Sterling Bancorp 8-K Sterling Bancorp Reports Record Gross Revenue for Third Quarter 2005

Exhibit 99.1

(STERLING BANCORP LOGO)

(IMMEDIATE NEWS RELEASE LOGO)

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 Record Gross Revenue for Third Quarter 2005

Total Assets Increased Over 12% Year-To-Year Reaching All-Time High;
Company Posts Double-Digit Growth in Loans and Deposits

New York, NY, October 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 September 30, 2005.

Third Quarter 2005 Highlights:

• Gross revenue (interest and noninterest income) rose 13.5% year-over-year to a record $38.6 million

• Noninterest income increased to an unprecedented $9.4 million

• Net interest income on a tax-equivalent basis rose to $21.5 million

• Average loans and deposits increased 14.2% and 10.7%, respectively, year-over-year

• Assets at period end increased 12.4% from September 30, 2004 and reached an all-time high, exceeding $2.0 billion

• Company repurchased 127,000 common shares — approximately 790,000 shares remain available for repurchase

“The strength of Sterling’s business platform produced solid revenue growth and double-digit increases in loans and deposits,” said Louis J. Cappelli, Chairman and Chief Executive Officer. “We continued to expand our business development efforts, and recently announced the opening of a regional office in New Jersey to provide our tailored products and personalized customer service to a heavily populated market of small and mid-sized businesses. Through strong organic growth, we achieved an all-time high in total assets, which now exceed $2 billion.”

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Third Quarter and First Nine Months 2005 Financial Results

Net Income
Net income for the third quarter of 2005 was $6.3 million. Diluted earnings per share were $0.33 for the quarter ended September 30, 2005.

For the nine months ended September 30, 2005, net income was $18.1 million, and diluted earnings per share were $0.96.

Net Interest Income

In the third quarter of 2005, net interest income, on a tax-equivalent basis, increased 7.5% to $21.5 million from $20.0 million in the third quarter of 2004. Net interest income benefited from growth in average loans and the higher interest rate environment in 2005, which was partially offset by the impact of a flattening yield curve and growth of interest-bearing deposits at higher costs.

For the nine months ended September 30, 2005, net interest income, on a tax-equivalent basis, rose 8.6% to $63.4 million from $58.4 million in the first nine months of 2004.

Net interest margin for the third quarter of 2005, on a tax-equivalent basis, was 4.76% compared to 4.84% in the third quarter of 2004.

For the nine-month period ended September 30, 2005, net interest margin, on a tax-equivalent basis, was 4.92%, unchanged from the corresponding period of 2004. “This is a testament to the strength of Sterling’s business model as the Company sustained the net interest margin even with the increased negative pressure of a flattening yield curve. Sterling’s margins rank among the highest of banks in the Company’s peer group,” said Chairman Cappelli.

Loans

Average loans for the third quarter of 2005 grew 14.2% year-over-year to $1.1 billion.

For the nine-month period ended September 30, 2005, average loans rose 14.1% to $1.0 billion.

Demand Deposits

For the third quarter 2005, average demand deposits increased 8.6% year-over-year to $461.4 million.

Demand deposits, on average, grew by 8.8% to $448.0 million for the nine-month period ended September 30, 2005.

As of September 30, 2005, demand deposits were $540.0 million, 36.6% of total deposits, continuing Sterling’s disciplined approach of maintaining one of the highest ratios of demand to total deposits in the industry. Growth of demand deposits is a significant

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factor in building strong customer relationships and continues to be an important component of Sterling’s business model.

Cost of Funds

In the third quarter of 2005, total interest expense was $7.9 million compared to $5.1 million in the third quarter of 2004. The increase occurred as a result of higher average interest-bearing deposits, which increased 11.7% to $953.1 million for the third quarter of 2005, compared to $853.3 million in the third quarter of 2004, along with the higher interest rate environment in 2005. The average rate paid on interest-bearing funds was 2.47% for the third quarter of 2005, compared to 1.77% for the third quarter of 2004, despite Sterling’s strong focus on controlling interest costs.

For the nine-month period ended September 30, 2005, the average rate paid on interest-bearing funds was 2.21%, compared to 1.68% for the corresponding period of 2004. For the nine months ended September 30, 2005, total interest expense was $20.3 million, compared to $14.1 million in the corresponding period of 2004.

Noninterest Income and Noninterest Expenses

For the third quarter of 2005, noninterest income increased to $9.4 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, factoring income and other service charges and fees.

Noninterest income for the nine-month period ended September 30, 2005 increased to $26.7 million from $25.9 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 increased $1.6 million and $4.6 million for the third quarter and the first nine months of 2005, respectively, primarily due to higher salaries and professional fees related to compliance efforts and investments in the Sterling franchise, including new branches, with higher expenses related to salaries, equipment and occupancy costs. These increases were partially offset by a reversal during the third quarter of 2005 of $1.0 million of litigation settlement costs originally charged to noninterest expenses in 2001. The increase in other expenses was principally due to higher costs for appraisals, credit reports, mortgage taxes, insurance and interest on potential tax liability.

Provision for Income Taxes

The provision for income taxes increased to $3.9 million for the third quarter of 2005 from $3.6 million for the corresponding period of 2004. For the nine-month period ended September 30, 2005, the provision for income taxes was $11.1 million, compared to $9.5 million in the first nine months of 2004. The lower provision for taxes in the first nine months of 2004 was due primarily to the resolution of certain state tax issues for the years 1999-2001.

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Asset Quality

As of September 30, 2005, nonperforming assets were $4.3 million, representing 0.21% of total assets.

The provision for loan losses for the third quarter of 2005 was $2.5 million, compared to $2.3 million for the third quarter of 2004.

For the nine months ended September 30, 2005, the provision for loan losses was $7.2 million, virtually unchanged from the corresponding period of 2004.

The allowance for loan losses as a percentage of loans held in portfolio was 1.47% as of September 30, 2005.

Dividends and Capital Management

On September 30, 2005, Sterling paid a cash dividend of $0.19 per common share to shareholders of record as of September 15, 2005. The Company has distributed cash dividends for 239 consecutive quarters.

During the third quarter of 2005, Sterling repurchased 127,000 shares of common stock as part of its authorized share repurchase plan, bringing the total common stock repurchased during the nine-month period ended September 30, 2005 to 152,100 shares. “For 60 years, our capital management initiatives have focused on returning value to shareholders through consistent and increasing dividends and stock repurchases,” stated Chairman Cappelli.

Conference Call

Sterling Bancorp will host a teleconference call for the financial community on Wednesday, October 26, 2005 at 9:00 a.m. Eastern Time to discuss the third quarter 2005 financial results. The public is invited to listen to this conference call by dialing 866-814-1919 at least 10 minutes prior to the call.

A replay of the conference call will be available at 1:00 p.m. Eastern Time on Wednesday, October 26, 2005 until 11:59 p.m. Eastern Time on Wednesday, November 2, 2005. The public is invited to listen to this conference call by dialing 888-266-2081 and entering passcode 796746.

About Sterling Bancorp

Sterling Bancorp (NYSE: STL) is a financial holding company with assets of $2.0 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, New Jersey, Virginia and North Carolina and conducts business throughout the U.S.

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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 onForm 10-K for the fiscal year ended December 31, 2004.

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2005			2004			2005			2004
OPERATING HIGHLIGHTS
Interest income	$	29,234		$	24,812		$	83,244		$	71,899
Interest expense		7,881			5,050			20,324			14,108
Provision for loan losses		2,508			2,338			7,162			7,235
Noninterest income		9,353			9,175			26,663			25,946
Noninterest expenses		18,065			16,493			53,232			48,634
Net income		6,274			6,550			18,097			18,322
Earnings per common share:
Basic		0.34			0.36			0.99			1.00
Diluted		0.33			0.35			0.96			0.96
Cash dividends declared		0.19			0.16			0.57			0.48
Common shares outstanding:
Period end		18,277			18,208			18,277			18,208
Average Basic		18,325			18,207			18,305			18,249
Average Diluted		18,917			19,026			18,878			19,114
Return on average assets		1.27	%		1.46	%		1.27	%		1.39	%
Return on average tangible equity (1)		18.90	%		21.89	%		18.74	%		20.26	%
Return on average stated equity (2)		16.29	%		18.59	%		16.10	%		17.24	%
Net interest spread, tax-equivalent basis		4.07	%		4.34	%		4.31	%		4.45	%
Net interest margin, tax-equivalent basis		4.76	%		4.84	%		4.92	%		4.92	%
ASSET QUALITY HIGHLIGHTS
Period End
Net charge-offs	$	2,429		$	1,764		$	7,256		$	6,092
Nonperforming loans		3,958			2,993			3,958			2,993
Other real estate owned		327			1,019			327			1,019
Nonperforming assets		4,285			4,012			4,285			4,012
Nonperforming loans/loans (3)		0.34	%		0.30	%		0.34	%		0.30	%
Nonperforming assets/assets		0.21	%		0.22	%		0.21	%		0.22	%
Allowance for loan losses/loans (4)		1.47	%		1.61	%		1.47	%		1.61	%
Allowance for loan losses/ nonperforming loans		410.16	%		521.28	%		410.16	%		521.28	%

(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.

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

	Three Months Ended September 30,							Nine Months Ended September 30,
	2005				2004			2005			2004
BALANCE SHEET HIGHLIGHTS
Period End Balances
Security investments	$	707,011			$	670,120		$	707,011		$	670,120
Loans held for sale		50,137				38,810			50,137			38,810
Loans held in portfolio, net of unearned discount		1,100,749				968,073			1,100,749			968,073
Total earning assets		1,860,983		��		1,679,673			1,860,983			1,679,673
Allowance for loan losses		16,234				15,602			16,234			15,602
Total assets		2,035,131				1,810,308			2,035,131			1,810,308
Noninterest-bearing deposits		540,030				424,534			540,030			424,534
Interest-bearing deposits		937,462				874,835			937,462			874,835
Customer repurchase agreements		57,920				103,596			57,920			103,596
Shareholders’ equity		153,451				145,065			153,451			145,065
Average Balances
Security investments	$	719,760			$	682,669		$	715,482		$	698,269
Loans held for sale		68,492				37,378			53,142			41,858
Loans held in portfolio, net of unearned discount		1,018,790				914,563			980,293			863,544
Total earning assets		1,817,432				1,658,029			1,765,727			1,621,183
Allowance for loan losses		17,100				16,158			17,332			15,694
Total assets		1,964,117				1,786,555			1,911,881			1,756,494
Noninterest-bearing deposits		461,418				424,974			448,038			411,916
Interest-bearing deposits		953,112				853,279			924,411			815,336
Customer repurchase agreements		87,049				90,654			86,540			81,625
Shareholders’ equity		152,843				140,174			150,303			141,981
Capital Ratios
Tier 1 risk based		12.55	%			13.05	%		12.55	%		13.05	%
Total risk based		13.80	%			14.31	%		13.80	%		14.31	%
Leverage		8.31	%			8.58	%		8.31	%		8.58	%
Book value per common share	$	8.40			$	7.97		$	8.40		$	7.97

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

	September 30,
	2005		2004
ASSETS
Cash and due from banks	$	83,504	$	53,264
Interest-bearing deposits with other banks		3,086		2,670
Investment securities
Available for sale (at estimated market value)		210,903		282,437
Held to maturity (at cost)		496,108		387,683
Total investment securities		707,011		670,120
Loans held for sale		50,137		38,810
Loans held in portfolio, net of unearned discounts		1,100,749		968,073
Less allowance for loan losses		16,234		15,602
Loans, net		1,084,515		952,471
Customers’ liability under acceptances		1,936		903
Goodwill		21,158		21,158
Premises and equipment, net		11,190		9,987
Other real estate		327		1,019
Accrued interest receivable		5,774		5,140
Bank owned life insurance		26,759		22,303
Other assets		39,734		32,463
	$	2,035,131	$	1,810,308
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits
Noninterest-bearing	$	540,030	$	424,534
Interest-bearing		937,462		874,835
Total deposits		1,477,492		1,299,369
Federal funds purchased		29,100		0
Securities sold under agreements to repurchase — customers		57,920		103,596
Securities sold under agreements to repurchase — dealers		59,894		0
Commercial paper		39,402		34,954
Other short-term borrowings		21,169		1,108
Acceptances outstanding		1,936		903
Accrued expenses and other liabilities		88,993		89,539
Long-term debt		105,774		135,774
Total liabilities		1,881,680		1,665,243
Shareholders’ equity		153,451		145,065
	$	2,035,131	$	1,810,308
MEMORANDA
Available for sale securities — amortized cost	$	213,867	$	281,801
Held to maturity securities — estimated market value		490,104		390,462
Shares outstanding
Common issued		20,143,131		19,827,398
Common in treasury		1,866,042		1,618,903

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2005		2004		2005		2004
INTEREST INCOME
Loans	$	21,222	$	16,898	$	59,076	$	47,392
Investment securities — available for sale		2,309		3,211		7,278		10,357
Investment securities — held to maturity		5,626		4,624		16,569		14,008
Federal funds sold		61		73		283		129
Deposits with other banks		16		6		38		13
Total interest income		29,234		24,812		83,244		71,899
INTEREST EXPENSE
Deposits		4,953		3,015		12,491		7,862
Securities sold under agreements to repurchase		1,066		326		2,489		1,007
Federal funds purchased		210		9		388		72
Commercial paper		237		107		620		248
Other short-term borrowings		58		34		124		240
Long-term debt		1,357		1,559		4,212		4,679
Total interest expense		7,881		5,050		20,324		14,108
Net interest income		21,353		19,762		62,920		57,791
Provision for loan losses		2,508		2,338		7,162		7,235
Net interest income after provision for loan losses		18,845		17,424		55,758		50,556
NONINTEREST INCOME
Factoring income		1,561		1,916		4,615		5,110
Mortgage banking income		4,601		3,846		13,035		11,392
Service charges on deposit accounts		1,487		1,259		3,942		3,481
Trade finance income		597		688		1,559		1,699
Trust fees		149		160		473		508
Other service charges and fees		323		395		1,006		1,350
Bank owned life insurance income		461		498		1,148		975
Securities gains		0		286		197		971
Other income		174		127		688		460
Total noninterest income		9,353		9,175		26,663		25,946
NONINTEREST EXPENSES
Salaries		8,465		7,788		24,820		22,850
Employee benefits		2,483		2,464		6,578		6,720
Total personnel expense		10,948		10,252		31,398		29,570
Occupancy expenses, net		1,463		1,315		4,126		3,779
Equipment expenses		867		756		2,462		2,170
Advertising and marketing		937		975		3,067		2,993
Professional fees		737		952		3,703		2,940
Data processing fees		311		272		894		860
Stationery and printing		224		142		656		603
Communications		393		364		1,261		1,162
Other expenses		2,185		1,465		5,665		4,557
Total noninterest expenses		18,065		16,493		53,232		48,634
Income before income taxes		10,133		10,106		29,189		27,868
Provision for income taxes		3,859		3,556		11,092		9,546
Net income	$	6,274	$	6,550	$	18,097	$	18,322
Average number of common shares outstanding
Basic		18,324,683		18,207,370		18,304,920		18,248,585
Diluted		18,917,332		19,025,500		18,877,569		19,113,791
Earnings per average common share
Basic	$	0.34	$	0.36	$	0.99	$	1.00
Diluted		0.33		0.35		0.96		0.96
Dividends per common share		0.19		0.16		0.57		0.48

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2005			2004			2005			2004
Net income	$	6,274		$	6,550		$	18,097		$	18,322
Other comprehensive income, net of tax:
Unrealized holding (losses)/gains arising during the period		(1,255	)		2,347			(1,608	)		(1,207	)
Less:
Reclassification adjustment for gains included in net income		0			(155	)		(107	)		(525	)
Change in unrealized (losses)/gains on supplemental pension		43			(30	)		(511	)		215
Comprehensive income	$	5,062		$	8,712		$	15,871		$	16,805

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2005			2004			2005			2004
Balance, at beginning of period	$	154,806		$	139,111		$	148,704		$	143,262
Net income for period		6,274			6,550			18,097			18,322
Common shares issued under stock incentive plan and related tax benefits		935			(42	)		4,046			1,853
Purchase of common shares for treasury		(2,776	)		0			(3,323	)		(8,310	)
Cash dividends-Common shares		(3,481	)		(2,867	)		(10,444	)		(8,658	)
Surrender of shares issued under incentive compensation plan		(1,161	)		0			(1,606	)		(409	)
Amortization of unearned compensation		66			151			203			522
Change in net unrealized holding (losses)/gains on available for sale securities		(1,255	)		2,347			(1,608	)		(1,207	)
Reclassification adjustment for gains included in net income		0			(155	)		(107	)		(525	)
Change in unrealized (losses)/gains on supplemental pension		43			(30	)		(511	)		215
Balance, at end of period	$	153,451		$	145,065		$	153,451		$	145,065

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

	Three Months Ended
	September 30, 2005								September 30, 2004
	AVERAGE					AVERAGE			AVERAGE					AVERAGE
	BALANCE			INTEREST		RATE			BALANCE			INTEREST		RATE
Assets
Interest-bearing deposits with other banks	$	3,455		$	16		1.45	%	$	3,799		$	6		0.62	%
Investment securities — available for sale		190,371			2,055		4.32			266,551			2,885		4.33
Investment securities — held to maturity		504,688			5,626		4.46			386,851			4,624		4.78
Investment securities — tax exempt [2]		24,701			416		6.68			29,267			528		7.18
Total investment securities		719,760			8,097		4.50			682,669			8,037		4.71
Federal funds sold		6,935			61		3.43			19,620			73		1.45
Loans, net of unearned discount [3]		1,087,282			21,222		8.02			951,941			16,898		7.31
Total Interest-Earning Assets [2]		1,817,432			29,396		6.54	%		1,658,029			25,014		6.11	%
Cash and due from banks		60,457								53,476
Allowance for loan losses		(17,100	)							(16,158	)
Goodwill		21,158								21,158
Other		82,170								70,050
Total Assets	$	1,964,117							$	1,786,555
Liabilities and Shareholders’ Equity
Interest-bearing deposits
Domestic
Savings	$	28,148			31		0.44	%	$	29,991			28		0.37	%
NOW		143,101			278		0.77			133,357			162		0.48
Money market		247,613			873		1.40			217,612			348		0.64
Time		531,234			3,763		2.81			469,319			2,469		2.09
Foreign
Time		3,016			8		1.42			3,000			8		1.10
Total Interest-Bearing Deposits		953,112			4,953		2.06			853,279			3,015		1.41
Borrowings
Securities sold under agreements to repurchase — customers		87,049			548		2.50			90,654			272		1.19
Securities sold under agreements to repurchase — dealers		57,755			518		3.56			14,910			54		1.43
Federal funds purchased		23,438			210		3.55			2,500			9		1.44
Commercial paper		34,341			237		2.74			34,394			107		1.23
Other short-term debt		6,109			58		3.75			6,293			34		2.15
Long-term debt		105,774			1,357		5.13			135,774			1,559		4.59
Total Borrowings		314,466			2,928		3.71			284,525			2,035		2.86
Total Interest-Bearing Liabilities		1,267,578			7,881		2.47	%		1,137,804			5,050		1.77	%
Noninterest-bearing demand deposits		461,418								424,974
Other liabilities		82,278								83,603
Total Liabilities		1,811,274								1,646,381
Shareholders’ equity		152,843								140,174
Total Liabilities and Shareholders’ Equity	$	1,964,117							$	1,786,555
Net interest income/spread [2]					21,515		4.07	%					19,964		4.34	%
Net yield on interest-earning assets							4.76	%							4.84	%
Less: Tax-equivalent adjustment					162								202
Net interest income				$	21,353							$	19,762

[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.

Page 11

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

	Nine Months Ended
	September 30, 2005								September 30, 2004
	AVERAGE					AVERAGE			AVERAGE					AVERAGE
	BALANCE			INTEREST		RATE			BALANCE			INTEREST		RATE
Assets
Interest-bearing deposits with other banks	$	3,000		$	38		1.71	%	$	3,151		$	13		0.55	%
Investment securities — available for sale		197,229			6,454		4.36			282,504			9,364		4.37
Investment securities — held to maturity		492,838			16,569		4.48			385,548			14,008		4.84
Investment securities — tax exempt [2]		25,415			1,350		7.10			30,217			1,619		7.16
Total investment securities		715,482			24,373		4.54			698,269			24,991		4.75
Federal funds sold		13,810			283		2.71			14,361			129		1.18
Loans, net of unearned discount [3]		1,033,435			59,076		8.04			905,402			47,392		7.38
Total Interest-Earning Assets [2]		1,765,727			83,770		6.52	%		1,621,183			72,525		6.13	%
Cash and due from banks		61,895								59,477
Allowance for loan losses		(17,332	)							(15,694	)
Goodwill		21,158								21,158
Other		80,433								70,370
Total Assets	$	1,911,881							$	1,756,494
Liabilities and Shareholders’ Equity
Interest-bearing deposits
Domestic
Savings	$	28,583			85		0.40	%	$	31,851			93		0.39	%
NOW		146,845			740		0.67			134,237			463		0.46
Money market		229,700			1,752		1.02			210,257			909		0.58
Time		516,273			9,889		2.56			435,991			6,373		1.95
Foreign
Time		3,010			25		1.09			3,000			24		1.09
Total Interest-Bearing Deposits		924,411			12,491		1.81			815,336			7,862		1.29
Borrowings
Securities sold under agreements to repurchase — customers		86,540			1,302		2.01			81,625			702		1.15
Securities sold under agreements to repurchase — dealers		50,237			1,187		3.16			34,018			305		1.20
Federal funds purchased		15,739			388		3.25			8,580			72		1.11
Commercial paper		35,714			620		2.32			28,733			248		1.15
Other short-term debt		4,901			124		3.38			16,603			240		1.93
Long-term debt		112,074			4,212		5.01			135,774			4,679		4.59
Total Borrowings		305,205			7,833		3.42			305,333			6,246		2.73
Total Interest-Bearing Liabilities		1,229,616			20,324		2.21	%		1,120,669			14,108		1.68	%
Noninterest-bearing demand deposits		448,038								411,916
Other liabilities		83,924								81,928
Total Liabilities		1,761,578								1,614,513
Shareholders’ equity		150,303								141,981
Total Liabilities and Shareholders’ Equity	$	1,911,881							$	1,756,494
Net interest income/spread [2]					63,446		4.31	%					58,417		4.45	%
Net yield on interest-earning assets							4.92	%							4.92	%
Less: Tax-equivalent adjustment					526								626
Net interest income				$	62,920							$	57,791

[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.

Page 12

STERLING BANCORP AND SUBSIDIARIES
Rate/Volume Analysis [1]
(Unaudited)
(in thousands)

	Increase/(Decrease)
	Three Months Ended
	September 30, 2005
	Volume			Rate			Net [2]
INTEREST INCOME
Interest-bearing deposits with other banks	$	(1	)	$	11		$	10
Investment securities — available for sale		(823	)		(7	)		(830	)
Investment securities — held to maturity		1,333			(331	)		1,002
Investment securities — tax exempt		(77	)		(35	)		(112	)
Total investment securities		433			(373	)		60
Federal funds sold		(66	)		54			(12	)
Loans, net of unearned discounts [3]		2,569			1,755			4,324
TOTAL INTEREST INCOME	$	2,935		$	1,447		$	4,382
INTEREST EXPENSE
Interest-bearing deposits
Domestic
Savings	$	(2	)	$	5		$	3
NOW		13			103			116
Money market		54			471			525
Time		358			936			1,294
Foreign
Time		0			0			0
Total interest-bearing deposits		423			1,515			1,938
Borrowings
Securities sold under agreements to repurchase — customers		(11	)		287			276
Securities sold under agreements to repurchase — dealers		305			159			464
Federal funds purchased		172			29			201
Commercial paper		0			130			130
Other short-term debt		(1	)		25			24
Long-term debt		(373	)		171			(202	)
Total borrowings		92			801			893
TOTAL INTEREST EXPENSE	$	515		$	2,316		$	2,831
NET INTEREST INCOME	$	2,420		$	(869	)	$	1,551

[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 13

STERLING BANCORP AND SUBSIDIARIES
Rate/Volume Analysis [1]
(Unaudited)
(in thousands)

	Increase/(Decrease)
	Nine Months Ended
	September 30, 2005
	Volume			Rate			Net [2]
INTEREST INCOME
Interest-bearing deposits with other banks	$	(1	)	$	26		$	25
Investment securities — available for sale		(2,888	)		(22	)		(2,910	)
Investment securities — held to maturity		3,648			(1,087	)		2,561
Investment securities — tax exempt		(255	)		(14	)		(269	)
Total investment securities		505			(1,123	)		(618	)
Federal funds sold		(5	)		159			154
Loans, net of unearned discounts [3]		7,092			4,592			11,684
TOTAL INTEREST INCOME	$	7,591		$	3,654		$	11,245
INTEREST EXPENSE
Interest-bearing deposits
Domestic
Savings	$	(10	)	$	2		$	(8	)
NOW		45			232			277
Money market		89			754			843
Time		1,290			2,226			3,516
Foreign
Time		1			0			1
Total interest-bearing deposits		1,415			3,214			4,629
Borrowings Securities sold under agreements to repurchase — customers		42			558			600
Securities sold under agreements to repurchase — dealers		199			683			882
Federal funds purchased		95			221			316
Commercial paper		71			301			372
Other short-term debt		(231	)		115			(116	)
Long-term debt		(873	)		406			(467	)
Total borrowings		(697	)		2,284			1,587
TOTAL INTEREST EXPENSE	$	718		$	5,498		$	6,216
NET INTEREST INCOME	$	6,873		$	(1,844	)	$	5,029

[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 14