STNJ Sterling Bank (MM)

Sterling Bank Reports 112% Increase in Annual Net Income MOUNT LAUREL, N.J., Jan. 18 /PRNewswire-FirstCall/ -- Sterling Bank (NASDAQ:STNJ) today announced a record 112% increase in net income for the year ended December 31, 2004. Net income amounted to $1,126,000 for 2004, compared to net income of $531,000 for the year ended December 31, 2003. Income before taxes totaled $1,759,000, increasing 124% from income before taxes of $785,000 for 2003. On a basic and diluted per share basis, the 2004 net income amounted to a record $0.39 per share, compared to net income of $0.25 per share (adjusted for stock dividends) for the year ended on December 31, 2003, an increase of 56%. For the quarter ended December 31, 2004, income before taxes increased 171% to $616,000, over the income before taxes amount of $227,000 for the quarter ended December 31, 2003. Net income for the fourth quarter of 2004 totaled $383,000, a 101% increase over net income of $191,000 for the fourth quarter of 2003. On a basic and diluted per share basis, net income amounted to $0.13 per share during the fourth quarter of 2004, an increase of 86% from $0.07 per share (adjusted for stock dividends) for the fourth quarter of 2003. As of December 31, 2004, Sterling Bank's assets totaled $294 million, compared to assets of $255 million on December 31, 2003, representing a 15% increase. Total loans amounted to $206 million on December 31, 2004, reflecting an increase of 35% over total loans as of December 31, 2003 of $153 million. Deposits expanded during the period from December 31, 2003 to December 31, 2004, from $219 million to $252 million, an increase of 15%. Sterling Bank's improved earnings are attributable primarily to growth in net interest income of 24% from $7.8 million during 2003 to $9.7 million during 2004. The expansion of this revenue source is primarily the result of higher volume in earning assets and an increase in the yield on interest- bearing assets, partially offset by an increase in interest-bearing liabilities. Sterling Bank continued to experience higher levels of local community lending during 2004, with both commercial and consumer lending activity expanding. Robert H. King, President and Chief Executive Officer, commented, "2004 was a period of significant progress in the development of Sterling Bank. We are continuing to gain momentum, and are quite pleased to report our record results for the year." Sterling Bank Financial Highlights (unaudited) As of, and for the years ended, December 31, 2004 and December 31, 2003 December 31, December 31, 2004 2003 Total Assets $294,226,000 $255,192,000 Total Loans $205,790,000 $152,810,000 Total Deposits $252,258,000 $218,762,000 Shareholders' Equity $20,757,000 $19,663,000 Interest on Investments $2,821,000 $1,677,000 Interest on Loans $10,986,000 $9,092,000 Noninterest Income $706,000 $855,000 Total Revenues $14,513,000 $11,624,000 Interest Expense $4,122,000 $2,939,000 Noninterest Expenses $8,632,000 $7,900,000 Income Before Taxes $1,759,000 $785,000 Income Tax Expense $633,000 $254,000 Net Income $1,126,000 $531,000 Earnings Per Share $0.39 $0.25 Weighted Average Shares: Basic 2,861,462 2,081,747 Diluted 2,896,061 2,101,144 Sterling Bank is a community bank headquartered in Burlington County, New Jersey, with assets of $294 million as of December 31, 2004. Sterling Bank's main office is located in Mount Laurel, New Jersey and its five other Community Banking Centers are located in Burlington and Camden Counties in New Jersey. Sterling Bank began operations in December 1990 with the purpose of serving consumers and small to medium-sized businesses in its market area. The Bank's deposits are insured to the applicable regulatory limits per depositor by the Federal Deposit Insurance Corporation. Sterling Bank is a member of the Federal Reserve System. The common stock of Sterling Bank is traded on the NASDAQ Small Cap Market under the symbol "STNJ." For additional information about Sterling Bank visit our website at http://www.sterlingnj.com/. This news release may contain certain forward-looking statements, such as statements of the Bank's plans, objectives, expectations, estimates and intentions. Forward-looking statements may be identified by the use of words such as "expects," "subject," "believe," "will," "intends," "will be" or "would." These statements are subject to change based on various important factors (some of which are beyond the Bank's control) and actual results may differ materially. Accordingly, readers should not place undue reliance on any forward-looking statements (which reflect management's analysis only as of the date of which they are given). These factors include general economic conditions, trends in interest rates, the ability of our borrowers to repay their loans, the ability of the Bank to effectively manage its growth, and results of regulatory examinations, among other factors. Sterling Bank cautions that the foregoing list of important factors is not exclusive. Readers should carefully review the risk factors described in other documents the Bank files from time to time with the Federal Reserve, including the Bank's Annual Report on Form 10-KSB for the year ended December 31, 2003, Quarterly Reports on Form 10-QSB, and Current Reports on Form 8-K. DATASOURCE: Sterling Bank CONTACT: Robert H. King, President, +1-856-273-5900, , or R. Scott Horner, Executive Vice President, +1-856-273-5900, , both of Sterling Bank Web site: http://www.sterlingnj.com/

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