Sterling Bancorp 8-K Sterling Bancorp Reports 15% Increase in EPS and Strong Asset Quality for 2007 Fourth Quarter

Exhibit 99.1

NEWS

IMMEDIATE RELEASE 650 FIFTH AVENUE
NEW YORK, NY 10019-6108

John Tietjen	Edward Nebb/Seth Linden
Chief Financial Officer	Investor Relations/Media Relations
Sterling Bancorp	Dukas Public Relations
john.tietjen@sterlingbancorp.com	seth@dukaspr.com
212.757.8035	212.704.7385, Ext. 104

Sterling Bancorp Reports 15% Increase in EPS and Strong Asset Quality
for 2007 Fourth Quarter

Full Year 2007 Net Income is $14.6 Million or $0.79 per Share

Loans Increased 6.7% on Average for the Year

Deposits Rose 7.9% on Average for the Year

New York, NY, January 28, 2008 — Sterling Bancorp (NYSE: STL), a financial holding company and the parent company of Sterling National Bank, today reported its financial results for the fourth quarter and full year ended December 31, 2007.

Highlights:

• Net income rose to $4.2 million or $0.23 per diluted share for the 2007 fourth quarter, from $3.9 million or $0.20 per diluted share for the same period of 2006, an increase of 15% in EPS.

• Full year net income rose to $14.6 million or $0.79 per diluted share, from $10.8 million or $0.56 per diluted share for 2006. The year-ago results reflected, in part, the impact of the disposal of a business unit and a recapture of excess tax reserves.

• Net interest income increased 2.7% to $19.2 million for the 2007 fourth quarter on a tax-equivalent basis.

• Total deposits reached a year-end record, and averaged $1,500.4 million for 2007, up 7.9% from the prior year.

• Loans held in portfolio, net of unearned discounts, averaged a record $1,069.5 million for the year ended December 31, 2007, up 6.7% from the prior year.

• Asset quality, as reflected by a 0.40% ratio of nonperforming assets to total assets at December 31, 2007, was stronger than the peer group average.

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“We are pleased with Sterling’s increased earnings performance in the 2007 fourth quarter, particularly in view of the challenging economic conditions faced by many in our industry. Our strong performance reflects sequential growth in EPS from continuing operations throughout 2007: from $0.19 in the first quarter, to $0.20 in the second quarter; $0.21 in the third quarter; and $0.23 in the fourth quarter. Other key accomplishments for the year included higher operating earnings from our diverse mix of revenue sources, growth in loans and deposits, and sustained asset quality. At a time when prevailing economic forces have adversely impacted many financial institutions, it is gratifying to be able to deliver positive results for our shareholders,” said Louis J. Cappelli, Chairman and Chief Executive Officer.

Mr. Cappelli added, “To mitigate our risk exposure, we have continually taken a disciplined approach to lending and deposit pricing, and focused on asset classes where we have deep expertise.” He noted that the Company has minimal exposure to the sub-prime mortgage business, does not participate in collateralized debt obligations (CDOs) and other exotic structured instruments, and has limited portfolio exposure to consumer debt, home equity lending products, credit card receivables, auto loans or other asset classes that have been sources of higher risk in the current market environment. Sterling’s mortgage unit has been focusing on FHA-insured loans and other high quality products, and has relied upon its product diversity and rigorous approach to credit, risk and expense management to minimize its exposure to the current mortgage industry downturn. Also, over 90% of the investment portfolio is comprised of obligations of U.S. government corporations and government sponsored enterprises.

“The source of Sterling’s loan and deposit growth during 2007 was our longstanding emphasis on providing quality, personalized service to businesses and individuals in our marketplace. On January 22, 2008, the Federal Reserve lowered the Federal Funds rate by 75 basis points in response to global concerns about possible weakening economic conditions — a move significant in its magnitude and unexpected timing. While it is too early to determine whether this will result in a sustained improvement in the financial markets, we continue to believe that the current environment will provide opportunities for a strong and service-oriented institution such as Sterling. We believe that we are well positioned to grow and serve our customers, as other lenders rein in their growth to preserve capital, and market forces temper irrational competition. We also continue to expect that our approach to managing risk and serving our market will drive our success going forward, and we believe that we have the strong capital position and liquidity to deliver on our commitments to customers and shareholders,” Mr. Cappelli concluded.

Growth in Loans and Deposits

Loans held in portfolio, net of unearned discounts, averaged a record $1,069.5 million for the year ended December 31, 2007, an increase of 6.7% from the prior year. The growth in the loan portfolio was broad-based across many of the Company’s lending businesses.

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Total deposits averaged $1,500.4 million for the year ended December 31, 2007, rising 7.9% from the prior year. Demand deposits at December 31, 2007 totaled $535.4 million, or 35% of total deposits, and again represented one of the highest ratios of demand to total deposits in the industry.

Fourth Quarter 2007 Financial Results

Net income for the 2007 fourth quarter was $4.2 million or $0.23 per diluted share, growing EPS 15% compared with $3.9 million or $0.20 per diluted share for the same period of 2006. The increased profitability primarily reflected higher interest income and the effect of discontinued operations on the year-ago period, which more than offset increases in interest expenses and a higher provision for taxes.

Net interest income for the fourth quarter of 2007, on a tax-equivalent basis, was $19.2 million, up from $18.7 million in the same period of 2006. The increase primarily reflected higher loan balances, higher investment securities balances at higher yields, and lower rates on interest-bearing deposits and borrowed funds. This increase was partially offset by a lower yield on loans, along with higher interest-bearing deposit and borrowed funds balances.

The net interest margin, on a tax-equivalent basis, was 4.32% for the 2007 fourth quarter versus 4.41% for the 2006 period. The net interest margin decrease reflected the impact of the lower interest rate environment in the 2007 period, as reductions of interest rates by the Federal Reserve during the period and more competitive pricing practices in the Company’s markets have caused the yield on loans to decrease more rapidly than the cost of deposits.

Noninterest income for the fourth quarter of 2007 was $9.6 million, virtually unchanged from the year-ago period.

Noninterest expenses for the fourth quarter of 2007 were $20.5 million, compared to $20.6 million for the fourth quarter of 2006. Reflecting the Company’s cost-control discipline, reductions in various categories of noninterest expenses more than offset higher salaries and employee benefit costs related to investments in the Sterling franchise.

The provision for income taxes at normalized tax rates was $2.6 million for the fourth quarter of 2007, compared to $2.2 million for the same period of 2006.

Full Year 2007 Financial Results

Net income for the year ended December 31, 2007 was $14.6 million or $0.79 per diluted share, compared with $10.8 million or $0.56 per diluted share for the full year 2006, an increase of 41.1% in EPS. The year-ago results reflected a $9.6 million loss, net of tax, on the sale in September 2006 of a business unit. Also included in the 2006 results was a reversal of tax reserves totaling $4.4 million.

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Net interest income for 2007, on a tax-equivalent basis, was $74.4 million, compared to $75.3 million for 2006. Net interest income benefited from higher average loan balances, a higher yield on investment securities and lower borrowings, which were more than offset by a reduction in the investment securities portfolio, lower yield on loans and higher balances and rates paid on interest-bearing deposits.

Net interest margin for 2007, on a tax-equivalent basis, was 4.49%, compared with 4.64% for 2006. The net interest margin was impacted by the higher rate environment during most of 2007 and by the interest-earning asset and funding mix. Additionally, the more competitive pricing practices in the Company’s markets caused the cost of interest-bearing deposits to increase more rapidly than the yield on interest-earning assets.

Noninterest income for 2007 was $35.7 million, a 6.1% increase compared to $33.7 million for the prior year. This increase was primarily due to revenues generated by Sterling Resource Funding Corp., which was acquired in April 2006, and net gains on securities sales in 2007, compared to net losses on securities sales in the prior year period.

Noninterest expenses for 2007 were $79.8 million, compared to $77.4 million for 2006. 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 from a refocusing of the Company’s mortgage banking activities. The 2006 period benefited from a recapture of $1.1 million of previously expensed professional fees.

The provision for income taxes at normalized tax rates for 2007 was $8.9 million, compared with $9.8 million for the prior year, primarily reflecting a lower level of pretax income. The normalized provision for 2006 excludes an aggregate $4.4 million reversal of reserves for state and local income taxes, net of federal tax effect. The reversal reflected management’s review of required reserves with outside professionals in light of the resolution of certain past tax issues, and the closure of certain years for local tax purposes.

Asset Quality

The provision for loan losses was $1.4 million for the 2007 fourth quarter, compared to $1.3 million for the prior year period. For the full year 2007, the provision for loan losses was $5.9 million, compared to $4.5 million for 2006.

The allowance for loan losses as of December 31, 2007, was $15.1 million, or 1.27% of loans held in portfolio, compared to $16.3 million, or 1.46% of loans held in portfolio, a year earlier. As of December 31, 2007, nonperforming assets were $8.1 million, representing 0.40% of total assets from continuing operations, compared with $8.1 million or 0.43% of total assets from continuing operations a year ago.

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The adequacy of the provision and the resulting allowance for loan losses is determined based on management’s continuing evaluation of the loan portfolio, including an assessment of current and expected future economic conditions, the changing mix of loans in the portfolio, and numerous other factors.

Capital Management and Dividends

As of December 31, 2007, the Company exceeded the requirements for a well-capitalized institution for regulatory purposes. Its Tier 1 risk-weighted capital ratio was 9.76% and its Tier 1 leverage ratio was 6.88% at that date.

Sterling paid a cash dividend of $0.19 per common share on December 31, 2007, to shareholders of record as of December 15, 2007. This extended the Company’s record of dividend payments to 248 consecutive quarters, or 62 years.

The Company repurchased 862,000 shares of common stock during 2007. The Board of Directors and management concluded that it was prudent to maintain strong capital resources in response to the adverse conditions in the financial markets, and thus made no repurchases during the 2007 fourth quarter.

Conference Call

Sterling Bancorp will host a teleconference call for the financial community on January 29, 2008 at 10:00 a.m. Eastern Standard Time to discuss the 2007 financial results. The public is invited to listen to this conference call by dialing 800-762-4832 at least 10 minutes prior to the call.

A replay of the conference call will be available beginning at approximately 1:00 p.m. Eastern Standard Time on January 29, 2008 until 11:59 p.m. Eastern Standard Time on February 12, 2008. To access the replay by telephone, interested parties may dial 800-475-6701 and enter the access code 908182.

About Sterling Bancorp

Sterling Bancorp (NYSE: STL) is a financial holding company with assets of more than $2.0 billion, offering a broad array of banking and financial services products. Its principal banking subsidiary is Sterling National Bank, founded in 1929. Sterling provides a wide range of products and services, including business and consumer loans, commercial and residential mortgage lending and brokerage, asset-based financing, factoring 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.

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Certain statements in this press release, including but not limited to, statements as to future liquidity, future interest rate risk and operating expenses, statements concerning future results of operations or financial position, and plans and objectives for future operations, statements concerning the Company’s belief that the current environment in the financial markets will provide opportunities for the Company and that it is well positioned to grow and serve its customers, the Company’s expectation that its approach to managing risk and serving its market will drive its success going forward, and the Company’s belief that it has the strong capital position and liquidity to deliver on its commitments to customers and shareholders, 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 onForm 10-K for the fiscal year ended December 31, 2006.

- tables to follow-

Page 6 of 16

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,
	2007			2006			2007			2006
OPERATING HIGHLIGHTS (1)
Interest income	$	31,177		$	30,249		$	121,452		$	116,586
Interest expense		12,094			11,701			47,560			42,021
Provision for loan losses		1,400			1,250			5,853			4,503
Noninterest income		9,631			9,617			35,724			33,658
Noninterest expenses		20,475			20,572			79,809			77,355
Income from continuing operations, before income taxes		6,839			6,343			23,954			26,365
Provision for income taxes at normal effective rates		2,649			2,234			8,901			9,814
Income from continuing operations after normalized taxes		4,190			4,109			15,053			16,551
Reversal of tax reserves		0			0			341			4,447
Income from continuing operations		4,190			4,109			15,394			20,998
Loss from discontinued operations, net of income taxes		0			(223	)		(795	)		(10,238	)
Net income		4,190			3,886			14,599			10,760
Net income per average common share:
Basic		0.24			0.20			0.80			0.57
Diluted		0.23			0.20			0.79			0.56
Income from continuing operations, after normalized taxes, per average common share:
Basic		0.24			0.23			0.83			0.88
Diluted		0.23			0.23			0.81			0.86
Income from continuing operations per average common share:
Basic		0.24			0.22			0.85			1.12
Diluted		0.23			0.21			0.83			1.09
Cash dividends declared		0.19			0.19			0.76			0.76
Common shares outstanding:
Period end		17,819			18,605			17,819			18,605
Average Basic		17,808			18,685			18,210			18,735
Average Diluted		18,131			19,193			18,532			19,265
Return on average assets, after nomalized taxes (2)		0.84	%		0.86	%		0.80	%		0.89	%
Return on average assets (3)		0.84	%		0.86	%		0.81	%		1.13	%
Return on average tangible equity, after normalized taxes (4)		17.17	%		14.13	%		14.87	%		13.74	%
Return on average tangible equity (5)		17.17	%		14.13	%		15.20	%		17.43	%
Return on average stated equity, after normalized taxes (6)		13.89	%		11.80	%		12.13	%		11.56	%
Return on average stated equity (7)		13.89	%		11.80	%		12.40	%		14.67	%
Net interest spread, tax-equivalent basis		3.43	%		3.39	%		3.50	%		3.69	%
Net interest margin, tax-equivalent basis		4.32	%		4.41	%		4.49	%		4.64	%

(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.

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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,
	2007			2006			2007			2006
BALANCE SHEET HIGHLIGHTS
Period End Balances (1)
Investment securities	$	625,241		$	569,324		$	625,241		$	569,324
Loans held for sale		23,756			33,320			23,756			33,320
Loans held in portfolio, net of unearned discount		1,187,124			1,112,602			1,187,124			1,112,602
Total earning assets		1,837,101			1,736,507			1,837,101			1,736,507
Allowance for loan losses		15,085			16,288			15,085			16,288
Total assets from continuing operations		2,012,649			1,884,294			2,012,649			1,884,294
Total assets		2,012,649			1,885,957			2,012,649			1,885,957
Demand deposits		535,351			546,443			535,351			546,443
Savings, NOW and money market deposits		467,446			447,601			467,446			447,601
Time deposits		524,189			527,986			524,189			527,986
Customer repurchase agreements		60,054			52,803			60,054			52,803
Other short-term borrowings		145,364			30,974			145,364			30,974
Long-term borrowings		65,774			45,774			65,774			45,774
Shareholders’ equity (2)		121,070			132,263			121,070			132,263
Average Balances (1)
Investment securities	$	635,689		$	592,262		$	586,463		$	647,602
Loans held for sale		32,751			38,340			43,919			40,992
Loans held in portfolio, net of unearned discount		1,128,293			1,078,947			1,069,453			1,002,688
Total earning assets		1,801,205			1,721,618			1,726,087			1,697,947
Total assets from continuing operations		1,968,779			1,896,043			1,892,751			1,859,330
Total assets		1,968,779			1,901,126			1,892,751			1,944,776
Demand deposits		444,233			448,147			444,672			439,064
Savings, NOW and money market deposits		513,249			447,387			498,827			434,167
Time deposits		548,180			536,175			556,869			517,166
Customer repurchase agreements		83,325			94,305			80,649			86,418
Other short-term borrowings		102,287			81,971			50,924			168,786
Long-term borrowings		57,513			45,774			44,130			59,938
Shareholders’ equity (2)		119,718			138,201			124,140			143,178
ASSET QUALITY HIGHLIGHTS (1)
Period End
Net charge-offs	$	1,178		$	1,487		$	5,784		$	4,774
Nonperforming loans		6,383			5,861			6,383			5,861
Other real estate owned		1,670			2,243			1,670			2,243
Nonperforming assets		8,053			8,104			8,053			8,104
Nonperforming loans/loans (3)		0.53	%		0.51	%		0.53	%		0.51	%
Nonperforming assets/assets		0.40	%		0.43	%		0.40	%		0.43	%
Allowance for loan losses/loans (4)		1.27	%		1.46	%		1.27	%		1.46	%
Allowance for loan losses/ nonperforming loans		236.33	%		277.90	%		236.33	%		277.90	%
Capital Ratios (2)
Tier 1 risk based		9.76	%		11.44	%		9.76	%		11.44	%
Total risk based		10.87	%		12.69	%		10.87	%		12.69	%
Leverage		6.88	%		7.79	%		6.88	%		7.79	%
Book value per common share (2)	$	6.79		$	7.11		$	6.79		$	7.11

(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.

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

	December 31,
	2007		2006
ASSETS
Cash and due from banks	$	66,413	$	50,058
Interest-bearing deposits with other banks		980		1,261
Federal Funds Sold		0		20,000
Investment securities
Available for sale (at estimated market value)		263,380		148,421
Held to maturity (at amortized cost)		361,861		420,903
Total investment securities		625,241		569,324
Loans held for sale		23,756		33,320
Loans held in portfolio, net of unearned discounts		1,187,124		1,112,602
Less allowance for loan losses		15,085		16,288
Loans, net		1,172,039		1,096,314
Customers’ liability under acceptances		201		98
Goodwill		22,901		22,862
Premises and equipment, net		11,179		11,324
Other real estate		1,670		2,243
Accrued interest receivable		7,081		5,845
Bank owned life insurance		29,041		27,949
Other assets		52,147		43,696
Total assets from continuing operations		2,012,649		1,884,294
Assets — discontinued operations		0		1,663
	$	2,012,649	$	1,885,957
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits
Demand	$	535,351	$	546,443
Savings, NOW and money market		467,446		447,601
Time		524,189		527,986
Total deposits		1,526,986		1,522,030
Securities sold under agreements to repurchase — customers		60,054		52,803
Securities sold under agreements to repurchase — dealers		10,200		0
Federal funds purchased		65,000		0
Commercial paper		20,879		27,562
Short-term borrowings — FHLB		45,000		0
Short-term borrowings — other		4,285		3,412
Long-term borrowings — FHLB		40,000		20,000
Long-term borrowings — subordinated debentures		25,774		25,774
Acceptances outstanding		201		98
Accrued expenses and other liabilities		93,200		101,679
Liabilities — discontinued operations		0		336
Total liabilities		1,891,579		1,753,694
Shareholders’ equity		121,070		132,263
	$	2,012,649	$	1,885,957
MEMORANDA
Available for sale securities — amortized cost	$	265,935	$	152,195
Held to maturity securities — estimated market value		359,725		411,651
Shares outstanding
Common issued		21,278,531		21,177,084
Common in treasury		3,459,302		2,572,368

 Page 9 of 16

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

 

	Three Months Ended December 31,					Twelve Months Ended December 31,
	2007		2006			2007			2006
INTEREST INCOME
Loans	$	23,259	$	23,313		$	92,255		$	86,882
Investment securities — available for sale		3,480		1,828			9,139			7,909
Investment securities — held to maturity		4,406		4,970			18,705			21,496
Federal funds sold		6		108			1,236			196
Deposits with other banks		26		30			117			103
Total interest income		31,177		30,249			121,452			116,586
INTEREST EXPENSE
Savings, NOW and money market deposits		3,115		2,722			13,083			8,584
Time deposits		6,093		6,081			25,680			20,427
Securities sold u/a/r — customers		811		1,065			3,392			3,501
Securities sold u/a/r — dealers		309		297			309			3,739
Federal funds purchased		323		78			430			769
Commercial paper		277		467			1,350			2,020
Short-term borrowings — FHLB		283		235			336			1,796
Short-term borrowings — other		18		7			66			30
Long-term borrowings — FHLB		341		225			820			1,569
Long-term subordinated debentures		524		524			2,094			2,094
Total interest expense		12,094		11,701			47,560			44,529
Interest expense allocated to discontinued operations		0		0			0			(2,508	)
Total interest expense-continuing operations		12,094		11,701			47,560			42,021
Net interest income		19,083		18,548			73,892			74,565
Provision for loan losses		1,400		1,250			5,853			4,503
Net interest income after provision for loan losses		17,683		17,298			68,039			70,062
NONINTEREST INCOME
Accounts receivable management/ factoring commissions and other fees		3,999		4,059			15,536			13,282
Service charges on deposit accounts		1,274		1,367			5,588			5,404
Other customer related service charges and fees		780		1,049			3,044			3,661
Mortgage banking income		2,630		2,581			8,893			9,696
Trust fees		153		154			551			591
Bank owned life insurance income		274		272			1,092			985
Securities gains/(losses)		191		2			188			(443	)
Other income		330		133			832			482
Total noninterest income		9,631		9,617			35,724			33,658
NONINTEREST EXPENSES
Salaries		10,738		10,127			36,797			35,700
Employee benefits		1,667		1,358			9,506			9,424
Total personnel expense		12,405		11,485			46,303			45,124
Occupancy and equipment expenses, net		2,401		2,567			10,354			9,899
Advertising and marketing		923		1,075			3,897			3,855
Professional fees		1,832		2,318			6,666			6,454
Communications		486		491			1,941			1,823
Other expenses		2,428		2,636			10,648			10,200
Total noninterest expenses		20,475		20,572			79,809			77,355
Income from continuing operations before income taxes		6,839		6,343			23,954			26,365
Provision for income taxes at normal effective rates		2,649		2,234			8,901			9,814
Income from continuing operations after normalized taxes		4,190		4,109			15,053			16,551
Reversal of tax reserves		0		0			341			4,447
Income from continuing operations		4,190		4,109			15,394			20,998
Discontinued operations:
Income/(Loss), net of taxes		0		(192	)		(795	)		(603	)
Loss on sale, net of taxes		0		(31	)		0			(9,635	)
Net income	$	4,190	$	3,886		$	14,599		$	10,760

 Page 10 of 16

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,
	2007		2006		2007		2006
Average number of common shares outstanding
Basic		17,807,998		18,685,233		18,209,740		18,734,610
Diluted		18,131,146		19,192,559		18,531,546		19,265,093
Income from continuing operations, per average common share
Basic	$	0.24	$	0.22	$	0.85	$	1.12
Diluted		0.23		0.21		0.83		1.09
Income from continuing operations, after normalized taxes, per average common share
Basic		0.24		0.23		0.83		0.88
Diluted		0.23		0.23		0.81		0.86
Net income per average common share
Basic		0.24		0.20		0.80		0.57
Diluted		0.23		0.20		0.79		0.56
Dividends per common share		0.19		0.19		0.76		0.76

 Page 11 of 16

STERLING BANCORP
Consolidated Statements of Comprehensive Income /(Loss)
(Unaudited)

(in thousands)

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2007			2006			2007			2006
Net income	$	4,190		$	3,886		$	14,599		$	10,760
Other comprehensive income/(loss), net of tax:
Unrealized holding gains/(losses) arising during the period		369			284			623			(56	)
Reclassification adjustment for gains/(losses) included in net income		106			(1	)		106			243
Amortization of:
Prior service cost		12			0			55			0
Net actuarial losses		235			0			843			0
Pension liability adjustment		(596	)		(5,459	)		(596	)		(5,467	)
Comprehensive income/(loss)	$	4,316		$	(1,290	)	$	15,630		$	5,480

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

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2007			2006			2007			2006
Balance, at beginning of period	$	119,935		$	140,425		$	132,263		$	146,998
Net income for period		4,190			3,886			14,599			10,760
Common shares issued under stock incentive plan and related tax benefits		202			22			1,010			1,757
Purchase of common shares for treasury		0			(2,021	)		(13,622	)		(5,831	)
Cash dividends-Common shares		(3,383	)		(3,540	)		(13,755	)		(14,216	)
Surrender of shares issued under incentive compensation plan		0			0			(456	)		(614	)
Amortization of unearned compensation		0			0			0			22
Change in net unrealized holding gains/(losses) on available for sale securities		369			284			623			(56	)
Reclassification adjustment for gains/(losses) included in net income		106			(1	)		106			243
Initial application of fas 158		0			(1,333	)		0			(1,333	)
Amortization of:
Prior service cost		12			0			55			0
Net actuarial losses		235			0			843			0
Pension liability adjustment		(596	)		(5,459	)		(596	)		(5,467	)
Balance, at end of period	$	121,070		$	132,263		$	121,070		$	132,263

Page 12 of 16

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

	Three Months Ended
	December 31, 2007								December 31, 2006
	AVERAGE					AVERAGE			AVERAGE					AVERAGE
	BALANCE			INTEREST		RATE			BALANCE			INTEREST		RATE
Assets
Interest-bearing deposits with other banks	$	3,929		$	26		2.62	%	$	3,319		$	30		3.58	%
Investment securities — available for sale		243,313			3,298		5.42			133,622			1,610		4.82
Investment securities — held to maturity		372,972			4,406		4.73			436,056			4,970		4.56
Investment securities — tax exempt [2]		19,404			299		6.13			22,584			359		6.31
Total investment securities		635,689			8,003		5.03			592,262			6,939		4.68
Federal funds sold		543			6		4.40			8,750			108		4.83
Loans, net of unearned discount [3]		1,161,044			23,259		8.34			1,117,287			23,313		8.75
Total Interest-Earning Assets [2]		1,801,205			31,294		7.11	%		1,721,618			30,390		7.25	%
Cash and due from banks		62,573								76,505
Allowance for loan losses		(15,604	)							(17,193	)
Goodwill		22,901								22,843
Other		97,704								92,270
Assets — discontinued operations		0								5,083
Total Assets	$	1,968,779							$	1,901,126
Liabilities and Shareholders’ Equity
Interest-bearing deposits
Domestic
Savings	$	17,761			23		0.51	%	$	20,363			25		0.49	%
NOW		241,178			1,414		2.33			220,863			1,265		2.27
Money market		254,310			1,678		2.62			206,161			1,432		2.76
Time		547,605			6,092		4.41			534,389			6,076		4.51
Foreign
Time		575			1		1.09			1,786			5		1.02
Total Interest-Bearing Deposits		1,061,429			9,208		3.44			983,562			8,803		3.55
Borrowings
Securities sold u/a/r — customers		83,325			811		3.86			94,305			1,065		4.48
Securities sold u/a/r — dealers		25,670			309		4.78			21,897			297		5.39
Federal funds purchased		28,152			323		4.49			5,761			78		5.26
Commercial paper		22,758			277		4.82			36,568			467		5.06
Short-term borrowings — FHLB		23,913			283		4.69			17,174			235		5.44
Short-term borrowings — other		1,794			18		4.13			571			7		5.06
Long-term borrowings — FHLB		31,739			341		4.31			20,000			225		4.49
Long-term borrowings — sub debt		25,774			524		8.38			25,774			524		8.38
Total Borrowings		243,125			2,886		4.73			222,050			2,898		5.20
Interest-bearing liabilities allocated to discontinued operations		0			0		0.00			0			0		0.00
Total Interest-Bearing Liabilities		1,304,554			12,094		3.68	%		1,205,612			11,701		3.86	%
Noninterest-bearing demand deposits		444,233								448,147
Other liabilities		100,274								107,626
Liabilities — discontinued operations		0								1,540
Total Liabilities		1,849,061								1,762,925
Shareholders’ equity		119,718								138,201
Total Liabilities and Shareholders’ Equity	$	1,968,779							$	1,901,126
Net interest income/spread [2]					19,200		3.43	%					18,689		3.39	%
Net yield on interest-earning assets							4.32	%							4.41	%
Less: Tax-equivalent adjustment					117								141
Net interest income				$	19,083							$	18,548

[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 16

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

	Twelve Months Ended
	December 31, 2007								December 31, 2006
	AVERAGE					AVERAGE			AVERAGE						AVERAGE
	BALANCE			INTEREST		RATE			BALANCE			INTEREST			RATE
Assets
Interest-bearing deposits with other banks	$	3,033		$	117		3.86	%	$	2,624		$	103			4.48	%
Investment securities — available for sale		165,289			8,379		5.07			146,820			6,840			4.66
Investment securities — held to maturity		401,212			18,705		4.66			473,608			21,496			4.54
Investment securities — tax exempt [2]		19,962			1,250		6.26			27,174			1,760			6.47
Total investment securities		586,463			28,334		4.83			647,602			30,096			4.65
Federal funds sold		23,219			1,236		5.32			4,041			196			4.84
Loans, net of unearned discount [3]		1,113,372			92,255		8.83			1,043,680			86,882			8.97
Total Interest-Earning Assets [2]		1,726,087			121,942		7.36	%		1,697,947			117,277			7.23	%
Cash and due from banks		66,384								64,598
Allowance for loan losses		(16,233	)							(16,741	)
Goodwill		22,885								22,714
Other		93,628								90,812
Assets — discontinued operations		0								85,446
Total Assets	$	1,892,751							$	1,944,776
Liabilities and Shareholders’ Equity
Interest-bearing deposits
Domestic
Savings	$	19,618			101		0.51	%	$	23,050			101			0.44	%
NOW		237,731			5,903		2.48			197,587			3,787			1.92
Money market		241,478			7,079		2.93			213,530			4,696			2.20
Time		556,295			25,674		4.62			514,452			20,399			3.97
Foreign
Time		574			6		1.09			2,714			28			1.03
Total Interest-Bearing Deposits		1,055,696			38,763		3.67			951,333			29,011			3.05
Borrowings
Securities sold u/a/r — customers		80,649			3,392		4.21			86,418			3,501			4.05
Securities sold u/a/r — dealers		6,470			309		4.78			74,057			3,739			5.05
Federal funds purchased		9,281			430		4.63			15,133			769			5.08
Commercial paper		26,731			1,350		5.05			44,539			2,020			4.53
Short-term borrowings — FHLB		7,082			336		4.74			34,444			1,796			5.21
Short-term borrowings — other		1,360			66		4.87			613			30			4.96
Long-term borrowings — FHLB		18,356			820		4.47			34,164			1,569			4.59
Long-term borrowings — sub debt		25,774			2,094		8.38			25,774			2,094			8.38
Total Borrowings		175,703			8,797		5.03			315,142			15,518			4.94
Interest-bearing liabilities allocated to discontinued operations		0			0		0.00			(78,054	)		(2,508	)		3.17
Total Interest-Bearing Liabilities		1,231,399			47,560		3.86	%		1,188,421			42,021			3.54	%
Noninterest-bearing demand deposits		444,672								439,064
Other liabilities		92,540								95,302
Liabilities — discontinued operations		0								78,811
Total Liabilities		1,768,611								1,801,598
Shareholders’ equity		124,140								143,178
Total Liabilities and Shareholders’ Equity	$	1,892,751							$	1,944,776
Net interest income/spread [2]					74,382		3.50	%					75,256			3.69	%
Net yield on interest-earning assets							4.49	%								4.64	%
Less: Tax-equivalent adjustment					490								691
Net interest income				$	73,892							$	74,565

[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 14 of 16

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

	Increase/(Decrease)
	Three Months Ended
	December 31, 2007
	Volume			Rate			Net [2]
INTEREST INCOME
Interest-bearing deposits with other banks	$	5		$	(9	)	$	(4	)
Investment securities — available for sale		1,466			222			1,688
Investment securities — held to maturity		(746	)		182			(564	)
Investment securities — tax exempt		(50	)		(10	)		(60	)
Total investment securities		670			394			1,064
Federal funds sold		(94	)		(8	)		(102	)
Loans, net of unearned discounts [3]		1,027			(1,081	)		(54	)
TOTAL INTEREST INCOME	$	1,608		$	(704	)	$	904
INTEREST EXPENSE
Interest-bearing deposits
Domestic
Savings	$	(3	)	$	1		$	(2	)
NOW		116			33			149
Money market		322			(76	)		246
Time		151			(135	)		16
Foreign
Time		(4	)		0			(4	)
Total interest-bearing deposits		582			(177	)		405
Borrowings
Securities sold under agreements to repurchase — customers		(116	)		(138	)		(254	)
Securities sold under agreements to repurchase — dealers		48			(36	)		12
Federal funds purchased		257			(12	)		245
Commercial paper		(169	)		(21	)		(190	)
Short-term borrowings — FHLB		83			(35	)		48
Short-term borrowings — other		12			(1	)		11
Long-term borrowings — FHLB		126			(10	)		116
Long-term borrowings — subordinated debentures		0			0			0
Total borrowings		241			(253	)		(12	)
Less: interest-bearing liabilities allocated to discontinued operations		0			0			0
TOTAL INTEREST EXPENSE	$	823		$	(430	)	$	393
NET INTEREST INCOME	$	785		$	(274	)	$	511

[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 16

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

	Increase/(Decrease)
	Twelve Months Ended
	December 31, 2007
	Volume			Rate			Net [2]
INTEREST INCOME
Interest-bearing deposits with other banks	$	24		$	(10	)	$	14
Investment securities — available for sale		906			633			1,539
Investment securities — held to maturity		(3,348	)		557			(2,791	)
Investment securities — tax exempt		(456	)		(54	)		(510	)
Total investment securities		(2,898	)		1,136			(1,762	)
Federal funds sold		1,019			21			1,040
Loans, net of unearned discounts [3]		6,724			(1,351	)		5,373
TOTAL INTEREST INCOME	$	4,869		$	(204	)	$	4,665
INTEREST EXPENSE
Interest-bearing deposits
Domestic
Savings	$	(15	)	$	15		$	0
NOW		869			1,247			2,116
Money market		674			1,709			2,383
Time		1,751			3,524			5,275
Foreign
Time		(24	)		2			(22	)
Total interest-bearing deposits		3,255			6,497			9,752
Borrowings
Securities sold under agreements to repurchase — customers		(242	)		133			(109	)
Securities sold under agreements to repurchase — dealers		(3,240	)		(190	)		(3,430	)
Federal funds purchased		(276	)		(63	)		(339	)
Commercial paper		(881	)		211			(670	)
Short-term borrowings — FHLB		(1,311	)		(149	)		(1,460	)
Short-term borrowings — other		37			(1	)		36
Long-term borrowings — FHLB		(709	)		(40	)		(749	)
Long-term borrowings — subordinated debentures		0			0			0
Total borrowings		(6,622	)		(99	)		(6,721	)
Less: interest-bearing liabilities allocated to discontinued operations		2,508			0			2,508
TOTAL INTEREST EXPENSE	$	(859	)	$	6,398		$	5,539
NET INTEREST INCOME	$	5,728		$	(6,602	)	$	(874	)

[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 16 of 16