Sterling Bank's Six Month Pre-Tax Income Increases 95%

Sterling Bank's Six Month Pre-Tax Income Increases 95% 


MOUNT LAUREL, N.J., July 23  /PRNewswire-FirstCall/ -- Sterling Bank
(NASDAQ:STNJ) today reported a 95% increase in income before taxes for the six
months ending June 30, 2004.  Pre-tax income amounted to $660,000 for the first
six months of 2004, while pre-tax income for the period ending June 30, 2003
totaled $339,000.  Net income for the June 30, 2004 six month period totaled
$429,000, an increase of 107% over net income for the similar period of 2003,
which totaled $207,000.  Net income for the six month period ending June 30,
2004 represents earnings of $0.15 per share on both a basic and fully diluted
basis, and is an increase of 15% over the $0.13 per share earned for the six
month period ended on June 30, 2003.

Net Income for the quarter ending June 30, 2004 increased to $249,000,
reflecting a 98% improvement over second quarter 2003 net income of $126,000.
Earnings per share was $0.09 for the second quarter of 2004 compared to $0.08
per share for the second quarter of 2003.  Further, the second quarter 2004 net
income total represents a 38% increase over first quarter 2004 net income of
$180,000, while earnings per share increased by $0.02, a 29% increase.

As of June 30, 2004, Sterling Bank's total assets amounted to $284 million,
compared to total assets of $226 million on June 30, 2003, or a 26% increase. 
Loans totaled $183 million on June 30, 2004, representing an increase of 28%
over total loans as of June 30, 2003 of $143 million. Sterling Bank's improved
earnings for the six month period are attributable primarily to a 21% expansion
of net interest income, coupled with a moderation in the rate of expansion of
noninterest expenses.  Local community-based lending activity has accelerated
during the first half of 2004 following a period of relatively moderate growth
in our loan portfolio as recessionary conditions prevailed.

Robert H. King, President and Chief Executive Officer, commented concerning the
progress of Sterling Bank by noting that, "our enhanced growth rate, which has
been a consistent component of the Bank's progressive development, continues,
and is coupled with a dramatic expansion of both pre-tax and net income levels;
this has been a very positive period for the organization."

   Sterling Bank
   Financial Highlights (unaudited)
   As of June 30, 2004, and June 30, 2003

                                                  2004           2003

  Total Assets                                $283,613,000   $226,322,000
  Investment Securities                        $74,078,000    $31,993,000
  Federal Funds Sold                            $5,631,000    $27,593,000
  Total Loans                                 $183,253,000   $143,118,000
  Total Deposits                              $239,482,000   $212,496,000
  Shareholder Equity                           $19,530,000    $12,497,000
  Net Income                                      $429,000       $207,000
  Earnings Per Share                                 $0.15          $0.13

  Weighted Average Shares:
     Basic                                       2,845,364      1,623,237
     Diluted                                     2,879,073      1,630,791



Sterling Bank is a community bank headquartered in Burlington County, New
Jersey, with assets of $284 million as of June 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, either
expressed or implied, which are provided to assist the reader in understanding
anticipated future financial performance.  These statements involve certain
risks, uncertainties, estimates and assumptions made by management, which are
subject to factors beyond the company's control and could impede its ability to
achieve these goals.  These factors include general economic conditions, trends
in interest rates, the ability of our borrowers to repay their loans, and
results of regulatory examinations, among other factors.

Sterling Bank cautions that the foregoing list of important factors is not
exclusive.  Sterling Bank also cautions readers not to place undue reliance on
these forward-looking statements, which reflect management's analysis only as
of the date on which they are given.  The Bank is not obligated to publicly
revise or update these forward-looking statements to reflect events or
circumstances that arise after any such date.  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 any
current reports on Form 8-K. 

DATASOURCE: Sterling Bank



CONTACT:  Robert H. King, President, [phone] or

, or R. Scott Horner, Executive Vice President,

[phone] or , both of Sterling Bank



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

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