8,984
2015	8,517
2016	7,690
2017	7,702
2018	6,386
2019 and thereafter	27,012
	$	66,291

XML

Securities (Tables)

12 Months Ended

Sep. 30, 2014

Investments, Debt and Equity Securities [Abstract]

Summary of securities available for sale

	September 30, 2014									September 30, 2013
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value		Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
Available for Sale
Residential MBS:
Agency-backed	$	477,003	$	2,257	$	(1,555	)	$	477,705	$	284,837	$	1,849	$	(4,157	)	$	282,529
CMO/Other MBS	115,395		242		(1,492		)	114,145		169,336		356		(3,038		)	166,654
Total residential MBS	592,398		2,499		(3,047		)	591,850		454,173		2,205		(7,195		)	449,183
Other securities:
Federal agencies	158,114		3		(5,303		)	152,814		273,637		—		(12,090		)	261,547
Corporate	195,547		149		(2,857		)	192,839		118,575		153		(3,795		)	114,933
State and municipal	131,715		3,439		(256		)	134,898		127,324		3,447		(2,041		)	128,730
Trust preferred	37,684		766		(38		)	38,412		—		—		—			—
Total other securities	523,060		4,357		(8,454		)	518,963		519,536		3,600		(17,926		)	505,210
Total available for sale	$	1,115,458	$	6,856	$	(11,501	)	$	1,110,813	$	973,709	$	5,805	$	(25,121	)	$	954,393

Summary of securities held-to-maturity

	September 30, 2014									September 30, 2013
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value		Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
Held to Maturity
Residential MBS:
Agency-backed	$	142,329	$	1,360	$	(103	)	143,586		130,371		716		(108		)	130,979
CMO/Other MBS	62,690		9		(1,204		)	61,495		25,776		33		(315		)	25,494
Total residential MBS	205,019		1,369		(1,307		)	205,081		156,147		749		(423		)	156,473
Other securities:
Federal agencies	136,413		2,634		(962		)	138,085		77,341		—		(3,458		)	73,883
State and municipal	232,643		6,814		(123		)	239,334		19,011		556		(546		)	19,021
Other	5,000		338		—			5,338		1,500		19		—			1,519
Total other securities	374,056		9,786		(1,085		)	382,757		97,852		575		(4,004		)	94,423
Total held to maturity	$	579,075	$	11,155	$	(2,392	)	$	587,838	$	253,999	$	1,324	$	(4,427	)	$	250,896

Summary of amortized cost and fair value of investment securities available for sale by remaining period to contractual maturity

	September 30, 2014
	Available for sale				Held to maturity
	Amortized cost		Fair value		Amortized cost		Fair value
Other securities remaining period to contractual maturity:
One year or less	$	2,100	$	2,112	$	8,847	$	8,897
One to five years	141,508		141,748		9,138		9,624
Five to ten years	334,295		328,902		189,494		192,109
Greater than ten years	45,157		46,201		166,577		172,127
Total other securities	523,060		518,963		374,056		382,757
Residential MBS	592,398		591,850		205,019		205,081
Total securities	$	1,115,458	$	1,110,813	$	579,075	$	587,838

Sale of securities

Sales of securities for the periods indicated below were as follows:

	For the fiscal year ended September 30,
	2014			2013			2012
Available for sale:
Proceeds from sales	$	529,107		$	339,123		$	344,431
Gross realized gains	1,964			7,709			10,468
Gross realized losses	(1,323		)	(377		)	—
Income tax expense on realized net gains	172			2,282			2,475
Held to maturity: (1)
Proceeds from sales	$	—		$	1,187		$	—
Gross realized gains	—			59			—
Income tax expense on realized gains	—			18			—

⁽¹⁾ During the fiscal year ended September 30, 2013, the Company sold held to maturity securities after the Company had already collected at least 85% of the principal balance outstanding at acquisition.

Securities available for sale with unrealized losses, by length of time in continuous unrealized loss position

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

	Continuous unrealized loss position
	Less than 12 months					12 months or longer					Total
	Fair value		Unrealized losses			Fair value		Unrealized losses			Fair value		Unrealized losses
Available for sale
September 30, 2014
Residential MBS:
Agency-backed	$	137,693	$	(516	)	$	41,516	$	(1,039	)	$	179,209	$	(1,555	)
CMO/other MBS	62,507		(446		)	29,499		(1,046		)	92,006		(1,492		)
Total residential MBS	200,200		(962		)	71,015		(2,085		)	271,215		(3,047		)
Other securities:
Federal agencies	6,153		(144		)	146,416		(5,159		)	152,569		(5,303		)
Corporate	97,833		(1,348		)	66,440		(1,509		)	164,273		(2,857		)
State and municipal	8,170		(58		)	12,809		(198		)	20,979		(256		)
Trust preferred	3,907		(38		)	—		—			3,907		(38		)
Total other securities	116,063		(1,588		)	225,665		(6,866		)	341,728		(8,454		)
Total	$	316,263	$	(2,550	)	$	296,680	$	(8,951	)	$	612,943	$	(11,501	)
September 30, 2013
Residential MBS:
Agency-backed	$	137,265	$	(4,157	)	$	—	$	—		$	137,265	$	(4,157	)
CMO/Other MBS	122,324		(2,742		)	7,820		(296		)	130,144		(3,038		)
Total residential MBS	259,589		(6,899		)	7,820		(296		)	267,409		(7,195		)
Other securities:
Federal agencies	261,547		(12,090		)	—		—			261,547		(12,090		)
State and municipal	43,585		(2,033		)	112		(8		)	43,697		(2,041		)
Corporate	95,013		(3,795		)	—		—			95,013		(3,795		)
Total other securities	400,145		(17,918		)	112		(8		)	400,257		(17,926		)
Total	$	659,734	$	(24,817	)	$	7,932	$	(304	)	$	667,666	$	(25,121	)

Securities held to maturity with unrealized losses, by length of time in continuous unrealized loss position

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

	Continuous unrealized loss position
	Less than 12 months					12 months or longer					Total
	Fair value		Unrealized losses			Fair value		Unrealized losses			Fair value		Unrealized losses
Held to maturity
September 30, 2014
Residential MBS:
Agency-backed	$	20,616	$	(103	)	$	—	$	—		$	20,616	$	(103	)
CMO/Other MBS	14,928		(368		)	42,646		(836		)	57,574		(1,204		)
Total residential MBS	35,544		(471		)	42,646		(836		)	78,190		(1,307		)
Other securities:
Federal agencies	23,756		(62		)	24,101		(900		)	47,857		(962		)
State and municipal	13,943		(100		)	1,479		(23		)	15,422		(123		)
Total other securities	37,699		(162		)	25,580		(923		)	63,279		(1,085		)
Total	$	73,243	$	(633	)	$	68,226	$	(1,759	)	$	141,469	$	(2,392	)
September 30, 2013
Residential MBS:
Agency-backed	$	10,963	$	(86	)	$	—	$	—		$	10,963	$	(86	)
CMO/Other MBS	31,412		(337		)	—		—			31,412		(337		)
Total residential MBS	42,375		(423		)	—		—			42,375		(423		)
Other securities:
Federal agencies	73,883		(3,458		)	—		—			73,883		(3,458		)
State and municipal	9,530		(546		)	—		—			9,530		(546		)
Total other securities	83,413		(4,004		)	—		—			83,413		(4,004		)
Total	$	125,788	$	(4,427	)	$	—	$	—		$	125,788	$	(4,427	)

Securities pledged for borrowings at FHLB and other institutions, and securities pledged for municipal deposits and other purposes

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

	September 30,
	2014		2013
Available for sale securities pledged for borrowings, at fair value	$	268,316	$	199,642
Available for sale securities pledged for municipal deposits, at fair value	532,770		580,756
Available for sale securities pledged for customer back-to-back swaps, at fair value	1,934		4,645
Held to maturity securities pledged for borrowings, at amortized cost	58,509		55,497
Held to maturity securities pledged for municipal deposits, at amortized cost	430,611		167,926
Total securities pledged	$	1,292,140	$	1,008,466

XML

Goodwill and Other Intangible Assets (Details 3) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
2015	$ 6,113
2016	5,042
2017	2,598
2018	2,178
2019	2,058
Thereafter	6,786
Intangible assets	$ 24,775

XML

Condensed Parent Company Financial Statements - Statements of Income (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Condensed Financial Statements, Captions [Line Items]
Other									$ 3,080	$ 1,998	$ 2,050
Interest expense	(7,476)	(7,310)	(7,297)	(6,835)	(5,795)	(4,276)	(4,601)	(5,222)	(28,918)	(19,894)	(18,573)
Non-interest expense	(43,780)	(44,904)	(46,723)	(72,974)	(23,367)	(21,789)	(23,339)	(22,546)	(208,428)	(91,041)	(91,957)
Income tax benefit	(6,452)	(6,057)	(4,588)	6,948	(3,312)	(2,833)	(2,203)	(3,066)	(10,152)	(11,414)	(6,159)
Net income	16,337	15,011	10,332	(14,002)	5,329	6,376	6,529	7,020	27,678	25,254	19,888
Sterling Bancorp [Member]
Condensed Financial Statements, Captions [Line Items]
Interest income									139	262	282
Dividend income on equity securities									0	22	30
Other									18	0	10
Interest expense									(6,265)	(1,431)	0
Non-interest expense									(5,841)	(2,700)	(1,838)
Income tax benefit									3,431	898	87
Income (loss) before equity in undistributed earnings of subsidiaries									14,732	(1,349)	5,071
Net income									27,677	25,254	19,888
Sterling National Bank [Member] | Sterling Bancorp [Member]
Condensed Financial Statements, Captions [Line Items]
Dividend income from subsidiaries									22,500	0	6,000
Equity in undistributed (excess distributed) earnings									12,590	27,174	13,739
Non-bank Subsidiaries[Member] | Sterling Bancorp [Member]
Condensed Financial Statements, Captions [Line Items]
Dividend income from subsidiaries									750	1,600	500
Equity in undistributed (excess distributed) earnings									$ 355	$ (571)	$ 1,078

XML

Loans (Details 7) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2014 loan	Sep. 30, 2013 loan	Sep. 30, 2012 loan
Financing Receivable, Modifications [Line Items]
Number	2	21	12
Recorded investment, Pre-modification	$ 1,060	$ 12,193	$ 9,160
Recorded investment, Post-modification	1,060	12,129	8,945
Commercial & industrial
Financing Receivable, Modifications [Line Items]
Number	0	5
Recorded investment, Pre-modification	0	2,001
Recorded investment, Post-modification	0	2,001
Commercial real estate
Financing Receivable, Modifications [Line Items]
Number	0	2
Recorded investment, Pre-modification	0	2,682
Recorded investment, Post-modification	0	2,682
Acquisition, development & construction
Financing Receivable, Modifications [Line Items]
Number	2	7
Recorded investment, Pre-modification	1,060	5,772
Recorded investment, Post-modification	1,060	5,772
Residential mortgage
Financing Receivable, Modifications [Line Items]
Number	0	6
Recorded investment, Pre-modification	0	1,436
Recorded investment, Post-modification	0	1,372
Consumer
Financing Receivable, Modifications [Line Items]
Number	0	1
Recorded investment, Pre-modification	0	302
Recorded investment, Post-modification	$ 0	$ 302

XML

Employee Benefit Plans And Stock-Based Compensation Plans (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Pension Plans [Member]
Changes in projected benefit obligation:
Beginning of year	$ 31,705	$ 35,471
Obligations assumed from Legacy Sterling	52,296	0
Service cost	0	0	0
Interest cost	2,779	1,452	1,501
Actuarial loss (gain)	9,460	(3,672)
Partial settlement	(44,774)	0
Benefits and distributions paid	(1,748)	(1,546)
End of year	49,718	31,705	35,471
Changes in fair value of plan assets:
Beginning of year	35,417	32,657
Fair value of the Legacy Sterling Plan assets at October 31, 2013	71,538	0
Actual gain (loss) on plan assets	8,137	4,306
Employer contributions	0	0
Partial settlement	(44,774)	0
Benefits and distributions paid	(1,748)	(1,546)
End of year	68,570	35,417	32,657
Funded status at end of year	18,852	3,712
Other Post retirement Benefit Plans [Member]
Changes in projected benefit obligation:
Beginning of year	3,302	3,103
Obligations assumed from Legacy Sterling	9,644	0
Service cost	51	48	46
Interest cost	683	134	125
Actuarial loss (gain)	79	177
Amendments	(2,485)	0
Benefits and distributions paid	(284)	(160)
End of year	10,990	3,302	3,103
Changes in fair value of plan assets:
Beginning of year	0	0
Employer contributions	284	160
Plan participants' contributions	0	0
Benefits and distributions paid	(284)	(160)
End of year	0	0	0
Funded status at end of year	$ (10,990)	$ (3,302)

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Acquisitions (Details Textual) (USD $)	3 Months Ended	12 Months Ended				0 Months Ended	12 Months Ended			0 Months Ended				3 Months Ended	12 Months Ended
	Dec. 31, 2013	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012	Oct. 31, 2013	Oct. 31, 2013 Sterling Bancorp (Legacy)	Sep. 30, 2014 Sterling Bancorp (Legacy) Core Deposits [Member]	Oct. 31, 2013 Sterling Bancorp (Legacy) Core Deposits [Member]	Oct. 31, 2013 Sterling Bancorp (Legacy) Trade Names [Member]	Aug. 10, 2012 Gotham Bank of New York [Member]	Oct. 31, 2013 Book Value [Member] Sterling Bancorp (Legacy)	Oct. 31, 2013 Book Value [Member] Sterling Bancorp (Legacy) Core Deposits [Member]	Oct. 31, 2013 Book Value [Member] Sterling Bancorp (Legacy) Trade Names [Member]	Dec. 31, 2013 Assets Write-down, Retention, and Severance Costs [Member]	Sep. 30, 2014 Assets Write-down, Retention, and Severance Costs [Member] Sterling Bancorp (Legacy)	Sep. 30, 2014 Minimum [Member]	Sep. 30, 2014 Minimum [Member] Core Deposits [Member]	Sep. 30, 2014 Minimum [Member] Equipment [Member] Sterling Bancorp (Legacy)	Sep. 30, 2014 Maximum [Member]	Sep. 30, 2014 Maximum [Member] Core Deposits [Member]	Sep. 30, 2014 Maximum [Member] Equipment [Member] Sterling Bancorp (Legacy)
Business Acquisition [Line Items]
Number of shares each shareholder received from merger						1.2625
Common stock, par value (in dollars per share)		$ 0.01	$ 0.01		$ 0.01
Goodwill		$ 388,926,000	$ 163,117,000	$ 163,247,000		$ 225,809,000
Number of shares issued in merger						39,057,968
Share price of stock issued in merger (in dollars per share)						$ 11.72
Consideration paid through Sterling Bancorp common stock issued to Legacy Sterling shareholders						457,781,000
Cash paid for fractional shares						23,000
Consideration transferred for outstanding vested stock options						6,000
Intangibles								20,089,000	20,500,000			0	0
Book value of assets						2,759,628,000
Federal Home Loan Bank (FHLB) stock, at cost						1,735,142,000
Deposits						2,297,190,000					2,296,713,000
Acquired intangible assets, weighted average useful life							10 years										8 years			10 years
Premises and equipment, useful life																3 years		1 year	40 years		5 years
Merger related expense	9,100,000	9,455,000	2,772,000	5,925,000
Percentage of voting interests acquired										100.00%
Percentage of tangible net worth used for calculating cash payment										125.00%
Cash paid										40,510,000
Recognized charges														22,200,000	26,591,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Loans, Gross						1,723,447
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Loans, Not Purchased Credit Impaired						1,699,271
Assets, Fair Value Adjustment						$ 14,440

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Commitment and Contingencies (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Future minimum rental payments due under non-cancelable operating leases
2014	$ 8,984
2015	8,517
2016	7,690
2017	7,702
2018	6,386
2019 and thereafter	27,012
Future minimum rental payments	66,291
Rent expense	$ 7,893	$ 3,340	$ 2,952

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Premises And Equipment, Net (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Property, Plant and Equipment [Line Items]
Total premises and equipment, gross	$ 112,242	$ 86,140
Accumulated depreciation and amortization	(68,956)	(49,620)
Total premises and equipment, net	43,286	36,520
Land and Land Improvements [Member]
Property, Plant and Equipment [Line Items]
Total premises and equipment, gross	6,048	7,282
Buildings [Member]
Property, Plant and Equipment [Line Items]
Total premises and equipment, gross	22,888	30,558
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Total premises and equipment, gross	32,963	8,136
Furniture, Fixtures and Equipment [Member]
Property, Plant and Equipment [Line Items]
Total premises and equipment, gross	$ 50,343	$ 40,164

XML

Derivatives (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Interest rate caps [Member]
Summary of derivatives
Notional amount	$ 50,000	$ 50,000
Average maturity (in years)	2 months 5 days	1 year 2 months 5 days
Weighted average fixed rate	3.75%	3.75%
Fair value	0	0
3rd party interest rate swap [Member]
Summary of derivatives
Notional amount	50,729	54,180
Average maturity (in years)	4 years 10 months 10 days	5 years 9 months 4 days
Weighted average fixed rate	4.20%	4.22%
Fair value	1,096	997
3rd party interest rate swap [Member] | One Month Libor [Member]
Summary of derivatives
Weighted average variable rate	1 m Libor + 2.44	1 m Libor + 2.45
Basis spread	2.44%	2.45%
Customer interest rate swap [Member]
Summary of derivatives
Notional amount	50,729	54,180
Average maturity (in years)	4 years 10 months 10 days	5 years 9 months 4 days
Weighted average fixed rate	4.20%	4.22%
Fair value	$ (1,096)	$ (997)
Customer interest rate swap [Member] | One Month Libor [Member]
Summary of derivatives
Weighted average variable rate	1 m Libor + 2.44	1 m Libor + 2.45
Basis spread	2.44%	2.45%

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Deposits (Details 1) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Deposits [Abstract]
Less than one year	$ 340,813	$ 239,104
One to two years	53,319	17,248
Two to three years	35,632	5,185
Three to four years	4,000	3,062
Four to five years	4,107	3,529
Total certificates of deposit	$ 437,871	$ 268,128

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Derivatives (Details Textual) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2014 Derivatives	Sep. 30, 2013
Credit Derivatives [Line Items]
Amortized cost of investment securities pledged as collateral	$ 5,034
Fair value of investment securities pledged as collateral	4,836
Interest rate caps [Member]
Credit Derivatives [Line Items]
Number of interest rate derivatives held	2
Changes in fair value: loss	$ 0	$ 2
Interest Rate Cap 1 [Member]
Credit Derivatives [Line Items]
Strike price	3.50%
Interest Rate Cap 2 [Member]
Credit Derivatives [Line Items]
Strike price	4.00%

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Goodwill and Other Intangible Assets (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Goodwill and Intangible Assets Disclosure [Abstract]
Identifiable net assets	$ 130
Goodwill [Roll Forward]
Beginning of year	163,117	163,247
Acquisitions	225,809	(130)
Disposals	0	0
End of year	$ 388,926	$ 163,117

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Loans (Details 5) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Financing Receivable, Impaired [Line Items]
Average recorded investment with no related allowance	$ 39,236	$ 32,343
Interest income recognized with no related allowance	425	1,008
Cash-basis interest income recognized with no related allowance	419	948
Average recorded investment with an allowance recorded	0	10,285
Interest income recognized with an allowance recorded	0	21
Cash-basis interest income recognized with an allowance recorded	0	17
Average recorded investment, Total	39,236	42,628	58,195
Interest income recognized, Total	425	1,029	1,878
Cash-basis interest income recognized, Total	419	965	1,136
Commercial & industrial
Financing Receivable, Impaired [Line Items]
Average recorded investment with no related allowance	4,180	1,821
Interest income recognized with no related allowance	0	91
Cash-basis interest income recognized with no related allowance	0	86
Average recorded investment with an allowance recorded	0	705
Interest income recognized with an allowance recorded	0	0
Cash-basis interest income recognized with an allowance recorded	0	0
Commercial real estate
Financing Receivable, Impaired [Line Items]
Average recorded investment with no related allowance	14,016	17,325
Interest income recognized with no related allowance	186	286
Cash-basis interest income recognized with no related allowance	180	275
Average recorded investment with an allowance recorded	0	6,646
Interest income recognized with an allowance recorded	0	7
Cash-basis interest income recognized with an allowance recorded	0	7
Acquisition, development & construction
Financing Receivable, Impaired [Line Items]
Average recorded investment with no related allowance	20,525	12,827
Interest income recognized with no related allowance	239	631
Cash-basis interest income recognized with no related allowance	239	587
Average recorded investment with an allowance recorded	0	1,104
Interest income recognized with an allowance recorded	0	0
Cash-basis interest income recognized with an allowance recorded	0	0
Residential mortgage
Financing Receivable, Impaired [Line Items]
Average recorded investment with no related allowance	515	309
Interest income recognized with no related allowance	0	0
Cash-basis interest income recognized with no related allowance	0	0
Average recorded investment with an allowance recorded	0	1,602
Interest income recognized with an allowance recorded	0	14
Cash-basis interest income recognized with an allowance recorded	0	10
Consumer
Financing Receivable, Impaired [Line Items]
Average recorded investment with no related allowance	0	61
Interest income recognized with no related allowance	0	0
Cash-basis interest income recognized with no related allowance	0	0
Average recorded investment with an allowance recorded	0	228
Interest income recognized with an allowance recorded	0	0
Cash-basis interest income recognized with an allowance recorded	$ 0	$ 0

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Fair Value Measurements

12 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

Fair value measurements

Fair value measurements

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values.

Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date.

Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risk, etc.) or inputs that are derived principally from, or corroborated by, market data by correlation or other means.

Level 3 Inputs – Unobservable inputs for determining the fair value of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.

In general, fair value is based on quoted market prices, when available. If quoted market prices in active markets are not available, fair value is based on internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value.  These adjustments may include amounts to reflect counterparty credit quality and the Company’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Furthermore, the reported fair value amounts have not been comprehensively revalued since the presentation dates, and therefore, estimates of fair value after the balance sheet date may differ significantly from the amounts presented herein. A more detailed description of the valuation methodologies used for assets and liabilities measured at fair value is set forth below. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincide with the Company’s monthly and/or quarterly valuation process.

Investment Securities Available for Sale

The majority of the Company’s available for sale investment securities are reported at fair value utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the securities’ terms and conditions, among other things.

The Company reviews the prices supplied by the independent pricing service, as well as their underlying pricing methodologies, for reasonableness and to ensure such prices are aligned with traditional pricing matrices. In general, the Company does not purchase investment securities that have a complicated structure. The Company’s entire portfolio consists of traditional investments, nearly all of which are mortgage pass-through securities, state and municipal general obligation or revenue bonds, U.S. agency bullet and callable securities and corporate bonds. Pricing for such instruments is fairly generic and is easily obtained. From time to time, the Company validates, on a sample basis, prices supplied by the independent pricing service by comparison to prices obtained from third-party sources or derived using internal models.

The Company reports the fair value of private label collateralized mortgage obligations or “CMOs” with a rating from a nationally recognized bond rating agency of below investment grade using Level 3 inputs. As of September 30, 2014, these securities have an amortized cost $2,866 and fair value of $2,869, representing 17 basis points of our total investment portfolio. At September 30, 2014, we do not anticipate further OTTI charges on these securities. These securities, along with all of the Company’s other securities, will be reviewed on at least a quarterly basis to assess whether the impairment, if any, is OTTI.

Derivatives

The fair values of derivatives are based on valuation models using current market terms (including interest rates and fees), the remaining terms of the agreements and the credit worthiness of the counterparty as of the measurement date (Level 2). The Company’s derivatives consist of two interest rate caps and twelve interest rate swaps. See Note 9. “Derivatives.”

Commitments to Sell Real Estate Loans

The Company enters into various commitments to sell real estate loans in the secondary market. Such commitments are considered to be derivative financial instruments and therefore are carried at estimated fair value on the consolidated balance sheets. The estimated fair values of these commitments were generally calculated by reference to quoted prices in secondary markets for commitments to sell to certain government sponsored agencies. The fair values of these commitments generally result in a Level 2 classification. The fair value of these commitments is not material.

A summary of assets and liabilities at September 30, 2014 measured at estimated fair value on a recurring basis is as follows:

	September 30, 2014
	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Asset:
Investment securities available for sale:
Residential MBS:
Agency-backed	$	477,705	$	—	$	477,705	$	—
CMO/Other MBS	111,276		—		111,276		—
Privately issued CMOs	2,869		—		—		2,869
Total residential MBS	591,850		—		588,981		2,869
Federal agencies	152,814		—		152,814		—
Corporate bonds	192,839		—		192,839		—
State and municipal	134,898		—		134,898		—
Trust preferred	38,412		—		38,412		—
Total other securities	518,963		—		518,963		—
Total investment securities available for sale	1,110,813		—		1,107,944		2,869
Interest rate caps and swaps	1,096		—		1,096		—
Total assets	$	1,111,909	$	—	$	1,109,040	$	2,869
Swaps	$	1,096	$	—	$	1,096	$	—
Total liabilities	$	1,096	$	—	$	1,096	$	—

A summary of assets and liabilities at September 30, 2013 measured at estimated fair value on a recurring basis is the follows:

	September 30, 2013
	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Available for sale securities:
Residential MBS:
Agency-backed	$	282,529	$	—	$	282,529	$	—
CMO/Other MBS	163,041		—		163,041		—
Privately issued CMOs	3,613		—		—		3,613
Total residential MBS	449,183		—		445,570		3,613
Investment securities
Federal agencies	261,547		—		261,547		—
Corporate	114,933		—		114,933		—
State and municipal	128,730		—		128,730		—
Total investment securities available for sale	505,210		—		505,210		—
Total available for sale securities	954,393		—		950,780		3,613
Interest rate caps and swaps	997		—		997		—
Total assets	$	955,390	$	—	$	951,777	$	3,613
Swaps	$	997	$	—	$	997	$	—
Total liabilities	$	997	$	—	$	997	$	—

The following categories of financial assets are not measured at fair value on a recurring basis, but are subject to fair value adjustments in certain circumstances.

Loans Held for Sale and Impaired Loans

Mortgage loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value as determined by outstanding commitments from investors. Fair value of loans held for sale is determined using quoted prices for similar assets (Level 2 inputs).

When mortgage loans held for sale are sold with servicing rights retained, the carrying value of mortgage loans sold is reduced by the amount allocated to the value of the servicing rights, which is equal to its fair value. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold.

The Company may record adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of these loans. These adjustments also include certain impairment amounts for collateral dependent loans calculated in accordance with FASB ASC Topic 310 – Receivables, when establishing the allowance for loan losses. Impairment amounts are generally based on the fair value of the underlying collateral supporting the loan and, as a result, the carrying value of the loan less the calculated impairment amount applicable to that loan does not necessarily represent the fair value of the loan. Real estate collateral is valued using independent appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable by market participants. However, due to the substantial judgment applied and limited volume of activity as compared to other assets, fair value is based on Level 3 inputs. Estimates of fair value used for collateral supporting commercial loans generally are based on assumptions not observable in the market place and are also based on Level 3 inputs. Impaired loans are evaluated on at least a quarterly basis for additional impairment and their carrying values are adjusted as needed. Loans subject to non-recurring fair value measurements were $36,208 and $35,228 (which equals the carrying value less the allowance for loan losses allocated to these loans) at September 30, 2014 and 2013, respectively. Changes in fair value recognized in provisions on loans held by the Company were $905 and $2,726 for the twelve months ended September 30, 2014 and 2013, respectively.

When valuing impaired loans that are collateral dependent, the Company charges-off the difference between the recorded investment in the loan and the appraised value, which is generally less than 12 months old. A discount for estimated costs to dispose of the asset is used when evaluating the impaired loans.

A summary of impaired loans at September 30, 2014 measured at estimated fair value on a non-recurring basis is the following:

	September 30, 2014
	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Commercial real estate	1,463		—		—		1,463
Acquisition, development and construction	2,173		—		—		2,173
Total impaired loans measured at fair value	$	3,636	$	—	$	—	$	3,636

A summary of impaired loans at September 30, 2013 measured at estimated fair value on a non-recurring basis is the following:

	September 30, 2013
	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Commercial real estate	3,672		—		—		3,672
Commercial & industrial	500		—		—		500
Acquisition, development and construction	1,839		—		—		1,839
Consumer	2		—		—		2
Total impaired loans measured at fair value	$	6,013	$	—	$	—	$	6,013

Mortgage Servicing Rights

When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in net gain on sales of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income.

The Company utilizes the amortization method to subsequently measure the carrying value of its servicing rights. In accordance with FASB ASC Topic 860 - Transfers and Servicing, the Company must record impairment charges on a non-recurring basis, when the carrying value exceeds the estimated fair value. To estimate the fair value of servicing rights, the Company utilizes a third-party, which on a quarterly basis, considers the market prices for similar assets and the present value of expected future cash flows associated with the servicing rights. Assumptions utilized include estimates of the cost of servicing, loan default rates, an appropriate discount rate and prepayment speeds. The determination of fair value of servicing rights relies upon Level 3 inputs. The fair value of mortgage servicing rights at September 30, 2014 and 2013 were $1,526 and $1,978, respectively.

Assets Taken in Foreclosure of Defaulted Loans

Assets taken in foreclosure of defaulted loans are initially recorded at fair value less costs to sell when acquired, which establishes a new cost basis. These assets are subsequently accounted for at the lower of cost or fair value less costs to sell and are primarily comprised of commercial and residential real estate property and upon initial recognition, are re-measured and reported at fair value through a charge-off to the allowance for loan losses based on the fair value of the foreclosed asset. The fair value is generally determined using appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable in the market place. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between comparable sales and income data available. The fair value is derived using Level 3 inputs. Appraisals are reviewed by our credit department, our external loan review consultant and verified by officers in our credit administration area. Assets taken in foreclosure of defaulted loans subject to non-recurring fair value measurement were $7,580 and $6,022 at September 30, 2014 and 2013, respectively. There were write-downs of $224 and $1,978 related to changes in fair value recognized through income for those foreclosed assets held by the Company during the twelve months ending September 30, 2014 and 2013, respectively.

Significant Unobservable Inputs to Level 3 Measurements

The following table presents quantitative information about significant unobservable inputs used in the fair value measurements for Level 3 assets at September 30, 2014:

Non-recurring fair value measurements	Fair value		Valuation technique	Unobservable input / assumptions	Range (1) (weighted average)
Impaired loans:
Commercial real estate	$	1,463	Appraisal	Adjustments for comparable properties	15.0% - 36.0% (22.0%)
Acquisition, development & construction	2,173		Appraisal	Adjustments for comparable properties	10.0% - 30.0% (13.5%)
Assets taken in foreclosure:
Residential mortgage	1,301		Appraisal	Adjustments by management to reflect current conditions/selling costs	16.0% - 59.0% (21.6%)
Commercial real estate(2)	1,910		Appraisal	Adjustments by management to reflect current conditions/selling costs	20.0% - 37.0% (24.8%)
Acquisition, development & construction	1,973		Appraisal	Adjustments by management to reflect current conditions/selling costs	25.0% - 70.0% (30.2%)
Mortgage servicing rights	1,526		Third-party	Discount rates	9.3% - 12.8%
			Third-party	Prepayment speeds	100 - 968 (224)

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

⁽²⁾ Excludes $2,396 of commercial buildings that are former financial centers held for sale. These assets were not taken in foreclosure and their fair value is determined by appraisal, and our internal assessment of the market for this type of real estate in these locations.

Fair Values of Financial Instruments

FASB Codification Topic 825 - Financial Instruments, requires disclosure of fair value information for those financial instruments for which it is practicable to estimate fair value, whether or not such financial instruments are recognized in the consolidated statements of financial condition for interim and annual periods. Fair value is the amount for which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation.

Quoted market prices are used to estimate fair values when those prices are available, although active markets do not exist for many types of financial instruments. Fair values for these instruments must be estimated by management using techniques such as discounted cash flow analysis and comparison to similar instruments. These estimates are highly subjective and require judgments regarding significant matters, such as the amount and timing of future cash flows and the selection of discount rates that appropriately reflect market and credit risks. Changes in these judgments often have a material effect on the fair value estimates. Since these estimates are made as of a specific point in time, they are susceptible to material near-term changes. Fair values disclosed in accordance with FASB Topic 825 do not reflect any premium or discount that could result from the sale of a large volume of a particular financial instrument, nor do they reflect possible tax ramifications or estimated transaction costs.

The following is a summary of the carrying amounts and estimated fair value of financial assets and liabilities (none of which were held for trading purposes) as of September 30, 2014:

	September 30, 2014
	Carrying amount			Level 1 inputs			Level 2 inputs			Level 3 inputs
Financial assets:
Cash and due from banks	$	177,619		$	177,619		$	—		$	—
Securities available for sale	1,110,813			—			1,110,813			—
Securities held to maturity	579,075			—			587,838			—
Loans, net	4,719,826			—			—			4,758,366
Loans held for sale	17,846			—			17,846			—
Accrued interest receivable on securities	8,876			—			8,876			—
Accrued interest receivable on loans	10,791			—			—			10,791
FHLB stock and Federal Reserve Bank stock	66,085			—			—			—
Interest rate caps and swaps	1,096			—			1,096			—
Financial liabilities:
Non-maturity deposits	(4,860,783		)	(4,860,783		)	—			—
Certificates of deposit	(437,871		)	—			(438,088		)	—
FHLB borrowings	(795,028		)	—			(813,490		)	—
Other borrowings	(45,639		)	—			(45,640		)	—
Senior notes	(98,402		)	—			(100,482		)	—
Mortgage escrow funds	(4,494		)	—			(4,494		)	—
Accrued interest payable on deposits	(320		)	—			(320		)	—
Accrued interest payable on borrowings	(2,942		)	—			(2,942		)	—
Interest rate caps and swaps	(1,096		)	—			(1,096		)	—

The following is a summary of the carrying amounts and estimated fair value of financial assets and liabilities (none of which were held for trading purposes) as of September 30, 2013:

	September 30, 2013
	Carrying amount			Level 1 inputs			Level 2 inputs			Level 3 inputs
Financial assets:
Cash and due from banks	$	113,090		$	113,090		$	—		$	—
Securities available for sale	954,393			—			950,780			3,613
Securities held to maturity	253,999			—			250,896			—
Loans, net	2,384,021			—			—			2,422,824
Loans held for sale	1,011			—			1,011			—
Accrued interest receivable on securities	4,892			—			4,892			—
Accrued interest receivable on loans	6,805			—			—			6,805
FHLB stock	24,312			—			—			—
Interest rate caps and swaps	997			—			997			—
Financial liabilities:
Non-maturity deposits	(2,694,166		)	(2,694,166		)	—			—
Certificates of deposit	(268,128		)	—			(268,088		)	—
FHLB and other borrowings	(345,176		)	—			(488,369		)	—
Mortgage escrow funds	(12,646		)	—			(12,644		)	—
Accrued interest payable on deposits	(1,480		)	—			(1,480		)	—
Accrued interest payable on borrowings	(1,525		)	—			(1,525		)	—
Interest rate caps and swaps	(997		)	—			(997		)	—

The following paragraphs summarize the principal methods and assumptions used by the Company to estimate the fair value of the Company’s financial instruments:

Loans

The estimated fair value approximates carrying value for variable-rate loans that reprice frequently and with no significant change in credit risk. The fair value of fixed-rate loans and variable-rate loans which reprice on an infrequent basis is estimated by discounting future cash flows using the current interest rates at which similar loans with similar terms would be made to borrowers of similar credit quality. An overall valuation adjustment is made for specific credit risks as well as general portfolio credit risk.

FHLB of New York Stock and Federal Reserve Bank Stock

The redeemable carrying amount of these securities with limited marketability approximates their fair value.

Deposits and Mortgage Escrow Funds

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

These fair values do not include the value of core deposit relationships that comprise a significant portion of the Company’s deposits. We believe that the Company’s core deposit relationships provide a relatively stable, low-cost funding source that has a substantial value separate from the deposit balances.

FHLB Borrowings, other borrowings and Senior notes

The estimated fair value approximates carrying value for short-term borrowings. The fair value of long-term fixed-rate borrowings is estimated using quoted market prices, if available, or by discounting future cash flows using current interest rates for similar financial instruments.

Other Financial Instruments

Other financial assets and liabilities listed in the table above have estimated fair values that approximate the respective carrying amounts because the instruments are payable on demand or have short-term maturities and present relatively low credit risk and interest rate risk.

The fair values of the Company’s off-balance-sheet financial instruments described in Note 15. “Off-Balance Sheet Financial Instruments” were estimated based on current market terms (including interest rates and fees), considering the remaining terms of the agreements and the credit worthiness of the counterparties. At September 30, 2014 and 2013, the estimated fair value of these instruments approximated the related carrying amounts, which were not material.

Accrued interest receivable/payable

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

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Quarterly Results Of Operations (Unaudited) (Tables)

12 Months Ended

Sep. 30, 2014

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information

The following is a condensed summary of quarterly results of operations for the fiscal years ended September 30, 2014 and 2013:

	First quarter			Second quarter		Third quarter		Fourth quarter
Year ended September 30, 2014
Interest and dividend income	$	52,711		$	61,325	$	65,761	$	67,109
Interest expense	6,835			7,297		7,310		7,476
Net interest income	45,876			54,028		58,451		59,633
Provision for loan losses	3,000			4,800		5,950		5,350
Non-interest income	9,148			12,415		13,471		12,286
Non-interest expense	72,974			46,723		44,904		43,780
(Loss) income before income tax	(20,950		)	14,920		21,068		22,789
Income tax (benefit) expense	(6,948		)	4,588		6,057		6,452
Net (loss) income	$	(14,002	)	$	10,332	$	15,011	$	16,337
Earnings per common share:
Basic	$	(0.20	)	$	0.12	$	0.18	$	0.20
Diluted	(0.20		)	0.12		0.18		0.19
Year ended September 30, 2013
Interest and dividend income	$	33,145		$	32,420	$	32,593	$	33,903
Interest expense	5,222			4,601		4,276		5,795
Net interest income	27,923			27,819		28,317		28,108
Provision for loan losses	2,950			2,600		3,900		2,700
Non-interest income	7,659			6,852		6,581		6,600
Non-interest expense	22,546			23,339		21,789		23,367
Income before income tax	10,086			8,732		9,209		8,641
Income tax expense	3,066			2,203		2,833		3,312
Net income	$	7,020		$	6,529	$	6,376	$	5,329
Earnings per common share:
Basic	$	0.16		$	0.15	$	0.15	$	0.12
Diluted	0.16			0.15		0.15		0.12

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Other Non-interest Expense (Tables)

12 Months Ended

Sep. 30, 2014

Other Income and Expenses [Abstract]

Schedule of Other Non-interest Expense

Other non-interest expense items are presented in the following table. Components exceeding 1% of the aggregate of total net interest income and total non-interest income are presented separately.

	For the year ended September 30,
	2014		2013		2012
Other non-interest expense:
Advertising and promotion	$	2,358	$	1,502	$	1,849
Professional fees	6,913		3,393		4,247
Data and check processing	3,439		2,520		2,802
ATM/debit card expense	1,249		1,722		1,711
Insurance & surety bond premium	2,703		1,199		1,220
Charge for asset write-downs, severance and retention	22,976		—		—
Charge for banking systems conversion	3,249		—		—
Other	15,030		7,040		6,562
Total other non-interest expense	$	57,917	$	17,376	$	18,391

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Loans (Details Textual) (USD $)	3 Months Ended	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2014 loan	Sep. 30, 2013 loan	Sep. 30, 2012 loan	Oct. 31, 2013
Financing Receivable, Allowance for Credit Losses [Line Items]
Net deferred loan origination costs	$ (1,261,000)	$ (1,261,000)	$ (1,201,000)
Legacy Sterling loans not considered impaired					1,683,454,000
Recorded amount of loans	3,763,000	3,763,000
Interest income		0
Pledged loans	1,246,315,000	1,246,315,000	784,422,000
Maximum outstanding loan balance to be evaluated for impairment on a homogeneous pool basis		500,000
Interest income recognized		425,000	1,029,000	1,878,000
Cash-basis interest income recognized		419,000	965,000	1,136,000
Average recorded investment		39,236,000	42,628,000	58,195,000
Number of TDRs		2	21	12
Recorded investment, Pre-modification		1,060,000	12,193,000	9,160,000
Recorded investment, Post-modification		1,060,000	12,129,000	8,945,000
Increased allowance for loan losses	0		300,000	134,000
Charge-offs	0		110,000	0
Maximum loan balance for credit risk to be evaluated on a homogeneous basis		500,000
Additional restricted loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Additional restricted loan	0	0	4,101,000
Sterling Bancorp (Legacy)
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans					1,698,108,000
Fair value of acquired loans					13,249,000
Accretable yield	0	0
Sterling Bancorp (Legacy) | Purchased credit impaired loans | Commercial & industrial
Financing Receivable, Allowance for Credit Losses [Line Items]
Amount included in allowance for loan losses associated with purchased credit impaired loans	$ 0	$ 0

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Employee Benefit Plans And Stock-Based Compensation Plans (Details 8) (USD $)	12 Months Ended
	Sep. 30, 2014
Shares available for grant (in shares)
Beginning balance	2,066,184
Grants	(719,674)	[1]
Stock awards vested	0
Forfeited	439,594
Canceled/expired	(347,286)
Ending balance	3,350,761
Stock options outstanding - Number of shares
Beginning balance	2,114,509
Grants	324,862	[1]
Exercised	(507,955)
Forfeited	(375,235)
Ending balance	1,660,333
Exercisable at September 30, 2014	951,492
Stock options outstanding - Weighted average exercise price (in usd per share)
Beginning balance	$ 10.71
Grants	$ 11.45	[1]
Exercised	$ 11.29
Forfeited	$ 12.24
Ending balance	$ 10.55
Exercisable at September 30, 2014	$ 11.11
Recognition and Retention Plan [Member] | Non-vested Stock Awards and Performance Units [Member]
Non-vested stock awards/stock units outstanding - Number of shares
Beginning balance	209,697
Grants	115,145	[1]
Stock awards vested	(69,211)
Forfeited	(18,841)
Ending balance	588,754
Non-vested stock awards/stock units outstanding - Weighted average grant date fair value (in usd per share)
Beginning balance	$ 8.73
Grants	$ 11.53	[1]
Stock awards vested	$ 9.51
Forfeited	$ (9.18)
Ending balance	$ 10.99
2014 Stock Incentive Plan [Member]
Shares available for grant (in shares)
2014 Stock Incentive Plan	3,400,000
2012 Stock Plan [Member]
Shares available for grant (in shares)
2012 Stock Incentive Plan termination	(566,554)
Stock Compensation Grants associated with legacy Sterling Merger [Member]
Shares available for grant (in shares)
Grants	(921,503)	[1]
Stock options outstanding - Number of shares
Grants	104,152	[1]
Stock options outstanding - Weighted average exercise price (in usd per share)
Grants	$ 14.25	[1]
Stock Compensation Grants associated with legacy Sterling Merger [Member] | Recognition and Retention Plan [Member] | Non-vested Stock Awards and Performance Units [Member]
Non-vested stock awards/stock units outstanding - Number of shares
Grants	351,964	[1]
Non-vested stock awards/stock units outstanding - Weighted average grant date fair value (in usd per share)
Grants	$ 11.72	[1]

[1] (1) Reflects certain non-vested stock awards that count as 3.5 shares or 3.6 shares for each share granted.

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Deposits (Tables)

12 Months Ended

Sep. 30, 2014

Deposits [Abstract]

Summary of major classification of deposits

Deposit balances at September 30, 2014 and 2013 are summarized as follows:

	September 30,
	2014		2013
Non-interest bearing demand	$	1,799,685	$	943,934
Interest bearing demand	766,852		434,398
Savings	698,443		580,125
Money market	1,595,803		735,709
Certificates of deposit	437,871		268,128
Total deposits	$	5,298,654	$	2,962,294

Schedule of maturities of deposits

Certificates of deposit had remaining periods to contractual maturity as follows:

	September 30,
	2014		2013
Remaining period to contractual maturity:
Less than one year	$	340,813	$	239,104
One to two years	53,319		17,248
Two to three years	35,632		5,185
Three to four years	4,000		3,062
Four to five years	4,107		3,529
Total certificates of deposit	$	437,871	$	268,128

List of Company's Brokered deposits

Listed below are the Company’s brokered deposits at September 30, 2014 and 2013:

	September 30,
	2014		2013
Money market	$	84,022	$	34,571
Reciprocal CDAR’s 1	34,017		1,343
CDAR’s one way	3,028		768
Total brokered deposits	$	121,067	$	36,682

1 Certificate of deposit account registry service

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Basis of Financial Statement Presentation and Summary of Significant Accounting Policies Allowance for Loan Losses (Details) (USD $)	12 Months Ended
	Sep. 30, 2014 loan_segment
Financing Receivable, Allowance for Credit Losses [Line Items]
Number of Loan Segments	2
Minimum duration past due for impairment review	90 days
Minimum investment in loan for significance	$ 500,000
Percentage discount of appraised value for costs to hold and liquidate	10.00%
Percentage of loan carrying value used for impairment review	10.00%
Minimum [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Duration until re-appraisal	6 months
Maximum [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Duration until re-appraisal	9 months
Commercial real estate | Minimum [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Percentage of costs to hold and liquidate	12.00%
Commercial real estate | Maximum [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Percentage of costs to hold and liquidate	22.00%
Commercial business loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for Credit Losses, Duration Past Due Until Chargeoff	90 days
Homeowner loans [Member] | Minimum [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Percentage of costs to hold and liquidate	7.00%
Homeowner loans [Member] | Maximum [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Percentage of costs to hold and liquidate	13.00%
Consumer loans, including home equity [Member] | Minimum [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for Credit Losses, Duration Past Due Until Chargeoff	90 days
Consumer loans, including home equity [Member] | Maximum [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for Credit Losses, Duration Past Due Until Chargeoff	120 days

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Loans (Details 1) (USD $)	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Lease Receivable Allowance Under Troubled Debt Restructurings	$ 891,000	$ 877,000
Non-Performing loans:
Current Loans	4,684,196,000	2,379,522,000
Non-performing loans, 30-59 Days Past Due	10,307,000	3,844,000
Non-performing loans, 60-89 Days Past Due	14,972,000	2,626,000
Non-performing loans, 90+ Days Past Due	1,401,000	4,099,000
Non accrual loans	49,562,000	22,807,000
Loans and Leases Receivable, Gross	4,760,438,000	2,412,898,000
Current loans	17,138,000	23,754,000
30-59 days past due	346,000	0
60-89 days past due	169,000	0
90 days past due	0	141,000
Non-Accrual	11,944,000	2,199,000
Total	29,597,000	26,094,000
Nonperforming loans
Non-Performing loans:
Non accrual loans	49,562,000	22,807,000
Non-performing loans:
Loans 90 days past due and still accruing	1,401,000	4,099,000
Total non-performing loans	50,963,000	26,906,000
Commercial & industrial
Non-Performing loans:
Current Loans	1,150,854,000	438,818,000
Non-performing loans, 30-59 Days Past Due	2,316,000	178,000
Non-performing loans, 60-89 Days Past Due	7,043,000	2,000
Non-performing loans, 90+ Days Past Due	0	289,000
Non accrual loans	4,324,000	500,000
Loans and Leases Receivable, Gross	1,164,537,000	439,787,000
Payroll finance
Non-Performing loans:
Current Loans	145,029,000
Non-performing loans, 30-59 Days Past Due	99,000
Non-performing loans, 60-89 Days Past Due	0
Non-performing loans, 90+ Days Past Due	346,000
Non accrual loans	0
Loans and Leases Receivable, Gross	145,474,000
Warehouse lending
Non-Performing loans:
Current Loans	192,003,000
Non-performing loans, 30-59 Days Past Due	0
Non-performing loans, 60-89 Days Past Due	0
Non-performing loans, 90+ Days Past Due	0
Non accrual loans	0
Loans and Leases Receivable, Gross	192,003,000
Factored receivables
Non-Performing loans:
Current Loans	181,063,000
Non-performing loans, 30-59 Days Past Due	0
Non-performing loans, 60-89 Days Past Due	0
Non-performing loans, 90+ Days Past Due	0
Non accrual loans	370,000
Loans and Leases Receivable, Gross	181,433,000
Equipment financing
Non-Performing loans:
Current Loans	391,914,000
Non-performing loans, 30-59 Days Past Due	689,000
Non-performing loans, 60-89 Days Past Due	162,000
Non-performing loans, 90+ Days Past Due	0
Non accrual loans	262,000
Loans and Leases Receivable, Gross	393,027,000
Commercial real estate
Non-Performing loans:
Current Loans	1,433,805,000	1,263,933,000
Non-performing loans, 30-59 Days Past Due	93,000	1,978,000
Non-performing loans, 60-89 Days Past Due	4,188,000	2,357,000
Non-performing loans, 90+ Days Past Due	521,000	1,574,000
Non accrual loans	10,445,000	7,195,000
Loans and Leases Receivable, Gross	1,449,052,000	1,277,037,000
Multi-family
Non-Performing loans:
Current Loans	368,393,000
Non-performing loans, 30-59 Days Past Due	0
Non-performing loans, 60-89 Days Past Due	0
Non-performing loans, 90+ Days Past Due	0
Non accrual loans	131,000
Loans and Leases Receivable, Gross	368,524,000
Acquisition, development & construction
Non-Performing loans:
Current Loans	79,732,000	96,306,000
Non-performing loans, 30-59 Days Past Due	0	768,000
Non-performing loans, 60-89 Days Past Due	56,000	0
Non-performing loans, 90+ Days Past Due	0	0
Non accrual loans	12,361,000	5,420,000
Loans and Leases Receivable, Gross	92,149,000	102,494,000
Residential mortgage
Non-Performing loans:
Current Loans	547,912,000	390,072,000
Non-performing loans, 30-59 Days Past Due	4,023,000	354,000
Non-performing loans, 60-89 Days Past Due	2,036,000	267,000
Non-performing loans, 90+ Days Past Due	534,000	1,832,000
Non accrual loans	15,926,000	7,484,000
Loans and Leases Receivable, Gross	570,431,000	400,009,000
Consumer
Non-Performing loans:
Current Loans	193,491,000	190,393,000
Non-performing loans, 30-59 Days Past Due	3,087,000	566,000
Non-performing loans, 60-89 Days Past Due	1,487,000	0
Non-performing loans, 90+ Days Past Due	0	404,000
Non accrual loans	5,743,000	2,208,000
Loans and Leases Receivable, Gross	$ 203,808,000	$ 193,571,000

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Fair Value Measurements (Details 2) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Quoted Prices in Active markets for Identical Assets Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net	$ 0	$ 0
Significant Other Observable Inputs Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net	0	0
Significant Unobservable Inputs Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net	4,758,366	2,422,824
Impaired [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value Measurements [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net	3,636	6,013
Impaired [Member] | Fair Value, Measurements, Nonrecurring [Member] | Quoted Prices in Active markets for Identical Assets Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net	0	0
Impaired [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Other Observable Inputs Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net	0	0
Impaired [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net	3,636	6,013
Impaired [Member] | Commercial Real Estate [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value Measurements [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net	1,463	3,672
Impaired [Member] | Commercial Real Estate [Member] | Fair Value, Measurements, Nonrecurring [Member] | Quoted Prices in Active markets for Identical Assets Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net	0	0
Impaired [Member] | Commercial Real Estate [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Other Observable Inputs Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net	0	0
Impaired [Member] | Commercial Real Estate [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net	1,463	3,672
Impaired [Member] | Commercial & industrial | Fair Value, Measurements, Nonrecurring [Member] | Fair Value Measurements [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net		500
Impaired [Member] | Commercial & industrial | Fair Value, Measurements, Nonrecurring [Member] | Quoted Prices in Active markets for Identical Assets Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net		0
Impaired [Member] | Commercial & industrial | Fair Value, Measurements, Nonrecurring [Member] | Significant Other Observable Inputs Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net		0
Impaired [Member] | Commercial & industrial | Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net		500
Impaired [Member] | Acquisition development and construction [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value Measurements [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net	2,173	1,839
Impaired [Member] | Acquisition development and construction [Member] | Fair Value, Measurements, Nonrecurring [Member] | Quoted Prices in Active markets for Identical Assets Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net	0	0
Impaired [Member] | Acquisition development and construction [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Other Observable Inputs Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net	0	0
Impaired [Member] | Acquisition development and construction [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net	2,173	1,839
Impaired [Member] | Consumer loans [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value Measurements [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net		2
Impaired [Member] | Consumer loans [Member] | Fair Value, Measurements, Nonrecurring [Member] | Quoted Prices in Active markets for Identical Assets Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net		0
Impaired [Member] | Consumer loans [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Other Observable Inputs Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net		0
Impaired [Member] | Consumer loans [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net		$ 2

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Securities (Details 3) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2014		Sep. 30, 2013		Sep. 30, 2012
Investments, Debt and Equity Securities [Abstract]
Proceeds from sales of securities available for sale	$ 529,107		$ 339,123		$ 344,431
Gross realized gains from securities available for sale	1,964		7,709		10,468
Gross realized losses from securities available for sale	(1,323)		(377)		0
Income tax expense on realized net gains of securities available for sale	172		2,282		2,475
Proceeds from sales of securities held to maturity	0	[1]	1,187	[1]	0	[1]
Gross realized gains from securities held to maturity	0	[1]	59	[1]	0	[1]
Income tax expense on securities held to maturity	$ 0	[1]	$ 18	[1]	$ 0	[1]

[1] (1) During the fiscal year ended September 30, 2013, the Company sold held to maturity securities after the Company had already collected at least 85% of the principal balance outstanding at acquisition.

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Fair Value Measurements (Tables)

12 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

Estimated fair value on a recurring basis

A summary of assets and liabilities at September 30, 2014 measured at estimated fair value on a recurring basis is as follows:

	September 30, 2014
	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Asset:
Investment securities available for sale:
Residential MBS:
Agency-backed	$	477,705	$	—	$	477,705	$	—
CMO/Other MBS	111,276		—		111,276		—
Privately issued CMOs	2,869		—		—		2,869
Total residential MBS	591,850		—		588,981		2,869
Federal agencies	152,814		—		152,814		—
Corporate bonds	192,839		—		192,839		—
State and municipal	134,898		—		134,898		—
Trust preferred	38,412		—		38,412		—
Total other securities	518,963		—		518,963		—
Total investment securities available for sale	1,110,813		—		1,107,944		2,869
Interest rate caps and swaps	1,096		—		1,096		—
Total assets	$	1,111,909	$	—	$	1,109,040	$	2,869
Swaps	$	1,096	$	—	$	1,096	$	—
Total liabilities	$	1,096	$	—	$	1,096	$	—

A summary of assets and liabilities at September 30, 2013 measured at estimated fair value on a recurring basis is the follows:

	September 30, 2013
	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Available for sale securities:
Residential MBS:
Agency-backed	$	282,529	$	—	$	282,529	$	—
CMO/Other MBS	163,041		—		163,041		—
Privately issued CMOs	3,613		—		—		3,613
Total residential MBS	449,183		—		445,570		3,613
Investment securities
Federal agencies	261,547		—		261,547		—
Corporate	114,933		—		114,933		—
State and municipal	128,730		—		128,730		—
Total investment securities available for sale	505,210		—		505,210		—
Total available for sale securities	954,393		—		950,780		3,613
Interest rate caps and swaps	997		—		997		—
Total assets	$	955,390	$	—	$	951,777	$	3,613
Swaps	$	997	$	—	$	997	$	—
Total liabilities	$	997	$	—	$	997	$	—

Impaired loans measured at estimated fair value on nonrecurring basis

A summary of impaired loans at September 30, 2014 measured at estimated fair value on a non-recurring basis is the following:

	September 30, 2014
	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Commercial real estate	1,463		—		—		1,463
Acquisition, development and construction	2,173		—		—		2,173
Total impaired loans measured at fair value	$	3,636	$	—	$	—	$	3,636

A summary of impaired loans at September 30, 2013 measured at estimated fair value on a non-recurring basis is the following:

	September 30, 2013
	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Commercial real estate	3,672		—		—		3,672
Commercial & industrial	500		—		—		500
Acquisition, development and construction	1,839		—		—		1,839
Consumer	2		—		—		2
Total impaired loans measured at fair value	$	6,013	$	—	$	—	$	6,013

Quantitative information of Level 3 assets

The following table presents quantitative information about significant unobservable inputs used in the fair value measurements for Level 3 assets at September 30, 2014:

Non-recurring fair value measurements	Fair value		Valuation technique	Unobservable input / assumptions	Range (1) (weighted average)
Impaired loans:
Commercial real estate	$	1,463	Appraisal	Adjustments for comparable properties	15.0% - 36.0% (22.0%)
Acquisition, development & construction	2,173		Appraisal	Adjustments for comparable properties	10.0% - 30.0% (13.5%)
Assets taken in foreclosure:
Residential mortgage	1,301		Appraisal	Adjustments by management to reflect current conditions/selling costs	16.0% - 59.0% (21.6%)
Commercial real estate(2)	1,910		Appraisal	Adjustments by management to reflect current conditions/selling costs	20.0% - 37.0% (24.8%)
Acquisition, development & construction	1,973		Appraisal	Adjustments by management to reflect current conditions/selling costs	25.0% - 70.0% (30.2%)
Mortgage servicing rights	1,526		Third-party	Discount rates	9.3% - 12.8%
			Third-party	Prepayment speeds	100 - 968 (224)

Carrying amounts and estimated fair value of financial assets and liabilities

The following is a summary of the carrying amounts and estimated fair value of financial assets and liabilities (none of which were held for trading purposes) as of September 30, 2014:

	September 30, 2014
	Carrying amount			Level 1 inputs			Level 2 inputs			Level 3 inputs
Financial assets:
Cash and due from banks	$	177,619		$	177,619		$	—		$	—
Securities available for sale	1,110,813			—			1,110,813			—
Securities held to maturity	579,075			—			587,838			—
Loans, net	4,719,826			—			—			4,758,366
Loans held for sale	17,846			—			17,846			—
Accrued interest receivable on securities	8,876			—			8,876			—
Accrued interest receivable on loans	10,791			—			—			10,791
FHLB stock and Federal Reserve Bank stock	66,085			—			—			—
Interest rate caps and swaps	1,096			—			1,096			—
Financial liabilities:
Non-maturity deposits	(4,860,783		)	(4,860,783		)	—			—
Certificates of deposit	(437,871		)	—			(438,088		)	—
FHLB borrowings	(795,028		)	—			(813,490		)	—
Other borrowings	(45,639		)	—			(45,640		)	—
Senior notes	(98,402		)	—			(100,482		)	—
Mortgage escrow funds	(4,494		)	—			(4,494		)	—
Accrued interest payable on deposits	(320		)	—			(320		)	—
Accrued interest payable on borrowings	(2,942		)	—			(2,942		)	—
Interest rate caps and swaps	(1,096		)	—			(1,096		)	—

The following is a summary of the carrying amounts and estimated fair value of financial assets and liabilities (none of which were held for trading purposes) as of September 30, 2013:

	September 30, 2013
	Carrying amount			Level 1 inputs			Level 2 inputs			Level 3 inputs
Financial assets:
Cash and due from banks	$	113,090		$	113,090		$	—		$	—
Securities available for sale	954,393			—			950,780			3,613
Securities held to maturity	253,999			—			250,896			—
Loans, net	2,384,021			—			—			2,422,824
Loans held for sale	1,011			—			1,011			—
Accrued interest receivable on securities	4,892			—			4,892			—
Accrued interest receivable on loans	6,805			—			—			6,805
FHLB stock	24,312			—			—			—
Interest rate caps and swaps	997			—			997			—
Financial liabilities:
Non-maturity deposits	(2,694,166		)	(2,694,166		)	—			—
Certificates of deposit	(268,128		)	—			(268,088		)	—
FHLB and other borrowings	(345,176		)	—			(488,369		)	—
Mortgage escrow funds	(12,646		)	—			(12,644		)	—
Accrued interest payable on deposits	(1,480		)	—			(1,480		)	—
Accrued interest payable on borrowings	(1,525		)	—			(1,525		)	—
Interest rate caps and swaps	(997		)	—			(997		)	—

XML

Basis of Financial Statement Presentation and Summary of Significant Accounting Policies

12 Months Ended

Sep. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Financial Statement Presentation and Summary of Significant Accounting Policies

Basis of Financial Statement Presentation and Summary of Significant Accounting Policies

Merger with Sterling Bancorp

On October 31, 2013, Provident New York Bancorp (“Legacy Provident”) merged with Sterling Bancorp (“Legacy Sterling”). In connection with the merger, the following corporate actions occurred:

• Legacy Sterling merged with and into Legacy Provident. Legacy Provident was the accounting acquirer and the surviving entity.

• Legacy Provident changed its legal entity name to Sterling Bancorp and became a bank holding company and a financial holding company as defined by the Bank Holding Company Act of 1956, as amended (“Sterling” or the “Company”).

• Provident Bank converted to a national bank charter.

• Sterling National Bank merged into Provident Bank.

• Provident Bank changed its legal entity name to Sterling National Bank.

• Provident Municipal Bank merged into Sterling National Bank.

We refer to the transactions detailed above collectively as the “Merger.”

The consolidated financial statements include the accounts of Sterling; STL Holdings, Inc. (formerly PBNY Holdings, Inc.) which has an investment in Sterling Silver Title Agency L.P. (formerly PB Madison Title Agency L.P.), a company that provides title searches and title insurance for residential and commercial real estate; LandSave Development, LLC an inactive subsidiary, which was dissolved on September 30, 2014; Sterling Risk Management, Inc. (formerly Provident Risk Management, Inc., a captive insurance company); Sterling National Bank (the “Bank”) and the Bank’s wholly-owned subsidiaries. These subsidiaries included at September 30, 2014: (i) Sterling REIT, Inc. a real estate investment trust that holds a portion of the Company’s real estate loans; (ii) Provest Services Corp. I, which has invested in a low-income housing partnership; (iii) Provest Services Corp. II, which has engaged a third-party provider to sell mutual funds and annuities to the Bank’s customers and (iv) several limited liability companies which hold other real estate owned. Intercompany transactions and balances are eliminated in consolidation.

The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. Certain amounts from prior years have been reclassified to conform to the current fiscal year presentation. Reclassifications had no affect on prior year net income or stockholders’ equity.

(a)Nature of Business

Since October 31, 2013, Sterling is a bank holding company and financial holding company under the Bank Holding Company Act of 1956. Sterling is a Delaware corporation that owns all of the outstanding shares of the Bank. Sterling is listed on the New York Stock Exchange (“NYSE”) under the symbol STL.

The Bank, an independent, full-service bank founded in 1888, is headquartered in Montebello, New York and is the principal bank subsidiary of Sterling. The Bank accounts for substantially all of Sterling’s consolidated assets and net income. The Bank operates through commercial banking teams and financial centers which serve the greater New York metropolitan region. The Bank targets the following geographic markets: (i) the New York Metro Market, which includes Manhattan and Long Island; and (ii) the New York Suburban Market, which consists of Rockland, Orange, Sullivan, Ulster, Putnam and Westchester counties in New York and Bergen County in New Jersey.

The Bank’s principal business is accepting deposits and, together with funds generated from operations and borrowings, investing in various types of loans and securities. In connection with the Merger, the Bank became a national bank and its deposits are insured up to applicable limits by the Deposit Insurance Fund of the Federal Deposit Insurance Corporation (“FDIC”). The Office of the Comptroller of the Currency (“OCC”) and the Federal Reserve Board are the primary regulators for the Bank and the Company, respectively.

(b)Use of estimates

The consolidated financial statements have been prepared in conformity with GAAP. In preparing the consolidated financial statements, the Company is required to make estimates and assumptions that affect the reported amounts of assets, liabilities, income and expense. Actual results could differ significantly from these estimates. An estimate that is particularly susceptible to significant near-term change is the allowance for loan losses, which is discussed below. Also subject to change are estimates involving goodwill impairment evaluations, mortgage servicing rights, benefit plans, deferred income taxes and fair values of financial instruments.

(c)Cash Flows

For purposes of reporting cash flows, cash equivalents include highly liquid, short-term investments such as overnight federal funds, as well as cash and deposits with other financial institutions. Net cash flows are reported for customer loan and deposit transactions and short-term borrowings with an original maturity of 90 days or less.

(d) Restrictions on Cash

The Bank was required to have $28.7 million and $14.6 million of cash on hand or on deposit with the Federal Reserve Bank to meet regulatory reserve and clearing requirements at September 30, 2014 and 2013.

(e)Long-Term Assets

Premises and equipment, core deposit and other intangible assets are reviewed annually for impairment or when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value.

(f)Fair Values of Financial Instruments

Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. (See Note 17. “Fair Value Measurements”)

(g)Adoption of New Accounting Standards

Accounting Standards Update (ASU) 2014-01 - Investments - Equity method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects was issued. This standard provides reporting guidance for entities that invest in qualified affordable housing projects through limited liability entities that are flow through entities for tax purposes. The amendments in this ASU eliminate the effective yield election and permit the Company to make an accounting policy election to account for its investment in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, the Company amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the statement of operations as a component of income tax expense. The amendments in this ASU should be applied retrospectively to all periods presented. The Company adopted this ASU in the quarter ended March 31, 2014, which coincided with the Company’s initial recognition of low income housing tax credits. The adoption of this ASU resulted in a $508 income tax benefit and a $520 expense associated with the amortization of the Company’s investment for the fiscal year ended September 30, 2014.

(h)Securities

Securities include U.S. Treasury, U.S. Government Agency and Government Sponsored Agencies, municipal and corporate bonds, mortgage-backed securities, collateralized mortgage obligations and trust preferred securities.

The Company can classify its securities among three categories: held to maturity, trading, and available for sale. The Company determines the appropriate classification of the Company’s securities at the time of purchase.

Held to maturity securities are limited to debt securities for which there is the intent and the ability to hold to maturity. These securities are reported at amortized cost.

Trading securities are debt and equity securities held principally for the purpose of selling them in the near-term. These securities are reported at fair value, with unrealized gains and losses included in earnings. The Company does not engage in securities trading activities.

All other debt and marketable equity securities are classified as available for sale. These securities are reported at fair value, with unrealized gains and losses (net of the related deferred income tax effect) excluded from earnings and reported in a separate component of stockholders’ equity (accumulated other comprehensive income or loss). Available for sale securities include securities that the Company intends to hold for an indefinite period of time, such as securities to be used as part of the Company’s asset/liability management strategy or securities that may be sold to fund loan growth, in response to changes in interest rates, changes in prepayment risks, the need to increase capital, or similar factors.

Premiums and discounts on debt securities are recognized in interest income on a level yield basis over the period to maturity. Amortization of premiums and accretion of discounts on mortgage-backed securities are based on the estimated cash flows of the mortgage-backed securities, periodically adjusted for changes in estimated lives, on a level yield basis. The cost of securities sold is determined using the specific identification method.

Securities are evaluated for impairment at least quarterly, and more frequently when economic and market conditions warrant such an evaluation. For securities in an unrealized loss position, we consider the extent and duration of the unrealized loss, and the financial condition of the issuer. The Company also assesses whether it intends to sell, or is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either criteria regarding intent to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. If the Company does not expect to recover the entire amortized cost basis of the security, the Company does not intend to sell the security and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, the other than temporary impairment is separated into a) the amount representing the credit loss and b) the amount related to all other factors. The amount of other than temporary impairment related to credit loss is recognized in earnings while the amount related to other factors is recognized in other comprehensive income, net of applicable taxes. The cost basis of individual equity securities is written down to estimated fair value through a charge to earnings when declines in value below cost are considered to be other than temporary. As of September 30, 2014, the Company does not intend to sell nor is it more likely than not that it would be required to sell any of its debt securities with unrealized losses prior to recovery of its amortized cost basis less any current period credit loss.

(i)Loans Held For Sale

Mortgage loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value, as determined by outstanding commitments from investors. In the absence of commitments from investors, fair value is based on current investor yield requirements. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings.

Historically mortgage loans held for sale were generally sold with servicing rights retained. The carrying value of mortgage loans sold is reduced by the amount allocated to the value of the servicing rights which is its fair value. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold.

(j)Servicing Rights

When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans.

Under the amortization measurement method, the Company subsequently measures servicing rights at fair value at each reporting date and records any impairment in value of servicing assets in earnings in the period in which the impairment occurs. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses.

Servicing fee income, which is reported on the income statement as other income, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan, and are recorded as income when earned. Servicing fees totaled $911, $778 and $695 for the years ended September 30, 2014, 2013 and 2012, respectively. Late fees and ancillary fees related to loan servicing are not material. Effective October 1, 2013, the Bank outsourced servicing of residential mortgage loans to a nationally recognized mortgage loan servicing company.

(k)Loans

Loans where Sterling has the intent and ability to hold for the foreseeable future or until maturity or payoff (other than loans held for sale) are reported at amortized cost less the allowance for loan losses. Interest income on loans is accrued on the unpaid principal balance.

A loan is placed on non-accrual status upon the earlier of (i) when Sterling determines that the borrower may likely be unable to meet contractual principal or interest obligations, or (ii) when payments are 90 days or more past due, unless well secured and in the process of collection. Accrual of interest ceases and, in general, uncollected past due interest is reversed and charged against current interest income. Interest payments received on non-accrual loans, including impaired loans, are not recognized as income unless warranted based on the borrower’s financial condition and payment record. Furthermore, negative tax escrow will be included in the unpaid principal for loans individually evaluated for impairment, as this is part of the customer’s legal obligation to the Company.

The Company defers nonrefundable loan origination and commitment fees, and certain direct loan origination costs, and amortizes the net amount as an adjustment of the yield over the estimated life of the loan. If a loan is prepaid or sold, the net deferred amount is recognized in the statement of income at that time. Interest and fees on loans include prepayment fees and late charges collected.

(l)Allowance for Loan Losses

The allowance for loan losses is a reserve established through a provision for loan losses charged to expense, which represents management’s best estimate of probable incurred credit losses inherent in the loan portfolio. The allowance for loan losses is a critical accounting estimate and requires substantial judgment of management. The allowance for loan losses includes allowance allocations calculated in accordance with ASC Subtopic 450-20, “Loss Contingencies” and ASC Subtopic 310-35-2, “Loan Impairment.” The level of the allowance reflects management’s continuing evaluation of loan loss experience, specific credit risks, current loan portfolio quality, industry and loan type concentrations, economic and regulatory conditions and unidentified losses inherent in the loan portfolios, as well as trends in the foregoing. The Company analyzes loans by two broad segments: real estate secured loans and loans that are either unsecured or secured by other collateral.

The classes considered real estate secured are: residential mortgage loans; commercial real estate (“CRE”) loans; business banking CRE; multi-family loans; acquisition, development and construction (“ADC”) loans; homeowner loans, and home equity lines of credit. The classes considered unsecured or secured by other than real estate collateral are: commercial & industrial (“C&I”) loans; payroll finance loans, warehouse lending; factored receivables; equipment finance loans; business banking C&I loans and consumer loans. In all segments or classes, significant loans are reviewed for impairment once they are past due 90 days or more or are classified substandard or doubtful. Generally the Company considers a homogeneous residential mortgage or home equity line of credit to be significant if the Company’s investment in the loan is greater than $500. If a loan is deemed to be impaired in one of the real estate secured segment, it is generally considered collateral dependent. If the value of the collateral securing a collateral dependent impaired loan is less than the loan’s carrying value, a charge-off is recognized equal to the difference between the appraised value and the book value of the loan. Additionally, impairment reserves are recognized for estimated costs to hold and liquidate and for a 10% discount on the appraisal value. The range for costs to hold and liquidate is 12-22% for CRE, business banking CRE and ADC loans and is 7-13% for homeowner loans, home equity lines of credit, and residential mortgage loans. Impaired loans in the real estate secured segments are re-appraised using a summary or drive-by appraisal report every six to nine months.

For loans in the business banking C&I classwe charge-off the full amount of the loan when it becomes 90 days or more past due, or earlier in the case of bankruptcy, after giving effect to any cash or marketable securities pledged as collateral for the loan. For other classes of C&I loans, we prepare a cash flow projection, and charge-off the difference between the net present value of the cash flows discounted at the effective note rate and the carrying value of the loan, and generally recognize a 10% impairment reserve to account for the potential imprecision of our estimates. However, on most of these cases receipt of future cash flows is too unreliable to be considered probable, resulting in the charge-off of the entire balance of the loan. For unsecured consumer loans, charg0- offs are recognized once the loan is 90 to 120 days or more past due or the borrower files for bankruptcy protection.

Subsequent recoveries, if any, are credited to the allowance for loan losses. The allowance for loan losses consists of amounts specifically allocated to non-performing loans and other criticized or classified loans (if any), as well as allowances determined for the pass rated loans in each major loan category. After we establish an allowance for loan losses for loans that are known to be non-performing, criticized or classified, we calculate a percentage to apply to the remaining loan portfolio to estimate the probable incurred losses inherent in that portion of the portfolio. These percentages are determined by management, based on historical loss experience for the applicable loan class, and are adjusted to reflect our evaluation of:

•levels of, and trends in, delinquencies and non-accruals;

•trends in volume and terms of loans;

•effects of any changes in lending policies and procedures;

•experience, ability, and depth of lending management and staff;

•national and local economic trends and conditions;

• concentrations of credit by such factors as location, industry, inter-relationships, and borrower; and for commercial loans, trends in risk ratings.

Commercial real estate loans subject us to the risks that the property securing the loan may not generate sufficient cash flow to service the debt or the borrower may use the cash flow for other purposes. In addition, if necessary, the foreclosure process may be slow and properties may deteriorate in the process. The market values are also subject to a wide variety of factors, including general economic conditions, industry specific factors, environmental factors, interest rates and the availability and terms of credit.

Commercial business lending presents a risk because repayment depends on the successful operation of the business which is subject to a wide range of risks and uncertainties. In addition, the ability to successfully liquidate collateral, if any, is subject to a variety of risks because we must gain control of assets used in the borrower’s business before foreclosing which we cannot be assured of doing, and the value in a foreclosure sale or other means of liquidation is uncertain.

Acquisition, development and construction (“ADC”) lending is considered higher risk and exposes us to greater credit risk than permanent mortgage financing. The repayment of ADC loans depends upon the sale of the property to third parties or the availability of permanent financing upon completion of all improvements. In the event we make a land acquisition loan on property that is not yet approved for the planned development, there is the risk that approvals will not be granted or will be delayed. These events may adversely affect the borrower and the collateral value of the property. Development and construction loans also expose us to the risk that improvements will not be completed on time or in accordance with specifications and projected costs. In addition, the ultimate sale or rental of the property may not occur as anticipated. All of these factors are considered as part of the underwriting, structuring and pricing of the loan. We have deemphasized this type of lending.

When we evaluate residential mortgage loans and home equity loans we weigh both the credit capacity of the borrower and the collateral value of the home. If unemployment or underemployment increase, the credit capacity of underlying borrowers will decrease, which increases our risk. Similarly, as we obtain a mortgage on the property, if home prices decline, we are exposed to risk in both our first mortgage and equity lending programs due to declines in the value of our collateral. We are also exposed to risk because the time to foreclose is significant and has become longer under current market conditions.

(m) Troubled Debt Restructuring

Troubled debt restructuring (“TDR”) is a formally renegotiated loan in which the Bank, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to the borrower that would not have been granted to the borrower otherwise. Not all loans that are restructured as a TDR are classified as non-accrual before the restructuring occurs. Restructured loans can convert from non-accrual to accrual status when said loans have demonstrated performance, generally evidenced by six months of consistent payment performance in accordance with the restructured terms, or by the presence of other significant items.

(n) Federal Reserve Bank of New York and Federal Home Loan Bank Stock

As a member of the Federal Reserve Bank of New York (“FRB”) and the Federal Home Loan Bank of New York (“FHLB”), the Bank is required to hold a certain amount of FRB and FHLB common stock. This stock is a non-marketable equity security and, is reported at cost.

(o) Premises and Equipment

Land is reported at cost, while premises and equipment are reported at cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets, which range from three years for equipment and 40 years for premises. Leasehold improvements are amortized on a straight-line basis over the terms of the respective leases, including renewal options, or the estimated useful lives of the improvements, whichever is shorter. Routine holding costs are charged to expense as incurred, while significant improvements are capitalized. The Company recognizes an impairment charge based on the excess of the carrying amount of assets (generally assets associated with a financial center) over the fair value of the assets. Fair value is determined by third-party valuations and evaluations prepared by management. For the fiscal year ended September 30, 2014, the Company recognized premises and equipment impairment charges of $9.3 million related to financial center consolidations as a result of the Merger. These charges were included in other non-interest expense in the income statement.

(p) Goodwill, Trade Names and Other Intangible Assets

Goodwill resulting from business combinations represents the excess of the purchase price over the fair value of the net assets of businesses acquired. Goodwill and trade names acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually. Goodwill and trade name are the only intangible assets with an indefinite life on our balance sheet.

The Company accounts for goodwill, trade names and other intangible assets in accordance with GAAP, which, in general, requires that goodwill and trade names not be amortized, but rather that they be tested for impairment at least annually at the reporting unit level. The Company has the option to first perform a qualitative assessment to test goodwill for impairment on a reporting-unit-by-reporting-unit basis. If, after performing the qualitative assessment, the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company will perform the two-step process described below:

1. Identify potential impairments by comparing the fair value of a reporting unit to its carrying amount, including goodwill. Goodwill is not considered impaired as long as the fair value of the reporting unit is greater than its carrying value. The second step is only required if a potential impairment to goodwill is identified in step one.

2. Compare the implied fair value of goodwill to its carrying amount, where the implied fair value of goodwill is computed on a residual basis, that is, by subtracting the sum of the fair values of the individual asset categories (tangible and intangible) from the indicated fair value of the reporting unit as determined under step one. If the carrying amount of goodwill exceeds its implied fair value, an impairment loss is recognized. That loss is equal to the carrying amount of goodwill that is in excess of its implied fair value, and it must be presented as a separate line item on financial statements.

At September 30, 2014, the Company assessed goodwill for impairment using qualitative factors and concluded the two-step process was unnecessary.

Core deposit intangibles recorded in acquisitions are amortized to expense using an accelerated method over their estimated lives of 8 to 10 years. Non-compete agreements are amortized on a straight line basis over their estimated life. Prior to March 31, 2014, intangibles related to the naming rights on Provident Bank Ball Park were amortized over 10 years on a straight-line basis. Impairment losses on intangible assets are charged to expense, if and when they occur.

(q) Other Real Estate Owned

Real estate properties acquired through loan foreclosures are recorded initially at estimated fair value, less expected sales costs, with any resulting write-down charged to the allowance for loan losses. Other real estate owned also includes the fair value of the Bank’s financial centers that are held for sale. Any write-down associated with the transfer of a financial center from premises and equipment to other real state owned was included as a charge to other non-interest income in the income statement. Subsequent valuations of other real estate owned are performed by management, and the carrying amount of a property is adjusted by a charge to expense to reflect any subsequent declines in estimated fair value. Fair value estimates are based on recent appraisals and other available information. Routine holding costs are charged to expense as incurred, while significant improvements are capitalized. Gains and losses on sales of real estate owned properties are recognized upon disposition.

(r) Securities Repurchase Agreements

In securities repurchase agreements, the Company transfers securities to a counterparty under an agreement to repurchase the identical securities at a fixed price on a future date. These agreements are accounted for as secured financing transactions since the Company maintains effective control over the transferred securities and the transfer meets other specified criteria. Accordingly, the transaction proceeds are recorded as borrowings and the underlying securities continue to be carried in the Company’s investment securities portfolio. Disclosure of the pledged securities is made in the consolidated balance sheets if the counterparty has the right by contract to sell or re-pledge such collateral.

(s)Income Taxes

Net deferred taxes are recognized for the estimated future tax effects attributable to “temporary differences” between the financial statement carrying amounts and the tax bases of existing assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax laws or rates is recognized in income tax expense in the period that includes the enactment date of the change.

A deferred tax liability is recognized for all temporary differences that will result in future taxable income. A deferred tax asset is recognized for all temporary differences that will result in future tax deductions, subject to reduction of the asset by a valuation allowance in certain circumstances. This valuation allowance is recognized if, based on an analysis of available evidence, we determine that it is more likely than not that some portion, or all of the deferred tax asset will not be realized.

The valuation allowance is subject to ongoing adjustment based on changes in circumstances that affect management’s judgment about the realizability of the deferred tax asset. Adjustments to increase or decrease the valuation allowance are charged or credited, respectively, to income tax expense. The Company recognizes interest and/or penalties related to income tax matters in income tax expense.

The Company evaluates uncertain tax positions in a two step process. The first step is recognition, which requires a determination of whether it is more likely than not that a tax position will be sustained upon examination. The second step is measurement. Under the measurement step, a tax position that meets the more likely than not recognition threshold is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more likely than not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. A previously recognized tax position that no longer meets the more likely than not recognition threshold should be derecognized in the first subsequent financial reporting period in which the threshold is no longer met. The Company did not have any such position as of September 30, 2014. (See Note 10 “Income Taxes”).

(t) Bank Owned Life Insurance (BOLI)

The Company owns life insurance policies (purchased and acquired) on certain officers and key executives. Bank owned life insurance is recorded at its cash surrender value (or the amount that can be realized).

(u) Stock-Based Compensation Plans

Compensation expense for stock options, non-vested stock awards/stock units is based on the fair value of the award on the measurement date, which is the date of grant. The expense is recognized ratably over the service period of the award. The fair value of stock options is estimated using a Black-Scholes valuation model. the fair value of non-vested stock awards/stock units is generally the market price of the Company’s common stock on the date of grant.

(v) Earnings Per Share

Basic earnings per share (“EPS”) is computed by dividing net income applicable to common stock by the weighted average number of common shares outstanding during the period.

Diluted EPS is computed in a similar manner, except that the weighted average number of common shares is increased to include incremental shares (computed using the treasury stock method) that would have been outstanding if all potentially dilutive stock options were exercised and unvested restricted stock became vested during the periods. For purposes of computing both basic and diluted EPS, outstanding shares include earned ESOP shares.

(w) Segment Information

Public companies are required to report certain financial information about significant revenue-producing segments of the business for which such information is available and utilized by the chief operating decision maker. Substantially all of the Company’s operations occur through the Bank and involve the delivery of loan and deposit products to customers. Management makes operating decisions and assesses performance based on an ongoing review of its banking operation, which constitutes the Company’s only operating segment for financial reporting purposes.

(x) Loss Contingencies

Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. The Company does not believe there are such matters that will have a material effect on the financial statements.

(y) Derivatives

At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company’s intentions and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), or (3) an instrument with no hedging designation (“stand-alone derivative”). For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same period during which the hedged transaction affects earnings. For both types of hedges, changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as non-interest income. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged.

The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended.

When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as non-interest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings.

(z) Loan Commitments and Related Financial Instruments

Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded.

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Accumulated Other Comprehensive (Loss) Income (Details 2) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance beginning of the year	$ (15,330)	$ 6,899	$ 5,136
Other comprehensive gain (loss) before reclassification	4,026	(19,126)	7,640
Amounts reclassified from AOCI	(155)	(3,103)	(5,877)
Other comprehensive income	3,871	(22,229)	1,763
Balance at end of period	(11,459)	(15,330)	6,899
Net unrealized holding gain (loss) on AFS securities
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance beginning of the year	(11,472)	15,066	13,604
Other comprehensive gain (loss) before reclassification	9,170	(22,167)	7,640
Amounts reclassified from AOCI	(369)	(4,371)	(6,178)
Other comprehensive income	8,801	(26,538)	1,462
Balance at end of period	(2,671)	(11,472)	15,066
Net unrealized holding (loss) on securities transferred to held to maturity
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance beginning of the year	0	0	0
Other comprehensive gain (loss) before reclassification	(5,144)	0	0
Amounts reclassified from AOCI	0	0	0
Other comprehensive income	(5,144)	0	0
Balance at end of period	(5,144)	0	0
Net unrealized holding gain (loss) on retirement plans
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance beginning of the year	(3,858)	(8,167)	(8,468)
Other comprehensive gain (loss) before reclassification	0	3,041	0
Amounts reclassified from AOCI	214	1,268	301
Other comprehensive income	214	4,309	301
Balance at end of period	$ (3,644)	$ (3,858)	$ (8,167)

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Securities (Details 4) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Schedule of Available-for-sale Securities [Line Items]
Fair value, Less than 12 months	$ 316,263	$ 659,734
Unrealized losses, Less than 12 months	(2,550)	(24,817)
Fair value, 12 months or longer	296,680	7,932
Unrealized losses, 12 months or longer	(8,951)	(304)
Fair value, Total	612,943	667,666
Unrealized losses, Total	(11,501)	(25,121)
Securities Investment [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value, Less than 12 months	116,063	400,145
Unrealized losses, Less than 12 months	(1,588)	(17,918)
Fair value, 12 months or longer	225,665	112
Unrealized losses, 12 months or longer	(6,866)	(8)
Fair value, Total	341,728	400,257
Unrealized losses, Total	(8,454)	(17,926)
Residential Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value, Less than 12 months	200,200	259,589
Unrealized losses, Less than 12 months	(962)	(6,899)
Fair value, 12 months or longer	71,015	7,820
Unrealized losses, 12 months or longer	(2,085)	(296)
Fair value, Total	271,215	267,409
Unrealized losses, Total	(3,047)	(7,195)
Agency-backed [Member] | Residential Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value, Less than 12 months	137,693	137,265
Unrealized losses, Less than 12 months	(516)	(4,157)
Fair value, 12 months or longer	41,516	0
Unrealized losses, 12 months or longer	(1,039)	0
Fair value, Total	179,209	137,265
Unrealized losses, Total	(1,555)	(4,157)
CMO/Other MBS [Member] | Residential Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value, Less than 12 months	62,507	122,324
Unrealized losses, Less than 12 months	(446)	(2,742)
Fair value, 12 months or longer	29,499	7,820
Unrealized losses, 12 months or longer	(1,046)	(296)
Fair value, Total	92,006	130,144
Unrealized losses, Total	(1,492)	(3,038)
Federal agencies [Member] | Securities Investment [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value, Less than 12 months	6,153	261,547
Unrealized losses, Less than 12 months	(144)	(12,090)
Fair value, 12 months or longer	146,416	0
Unrealized losses, 12 months or longer	(5,159)	0
Fair value, Total	152,569	261,547
Unrealized losses, Total	(5,303)	(12,090)
State and municipal [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value, Less than 12 months	8,170
Unrealized losses, Less than 12 months	(58)
Fair value, 12 months or longer	12,809
Unrealized losses, 12 months or longer	(198)
Fair value, Total	20,979
Unrealized losses, Total	(256)
State and municipal [Member] | Securities Investment [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value, Less than 12 months		43,585
Unrealized losses, Less than 12 months		(2,033)
Fair value, 12 months or longer		112
Unrealized losses, 12 months or longer		(8)
Fair value, Total		43,697
Unrealized losses, Total		(2,041)
Trust preferred [Member] | Securities Investment [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value, Less than 12 months	3,907
Unrealized losses, Less than 12 months	(38)
Fair value, 12 months or longer	0
Unrealized losses, 12 months or longer	0
Fair value, Total	3,907
Unrealized losses, Total	(38)
Corporate bonds [Member] | Securities Investment [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value, Less than 12 months	97,833	95,013
Unrealized losses, Less than 12 months	(1,348)	(3,795)
Fair value, 12 months or longer	66,440	0
Unrealized losses, 12 months or longer	(1,509)	0
Fair value, Total	164,273	95,013
Unrealized losses, Total	$ (2,857)	$ (3,795)

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Earnings Per Common Share (Tables)

12 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Computation of basic and diluted earnings per share

The following is a summary of the calculation of earnings per share (“EPS”):

	For the year ended September 30,
	2014		2013		2012
Net income	$	27,678	$	25,254	$	19,888
Weighted average common shares outstanding for computation of basic EPS (1)	80,268,970		43,734,425		38,227,653
Common-equivalent shares due to the dilutive effect of stock options (2)	265,073		48,628		20,393
Weighted average common shares for computation of diluted EPS	80,534,043		43,783,053		38,248,046
Earnings per common share:
Basic	$	0.34	$	0.58	$	0.52
Diluted	0.34		0.58		0.52

(1) Includes earned ESOP shares.

(2) Represents incremental shares computed using the treasury stock method.

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Quarterly Results Of Operations (Unaudited)

12 Months Ended

Sep. 30, 2014

Quarterly Financial Information Disclosure [Abstract]

Quarterly Results Of Operations (Unaudited)

Quarterly Results of Operations (Unaudited)

The following is a condensed summary of quarterly results of operations for the fiscal years ended September 30, 2014 and 2013:

	First quarter			Second quarter		Third quarter		Fourth quarter
Year ended September 30, 2014
Interest and dividend income	$	52,711		$	61,325	$	65,761	$	67,109
Interest expense	6,835			7,297		7,310		7,476
Net interest income	45,876			54,028		58,451		59,633
Provision for loan losses	3,000			4,800		5,950		5,350
Non-interest income	9,148			12,415		13,471		12,286
Non-interest expense	72,974			46,723		44,904		43,780
(Loss) income before income tax	(20,950		)	14,920		21,068		22,789
Income tax (benefit) expense	(6,948		)	4,588		6,057		6,452
Net (loss) income	$	(14,002	)	$	10,332	$	15,011	$	16,337
Earnings per common share:
Basic	$	(0.20	)	$	0.12	$	0.18	$	0.20
Diluted	(0.20		)	0.12		0.18		0.19
Year ended September 30, 2013
Interest and dividend income	$	33,145		$	32,420	$	32,593	$	33,903
Interest expense	5,222			4,601		4,276		5,795
Net interest income	27,923			27,819		28,317		28,108
Provision for loan losses	2,950			2,600		3,900		2,700
Non-interest income	7,659			6,852		6,581		6,600
Non-interest expense	22,546			23,339		21,789		23,367
Income before income tax	10,086			8,732		9,209		8,641
Income tax expense	3,066			2,203		2,833		3,312
Net income	$	7,020		$	6,529	$	6,376	$	5,329
Earnings per common share:
Basic	$	0.16		$	0.15	$	0.15	$	0.12
Diluted	0.16			0.15		0.15		0.12

The Company incurred a net loss in the first fiscal quarter of 2014 due mainly to charges and asset write-downs associated with the Merger. The Company recognized charges of $22.2 million for asset write-downs, retention and severance compensation, a write-off of the naming rights to remaining book value of the Provident Bank Ballpark, all of which are included in other non-interest income on the income statement. The charge for asset write-downs was based on the Company’s intent to consolidate several office locations and financial centers. The Company recognized $9.1 million of Merger-related expenses, which included professional advisory fees, legal fees, a portion of change-in-control payments to Legacy Sterling executive officers, costs associated with changing signage at various office and financial center locations and other Merger-related items. In addition, the Company incurred a $2.7 million charge for the settlement of a portion of the Legacy Provident pension plan in December 2013.

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Condensed Parent Company Financial Statements

12 Months Ended

Sep. 30, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Parent Company Financial Statements

Condensed Parent Company Financial Statements

Set forth below are the condensed balance sheets of Sterling and the related condensed statements of income and cash flows:

	September 30,
	2014		2013
Assets:
Cash	$	23,369	$	56,230
Loan receivable from ESOP	—		6,437
Investment in Sterling National Bank	1,011,973		517,907
Investment in non-bank subsidiaries	3,587		3,271
Goodwill	18,970		—
Trade name	20,500		—
Other intangible assets, net	917		—
Other assets	528		1,184
Total assets	$	1,079,844	$	585,029
Liabilities:
Senior Notes	$	98,402	$	98,033
Other liabilities	20,304		4,130
Total liabilities	118,706		102,163
Stockholders’ equity	961,138		482,866
Total liabilities & stockholders’ equity	$	1,079,844	$	585,029

The table  below presents the condensed statement of income:

	For the year ended September 30,
	2014			2013			2012
Interest income	$	139		$	262		$	282
Dividend income on equity securities	—			22			30
Dividends from Sterling National Bank	22,500			—			6,000
Dividends from non-bank subsidiaries	750			1,600			500
Other	18			—			10
Interest expense	(6,265		)	(1,431		)	—
Non-interest expense	(5,841		)	(2,700		)	(1,838		)
Income tax benefit	3,431			898			87
Income (loss) before equity in undistributed earnings of subsidiaries	14,732			(1,349		)	5,071
Equity in undistributed (excess distributed) earnings of:
Sterling National Bank	12,590			27,174			13,739
Non-bank subsidiaries	355			(571		)	1,078
Net income	$	27,677		$	25,254		$	19,888

The table below presents the condensed statement of cash flows:

	For the year ended September 30,
	2014			2013			2012
Cash flows from operating activities:
Net income	$	27,677		$	25,254		$	19,888
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in (undistributed) excess distributed earnings of:
Sterling National Bank	(12,590		)	(27,174		)	(13,739		)
Non-bank subsidiaries	(355		)	571			(1,078		)
(Gain) on redemption of Subordinated Debentures	(712		)	—			—
Other adjustments, net	22,066			5,259			380
Net cash provided by operating activities	36,086			3,910			5,451
Cash flows from investing activities:
Purchase of securities	—			—			(105		)
Sales of securities	1,112			818			103
Investment in subsidiaries	(15,000		)	(45,000		)	(44,203		)
ESOP loan principal repayments	6,437			459			441
Net cash (used for) investing activities	(7,451		)	(43,723		)	(43,764		)
Cash flows from financing activities:
Net change in other short-term borrowings	(20,659		)	—			—
Redemption of Subordinated Debentures	(26,140		)	—			—
Senior Notes offering	—			97,946			—
Equity capital raise	—			—			46,000
Cash dividends paid	(17,677		)	(10,642		)	(9,100		)
Stock option transactions including RRP	2,980			1,758			910
Other equity transactions	—			265			527
Net cash (used for) provided by financing activities	(61,496		)	89,327			38,337
Net (decrease) increase in cash	(32,861		)	49,514			24
Cash at beginning of year	56,230			6,716			6,692
Cash at end of year	$	23,369		$	56,230		$	6,716

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Employee Benefit Plans and Stock-Based Compensation Plans (Details 11) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 3,409	$ 1,742	$ 797
Stock-based compensation expense, income tax benefit	914	542	188
Unrecognized stock-based compensation, stock options	962
Unrecognized stock-based compensation, non-vested stock awards/stock units	4,013
Total unrecognized stock-based compensation expense	4,975
Stock Options [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	901	695	521
Non-vested Stock Awards and Performance Units [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 2,508	$ 1,047	$ 276

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Acquisitions (Details 1) (Purchased credit impaired loans, USD $)	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Oct. 31, 2013
Purchased credit impaired loans
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Contractual principal balance at acquisition			$ 24,176,000
Principal not expected to be collected (non-accretable discount)			(10,927,000)
Expected cash flows at acquisition			13,249,000
Interest component of expected cash flows (accretable discount)			0
Fair value of acquired loans			13,249,000
Net interest income	198,776,000	180,030,000
Non-interest income	54,396,000	65,749,000
Non-interest expense	187,306,000	189,136,000
Net income	$ 44,460,000	$ 39,190,000
Basic earnings per share (in dollars per share)	$ 0.53	$ 0.47
Diluted earnings per share (in dollars per share)	$ 0.53	$ 0.47

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Stockholders' Equity (Tables)

12 Months Ended

Sep. 30, 2014

Stockholders' Equity Note [Abstract]

Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations

Fiscal year end actual and required capital ratios for the Company and the Bank were as follows:

					Regulatory requirements
	The Bank and the Company				Minimum capital adequacy				Classification as well- capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
September 30, 2014
Tier 1 leverage capital (to average assets):
Sterling National Bank	$	636,507	9.34	%	$	272,542	4.00	%	$	340,677	5.00	%
Sterling Bancorp	553,117		8.12		272,385		4.00		340,481		5.00
Tier 1 capital (to risk-weighted assets):
Sterling National Bank	636,507		11.94		213,176		4.00		319,763		6.00
Sterling Bancorp	553,117		10.33		214,102		4.00		321,153		6.00
Total capital (to risk-weighted assets):
Sterling National Bank	677,514		12.71		426,351		8.00		532,939		10.00
Sterling Bancorp	594,124		11.10		428,204		8.00		535,254		10.00
	Sterling National Bank only
September 30, 2013
Tier 1 leverage	$	363,274	9.33	%	$	155,670	4.00	%	$	194,587	5.00	%
Risk-based capital:
Tier 1	363,274		13.18		110,235		4.00		165,352		6.00
Total	392,376		14.24		220,469		8.00		275,587		10.00

Reconciliation of Stockholders' Equity to Bank Regulatory Capital

A reconciliation of the Company’s stockholders’ equity to its regulatory capital at September 30, 2014 and the Bank’s total stockholder’s equity to the Bank’s regulatory capital at September 30, 2014 and 2013 is as follows:

	The Company			The Bank
	September 30,			September 30,
	2014			2014			2013
Total GAAP stockholders’ equity	$	961,138		$	1,011,973		$	516,281
Disallowed goodwill and other intangible assets	(419,327		)	(386,766		)	(168,122		)
Net unrealized loss on available for sale securities	7,815			7,809			11,455
Disallowed servicing asset	(153		)	(153		)	(198		)
Net actuarial loss on defined benefit pension plans	3,644			3,644			3,858
Tier 1 risk-based capital	553,117			636,507			363,274
Allowance for loan losses and off-balance sheet commitments	41,007			41,007			29,102
Total risk-based capital	$	594,124		$	677,514		$	392,376

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Subsequent Events

12 Months Ended

Sep. 30, 2014

Subsequent Events [Abstract]

Subsequent Events (Unaudited)

Subsequent Events (Unaudited)

On November 5, 2014, the Company announced it had entered into a definitive merger agreement with Hudson Valley Holding Corp. (NYSE: HVB). In the merger, which is a stock-for-stock transaction valued at approximately $539,234 based on the closing price of Sterling common stock on November 4, 2014, Hudson Valley Holding Corp. shareholders will receive a fixed ratio of 1.92 shares of Sterling common stock for each share of Hudson Valley Holding Corp. common stock. Upon closing, Sterling shareholders will own approximately 69% of stock in the combined company and Hudson Valley Holding Corp. shareholders will own approximately 31%. On a pro forma combined basis, for the twelve months ended September 30, 2014, the companies had revenue of $363,217 and $21,962 in net income. Upon completion of the merger the combined company is expected to have $10,703,764 in assets, $6,551,482 in gross loans, and deposits of $8,071,799. The transaction, which has been approved by the boards of directors of both companies, is expected to close in the second calendar quarter of 2015. The transaction is subject to approval by shareholders from both companies, regulatory approval and other customary closing conditions.

The Company has engaged an independent third-party to assist management in estimating the fair value of the majority of the assets acquired and liabilities to be assumed. The Company will file a Current Report on Form 8-K (or an amendment to a prior report) no later than January 15, 2015 that will include historical and pro forma information regarding Hudson Valley Holding Corp. and the Company which is required in connection with the Merger

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Basis of Financial Statement Presentation and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Sep. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Consolidation

Merger with Sterling Bancorp

On October 31, 2013, Provident New York Bancorp (“Legacy Provident”) merged with Sterling Bancorp (“Legacy Sterling”). In connection with the merger, the following corporate actions occurred:

• Legacy Sterling merged with and into Legacy Provident. Legacy Provident was the accounting acquirer and the surviving entity.

• Legacy Provident changed its legal entity name to Sterling Bancorp and became a bank holding company and a financial holding company as defined by the Bank Holding Company Act of 1956, as amended (“Sterling” or the “Company”).

• Provident Bank converted to a national bank charter.

• Sterling National Bank merged into Provident Bank.

• Provident Bank changed its legal entity name to Sterling National Bank.

• Provident Municipal Bank merged into Sterling National Bank.

We refer to the transactions detailed above collectively as the “Merger.”

The consolidated financial statements include the accounts of Sterling; STL Holdings, Inc. (formerly PBNY Holdings, Inc.) which has an investment in Sterling Silver Title Agency L.P. (formerly PB Madison Title Agency L.P.), a company that provides title searches and title insurance for residential and commercial real estate; LandSave Development, LLC an inactive subsidiary, which was dissolved on September 30, 2014; Sterling Risk Management, Inc. (formerly Provident Risk Management, Inc., a captive insurance company); Sterling National Bank (the “Bank”) and the Bank’s wholly-owned subsidiaries. These subsidiaries included at September 30, 2014: (i) Sterling REIT, Inc. a real estate investment trust that holds a portion of the Company’s real estate loans; (ii) Provest Services Corp. I, which has invested in a low-income housing partnership; (iii) Provest Services Corp. II, which has engaged a third-party provider to sell mutual funds and annuities to the Bank’s customers and (iv) several limited liability companies which hold other real estate owned. Intercompany transactions and balances are eliminated in consolidation.

The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. Certain amounts from prior years have been reclassified to conform to the current fiscal year presentation. Reclassifications had no affect on prior year net income or stockholders’ equity.

Use of estimates

Use of estimates

The consolidated financial statements have been prepared in conformity with GAAP. In preparing the consolidated financial statements, the Company is required to make estimates and assumptions that affect the reported amounts of assets, liabilities, income and expense. Actual results could differ significantly from these estimates. An estimate that is particularly susceptible to significant near-term change is the allowance for loan losses, which is discussed below. Also subject to change are estimates involving goodwill impairment evaluations, mortgage servicing rights, benefit plans, deferred income taxes and fair values of financial instruments.

Cash Flows

Cash Flows

For purposes of reporting cash flows, cash equivalents include highly liquid, short-term investments such as overnight federal funds, as well as cash and deposits with other financial institutions. Net cash flows are reported for customer loan and deposit transactions and short-term borrowings with an original maturity of 90 days or less.

Long Term Assets

Long-Term Assets

Premises and equipment, core deposit and other intangible assets are reviewed annually for impairment or when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value.

Fair Values of Financial Instruments

Fair Values of Financial Instruments

Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. (See Note 17. “Fair Value Measurements”)

Adoption of New Accounting Standards

Adoption of New Accounting Standards

Accounting Standards Update (ASU) 2014-01 - Investments - Equity method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects was issued. This standard provides reporting guidance for entities that invest in qualified affordable housing projects through limited liability entities that are flow through entities for tax purposes. The amendments in this ASU eliminate the effective yield election and permit the Company to make an accounting policy election to account for its investment in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, the Company amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the statement of operations as a component of income tax expense. The amendments in this ASU should be applied retrospectively to all periods presented. The Company adopted this ASU in the quarter ended March 31, 2014, which coincided with the Company’s initial recognition of low income housing tax credits. The adoption of this ASU resulted in a $508 income tax benefit and a $520 expense associated with the amortization of the Company’s investment for the fiscal year ended September 30, 2014.

Recently Issued Accounting Standards Not Yet Adopted

Accounting Standards Update (“ASU”) 2014-14 Classification of Certain Government-Guaranteed Residential Mortgage Loans Upon Foreclosure. This standard provides guidance on how holders of certain government-guaranteed loans (e.g., mortgage loans guaranteed by the FHA or VA) should present such loans upon foreclosure. Specifically, the ASU provides that, upon foreclosure, government-guaranteed loans within the scope of the standard should be derecognized and re-recognized as a separate other receivable (i.e., a receivable from the government entity guaranteeing the loan). The standard does not require any new disclosures about such loans. ASU 2014-14 is effective for the Company for annual and interim periods beginning after December 15, 2014, and is not expected to have a material impact on our balance sheet or results of operations.

ASU 2014-11 Transfers and Servicing (topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. This standard amends the guidance in ASC 860 on accounting for certain repurchase agreements (“repos”). The standard (1) requires entities to account for repurchase-to-maturity transactions as secured borrowings, (2) eliminates accounting guidance on linked repurchase financing transactions, and (3) expands disclosure requirements related to certain transfers of financial assets that are accounted for as sales and certain transfers (specifically, repos, securities lending transactions, and repurchase-to-maturity transactions) that are accounted for as secured borrowings. This standard is effective for annual periods beginning after December 15, 2014 and is not expected to have a material impact on our balance sheet or results of operations.

ASU 2014-09 Revenue From Contracts With Customers. This standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is effective for annual reporting periods beginning after December 15, 2016. The Company is currently evaluating the impact this standard will have on its balance sheet and results of operations.

ASU 2014-04 Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40) - Reclassification of Residential Real Estate Collateralized Consumer Mortgage loans upon Foreclosure was issued. This standard provides clarification when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan should be removed from the balance sheet and other real estate owned recognized. These amendments clarify that when an in-substance foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan upon either: (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure, or (2) the borrower is conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. This standard was effective for the Company on October 1, 2014 and is not expected to have a material impact on our balance sheet or results of operations.

Securities

Securities

Securities include U.S. Treasury, U.S. Government Agency and Government Sponsored Agencies, municipal and corporate bonds, mortgage-backed securities, collateralized mortgage obligations and trust preferred securities.

The Company can classify its securities among three categories: held to maturity, trading, and available for sale. The Company determines the appropriate classification of the Company’s securities at the time of purchase.

Held to maturity securities are limited to debt securities for which there is the intent and the ability to hold to maturity. These securities are reported at amortized cost.

Trading securities are debt and equity securities held principally for the purpose of selling them in the near-term. These securities are reported at fair value, with unrealized gains and losses included in earnings. The Company does not engage in securities trading activities.

All other debt and marketable equity securities are classified as available for sale. These securities are reported at fair value, with unrealized gains and losses (net of the related deferred income tax effect) excluded from earnings and reported in a separate component of stockholders’ equity (accumulated other comprehensive income or loss). Available for sale securities include securities that the Company intends to hold for an indefinite period of time, such as securities to be used as part of the Company’s asset/liability management strategy or securities that may be sold to fund loan growth, in response to changes in interest rates, changes in prepayment risks, the need to increase capital, or similar factors.

Premiums and discounts on debt securities are recognized in interest income on a level yield basis over the period to maturity. Amortization of premiums and accretion of discounts on mortgage-backed securities are based on the estimated cash flows of the mortgage-backed securities, periodically adjusted for changes in estimated lives, on a level yield basis. The cost of securities sold is determined using the specific identification method.

Securities are evaluated for impairment at least quarterly, and more frequently when economic and market conditions warrant such an evaluation. For securities in an unrealized loss position, we consider the extent and duration of the unrealized loss, and the financial condition of the issuer. The Company also assesses whether it intends to sell, or is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either criteria regarding intent to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. If the Company does not expect to recover the entire amortized cost basis of the security, the Company does not intend to sell the security and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, the other than temporary impairment is separated into a) the amount representing the credit loss and b) the amount related to all other factors. The amount of other than temporary impairment related to credit loss is recognized in earnings while the amount related to other factors is recognized in other comprehensive income, net of applicable taxes. The cost basis of individual equity securities is written down to estimated fair value through a charge to earnings when declines in value below cost are considered to be other than temporary.

Loans Held For Sale

Loans Held For Sale

Mortgage loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value, as determined by outstanding commitments from investors. In the absence of commitments from investors, fair value is based on current investor yield requirements. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings.

Historically mortgage loans held for sale were generally sold with servicing rights retained. The carrying value of mortgage loans sold is reduced by the amount allocated to the value of the servicing rights which is its fair value. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold.

Servicing Rights

Servicing Rights

When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans.

Under the amortization measurement method, the Company subsequently measures servicing rights at fair value at each reporting date and records any impairment in value of servicing assets in earnings in the period in which the impairment occurs. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses.

Servicing fee income, which is reported on the income statement as other income, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan, and are recorded as income when earned.

Loans

Loans

Loans where Sterling has the intent and ability to hold for the foreseeable future or until maturity or payoff (other than loans held for sale) are reported at amortized cost less the allowance for loan losses. Interest income on loans is accrued on the unpaid principal balance.

A loan is placed on non-accrual status upon the earlier of (i) when Sterling determines that the borrower may likely be unable to meet contractual principal or interest obligations, or (ii) when payments are 90 days or more past due, unless well secured and in the process of collection. Accrual of interest ceases and, in general, uncollected past due interest is reversed and charged against current interest income. Interest payments received on non-accrual loans, including impaired loans, are not recognized as income unless warranted based on the borrower’s financial condition and payment record. Furthermore, negative tax escrow will be included in the unpaid principal for loans individually evaluated for impairment, as this is part of the customer’s legal obligation to the Company.

The Company defers nonrefundable loan origination and commitment fees, and certain direct loan origination costs, and amortizes the net amount as an adjustment of the yield over the estimated life of the loan. If a loan is prepaid or sold, the net deferred amount is recognized in the statement of income at that time. Interest and fees on loans include prepayment fees and late charges collected.

Federal Reserve Bank of New York and Federal Home Loan Bank Stock

Federal Reserve Bank of New York and Federal Home Loan Bank Stock

As a member of the Federal Reserve Bank of New York (“FRB”) and the Federal Home Loan Bank of New York (“FHLB”), the Bank is required to hold a certain amount of FRB and FHLB common stock. This stock is a non-marketable equity security and, is reported at cost.

Allowance for Loan Losses

Allowance for Loan Losses

The allowance for loan losses is a reserve established through a provision for loan losses charged to expense, which represents management’s best estimate of probable incurred credit losses inherent in the loan portfolio. The allowance for loan losses is a critical accounting estimate and requires substantial judgment of management. The allowance for loan losses includes allowance allocations calculated in accordance with ASC Subtopic 450-20, “Loss Contingencies” and ASC Subtopic 310-35-2, “Loan Impairment.” The level of the allowance reflects management’s continuing evaluation of loan loss experience, specific credit risks, current loan portfolio quality, industry and loan type concentrations, economic and regulatory conditions and unidentified losses inherent in the loan portfolios, as well as trends in the foregoing. The Company analyzes loans by two broad segments: real estate secured loans and loans that are either unsecured or secured by other collateral.

The classes considered real estate secured are: residential mortgage loans; commercial real estate (“CRE”) loans; business banking CRE; multi-family loans; acquisition, development and construction (“ADC”) loans; homeowner loans, and home equity lines of credit. The classes considered unsecured or secured by other than real estate collateral are: commercial & industrial (“C&I”) loans; payroll finance loans, warehouse lending; factored receivables; equipment finance loans; business banking C&I loans and consumer loans. In all segments or classes, significant loans are reviewed for impairment once they are past due 90 days or more or are classified substandard or doubtful. Generally the Company considers a homogeneous residential mortgage or home equity line of credit to be significant if the Company’s investment in the loan is greater than $500. If a loan is deemed to be impaired in one of the real estate secured segment, it is generally considered collateral dependent. If the value of the collateral securing a collateral dependent impaired loan is less than the loan’s carrying value, a charge-off is recognized equal to the difference between the appraised value and the book value of the loan. Additionally, impairment reserves are recognized for estimated costs to hold and liquidate and for a 10% discount on the appraisal value. The range for costs to hold and liquidate is 12-22% for CRE, business banking CRE and ADC loans and is 7-13% for homeowner loans, home equity lines of credit, and residential mortgage loans. Impaired loans in the real estate secured segments are re-appraised using a summary or drive-by appraisal report every six to nine months.

For loans in the business banking C&I classwe charge-off the full amount of the loan when it becomes 90 days or more past due, or earlier in the case of bankruptcy, after giving effect to any cash or marketable securities pledged as collateral for the loan. For other classes of C&I loans, we prepare a cash flow projection, and charge-off the difference between the net present value of the cash flows discounted at the effective note rate and the carrying value of the loan, and generally recognize a 10% impairment reserve to account for the potential imprecision of our estimates. However, on most of these cases receipt of future cash flows is too unreliable to be considered probable, resulting in the charge-off of the entire balance of the loan. For unsecured consumer loans, charg0- offs are recognized once the loan is 90 to 120 days or more past due or the borrower files for bankruptcy protection.

Subsequent recoveries, if any, are credited to the allowance for loan losses. The allowance for loan losses consists of amounts specifically allocated to non-performing loans and other criticized or classified loans (if any), as well as allowances determined for the pass rated loans in each major loan category. After we establish an allowance for loan losses for loans that are known to be non-performing, criticized or classified, we calculate a percentage to apply to the remaining loan portfolio to estimate the probable incurred losses inherent in that portion of the portfolio. These percentages are determined by management, based on historical loss experience for the applicable loan class, and are adjusted to reflect our evaluation of:

•levels of, and trends in, delinquencies and non-accruals;

•trends in volume and terms of loans;

•effects of any changes in lending policies and procedures;

•experience, ability, and depth of lending management and staff;

•national and local economic trends and conditions;

• concentrations of credit by such factors as location, industry, inter-relationships, and borrower; and for commercial loans, trends in risk ratings.

Commercial real estate loans subject us to the risks that the property securing the loan may not generate sufficient cash flow to service the debt or the borrower may use the cash flow for other purposes. In addition, if necessary, the foreclosure process may be slow and properties may deteriorate in the process. The market values are also subject to a wide variety of factors, including general economic conditions, industry specific factors, environmental factors, interest rates and the availability and terms of credit.

Commercial business lending presents a risk because repayment depends on the successful operation of the business which is subject to a wide range of risks and uncertainties. In addition, the ability to successfully liquidate collateral, if any, is subject to a variety of risks because we must gain control of assets used in the borrower’s business before foreclosing which we cannot be assured of doing, and the value in a foreclosure sale or other means of liquidation is uncertain.

Acquisition, development and construction (“ADC”) lending is considered higher risk and exposes us to greater credit risk than permanent mortgage financing. The repayment of ADC loans depends upon the sale of the property to third parties or the availability of permanent financing upon completion of all improvements. In the event we make a land acquisition loan on property that is not yet approved for the planned development, there is the risk that approvals will not be granted or will be delayed. These events may adversely affect the borrower and the collateral value of the property. Development and construction loans also expose us to the risk that improvements will not be completed on time or in accordance with specifications and projected costs. In addition, the ultimate sale or rental of the property may not occur as anticipated. All of these factors are considered as part of the underwriting, structuring and pricing of the loan. We have deemphasized this type of lending.

When we evaluate residential mortgage loans and home equity loans we weigh both the credit capacity of the borrower and the collateral value of the home. If unemployment or underemployment increase, the credit capacity of underlying borrowers will decrease, which increases our risk. Similarly, as we obtain a mortgage on the property, if home prices decline, we are exposed to risk in both our first mortgage and equity lending programs due to declines in the value of our collateral. We are also exposed to risk because the time to foreclose is significant and has become longer under current market conditions.

Troubled Debt Restructuring

Troubled Debt Restructuring

Troubled debt restructuring (“TDR”) is a formally renegotiated loan in which the Bank, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to the borrower that would not have been granted to the borrower otherwise. Not all loans that are restructured as a TDR are classified as non-accrual before the restructuring occurs. Restructured loans can convert from non-accrual to accrual status when said loans have demonstrated performance, generally evidenced by six months of consistent payment performance in accordance with the restructured terms, or by the presence of other significant items.

Premises and Equipment

Premises and Equipment

Land is reported at cost, while premises and equipment are reported at cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets, which range from three years for equipment and 40 years for premises. Leasehold improvements are amortized on a straight-line basis over the terms of the respective leases, including renewal options, or the estimated useful lives of the improvements, whichever is shorter. Routine holding costs are charged to expense as incurred, while significant improvements are capitalized. The Company recognizes an impairment charge based on the excess of the carrying amount of assets (generally assets associated with a financial center) over the fair value of the assets. Fair value is determined by third-party valuations and evaluations prepared by management.

Goodwill, Trade Names and Other Intangible Assets

Goodwill, Trade Names and Other Intangible Assets

Goodwill resulting from business combinations represents the excess of the purchase price over the fair value of the net assets of businesses acquired. Goodwill and trade names acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually. Goodwill and trade name are the only intangible assets with an indefinite life on our balance sheet.

The Company accounts for goodwill, trade names and other intangible assets in accordance with GAAP, which, in general, requires that goodwill and trade names not be amortized, but rather that they be tested for impairment at least annually at the reporting unit level. The Company has the option to first perform a qualitative assessment to test goodwill for impairment on a reporting-unit-by-reporting-unit basis. If, after performing the qualitative assessment, the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company will perform the two-step process described below:

1. Identify potential impairments by comparing the fair value of a reporting unit to its carrying amount, including goodwill. Goodwill is not considered impaired as long as the fair value of the reporting unit is greater than its carrying value. The second step is only required if a potential impairment to goodwill is identified in step one.

2. Compare the implied fair value of goodwill to its carrying amount, where the implied fair value of goodwill is computed on a residual basis, that is, by subtracting the sum of the fair values of the individual asset categories (tangible and intangible) from the indicated fair value of the reporting unit as determined under step one. If the carrying amount of goodwill exceeds its implied fair value, an impairment loss is recognized. That loss is equal to the carrying amount of goodwill that is in excess of its implied fair value, and it must be presented as a separate line item on financial statements.

At September 30, 2014, the Company assessed goodwill for impairment using qualitative factors and concluded the two-step process was unnecessary.

Core deposit intangibles recorded in acquisitions are amortized to expense using an accelerated method over their estimated lives of 8 to 10 years. Non-compete agreements are amortized on a straight line basis over their estimated life. Prior to March 31, 2014, intangibles related to the naming rights on Provident Bank Ball Park were amortized over 10 years on a straight-line basis. Impairment losses on intangible assets are charged to expense, if and when they occur.

Other Real Estate Owned

Other Real Estate Owned

Real estate properties acquired through loan foreclosures are recorded initially at estimated fair value, less expected sales costs, with any resulting write-down charged to the allowance for loan losses. Other real estate owned also includes the fair value of the Bank’s financial centers that are held for sale. Any write-down associated with the transfer of a financial center from premises and equipment to other real state owned was included as a charge to other non-interest income in the income statement. Subsequent valuations of other real estate owned are performed by management, and the carrying amount of a property is adjusted by a charge to expense to reflect any subsequent declines in estimated fair value. Fair value estimates are based on recent appraisals and other available information. Routine holding costs are charged to expense as incurred, while significant improvements are capitalized. Gains and losses on sales of real estate owned properties are recognized upon disposition.

Securities Repurchase Agreements

Securities Repurchase Agreements

In securities repurchase agreements, the Company transfers securities to a counterparty under an agreement to repurchase the identical securities at a fixed price on a future date. These agreements are accounted for as secured financing transactions since the Company maintains effective control over the transferred securities and the transfer meets other specified criteria. Accordingly, the transaction proceeds are recorded as borrowings and the underlying securities continue to be carried in the Company’s investment securities portfolio. Disclosure of the pledged securities is made in the consolidated balance sheets if the counterparty has the right by contract to sell or re-pledge such collateral.

Income Taxes

Income Taxes

Net deferred taxes are recognized for the estimated future tax effects attributable to “temporary differences” between the financial statement carrying amounts and the tax bases of existing assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax laws or rates is recognized in income tax expense in the period that includes the enactment date of the change.

A deferred tax liability is recognized for all temporary differences that will result in future taxable income. A deferred tax asset is recognized for all temporary differences that will result in future tax deductions, subject to reduction of the asset by a valuation allowance in certain circumstances. This valuation allowance is recognized if, based on an analysis of available evidence, we determine that it is more likely than not that some portion, or all of the deferred tax asset will not be realized.

The valuation allowance is subject to ongoing adjustment based on changes in circumstances that affect management’s judgment about the realizability of the deferred tax asset. Adjustments to increase or decrease the valuation allowance are charged or credited, respectively, to income tax expense. The Company recognizes interest and/or penalties related to income tax matters in income tax expense.

The Company evaluates uncertain tax positions in a two step process. The first step is recognition, which requires a determination of whether it is more likely than not that a tax position will be sustained upon examination. The second step is measurement. Under the measurement step, a tax position that meets the more likely than not recognition threshold is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more likely than not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. A previously recognized tax position that no longer meets the more likely than not recognition threshold should be derecognized in the first subsequent financial reporting period in which the threshold is no longer met. The Company did not have any such position as of September 30, 2014. (See Note 10 “Income Taxes”).

Bank Owned Life Insurance (BOLI)

Bank Owned Life Insurance (BOLI)

The Company owns life insurance policies (purchased and acquired) on certain officers and key executives. Bank owned life insurance is recorded at its cash surrender value (or the amount that can be realized).

Stock-Based Compensation Plans

Stock-Based Compensation Plans

Compensation expense for stock options, non-vested stock awards/stock units is based on the fair value of the award on the measurement date, which is the date of grant. The expense is recognized ratably over the service period of the award. The fair value of stock options is estimated using a Black-Scholes valuation model. the fair value of non-vested stock awards/stock units is generally the market price of the Company’s common stock on the date of grant.

Earnings Per Share

Earnings Per Share

Basic earnings per share (“EPS”) is computed by dividing net income applicable to common stock by the weighted average number of common shares outstanding during the period.

Diluted EPS is computed in a similar manner, except that the weighted average number of common shares is increased to include incremental shares (computed using the treasury stock method) that would have been outstanding if all potentially dilutive stock options were exercised and unvested restricted stock became vested during the periods. For purposes of computing both basic and diluted EPS, outstanding shares include earned ESOP shares.

Segment Information

Segment Information

Public companies are required to report certain financial information about significant revenue-producing segments of the business for which such information is available and utilized by the chief operating decision maker. Substantially all of the Company’s operations occur through the Bank and involve the delivery of loan and deposit products to customers. Management makes operating decisions and assesses performance based on an ongoing review of its banking operation, which constitutes the Company’s only operating segment for financial reporting purposes.

Loss Contingencies

Loss Contingencies

Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. The Company does not believe there are such matters that will have a material effect on the financial statements.

Derivatives

Derivatives

At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company’s intentions and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), or (3) an instrument with no hedging designation (“stand-alone derivative”). For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same period during which the hedged transaction affects earnings. For both types of hedges, changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as non-interest income. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged.

The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended.

When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as non-interest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings.

Loan Commitments and Related Financial Instruments

Loan Commitments and Related Financial Instruments

Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. 

Employee Benefit Plans

The Company’s policy is to invest the Plan assets in a prudent manner for the purpose of providing benefit payments to participants and offsetting reasonable expenses of administration. Historically, the Company’s investment strategy was designed to provide a total return that, over the long-term, placed a strong emphasis on the preservation of capital and compliance with applicable regulations and laws. Management intends to terminate the Plan in fiscal 2015 subject to obtaining required approvals from the Internal Revenue Service and other regulators. Therefore, the investment allocation of Plan assets was shifted in fiscal 2014 to a liability driven investment strategy which is more heavily weighted towards long-term fixed income assets with a similar duration profile to the Plan liabilities. As of September 30, 2014, the majority of the Plan assets were invested in funds specifically designed for liability driven investment strategies and had a weighted average expected rate of return of 4.0%.

The Plan’s investment policy prohibits the direct investment in real estate but allows the Plan’s mutual funds to include a small percentage of real estate related investments. The investment strategy utilizes asset allocation as a principal determinant for establishing an appropriate risk profile.

XML

Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2014		Sep. 30, 2013		Sep. 30, 2012
Cash flows from operating activities:
Net income	$ 27,678		$ 25,254		$ 19,888
Adjustments to reconcile net income to net cash provided by operating activities
Provisions for loan losses	19,100		12,150		10,612
(Gain) loss on other real estate owned	(1,208)		1,285		694
(Gain) on redemption of Subordinated Debentures	(712)		0		0
Depreciation of premises and equipment	6,507		4,243		4,746
Impairment of premises and equipment	11,043		0		0
Amortization of intangibles	9,408		1,296		1,245
Amortization of low income housing tax credit	520		0		0
Net gain on sale of securities	(641)		(7,391)		(10,452)
Net gains on loans held for sale	(8,086)		(1,979)		(1,897)
(Gain) loss on sale of premises and equipment	(93)		75		(75)
Accretion of premiums on borrowings (includes calls on borrowings)	3,176		2,068		(1,006)
Change in unamortized acquisition costs and premiums	1,028		1,050		0
Accretion of premiums on borrowings (includes calls on borrowings)	(446)		87		(67)
Amortization of payment fees on restructured borrowings	1,302		1,466		1,459
ESOP and restricted stock expense	2,803		1,544		667
Stock option compensation expense	901		695		521
Originations of loans held for sale	(462,030)		(85,657)		(80,579)
Proceeds from sales of loans held for sale	483,622		94,130		79,147
Increase in cash surrender value of bank owned life insurance	(3,198)		(1,998)		(2,050)
Deferred income tax (benefit) expense	(3,507)		719		(64)
Other adjustments (principally net changes in other assets and other liabilities)	40,497		(26,413)		2,237
Net cash provided by operating activities	127,664		22,624		25,026
Cash flows from investing activities:
Available for sale	(407,438)		(490,160)		(679,553)
Held to maturity	(172,899)		(169,320)		(95,157)
Proceeds from maturities, calls and other principal payments on securities
Available for sale	163,199		168,771		174,497
Held to maturity	31,227		55,866		63,037
Proceeds from sales of securities available for sale	529,107		339,123		344,431
Proceeds from sales of securities available for sale	0	[1]	1,187	[1]	0	[1]
Loan originations	(659,013)		(310,615)		(226,616)
Proceeds from sale of FHLB stock, net	(34,093)		(5,063)		(620)
Proceeds from sales of other real estate owned	9,645		4,730		3,468
Purchases of premises and equipment	(2,584)		(2,355)		(1,853)
Proceeds from sale of Hudson Valley Investment Advisors	0		4,738		0
Proceeds from the sale of fixed assets	310		0		75
Purchase low income housing tax credit	(1,966)		0		0
Cash received from Gotham acquisition	277,798		0		126,818
Net cash provided by (used in) investing activities	(266,707)		(403,098)		(291,473)
Cash flows from financing activities
Net increase in transaction, savings and money market deposits	301,028		(29,503)		499,340
Net decrease in time deposits	(261,858)		(119,354)		(53,786)
Net decrease in short-term borrowings	103,000		91,528		(5,000)
Gross repayments of long-term borrowings	147,506		24,783		(5,244)
Net (decrease) in repurchase agreements and other short-term borrowings	(37,177)		0		0
Redemption of Subordinated Debentures	(26,140)		0		0
Payments of pre-payment fees on FHLBNY advances	0		0		(278)
Repayment of senior unsecured note	0		0		(51,499)
Net proceeds from Senior Notes	0		97,946		0
Net (decrease) increase in mortgage escrow funds	(8,152)		727		2,218
Proceeds from Stock Options Exercised	2,980		62		102
Other stock-based compensation transactions	62		35		164
Capital raise	0		0		46,000
Cash dividends paid	(17,677)		(10,642)		(9,100)
Net cash provided by (used in) financing activities	203,572		55,582		422,917
Net increase (decrease) in cash and cash equivalents	64,529		(324,892)		156,470
Cash and cash equivalents at beginning of year	113,090		437,982		281,512
Cash and cash equivalents at end of year	177,619		113,090		437,982
Supplemental cash flow information:
Interest payments	29,419		18,831		18,447
Income tax payments	12,473		4,475		1,873
Loans transferred to other real estate owned	2,542		5,634		6,148
Securities purchases settled in subsequent periods	0		0		41,758
Dividends declared, not yet paid	0		2,661		0
Non-cash assets acquired:
Investments available for sale	233,190		0		54,994
Securities held to maturity	374,721		0		0
Loans held for sale	30,341		0		0
Total loans, net	1,698,108		0		205,453
Loans FHLB Stock	7,680		0		1,045
Accrued interest receivable	6,590		0		417
Goodwill	225,809		0		5,535
Trade name	20,500		0		0
Core deposit intangibles	20,089		0		4,818
Bank owned life insurance	55,374		0		0
Premises and equipment, net	23,594		0		490
Other real estate owned	5,815		0		0
Other assets	20,933		0		1,793
Total non-cash assets acquired	2,722,744		0		274,545
Liabilities assumed:
Deposits	2,297,190		0		368,902
FHLB and other borrowings	100,619		0		30,784
Other borrowings	62,465		0		0
Subordinated debentures	26,527		0		0
Other liabilities	55,960		0		1,677
Total liabilities assumed	2,542,761		0		401,363
Net non-cash assets (liabilities) acquired	$ 179,983		$ 0		$ (126,818)

[1] (1) During the fiscal year ended September 30, 2013, the Company sold held to maturity securities after the Company had already collected at least 85% of the principal balance outstanding at acquisition.

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Acquisitions (Tables)

12 Months Ended

Sep. 30, 2014

Business Combinations [Abstract]

Schedule of recognized amounts of identifiable assets acquired and liabilities assumed

The table below summarizes the amounts recognized as of the Merger date for each major class of assets acquired and liabilities assumed, the estimated fair value adjustments and the amounts recorded in the Company’s financial statements at fair value at the Merger date:

Consideration paid through Sterling Bancorp common stock issued to Legacy Sterling shareholders $ 457,781

	Legacy Sterling carrying value			Fair value adjustments				As recorded at acquisition
Cash and cash equivalents	$	277,798		$	—			$	277,798
Investment securities	613,154			(5,243		)	(a)	607,911
Loans held for sale	30,341			—				30,341
Loans	1,704,801			(6,693		)	(b)	1,698,108
Federal Reserve Bank stock	7,680			—				7,680
Bank owned life insurance	55,374			—				55,374
Premises and equipment	21,293			2,301			(c)	23,594
Accrued interest receivable	6,590			—				6,590
Core deposit and other intangibles	—			20,089			(d)	20,089
Trade name intangible	—			20,500			(e)	20,500
Other real estate owned	1,720			4,095			(f)	5,815
Other assets	40,877			(19,944		)	(g)	20,933
Deposits	(2,296,713		)	(477		)	(h)	(2,297,190		)
FHLB borrowings	(100,346		)	(273		)	(i)	(100,619		)
Other borrowings	(62,465		)	—				(62,465		)
Subordinated Debentures	(25,774		)	(753		)	(j)	(26,527		)
Other liabilities	(60,462		)	4,502			(k)	(55,960		)
Total identifiable net assets	$	213,868		$	18,104			$	231,972
Goodwill recorded in the Merger								225,809
Goodwill at September 30, 2013								163,117
Goodwill at September 30, 2014								$	388,926

Explanation of certain fair value related adjustments:

(a) Represents the fair value adjustment on investment securities held to maturity.

(b) Represents the elimination of Legacy Sterling’s allowance for loan losses and an adjustment of the amortized cost of loans to estimated fair value, which includes an interest rate mark and credit mark. Gross loans acquired were $1,723,447; of the acquired loans, $1,699,271 were not considered purchased credit impaired and we recorded a fair value adjustment of $14,440.

(c) Represents an adjustment to reflect the fair value of leasehold improvements.

(d) Represents intangible assets recorded to reflect the fair value of core deposits and below market rent on leased premises. The core deposit asset was recorded as an identifiable intangible asset and will be amortized on an accelerated basis over the estimated average life of the deposit base. The below market rent intangible asset will be amortized on a straight-line basis over the remaining term of the leases.

(e) Represents the estimated fair value of Legacy Sterling’s trade name. This intangible asset will not be amortized and will be reviewed at least annually for impairment.

(f) Represents an adjustment to an acquired property which Legacy Sterling utilized as a financial center and recorded as premises and equipment. The Company included this asset in OREO as it was held for sale. This asset was sold during the fiscal year ended September 30, 2014.

(g) Consists primarily of adjustments in net deferred tax assets resulting from the fair value adjustments related to the acquired assets, liabilities assumed and identifiable intangibles recorded.

(h) Represents the fair value adjustment on deposits as the weighted average interest rate of deposits assumed exceeded the cost of similar funding available in the market at the time of the Merger.

(i) Represents the fair value adjustment on FHLB borrowings as the weighted average interest rate of FHLB borrowings assumed exceeded the cost of similar funding available in the market at the time of the Merger.

(j) Represents the fair value adjustment on subordinated debentures as the weighted average interest rate of the debentures assumed exceeded the cost of similar debt funding available in the market at the time of the Merger.

(k) Represents the fair value of other liabilities assumed at the Merger date.

Purchased credit impaired loans

The impaired loans acquired in the Merger as of October 31, 2013 were accounted for in accordance with ASC Topic 310-30 Accounting for Certain Loans or Debt Securities Acquired in a Transfer (“ASC 310-30”) and were comprised of collateral dependent loans with deteriorated credit quality as follows:

	ASC 310-30 loans
Contractual principal balance at acquisition	$	24,176
Principal not expected to be collected (non-accretable discount)	(10,927		)
Expected cash flows at acquisition	13,249
Interest component of expected cash flows (accretable discount)	—
Fair value of acquired loans	$	13,249

Schedule of proforma information

Furthermore, the unaudited pro forma information does not reflect management’s estimate of any revenue enhancement opportunities or anticipated potential cost savings.

	Pro forma for the
	fiscal year ended September 30,
	2014		2013
Net interest income	$	198,776	$	180,030
Non-interest income	54,396		65,749
Non-interest expense	187,306		189,136
Net income	44,460		39,190
Pro forma earnings per share:
Basic	$	0.53	$	0.47
Diluted	0.53		0.47

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Deposits (Details Textual) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Deposits [Abstract]
Municipal deposits	$ 992,761	$ 757,065
Certificates of Deposits, $100,000 or More	$ 290,483	$ 104,225

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Fair value measurements (Details Textual) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized cost	$ 1,115,458	$ 973,709
Changes in fair value recognized on provisions on loans held by the Company	905	2,726
Other real estate owned	7,580	6,022
Changes in fair value recognized through income for foreclosed assets held by the Company	224	1,978
Significant Unobservable Inputs Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net	4,758,366	2,422,824
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net	36,208	35,228
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage-backed securities-residential	2,869	3,613
Privately issued collateralized mortgage obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized cost	2,866
Privately issued collateralized mortgage obligations [Member] | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage-backed securities-residential	2,869	3,613
Mortgage-backed securities, percent of portfolio	0.17%
Market Approach Valuation Technique [Member] | Commercial Real Estate [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net	$ 2,396

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Income Taxes (Tables)

12 Months Ended

Sep. 30, 2014

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense for the periods indicated consists of the following:

	For the year ended September 30,
	2014			2013		2012
Current tax expense:
Federal	$	11,613		$	9,146	$	5,538
State	1,598			1,549		685
Total current tax expense	13,211			10,695		6,223
Deferred tax (benefit) expense:
Federal	(2,745		)	522		(261		)
State	(314		)	197		197
Total deferred tax (benefit) expense	(3,059		)	719		(64		)
Total income tax expense	$	10,152		$	11,414	$	6,159

Schedule of Effective Income Tax Rate Reconciliation

Actual income tax expense differs from the tax computed based on pre-tax income and the applicable statutory Federal tax rate for the following reasons:

	For the year ended September 30,
	2014			2013			2012
Tax at Federal statutory rate of 35%	$	13,241		$	12,833		$	9,116
State and local income taxes, net of Federal tax benefit	834			1,135			573
Tax-exempt interest, net of disallowed interest	(3,824		)	(2,192		)	(2,448		)
BOLI income	(1,110		)	(699		)	(718		)
Non-deductible acquisition related costs	712			416			418
Low income housing tax credits	(165		)	—			—
Other, net	464			(79		)	(782		)
Actual income tax expense	$	10,152		$	11,414		$	6,159
Effective income tax rate	26.8		%	31.1		%	23.6		%

Schedule of Deferred Tax Assets and Liabilities

The following table presents the Company’s deferred tax position at September 30, 2014 and 2013:

	September 30,
	2014		2013
Deferred tax assets:
Allowance for loan losses	$	17,272	$	11,809
Deferred compensation	649		798
Other accrued compensation and benefits	5,418		1,497
Accrued post retirement expense	2,705		1,441
Deferred rent	—		1,059
Intangible assets	2,439		—
Other comprehensive loss (securities)	5,777		7,844
Other comprehensive loss (defined benefit plans)	2,371		2,638
Depreciation of premises and equipment	433		—
State NOL carryforward	1,431		—
Other	3,511		2,172
Total deferred tax assets	42,006		29,258
Deferred tax liabilities:
Undistributed earnings of subsidiary not consolidated for tax return purposes (income from REITs)	9,303		4,483
Prepaid pension costs	10,579		3,758
Purchase accounting adjustments	16,056		1,057
Depreciation and lease adjustments	—		2,686
Deferred rent	163		—
Intangibles amortization	—		112
Other	2,557		2,207
Total deferred tax liabilities	38,658		14,303
Net deferred tax asset	$	3,348	$	14,955

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Basis of Financial Statement Presentation and Summary of Significant Accounting Policies Premises and Equipment (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Sep. 30, 2014
Minimum [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, useful life	3 years
Maximum [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, useful life	40 years
Other Non-interest Expense [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment impairment charges	$ 9.3

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Loans (Details 6) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Financing Receivable, Modifications [Line Items]
Current loans	$ 17,138	$ 23,754
30-59 days past due	346	0
60-89 days past due	169	0
90 days past due	0	141
Non- accrual	11,944	2,199
Total	29,597	26,094
Allowance for loan losses, Current loans	409	438
Allowance for loan losses, 30-59 days past due	0	0
Allowance for loan losses, 60-89 days past due	31	0
Allowance for loan losses, 90 plus days past due	0	0
Allowance for loan losses, Non-accrual	451	439
Allowance for loan losses, Total	891	877
Commercial & industrial
Financing Receivable, Modifications [Line Items]
Current loans	275	1,843
30-59 days past due	0	0
60-89 days past due	0	0
90 days past due	0	141
Non- accrual	1,618	0
Total	1,893	1,984
Equipment financing
Financing Receivable, Modifications [Line Items]
Current loans	435
30-59 days past due	0
60-89 days past due	0
90 days past due	0
Non- accrual	0
Total	435
Commercial real estate
Financing Receivable, Modifications [Line Items]
Current loans	4,838	5,305
30-59 days past due	0	0
60-89 days past due	0	0
90 days past due	0	0
Non- accrual	447	0
Total	5,285	5,305
Acquisition, development & construction
Financing Receivable, Modifications [Line Items]
Current loans	5,732	14,190
30-59 days past due	0	0
60-89 days past due	0	0
90 days past due	0	0
Non- accrual	6,817	151
Total	12,549	14,341
Residential mortgage
Financing Receivable, Modifications [Line Items]
Current loans	5,858	2,416
30-59 days past due	346	0
60-89 days past due	169	0
90 days past due	0	0
Non- accrual	2,841	1,792
Total	9,214	4,208
Consumer
Financing Receivable, Modifications [Line Items]
Current loans	0	0
30-59 days past due	0	0
60-89 days past due	0	0
90 days past due	0	0
Non- accrual	221	256
Total	$ 221	$ 256

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Consolidated Statements of Financial Condition (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
ASSETS
Cash and due from banks	$ 177,619	$ 113,090
Securities
Available-for-sale Securities	1,110,813	954,393
Held to maturity, at amortized cost (fair value of $587,838 and $250,896 in 2014 and 2013, respectively)	579,075	253,999
Total securities	1,689,888	1,208,392
Loans held for sale	17,846	1,011
Gross loans	4,760,438	2,412,898
Allowance for loan losses	(40,612)	(28,877)
Total loans, net	4,719,826	2,384,021
Federal Home Loan Bank (“FHLB”) stock, at cost	66,085	24,312
Accrued interest receivable	19,667	11,698
Premises and equipment, net	43,286	36,520
Goodwill	388,926	163,117
Core deposit and other intangible assets	45,278	5,891
Bank owned life insurance	119,486	60,914
Other real estate owned	7,580	6,022
Other assets	41,900	34,184
Total assets	7,337,387	4,049,172
LIABILITIES:
Deposits	5,298,654	2,962,294
FHLB and other borrowings	795,028	462,953
Other borrowings (federal funds purchased and repurchase agreements)	45,639	0
Senior notes	98,402	98,033
Mortgage escrow funds	4,494	12,646
Other liabilities	134,032	30,380
Total liabilities	6,376,249	3,566,306
Commitments and Contingent liabilities
STOCKHOLDERS’ EQUITY:
Preferred stock (par value $0.01 per share; 10,000,000 shares authorized; none issued or outstanding)	0	0
Common stock (par value $0.01 per share; 190,000,000 shares authorized; 91,246,024 and 52,188,056 issued for 2014 and 2013, respectively; 83,628,267 and 44,351,046 shares outstanding in 2014 and 2013, respectively)	912	522
Additional paid-in capital	860,564	403,816
Unallocated common stock held by employee stock ownership plan (“ESOP”); 0 and 549,262 unallocated shares outstanding in 2014 and 2013, respectively	0	(5,493)
Treasury stock, at cost (7,617,757 shares in 2014 and 7,837,010 shares in 2013)	(86,339)	(88,538)
Retained earnings	197,460	187,889
Accumulated other comprehensive (loss), net of tax (benefit) of ($8,470) in 2014 and ($10,482) in 2013	(11,459)	(15,330)
Total stockholders’ equity	961,138	482,866
Total liabilities and stockholders’ equity	$ 7,337,387	$ 4,049,172

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Off-Balance-Sheet Financial Instruments (Tables)

12 Months Ended

Sep. 30, 2014

Off-Balance-Sheet Financial Instruments [Abstract]

Schedule of off-balance-sheet financial instruments

The contractual or notional amounts of these instruments, which reflect the extent of the Company’s involvement in particular classes of off-balance sheet financial instruments, are summarized as follows:

	September 30,
	2014		2013
Loan origination commitments	$	213,793	$	171,032
Unused lines of credit	306,482		207,201
Letters of credit	97,468		35,052

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Employee Benefit Plans And Stock-Based Compensation Plans (Details 7) (Other Post retirement Benefit Plans [Member])	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Defined Benefit Plan Disclosure [Line Items]
Medical trend rate next year	4.50%	4.50%
Ultimate trend rate	4.50%	4.50%
Discount rate		4.20%
Discount rate used to value periodic cost		4.10%
Minimum [Member]
Defined Benefit Plan Disclosure [Line Items]
Discount rate	3.50%
Discount rate used to value periodic cost	3.50%
Maximum [Member]
Defined Benefit Plan Disclosure [Line Items]
Discount rate	4.27%
Discount rate used to value periodic cost	4.20%

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Fair value Measurements (Details 4) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available for sale	$ 1,110,813	$ 954,393
Securities held to maturity	587,838	250,896
Senior notes	(98,402)	(98,033)
Carrying Amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and due from banks	177,619	113,090
Securities available for sale	1,110,813	954,393
Securities held to maturity	579,075	253,999
Loans, net	4,719,826	2,384,021
Loans held for sale	17,846	1,011
Accrued interest receivable on securities	8,876	4,892
Accrued interest receivable on loans	10,791	6,805
FHLB stock and Federal Reserve Bank stock	66,085	24,312
Interest rate caps and swaps	1,096	997
Non-maturity deposits	(4,860,783)	(2,694,166)
Certificates of deposit	(437,871)	(268,128)
FHLB borrowings	(795,028)	(345,176)
Other borrowings	(45,639)
Senior notes	(98,402)
Mortgage escrow funds	(4,494)
Accrued interest payable on deposits	(320)	(12,646)
Accrued interest payable on borrowings	(2,942)	(1,480)
Interest rate caps and swaps	(1,096)	(1,525)
Interest rate caps and swaps		(997)
Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and due from banks	177,619	113,090
Securities available for sale	0	0
Securities held to maturity	0	0
Loans, net	0	0
Loans held for sale	0	0
Accrued interest receivable on securities	0	0
Accrued interest receivable on loans	0	0
Interest rate caps and swaps	0	0
Non-maturity deposits	(4,860,783)	(2,694,166)
Certificates of deposit	0	0
FHLB borrowings	0	0
Senior notes	0
Mortgage escrow funds	0
Accrued interest payable on deposits	0	0
Accrued interest payable on borrowings	0	0
Interest rate caps and swaps	0	0
Interest rate caps and swaps		0
Significant Other Observable Inputs Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and due from banks	0	0
Securities available for sale	1,110,813	950,780
Securities held to maturity	587,838	250,896
Loans, net	0	0
Loans held for sale	17,846	1,011
Accrued interest receivable on securities	8,876	4,892
Accrued interest receivable on loans	0	0
Interest rate caps and swaps	1,096
Non-maturity deposits	0	0
Certificates of deposit	(438,088)	(268,088)
FHLB borrowings	(813,490)	(488,369)
Other borrowings	(45,640)
Senior notes	(100,482)
Mortgage escrow funds	(4,494)
Accrued interest payable on deposits	(320)	(12,644)
Accrued interest payable on borrowings	(2,942)	(1,480)
Interest rate caps and swaps	(1,096)	(1,525)
Significant Other Observable Inputs Level 2 [Member] | Carrying Amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate caps and swaps		997
Interest rate caps and swaps		(997)
Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and due from banks	0	0
Securities available for sale	0	3,613
Securities held to maturity	0	0
Loans, net	4,758,366	2,422,824
Loans held for sale	0	0
Accrued interest receivable on securities	0	0
Accrued interest receivable on loans	10,791	6,805
Interest rate caps and swaps	0	0
Non-maturity deposits	0	0
Certificates of deposit	0	0
FHLB borrowings	0	0
Senior notes	0
Mortgage escrow funds	0
Accrued interest payable on deposits	0	0
Accrued interest payable on borrowings	0	0
Interest rate caps and swaps	0	0
Interest rate caps and swaps		$ 0

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Consolidated Statement of Changes In Stockholders' Equity (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 (loss)
Balance at Sep. 30, 2011	$ 431,134	$ 459	$ 357,063	$ (6,138)	$ (90,585)	$ 165,199	$ 5,136
Balance, shares at Sep. 30, 2011		37,864,008
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	19,888					19,888
Other comprehensive income	1,763						1,763
Stock option & other stock transactions, net	685	0	685	0	0	0	0
Stock option & other stock transactions, net, shares		0
ESOP shares allocated or committed to be released for allocation	(543)	0	(43)	(500)	0	0	0
ESOP shares allocated or committed to be released for allocation, shares	49,932
Restricted stock awards, net	209	0	(187)	0	412	(16)	0
Restricted stock awards, net, shares		50,958
Capital raise	46,000	63	45,937
Capital raise, shares		6,258,504
Cash dividends declared	(9,100)	0	0	0	0	(9,100)	0
Balance at Sep. 30, 2012	491,122	522	403,541	(5,638)	(90,173)	175,971	6,899
Balance, shares at Sep. 30, 2012		44,173,470
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	25,254					25,254
Other comprehensive income	(22,229)						(22,229)
Stock option & other stock transactions, net	792	0	730	0	95	(33)	0
Stock option & other stock transactions, net, shares		8,250
ESOP shares allocated or committed to be released for allocation	(264)	0	(119)	(145)	0	0	0
ESOP shares allocated or committed to be released for allocation, shares	49,932
Restricted stock awards, net	966	0	(574)	0	1,540	0	0
Restricted stock awards, net, shares		169,326
Cash dividends declared	(13,303)	0	0	0	0	(13,303)
Balance at Sep. 30, 2013	482,866	522	403,816	(5,493)	(88,538)	187,889	(15,330)
Balance, shares at Sep. 30, 2013		44,351,046
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	27,678	0	0	0	0	27,678	0
Other comprehensive income	3,871	0	0	0	0	0	3,871
Common stock issued in Legacy Sterling merger transaction	457,752	390	457,362
Common stock issued in legacy Sterling Bancorp merger transaction, shares		39,057,968
Stock option & other stock transactions, net	3,783	0	880	0	3,333	(430)	0
Stock option & other stock transactions, net, shares		267,188
ESOP shares allocated or committed to be released for allocation	(790)	0	(1,280)	(5,493)	5,983	0	0
ESOP shares allocated or committed to be released for allocation, shares		488,403
Restricted stock awards, net	2,075	0	(2,774)	0	4,849	0	0
Restricted stock awards, net, shares		440,468
Cash dividends declared	(17,677)	0	0	0	0	(17,677)	0
Balance at Sep. 30, 2014	$ 961,138	$ 912	$ 860,564	$ 0	$ (86,339)	$ 197,460	$ (11,459)
Balance, shares at Sep. 30, 2014		83,628,267

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Employee Benefit Plans And Stock-Based Compensation Plans (Details 5) (Pension Plans [Member], USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	$ 68,570	$ 35,417	$ 32,657
Fair Value Measurements [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	68,521	35,417
Quoted Prices in Active markets for Identical Assets Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Significant Other Observable Inputs Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	68,521	35,417
Significant Unobservable Inputs Level 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Total Equity [Member] | Fair Value Measurements [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		24,475
Total Equity [Member] | Quoted Prices in Active markets for Identical Assets Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		0
Total Equity [Member] | Significant Other Observable Inputs Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		24,475
Total Equity [Member] | Significant Unobservable Inputs Level 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		0
Large U.S. equity [Member] | Fair Value Measurements [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		16,378
Large U.S. equity [Member] | Quoted Prices in Active markets for Identical Assets Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		0
Large U.S. equity [Member] | Significant Other Observable Inputs Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		16,378
Large U.S. equity [Member] | Significant Unobservable Inputs Level 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		0
Small Mid U.S. equity [Member] | Fair Value Measurements [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		4,443
Small Mid U.S. equity [Member] | Quoted Prices in Active markets for Identical Assets Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		0
Small Mid U.S. equity [Member] | Significant Other Observable Inputs Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		4,443
Small Mid U.S. equity [Member] | Significant Unobservable Inputs Level 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		0
International Equity [Member] | Fair Value Measurements [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		3,654
International Equity [Member] | Quoted Prices in Active markets for Identical Assets Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		0
International Equity [Member] | Significant Other Observable Inputs Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		3,654
International Equity [Member] | Significant Unobservable Inputs Level 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		0
Total Balanced Asset Allocation [Member] | Fair Value Measurements [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		1,691
Total Balanced Asset Allocation [Member] | Quoted Prices in Active markets for Identical Assets Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		0
Total Balanced Asset Allocation [Member] | Significant Other Observable Inputs Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		1,691
Total Balanced Asset Allocation [Member] | Significant Unobservable Inputs Level 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		0
Total Fixed Income [Member] | Fair Value Measurements [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		9,251
Total Fixed Income [Member] | Quoted Prices in Active markets for Identical Assets Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		0
Total Fixed Income [Member] | Significant Other Observable Inputs Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		9,251
Total Fixed Income [Member] | Significant Unobservable Inputs Level 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		0
High yield bond [Member] | Fair Value Measurements [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		1,018
High yield bond [Member] | Quoted Prices in Active markets for Identical Assets Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		0
High yield bond [Member] | Significant Other Observable Inputs Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		1,018
High yield bond [Member] | Significant Unobservable Inputs Level 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		0
Intermediate term bond [Member] | Fair Value Measurements [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	8,629	8,233
Intermediate term bond [Member] | Quoted Prices in Active markets for Identical Assets Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Intermediate term bond [Member] | Significant Other Observable Inputs Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	8,629	8,233
Intermediate term bond [Member] | Significant Unobservable Inputs Level 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Fixed Income Funds Long Term Bond [Member] | Fair Value Measurements [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	59,892
Fixed Income Funds Long Term Bond [Member] | Quoted Prices in Active markets for Identical Assets Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0
Fixed Income Funds Long Term Bond [Member] | Significant Other Observable Inputs Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	59,892
Fixed Income Funds Long Term Bond [Member] | Significant Unobservable Inputs Level 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	$ 0

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Securities (Details 1) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost	$ 579,075	$ 253,999
Gross unrealized gains	11,155	1,324
Gross unrealized losses	(2,392)	(4,427)
Fair value, Held to maturity securities	587,838	250,896
Residential Mortgage Backed Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost	205,019	156,147
Gross unrealized gains	1,369	749
Gross unrealized losses	(1,307)	(423)
Fair value, Held to maturity securities	205,081	156,473
Residential Mortgage Backed Securities [Member] | Agency-backed [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost	142,329	130,371
Gross unrealized gains	1,360	716
Gross unrealized losses	(103)	(108)
Fair value, Held to maturity securities	143,586	130,979
Residential Mortgage Backed Securities [Member] | CMO/Other MBS [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost	62,690	25,776
Gross unrealized gains	9	33
Gross unrealized losses	(1,204)	(315)
Fair value, Held to maturity securities	61,495	25,494
Securities Investment [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost	374,056	97,852
Gross unrealized gains	9,786	575
Gross unrealized losses	(1,085)	(4,004)
Fair value, Held to maturity securities	382,757	94,423
Securities Investment [Member] | Federal agencies [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost	136,413	77,341
Gross unrealized gains	2,634	0
Gross unrealized losses	(962)	(3,458)
Fair value, Held to maturity securities	138,085	73,883
Securities Investment [Member] | State and municipal [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost	232,643	19,011
Gross unrealized gains	6,814	556
Gross unrealized losses	(123)	(546)
Fair value, Held to maturity securities	239,334	19,021
Securities Investment [Member] | Other [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost	5,000	1,500
Gross unrealized gains	338	19
Gross unrealized losses	0	0
Fair value, Held to maturity securities	$ 5,338	$ 1,519

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Employee Benefit Plans And Stock-Based Compensation Plans (Details 10) (Stock Options [Member], Stock Option Plan [Member])	12 Months Ended
	Sep. 30, 2014		Sep. 30, 2013		Sep. 30, 2012
Stock Options [Member] | Stock Option Plan [Member]
Fair value of options granted determined using weighted-average assumptions as grant date
Risk-free interest rate	1.80%		1.00%		1.40%
Expected stock price volatility	26.40%		40.80%		40.00%
Dividend yield	2.00%	[1]	2.60%	[1]	3.00%	[1]
Expected term in years	5 years 8 months 1 day		5 years 9 months		5 years 9 months 26 days

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

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Premises And Equipment, Net (Tables)

12 Months Ended

Sep. 30, 2014

Property, Plant and Equipment [Abstract]

Premises and Equipment, Net

Premises and equipment are summarized as follows:

	September 30,
	2014			2013
Land and land improvements	$	6,048		$	7,282
Buildings	22,888			30,558
Leasehold improvements	32,963			8,136
Furniture, fixtures and equipment	50,343			40,164
Total premises and equipment, gross	112,242			86,140
Accumulated depreciation and amortization	(68,956		)	(49,620		)
Total premises and equipment, net	$	43,286		$	36,520

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Securities (Details Textual) (USD $) In Thousands, unless otherwise specified	0 Months Ended	12 Months Ended
	Oct. 31, 2013	Sep. 30, 2014 Security	Sep. 30, 2013
Schedule of Available-for-sale Securities [Line Items]
Investment securities transferred from held to maturity to available for sale	$ 165,230
Investment securities transferred from available for sale to held to maturity	221,904
Unrealized gain(loss) on investment securities transferred	$ 9,657	$ 8,947
Life of investment securities transferred		5 years 3 months 18 days
Held to maturity securities sold after the company collected principal outstanding balance			85.00%
Number of securities which were in continuous unrealized loss position for 12 months or more		99
Number of securities which were in continuous unrealized loss position for less than 12 months		118
Number of fixed maturity securities past due		0

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Stockholders' Equity

12 Months Ended

Sep. 30, 2014

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Stockholders’ Equity

(a) Regulatory Capital Requirements

In connection with the Merger, the Company became a bank holding company and a financial holding company as defined by the Bank Holding Company Act of 1956, as amended. Effective in the quarter ended December 31, 2013, Sterling Bancorp is subject to capital ratio requirements as discussed below.

Banks and bank holding companies are subject to various regulatory capital requirements administered by the federal banking agencies. Capital adequacy guidelines, and additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk-weighting, and other factors. Quantitative measures established by regulations to ensure capital adequacy require the maintenance of minimum amounts and ratios (as forth in the table below) of Total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital to adjusted quarterly average assets (as defined).

The Tier 1 and Total capital ratios are calculated by dividing the respective capital amounts by risk-weighed assets. Risk-weighted assets are calculated based on regulatory requirements and include total assets, excluding goodwill and other intangible assets, allocated by risk weight category, and certain off-balance sheet items (mainly loan commitments). Tier 1 capital to average assets is calculated by dividing Tier 1 capital by adjusted quarterly average total assets, which exclude goodwill and other intangible assets.

Fiscal year end actual and required capital ratios for the Company and the Bank were as follows:

					Regulatory requirements
	The Bank and the Company				Minimum capital adequacy				Classification as well- capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
September 30, 2014
Tier 1 leverage capital (to average assets):
Sterling National Bank	$	636,507	9.34	%	$	272,542	4.00	%	$	340,677	5.00	%
Sterling Bancorp	553,117		8.12		272,385		4.00		340,481		5.00
Tier 1 capital (to risk-weighted assets):
Sterling National Bank	636,507		11.94		213,176		4.00		319,763		6.00
Sterling Bancorp	553,117		10.33		214,102		4.00		321,153		6.00
Total capital (to risk-weighted assets):
Sterling National Bank	677,514		12.71		426,351		8.00		532,939		10.00
Sterling Bancorp	594,124		11.10		428,204		8.00		535,254		10.00
	Sterling National Bank only
September 30, 2013
Tier 1 leverage	$	363,274	9.33	%	$	155,670	4.00	%	$	194,587	5.00	%
Risk-based capital:
Tier 1	363,274		13.18		110,235		4.00		165,352		6.00
Total	392,376		14.24		220,469		8.00		275,587		10.00

Management believes that as of September 30, 2014, Sterling Bancorp and Sterling National Bank were “well-capitalized”.

A reconciliation of the Company’s stockholders’ equity to its regulatory capital at September 30, 2014 and the Bank’s total stockholder’s equity to the Bank’s regulatory capital at September 30, 2014 and 2013 is as follows:

	The Company			The Bank
	September 30,			September 30,
	2014			2014			2013
Total GAAP stockholders’ equity	$	961,138		$	1,011,973		$	516,281
Disallowed goodwill and other intangible assets	(419,327		)	(386,766		)	(168,122		)
Net unrealized loss on available for sale securities	7,815			7,809			11,455
Disallowed servicing asset	(153		)	(153		)	(198		)
Net actuarial loss on defined benefit pension plans	3,644			3,644			3,858
Tier 1 risk-based capital	553,117			636,507			363,274
Allowance for loan losses and off-balance sheet commitments	41,007			41,007			29,102
Total risk-based capital	$	594,124		$	677,514		$	392,376

(b) Dividend Restrictions

The Company is mainly dependent upon dividends from the Bank to provide funds for the payment of dividends to stockholders and to provide for other cash requirements. Banking regulations may limit the amount of dividends that may be paid. Approval by regulatory authorities is required if the effect of dividends declared would cause the regulatory capital of the Bank to fall below specified minimum levels. Approval is also required if dividends declared exceed the net profits for that fiscal year combined with the retained net profits for the preceding two fiscal years. Under the foregoing dividend restrictions and while maintaining its “well-capitalized” status, at September 30, 2014, the Bank had capacity to pay aggregate dividends of up to $47,879 to the Company without prior regulatory approval.

(c) Stock Repurchase Plans

From time to time, the Company’s board of directors has authorized stock repurchase plans. The Company has 776,713 shares that are available to be purchased under an announced stock repurchase program. There were no shares repurchased under the repurchase programs during the fiscal years ended September 30, 2014, 2013, or 2012.

(d) Liquidation Rights

Upon completion of the second-step conversion in January 2004, the Bank established a special “liquidation account” in accordance with OCC regulations. The account was established for the benefit of Eligible Account Holders and Supplemental Eligible Account Holders (as defined in the plan of conversion) in an amount equal to the greater of (i) the Mutual Holding Company’s ownership interest in the retained earnings of the Bank as of the date of its latest balance sheet contained in the prospectus, or (ii) the retained earnings of the Bank at the time that the Bank reorganized into the Mutual Holding Company in 1999. Each Eligible Account Holder and Supplemental Eligible Account Holder that continues to maintain his or her deposit account at the Bank would be entitled, in the event of a complete liquidation of the Bank, to a pro rata interest in the liquidation account prior to any payment to the stockholders of the Holding Company. The liquidation account is reduced annually on September 30 to the extent that Eligible Account Holders and Supplemental Eligible Account Holders have reduced their qualifying deposits as of each anniversary date. At September 30, 2014, the liquidation account had a balance of $13,300. Subsequent increases in deposits do not restore such account holder’s interest in the liquidation account. The Bank may not pay cash dividends or make other capital distributions if the effect thereof would be to reduce its stockholder’s equity below the amount of the liquidation account.

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Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Sep. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Change in goodwill

The change in goodwill in the fiscal years ended September 30, 2014 and 2013 was as follows:

	September 30,
	2014		2013
Beginning of year balance	$	163,117	$	163,247
Acquisitions	225,809		(130		)
Disposals	—		—
End of year balance	$	388,926	$	163,117

Other intangible assets

The balance of other intangible assets at September 30, 2014 and 2013 was as follows:

	Gross intangible assets		Accumulated amortization			Net intangible assets
September 30, 2014
Core deposits	$	24,182	$	(4,694	)	$	19,488
Non-compete agreements	10,308		(5,490		)	4,818
Trade name	20,500		—			20,500
Fair value of below market leases	725		(253		)	472
Provident Bank Ball Park naming rights	2,414		(2,414		)	—
	$	58,129	$	(12,851	)	$	45,278
September 30, 2013
Core deposits	$	4,818	$	(798	)	$	4,020
Provident Bank Ball Park naming rights	2,414		(543		)	1,871
	$	7,232	$	(1,341	)	$	5,891

Future amortization expense

The estimated aggregate future amortization expense for other intangible assets remaining as of September 30, 2014 was as follows:

	Amortization expense
2015	$	6,113
2016	5,042
2017	2,598
2018	2,178
2019	2,058
Thereafter	6,786
	$	24,775

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Employee Benefit Plans And Stock-Based Compensation Plans (Details 9) (USD $)			12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014 Stock Option Plan [Member]	Sep. 30, 2014 $6.71 to $9.00 [Member] Stock Option Plan [Member]	Sep. 30, 2014 $9.28 to $12.64 [Member] Stock Option Plan [Member]	Sep. 30, 2014 $12.84 to $13.92 [Member] Stock Option Plan [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of exercise price, lower range limit (in dollars per share)				$ 6.71	$ 9.28	$ 12.84
Range of exercise price, upper range limit (in dollars per share)				$ 9.00	$ 12.64	$ 13.92
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, End of Period [Abstract]
Outstanding, Number of stock options	0	549,262	1,660,333	689,711	787,243	183,379
Outstanding, Weighted-average exercise price (in usd per share)			$ 10.55	$ 8.38	$ 11.73	$ 13.68
Outstanding, Weighted-average life (in years)			5 years 9 months 26 days	7 years 6 months 26 days	5 years 0 months 8 days	2 years 8 months 9 days
Exercisable, Number of stock options			951,492	322,148	445,965	183,379
Exercisable, Weighted-average exercise price (in usd per share)			$ 11.11	$ 8.36	$ 12.05	$ 13.68
Exercisable, Weighted-average life (in years)			5 years 9 months 26 days	7 years 6 months 26 days	5 years 0 months 8 days	2 years 8 months 9 days

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Commitment and Contingencies

12 Months Ended

Sep. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Certain premises and equipment are leased under operating leases with terms expiring through 2033. The Company has the option to renew certain of these leases for additional terms. Future minimum rental payments due under non-cancellable operating leases with initial or remaining terms of more than one year at September 30, 2014 were as follows:

2014	$	8,984
2015	8,517
2016	7,690
2017	7,702
2018	6,386
2019 and thereafter	27,012
	$	66,291

Occupancy and office operations expense includes net rent expense of $7,893, $3,340 and $2,952 for the years ended September 30, 2014, 2013 and 2012, respectively.

Litigation

The Company and the Bank are involved in a number of judicial proceedings concerning matters arising from conducting their business activities. These include routine legal proceedings arising in the ordinary course of business. These proceedings also include actions brought against the Company and the Bank with respect to corporate matters and transactions in which the Company and the Bank were involved. In addition, the Company and the Bank may be requested to provide information or otherwise cooperate with government authorities in the conduct of investigations of other persons or industry groups. It is possible the Company will be named as a defendant in shareholder litigation arising out of the announcement of the HVB Merger. The Company believes that any such claims would be without merit.

There can be no assurance as to the ultimate outcome of a legal proceeding; however, the Company and the Bank have generally denied, or believe they have meritorious defenses and will deny, liability in all significant litigation pending against us, and we intend to defend vigorously each case, other than matters we determine are appropriate to be settled. We accrue a liability for legal claims when payments associated with the claims become probable and the costs can be reasonably estimated. The actual costs of resolving legal claims may be substantially higher or lower than the amounts accrued for those claims.

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Loans (Details 2) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Summary of activity in allowance for loan losses and recorded investments in loans by portfolio segment based on impairment method
Beginning Allowance for loan losses	$ 28,877	$ 28,282	$ 27,917
Charge-offs	(9,331)	(13,057)	(12,809)
Recoveries	1,966	1,502	2,562
Net Charge-offs	(7,365)	(11,555)	(10,247)
Provision	19,100	12,150	10,612
Ending Allowance for Loan Losses	40,612	28,877	28,282
Annualized net charge-offs to average loans outstanding	0.24%	0.52%	0.56%
Commercial & industrial
Summary of activity in allowance for loan losses and recorded investments in loans by portfolio segment based on impairment method
Beginning Allowance for loan losses	5,302	4,603	5,945
Charge-offs	(2,901)	(1,354)	(1,526)
Recoveries	1,073	410	1,116
Net Charge-offs	(1,828)	(944)	(410)
Provision	6,062	1,643	(932)
Ending Allowance for Loan Losses	9,536	5,302	4,603
Payroll finance
Summary of activity in allowance for loan losses and recorded investments in loans by portfolio segment based on impairment method
Beginning Allowance for loan losses	0
Charge-offs	(758)
Recoveries	0
Net Charge-offs	(758)
Provision	2,137
Ending Allowance for Loan Losses	1,379
Warehouse lending
Summary of activity in allowance for loan losses and recorded investments in loans by portfolio segment based on impairment method
Beginning Allowance for loan losses	0
Charge-offs	0
Recoveries	0
Net Charge-offs	0
Provision	630
Ending Allowance for Loan Losses	630
Factored receivables
Summary of activity in allowance for loan losses and recorded investments in loans by portfolio segment based on impairment method
Beginning Allowance for loan losses	0
Charge-offs	(211)
Recoveries	9
Net Charge-offs	(202)
Provision	1,496
Ending Allowance for Loan Losses	1,294
Equipment financing
Summary of activity in allowance for loan losses and recorded investments in loans by portfolio segment based on impairment method
Beginning Allowance for loan losses	0
Charge-offs	(1,074)
Recoveries	194
Net Charge-offs	(880)
Provision	3,501
Ending Allowance for Loan Losses	2,621
Commercial real estate
Summary of activity in allowance for loan losses and recorded investments in loans by portfolio segment based on impairment method
Beginning Allowance for loan losses	9,967	7,230	5,568
Charge-offs	(741)	(3,725)	(2,707)
Recoveries	161	577	528
Net Charge-offs	(580)	(3,148)	(2,179)
Provision	1,457	5,885	3,841
Ending Allowance for Loan Losses	10,844	9,967	7,230
Multi-family
Summary of activity in allowance for loan losses and recorded investments in loans by portfolio segment based on impairment method
Beginning Allowance for loan losses	0
Charge-offs	(418)
Recoveries	92
Net Charge-offs	(326)
Provision	2,193
Ending Allowance for Loan Losses	1,867
Acquisition, development & construction
Summary of activity in allowance for loan losses and recorded investments in loans by portfolio segment based on impairment method
Beginning Allowance for loan losses	5,806	8,526	9,895
Charge-offs	(1,479)	(3,422)	(4,124)
Recoveries	0	182	299
Net Charge-offs	(1,479)	(3,240)	(3,825)
Provision	(2,207)	520	2,456
Ending Allowance for Loan Losses	2,120	5,806	8,526
Residential mortgage
Summary of activity in allowance for loan losses and recorded investments in loans by portfolio segment based on impairment method
Beginning Allowance for loan losses	4,474	4,359	3,498
Charge-offs	(963)	(2,547)	(2,551)
Recoveries	323	101	356
Net Charge-offs	(640)	(2,446)	(2,195)
Provision	2,003	2,561	3,056
Ending Allowance for Loan Losses	5,837	4,474	4,359
Consumer
Summary of activity in allowance for loan losses and recorded investments in loans by portfolio segment based on impairment method
Beginning Allowance for loan losses	3,328	3,564	3,011
Charge-offs	(786)	(2,009)	(1,901)
Recoveries	114	232	263
Net Charge-offs	(672)	(1,777)	(1,638)
Provision	1,828	1,541	2,191
Ending Allowance for Loan Losses	$ 4,484	$ 3,328	$ 3,564

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Off-Balance-Sheet Financial Instruments (Details Textual) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Assets secured by other collateral	$ 34,687
Letters of credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Lending-related instruments	97,468	35,052
Assets secured by cash as collateral	$ 21,756

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Consolidated Statement of Changes In Stockholders' Equity (Parenthetical) (USD $)	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Statement of Stockholders' Equity [Abstract]
ESOP shares allocated or committed to be released for allocation, shares		49,932	49,932
Cash dividends paid (USD per share)	$ 0.21	$ 0.30	$ 0.24

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Consolidated Statements of Financial Condition (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Securities held to maturity	$ 587,838	$ 250,896
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	190,000,000	190,000,000
Common stock, shares issued	91,246,024	52,188,056
Common stock, shares outstanding	83,628,267	44,351,046
Treasury stock, shares	7,617,757	7,837,010
Unallocated ESOP Shares outstanding	0	549,262
Accumulated other comprehensive income, tax	$ (8,470)	$ (10,482)

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Derivatives

12 Months Ended

Sep. 30, 2014

Derivative Instruments and Hedges, Assets [Abstract]

Derivatives

Derivatives

The Company has two interest rate caps to offset a portion of interest rate exposure should short-term rate increases lead to rapid increases in general levels of market interest rates on deposits. These caps are linked to LIBOR and have strike prices of 3.5% and 4.0%. These caps are stand alone derivatives and therefore changes in fair value are reported in current period earnings. Losses recognized in earnings were $0 and $2 in fiscal 2014 and 2013, respectively. The fair value of the interest rate caps at September 30, 2014, is reflected in other assets with a corresponding credit (charge) to income recorded as a gain (loss) to non-interest income.

The Company has entered into certain interest rate swap contracts that are not designated as hedging instruments. These derivative contracts relate to transactions in which the Company enters into an interest rate swap with a customer while at the same time entering into an offsetting interest rate swap with another financial institution. In connection with each swap transaction, the Company agrees to pay interest to the customer on a notional amount at a variable interest rate and receive interest from the customer on a similar notional amount at a fixed interest rate. At the same time, the Company agrees to pay another financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. The transaction allows the Company’s customers to effectively convert a variable rate loan to a fixed rate. Because the Company acts as an intermediary for its customer, changes in the fair value of the underlying derivative contracts for the most part offset each other and do not significantly impact the Company’s results of operations.

The Company pledged collateral to another financial institution in the form of investment securities with an amortized cost of $5,034 and a fair value of $4,836 as of September 30, 2014. The Company does not typically require its commercial customers to post cash or securities as collateral on its program of back-to-back swaps. However, certain language is written into the International Swaps and Derivatives Association agreement and loan documents where, in default situations, the Company is allowed to access collateral supporting the loan relationship to recover any losses suffered on the derivative asset or liability. The Company may need to post additional collateral to swap counterparties in the future in proportion to potential increases in unrealized loss positions.

Summary information as of September 30, 2014 and 2013 regarding these derivatives is presented below:

	Notional amount			Average maturity (in years)	Weighted average fixed rate		Weighted average variable rate	Fair value
September 30, 2014
Interest rate caps	$	50,000		0.18	3.75	%	NA	$	—
3rd party interest rate swap	50,729			4.86	4.20		1 m Libor + 2.44	1,096
Customer interest rate swap	(50,729		)	4.86	4.20		1 m Libor + 2.44	(1,096		)
September 30, 2013
Interest rate caps	$	50,000		1.18	3.75	%	NA	$	—
3rd party interest rate swap	54,180			5.76	4.22		1 m Libor + 2.45	997
Customer interest rate swap	(54,180		)	5.76	4.22		1 m Libor + 2.45	(997		)

The Company enters into various commitments to sell real estate loans into the secondary market. Such commitments are considered to be derivative financial instruments; however, the fair value of these commitments is not material.

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Earnings Per Common Share (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2014		Sep. 30, 2013		Sep. 30, 2012
Computation of basic and diluted earnings per share:
Net income	$ 16,337	$ 15,011	$ 10,332	$ (14,002)	$ 5,329	$ 6,376	$ 6,529	$ 7,020	$ 27,678		$ 25,254		$ 19,888
Weighted average common shares outstanding for computation of basic EPS (in shares)									80,268,970	[1]	43,734,425	[1]	38,227,653	[1]
Common-equivalent shares due to the dilutive effect of stock options (in shares)									265,073	[2]	48,628	[2]	20,393	[2]
Weighted average common shares for computation of diluted EPS (in shares)									80,534,043		43,783,053		38,248,046
Basic (USD per share)	$ 0.20	$ 0.18	$ 0.12	$ (0.20)	$ 0.12	$ 0.15	$ 0.15	$ 0.16	$ 0.34		$ 0.58		$ 0.52
Diluted (USD per share)	$ 0.19	$ 0.18	$ 0.12	$ (0.20)	$ 0.12	$ 0.15	$ 0.15	$ 0.16	$ 0.34		$ 0.58		$ 0.52
Antidilutive securities excluded from earnings per share (in shares)									697,475		1,786,608		1,771,132

[1] Includes earned ESOP shares.

[2] Represents incremental shares computed using the treasury stock method.

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Employee Benefit Plans And Stock-Based Compensation Plans (Details 4) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014
Pension Plans [Member]
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract]
2015	$ 726
2016	902
2017	1,079
2018	1,625
2019	1,851
2020 - 2024	13,461
Other Post retirement Benefit Plans [Member]
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract]
2015	660
2016	231
2017	271
2018	319
2019	373
2020 - 2024	$ 2,370

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Employee Benefit Plans And Stock-Based Compensation Plans (Details 2) (Pension Plans [Member], USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Unrecognized actuarial loss	$ (6,024)	$ (5,479)
Deferred tax asset	2,556	2,225
Net amount recognized in accumulated other comprehensive income (loss)	$ (3,468)	$ (3,254)

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Condensed Parent Company Financial Statements - Statements of Cash Flows (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities:
Net income	$ 27,678	$ 25,254	$ 19,888
Adjustments to reconcile net income to net cash provided by operating activities
(Gain) on redemption of Subordinated Debentures	(712)	0	0
Other adjustments, net	(40,497)	26,413	(2,237)
Net cash provided by operating activities	127,664	22,624	25,026
Cash flows from investing activities:
Net cash provided by (used in) investing activities	(266,707)	(403,098)	(291,473)
Cash flows from financing activities
Redemption of Subordinated Debentures	(26,140)	0	0
Senior Notes offering	0	97,946	0
Cash dividends paid	(17,677)	(10,642)	(9,100)
Net increase (decrease) in cash and cash equivalents	64,529	(324,892)	156,470
Cash and cash equivalents at beginning of year	113,090	437,982	281,512
Cash and cash equivalents at end of year	177,619	113,090	437,982
Sterling Bancorp [Member]
Cash flows from operating activities:
Net income	27,677	25,254	19,888
Adjustments to reconcile net income to net cash provided by operating activities
Other adjustments, net	(22,066)	(5,259)	(380)
Net cash provided by operating activities	36,086	3,910	5,451
Cash flows from investing activities:
Purchase of securities	0	0	(105)
Sales of securities	1,112	818	103
Investment in subsidiaries	(15,000)	(45,000)	(44,203)
ESOP loan principal repayments	6,437	459	441
Net cash provided by (used in) investing activities	(7,451)	(43,723)	(43,764)
Cash flows from financing activities
Net change in other short-term borrowings	(20,659)	0	0
Redemption of Subordinated Debentures	(26,140)	0	0
Senior Notes offering	0	97,946	0
Equity capital raise	0	0	46,000
Cash dividends paid	(17,677)	(10,642)	(9,100)
Stock option transactions including RRP	2,980	1,758	910
Other equity transactions	0	265	527
Net cash (used for) provided by financing activities	(61,496)	89,327	38,337
Net increase (decrease) in cash and cash equivalents	(32,861)	49,514	24
Cash and cash equivalents at beginning of year	56,230	6,716	6,692
Cash and cash equivalents at end of year	23,369	56,230	6,716
Sterling National Bank [Member] | Sterling Bancorp [Member]
Adjustments to reconcile net income to net cash provided by operating activities
Equity in (undistributed) excess distributed earnings	(12,590)	(27,174)	(13,739)
Non-bank Subsidiaries[Member] | Sterling Bancorp [Member]
Adjustments to reconcile net income to net cash provided by operating activities
Equity in (undistributed) excess distributed earnings	$ (355)	$ 571	$ (1,078)

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Document and Entity Information (USD $)	12 Months Ended
	Sep. 30, 2014	Nov. 26, 2014	Mar. 31, 2014
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY
Entity Registrant Name	STERLING BANCORP
Entity Central Index Key	0001070154
Document Period End Date	Sep. 30, 2014
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		83,899,070
Entity Well-known Seasoned Issuer	Yes
Entity Public Float			$ 1,057,670,927
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No

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Income Taxes

12 Months Ended

Sep. 30, 2014

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Income tax expense for the periods indicated consists of the following:

	For the year ended September 30,
	2014			2013		2012
Current tax expense:
Federal	$	11,613		$	9,146	$	5,538
State	1,598			1,549		685
Total current tax expense	13,211			10,695		6,223
Deferred tax (benefit) expense:
Federal	(2,745		)	522		(261		)
State	(314		)	197		197
Total deferred tax (benefit) expense	(3,059		)	719		(64		)
Total income tax expense	$	10,152		$	11,414	$	6,159

Actual income tax expense differs from the tax computed based on pre-tax income and the applicable statutory Federal tax rate for the following reasons:

	For the year ended September 30,
	2014			2013			2012
Tax at Federal statutory rate of 35%	$	13,241		$	12,833		$	9,116
State and local income taxes, net of Federal tax benefit	834			1,135			573
Tax-exempt interest, net of disallowed interest	(3,824		)	(2,192		)	(2,448		)
BOLI income	(1,110		)	(699		)	(718		)
Non-deductible acquisition related costs	712			416			418
Low income housing tax credits	(165		)	—			—
Other, net	464			(79		)	(782		)
Actual income tax expense	$	10,152		$	11,414		$	6,159
Effective income tax rate	26.8		%	31.1		%	23.6		%

The following table presents the Company’s deferred tax position at September 30, 2014 and 2013:

	September 30,
	2014		2013
Deferred tax assets:
Allowance for loan losses	$	17,272	$	11,809
Deferred compensation	649		798
Other accrued compensation and benefits	5,418		1,497
Accrued post retirement expense	2,705		1,441
Deferred rent	—		1,059
Intangible assets	2,439		—
Other comprehensive loss (securities)	5,777		7,844
Other comprehensive loss (defined benefit plans)	2,371		2,638
Depreciation of premises and equipment	433		—
State NOL carryforward	1,431		—
Other	3,511		2,172
Total deferred tax assets	42,006		29,258
Deferred tax liabilities:
Undistributed earnings of subsidiary not consolidated for tax return purposes (income from REITs)	9,303		4,483
Prepaid pension costs	10,579		3,758
Purchase accounting adjustments	16,056		1,057
Depreciation and lease adjustments	—		2,686
Deferred rent	163		—
Intangibles amortization	—		112
Other	2,557		2,207
Total deferred tax liabilities	38,658		14,303
Net deferred tax asset	$	3,348	$	14,955

Based on the Company’s consideration of historical and anticipated future pre-tax income, as well as the reversal period for the items giving rise to the deferred tax assets and liabilities, a valuation allowance for deferred tax assets was not considered necessary at either September 30, 2014 or 2013.

Retained earnings at September 30, 2014 and 2013 included approximately $9,313 for which no provision for federal income taxes has been made. This amount represents the tax bad debt reserve at December 31, 1987, which is the end of the Bank’s base year for purposes of calculating the bad debt deduction for tax purposes. If this portion of retained earnings is used in the future for any purposes other than to absorb bad debts, the amount used will be added to future taxable income. The unrecorded deferred tax liability on the above amount at both September 30, 2014 and 2013 was approximately $3,260.

At September 30, 2014 the Company has state and local NOL carryforwards that were acquired from Legacy Sterling as part of the Merger on October 31, 2013. The utilization of state and local NOLs are subject to an annual limitation. Based on our projections, we believe the state and local NOL carryforwards will be fully utilized before expiration.

At September 30, 2014and 2013, the Company had no unrecognized tax benefits or accrued interest and penalties recorded. The Company does not expect the total amount of unrecognized tax benefits to significantly increase within the next twelve months. The Company records interest and penalties as a component of income tax expense.

Sterling and its subsidiaries are subject to U.S. federal income tax as well as income tax of the state of New York and various other states. The Company is no longer subject to examination by Federal and New York taxing authorities for tax years prior to 2011.

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Deposits (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Deposits [Abstract]
Non-interest bearing demand	$ 1,799,685	$ 943,934
Interest bearing demand	766,852	434,398
Savings	698,443	580,125
Money market	1,595,803	735,709
Certificates of deposit	437,871	268,128
Deposits	$ 5,298,654	$ 2,962,294

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Employee Benefit Plans And Stock-Based Compensation Plans (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Dec. 31, 2013	Sep. 30, 2014 Pension Plans [Member]	Sep. 30, 2013 Pension Plans [Member]	Sep. 30, 2012 Pension Plans [Member]	Sep. 30, 2014 Other Post retirement Benefit Plans [Member]	Sep. 30, 2013 Other Post retirement Benefit Plans [Member]	Sep. 30, 2012 Other Post retirement Benefit Plans [Member]
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Service cost		$ 0	$ 0	$ 0	$ 51	$ 48	$ 46
Interest cost		2,779	1,452	1,501	683	134	125
Expected return on plan assets		(3,380)	(2,462)	(2,125)
Amortization of unrecognized actuarial (gain) loss		236	2,062	2,316	(45)	2	(25)
Partial settlement charge	2,700	3,922	0	0
Amortization of transition obligation					34	24	24
Amortization of prior service cost					270	47	47
Curtailment (gain)					(2,485)	0	0
Total		$ 3,557	$ 1,052	$ 1,692	$ (1,492)	$ 255	$ 217

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Consolidated Statements of Income (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Sep. 30, 2014		Sep. 30, 2013		Sep. 30, 2012
Interest and dividend income:
Loans, including fees	$ 202,982		$ 107,810		$ 91,010
Taxable securities	30,067		17,509		16,538
Non-taxable securities	10,453		5,682		6,497
Other earning assets	3,404		1,060		992
Total interest and dividend income	246,906		132,061		115,037
Interest expense:
Deposits	8,964		5,923		5,581
Borrowings	19,954		13,971		12,992
Total interest expense	28,918		19,894		18,573
Net interest income	217,988		112,167		96,464
Provisions for loan losses	19,100		12,150		10,612
Net interest income after provision for loan losses	198,888		100,017		85,852
Non-interest income:
Accounts receivable management / factoring commissions and other related fees	13,146		0		0
Mortgage banking income	8,086		1,979		1,897
Deposit fees and service charges	15,595		10,964		11,377
Net gain on sale of securities	641		7,391		10,452
Bank owned life insurance	3,080		1,998		2,050
Investment management fees	2,209		2,413		3,143
Other	4,613		2,947		3,233
Total non-interest income	47,370		27,692		32,152
Non-interest expense:
Compensation and employee benefits	94,310		47,833		46,038
Stock-based compensation plans	3,703		2,239		1,187
Occupancy and office operations	27,726		14,953		14,457
Amortization of intangible assets	9,408		1,296		1,245
FDIC insurance and regulatory assessments	6,146		3,010		3,096
Other real estate owned (income) expense, net	(237)		1,562		1,618
Merger related expense	9,455		2,772		5,925
Other	57,917		17,376		18,391
Total non-interest expense	208,428		91,041		91,957
Income before income tax expense	37,830		36,668		26,047
Income tax expense	10,152		11,414		6,159
Net income	$ 27,678		$ 25,254		$ 19,888
Weighted average common shares:
Basic (in shares)	80,268,970	[1]	43,734,425	[1]	38,227,653	[1]
Diluted (in shares)	80,534,043		43,783,053		38,248,046
Earnings per common share
Basic (USD per share)	$ 0.34		$ 0.58		$ 0.52
Diluted (USD per share)	$ 0.34		$ 0.58		$ 0.52

[1] Includes earned ESOP shares.

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Loans

12 Months Ended

Sep. 30, 2014

Loans [Abstract]

Loans

Loans

The composition of the Company’s loan portfolio, excluding loans held for sale, was the following:

	September 30,
	2014			2013
Commercial:
Commercial & industrial	$	1,164,537		$	439,787
Payroll finance	145,474			—
Warehouse lending	192,003			—
Factored receivables	181,433			—
Equipment financing	393,027			—
Total commercial	2,076,474			439,787
Commercial mortgage:
Commercial real estate	1,449,052			969,490
Multi-family	368,524			307,547
Acquisition, development & construction	92,149			102,494
Total commercial mortgage	1,909,725			1,379,531
Total commercial and commercial mortgage	3,986,199			1,819,318
Residential mortgage	570,431			400,009
Consumer:
Home equity lines of credit	159,944			156,995
Other consumer loans	43,864			36,576
Total consumer	203,808			193,571
Total loans	4,760,438			2,412,898
Allowance for loan losses	(40,612		)	(28,877		)
Total loans, net	$	4,719,826		$	2,384,021

Total loans include net deferred loan origination costs of $1,261 at September 30, 2014 and $1,201 at September 30, 2013.

Loans acquired from Legacy Sterling were a total of $1,698,108, net of purchase accounting adjustments and were comprised of $1,683,454 of loans that were not considered impaired at the acquisition date and $13,249 of loans that were determined to be impaired at the time of acquisition. The impaired loans were accounted for in accordance with ASC 310-30. At September 30, 2014, the net recorded amount of loans accounted for under ASC 310-30 was $3,763.

Loans acquired in the Merger that were determined to be purchased credit impaired were all considered collateral dependent loans. Therefore, estimated fair value calculations and projected cash flows included only return of principal and no interest income. There was no accretable yield associated with these loans during the twelve months ended September 30, 2014.

At September 30, 2014, the Company pledged loans totaling $1,246,315 to the FHLB as collateral for certain borrowing arrangements. See Note 8. “Borrowings and Senior Notes”.

The following tables set forth the amounts and status of the Company’s loans and TDRs at September 30, 2014 and September 30, 2013:

	September 30, 2014
	Current		30-59 days past due		60-89 days past due		90+ days past due		Non- accrual		Total
Commercial & industrial	$	1,150,854	$	2,316	$	7,043	$	—	$	4,324	$	1,164,537
Payroll finance	145,029		99		—		346		—		145,474
Warehouse lending	192,003		—		—		—		—		192,003
Factored receivables	181,063		—		—		—		370		181,433
Equipment financing	391,914		689		162		—		262		393,027
Commercial real estate	1,433,805		93		4,188		521		10,445		1,449,052
Multi-family	368,393		—		—		—		131		368,524
Acquisition, development & construction	79,732		—		56		—		12,361		92,149
Residential mortgage	547,912		4,023		2,036		534		15,926		570,431
Consumer	193,491		3,087		1,487		—		5,743		203,808
Total loans	$	4,684,196	$	10,307	$	14,972	$	1,401	$	49,562	$	4,760,438
Total TDRs included above	$	17,138	$	346	$	169	$	—	$	11,944	$	29,597
Non-performing loans:
Loans 90+ days past due and still accruing									$	1,401
Non-accrual loans									49,562
Total non-performing loans									$	50,963

	September 30, 2013
	Current		30-59 days past due		60-89 days past due		90+ days past due		Non- accrual		Total
Commercial & industrial	$	438,818	$	178	$	2	$	289	$	500	439,787
Commercial real estate	1,263,933		1,978		2,357		1,574		7,195		1,277,037
Acquisition, development & construction	96,306		768		—		—		5,420		102,494
Residential mortgage	390,072		354		267		1,832		7,484		400,009
Consumer	190,393		566		—		404		2,208		193,571
Total loans	$	2,379,522	$	3,844	$	2,626	$	4,099	$	22,807	$	2,412,898
Total TDRs included above	$	23,754	$	—	$	—	$	141	$	2,199	$	26,094
Non-performing loans:
Loans 90+ days past due and still accruing									$	4,099
Non-accrual loans									22,807
Total non-performing loans									$	26,906

Activity in the allowance for loan losses for the fiscal years ended September 30, 2014, 2013 and 2012 is summarized below:

	September 30, 2014
	Beginning balance		Charge-offs			Recoveries		Net charge-offs			Provision			Ending balance
Commercial & industrial	$	5,302	$	(2,901	)	$	1,073	$	(1,828	)	$	6,062		$	9,536
Payroll finance	—		(758		)	—		(758		)	2,137			1,379
Warehouse lending	—		—			—		—			630			630
Factored receivables	—		(211		)	9		(202		)	1,496			1,294
Equipment financing	—		(1,074		)	194		(880		)	3,501			2,621
Commercial real estate	9,967		(741		)	161		(580		)	1,457			10,844
Multi-family	—		(418		)	92		(326		)	2,193			1,867
Acquisition, development & construction	5,806		(1,479		)	—		(1,479		)	(2,207		)	2,120
Residential mortgage	4,474		(963		)	323		(640		)	2,003			5,837
Consumer	3,328		(786		)	114		(672		)	1,828			4,484
Total loans	$	28,877	$	(9,331	)	$	1,966	$	(7,365	)	$	19,100		$	40,612
Annualized net charge-offs to average loans outstanding														0.24		%

	September 30, 2013
	Beginning balance		Charge-offs			Recoveries		Net charge-offs			Provision		Ending balance
Commercial & industrial	$	4,603	$	(1,354	)	$	410	$	(944	)	$	1,643	$	5,302
Commercial real estate	7,230		(3,725		)	577		(3,148		)	5,885		9,967
Acquisition, development & construction	8,526		(3,422		)	182		(3,240		)	520		5,806
Residential mortgage	4,359		(2,547		)	101		(2,446		)	2,561		4,474
Consumer	3,564		(2,009		)	232		(1,777		)	1,541		3,328
Total loans	$	28,282	$	(13,057	)	$	1,502	$	(11,555	)	$	12,150	$	28,877
Annualized net charge-offs to average loans outstanding													0.52		%

	September 30, 2012
	Beginning balance		Charge-offs			Recoveries		Net charge-offs			Provision			Ending balance
Commercial & industrial	$	5,945	$	(1,526	)	$	1,116	$	(410	)	$	(932	)	$	4,603
Commercial real estate	5,568		(2,707		)	528		(2,179		)	3,841			7,230
Acquisition, development & construction	9,895		(4,124		)	299		(3,825		)	2,456			8,526
Residential mortgage	3,498		(2,551		)	356		(2,195		)	3,056			4,359
Consumer	3,011		(1,901		)	263		(1,638		)	2,191			3,564
Total loans	$	27,917	$	(12,809	)	$	2,562	$	(10,247	)	$	10,612		$	28,282
Annualized net charge-offs to average loans outstanding														0.56		%

Management considers a loan to be impaired when, based on current information and events, it is determined that the Company will not be able to collect all amounts due according to the loan contract, including scheduled interest payments. Determination of impairment is treated the same across all classes of loans on a loan-by-loan basis, except residential mortgage loans and home equity lines of credit with an outstanding balance of $500 or less, which are evaluated for impairment on a homogeneous pool basis. When management identifies a loan as impaired, the impairment is measured based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, except when the sole remaining source of repayment of the loan is the operation or liquidation of the collateral. In these cases, management uses the current fair value of the collateral, less selling costs when foreclosure is probable, instead of discounted cash flows. If management determines that the value of the impaired loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is generally recognized through a charge-off to the allowance for loan losses. 

When the ultimate collectibility of the total principal of an impaired loan is in doubt and the loan is on non-accrual status, all payments are applied to principal, under the cost recovery method. When the ultimate collectibility of the total principal of an impaired loan is not in doubt and the loan is on non-accrual status, contractual interest is credited to interest income when received, under the cash basis method.

The following table sets forth loans evaluated for impairment by segment and the allowance evaluated by segment at September 30, 2014:

	Loans evaluated by segment								Allowance evaluated by segment
	Individually evaluated for impairment		Collectively evaluated for impairment		Purchased credit impaired loans		Total  loans		Individually evaluated for impairment		Collectively evaluated for impairment		Total allowance for loan losses
Commercial & industrial	$	4,177	$	1,158,837	$	1,523	$	1,164,537	$	—	$	9,536	$	9,536
Payroll finance	—		145,474		—		145,474		—		1,379		1,379
Warehouse lending	—		192,003		—		192,003		—		630		630
Factored receivables	—		181,433		—		181,433		—		1,294		1,294
Equipment financing	—		393,027		—		393,027		—		2,621		2,621
Commercial real estate	13,750		1,435,163		139		1,449,052		—		10,844		10,844
Multi-family	—		368,524		—		368,524		—		1,867		1,867
Acquisition, development & construction	17,766		74,383		—		92,149		—		2,120		2,120
Residential mortgage	515		567,815		2,101		570,431		—		5,837		5,837
Consumer	—		203,808		—		203,808		—		4,484		4,484
Total loans	$	36,208	$	4,720,467	$	3,763	$	4,760,438	$	—	$	40,612	$	40,612

There was no amount included in the allowance for loan losses associated with purchased credit impaired loans at September 30, 2014, as there was no further deterioration in the credit quality of these loans since the Merger date.

The following table sets forth loans evaluated for impairment by segment and the allowance evaluated by segment at September 30, 2013:

	Loans evaluated by segment						Allowance evaluated by segment
	Individually evaluated for impairment		Collectively evaluated for impairment		Total loans		Individually evaluated for impairment		Collectively evaluated for impairment		Total allowance for loan losses
Commercial & industrial	$	2,631	$	437,156	$	439,787	$	249	$	5,053	$	5,302
Commercial real estate	14,091		1,262,946		1,277,037		803		9,164		9,967
Acquisition, development & construction	19,582		82,912		102,494		540		5,266		5,806
Residential mortgage	515		399,494		400,009		—		4,474		4,474
Consumer	2		193,569		193,571		1		3,327		3,328
Total loans	$	36,821	$	2,376,077	$	2,412,898	$	1,593	$	27,284	$	28,877

The following table presents loans individually evaluated for impairment by segment of loans at September 30, 2014 and September 30, 2013:

	September 30, 2014						September 30, 2013
	Unpaid principal balance		Recorded investment		Related allowance		Unpaid principal balance		Recorded investment		Related allowance
With no related allowance recorded:
Commercial & industrial	$	4,177	$	4,177	$	—	$	2,175	$	2,131	$	—
Commercial real estate	13,886		13,750		—		12,451		11,820		—
Acquisition, development & construction	18,676		17,766		—		17,971		17,945		—
Residential mortgage	515		515		—		515		515		—
Subtotal	37,254		36,208		—		33,112		32,411		—
With an allowance recorded:
Commercial & industrial	—		—		—		500		500		249
Commercial real estate	—		—		—		3,150		2,271		803
Acquisition, development & construction	—		—		—		2,753		1,637		540
Consumer	—		—		—		2		2		1
Subtotal	—		—		—		6,405		4,410		1,593
Total	$	37,254	$	36,208	$	—	$	39,517	$	36,821	$	1,593

During the quarter ended March 31, 2014, the Company modified its allowance for loan loss policy to generally require a charge-off of the difference between the book balance of a collateral dependent impaired loan and the net value of the collateral securing the loan.

The following table presents the average recorded investment and interest income recognized related to loans individually evaluated for impairment by segment for the fiscal year September 30, 2014 and 2013:

	September 30, 2014						September 30, 2013
	YTD average 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:
Commercial & industrial	$	4,180	$	—	$	—	$	1,821	$	91	$	86
Commercial real estate	14,016		186		180		17,325		286		275
Acquisition, development & construction	20,525		239		239		12,827		631		587
Residential mortgage	515		—		—		309		—		—
Consumer	—		—		—		61		—		—
Subtotal	39,236		425		419		32,343		1,008		948
With an allowance recorded:
Commercial & industrial	—		—		—		705		—		—
Commercial real estate	—		—		—		6,646		7		7
Acquisition, development & construction	—		—		—		1,104		—		—
Residential mortgage	—		—		—		1,602		14		10
Consumer	—		—		—		228		—		—
Subtotal	—		—		—		10,285		21		17
Total	$	39,236	$	425	$	419	$	42,628	$	1,029	$	965

In the fiscal year ended September 30, 2012, the Company recognized interest income of $1,878 including cash-basis interest income recognized of $1,136 on $58,195 of average impaired loans.

Troubled Debt Restructuring:

The following tables set forth the amounts and past due status of the Company’s TDRs at September 30, 2014 and 2013:

	September 30, 2014
	Current loans		30-59 days past due		60-89 days past due		90+ days past due		Non- accrual		Total
Commercial & industrial	$	275	$	—	$	—	$	—	$	1,618	$	1,893
Equipment financing	435		—		—		—		—		435
Commercial real estate	4,838		—		—		—		447		5,285
Acquisition, development & construction	5,732		—		—		—		6,817		12,549
Residential mortgage	5,858		346		169		—		2,841		9,214
Consumer	—		—		—		—		221		221
Total	$	17,138	$	346	$	169	$	—	$	11,944	$	29,597
Allowance for loan losses	$	409	$	—	$	31	$	—	$	451	$	891

	September 30, 2013
	Current loans		30-59 days past due		60-89 days past due		90+ days past due		Non- accrual		Total
Commercial & industrial	$	1,843	$	—	$	—	$	141	$	—	$	1,984
Commercial real estate	5,305		—		—		—		—		5,305
Acquisition, development & construction	14,190		—		—		—		151		14,341
Residential mortgage	2,416		—		—		—		1,792		4,208
Consumer	—		—		—		—		256		256
Total loans	$	23,754	$	—	$	—	$	141	$	2,199	$	26,094
Allowance for loan losses	$	438	$	—	$	—	$	—	$	439	$	877

The Company had outstanding commitments to lend additional amounts of $0 and $4,101 to customers with loans classified as TDRs as of September 30, 2014 and September 30, 2013, respectively.

The following table presents loans by segment modified as TDRs that occurred during the twelve months ended September 30, 2014 and 2013:

	September 30, 2014					September 30, 2013
		Recorded investment					Recorded investment
	Number	Pre- modification		Post- modification		Number	Pre- modification		Post- modification
Commercial & industrial	—	$	—	$	—	5	$	2,001	$	2,001
Commercial real estate	—	—		—		2	2,682		2,682
Acquisition, development & construction	2	1,060		1,060		7	5,772		5,772
Residential mortgage	—	—		—		6	1,436		1,372
Consumer	—	—		—		1	302		302
Total restructured loans	2	$	1,060	$	1,060	21	$	12,193	$	12,129

There were 12 TDRs in the fiscal year ended September 30, 2012, with a pre-modification balance of $9,160 and a post-modification balance of $8,945.

The TDRs presented above increased the allowance for loan losses by $0, $300 and $134 and resulted in charge-offs of $0, $110 and $0 for the years ended September 30, 2014, 2013, and 2012, respectively.

There were no TDRs that were modified during the last twelve months that had subsequently defaulted during the year.

Credit Quality Indicators

As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to (i) the weighted-average risk grade of commercial loans, (ii) the level of classified commercial loans, (iii) the delinquency status of consumer loans (residential mortgage and home equity lines of credit (“HELOC”)), (iv) net charge-offs, (v) non-performing loans (see details above) and (vi) the general economic conditions in the greater New York metropolitan region. The Bank analyzes loans individually by classifying the loans as to credit risk, except residential mortgage loans and consumer loans, which are evaluated on a homogeneous pool basis unless the loan balance is greater than $500. This analysis is performed at least quarterly on all criticized/classified loans. The Bank uses the following definitions of risk ratings:

1 and 2 - These grades include loans that are secured by cash, marketable securities or cash surrender value of life insurance policies.

3 - This grade includes loans to borrowers with strong earnings and cash flow and that have the ability to service debt. The borrower’s assets and liabilities are generally well matched and are above average quality. The borrower has ready access to multiple sources of funding including alternatives such as term loans, private equity placements or trade credit.

4 - This grade includes loans to borrowers with above average cash flow, adequate earnings and debt service coverage ratios. The borrower generates discretionary cash flow, assets and liabilities are reasonably matched, and the borrower has access to other sources of debt funding or additional trade credit at market rates.

5 - This grade includes loans to borrowers with adequate earnings and cash flow and reasonable debt service coverage ratios. Overall leverage is acceptable and there is average reliance upon trade debt. Management has a reasonable amount of experience and depth, and owners are willing to invest available outside capital as necessary.

6 - This grade includes loans to borrowers where there is evidence of some strain, earnings are inconsistent and volatile, and the borrowers’ outlook is uncertain. Generally such borrowers have higher leverage than those with a better risk rating. These borrowers typically have limited access to alternative sources of bank debt and may be dependent upon debt funding for working capital support.

7 - Special Mention (OCC definition) - Other Assets Especially Mentioned (OAEM) are loans that have potential weaknesses which may, if not reviewed or corrected, weaken the asset or inadequately protect the Bank’s credit position at some future date. Such assets constitute an undue and unwarranted credit risk but not to the point of justifying a classification of “Substandard.” The credit risk may be relatively minor yet constitute an unwarranted risk in light of the circumstances surrounding a specific asset.

8 - Substandard (OCC definition) - These loans are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a well-defined weakness that jeopardizes the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some losses if the deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets classified as substandard.

9 - Doubtful (OCC definition)- These loans have all the weakness inherent in one classified as “Substandard” with the added characteristics that the weakness makes collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors which may work to the advantage and strengthening of the asset, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors include proposed merger, acquisition, or liquidating procedures, capital injection, perfecting liens or additional collateral and refinancing plans.

10 - Loss (OCC definition) - These loans are charged-off because they are determined to be uncollectible and unbankable assets. This classification does not reflect that the asset has no absolute recovery or salvage value, but rather it is not practical or desirable to defer writing-off this asset even though partial recovery may be effected in the future. Losses should be taken in the period in which they are determined to be uncollectible.

Loans that are risk-rated 1 through 6 as defined above are considered to be pass-rated loans. As of September 30, 2014 and 2013, the risk category of gross loans by segment was as follows:

	September 30, 2014						September 30, 2013
	Special mention		Substandard		Doubtful		Special mention		Substandard		Doubtful
Commercial & industrial	$	24,980	$	5,749	$	—	$	3,545	$	3,855	$	365
Payroll finance	—		346		—		—		—		—
Factored receivables	46		370		—		—		—		—
Equipment financing	—		262		—		—		—		—
Commercial real estate	8,720		26,826		—		7,279		24,561		227
Multi-family	—		131		—		—		—		—
Acquisition, development & construction	1,040		16,456		—		1,867		19,410		—
Residential mortgage	2,988		16,981		—		824		9,786		—
Consumer	1,779		5,972		—		15		2,891		—
Total	$	39,553	$	73,093	$	—	$	13,530	$	60,503	$	592

XML

Securities

12 Months Ended

Sep. 30, 2014

Investments, Debt and Equity Securities [Abstract]

Securities

Securities

A summary of amortized cost and estimated fair value of our securities is presented below:    

	September 30, 2014									September 30, 2013
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value		Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
Available for Sale
Residential MBS:
Agency-backed	$	477,003	$	2,257	$	(1,555	)	$	477,705	$	284,837	$	1,849	$	(4,157	)	$	282,529
CMO/Other MBS	115,395		242		(1,492		)	114,145		169,336		356		(3,038		)	166,654
Total residential MBS	592,398		2,499		(3,047		)	591,850		454,173		2,205		(7,195		)	449,183
Other securities:
Federal agencies	158,114		3		(5,303		)	152,814		273,637		—		(12,090		)	261,547
Corporate	195,547		149		(2,857		)	192,839		118,575		153		(3,795		)	114,933
State and municipal	131,715		3,439		(256		)	134,898		127,324		3,447		(2,041		)	128,730
Trust preferred	37,684		766		(38		)	38,412		—		—		—			—
Total other securities	523,060		4,357		(8,454		)	518,963		519,536		3,600		(17,926		)	505,210
Total available for sale	$	1,115,458	$	6,856	$	(11,501	)	$	1,110,813	$	973,709	$	5,805	$	(25,121	)	$	954,393

	September 30, 2014									September 30, 2013
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value		Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
Held to Maturity
Residential MBS:
Agency-backed	$	142,329	$	1,360	$	(103	)	143,586		130,371		716		(108		)	130,979
CMO/Other MBS	62,690		9		(1,204		)	61,495		25,776		33		(315		)	25,494
Total residential MBS	205,019		1,369		(1,307		)	205,081		156,147		749		(423		)	156,473
Other securities:
Federal agencies	136,413		2,634		(962		)	138,085		77,341		—		(3,458		)	73,883
State and municipal	232,643		6,814		(123		)	239,334		19,011		556		(546		)	19,021
Other	5,000		338		—			5,338		1,500		19		—			1,519
Total other securities	374,056		9,786		(1,085		)	382,757		97,852		575		(4,004		)	94,423
Total held to maturity	$	579,075	$	11,155	$	(2,392	)	$	587,838	$	253,999	$	1,324	$	(4,427	)	$	250,896

In accordance with ASC Subtopic 320-10-25-6, in a significant business combination a company may transfer held to maturity securities to available for sale securities to maintain the company’s existing interest rate risk position or credit risk policy. Based on management’s review of the combined investment securities portfolio and implications for asset and liability management, investment securities totaling $165,230 were transferred from held to maturity to available for sale in connection with the Merger. Investment securities that were transferred included residential mortgage-backed securities, federal agency securities and state and municipal securities and was based mainly on the premium amortization and extension risk inherent in these securities. Concurrent with this repositioning, a total of $221,904 of investment securities were also transferred from available for sale to held to maturity. Substantially all of the securities transferred from available for sale to held to maturity have a maturity date in 2020 or beyond. At the date of transfer, these securities were in an unrealized loss position of $9,657, which will be accreted into interest income using the level yield method over the life of the securities, which is estimated to be approximately 5.3 year. At September 30, 2014 the remaining unrealized loss was $8,947. The unrealized loss amount is included in accumulated other comprehensive (loss) on an after-tax basis. Management believes the transfers of investment securities discussed above maintain the Company’s interest rate risk position and credit risk profile on a combined basis post-Merger.

The amortized cost and estimated fair value of securities at September 30, 2014 are presented below by contractual maturity. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Residential mortgage-backed securities are shown separately since they are not due at a single maturity date.

	September 30, 2014
	Available for sale				Held to maturity
	Amortized cost		Fair value		Amortized cost		Fair value
Other securities remaining period to contractual maturity:
One year or less	$	2,100	$	2,112	$	8,847	$	8,897
One to five years	141,508		141,748		9,138		9,624
Five to ten years	334,295		328,902		189,494		192,109
Greater than ten years	45,157		46,201		166,577		172,127
Total other securities	523,060		518,963		374,056		382,757
Residential MBS	592,398		591,850		205,019		205,081
Total securities	$	1,115,458	$	1,110,813	$	579,075	$	587,838

Sales of securities for the periods indicated below were as follows:

	For the fiscal year ended September 30,
	2014			2013			2012
Available for sale:
Proceeds from sales	$	529,107		$	339,123		$	344,431
Gross realized gains	1,964			7,709			10,468
Gross realized losses	(1,323		)	(377		)	—
Income tax expense on realized net gains	172			2,282			2,475
Held to maturity: (1)
Proceeds from sales	$	—		$	1,187		$	—
Gross realized gains	—			59			—
Income tax expense on realized gains	—			18			—

⁽¹⁾ During the fiscal year ended September 30, 2013, the Company sold held to maturity securities after the Company had already collected at least 85% of the principal balance outstanding at acquisition.

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

	Continuous unrealized loss position
	Less than 12 months					12 months or longer					Total
	Fair value		Unrealized losses			Fair value		Unrealized losses			Fair value		Unrealized losses
Available for sale
September 30, 2014
Residential MBS:
Agency-backed	$	137,693	$	(516	)	$	41,516	$	(1,039	)	$	179,209	$	(1,555	)
CMO/other MBS	62,507		(446		)	29,499		(1,046		)	92,006		(1,492		)
Total residential MBS	200,200		(962		)	71,015		(2,085		)	271,215		(3,047		)
Other securities:
Federal agencies	6,153		(144		)	146,416		(5,159		)	152,569		(5,303		)
Corporate	97,833		(1,348		)	66,440		(1,509		)	164,273		(2,857		)
State and municipal	8,170		(58		)	12,809		(198		)	20,979		(256		)
Trust preferred	3,907		(38		)	—		—			3,907		(38		)
Total other securities	116,063		(1,588		)	225,665		(6,866		)	341,728		(8,454		)
Total	$	316,263	$	(2,550	)	$	296,680	$	(8,951	)	$	612,943	$	(11,501	)
September 30, 2013
Residential MBS:
Agency-backed	$	137,265	$	(4,157	)	$	—	$	—		$	137,265	$	(4,157	)
CMO/Other MBS	122,324		(2,742		)	7,820		(296		)	130,144		(3,038		)
Total residential MBS	259,589		(6,899		)	7,820		(296		)	267,409		(7,195		)
Other securities:
Federal agencies	261,547		(12,090		)	—		—			261,547		(12,090		)
State and municipal	43,585		(2,033		)	112		(8		)	43,697		(2,041		)
Corporate	95,013		(3,795		)	—		—			95,013		(3,795		)
Total other securities	400,145		(17,918		)	112		(8		)	400,257		(17,926		)
Total	$	659,734	$	(24,817	)	$	7,932	$	(304	)	$	667,666	$	(25,121	)

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

	Continuous unrealized loss position
	Less than 12 months					12 months or longer					Total
	Fair value		Unrealized losses			Fair value		Unrealized losses			Fair value		Unrealized losses
Held to maturity
September 30, 2014
Residential MBS:
Agency-backed	$	20,616	$	(103	)	$	—	$	—		$	20,616	$	(103	)
CMO/Other MBS	14,928		(368		)	42,646		(836		)	57,574		(1,204		)
Total residential MBS	35,544		(471		)	42,646		(836		)	78,190		(1,307		)
Other securities:
Federal agencies	23,756		(62		)	24,101		(900		)	47,857		(962		)
State and municipal	13,943		(100		)	1,479		(23		)	15,422		(123		)
Total other securities	37,699		(162		)	25,580		(923		)	63,279		(1,085		)
Total	$	73,243	$	(633	)	$	68,226	$	(1,759	)	$	141,469	$	(2,392	)
September 30, 2013
Residential MBS:
Agency-backed	$	10,963	$	(86	)	$	—	$	—		$	10,963	$	(86	)
CMO/Other MBS	31,412		(337		)	—		—			31,412		(337		)
Total residential MBS	42,375		(423		)	—		—			42,375		(423		)
Other securities:
Federal agencies	73,883		(3,458		)	—		—			73,883		(3,458		)
State and municipal	9,530		(546		)	—		—			9,530		(546		)
Total other securities	83,413		(4,004		)	—		—			83,413		(4,004		)
Total	$	125,788	$	(4,427	)	$	—	$	—		$	125,788	$	(4,427	)

Substantially all of the unrealized losses at September 30, 2014 relate to investment grade debt securities and are attributable to changes in market interest rates subsequent to purchase. At September 30, 2014, a total of 99 available for sale securities were in a continuous unrealized loss position for less than 12 months and 118 securities were in an unrealized loss position for 12 months or longer. For securities with fixed maturities, there are no securities past due or securities for which the Company currently believes it is not probable that it will collect all amounts due according to the contractual terms of the investment.

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

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

	September 30,
	2014		2013
Available for sale securities pledged for borrowings, at fair value	$	268,316	$	199,642
Available for sale securities pledged for municipal deposits, at fair value	532,770		580,756
Available for sale securities pledged for customer back-to-back swaps, at fair value	1,934		4,645
Held to maturity securities pledged for borrowings, at amortized cost	58,509		55,497
Held to maturity securities pledged for municipal deposits, at amortized cost	430,611		167,926
Total securities pledged	$	1,292,140	$	1,008,466

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Off-Balance-Sheet Financial Instruments

12 Months Ended

Sep. 30, 2014

Off-Balance-Sheet Financial Instruments [Abstract]

Off-Balance-Sheet Financial Instruments

Off-Balance-Sheet Financial Instruments

In the normal course of business, the Company enters into various transactions, which in accordance with generally accepted accounting principles are not included in its consolidated balance sheet. The Company enters into these transactions to meet the financing needs of its customers. These transactions include commitments to extend credit and standby letters of credit, which involve, to varying degrees, elements of credit risk and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. The Company minimizes its exposure to loss under these commitments by subjecting them to credit approval and monitoring procedures.

The Company enters into contractual commitments to extend credit, normally with fixed expiration dates or termination clauses, at specified rates and for specific purposes.  Substantially all of the Company’s commitments to extend credit are contingent upon customers maintaining specific credit standards at the time of loan funding. Standby letters of credit are written conditional commitments issued by the Company to guarantee the performance of a customer to a third-party. In the event the customer does not perform in accordance with the terms of the agreement with the third-party, the Company would be required to fund the commitment. The maximum potential amount of future payments the Company could be required to make is represented by the contractual amount of the commitment. If the commitment were funded, the Company would be entitled to seek recovery from the customer. Based on the Company’s credit risk exposure assessment of standby letter of credit arrangements, the arrangements contain security and debt covenants similar to those contained in loan agreements. As of September 30, 2014, the Company had $97,468 in outstanding letters of credit, of which $21,756 were secured by cash collateral and $34,687 were secured by other collateral. The carrying value of these obligations are not considered material.

The contractual or notional amounts of these instruments, which reflect the extent of the Company’s involvement in particular classes of off-balance sheet financial instruments, are summarized as follows:

	September 30,
	2014		2013
Loan origination commitments	$	213,793	$	171,032
Unused lines of credit	306,482		207,201
Letters of credit	97,468		35,052

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Employee Benefit Plans And Stock-Based Compensation Plans

12 Months Ended

Sep. 30, 2014

Compensation and Retirement Disclosure [Abstract]

Employee Benefit Plans And Stock-Based Compensation Plans

Employee Benefit Plans and Stock-Based Compensation Plans

(a)Pension Plans

On May 31, 2014, the Company merged the Provident Bank Benefit Pension Plan (the “legacy Provident Plan”) and the Legacy Sterling/Sterling National Bank Employees’ Retirement Plan (the “Legacy Sterling Plan”) and formed the Sterling National Bank Defined Benefit Pension Plan. The legacy Provident Plan covers employees that were eligible as of September 30, 2006. The Board of Directors approved a curtailment to the legacy Provident Plan effective September 30, 2006. At that time, all benefit accruals for future service ceased and no new participants were allowed to enter the Plan. The purpose of the Plan curtailment was to afford flexibility in the retirement benefits the Company provides, while preserving all retirement plan participants’ earned and vested benefits, and to manage the increasing costs associated with the defined benefit pension plan. The Legacy Sterling Plan was a defined benefit plan that covered eligible employees of Legacy Sterling and Legacy Sterling National Bank and certain of its subsidiaries who were hired prior to January 3, 2006 and who attained age 21 prior to January 3, 2007. Effective October 31, 2013, the Legacy Sterling Plan was amended and the accrued benefit of each eligible actively employed participant that had not yet commenced benefits was increased by approximately 4.4% and the accrual of future service benefits ceased. 

The following is a summary of changes in the projected benefit obligation and fair value of plan assets. The Company uses a September 30 measurement date for its pension plans.

	September 30,
	2014			2013
Changes in projected benefit obligation:
Beginning of year balance	$	31,705		$	35,471
Benefit obligation of the Legacy Sterling Plan at October 31, 2013	52,296			—
Service cost	—			—
Interest cost	2,779			1,452
Actuarial loss (gain)	9,460			(3,672		)
Partial settlement	(44,774		)	—
Benefits and distributions paid	(1,748		)	(1,546		)
End of year balance	49,718			31,705
Changes in fair value of plan assets:
Beginning of year balance	35,417			32,657
Fair value of the Legacy Sterling Plan assets at October 31, 2013	71,538			—
Actual gain on plan assets	8,137			4,306
Employer contributions	—			—
Partial settlement	(44,774		)	—
Benefits and distributions paid	(1,748		)	(1,546		)
End of year balance	68,570			35,417
Funded status at end of year	$	18,852		$	3,712

During the year ended September 30, 2014 the Company settled a portion of the pension obligation associated with retired employees in the amount of $44,774 through the purchase of annuities.

The over-funded status of the Sterling National Bank Defined Benefit Pension Plan is included in other assets in the Consolidated Balance Sheets.

The components of net periodic pension expense were as follows:

	For the year ended September 30,
	2014			2013			2012
Service cost	$	—		$	—		$	—
Interest cost	2,779			1,452			1,501
Expected return on plan assets	(3,380		)	(2,462		)	(2,125		)
Amortization of unrecognized actuarial loss	236			2,062			2,316
Partial settlement charge	3,922			—			—
Net periodic pension expense	$	3,557		$	1,052		$	1,692

Net periodic pension expense is included in compensation and benefits in the Consolidated Income Statements.

The amount of unrecognized actuarial loss and prior service cost that is expected to be amortized to net periodic pension expense during the fiscal year ending September 30, 2015 is $0.

Amounts recognized in accumulated other comprehensive (loss) at September 30, 2014 and 2013 consisted of:

	September 30,
	2014			2013
Unrecognized actuarial loss	$	(6,024	)	$	(5,479	)
Deferred tax asset	2,556			2,225
Net amount recognized in accumulated other comprehensive (loss)	$	(3,468	)	$	(3,254	)

The principal actuarial assumptions used at September 30, 2014 and 2013 were as follows:

	September 30,
	2014		2013
Projected benefit obligation:
Discount rate	4.50	%	5.20	%
Net periodic pension cost:
Discount rate	4.50	%	5.20	%
Long-term rate of return on plan assets	4.00	%	7.75	%

The discount rate used in the measurement of the projected benefit obligation is determined by comparing the expected future retirement benefit payment cash flows of the Plan to the cash flows of a high-quality corporate bond portfolio as of the measurement date. The expected long-term rate of return on Plan assets reflect earnings expectations on existing Plan assets.  In estimating this rate, appropriate consideration was given to historical returns earned by Plan assets in the funds and the rates of return expected to be available for reinvestment.  The rate of return estimated at September 30, 2014 reflects the shift in the allocation of the Plan assets to a liability driven investment strategy which is more heavily weighted towards long-term fixed income assets with a similar duration profile to the Plan liabilities.  

Estimated future benefit payments are the following for the years ending September 30:

2015	$	726
2016	902
2017	1,079
2018	1,625
2019	1,851
2020 - 2024	13,461

The Company’s funding policy is to contribute annually an amount sufficient to meet statutory minimum funding requirements, but not in excess of the maximum amount deductible for Federal income tax purposes. Contributions are intended to provide not only for benefits attributed to service to date, but also for benefits expected to be earned in the future.

The following is a description of the valuation methodologies used for assets measured at fair value. There were no changes in the methodologies used at September 30, 2014 and 2013. See Note 17. “Fair Value Measurements” for a detailed discussion of the three levels of inputs that may be used to measure fair values.

The fair value of the Plan assets is based on the lowest level of any input that is significant to the fair value measurement within the fair value hierarchy. Plan assets consisted of pooled separate accounts at September 30, 2014. The fair value of shares of units of participation in pooled separate accounts are based on the net asset values of the funds reported by the fund managers as of September 30, 2014 and recent transaction prices (Level 2 inputs). Assets allocated to these pooled separate accounts can include, but are not limited to stocks (both domestic and foreign), bonds and mutual funds. While some pooled separate accounts may have publicly quoted prices (Level 1 inputs), the units of separate accounts are not publicly quoted and are therefore classified as Level 2. The fair value of Plan assets by asset category as of September 30, 2014 and 2013, was the following:

	September 30, 2014
	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Asset category:
Intermediate term bond	$	8,629	$	—	$	8,629	$	—
Long-term bond	59,892		—		59,892		—
Total assets	$	68,521	$	—	$	68,521	$	—

	September 30, 2013
	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Asset category:
Large cap U.S. equity	$	16,378	$	—	$	16,378	$	—
Small and mid cap U.S. equity	4,443		—		4,443		—
International equity	3,654		—		3,654		—
Total equity	24,475		—		24,475		—
Total balanced asset allocation	1,691		—		1,691		—
High yield bond	1,018		—		1,018		—
Intermediate term bond	8,233		—		8,233		—
Total fixed income	9,251		—		9,251		—
Total assets	$	35,417	$	—	$	35,417	$	—

The Company’s policy is to invest the Plan assets in a prudent manner for the purpose of providing benefit payments to participants and offsetting reasonable expenses of administration. Historically, the Company’s investment strategy was designed to provide a total return that, over the long-term, placed a strong emphasis on the preservation of capital and compliance with applicable regulations and laws. Management intends to terminate the Plan in fiscal 2015 subject to obtaining required approvals from the Internal Revenue Service and other regulators. Therefore, the investment allocation of Plan assets was shifted in fiscal 2014 to a liability driven investment strategy which is more heavily weighted towards long-term fixed income assets with a similar duration profile to the Plan liabilities. As of September 30, 2014, the majority of the Plan assets were invested in funds specifically designed for liability driven investment strategies and had a weighted average expected rate of return of 4.0%.

The Plan’s investment policy prohibits the direct investment in real estate but allows the Plan’s mutual funds to include a small percentage of real estate related investments. The investment strategy utilizes asset allocation as a principal determinant for establishing an appropriate risk profile. Weighted average pension plan asset allocations based on the fair value of such assets at September 30, 2014 and September 30, 2013 and target allocation ranges for 2014, by asset category, are as follows:

	2014		2013		Target allocation range 2014	Weighted average expected rate of return
Large cap U.S. equity	—	%	44	%		—	%
Small and mid cap U.S. equity	—		11			—
International equity	—		10			—
Total equity	—		65		0%	—
Total balanced asset allocation	—		5			—
High yield bond	—		3			—
Intermediate term bond	13		27			—
Long-term bond	87		—			—
Total fixed income	100		30		95% - 100%	4.0
Total assets	100	%	100	%		4.0	%
Cash	—		—		0% to 5%	—

There were no pension plan assets consisting of Sterling Bancorp equity securities (common stock) at September 30, 2014 or at September 30, 2013.

The Company makes contributions to its funded qualified pension plans as required by government regulation or as deemed appropriate by management after considering the fair value of plan assets, expected returns on such assets, and the present value of benefit obligations of the plans. At this time, the Company has not determined whether contributions in fiscal 2015 will be made.

(b) Other Post Retirement Benefit Plans

The Company provides other post retirement benefit plans, which are unfunded. Included in the tables below is information regarding the Company’s optional medical, dental and life insurance benefits to retirees plan, Supplemental Executive Retirement Plan to certain former directors and officers of the Company, life insurance benefits to certain directors, officers and former officers of Legacy Sterling.

Data relating to other post retirement benefit plans is the following:

	September 30,
	2014			2013
Changes in accumulated post retirement benefit obligation:
Beginning of year	$	3,302		$	3,103
Obligations assumed from Legacy Sterling	9,644			—
Service cost	51			48
Interest cost	683			134
Actuarial loss	79			177
Curtailment (gain)	(2,485		)	—
Benefits paid	(284		)	(160		)
End of year	10,990			3,302
Changes in fair value of plan assets:
Beginning of year	$	—		$	—
Employer contributions	284			160
Plan participants’ contributions	—			—
Benefits paid	(284		)	(160		)
End of year	—			—
Funded status	$	(10,990	)	$	(3,302	)

Components of net periodic (benefit) expense for other post retirement benefit plans was the following:

	For the year ended September 30,
	2014			2013		2012
Service cost	$	51		$	48	$	46
Interest cost	683			134		125
Amortization of transition obligation	34			24		24
Amortization of prior service cost	270			47		47
Amortization of net actuarial (gain) loss	(45		)	2		(25		)
Curtailment (gain)	(2,485		)	—		—
Total	$	(1,492	)	$	255	$	217

The Company terminated the optional medical and dental plan to retirees effective September 30, 2014 and all payments under the plan will cease on December 31, 2014. Net periodic benefit expense for other post retirement benefit plans is included in non-interest expense - compensation and employee benefits for the fiscal years ended September 30, 2014, 2013 and 2012. The Company’s liability under its other post retirement benefit plans is included in other liabilities in the balance sheet at September 30, 2014 and 2013.

Estimated future benefit payments are the following for the years ending September 30:

2015	$	660
2016	231
2017	271
2018	319
2019	373
2020 - 2024	2,370

Plan assumptions for the other post retirement medical, dental and vision plans include the following:

	For the year ended September 30,
	2014		2013
Medical trend rate next year	4.5	%	4.5	%
Ultimate trend rate	4.5		4.5
Discount rate	3.50% to 4.27%		4.2
Discount rate used to value periodic cost	3.50% to 4.20%		4.1

There is no impact of a 1% increase or decrease in health care trend rate due to the Company’s cap on cost.

(c) Employee Savings Plan

The Company also sponsors a defined contribution plan established under Section 401(k) of the IRS Code. Eligible employees may elect to contribute up to 50.0% of their compensation to the plan. The Company currently makes matching contributions equal to 50.0% of a participant’s contributions up to a maximum matching contribution of 3.0% of eligible compensation. The plan also provides for a discretionary profit sharing component, in addition to the matching contributions. Fiscal year 2014 did not include a profit sharing component. Voluntary matching and profit sharing contributions are invested in accordance with the participant’s direction in one or a number of investment options. Savings plan expense was $1,614, $935 and $1,029 for the years ended September 30, 2014, 2013 and 2012, respectively.

(d) Employee Stock Ownership Plan (“ESOP”)

In connection with the Second-Step Stock Conversion and Offering in January 2004, the Company established an ESOP for substantially all eligible employees who meet certain age and service requirements. The ESOP borrowed $9,987 from Sterling and used the funds to purchase 998,650 shares of common stock in the offering. The term of this ESOP loan was twenty years.

On October 30, 2013,  the Company terminated the ESOP.  In accordance with the provisions of the plan, all participants received contributions for calendar year 2013 and became 100% vested in their accounts.  On February 4, 2014, the ESOP held 499,330 shares of the Company’s common stock.  Of these shares, 488,403 were used to retire the ESOP trust outstanding loan obligation, which was $5,983 including accrued interest.  In accordance with the provisions of the ESOP, the remaining 10,927 shares were allocated ratably to ESOP participants.  ESOP expense was $295, $497, and $390 for the years ended September 30, 2014, 2013 and 2012, respectively.

(e) Stock Compensation Plans

The Company has active stock compensation plans as described below.

The Company’s stockholders approved the 2014 Stock Incentive Plan (the “2014 Plan”) on February 20, 2014. The 2014 Plan permits the grant of stock options, stock appreciation rights, restricted stock (both time-based and performance-based), restricted stock units, performance units, deferred stock, and other stock-based awards for up to 3,400,000 shares of common stock. At September 30, 2014 there were 3,350,761 shares available for future grant. The 2014 Plan replaced the Company’s 2012 Stock Incentive Plan (the “2012 Plan”) described below.

Under the 2014 Plan, any shares that are subject to stock options or stock appreciation rights are counted as one share deducted from the 2014 Plan for every one share delivered under those awards. Any shares granted under the 2014 Plan that are subject to awards other than stock options and stock appreciation rights are counted as 3.5 shares deducted from the 2014 Plan for every one share delivered under those awards.

The 2012 Plan was a shareholder-approved plan that permitted the grant of stock options, stock appreciation rights, restricted stock (both time-based and performance-based), restricted stock units, performance units, deferred stock and other stock-based awards. Prior to the approval of the 2014 Plan, there were 566,554 shares remaining for issuance under the 2012 Plan. These shares are included in the aggregate 3,400,000 shares available under the 2014 Plan. The Company will no longer make awards under the 2012 Plan.

The Company’s 2004 Stock Incentive Plan (the “2004 Plan”), was a shareholder-approved plan that permitted the grant of stock options to its employees for up to 2,796,220 shares of common stock. The Company will no longer make awards under the 2004 Plan. As of September 30, 2014, 11,533 restricted shares awarded under the 2004 Plan were potentially subject to accelerated vesting as the employees were eligible for retirement.

Stock option awards are granted with a fair value equal to the market price of the Company’s common stock at the date of grant; the awards generally vest in equal installments annually on the anniversary date and have total vesting periods ranging from 2 to 5 years and stock options have 10 year contractual terms.

The Company’s 2004 Restricted Stock Plan, which historically has been referred to as the Recognition and Retention Plan (“RRP”), provides for the issuance of shares to directors and officers. RRP shares vest annually on the anniversary of the grant date over the vesting period. There were no shares remaining that are authorized and available for future grant under the RRP at September 30, 2014.

In addition to the above plans, the Company provided awards under its 2011 Employment Inducement Stock Program which included options to purchase 107,256 shares of common stock and restricted stock awards covering 29,550 shares of common stock, both of which vest in four equal installments through July 2015, and performance-based restricted stock awards covering 11,820 shares which vest upon attainment of designated performance conditions in combination with continued service through December 31, 2014. These awards are governed by the terms of an award notice and the terms of the 2004 Plan.

In connection with the Merger, the Company granted 104,152 options at an exercise price of $14.25 per share pursuant to a Registration Statement on Form S-8 under which the Company assumed all outstanding fully vested Legacy Sterling stock options. Substantially all of these options expire March 15, 2017. During the fiscal year ended September 30, 2014, 37,873 of these awards were canceled or forfeited. The Company also granted 95,991 shares under the Sterling Bancorp 2013 Employment Inducement Award Plan to certain executive officers of Legacy Sterling. In addition, the Company issued 255,973 shares of restricted stock from shares available under the Company’s 2012 Plan to certain executives of Legacy Sterling. The weighted average grant date fair value was $11.72 per share and the restricted stock awards vest in equal annual installments on the anniversary date over a three-year period.

The following table summarizes the activity in the Company’s active stock-based compensation plans for September 30, 2014:

			Non-vested stock awards/stock units outstanding					Stock options outstanding
	Shares available for grant		Number of shares		Weighted average grant date fair value			Number of shares		Weighted average exercise price
Balance at October 1, 2013	2,066,184		209,697		$	8.73		2,114,509		$	10.71
2014 Stock Incentive Plan	3,400,000
2012 Stock Incentive Plan termination	(566,554	)
Grants associated with the Merger(1)	(921,503	)	351,964		11.72			104,152		14.25
Granted (1)	(719,674	)	115,145		11.53			324,862		11.45
Stock awards vested	—		(69,211	)	9.51			—		—
Exercised	—		—		—			(507,955	)	11.29
Forfeited	439,594		(18,841	)	(9.18		)	(375,235	)	12.24
Canceled/expired	(347,286	)	—		—			—
Balance at September 30, 2014	3,350,761		588,754		$	10.99		1,660,333		$	10.55
Exercisable at September 30, 2014								951,492		$	11.11

(1) Reflects certain non-vested stock awards that count as 3.5 shares or 3.6 shares for each share granted.

Other information regarding options outstanding at September 30, 2014 follows:

	Outstanding				Exercisable
		Weighted average				Weighted average
	Number of stock options	Exercise price		Life (in years)	Number of stock options	Exercise price		Life (in years)
Range of exercise prices:
$6.71 to $9.00	689,711	$	8.38	7.57	322,148	$	8.36	7.57
$9.28 to $12.64	787,243	11.73		5.02	445,965	12.05		5.10
$12.84 to $13.92	183,379	13.68		2.69	183,379	13.68		2.69
	1,660,333	10.55		5.82	951,492	11.11		5.82

The total intrinsic value of outstanding in-the-money stock options and outstanding in-the-money exercisable stock options was $3.9 million and $1.8 million, at September 30, 2014.

Proceeds from stock option exercises were $2,980, $62 and $102 for fiscal 2014, 2013, and 2012, respectively.

The Company uses an option pricing model to estimate the grant date fair value of stock options granted. The weighted average estimated value per option granted was $2.51 in 2014, $2.74 in 2013, and $2.31 in 2012.

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

	For the year ended September 30,
	2014		2013		2012
Risk-free interest rate	1.8	%	1.0	%	1.4	%
Expected stock price volatility	26.4		40.8		40.0
Dividend yield (1)	2.0		2.6		3.0
Expected term in years	5.67		5.75		5.82

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

Stock-based compensation expense is recognized ratably over the requisite service period for all awards. Stock-based compensation expense associated with stock options and non-vested stock awards and the related income tax benefit was as follows:

	For the year ended September 30,
	2014		2013		2012
Stock options	$	901	$	695	$	521
Non-vested stock awards/performance units	2,508		1,047		276
Total	$	3,409	$	1,742	$	797
Income tax benefit	914		542		188

Unrecognized stock-based compensation expense at September 30, 2014 was as follows:

	September 30, 2014
Stock options	$	962
Non-vested stock awards/stock units	4,013
Total	$	4,975

The weighted average period over which unrecognized stock options was expected to be recognized was 1.66 years. The weighted average period over which unrecognized non-vested awards/performance units was expected to be recognized was 1.82 years.

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Borrowings and Senior Notes (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Jul. 02, 2013
By period to maturity:
Less than one year, Amount	$ 370,365	$ 158,897
Less than one year, Rate	0.69%	0.95%
One to two years, Amount	140,344	78,717
One to two years, Rate	0.59%	1.97%
Two to three years, Amount	257,442	191
Two to three years, Rate	3.52%	5.32%
Three to four years, Amount	168,402	202,414
Three to four years, Rate	4.38%	4.21%
Four to five years, Amount	0	118,033
Four to five years, Rate	0.00%	5.57%
Greater than five years, Amount	2,516	2,734
Greater than five years, Rate	4.92%	4.92%
Total borrowings, Amount	939,069	560,986
Total borrowings, Rate	2.12%	3.26%
FHLB Advances [Member]
By period to maturity:
Total borrowings, Amount	795,028	442,602
Total borrowings, Rate	1.75%	2.77%
FHLB Repurchase Agreements [Member]
By period to maturity:
Total borrowings, Amount	25,639	20,351
Total borrowings, Rate	0.39%	0.88%
Federal Funds Purchased [Member]
By period to maturity:
Total borrowings, Amount	20,000	0
Total borrowings, Rate	0.31%	0.00%
Senior Notes [Member]
By period to maturity:
Total borrowings, Amount	$ 98,402	$ 98,033	$ 100,000
Total borrowings, Rate	5.98%	5.98%

XML

Deposits

12 Months Ended

Sep. 30, 2014

Deposits [Abstract]

Deposits

Deposits

Deposit balances at September 30, 2014 and 2013 are summarized as follows:

	September 30,
	2014		2013
Non-interest bearing demand	$	1,799,685	$	943,934
Interest bearing demand	766,852		434,398
Savings	698,443		580,125
Money market	1,595,803		735,709
Certificates of deposit	437,871		268,128
Total deposits	$	5,298,654	$	2,962,294

Municipal deposits totaled $992,761 and $757,065 at September 30, 2014 and September 30, 2013, respectively. See Note 3. “Securities” for the amount of securities that were pledged as collateral for municipal deposits and other purposes.

Certificates of deposit had remaining periods to contractual maturity as follows:

	September 30,
	2014		2013
Remaining period to contractual maturity:
Less than one year	$	340,813	$	239,104
One to two years	53,319		17,248
Two to three years	35,632		5,185
Three to four years	4,000		3,062
Four to five years	4,107		3,529
Total certificates of deposit	$	437,871	$	268,128

Certificates of deposit accounts with a denomination of $100 or more totaled $290,483 and $104,225 at September 30, 2014 and 2013, respectively. Listed below are the Company’s brokered deposits at September 30, 2014 and 2013:

	September 30,
	2014		2013
Money market	$	84,022	$	34,571
Reciprocal CDAR’s 1	34,017		1,343
CDAR’s one way	3,028		768
Total brokered deposits	$	121,067	$	36,682

1 Certificate of deposit account registry service

XML

Securities (Details 2) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Available-for-sale Securities [Abstract]
Amortized cost, One year or less	$ 2,100
Amortized cost, One to five years	141,508
Amortized cost, Five to ten years	334,295
Amortized cost, Greater than ten years	45,157
Amortized cost, Total other securities	523,060
Amortized cost, Available for sale securities	1,115,458	973,709
Fair value, One year or less	2,112
Fair value, One to five years	141,748
Fair value, Five to ten years	328,902
Fair value, Greater than ten years	46,201
Fair value, Total other securities	518,963
Fair value, Available for sale securities	1,110,813	954,393
Held-to-Maturity Securities [Abstract]
Amortized cost, One year or less	8,847
Amortized cost, One to five years	9,138
Amortized cost, Five to ten years	189,494
Amortized cost, Greater than ten years	166,577
Amortized cost, Total other securities	374,056
Amortized cost, Held to maturity securities	579,075	253,999
Fair value, One year or less	8,897
Fair value, One to five years	9,624
Fair value, Five to ten years	192,109
Fair value, Greater than ten years	172,127
Fair value, Total other securities	382,757
Fair value, Held to maturity securities	587,838	250,896
Residential Mortgage Backed Securities [Member]
Available-for-sale Securities [Abstract]
Amortized cost, Available for sale securities	592,398	454,173
Fair value, Available for sale securities	591,850	449,183
Held-to-Maturity Securities [Abstract]
Amortized cost, Held to maturity securities	205,019
Fair value, Held to maturity securities	$ 205,081	$ 156,473

XML

Fair Value Measurements (Details 1) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Investment securities
Securities available for sale	$ 1,110,813	$ 954,393
Fair Value Measurements [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	591,850	449,183
Investment securities
Total investment securities available for sale	518,963	505,210
Securities available for sale	1,110,813	954,393
Interest rate caps and swaps		(997)
Total Assets	1,111,909	955,390
Swaps	1,096	997
Total Liabilities	1,096	997
Fair Value Measurements [Member] | Agency-backed [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	477,705	282,529
Fair Value Measurements [Member] | CMO/Other MBS [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	111,276	163,041
Fair Value Measurements [Member] | Privately issued collateralized mortgage obligations [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	2,869	3,613
Fair Value Measurements [Member] | Federal agencies [Member] | Fair Value, Measurements, Recurring [Member]
Investment securities
Total investment securities available for sale	152,814	261,547
Fair Value Measurements [Member] | Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member]
Investment securities
Total investment securities available for sale	192,839	114,933
Fair Value Measurements [Member] | US States and Political Subdivisions Debt Securities [Member] | Fair Value, Measurements, Recurring [Member]
Investment securities
Total investment securities available for sale	134,898	128,730
Fair Value Measurements [Member] | Trust preferred [Member] | Fair Value, Measurements, Recurring [Member]
Investment securities
Total investment securities available for sale	38,412
Quoted Prices in Active markets for Identical Assets Level 1 [Member]
Investment securities
Securities available for sale	0	0
Interest rate caps and swaps	0	0
Swaps		0
Quoted Prices in Active markets for Identical Assets Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	0	0
Investment securities
Total investment securities available for sale	0	0
Securities available for sale	0	0
Interest rate caps and swaps	0	0
Total Assets	0	0
Swaps	0	0
Total Liabilities	0	0
Quoted Prices in Active markets for Identical Assets Level 1 [Member] | Agency-backed [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	0	0
Quoted Prices in Active markets for Identical Assets Level 1 [Member] | CMO/Other MBS [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	0	0
Quoted Prices in Active markets for Identical Assets Level 1 [Member] | Privately issued collateralized mortgage obligations [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	0	0
Quoted Prices in Active markets for Identical Assets Level 1 [Member] | Federal agencies [Member] | Fair Value, Measurements, Recurring [Member]
Investment securities
Total investment securities available for sale	0	0
Quoted Prices in Active markets for Identical Assets Level 1 [Member] | Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member]
Investment securities
Total investment securities available for sale	0	0
Quoted Prices in Active markets for Identical Assets Level 1 [Member] | US States and Political Subdivisions Debt Securities [Member] | Fair Value, Measurements, Recurring [Member]
Investment securities
Total investment securities available for sale	0	0
Quoted Prices in Active markets for Identical Assets Level 1 [Member] | Trust preferred [Member] | Fair Value, Measurements, Recurring [Member]
Investment securities
Total investment securities available for sale	0
Significant Other Observable Inputs Level 2 [Member]
Investment securities
Securities available for sale	1,110,813	950,780
Interest rate caps and swaps	(1,096)
Significant Other Observable Inputs Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	588,981	445,570
Investment securities
Total investment securities available for sale	518,963	505,210
Securities available for sale	1,107,944	950,780
Interest rate caps and swaps	(1,096)	(997)
Total Assets	1,109,040	951,777
Swaps	1,096	997
Total Liabilities	1,096	997
Significant Other Observable Inputs Level 2 [Member] | Agency-backed [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	477,705	282,529
Significant Other Observable Inputs Level 2 [Member] | CMO/Other MBS [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	111,276	163,041
Significant Other Observable Inputs Level 2 [Member] | Privately issued collateralized mortgage obligations [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	0	0
Significant Other Observable Inputs Level 2 [Member] | Federal agencies [Member] | Fair Value, Measurements, Recurring [Member]
Investment securities
Total investment securities available for sale	152,814	261,547
Significant Other Observable Inputs Level 2 [Member] | Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member]
Investment securities
Total investment securities available for sale	192,839	114,933
Significant Other Observable Inputs Level 2 [Member] | US States and Political Subdivisions Debt Securities [Member] | Fair Value, Measurements, Recurring [Member]
Investment securities
Total investment securities available for sale	134,898	128,730
Significant Other Observable Inputs Level 2 [Member] | Trust preferred [Member] | Fair Value, Measurements, Recurring [Member]
Investment securities
Total investment securities available for sale	38,412
Significant Unobservable Inputs Level 3 [Member]
Investment securities
Securities available for sale	0	3,613
Interest rate caps and swaps	0	0
Swaps		0
Significant Unobservable Inputs Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	2,869	3,613
Investment securities
Total investment securities available for sale	0	0
Securities available for sale	2,869	3,613
Interest rate caps and swaps	0	0
Total Assets	2,869	3,613
Swaps	0	0
Total Liabilities	0	0
Significant Unobservable Inputs Level 3 [Member] | Agency-backed [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	0	0
Significant Unobservable Inputs Level 3 [Member] | CMO/Other MBS [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	0	0
Significant Unobservable Inputs Level 3 [Member] | Privately issued collateralized mortgage obligations [Member] | Fair Value, Measurements, Recurring [Member]
Mortgage-backed securities-residential
Mortgage-backed securities-residential	2,869	3,613
Significant Unobservable Inputs Level 3 [Member] | Federal agencies [Member] | Fair Value, Measurements, Recurring [Member]
Investment securities
Total investment securities available for sale	0	0
Significant Unobservable Inputs Level 3 [Member] | Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member]
Investment securities
Total investment securities available for sale	0	0
Significant Unobservable Inputs Level 3 [Member] | US States and Political Subdivisions Debt Securities [Member] | Fair Value, Measurements, Recurring [Member]
Investment securities
Total investment securities available for sale	0	0
Significant Unobservable Inputs Level 3 [Member] | Trust preferred [Member] | Fair Value, Measurements, Recurring [Member]
Investment securities
Total investment securities available for sale	$ 0

XML

Premises And Equipment, Net

12 Months Ended

Sep. 30, 2014

Property, Plant and Equipment [Abstract]

Premises and Equipment, Net

Premises and Equipment, Net

Premises and equipment are summarized as follows:

	September 30,
	2014			2013
Land and land improvements	$	6,048		$	7,282
Buildings	22,888			30,558
Leasehold improvements	32,963			8,136
Furniture, fixtures and equipment	50,343			40,164
Total premises and equipment, gross	112,242			86,140
Accumulated depreciation and amortization	(68,956		)	(49,620		)
Total premises and equipment, net	$	43,286		$	36,520

XML

Goodwill and Other Intangible Assets

12 Months Ended

Sep. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Goodwill and other intangible assets are presented in the tables below. The increase in goodwill and certain other intangible assets in fiscal 2014 was related to the acquisition of Legacy Sterling, which is described more fully in Note 2. “Acquisitions.”

Goodwill

The change in goodwill in the fiscal years ended September 30, 2014 and 2013 was as follows:

	September 30,
	2014		2013
Beginning of year balance	$	163,117	$	163,247
Acquisitions	225,809		(130		)
Disposals	—		—
End of year balance	$	388,926	$	163,117

During the fiscal year ended September 30, 2013, the Company decreased the goodwill recorded in connection with the Gotham Bank acquisition by $130 based on the completion of the analysis of fair value of the net assets acquired.

Other intangible assets

The balance of other intangible assets at September 30, 2014 and 2013 was as follows:

	Gross intangible assets		Accumulated amortization			Net intangible assets
September 30, 2014
Core deposits	$	24,182	$	(4,694	)	$	19,488
Non-compete agreements	10,308		(5,490		)	4,818
Trade name	20,500		—			20,500
Fair value of below market leases	725		(253		)	472
Provident Bank Ball Park naming rights	2,414		(2,414		)	—
	$	58,129	$	(12,851	)	$	45,278
September 30, 2013
Core deposits	$	4,818	$	(798	)	$	4,020
Provident Bank Ball Park naming rights	2,414		(543		)	1,871
	$	7,232	$	(1,341	)	$	5,891

Included in other intangible assets was an intangible asset associated with the naming rights to Provident Bank Ball Park which is located in Rockland County, New York. At the time of the Merger, the Company wrote-off the remaining book value.

Other intangible assets are amortized on a straight-line or accelerated bases over their estimated useful lives, which range from one to 10 years. Amortization expense related to core deposits, non-compete agreements and naming rights totaled $9,408, $1,296 and $1,245 for the fiscal years ended September 30, 2014, 2013, and 2012, respectively. The amortization of the fair value of below market leases was included in rent expense for the fiscal year ended September 30, 2014. The estimated aggregate future amortization expense for other intangible assets remaining as of September 30, 2014 was as follows:

	Amortization expense
2015	$	6,113
2016	5,042
2017	2,598
2018	2,178
2019	2,058
Thereafter	6,786
	$	24,775

XML

Borrowings and Senior Notes

12 Months Ended

Sep. 30, 2014

Debt Instruments [Abstract]

Borrowings and Senior Notes

Borrowings and Senior Notes

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

	September 30,
	2014				2013
	Amount		Rate		Amount		Rate
By type of borrowing:
FHLB advances and overnight	$	795,028	1.75	%	$	442,602	2.77	%
Repurchase agreements	25,639		0.39		20,351		0.88
Fed funds purchased	20,000		0.31		—		—
Senior notes	98,402		5.98		98,033		5.98
Total borrowings	$	939,069	2.12	%	$	560,986	3.26	%
By remaining period to maturity:
Less than one year	$	370,365	0.69	%	$	158,897	0.95	%
One to two years	140,344		0.59		78,717		1.97
Two to three years	257,442		3.52		191		5.32
Three to four years	168,402		4.38		202,414		4.21
Four to five years	—		—		118,033		5.57
Greater than five years	2,516		4.92		2,734		4.92
Total borrowings	$	939,069	2.12	%	$	560,986	3.26	%

FHLB advances and overnight. As a member of the FHLB, the Bank may borrow up to the amount of eligible mortgages and securities that have been pledged as collateral under a blanket security agreement. As of September 30, 2014 and 2013, the Bank had pledged residential mortgage and commercial real estate loans totaling $1,246,315 and $784,422, respectively. The Bank had also pledged securities to secure borrowings, which are disclosed in Note 3. “Securities.” As of September 30, 2014, the Bank may increase its borrowing capacity by pledging securities and mortgage loans not required to be pledged for other purposes with a collateral value of $703,486.

FHLB borrowings which are putable quarterly at the discretion of the FHLB were $200,000 at September 30, 2014 and 2013. These borrowings have a weighted average remaining term to the contractual maturity dates of approximately 2.56 years and 3.56 years and a weighted average interest rates of 4.23% at both September 30, 2014 and 2013, respectively.

Repurchase agreements. Securities sold under agreements to repurchase at September 30, 2014 are secured short-term borrowings that mature in one to 17 days. Repurchase agreements are stated at the amount of cash received in connection with these transactions. The Bank may be required to provide additional collateral based on the fair value of the underlying securities. The Bank had two$10,000 long-term repurchase agreements which were redeemed during the fiscal year ended September 30, 2014.

Fed funds purchased. Fed funds purchased are short-term borrowings that typically mature daily and are recorded at the amount of funds received.

Revolving line of credit. On September 5, 2014, the Company entered into a $15,000 revolving line of credit facility with a financial institution that matures on September 5, 2015. The balance was zero at September 30, 2014. The use of proceeds are for general corporate purposes. The line and accrued interest is payable at maturity, and is required to maintain a zero balance for at least 30 days during its term. The line bears interest at one-month LIBOR plus 1.25%. Under the terms of the facility, the Company and the Bank must maintain certain ratios related to capital, non-performing assets to capital, reserves to non-performing loans and debt service coverage. The Company and the Bank were in compliance with all requirements of the line at September 30, 2014.

Senior Notes. On July 2, 2013, the Company issued $100,000 principal amount of 5.50% fixed rate Senior Notes through a private placement at a discount of 1.75%. The cost of issuance was $303, and at September 30, 2014 and 2013 the unamortized discount was $1,597 and $1,967, respectively, which will be accreted to interest expense over the life of the Senior Notes, resulting in an effective yield of 5.98%. Interest is due semi-annually in arrears on January 2 and July 2 until maturity on July 2, 2018. The Senior Notes were issued under an indenture (the “Indenture”) between the Company and U.S. Bank National Association, as trustee.

The Senior Notes are unsecured obligations of the Company and rank equally with all other unsecured unsubordinated indebtedness, and will be effectively subordinated to any secured indebtedness to the extent of the value of the collateral securing such indebtedness, and structurally subordinated to the existing and future indebtedness of the Company’s subsidiaries.

The indenture includes provisions that, among other things, restrict the Company’s ability to dispose of or issue shares of voting stock of a principal subsidiary bank (as defined in the Indenture) or transfer the entirety of, or a substantial amount of, the Company’s assets or merge or consolidate with or into other entities, without satisfying certain conditions.

The Senior Notes will not be registered under the Securities Act and may not be offered or sold in the U.S. absent registration or an applicable exemption from registration requirements.

Trust preferred capital securities. In connection with the Merger, the Company assumed $25,000 of trust preferred capital securities (the “Subordinated Debentures”). The capital securities, which were due March 31, 2032 and bore interest at 8.375%, were issued by Sterling Bancorp Trust I, a wholly-owned, non-consolidated statutory business trust. The trust was formed with initial capitalization of common stock and for the exclusive purpose of issuing the capital securities. The trust used the proceeds from the issuance of the capital securities to acquire $25,774 junior subordinated debenture securities that paid interest at 8.375% issued by the Company. The Company was not considered the primary beneficiary of the trust (which is a VIE); therefore, the trust was not consolidated in the Company’s financial statements and the subordinated debentures were recorded as a liability. The debt securities were due concurrently with the capital securities.

On June 1, 2014, the Company redeemed all of the outstanding capital securities at a redemption price equal to 100% of the liquidation amount of the securities plus accumulated and unpaid interest, with such redemption payment made on June 2, 2014. In connection with the redemption, the Company eliminated the unamortized premium recorded to reflect the fair value of the Subordinated Debentures at the date of the Merger. The balance of the unamortized premium was $712 and this amount was recognized as a gain on extinguishment of debt and recorded as a reduction of other non-interest expense in the fiscal year ended September 30, 2014.

XML

Securities (Details 6) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Financial Instruments Owned and Pledged as Collateral [Line Items]
Total securities pledged	$ 1,292,140	$ 1,008,466
Federal Home Loan Bank Borrowings [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Available-for-sale securities pledged as collateral	268,316	199,642
Held-to-maturity securities pledged as collateral	58,509	55,497
Municipal Deposits [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Available-for-sale securities pledged as collateral	532,770	580,756
Held-to-maturity securities pledged as collateral	430,611	167,926
Interest Rate Swap [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Available-for-sale securities pledged as collateral	$ 1,934	$ 4,645

XML

Quarterly Results Of Operations (Unaudited) (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Quarterly Financial Information Disclosure [Abstract]
Interest and dividend income	$ 67,109	$ 65,761	$ 61,325	$ 52,711	$ 33,903	$ 32,593	$ 32,420	$ 33,145	$ 246,906	$ 132,061	$ 115,037
Interest expense	7,476	7,310	7,297	6,835	5,795	4,276	4,601	5,222	28,918	19,894	18,573
Net interest income	59,633	58,451	54,028	45,876	28,108	28,317	27,819	27,923	217,988	112,167	96,464
Provisions for loan losses	5,350	5,950	4,800	3,000	2,700	3,900	2,600	2,950	19,100	12,150	10,612
Non-interest income	12,286	13,471	12,415	9,148	6,600	6,581	6,852	7,659	47,370	27,692	32,152
Non-interest expense	43,780	44,904	46,723	72,974	23,367	21,789	23,339	22,546	208,428	91,041	91,957
Income before income tax expense	22,789	21,068	14,920	(20,950)	8,641	9,209	8,732	10,086	37,830	36,668	26,047
Income tax expense	6,452	6,057	4,588	(6,948)	3,312	2,833	2,203	3,066	10,152	11,414	6,159
Net income	16,337	15,011	10,332	(14,002)	5,329	6,376	6,529	7,020	27,678	25,254	19,888
Basic (USD per share)	$ 0.20	$ 0.18	$ 0.12	$ (0.20)	$ 0.12	$ 0.15	$ 0.15	$ 0.16	$ 0.34	$ 0.58	$ 0.52
Diluted (USD per share)	$ 0.19	$ 0.18	$ 0.12	$ (0.20)	$ 0.12	$ 0.15	$ 0.15	$ 0.16	$ 0.34	$ 0.58	$ 0.52
Business Combination, Separately Recognized Transactions [Line Items]
Merger related expense				9,100					9,455	2,772	5,925
Partial settlement charge				2,700
Assets Write-down, Retention, and Severance Costs [Member]
Business Combination, Separately Recognized Transactions [Line Items]
Recognized charges				$ 22,200

XML

Borrowings and Senior Notes (Details Textual) (USD $)	0 Months Ended	12 Months Ended				12 Months Ended							0 Months Ended		0 Months Ended	1 Months Ended		12 Months Ended
	Jul. 02, 2013	Sep. 30, 2014 repurchase_agreement	Sep. 30, 2013	Sep. 30, 2012	Feb. 28, 2002	Sep. 30, 2014 Senior Notes [Member]	Sep. 30, 2013 Senior Notes [Member]	Jul. 02, 2013 Senior Notes [Member]	Sep. 30, 2014 FHLB Advances [Member]	Sep. 30, 2013 FHLB Advances [Member]	Sep. 30, 2014 FHLB Repurchase Agreements [Member]	Sep. 30, 2013 FHLB Repurchase Agreements [Member]	Sep. 05, 2014 Revolving Credit Facility [Member] Line of Credit [Member]	Sep. 05, 2014 Revolving Credit Facility [Member] Line of Credit [Member]	Sep. 05, 2014 London Interbank Offered Rate (LIBOR) [Member] Revolving Credit Facility [Member] Line of Credit [Member]	Feb. 28, 2002 Sterling Bancorp Trust I [Member]	Jun. 01, 2014 Trust preferred [Member] Sterling Bancorp [Member]	Sep. 30, 2014 Minimum [Member]	Sep. 30, 2014 Maximum [Member]
Debt Instrument [Line Items]
Bank pledged mortgages		$ 1,246,315,000	$ 784,422,000
Increased borrowing capacity by pledging securities		703,486,000
Federal home loan bank borrowings		200,000,000	200,000,000
Long term debt weighted average remaining term		2 years 6 months 22 days	3 years 6 months 22 days
Weighted average interest rates		4.23%	4.23%
Repurchase agreements maturity																		1 day	17 days
Amount of repurchase agreements		2
Repurchase agreements		10,000,000
Revolving line of credit amount														15,000
Revolving line of credit balance														0
Required balance														0
Duration of minimum outstanding balance													30 days
Basis spread on one-month LIBOR															1.25%
Long-term debt		939,069,000	560,986,000			98,402,000	98,033,000	100,000,000	795,028,000	442,602,000	25,639,000	20,351,000
Fixed interest rate (percent)								5.50%
Private placement discount rate	1.75%
Cost of issuance						303,000
Unamortized discount						1,597,000	1,967,000
Interest expense cost over the life of Senior note		5.98%
Proceeds from trust preferred capital securities																25,000,000
Stated interest rate (percent)					8.375%
Junior Subordinated Notes					25,774,000
Percent of liquidation amount of securities and accumulated and unpaid interest (percent)																	100.00%
(Gain) on redemption of Subordinated Debentures		$ 712,000	$ 0	$ 0

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Loans (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
Components of loan portfolio, excluding loans held for sale
Commercial & industrial		$ 439,787
Payroll finance		0
Warehouse lending		0
Factored receivables		0
Equipment financing		0
Total commercial	2,076,474	439,787
Commercial real estate		969,490
Multi-family		307,547
Acquisition, development & construction		102,494
Total commercial mortgage	1,909,725	1,379,531
Total commercial and commercial mortgage	3,986,199	1,819,318
Real estate-residential mortgage loans		400,009
Consumer loans:
Home equity lines of credit	159,944	156,995
Other consumer loans, including overdrafts	43,864	36,576
Total consumer	203,808	193,571
Gross loans	4,760,438	2,412,898
Allowance for loan losses	(40,612)	(28,877)	(28,282)	(27,917)
Total loans, net	$ 4,719,826	$ 2,384,021

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Other Non-interest Expense (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Other Income and Expenses [Abstract]
Advertising and promotion	$ 2,358	$ 1,502	$ 1,849
Professional fees	6,913	3,393	4,247
Data and check processing	3,439	2,520	2,802
ATM/debit card expense	1,249	1,722	1,711
Insurance & surety bond premium	2,703	1,199	1,220
Charge for asset write-downs, severance and retention	22,976	0	0
Charge for banking systems conversion	3,249	0	0
Other	15,030	7,040	6,562
Total other non-interest expense	$ 57,917	$ 17,376	$ 18,391

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Securities (Details 5) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Schedule of Held-to-maturity Securities [Line Items]
Fair value, Less than 12 months	$ 73,243	$ 125,788
Unrealized losses, Less than 12 months	(633)	(4,427)
Fair value, 12 months or longer	68,226	0
Unrealized losses, 12 months or longer	(1,759)	0
Fair value, Total	141,469	125,788
Unrealized losses, Total	(2,392)	(4,427)
Securities Investment [Member]
Schedule of Held-to-maturity Securities [Line Items]
Fair value, Less than 12 months	37,699	83,413
Unrealized losses, Less than 12 months	(162)	(4,004)
Fair value, 12 months or longer	25,580	0
Unrealized losses, 12 months or longer	(923)	0
Fair value, Total	63,279	83,413
Unrealized losses, Total	(1,085)	(4,004)
Securities Investment [Member] | Federal agencies [Member]
Schedule of Held-to-maturity Securities [Line Items]
Fair value, Less than 12 months	23,756	73,883
Unrealized losses, Less than 12 months	(62)	(3,458)
Fair value, 12 months or longer	24,101	0
Unrealized losses, 12 months or longer	(900)	0
Fair value, Total	47,857	73,883
Unrealized losses, Total	(962)	(3,458)
Securities Investment [Member] | State and municipal [Member]
Schedule of Held-to-maturity Securities [Line Items]
Fair value, Less than 12 months	13,943	9,530
Unrealized losses, Less than 12 months	(100)	(546)
Fair value, 12 months or longer	1,479	0
Unrealized losses, 12 months or longer	(23)	0
Fair value, Total	15,422	9,530
Unrealized losses, Total	(123)	(546)
Residential Mortgage Backed Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Fair value, Less than 12 months	35,544	42,375
Unrealized losses, Less than 12 months	(471)	(423)
Fair value, 12 months or longer	42,646	0
Unrealized losses, 12 months or longer	(836)	0
Fair value, Total	78,190	42,375
Unrealized losses, Total	(1,307)	(423)
Residential Mortgage Backed Securities [Member] | Agency-backed [Member]
Schedule of Held-to-maturity Securities [Line Items]
Fair value, Less than 12 months	20,616	10,963
Unrealized losses, Less than 12 months	(103)	(86)
Fair value, 12 months or longer	0	0
Unrealized losses, 12 months or longer	0	0
Fair value, Total	20,616	10,963
Unrealized losses, Total	(103)	(86)
Residential Mortgage Backed Securities [Member] | CMO/Other MBS [Member]
Schedule of Held-to-maturity Securities [Line Items]
Fair value, Less than 12 months	14,928	31,412
Unrealized losses, Less than 12 months	(368)	(337)
Fair value, 12 months or longer	42,646	0
Unrealized losses, 12 months or longer	(836)	0
Fair value, Total	57,574	31,412
Unrealized losses, Total	$ (1,204)	$ (337)

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Employee Benefit Plans and Stock-Based Compensation Plans (Details 3) (Pension Plans [Member])	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Projected benefit obligation, Discount rate	4.50%	5.20%
Net periodic pension cost, Discount rate	4.50%	5.20%
Net periodic pension cost, Long-term rate of return on plan assets	4.00%	7.75%

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Loans (Tables)

12 Months Ended

Sep. 30, 2014

Loans [Abstract]

Components of loan portfolio excluding loans held for sale

The composition of the Company’s loan portfolio, excluding loans held for sale, was the following:

	September 30,
	2014			2013
Commercial:
Commercial & industrial	$	1,164,537		$	439,787
Payroll finance	145,474			—
Warehouse lending	192,003			—
Factored receivables	181,433			—
Equipment financing	393,027			—
Total commercial	2,076,474			439,787
Commercial mortgage:
Commercial real estate	1,449,052			969,490
Multi-family	368,524			307,547
Acquisition, development & construction	92,149			102,494
Total commercial mortgage	1,909,725			1,379,531
Total commercial and commercial mortgage	3,986,199			1,819,318
Residential mortgage	570,431			400,009
Consumer:
Home equity lines of credit	159,944			156,995
Other consumer loans	43,864			36,576
Total consumer	203,808			193,571
Total loans	4,760,438			2,412,898
Allowance for loan losses	(40,612		)	(28,877		)
Total loans, net	$	4,719,826		$	2,384,021

Schedule of amounts and status of loans and TDRs

The following tables set forth the amounts and status of the Company’s loans and TDRs at September 30, 2014 and September 30, 2013:

	September 30, 2014
	Current		30-59 days past due		60-89 days past due		90+ days past due		Non- accrual		Total
Commercial & industrial	$	1,150,854	$	2,316	$	7,043	$	—	$	4,324	$	1,164,537
Payroll finance	145,029		99		—		346		—		145,474
Warehouse lending	192,003		—		—		—		—		192,003
Factored receivables	181,063		—		—		—		370		181,433
Equipment financing	391,914		689		162		—		262		393,027
Commercial real estate	1,433,805		93		4,188		521		10,445		1,449,052
Multi-family	368,393		—		—		—		131		368,524
Acquisition, development & construction	79,732		—		56		—		12,361		92,149
Residential mortgage	547,912		4,023		2,036		534		15,926		570,431
Consumer	193,491		3,087		1,487		—		5,743		203,808
Total loans	$	4,684,196	$	10,307	$	14,972	$	1,401	$	49,562	$	4,760,438
Total TDRs included above	$	17,138	$	346	$	169	$	—	$	11,944	$	29,597
Non-performing loans:
Loans 90+ days past due and still accruing									$	1,401
Non-accrual loans									49,562
Total non-performing loans									$	50,963

	September 30, 2013
	Current		30-59 days past due		60-89 days past due		90+ days past due		Non- accrual		Total
Commercial & industrial	$	438,818	$	178	$	2	$	289	$	500	439,787
Commercial real estate	1,263,933		1,978		2,357		1,574		7,195		1,277,037
Acquisition, development & construction	96,306		768		—		—		5,420		102,494
Residential mortgage	390,072		354		267		1,832		7,484		400,009
Consumer	190,393		566		—		404		2,208		193,571
Total loans	$	2,379,522	$	3,844	$	2,626	$	4,099	$	22,807	$	2,412,898
Total TDRs included above	$	23,754	$	—	$	—	$	141	$	2,199	$	26,094
Non-performing loans:
Loans 90+ days past due and still accruing									$	4,099
Non-accrual loans									22,807
Total non-performing loans									$	26,906

Allowance for loan losses activity

Activity in the allowance for loan losses for the fiscal years ended September 30, 2014, 2013 and 2012 is summarized below:

	September 30, 2014
	Beginning balance		Charge-offs			Recoveries		Net charge-offs			Provision			Ending balance
Commercial & industrial	$	5,302	$	(2,901	)	$	1,073	$	(1,828	)	$	6,062		$	9,536
Payroll finance	—		(758		)	—		(758		)	2,137			1,379
Warehouse lending	—		—			—		—			630			630
Factored receivables	—		(211		)	9		(202		)	1,496			1,294
Equipment financing	—		(1,074		)	194		(880		)	3,501			2,621
Commercial real estate	9,967		(741		)	161		(580		)	1,457			10,844
Multi-family	—		(418		)	92		(326		)	2,193			1,867
Acquisition, development & construction	5,806		(1,479		)	—		(1,479		)	(2,207		)	2,120
Residential mortgage	4,474		(963		)	323		(640		)	2,003			5,837
Consumer	3,328		(786		)	114		(672		)	1,828			4,484
Total loans	$	28,877	$	(9,331	)	$	1,966	$	(7,365	)	$	19,100		$	40,612
Annualized net charge-offs to average loans outstanding														0.24		%

	September 30, 2013
	Beginning balance		Charge-offs			Recoveries		Net charge-offs			Provision		Ending balance
Commercial & industrial	$	4,603	$	(1,354	)	$	410	$	(944	)	$	1,643	$	5,302
Commercial real estate	7,230		(3,725		)	577		(3,148		)	5,885		9,967
Acquisition, development & construction	8,526		(3,422		)	182		(3,240		)	520		5,806
Residential mortgage	4,359		(2,547		)	101		(2,446		)	2,561		4,474
Consumer	3,564		(2,009		)	232		(1,777		)	1,541		3,328
Total loans	$	28,282	$	(13,057	)	$	1,502	$	(11,555	)	$	12,150	$	28,877
Annualized net charge-offs to average loans outstanding													0.52		%

	September 30, 2012
	Beginning balance		Charge-offs			Recoveries		Net charge-offs			Provision			Ending balance
Commercial & industrial	$	5,945	$	(1,526	)	$	1,116	$	(410	)	$	(932	)	$	4,603
Commercial real estate	5,568		(2,707		)	528		(2,179		)	3,841			7,230
Acquisition, development & construction	9,895		(4,124		)	299		(3,825		)	2,456			8,526
Residential mortgage	3,498		(2,551		)	356		(2,195		)	3,056			4,359
Consumer	3,011		(1,901		)	263		(1,638		)	2,191			3,564
Total loans	$	27,917	$	(12,809	)	$	2,562	$	(10,247	)	$	10,612		$	28,282
Annualized net charge-offs to average loans outstanding														0.56		%

Impaired financing receivables

The following table sets forth loans evaluated for impairment by segment and the allowance evaluated by segment at September 30, 2014:

	Loans evaluated by segment								Allowance evaluated by segment
	Individually evaluated for impairment		Collectively evaluated for impairment		Purchased credit impaired loans		Total  loans		Individually evaluated for impairment		Collectively evaluated for impairment		Total allowance for loan losses
Commercial & industrial	$	4,177	$	1,158,837	$	1,523	$	1,164,537	$	—	$	9,536	$	9,536
Payroll finance	—		145,474		—		145,474		—		1,379		1,379
Warehouse lending	—		192,003		—		192,003		—		630		630
Factored receivables	—		181,433		—		181,433		—		1,294		1,294
Equipment financing	—		393,027		—		393,027		—		2,621		2,621
Commercial real estate	13,750		1,435,163		139		1,449,052		—		10,844		10,844
Multi-family	—		368,524		—		368,524		—		1,867		1,867
Acquisition, development & construction	17,766		74,383		—		92,149		—		2,120		2,120
Residential mortgage	515		567,815		2,101		570,431		—		5,837		5,837
Consumer	—		203,808		—		203,808		—		4,484		4,484
Total loans	$	36,208	$	4,720,467	$	3,763	$	4,760,438	$	—	$	40,612	$	40,612

The following table sets forth loans evaluated for impairment by segment and the allowance evaluated by segment at September 30, 2013:

	Loans evaluated by segment						Allowance evaluated by segment
	Individually evaluated for impairment		Collectively evaluated for impairment		Total loans		Individually evaluated for impairment		Collectively evaluated for impairment		Total allowance for loan losses
Commercial & industrial	$	2,631	$	437,156	$	439,787	$	249	$	5,053	$	5,302
Commercial real estate	14,091		1,262,946		1,277,037		803		9,164		9,967
Acquisition, development & construction	19,582		82,912		102,494		540		5,266		5,806
Residential mortgage	515		399,494		400,009		—		4,474		4,474
Consumer	2		193,569		193,571		1		3,327		3,328
Total loans	$	36,821	$	2,376,077	$	2,412,898	$	1,593	$	27,284	$	28,877

The following table presents loans individually evaluated for impairment by segment of loans at September 30, 2014 and September 30, 2013:

	September 30, 2014						September 30, 2013
	Unpaid principal balance		Recorded investment		Related allowance		Unpaid principal balance		Recorded investment		Related allowance
With no related allowance recorded:
Commercial & industrial	$	4,177	$	4,177	$	—	$	2,175	$	2,131	$	—
Commercial real estate	13,886		13,750		—		12,451		11,820		—
Acquisition, development & construction	18,676		17,766		—		17,971		17,945		—
Residential mortgage	515		515		—		515		515		—
Subtotal	37,254		36,208		—		33,112		32,411		—
With an allowance recorded:
Commercial & industrial	—		—		—		500		500		249
Commercial real estate	—		—		—		3,150		2,271		803
Acquisition, development & construction	—		—		—		2,753		1,637		540
Consumer	—		—		—		2		2		1
Subtotal	—		—		—		6,405		4,410		1,593
Total	$	37,254	$	36,208	$	—	$	39,517	$	36,821	$	1,593

The following table presents the average recorded investment and interest income recognized related to loans individually evaluated for impairment by segment for the fiscal year September 30, 2014 and 2013:

	September 30, 2014						September 30, 2013
	YTD average 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:
Commercial & industrial	$	4,180	$	—	$	—	$	1,821	$	91	$	86
Commercial real estate	14,016		186		180		17,325		286		275
Acquisition, development & construction	20,525		239		239		12,827		631		587
Residential mortgage	515		—		—		309		—		—
Consumer	—		—		—		61		—		—
Subtotal	39,236		425		419		32,343		1,008		948
With an allowance recorded:
Commercial & industrial	—		—		—		705		—		—
Commercial real estate	—		—		—		6,646		7		7
Acquisition, development & construction	—		—		—		1,104		—		—
Residential mortgage	—		—		—		1,602		14		10
Consumer	—		—		—		228		—		—
Subtotal	—		—		—		10,285		21		17
Total	$	39,236	$	425	$	419	$	42,628	$	1,029	$	965

Troubled debt restructurings

The following table presents loans by segment modified as TDRs that occurred during the twelve months ended September 30, 2014 and 2013:

	September 30, 2014					September 30, 2013
		Recorded investment					Recorded investment
	Number	Pre- modification		Post- modification		Number	Pre- modification		Post- modification
Commercial & industrial	—	$	—	$	—	5	$	2,001	$	2,001
Commercial real estate	—	—		—		2	2,682		2,682
Acquisition, development & construction	2	1,060		1,060		7	5,772		5,772
Residential mortgage	—	—		—		6	1,436		1,372
Consumer	—	—		—		1	302		302
Total restructured loans	2	$	1,060	$	1,060	21	$	12,193	$	12,129

The following tables set forth the amounts and past due status of the Company’s TDRs at September 30, 2014 and 2013:

	September 30, 2014
	Current loans		30-59 days past due		60-89 days past due		90+ days past due		Non- accrual		Total
Commercial & industrial	$	275	$	—	$	—	$	—	$	1,618	$	1,893
Equipment financing	435		—		—		—		—		435
Commercial real estate	4,838		—		—		—		447		5,285
Acquisition, development & construction	5,732		—		—		—		6,817		12,549
Residential mortgage	5,858		346		169		—		2,841		9,214
Consumer	—		—		—		—		221		221
Total	$	17,138	$	346	$	169	$	—	$	11,944	$	29,597
Allowance for loan losses	$	409	$	—	$	31	$	—	$	451	$	891

	September 30, 2013
	Current loans		30-59 days past due		60-89 days past due		90+ days past due		Non- accrual		Total
Commercial & industrial	$	1,843	$	—	$	—	$	141	$	—	$	1,984
Commercial real estate	5,305		—		—		—		—		5,305
Acquisition, development & construction	14,190		—		—		—		151		14,341
Residential mortgage	2,416		—		—		—		1,792		4,208
Consumer	—		—		—		—		256		256
Total loans	$	23,754	$	—	$	—	$	141	$	2,199	$	26,094
Allowance for loan losses	$	438	$	—	$	—	$	—	$	439	$	877

Financing receivable credit quality indicators

Loans that are risk-rated 1 through 6 as defined above are considered to be pass-rated loans. As of September 30, 2014 and 2013, the risk category of gross loans by segment was as follows:

	September 30, 2014						September 30, 2013
	Special mention		Substandard		Doubtful		Special mention		Substandard		Doubtful
Commercial & industrial	$	24,980	$	5,749	$	—	$	3,545	$	3,855	$	365
Payroll finance	—		346		—		—		—		—
Factored receivables	46		370		—		—		—		—
Equipment financing	—		262		—		—		—		—
Commercial real estate	8,720		26,826		—		7,279		24,561		227
Multi-family	—		131		—		—		—		—
Acquisition, development & construction	1,040		16,456		—		1,867		19,410		—
Residential mortgage	2,988		16,981		—		824		9,786		—
Consumer	1,779		5,972		—		15		2,891		—
Total	$	39,553	$	73,093	$	—	$	13,530	$	60,503	$	592

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Basis of Financial Statement Presentation and Summary of Significant Accounting Policies (Details) (USD $)	3 Months Ended								12 Months Ended
	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2014 derivative_type	Sep. 30, 2013	Sep. 30, 2012
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Income tax benefit	$ (6,452,000)	$ (6,057,000)	$ (4,588,000)	$ 6,948,000	$ (3,312,000)	$ (2,833,000)	$ (2,203,000)	$ (3,066,000)	$ (10,152,000)	$ (11,414,000)	$ (6,159,000)
Required cash on hand or on deposit with the Federal Reserve Bank	28,700,000				14,600,000				28,700,000	14,600,000
Servicing fees									911,000	778,000	695,000
Minimum duration of performance required by loan restructures									6 months
Number of types of derivatives									3
Accounting Standards Update 2014-01
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Income tax benefit									508,000
Equity in (undistributed) excess distributed earnings									$ 520,000

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Earnings Per Common Share

12 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Earnings Per Common Share

Earnings Per Common Share

The following is a summary of the calculation of earnings per share (“EPS”):

	For the year ended September 30,
	2014		2013		2012
Net income	$	27,678	$	25,254	$	19,888
Weighted average common shares outstanding for computation of basic EPS (1)	80,268,970		43,734,425		38,227,653
Common-equivalent shares due to the dilutive effect of stock options (2)	265,073		48,628		20,393
Weighted average common shares for computation of diluted EPS	80,534,043		43,783,053		38,248,046
Earnings per common share:
Basic	$	0.34	$	0.58	$	0.52
Diluted	0.34		0.58		0.52

(1) Includes earned ESOP shares.

(2) Represents incremental shares computed using the treasury stock method.

As of September 30, 2014, 2013 and 2012 there were 697,475; 1,786,608; and 1,771,132 stock options, respectively, that were considered anti-dilutive and were not included in common-equivalent shares.

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Accumulated Other Comprehensive (Loss) Income (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
Equity [Abstract]
Net unrealized holding loss on available for sale securities	$ (4,645)	$ (19,316)
Related income tax benefit	1,974	7,844
Available for sale securities AOCI, net of tax	(2,671)	(11,472)
Net unrealized holding loss on securities transferred to held to maturity	(8,947)	0
Related income tax benefit	3,803	0
Securities transferred to held to maturity AOCI, net of tax	(5,144)	0
Net unrealized holding loss on retirement plans	(6,336)	(6,496)
Related income tax benefit	2,692	2,638
Retirement plan AOCI, net of tax	(3,644)	(3,858)
Accumulated other comprehensive loss	$ (11,459)	$ (15,330)	$ 6,899	$ 5,136

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Recent Accounting Standards, Not Yet Adopted

12 Months Ended

Sep. 30, 2014

Accounting Changes and Error Corrections [Abstract]

Recently Issued Accounting Standards Not Yet Adopted

Recently Issued Accounting Standards Not Yet Adopted

Accounting Standards Update (“ASU”) 2014-14 Classification of Certain Government-Guaranteed Residential Mortgage Loans Upon Foreclosure. This standard provides guidance on how holders of certain government-guaranteed loans (e.g., mortgage loans guaranteed by the FHA or VA) should present such loans upon foreclosure. Specifically, the ASU provides that, upon foreclosure, government-guaranteed loans within the scope of the standard should be derecognized and re-recognized as a separate other receivable (i.e., a receivable from the government entity guaranteeing the loan). The standard does not require any new disclosures about such loans. ASU 2014-14 is effective for the Company for annual and interim periods beginning after December 15, 2014, and is not expected to have a material impact on our balance sheet or results of operations.

ASU 2014-11 Transfers and Servicing (topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. This standard amends the guidance in ASC 860 on accounting for certain repurchase agreements (“repos”). The standard (1) requires entities to account for repurchase-to-maturity transactions as secured borrowings, (2) eliminates accounting guidance on linked repurchase financing transactions, and (3) expands disclosure requirements related to certain transfers of financial assets that are accounted for as sales and certain transfers (specifically, repos, securities lending transactions, and repurchase-to-maturity transactions) that are accounted for as secured borrowings. This standard is effective for annual periods beginning after December 15, 2014 and is not expected to have a material impact on our balance sheet or results of operations.

ASU 2014-09 Revenue From Contracts With Customers. This standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is effective for annual reporting periods beginning after December 15, 2016. The Company is currently evaluating the impact this standard will have on its balance sheet and results of operations.

ASU 2014-04 Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40) - Reclassification of Residential Real Estate Collateralized Consumer Mortgage loans upon Foreclosure was issued. This standard provides clarification when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan should be removed from the balance sheet and other real estate owned recognized. These amendments clarify that when an in-substance foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan upon either: (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure, or (2) the borrower is conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. This standard was effective for the Company on October 1, 2014 and is not expected to have a material impact on our balance sheet or results of operations.

See Note 1. “Basis of Financial Statement Presentation and Summary of Significant Accounting Policy” for a discussion of the adoption of new accounting standards.

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Employee Benefit Plans And Stock-Based Compensation Plans (Details 6) (Pension Plans [Member])	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Defined Benefit Plan Disclosure [Line Items]
Actual plan asset allocations	100.00%	100.00%
Weighted average expected rate of return	4.00%
Total Equity [Member]
Defined Benefit Plan Disclosure [Line Items]
Actual plan asset allocations	0.00%	65.00%
Target allocation 2014	0.00%
Weighted average expected rate of return	0.00%
Large U.S. equity [Member]
Defined Benefit Plan Disclosure [Line Items]
Actual plan asset allocations	0.00%	44.00%
Weighted average expected rate of return	0.00%
Small Mid U.S. equity [Member]
Defined Benefit Plan Disclosure [Line Items]
Actual plan asset allocations	0.00%	11.00%
Weighted average expected rate of return	0.00%
International Equity [Member]
Defined Benefit Plan Disclosure [Line Items]
Actual plan asset allocations	0.00%	10.00%
Weighted average expected rate of return	0.00%
Total Balanced Asset Allocation [Member]
Defined Benefit Plan Disclosure [Line Items]
Actual plan asset allocations	0.00%	5.00%
Weighted average expected rate of return	0.00%
Total Fixed Income [Member]
Defined Benefit Plan Disclosure [Line Items]
Actual plan asset allocations	100.00%	30.00%
Target allocation range 2014, minimum	95.00%
Target allocation range 2014, maximum	1.00%
Weighted average expected rate of return	4.00%
High yield bond [Member]
Defined Benefit Plan Disclosure [Line Items]
Actual plan asset allocations	0.00%	3.00%
Weighted average expected rate of return	0.00%
Intermediate term bond [Member]
Defined Benefit Plan Disclosure [Line Items]
Actual plan asset allocations	13.00%	27.00%
Weighted average expected rate of return	0.00%
Fixed Income Funds Long Term Bond [Member]
Defined Benefit Plan Disclosure [Line Items]
Actual plan asset allocations	87.00%	0.00%
Weighted average expected rate of return	0.00%
Cash [Member]
Defined Benefit Plan Disclosure [Line Items]
Actual plan asset allocations	0.00%	0.00%
Target allocation range 2014, minimum	0.00%
Target allocation range 2014, maximum	5.00%
Weighted average expected rate of return	0.00%

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Condensed Parent Company Financial Statements (Tables)

12 Months Ended

Sep. 30, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Statements of Financial Condition

Set forth below are the condensed balance sheets of Sterling and the related condensed statements of income and cash flows:

	September 30,
	2014		2013
Assets:
Cash	$	23,369	$	56,230
Loan receivable from ESOP	—		6,437
Investment in Sterling National Bank	1,011,973		517,907
Investment in non-bank subsidiaries	3,587		3,271
Goodwill	18,970		—
Trade name	20,500		—
Other intangible assets, net	917		—
Other assets	528		1,184
Total assets	$	1,079,844	$	585,029
Liabilities:
Senior Notes	$	98,402	$	98,033
Other liabilities	20,304		4,130
Total liabilities	118,706		102,163
Stockholders’ equity	961,138		482,866
Total liabilities & stockholders’ equity	$	1,079,844	$	585,029

Condensed Income Statement

The table  below presents the condensed statement of income:

	For the year ended September 30,
	2014			2013			2012
Interest income	$	139		$	262		$	282
Dividend income on equity securities	—			22			30
Dividends from Sterling National Bank	22,500			—			6,000
Dividends from non-bank subsidiaries	750			1,600			500
Other	18			—			10
Interest expense	(6,265		)	(1,431		)	—
Non-interest expense	(5,841		)	(2,700		)	(1,838		)
Income tax benefit	3,431			898			87
Income (loss) before equity in undistributed earnings of subsidiaries	14,732			(1,349		)	5,071
Equity in undistributed (excess distributed) earnings of:
Sterling National Bank	12,590			27,174			13,739
Non-bank subsidiaries	355			(571		)	1,078
Net income	$	27,677		$	25,254		$	19,888

Condensed Statements of Cash Flows

The table below presents the condensed statement of cash flows:

	For the year ended September 30,
	2014			2013			2012
Cash flows from operating activities:
Net income	$	27,677		$	25,254		$	19,888
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in (undistributed) excess distributed earnings of:
Sterling National Bank	(12,590		)	(27,174		)	(13,739		)
Non-bank subsidiaries	(355		)	571			(1,078		)
(Gain) on redemption of Subordinated Debentures	(712		)	—			—
Other adjustments, net	22,066			5,259			380
Net cash provided by operating activities	36,086			3,910			5,451
Cash flows from investing activities:
Purchase of securities	—			—			(105		)
Sales of securities	1,112			818			103
Investment in subsidiaries	(15,000		)	(45,000		)	(44,203		)
ESOP loan principal repayments	6,437			459			441
Net cash (used for) investing activities	(7,451		)	(43,723		)	(43,764		)
Cash flows from financing activities:
Net change in other short-term borrowings	(20,659		)	—			—
Redemption of Subordinated Debentures	(26,140		)	—			—
Senior Notes offering	—			97,946			—
Equity capital raise	—			—			46,000
Cash dividends paid	(17,677		)	(10,642		)	(9,100		)
Stock option transactions including RRP	2,980			1,758			910
Other equity transactions	—			265			527
Net cash (used for) provided by financing activities	(61,496		)	89,327			38,337
Net (decrease) increase in cash	(32,861		)	49,514			24
Cash at beginning of year	56,230			6,716			6,692
Cash at end of year	$	23,369		$	56,230		$	6,716

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Stockholders' Equity - Reconciliation of Stockholders' Equity to Bank Regulatory Capital (Details) (USD $) In Thousands, unless otherwise specified					12 Months Ended		12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2014 Sterling Bancorp [Member]	Sep. 30, 2013 Sterling Bancorp [Member]	Sep. 30, 2014 Sterling National Bank [Member]	Sep. 30, 2013 Sterling National Bank [Member]
Reconciliation of Stockholders' Equity To Bank Regulatory Capital [Line Items]
Total GAAP stockholders’ equity	$ 961,138	$ 482,866	$ 491,122	$ 431,134	$ 961,138	$ 482,866	$ 1,011,973	$ 516,281
Disallowed goodwill and other intangible assets					(419,327)		(386,766)	(168,122)
Net unrealized loss on available for sale securities					7,815		7,809	11,455
Disallowed servicing asset					(153)		(153)	(198)
Net actuarial loss on defined benefit pension plans					3,644		3,644	3,858
Tier 1 risk-based capital					553,117		636,507	363,274
Allowance for loan losses and off-balance sheet commitments	40,612	28,877	28,282	27,917	41,007		41,007	29,102
Total risk-based capital					$ 594,124		$ 677,514	$ 392,376

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Employee Benefit Plans And Stock-Based Compensation Plans (Tables)

12 Months Ended

Sep. 30, 2014

Schedule of Employee Benefit Plans And Stock-Based Compensation Plans [Line Items]

Summary of Company's stock option activity

The following table summarizes the activity in the Company’s active stock-based compensation plans for September 30, 2014:

			Non-vested stock awards/stock units outstanding					Stock options outstanding
	Shares available for grant		Number of shares		Weighted average grant date fair value			Number of shares		Weighted average exercise price
Balance at October 1, 2013	2,066,184		209,697		$	8.73		2,114,509		$	10.71
2014 Stock Incentive Plan	3,400,000
2012 Stock Incentive Plan termination	(566,554	)
Grants associated with the Merger(1)	(921,503	)	351,964		11.72			104,152		14.25
Granted (1)	(719,674	)	115,145		11.53			324,862		11.45
Stock awards vested	—		(69,211	)	9.51			—		—
Exercised	—		—		—			(507,955	)	11.29
Forfeited	439,594		(18,841	)	(9.18		)	(375,235	)	12.24
Canceled/expired	(347,286	)	—		—			—
Balance at September 30, 2014	3,350,761		588,754		$	10.99		1,660,333		$	10.55
Exercisable at September 30, 2014								951,492		$	11.11

(1) Reflects certain non-vested stock awards that count as 3.5 shares or 3.6 shares for each share granted.

Schedule of weighted-average assumptions as of grant date for options

Other information regarding options outstanding at September 30, 2014 follows:

	Outstanding				Exercisable
		Weighted average				Weighted average
	Number of stock options	Exercise price		Life (in years)	Number of stock options	Exercise price		Life (in years)
Range of exercise prices:
$6.71 to $9.00	689,711	$	8.38	7.57	322,148	$	8.36	7.57
$9.28 to $12.64	787,243	11.73		5.02	445,965	12.05		5.10
$12.84 to $13.92	183,379	13.68		2.69	183,379	13.68		2.69
	1,660,333	10.55		5.82	951,492	11.11		5.82

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

	For the year ended September 30,
	2014		2013		2012
Risk-free interest rate	1.8	%	1.0	%	1.4	%
Expected stock price volatility	26.4		40.8		40.0
Dividend yield (1)	2.0		2.6		3.0
Expected term in years	5.67		5.75		5.82

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

Schedule of stock-based compensation expense associated with stock options and non-vested stock awards

Stock-based compensation expense associated with stock options and non-vested stock awards and the related income tax benefit was as follows:

	For the year ended September 30,
	2014		2013		2012
Stock options	$	901	$	695	$	521
Non-vested stock awards/performance units	2,508		1,047		276
Total	$	3,409	$	1,742	$	797
Income tax benefit	914		542		188

Unrecognized stock-based compensation expense

Unrecognized stock-based compensation expense at September 30, 2014 was as follows:

	September 30, 2014
Stock options	$	962
Non-vested stock awards/stock units	4,013
Total	$	4,975

Pension Plans [Member]

Schedule of Employee Benefit Plans And Stock-Based Compensation Plans [Line Items]

Summary of changes in the projected benefit obligation and fair value of plan assets

The following is a summary of changes in the projected benefit obligation and fair value of plan assets. The Company uses a September 30 measurement date for its pension plans.

	September 30,
	2014			2013
Changes in projected benefit obligation:
Beginning of year balance	$	31,705		$	35,471
Benefit obligation of the Legacy Sterling Plan at October 31, 2013	52,296			—
Service cost	—			—
Interest cost	2,779			1,452
Actuarial loss (gain)	9,460			(3,672		)
Partial settlement	(44,774		)	—
Benefits and distributions paid	(1,748		)	(1,546		)
End of year balance	49,718			31,705
Changes in fair value of plan assets:
Beginning of year balance	35,417			32,657
Fair value of the Legacy Sterling Plan assets at October 31, 2013	71,538			—
Actual gain on plan assets	8,137			4,306
Employer contributions	—			—
Partial settlement	(44,774		)	—
Benefits and distributions paid	(1,748		)	(1,546		)
End of year balance	68,570			35,417
Funded status at end of year	$	18,852		$	3,712

Components of the net periodic pension expense (benefit)

The components of net periodic pension expense were as follows:

	For the year ended September 30,
	2014			2013			2012
Service cost	$	—		$	—		$	—
Interest cost	2,779			1,452			1,501
Expected return on plan assets	(3,380		)	(2,462		)	(2,125		)
Amortization of unrecognized actuarial loss	236			2,062			2,316
Partial settlement charge	3,922			—			—
Net periodic pension expense	$	3,557		$	1,052		$	1,692

Schedule of amounts recognized in accumulated other comprehensive income (loss)

Amounts recognized in accumulated other comprehensive (loss) at September 30, 2014 and 2013 consisted of:

	September 30,
	2014			2013
Unrecognized actuarial loss	$	(6,024	)	$	(5,479	)
Deferred tax asset	2,556			2,225
Net amount recognized in accumulated other comprehensive (loss)	$	(3,468	)	$	(3,254	)

Schedule of expected benefit payments

Estimated future benefit payments are the following for the years ending September 30:

2015	$	726
2016	902
2017	1,079
2018	1,625
2019	1,851
2020 - 2024	13,461

Schedule of fair value of plan assets and allocation

Weighted average pension plan asset allocations based on the fair value of such assets at September 30, 2014 and September 30, 2013 and target allocation ranges for 2014, by asset category, are as follows:

	2014		2013		Target allocation range 2014	Weighted average expected rate of return
Large cap U.S. equity	—	%	44	%		—	%
Small and mid cap U.S. equity	—		11			—
International equity	—		10			—
Total equity	—		65		0%	—
Total balanced asset allocation	—		5			—
High yield bond	—		3			—
Intermediate term bond	13		27			—
Long-term bond	87		—			—
Total fixed income	100		30		95% - 100%	4.0
Total assets	100	%	100	%		4.0	%
Cash	—		—		0% to 5%	—

The fair value of Plan assets by asset category as of September 30, 2014 and 2013, was the following:

	September 30, 2014
	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Asset category:
Intermediate term bond	$	8,629	$	—	$	8,629	$	—
Long-term bond	59,892		—		59,892		—
Total assets	$	68,521	$	—	$	68,521	$	—

	September 30, 2013
	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Asset category:
Large cap U.S. equity	$	16,378	$	—	$	16,378	$	—
Small and mid cap U.S. equity	4,443		—		4,443		—
International equity	3,654		—		3,654		—
Total equity	24,475		—		24,475		—
Total balanced asset allocation	1,691		—		1,691		—
High yield bond	1,018		—		1,018		—
Intermediate term bond	8,233		—		8,233		—
Total fixed income	9,251		—		9,251		—
Total assets	$	35,417	$	—	$	35,417	$	—

Schedule of assumptions used for plan

The principal actuarial assumptions used at September 30, 2014 and 2013 were as follows:

	September 30,
	2014		2013
Projected benefit obligation:
Discount rate	4.50	%	5.20	%
Net periodic pension cost:
Discount rate	4.50	%	5.20	%
Long-term rate of return on plan assets	4.00	%	7.75	%

Other Post retirement Benefit Plans [Member]

Schedule of Employee Benefit Plans And Stock-Based Compensation Plans [Line Items]

Summary of changes in the projected benefit obligation and fair value of plan assets

Data relating to other post retirement benefit plans is the following:

	September 30,
	2014			2013
Changes in accumulated post retirement benefit obligation:
Beginning of year	$	3,302		$	3,103
Obligations assumed from Legacy Sterling	9,644			—
Service cost	51			48
Interest cost	683			134
Actuarial loss	79			177
Curtailment (gain)	(2,485		)	—
Benefits paid	(284		)	(160		)
End of year	10,990			3,302
Changes in fair value of plan assets:
Beginning of year	$	—		$	—
Employer contributions	284			160
Plan participants’ contributions	—			—
Benefits paid	(284		)	(160		)
End of year	—			—
Funded status	$	(10,990	)	$	(3,302	)

Components of the net periodic pension expense (benefit)

Components of net periodic (benefit) expense for other post retirement benefit plans was the following:

	For the year ended September 30,
	2014			2013		2012
Service cost	$	51		$	48	$	46
Interest cost	683			134		125
Amortization of transition obligation	34			24		24
Amortization of prior service cost	270			47		47
Amortization of net actuarial (gain) loss	(45		)	2		(25		)
Curtailment (gain)	(2,485		)	—		—
Total	$	(1,492	)	$	255	$	217

Schedule of expected benefit payments

Estimated future benefit payments are the following for the years ending September 30:

2015	$	660
2016	231
2017	271
2018	319
2019	373
2020 - 2024	2,370

Schedule of assumptions used for plan

Plan assumptions for the other post retirement medical, dental and vision plans include the following:

	For the year ended September 30,
	2014		2013
Medical trend rate next year	4.5	%	4.5	%
Ultimate trend rate	4.5		4.5
Discount rate	3.50% to 4.27%		4.2
Discount rate used to value periodic cost	3.50% to 4.20%		4.1

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Off-Balance-Sheet Financial Instruments (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Loan origination commitments [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Lending-related instruments	$ 213,793	$ 171,032
Unused lines of credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Lending-related instruments	306,482	207,201
Letters of credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Lending-related instruments	$ 97,468	$ 35,052

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Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Statement of Comprehensive Income [Abstract]
Net income	$ 27,678	$ 25,254	$ 19,888
Other comprehensive income (“OCI”) (loss):
Change in unrealized holding gains (losses) on securities available for sale	15,948	(37,324)	12,866
Related income tax (expense) benefit	(6,778)	15,157	(5,224)
Change in net unrealized (loss) on securities transferred to held to maturity	(8,947)	0	0
Related income tax benefit	3,803	0	0
Less:
Reclassification adjustment for net realized (gains) included in net income	(641)	(7,391)	(10,452)
Related income tax expense	272	3,001	4,245
Reclassification adjustment for other than temporary impaired losses included in net income	0	32	47
Related income tax benefit	0	(13)	(19)
Total OCI securities component	3,657	(26,538)	1,463
Acceleration of future amortization of accumulated other comprehensive loss on defined benefit pension plan and change in funded status of defined benefit plans	372	7,255	505
Related income tax (expense)	(158)	(2,946)	(205)
Other comprehensive income	3,871	(22,229)	1,763
Total comprehensive income	$ 31,549	$ 3,025	$ 21,651

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Income Taxes (Details) (USD $)	3 Months Ended								12 Months Ended
	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Current tax expense:
Federal									$ 11,613,000	$ 9,146,000	$ 5,538,000
State									1,598,000	1,549,000	685,000
Current tax expense									13,211,000	10,695,000	6,223,000
Deferred tax expense (benefit):
Federal									(2,745,000)	522,000	(261,000)
State									(314,000)	197,000	197,000
Deferred tax expense (benefit)									(3,059,000)	719,000	(64,000)
Total income tax expense	6,452,000	6,057,000	4,588,000	(6,948,000)	3,312,000	2,833,000	2,203,000	3,066,000	10,152,000	11,414,000	6,159,000
Efftective tax rate reconciliation:
Tax at Federal statutory rate of 35%									13,241,000	12,833,000	9,116,000
State income taxes, net of Federal tax benefit									834,000	1,135,000	573,000
Tax-exempt interest									(3,824,000)	(2,192,000)	(2,448,000)
BOLI income									(1,110,000)	(699,000)	(718,000)
Non deductible acquisition costs									712,000	416,000	418,000
Low income housing tax credits									(165,000)	0	0
Other, net									464,000	(79,000)	(782,000)
Effective income tax rate									26.80%	31.10%	23.60%
Deferred tax assets:
Allowance for loan losses	17,272,000				11,809,000				17,272,000	11,809,000
Deferred compensation	649,000				798,000				649,000	798,000
Other accrued compensation and benefits	5,418,000				1,497,000				5,418,000	1,497,000
Accrued post retirement expense	2,705,000				1,441,000				2,705,000	1,441,000
Deferred tax assets deferred rent	0				1,059,000				0	1,059,000
Core deposit intangibles	2,439,000				0				2,439,000	0
Other comprehensive income (defined benefits)	5,777,000				7,844,000				5,777,000	7,844,000
Deferred tax assets, other comprehensive loss- Defined benefit plans	2,371,000				2,638,000				2,371,000	2,638,000
Depreciation of premises and equipment	433,000				0				433,000	0
State NOL carryforward	1,431,000				0				1,431,000	0
Other	3,511,000				2,172,000				3,511,000	2,172,000
Total deferred tax assets	42,006,000				29,258,000				42,006,000	29,258,000
Deferred tax liabilities:
Undistributed earnings of subsidiary not consolidated for tax return purposes (REIT Income)	9,303,000				4,483,000				9,303,000	4,483,000
Deferred tax liability prepaid pension cost	10,579,000				3,758,000				10,579,000	3,758,000
Purchase accounting fair value adjustments	16,056,000				1,057,000				16,056,000	1,057,000
Depreciation of premises and equipment	0				2,686,000				0	2,686,000
Intangibles amortization	0				112,000				0	112,000
Deferred rent	163,000				0				163,000	0
Other	2,557,000				2,207,000				2,557,000	2,207,000
Total deferred tax liabilities	38,658,000				14,303,000				38,658,000	14,303,000
Net deferred tax asset	3,348,000				14,955,000				3,348,000	14,955,000
Cumulative amount of deferred tax liability not recognized	9,313,000				0				9,313,000	0
Provision for federal income tax									0
Unrecorded deferred tax liability	$ 3,260,000				$ 0				$ 3,260,000	$ 0

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Acquisitions

12 Months Ended

Sep. 30, 2014

Business Combinations [Abstract]

Acquisitions

Acquisitions

On October 31, 2013, the Company completed the Merger. Under the terms of the Agreement and Plan of Merger, Legacy Sterling shareholders received 1.2625 shares of Legacy Provident’s common stock, par value $0.01 per share, for each share of Legacy Sterling common stock, which resulted in the issuance of 39,057,968 shares. Based on the closing stock price of $11.72 per share on October 31, 2013, the aggregate consideration paid to Legacy Sterling shareholders was $457,781, including $23 paid in cash for fractional shares, and $6 which represented outstanding vested stock options. Consistent with the Company’s strategy, the primary reason for the Merger was the expansion of the Company’s geographic footprint and diversification of its business in the greater New York metropolitan region and beyond.

The assets acquired and liabilities assumed were accounted for under the acquisition method of accounting. The assets and liabilities, both tangible and intangible, were recorded at their fair values as of October 31, 2013 based on management’s best estimate using the information available as of the Merger date. The application of the acquisition method of accounting resulted in the recognition of goodwill of $225,809, a core deposit intangible of $20,089 and a trade name intangible of $20,500.  As of October 31, 2013, Legacy Sterling had assets with a book value of approximately $2,759,628, loans including loans held for sale with a book value of approximately $1,735,142, and deposits with a book value of approximately $2,296,713. The table below summarizes the amounts recognized as of the Merger date for each major class of assets acquired and liabilities assumed, the estimated fair value adjustments and the amounts recorded in the Company’s financial statements at fair value at the Merger date:

Consideration paid through Sterling Bancorp common stock issued to Legacy Sterling shareholders $ 457,781

	Legacy Sterling carrying value			Fair value adjustments				As recorded at acquisition
Cash and cash equivalents	$	277,798		$	—			$	277,798
Investment securities	613,154			(5,243		)	(a)	607,911
Loans held for sale	30,341			—				30,341
Loans	1,704,801			(6,693		)	(b)	1,698,108
Federal Reserve Bank stock	7,680			—				7,680
Bank owned life insurance	55,374			—				55,374
Premises and equipment	21,293			2,301			(c)	23,594
Accrued interest receivable	6,590			—				6,590
Core deposit and other intangibles	—			20,089			(d)	20,089
Trade name intangible	—			20,500			(e)	20,500
Other real estate owned	1,720			4,095			(f)	5,815
Other assets	40,877			(19,944		)	(g)	20,933
Deposits	(2,296,713		)	(477		)	(h)	(2,297,190		)
FHLB borrowings	(100,346		)	(273		)	(i)	(100,619		)
Other borrowings	(62,465		)	—				(62,465		)
Subordinated Debentures	(25,774		)	(753		)	(j)	(26,527		)
Other liabilities	(60,462		)	4,502			(k)	(55,960		)
Total identifiable net assets	$	213,868		$	18,104			$	231,972
Goodwill recorded in the Merger								225,809
Goodwill at September 30, 2013								163,117
Goodwill at September 30, 2014								$	388,926

Explanation of certain fair value related adjustments:

(a) Represents the fair value adjustment on investment securities held to maturity.

(b) Represents the elimination of Legacy Sterling’s allowance for loan losses and an adjustment of the amortized cost of loans to estimated fair value, which includes an interest rate mark and credit mark. Gross loans acquired were $1,723,447; of the acquired loans, $1,699,271 were not considered purchased credit impaired and we recorded a fair value adjustment of $14,440.

(c) Represents an adjustment to reflect the fair value of leasehold improvements.

(d) Represents intangible assets recorded to reflect the fair value of core deposits and below market rent on leased premises. The core deposit asset was recorded as an identifiable intangible asset and will be amortized on an accelerated basis over the estimated average life of the deposit base. The below market rent intangible asset will be amortized on a straight-line basis over the remaining term of the leases.

(e) Represents the estimated fair value of Legacy Sterling’s trade name. This intangible asset will not be amortized and will be reviewed at least annually for impairment.

(f) Represents an adjustment to an acquired property which Legacy Sterling utilized as a financial center and recorded as premises and equipment. The Company included this asset in OREO as it was held for sale. This asset was sold during the fiscal year ended September 30, 2014.

(g) Consists primarily of adjustments in net deferred tax assets resulting from the fair value adjustments related to the acquired assets, liabilities assumed and identifiable intangibles recorded.

(h) Represents the fair value adjustment on deposits as the weighted average interest rate of deposits assumed exceeded the cost of similar funding available in the market at the time of the Merger.

(i) Represents the fair value adjustment on FHLB borrowings as the weighted average interest rate of FHLB borrowings assumed exceeded the cost of similar funding available in the market at the time of the Merger.

(j) Represents the fair value adjustment on subordinated debentures as the weighted average interest rate of the debentures assumed exceeded the cost of similar debt funding available in the market at the time of the Merger.

(k) Represents the fair value of other liabilities assumed at the Merger date.

Except for collateral dependent loans with deteriorated credit quality, the fair values for loans acquired from Legacy Sterling were estimated using cash flow projections based on the remaining maturity and repricing terms. Cash flows were adjusted by estimating future credit losses and the rate of prepayments. Projected monthly cash flows were then discounted to present value using a risk-adjusted market rate for similar loans. For collateral dependent loans with deteriorated credit quality, fair value was estimated by analyzing the value of the underlying collateral, assuming the fair values of the loans were derived from the eventual sale of the collateral. These values were discounted using market derived rates of return, with consideration given to the period of time and costs associated with the foreclosure and disposition of the collateral. There was no carryover of Legacy Sterling’s allowance for loan losses associated with the loans that were acquired, as the loans were initially recorded at fair value on the date of the Merger.

The impaired loans acquired in the Merger as of October 31, 2013 were accounted for in accordance with ASC Topic 310-30 Accounting for Certain Loans or Debt Securities Acquired in a Transfer (“ASC 310-30”) and were comprised of collateral dependent loans with deteriorated credit quality as follows:

	ASC 310-30 loans
Contractual principal balance at acquisition	$	24,176
Principal not expected to be collected (non-accretable discount)	(10,927		)
Expected cash flows at acquisition	13,249
Interest component of expected cash flows (accretable discount)	—
Fair value of acquired loans	$	13,249

The core deposit intangible asset recognized is being amortized over its estimated useful life of approximately 10 years utilizing the accelerated method. Other intangibles consist of below market rents which are amortized over the remaining life of each lease using the straight-line method.

Goodwill is not amortized for book purposes; however, it is reviewed at least annually for impairment and is not deductible for tax purposes.

The fair value of premises and equipment and other real estate owned was estimated using appraisals of like kind properties and assets. Premises, equipment and leasehold improvements will be amortized or depreciated over their estimated useful lives ranging from one to five years for equipment or over the life of the lease for leasehold improvements. Other real estate owned is not amortized and is carried at estimated fair value determined by the appraised value less costs to sell.

The fair value of retail demand and interest bearing deposit accounts was assumed to approximate the carrying value as these accounts have no stated maturity and are payable on demand. The fair value of time deposits was estimated by discounting the contractual future cash flows using market rates offered for time deposits of similar remaining maturities. The fair value of borrowed funds was estimated by discounting the future cash flows using market rates for similar borrowings.

Direct acquisition and integration costs of the Merger were expensed as incurred and totaled $9,455 and $2,772, for the fiscal years ended September 30, 2014 and 2013, respectively. These items were recorded as Merger-related expenses in the income statement. Other direct integration costs of the Merger for the fiscal year ended September 30, 2014, totaled $26,591 and included a charge for asset write-downs, banking systems conversion, employee retention and severance compensation. These items were recorded in non-interest expense in the income statement.

The following table presents selected unaudited pro forma financial information reflecting the Merger assuming it was completed as of October 1, 2012. The unaudited pro forma financial information is presented for illustrative purposes only and is not necessarily indicative of the financial results of the combined companies had the Merger actually been completed at the beginning of the periods presented, nor does it indicate future results for any other interim or full fiscal year period. Pro forma basic and diluted earnings per common share were calculated using the Company’s actual weighted average shares outstanding for the periods presented, plus the incremental shares issued, assuming the Merger occurred at the beginning of the periods presented. The unaudited pro forma information is based on the actual financial statements of the Company for the periods presented, and on the actual financial statements of Legacy Sterling for the 2012 period presented and in 2013 until the date of the Merger, at which time Legacy Sterling’s results of operations were included in the Company’s financial statements.

The unaudited pro forma information set forth below for the fiscal years ended September 30, 2014 and 2013, reflects adjustments related to (a) purchase accounting fair value adjustments; (b) amortization of core deposit and other intangibles; and (c) adjustments to interest income and expense due to amortization of premiums and accretion of discounts. Direct Merger-related expenses and charges incurred in fiscal years ended September 30, 2014 and 2013 to write-down assets and accrue for retention and severance compensation are assumed to have occurred prior to October 1, 2012. Furthermore, the unaudited pro forma information does not reflect management’s estimate of any revenue enhancement opportunities or anticipated potential cost savings.

	Pro forma for the
	fiscal year ended September 30,
	2014		2013
Net interest income	$	198,776	$	180,030
Non-interest income	54,396		65,749
Non-interest expense	187,306		189,136
Net income	44,460		39,190
Pro forma earnings per share:
Basic	$	0.53	$	0.47
Diluted	0.53		0.47

On August 10, 2012, the Company acquired 100% of the outstanding common shares of Gotham Bank of New York (“Gotham”) in exchange for $40,510 in cash. Under the terms of the acquisition, common shareholders received cash equal to 125% of adjusted tangible net worth. The acquisition of Gotham provided a strategic expansion into the metropolitan New York City market, enabling the Company to grow its small-to-middle market commercial business. Gotham delivered a core asset and deposit base, long-term client relationships, an advantageous location in midtown Manhattan and an initial commercial banking team. Gotham’s results of operations are included in the Company’s results for all periods presented in these financial statements.

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Securities (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	$ 1,115,458	$ 973,709
Gross unrealized gains	6,856	5,805
Gross unrealized losses	(11,501)	(25,121)
Fair value	1,110,813	954,393
Residential Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	592,398	454,173
Gross unrealized gains	2,499	2,205
Gross unrealized losses	(3,047)	(7,195)
Fair value	591,850	449,183
Investment securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	523,060	519,536
Gross unrealized gains	4,357	3,600
Gross unrealized losses	(8,454)	(17,926)
Fair value	518,963	505,210
Agency-backed [Member] | Residential Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	477,003	284,837
Gross unrealized gains	2,257	1,849
Gross unrealized losses	(1,555)	(4,157)
Fair value	477,705	282,529
CMO/Other MBS [Member] | Residential Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	115,395	169,336
Gross unrealized gains	242	356
Gross unrealized losses	(1,492)	(3,038)
Fair value	114,145	166,654
Federal agencies [Member] | Investment securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	158,114	273,637
Gross unrealized gains	3	0
Gross unrealized losses	(5,303)	(12,090)
Fair value	152,814	261,547
Corporate bonds [Member] | Investment securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	195,547	118,575
Gross unrealized gains	149	153
Gross unrealized losses	(2,857)	(3,795)
Fair value	192,839	114,933
State and municipal [Member] | Investment securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	131,715	127,324
Gross unrealized gains	3,439	3,447
Gross unrealized losses	(256)	(2,041)
Fair value	134,898	128,730
Trust preferred [Member] | Investment securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	37,684	0
Gross unrealized gains	766	0
Gross unrealized losses	(38)	0
Fair value	$ 38,412	$ 0

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Deposits (Details 2) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014		Sep. 30, 2013
List of Company's Brokered deposits
Noninterest-bearing Domestic Deposit, Brokered	$ 121,067		$ 36,682
Money Market [Member]
List of Company's Brokered deposits
Noninterest-bearing Domestic Deposit, Brokered	84,022		34,571
Reciprocal CDAR's [Member]
List of Company's Brokered deposits
Noninterest-bearing Domestic Deposit, Brokered	34,017	[1]	1,343	[1]
CDAR's one way [Member]
List of Company's Brokered deposits
Noninterest-bearing Domestic Deposit, Brokered	$ 3,028		$ 768

[1] Certificate of deposit account registry service

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Stockholders' Equity (Narrative) (Details) (USD $)	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Class of Stock [Line Items]
Aggregate dividend capacity without prior regulatory approval	$ 47,879,000
Shares available for repurchase program	776,713
Sterling Bancorp [Member]
Class of Stock [Line Items]
Shares repurchased under repurchase program	0	0	0
Sterling National Bank [Member]
Class of Stock [Line Items]
Liquidation account	$ 13,300,000

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Loans (Details 3) (USD $)	Sep. 30, 2014	Sep. 30, 2013
Loans evaluated for impairment by segment
Loans evaluated by segment, Individually evaluated for impairment	$ 36,208,000	$ 36,821,000
Loans evaluated by segment, Collectively evaluated for impairment	4,720,467,000	2,376,077,000
Total loans	4,760,438,000	2,412,898,000
Allowance evaluated by segment, Individually evaluated for impairment	0	1,593,000
Allowance evaluated by segment, Collectively evaluated for impairment	40,612,000	27,284,000
Total allowance for loan losses	40,612,000	28,877,000
Commercial & industrial
Loans evaluated for impairment by segment
Loans evaluated by segment, Individually evaluated for impairment	4,177,000	2,631,000
Loans evaluated by segment, Collectively evaluated for impairment	1,158,837,000	437,156,000
Total loans	1,164,537,000	439,787,000
Allowance evaluated by segment, Individually evaluated for impairment	0	249,000
Allowance evaluated by segment, Collectively evaluated for impairment	9,536,000	5,053,000
Total allowance for loan losses	9,536,000	5,302,000
Payroll finance
Loans evaluated for impairment by segment
Loans evaluated by segment, Individually evaluated for impairment	0
Loans evaluated by segment, Collectively evaluated for impairment	145,474,000
Total loans	145,474,000
Allowance evaluated by segment, Individually evaluated for impairment	0
Allowance evaluated by segment, Collectively evaluated for impairment	1,379,000
Total allowance for loan losses	1,379,000
Warehouse lending
Loans evaluated for impairment by segment
Loans evaluated by segment, Individually evaluated for impairment	0
Loans evaluated by segment, Collectively evaluated for impairment	192,003,000
Total loans	192,003,000
Allowance evaluated by segment, Individually evaluated for impairment	0
Allowance evaluated by segment, Collectively evaluated for impairment	630,000
Total allowance for loan losses	630,000
Factored receivables
Loans evaluated for impairment by segment
Loans evaluated by segment, Individually evaluated for impairment	0
Loans evaluated by segment, Collectively evaluated for impairment	181,433,000
Total loans	181,433,000
Allowance evaluated by segment, Individually evaluated for impairment	0
Allowance evaluated by segment, Collectively evaluated for impairment	1,294,000
Total allowance for loan losses	1,294,000
Equipment financing
Loans evaluated for impairment by segment
Loans evaluated by segment, Individually evaluated for impairment	0
Loans evaluated by segment, Collectively evaluated for impairment	393,027,000
Total loans	393,027,000
Allowance evaluated by segment, Individually evaluated for impairment	0
Allowance evaluated by segment, Collectively evaluated for impairment	2,621,000
Total allowance for loan losses	2,621,000
Commercial real estate
Loans evaluated for impairment by segment
Loans evaluated by segment, Individually evaluated for impairment	13,750,000	14,091,000
Loans evaluated by segment, Collectively evaluated for impairment	1,435,163,000	1,262,946,000
Total loans	1,449,052,000	1,277,037,000
Allowance evaluated by segment, Individually evaluated for impairment	0	803,000
Allowance evaluated by segment, Collectively evaluated for impairment	10,844,000	9,164,000
Total allowance for loan losses	10,844,000	9,967,000
Multi-family
Loans evaluated for impairment by segment
Loans evaluated by segment, Individually evaluated for impairment	0
Loans evaluated by segment, Collectively evaluated for impairment	368,524,000
Total loans	368,524,000
Allowance evaluated by segment, Individually evaluated for impairment	0
Allowance evaluated by segment, Collectively evaluated for impairment	1,867,000
Total allowance for loan losses	1,867,000
Acquisition, development & construction
Loans evaluated for impairment by segment
Loans evaluated by segment, Individually evaluated for impairment	17,766,000	19,582,000
Loans evaluated by segment, Collectively evaluated for impairment	74,383,000	82,912,000
Total loans	92,149,000	102,494,000
Allowance evaluated by segment, Individually evaluated for impairment	0	540,000
Allowance evaluated by segment, Collectively evaluated for impairment	2,120,000	5,266,000
Total allowance for loan losses	2,120,000	5,806,000
Residential mortgage
Loans evaluated for impairment by segment
Loans evaluated by segment, Individually evaluated for impairment	515,000	515,000
Loans evaluated by segment, Collectively evaluated for impairment	567,815,000	399,494,000
Total loans	570,431,000	400,009,000
Allowance evaluated by segment, Individually evaluated for impairment	0	0
Allowance evaluated by segment, Collectively evaluated for impairment	5,837,000	4,474,000
Total allowance for loan losses	5,837,000	4,474,000
Consumer
Loans evaluated for impairment by segment
Loans evaluated by segment, Individually evaluated for impairment	0	2,000
Loans evaluated by segment, Collectively evaluated for impairment	203,808,000	193,569,000
Total loans	203,808,000	193,571,000
Allowance evaluated by segment, Individually evaluated for impairment	0	1,000
Allowance evaluated by segment, Collectively evaluated for impairment	4,484,000	3,327,000
Total allowance for loan losses	4,484,000	3,328,000
Purchased credit impaired loans
Loans evaluated for impairment by segment
Loans evaluated by segment, Purchased credit impaired loans	3,763,000
Purchased credit impaired loans | Commercial & industrial
Loans evaluated for impairment by segment
Loans evaluated by segment, Purchased credit impaired loans	1,523,000
Purchased credit impaired loans | Payroll finance
Loans evaluated for impairment by segment
Loans evaluated by segment, Purchased credit impaired loans	0
Purchased credit impaired loans | Warehouse lending
Loans evaluated for impairment by segment
Loans evaluated by segment, Purchased credit impaired loans	0
Purchased credit impaired loans | Factored receivables
Loans evaluated for impairment by segment
Loans evaluated by segment, Purchased credit impaired loans	0
Purchased credit impaired loans | Equipment financing
Loans evaluated for impairment by segment
Loans evaluated by segment, Purchased credit impaired loans	0
Purchased credit impaired loans | Commercial real estate
Loans evaluated for impairment by segment
Loans evaluated by segment, Purchased credit impaired loans	139,000
Purchased credit impaired loans | Multi-family
Loans evaluated for impairment by segment
Loans evaluated by segment, Purchased credit impaired loans	0
Purchased credit impaired loans | Acquisition, development & construction
Loans evaluated for impairment by segment
Loans evaluated by segment, Purchased credit impaired loans	0
Purchased credit impaired loans | Residential mortgage
Loans evaluated for impairment by segment
Loans evaluated by segment, Purchased credit impaired loans	2,101,000
Purchased credit impaired loans | Consumer
Loans evaluated for impairment by segment
Loans evaluated by segment, Purchased credit impaired loans	$ 0

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Accumulated Other Comprehensive (Loss) Income

12 Months Ended

Sep. 30, 2014

Equity [Abstract]

Accumulated Other Comprehensive (Loss) Income

Accumulated Other Comprehensive (Loss) Income

Components of accumulated other comprehensive income (loss) (“AOCI”) were as follows at September 30:

	September 30,
	2014			2013
Net unrealized holding loss on available for sale securities	$	(4,645	)	$	(19,316	)
Related income tax benefit	1,974			7,844
Available for sale securities AOCI, net of tax	(2,671		)	(11,472		)
Net unrealized holding loss on securities transferred to held to maturity	(8,947		)	—
Related income tax benefit	3,803			—
Securities transferred to held to maturity AOCI, net of tax	(5,144		)	—
Net unrealized holding loss on retirement plans	(6,336		)	(6,496		)
Related income tax benefit	2,692			2,638
Retirement plan AOCI, net of tax	(3,644		)	(3,858		)
Accumulated other comprehensive loss	$	(11,459	)	$	(15,330	)

The following table presents the changes in each component of accumulated other comprehensive income for the fiscal years ended September 30, 2014, 2013 and 2012:

	Net unrealized holding gain (loss) on AFS securities			Net unrealized holding (loss) on securities transferred to held to maturity			Net unrealized holding gain (loss) on retirement plans			Total
Fiscal year ended September 30, 2014
Balance beginning of the year	$	(11,472	)	$	—		$	(3,858	)	$	(15,330	)
Other comprehensive gain (loss) before reclassification	9,170			(5,144		)	—			4,026
Amounts reclassified from AOCI	(369		)	—			214			(155		)
Total other comprehensive income (loss)	8,801			(5,144		)	214			3,871
Balance at end of period	$	(2,671	)	$	(5,144	)	$	(3,644	)	$	(11,459	)
Fiscal year ended September 30, 2013
Balance beginning of the year	$	15,066		$	—		$	(8,167	)	$	6,899
Other comprehensive (loss) gain before reclassification	(22,167		)	—			3,041			(19,126		)
Amounts reclassified from AOCI	(4,371		)	—			1,268			(3,103		)
Total other comprehensive (loss) income	(26,538		)	—			4,309			(22,229		)
Balance at end of period	$	(11,472	)	$	—		$	(3,858	)	$	(15,330	)
Fiscal year ended September 30, 2012
Balance beginning of the year	$	13,604		$	—		$	(8,468	)	$	5,136
Other comprehensive gain before reclassification	7,640			—			—			7,640
Amounts reclassified from AOCI	(6,178		)	—			301			(5,877		)
Total other comprehensive income	1,462			$	—		301			1,763
Balance at end of period	$	15,066		$	—		$	(8,167	)	$	6,899

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Condensed Parent Company Financial Statements - Statements of Financial Condition (Details) (USD $)	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
Condensed Financial Statements, Captions [Line Items]
Cash	$ 177,619,000	$ 113,090,000	$ 437,982,000	$ 281,512,000
Goodwill	388,926,000	163,117,000	163,247,000
Other assets	41,900,000	34,184,000
Total assets	7,337,387,000	4,049,172,000
Senior Notes	98,402,000	98,033,000
Other liabilities	134,032,000	30,380,000
Total liabilities	6,376,249,000	3,566,306,000
Stockholders’ equity	961,138,000	482,866,000	491,122,000	431,134,000
Total liabilities and stockholders’ equity	7,337,387,000	4,049,172,000
Sterling Bancorp [Member]
Condensed Financial Statements, Captions [Line Items]
Cash	23,369,000	56,230,000	6,716,000	6,692,000
Loan receivable from ESOP	0	6,437,000
Goodwill	18,970,000	0
Trade name	20,500,000	0
Other intangible assets, net	917,000	0
Other assets	528,000	1,184,000
Total assets	1,079,844,000	585,029,000
Senior Notes	98,402,000	98,033,000
Other liabilities	20,304,000	4,130,000
Total liabilities	118,706,000	102,163,000
Stockholders’ equity	961,138,000	482,866,000
Total liabilities and stockholders’ equity	1,079,844,000	585,029,000
Sterling National Bank [Member] | Sterling Bancorp [Member]
Condensed Financial Statements, Captions [Line Items]
Investment in Sterling National Bank	1,011,973,000	517,907,000
Non-bank Subsidiaries[Member] | Sterling Bancorp [Member]
Condensed Financial Statements, Captions [Line Items]
Investment in non-bank subsidiaries	$ 3,587,000	$ 3,271,000

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Loans (Details 8) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Special mention
Risk category of loans by segment of gross loans
Gross loans by segment	$ 39,553	$ 13,530
Substandard
Risk category of loans by segment of gross loans
Gross loans by segment	73,093	60,503
Doubtful
Risk category of loans by segment of gross loans
Gross loans by segment	0	592
Commercial & industrial | Special mention
Risk category of loans by segment of gross loans
Gross loans by segment	24,980	3,545
Commercial & industrial | Substandard
Risk category of loans by segment of gross loans
Gross loans by segment	5,749	3,855
Commercial & industrial | Doubtful
Risk category of loans by segment of gross loans
Gross loans by segment	0	365
Payroll finance | Special mention
Risk category of loans by segment of gross loans
Gross loans by segment	0	0
Payroll finance | Substandard
Risk category of loans by segment of gross loans
Gross loans by segment	346	0
Payroll finance | Doubtful
Risk category of loans by segment of gross loans
Gross loans by segment	0	0
Factored receivables | Special mention
Risk category of loans by segment of gross loans
Gross loans by segment	46	0
Factored receivables | Substandard
Risk category of loans by segment of gross loans
Gross loans by segment	370	0
Factored receivables | Doubtful
Risk category of loans by segment of gross loans
Gross loans by segment	0	0
Equipment financing | Special mention
Risk category of loans by segment of gross loans
Gross loans by segment	0	0
Equipment financing | Substandard
Risk category of loans by segment of gross loans
Gross loans by segment	262	0
Equipment financing | Doubtful
Risk category of loans by segment of gross loans
Gross loans by segment	0	0
Commercial real estate | Special mention
Risk category of loans by segment of gross loans
Gross loans by segment	8,720	7,279
Commercial real estate | Substandard
Risk category of loans by segment of gross loans
Gross loans by segment	26,826	24,561
Commercial real estate | Doubtful
Risk category of loans by segment of gross loans
Gross loans by segment	0	227
Multi-family | Special mention
Risk category of loans by segment of gross loans
Gross loans by segment	0	0
Multi-family | Substandard
Risk category of loans by segment of gross loans
Gross loans by segment	131	0
Multi-family | Doubtful
Risk category of loans by segment of gross loans
Gross loans by segment	0	0
Acquisition, development & construction | Special mention
Risk category of loans by segment of gross loans
Gross loans by segment	1,040	1,867
Acquisition, development & construction | Substandard
Risk category of loans by segment of gross loans
Gross loans by segment	16,456	19,410
Acquisition, development & construction | Doubtful
Risk category of loans by segment of gross loans
Gross loans by segment	0	0
Residential mortgage | Special mention
Risk category of loans by segment of gross loans
Gross loans by segment	2,988	824
Residential mortgage | Substandard
Risk category of loans by segment of gross loans
Gross loans by segment	16,981	9,786
Residential mortgage | Doubtful
Risk category of loans by segment of gross loans
Gross loans by segment	0	0
Consumer | Special mention
Risk category of loans by segment of gross loans
Gross loans by segment	1,779	15
Consumer | Substandard
Risk category of loans by segment of gross loans
Gross loans by segment	5,972	2,891
Consumer | Doubtful
Risk category of loans by segment of gross loans
Gross loans by segment	$ 0	$ 0

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Borrowings and Senior Notes (Tables)

12 Months Ended

Sep. 30, 2014

Debt Instruments [Abstract]

Schedule of debt

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

	September 30,
	2014				2013
	Amount		Rate		Amount		Rate
By type of borrowing:
FHLB advances and overnight	$	795,028	1.75	%	$	442,602	2.77	%
Repurchase agreements	25,639		0.39		20,351		0.88
Fed funds purchased	20,000		0.31		—		—
Senior notes	98,402		5.98		98,033		5.98
Total borrowings	$	939,069	2.12	%	$	560,986	3.26	%
By remaining period to maturity:
Less than one year	$	370,365	0.69	%	$	158,897	0.95	%
One to two years	140,344		0.59		78,717		1.97
Two to three years	257,442		3.52		191		5.32
Three to four years	168,402		4.38		202,414		4.21
Four to five years	—		—		118,033		5.57
Greater than five years	2,516		4.92		2,734		4.92
Total borrowings	$	939,069	2.12	%	$	560,986	3.26	%

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Other Non-Interest Expense

12 Months Ended

Sep. 30, 2014

Other Income and Expenses [Abstract]

Other Non-interest Expense

Other Non-interest Expense

Other non-interest expense items are presented in the following table. Components exceeding 1% of the aggregate of total net interest income and total non-interest income are presented separately.

	For the year ended September 30,
	2014		2013		2012
Other non-interest expense:
Advertising and promotion	$	2,358	$	1,502	$	1,849
Professional fees	6,913		3,393		4,247
Data and check processing	3,439		2,520		2,802
ATM/debit card expense	1,249		1,722		1,711
Insurance & surety bond premium	2,703		1,199		1,220
Charge for asset write-downs, severance and retention	22,976		—		—
Charge for banking systems conversion	3,249		—		—
Other	15,030		7,040		6,562
Total other non-interest expense	$	57,917	$	17,376	$	18,391

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Employee Benefit Plans And Stock-Based Compensation Plans (Details Textual) (USD $)	0 Months Ended	12 Months Ended					12 Months Ended							1 Months Ended	12 Months Ended				12 Months Ended		1 Months Ended	12 Months Ended												12 Months Ended						12 Months Ended
	Oct. 31, 2013	Sep. 30, 2014		Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2014 Share Option Plan Two Thousand Four [Member]	Sep. 30, 2014 Stock Options [Member]	Sep. 30, 2014 Stock Options [Member] Minimum [Member]	Sep. 30, 2014 Stock Options [Member] Maximum [Member]	Sep. 30, 2014 2012 Stock Plan [Member]	Sep. 30, 2014 Employee Savings Plan [Member]	Sep. 30, 2013 Employee Savings Plan [Member]	Sep. 30, 2012 Employee Savings Plan [Member]	Jan. 31, 2004 Employee Stock Ownership Plan [Member]	Sep. 30, 2014 Employee Stock Ownership Plan [Member]	Sep. 30, 2013 Employee Stock Ownership Plan [Member]	Sep. 30, 2012 Employee Stock Ownership Plan [Member]	Feb. 04, 2014 Employee Stock Ownership Plan [Member]	Sep. 30, 2014 2014 Stock Incentive Plan [Member]	Sep. 30, 2014 Recognition and Retention Plan [Member]	Feb. 28, 2010 Stock Option Plan [Member]	Sep. 30, 2014 Stock Option Plan [Member]	Sep. 30, 2013 Stock Option Plan [Member]	Sep. 30, 2012 Stock Option Plan [Member]	Sep. 30, 2014 Restricted Stock [Member]	Sep. 30, 2014 Restricted Stock Units (RSUs) [Member]	Sep. 30, 2014 Non-vested Stock Awards and Performance Units [Member]	Sep. 30, 2014 Non-vested Stock Awards and Performance Units [Member] Recognition and Retention Plan [Member]		Sep. 30, 2014 Stock Options [Member]	Sep. 30, 2014 Pension Plans [Member]	Sep. 30, 2013 Pension Plans [Member]	Feb. 04, 2014 Employee Stock Ownership Plan (ESOP) loan repayment [Member]	Sep. 30, 2014 Sterling Bancorp (Legacy)	Sep. 30, 2014 Sterling Bancorp (Legacy) Maximum [Member]	Sep. 30, 2014 Sterling Bancorp (Legacy) Sterling Bancorp 2013 Employment Inducement Award Plan [Member]	Sep. 30, 2014 Sterling Bancorp (Legacy) Fully Vested legacy Sterling options [Member]	Sep. 30, 2014 Sterling Bancorp (Legacy) Restricted Stock Units (RSUs) [Member] 2012 Stock Plan [Member]	Oct. 31, 2013 Sterling Bancorp (Legacy) legacy Sterling/ National Bank employees' Retirement Plan [Member]	Sep. 30, 2014 Stock Compensation Grants associated with legacy Sterling Merger [Member]		Sep. 30, 2014 Stock Compensation Grants associated with legacy Sterling Merger [Member] Stock Options [Member]	Sep. 30, 2014 Stock Compensation Grants associated with legacy Sterling Merger [Member] Non-vested Stock Awards and Performance Units [Member] Recognition and Retention Plan [Member]		Sep. 30, 2014 Stock Compensation Grants associated with legacy Sterling Merger [Member] Restricted Stock Units (RSUs) [Member] Recognition and Retention Plan [Member]
Schedule of Employee Benefit Plans And Stock-Based Compensation Plans [Line Items]
Increase of accrued benefit																																							4.40%
Partial settlement																															$ (44,774,000)	$ 0
Unrecognized acturaial loss and prior service cost expected to be amortized																															0
Net periodic pension cost, Long-term rate of return on plan assets																															4.00%	7.75%
Pension plan assets consisting of company common stock (in shares)		0
Health care cost trend rate		1.00%
Maximum contribution by employee, percent											50.00%
Maximum contribution by employer, percent of employee contribution											50.00%
Maximum annual contribution per employee, percent											3.00%
Savings plan expense											1,614,000	935,000	1,029,000
Amount borrowed by ESOP														9,987,000				5,983,000
Number of shares purchased for ESOP with borrowings														998,650
Term of loan														20 years
Employee stock ownership plan percent automatically vested upon termination	100.00%
Cumulative shares in ESOP																		499,330															488,403
Number of ESPO shares allocated																		10,927
ESOP expense (net of forfeitures)															295,000	497,000	390,000
Number of shares authorized						2,796,220													3,400,000
Shares remaining that are authorized and available for future grant		3,350,761		2,066,184
Number of shares granted for each share received										3.6									3.5
Number of shares remaining for issuance under the 2012 Plan										566,554
Number of shares subject to accelerated vesting																				11,533
Term of contract							10 years
Vesting period for awards								2 years	5 years																										3 years
Grant of share options (in shares)		324,862	[1]																		107,256				29,550	11,820										95,991	104,152			104,152	[1]
Exercise price (in usd per share)		$ 11.45	[1]																																					$ 14.25	[1]	$ 14.25
Awards canceled of forfeited (in shares)		375,235																																37,873
Grants in period, other than options (in shares)																												115,145	[1]									255,973					351,964	[1]
Weighted average grant date fair value (in usd per share)																												$ 11.53	[1]														$ 11.72	[1]	$ 11.72
Intrinsic value of options outstanding		3,900,000
Intrinsic value of options exercisable		1,800,000																						651,000
Proceeds from stock option exercises		$ 2,980,000		$ 62,000	$ 102,000
Weighted average fair value of options granted (in usd per share)																						$ 2.51	$ 2.74	$ 2.31
Weighted-average period total unrecognized compensation cost related to non-vested shares granted																											1 year 9 months 26 days			1 year 7 months 28 days

[1] (1) Reflects certain non-vested stock awards that count as 3.5 shares or 3.6 shares for each share granted.