STNJ Sterling Bank (MM)

Sterling Bank Reports Six Month Earnings - Net Income Up 76% MOUNT LAUREL, N.J., July 19 /PRNewswire-FirstCall/ -- Sterling Bank (NASDAQ:STNJ) today reported income before taxes of $1,178,000 for the six- month period ended June 30, 2005. This reflects a 78% increase compared to the six-month period ended June 30, 2004, which totaled $660,000. Net income for the six-month period totaled $754,000, an increase of 76% over net income for the same period of 2004, which totaled $429,000. On a basic and diluted per share basis, the net income for the six-month period was $0.22 per share, compared to net income of $0.14 per share (adjusted for stock dividends) for the period ending June 30, 2004, an increase of 57%. For the quarter ended June 30, 2005, income before taxes totaled $650,000, increasing 70% from $383,000 for the second quarter of 2004. Net income amounted to $416,000 for the second quarter of 2005, compared to net income of $249,000 for the second quarter of 2004. On a basic and diluted per share basis, net income for the second quarter of 2005 amounted to $0.11 per share, compared to net income of $0.08 per share (adjusted for stock dividends) for the second quarter of 2004, an increase of 38%. As of June 30, 2005, Sterling Bank's assets totaled $336 million, compared to assets of $284 million on June 30, 2004, representing an 18% increase. Total loans amounted to $243 million on June 30, 2005, reflecting an increase of 33% over total loans as of June 30, 2004 of $183 million. Total deposits expanded to $283 million on June 30, 2005, an increase of 18% from $239 million on June 30, 2004. Sterling Bank's improved earnings are attributable primarily to growth in net interest income of 27% from $4.5 million during the first six months of 2004, to $5.7 million during the first six months of 2005. The expansion of this revenue source is primarily the result of higher volume in interest earning assets and an improvement of the net interest margin to 3.87% for the first six months of 2005, from 3.56% during the first six months of 2004. Sterling Bank continued to experience higher levels of local community lending during this period, with both commercial and consumer lending activity expanding. Robert H. King, President and Chief Executive Officer, commented, "The first half of 2005 was a very positive one for Sterling Bank. Increases in both total and net income and the continuing heightened levels of growth in core business activity, together with the success of our capital expansion program, reflect continued significant progress for the organization." Sterling Bank Financial Highlights (unaudited) As of, and for the six months ended, June 30, 2005 and June 30, 2004 June 30, 2005 June 30, 2004 Total Assets $335,731,000 $283,614,000 Total Loans $242,935,000 $183,254,000 Total Deposits $282,549,000 $239,483,000 Shareholders' Equity $ 34,111,000 $ 19,530,000 Interest Income $ 8,806,000 $ 6,356,000 Noninterest Income 337,000 382,000 Provision For Loan Losses 150,000 65,000 Interest Expense 3,080,000 1,835,000 Noninterest Expenses 4,735,000 4,178,000 Income Before Taxes 1,178,000 660,000 Income Tax Expense 424,000 231,000 Net Income $ 754,000 $ 429,000 Earnings Per Share $ 0.22 $ 0.14 Weighted Average Shares: Basic 3,442,000 2,988,000 Diluted 3,492,000 3,022,000 Sterling Bank is a community bank headquartered in Burlington County, New Jersey, with assets of $336 million as of June 30, 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 during the 4th quarter of 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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