Sterling Bancorp Reports Net Income Of $5.2 Million, Or $0.17 Per Diluted Share, For The 2013 First Quarter

INCOME BEFORE TAXES RISES OVER 19%

PERFORMANCE HIGHLIGHTED BY REVENUE GROWTH AND CONTINUED SOUND ASSET QUALITY

LOANS GROW 19% AND DEPOSITS RISE 15%

Apr 26, 2013, 07:30 ET from Sterling Bancorp

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

Strong Financial Performance

  • Net income was $5.2 million or $0.17 per diluted share for first quarter 2013, up from $4.6 million or $0.15 per diluted share a year earlier.
  • Net interest income increased 8% from a year ago; net interest margin was 4.02% for 2013 first quarter.
  • Gross revenues were $37.4 million for first quarter 2013, an increase of 5% over the same 2012 period.

Robust Loan and Deposit Growth

  • Loans, net of unearned discount, were $1.8 billion, increasing 19%.
  • Total deposits increased 15% to $2.3 billion.
  • Demand deposits of $897.1 million represented 39% of total deposits.

Solid Credit Metrics

  • Net charge-offs were 0.38% of loans in portfolio for first quarter 2013.
  • Ratio of nonperforming assets to total assets decreased to 0.26%.
  • Allowance for loan losses as a percentage of loans held in portfolio was 1.34%.

Comparisons above are at, or for the periods ended, March 31, 2013 vs. March 31, 2012 unless otherwise stated.

Sterling Bancorp (NYSE: STL) today reported on its financial and operating performance for the first quarter of 2013, highlighted by growth in loans and deposits, higher gross revenues and a continued focus on asset quality.

Net income rose to $5.2 million for the 2013 first quarter, an increase of 14% from $4.6 million in the same period of 2012. Diluted earnings per common share were $0.17 for the 2013 first quarter, up from $0.15 a year earlier.

Selected Financial Highlights

Quarter Ended

3/31/13

3/31/12

EARNINGS HIGHLIGHTS

Net income (in millions)

$5.2

$4.6

Diluted earnings per common share

$0.17

$0.15

Net interest margin

4.02%

4.07%

Return on average assets

0.78%

0.75%

Return on average tangible equity

10.34%

9.31%

Quarter Ended

3/31/13

3/31/12

BALANCE SHEET HIGHLIGHTS (period end, in millions)

Loans, net of unearned discount

$1,680.4

$1,452.7

Total investment securities

$665.1

$802.4

Demand deposits

$897.1

$815.5

Total deposits

$2,281.2

$1,988.3

Total assets

$2,772.5

$2,498.6

ASSET QUALITY HIGHLIGHTS (period end)

Nonaccrual loans/loans (1)

0.30%

0.43%

Nonperforming assets/assets

0.26%

0.32%

Allowance for loan losses/nonaccrual loans

430.76%

313.55%

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

 

2013 First Quarter Results Reflect Profitable Growth

"Sterling Bancorp continued its strong growth momentum and solid earnings performance in the 2013 first quarter," noted Louis J. Cappelli, Sterling's Chairman and Chief Executive Officer.  "Our well-established focus on providing individualized financial solutions and superior service to clients in the dynamic New York metropolitan area marketplace and beyond once again propelled double-digit growth in loans and deposits.  At the same time, the Company's strategic management of assets and liabilities, control of expenses and stringent focus on asset quality produced an increase of more than 19% in pre-tax income."

Mr. Cappelli added, "Our team is sharply focused on delivering profitable growth, expanding the business, providing exceptional service to customers, and continuing to produce solid value for shareholders."

As previously announced on April 4, 2013, Sterling Bancorp and Provident New York Bancorp (NYSE: PBNY) have entered into a definitive merger agreement in a stock-for-stock transaction in which Sterling Bancorp shareholders will receive a fixed ratio of 1.2625 shares of Provident New York Bancorp common stock for each share of Sterling Bancorp common stock. Upon closing, Provident Bank will convert to a national bank charter and adopt the Sterling name, as will the holding company.  The transaction is subject to approval by the shareholders of both companies, regulatory approval and other customary closing conditions.  Subject to such conditions, the Company anticipates that the merger will close in the fourth calendar quarter of 2013.

Net Interest Income

Sterling's net interest income was $24.1 million for first quarter 2013, an increase of 8% from the 2012 period.  This primarily reflected higher loan balances due to a continuing strategy of shifting the Company's asset mix toward loans from investment securities, a reduction in cost of funds largely due to disciplined deposit pricing, rising noninterest-bearing demand deposit balances, and lower borrowings.

Noninterest Income

Noninterest income, excluding security gains, rose more than 12% comparing the first quarter of 2013 and 2012. This growth was primarily due to an 88% increase in mortgage banking income versus the prior year.  The rising mortgage volume reflected a strong performance by Sterling's original mortgage banking operations, as well as its August 2012 acquisition of Universal Mortgage, which positioned the Company for the rebound in the residential mortgage market.  Total noninterest income for first quarter 2013 was $10.7 million, up 4% from a year ago.  This reflected the higher mortgage banking income, as noted above, partially offset by a decrease in security gains and lower accounts receivable management and other related fees.  Noninterest income has consistently been an important contributor to Sterling's financial performance and represented 29% of gross revenues for the 2013 first quarter.  

Noninterest Expenses         

Noninterest expenses were $24.8 million for first quarter 2013, versus $23.0 million for the same 2012 period.  Noninterest expenses were essentially unchanged comparing the 2013 first quarter to the 2012 fourth quarter.  The increase from the year-ago first quarter primarily reflected higher personnel expenses due to investments in the growth in Sterling's business, as well as expenses associated with Universal Mortgage, acquired in the 2012 third quarter. 

Loan, Deposit and Asset Growth

Total loans, net of unearned discount were $1.8 billion as of March 31, 2013, an increase of approximately 19% from a year earlier.  The ratio of loans to deposits was 77% at March 31, 2013.

Total deposits were $2.3 billion at March 31, 2013, increasing 15% from a year earlier. Noninterest-bearing demand deposits represented over 39% 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 $2.8 billion and earning assets were $2.6 billion at March 31, 2013.  Total investment securities decreased by $137.3 million from a year ago, to $665.1 million, reflecting the successful strategy of redeploying assets from investments into loans. 

Asset Quality

Sterling continued to exhibit sound credit quality metrics during the 2013 first quarter.  Net charge-offs were $1.6 million for the recent quarter, compared to $2.9 million for the same 2012 period.  The allowance for loan losses as a percentage of nonaccrual loans was 431% at March 31, 2013, versus 314% a year earlier. Nonperforming assets were $7.1 million or 0.26% of total assets at March 31, 2013, compared to $8.0 million or 0.32% a year earlier.  The allowance for loan losses as a percentage of portfolio loans was 1.34% at March 31, 2013, compared to 1.38% a year earlier.  The provision for loan losses was $2.0 million for the first quarter 2013, compared with $3.0 million for the year-ago period. 

Capital

The Company's capital base has continued to exceed all regulatory requirements for well-capitalized institutions.  At March 31, 2013, Sterling's Tier 1 risk-based capital ratio was 11.68% (compared to a requirement of 6.00%), total risk-based capital was 12.81% (requirement of 10.00%), and the Tier 1 leverage ratio was 9.16% (requirement of 5.00%).  The tangible common equity ratio was 7.58% at March 31, 2013.

Conference Call

Sterling Bancorp will hold a conference call on Friday, April 26, 2013, at 10:00 a.m. Eastern Time to discuss these financial results.  To access the conference call live, interested parties may dial 800-288-8967 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 26, 2013, until 11:59 p.m. Eastern Time on May 10, 2013.  To access the replay by telephone, interested parties may dial 800-475-6701 and enter the Access Code 291380.

About Sterling Bancorp

Sterling Bancorp (NYSE: STL) is a New York City-based financial corporation with assets of $2.8 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, our ability to continue to provide individualized financial solutions and superior service to clients in the New York metropolitan area marketplace and beyond, strategically manage assets and liabilities, control expenses and focus on asset quality, our ability to deliver profitable growth, expand the business, provide exceptional service to customers, and produce solid value for shareholders, 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 will file with the Securities and Exchange Commission ("SEC") a Registration Statement on Form S-4 that will include a joint proxy statement of Provident and the Company and a prospectus of Provident, as well as other relevant documents concerning the proposed transaction.  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)

March 31, 

2013

2012

BALANCE SHEET HIGHLIGHTS 

Period End Balances

   Investment securities

$665,061

$802,386

   Loans held for sale

75,857

27,864

   Loans held in portfolio, 

      net of unearned discount

1,680,389

1,452,675

   Interest bearing deposits with other banks

165,988

26,938

   Total earning assets

2,594,751

2,318,333

   Allowance for loan losses

22,520

20,105

   Total assets

2,772,485

2,498,644

   Demand deposits

897,112

815,513

   Savings, NOW and money market deposits

793,364

644,392

   Time deposits

590,679

528,382

   Customer repurchase agreements

33,817

40,602

   Advances FHLB/Long-term borrowings

126,668

148,142

   Shareholders' equity 

231,992

225,324

Average Balances

   Investment securities

728,907

764,266

   Loans held for sale

106,865

36,701

   Loans held in portfolio, 

      net of unearned discount

1,616,084

1,405,266

   Interest bearing deposits with other banks

90,981

77,072

   Total earning assets

2,550,298

2,291,781

   Total assets

2,733,412

2,460,106

   Demand deposits

897,416

759,002

   Savings, NOW and money market deposits

759,560

621,527

   Time deposits

594,883

588,641

   Customer repurchase agreements

32,448

39,772

   Advances FHLB/Long-term borrowings

126,793

148,266

   Shareholders' equity  

229,246

221,684

ASSET QUALITY HIGHLIGHTS 

Period End

   Net charge-offs

$1,576

$2,883

   Nonaccrual loans

5,228

6,412

   Other real estate owned

1,917

1,563

   Nonperforming assets

7,145

7,975

   Nonaccrual loans/loans (1)

0.30%

0.43%

   Nonperforming assets/assets

0.26%

0.32%

   Allowance for loan losses/loans (2)

1.34%

1.38%

   Allowance for loan losses/nonaccrual loans

430.76%

313.55%

CAPITAL RATIOS

Period End

   Tier 1 risk based

11.68%

12.08%

   Total risk based

12.81%

13.15%

   Leverage

9.16%

9.77%

   Equity/ assets

8.37%

9.02%

   Tangible common equity

7.58%

8.17%

   Book value per common share

$7.49

$7.29

Return on average equity

9.28%

8.35%

Return on average tangible equity

10.34%

9.31%

(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 14

 

STERLING BANCORP

Consolidated Balance Sheets

(Unaudited)

(dollars in thousands, except number of shares)

March 31, 

2013

2012

ASSETS

Cash and due from banks

$

35,993

$

34,731

Interest-bearing deposits with other banks

165,988

26,938

Investment securities

    Available for sale (at estimated fair value)

277,947

386,528

    Held to maturity (at amortized cost)

387,114

415,858

            Total investment securities

665,061

802,386

Loans held for sale

75,857

27,864

Loans held in portfolio, net of unearned discounts

1,680,389

1,452,675

Less allowance for loan losses

22,520

20,105

            Loans held in portfolio, net

1,657,869

1,432,570

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

7,456

8,470

Customers' liability under acceptances

-

3

Goodwill

22,901

22,901

Premises and equipment, net

21,998

23,268

Other real estate

1,917

1,563

Accrued interest receivable

7,198

8,835

Cash surrender value of  life insurance policies

54,945

53,920

Other assets

55,302

55,195

$

2,772,485

$

2,498,644

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits

    Demand

$

897,112

$

815,513

    Savings, NOW and money market

793,364

644,392

    Time

590,679

528,382

            Total deposits

2,281,155

1,988,287

Securities sold under agreements to repurchase - customers

33,817

40,602

Securities sold under agreements to repurchase - dealers

-

5,000

Short-term borrowings - other

20,995

30,890

Advances - FHLB

100,894

122,368

Long-term borrowings - subordinated debentures

25,774

25,774

Acceptances outstanding

-

3

Accrued interest payable

735

995

Accrued expenses and other liabilities

77,123

59,401

            Total liabilities

2,540,493

2,273,320

Shareholders' equity

231,992

225,324

$

2,772,485

$

2,498,644

MEMORANDA

    Available for sale securities - amortized cost

$

271,273

$

384,283

    Held to maturity securities - estimated fair value

401,016

433,096

    Shares outstanding

        Common issued

35,263,768

35,225,110

        Common in treasury

4,307,972

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 14

 

STERLING BANCORP

Consolidated Statements of Income

(Unaudited)

(dollars in thousands, except per share data)

March 31, 

2013

2012

INTEREST INCOME

Loans

$

22,242

$

19,686

Investment securities

  Available for sale - taxable

1,666

2,170

  Held to maturity - taxable

1,131

1,633

  Tax exempt

1,544

1,604

FRB and FHLB stock

61

81

Deposits with other banks

57

46

            Total interest income

26,701

25,220

INTEREST EXPENSE

Savings, NOW and money market deposits

726

644

Time deposits

910

1,063

Securities sold u/a/r - customers

29

36

Securities sold u/a/r - dealers

-

16

Federal funds purchased

-

1

Commercial paper and other

  short-term borrowings

13

11

Advances - FHLB

392

519

Long-term subordinated debentures

523

523

            Total interest expense

2,593

2,813

Net interest income

24,108

22,407

Provision for loan losses

2,000

3,000

Net interest income after provision for loan losses

22,108

19,407

NONINTEREST INCOME

Accounts receivable management/

    factoring commissions and other fees

3,475

4,868

Service charges on deposit accounts

1,295

1,260

Trade finance income

430

500

Other customer related service charges and fees

392

249

Mortgage banking income

4,399

2,336

Income from life insurance policies

469

256

Securities gains

132

879

Loss on sale of OREO

(12)

(66)

Other income

95

4

            Total noninterest income

10,675

10,286

NONINTEREST EXPENSES

Salaries

12,013

11,187

Employee benefits

4,101

3,724

    Total personnel expense

16,114

14,911

Occupancy and equipment expenses, net

3,439

3,214

Advertising and marketing

637

643

Professional fees

1,186

903

Communications

364

470

Deposit insurance

586

584

Other expenses

2,513

2,319

            Total noninterest expenses

24,839

23,044

Income before income taxes

7,944

6,649

Provision for income taxes 

2,700

2,047

Net income

$

5,244

$

4,602

Page 9 of 14

 

Consolidated Statements of Income

(Unaudited)

(dollars in thousands, except per share data)

(continued)

March 31, 

2013

2012

Average number of common shares outstanding

        Basic

30,861,286

30,659,856

        Diluted

30,861,286

30,659,856

Net income per average common share

        Basic

$

0.17

$

0.15

        Diluted

0.17

0.15

Dividends per common share

0.09

0.09

Page 10 of 14

 

STERLING BANCORP

Consolidated Statements of Comprehensive Income 

(Unaudited)      

(dollars in thousands)       

March 31, 

2013

2012

Net income

$

5,244

$

4,602

Other comprehensive income, net of tax:

    Unrealized holding gains on securities

        arising during the period

857

2,685

    Reclassification adjustment for securities

        gains included in net income

(73)

(488)

    Amortization of:

        Prior service cost

5

5

        Net actuarial losses

568

453

Comprehensive income

$

6,601

$

7,257

STERLING BANCORP

Consolidated Statements of Changes in Shareholders' Equity

(Unaudited)

(dollars in thousands)

March 31, 

2013

2012

Balance, at beginning of period

$

228,090

$

220,821

Net income for period

5,244

4,602

Stock option and restricted stock 

   compensation expense

86

103

Cash dividends - common shares

(2,785)

(2,782)

Surrender of shares issued under

    incentive compensation plan

-

(75)

Unrealized holding gains on

    securities arising during the period

857

2,685

Reclassification adjustment for securities

    gains included in net income

(73)

(488)

Amortization of:

    Prior service cost

5

5

    Net actuarial losses

568

453

Balance, at end of period

$

231,992

$

225,324

Page 11 of 14

 

STERLING BANCORP

Average Balance Sheets 

[1]

(Unaudited)

(dollars in thousands)

 

Three Months Ended

March 31, 2013

March 31, 2012

AVERAGE

AVERAGE

AVERAGE

AVERAGE

BALANCE

INTEREST

RATE

BALANCE

INTEREST

RATE

Assets

  Interest-bearing deposits with other banks

$

90,981

$

57

0.26

%

$

77,072

$

46

0.24

%

  Investment Securities

    Available for sale - taxable

323,535

1,666

2.06

325,871

2,170

2.66

    Held to maturity - taxable

253,491

1,131

1.78

280,377

1,633

2.33

    Tax-exempt [2]

151,881

2,375

6.25

158,018

2,468

6.25

      Total investment securities

728,907

5,172

2.84

764,266

6,271

3.28

  FRB and FHLB stock  [2]

7,461

61

3.27

8,476

81

3.82

  Loans, net of unearned discount  [3]

1,722,949

22,242

5.37

1,441,967

19,686

5.56

Total Interest-Earning Assets [2]

2,550,298

27,532

4.44

%

2,291,781

26,084

4.58

%

  Cash and due from banks

42,768

37,628

  Allowance for loan losses

(24,078)

(21,584)

  Goodwill

22,901

22,901

  Other

141,523

129,380

Total Assets

$

2,733,412

$

2,460,106

Liabilities and Shareholders' Equity

  Interest-bearing deposits

    Domestic

      Savings

$

25,703

1

0.02

%

$

18,966

1

0.02

%

      NOW

221,573

49

0.09

221,710

79

0.14

      Money market

512,284

676

0.53

380,851

564

0.60

      Time

594,883

910

0.62

588,641

1,063

0.73

Total Interest-Bearing Deposits

1,354,443

1,636

0.49

1,210,168

1,707

0.57

  Borrowings

    Securities sold u/a/r - customers

32,448

29

0.36

39,772

36

0.36

    Securities sold u/a/r - dealers

-

-

-

5,001

16

1.30

    Federal funds purchased

400

-

0.22

2,473

1

0.14

    Commercial paper and other

      short-term borrowings

16,457

13

0.32

14,580

11

0.29

    Advances - FHLB

101,019

392

1.57

122,492

519

1.70

    Long-term borrowings - sub debt

25,774

523

8.38

25,774

523

8.38

Total Borrowings

176,098

957

2.20

210,092

1,106

2.12

Total Interest-Bearing Liabilities

1,530,541

2,593

0.69

%

1,420,260

2,813

0.80

%

Noninterest-bearing demand deposits

897,416

759,002

  Total including noninterest-bearing

   demand deposits

2,427,957

2,593

0.44

%

2,179,262

2,813

0.54

%

Other liabilities

76,209

59,160

Total Liabilities

2,504,166

2,238,422

Shareholders' equity

229,246

221,684

Total Liabilities and Shareholders' Equity

$

2,733,412

$

2,460,106

Net interest income/spread [2]

24,939

3.75

%

23,271

3.78

%

Net yield on interest-earning assets [2]

4.02

%

4.07

%

Less: Tax-equivalent adjustment

831

864

Net interest income

$

24,108

$

22,407

[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 14

 

STERLING BANCORP

Rate/Volume Analysis  [1]

(Unaudited)

(dollars in thousands)

Increase/(Decrease)

Three Months Ended

March 31, 2013 to March 31, 2012

Volume

Rate

Net  [2]

INTEREST INCOME

Interest-bearing deposits with other banks

$

7

$

4

$

11

Investment Securities

  Available for sale - taxable

(38)

(466)

(504)

  Held to maturity - taxable

(156)

(346)

(502)

  Tax-exempt 

(93)

-

(93)

      Total investment securities

(287)

(812)

(1,099)

FRB and FHLB stock

(10)

(10)

(20)

Loans, net of unearned discounts [3]

3,290

(734)

2,556

TOTAL INTEREST INCOME

$

3,000

$

(1,552)

$

1,448

INTEREST EXPENSE

Interest-bearing deposits

  Domestic

    Savings

$

-

$

-

$

-

    NOW

(1)

(29)

(30)

    Money market

180

(68)

112

    Time

-

(153)

(153)

      Total interest-bearing deposits

179

(250)

(71)

Borrowings

  Securities sold under agreements to repurchase - customers

(7)

-

(7)

  Securities sold under agreements to repurchase - dealers

(16)

-

(16)

  Federal funds purchased

(1)

-

(1)

  Commercial paper and other short-term borrowings

1

1

2

  Advances - FHLB

(90)

(37)

(127)

  Long-term borrowings - subordinated debentures

-

-

-

      Total borrowings

(113)

(36)

(149)

TOTAL INTEREST EXPENSE

$

66

$

(286)

$

(220)

NET INTEREST INCOME

$

2,934

$

(1,266)

$

1,668

[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. The change in interest expense for securities sold under agreements to repurchase-

     dealers 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 13 of 14

 

STERLING BANCORP

Reconciliation of  Tangible Common 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, 

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. 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.

March 31, 

2013

2012

Tangible common equity

  Total shareholders' equity

$

231,992

$

225,324

   Less:

    Goodwill and other intangible assets

23,656

22,975

  Total tangible common equity

$

208,336

$

202,349

Tangible assets

  Total assets

$

2,772,485

$

2,498,644

  Less: Goodwill and other intangible assets

23,656

22,975

  Total tangible assets

$

2,748,829

$

2,475,669

Tangible common equity ratio 

7.58%