Sterling Bancorp 8-K Sterling Bancorp Reports FY 2006 Financial Results

Exhibit 99.1

[STERLING BANCORP LETTERHEAD]

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

Sterling Bancorp Reports FY 2006 Financial Results

Gross Revenue, Loans and Deposits Achieve Yearly Records

New York, NY, February 9, 2007 — Sterling Bancorp (NYSE: STL), a financial holding company and the parent company of Sterling National Bank, today reported its financial results for the fiscal year and fourth quarter ended December 31, 2006.

2006 Highlights:

• Gross revenue from continuing operations (interest income plus noninterest income) rose 10.6% year over year to a record $150.2 million.

• Loans held in portfolio as of December 31, 2006 were a record $1,112.6 million; up 12.7% from average loans held in portfolio in 2005.

• Total deposits as of December 31, 2006 were a record $1,522.0 million; up 5.1% from the prior year.

• Demand deposits as of December 31, 2006 were a record $546.4 million, representing 35.9% of total deposits.

• Net interest margin was 4.64% for the year 2006.

• Opened branches in Jamaica, Queens and Woodbury, Long Island

• Successfully completed the Sterling Resource Funding Corp. acquisition, expanding our position in the growing staffing industry

• Divested Sterling Financial Services, increasing liquidity and enabling the redeployment of resources in higher growth businesses

“In 2006, the persistently flat or inverted yield curve and higher funding costs created a challenging operating environment across the banking industry. Against this difficult backdrop, Sterling built on its core businesses and reported record levels of gross revenue, loans and deposits for the year, while maintaining one of the highest net interest rate margins in the sector. We used monthly cash flows from the investment portfolio to fund loan growth and to reduce wholesale borrowings and interest rate risk on our balance sheet,” said Louis J. Cappelli, Chairman and Chief Executive Officer.

“The Sterling Resource Funding Corp. acquisition in 2006 expanded our growing commercial lending activities, enhanced our product offerings and extended our geographic scope, while increasing our penetration of the vibrant and growing staffing

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industry,” continued Chairman Cappelli. “Another key initiative this year was the strategic divestiture of the business of Sterling Financial Services. The proceeds, in excess of $100 million, enabled us to pay down borrowings, redeploy resources into higher growth businesses and reduce operating expenses. While maintaining our high level of customer service, our disciplined focus on noninterest expenses produced only a 2.5% increase for the year, after eliminating the impact of the Sterling Resource Funding acquisition and the divestiture of Sterling Financial Services.”

“Sterling’s business model focuses on fulfilling the needs of small and mid-sized businesses and individuals by delivering customized financial products and outstanding services,” concluded Chairman Cappelli. “In 2006, we took steps to position the company for continued success and to reinforce our commitment to enhancing shareholder value. This commitment is reflected in our focus on dividends, which currently provide a yield of approximately 4%. Sterling’s 61-year record of dividend payments, over 244 consecutive quarters, is one of the longest among publicly listed companies.”

FY 2006 and Fourth Quarter Financial Results from Continuing Operations

Net Income
Net income, after income taxes, for the fiscal year ended December 31, 2006, was $21.0 million, compared to $23.5 million for the fiscal year ended December 31, 2005. Diluted income per share, after income taxes, for the fiscal year ended December 31, 2006, was $1.09, compared to $1.19 for the fiscal year ended December 31, 2005.

Net income, after income taxes, for the fourth quarter of 2006 was $4.1 million, compared to $6.3 million for the fourth quarter of 2005. Diluted income per share, after income taxes, for the quarter ended December 31, 2006, was $0.21, compared to $0.33 for the fourth quarter of 2005.

Net Interest Income
For the fiscal year ended December 31, 2006, net interest income, on a tax-equivalent basis, was $75.3 million, compared to $76.1 million for 2005. For the fiscal year ended December 31, 2006, net interest margin, on a tax-equivalent basis, was 4.64%, compared to 4.76% for 2005.

Total interest income for the fiscal year ended December 31, 2006 was $116.6 million, up 14.4% from 2005. The increase was a result of an improved yield on loans and higher average loan balances, partially offset by a reduction in average balances in the investment portfolio. Total interest expense for the fiscal year ended December 31, 2006, was $42.0 million, compared to $26.5 million for 2005. The increase was driven principally by the higher interest-rate environment in 2006.

In the fourth quarter of 2006, net interest income, on a tax-equivalent basis, was $18.7 million, compared to $19.6 million in the fourth quarter of 2005. Net interest margin for the fourth quarter of 2006, on a tax-equivalent basis, was 4.41%, compared to 4.61% for the fourth quarter of 2005.

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Total interest income for the fourth quarter of 2006 was $30.2 million, up 11.0% from the fourth quarter of 2005. The increase was a result of an improved yield on loans and higher average loan balances, partially offset by a reduction in average balances in the investment portfolio. Total interest expense for the fourth quarter of 2006 was $11.7 million, compared to $7.8 million in the fourth quarter of 2005.

Sterling’s cost of total deposits continued to be among the best in the industry, at 2.44% for the fourth quarter of 2006

Loans
Period-end loans held in portfolio, net of unearned discount, grew to a record $1,112.6 million, from $1,012.1 million at December 31, 2005.

Demand Deposits
As of December 31, 2006, demand deposits were a record $546.4 million — 35.9% of total deposits — continuing Sterling’s history of maintaining one of the highest ratios of demand to total deposits in the industry.

Noninterest Income and Noninterest Expenses
Noninterest income for the fiscal year ended December 31, 2006 was $33.7 million, compared to $34.0 million for the prior year. Increased revenue from customer-related service charges and fees, primarily due to revenues attributable to the Sterling Resource Funding Corp acquisition, were more than offset by lower revenues from mortgage-banking activities and bank-owned life insurance, coupled with higher losses from sales of available for sale securities. The decrease in mortgage-banking income was principally due to continued industry-wide yield compression, changes in the product mix of loans sold and a reduction in volume, primarily attributable to a re-engineering of the mortgage business toward more profitable Alt-A products and away from the less profitable wholesale business.

For the fourth quarter of 2006, noninterest income was $9.6 million, a 23.7% increase from $7.8 million for the fourth quarter of 2005. Higher customer-related service charges and fees were primarily due to revenues attributable to the Sterling Resource Funding Corp. acquisition. Partially offsetting that increase was a decrease in mortgage-banking income principally due to the same factors discussed above.

For the fiscal year ended December 31, 2006, noninterest expenses were $77.4 million, compared to $67.7 million for fiscal year 2005. The increase was primarily due to investments in the Sterling franchise, including the new branches and the Sterling Resource Funding Corp. acquisition, with higher expenses related to salaries, equipment and occupancy costs.

Noninterest expenses for the quarter ended December 31, 2006, were $20.6 million, compared to $17.0 million for the corresponding period of 2005.

Provision for Income Taxes
The provision for income taxes for the fiscal year 2006 was $5.4 million, a decrease of $7.7 million from the prior year. The decrease was primarily due to a $3.7 million

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recapture (during the first quarter of 2006) of reserves for state and local taxes, net of federal tax effect, resulting from the resolution of certain state tax issues in the first quarter of 2006; a $0.6 million recapture (during the third quarter of 2006) of reserves for state and local taxes, net of federal tax effect, resulting from the closure of certain years for local tax purposes in the third quarter of 2006; and the lower level of pre-tax income for 2006.

The provision for income taxes was $2.2 million for the fourth quarter of 2006, compared to $2.8 million for the corresponding period of 2005. The decrease was primarily due to the lower level of pre-tax income in the 2006 period.

Asset Quality
The allowance for loan losses as of December 31, 2006, was $16.3 million, or 1.46% of loans held in portfolio, compared to $15.4 million, or 1.52% of loans held in portfolio, as of December 31, 2005. As of December 31, 2006, nonperforming assets were $8.1 million, representing 0.43% of total assets.

Dividend
On December 31, 2006, Sterling paid a cash dividend of $0.19 per common share to shareholders of record as of December 15, 2006. The Company has distributed cash dividends for over 60 years, or 244 consecutive quarters. At current prices, the Company’s dividend yield is approximately 4.0%.

Conference Call
Sterling Bancorp will host a teleconference call for the financial community on February 9, 2007 at 10:00 a.m. Eastern Time to discuss the fiscal year and fourth quarter 2006 financial results. The public is invited to listen to this conference call by dialing 866-814-1917 at least 10 minutes prior to the call and entering pass code 1039713.

A replay of the conference call will be available at 1:00 p.m. Eastern Time on February 9, 2007 until 11:59 p.m. Eastern Time on Friday, February 23, 2007. The public is invited to listen to this conference call by dialing 888-266-2081 and entering pass code 1039713.

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 and accounts receivable management, 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.

Certain statements in this press release, including but not limited to, statements as to future liquidity, redeployment of resources into higher growth businesses, future interest rate risk and operating expenses and steps taken to position the Company for continued success, statements concerning future results of operations or financial position, and plans and objectives for future operations, and other statements

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regarding matters that are not historical facts, 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 on Form 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 December 31,						Twelve Months Ended December 31,
	2006			2005			2006			2005
OPERATING HIGHLIGHTS (1)
Interest income	$	30,249		$	27,249		$	116,586		$	101,888
Interest expense		11,701			7,828			42,021			26,463
Provision for loan losses		1,250			1,002			4,503			5,214
Noninterest income		9,617			7,777			33,658			34,016
Noninterest expenses		20,572			17,036			77,355			67,654
Income from continuing operations, after income taxes		4,109			6,316			20,998			23,463
(Loss)/income from discontinued operations, net of income taxes		(192	)		(386	)		(603	)		564
Loss from sale, net of taxes		(31	)		0			(9,635	)		0
Net income		3,886			5,930			10,760			24,027
Income from continuing operations, after income taxes, per average common share:
Basic		0.22			0.33			1.12			1.22
Diluted		0.21			0.33			1.09			1.19
Net income per average common share:
Basic		0.20			0.31			0.57			1.25
Diluted		0.20			0.31			0.56			1.22
Cash dividends declared		0.19			0.19			0.76			0.73
Common shares outstanding:
Period end		18,605			18,835			18,605			18,835
Average Basic		18,685			19,055			18,735			19,164
Average Diluted		19,193			19,622			19,265			19,763
Return on average assets (2)		0.86	%		1.33	%		1.13	%		1.29	%
Return on average tangible equity (3)		14.13	%		19.69	%		17.43	%		18.23	%
Return on average stated equity (4)		11.80	%		16.88	%		14.67	%		15.66	%
Net interest spread, tax-equivalent basis		3.39	%		3.87	%		3.69	%		4.09	%
Net interest margin, tax-equivalent basis		4.41	%		4.61	%		4.64	%		4.76	%
ASSET QUALITY HIGHLIGHTS (1)
Period End
Net charge-offs	$	1,487		$	1,135		$	4,774		$	4,187
Nonperforming loans		5,861			3,857			5,861			3,857
Other real estate owned		2,243			860			2,243			860
Nonperforming assets		8,104			4,717			8,104			4,717
Nonperforming loans/loans (5)		0.51	%		0.37	%		0.51	%		0.37	%
Nonperforming assets/assets		0.43	%		0.24	%		0.43	%		0.24	%
Allowance for loan losses/loans (6)		1.46	%		1.52	%		1.46	%		1.52	%
Allowance for loan losses/ nonperforming loans		277.90	%		398.47	%		277.90	%		398.47	%

(1)	Unless otherwise indicated, all amounts and ratios are presented based on continuing operations.
(2)	Calculated by dividing income from continuing operations by average assets from continuing operations.
(3)	Average tangible equity represents average shareholders’ equity less average goodwill. Calculated by dividing income from continuing operations by average tangible equity.
(4)	Average stated equity is equal to average shareholders’ equity. Calculated by dividing income from continuing operations by average stated equity.
(5)	The term “loans” includes loans held for sale and loans held in portfolio.
(6)	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 December 31,						Twelve Months Ended December 31,
	2006			2005			2006			2005
BALANCE SHEET HIGHLIGHTS
Period End Balances (1)
Investment securities	$	569,324		$	715,299		$	569,324		$	715,299
Loans held for sale		33,320			40,977			33,320			40,977
Loans held in portfolio, net of unearned discount		1,112,602			1,012,057			1,112,602			1,012,057
Total earning assets		1,736,507			1,769,545			1,736,507			1,769,545
Allowance for loan losses		16,288			15,369			16,288			15,369
Total assets from continuing operations		1,882,147			1,939,792			1,882,147			1,939,792
Total assets		1,885,005			2,056,042			1,885,005			2,056,042
Demand deposits		546,442			510,884			546,442			510,884
Savings, NOW and money market deposits		447,601			436,173			447,601			436,173
Time deposits		527,987			501,269			527,987			501,269
Customer repurchase agreements		52,803			61,067			52,803			61,067
Shareholders’ equity (2)		132,385			147,587			132,385			147,587
Average Balances (1)
Investment securities	$	592,262		$	708,133		$	647,602		$	713,629
Loans held for sale		38,340			56,340			40,992			53,948
Loans held in portfolio, net of unearned discount		1,078,947			949,712			1,002,688			890,085
Total earning assets		1,721,618			1,719,949			1,697,947			1,671,688
Total assets from continuing operations		1,892,543			1,877,715			1,859,330			1,820,404
Total assets		1,901,126			1,988,160			1,944,776			1,931,101
Demand deposits		448,147			466,293			439,064			452,632
Savings, NOW and money market deposits		447,387			450,698			434,167			416,614
Time deposits		536,175			522,331			517,166			520,051
Customer repurchase agreements		94,305			81,878			86,418			85,365
Shareholders’ equity (2)		138,201			148,448			143,178			149,836
Capital Ratios (2)
Tier 1 risk based		11.48	%		12.03	%		11.48	%		12.03	%
Total risk based		12.73	%		13.28	%		12.73	%		13.28	%
Leverage		7.82	%		7.96	%		7.82	%		7.96	%
Book value per common share (2)	$	7.12		$	7.84		$	7.12		$	7.84

(1)	Unless otherwise indicated, all amounts and ratios are presented based on continuing operations.
(2)	Includes the effects of discontinued operations.

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

	December 31,
	2006		2005
ASSETS
Cash and due from banks	$	48,863	$	68,562
Interest-bearing deposits with other banks		1,261		1,212
Federal Funds Sold		20,000		0
Investment securities
Available for sale (at estimated market value)		148,421		201,259
Held to maturity (at cost)		420,903		514,040
Total investment securities		569,324		715,299
Loans held for sale		33,320		40,977
Loans held in portfolio, net of unearned discounts		1,112,602		1,012,057
Less allowance for loan losses		16,288		15,369
Loans, net		1,096,314		996,688
Customers’ liability under acceptances		98		590
Goodwill		22,862		21,158
Premises and equipment, net		11,324		10,856
Other real estate		2,243		860
Accrued interest receivable		5,845		6,116
Bank owned life insurance		27,949		26,964
Other assets		42,744		50,510
Total assets from continuing operations		1,882,147		1,939,792
Assets — discontinued operations		2,858		116,250
	$	1,885,005	$	2,056,042
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits
Demand	$	546,442	$	510,884
Savings, NOW and money market		447,601		436,173
Time		527,987		501,269
Total deposits		1,522,030		1,448,326
Securities sold under agreements to repurchase — customers		52,803		61,067
Securities sold under agreements to repurchase — dealers		0		88,729
Federal funds purchased		0		55,000
Commercial paper		27,562		38,191
Short-term borrowings — FHLB		0		35,000
Short-term borrowings — other		3,412		3,851
Long-term borrowings — FHLB		20,000		60,000
Long-term borrowings — subordinated debentures		25,774		25,774
Acceptances outstanding		98		590
Accrued expenses and other liabilities		100,605		91,450
Liabilities — discontinued operations		336		477
Total liabilities		1,752,620		1,908,455
Shareholders’ equity		132,385		147,587
	$	1,885,005	$	2,056,042
MEMORANDA
Available for sale securities — amortized cost	$	152,195	$	205,418
Held to maturity securities — estimated market value		411,651		504,514
Shares outstanding
Common issued		21,177,084		21,066,916
Common in treasury		2,572,368		2,231,442

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

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2006			2005			2006			2005
INTEREST INCOME
Loans	$	23,313		$	19,317		$	86,882		$	69,788
Investment securities — available for sale		1,828			2,268			7,909			9,546
Investment securities — held to maturity		4,970			5,611			21,496			22,180
Federal funds sold		108			26			196			309
Deposits with other banks		30			27			103			65
Total interest income		30,249			27,249			116,586			101,888
INTEREST EXPENSE
Savings, NOW and money market deposits		2,722			1,567			8,584			4,145
Time deposits		6,081			4,077			20,427			13,990
Securities sold u/a/r — customers		1,065			605			3,501			1,907
Securities sold u/a/r — dealers		297			607			3,739			1,794
Federal funds purchased		78			260			769			647
Commercial paper		467			353			2,020			973
Short-term borrowings — FHLB		235			96			1,796			203
Short-term borrowings — other		7			8			30			25
Long-term borrowings — FHLB		225			689			1,569			3,331
Long-term subordinated debentures		524			524			2,094			2,094
Total interest expense		11,701			8,786			44,529			29,109
Interest expense allocated to discontinued operations		0			(958	)		(2,508	)		(2,646	)
Total interest expense-continuing operations		11,701			7,828			42,021			26,463
Net interest income		18,548			19,421			74,565			75,425
Provision for loan losses		1,250			1,002			4,503			5,214
Net interest income after provision for loan losses		17,298			18,419			70,062			70,211
NONINTEREST INCOME
Customer related service charges and fees		6,475			3,692			22,347			14,649
Mortgage banking income		2,581			3,398			9,696			16,433
Trust fees		154			170			591			643
Bank owned life insurance income		272			255			985			1,402
Securities gains/(losses)		2			140			(443	)		337
Other income		133			122			482			552
Total noninterest income		9,617			7,777			33,658			34,016
NONINTEREST EXPENSES
Salaries		9,193			6,615			34,766			29,647
Employee benefits		2,292			3,251			10,358			9,601
Total personnel expense		11,485			9,866			45,124			39,248
Occupancy and equipment expenses, net		2,567			2,103			9,899			8,633
Advertising and marketing		1,075			808			3,855			3,768
Professional fees		2,318			2,077			6,454			5,644
Communications		491			327			1,823			1,473
Other expenses		2,636			1,855			10,200			8,888
Total noninterest expenses		20,572			17,036			77,355			67,654
Income from continuing operations before income taxes		6,343			9,160			26,365			36,573
Provision for income taxes		2,234			2,844			5,367			13,110
Income from continuing operations		4,109			6,316			20,998			23,463
(Loss)/Income from discontinued operations, net of tax		(192	)		(386	)		(603	)		564
Loss on sale of discontinued operations, net of tax		(31	)		0			(9,635	)		0
Net income	$	3,886		$	5,930		$	10,760		$	24,027

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

(continued)

	Three Months Ended December 31,				Twelve Months Ended December 31,
	2006		2005		2006		2005
Average number of common shares outstanding
Basic		18,685,233		19,055,354		18,734,610		19,164,498
Diluted		19,192,559		19,621,935		19,265,093		19,763,352
Net income per average common share
Basic	$	0.20	$	0.31	$	0.57	$	1.25
Diluted		0.20		0.31		0.56		1.22
Income from continuing operations, per average common share
Basic		0.22		0.33		1.12		1.22
Diluted		0.21		0.33		1.09		1.19
Dividends per common share		0.19		0.19		0.76		0.73

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STERLING BANCORP
Consolidated Statements of Comprehensive Income
(Unaudited)

(in thousands)

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2006			2005			2006			2005
Net income	$	3,886		$	5,930		$	10,760		$	24,027
Other comprehensive (loss)/ income, net of tax:
Unrealized holding gains/(losses)arising during the period		284			(526	)		(56	)		(2,645	)
Less:
Reclassification adjustment for losses/ (gains) included in net income		(1	)		(75	)		243			(182	)
Minimum pension liability adjustment pursuant to FASB 87		(5,005	)		(482	)		(5,013	)		(482	)
Additional pension liability recorded upon adoption of FASB 158		(2,254	)		0			(2,254	)		0
Comprehensive income	$	(3,090	)	$	4,847		$	3,680		$	20,718

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

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2006			2005			2006			2005
Balance, at beginning of period	$	141,014		$	153,451		$	147,587		$	148,704
Net income for period		3,886			5,930			10,760			24,027
Common shares issued under stock incentive plan and related tax benefits		22			251			1,757			4,297
Purchase of common shares for treasury		(2,021	)		(7,184	)		(5,831	)		(10,507	)
Capital stock split-cash in lieu		0			(25	)		0			(25	)
Cash dividends-Common shares		(3,540	)		(3,591	)		(14,216	)		(14,035	)
Surrender of shares issued under incentive compensation plan		0			(228	)		(614	)		(1,834	)
Amortization of unearned compensation		0			66			22			269
Change in net unrealized holding gains/(losses) on available for sale securities		284			(526	)		(56	)		(2,645	)
Reclassification adjustment for losses/(gains) included in net income		(1	)		(75	)		243			(182	)
Minimum pension liability adjustment pursuant to FASB 87		(5,005	)		(482	)		(5,013	)		(482	)
Additional pension liability recorded upon adoption of FASB 158		(2,254	)		0			(2,254	)		0
Balance, at end of period	$	132,385		$	147,587		$	132,385		$	147,587

Page 11 of 15

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

	Three Months Ended
	December 31, 2006								December 31, 2005
	AVERAGE					AVERAGE			AVERAGE						AVERAGE
	BALANCE			INTEREST		RATE			BALANCE			INTEREST			RATE
Assets
Interest-bearing deposits with other banks	$	3,319		$	30		3.58	%	$	3,155		$	27			2.68	%
Investment securities — available for sale		133,622			1,610		4.82			177,889			1,983			4.46
Investment securities — held to maturity		436,056			4,970		4.56			502,159			5,611			4.47
Investment securities — tax exempt [2]		22,584			359		6.31			28,085			467			6.59
Total investment securities		592,262			6,939		4.68			708,133			8,061			4.55
Federal funds sold		8,750			108		4.83			2,609			26			3.82
Loans, net of unearned discount [3]		1,117,287			23,313		8.75			1,006,052			19,317			8.02
Total Interest-Earning Assets [2]		1,721,618			30,390		7.25	%		1,719,949			27,431			6.51	%
Cash and due from banks		73,005								69,231
Allowance for loan losses		(17,193	)							(16,000	)
Goodwill		22,843								21,158
Other		92,270								83,377
Assets — discontinued operations		8,583								110,445
Total Assets	$	1,901,126							$	1,988,160
Liabilities and Shareholders’ Equity
Interest-bearing deposits
Domestic
Savings	$	20,363			25		0.49	%	$	26,866			28			0.41	%
NOW		220,863			1,265		2.27			202,782			836			1.64
Money market		206,161			1,432		2.76			221,050			703			1.26
Time		534,389			6,076		4.51			519,311			4,069			3.11
Foreign
Time		1,786			5		1.02			3,020			8			1.09
Total Interest-Bearing Deposits		983,562			8,803		3.55			973,029			5,644			2.30
Borrowings
Securities sold u/a/r — customers		94,305			1,065		4.48			81,878			605			2.93
Securities sold u/a/r — dealers		21,897			297		5.39			58,020			607			4.15
Federal funds purchased		5,761			78		5.26			24,674			260			4.17
Commercial paper		36,568			467		5.06			42,017			353			3.34
Short-term borrowings — FHLB		17,174			235		5.44			8,533			96			4.43
Short-term borrowings — other		571			7		5.06			813			8			4.06
Long-term borrowings — FHLB		20,000			225		4.49			64,239			689			4.29
Long-term borrowings — sub debt		25,774			524		8.38			25,774			524			8.38
Total Borrowings		222,050			2,898		5.20			305,948			3,142			4.09
Interest-bearing liabilities allocated to discontinued operations		0			0		0.00			(98,474	)		(958	)		3.81
Total Interest-Bearing Liabilities		1,205,612			11,701		3.86	%		1,180,503			7,828			2.64	%
Noninterest-bearing demand deposits		448,147								466,293
Other liabilities		107,626								93,988
Liabilities — discontinued operations		1,540								98,928
Total Liabilities		1,762,925								1,839,712
Shareholders’ equity		138,201								148,448
Total Liabilities and Shareholders’ Equity	$	1,901,126							$	1,988,160
Net interest income/spread [2]					18,689		3.39	%					19,603			3.87	%
Net yield on interest-earning assets							4.41	%								4.61	%
Less: Tax-equivalent adjustment					141								182
Net interest income				$	18,548							$	19,421

[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 of 15

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

	Twelve Months Ended
	December 31, 2006									December 31, 2005
	AVERAGE						AVERAGE			AVERAGE						AVERAGE
	BALANCE			INTEREST			RATE			BALANCE			INTEREST			RATE
Assets
Interest-bearing deposits with other banks	$	2,624		$	103			4.48	%	$	3,040		$	65			1.96	%
Investment securities — available for sale		146,820			6,840			4.66			192,354			8,438			4.39
Investment securities — held to maturity		473,608			21,496			4.54			495,187			22,180			4.48
Investment securities — tax exempt [2]		27,174			1,760			6.47			26,088			1,816			6.96
Total investment securities		647,602			30,096			4.65			713,629			32,434			4.55
Federal funds sold		4,041			196			4.84			10,986			309			2.81
Loans, net of unearned discount [3]		1,043,680			86,882			8.97			944,033			69,788			7.99
Total Interest-Earning Assets [2]		1,697,947			117,277			7.23	%		1,671,688			102,596			6.41	%
Cash and due from banks		64,598									62,162
Allowance for loan losses		(16,741	)								(15,730	)
Goodwill		22,714									21,158
Other		90,812									81,126
Assets — discontinued operations		85,446									110,697
Total Assets	$	1,944,776								$	1,931,101
Liabilities and Shareholders’ Equity
Interest-bearing deposits
Domestic
Savings	$	23,050			101			0.44	%	$	28,150			113			0.40	%
NOW		197,587			3,787			1.92			160,944			1,576			0.98
Money market		213,530			4,696			2.20			227,520			2,456			1.08
Time		514,452			20,399			3.97			517,038			13,957			2.70
Foreign
Time		2,714			28			1.03			3,013			33			1.09
Total Interest-Bearing Deposits		951,333			29,011			3.05			936,665			18,135			1.94
Borrowings
Securities sold u/a/r — customers		86,418			3,501			4.05			85,365			1,907			2.23
Securities sold u/a/r — dealers		74,057			3,739			5.05			52,199			1,794			3.44
Federal funds purchased		15,133			769			5.08			17,992			647			3.60
Commercial paper		44,539			2,020			4.53			37,302			973			2.61
Short-term borrowings — FHLB		34,444			1,796			5.21			5,277			203			3.84
Short-term borrowings — other		613			30			4.96			744			25			3.35
Long-term borrowings — FHLB		34,164			1,569			4.59			80,740			3,331			4.13
Long-term borrowings — sub debt		25,774			2,094			8.38			25,774			2,094			8.38
Total Borrowings		315,142			15,518			4.94			305,393			10,974			3.59
Interest-bearing liabilities allocated to discontinued operations		(78,054	)		(2,508	)		3.17			(99,317	)		(2,646	)		2.63
Total Interest-Bearing Liabilities		1,188,421			42,021			3.54	%		1,142,741			26,463			2.32	%
Noninterest-bearing demand deposits		439,064									452,632
Other liabilities		95,302									85,994
Liabilities — discontinued operations		78,811									99,898
Total Liabilities		1,801,598									1,781,265
Shareholders’ equity		143,178									149,836
Total Liabilities and Shareholders’ Equity	$	1,944,776								$	1,931,101
Net interest income/spread [2]					75,256			3.69	%					76,133			4.09	%
Net yield on interest-earning assets								4.64	%								4.76	%
Less: Tax-equivalent adjustment					691									708
Net interest income				$	74,565								$	75,425

[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 13 of 15

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

	Increase/(Decrease)
	Three Months Ended
	December 31, 2006
	Volume			Rate			Net [2]
INTEREST INCOME
Interest-bearing deposits with other banks	$	0		$	3		$	3
Investment securities — available for sale		(525	)		152			(373	)
Investment securities — held to maturity		(754	)		113			(641	)
Investment securities — tax exempt		(89	)		(19	)		(108	)
Total investment securities		(1,368	)		246			(1,122	)
Federal funds sold		73			9			82
Loans, net of unearned discounts [3]		2,192			1,804			3,996
TOTAL INTEREST INCOME	$	897		$	2,062		$	2,959
INTEREST EXPENSE
Interest-bearing deposits
Domestic
Savings	$	(8	)	$	5		$	(3	)
NOW		81			348			429
Money market		(50	)		779			729
Time		121			1,886			2,007
Foreign
Time		(2	)		(1	)		(3	)
Total interest-bearing deposits		142			3,017			3,159
Borrowings
Securities sold under agreements to repurchase — customers		103			357			460
Securities sold under agreements to repurchase — dealers		(454	)		144			(310	)
Federal funds purchased		(237	)		55			(182	)
Commercial paper		(50	)		164			114
Short-term borrowings — FHLB		113			26			139
Short-term borrowings — other		(3	)		2			(1	)
Long-term borrowings — FHLB		(495	)		31			(464	)
Long-term borrowings — subordinated debentures		0			0			0
Total borrowings		(1,023	)		779			(244	)
Less: interest-bearing liabilities allocated to discontinued operations		479			479			958
TOTAL INTEREST EXPENSE	$	(402	)	$	4,275		$	3,873
NET INTEREST INCOME	$	1,299		$	(2,213	)	$	(914	)

[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 14 of 15

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

	Increase/(Decrease)
	Twelve Months Ended
	December 31, 2006
	Volume			Rate			Net [2]
INTEREST INCOME
Interest-bearing deposits with other banks	$	(11	)	$	49		$	38
Investment securities — available for sale		(2,093	)		495			(1,598	)
Investment securities — held to maturity		(978	)		294			(684	)
Investment securities — tax exempt		3			(59	)		(56	)
Total investment securities		(3,068	)		730			(2,338	)
Federal funds sold		(261	)		148			(113	)
Loans, net of unearned discounts [3]		7,906			9,188			17,094
TOTAL INTEREST INCOME	$	4,566		$	10,115		$	14,681
INTEREST EXPENSE
Interest-bearing deposits
Domestic
Savings	$	(22	)	$	10		$	(12	)
NOW		424			1,787			2,211
Money market		(160	)		2,400			2,240
Time		(71	)		6,513			6,442
Foreign
Time		(3	)		(2	)		(5	)
Total interest-bearing deposits		168			10,708			10,876
Borrowings
Securities sold under agreements to repurchase — customers		23			1,571			1,594
Securities sold under agreements to repurchase — dealers		919			1,026			1,945
Federal funds purchased		(114	)		236			122
Commercial paper		219			828			1,047
Short-term borrowings — FHLB		1,497			96			1,593
Short-term borrowings — other		(5	)		10			5
Long-term borrowings — FHLB		(2,099	)		337			(1,762	)
Long-term borrowings — subordinated debentures		0			0			0
Total borrowings		440			4,104			4,544
Less: interest-bearing liabilities allocated to discontinued operations		618			(480	)		138
TOTAL INTEREST EXPENSE	$	1,226		$	14,332		$	15,558
NET INTEREST INCOME	$	3,340		$	(4,217	)	$	(877	)

[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 15 of 15