Sterling Bancorp 8-K Sterling Bancorp Reports All-Time High in Pre-Tax Income for Second Quarter 2005

Exhibit 99.1

     650 FIFTH AVENUE
     NEW YORK NY 10019-6108

John Tietjen	Thomas Walsh
Chief Financial Officer	Investor Relations/Media Relations
Sterling Bancorp	MWW Group
john.tietjen@sterlingbancorp.com	twalsh@mww.com
212.757.8035	201.964.2464
FOR IMMEDIATE RELEASE

Sterling Bancorp Reports All-Time High in Pre-Tax Income for Second Quarter 2005

Gross Revenue Up 15.6%, Average Loans and Deposits Each Increased Over 13%

New York, NY, July 26, 2005 — Sterling Bancorp (NYSE: STL), a financial holding company and the parent company of Sterling National Bank, today reported its financial results for the quarter ended June 30, 2005.

Second Quarter 2005 Highlights:

• Pre-tax income increased 14.2% to an all-time high of $10.2 million

• Gross revenue (interest income plus non-interest income) rose 15.6% to an all-time high of $37.1 million

• Net interest income on a tax-equivalent basis rose 10.5% to $21.2 million

• Average loans and deposits increased 13.1% and 13.6%, respectively

• Mortgage banking income was up 16.4%

• Net interest margin improved to 4.84%

“We were able to deliver a solid financial performance, demonstrating the strength of our balanced business model despite the changing economic and interest rate environment,” said Louis J. Cappelli, Chairman and Chief Executive Officer. “The increases in short-term interest rates have been beneficial and significantly contributed to the increase in gross revenue which more than offset the impact of a flattening yield curve.”

“Business development efforts produced substantial organic growth in both loans and deposits,” stated Chairman Cappelli. “Our focus on higher margin residential real estate loans held for sale produced superior profits that counterbalanced mortgage industry trends of lower volumes.”

“We remained focused on enhancing value for our shareholders,” continued Chairman Cappelli. “During the second quarter, the Board of Directors increased the Company’s authority to repurchase Common Shares by an additional 800,000 shares, further demonstrating confidence in the Company’s performance. In addition, the Board approved a dividend for the 238^th consecutive quarter in May 2005, reflecting over 59 years of dedication to enhancing shareholder value.”

Second Quarter and First Six Months 2005 Financial Results

Net Income

Net income for the second quarter of 2005 was $6.1 million. Diluted earnings per share were $0.33 for the quarter ended June 30, 2005.

For the six months ended June 30, 2005, net income was $11.8 million. Diluted earnings per share were $0.63 for the six months ended June 30, 2005.

Net Interest Income

In the second quarter of 2005, net interest income, on a tax-equivalent basis, increased to $21.2 million compared to $19.2 million in the second quarter of 2004. Net interest income benefited from growth in average loans outstanding and the higher interest rate environment of 2005, which was partially offset by the impact of a flattening yield curve and growth of interest-bearing deposits at higher costs.

For the six months ended June 30, 2005, net interest income, on a tax-equivalent basis, rose to $41.9 million from $38.5 million in the first half of 2004.

Net interest margin for the second quarter of 2005, on a tax-equivalent basis, increased to 4.84%, compared to 4.75% for the second quarter of 2004.

For the six-month period ended June 30, 2005, net interest margin, on a tax-equivalent basis, increased to 4.94%, compared to 4.87% for the corresponding period of 2004.

Loans

Average loans held in portfolio for the second quarter 2005 grew 12.8% year-over-year to $966.6 million, with all significant segments of Sterling’s loan portfolio showing an increase in average outstandings.

For the six-month period ended June 30, 2005, average loans held in portfolio rose 14.7% to $960.7 million.

Demand Deposits

For the second quarter 2005, average demand deposits increased 9.2% to $445.9 million.

Demand deposits, on average, grew by 8.9% to $441.2 million in the six-month period ended June 30, 2005.

As of June 30, 2005, demand deposits were 33.3% of total deposits, continuing Sterling’s tradition of maintaining one of the highest ratios of demand to total deposits in the industry.

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Cost of Funds

In the second quarter of 2005, total interest expense was $6.7 million compared to $4.5 million in the second quarter of 2004. The increase was driven by higher average interest-bearing deposits, which increased to $925.2 million for the second quarter of 2005, compared to $798.7 million in the second quarter 2004, along with the higher interest rate environment in 2005. The average rate paid on interest-bearing funds was 2.18% for the second quarter 2005, compared to 1.61% for the second quarter 2004.

For the six-month period ended June 30, 2005, the average rate paid on interest-bearing funds was 2.07%, compared to 1.64% for the corresponding period of 2004. For the six months ended June 30, 2005, total interest expense was $12.4 million, compared to $9.1 million in the corresponding period of 2004.

Noninterest Income and Noninterest Expenses

For the second quarter of 2005, noninterest income increased 9% to $9.3 million. The Company experienced solid revenue growth in mortgage banking and fees collected for deposit services, which more than offset decreases in income from sales of available for sale securities and from other service charges and fees.

Noninterest income for the six-month period ended June 30, 2005 increased to $17.3 million from $16.8 million in the corresponding period of last year. This increase was the result of improved income primarily from mortgage banking, fees collected for deposit services and bank owned life insurance, partially offset by lower income from factoring, trade finance and gains on sales of available for sale securities.

Noninterest expenses for the quarter ended June 30, 2005 were $18.2 million, compared to $16.2 million in the corresponding period of 2004. For the six-month period ended June 30, 2005, noninterest expenses were $35.2 million, compared to $32.1 million in the first half of 2004. The increases were primarily due to higher professional fees related to compliance efforts and investments in the Sterling franchise.

Provision for Income Taxes

The provision for income taxes increased to $4.1 million for the second quarter of 2005 from $2.4 million for the corresponding period of 2004. The lower provision for taxes for the second quarter of 2004 was due primarily to the resolution in that quarter of certain state tax issues for the years 1999-2001.

Asset Quality

As of June 30, 2005, nonperforming assets were $4.6 million, representing 0.24% of total assets.

The provision for loan losses for the second quarter 2005 was $2.0 million, compared to $2.5 million for the second quarter 2004.

For the six months ended June 30, 2005, the provision for loan losses was $4.7 million, compared to $4.9 million in the corresponding period of 2004.

Page 3

The allowance for loan losses as a percentage of loans held in portfolio was 1.60% as of June 30, 2005.

Dividend

On June 30, 2005, Sterling paid a cash dividend of $0.19 per common share to shareholders of record as of June 15, 2005. The Company has distributed cash dividends for 238 consecutive quarters.

Conference Call

Sterling Bancorp will host a teleconference call for the financial community on Tuesday, July 26, 2005 at 10:00 a.m. Eastern Time to discuss the second quarter 2005 financial results. The public is invited to listen to this conference call by dialing 866-244-4515 at least 10 minutes prior to the call and entering passcode 745575.

A replay of the conference call will be available at 1:00 p.m. Eastern Time on Tuesday, July 26, 2005 until 11:59 p.m. Eastern Time on Tuesday, August 2, 2005. The public is invited to listen to this conference call by dialing 888-266-2081 and entering passcode 745575.

About Sterling Bancorp

Sterling Bancorp (NYSE: STL) is a financial holding company with assets of $1.9 billion, offering a broad array of banking and financial services products. Its principal banking subsidiary is Sterling National Bank, founded in 1929. Sterling provides a wide range of products and services, including business and consumer loans, commercial and residential mortgage lending and brokerage, asset-based financing, factoring, trade financing, equipment leasing, corporate and consumer deposit services, trust and estate administration, and investment management services. The Company has operations in New York, Virginia and North Carolina and conducts business throughout the U.S.

This press release may contain statements, including but not limited to, statements concerning future results of operations or financial position, borrowing capacity and future liquidity, future investment results, future credit exposure, future loan losses and plans and objectives for future operations, and other statements regarding matters that are not historical facts, that are “forward-looking statements” as defined in the Securities Exchange Act of 1934. These statements are not historical facts but instead are subject to numerous assumptions, risks and uncertainties, and represent only the Company’s belief regarding future events, many of which, by their nature, are inherently uncertain and outside its control. Any forward-looking statements the Company may make speak only as of the date on which such statements are made. The Company’s actual results and financial position may differ materially from the anticipated results and financial condition indicated in or implied by these forward-looking statements. For a discussion of some of the risks and important factors that could affect the Company’s future results and financial condition, see “Cautionary Statement Regarding Forward-Looking Statements” in Part I of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2004.

Page 4

STERLING BANCORP
Consolidated Financial Highlights
(Unaudited)
(dollars and shares in thousands, except per share data)

	Three Months Ended June 30,						Six Months Ended June 30,
	2005			2004			2005			2004
OPERATING HIGHLIGHTS
Interest income	$	27,806		$	23,553		$	54,010		$	47,087
Interest expense		6,741			4,519			12,443			9,058
Provision for loan losses		2,006			2,471			4,654			4,897
Noninterest income		9,314			8,547			17,310			16,771
Noninterest expenses		18,191			16,192			35,167			32,141
Net income		6,056			6,565			11,823			11,772
Earnings per common share:
Basic		0.33			0.35			0.65			0.64
Diluted		0.33			0.34			0.63			0.61
Cash dividends declared		0.19			0.16			0.38			0.32
Common shares outstanding:
Period end		18,369			18,207			18,369			18,207
Average Basic		18,344			18,364			18,303			18,266
Average Diluted		19,003			19,183			18,914			19,164
Return on average assets		1.27	%		1.50	%		1.26	%		1.36	%
Return on average tangible equity (1)		18.79	%		21.86	%		18.65	%		19.45	%
Return on average stated equity (2)		16.14	%		18.60	%		16.00	%		16.57	%
Net interest spread, tax-equivalent basis		4.24	%		4.30	%		4.36	%		4.40	%
Net interest margin, tax-equivalent basis		4.84	%		4.75	%		4.94	%		4.87	%
ASSET QUALITY HIGHLIGHTS
Period End
Net charge-offs	$	2,632		$	2,205		$	4,827		$	4,328
Nonperforming loans		4,345			2,756			4,345			2,756
Other real estate owned		295			1,033			295			1,033
Nonperforming assets		4,640			3,789			4,640			3,789
Nonperforming loans/loans (3)		0.42	%		0.29	%		0.42	%		0.29	%
Nonperforming assets/assets		0.24	%		0.21	%		0.24	%		0.21	%
Allowance for loan losses/loans (4)		1.60	%		1.66	%		1.60	%		1.66	%
Allowance for loan losses/ nonperforming loans		371.83	%		545.28	%		371.83	%		545.28	%

(1)	Average tangible equity represents average shareholders’ equity less average goodwill.
(2)	Average stated equity is equal to average shareholders’ equity.
(3)	The term “loans” includes loans held for sale and loans held in portfolio.
(4)	The term “loans” includes loans held in portfolio only.

Page 5

STERLING BANCORP
Consolidated Financial Highlights
(Unaudited)
(dollars in thousands, except per share data)

	Three Months Ended June 30,						Six Months Ended June 30,
	2005			2004			2005			2004
BALANCE SHEET HIGHLIGHTS
Period End Balances
Security investments	$	725,246		$	696,062		$	725,246		$	696,062
Loans held for sale		36,767			44,458			36,767			44,458
Loans held in portfolio, net of unearned discount		1,008,195			903,136			1,008,195			903,136
Total earning assets		1,771,247			1,645,817			1,771,247			1,645,817
Allowance for loan losses		16,156			15,028			16,156			15,028
Total assets		1,908,811			1,799,466			1,908,811			1,799,466
Noninterest-bearing deposits		457,565			444,343			457,565			444,343
Interest-bearing deposits		917,073			811,443			917,073			811,443
Customer repurchase agreements		63,502			80,681			63,502			80,681
Shareholders’ equity		154,806			139,111			154,806			139,111
Average Balances
Security investments	$	733,753		$	717,169		$	713,308		$	706,153
Loans held for sale		52,609			44,429			45,340			44,122
Loans held in portfolio, net of unearned discount		966,636			856,727			960,724			837,756
Total earning assets		1,772,219			1,623,695			1,739,446			1,602,884
Allowance for loan losses		17,652			15,597			17,450			15,460
Total assets		1,915,967			1,760,091			1,885,338			1,741,300
Noninterest-bearing deposits		445,933			408,520			441,247			405,315
Interest-bearing deposits		925,244			798,716			909,821			796,157
Customer repurchase agreements		86,793			78,753			86,281			77,061
Shareholders’ equity		150,464			141,961			149,012			142,894
Capital Ratios
Tier 1 risk based		13.89	%		13.41	%		13.89	%		13.41	%
Total risk based		15.15	%		14.66	%		15.15	%		14.66	%
Leverage		8.53	%		8.50	%		8.53	%		8.50	%
Book value per common share	$	8.43		$	7.64		$	8.43		$	7.64

Page 6

STERLING BANCORP
Consolidated Balance Sheets
(Unaudited)
(in thousands, except number of shares)

	June 30,
	2005		2004
ASSETS
Cash and due from banks	$	51,544	$	74,605
Interest-bearing deposits with other banks		1,039		2,161
Federal Funds Sold		0		0
Investment securities
Available for sale (at estimated market value)		213,946		300,452
Held to maturity (at cost)		511,300		395,610
Total investment securities		725,246		696,062
Loans held for sale		36,767		44,458
Loans held in portfolio, net of unearned discounts		1,008,195		903,136
Less allowance for loan losses		16,156		15,028
Loans, net		992,039		888,108
Customers’ liability under acceptances		467		1,067
Goodwill		21,158		21,158
Premises and equipment, net		10,915		10,285
Other real estate		295		1,033
Accrued interest receivable		5,650		5,256
Bank owned life insurance		26,766		22,349
Other assets		36,925		32,924
	$	1,908,811	$	1,799,466
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits
Noninterest-bearing	$	457,565	$	444,343
Interest-bearing		917,073		811,443
Total deposits		1,374,638		1,255,786
Federal funds purchased		20,000		0
Securities sold under agreements to repurchase — customers		63,502		80,681
Securities sold under agreements to repurchase — dealers		74,728		58,616
Commercial paper		36,533		36,201
Other short-term borrowings		1,448		15,525
Acceptances outstanding		467		1,067
Accrued expenses and other liabilities		76,915		76,705
Long-term debt		105,774		135,774
Total liabilities		1,754,005		1,660,355
Shareholders’ equity		154,806		139,111
	$	1,908,811	$	1,799,466
MEMORANDA
Available for sale securities — amortized cost	$	214,578	$	303,868
Held to maturity securities — estimated market value		511,541		391,756
Shares outstanding
Common issued		20,055,849		19,825,898
Common in treasury		1,686,555		1,618,903

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STERLING BANCORP
Consolidated Statements of Income
(Unaudited)
(dollars in thousands, except per share data)

	Three Months Ended June 30,				Six Months Ended June 30,
	2005		2004		2005		2004
INTEREST INCOME
Loans	$	19,478	$	15,412	$	37,854	$	30,494
Investment securities — available for sale		2,467		3,454		4,969		7,146
Investment securities — held to maturity		5,733		4,678		10,943		9,384
Federal funds sold		112		6		222		56
Deposits with other banks		16		3		22		7
Total interest income		27,806		23,553		54,010		47,087
INTEREST EXPENSE
Deposits		4,086		2,374		7,538		4,847
Securities sold under agreements to repurchase		837		365		1,423		681
Federal funds purchased		157		47		178		63
Commercial paper		223		78		383		141
Other short-term borrowings		61		94		66		206
Long-term debt		1,377		1,561		2,855		3,120
Total interest expense		6,741		4,519		12,443		9,058
Net interest income		21,065		19,034		41,567		38,029
Provision for loan losses		2,006		2,471		4,654		4,897
Net interest income after provision for loan losses		19,059		16,563		36,913		33,132
NONINTEREST INCOME
Factoring income		1,637		1,767		3,054		3,194
Mortgage banking income		4,558		3,915		8,434		7,546
Service charges on deposit accounts		1,258		1,159		2,455		2,222
Trade finance income		541		518		962		1,011
Trust fees		152		166		324		348
Other service charges and fees		381		480		683		955
Bank owned life insurance income		437		243		687		477
Securities gains		0		149		197		685
Other income		350		150		514		333
Total noninterest income		9,314		8,547		17,310		16,771
NONINTEREST EXPENSES
Salaries		8,198		7,385		16,355		15,062
Employee benefits		2,345		2,330		4,095		4,256
Total personnel expense		10,543		9,715		20,450		19,318
Occupancy expenses, net		1,348		1,234		2,663		2,464
Equipment expenses		831		658		1,595		1,414
Advertising and marketing		1,014		925		2,130		2,018
Professional fees		1,435		1,074		2,966		1,988
Data processing fees		325		301		583		588
Stationery and printing		238		194		432		461
Communications		485		391		868		798
Other expenses		1,972		1,700		3,480		3,092
Total noninterest expenses		18,191		16,192		35,167		32,141
Income before income taxes		10,182		8,918		19,056		17,762
Provision for income taxes		4,126		2,353		7,233		5,990
Net income	$	6,056	$	6,565	$	11,823	$	11,772
Average number of common shares outstanding
Basic		18,344,269		18,364,046		18,302,824		18,266,196
Diluted		19,002,691		19,182,695		18,913,957		19,164,235
Earnings per average common share
Basic	$	0.33	$	0.35	$	0.65	$	0.64
Diluted		0.33		0.34		0.63		0.61
Dividends per common share		0.19		0.16		0.38		0.32

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STERLING BANCORP
Consolidated Statements of Comprehensive Income
(Unaudited)
(in thousands)

	Three Months Ended June 30,						Six Months Ended June 30,
	2005			2004			2005			2004
Net income	$	6,056		$	6,565		$	11,823		$	11,772
Other comprehensive income, net of tax:
Unrealized holding (losses)/gains arising during the period		1,495			(4,981	)		(354	)		(3,554	)
Less:
Reclassification adjustment for gains included in net income		0			(80	)		(106	)		(370	)
Change in unrealized (losses)/gains on supplemental pension		(166	)		(99	)		(554	)		245
Comprehensive income	$	7,385		$	1,405		$	10,809		$	8,093

STERLING BANCORP
Consolidated Statements of Changes in Shareholders’ Equity
(Unaudited)
(in thousands)

	Three Months Ended June 30,						Six Months Ended June 30,
	2005			2004			2005			2004
Balance, at beginning of period	$	149,508		$	148,267		$	148,704		$	143,262
Net income for period		6,056			6,565			11,823			11,772
Common shares issued under stock incentive plan and related tax benefits		2,094			436			3,111			1,737
Purchase of common shares for treasury		(547	)		(8,310	)		(547	)		(8,310	)
Cash dividends-Common shares		(3,504	)		(2,872	)		(6,963	)		(5,791	)
Surrender of shares issued under incentive compensation plan		(196	)		0			(445	)		(251	)
Amortization of unearned compensation		66			185			137			371
Change in net unrealized holding (losses)/gains on available for sale securities		1,495			(4,981	)		(354	)		(3,554	)
Reclassification adjustment for gains included in net income		0			(80	)		(106	)		(370	)
Change in unrealized (losses)/gains on supplemental pension		(166	)		(99	)		(554	)		245
Balance, at end of period	$	154,806		$	139,111		$	154,806		$	139,111

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STERLING BANCORP

Average Balance Sheets[1]
(Unaudited)
(dollars in thousands)

	Three Months Ended
	June 30, 2005								June 30, 2004
	AVERAGE					AVERAGE			AVERAGE					AVERAGE
	BALANCE			INTEREST		RATE			BALANCE			INTEREST		RATE
Assets
Interest-bearing deposits with other banks	$	3,155		$	16		2.02	%	$	2,952		$	3		0.58	%
Investment securities — available for sale		197,236			2,185		4.43			291,038			3,126		4.30
Investment securities — held to maturity		511,387			5,733		4.48			395,637			4,678		4.73
Investment securities — tax exempt [2]		25,130			459		7.33			30,494			516		6.81
Total investment securities		733,753			8,377		4.57			717,169			8,320		4.64
Federal funds sold		16,066			112		2.77			2,418			6		0.95
Loans, net of unearned discount [3]		1,019,245			19,478		7.92			901,156			15,412		7.02
Total Interest-Earning Assets [2]		1,772,219			27,983		6.42	%		1,623,695			23,741		5.91	%
Cash and due from banks		61,229								58,365
Allowance for loan losses		(17,652	)							(15,597	)
Goodwill		21,158								21,158
Other		79,013								72,470
Total Assets	$	1,915,967							$	1,760,091
Liabilities and Shareholders’ Equity
Interest-bearing deposits
Domestic
Savings	$	28,577			28		0.40	%	$	32,636			33		0.41	%
NOW		155,218			269		0.69			135,345			147		0.44
Money market		214,740			469		0.88			203,133			191		0.38
Time		523,697			3,312		2.54			424,602			1,995		1.89
Foreign
Time		3,012			8		1.09			3,000			8		1.10
Total Interest-Bearing Deposits		925,244			4,086		1.77			798,716			2,374		1.20
Borrowings
Securities sold under agreements to repurchase — customers		86,793			417		1.93			78,753			219		1.12
Securities sold under agreements to repurchase — dealers		54,284			420		3.11			50,730			146		1.16
Federal funds purchased		20,223			157		3.12			17,399			47		1.10
Commercial paper		37,211			223		2.40			28,323			78		1.12
Other short-term debt		7,760			61		3.17			18,886			94		1.99
Long-term debt		108,082			1,377		5.09			135,774			1,561		4.59
Total Borrowings		314,353			2,655		3.38			329,865			2,145		2.60
Total Interest-Bearing Liabilities		1,239,597			6,741		2.18	%		1,128,581			4,519		1.61	%
Noninterest-bearing demand deposits		445,933								408,520
Other liabilities		79,973								81,029
Total Liabilities		1,765,503								1,618,130
Shareholders’ equity		150,464								141,961
Total Liabilities and Shareholders’ Equity	$	1,915,967							$	1,760,091
Net interest income/spread [2]					21,242		4.24	%					19,222		4.30	%
Net yield on interest-earning assets							4.84	%							4.75	%
Less: Tax-equivalent adjustment					177								188
Net interest income				$	21,065							$	19,034

[1]	The average balances of assets, liabilities and shareholders’ equity are computed on the basis of daily averages. Average rates are presented on a tax-equivalent basis. Certain reclassifications have been made to prior period amounts to conform to current presentation.
[2]	Interest and/or average rates are presented on a tax-equivalent basis.
[3]	Includes loans held for sale and loans held in portfolio; all loans are domestic. Nonaccrual loans are included in amounts outstanding and income has been included to the extent earned.

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STERLING BANCORP

Average Balance Sheets[1]
(Unaudited)
(dollars in thousands)

	Six Months Ended
	June 30, 2005								June 30, 2004
	AVERAGE					AVERAGE			AVERAGE					AVERAGE
	BALANCE			INTEREST		RATE			BALANCE			INTEREST		RATE
Assets
Interest-bearing deposits with other banks	$	2,770		$	22		1.61	%	$	3,150		$	7		0.82	%
Investment securities — available for sale		200,717			4,399		4.38			290,568			6,479		4.42
Investment securities — held to maturity		486,814			10,943		4.50			384,888			9,384		4.88
Investment securities — tax exempt [2]		25,777			930		7.28			30,697			1,091		7.15
Total investment securities		713,308			16,272		4.56			706,153			16,954		4.79
Federal funds sold		17,304			222		2.56			11,703			56		0.95
Loans, net of unearned discount [3]		1,006,064			37,854		7.94			881,878			30,494		7.22
Total Interest-Earning Assets [2]		1,739,446			54,370		6.43	%		1,602,884			47,511		6.04	%
Cash and due from banks		62,625								62,511
Allowance for loan losses		(17,450	)							(15,460	)
Goodwill		21,158								21,158
Other		79,559								70,207
Total Assets	$	1,885,338							$	1,741,300
Liabilities and Shareholders’ Equity
Interest-bearing deposits
Domestic
Savings	$	28,804			54		0.38	%	$	32,791			65		0.40	%
NOW		148,748			463		0.63			134,683			301		0.45
Money market		220,595			879		0.80			206,540			561		0.55
Time		508,667			6,126		2.43			419,143			3,904		1.87
Foreign
Time		3,007			16		1.09			3,000			16		1.08
Total Interest-Bearing Deposits		909,821			7,538		1.67			796,157			4,847		1.22
Borrowings
Securities sold under agreements to repurchase — customers		86,281			754		1.76			77,061			430		1.12
Securities sold under agreements to repurchase — dealers		46,416			669		2.91			43,677			251		1.16
Federal funds purchased		11,826			178		2.99			11,653			63		1.08
Commercial paper		36,412			383		2.12			25,871			141		1.10
Other short-term debt		4,287			66		3.12			21,816			206		1.89
Long-term debt		115,276			2,855		4.95			135,774			3,120		4.59
Total Borrowings		300,498			4,905		3.27			315,852			4,211		2.67
Total Interest-Bearing Liabilities		1,210,319			12,443		2.07	%		1,112,009			9,058		1.64	%
Noninterest-bearing demand deposits		441,247								405,315
Other liabilities		84,760								81,082
Total Liabilities		1,736,326								1,598,406
Shareholders’ equity		149,012								142,894
Total Liabilities and Shareholders’ Equity	$	1,885,338							$	1,741,300
Net interest income/spread [2]					41,927		4.36	%					38,453		4.40	%
Net yield on interest-earning assets							4.94	%							4.87	%
Less: Tax-equivalent adjustment					360								424
Net interest income				$	41,567							$	38,029

[1]	The average balances of assets, liabilities and shareholders’ equity are computed on the basis of daily averages. Average rates are presented on a tax-equivalent basis. Certain reclassifications have been made to prior period amounts to conform to current presentation.
[2]	Interest and/or average rates are presented on a tax-equivalent basis.
[3]	Includes loans held for sale and loans held in portfolio; all loans are domestic. Nonaccrual loans are included in amounts outstanding and income has been included to the extent earned.

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STERLING BANCORP AND SUBSIDIARIES

Rate/Volume Analysis [1]
(Unaudited)
(in thousands)

	Increase/(Decrease)
	Three Months Ended
	June 30, 2005 to June 30, 2004
	Volume			Rate			Net [2]
INTEREST INCOME
Interest-bearing deposits with other banks	$	0		$	13		$	13
Investment securities — available for sale		(1,033	)		92			(941	)
Investment securities — held to maturity		1,312			(257	)		1,055
Investment securities — tax exempt		(95	)		38			(57	)
Total investment securities		184			(127	)		57
Federal funds sold		79			27			106
Loans, net of unearned discounts [3]		2,055			2,011			4,066
TOTAL INTEREST INCOME	$	2,318		$	1,924		$	4,242
INTEREST EXPENSE
Interest-bearing deposits
Domestic
Savings	$	(4	)	$	(1	)	$	(5	)
NOW		25			97			122
Money market		12			266			278
Time		532			785			1,317
Foreign
Time		0			0			0
Total interest-bearing deposits		565			1,147			1,712
Borrowings
Securities sold under agreements to repurchase — customers		24			174			198
Securities sold under agreements to repurchase — dealers		11			263			274
Federal funds purchased		9			101			110
Commercial paper		32			113			145
Other short-term debt		(72	)		39			(33	)
Long-term debt		(340	)		156			(184	)
Total borrowings		(336	)		846			510
TOTAL INTEREST EXPENSE	$	229		$	1,993		$	2,222
NET INTEREST INCOME	$	2,089		$	(69	)	$	2,020

[1]	This table is presented on a tax-equivalent basis.
[2]	Changes in interest income and interest expense due to a combination of both volume and rate have been allocated to the change due to volume and the change due to rate in proportion to the relationship of change due solely to each.
[3]	Includes loans held for sale and loans held in portfolio; all loans are domestic. Nonaccrual loans are included in amounts outstanding, and income has been included to the extent earned.

Page 12

STERLING BANCORP AND SUBSIDIARIES

Rate/Volume Analysis [1]
(Unaudited)
(in thousands)

	Increase/(Decrease)
	Six Months Ended
	June 30, 2005 to June 30, 2004
	Volume			Rate			Net [2]
INTEREST INCOME
Interest-bearing deposits with other banks	$	(1	)	$	16		$	15
Investment securities — available for sale		(2,022	)		(58	)		(2,080	)
Investment securities — held to maturity		2,313			(754	)		1,559
Investment securities — tax exempt		(164	)		3			(161	)
Total investment securities		127			(809	)		(682	)
Federal funds sold		36			130			166
Loans, net of unearned discounts [3]		4,238			3,122			7,360
TOTAL INTEREST INCOME	$	4,400		$	2,459		$	6,859
INTEREST EXPENSE
Interest-bearing deposits
Domestic
Savings	$	(8	)	$	(3	)	$	(11	)
NOW		32			130			162
Money market		39			279			318
Time		914			1,308			2,222
Foreign
Time		0			0			0
Total interest-bearing deposits		977			1,714			2,691
Borrowings
Securities sold under agreements to repurchase — customers		54			270			324
Securities sold under agreements to repurchase — dealers		16			402			418
Federal funds purchased		1			114			115
Commercial paper		73			169			242
Other short-term debt		(225	)		85			(140	)
Long-term debt		(499	)		234			(265	)
Total borrowings		(580	)		1,274			694
TOTAL INTEREST EXPENSE	$	397		$	2,988		$	3,385
NET INTEREST INCOME	$	4,003		$	(529	)	$	3,474

[1]	This table is presented on a tax-equivalent basis.
[2]	Changes in interest income and interest expense due to a combination of both volume and rate have been allocated to the change due to volume and the change due to rate in proportion to the relationship of change due solely to each. The effect of the extra day in 2004 has been included in the change in volume.
[3]	Includes loans held for sale and loans held in portfolio; all loans are domestic. Nonaccrual loans are included in amounts outstanding, and income has been included to the extent earned.

Page 13