Sterling Bank Announces Record Earnings

Sterling Bank Announces Record Earnings 


MOUNT LAUREL, N.J., Oct. 14  /PRNewswire-FirstCall/ -- Sterling Bank
(NASDAQ:STNJ) today reported income before taxes of $1,143,000 for the
nine-month period ending September 30, 2004.  This reflects a 105% increase
compared to the nine-month period ending September 30, 2003, which totaled
$558,000.  Net income for the September 30, 2004 nine-month period totaled
$743,000, an increase of 119% over net income for the same period of 2003,
which totaled $340,000.  On a basic and diluted per share basis, the September
30, 2004 year-to-date net income was $0.26 per share compared to net income of
$0.18 per share (adjusted for stock dividends) for the period ending September
30, 2003, an increase of 44%.

For the quarter ended September 30, 2004, income before taxes amounted to
$483,000 and net income totaled $314,000.  These amounts each represent an
increase of 26% over income before taxes of $383,000 and net income of $249,000
for the prior quarter ended June 30, 2004.  On a basic and diluted per share
basis, net income amounted to $0.11 per share during the third quarter of 2004,
an increase of 22% over net income per share of $0.09 for the second quarter
2004.  Compared to the quarter ended September 30, 2003, income before taxes
increased 121% from $219,000, while net income increased 136% from $133,000. 
On a basic and diluted per share basis, net income increased 83% from $0.06 per
share (adjusted for stock dividends) for the quarter ended September 30, 2003.

As of September 30, 2004, Sterling Bank's assets totaled $289 million, compared
to assets of $217 million on September 30, 2003, representing a 33% increase. 
Total loans amounted to $197 million on September 30, 2004, reflecting an
increase of 30% over total loans as of September 30, 2003 of $152 million. 
Deposits expanded during the period from September 30, 2003 to September 30,
2004, from $196 million to $245 million, or an increase of 25%.

Sterling Bank's improved earnings are attributable primarily to growth of the
net interest income from $5.7 million during the nine-month period of 2003, to
$7.1 million during the similar period of 2004.  The expansion of this revenue
source is primarily the result of higher volume in earning assets.  Sterling
Bank realized elevated levels of local community lending activity during this
period, with both commercial and consumer originations expanding.

Robert H. King, President and Chief Executive Officer commented, "We are
pleased with the continued strong growth and record performance of Sterling
Bank.  Total revenue enhancement resulting from expanded lending and investment
activity has provided solid growth in earnings and is consistent with our
corporate-wide commitment to maximizing shareholder value.  These very positive
developments are directly attributable to the focused efforts and professional
skills of our staff."

   Sterling Bank
   Financial Highlights (unaudited)
   As of, and for the nine months ended, September 30, 2004 and
   September 30, 2003


                                                 2004          2003

  Total Assets                                $288,920,000   $216,907,000
  Investment Securities                        $71,156,000    $46,632,000
  Total Loans                                 $197,196,000   $151,609,000
  Total Deposits                              $245,222,000   $196,484,000
  Shareholder Equity                           $20,492,000    $19,617,000
  Net Income                                      $743,000       $340,000
  Earnings Per Share                                 $0.26          $0.18

  Weighted Average Shares:
       Basic                                     2,856,134      1,860,600
       Diluted                                   2,890,164      1,870,876



Sterling Bank is a community bank headquartered in Burlington County, New
Jersey, with assets of $289 million as of September 30, 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, [phone],

, or R. Scott Horner, Executive Vice President,

[phone], , both of Sterling Bank



Web site:  http://www.sterlingnj.com/ 

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