Sterling Bancorp 8-K Sterling Bancorp Reports First Quarter 2006 Earnings Per Share of $0.33

Exhibit 99.1

650 FIFTH AVENUE
NEW YORK, NY 100196108

John Tietjen	Rich Tauberman
Chief Financial Officer	Investor Relations/Media Relations
Sterling Bancorp	MWW Group
john.tietjen@sterlingbancorp.com	rtauberman@mww.com
212.757.8035	201.964.2408

FOR IMMEDIATE RELEASE

Sterling Bancorp Reports First Quarter 2006 Earnings Per Share of $0.33

Loan and Deposit Growth Remained Strong

New York, NY, May 4, 2006 – 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 March 31, 2006.

First Quarter 2006 Highlights:

§	Net income increased by 11.7% year-over-year to $6.4 million
§	Diluted earnings per share increased to $0.33 from $0.29 in the first quarter of 2005
§	Period end loans increased 12.2% from March 31, 2005
§	Interest income rose 14.6% year-over-year to $30.0 million
§	Return on average tangible equity increased to 21.27%

“In the first quarter of 2006, Sterling delivered solid year-over-year growth in our loan portfolios, deposits and interest income and continued to build a stronger balance sheet,” said Louis J. Cappelli, Chairman and Chief Executive Officer. “The current interest rate environment, rapidly rising cost of funding and flattened yield curve are impacting Sterling and the entire banking sector. It is essential to be proactive in responding to the changing marketplace and circumstances, and we believe the actions we are taking will position us for future growth.”

“Early in the second quarter we completed the acquisition of PL Services, a leading provider of credit and accounts receivable management services to the staffing industry, which expands our commercial lending portfolio and enhances cross-selling opportunities. We have also applied to add a Sterling branch at their headquarters in Woodbury, Long Island,” added Mr. Cappelli. “Further expanding our franchise in the New York region, we recently announced the planned opening of our newest branch in Jamaica Queens, directly across the street from the Queens County Court House, which will bring our unique combination of high-touch, high-tech banking to this vibrant community of businesses and legal professional groups.”

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First Quarter 2006 Financial Results

Net Income

Net income for the first quarter of 2006 was $6.4 million, an 11.7% increase from $5.8 million in the first quarter of 2005. Net income was favorably impacted by a $5.3 million lower provision for income taxes which is discussed further below. Diluted earnings per share grew to $0.33 from $0.29 in the first quarter of last year (adjusted to reflect a 5% stock dividend effected in December 2005).

Net income also benefited from continued growth in interest income. Increases in interest and noninterest expenses along with a decrease in noninterest income had a negative impact on net income.

Net Interest Income

In the first quarter of 2006, net interest income, on a tax-equivalent basis, was $20.5 million compared to $20.7 million in the first quarter of 2005. Net interest income was impacted by the flattening yield curve and growth in interest-bearing deposits which more than offset increases in average loans and the higher interest rate environment. As rates continue to rise in an intensely competitive marketplace, depositors are migrating from demand to interest-bearing deposits, which is increasing the cost of deposits. The flattening of the yield curve and the rise in short term rates have caused the costs for deposits and borrowing to increase faster than the yield on earning assets. Net interest margin for the first quarter of 2006, on a tax-equivalent basis, was 4.58%, compared to 4.91% for the first quarter of 2005.

Loans

Period end loans increased 12.2% from March 31, 2005, with significant segments of Sterling’s loan portfolio showing an increase.

Demand Deposits

Period end demand deposits grew to $483 million from $469 million at March 31, 2005. As of March 31, 2006, demand deposits were 34.2% of total deposits, continuing Sterling’s tradition of maintaining one of the highest ratios of demand to total deposits in the industry.

Cost of Funds

In the first quarter of 2006, the total interest expense was $9.8 million compared to $5.7 million in the first quarter of 2005. The increase was driven by higher average interest-bearing deposits which increased to $975.8 million for the first quarter of 2006, compared to $894.2 million in the first quarter of 2005, along with the higher interest rate environment in 2006.

The average rate paid on interest-bearing funds was 3.07% for the first quarter of 2006, compared to 1.95% for the first quarter of 2005, reflecting the higher interest rate environment of 2006.

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Noninterest Income and Noninterest Expenses

For the first quarter of 2006, noninterest income was $5.9 million compared to $8.0 million for the first quarter of 2005. Excluding the impact of security loss/gain for the relevant periods, non-interest income for the first quarter of 2006 was $6.3 million compared to $7.8 million for the first quarter of 2005. The Company achieved an increase of 5.4% in closed residential mortgage loan volume in the first quarter of 2006. This benefit to mortgage banking income was more than offset by the continued yield compression in the secondary mortgage market for loans. These results reflect conditions that are impacting the entire industry. Sterling’s seasoned mortgage banking team has worked through multiple industry cycles and responded to the current marketplace conditions by changing the mix and pricing of its products along with instituting a number of operational efficiencies and expense reductions. The Company has seen improvement in secondary market pricing for recent sales.

The Company experienced increases in customer-related service charges and fees during the first quarter of 2006. Additionally, to partially fund the acquisition of PL Services, the Company sold lower yielding securities at a loss during the first quarter. The acquisition of PL Services will result in the addition of higher yielding loans to the Company’s balance sheet.

Noninterest expenses for the quarter ended March 31, 2006 were $19.4 million, compared to $17.0 million in the corresponding period of 2005. The increase was primarily due to higher expenses for employee benefits related to the timing of the recognition of payroll taxes and life insurance costs along with higher professional fees related to compliance efforts.

Provision for Income Taxes

The provision for income taxes for the quarter ended March 31, 2006 was a credit of $2.2 million as compared to an expense of $3.1 million for the first quarter of 2005. During the 2006 quarter, the Company resolved certain past tax issues and based on management’s review of required reserves with outside professionals reduced state and local tax reserves by $3.7 million. The remaining portion of the decrease in the provision was due to a lower level of pre-tax income.

Asset Quality

As of March 31, 2005, nonperforming assets were $5.6 million, representing 0.29% of total assets.

The provision for loan losses for the first quarter of 2006 was $2.6 million, virtually unchanged from $2.6 million for the first quarter of 2005. The allowance for loan losses as a percentage of loans held in portfolio was 1.51% as of March 31, 2006.

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Dividend

On March 31, 2006, Sterling paid a cash dividend of $0.19 per common share to shareholders of record as of March 15, 2006. The Company has distributed cash dividends for 241 consecutive quarters.

Conference Call

Sterling Bancorp will host a teleconference call for the financial community on Thursday, May 4, 2006 at 10:00 AM Eastern Time to discuss the first quarter 2006 financial results. The public is invited to listen to this conference call by dialing 866-802-4324 at least 10 minutes prior to the call and entering passcode 897358.

A replay of the conference call will be available beginning at 1:00 PM Eastern Time on Thursday, May 4, 2006 until 11:59 PM Eastern Time on Thursday, May 11, 2006. The public is invited to listen to this conference call by dialing 888-266-2081 and entering passcode 897358.

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, New Jersey, Virginia and North Carolina and conducts business throughout the U.S.

This press release contains statements, including but not limited to, statements concerning future growth, enhanced cross-selling opportunities, future revenues, results of operations or financial position, 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 “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Forward-Looking Statements and Factors that Could Affect Future Results” in the Company’s Annual Report onForm 10-K for the fiscal year ended December 31, 2005.

- tables to follow-

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

	Three Months Ended March 31,
	2006			2005
OPERATING HIGHLIGHTS
Interest income	$	30,041		$	26,204
Interest expense		9,776			5,702
Provision for loan losses		2,565			2,648
Noninterest income		5,883			7,996
Noninterest expenses		19,368			16,976
Net income		6,440			5,767
Earnings per common share:
Basic		0.34			0.30
Diluted		0.33			0.29
Cash dividends declared		0.19			0.18
Common shares outstanding:
Period end		18,765			18,292
Average Basic		18,783			19,164
Average Diluted		19,346			19,820
Return on average assets		1.33	%		1.26	%
Return on average tangible equity (1)		21.27	%		18.51	%
Return on average stated equity (2)		18.14	%		15.85	%
Net interest spread, tax-equivalent basis		3.78	%		4.37	%
Net interest margin, tax-equivalent basis		4.58	%		4.91	%
ASSET QUALITY HIGHLIGHTS
Period End
Net charge-offs	$	2,677		$	2,195
Nonperforming loans		4,348			3,357
Other real estate owned		1,298			534
Nonperforming assets		5,646			3,891
Nonperforming loans/loans (3)		0.39	%		0.33	%
Nonperforming assets/assets		0.29	%		0.20	%
Allowance for loan losses/loans (4)		1.51	%		1.72	%
Allowance for loan losses/ nonperforming loans		377.30	%		499.91	%

(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 March 31,
	2006			2005
BALANCE SHEET HIGHLIGHTS
Period End Balances
Security investments	$	668,130		$	706,556
Loans held for sale		36,921			26,615
Loans held in portfolio, net of unearned discount		1,088,347			976,608
Total earning assets		1,795,045			1,748,868
Allowance for loan losses		16,405			16,782
Total assets		1,945,971			1,901,252
Demand deposits		483,001			468,714
Savings, NOW and money market deposits		404,914			432,576
Time deposits		525,093			487,293
Customer repurchase agreements		63,179			82,981
Shareholders’ equity		148,327			149,508
Average Balances
Security investments	$	708,699		$	692,634
Loans held for sale		50,713			37,990
Loans held in portfolio, net of unearned discount		1,038,792			955,056
Total earning assets		1,804,860			1,706,616
Allowance for loan losses		17,236			17,246
Total assets		1,965,305			1,854,681
Demand deposits		441,765			436,509
Savings, NOW and money market deposits		450,005			397,755
Time deposits		525,779			496,473
Customer repurchase agreements		80,065			85,763
Shareholders’ equity		143,966			147,545
Capital Ratios
Tier 1 risk based		12.53	%		13.56	%
Total risk based		13.78	%		14.81	%
Leverage		8.15	%		8.60	%
Book value per common share	$	7.90		$	8.17

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

	March 31,
	2006		2005
ASSETS
Cash and due from banks	$	53,312	$	66,569
Interest-bearing deposits with other banks		1,647		4,089
Federal Funds Sold		0		35,000
Investment securities
Available for sale (at estimated market value)		170,964		219,105
Held to maturity (at cost)		497,166		487,451
Total investment securities		668,130		706,556
Loans held for sale		36,921		26,615
Loans held in portfolio, net of unearned discounts		1,088,347		976,608
Less allowance for loan losses		16,405		16,782
Loans, net		1,071,942		959,826
Customers’ liability under acceptances		160		807
Goodwill		21,158		21,158
Premises and equipment, net		10,696		10,727
Other real estate		1,298		534
Accrued interest receivable		5,641		5,987
Bank owned life insurance		27,185		26,803
Other assets		47,881		36,581
	$	1,945,971	$	1,901,252
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits
Demand	$	483,001	$	468,714
Savings, NOW and money market		404,914		432,576
Time		525,093		487,293
Total deposits		1,413,008		1,388,583
Securities sold under agreements to repurchase — customers		63,179		82,981
Securities sold under agreements to repurchase — dealers		68,592		43,697
Commercial paper		43,092		38,810
Short-term borrowings — FHLB		55,900		0
Short-term borrowings — other		104		387
Long-term borrowings — FHLB		50,000		90,000
Long-term borrowings — subordinated debentures		25,774		25,774
Acceptances outstanding		160		807
Accrued expenses and other liabilities		77,835		80,705
Total liabilities		1,797,644		1,751,744
Shareholders’ equity		148,327		149,508
	$	1,945,971	$	1,901,252
MEMORANDA
Available for sale securities — amortized cost	$	176,774	$	222,495
Held to maturity securities — estimated market value		482,434		481,616
Shares outstanding
Common issued		21,085,665		20,850,002
Common in treasury		2,320,242		1,652,567

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

	Three Months Ended March 31,
	2006			2005
INTEREST INCOME
Loans	$	22,025		$	18,376
Investment securities — available for sale		2,202			2,502
Investment securities — held to maturity		5,744			5,210
Federal funds sold		40			110
Deposits with other banks		30			6
Total interest income		30,041			26,204
INTEREST EXPENSE
Savings, NOW and money market deposits		1,783			629
Time deposits		4,461			2,822
Securities sold u/a/r — customers		695			337
Securities sold u/a/r — dealers		984			249
Federal funds purchased		135			21
Commercial paper		405			160
Short-term borrowings — FHLB		193			0
Short-term borrowings — other		11			5
Long-term borrowings — FHLB		586			956
Long-term subordinated debentures		523			523
Total interest expense		9,776			5,702
Net interest income		20,265			20,502
Provision for loan losses		2,565			2,648
Net interest income after provision for loan losses		17,700			17,854
NONINTEREST INCOME
Customer related service charges and fees		3,640			3,401
Mortgage banking income		2,216			3,876
Trust fees		152			172
Bank owned life insurance income		220			250
Securities (losses)/gains		(459	)		197
Other income		114			100
Total noninterest income		5,883			7,996
NONINTEREST EXPENSES
Salaries		8,306			8,157
Employee benefits		2,956			1,750
Total personnel expense		11,262			9,907
Occupancy and equipment expenses, net		2,316			2,079
Advertising and marketing		1,034			1,116
Professional fees		1,924			1,531
Communications		432			383
Other expenses		2,400			1,960
Total noninterest expenses		19,368			16,976
Income before income taxes		4,215			8,874
Provision for income taxes		(2,225	)		3,107
Net income	$	6,440		$	5,767
Average number of common shares outstanding
Basic		18,783,299			19,163,777
Diluted		19,345,614			19,820,240
Earnings per average common share
Basic	$	0.34		$	0.30
Diluted		0.33			0.29
Dividends per common share		0.19			0.18

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

	Three Months Ended March 31,
	2006			2005
Net income	$	6,440		$	5,767
Other comprehensive income, net of tax:
Unrealized holding (losses)/gains arising during the period		(1,234	)		(2,236	)
Less:
Reclassification adjustment for losses/ (gains) included in net income		252			(107	)
Comprehensive income	$	5,458		$	3,424

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

	Three Months Ended March 31,
	2006			2005
Balance, at beginning of period	$	147,588		$	148,704
Net income for period		6,440			5,767
Common shares issued under stock incentive plan and related tax benefits		554			1,017
Purchase of common shares for treasury		(1,526	)		0
Cash dividends-Common shares		(3,563	)		(3,459	)
Surrender of shares issued under incentive compensation plan		(206	)		(249	)
Amortization of unearned compensation		22			71
Change in net unrealized holding (losses)/gains on available for sale securities		(1,234	)		(2,236	)
Reclassification adjustment for losses/(gains) included in net income		252			(107	)
Balance, at end of period	$	148,327		$	149,508

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

	Three Months Ended
	March 31, 2006								March 31, 2005
	AVERAGE					AVERAGE			AVERAGE					AVERAGE
	BALANCE			INTEREST		RATE			BALANCE			INTEREST		RATE
Assets
Interest-bearing deposits with other banks	$	3,045		$	30		2.47	%	$	2,380		$	6		1.05	%
Investment securities — available for sale		170,540			1,886		4.44			204,234			2,214		4.34
Investment securities — held to maturity		506,443			5,744		4.54			461,968			5,210		4.51
Investment securities — tax exempt [2]		31,716			520		6.64			26,432			470		7.21
Total investment securities		708,699			8,150		4.61			692,634			7,894		4.56
Federal funds sold		3,611			40		4.43			18,556			110		2.37
Loans, net of unearned discount [3]		1,089,505			22,025		8.42			993,046			18,376		7.72
Total Interest-Earning Assets [2]		1,804,860			30,245		6.85	%		1,706,616			26,386		6.32	%
Cash and due from banks		65,277								64,038
Allowance for loan losses		(17,236	)							(17,246	)
Goodwill		21,158								21,158
Other		91,246								80,115
Total Assets	$	1,965,305							$	1,854,681
Liabilities and Shareholders’ Equity
Interest-bearing deposits
Domestic
Savings	$	25,697			26		0.41	%	$	29,034			25		0.35	%
NOW		182,512			735		1.63			142,205			194		0.55
Money market		241,796			1,022		1.71			226,516			410		0.73
Time		522,755			4,453		3.45			493,471			2,814		2.31
Foreign
Time		3,024			8		1.09			3,002			8		1.09
Total Interest-Bearing Deposits		975,784			6,244		2.60			894,228			3,451		1.57
Borrowings
Securities sold u/a/r - customers		80,065			695		3.52			85,763			337		1.59
Securities sold u/a/r - dealers		86,818			984		4.60			38,461			249		2.62
Federal funds purchased		12,281			135		4.46			3,336			21		2.53
Commercial paper		42,141			405		3.89			35,603			160		1.82
Short-term borrowings - FHLB		16,946			193		4.62			0			0		0.00
Short-term borrowings - other		913			11		4.63			775			5		2.62
Long-term borrowings - FHLB		51,889			586		4.52			96,778			956		3.95
Long-term borrowings - sub debt		25,774			523		8.38			25,774			523		8.38
Total Borrowings		316,827			3,532		4.51			286,490			2,251		3.16
Total Interest-Bearing Liabilities		1,292,611			9,776		3.07	%		1,180,718			5,702		1.95	%
Noninterest-bearing demand deposits		441,765								436,509
Other liabilities		86,963								89,909
Total Liabilities		1,821,339								1,707,136
Shareholders’ equity		143,966								147,545
Total Liabilities and Shareholders’ Equity	$	1,965,305							$	1,854,681
Net interest income/spread [2]					20,469		3.78	%					20,684		4.37	%
Net yield on interest-earning assets							4.58	%							4.91	%
Less: Tax-equivalent adjustment					204								182
Net interest income				$	20,265							$	20,502

[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
	March 31, 2006
	Volume			Rate			Net [2]
INTEREST INCOME
Interest-bearing deposits with other banks	$	5		$	19		$	24
Investment securities — available for sale		(376	)		48			(328	)
Investment securities — held to maturity		500			34			534
Investment securities — tax exempt		89			(39	)		50
Total investment securities		213			43			256
Federal funds sold		(124	)		54			(70	)
Loans, net of unearned discounts [3]		1,887			1,762			3,649
TOTAL INTEREST INCOME	$	1,981		$	1,878		$	3,859
INTEREST EXPENSE
Interest-bearing deposits
Domestic
Savings	$	(3	)	$	4		$	1
NOW		69			472			541
Money market		30			582			612
Time		176			1,463			1,639
Foreign
Time		0			0			0
Total interest-bearing deposits		272			2,521			2,793
Borrowings
Securities sold under agreements to repurchase — customers		(23	)		381			358
Securities sold under agreements to repurchase — dealers		459			276			735
Federal funds purchased		89			25			114
Commercial paper		34			211			245
Short-term borrowings — FHLB		193			0			193
Short-term borrowings — other		1			5			6
Long-term borrowings — FHLB		(490	)		120			(370	)
Long-term borrowings — subordinated debentures		0			0			0
Total borrowings		263			1,018			1,281
TOTAL INTEREST EXPENSE	$	535		$	3,539		$	4,074
NET INTEREST INCOME	$	1,446		$	(1,661	)	$	(215	)

[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.

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