Sterling Bancorp Reports 22% Rise in EPS for 2008 First Quarter, Net Income Was $4.0 Million or $0.22 per Share

NEW YORK, April 24 /PRNewswire-FirstCall/ -- Sterling Bancorp , a financial holding company and the parent company of Sterling National Bank, today reported its financial results for the first quarter ended March 31, 2008.

First Quarter 2008 Highlights * Strong Earnings -- Earnings per share rose 22%, to $0.22 on a diluted basis from $0.18 in the first quarter of 2007. First quarter net income was $4.0 million, up 15% from $3.5 million for the year-ago period. * Increased Net Interest Margin -- The net interest margin, on a tax equivalent basis, rose 15 basis points to 4.39%, from 4.24% a year ago. * Higher Gross Revenue -- The increase in gross revenue (interest income plus noninterest income) was largely due to higher investment securities and loan balances. * Increased Loan and Demand Deposit Balances -- Loans held in portfolio rose 6.9% from a year ago, ending the quarter at $1,155.4 million. Demand deposits were $494.3 million at quarter-end, up 7.1% from March 31, 2007. * Consistent Asset Quality -- The ratio of nonperforming assets to total assets at March 31, 2008 was 0.42%, compared with 0.43% at March 31, 2007. Page 1 of 12

"Sterling is off to a strong start for 2008. In a period of nearly unprecedented economic turbulence, we delivered a 22% increase in earnings per share, continued loan growth, rising core demand deposits and stable asset quality. Our increased profitability was the result of our continuing focus on growing our business and improving the net interest margin, while controlling funding costs, credit risk and operating expenses," noted Louis J. Cappelli, Chairman and Chief Executive Officer. He added, "At a time when many financial institutions have suspended or reduced their dividends, Sterling has continued its commitment to this important element of shareholder value, most recently with the dividend paid on March 31, 2008."

"In the critical area of asset quality, Sterling continued to benefit from our longstanding prudent approach to underwriting and risk management. While no institution is immune to the present disruption in the financial markets, we have a diverse loan portfolio with limited exposure to consumer debt, home equity lending products, credit card receivables, auto loans or other asset classes that have recently generated losses for some institutions."

"We are continuing to experience positive momentum in our business, reflected in our robust loan pipeline," Mr. Cappelli continued. "We remain a consistent and reliable source of funding, while some competing institutions have had to withdraw from providing credit due to capital constraints or the dislocation caused by industry consolidation. We continue to believe that, in the current environment, our strong capital and liquidity have positioned Sterling to take advantage of opportunities to serve the unmet credit needs of customers in our market."

First Quarter 2008 Financial Results

Net income for the 2008 first quarter was $4.0 million or $0.22 per diluted share, an increase of 22% in EPS compared with $3.5 million or $0.18 per diluted share for the same quarter of 2007.

The primary source of this earnings increase was higher net interest income, which rose to $20.0 million on a tax equivalent basis for the first quarter of 2008, up 13.1% from $17.6 million in the same period of 2007. The increase in net interest income primarily reflected higher interest income generated by growth in earning assets, coupled with lower funding costs due to the Federal Reserve's actions on interest rates and the Company's strategy to employ wholesale funding rather than rely on higher-priced certificates of deposit.

Reflecting the above factors, the net interest margin rose to 4.39% for the 2008 first quarter versus 4.24% for the same period last year.

Noninterest income was $8.7 million for the first quarter of 2008, compared with $9.2 million in the same period last year. The decrease principally resulted from lower mortgage banking income due to valuation adjustments on loans held for sale, coupled with lower volume of loans sold and higher losses on sales of other real estate owned.

Page 2 of 12

Noninterest expenses for the 2008 first quarter were $20.2 million, compared to $19.6 million for the same quarter last year. Reflecting the Company's cost-control discipline, this was an increase of only 2.7%, primarily due to higher salaries and benefit costs.

The provision for income taxes was $2.4 million and $2.2 million for the first quarter of 2008 and 2007, respectively.

Asset and Deposit Growth

Loans held in portfolio, net of unearned discounts, were $1,155.4 million at March 31, 2008, up 6.9% from March 31, 2007. The year-over-year growth in the loan portfolio reflected robust demand in the Company's marketplace.

Investment securities totaled $761.0 million at March 31, 2008, up from $571.3 million a year ago, primarily due to the implementation of asset/liability management strategies designed to capitalize on current market conditions.

Demand deposits were $494.3 million at the end of the 2008 first quarter, compared to $461.7 million a year earlier, and represented 33% of total deposits, one of the highest ratios of demand to total deposits in the industry.

Asset Quality Highlights

The provision for loan losses was $2.0 million for the first quarter of 2008, compared to $1.3 million for the prior year period.

The ratio of nonperforming assets to total assets was 0.42% at March 31, 2008, compared to 0.43% at March 31, 2007. The allowance for loan losses as a percentage of total loans held in portfolio was 1.31% at March 31, 2008, compared to 1.46% at March 31, 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 numerous other factors.

Capital Management and Dividends

As of March 31, 2008, the Company exceeded the requirements for a well- capitalized institution for regulatory purposes. Its Tier 1 risk-weighted capital ratio was 9.73% and its Tier 1 leverage ratio was 6.76% at that date.

Sterling paid a cash dividend of $0.19 per common share on March 31, 2008, to shareholders of record as of March 15, 2008. This extended the Company's record of dividend payments to 249 consecutive quarters, or more than 62 years.

Page 3 of 12 Conference Call

Sterling Bancorp will host a teleconference call for the financial community on April 24, 2008 at 10:00 a.m. Eastern Time to discuss the 2008 first quarter financial results. The public is invited to listen to this conference call by dialing 800-762-7308 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 April 24, 2008 until 11:59 p.m. Eastern Time on May 8, 2008. To access the replay by telephone, interested parties may dial 800-475-6701 and enter the access code 920378.

About Sterling Bancorp

Sterling Bancorp 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 positive momentum in the Company's business, its robust loan pipeline and its belief that, in the current environment, the Company's strong capital and liquidity have positioned it to take advantage of opportunities to serve the unmet credit needs of customers in its market, 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 4 of 12 STERLING BANCORP Consolidated Financial Highlights (Unaudited) (dollars and shares in thousands, except per share data) Three Months Ended March 31, 2008 2007 OPERATING HIGHLIGHTS (1) Interest income $29,769 $29,107 Interest expense 9,934 11,604 Provision for loan losses 1,950 1,250 Noninterest income 8,672 9,183 Noninterest expenses 20,166 19,638 Income from continuing operations, before income taxes 6,391 5,798 Provision for income taxes 2,389 2,226 Income from continuing operations 4,002 3,572 Loss from discontinued operations, net of income taxes 0 (92) Net income 4,002 3,480 Net income per average common share: Basic 0.22 0.19 Diluted 0.22 0.18 Income from continuing operations per average common share: Basic 0.22 0.19 Diluted 0.22 0.19 Cash dividends declared 0.19 0.19 Common shares outstanding: Period end 17,989 18,665 Average Basic 17,921 18,645 Average Diluted 18,120 19,128 Return on average assets(2) 0.80% 0.79% Return on average tangible equity(3) 16.57% 13.47% Return on average stated equity(4) 13.41% 11.11% Net interest spread, tax- equivalent basis 3.69% 3.19% Net interest margin, tax- equivalent basis 4.39% 4.24% (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 5 of 12 STERLING BANCORP Consolidated Financial Highlights (Unaudited) (dollars in thousands, except per share data) Three Months Ended March 31, 2008 2007 BALANCE SHEET HIGHLIGHTS(1) Period End Balances Investment securities $761,028 $571,349 Loans held for sale 22,235 39,576 Loans held in portfolio, net of unearned discount 1,155,402 1,080,587 Total earning assets 1,939,343 1,693,363 Allowance for loan losses 15,162 15,806 Total assets from continuing operations 2,105,357 1,872,876 Total assets 2,105,357 1,874,178 Demand deposits 494,308 461,734 Savings, NOW and money market deposits 466,070 481,074 Time deposits 534,657 566,350 Customer repurchase agreements 48,753 61,607 Other short-term borrowings 160,516 30,228 Long-term borrowings 175,774 45,774 Shareholders' equity(2) 123,322 133,017 Average Balances Investment securities $720,486 $579,105 Loans held for sale 23,388 39,227 Loans held in portfolio, net of unearned discount 1,081,085 1,014,079 Total earning assets 1,828,290 1,682,963 Total assets from continuing operations 2,006,040 1,843,525 Total assets 2,006,040 1,844,683 Demand deposits 440,860 434,798 Savings, NOW and money market deposits 464,874 449,984 Time deposits 551,395 566,750 Customer repurchase agreements 82,460 95,047 Other short-term borrowings 133,838 29,747 Long-term borrowings 114,236 45,774 Shareholders' equity(2) 120,023 130,446 ASSET QUALITY HIGHLIGHTS(1) Period End Net charge-offs $1,498 $1,732 Nonperforming loans 6,586 5,573 Other real estate owned 2,186 2,415 Nonperforming assets 8,772 7,988 Nonperforming loans/loans(3) 0.56% 0.50% Nonperforming assets/assets 0.42% 0.43% Allowance for loan losses/loans(4) 1.31% 1.46% Allowance for loan losses/ nonperforming loans 230.22% 283.62% Capital Ratios(2) Tier 1 risk based 9.73% 11.78% Total risk based 10.84% 13.03% Leverage 6.76% 8.04% Book value per common share (2) $6.86 $7.13 (1) Unless otherwise indicated, all amounts and ratios are presented based on continuing operations. (2) Includes the effects of discontinued operations. (3) The term "loans" includes loans held for sale and loans held in portfolio. (4) The term "loans" includes loans held in portfolio only. Page 6 of 12 STERLING BANCORP Consolidated Balance Sheets (Unaudited) (in thousands, except number of shares) March 31, 2008 2007 ASSETS Cash and due from banks $53,033 $81,699 Interest-bearing deposits with other banks 678 1,851 Investment securities Available for sale (at estimated market value) 412,521 144,969 Held to maturity (at amortized cost) 348,507 426,380 Total investment securities 761,028 571,349 Loans held for sale 22,235 39,576 Loans held in portfolio, net of unearned discounts 1,155,402 1,080,587 Less allowance for loan losses 15,162 15,806 Loans held in portfolio, net 1,140,240 1,064,781 Customers' liability under acceptances 0 487 Goodwill 22,901 22,862 Premises and equipment, net 10,776 11,640 Other real estate 2,186 2,415 Accrued interest receivable 8,168 5,196 Bank owned life insurance 29,310 28,202 Other assets 54,802 44,120 $2,105,357 $1,874,178 LIABILITIES AND SHAREHOLDERS' EQUITY Deposits Demand $494,308 $461,734 Savings, NOW and money market 466,070 481,074 Time 534,657 566,350 Total deposits 1,495,035 1,509,158 Securities sold under agreements to repurchase - customers 48,753 61,607 Securities sold under agreements to repurchase - dealers 44,514 0 Federal funds purchased 45,000 0 Commercial paper 19,990 27,652 Short-term borrowings - FHLB 49,000 0 Short-term borrowings - other 2,012 2,576 Long-term borrowings - FHLB 150,000 20,000 Long-term borrowings - subordinated debentures 25,774 25,774 Acceptances outstanding 0 487 Accrued expenses and other liabilities 101,957 93,907 Total liabilities 1,982,035 1,741,161 Shareholders' equity 123,322 133,017 $2,105,357 $1,874,178 MEMORANDA Available for sale securities - amortized cost $411,868 $148,098 Held to maturity securities - estimated market value 352,861 419,064 Shares outstanding Common issued 21,813,131 21,262,170 Common in treasury 3,824,161 2,597,302 Page 7 of 12 STERLING BANCORP Consolidated Statements of Income (Unaudited) (dollars in thousands, except per share data) Three Months Ended March 31, 2008 2007 INTEREST INCOME Loans $20,820 $21,727 Investment securities - available for sale 4,712 1,845 Investment securities - held to maturity 4,225 4,869 Federal funds sold 0 635 Deposits with other banks 12 31 Total interest income 29,769 29,107 INTEREST EXPENSE Savings, NOW and money market deposits 1,610 2,859 Time deposits 5,338 6,548 Securities sold u/a/r - customers 646 1,075 Securities sold u/a/r - dealers 317 0 Federal funds purchased 362 12 Commercial paper 195 350 Short-term borrowings - FHLB 215 0 Short-term borrowings - other 14 12 Long-term borrowings - FHLB 714 225 Long-term subordinated debentures 523 523 Total interest expense 9,934 11,604 Net interest income 19,835 17,503 Provision for loan losses 1,950 1,250 Net interest income after provision for loan losses 17,885 16,253 NONINTEREST INCOME Accounts receivable management/ factoring commissions and other fees 3,565 3,668 Service charges on deposit accounts 1,352 1,482 Other customer related service charges and fees 675 690 Mortgage banking income 2,499 2,832 Trust fees 135 141 Bank owned life insurance income 269 252 Loss on sale of OREO (228) (46) Other income 405 164 Total noninterest income 8,672 9,183 NONINTEREST EXPENSES Salaries 9,348 9,209 Employee benefits 2,836 2,278 Total personnel expense 12,184 11,487 Occupancy and equipment expenses, net 3,009 2,708 Advertising and marketing 635 964 Professional fees 1,364 1,340 Communications 456 516 Other expenses 2,518 2,623 Total noninterest expenses 20,166 19,638 Income from continuing operations before income taxes 6,391 5,798 Provision for income taxes 2,389 2,226 Income from continuing operations 4,002 3,572 Discontinued operations: Loss, net of income taxes 0 (92) Net income $4,002 $3,480 Page 8 of 12 STERLING BANCORP Consolidated Statements of Income (Unaudited) (dollars in thousands, except per share data) (continued) Three Months Ended March 31, 2008 2007 Average number of common shares outstanding Basic 17,920,938 18,645,423 Diluted 18,120,025 19,128,056 Income from continuing operations, per average common share Basic $0.22 $0.19 Diluted 0.22 0.19 Net income per average common share Basic 0.22 0.19 Diluted 0.22 0.18 Dividends per common share 0.19 0.19 Page 9 of 12 STERLING BANCORP Consolidated Statements of Comprehensive Income (Unaudited) (in thousands) Three Months Ended March 31, 2008 2007 Net income $4,002 $3,480 Other comprehensive income, net of tax: Unrealized holding gains arising during the period 1,355 336 Amortization of: Prior service cost 9 14 Net actuarial losses 230 182 Comprehensive income $5,596 $4,012 STERLING BANCORP Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (in thousands) Three Months Ended March 31, 2008 2007 Balance, at beginning of period $121,070 $132,263 Net income for period 4,002 3,480 Common shares issued under stock incentive plan and related tax benefits 6,265 740 Cash dividends-Common shares (3,409) (3,542) Surrender of shares issued under incentive compensation plan (5,218) (456) Change in net unrealized holding gains/(losses) on available for sale securities 1,355 336 Adjustment to retained earnings upon adoption of EITF Issue 06-4 effective January 1, 2008 (982) 0 Amortization of: Prior service cost 9 14 Net actuarial losses 230 182 Balance, at end of period $123,322 $133,017 Page 10 of 12 STERLING BANCORP Average Balance Sheets [1] (Unaudited) (dollars in thousands) Three Months Ended March 31, 2008 March 31, 2007 AVERAGE AVERAGE AVERAGE AVERAGE BALANCE INTEREST RATE BALANCE INTEREST RATE Assets Interest-bearing deposits with other banks $3,331 $12 1.40% $2,830 $31 4.40% Investment securities - available for sale 345,034 4,533 5.26 134,632 1,640 4.87 Investment securities - held to maturity 356,320 4,225 4.74 423,120 4,869 4.60 Investment securities - tax exempt[2] 19,132 294 6.18 21,353 338 6.43 Total investment securities 720,486 9,052 5.03 579,105 6,847 4.73 Federal funds sold 0 0 0.00 47,722 635 5.33 Loans, net of unearned discount[3] 1,104,473 20,820 7.80 1,053,306 21,727 8.66 Total Interest- Earning Assets[2] 1,828,290 29,884 6.65% 1,682,963 29,240 7.15% Cash and due from banks 67,626 67,499 Allowance for loan losses (15,570) (16,876) Goodwill 22,901 22,862 Other 102,793 87,077 Assets - discontinued operations 0 1,158 Total Assets $2,006,040 $1,844,683 Liabilities and Shareholders' Equity Interest-bearing deposits Domestic Savings $18,649 16 0.34% $20,902 25 0.48% NOW 236,714 825 1.40 222,019 1,398 2.55 Money market 209,511 769 1.48 207,063 1,436 2.81 Time 550,819 5,336 3.90 566,176 6,546 4.69 Foreign Time 576 2 1.09 574 2 1.09 Total Interest- Bearing Deposits 1,016,269 6,948 2.75 1,016,734 9,407 3.75 Borrowings Securities sold u/a/r - customers 82,460 646 3.15 95,047 1,075 4.59 Securities sold u/a/r - dealers 36,026 317 3.54 0 0 0.00 Federal funds purchased 48,956 362 2.92 945 12 5.24 Commercial paper 21,150 195 3.70 27,902 350 5.08 Short-term borrowings - FHLB 25,868 215 3.34 0 0 0.00 Short-term borrowings - other 1,838 14 3.09 900 12 5.35 Long-term borrowings - FHLB 88,462 714 3.23 20,000 225 4.49 Long-term borrowings - sub debt 25,774 523 8.38 25,774 523 8.38 Total Borrowings 330,534 2,986 3.63 170,568 2,197 5.22 Total Interest- Bearing Liabilities 1,346,803 9,934 2.96% 1,187,302 11,604 3.96% Noninterest-bearing demand deposits 440,860 434,798 Other liabilities 98,354 91,701 Liabilities - discontinued operations 0 436 Total Liabilities 1,886,017 1,714,237 Shareholders' equity 120,023 130,446 Total Liabilities and Shareholders' Equity $2,006,040 $1,844,683 Net interest income/spread[2] 19,950 3.69% 17,636 3.19% Net yield on interest-earning assets 4.39% 4.24% Less: Tax-equivalent adjustment 115 133 Net interest income $19,835 $17,503 [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 11 of 12 STERLING BANCORP Rate/Volume Analysis [1] (Unaudited) (in thousands) Increase/(Decrease) Three Months Ended March 31, 2008 Volume Rate Net [2] INTEREST INCOME Interest-bearing deposits with other banks $4 $(23) $(19) Investment securities - available for sale 2,753 140 2,893 Investment securities - held to maturity (780) 136 (644) Investment securities - tax exempt (31) (13) (44) Total investment securities 1,942 263 2,205 Federal funds sold (635) 0 (635) Loans, net of unearned discounts [3] 1,348 (2,255) (907) TOTAL INTEREST INCOME $2,659 $(2,015) $644 INTEREST EXPENSE Interest-bearing deposits Domestic Savings $(3) $(6) $(9) NOW 102 (675) (573) Money market 32 (699) (667) Time (105) (1,105) (1,210) Foreign Time 0 0 0 Total interest-bearing deposits 26 (2,485) (2,459) Borrowings Securities sold under agreements to repurchase - customers (118) (311) (429) Securities sold under agreements to repurchase - dealers 317 0 317 Federal funds purchased 357 (7) 350 Commercial paper (71) (84) (155) Short-term borrowings - FHLB 215 0 215 Short-term borrowings - other 9 (7) 2 Long-term borrowings - FHLB 568 (79) 489 Long-term borrowings - subordinated debentures 0 0 0 Total borrowings 1,277 (488) 789 TOTAL INTEREST EXPENSE $1,303 $(2,973) $(1,670) NET INTEREST INCOME $1,356 $958 $2,314 [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 12 of 12