Sterling Bancorp 8-K Sterling Bancorp Reports Results for Second Quarter 2007

Exhibit 99.1

		650 FIFTH AVENUE NEW YORK, NY 10019-6108
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 Results for Second Quarter 2007

Loans Rose 9.0%, Deposits Increased 8.4%,
Company Repurchased 3.5% of its Common Stock at a Cost of $10.5 Million

New York, NY, July 31, 2007 — Sterling Bancorp (NYSE: STL), a financial holding company and the parent company of Sterling National Bank, today reported its financial results for the quarter and six months ended June 30, 2007.

Second Quarter 2007 Highlights:

• Net income was $3.9 million in the 2007 second quarter compared to $4.9 million for the same period of 2006. Second quarter 2007 net income rose 11.0% compared to $3.5 million in the first quarter of 2007.

• Gross revenue (interest income plus noninterest income) amounted to $39.0 million in the second quarter of 2007, compared to $38.3 million in the first quarter of 2007 and $38.2 million in the second quarter of 2006.

• Loans held in portfolio as of June 30, 2007 were up 9.0% year over year, to $1,121.9 million. As of March 31, 2007, loans held in portfolio amounted to $1,080.6 million.

• Total deposits as of June 30, 2007 increased 8.4% year over year to $1,533.8 million, including a 5.1% rise in demand deposits. Total deposits were $1,509.2 million as of March 31, 2007.

• Net interest margin was 4.35% on a tax equivalent basis for the 2007 second quarter compared with 4.58% for the 2006 second quarter, and increased sequentially from 4.24% for the 2007 first quarter.

• During the quarter ended June 30, 2007, Sterling purchased 647,200 or 3.5% of its total common shares outstanding as of December 31, 2006, at a total cost of $10.5 million or an average of $16.25 per share.

“Sterling’s underlying momentum from the first quarter 2007 remained strong, despite the challenging operating environment affecting the entire banking industry. Our key accomplishments during the second quarter included a sequential increase in net income and robust year-over-year and sequential quarter growth in loans and deposits. Moreover, Sterling’s margins for the quarter improved 11 basis points to 4.35%

Page 1 of 15

compared to the first quarter of the year, reflecting the positive impact of the Company’s loan growth and stabilization of funding costs,” said Louis J. Cappelli, Chairman and Chief Executive Officer.

“Our mortgage product diversity, experience and disciplined approach to the marketplace have allowed us to focus on opportunities to minimize risk. In particular, Sterling has very limited exposure to the sub-prime mortgage business and has no portfolio exposure to home equity lending products,” said Mr. Cappelli.

“Sterling entered the third quarter with a strong loan pipeline and a continued emphasis on gathering core deposits. With a loan to deposit ratio of 73%, we have the capacity to continue to add loans without going to the more expensive wholesale markets for funding,” said Mr. Cappelli.

“We continued to capitalize on the attractive dynamics of our marketplace to sustain strong growth in loans and demand deposits. This focus is not only responsive to the needs of Sterling’s customers, but also generated a quality earnings stream that grew sequentially during the first two quarters of this year. Consolidation in the marketplace has also allowed us to get new customers and to attract highly qualified professionals,” added Mr. Cappelli.

Strong Growth in Loans and Deposits

Period-end loans held in portfolio, net of unearned discount, were $1,121.9 million, an increase of $92.5 million or 9.0% from June 30, 2006, and a $41.4 million or 3.8% improvement from March 31, 2007.

Total deposits were $1,533.8 million at the end of the 2007 second quarter, an increase of 8.4% from June 30, 2006. Demand deposits rose to $520.4 million — 33.9% of total deposits — continuing Sterling’s history of maintaining one of the highest ratios of demand to total deposits in the industry. This was an increase of $25.2 million, or 5.1% higher than the $495.3 million of demand deposits at June 30, 2006. As of March 31, 2007, total deposits amounted to $1,509.2 million.

Second Quarter 2007 Financial Results from Continuing Operations

Income from continuing operations after normalized taxes for the second quarter of 2007 was $3.8 million, compared to $5.4 million for the second quarter of 2006. This decrease primarily reflects higher interest expense, noninterest expenses, and the provision for loan losses, partially offset by increases in both interest income and noninterest income, coupled with a decrease in provision for income taxes.

Diluted income from continuing operations after normalized taxes per share for the quarter ended June 30, 2007, was $0.20, compared to $0.28 for the second quarter of 2006.

Page 2 of 15

Net interest income for the second quarter of 2007, on a tax-equivalent basis, was $18.3 million, compared to $19.3 million in the second quarter of 2006. The positive impact of a higher level of loan balances was offset by higher rates paid on interest-bearing liabilities, primarily interest-bearing deposits. In addition, investment securities balances declined as Sterling allowed its investment portfolio to decrease as securities matured and were paid-off, and redeployed the proceeds to fund loan growth and to substantially eliminate wholesale borrowings in favor of core deposits.

Net interest margin for the second quarter of 2007, on a tax-equivalent basis, was 4.35%, compared to 4.58% for the second quarter of 2006. The net interest margin was 4.24% for the first quarter of 2007. The net interest margin was impacted by the flat yield curve, the higher rates being paid on interest-bearing deposits and the effect of higher average loans outstanding. The flat yield curve and more competitive pricing practices in the Company’s markets have caused the costs of deposits and borrowings to increase faster than the yield on earning assets.

Noninterest income for the second quarter of 2007 increased to $9.1 million from $9.0 million in the same period of 2006. Mortgage banking income was virtually unchanged, amounting to $2.5 million in the second quarter of 2007 and $2.6 million in the second quarter of 2006.

Noninterest expenses for the second quarter of 2007 increased to $20.2 million, compared to $18.8 million for the second quarter of 2006, primarily due to higher professional fees. During the second quarter of 2006, professional fee expenses benefited from the recovery of previously expensed professional fees of $1.1 million. After adjusting for this reduction in 2006 expenses, noninterest expenses for the second quarter of 2007 increased only 1.4% compared to the second quarter of 2006. “We are highly focused on controlling our noninterest expenses and are encouraged by our achievements in this area,” said Mr. Cappelli.

The provision for income taxes was $2.2 million for the second quarter of 2007, compared to a provision of $3.6 million for the corresponding period of 2006. The decrease was primarily due to the lower level of pre-tax income for the 2007 period.

First Six Months 2007 Financial Results from Continuing Operations

Income from continuing operations after normalized taxes for the six months ended June 30, 2007, was $7.4 million, compared to $8.1 million for the six months ended June 30, 2006.

Diluted income from continuing operations after normalized taxes per share for the six months ended June 30, 2007, was $0.39, compared to a normalized $0.42 for the six months ended June 30, 2006.

Page 3 of 15

Net interest income for the six months ended June 30, 2007, on a tax-equivalent basis, was $36.0 million, compared to $37.9 million for the corresponding period of 2006. The impact of higher loan balances was offset by a reduction in the balances held in the investment securities portfolio and higher rates paid on interest-bearing liabilities.

Net interest margin for the six-month period ended June 30, 2007, on a tax-equivalent basis, was 4.34%, compared to 4.58% for the corresponding period of 2006.

Noninterest income for the six-month period ended June 30, 2007, was $18.3 million, compared to $14.8 million for the corresponding period of last year. This increase was mainly due to higher accounts receivable management commissions and other fees, combined with increased mortgage banking income.

Noninterest expenses for the six-month period ended June 30, 2007, were $39.9 million, compared to $37.3 million for the first six months of 2006, which benefited from the recovery of $1.1 million of previously expensed professional fees. The increase was primarily due to higher salaries and occupancy costs related to investments in the Sterling franchise, including two new branches and the acquisition of Sterling Resource Funding Corp. These increases were partially offset by expense reductions achieved from the reengineering of the Company’s mortgage banking activities and lower expenses for employee benefits. Excluding the impact of the acquisition of Sterling Resource Funding and the two new branches and the recapture in 2006 of the previously expensed professional fees, noninterest expenses for the six months ended June 30, 2007 would have decreased $1.7 million or 4.6% from the six months ended June 30, 2006.

The provision for income taxes for the first six months of 2007 was $4.4 million, compared to a normalized provision of $5.1 million for the corresponding period of last year. The normalized provision for the first six months of 2006 excludes the $3.7 million reversal of reserves for state and local income taxes in that period, which was based on management’s review of required reserves with outside professionals in light of the resolution of certain past tax issues.

Asset Quality

The allowance for loan losses as of June 30, 2007, was $15.6 million, or 1.39% of loans held in portfolio, compared to $17.2 million, or 1.67% of loans held in portfolio, as of June 30, 2006. As of June 30, 2007, nonperforming assets were $7.9 million, representing 0.42% of total assets from continuing operations. The Company has limited exposure to the current difficulties in the mortgage markets. The overwhelming portion of the mortgage products originated by the Company are conforming mortgages that are sold in the secondary markets.

Capital Management and Dividends

During the second quarter, the Company increased its buyback of shares, purchasing a total of 647,200 shares for $10.5 million, at an average price of $16.25 per share.

Page 4 of 15

Additionally, on June 30, 2007, Sterling paid a cash dividend of $0.19 per common share to shareholders of record as of June 15, 2007. This extended the Company’s record of dividend payments to 246 consecutive quarters, over 61 years.

Conference Call

Sterling Bancorp will host a teleconference call for the financial community on Tuesday, July 31, 2007 at 10:00 a.m. Eastern Time to discuss the second quarter 2007 financial results. The public is invited to listen to this conference call by dialing 866-871-4879 at least 10 minutes prior to the call.

A replay of the conference call will be available at 3:00 p.m. Eastern Time on Tuesday, July 31, 2007 until 11:59 p.m. Eastern Time on Tuesday, August 14, 2007. The public is invited to listen to this conference call by dialing 888-266-2081 and entering passcode 1120960.

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 and North Carolina and conducts business throughout the U.S.

Certain statements in this press release, including but not limited to, statements as to the Company’s loan pipeline, future core deposits, capacity to add loans, future funding, future noninterest expenses, future exposure to difficulties in mortgage markets, future liquidity, future interest rate risk and operating expenses, future results of operations or financial position, and plans and objectives for future operations, and other statements 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 “Risk Factors” and “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, 2006.

- tables to follow-

Page 5 of 15

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

	Three Month Ended June 30,						Six Months Ended June 30,
	2007			2006			2007			2006
OPERATING HIGHLIGHTS (1)
Interest income	$	29,925		$	29,173		$	59,032		$	56,569
Interest expense		11,720			10,043			23,324			19,045
Provision for loan losses		1,078			377			2,328			1,742
Noninterest income		9,052			9,006			18,281			14,791
Noninterest expenses		20,228			18,806			39,912			37,328
Income from continuing operations, before income taxes		5,951			6,953			11,749			13,245
Provision for income taxes at normal effective rates		2,160			3,571			4,386			5,125
Income from continuing operations after normalized taxes		3,791			5,382			7,363			8,120
Reversal of excess tax reserves		0			0			0			3,747
Income from continuing operations		3,791			5,382			7,363			11,867
Loss from discontinued operations, net of income taxes		71			(516	)		(21	)		(561	)
Net income		3,862			4,866			7,342			11,306
Net income per average common share:
Basic		0.21			0.26			0.40			0.60
Diluted		0.20			0.25			0.39			0.58
Income from continuing operations, after normalized taxes, per average common share:
Basic		0.21			0.29			0.40			0.43
Diluted		0.20			0.28			0.39			0.42
Income from continuing operations per average common share:
Basic		0.21			0.29			0.40			0.63
Diluted		0.20			0.28			0.39			0.61
Cash dividends declared		0.19			0.19			0.38			0.38
Common shares outstanding:
Period end		18,018			18,712			18,018			18,712
Average Basic		18,439			18,754			18,525			18,769
Average Diluted		18,857			19,286			18,995			19,310
Return on average assets, after nomalized taxes (2)		0.82	%		1.17	%		0.60	%		0.88	%
Return on average assets (3)		0.82	%		1.17	%		0.80	%		1.29	%
Return on average tangible equity, after normalized taxes (4)		14.44	%		17.78	%		13.95	%		13.41	%
Return on average tangible equity (5)		14.44	%		17.78	%		13.95	%		19.60	%
Return on average stated equity, after normalized taxes (6)		11.87	%		14.85	%		11.48	%		11.32	%
Return on average stated equity (7)		11.87	%		14.85	%		11.48	%		16.54	%
Net interest spread, tax-equivalent basis		3.30	%		3.65	%		3.29	%		3.70	%
Net interest margin, tax-equivalent basis		4.35	%		4.58	%		4.34	%		4.58	%

(1)	Unless otherwise indicated, all amounts and ratios are presented based on continuing operations.
(2)	Calculated by dividing income from continuing operations, after normalized taxes, by average assets from continuing operations.
(3)	Calculated by dividing income from continuing operations by average assets from continuing operations.
(4)	Average tangible equity represents average shareholders’ equity less average goodwill. Calculated by dividing income from continuing operations, after normalized taxes, by average tangible equity.
(5)	Average tangible equity represents average shareholders’ equity less average goodwill. Calculated by dividing income from continuing operations by average tangible equity.
(6)	Average stated equity is equal to average shareholders’ equity. Calculated by dividing income from continuing operations, after normalized taxes, by average stated equity.
(7)	Average stated equity is equal to average shareholders’ equity. Calculated by dividing income from continuing operations by average stated equity.

Page 6 of 15

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2007			2006			2007			2006
BALANCE SHEET HIGHLIGHTS
Period End Balances (1)
Investment securities	$	532,307		$	634,570		$	532,307		$	634,570
Loans held for sale		46,357			29,632			46,357			29,632
Loans held in portfolio, net of unearned discount		1,121,944			1,029,462			1,121,944			1,029,462
Total earning assets		1,711,785			1,694,820			1,711,785			1,694,820
Allowance for loan losses		15,582			17,220			15,582			17,220
Total assets from continuing operations		1,885,752			1,880,668			1,885,752			1,880,668
Total assets		1,886,978			1,994,934			1,886,978			1,994,934
Demand deposits		520,433			495,257			520,433			495,257
Savings, NOW and money market deposits		476,879			436,930			476,879			436,930
Time deposits		536,516			483,256			536,516			483,256
Customer repurchase agreements		76,530			57,932			76,530			57,932
Shareholders’ equity (2)		121,913			147,115			121,913			147,115
Average Balances (1)
Investment securities	$	554,643		$	661,619		$	566,806		$	685,030
Loans held for sale		52,281			40,455			45,790			45,556
Loans held in portfolio, net of unearned discount		1,052,427			987,849			1,033,359			956,735
Total earning assets		1,690,199			1,694,513			1,686,601			1,692,938
Total assets from continuing operations		1,852,205			1,852,959			1,847,917			1,850,805
Total assets		1,853,533			1,967,024			1,849,132			1,964,920
Demand deposits		444,369			441,630			439,609			441,683
Savings, NOW and money market deposits		487,966			405,103			469,080			427,430
Time deposits		562,417			507,455			564,572			516,567
Customer repurchase agreements		76,091			81,439			85,517			80,756
Shareholders’ equity (2)		128,150			145,325			129,293			144,649
ASSET QUALITY HIGHLIGHTS (1)
Period End
Net charge-offs	$	990		$	374		$	2,481		$	1,518
Nonperforming loans		5,854			3,843			5,854			3,843
Other real estate owned		2,057			1,465			2,057			1,465
Nonperforming assets		7,911			5,308			7,911			5,308
Nonperforming loans/loans (3)		0.50	%		0.36	%		0.50	%		0.36	%
Nonperforming assets/assets		0.42	%		0.28	%		0.42	%		0.28	%
Allowance for loan losses/loans (4)		1.39	%		1.67	%		1.39	%		1.67	%
Allowance for loan losses/ nonperforming loans		266.18	%		448.09	%		266.18	%		448.09	%
Capital Ratios (2)
Tier 1 risk based		10.61	%		11.65	%		10.61	%		11.65	%
Total risk based		11.82	%		12.91	%		11.82	%		12.91	%
Leverage		7.45	%		8.00	%		7.45	%		8.00	%
Book value per common share (2)	$	6.77		$	7.86		$	6.77		$	7.86

(1)	Unless otherwise indicated, all amounts and ratios are presented based on continuing operations.
(2)	Includes the effects of discontinued operations.
(3)	The term “loans” includes loans held for sale and loans held in portfolio.
(4)	The term “loans” includes loans held in portfolio only.

Page 7 of 15

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

	June 30,
	2007		2006
ASSETS
Cash and due from banks	$	70,030	$	81,970
Interest-bearing deposits with other banks		1,177		1,156
Federal funds sold		10,000		0
Investment securities
Available for sale (at estimated market value)		145,900		161,002
Held to maturity (at amortized cost)		386,407		473,568
Total investment securities		532,307		634,570
Loans held for sale		46,357		29,632
Loans held in portfolio, net of unearned discounts		1,121,944		1,029,462
Less allowance for loan losses		15,582		17,220
Loans, net		1,106,362		1,012,242
Customers’ liability under acceptances		34		136
Goodwill		22,901		22,962
Premises and equipment, net		11,510		11,041
Other real estate		2,057		1,465
Accrued interest receivable		4,894		5,069
Bank owned life insurance		28,488		27,453
Other assets		49,635		52,972
Total assets from continuing operations		1,885,752		1,880,668
Assets — discontinued operations		1,226		114,266
	$	1,886,978	$	1,994,934
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits
Demand	$	520,433	$	495,257
Savings, NOW and money market		476,879		436,930
Time		536,516		483,256
Total deposits		1,533,628		1,415,443
Securities sold under agreements to repurchase — customers		76,530		57,932
Securities sold under agreements to repurchase — dealers		0		110,346
Federal funds purchased		0		20,000
Commercial paper		27,444		43,717
Short-term borrowings — FHLB		0		56,000
Short-term borrowings — other		1,718		1,449
Long-term borrowings — FHLB		10,000		30,000
Long-term borrowings — subordinated debentures		25,774		25,774
Acceptances outstanding		34		136
Accrued expenses and other liabilities		89,608		86,469
Liabilities — discontinued operations		129		553
Total liabilities		1,765,065		1,847,819
Shareholders’ equity		121,913		147,115
	$	1,886,978	$	1,994,934
MEMORANDA
Available for sale securities — amortized cost	$	151,462	$	168,409
Held to maturity securities — estimated market value		375,158		454,700
Shares outstanding
Common issued		21,262,170		21,177,084
Common in treasury		3,244,502		2,465,012

Page 8 of 15

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2007			2006			2007			2006
INTEREST INCOME
Loans	$	23,121		$	21,589		$	44,848		$	40,969
Investment securities — available for sale		1,701			1,978			3,546			4,180
Investment securities — held to maturity		4,699			5,551			9,568			11,295
Federal funds sold		368			35			1,003			75
Deposits with other banks		36			20			67			50
Total interest income		29,925			29,173			59,032			56,569
INTEREST EXPENSE
Savings, NOW and money market deposits		3,280			1,672			6,139			3,455
Time deposits		6,581			4,715			13,129			9,176
Securities sold u/a/r — customers		805			767			1,880			1,462
Securities sold u/a/r — dealers		0			1,344			0			2,328
Federal funds purchased		24			251			36			386
Commercial paper		355			538			705			943
Short-term borrowings — FHLB		0			642			0			835
Short-term borrowings — other		15			7			27			18
Long-term borrowings — FHLB		136			461			361			1,047
Long-term subordinated debentures		524			524			1,047			1,047
Total interest expense		11,720			10,921			23,324			20,697
Interest expense allocated to discontinued operations		0			(878	)		0			(1,652	)
Total interest expense-continuing operations		11,720			10,043			23,324			19,045
Net interest income		18,205			19,130			35,708			37,524
Provision for loan losses		1,078			377			2,328			1,742
Net interest income after provision for loan losses		17,127			18,753			33,380			35,782
NONINTEREST INCOME
Accounts receivable management/ factoring commissions and other fees		3,821			3,880			7,489			5,225
Service charges on deposit accounts		1,424			1,282			2,906			2,686
Other customer related service charges and fees		743			813			1,433			1,621
Mortgage banking income		2,544			2,568			5,376			4,784
Trust fees		125			138			266			290
Bank owned life insurance income		287			268			539			488
Securities (losses)/gains		(2	)		14			(2	)		(445	)
Other income		110			43			274			142
Total noninterest income		9,052			9,008			18,281			14,791
NONINTEREST EXPENSES
Salaries		8,451			9,111			17,448			16,874
Employee benefits		2,734			2,771			5,224			5,672
Total personnel expense		11,185			11,882			22,672			22,546
Occupancy and equipment expenses, net		2,640			2,479			5,347			4,782
Advertising and marketing		1,122			607			2,086			1,806
Professional fees		1,951			693			3,291			2,516
Communications		454			451			970			846
Other expenses		2,876			2,494			5,546			4,832
Total noninterest expenses		20,228			18,806			39,912			37,328
Income from continuing operations before income taxes		5,951			8,953			11,749			13,245
Provision for income taxes at normal effective rates		2,160			3,571			4,386			5,125
Income from continuing operations after normalized taxes		3,791			5,382			7,363			8,120
Reversal of tax reserves		0			0			0			3,747
Income from continuing operations		3,791			5,382			7,363			11,867
lncome/(Loss) from discontinued operations, net of tax		71			(516	)		(21	)		(561	)
Net income	$	3,862		$	4,866		$	7,342		$	11,306

Page 9 of 15

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

(continued)

	Three Months Ended June 30,				Six Months Ended June 30,
	2007		2006		2007		2006
Average number of common shares outstanding
Basic		18,439,318		18,754,271		18,524,871		18,769,265
Diluted		18,856,903		19,286,286		18,994,625		19,310,135
Net income per average common share
Basic	$	0.21	$	0.26	$	0.40	$	0.60
Diluted		0.20		0.25		0.39		0.58
Income from continuing operations, after normalized taxes, per average common share
Basic		0.21		0.29		0.40		0.43
Diluted		0.20		0.28		0.39		0.42
Income from continuing operations, per average common share
Basic		0.21		0.29		0.40		0.63
Diluted		0.20		0.28		0.39		0.61
Dividends per common share		0.19		0.19		0.38		0.38

Page 10 of 15

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2007			2006			2007			2006
Net income	$	3,862		$	4,866		$	7,342		$	11,306
Other comprehensive (loss)/income, net of tax:
Unrealized holding losses arising during the period		(1,233	)		(986	)		(897	)		(2,220	)
Reclassification adjustment for losses/(gains) included in net income		1			(8	)		1			224
Amortization of:
Prior service cost		14			0			27			0
Net actuarial losses		182			0			365			0
Comprehensive income	$	2,826		$	3,872		$	6,838		$	9,330

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2007			2006			2007			2006
Balance, at beginning of period	$	133,017		$	148,327		$	132,263		$	147,588
Net income for period		3,862			4,866			7,342			11,306
Common shares issued under stock incentive plan and related tax benefits		36			1,170			776			1,723
Purchase of common shares for treasury		(10,515	)		(2,284	)		(10,515	)		(3,810	)
Cash dividends-Common shares		(3,451	)		(3,562	)		(6,993	)		(7,124	)
Surrender of shares issued under incentive compensation plan		0			(408	)		(456	)		(614	)
Amortization of unearned compensation		0			0			0			22
Change in net unrealized holding losses on available for sale securities		(1,233	)		(986	)		(897	)		(2,220	)
Reclassification adjustment for losses/(gains) included in net income		1			(8	)		1			244
Amortization of:
Prior service cost		14			0			27			0
Net actuarial losses		182			0			365			0
Balance, at end of period	$	121,913		$	147,115		$	121,913		$	147,115

Page 11 of 15

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

	Three Months Ended
	June 30, 2007								June 30, 2006
	AVERAGE					AVERAGE			AVERAGE						AVERAGE
	BALANCE			INTEREST		RATE			BALANCE			INTEREST			RATE
Assets
Interest-bearing deposits with other banks	$	2,881		$	36		5.11	%	$	1,788		$	20			4.61	%
Investment securities — available for sale		127,616			1,510		4.73			143,428			1,684			4.70
Investment securities — held to maturity		407,034			4,699		4.62			488,398			5,551			4.55
Investment securities — tax exempt [2]		19,993			314		6.30			29,793			485			6.53
Total investment securities		554,643			6,523		4.71			661,619			7,720			4.67
Federal funds sold	��	27,967			368		5.20			2,802			35			4.93
Loans, net of unearned discount [3]		1,104,708			23,121		6.66			1,028,304			21,589			8.72
Total Interest-Earning Assets [2]		1,690,199			30,048		7.24	%		1,694,513			29,364			7.06	%
Cash and due from banks		63,451								60,953
Allowance for loan losses		(16,320	)							(16,248	)
Goodwill		22,875								23,886
Other		92,000								89,855
Assets — discontinued operations		1,328								114,065
Total Assets	$	1,853,533							$	1,967,024
Liabilities and Shareholders’ Equity
Interest-bearing deposits
Domestic
Savings	$	21,149			27		0.51	%	$	23,646			24			0.41	%
NOW		245,682			1,572		2.57			176,292			691			1.57
Money market		221,135			1,681		3.05			205,165			957			1.87
Time		561,843			6,579		4.70			504,428			4,707			3.74
Foreign
Time		574			2		1.09			3,027			8			1.02
Total Interest-Bearing Deposits		1,050,383			9,861		3.77			912,558			6,387			2.81
Borrowings
Securities sold u/a/r — customers		76,091			805		4.24			81,439			767			3.78
Securities sold u/a/r — dealers		0			0		0.00			106,438			1,344			5.07
Federal funds purchased		1,758			24		5.26			19,912			251			4.99
Commercial paper		27,906			355		5.11			49,371			538			4.37
Short-term borrowings — FHLB		0			0		0.00			50,498			642			5.10
Short-term borrowings — other		1,179			15		5.34			581			7			5.09
Long-term borrowings — FHLB		11,648			136		4.69			39,670			461			4.64
Long-term borrowings — sub debt		25,774			524		8.38			25,774			524			8.37
Total Borrowings		144,356			1,859		5.19			373,683			4,534			4.87
Interest-bearing liabilities allocated to discontinued operations		0			0		0.00			(103,508	)		(818	)		3.36
Total Interest-Bearing Liabilities		1,194,739			11,720		3.94	%		1,182,733			10,043			3.41	%
Noninterest-bearing demand deposits		444,369								441,630
Other liabilities		86,095								93,675
Liabilities — discontinued operations		180								103,661
Total Liabilities		1,725,383								1,821,699
Shareholders’ equity		128,150								145,325
Total Liabilities and Shareholders’ Equity	$	1,853,533							$	1,967,024
Net interest income/spread [2]					18,328		3.30	%					19,321			3.65	%
Net yield on Interest-earning assets							4.35	%								4.58	%
Less: Tax-equivalent adjustment					123								191
Net interest income				$	18,205							$	19,130

[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)

	Six Months Ended
	June 30, 2007								June 30, 2006
	AVERAGE					AVERAGE			AVERAGE						AVERAGE
	BALANCE			INTEREST		RATE			BALANCE			INTEREST			RATE
Assets
Interest-bearing deposits with other banks	$	2,856		$	67		5.24	%	$	2,413		$	50			4,47	%
Investment securities — available for sale		131,105			3,149		4.80			156,907			3,571			4.55
Investment securities — held to maturity		415,032			9,568		4.61			497,371			11,295			4.54
Investment securities — tax exempt [2]		20,669			653		6.37			30,752			1,004			6.59
Total investment securities		566,806			13,370		4.72			685,030			15,870			4.64
Federal funds sold		37,790			1,003		5.28			3,204			75			4.65
Loans, net of unearned discount (3]		1,079,149			44,848		8.74			1,002,291			40,969			8.62
Total Interest-Earning Assets [2]		1,686,601			59,288		7.24	%		1,692,938			56,964			6.94	%
Cash and due from banks		65,493								62,198
Allowance for loan losses		(16,596	)							(16,124	)
Goodwill		22,868								22,530
Other		89,551								89,263
Assets — discontinued operations		1,215								114,115
Total Assets	$	1,849,132							$	1,964,920
Liabilities and Shareholders’ Equity
Interest-bearing deposits
Domestic
Savings	$	21,026			52		0.50	%	$	24,666			50			0.41	%
NOW		233,916			2,970		2.56			179,385			1,426			1.60
Money market		214,138			3,117		2.94			223,379			1,979			1.79
Time		563,998			13,126		4.69			513,542			9,160			3.60
Foreign
Time		574			3		1.09			3,025			16			1.06
Total Interest-Bearing Deposits		1,033,652			19,268		3.76			943,997			12,631			2.70
Borrowings
Securities sold u/a/r — customers		85,517			1,880		4.43			80,756			1,462			3.65
Securities sold u/a/r — dealers		0			0		0.00			96,683			2,328			4.86
Federal funds purchased		1,354			36		5.25			16,117			386			4.77
Commercial paper		27,904			705		5.10			45,776			943			4.15
Short-term borrowings — FHLB		0			0		0.00			33,814			835			4.98
Short-term borrowings — other		1,040			27		5.34			746			18			4.81
Long-term borrowings — FHLB		15,801			361		4.57			45,746			1,047			4.58
Long-term borrowings — sub debt		25,774			1,047		8.38			25,774			1,047			8.38
Total Borrowings		157,390			4,056		5.21			345,412			8,066			4.71
Interest-bearing liabilities allocated to discontinued operations		0			0		0.00			(103.015	)		(1,652	)		3.19
Total Interest-Bearing Liabilities		1,191,042			23,324		3.95	%		1,186,394			19,045			3.24	%
Noninterest-bearing demand deposits		439,609								441,683
Other liabilities		88,880								89,006
Liabilities — discontinued operations		308								103,188
Total Liabilities		1,719,839								1,820,271
Shareholders’ equity		129,293								144,649
Total Liabilities and Shareholders’ Equity	$	1,849,132							$	1,964,920
Net interest income/spread [2]					35,964		3.29	%					37,919			3.70	%
Net yield on interest-earning assets							4.34	%								4.58	%
Less: Tax-equivalent adjustment					256								395
Net interest income				$	35,708							$	37,524

[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 hold 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
	June 30, 2007
	Volume			Rate			Net [2]
INTEREST INCOME
Interest-bearing deposits with other banks	$	14		$	2		$	16
Investment securities — available for sale		(185	)		11			(174	)
Investment securities — held to maturity		(936	)		84			(852	)
Investment securities — tax exempt		(155	)		(16	)		(171	)
Total investment securities		(1,276	)		79			(1,197	)
Federal funds sold		331			2			333
Loans, net of unearned discounts [3]		1,684			(152	)		1,532
TOTAL INTEREST INCOME	$	753		$	(69	)	$	684
INTEREST EXPENSE
Interest-bearing deposits
Domestic
Savings	$	(3	)	$	6		$	3
NOW		337			544			881
Money market		79			645			724
Time		575			1,297			1,872
Foreign
Time		(7	)		1			(6	)
Total interest-bearing deposits		981			2,493			3,474
Borrowings
Securities sold under agreements to repurchase — customers		(52	)		90			38
Securities sold under agreements to repurchase — dealers		(1,344	)		0			(1,344	)
Federal funds purchased		(239	)		12			(227	)
Commercial paper		(263	)		80			(183	)
Short-term borrowings — FHLB		(642	)		0			(642	)
Short-term borrowings — other		8			0			8
Long-term borrowings — FHLB		(330	)		5			(325	)
Long-term borrowings — subordinated debentures		0			0			0
Total borrowings		(2,862	)		187			(2,675	)
Less: interest-bearing liabilities allocated to discontinued operations		878			0			878
TOTAL INTEREST EXPENSE	$	(1,003	)	$	2,680		$	1,677
NET INTEREST INCOME	$	1,756		$	(2,749	)	$	(993	)

[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)
	Six Months Ended
	June 30, 2007
	Volume			Rate			Net [2]
INTEREST INCOME
Interest-bearing deposits with other banks	$	9		$	8		$	17
Investment securities — available for sale		(608	)		186			(422	)
Investment securities — held to maturity		(1,896	)		169			(1,727	)
Investment securities — tax exempt		(318	)		(33	)		(351	)
Total investment securities		(2,822	)		322			(2,500	)
Federal funds sold		917			11			928
Loans, net of unearned discounts [3]		3,283			596			3,879
TOTAL INTEREST INCOME	$	1,387		$	937		$	2,324
INTEREST EXPENSE
Interest-bearing deposits
Domestic
Savings	$	(8	)	$	10		$	2
NOW		519			1,025			1,544
Money market		(85	)		1,223			1,138
Time		972			2,994			3,966
Foreign
Time		(13	)		0			(13	)
Total Interest-bearing deposits		1,385			5,252			6,637
Borrowings
Securities sold under agreements to repurchase — customers		90			328			418
Securities sold under agreements to repurchase — dealers		(2,328	)		0			(2,328	)
Federal funds purchased		(384	)		34			(350	)
Commercial paper		(422	)		184			(238	)
Short-term borrowings — FHLB		(835	)		0			(835	)
Short-term borrowings — other		7			2			9
Long-term borrowings — FHLB		(684	)		(2	)		(686	)
Long-term borrowings — subordinated debentures		0			0			0
Total borrowings		(4,556	)		546			(4,010	)
Less: interest-bearing liabilities allocated to discontinued operations		1,652			0			1,652
TOTAL INTEREST EXPENSE	$	(1,519	)	$	5,798		$	4,279
NET INTEREST INCOME	$	2,906		$	(4,861	)	$	(1,955	)

[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