Sterling Bancorp Net Income From Recurring Operations Rises 15% To $5.6 Million For The 2013 Second Quarter

   Sterling Bancorp Net Income From Recurring Operations Rises 15% To $5.6
                     Million For The 2013 Second Quarter

GAAP NET INCOME IS $4.5 MILLION

RISING LOANS AND DEPOSITS, REVENUE GROWTH AND CONTINUED SOUND ASSET QUALITY
REFLECTED IN STRONG QUARTERLY PERFORMANCE

LOANS INCREASE OVER 12%, DEPOSITS GROW 10%

PR Newswire

NEW YORK, July 26, 2013

NEW YORK, July 26, 2013 /PRNewswire/ --



 Strong Financial Performance
   oNet income from recurring operations rose 15% to $5.6 million, or $0.18
     per diluted share, excluding merger-related expenses.
   oNet income on a GAAP basis was $4.5 million, or $0.15 per diluted share,
     for second quarter 2013.
   oNet interest margin rose to 4.10%, increasing in comparison to both the
     2012 second quarter and the 2013 first quarter.
   oNet interest income increased 7% from a year ago.
 Robust Loan and Deposit Growth
   oLoans, net of unearned discount, were $1.8 billion, increasing more than
     12%.
   oTotal deposits rose to $2.2 billion, an increase of 10%.
   oDemand deposits increased 20% to $940.9 million, representing 42% of
     total deposits.
 Solid Credit Metrics
   oNet charge-offs were 0.32% of loans in portfolio for second quarter
     2013.
   oRatio of nonperforming assets to total assets decreased to 0.24%.
   oAllowance for loan losses as a percentage of portfolio loans was 1.30%.

     Comparisons above are at, or for the periods ended, June 30, 2013 vs.
     June 30, 2012 unless otherwise stated.



Sterling Bancorp (NYSE: STL) today reported on its financial and operating
results for the 2013 second quarter, highlighted by growth in loans and
deposits, higher revenues, expense discipline and continued sound asset
quality.

Net income from recurring operations rose 15% for the 2013 second quarter to
$5.6 million, or $0.18 per diluted share. This figure excludes professional
fee expenses related to the planned merger with Provident New York Bancorp of
$1.1 million after tax effect. On a GAAP basis, including the merger-related
fee expenses, net income for the 2013 second quarter was $4.5 million, or
$0.15 per diluted share. 

For the first six months of 2013, net income from recurring operations rose
15% from the year-ago period, to $10.9 million, or $0.35 per diluted share.
GAAP net income was $9.8 million or $0.32 per diluted share, including the
merger-related professional fee expenses.

Selected Financial Highlights

                                                       At or For Quarter Ended
                                                       6/30/13     6/30/12
EARNINGS HIGHLIGHTS
Net income from recurring operations (in millions)     $5.61       $4.87
^(1)
Earnings from recurring operations per share (diluted) $0.18       $0.16
^(1)
Net interest margin                                    4.10%       4.04%
BALANCE SHEET HIGHLIGHTS (period end, in millions)
Total investment securities                            $675.16     $727.38
Loans, net of unearned discount                        $1,791.25   $1,595.87
Demand deposits                                        $940.88     $786.36
Total deposits                                         $2,241.38   $2,043.05
Total assets                                           $2,732.30   $2,551.70
ASSET QUALITY HIGHLIGHTS (period end)
Nonaccrual loans/loans ^(2)                            0.29%       0.35%
Nonperforming assets/assets                            0.24%       0.28%
Allowance for loan losses/portfolio loans              1.30%       1.35%
(1) Excluding merger-related expenses.

(2) Includes loans held for sale and loans held in
portfolio.





2013 Second Quarter: Business Growth, Rising Operating Earnings

"Sterling Bancorp's solid performance for the 2013 second quarter is clearly
reflected in the increase of 19% in pre-tax income from recurring operations.
Our progress is also demonstrated by the continued growth of loans and
deposits, higher gross revenues, expense discipline and sound asset quality,"
noted Louis J. Cappelli, Sterling's Chairman and Chief Executive Officer.

"These results also continued to benefit from our successful asset-liability
management strategy, which provided the liquidity to fund a meaningful level
of loan growth and led to an expansion of the net interest margin to 4.10% –
which increased as compared to both the year-ago second quarter and the first
quarter of 2013. We believe Sterling is well positioned for a rising interest
rate environment that may result from the market's reaction to anticipated
actions by the Federal Reserve Board. We offer a range of financial products
that should experience rising demand in a strengthening economy, and that
provide diverse sources of interest income and noninterest income, and we also
have an asset-sensitive balance sheet that should benefit from higher interest
rates."

Sterling Bancorp-Provident Bancorp Merger

As previously announced on April 4, 2013, Sterling Bancorp and Provident New
York Bancorp have entered into a definitive merger agreement in a
stock-for-stock transaction. Following the merger, the resulting holding
company and national bank will maintain the Sterling brand name. The merger
is expected to close in the fourth calendar quarter of 2013, subject to
approval by the shareholders of both companies, regulatory approval and other
customary closing conditions. Sterling Bancorp shareholders will be notified
when a special meeting to vote on the merger has been scheduled. 

"Our enthusiasm about the merger with Provident, and the enormous opportunity
to create a premier high performing banking institution, grows stronger every
day. Merger integration planning is in process, with the engagement of both
the Sterling and Provident teams, to ensure that the transaction is a success
from Day 1, and that we deliver the full potential of the merger through
revenue growth, expense savings and a high level of customer service. We will
offer a broader range of services to small-to-middle market businesses and
consumers in the greater New York metropolitan area and beyond, and are
committed to delivering solid value for shareholders," Mr. Cappelli noted.

The merger agreement provides for Sterling and Provident to coordinate with
each other regarding the declaration and payment of dividends. Accordingly,
Sterling recently announced that its next quarterly cash dividend of $0.09 per
common share will be payable on August 15, 2013 to shareholders of record as
of August 1, 2013. This payment extends Sterling's history of continuous cash
dividends to 271 consecutive quarters or more than 67 years.

Net Interest Income

Net interest income was $24.4 million for second quarter 2013, an increase of
7% from the 2012 period. This growth was primarily driven by higher loan
balances due to a continuing strategy of shifting the Company's asset mix
toward loans from investment securities, as well as a reduction in cost of
funds largely due to disciplined deposit pricing, rising noninterest-bearing
demand deposit balances, and a pay-down of higher cost borrowings. Net
interest margin increased to 4.10% for the 2013 second quarter, increasing 6
basis points compared to the 2012 second quarter and 8 basis points from the
2013 first quarter. For the first six months of 2013, net interest income
increased more than 7% to $48.5 million.

Noninterest Income

Noninterest income was $9.8 million for the 2013 second quarter, versus $10.5
million a year ago. For the first six months of 2013, noninterest income was
$20.5 million, compared to $20.8 million a year ago. Noninterest income in
2013 benefitted from growth in mortgage banking income. Accounts receivable
management and other related fees and security gains decreased, offsetting
this benefit. 

Noninterest Expenses

Noninterest expenses were $25.8 million for second quarter 2013, versus $23.6
million for the same 2012 period. Excluding the merger-related professional
fee expenses previously noted, noninterest expenses increased 3% from a year
ago, primarily reflecting investments in the growth of Sterling's business
along with expenses associated with Universal Mortgage, acquired in the 2012
third quarter. Noninterest expenses for the first six months of 2013 were
$50.6 million, compared to $46.7 million a year earlier, again reflecting
merger-related fee expenses, investments in the growth of Sterling's business,
and expenses associated with Universal Mortgage.

Loan, Deposit and Asset Growth

Total loans, net of unearned discount approached $1.8 billion as of June 30,
2013, an increase of 12% from a year earlier. The ratio of loans to deposits
was 80% at June 30, 2013.

Total deposits were more than $2.2 billion at June 30, 2013, increasing
approximately 10% from a year earlier. Noninterest-bearing demand deposits
represented 42% of total deposits, among the highest ratios of demand to total
deposits in the industry. The growth in demand deposits reflects the
Company's emphasis on generating such deposits as part of its customer
relationship model.

Total assets increased to over $2.7 billion at June 30, 2013. Total
investment securities decreased by $52.2 million from a year ago, to $675.2
million, reflecting the successful strategy of redeploying assets from
investments into loans.

Asset Quality

Sterling continued to demonstrate sound credit quality metrics during the 2013
second quarter. Net charge-offs were $1.4 million for the recent quarter,
down from $1.7 million for the same 2012 period. Nonperforming assets were
$6.7 million or 0.24% of total assets at June 30, 2013, compared to $7.1
million or 0.28% a year earlier. The allowance for loan losses as a
percentage of portfolio loans was 1.30% at June 30, 2013, compared to 1.35% a
year earlier. The Company's continued sound asset quality is reflected in a
provision for loan losses of $1.5 million for second quarter 2013, a decrease
from $2.8 million a year ago.

Capital

The Company's capital base has continued to exceed all regulatory requirements
for well-capitalized institutions. At June 30, 2013, Sterling's Tier 1
risk-based capital ratio was 11.54% (compared to a requirement of 6.00%),
total risk-based capital was 12.65% (requirement of 10.00%), and the Tier 1
leverage ratio was 9.36% (requirement of 5.00%). The tangible common equity
ratio was 7.75% at June 30, 2013.

Conference Call

Sterling Bancorp will hold a conference call on Friday, July 26, 2013, at
10:00 a.m. Eastern Time to discuss these financial results. To access the
conference call live, interested parties may dial 800-288-8976 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 26, 2013, until 11:59 p.m. Eastern Time on
August 9, 2013. To access the replay by telephone, interested parties may
dial 800-475-6701 and enter the Access Code 298680.

About Sterling Bancorp

Sterling Bancorp (NYSE: STL) is a New York City-based financial corporation
with assets of $2.7 billion. Since 1929, Sterling National Bank, the Company's
principal banking subsidiary, has successfully served the needs of businesses,
professionals and individuals in the NY metropolitan area and beyond. Sterling
is well-known for its high-touch, hands-on approach to customer service and a
special focus on serving the business community.

Sterling provides clients with a full range of depository and cash management
services and a broad portfolio of financing solutions—including working
capital lines, accounts receivable and inventory financing, factoring, trade
financing, payroll funding and processing, equipment financing, commercial and
residential mortgages and mortgage warehouse lines of credit.

Forward Looking Statements
Certain statements in this press release, including, but not limited to,
statements as to future results of operations, liquidity, interest rate risk,
operating expenses, financial position, dividends and other events, plans and
objectives for future operations, capital, liquidity, and growth, statements
concerning the economic environment, asset quality and future levels of
nonaccrual loans, charge-offs and provisions for loan losses, the effect of
actions of the Federal Reserve on interest rates, the impact of rising
interest rates on our performance and financial condition, the demand for our
products in a strengthened economy, our ability to offer a broader range of
services to small-to-middle market businesses and consumers in the greater New
York metropolitan area and beyond, whether we can continue to shift our asset
mix toward loans from investment securities, our ability and Provident's
ability to obtain shareholder and regulatory approvals and meet other closing
conditions to the merger, and other statements contained herein 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, and the Company makes no commitment to update or revise
forward-looking statements to reflect new information or subsequent events or
changes in expectations. 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 our Annual Report on Form 10-K
for the fiscal year ended December 31, 2012.

Additional Information for Stockholders
In connection with the proposed merger with Provident, Provident has filed
with the Securities and Exchange Commission ("SEC") a Registration Statement
on Form S-4 that includes a joint proxy statement of Provident and the Company
and a prospectus of Provident, as well as other relevant documents concerning
the proposed transaction and will file further amendments to certain of these
documents. The Company will mail the joint proxy statement/prospectus to its
stockholders. SHAREHOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT AND
JOINT PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED MERGER WHEN IT BECOMES
AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY
AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN
IMPORTANT INFORMATION. Investors and security holders may obtain a free copy
of the proxy statement/prospectus (when available) and other filings
containing information about Provident and Sterling at the SEC's website at
www.sec.gov. The joint proxy statement/prospectus (when available) and the
other filings may also be obtained free of charge at Provident's website at
www.providentbanking.com under the tab "Investor Relations," and then under
the heading "SEC Filings" or at the Company's website at www.snb.com under the
tab "Investor Relations," and then under the heading "SEC Filings."

Provident, the Company and certain of their respective directors and executive
officers, under the SEC's rules, may be deemed to be participants in the
solicitation of proxies of Provident and the Company's shareholders in
connection with the proposed merger. Information about the directors and
executive officers of Provident and their ownership of Provident common stock
is set forth in the proxy statement for Provident's 2013 annual meeting of
shareholders, as filed with the SEC on Schedule 14A on January 10, 2013.
Information about the directors and executive officers of the Company and
their ownership of our common stock is set forth in the proxy statement for
the Company's 2012 annual meeting of shareholders, as filed with the SEC on a
Schedule 14A on April 3, 2012. Additional information regarding the interests
of those participants and other persons who may be deemed participants in the
transaction may be obtained by reading the joint proxy statement/prospectus
regarding the proposed merger when it becomes available. Free copies of this
document may be obtained as described in the preceding paragraph.



STERLING BANCORP
Consolidated Financial Highlights
(Unaudited)
(dollars in thousands, except per share data)
                        ThreeMonthsEndedJune30,  SixMonthsEndedJune30,
                        2013            2012         2013           2012
BALANCE SHEET
HIGHLIGHTS
Period End Balances
 Investment           $675,155        $727,378     $675,155       $727,378
securities
 Loans held for sale  49,188          30,287       49,188         30,287
 Loans held in
portfolio,
 net of unearned   1,742,065       1,565,580    1,742,065      1,565,580
discount
 Interest bearing
deposits with other     81,115          39,517       81,115         39,517
banks
 Total earning        2,555,213       2,371,156    2,555,213      2,371,156
assets
 Allowance for loan   22,594          21,135       22,594         21,135
losses
 Total assets         2,732,298       2,551,696    2,732,298      2,551,696
 Demand deposits      940,881         786,359      940,881        786,359
 Savings, NOW and     802,452         638,870      802,452        638,870
money market deposits
 Time deposits        498,048         617,817      498,048        617,817
 Customer repurchase  40,616          43,199       40,616         43,199
agreements
 Advances
FHLB/Long-term          126,366         147,776      126,366        147,776
borrowings
 Shareholders'        233,480         227,551      233,480        227,551
equity
Average Balances
 Investment           $698,035        $803,989     $713,384       $784,373
securities
 Loans held for sale  56,092          31,663       81,338         34,182
 Loans held in
portfolio,
 net of unearned   1,679,401       1,483,436    1,647,918      1,444,353
discount
 Interest bearing
deposits with other     70,885          35,962       80,877         56,530
banks
 Total earning        2,512,095       2,363,455    2,531,089      2,327,878
assets
 Total assets         2,695,178       2,533,439    2,714,141      2,496,744
 Demand deposits      874,140         767,170      885,665        763,058
 Savings, NOW and     805,411         647,544      782,612        634,535
money market deposits
 Time deposits        528,410         610,651      561,463        599,646
 Customer repurchase  37,121          42,151       34,798         40,962
agreements
 Advances
FHLB/Long-term          126,438         147,955      126,614        148,111
borrowings
 Shareholders'        232,204         225,534      230,733        223,609
equity
ASSET QUALITY
HIGHLIGHTS
Period End
 Net charge-offs      $1,411          $1,698       $2,987         $4,581
 Nonaccrual loans     5,212           5,601        5,212          5,601
 Other real estate    1,481           1,547        1,481          1,547
owned
 Nonperforming        6,693           7,148        6,693          7,148
assets
 Nonaccrual           0.29%           0.35%        0.29%          0.35%
loans/loans (1)
 Nonperforming        0.24%           0.28%        0.24%          0.28%
assets/assets
 Allowance for loan   1.30%           1.35%        1.30%          1.35%
losses/loans (2)
 Allowance for loan
losses/nonaccrual       433.50%         377.34%      433.50%        377.34%
loans
CAPITAL RATIOS
Period End
 Tier 1 risk based    11.54%          11.81%       11.54%         11.81%
 Total risk based     12.65%          12.89%       12.65%         12.89%
 Leverage             9.36%           9.58%        9.36%          9.58%
 Equity/ assets       8.55%           8.92%        8.55%          8.92%
 Tangible common      7.75%           8.09%        7.75%          8.09%
equity
 Book value per       $7.54           $7.36        $7.54          $7.36
common share
Return on average       7.81%           8.69%        8.54%          8.52%
equity
Return on average       8.70%           9.68%        9.51%          9.50%
tangible equity
(1) The term "loans" includes loans held for sale
and loans held in portfolio.
(2) The term "loans" includes loans held in
portfolio only.
Page 7 of 18



STERLING BANCORP
Consolidated Balance Sheets
(Unaudited)
(dollars in thousands, except number of shares)
                                                    June 30,
                                                    2013           2012
ASSETS
Cash and due from banks                          $  43,981      $  44,138
Interest-bearing deposits with                      81,115         39,517
other banks
Investment securities
 Available for sale (at                          291,561        348,714
estimated fair value)
 Held to maturity (at amortized                  383,594        378,664
cost)
 Total investment                        675,155        727,378
securities
Loans held for sale                                 49,188         30,287
Loans held in portfolio, net of unearned            1,742,065      1,565,580
discounts
Less allowance for loan losses                      22,594         21,135
 Loans held in                           1,719,471      1,544,445
portfolio, net
Federal Reserve Bank and Federal Home Loan          7,690          8,394
Bank stock, at cost
Goodwill                                            22,901         22,901
Premises and equipment, net                         22,053         23,174
Other real estate                                   1,481          1,547
Accrued interest receivable                         6,468          8,077
Cash surrender value of life                       54,935         54,039
insurance policies
Other assets                                        47,860         47,799
                                                 $  2,732,298   $  2,551,696
LIABILITIES AND SHAREHOLDERS'
EQUITY
Deposits
 Demand                                       $  940,881     $  786,359
 Savings, NOW and money market                   802,452        638,870
 Time                                            498,048        617,817
 Total deposits                          2,241,381      2,043,046
Securities sold under agreements to                 40,616         43,199
repurchase - customers
Commercial paper and other short-term               8,445          17,455
borrowings
Advances - FHLB                                     100,592        122,002
Long-term borrowings - subordinated                 25,774         25,774
debentures
Accrued interest payable                            687            754
Accrued expenses and other                          81,323         71,915
liabilities
 Total liabilities                       2,498,818      2,324,145
Shareholders' equity                                233,480        227,551
                                                 $  2,732,298   $  2,551,696
MEMORANDA
 Available for sale securities -              $  287,043     $  347,407
amortized cost
 Held to maturity securities -                   385,499        395,298
estimated fair value
 Shares outstanding
 Common issued                               35,263,768     35,225,110
 Common in treasury                          4,309,663      4,307,972
NOTE: Certain reclassifications have been made to prior period's financial
data to conform to current financial statement presentations.
Page 8 of 18



STERLING BANCORP
Consolidated Statements of Income
(Unaudited)
(dollars in thousands, except per share data)
                       ThreeMonthsEndedJune30,   SixMonthsEndedJune30,
                       2013             2012         2013            2012
INTEREST INCOME
Loans                $ 22,600     $     20,044     $ 44,842     $    39,730
Investment
securities
 Available for sale   1,577            2,465        3,243           4,636
- taxable
 Held to maturity -   1,053            1,441        2,184           3,074
taxable
 Tax exempt           1,529            1,581        3,073           3,184
FRB and FHLB stock     116              134          177             215
Deposits with other    43               18           100             64
banks
 Total      26,918           25,683       53,619          50,903
interest income
INTEREST EXPENSE
Savings, NOW and
money market           734              658          1,460           1,302
deposits
Time deposits          800              1,012        1,710           2,075
Securities sold        32               38           61              74
u/a/r - customers
Securities sold        -                15           -               31
u/a/r - dealers
Federal funds          3                6            3               7
purchased
Commercial paper and
other
 short-term           12               10           25              21
borrowings
Advances - FHLB        390              518          782             1,037
Long-term
subordinated           524              524          1,047           1,047
debentures
 Total      2,495            2,781        5,088           5,594
interest expense
Net interest income    24,423           22,902       48,531          45,309
Provision for loan     1,500            2,750        3,500           5,750
losses
Net interest income
after provision for    22,923           20,152       45,031          39,559
loan losses
NONINTEREST INCOME
Accounts receivable
management/
 factoring
commissions and        4,005            5,065        7,480           9,933
other fees
Service charges on     1,202            1,407        2,497           2,667
deposit accounts
Trade finance income   427              467          857             967
Other customer
related service        288              256          680             505
charges and fees
Mortgage banking       3,357            2,393        7,756           4,729
income
Income from life       277              536          746             792
insurance policies
Securities gains       213              329          345             1,208
Loss on sale of OREO   (1)              -            (13)            (66)
Other income           68               22           163             26
 Total      9,836            10,475       20,511          20,761
noninterest income
NONINTEREST EXPENSES
Salaries               11,753           11,168       23,766          22,355
Employee benefits      3,750            3,727        7,851           7,451
 Total personnel    15,503           14,895       31,617          29,806
expense
Occupancy and
equipment expenses,    3,392            3,402        6,831           6,616
net
Advertising and        608              775          1,245           1,418
marketing
Professional fees      2,874            1,508        4,060           2,411
Communications         493              462          857             932
Deposit insurance      567              540          1,153           1,124
Other expenses         2,369            2,044        4,882           4,363
 Total      25,806           23,626       50,645          46,670
noninterest expenses
Income before income   6,953            7,001        14,897          13,650
taxes
Provision for income   2,429            2,128        5,129           4,175
taxes
Net income           $ 4,524      $     4,873      $ 9,768      $    9,475
Page 9 of 18



STERLING BANCORP
Consolidated Statements of Income
(Unaudited)
(dollars in thousands, except per share data)
                       (continued)
                       ThreeMonthsEndedJune30,   SixMonthsEndedJune30,
                       2013            2012          2013           2012
Average number of
common shares
outstanding
 Basic          30,902,957      30,818,709    30,882,237     30,805,484
 Diluted        30,902,957      30,818,709    30,882,237     30,805,484
Net income per
average common share
 Basic        $ 0.15         $  0.16        $ 0.32        $  0.31
 Diluted        0.15            0.16          0.32           0.31
Dividends per common   0.09            0.09          0.18           0.18
share
Page 10 of 18



STERLING BANCORP
Consolidated Statements of Comprehensive Income
(Unaudited)
(dollars in thousands)
                       ThreeMonthsEndedJune30,   SixMonthsEndedJune30,
                       2013             2012         2013            2012
Net income           $ 4,524       $    4,873      $ 9,768      $    9,475
Other comprehensive
income, net of tax:
 Unrealized
holding (losses)
gains on
 securities
arising during the     (1,079)          (338)        (222)           2,347
period

Reclassification
adjustment for
securities
 gains
included in net        (118)            (183)        (191)           (671)
income
 Prior service      -                7            5               12
cost
 Net actuarial      877              564          1,445           1,017
losses
Comprehensive income $ 4,204       $    4,923      $ 10,805     $    12,180
STERLING BANCORP
Consolidated Statements of Changes in Shareholders' Equity
(Unaudited)
(dollars in thousands)
                       ThreeMonthsEndedJune30,   SixMonthsEndedJune30,
                       2013             2012         2013            2012
Balance, at          $ 231,992     $    225,324    $ 228,090    $    220,821
beginning of period
Net income for         4,524            4,873        9,768           9,475
period
Stock option and
restricted stock
 compensation        86               86           172             189
expense
Cash dividends -       (2,784)          (2,782)      (5,569)         (5,564)
common shares
Surrender of shares
issued under
 incentive          (18)             -            (18)            (75)
compensation plan
Unrealized holding
(losses) gains on
 securities
arising during the     (1,079)          (338)        (222)           2,347
period
Reclassification
adjustment for
securities
 gains included     (118)            (183)        (191)           (671)
in net income
Amortization of:
 Prior service      -                7            5               12
cost
 Net actuarial      877              564          1,445           1,017
losses
Balance, at end of   $ 233,480     $    227,551    $ 233,480    $    227,551
period
Page 11 of 18



STERLING BANCORP
Average Balance Sheets [1]
(Unaudited)
(dollars in thousands)
                      Three Months Ended
                      June 30, 2013                     June 30, 2012
                      Average               Average     Average               Average
                      Balance     Interest  Rate        Balance     Interest  Rate
Assets
 Interest-bearing
deposits with other $ 70,885    $ 43        0.24    % $ 35,962    $ 18        0.20    %
banks
 Investment
Securities
 Available for     299,720     1,577     2.10        398,737     2,465     2.47
sale - taxable
 Held to           247,850     1,053     1.70        249,691     1,441     2.31
maturity - taxable
 Tax-exempt [2]    150,465     2,352     6.25        155,561     2,431     6.25
 Total
investment            698,035     4,982     2.86        803,989     6,337     3.15
securities
 FRB and FHLB        7,682       118       6.11        8,405       136       6.46
stock [2]
 Loans, net of
unearned discount    1,735,493   22,600    5.37        1,515,099   20,044    5.39
[3]
Total
Interest-Earning      2,512,095   27,743    4.51    %   2,363,455   26,535    4.52    %
Assets [2]
 Cash and due from   42,308                            36,644
banks
 Allowance for       (24,113)                          (21,678)
loan losses
 Goodwill            22,901                            22,901
 Other               141,987                           132,117
Total Assets        $ 2,695,178                       $ 2,533,439
Liabilities and
Shareholders'
Equity
 Interest-bearing
deposits
 Domestic
 Savings       $ 26,033      1         0.01    % $ 20,812      1         0.02    %
 NOW             221,541     43        0.08        212,453     64        0.12
 Money market    557,837     690       0.50        414,279     593       0.58
 Time            528,410     800       0.61        610,651     1,012     0.67
 Total
Interest-Bearing      1,333,821   1,534     0.46        1,258,195   1,670     0.53
Deposits
 Borrowings
 Securities sold   37,121      32        0.35        42,151      38        0.36
u/a/r - customers
 Securities sold   365         -         0.27        5,604       15        1.04
u/a/r - dealers
 Federal funds     4,604       3         0.23        11,592      6         0.20
purchased
 Commercial
paper and other
 short-term      14,434      12        0.32        15,306      10        0.29
borrowings
 Advances - FHLB   100,664     390       1.55        122,181     518       1.70
 Long-term
borrowings - sub      25,774      524       8.38        25,774      524       8.38
debt
Total Borrowings      182,962     961       2.11        222,608     1,111     2.01
 Total
Interest-Bearing      1,516,783   2,495     0.66    %   1,480,803   2,781     0.75    %
Liabilities
Noninterest-bearing   874,140                           767,170
demand deposits
 Total including
noninterest-bearing
 demand deposits    2,390,923   2,495     0.43    %   2,247,973   2,781     0.51    %
Other liabilities     72,051                            59,932
Total Liabilities     2,462,974                         2,307,905
Shareholders'         232,204                           225,534
equity
Total Liabilities
and Shareholders'   $ 2,695,178                       $ 2,533,439
Equity
Net interest                      25,248    3.85    %               23,754    3.77    %
income/spread [2]
Net yield on
interest-earning                            4.10    %                         4.04    %
assets [2]
Less:
Tax-equivalent                    825                               852
adjustment
Net interest income             $ 24,423                          $ 22,902
[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 18



STERLING BANCORP
Average Balance Sheets [1]
(Unaudited)
(dollars in thousands)
                      Six Months Ended
                      June 30, 2013                     June 30, 2012
                      Average               Average     Average               Average
                      Balance     Interest  Rate        Balance     Interest  Rate
Assets
 Interest-bearing
deposits with other $ 80,877    $ 100       0.25    % $ 56,530    $ 64        0.23    %
banks
 Investment
Securities
 Available for     311,560     3,243     2.08        362,549     4,636     2.56
sale - taxable
 Held to           250,656     2,184     1.74        265,034     3,074     2.32
maturity - taxable
 Tax-exempt [2]    151,168     4,728     6.25        156,790     4,898     6.25
 Total
investment            713,384     10,155    2.85        784,373     12,608    3.22
securities
 FRB and FHLB        7,572       179       4.71        8,440       217       5.13
stock [2]
 Loans, net of
unearned discount    1,729,256   44,842    5.37        1,478,535   39,730    5.54
[3]
Total
Interest-Earning      2,531,089   55,276    4.47    %   2,327,878   52,619    4.59    %
Assets [2]
 Cash and due from   42,536                            37,125
banks
 Allowance for       (24,096)                          (21,631)
loan losses
 Goodwill            22,901                            22,901
 Other               141,711                           130,471
Total Assets        $ 2,714,141                       $ 2,496,744
Liabilities and
Shareholders'
Equity
 Interest-bearing
deposits
 Domestic
 Savings       $ 25,869      2         0.02    % $ 19,889      2         0.02    %
 NOW             221,557     92        0.08        217,081     143       0.13
 Money market    535,186     1,366     0.51        397,565     1,157     0.59
 Time            561,463     1,710     0.61        599,646     2,075     0.70
 Total
Interest-Bearing      1,344,075   3,170     0.48        1,234,181   3,377     0.55
Deposits
 Borrowings
 Securities sold   34,798      61        0.35        40,962      74        0.36
u/a/r - customers
 Securities sold   183         -         0.27        5,302       31        1.16
u/a/r - dealers
 Federal funds     2,514       3         0.23        7,032       7         0.19
purchased
 Commercial
paper and other
 short-term      15,440      25        0.32        14,943      21        0.29
borrowings
 Advances - FHLB   100,840     782       1.56        122,337     1,037     1.70
 Long-term
borrowings - sub      25,774      1,047     8.38        25,774      1,047     8.38
debt
Total Borrowings      179,549     1,918     2.15        216,350     2,217     2.06
 Total
Interest-Bearing      1,523,624   5,088     0.67    %   1,450,531   5,594     0.78    %
Liabilities
Noninterest-bearing   885,665                           763,058
demand deposits
 Total including
noninterest-bearing
 demand deposits    2,409,289   5,088     0.44    %   2,213,589   5,594     0.53    %
Other liabilities     74,119                            59,546
Total Liabilities     2,483,408                         2,273,135
Shareholders'         230,733                           223,609
equity
Total Liabilities
and Shareholders'   $ 2,714,141                       $ 2,496,744
Equity
Net interest                      50,188    3.80    %               47,025    3.81    %
income/spread [2]
Net yield on
interest-earning                            4.06    %                         4.09    %
assets [2]
Less:
Tax-equivalent                    1,657                             1,716
adjustment
Net interest income             $ 48,531                          $ 45,309
[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 18



STERLING BANCORP
Rate/Volume Analysis [1]
(Unaudited)
(dollars in thousands)
                                           Increase/(Decrease)
                                           Three Months Ended
                                           June 30, 2013 to June 30, 2012
                                           Volume       Rate        Net [2]
INTEREST INCOME
Interest-bearing deposits with         $   20       $   5       $   25
other banks
Investment Securities
 Available for sale - taxable             (554)        (334)       (888)
 Held to maturity - taxable               (11)         (377)       (388)
 Tax-exempt                              (79)         -           (79)
 Total investment                     (644)        (711)       (1,355)
securities
FRB and FHLB stock                         (11)         (7)         (18)
Loans, net of unearned                     2,640        (84)        2,556
discounts [3]
TOTAL INTEREST INCOME                  $   2,005    $   (797)   $   1,208
INTEREST EXPENSE
Interest-bearing deposits
 Domestic
 Savings                            $   -        $   -       $   -
 NOW                                    3            (24)        (21)
 Money market                           188          (91)        97
 Time                                   (127)        (85)        (212)
 Total interest-bearing               64           (200)       (136)
deposits
Borrowings
 Securities sold under agreements to      (5)          (1)         (6)
repurchase - customers
 Securities sold under agreements to      (8)          (7)         (15)
repurchase - dealers
 Federal funds purchased                  (4)          1           (3)
 Commercial paper and other               -            2           2
short-term borrowings
 Advances - FHLB                          (85)         (43)        (128)
 Long-term borrowings -                   -            -           -
subordinated debentures
 Total borrowings                     (102)        (48)        (150)
TOTAL INTEREST EXPENSE                 $   (38)     $   (248)   $   (286)
NET INTEREST INCOME                    $   2,043    $   (549)   $   1,494
[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 18



STERLING BANCORP
Rate/Volume Analysis [1]
(Unaudited)
(dollars in thousands)
                                           Increase/(Decrease)
                                           Six Months Ended
                                           June 30, 2013 to June 30, 2012
                                           Volume       Rate         Net [2]
INTEREST INCOME
Interest-bearing deposits with         $   30       $   6         $  36
other banks
Investment Securities
 Available for sale - taxable             (610)        (783)        (1,393)
 Held to maturity - taxable               (172)        (718)        (890)
 Tax-exempt                              (170)        -            (170)
 Total investment                     (952)        (1,501)      (2,453)
securities
FRB and FHLB stock                         (21)         (17)         (38)
Loans, net of unearned                     6,405        (1,293)      5,112
discounts [3]
TOTAL INTEREST INCOME                  $   5,462    $   (2,805)   $  2,657
INTEREST EXPENSE
Interest-bearing deposits
 Domestic
 Savings                            $   -        $   -         $  -
 NOW                                    2            (53)         (51)
 Money market                           375          (166)        209
 Time                                   (128)        (237)        (365)
 Total interest-bearing               249          (456)        (207)
deposits
Borrowings
 Securities sold under agreements to      (11)         (2)          (13)
repurchase - customers
 Securities sold under agreements to      (17)         (14)         (31)
repurchase - dealers
 Federal funds purchased                  (5)          1            (4)
 Commercial paper and other               1            3            4
short-term borrowings
 Advances - FHLB                          (175)        (80)         (255)
 Long-term borrowings -                   -            -            -
subordinated debentures
 Total borrowings                     (207)        (92)         (299)
TOTAL INTEREST EXPENSE                 $   42       $   (548)     $  (506)
NET INTEREST INCOME                    $   5,420    $   (2,257)   $  3,163
[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 2012 has been allocated entirely to the volume
variance.
[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 18



STERLING BANCORP
Reconciliation of Tangible Common Equity, Average Tangible Equity and
Tangible Assets
(Unaudited)
(dollars in thousands)
This press release contains certain supplemental financial information,
described in the following tables, which has
been determined by methods other than U.S. generally accepted accounting
principles ("GAAP"). Management believes
that these non-GAAP financial measures provide useful supplemental information
to both management and investors
in evaluating Sterling's capital position. Tangible common equity represents
shareholders' equity less preferred equity
(if any), goodwill and other intangibles. Tangible assets are equal to total
assets less goodwill and other intangibles.
Tangible common equity ratio is calculated by dividing tangible common equity
by tangible assets. Average tangible
equity represents average shareholders' equity less average goodwill and other
intangible assets. Return on average
tangible equity is calculated by dividing net income (annualized) by average
tangible equity. These non-GAAP measures
should not be considered a substitute for GAAP basis measures and results, and
Sterling strongly encourages investors
to review its consolidated financial statements in their entirety and not to
rely on any single financial measure. Non-GAAP
financial measures are not standardized, and, therefore, it may not be
possible to compare these financial measures
with other companies' non-GAAP financial measures that may have
the same or similar names.
                                                         June 30,
                                                         2013        2012
Tangible common
equity
 Total                                               $ 233,480   $ 227,551
shareholders' equity
 Less: Goodwill
and other intangible                                     23,638      22,975
assets
 Total tangible                                      $ 209,842   $ 204,576
common equity
Tangible assets
 Total assets                                        $ 2,732,298 $ 2,551,696
 Less: Goodwill
and other intangible                                     23,638      22,975
assets
 Total tangible                                      $ 2,708,660 $ 2,528,721
assets
Tangible common                                          7.75%       8.09%
equity ratio
                         ThreeMonthsEndedJune30,    SixMonthsEnded June
                                                         30,
                         2013               2012         2013        2012
Average tangible
equity
 Average           $   232,204      $     225,534    $ 230,733   $ 223,609
shareholders' equity
 Less:
 Average goodwill
and other intangible     23,647             22,975       23,656      22,975
assets
 Average tangible  $   208,557      $     202,559    $ 207,077   $ 200,634
equity
Return on average
tangible equity
 Net income
(annualized)/average     8.70%              9.68%        9.51%       9.50%
tangible equity
Page 16 of 18



STERLING BANCORP
Reconciliation of Income Before Income Taxes, Net income and Noninterest
Expense
(Unaudited)
(dollars in thousands)
This press release contains certain supplemental financial information,
described in the following tables, which has
been determined by methods other than U.S. generally accepted accounting
principles ("GAAP"). Management believes
that these non-GAAP financial measures provide useful supplemental information
to both management and investors
in evaluating Sterling's noninterest expenses, income before income taxes and
net income. Income from recurring
operations before income taxes represents income before taxes and merger
related professional fees. Net income
from recurring operations represents income from recurring operations before
income taxes reduced by the amount of
income taxes attributable to merger related professional fees. Noninterest
expense from recurring operations represents
noninterest expenses before the impact of merger related professional fees.
These non-GAAP measures should not
be considered a substitute for GAAP basis measures and results, and Sterling
strongly encourages investors to review
its consolidated financial statements in their entirety and not to rely on any
single financial measure. Non-GAAP financial
measures are not standardized, and, therefore, it may not be possible to
compare these financial measures with other
companies' non-GAAP financial measures that may
have the same or similar names.
                    ThreeMonthsEndedJune30,    SixMonthsEndedJune30,
                    2013               2012         2013             2012
Income before   $   6,953        $     7,001      $ 14,897      $    13,650
income taxes
Merger related
professional        1,400              -            1,400            -
fees
Income from
recurring
operations
before
 income taxes  $   8,353        $     7,001      $ 16,297      $    13,650
Net income      $   4,524        $     4,873      $ 9,768       $    9,475
Merger related
professional
fees,
 net of income     1,089              -            1,089            -
tax
Net income from
recurring       $   5,613        $     4,873      $ 10,857      $    9,475
operations
Noninterest     $   25,806       $     23,626     $ 50,645      $    46,670
expense
Merger related
professional        (1,400)            -            (1,400)          -
fees
Noninterest
expense from    $   24,406       $     23,626     $ 49,245      $    46,670
recurring
operations
Page 17 of 18



STERLING BANCORP
Reconciliation of Net Income Per Average Common Share
(Unaudited)
This press release contains certain supplemental financial information,
described in the following tables, which has
been determined by methods other than U.S. generally accepted accounting
principles ("GAAP"). Management believes
that these non-GAAP financial measures provide useful supplemental information
to both management and investors
in evaluating Sterling's net income per average common share. Net income from
recurring operations per average
common share is calculated by dividing net income from recurring operations by
the average number of common
shares outstanding. These non-GAAP measures should not be considered a
substitute for GAAP basis measures
and results, and Sterling strongly encourages investors to review its
consolidated financial statements in their entirety
and not to rely on any single financial measure. Non-GAAP financial measures
are not standardized, and, therefore,
it may not be possible to compare these financial measures with other
companies' non-GAAP financial measures
that may have
the same or
similar names.
                   ThreeMonthsEndedJune30,       SixMonthsEndedJune30,
                   2013              2012            2013           2012
Average number
of common
shares
outstanding
 Basic      30,902,957        30,818,709      30,882,237     30,805,484
 Diluted    30,902,957        30,818,709      30,882,237     30,805,484
Net income per
average common
share
 Basic   $  0.15          $   0.16         $  0.32        $  0.31
 Diluted    0.15              0.16            0.32           0.31
Net income from
recurring
operations
 per average
common share
 Basic   $  0.18          $   0.16         $  0.35        $  0.31
 Diluted    0.18              0.16            0.35           0.31
Page 18 of 18





SOURCE Sterling Bancorp

Website: http://www.sterlingbancorp.com
Contact: John Tietjen, Chief Financial Officer, Sterling Bancorp,
john.tietjen@sterlingbancorp.com, 212.757.8035; Edward Nebb, Investor
Relations, Comm-Counsellors, LLC, enebb@optonline.net, 203.972.8350
 
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