STNJ Sterling Bank (MM)

Sterling Bank Reports Strong First Quarter Earnings - Net Income Up 88% MOUNT LAUREL, N.J., April 18 /PRNewswire-FirstCall/ -- Sterling Bank (NASDAQ:STNJ) today announced an 88% increase in net income for the quarter ended March 31, 2005. Net income amounted to $339,000 for the first quarter of 2005, compared to net income of $180,000 for the first quarter of 2004. Income before taxes totaled $529,000, increasing 91% from income before taxes of $277,000 for the first quarter of 2004. On a basic and diluted per share basis, net income for the first quarter of 2005 amounted to a record $0.12 per share, compared to net income of $0.06 per share (adjusted for stock dividends) for the first quarter of 2004, an increase of 100%. As of March 31, 2005, Sterling Bank's assets totaled $310 million, compared to assets of $278 million on March 31, 2004, representing a 12% increase. Total loans amounted to $224 million on March 31, 2005, reflecting an increase of 33% over total loans as of March 31, 2004 of $169 million. Deposits expanded during the period from March 31, 2004 to March 31, 2005, from $232 million to $265 million, an increase of 14%. Sterling Bank's improved earnings are attributable primarily to growth in net interest income of 33% from $2.1 million during the first quarter of 2004, to $2.8 million during the first quarter 2005. The expansion of this revenue source is primarily the result of higher volume in earning assets and an improvement of the net interest margin to 3.86% for the first quarter of 2005, from 3.51% during the first quarter of 2004. Sterling Bank continued to experience higher levels of local community lending during this quarter, with both commercial and consumer lending activity expanding. Robert H. King, President and Chief Executive Officer, commented, "Sterling Bank continues to expand its community base of both depositors and borrowers, with an infrastructure capable of supporting higher levels of core banking activities while maintaining costs at acceptable levels. We are both pleased and excited to report the Bank's strong first quarter results." Sterling Bank Financial Highlights (unaudited) As of, and for the quarter ended, March 31, 2005 and March 31, 2004 March 31, 2005 March 31, 2004 Total Assets $309,948,000 $277,979,000 Total Loans $224,357,000 $169,266,000 Total Deposits $265,151,000 $232,163,000 Shareholders' Equity $20,572,000 $19,970,000 Interest Income $4,172,000 $3,020,000 Non-Interest Income 169,000 213,000 Provision For Loan Losses 63,000 40,000 Interest Expense 1,420,000 874,000 Non-Interest Expenses 2,329,000 2,042,000 Income Before Taxes 529,000 277,000 Income Tax Expense 190,000 97,000 Net Income $339,000 $180,000 Earnings Per Share $0.12 $0.06 Weighted Average Shares: Basic 2,878,000 2,831,000 Diluted 2,926,000 2,868,000 Sterling Bank is a community bank headquartered in Burlington County, New Jersey, with assets of $310 million as of March 31, 2005. 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. Additionally, Sterling Bank has announced a seventh retail branch which is planned for opening later in 2005 in Voorhees Township, 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, 2004, 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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