Sterling Bancorp 8-K Sterling Bancorp Reports 15% Rise In E.p.s. for 2008 Second Quarter

Exhibit 99.1

John Tietjen	Edward Nebb
Chief Financial Officer	Investor Relations
Sterling Bancorp	Comm-Counsellors, LLC
john.tietjen@sterlingbancorp.com	enebbt@optonline.net
212.757.8035	203.972.8350

STERLING BANCORP REPORTS 15% RISE IN E.P.S. FOR 2008
SECOND QUARTER

Growth in Earning Assets, Higher Net Interest Margin and Sustained Credit Quality are Main
Factors Driving Increased Profitability

New York, NY, July 24, 2008 — Sterling Bancorp (NYSE: STL), the parent company of New York City-based Sterling National Bank, today reported strong results for the second quarter and six months ended June 30, 2008, highlighted by double-digit growth in net income, higher loan balances and sound credit quality.

Net income for the 2008 second quarter rose to $4.2 million or $0.23 per diluted share, an EPS increase of 15% compared with $3.9 million or $0.20 per diluted share a year ago. For the first half of this year, net income was $8.2 million or $0.45 per diluted share, versus $7.3 million or $0.39 per share for the first six months of 2007.

Sterling attributed its strong performance, despite the challenging financial markets, to a well-established focus on serving business customers in the NY-Metropolitan region and beyond, prudent underwriting practices and avoidance of high-risk asset classes.

     Second Quarter Highlights:

• Earnings Growth- Diluted EPS of $0.23 was 15% higher than the same quarter of last year and also was up from the first quarter of 2008.

• Sound Asset Quality- The ratio of nonperforming loans to total loans at June 30, 2008 was 0.58%, compared with 0.50% at June 30, 2007.

• HigherNetInterest Margin- The net interest margin, on a tax-equivalent basis, rose by 14 basis points to 4.49%, from 4.35% a year ago.

• Increased Loan Volume- Loans held in portfolio averaged $1,121.9 million for the recent quarter, up approximately 7% from a year ago.

• Strong Core Deposits- Demand deposits averaged $444.7 million for the quarter, equivalent to 31% of total deposits.

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“Our robust performance for the 2008 second quarter contrasted sharply with the difficulties faced by many financial institutions in today’s economic climate,” stated Louis J. Cappelli, Sterling’s Chairman and Chief Executive Officer. “Earnings per share not only increased 15% compared to the second quarter a year ago, but also rose sequentially from the first quarter of 2008. The positive trend in our business through the first half of this year is encouraging, and reinforces our belief that Sterling is well-positioned to meet the challenges of the current market environment.”

“We are pleased that credit quality has remained strong and compares favorably to the overall banking industry,” Mr. Cappelli added. “For example, our ratio of non-accrual loans to total loans remains well below the peer group average. We believe that our dedication to responsible, prudent lending standards has enabled us to avoid many of the credit quality problems that are making headlines today. It is worth noting that our loan portfolio reflects limited exposure to construction lending, subprime and Alt-A mortgage loans, consumer debt, home equity lending products, credit card receivables, auto loans or other asset classes that have recently generated losses for some institutions. We believe our traditional emphasis on conservative lending practices will remain a source of strength and stability in a challenging business environment.”

“We believe in Sterling’s potential for continued strong performance this year. Our time-tested business model is based on serving solid businesses in our market while maintaining conservative credit standards and a disciplined approach to asset and liability pricing. We believe this model is particularly well-suited to the present turbulent economic situation and will continue to serve us well,” Mr. Cappelli noted. “Customers have responded favorably to our combination of financial strength, sound liquidity and commitment to service. As a result, we have grown our average loans held in portfolio nearly 7% for the first half of 2008 and are continuing to experience an active pipeline. While some competing institutions have had to withdraw from providing credit due to capital constraints, insufficient liquidity or asset-quality issues, we believe Sterling has the capacity to take advantage of opportunities presented by the current market disruption.”

Second Quarter 2008 Financial Results

Net income was $4.2 million or $0.23 per diluted share for the 2008 second quarter, an increase of 15% in EPS compared with $3.9 million or $0.20 per diluted share for the second quarter of 2007.

Higher net interest income was the main driver of the earnings increase, rising 18% to $21.6 million on a tax-equivalent basis for the second quarter of 2008. Higher average loan and investment securities balances, as well as the Company’s strategy to employ cost-effective wholesale funding in lieu of higher-priced certificates of deposit, contributed to the growth in net interest income and more than offset the lower yields on loans due to the current interest rate environment.

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Reflecting the above factors, the net interest margin rose to 4.49% for the 2008 second quarter versus 4.35% for the same period last year.

Noninterest income for the second quarter of 2008 was $8.6 million, compared to $8.9 million in the same period last year. Excluding an OTTI charge for one investment grade trust preferred security, noninterest income increased $164,000. The charge, which resulted from management’s regular review of the valuation of the investment portfolio, amounted to approximately $507,000.

Noninterest expenses for the 2008 second quarter were $21.1 million, compared to $20.1 million for the same quarter last year. The increase was primarily due to initiatives to support the growth of the Company’s business, particularly in the area of marketing and advertising, along with higher personnel and occupancy costs.

The provision for income taxes was $2.5 million and $2.2 million for the second quarter of 2008 and 2007, respectively.

First Half 2008 Financial Results

Net income was $8.2 million or $0.45 per diluted share for the first half of 2008, an EPS increase of 15% compared with $7.3 million or $0.39 per share for the same period of 2007.

Net interest income was $41.6 million on a tax-equivalent basis for the first half of 2008, up 16% from the same period of 2007. The increase primarily reflected higher average balances of loans and investment securities coupled with lower funding costs, which more than offset lower yields on loans. The net interest margin was 4.49% for the first six months of 2008 compared with 4.34% for the same period last year.

Noninterest income was $17.2 million for the first half of 2008, compared to $18.1 million in the same period last year. The decrease primarily reflected the OTTI charge taken in the 2008 second quarter.

Noninterest expenses for the 2008 first half were $41.3 million, compared to $39.7 million for the first half of last year. The increase was primarily due to higher personnel and occupancy costs.

The provision for income taxes was $4.9 million for the first half of 2008, compared to $4.4 million in the year-ago period.

Earning Assets and Deposits

Sterling experienced solid demand for a wide range of its lending products and services from both existing and new customers. As a result, average loans held in portfolio, net of unearned discounts, increased 6.6% from a year ago, to $1,121.9 million for the quarter ended June 30, 2008. The vast majority of the Company’s loans are secured by customer assets.

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Investment securities averaged $781.2 million for the second quarter of 2008, up from $554.6 million a year ago, primarily due to the implementation of asset/liability management strategies designed to capitalize on current market conditions. The Company’s investment securities portfolio does not contain any common stock, preferred shares or subordinated notes of Fannie Mae or Freddie Mac.

Demand deposits averaged $444.7 million for the 2008 second quarter, virtually even with $444.4 million a year earlier. Demand deposits represented 31% of total deposits at June 30, 2008, one of the highest ratios of demand to total deposits in the industry. The Company has no brokered certificates of deposit.

Asset Quality Highlights

The ratio of nonperforming assets to total assets was 0.43% at June 30, 2008, compared to 0.42% at June 30, 2007. Nonperforming loans represented 0.58% of total loans at June 30, 2008, compared to 0.50% a year earlier. The allowance for loan losses as a percentage of total loans held in portfolio was 1.30% at June 30, 2008, compared to 1.39% at June 30, 2007.

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 other factors.

The provision for loan losses was $2.2 million for the second quarter of 2008, compared to the $2.0 million provision recorded in the first quarter of 2008. In the 2007second quarter, the provision was $1.1 million.

Capital Management and Dividends

The Company’s capital ratios exceeded the requirements for a well-capitalized institution for regulatory purposes. Its Tier 1 risk-weighted capital ratio was 9.47% and its Tier 1 leverage ratio was 6.51 % at June 30, 2008.

“We believe we have ample capital to execute our business plan and support our growth,” Mr. Cappelli concluded.

Sterling paid a cash dividend of $0.19 per common share on June 30, 2008, to shareholders of record as of June 15, 2008. The Company has been distributing cash dividends for 250 consecutive quarters over more than 62 years.

Page 4 of 15

Conference Call

Sterling Bancorp will host a teleconference call for the financial community on July 24, 2008 at 10:00 a.m. Eastern Time to discuss the 2008 second quarter financial results. The public is invited to listen to this conference call by dialing 800-288-8968 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 Time on July 24, 2008 until 11:59 p.m. Eastern Time on August 7, 2008. To access the replay by telephone, interested parties may dial 800-475-6701 and enter the access code 954381.

About Sterling Bancorp

Sterling Bancorp (NYSE: STL) is a New York-based banking and financial services company that serves the needs of businesses, professionals and individuals. With assets exceeding $2.1 billion, Sterling offers a broad array of products and services, combined with a unique high-touch approach to customer service. The Company’s principal banking subsidiary, Sterling National Bank, with offices in New York City and Queens, Nassau and Westchester counties, was founded in 1929.

Known for its focus on business customers, Sterling offers such services as working capital lines, asset-based financing, factoring and accounts receivable management, payroll funding and processing, equipment leasing and financing, commercial and residential mortgages, international trade financing, cash management, a wide array of deposit products, trust and estate administration, and investment management services.

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, financial position or dividends, and plans and objectives for future operations, statements concerning the Company’s active loan pipeline and potential for continued strong performance this year and the Company’s belief that it is well-positioned to meet the challenges of the current market environment, that its traditional emphasis on conservative lending practices will remain a source of strength and stability in a challenging business environment, that its business model is particularly well-suited to the present turbulent economic situation and will continue to serve the Company well, that it has the capacity to take advantage of opportunities presented by the current market disruption and that it has ample capital to execute on its business plan and support its growth, 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, 2007.

# # #

Page 5 of 15

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2008			2007			2008			2007
OPERATING HIGHLIGHTS (1)
Interest income	$	29,713		$	29,928		$	59,482		$	59,035
Interest expense		8,241			11,720			18,175			23,324
Provision for loan losses		2,200			1,078			4,150			2,328
Noninterest income		8,572			8,915			17,244			18,098
Noninterest expenses		21,130			20,094			41,296			39,732
Income from continuing operations, before income taxes		6,714			5,951			13,105			11,749
Provision for income taxes		2,544			2,160			4,933			4,386
Income from continuing operations		4,170			3,791			8,172			7,363
Income/(Loss) from discontinued operations, net of income taxes		0			71			0			(21	)
Net income		4,170			3,862			8,172			7,342
Net income per average common share:
Basic		0.23			0.21			0.46			0.40
Diluted		0.23			0.20			0.45			0.39
Income from continuing operations per average common share:
Basic		0.23			0.21			0.46			0.40
Diluted		0.23			0.20			0.45			0.39
Cash dividends declared		0.19			0.19			0.38			0.38
Common shares outstanding:
Period end		17,989			18,018			17,989			18,018
Average Basic		17,989			18,439			17,950			18,525
Average Diluted		18,122			18,857			18,239			18,995
Return on average assets (2)		0.80	%		0.82	%		0.80	%		0.80	%
Return on average tangible equity (3)		17.14	%		14.44	%		16.84	%		13.95	%
Return on average stated equity (4)		13.89	%		11.87	%		13.64	%		11.48	%
Net interest spread, tax-equivalent basis		3.95	%		3.30	%		3.87	%		3.29	%
Net interest margin, tax-equivalent basis		4.49	%		4.35	%		4.49	%		4.34	%

(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.

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,
	2008			2007			2008			2007
BALANCE SHEET HIGHLIGHTS (1)
Period End Balances
Investment securities	$	767,806		$	532,307		$	767,806		$	532,307
Loans held for sale		24,410			46,357			24,410			46,357
Loans held in portfolio, net of unearned discount		1,193,983			1,121,944			1,193,983			1,121,944
Total earning assets		1,989,580			1,711,785			1,989,580			1,711,785
Allowance for loan losses		15,480			15,582			15,480			15,582
Total assets from continuing operations		2,162,140			1,885,752			2,162,140			1,885,752
Total assets		2,162,140			1,886,978			2,162,140			1,886,978
Demand deposits		492,928			520,433			492,928			520,433
Savings, NOW and money market deposits		486,516			476,879			486,516			476,879
Time deposits		459,039			536,516			459,039			536,516
Customer repurchase agreements		64,758			76,530			64,758			76,530
Other short-term borrowings		261,090			29,162			261,090			29,162
Long-term borrowings		185,774			35,774			185,774			35,774
Shareholders’ equity (2)		119,725			121,913			119,725			121,913
Average Balances
Investment securities	$	781,249		$	554,643		$	750,868		$	566,806
Loans held for sale		31,193			52,281			27,291			45,790
Loans held in portfolio, net of unearned discount		1,121,929			1,052,427			1,101,506			1,033,359
Total earning assets		1,937,202			1,690,199			1,882,812			1,686,601
Total assets from continuing operations		2,097,198			1,852,205			2,051,618			1,847,917
Total assets		2,097,198			1,853,533			2,051,618			1,849,132
Demand deposits		444,744			444,369			442,800			439,609
Savings, NOW and money market deposits		471,182			487,966			468,027			469,080
Time deposits		508,415			562,417			529,903			564,572
Customer repurchase agreements		89,187			76,091			85,824			85,517
Other short-term borrowings		180,870			30,843			157,355			30,298
Long-term borrowings		181,928			37,422			148,082			41,575
Shareholders’ equity (2)		120,744			128,150			120,512			129,293
ASSET QUALITY HIGHLIGHTS (1)
Period End
Net charge-offs	$	1,611		$	990		$	3,109		$	2,481
Nonperforming loans		7,051			5,854			7,051			5,854
Other real estate owned		2,252			2,057			2,252			2,057
Nonperforming assets		9,303			7,911			9,303			7,911
Nonperforming loans/loans (3)		0.58	%		0.50	%		0.58	%		0.50	%
Nonperforming assets/assets		0.43	%		0.42	%		0.43	%		0.42	%
Allowance for loan losses/loans (4)		1.30	%		1.39	%		1.30	%		1.39	%
Allowance for loan losses/ nonperforming loans		219.54	%		266.18	%		219.54	%		266.18	%
Capital Ratios (2)
Tier 1 risk based		9.47	%		10.63	%		9.47	%		10.63	%
Total risk based		10.57	%		11.84	%		10.57	%		11.84	%
Leverage		6.51	%		7.45	%		6.51	%		7.45	%
Book value per common share (2)	$	6.66		$	6.77		$	6.66		$	6.77

(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)

	June 30,
	2008		2007
ASSETS
Cash and due from banks	$	49,995	$	70,030
Interest-bearing deposits with other banks		881		1,177
Federal Funds Sold		2,500		10,000
Investment securities
Available for sale (at estimated market value)		434,700		145,900
Held to maturity (at amortized cost)		333,106		386,407
Total investment securities		767,806		532,307
Loans held for sale		24,410		46,357
Loans held in portfolio, net of unearned discounts		1,193,983		1,121,944
Less allowance for loan losses		15,480		15,582
Loans held in portfolio, net		1,178,503		1,106,362
Customers’ liability under acceptances		328		34
Goodwill		22,901		22,901
Premises and equipment, net		10,869		11,510
Other real estate		2,252		2,057
Accrued interest receivable		9,877		4,894
Bank owned life insurance		29,603		28,488
Other assets		62,215		50,861
	$	2,162,140	$	1,886,978
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits
Demand	$	492,928	$	520,433
Savings, NOW and money market		486,516		476,879
Time		459,039		536,516
Total deposits		1,438,483		1,533,828
Securities sold under agreements to repurchase — customers		64,758		76,530
Securities sold under agreements to repurchase — dealers		72,833		0
Federal funds purchased		70,000		0
Commercial paper		20,544		27,444
Short-term borrowings — FHLB		77,000		0
Short-term borrowings — other		20,713		1,718
Long-term borrowings — FHLB		160,000		10,000
Long-term borrowings — subordinated debentures		25,774		25,774
Acceptances outstanding		328		34
Accrued expenses and other liabilities		91,982		89,737
Total liabilities		2,042,415		1,765,065
Shareholders’ equity		119,725		121,913
	$	2,162,140	$	1,886,978
MEMORANDA
Available for sale securities — amortized cost	$	443,171	$	151,462
Held to maturity securities — estimated market value		331,037		375,158
Shares outstanding
Common issued		21,813,131		21,262,170
Common in treasury		3,824,161		3,244,502

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2008			2007			2008			2007
INTEREST INCOME
Loans	$	20,001		$	23,124		$	40,821		$	44,851
Investment securities — available for sale		5,670			1,701			10,382			3,546
Investment securities — held to maturity		4,034			4,699			8,259			9,568
Federal funds sold		1			368			1			1,003
Deposits with other banks		7			36			19			67
Total interest income		29,713			29,928			59,482			59,035
INTEREST EXPENSE
Savings, NOW and money market deposits		1,089			3,280			2,699			6,139
Time deposits		4,034			6,581			9,372			13,129
Securities sold u/a/r — customers		442			805			1,088			1,880
Securities sold u/a/r — dealers		416			0			733			0
Federal funds purchased		217			24			579			36
Commercial paper		117			355			312			705
Short-term borrowings — FHLB		311			0			526			0
Short-term borrowings — other		6			15			20			27
Long-term borrowings — FHLB		1,085			136			1,799			361
Long-term subordinated debentures		524			524			1,047			1,047
Total interest expense		8,241			11,720			18,175			23,324
Net interest income		21,472			18,208			41,307			35,711
Provision for loan losses		2,200			1,078			4,150			2,328
Net interest income after provision for loan losses		19,272			17,130			37,157			33,383
NONINTEREST INCOME
Accounts receivable management/ factoring commissions and other fees		3,799			3,821			7,364			7,489
Service charges on deposit accounts		1,331			1,424			2,683			2,906
Other customer related service charges and fees		737			743			1,412			1,433
Mortgage banking income		2,702			2,544			5,201			5,376
Trust fees		124			125			259			266
Bank owned life insurance income		294			287			563			539
Loss on sale of OREO		(75	)		(134	)		(303	)		(180	)
Securities losses		(507	)		(2	)		(507	)		(2	)
Other income		167			107			572			271
Total noninterest income		8,572			8,915			17,244			18,098
NONINTEREST EXPENSES
Salaries		9,491			8,711			18,839			17,920
Employee benefits		2,252			2,475			5,088			4,753
Total personnel expense		11,743			11,186			23,927			22,673
Occupancy and equipment expenses, net		2,774			2,639			5,783			5,347
Advertising and marketing		1,353			1,122			1,988			2,086
Professional fees		1,874			1,951			3,238			3,291
Communications		405			454			861			970
Other expenses		2,981			2,742			5,499			5,365
Total noninterest expenses		21,130			20,094			41,296			39,732
Income from continuing operations before income taxes		6,714			5,951			13,105			11,749
Provision for income taxes		2,544			2,160			4,933			4,386
Income from continuing operations		4,170			3,791			8,172			7,363
Discontinued operations:
Income/(Loss), net of income taxes		0			71			0			(21	)
Net income	$	4,170		$	3,862		$	8,172		$	7,342

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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,
	2008		2007		2008		2007
Average number of common shares outstanding
Basic		17,988,970		18,439,318		17,950,095		18,524,871
Diluted		18,122,247		18,856,903		18,238,860		18,994,625
Income from continuing operations, per average common share
Basic	$	0.23	$	0.21	$	0.46	$	0.40
Diluted		0.23		0.20		0.45		0.39
Net income per average common share
Basic		0.23		0.21		0.46		0.40
Diluted		0.23		0.20		0.45		0.39
Dividends per common share		0.19		0.19		0.38		0.38

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2008			2007			2008			2007
Net income	$	4,170		$	3,862		$	8,172		$	7,342
Other comprehensive (loss)/income, net of tax:
Unrealized holding losses arising during the period		(5,159	)		(1,233	)		(3,804	)		(897	)
Reclassification adjustment for losses included in net income		278			1			278			1
Amortization of:
Prior service cost		9			14			18			27
Net actuarial losses		230			182			461			365
Comprehensive (loss)/income	$	(472	)	$	2,826		$	5,125		$	6,838

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2008			2007			2008			2007
Balance, at beginning of period	$	123,579		$	133,017		$	121,070		$	132,263
Net income for period		4,170			3,862			8,172			7,342
Common shares issued under stock incentive plan and related tax benefits		33			36			6,298			776
Cash dividends-Common shares		(3,415	)		(3,451	)		(6,824	)		(6,993	)
Surrender of shares issued under incentive compensation plan		0			0			(5,218	)		(456	)
Purchase of common shares for treasury		0			(10,515	)		0			(10,515	)
Change in net unrealized holding losses on available for sale securities		(5,159	)		(1,233	)		(3,804	)		(897	)
Reclassification adjustment for losses included in net income		278			1			278			1
Adjustment to retained earnings upon adoption of EITF Issue 06-4 effective January 1, 2008		0			0			(726	)		0
Amortization of:
Prior service cost		9			14			18			27
Net actuarial losses		230			182			461			365
Balance, at end of period	$	119,725		$	121,913		$	119,725		$	121,913

Page 11 of 15

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

	Three Months Ended
	June 30, 2008								June 30, 2007
	AVERAGE					AVERAGE			AVERAGE					AVERAGE
	BALANCE			INTEREST		RATE			BALANCE			INTEREST		RATE
Assets
Interest-bearing deposits with other banks	$	2,474		$	7		1.14	%	$	2,881		$	36		5.11	%
Investment securities — available for sale		417,409			5,462		5.23			127,616			1,510		4.73
Investment securities — held to maturity		341,662			4,034		4.72			407,034			4,699		4.62
Investment securities — tax exempt [2]		22,178			340		6.13			19,993			314		6.30
Total investment securities		781,249			9,836		5.04			554,643			6,523		4.71
Federal funds sold		357			1		1.79			27,967			368		5.20
Loans, net of unearned discount [3]		1,153,122			20,001		7.16			1,104,708			23,124		8.66
Total Interest-Earning Assets [2]		1,937,202			29,845		6.26	%		1,690,199			30,051		7.24	%
Cash and due from banks		47,695								63,451
Allowance for loan losses		(15,948	)							(16,320	)
Goodwill		22,901								22,875
Other		105,348								92,000
Assets — discontinued operations		0								1,328
Total Assets	$	2,097,198							$	1,853,533
Liabilities and Shareholders’ Equity
Interest-bearing deposits
Domestic Savings	$	19,735			17		0.36	%	$	21,149			27		0.51	%
NOW		256,316			542		0.85			245,682			1,572		2.57
Money market		195,131			530		1.09			221,135			1,681		3.05
Time		507,839			4,032		3.19			561,843			6,579		4.70
Foreign
Time		576			2		1.09			574			2		1.09
Total Interest-Bearing Deposits		979,597			5,123		2.10			1,050,383			9,861		3.77
Borrowings
Securities sold u/a/r — customers		89,187			442		1.99			76,091			805		4.24
Securities sold u/a/r — dealers		66,527			416		2.52			0			0		0.00
Federal funds purchased		39,302			217		2.19			1,758			24		5.26
Commercial paper		19,547			117		2.42			27,906			355		5.11
Short-term borrowings — FHLB		53,758			311		2.32			0			0		0.00
Short-term borrowings — other		1,736			6		3.56			1,179			15		5.34
Long-term borrowings — FHLB		156,154			1,085		2.78			11,648			136		4.69
Long-term borrowings — sub debt		25,774			524		8.37			25,774			524		8.38
Total Borrowings		451,985			3,118		2.77			144,356			1,859		5.19
Total Interest-Bearing Liabilities		1,431,582			8,241		2.31	%		1,194,739			11,720		3.94	%
Noninterest-bearing demand deposits		444,744								444,369
Other liabilities		100,128								86,095
Liabilities — discontinued operations		0								180
Total Liabilities		1,976,454								1,725,383
Shareholders’ equity		120,744								128,150
Total Liabilities and Shareholders’ Equity	$	2,097,198							$	1,853,533
Net interest income/spread [2]					21,604		3.95	%					18,331		3.30	%
Net yield on interest-earning assets							4.49	%							4.35	%
Less: Tax-equivalent adjustment					132								123
Net interest income				$	21,472							$	18,208

[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, 2008								June 30, 2007
	AVERAGE					AVERAGE			AVERAGE					AVERAGE
	BALANCE			INTEREST		RATE			BALANCE			INTEREST		RATE
Assets
Interest-bearing deposits with other banks	$	2,968		$	19		1.26	%	$	2,856		$	67		4.76	%
Investment securities — available for sale		381,222			9,996		5.24			131,105			3,149		4.80
Investment securities — held to maturity		348,991			8,259		4.73			415,032			9,568		4.61
Investment securities — tax exempt [2]		20,655			633		6.13			20,669			653		6.37
Total investment securities		750,868			18,888		5.03			566,806			13,370		4.72
Federal funds sold		179			1		1.78			37,790			1,003		5.28
Loans, net of unearned discount [3]		1,128,797			40,821		7.55			1,079,149			44,851		8.74
Total Interest-Earning Assets [2]		1,882,812			59,729		6.50	%		1,686,601			59,291		7.24	%
Cash and due from banks		57,594								65,493
Allowance for loan losses		(15,759	)							(16,596	)
Goodwill		22,901								22,868
Other		104,070								89,551
Assets — discontinued operations		0								1,215
Total Assets	$	2,051,618							$	1,849,132
Liabilities and Shareholders’ Equity
Interest-bearing deposits
Domestic
Savings	$	19,192			33		0.35	%	$	21,026			52		0.50	%
NOW		246,514			1,368		1.12			233,916			2,970		2.56
Money market		202,321			1,298		1.29			214,138			3,117		2.94
Time		529,327			9,369		3.56			563,998			13,126		4.69
Foreign
Time		576			3		1.09			574			3		1.09
Total Interest-Bearing Deposits		997,930			12,071		2.43			1,033,652			19,268		3.76
Borrowings
Securities sold u/a/r — customers		85,824			1,088		2.55			85,517			1,880		4.43
Securities sold u/a/r — dealers		51,277			733		2.88			0			0		0.00
Federal funds purchased		44,129			579		2.60			1,354			36		5.25
Commercial paper		20,349			312		3.09			27,904			705		5.10
Short-term borrowings — FHLB		39,813			526		2.65			0			0		0.00
Short-term borrowings — other		1,787			20		4.56			1,040			27		5.34
Long-term borrowings — FHLB		122,308			1,799		2.94			15,801			361		4.57
Long-term borrowings — sub debt		25,774			1,047		8.38			25,774			1,047		8.38
Total Borrowings		391,261			6,104		3.13			157,390			4,056		5.21
Total Interest-Bearing Liabilities		1,389,191			18,175		2.63	%		1,191,042			23,324		3.95	%
Noninterest-bearing demand deposits		442,800								439,609
Other liabilities		99,115								88,880
Liabilities — discontinued operations		0								308
Total Liabilities		1,931,106								1,719,839
Shareholders’ equity		120,512								129,293
Total Liabilities and Shareholders ’ Equity	$	2,051,618							$	1,849,132
Net interest income/spread [2]					41,554		3.87	%					35,967		3.29	%
Net yield on interest-earning assets							4.49	%							4.34	%
Less: Tax-equivalent adjustment					247								256
Net interest income				$	41,307							$	35,711

[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
	June 30, 2008
	Volume			Rate			Net [2]
INTEREST INCOME
Interest-bearing deposits with other banks	$	(4	)	$	(25	)	$	(29	)
Investment securities — available for sale		3,776			176			3,952
Investment securities — held to maturity		(764	)		99			(665	)
Investment securities — tax exempt		34			(8	)		26
Total investment securities		3,046			267			3,313
Federal funds sold		(220	)		(147	)		(367	)
Loans, net of unearned discounts [3]		1,038			(4,161	)		(3,123	)
TOTAL INTEREST INCOME	$	3,860		$	(4,066	)	$	(206	)
INTEREST EXPENSE
Interest-bearing deposits
Domestic
Savings	$	(2	)	$	(8	)	$	(10	)
NOW		65			(1,095	)		(1,030	)
Money market		(178	)		(973	)		(1,151	)
Time		(587	)		(1,960	)		(2,547	)
Foreign
Time		0			0			0
Total interest-bearing deposits		(702	)		(4,036	)		(4,738	)
Borrowings
Securities sold under agreements to repurchase — customers		120			(483	)		(363	)
Securities sold under agreements to repurchase — dealers		416			0			416
Federal funds purchased		213			(20	)		193
Commercial paper		(86	)		(152	)		(238	)
Short-term borrowings — FHLB		311			0			311
Short-term borrowings — other		1			(10	)		(9	)
Long-term borrowings — FHLB		1,026			(77	)		949
Long-term borrowings — subordinated debentures		0			0			0
Total borrowings		2,001			(742	)		1,259
TOTAL INTEREST EXPENSE	$	1,299		$	(4,778	)	$	(3,479	)
NET INTEREST INCOME	$	2,561		$	712		$	3,273

[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, 2008
	Volume			Rate			Net [2]
INTEREST INCOME
Interest-bearing deposits with other banks	$	3		$	(51	)	$	(48	)
Investment securities — available for sale		6,534			313			6,847
Investment securities — held to maturity		(1,544	)		235			(1,309	)
Investment securities — tax exempt		1			(21	)		(20	)
Total investment securities		4,991			527			5,518
Federal funds sold		(598	)		(404	)		(1,002	)
Loans, net of unearned discounts [3]		2,401			(6,431	)		(4,030	)
TOTAL INTEREST INCOME	$	6,797		$	(6,359	)	$	438
INTEREST EXPENSE
Interest-bearing deposits
Domestic
Savings	$	(5	)	$	(14	)	$	(19	)
NOW		168			(1,770	)		(1,602	)
Money market		(146	)		(1,673	)		(1,819	)
Time		(703	)		(3,054	)		(3,757	)
Foreign
Time		0			0			0
Total interest-bearing deposits		(686	)		(6,511	)		(7,197	)
Borrowings
Securities sold under agreements to repurchase — customers		17			(809	)		(792	)
Securities sold under agreements to repurchase — dealers		733			0			733
Federal funds purchased		570			(27	)		543
Commercial paper		(157	)		(236	)		(393	)
Short-term borrowings — FHLB		526			0			526
Short-term borrowings — other		1			(8	)		(7	)
Long-term borrowings — FHLB		1,609			(171	)		1,438
Long-term borrowings — subordinated debentures		0			0			0
Total borrowings		3,299			(1,251	)		2,048
TOTAL INTEREST EXPENSE	$	2,613		$	(7,762	)	$	(5,149	)
NET INTEREST INCOME	$	4,184		$	1,403		$	5,587

[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