Sterling Bancorp Reports Record First Quarter Results; Earnings Increase 17%

Apr 18, 2001, 01:00 ET from Sterling Bancorp

    NEW YORK, April 18 /PRNewswire/ -- Sterling Bancorp (NYSE:   STL) today
 announced record earnings for the three months ended March 31, 2001. Net
 income for the quarter was $4.5 million, an increase of 17% over the same
 period last year. Diluted earnings per share increased to $0.47 from $0.41 in
 the first quarter of 2000.
     These results mark Sterling's 31st consecutive quarter of year-over-year,
 double digit earnings growth. The record financial performance in the first
 quarter was driven principally by increases in gross revenues, which rose
 $2.6 million to $29.9 million.  Interest revenues grew to $24.6 million,
 mainly as a result of a 13% increase in average loan balances, and noninterest
 income increased to $5.3 million.  Net interest income for the quarter was
 $16.7 million, a 12% increase from the same period in 2000.
     Return on average assets, on an annualized basis, improved to 1.53% from
 1.37%. Return on average tangible equity, on an annualized basis, increased to
 19.3% from 18.9%, in the same period last year.
     Net interest margin, on a tax equivalent basis, was 6.28% for the quarter,
 up from 5.78% in the same quarter last year.  The increase in net interest
 margin, which is among the highest in the Company's peer group, is
 attributable to increases in loans outstanding and growth in demand deposits.
 Average loan balances for the quarter increased $78.9 million, over the first
 quarter last year, to $678.2 million. Average demand deposits for the first
 quarter grew to $285.2 million, a 13% increase from the first quarter of 2000.
     Commenting on the results, Louis J. Cappelli, Chairman and Chief Executive
 Officer, said, "We are pleased to report another quarter of record results,
 particularly in light of the weaker economic climate widely reported in the
 media.  The diversity of our product lines coupled with no significant
 industry concentration in our loan portfolios minimizes the effects of slower
 economic growth on our financial performance."
     Asset quality continued to be good.  At March 31, 2001, nonperforming
 assets represented 0.24% of total assets. Allowance for credit losses on
 March 31, 2001 was $12.9 million, compared to $11.4 million at the end of the
 first quarter 2000.  The allowance as a percentage of loans was 1.76%. The
 provision for credit losses was $1.7 million for the first three months of
 2001, compared to $1.4 million for the same period last year. "These ratios
 reflect Sterling's focus on maintaining credit quality and managing credit
 risk as we continue to grow our loan portfolios," continued Mr. Cappelli.
     Noninterest income rose 17% to $5.3 million in the first quarter. This
 increase was primarily due to increases in income from mortgage banking,
 deposit services and factoring.
     "Sterling's financial performance this quarter is further validation of
 our long-term strategy of offering a broad range of high-margin financial
 products, combined with our unique high-touch personalized service, to niche
 markets," concluded Chairman Cappelli.
 
     Sterling Bancorp (NYSE:   STL) is a financial holding company with assets of
 $1.2 billion, offering a full range of banking and financial services
 products. Its principal banking subsidiary is Sterling National Bank, founded
 in 1929. Sterling provides a wide range of products and services, including
 commercial lending, asset-based financing, factoring/accounts receivable
 management, international trade financing, commercial and residential mortgage
 lending, equipment leasing, trust and estate administration and investment
 management services. Sterling has operations in the metropolitan New York
 area, Virginia and other mid-Atlantic states and conducts business throughout
 the U.S. More information is available on the company's Website,
 http://www.sterlingbancorp.com.
 
     This press release may contain, and from time to time the Company's
 management may make, statements, which may constitute "forward-looking
 statements" within the meaning of the Private Securities Litigation Reform Act
 of 1995. 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 of its control. Any forward-looking statements the
 Company may make speak only as of the date on which such statements are made.
 It is possible that the Company's actual results and financial position may
 differ, possibly materially, from the anticipated results and financial
 condition indicated in or implied by these forward-looking statements. The
 amounts of dividends in 2001 and later years will depend on the Company's
 future results of operations, financial condition and other relevant factors.
 Important factors that could cause the Company's actual results to differ,
 possibly materially, from those in or implied by the forward-looking
 statements include, but are not limited to, the following: inflation, interest
 rates, market and monetary fluctuations; the effects of, and changes in,
 trade, monetary and fiscal policies and laws, including interest rate policies
 of the Board of Governors of the Federal Reserve; a decline in general
 economic conditions and the strength of the local economies in which the
 Company operates; the financial condition of the Company's borrowers;
 competitive pressures on loan and deposit pricing and demand; changes in
 technology and their impact on the marketing of products and services; the
 timely development and effective marketing of competitive new products and
 services and the acceptance of these products and services by new and existing
 customers; the willingness of customers to substitute competitors' products
 and services for the Company's products and services; the impact of changes in
 financial services' laws and regulations (including laws concerning taxes,
 banking, securities and insurance); changes in accounting principles, policies
 and guidelines; and the success of the Company at managing the risks involved
 in the foregoing; and other risks detailed from time to time in the Company's
 Securities and Exchange Commission filings. The foregoing list of important
 factors is not exclusive, and the Company will not update forward-looking
 statements, whether written or oral, that may be made from time to time.
 
                                STERLING BANCORP
                        Consolidated Financial Highlights
                  (dollars in thousands, except per share data)
 
 
                                              Three Months Ended March 31,
                                            2001                          2000
 
     OPERATING HIGHLIGHTS
        Interest income                  $24,582                       $22,800
        Interest expense                   7,916                         7,936
        Provision for credit losses        1,686                         1,413
        Noninterest income                 5,349                         4,575
        Noninterest expenses              12,616                        11,608
        Net income                         4,536                         3,879
 
        Earnings per common share:
          Basic                             0.50                          0.42
          Diluted                           0.47                          0.41
        Cash dividends declared             0.16                          0.14
        Common shares outstanding:
          Period end                       9,109                         8,302
          Average Basic                    9,092                         9,182
          Average Diluted                  9,651                         9,512
        Return on average assets           1.53%                         1.37%
        Return on average tangible equity 19.25%                        18.86%
        Return on average stated equity   15.76%                        15.02%
        Net interest margin, tax
         equivalent basis                  6.28%                         5.78%
 
     ASSET QUALITY HIGHLIGHTS
     Period End
        Net charge-offs                   $1,511                        $1,081
        Nonperforming loans                1,806                         1,587
        Other real estate owned            1,184                           526
        Nonperforming assets               2,990                         2,113
 
        Nonperforming loans/ loans         0.25%                         0.24%
        Nonperforming assets/ assets       0.24%                         0.18%
        Allow credit loss/loans            1.76%                         1.74%
        Allow credit loss/nonperform
         loans                           711.52%                       721.42%
 
 
                                    STERLING BANCORP
                            Consolidated Financial Highlights
                     (dollars in thousands, except per share data)
 
                                               Three Months Ended March 31,
                                                 2001                    2000
 
     BALANCE SHEET HIGHLIGHTS
     Period End Balances
        Security investments                 $454,561                $457,380
        Loans, net of unearned discount       728,167                 658,253
        Total earning assets                1,184,690               1,117,442
        Allowance for credit losses            12,850                  11,449
        Total assets                        1,249,137               1,195,953
 
        Noninterest-bearing deposits          278,454                 270,690
        Interest-bearing deposits             563,084                 555,252
        Customer repurchase agreements         40,584                  58,506
        Shareholders' equity                  121,289                 105,641
 
     Average Balances
        Security investments                 $436,648                $459,459
        Loans, net of unearned discount       678,248                 599,341
        Total earning assets                1,119,207               1,074,120
        Allowance for credit losses            13,210                  11,551
        Total assets                        1,198,757               1,141,426
 
        Noninterest-bearing deposits          285,183                 252,342
        Interest-bearing deposits             537,673                 580,435
        Customer repurchase agreements         40,214                  58,436
        Shareholders' equity                  116,725                 103,893
 
     Capital Ratios
        Tier 1 risk based                      13.09%                  12.13%
        Total risk based                       14.34%                  13.39%
        Leverage                                8.42%                   7.78%
 
     Book value per common share               $13.14                  $12.56
 
 
                                  STERLING BANCORP
                                   Balance Sheets
                      (in thousands, except number of shares)
 
                                                           March 31,
                                                  2001                    2000
     ASSETS
     Cash and due from banks                   $30,757                 $37,739
     Interest-bearing deposits with other
      banks                                      1,962                   1,809
     Investment securities
         Available for sale (at estimated
          market value)                        188,149                 150,498
         Held to maturity                      266,412                 306,882
                 Total investment
                  securities                   454,561                 457,380
 
     Loans, net of unearned discounts          728,167                 658,253
     Less allowance for credit losses           12,850                  11,449
                 Loans, net                    715,317                 646,804
 
     Customers' liability under
      acceptances                                1,500                   6,317
     Excess cost over equity in net
      assets of the banking subsidiary          21,158                  21,158
     Premises and equipment, net                 5,526                   5,549
     Accrued interest receivable                 5,309                   4,718
     Other real estate owned                     1,184                     527
     Other assets                               11,863                  13,952
                                            $1,249,137              $1,195,953
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
     Deposits
         Noninterest-bearing                  $278,454                $270,690
         Interest-bearing                      563,084                 555,252
                 Total deposits                841,538                 825,942
 
     Federal funds purchased and
      securities
         sold under agreements to
          repurchase                           139,250                 151,590
     Commercial paper                           38,537                  28,723
     Other short-term borrowings                   532                  10,535
     Acceptances outstanding                     1,500                   6,317
     Accrued expenses and other
      liabilities                               66,141                  56,505
     Long-term debt - FHLB                      40,350                  10,700
                 Total liabilities           1,127,848               1,090,312
 
     Shareholders' equity
     Preferred stock, $5 par value.
      Authorized 644,389 shares.
         Series B                                   24                      24
         Series D                                2,379                   2,419
                                                 2,403                   2,443
     Common stock, $1 par value.
      Authorized 20,000,000 shares.              9,592                   8,726
     Capital surplus                            67,788                  51,713
     Retained earnings                          50,529                  55,060
     Accumulated other comprehensive
      gain/(loss), net of tax                      935                  (2,630)
                                               131,247                 115,312
     Less:
         Common shares in treasury, at cost      8,200                   7,227
         Unearned compensation                   1,758                   2,444
                 Total shareholders' equity    121,289                 105,641
                                            $1,249,137              $1,195,953
 
     MEMORANDA
         Available for sale securities -
          amortized cost                      $186,376                $155,315
         Held to maturity securities -
          estimated market value               270,227                 297,201
         Shares outstanding
             Preferred - Series B                1,199                   1,230
             Preferred - Series D              237,878                 241,883
             Common issued                   9,591,909               8,725,676
             Common in treasury                483,274                 423,455
 
 
                                  STERLING BANCORP
                                Statements of Income
                   (dollars in thousands, except per share data)
 
                                                 Three Months Ended March 31,
                                                  2001                    2000
     INTEREST INCOME
     Loans                                     $17,259                 $15,019
     Investment securities:
         Available for sale                      2,562                   2,441
         Held to maturity                        4,705                   5,135
     Federal funds sold                             20                     169
     Deposits with other banks                      36                      36
                 Total interest income          24,582                  22,800
 
     INTEREST EXPENSE
     Deposits                                    5,348                   6,100
     Federal funds purchased and
      securities
         sold under agreements to
          repurchase                             1,799                   1,153
     Commercial paper                              415                     396
     Other short-term borrowings                    59                      92
     Long-term debt                                295                     195
                 Total interest expense          7,916                   7,936
 
     Net interest income                        16,666                  14,864
     Provision for credit losses                 1,686                   1,413
     Net interest income after provision
         for credit losses                      14,980                  13,451
 
     NONINTEREST INCOME
     Factoring income                            1,401                   1,090
     Mortgage banking income                     1,289                   1,195
     Service charges on deposit accounts         1,401                     799
     Trade finance income                          681                     837
     Trust fees                                    187                     186
     Other service charges and fees                340                     432
     Other income                                   50                      36
                 Total noninterest income        5,349                   4,575
 
     NONINTEREST EXPENSES
     Salaries                                    5,932                   5,394
     Employee benefits                           1,061                   1,145
                 Total personnel expenses        6,993                   6,539
     Occupancy expenses, net                     1,127                     972
     Equipment expenses                            572                     590
     Other expenses                              3,924                   3,507
                 Total noninterest expenses     12,616                  11,608
 
     Income before income taxes                  7,713                   6,418
     Provision for income taxes                  3,177                   2,539
 
     Net income                                 $4,536                  $3,879
 
     Average number of common
         shares outstanding
             Basic                           9,092,275               9,181,647
             Diluted                         9,651,263               9,511,576
     Per average common share
             Basic                               $0.50                   $0.42
             Diluted                              0.47                    0.41
     Dividends per common share                   0.16                    0.14
 
 
                                STERLING BANCORP
                       Statements of Comprehensive Income
                                 (in thousands)
 
                                                  Three Months Ended March 31,
                                                    2001                 2000
 
     Net income                                   $4,536               $3,879
 
     Other comprehensive income, net of tax:
         Unrealized holding gains
             arising during the period               957                    4
 
     Comprehensive income                         $5,493               $3,883
 
 
                               STERLING BANCORP
                 Statements of Changes in Shareholders' Equity
                                (in thousands)
 
                                                  Three Months Ended March 31,
                                                        2001             2000
 
     Balance, at beginning of period                $117,016         $105,240
     Net income for period                             4,536            3,879
     Options exercised                                   367               18
     Purchase of common shares for treasury                0           (2,248)
     Cash dividends
         Common shares                                (1,449)          (1,158)
         Preferred shares                                (25)             (21)
     Surrender of shares issued under
         incentive compensation plan                    (213)            (140)
     Amortization of unearned compensation               100               67
     Change in net unrealized holding gains
         on available for sale securities                957                4
 
     Balance, at end of period                      $121,289         $105,641
 
 
                                STERLING BANCORP
                             Average Balance Sheets  [1]
                             (dollars in thousands)
 
                                                   Three Months Ended
                                                     March 31, 2001
                                             AVERAGE               AVERAGE
                                             BALANCE      INTEREST   RATE
     Assets
       Interest-bearing deposits with
        other banks                             $2,922         $36    5.39 %
       Investment securities
         Available for Sale                    128,151       2,204    6.88
         Held to Maturity                      275,570       4,705    6.83
         Tax-exempt  [2]                        32,927         608    7.49
       Federal Funds sold                        1,389          20    5.61
       Loans, net of unearned discount
         Domestic  [3]                         677,471      17,244   11.07
         Foreign                                   777          15    7.63
 
         Total Interest-Earning Assets       1,119,207      24,832    9.32 %
 
       Cash and due from banks                  45,883
       Allowance for loan losses               (13,210)
       Excess cost over equity in
         net assets of the bank                 21,158
       Other                                    25,719
 
                 Total Assets               $1,198,757
 
     Liabilities and Stockholders' Equity
       Interest-bearing deposits
         Domestic
           Savings                             $24,932         146    2.38 %
           NOW                                  72,244         435    2.44
           Money market                        181,670       1,311    2.93
           Time                                255,852       3,419    5.42
         Foreign
           Time                                  2,975          37    5.05
       Borrowings
         Federal funds purchased and
          securities
            sold under agreements to
             repurchase                        129,559       1,799    5.63
         Commercial paper                       31,672         415    5.31
         Other short-term debt                   4,073          59    5.91
         Long-term debt                         25,488         295    4.63
 
      Total Interest-Bearing Liabilities       728,465       7,916    4.40 %
 
     Noninterest-bearing demand deposits       285,183
     Other liabilities                          68,384
 
               Total Liabilities             1,082,032
 
     Stockholders' equity                      116,725
 
      Total Liabilities and Stockholders'
                    Equity                  $1,198,757
 
     Net interest income/spread                             16,916    4.92 %
 
     Net yield on interest-earning assets                             6.28 %
 
     Less: Tax equivalent adjustment                           250
 
     Net interest income                                   $16,666
 
                                                    Three Months Ended
                                                      March 31, 2000
                                               AVERAGE             AVERAGE
                                               BALANCE    INTEREST   RATE
     Assets
       Interest-bearing deposits with
        other banks                               $3,089       $35    4.80 %
       Investment securities
         Available for Sale                      129,857     2,128    6.56
         Held to Maturity                        300,343     5,135    6.84
         Tax-exempt  [2]                          29,259       531    7.30
       Federal Funds sold                         12,231       169    5.48
       Loans, net of unearned discount
         Domestic  [3]                           598,558    15,006   10.79
         Foreign                                     783        14    7.02
 
         Total Interest-Earning Assets         1,074,120    23,018    8.89 %
 
       Cash and due from banks                    34,947
       Allowance for loan losses                 (11,551)
       Excess cost over equity in
         net assets of the bank                   21,158
       Other                                      22,752
 
                 Total Assets                 $1,141,426
 
     Liabilities and Stockholders' Equity
       Interest-bearing deposits
         Domestic
           Savings                               $24,230       142    2.36 %
           NOW                                    72,267       445    2.48
           Money market                          163,443     1,299    3.20
           Time                                  317,665     4,183    5.30
         Foreign
           Time                                    2,830        31    4.34
       Borrowings
         Federal funds purchased and
          securities
            sold under agreements to
             repurchase                           90,086     1,153    5.15
         Commercial paper                         32,032       396    4.97
         Other short-term debt                     6,802        92    5.45
         Long-term debt                           16,115       195    5.64
 
      Total Interest-Bearing Liabilities         725,470     7,936    4.42 %
 
     Noninterest-bearing demand deposits         252,342
     Other liabilities                            59,721
 
               Total Liabilities               1,037,533
 
     Stockholders' equity                        103,893
 
      Total Liabilities and Stockholders'
                    Equity                    $1,141,426
 
     Net interest income/spread                             15,082    4.47 %
 
     Net yield on interest-earning assets                             5.78 %
 
     Less: Tax equivalent adjustment                           218
 
     Net interest income                                   $14,864
 
     [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 2000 amounts to conform to current presentation.
     [2] Interest on tax-exempt securities is presented on a tax equivalent
         basis.
     [3] Nonaccrual loans are included in amounts outstanding and income has
         been included to the extent earned.
 
 

SOURCE Sterling Bancorp
    NEW YORK, April 18 /PRNewswire/ -- Sterling Bancorp (NYSE:   STL) today
 announced record earnings for the three months ended March 31, 2001. Net
 income for the quarter was $4.5 million, an increase of 17% over the same
 period last year. Diluted earnings per share increased to $0.47 from $0.41 in
 the first quarter of 2000.
     These results mark Sterling's 31st consecutive quarter of year-over-year,
 double digit earnings growth. The record financial performance in the first
 quarter was driven principally by increases in gross revenues, which rose
 $2.6 million to $29.9 million.  Interest revenues grew to $24.6 million,
 mainly as a result of a 13% increase in average loan balances, and noninterest
 income increased to $5.3 million.  Net interest income for the quarter was
 $16.7 million, a 12% increase from the same period in 2000.
     Return on average assets, on an annualized basis, improved to 1.53% from
 1.37%. Return on average tangible equity, on an annualized basis, increased to
 19.3% from 18.9%, in the same period last year.
     Net interest margin, on a tax equivalent basis, was 6.28% for the quarter,
 up from 5.78% in the same quarter last year.  The increase in net interest
 margin, which is among the highest in the Company's peer group, is
 attributable to increases in loans outstanding and growth in demand deposits.
 Average loan balances for the quarter increased $78.9 million, over the first
 quarter last year, to $678.2 million. Average demand deposits for the first
 quarter grew to $285.2 million, a 13% increase from the first quarter of 2000.
     Commenting on the results, Louis J. Cappelli, Chairman and Chief Executive
 Officer, said, "We are pleased to report another quarter of record results,
 particularly in light of the weaker economic climate widely reported in the
 media.  The diversity of our product lines coupled with no significant
 industry concentration in our loan portfolios minimizes the effects of slower
 economic growth on our financial performance."
     Asset quality continued to be good.  At March 31, 2001, nonperforming
 assets represented 0.24% of total assets. Allowance for credit losses on
 March 31, 2001 was $12.9 million, compared to $11.4 million at the end of the
 first quarter 2000.  The allowance as a percentage of loans was 1.76%. The
 provision for credit losses was $1.7 million for the first three months of
 2001, compared to $1.4 million for the same period last year. "These ratios
 reflect Sterling's focus on maintaining credit quality and managing credit
 risk as we continue to grow our loan portfolios," continued Mr. Cappelli.
     Noninterest income rose 17% to $5.3 million in the first quarter. This
 increase was primarily due to increases in income from mortgage banking,
 deposit services and factoring.
     "Sterling's financial performance this quarter is further validation of
 our long-term strategy of offering a broad range of high-margin financial
 products, combined with our unique high-touch personalized service, to niche
 markets," concluded Chairman Cappelli.
 
     Sterling Bancorp (NYSE:   STL) is a financial holding company with assets of
 $1.2 billion, offering a full range of banking and financial services
 products. Its principal banking subsidiary is Sterling National Bank, founded
 in 1929. Sterling provides a wide range of products and services, including
 commercial lending, asset-based financing, factoring/accounts receivable
 management, international trade financing, commercial and residential mortgage
 lending, equipment leasing, trust and estate administration and investment
 management services. Sterling has operations in the metropolitan New York
 area, Virginia and other mid-Atlantic states and conducts business throughout
 the U.S. More information is available on the company's Website,
 http://www.sterlingbancorp.com.
 
     This press release may contain, and from time to time the Company's
 management may make, statements, which may constitute "forward-looking
 statements" within the meaning of the Private Securities Litigation Reform Act
 of 1995. 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 of its control. Any forward-looking statements the
 Company may make speak only as of the date on which such statements are made.
 It is possible that the Company's actual results and financial position may
 differ, possibly materially, from the anticipated results and financial
 condition indicated in or implied by these forward-looking statements. The
 amounts of dividends in 2001 and later years will depend on the Company's
 future results of operations, financial condition and other relevant factors.
 Important factors that could cause the Company's actual results to differ,
 possibly materially, from those in or implied by the forward-looking
 statements include, but are not limited to, the following: inflation, interest
 rates, market and monetary fluctuations; the effects of, and changes in,
 trade, monetary and fiscal policies and laws, including interest rate policies
 of the Board of Governors of the Federal Reserve; a decline in general
 economic conditions and the strength of the local economies in which the
 Company operates; the financial condition of the Company's borrowers;
 competitive pressures on loan and deposit pricing and demand; changes in
 technology and their impact on the marketing of products and services; the
 timely development and effective marketing of competitive new products and
 services and the acceptance of these products and services by new and existing
 customers; the willingness of customers to substitute competitors' products
 and services for the Company's products and services; the impact of changes in
 financial services' laws and regulations (including laws concerning taxes,
 banking, securities and insurance); changes in accounting principles, policies
 and guidelines; and the success of the Company at managing the risks involved
 in the foregoing; and other risks detailed from time to time in the Company's
 Securities and Exchange Commission filings. The foregoing list of important
 factors is not exclusive, and the Company will not update forward-looking
 statements, whether written or oral, that may be made from time to time.
 
                                STERLING BANCORP
                        Consolidated Financial Highlights
                  (dollars in thousands, except per share data)
 
 
                                              Three Months Ended March 31,
                                            2001                          2000
 
     OPERATING HIGHLIGHTS
        Interest income                  $24,582                       $22,800
        Interest expense                   7,916                         7,936
        Provision for credit losses        1,686                         1,413
        Noninterest income                 5,349                         4,575
        Noninterest expenses              12,616                        11,608
        Net income                         4,536                         3,879
 
        Earnings per common share:
          Basic                             0.50                          0.42
          Diluted                           0.47                          0.41
        Cash dividends declared             0.16                          0.14
        Common shares outstanding:
          Period end                       9,109                         8,302
          Average Basic                    9,092                         9,182
          Average Diluted                  9,651                         9,512
        Return on average assets           1.53%                         1.37%
        Return on average tangible equity 19.25%                        18.86%
        Return on average stated equity   15.76%                        15.02%
        Net interest margin, tax
         equivalent basis                  6.28%                         5.78%
 
     ASSET QUALITY HIGHLIGHTS
     Period End
        Net charge-offs                   $1,511                        $1,081
        Nonperforming loans                1,806                         1,587
        Other real estate owned            1,184                           526
        Nonperforming assets               2,990                         2,113
 
        Nonperforming loans/ loans         0.25%                         0.24%
        Nonperforming assets/ assets       0.24%                         0.18%
        Allow credit loss/loans            1.76%                         1.74%
        Allow credit loss/nonperform
         loans                           711.52%                       721.42%
 
 
                                    STERLING BANCORP
                            Consolidated Financial Highlights
                     (dollars in thousands, except per share data)
 
                                               Three Months Ended March 31,
                                                 2001                    2000
 
     BALANCE SHEET HIGHLIGHTS
     Period End Balances
        Security investments                 $454,561                $457,380
        Loans, net of unearned discount       728,167                 658,253
        Total earning assets                1,184,690               1,117,442
        Allowance for credit losses            12,850                  11,449
        Total assets                        1,249,137               1,195,953
 
        Noninterest-bearing deposits          278,454                 270,690
        Interest-bearing deposits             563,084                 555,252
        Customer repurchase agreements         40,584                  58,506
        Shareholders' equity                  121,289                 105,641
 
     Average Balances
        Security investments                 $436,648                $459,459
        Loans, net of unearned discount       678,248                 599,341
        Total earning assets                1,119,207               1,074,120
        Allowance for credit losses            13,210                  11,551
        Total assets                        1,198,757               1,141,426
 
        Noninterest-bearing deposits          285,183                 252,342
        Interest-bearing deposits             537,673                 580,435
        Customer repurchase agreements         40,214                  58,436
        Shareholders' equity                  116,725                 103,893
 
     Capital Ratios
        Tier 1 risk based                      13.09%                  12.13%
        Total risk based                       14.34%                  13.39%
        Leverage                                8.42%                   7.78%
 
     Book value per common share               $13.14                  $12.56
 
 
                                  STERLING BANCORP
                                   Balance Sheets
                      (in thousands, except number of shares)
 
                                                           March 31,
                                                  2001                    2000
     ASSETS
     Cash and due from banks                   $30,757                 $37,739
     Interest-bearing deposits with other
      banks                                      1,962                   1,809
     Investment securities
         Available for sale (at estimated
          market value)                        188,149                 150,498
         Held to maturity                      266,412                 306,882
                 Total investment
                  securities                   454,561                 457,380
 
     Loans, net of unearned discounts          728,167                 658,253
     Less allowance for credit losses           12,850                  11,449
                 Loans, net                    715,317                 646,804
 
     Customers' liability under
      acceptances                                1,500                   6,317
     Excess cost over equity in net
      assets of the banking subsidiary          21,158                  21,158
     Premises and equipment, net                 5,526                   5,549
     Accrued interest receivable                 5,309                   4,718
     Other real estate owned                     1,184                     527
     Other assets                               11,863                  13,952
                                            $1,249,137              $1,195,953
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
     Deposits
         Noninterest-bearing                  $278,454                $270,690
         Interest-bearing                      563,084                 555,252
                 Total deposits                841,538                 825,942
 
     Federal funds purchased and
      securities
         sold under agreements to
          repurchase                           139,250                 151,590
     Commercial paper                           38,537                  28,723
     Other short-term borrowings                   532                  10,535
     Acceptances outstanding                     1,500                   6,317
     Accrued expenses and other
      liabilities                               66,141                  56,505
     Long-term debt - FHLB                      40,350                  10,700
                 Total liabilities           1,127,848               1,090,312
 
     Shareholders' equity
     Preferred stock, $5 par value.
      Authorized 644,389 shares.
         Series B                                   24                      24
         Series D                                2,379                   2,419
                                                 2,403                   2,443
     Common stock, $1 par value.
      Authorized 20,000,000 shares.              9,592                   8,726
     Capital surplus                            67,788                  51,713
     Retained earnings                          50,529                  55,060
     Accumulated other comprehensive
      gain/(loss), net of tax                      935                  (2,630)
                                               131,247                 115,312
     Less:
         Common shares in treasury, at cost      8,200                   7,227
         Unearned compensation                   1,758                   2,444
                 Total shareholders' equity    121,289                 105,641
                                            $1,249,137              $1,195,953
 
     MEMORANDA
         Available for sale securities -
          amortized cost                      $186,376                $155,315
         Held to maturity securities -
          estimated market value               270,227                 297,201
         Shares outstanding
             Preferred - Series B                1,199                   1,230
             Preferred - Series D              237,878                 241,883
             Common issued                   9,591,909               8,725,676
             Common in treasury                483,274                 423,455
 
 
                                  STERLING BANCORP
                                Statements of Income
                   (dollars in thousands, except per share data)
 
                                                 Three Months Ended March 31,
                                                  2001                    2000
     INTEREST INCOME
     Loans                                     $17,259                 $15,019
     Investment securities:
         Available for sale                      2,562                   2,441
         Held to maturity                        4,705                   5,135
     Federal funds sold                             20                     169
     Deposits with other banks                      36                      36
                 Total interest income          24,582                  22,800
 
     INTEREST EXPENSE
     Deposits                                    5,348                   6,100
     Federal funds purchased and
      securities
         sold under agreements to
          repurchase                             1,799                   1,153
     Commercial paper                              415                     396
     Other short-term borrowings                    59                      92
     Long-term debt                                295                     195
                 Total interest expense          7,916                   7,936
 
     Net interest income                        16,666                  14,864
     Provision for credit losses                 1,686                   1,413
     Net interest income after provision
         for credit losses                      14,980                  13,451
 
     NONINTEREST INCOME
     Factoring income                            1,401                   1,090
     Mortgage banking income                     1,289                   1,195
     Service charges on deposit accounts         1,401                     799
     Trade finance income                          681                     837
     Trust fees                                    187                     186
     Other service charges and fees                340                     432
     Other income                                   50                      36
                 Total noninterest income        5,349                   4,575
 
     NONINTEREST EXPENSES
     Salaries                                    5,932                   5,394
     Employee benefits                           1,061                   1,145
                 Total personnel expenses        6,993                   6,539
     Occupancy expenses, net                     1,127                     972
     Equipment expenses                            572                     590
     Other expenses                              3,924                   3,507
                 Total noninterest expenses     12,616                  11,608
 
     Income before income taxes                  7,713                   6,418
     Provision for income taxes                  3,177                   2,539
 
     Net income                                 $4,536                  $3,879
 
     Average number of common
         shares outstanding
             Basic                           9,092,275               9,181,647
             Diluted                         9,651,263               9,511,576
     Per average common share
             Basic                               $0.50                   $0.42
             Diluted                              0.47                    0.41
     Dividends per common share                   0.16                    0.14
 
 
                                STERLING BANCORP
                       Statements of Comprehensive Income
                                 (in thousands)
 
                                                  Three Months Ended March 31,
                                                    2001                 2000
 
     Net income                                   $4,536               $3,879
 
     Other comprehensive income, net of tax:
         Unrealized holding gains
             arising during the period               957                    4
 
     Comprehensive income                         $5,493               $3,883
 
 
                               STERLING BANCORP
                 Statements of Changes in Shareholders' Equity
                                (in thousands)
 
                                                  Three Months Ended March 31,
                                                        2001             2000
 
     Balance, at beginning of period                $117,016         $105,240
     Net income for period                             4,536            3,879
     Options exercised                                   367               18
     Purchase of common shares for treasury                0           (2,248)
     Cash dividends
         Common shares                                (1,449)          (1,158)
         Preferred shares                                (25)             (21)
     Surrender of shares issued under
         incentive compensation plan                    (213)            (140)
     Amortization of unearned compensation               100               67
     Change in net unrealized holding gains
         on available for sale securities                957                4
 
     Balance, at end of period                      $121,289         $105,641
 
 
                                STERLING BANCORP
                             Average Balance Sheets  [1]
                             (dollars in thousands)
 
                                                   Three Months Ended
                                                     March 31, 2001
                                             AVERAGE               AVERAGE
                                             BALANCE      INTEREST   RATE
     Assets
       Interest-bearing deposits with
        other banks                             $2,922         $36    5.39 %
       Investment securities
         Available for Sale                    128,151       2,204    6.88
         Held to Maturity                      275,570       4,705    6.83
         Tax-exempt  [2]                        32,927         608    7.49
       Federal Funds sold                        1,389          20    5.61
       Loans, net of unearned discount
         Domestic  [3]                         677,471      17,244   11.07
         Foreign                                   777          15    7.63
 
         Total Interest-Earning Assets       1,119,207      24,832    9.32 %
 
       Cash and due from banks                  45,883
       Allowance for loan losses               (13,210)
       Excess cost over equity in
         net assets of the bank                 21,158
       Other                                    25,719
 
                 Total Assets               $1,198,757
 
     Liabilities and Stockholders' Equity
       Interest-bearing deposits
         Domestic
           Savings                             $24,932         146    2.38 %
           NOW                                  72,244         435    2.44
           Money market                        181,670       1,311    2.93
           Time                                255,852       3,419    5.42
         Foreign
           Time                                  2,975          37    5.05
       Borrowings
         Federal funds purchased and
          securities
            sold under agreements to
             repurchase                        129,559       1,799    5.63
         Commercial paper                       31,672         415    5.31
         Other short-term debt                   4,073          59    5.91
         Long-term debt                         25,488         295    4.63
 
      Total Interest-Bearing Liabilities       728,465       7,916    4.40 %
 
     Noninterest-bearing demand deposits       285,183
     Other liabilities                          68,384
 
               Total Liabilities             1,082,032
 
     Stockholders' equity                      116,725
 
      Total Liabilities and Stockholders'
                    Equity                  $1,198,757
 
     Net interest income/spread                             16,916    4.92 %
 
     Net yield on interest-earning assets                             6.28 %
 
     Less: Tax equivalent adjustment                           250
 
     Net interest income                                   $16,666
 
                                                    Three Months Ended
                                                      March 31, 2000
                                               AVERAGE             AVERAGE
                                               BALANCE    INTEREST   RATE
     Assets
       Interest-bearing deposits with
        other banks                               $3,089       $35    4.80 %
       Investment securities
         Available for Sale                      129,857     2,128    6.56
         Held to Maturity                        300,343     5,135    6.84
         Tax-exempt  [2]                          29,259       531    7.30
       Federal Funds sold                         12,231       169    5.48
       Loans, net of unearned discount
         Domestic  [3]                           598,558    15,006   10.79
         Foreign                                     783        14    7.02
 
         Total Interest-Earning Assets         1,074,120    23,018    8.89 %
 
       Cash and due from banks                    34,947
       Allowance for loan losses                 (11,551)
       Excess cost over equity in
         net assets of the bank                   21,158
       Other                                      22,752
 
                 Total Assets                 $1,141,426
 
     Liabilities and Stockholders' Equity
       Interest-bearing deposits
         Domestic
           Savings                               $24,230       142    2.36 %
           NOW                                    72,267       445    2.48
           Money market                          163,443     1,299    3.20
           Time                                  317,665     4,183    5.30
         Foreign
           Time                                    2,830        31    4.34
       Borrowings
         Federal funds purchased and
          securities
            sold under agreements to
             repurchase                           90,086     1,153    5.15
         Commercial paper                         32,032       396    4.97
         Other short-term debt                     6,802        92    5.45
         Long-term debt                           16,115       195    5.64
 
      Total Interest-Bearing Liabilities         725,470     7,936    4.42 %
 
     Noninterest-bearing demand deposits         252,342
     Other liabilities                            59,721
 
               Total Liabilities               1,037,533
 
     Stockholders' equity                        103,893
 
      Total Liabilities and Stockholders'
                    Equity                    $1,141,426
 
     Net interest income/spread                             15,082    4.47 %
 
     Net yield on interest-earning assets                             5.78 %
 
     Less: Tax equivalent adjustment                           218
 
     Net interest income                                   $14,864
 
     [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 2000 amounts to conform to current presentation.
     [2] Interest on tax-exempt securities is presented on a tax equivalent
         basis.
     [3] Nonaccrual loans are included in amounts outstanding and income has
         been included to the extent earned.
 
 SOURCE  Sterling Bancorp