Sterling Bancorp (STL) 8-K Results of Operations and Financial Condition

EXHIBIT 99

FOR IMMEDIATE RELEASE	Stock Symbol: PBNY
January 28, 2008	Traded on NASDAQ Global Select Market

PROVIDENT BANK CONTACT:

Paul A. Maisch, EVP & Chief Financial Officer

Miranda Grimm, VP & Controller

845.369.8040

PROVIDENT NEW YORK BANCORP REPORTS A 36% INCREASE IN QUARTERLY EPS.

MONTEBELLO, NY – January 28, 2008 – Provident New York Bancorp (Nasdaq-Global Select Market: PBNY), the parent company of Provident Bank announced today, recordfirst quarter results for the fiscal year 2008. Net income for the first quarter of fiscal 2008 was $5.9 million, or $0.15 per diluted share, compared to net income of $4.6 million, or $0.11 per diluted share for the first quarter of fiscal 2007.

Highlights for the quarter include:

• Net interest margin on a fully tax equivalent basis was 3.74% for the first quarter of fiscal 2008, as compared to 3.28% for the first quarter of fiscal 2007.

• Total loans after giving effect to $24.6 million in large commercial loan payoffs grew $17.4 million in the first quarter of fiscal 2008.

• Treasury stock repurchases during the first quarter of fiscal 2008 totaled 1.1 million shares at a cost of $13.9 million. As of December 31, 2007, 1.6 million shares remain available for repurchase under the Company’s current stock repurchase program.

• The Company’s efficiency ratio improved. Control of operating expenses and the expansion of our net interest margin has led to a reduction.

President’s Comments

George Strayton, President and CEO commented: “Provident Bank made sound progress during the past quarter. By staying focused on our core business and sound banking practices, we are not burdened with the credit problems associated with sub-prime loans. We continued to direct our efforts toward strengthening our customer relationships with a full array of loan products and deposit services. We grew average commercial loans 13%, and grew average business checking deposits by 5% compared to the same period last year. I am also pleased to report that the four pillars of net income – interest income, interest expense, non-interest expense and non-interest income – all showed improvement during the last quarter.”

Net Interest Income and Margin

Net interest income was $22.4 for the first quarter of fiscal 2008, a $2.7 million increase from the same quarter of fiscal 2007 and an increase of $131,000 from the quarter ended September 30, 2007. The net interest margin on a tax equivalent basis was 3.74% for the first quarter of fiscal 2008, compared with 3.72% for the quarter ended September 30, 2007 and 3.28% for the prior year’s first quarter.

Due to increased loan balances and maturing investments the yield on earning assets increased 28 basis points to 6.39% compared to a year ago, while the cost of interest bearing liabilities decreased 15 basis points to 3.27%. We remain firmly disciplined in our pricing of loans and deposits.

As a result of the recent reductions in the federal funds target rate the yield on average interest earning assets decreased by 4 basis points compared to the quarter ended September 30, 2007. The cost of average interest bearing liabilities decreased 6 basis points from the quarter ended September 30, 2007.

Non-Interest Income

First quarter of fiscal 2008 compared with first quarter of fiscal 2007

Non-interest income decreased $75,000 compared to the first quarter of fiscal 2007. Investment management fees increased by $141,000 or 22.7% and deposit service charges and fees increased $177,000, or 6.2%, offsetting a decline in Bank owned life insurance, due to a death benefit of $350,000 received in fiscal 2007. Fiscal 2007 also included $213,000 in net gains on sales of premises.

First quarter fiscal 2008 compared with linked quarter ended September 30, 2007

Non-interest income increased $41,000 due mainly to a $66,000 increase in deposit service charges. This increase was offset in part by declines in title insurance fees.

Non-Interest Expense

First quarter of fiscal 2008 compared with first quarter of fiscal 2007

Non-interest expense increased $198,000 over the first quarter of fiscal 2007 mainly in the area of compensation and benefits, which included increases in 401K benefits, employee related insurance and performance increases for the first quarter of 2008. This increase was offset by decreases in stock-based compensation due primarily to $187,000 for the acceleration of restricted stock in fiscal 2007.

First quarter fiscal 2008 compared with linked quarter ended September 30, 2007

On a quarter to quarter basis non-interest expense declined $923,000 due to substantial decreases in the areas of compensation and benefits (severance accruals in September 2007), stock-based compensation ($293,000 due to ESOP forfeitures in December 2007), marketing (production costs related to a marketing campaign) and data processing fees (lower check processing fees). Increases seen in the areas of occupancy and equipment compared to the quarter ended September 30, 2007 were due to recoveries of real estate taxes and other real estate owned in the previous quarter and other expenses.

Income Taxes

The company’s effective tax rate was 30.7% for the first quarter of fiscal 2008 compared to 28% for the same period last year. This increase was due to a non-taxable BOLI payout received in fiscal year 2007. The company’s effective tax rate for the linked quarter ended September 30, 2007 was 31.5%. The decrease between quarters is due to lower non-deductible ESOP expenses and increased investment in tax-exempt investments.

Key Balance Sheet Changes at December 31, 2007 vs. September 30, 2007

• Gross loans grew $17.4 million to $1.7 billion, largely due to a $14.2 million increase in commercial loans.

• Securities decreased $16.2 million to $816.3 million, as the Company funded loan growth and paid down higher cost borrowings with maturing securities.

• Period end deposits decreased $41.1 million at December 31, 2007 as compared to September 30, 2007 primarily due to disciplined pricing and seasonal fluctuations experienced by the Company.

Capital

Capital decreased over September 30, 2007 levels due to the Company repurchasing 1.1 million shares of common stock at a cost of $13.9 million, offset in part by net unrealized gains on the available for sale portfolio.

Credit Quality

Non-performing assets increased $2.1 million from September 30, 2007, primarily due to two previously classified commercial mortgage relationships falling further behind in payments and the addition of one residential mortgage loan to non-accrual status. Our asset quality ratios remain good at December 31, 2007 with our coverage ratio at 217% and our non-performing loans to total loans at 0.57%. The provision for loan loss was $700,000 for the quarter ending December 31, 2007 compared to $400,000 for the quarter ending December 31, 2006. Net charge offs were $764,000 and $337,000 for the quarters ending December 31, 2007 and 2006, respectively.

Additional information

The Company maintains two ESOP loans, which release a total of 188,000 shares per year. The Company’s first ESOP loan was paid off as of December 31, 2007. As a result, after December 31, 2007, expense will be recorded on the annual release of only 50,000 shares.

Note:

In addition to historical information, this earnings release may contain forward-looking statements. For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. There are a number of important factors that have been outlined in previously filed documents with the Securities and Exchange Commission, and other factors that could cause the Company’s actual results to differ materially from those contemplated by such forward-looking statements. The Company undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.

Headquartered in Montebello, New York, Provident Bank is an independent full-service community bank. Provident Bank operates 33 branches that serve the Hudson Valley region and Bergen County, New Jersey. The bank offers a complete line of commercial, retail and investment management and trust services. Visit the Provident Bank web site atwww.providentbanking.com.

Provident New York Bancorp and Subsidiaries

CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION

(unaudited, in thousands, except share and per share data)

	December 31, 2007			September 30, 2007
Assets:
Cash and due from banks	$	43,231		$	47,291
Total securities		816,287			832,443
Loans:
One- to four-family residential mortgage loans		500,172			500,825
Commercial real estate, commercial business and construction loans		909,404			895,233
Consumer loans		245,861			242,000
Total loans, gross		1,655,437			1,638,058
Allowance for loan losses		(20,325	)		(20,389	)
Total loans, net		1,635,112			1,617,669
Federal Home Loan Bank stock, at cost		33,949			32,801
Premises and equipment, net		31,338			30,079
Goodwill		161,154			161,154
Other amortizable intangibles		10,324			11,041
Bank owned life insurance		41,252			40,818
Other assets		26,695			28,803
Total assets	$	2,799,342		$	2,802,099
Liabilities:
Deposits
Demand deposits	$	364,306		$	377,393
NOW deposits		153,292			148,875
Total transaction accounts		517,598			526,268
Savings		342,015			346,430
Money market deposits		255,237			277,793
Certificates of deposit		557,688			563,193
Total deposits		1,672,538			1,713,684
Borrowings		686,508			661,242
Mortgage escrow funds and other		38,373			22,084
Total liabilities		2,397,419			2,397,010
Stockholders’ equity		401,923			405,089
Total liabilities and stockholders’ equity	$	2,799,342		$	2,802,099
Shares of common stock outstanding at period end		40,125,457			41,230,618
Book value per share	$	10.02		$	9.82

Provident New York Bancorp and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME

(unaudited, in thousands, except share and per share data)

	Three Months and Year to Date December 31,				Quarter Ended September
	2007		2006		2007
Interest and dividend income:
Loans and loan fees	$	28,631	$	26,289	$	29,092
Securities		9,550		10,501		9,340
Other earning assets		664		550		603
Total interest and dividend income		38,845		37,340		39,035
Interest expense:
Deposits		8,923		9,140		9,454
Borrowings		7,548		8,504		7,338
Total interest expense		16,471		17,644		16,792
Net interest income		22,374		19,696		22,243
Provision for loan losses		700		400		600
Net interest income after provision for loan losses		21,674		19,296		21,643
Non-interest income:
Deposit fees and service charges		3,022		2,845		2,956
Net gain on sales of securities		—		—		(11	)
Title insurance fees		269		266		326
Bank owned life insurance		434		774		431
Investment Management Fees		763		622		715
Other		471		527		501
Total non-interest income		4,959		5,034		4,918
Non-interest expense:
Compensation and employee benefits		8,630		7,808		8,973
Stock-based compensation plans		996		1,376		1,420
Occupancy and office operations		2,925		2,833		2,765
Advertising and promotion		867		884		1,212
Professional fees		883		989		851
Data and check processing		573		651		672
Amortization of intangible assets		690		803		716
ATM/debit card expense		501		443		516
Other		2,057		2,137		1,920
Total non-interest expense		18,122		17,924		19,045
Income before income tax expense		8,511		6,406		7,516
Income tax expense		2,617		1,795		2,368
Net income	$	5,894	$	4,611	$	5,148
Per common share:
Basic earnings	$	0.15	$	0.11	$	0.13
Diluted earnings		0.15		0.11		0.13
Dividends declared		0.06		0.05		0.05
Weighted average common shares:
Basic		39,469,995		41,168,880		40,101,720
Diluted		39,805,026		41,861,538		40,543,035

	Three Months Ended
Selected Financial Condition Data:	12/31/07		09/30/07			06/30/07			03/31/07			12/31/06
(in thousands except share and per share data)						(In thousands)
End of Period
Total assets	$	2,799,342	$	2,802,099		$	2,782,801		$	2,801,365		$	2,796,454
Loans, gross (1)		1,655,437		1,638,058			1,613,841			1,560,393			1,506,380
Securities available for sale		780,714		794,997			794,949			844,271			881,106
Securities held to maturity		35,573		37,446			41,416			52,080			56,740
Bank owned life insurance		41,252		40,818			40,387			39,954			39,548
Goodwill		161,154		161,154			161,154			159,813			159,828
Other amortizable intangibles		10,324		11,041			11,782			12,556			13,358
Other non-earning assets		58,033		57,282			67,115			72,987			66,291
Deposits		1,672,538		1,713,684			1,748,827			1,740,305			1,726,186
Borrowings		686,508		661,242			595,411			618,643			623,250
Equity		401,923		405,089			402,318			412,638			411,280
Average Balances
Total assets	$	2,780,360	$	2,783,640		$	2,779,780		$	2,786,727		$	2,813,257
Loans, gross:
Real estate- residential mortgage		499,915		500,261			489,998			470,741			463,285
Real estate- commercial mortgage		537,440		539,618			541,364			535,178			529,781
Real estate- construction & land development		152,615		144,615			123,774			111,671			101,769
Commercial and industrial		210,425		205,832			197,493			181,204			165,120
Consumer loans		243,456		238,073			232,508			242,464			233,155
Loans total		1,643,851		1,628,399			1,585,137			1,541,258			1,493,110
Securities (taxable)		644,336		660,937			695,016			765,255			824,657
Securities (non-taxable)		164,144		156,328			149,125			140,987			139,876
Total earning assets		2,467,655		2,458,422			2,441,036			2,461,371			2,472,425
Non earning assets		312,705		325,218			338,744			325,356			340,832
Non-interest bearing checking		357,246		360,705			348,698			341,016			341,259
Interest bearing NOW accounts		143,396		152,926			160,187			153,105			149,311
Total transaction accounts		500,642		513,631			508,885			494,121			490,570
Savings (including mortgage escrow funds)		348,670		380,749			383,955			368,171			375,325
Money market deposits		259,931		266,714			256,541			250,347			238,079
Certificates of deposit		581,204		585,115			589,733			600,956			625,781
Total deposits		1,690,447		1,746,209			1,739,114			1,713,595			1,729,755
Total interest bearing deposits		1,333,201		1,385,504			1,390,416			1,372,579			1,388,496
Borrowings		665,380		612,274			593,467			637,472			657,269
Equity		403,146		401,617			409,528			411,611			406,927
Other comprehensive income / (loss) (SFAS 115), reflected in stockholders’ equity		1,477		(3,917	)		(4,696	)		(5,583	)		(6,013	)
Selected Operating Data:
Condensed Tax Equivalent Income Statement
Interest and dividend income	$	38,845	$	39,035		$	37,986		$	37,265		$	37,340
Tax equivalent adjustment*		880		832			807			756			720
Interest expense		16,471		16,792			15,655			16,797			17,644
Net interest income (tax equivalent)		23,254		23,075			23,138			21,224			20,416
Provision for loan losses		700		600			400			400			400
Net interest income after provision for loan losses		22,554		22,475			22,738			20,824			20,016
Non-interest income		4,959		4,918			4,988			4,905			5,034
Non-interest expense		18,122		19,045			19,050			18,571			17,924
Income before income tax expense		9,391		8,348			8,676			7,158			7,126
Income tax expense (tax equivalent)		3,497		3,200			3,240			2,726			2,515
Net income	$	5,894	$	5,148		$	5,436		$	4,432		$	4,611

(1) Does not reflect allowance for loan losses of $20,325, $20,389, $20,699, $20,435 and $20,436.

* Tax exempt income assumed at a 35% federal rate.

	12/31/07			09/30/07			06/30/07			03/31/07			12/31/06
Performance Ratios (annualized)
Return on Average Assets		0.84	%		0.73	%		0.78	%		0.64	%		0.65	%
Return on Average Equity		5.80	%		5.09	%		5.32	%		4.37	%		4.50	%
Non-Interest Income to Average Assets		0.71	%		0.70	%		0.72	%		0.71	%		0.71	%
Non-Interest Expense to Average Assets		2.59	%		2.71	%		2.75	%		2.70	%		2.53	%
Operating Efficiency		66.3	%		70.1	%		69.7	%		73.2	%		72.5	%
Analysis of Net Interest Income
Yield on:
Loans		7.00	%		7.18	%		7.15	%		7.11	%		7.08	%
Investment Securities- Tax Equivalent		5.12	%		4.94	%		4.87	%		4.80	%		4.62	%
Earning Assets- Tax Equivalent		6.39	%		6.43	%		6.37	%		6.26	%		6.11	%
Cost of:
Interest Bearing Deposits		2.66	%		2.70	%		2.60	%		2.61	%		2.61	%
Borrowings		4.50	%		4.76	%		4.50	%		5.07	%		5.14	%
Interest Bearing Liabilities		3.27	%		3.33	%		3.16	%		3.39	%		3.42	%
Net Interest Tax Equivalent:
Net Interest Rate Spread- Tax Equivalent Basis		3.12	%		3.10	%		3.21	%		2.88	%		2.69	%
Net Interest Margin- Tax Equivalent Basis		3.74	%		3.72	%		3.80	%		3.50	%		3.28	%
Capital Information Data
Tier 1 Leverage Ratio- Bank Only		8.22	%		8.07	%		8.16	%		8.55	%		8.27	%
Tier 1 Risk-Based Capital- Bank Only		215,920			212,497			212,906			224,694			216,820
Total Risk-Based Capital- Bank Only		236,245			232,886			233,605			245,129			237,256
Tangible Capital Consolidated		231,186			233,662			230,175			240,269			238,943
Tangible Capital as a % of Tangible Assets Consolidated		8.80	%		8.88	%		8.75	%		9.14	%		9.11	%
Shares Outstanding		40,125,457			41,230,618			41,666,538			42,376,905			42,716,253
Shares Repurchased Per Stock Repurchase Program		1,116,800			460,490			757,500			354,400			—
Basic weighted common shares outstanding		39,469,995			40,101,720			40,722,093			41,144,852			41,168,880
Diluted common shares outstanding		39,805,026			40,543,035			41,223,958			41,672,245			41,861,538
Per Common Share:
Basic Earnings	$	0.15		$	0.13		$	0.13		$	0.11		$	0.11
Diluted Earnings		0.15			0.13			0.13			0.11			0.11
Dividends Paid		0.06			0.05			0.05			0.05			0.05
Book Value		10.02			9.82			9.66			9.74			9.63
Tangible Book Value		5.76			5.67			5.52			5.67			5.59
Asset Quality Measurements
Non-performing loans (NPLs): non-accrual		6,053			3,509			3,956			4,840			4,278
Non-performing loans (NPLs): still accruing		3,317			3,749			3,716			3,484			2,171
Non-performing assets (NPAs)		9,507			7,397			8,377			8,411			6,536
Net Charge-offs (recoveries)		764			910			136			401			337
Net Charge-offs (recoveries) as % of average loans (annualized)		0.19	%		0.22	%		0.03	%		0.10	%		0.09	%
NPLs as % of total loans		0.57	%		0.44	%		0.48	%		0.53	%		0.43	%
NPAs as % of total assets		0.34	%		0.26	%		0.30	%		0.30	%		0.23	%
Allowance for loan losses as % of NPLs		217	%		281	%		270	%		245	%		317	%
Allowance for loan losses as % of total loans		1.23	%		1.26	%		1.28	%		1.31	%		1.36	%