2014

Sterling Bancorp Reports Net Income Of $20.0 Million For 2012, Increasing 14% From The Prior Year REVENUE GROWTH, EXPENSE CONTROL AND CONTINUED SOUND ASSET QUALITY DRIVE STRONG PERFORMANCE FOR FULL YEAR AND FOURTH QUARTER OF 2012

LOANS GROW 17% AND DEPOSITS RISE 14%, REACHING RECORD LEVELS

NEW YORK, Jan. 24, 2013 /PRNewswire/ --

Strong Financial Performance

  • Net income available to common shareholders was $20.0 million or $0.65 per diluted share for the full year and $5.2 million or $0.17 per diluted share for fourth quarter 2012.
  • Pre-tax income rose 31% for the full year and 58% in the fourth quarter of 2012, before the effect of a net tax benefit of approximately $1.9 million in the 2011 periods.
  • Gross revenues were $145.7 million for the full year 2012, an increase of $5.1 million over 2011.
  • Growth in gross revenues of 4% for 2012 exceeded the noninterest expense increase of 2%.
  • Net interest margin increased 16 basis points to 4.17% for full year 2012.

Robust Loan and Deposit Growth

  • Loans, net of unearned discount, reached an all-time high of $1.8 billion, increasing 17%.
  • Total deposits increased 14% to a record $2.3 billion.
  • Demand deposits of $924.4 million represented over 40% of total deposits.

Solid Credit Metrics

Comparisons above are at, or for the periods ended, December 31, 2012 vs. December 31, 2011.

  • Net charge-offs were 0.47% of loans in portfolio for full year 2012.
  • Ratio of nonperforming assets to total assets decreased to 0.27%.
  • Allowance for loan losses as a percentage of loans held in portfolio was 1.35%.

Sterling Bancorp (NYSE: STL) today reported strong financial and operating performance for 2012, reflecting a more profitable earning asset mix, ongoing business growth, expense control and continued sound asset quality.

Net income available to common shareholders rose to $20.0 million for the full year 2012, from $15.5 million in 2011. Pre-tax income was $28.6 million in 2012, 31% higher than the amount reported for 2011.  Diluted earnings per common share were $0.65 for 2012, up from $0.51 a year ago. Results for the full year 2011 included $2.1 million of dividends on preferred shares and accretion related to TARP preferred shares and warrants to purchase common shares, which were redeemed in April 2011.

For the 2012 fourth quarter, net income available to common shareholders was $5.2 million, or $0.17 per diluted share.  In the 2011 fourth quarter, Sterling recorded a tax benefit of approximately $1.9 million, or $0.06 per diluted share. Including this tax benefit, net income available to common shareholders for the 2011 fourth quarter was $5.3 million or $0.17 per diluted share.  Pre-tax income for the 2012 fourth quarter, excluding the effect of the year-ago tax benefit, rose 58% to $7.1 million.  

Selected Financial Highlights


Year Ended


12/31/12

12/31/11

EARNINGS HIGHLIGHTS



Income before income taxes (in millions)

$28.6

$21.8

Net income available to common shareholders (in millions)

$20.0

$15.5

Diluted earnings per common share

$0.65

$0.51

Net interest margin

4.17%

4.01%

Return on average assets

0.78%

0.70%

Return on average tangible equity

9.80%

8.72%

 

AVERAGE BALANCE SHEET HIGHLIGHTS (in millions)


Year Ended


12/31/12

12/31/11

Total investment securities

$755.4

$851.0

Loans, net of unearned discount

$1,583.8

$1,379.4

Demand deposits

$782.8

$596.6

Total deposits

$2,081.8

$1,921.7

Total assets

$2,576.8

$2,508.2




ASSET QUALITY HIGHLIGHTS (period end)



Nonaccrual loans/loans (1)

0.33%

0.42%

Nonperforming assets/assets

0.27%

0.33%

Allowance for loan losses/nonaccrual loans

377.36%

315.02%

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



2012 Results Reflect Business Growth, Higher Profitability

"Sterling delivered outstanding growth and strong profitability in 2012," said Louis J. Cappelli, Sterling's Chairman and Chief Executive Officer. "Our accomplishments during the year were noteworthy for double-digit increases in loans and deposits, as we continued to capitalize on opportunities to serve the needs of customers in the dynamic New York metropolitan area marketplace and beyond. We delivered higher gross revenues, through an increase in interest income and diverse sources of noninterest income.  In addition, we maintained disciplined management of operating expenses, even as we expanded the business organically and through an accretive acquisition, while our sound asset quality metrics were further strengthened."

"We have consistently pointed to our strategic focus on redeploying assets from lower yielding investments into higher yielding loans, and our results in 2012 benefitted from the successful execution of this strategy. This has led to higher loan balances, a more profitable earning asset mix, and a higher net interest margin, enabling Sterling to counter the margin compression that many other banks have experienced due to prevailing low interest rates.  Our loan portfolio grew by 17% year-over-year and reached an all-time high of $1.8 billion at year end.  Loans represented over 65% of earning assets for 2012 on average, a meaningful increase versus a year ago. Deploying our assets more profitably led to a 16 basis point increase in the net interest margin for the year 2012.  Our model is built upon providing a portfolio of financial solutions for businesses, and the growth in our business activity produced higher noninterest income, as well as higher demand deposit balances."     

"Another highlight of 2012 was our well-timed and successful acquisition of Universal Mortgage, Inc. in the third quarter.  This transaction was planned in advance of the current rebound in the mortgage market and, as expected, has proven to be an excellent source of additional mortgage volume and higher mortgage banking income. Reflecting the positive impact of the Universal acquisition, and the growth in our overall mortgage banking business, we saw a sharp increase in mortgage banking income in the 2012 fourth quarter. We believe there are opportunities to expand upon Universal's well-established presence and relationships in Brooklyn, a market that is experiencing exceptional growth and has a high demand for all of our financial products.  We plan to open a new Brooklyn location in the 2013 first quarter to serve both as a branch and as new and expanded offices for Universal Mortgage." 

"We believe the positive momentum we experienced in 2012 is continuing and that Sterling is well positioned for 2013. Our performance in the year ahead should continue to benefit from the strengths and strategies that drove our solid results last year.  Our team has demonstrated its ability to grow the business.  We believe that our ability to redeploy our assets, while generating revenue from a diverse and balanced range of sources, and serving the needs of customers in a vibrant marketplace with our dedicated team of talented professionals will continue to contribute to enhanced shareholder value going forward," Mr. Cappelli stated.

Net Interest Income

Net interest income was $93.9 million for the full year 2012, up 8% from 2011.  This primarily reflected a higher yield on earning assets due to the Company's previously noted strategy of shifting its asset mix toward loans from investment securities, as well as a lower cost of funds largely due to disciplined deposit pricing.   For the fourth quarter of 2012, net interest income increased nearly 9% from the 2011 period, to $24.8 million.

Noninterest Income

Total noninterest income for full year 2012 was $40.8 million, relatively unchanged from a year ago. For the 2012 fourth quarter, total noninterest income was $9.6 million, up from $9.2 million in the 2011 period.  The increase in the 2012 fourth quarter primarily reflected a sharp rise in mortgage banking income, which was partially offset by lower accounts receivable management and other related fees.  Noninterest income was a significant contributor to Sterling's financial performance, representing 28% of total revenue for the full year 2012.

Noninterest Expenses         

Sterling strengthened its operating leverage during 2012, as the rate of growth in noninterest expenses was exceeded by the increase in gross revenues.  Personnel and occupancy expenses rose modestly due to investments to support new business development and the addition of Universal Mortgage, while this increase was largely offset by declines in other key expense categories.  As a result, total noninterest expenses increased by approximately 2% for full year 2012 to $95.9 million.  For the 2012 fourth quarter, noninterest expenses rose less than 2% from the prior year period, to $24.9 million.

Record Loans and Deposits

Loans, net of unearned discount were a record $1.8 billion as of December 31, 2012, an increase of approximately 17% from a year earlier.  The ratio of loans to deposits was 78% at December 31, 2012.

Total deposits were a record $2.3 billion at December 31, 2012, increasing 14% from a year earlier. Noninterest-bearing demand deposits represented over 40% 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 $2.7 billion and earning assets were $2.6 billion at December 31, 2012.  The yield on earning assets rose six basis points to 4.64% for the full year 2012, reflecting the Company's strategy of redeploying assets into higher yielding loans from lower yielding investment securities. 

Asset Quality

"Sterling maintained our longstanding underwriting discipline while increasing our lending to creditworthy borrowers, leading to continued strong credit quality metrics during 2012.  It is significant to note that our allowance for loan losses has increased as charge-offs have continued to decline, and that our earnings improvement did not benefit from a reduced allowance for loan losses, as has been the case at some banking institutions," Mr. Cappelli said.

Net charge-offs were $7.7 million for the year 2012, compared to $10.2 million for 2011. The allowance for loan losses as a percentage of nonaccrual loans was 377% at December 31, 2012, versus 315% a year earlier. Nonperforming assets were $7.4 million or 0.27% of total assets at December 31, 2012, compared to $8.3 million or 0.33% a year earlier.  The allowance for loan losses as a percentage of portfolio loans was 1.35% at December 31, 2012, compared to 1.36% a year earlier.  The provision for loan losses was $2.5 million and $10.3 million for the fourth quarter and full year 2012, compared with $3.0 million and $12.0 million for the respective 2011 periods. 

Capital

The Company's capital base has continued to exceed all regulatory requirements for well-capitalized institutions.  At December 31, 2012, Sterling's Tier 1 risk-based capital ratio was 11.49% (compared to a requirement of 6.00%), total risk-based capital was 12.58% (requirement of 10.00%), and the Tier 1 leverage ratio was 9.14% (requirement of 5.00%).  The tangible common equity ratio was 7.50% at December 31, 2012.

Conference Call

Sterling Bancorp will hold a conference call on Thursday, January 24, 2013, at 10:00 a.m. Eastern Time to discuss these financial results.  To access the conference call live, interested parties may dial 800-230-1096 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 January 24, 2013, until 11:59 p.m. Eastern Time on February 7, 2013.  To access the replay by telephone, interested parties may dial 800-475-6701 and enter the Access Code 279219.

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.

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, our ability to continue capitalizing on opportunities to serve the needs of customers in the New York metropolitan market and beyond, as well as the strength of that market, to redeploy assets from lower yielding investments into higher yielding loans, to improve our earning asset mix, net interest margin and demand deposit balances, to counter margin compression, to effectively provide a portfolio of financial solutions for businesses, to continue to achieve additional mortgage volume and higher mortgage banking income from the Universal acquisition or otherwise, and to expand on Universal's well-established presence and relationships in Brooklyn, the extent to which Brooklyn will experience continued growth and high demand for our financial products, our success in opening a Brooklyn location for Universal in the 2013 first quarter, the continuation of positive momentum for our business into 2013, whether our performance in 2013 will continue to benefit from the strengths and strategies that drove our results in 2012, our team's ability to grow the business both organically and through acquisitions, whether acquisitions will be available and permissible and, if so, whether they will be well executed and contribute to growth, whether our strategy will continue to be to redeploy our assets, while generating revenue from a diverse and balanced range of sources, and serving the needs of customers and, if so, whether we can execute that strategy and enhance shareholder value going forward, whether we can continue to shift our asset mix toward loans from investment securities, our ability to maintain underwriting discipline, 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, 2011.

STERLING BANCORP



Consolidated Financial Highlights



(Unaudited)



(dollars in thousands, except per share data)
















Three Months Ended December 31, 


Twelve Months Ended December 31, 





2012


2011


2012


2011



BALANCE SHEET HIGHLIGHTS 











Period End Balances











   Investment securities


$683,245


$677,871


$683,245


$677,871



   Loans held for sale


121,237


43,372


121,237


43,372



   Loans held in portfolio, 











      net of unearned discount


1,649,753


1,473,309


1,649,753


1,473,309



   Interest bearing deposits with other banks


112,886


126,448


112,886


126,448



   Total earning assets


2,574,593


2,329,486


2,574,593


2,329,486



   Allowance for loan losses


22,347


20,029


22,347


20,029



   Total assets


2,749,711


2,493,297


2,749,711


2,493,297














   Demand deposits


924,351


765,800


924,351


765,800



   Savings, NOW and money market deposits


701,692


565,423


701,692


565,423



   Time deposits


642,041


657,848


642,041


657,848



   Customer repurchase agreements


32,950


47,313


32,950


47,313



   Advances FHLB/Long-term borrowings


127,039


148,507


127,039


148,507



   Shareholders' equity 


228,090


220,821


228,090


220,821














Average Balances











   Investment securities


718,377


751,832


755,399


850,997



   Loans held for sale


84,051


34,107


49,358


27,954



   Loans held in portfolio, 











      net of unearned discount


1,659,001


1,447,410


1,534,478


1,351,407



   Interest bearing deposits with other banks


65,532


213,713


58,836


93,561



   Total earning assets


2,534,429


2,455,554


2,406,089


2,332,689



   Total assets


2,708,674


2,637,788


2,576,812


2,508,184














   Demand deposits


849,094


711,011


782,771


596,608



   Savings, NOW and money market deposits


686,271


611,691


653,292


596,007



   Time deposits


690,283


788,800


645,745


729,053



   Customer repurchase agreements


39,079


45,328


39,318


42,911



   Advances FHLB/Long-term borrowings


127,165


148,630


139,067


155,332



   Shareholders' equity  


233,856


218,728


227,619


224,820














ASSET QUALITY HIGHLIGHTS 











Period End











   Net charge-offs


$2,278


$2,518


$7,725


$10,184



   Nonaccrual loans


5,922


6,358


5,922


6,358



   Other real estate owned


1,452


1,929


1,452


1,929



   Nonperforming assets


7,374


8,287


7,374


8,287



   Nonaccrual loans/loans (1)


0.33%


0.42%


0.33%


0.42%



   Nonperforming assets/assets


0.27%


0.33%


0.27%


0.33%



   Allowance for loan losses/loans (2)


1.35%


1.36%


1.35%


1.36%



   Allowance for loan losses/nonaccrual loans


377.36%


315.02%


377.36%


315.02%














CAPITAL RATIOS











Period End











   Tier 1 risk based


11.49%


12.61%


11.49%


12.61%



   Total risk based


12.58%


13.71%


12.58%


13.71%



   Leverage


9.14%


9.02%


9.14%


9.02%



   Equity/ assets


8.30%


8.86%


8.30%


8.86%



   Tangible common equity


7.50%


8.01%


7.50%


8.01%



   Book value per common share


$7.37


$7.14


$7.37


$7.14














Return on average equity


8.85%


9.68%


8.79%


7.83%



Return on average tangible equity


9.84%


10.82%


9.80%


8.72%














(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 16



 

STERLING BANCORP



Consolidated Balance Sheets



(Unaudited)



(dollars in thousands, except number of shares)




















December 31, 









2012


2011



ASSETS











Cash and due from banks





$

38,944

$

31,046



Interest-bearing deposits with other banks






112,886


126,448














Investment securities











    Available for sale (at estimated fair value)






296,837


270,014



    Held to maturity (at amortized cost)






386,408


407,857



            Total investment securities






683,245


677,871














Loans held for sale






121,237


43,372



Loans held in portfolio, net of unearned discounts





1,649,753


1,473,309



Less allowance for loan losses






22,347


20,029



            Loans held in portfolio, net






1,627,406


1,453,280



Federal Reserve Bank and Federal Home Loan Bank stock, at cost




7,472


8,486



Customers' liability under acceptances






-


4



Goodwill






22,901


22,901



Premises and equipment, net






22,578


23,625



Other real estate






1,452


1,929



Accrued interest receivable






6,853


6,838



Cash surrender value of  life insurance policies






54,553


53,446



Other assets






50,184


44,051








$

2,749,711

$

2,493,297














LIABILITIES AND SHAREHOLDERS' EQUITY











Deposits











    Demand





$

924,351

$

765,800



    Savings, NOW and money market






701,692


565,423



    Time






642,041


657,848



            Total deposits






2,268,084


1,989,071














Securities sold under agreements to repurchase - customers




32,950


47,313



Securities sold under agreements to repurchase - dealers




-


5,000



Commercial paper and other short-term borrowings                 




15,345


13,485



Advances - FHLB






101,265


122,733



Long-term borrowings - subordinated debentures






25,774


25,774



Acceptances outstanding






-


4



Accrued interest payable






649


1,064



Accrued expenses and other liabilities






77,554


68,032



            Total liabilities






2,521,621


2,272,476














Shareholders' equity






228,090


220,821








$

2,749,711

$

2,493,297



MEMORANDA











    Available for sale securities - amortized cost





$

291,574

$

271,729



    Held to maturity securities - estimated fair value





403,218


425,775



    Shares outstanding











        Common issued






35,263,768


35,225,110



        Common in treasury






4,307,972


4,300,278




































NOTE: Certain reclassifications have been made to prior period's financial data to conform to current financial statement presentations.























Page 8 of 16












 

 

STERLING BANCORP


Consolidated Statements of Income


(Unaudited)


(dollars in thousands, except per share data)














Three Months Ended December 31, 


Twelve Months Ended December 31, 




2012


2011


2012


2011


INTEREST INCOME










Loans

$

22,758

$

20,245

$

83,982

$

75,251


Investment securities - available for sale


1,946


2,333


9,172


10,453


Investment securities - held to maturity


2,612


3,133


11,196


13,363


FRB and FHLB stock


127


130


409


371


Deposits with other banks


39


135


136


227


            Total interest income


27,482


25,976


104,895


99,665












INTEREST EXPENSE










Savings, NOW and money market deposits


655


703


2,586


2,855


Time deposits


1,023


1,371


4,151


5,583


Securities sold u/a/r - customers


34


41


141


186


Securities sold u/a/r - dealers


-


17


31


66


Federal funds purchased


2


-


22


14


Commercial paper and other










  short-term borrowings


12


9


43


45


Advances - FHLB


419


497


1,913


2,144


Long-term subordinated debentures


524


524


2,094


2,094


            Total interest expense


2,669


3,162


10,981


12,987












Net interest income


24,813


22,814


93,914


86,678


Provision for loan losses


2,500


3,000


10,250


12,000


Net interest income after provision for loan losses

22,313


19,814


83,664


74,678












NONINTEREST INCOME










Accounts receivable management/










    factoring commissions and other fees


3,947


5,560


19,131


22,371


Service charges on deposit accounts


1,333


1,269


5,301


5,093


Trade finance income


460


487


1,922


2,222


Other customer related service charges and fees


286


235


1,001


943


Mortgage banking income


2,977


1,047


10,275


6,315


Income from life insurance policies


276


280


1,315


1,140


Securities gains


323


257


1,813


2,491


Gain(Loss) on sale of OREO


14


-


(61)


-


Other income


25


64


76


323


            Total noninterest income


9,641


9,199


40,773


40,898












NONINTEREST EXPENSES










Salaries


11,774


11,040


45,530


43,748


Employee benefits


3,824


3,448


14,902


13,898


    Total personnel expense


15,598


14,488


60,432


57,646


Occupancy and equipment expenses, net


3,644


3,391


13,689


13,248


Advertising and marketing


623


713


2,815


2,792


Professional fees


1,347


1,771


4,841


5,219


Communications


521


442


2,029


1,756


Deposit insurance


561


543


2,229


2,747


Other expenses


2,579


3,191


9,849


10,376


            Total noninterest expenses


24,873


24,539


95,884


93,784












Income before income taxes


7,081


4,474


28,553


21,792


Provision(Benefit) for income taxes 


1,881


(864)


8,537


4,196


Net income


5,200


5,338


20,016


17,596


Dividends on preferred shares and accretion


-


-


-


2,074


Net income available to 










    common shareholders

$

5,200

$

5,338

$

20,016

$

15,522
































Page 9 of 16

 

 


STERLING BANCORP



Consolidated Statements of Income



(Unaudited)



(dollars in thousands, except per share data)
















(continued)

































Three Months Ended December 31, 


Twelve Months Ended December 31, 





2012


2011


2012


2011



Average number of common shares outstanding











        Basic


30,857,367


30,789,539


30,828,293


30,038,047



        Diluted


30,857,367


30,789,539


30,828,293


30,038,047

























Net income available to common 











    shareholders per average common share











        Basic

$

0.17

$

0.17

$

0.65

$

0.51



        Diluted


0.17


0.17


0.65


0.51

























Dividends per common share


0.09


0.09


0.36


0.36















































 Page 10 of 16

 

 

STERLING BANCORP


Consolidated Statements of Comprehensive (Loss) Income 


(Unaudited)      


(dollars in thousands)
























Three Months Ended December 31, 


Twelve Months Ended December 31, 




2012


2011


2012


2011












Net income

$

5,200

$

5,338

$

20,016

$

17,596












Other comprehensive (loss) income,










   net of tax:










     Unrealized holding gains on securities










        arising during the period


139


1,502


4,878


244












     Reclassification adjustment for securities










        gains included in net income


(179)


(547)


(1,006)


(1,382)












Pension liability adjustment - net actuarial










   losses


(8,438)


(2,006)


(8,438)


(2,006)












Amortization of:










    Prior service cost


5


9


21


35


    Net actuarial losses


626


514


2,270


1,780












Comprehensive (loss) income

$

(2,647)

$

4,810

$

17,741

$

16,267








































































STERLING BANCORP


Consolidated Statements of Changes in Shareholders' Equity


(Unaudited)


(dollars in thousands)














Three Months Ended December 31, 


Twelve Months Ended December 31, 




2012


2011


2012


2011


Balance, at beginning of period

$

233,436

$

218,685

$

220,821

$

222,742


Net income for period


5,200


5,338


20,016


17,596


Common shares issued


-


-


375


36,454


   compensation expense


85


107


360


394


Preferred shares redeemed in connection










    with the TARP Capital Purchase Program


-


-


-


(42,000)


Repurchase of warrant


-


-


-


(945)


Cash dividends - common shares


(2,784)


(2,781)


(11,132)


(11,122)


Cash dividends - preferred shares


-


-


-


(945)


Surrender of shares issued under










    incentive compensation plan


-


-


(75)


(24)


Unrealized holding gains on securities










    arising during the period


139


1,502


4,878


244


Reclassification adjustment for securities










    gains included in net income


(179)


(547)


(1,006)


(1,382)


Pension liability adjustment - net actuarial










    losses


(8,438)


(2,006)


(8,438)


(2,006)


Amortization of:










    Prior service cost


5


9


21


35


    Net actuarial losses


626


514


2,270


1,780












Balance, at end of period

$

228,090

$

220,821

$

228,090

$

220,821
































Page 11 of 16
































 



STERLING BANCORP














Average Balance Sheets 


[1]










(Unaudited)














(dollars in thousands)






























 

Three Months Ended





December 31, 2012



December 31, 2011





AVERAGE




AVERAGE



AVERAGE




AVERAGE





BALANCE


INTEREST


RATE



BALANCE


INTEREST


RATE



Assets
















  Interest-bearing deposits with other banks

$

65,532

$

39


0.24

%

$

213,713

$

135


0.25

%


















  Investment Securities
















    Available for sale - taxable


315,269


1,780


2.26



305,542


2,125


2.78



    Held to maturity - taxable


250,624


1,229


1.96



288,493


1,743


2.42



    Tax-exempt [2]


152,484


2,383


6.25



157,797


2,461


6.24



      Total investment securities


718,377


5,392


3.00



751,832


6,329


3.37



  FRB and FHLB stock  [2]


7,468


129


6.88



8,492


130


6.17



















  Loans, net of unearned discount  [3]


1,743,052


22,758


5.20



1,481,517


20,245


5.64



















Total Interest-Earning Assets [2]


2,534,429


28,318


4.43

%


2,455,554


26,839


4.43

%


















  Cash and due from banks


41,235







44,890







  Allowance for loan losses


(23,701)







(20,849)







  Goodwill


22,901







22,901







  Other


133,810







135,292







Total Assets

$

2,708,674






$

2,637,788























Liabilities and Shareholders' Equity
















  Interest-bearing deposits
















    Domestic
















      Savings

$

24,811


1


0.02

%

$

18,545


1


0.03

%


      NOW


220,227


60


0.11



203,280


83


0.16



      Money market


441,233


594


0.54



389,866


619


0.63



      Time


690,283


1,023


0.59



788,800


1,371


0.69



Total Interest-Bearing Deposits


1,376,554


1,678


0.48



1,400,491


2,074


0.59



  Borrowings
















    Securities sold u/a/r - customers


39,079


34


0.35



45,328


41


0.36



    Securities sold u/a/r - dealers


-


-


-



5,000


17


1.30



    Federal funds purchased


3,740


2


0.22



-


-


-



    Commercial paper and other
















      short-term borrowings


16,167


12


0.29



16,827


9


0.23



    Advances - FHLB


101,391


419


1.65



122,856


497


1.61



    Long-term borrowings - sub debt


25,774


524


8.38



25,774


524


8.38



Total Borrowings


186,151


991


2.13



215,785


1,088


2.02



















Total Interest-Bearing Liabilities


1,562,705


2,669


0.68

%


1,616,276


3,162


0.78

%


Noninterest-bearing demand deposits


849,094







711,011







  Total including noninterest-bearing
















   demand deposits


2,411,799


2,669


0.45

%


2,327,287


3,162


0.56

%


Other liabilities


63,019







91,773























Total Liabilities


2,474,818







2,419,060























Shareholders' equity


233,856







218,728























Total Liabilities and Shareholders' Equity

$

2,708,674






$

2,637,788























Net interest income/spread [2]




25,649


3.75

%




23,677


3.65

%


















Net yield on interest-earning assets [2]






4.00

%






3.90

%


















Less: Tax-equivalent adjustment




836







863





















Net interest income



$

24,813






$

22,814





































[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 16







 

 


 

STERLING BANCORP












Average Balance Sheets

[1]









(Unaudited)












(dollars in thousands)





























Twelve Months Ended





December 31, 2012



December 31, 2011





AVERAGE




AVERAGE



AVERAGE




AVERAGE





BALANCE


INTEREST


RATE



BALANCE


INTEREST


RATE



Assets
















  Interest-bearing deposits with other banks

$

58,836

$

136


0.23

%

$

93,561

$

227


0.24

%


















  Investment Securities
















    Available for sale - taxable


344,634


8,453


2.45



371,377


9,379


2.53



    Held to maturity - taxable


255,878


5,622


2.20



322,312


8,078


2.51



    Tax-exempt [2]


154,887


9,682


6.25



157,308


9,784


6.22



      Total investment securities


755,399


23,757


3.14



850,997


27,241


3.20



  FRB and FHLB stock  [2]


8,018


413


5.14



8,770


374


4.27



















  Loans, net of unearned discount  [3]


1,583,836


83,982


5.56



1,379,361


75,251


5.81



















Total Interest-Earning Assets [2]


2,406,089


108,288


4.64

%


2,332,689


103,093


4.58

%


















  Cash and due from banks


38,180







39,734







  Allowance for loan losses


(22,444)







(19,951)







  Goodwill


22,901







22,901







  Other


132,086







132,811







Total Assets

$

2,576,812






$