Sterling Bancorp 8-K Sterling Bancorp Reports 11.4% Rise In E.p.s. for 2008

Exhibit 99.1

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

STERLING BANCORP REPORTS 11.4% RISE IN E.P.S. FOR 2008

Strong Year-over-Year Performance Reflects Growth in Earning Assets, Higher
Net Interest Margin and Sustained Credit Quality

New York, NY, January 27, 2009 — Sterling Bancorp (NYSE: STL), the parent company of New York City-based Sterling National Bank, today reported that net income grew to $16.0 million for 2008, from $14.6 million for 2007. Earnings per share on a diluted basis for 2008 rose to $0.88, an increase of 11.4% from $0.79 per share a year ago.

     2008 Highlights:

• Earnings Growth— The 11.4% rise in diluted EPS for 2008 was primarily driven by an increase in net interest income due to higher balances of loans and other interest-earning assets, as well as management’s focus on pricing of assets and liabilities to enhance the net interest margin.

• Strong ROE— Sterling’s return on average tangible equity was 16.52% for 2008.

• Higher Net Interest Margin— The net interest margin, on a tax-equivalent basis, was 4.60%, up 11 basis points from a year ago.

• Increased Loan Volume— Loans held in portfolio averaged $1,141.4 million for 2008, an increase of 6.7% from a year ago.

• Solid Core Deposits— Demand deposits averaged $448.2 million for the year, equivalent to 36.0% of total deposits as of December 31, 2008.

• Sound Asset Quality— The ratio of nonperforming assets to total assets at December 31, 2008 was 0.40%, compared to 0.42% at the end of the third quarter and 0.40% at December 31, 2007.

• Strong Capital Base— Sterling’s capital ratios exceeded regulatory requirements for a well-capitalized institution, with total risk-based capital of 13.56% at December 31, 2008.

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For the fourth quarter of 2008, Sterling’s net income was $4.0 million, compared to $4.2 million for the same period of the prior year. Diluted EPS was $0.22 for the fourth quarter of 2008, compared to $0.23 per diluted share for the 2007 period.

Management Comments

“Sterling’s solid performance during 2008 is particularly noteworthy in light of the dramatic decline in overall economic conditions during the past year and the adverse impact on many financial institutions,” stated Louis J. Cappelli, Sterling’s Chairman and Chief Executive Officer. “We delivered a double-digit percentage increase in earnings per share for the full year and produced solid loan growth by continuing to focus on serving the needs of our marketplace. At the same time, we significantly increased our capital base and preserved our traditionally strong asset quality — both of which are key elements of Sterling’s strength and stability.”

“We have been — and continue to be — an active lender throughout the current economic cycle. As a strong and sound institution, we welcomed the opportunity to participate in the U.S. Treasury’s Capital Purchase Program, which has further enhanced our capacity to make loans, serve the needs of our market and grow our business. In keeping with the spirit and purpose of the program, we have already originated new credits for commercial loans and home mortgages in excess of the Treasury funds we received. A significant percentage of this amount represents new customers, whose previous sources of credit may have been unable or unwilling to meet their needs in this environment. We remain committed to responsibly and prudently serving borrowers and supporting business activity in our market,” Mr. Cappelli said.

“Our Company was founded in 1929 and, as we begin our 80th year in business, we are well acquainted with and prepared for the ups and downs of the economic cycle. Our staying power over eight decades reflects our sharp focus on serving the needs of our marketplace, while maintaining our longstanding rigorous lending and risk management standards. With our conservative investment model, we have largely avoided the large mark-to-market adjustments that have led to sizeable losses at other institutions. In addition, we have a strong capital base and a pool of liquidity that we believe will permit us to withstand economic challenges and pursue opportunities that continue to emerge,” Mr. Cappelli noted.

Full Year 2008 Financial Results

Net income for 2008 was $16.0 million or $0.88 per diluted share, up from $14.6 million or $0.79 per diluted share for 2007. Results for 2007 included a loss on discontinued operations, net of taxes, of $0.8 million.

Net interest income for 2008, on a tax-equivalent basis, was $85.2 million, a 14.6% increase from 2007. The growth in net interest income primarily reflected higher average loan and investment securities balances, higher yields on investments and lower funding costs due to Sterling’s asset-liability management strategy. Net interest margin for 2008, on a tax-equivalent basis, increased 11 basis points from the prior year, to 4.60%.

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“Our balance sheet management strategy has contributed to Sterling’s strong financial performance,” said Mr. Cappelli. “We have employed cost-effective wholesale funding in lieu of higher-priced time deposits, while at the same time maintaining our core depositor relationships. Also, we have not faced the capital and liquidity issues that have obliged some competing institutions to overpay for deposits. The result has been a meaningful improvement in our net interest margin despite a volatile interest rate environment.”

Noninterest income was $33.3 million for 2008, compared to $35.4 million for the prior year. The decrease was primarily due to other than temporary impairment charges totaling $1.7 million recognized in the second and third quarters of 2008, and a slight decline in mortgage banking income due to the lower origination volume experienced within the industry generally.

Noninterest expenses for 2008 were $84.5 million, compared to $79.5 million for 2007. The increase primarily reflected higher personnel expenses due to normal salary increases and investments in the growth of the Sterling franchise, increased occupancy costs due to higher rents and increased professional fees, primarily related to revenue enhancement projects, as well as the settlement of certain litigation.

The provision for income taxes was $9.2 million and $8.6 million, respectively, for the years 2008 and 2007.

Fourth Quarter 2008 Financial Results

Net income was $4.0 million or $0.22 per diluted share for the 2008 fourth quarter, compared to $4.2 million or $0.23 per diluted share for the same period in 2007.

Net interest income increased 13.6% to $21.8 million on a tax-equivalent basis for the fourth quarter of 2008. The increase, as noted above, was primarily due to the higher average loan and investment securities balances, as well as reduced funding costs arising from the Company’s wholesale funding strategy. Reflecting the above factors, the net interest margin rose 18 basis points from the prior year, to 4.50% on a tax-equivalent basis.

Noninterest income was $8.8 million for the fourth quarter of 2008, compared to $9.5 million in the year-ago period. The decrease primarily reflects lower mortgage banking income as discussed above.

Noninterest expenses were $21.5 million for the 2008 fourth quarter, compared to $20.4 million in the same 2007 period.

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The provision for income taxes was $2.7 million for the fourth quarter of 2008, compared to $2.6 million for the same period of 2007.

Earning Assets and Deposits

Loans held in portfolio, net of unearned discounts, averaged $1,141.4 million for 2008, an increase of 6.7% from a year ago. The increase reflected growth across a wide range of Sterling’s lending products and services from both existing and new customers. The Company believes that its strong liquidity should provide capacity for further loan growth, as the ratio of loans held in portfolio to deposits was 87.6% as of December 31, 2008.

Investment securities averaged $756.3 million for 2008, up from $586.5 million a year ago, primarily due to the implementation of asset/liability management strategies designed to capitalize on current market conditions. Approximately 93.7% of Sterling’s investment portfolio is comprised of debt obligations of U.S. government corporations and government sponsored enterprises, with another 2.9% in obligations of states and political subdivisions.

Demand deposits averaged $448.2 million for 2008, compared with $444.7 million a year earlier. Demand deposits represented 36.0% of total deposits as of December 31, 2008, one of the highest ratios of demand to total deposits in the industry.

Asset Quality Highlights

The ratio of nonperforming assets to total assets was 0.40% at December 31, 2008, unchanged from a year earlier. The allowance for loan losses as a percentage of total loans held in portfolio increased to 1.31% at December 31, 2008, from 1.27% a year ago.

Recognizing the possibility of a further downturn in economic conditions, management’s attention has been fully focused on maintaining Sterling’s well-established sound asset quality through continued diligent underwriting and credit standards, careful evaluation of borrowers and business conditions, and prudent approaches to loan loss provisions and reserve coverage. The provision for loan losses increased to $8.3 million for the full year and $2.2 million for the fourth quarter of 2008, from $5.9 million and $1.4 million, respectively, for the corresponding periods of 2007.

Factors affecting the level of the allowance for loan losses and, therefore, the provision, include the growth of the loan portfolio, changes in general economic conditions, the amount and trend of nonaccrual loans and charge-offs, and other factors based on management’s continuing evaluation of the loan portfolio.

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Capital and Dividends

As of December 31, 2008, Sterling’s Tier 1 risk-based capital ratio was 12.43%, total risk-based capital was 13.56% and the Tier 1 leverage ratio was 8.51%. These ratios reflect the proceeds from the Company’s participation in the U.S. Treasury Capital Purchase Program. Sterling’s capital ratios exceeded the regulatory requirements for a well-capitalized institution prior to receiving the Treasury funds.

Sterling paid a cash dividend of $0.19 per common share on December 31, 2008, to shareholders of record as of December 15, 2008. The Company has a track record of continuous cash dividends that extends to 252 quarters or 63 years.

Conference Call

Sterling Bancorp will host a teleconference call for the financial community on Tuesday, January 27, 2009 at 10:00 a.m. Eastern Standard Time to discuss the 2008 financial results. To access the conference call live, interested parties may dial 800-230-1766 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 27, 2009 until 11:59 p.m. Eastern Time on February 10, 2009. To access the replay by telephone, interested parties may dial 800-475-6701; enter the Access Code 983593.

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 $2.2 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 belief that it is prepared for the ups and downs of the economic cycle, that its strong capital base and pool of liquidity will permit the Company to withstand economic challenges and pursue opportunities that continue to emerge, and that the Company’s strong liquidity should provide capacity for further loan 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

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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.

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

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2008			2007			2008			2007
OPERATING HIGHLIGHTS (1)
Interest income	$	28,609		$	31,172		$	118,071		$	121,444
Interest expense		6,933			12,094			33,388			47,560
Provision for loan losses		2,225			1,400			8,325			5,853
Noninterest income		8,813			9,536			33,300			35,401
Noninterest expenses		21,503			20,375			84,476			79,478
Income from continuing operations, before income taxes		6,761			6,839			25,182			23,954
Provision for income taxes		2,712			2,649			9,176			8,560
Income from continuing operations		4,049			4,190			16,006			15,394
Loss from discontinued operations, net of income taxes		0			0			0			(795	)
Net income		4,049			4,190			16,006			14,599
Net income per average common share:
Basic		0.22			0.24			0.89			0.80
Diluted		0.22			0.23			0.88			0.79
Income from continuing operations per average common share:
Basic		0.22			0.24			0.89			0.85
Diluted		0.22			0.23			0.88			0.83
Cash dividends declared		0.19			0.19			0.76			0.76
Common shares outstanding:
Period end		18,095			17,819			18,095			17,819
Average Basic		18,056			17,808			17,993			18,210
Average Diluted		18,170			18,131			18,210			18,532
Return on average assets (2)		0.76	%		0.84	%		0.77	%		0.81	%
Return on average tangible equity (3)		16.16	%		17.17	%		16.52	%		15.20	%
Return on average stated equity (4)		13.14	%		13.89	%		13.36	%		12.40	%
Net interest spread, tax-equivalent basis		4.04	%		3.43	%		4.04	%		3.50	%
Net interest margin, tax-equivalent basis		4.50	%		4.32	%		4.60	%		4.49	%

(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.

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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,
	2008			2007			2008			2007
BALANCE SHEET HIGHLIGHTS
Period End Balances
Investment securities	$	806,889		$	625,241		$	806,889		$	625,241
Loans held for sale		23,403			23,756			23,403			23,756
Loans held in portfolio, net of unearned discount		1,221,543			1,187,124			1,221,543			1,187,124
Total earning assets		2,065,784			1,837,101			2,065,784			1,837,101
Allowance for loan losses		16,010			15,085			16,010			15,085
Total assets		2,214,698			2,012,649			2,214,698			2,012,649
Demand deposits		501,543			535,351			501,543			535,351
Savings, NOW and money market deposits		564,205			467,446			564,205			467,446
Time deposits		329,034			524,189			329,034			524,189
Customer repurchase agreements		44,334			60,054			44,334			60,054
Other short-term borrowings		319,070			145,364			319,070			145,364
Long-term borrowings		175,774			65,774			175,774			65,774
Shareholders’ equity		160,565			121,070			160,565			121,070
Average Balances
Investment securities	$	754,242		$	635,689		$	756,337		$	586,463
Loans held for sale		20,423			32,751			23,286			43,919
Loans held in portfolio, net of unearned discount		1,186,327			1,128,293			1,141,437			1,069,453
Total earning assets		1,967,726			1,801,205			1,927,231			1,726,087
Total assets		2,112,717			1,968,779			2,086,505			1,892,751
Demand deposits		453,913			444,233			448,180			444,672
Savings, NOW and money market deposits		577,306			513,249			522,807			498,827
Time deposits		346,035			548,180			451,031			556,869
Customer repurchase agreements		96,779			83,325			89,602			80,649
Other short-term borrowings		234,722			102,287			190,238			50,924
Long-term borrowings		175,774			57,513			163,479			44,130
Shareholders’ equity		122,557			119,718			119,792			124,140
ASSET QUALITY HIGHLIGHTS
Period End
Net charge-offs	$	1,918		$	1,178		$	6,388		$	5,784
Nonperforming loans		7,414			6,383			7,414			6,383
Other real estate owned		1,544			1,670			1,544			1,670
Nonperforming assets		8,958			8,053			8,958			8,053
Nonperforming loans/loans (1)		0.60	%		0.53	%		0.60	%		0.53	%
Nonperforming assets/assets		0.40	%		0.40	%		0.40	%		0.40	%
Allowance for loan losses/loans (2)		1.31	%		1.27	%		1.31	%		1.27	%
Allowance for loan losses nonperforming loans		215.94	%		236.33	%		215.94	%		236.33	%
CAPITAL RATIOS
Tier 1 risk based		12.43	%		9.76	%		12.43	%		9.76	%
Total risk based		13.56	%		10.87	%		13.56	%		10.87	%
Leverage		8.51	%		6.88	%		8.51	%		6.88	%
Book value per common share	$	6.55		$	6.79		$	6.55		$	6.79

(1)	The term “loans” includes loans held for sale and loans held in portfolio.
(2)	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,
	2008		2007
ASSETS
Cash and due from banks	$	31,832	$	66,413
Interest-bearing deposits with other banks		13,949		980
Investment securities
Available for sale (at estimated fair value)		505,762		263,380
Held to maturity (at amortized cost)		301,127		361,861
Total investment securities		806,889		625,241
Loans held for sales		23,403		23,756
Loans held in portfolio, net of unearned discounts		1,221,543		1,187,124
Less allowance for loan losses		16,010		15,085
Loans held in portfolio, net		1,205,533		1,172,039
Customers’ liability under acceptances		95		201
Goodwill		22,901		22,901
Premises and equipment, net		10,668		11,179
Other real estate		1,544		1,670
Accrued interest receivable		8,917		7,081
Cash surrender value of BOLI and other life insurance policies		45,845		42,530
Other assets		43,122		38,658
	$	2,214,698	$	2,012,649
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits
Demand	$	501,543	$	535,351
Savings, NOW and money market		564,205		467,446
Time		329,034		524,189
Total deposits		1,394,782		1,526,986
Securities sold under agreements to repurchase — customers		44,334		60,054
Securities sold under agreements to repurchase — dealers		0		10,200
Federal funds purchased		131,000		65,000
Commercial paper		11,732		20,879
Short-term borrowings — FHLB		75,000		45,000
Short-term borrowings — FRB		100,000		0
Short-term borrowings — other		1,338		4,285
Long-term borrowings — FHLB		150,000		40,000
Long-term borrowings — subordinated debentures		25,774		25,774
Acceptances outstanding		95		201
Accrued expenses and other liabilities		120,078		93,200
Total liabilities		2,054,133		1,891,579
Shareholders’ equity		160,565		121,070
	$	2,214,698	$	2,012,649
MEMORANDA
Available for sale securities — amortized cost	$	502,844	$	265,935
Held to maturity securities — estimated fair value		305,628		359,725
Shares outstanding
Common issued		22,202,419		21,278,531
Common in treasury		4,107,191		3,459,302

NOTE: Certain reclassifications have been made to prior periods’ financial data to conform to current financial statement presentations.

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

	Three Months Ended December 31,					Twelve Months Ended December 31,
	2008		2007			2008			2007
INTEREST INCOME
Loans	$	19,237	$	23,254		$	80,445		$	92,247
Investment securities — available for sale		5,696		3,480			21,858			9,139
Investment securities — held to maturity		3,664		4,406			15,718			18,705
Federal funds sold		0		6			8			1,236
Deposits with other banks		12		26			42			117
Total interest income		28,609		31,172			118,071			121,444
INTEREST EXPENSE
Savings, NOW and money market deposits		1,693		3,115			6,403			13,083
Time deposits		2,671		6,093			15,105			25,680
Securities sold u/a/r — customers		348		811			1,855			3,392
Securities sold u/a/r — dealers		12		309			1,127			309
Federal funds purchased		123		323			899			430
Commercial paper		49		277			461			1,350
Short-term borrowings — FHLB		314		283			1,309			336
Short-term borrowings — FRB		44		0			47			0
Short-term borrowings — other		8		18			35			66
Long-term borrowings — FHLB		1,147		341			4,053			820
Long-term subordinated debentures		524		524			2,094			2,094
Total interest expense		6,933		12,094			33,388			47,560
Net interest income		21,676		19,078			84,683			73,884
Provision for loan losses		2,225		1,400			8,325			5,853
Net interest income after provision for loan losses		19,451		17,678			76,358			68,031
NONINTEREST INCOME
Accounts receivable management/ factoring commissions and other fees		4,001		3,999			15,713			15,536
Service charges on deposit accounts		1,389		1,274			5,418			5,588
Other customer related service charges and fees		697		780			2,791			3,044
Mortgage banking income		1,949		2,630			8,619			8,893
Trust fees		176		153			571			551
Income from bank owned life insurance policies		275		274			1,127			1,092
Gain (Loss) on sale of OREO		35		(100	)		(326	)		(331	)
Securities gains (losses)		0		191			(1,684	)		188
Other income		291		335			1,071			840
Total noninterest income		8,813		9,536			33,300			35,401
NONINTEREST EXPENSES
Salaries		10,067		10,048			38,523			36,797
Employee benefits		2,394		2,357			9,893			9,506
Total personnel expense		12,461		12,405			48,416			46,303
Occupancy and equipment expenses, net		2,663		2,401			11,365			10,354
Advertising and marketing		1,186		923			3,914			3,897
Professional fees		1,991		1,832			7,873			6,666
Communications		446		486			1,757			1,941
Other expenses		2,756		2,328			11,151			10,317
Total noninterest expenses		21,503		20,375			84,476			79,478
Income from continuing operations before income taxes		6,761		6,839			25,182			23,954
Provision for income taxes		2,712		2,649			9,176			8,560
Income from continuing operations		4,049		4,190			16,006			15,394
Loss from discontinued operations, net of income taxes		0		0			0			(795	)
Net income	$	4,049	$	4,190		$	16,006		$	14,599

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

(continued)

	Three Months Ended December 31,				Twelve Months Ended December 31,
	2008		2007		2008		2007
Average number of common shares outstanding
Basic		18,055,885		17,807,998		17,992,765		18,209,740
Diluted		18,170,479		18,131,146		18,209,646		18,531,546
Income from continuing operations, per average common share
Basic	$	0.22	$	0.24	$	0.89	$	0.85
Diluted		0.22		0.23		0.88		0.83
Net income per average common share
Basic		0.22		0.24		0.89		0.80
Diluted		0.22		0.23		0.88		0.79
Dividends per common share		0.19		0.19		0.76		0.76

NOTE: Certain reclassifications have been made to prior periods’ financial data to conform to current financial statement presentations.

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

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2008			2007			2008			2007
Net income	$	4,049		$	4,190		$	16,006		$	14,599
Other comprehensive income, net of tax:
Unrealized holding gains on securities, arising during the period		6,891			581			360			835
Reclassification adjustment for securities (gains) losses included in net income		(3	)		(106	)		920			(106	)
Pension liability adjustment		(7,613	)		(596	)		(7,613	)		(596	)
Amortization of:
Prior service cost		9			12			36			55
Net actuarial losses		161			235			850			843
Comprehensive income	$	3,494		$	4,316		$	10,559		$	15,630

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

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2008			2007			2008			2007
Balance, at beginning of period	$	118,344		$	119,935		$	121,070		$	132,263
Net income for period		4,049			4,190			16,006			14,599
Preferred shares and warrants to purchase common shares issued in connection with the US Treasury Capital Purchase Program		42,000			0			42,000			0
Common shares issued under stock incentive plan and related tax benefits		2,553			169			10,425			896
Stock option compensation expense		33			33			132			114
Cash dividends-Common shares		(3,425	)		(3,383	)		(13,674	)		(13,755	)
Surrender of shares issued under incentive compensation plan		(2,434	)		0			(9,221	)		(456	)
Purchase of common shares for treasury		0			0			0			(13,622	)
Change in net unrealized holding gains on available for sale securities		6,891			581			360			835
Reclassification adjustment for securities (gains) losses included in net income		(3	)		(106	)		920			(106	)
Pension liability adjustment		(7,613	)		(596	)		(7,613	)		(596	)
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			12			36			55
Net actuarial losses		161			235			850			843
Balance, at end of period	$	160,565		$	121,070		$	160,565		$	121,070

Page 12 of 16

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

	Three Months Ended
	December 31, 2008								December 31, 2007
	AVERAGE					AVERAGE			AVERAGE					AVERAGE
	BALANCE			INTEREST		RATE			BALANCE			INTEREST		RATE
Assets
Interest-bearing deposits with other banks	$	6,734		$	12		0.74	%	$	3,929		$	26		2.62	%
Investment securities — available for sale		423,752			5,481		5.17			243,313			3,298		5.42
Investment securities — held to maturity		307,372			3,664		4.77			372,972			4,406		4.73
Investment securities — tax exempt [2]		23,118			352		6.09			19,404			299		6.13
Total investment securities		754,242			9,497		5.04			635,689			8,003		5.03
Federal funds sold		0			0		0.00			543			6		4.40
Loans, net of unearned discount [3]		1,206,750			19,237		6.62			1,161,044			23,254		8.34
Total Interest-Earning Assets [2]		1,967,726			28,746		5.97	%		1,801,205			31,289		7.11	%
Cash and due from banks		39,061								62,573
Allowance for loan losses		(16,457	)							(15,604	)
Goodwill		22,901								22,901
Other		99,486								97,704
Total Assets	$	2,112,717							$	1,968,779
Liabilities and Shareholders’ Equity
Interest-bearing deposits
Domestic
Savings	$	17,945			11		0.25	%	$	17,761			23		0.51	%
NOW		215,619			306		0.56			241,178			1,414		2.33
Money market		343,742			1,376		1.59			254,310			1,678		2.62
Time		345,458			2,669		3.08			547,605			6,092		4.41
Foreign
Time		577			2		1.10			575			1		1.09
Total Interest-Bearing Deposits		923,341			4,364		1.88			1,061,429			9,208		3.44
Borrowings
Securities sold u/a/r — customers		96,779			348		1.43			83,325			811		3.86
Securities sold u/a/r — dealers		1,909			12		2.44			25,670			309		4.78
Federal funds purchased		75,362			123		0.64			28,152			323		4.49
Commercial paper		12,248			49		1.62			22,758			277		4.82
Short-term borrowings — FHLB		108,261			314		1.15			23,913			283		4.69
Short-term borrowings — FRB		34,587			44		0.51			0			0		0.00
Short-term borrowings — other		2,355			8		1.28			1,794			18		4.13
Long-term borrowings — FHLB		150,000			1,147		3.04			31,739			341		4.31
Long-term borrowings — sub debt		25,774			524		8.38			25,774			524		8.38
Total Borrowings		507,275			2,569		2.02			243,125			2,886		4.73
Total Interest-Bearing Liabilities		1,430,616			6,933		1.93	%		1,304,554			12,094		3.68	%
Noninterest-bearing demand deposits		453,913								444,233
Other liabilities		105,631								100,274
Total Liabilities		1,990,160								1,849,061
Shareholders’ equity		122,557								119,718
Total Liabilities and Shareholders’ Equity	$	2,112,717							$	1,968,779
Net interest income/spread [2]					21,813		4.04	%					19,195		3.43	%
Net yield on interest-earning assets							4.50	%							4.32	%
Less: Tax-equivalent adjustment					137								117
Net interest income				$	21,676							$	19,078

[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, 2008								December 31, 2007
	AVERAGE					AVERAGE			AVERAGE					AVERAGE
	BALANCE			INTEREST		RATE			BALANCE			INTEREST		RATE
Assets
Interest-bearing deposits with other banks	$	5,727		$	42		0.74	%	$	3,033		$	117		3.86	%
Investment securities — available for sale		402,393			21,040		5.23			165,289			8,379		5.07
Investment securities — held to maturity		332,033			15,718		4.73			401,212			18,705		4.66
Investment securities — tax exempt [2]		21,911			1,339		6.11			19,962			1,250		6.26
Total investment securities		756,337			38,097		5.04			586,463			28,334		4.83
Federal funds sold		444			8		1.84			23,219			1,236		5.32
Loans, net of unearned discount [3]		1,164,723			80,445		7.37			1,113,372			92,247		8.83
Total Interest-Earning Assets [2]		1,927,231			118,592		6.40	%		1,726,087			121,934		7.36	%
Cash and due from banks		49,269								66,384
Allowance for loan losses		(16,087	)							(16,233	)
Goodwill		22,901								22,885
Other		103,191								93,628
Total Assets	$	2,086,505							$	1,892,751
Liabilities and Shareholders’ Equity
Interest-bearing deposits
Domestic
Savings	$	18,460			59		0.32	%	$	19,618			101		0.51	%
NOW		239,944			2,306		0.96			237,731			5,903		2.48
Money market		264,403			4,038		1.53			241,478			7,079		2.93
Time		450,455			15,099		3.35			556,295			25,674		4.62
Foreign
Time		576			6		1.09			574			6		1.09
Total Interest-Bearing Deposits		973,838			21,508		2.21			1,055,696			38,763		3.67
Borrowings
Securities sold u/a/r — customers		89,602			1,855		2.07			80,649			3,392		4.21
Securities sold u/a/r — dealers		41,808			1,127		2.69			6,470			309		4.78
Federal funds purchased		50,368			899		1.79			9,281			430		4.63
Commercial paper		17,806			461		2.59			26,731			1,350		5.05
Short-term borrowings — FHLB		69,708			1,309		1.88			7,082			336		4.74
Short-term borrowings — FRB		8,841			47		0.53			0			0		0.00
Short-term borrowings — other		1,707			35		2.04			1,360			66		4.87
Long-term borrowings — FHLB		137,705			4,053		2.94			18,356			820		4.47
Long-term borrowings — sub debt		25,774			2,094		8.38			25,774			2,094		8.38
Total Borrowings		443,319			11,880		2.68			175,703			8,797		5.03
Total Interest-Bearing Liabilities		1,417,157			33,388		2.36	%		1,231,399			47,560		3.86	%
Noninterest-bearing demand deposits		448,180								444,672
Other liabilities		101,376								92,540
Total Liabilities		1,966,713								1,768,611
Shareholders’ equity		119,792								124,140
Total Liabilities and Shareholders’ Equity	$	2,086,505							$	1,892,751
Net interest income/spread [2]					85,204		4.04	%					74,374		3.50	%
Net yield on interest-earning assets							4.60	%							4.49	%
Less: Tax-equivalent adjustment					521								490
Net interest income				$	84,683							$	73,884

[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, 2008
	Volume			Rate			Net [2]
INTEREST INCOME
Interest-bearing deposits with other banks	$	12		$	(26	)	$	(14	)
Investment securities — available for sale		2,344			(161	)		2,183
Investment securities — held to maturity		(780	)		38			(742	)
Investment securities — tax exempt		55			(2	)		53
Total investment securities		1,619			(125	)		1,494
Federal funds sold		(6	)		0			(6	)
Loans, net of unearned discounts [3]		970			(4,987	)		(4,017	)
TOTAL INTEREST INCOME	$	2,595		$	(5,138	)	$	(2,543	)
INTEREST EXPENSE
Interest-bearing deposits
Domestic
Savings	$	0		$	(12	)	$	(12	)
NOW		(136	)		(972	)		(1,108	)
Money market		481			(783	)		(302	)
Time		(1,884	)		(1,539	)		(3,423	)
Foreign
Time		1			0			1
Total interest-bearing deposits		(1,538	)		(3,306	)		(4,844	)
Borrowings
Securities sold under agreements to repurchase — customers		114			(577	)		(463	)
Securities sold under agreements to repurchase — dealers		(194	)		(103	)		(297	)
Federal funds purchased		229			(429	)		(200	)
Commercial paper		(94	)		(134	)		(228	)
Short-term borrowings — FHLB		377			(346	)		31
Short-term borrowings — FRB		44			0			44
Short-term borrowings — other		5			(15	)		(10	)
Long-term borrowings — FHLB		936			(130	)		806
Long-term borrowings — subordinated debentures		0			0			0
Total borrowings		1,417			(1,734	)		(317	)
TOTAL INTEREST EXPENSE	$	(121	)	$	(5,040	)	$	(5,161	)
NET INTEREST INCOME	$	2,716		$	(98	)	$	2,618

[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, 2008
	Volume			Rate			Net [2]
INTEREST INCOME
Interest-bearing deposits with other banks	$	60		$	(135	)	$	(75	)
Investment securities — available for sale		12,389			272			12,661
Investment securities — held to maturity		(3,262	)		275			(2,987	)
Investment securities — tax exempt		85			4			89
Total investment securities		9,212			551			9,763
Federal funds sold		(735	)		(493	)		(1,228	)
Loans, net of unearned discounts [3]		4,731			(16,533	)		(11,802	)
TOTAL INTEREST INCOME	$	13,268		$	(16,610	)	$	(3,342	)
INTEREST EXPENSE
Interest-bearing deposits
Domestic
Savings	$	(6	)	$	(36	)	$	(42	)
NOW		70			(3,667	)		(3,597	)
Money market		635			(3,676	)		(3,041	)
Time		(4,279	)		(6,296	)		(10,575	)
Foreign
Time		0			0			0
Total interest-bearing deposits		(3,580	)		(13,675	)		(17,255	)
Borrowings
Securities sold under agreements to repurchase — customers		352			(1,889	)		(1,537	)
Securities sold under agreements to repurchase — dealers		1,009			(191	)		818
Federal funds purchased		876			(407	)		469
Commercial paper		(359	)		(530	)		(889	)
Short-term borrowings — FHLB		1,291			(318	)		973
Short-term borrowings — FRB		47			0			47
Short-term borrowings — other		14			(45	)		(31	)
Long-term borrowings — FHLB		3,607			(374	)		3,233
Long-term borrowings — subordinated debentures		0			0			0
Total borrowings		6,837			(3,754	)		3,083
TOTAL INTEREST EXPENSE	$	3,257		$	(17,429	)	$	(14,172	)
NET INTEREST INCOME	$	10,011		$	819		$	10,830

[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. The effect of the extra day in 2008 has been included in the change in volume.
[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