Sterling makes commitment to downtown growth.

On May 18, 2005, Sterling National Bank opened a new full-service branch office at 42 Broadway in Lower Manhattan.

In doing so, we have extended our presence into an area where we expect substantial business growth in the years ahead, and where revitalization is already under way.

This new office enables us to participate directly in the exciting residential and commercial development of the rapidly expanding Lower Manhattan area.

Despite the heavy concentration of financial institutions in Wall Street, and the wealth they generate (Lower Manhattan is the third largest commercial district in the country, behind Midtown Manhattan and the Loop in Chicago), it is a "new frontier" for residential and commercial development.

Recently, this area has been "discovered" by many who have been priced out of the residential market in certain other sections of Manhattan.

In the past three-and-a-half years, its population has grown to over 30,000, from an estimated 15,000 to 20,000, it was recently reported.

Much of this population growth has come through conversion of office space into residential condominiums, with price tags of $1 million plus, even for 1-bedroom apartments ($800-$1,200 per square foot is the current range)--actually more "affordable" than in some other Manhattan areas.

With strong residential development, there quickly follows development of businesses to provide products and services demanded by the new residents.

In Lower Manhattan, this will mean supermarkets and gourmet stores (e.g., Whole Foods recently signed a lease), upscale retail stores, bank branches, antiques dealers, health clubs, galleries, movie complexes, and more.

In its Lower Manhattan office, Sterling National Bank has established a beachhead to provide full banking and financing services to existing and new businesses in this growing area of the City.

In particular, Sterling's Commercial Real Estate Division offers financing on income producing and owner occupied properties, professional cooperatives and condominiums, and interim financing for new construction and development projects.

Furthermore, we will work with other Sterling business groups, including asset based lending, equipment leasing, private and professional banking and international services to provide Lower Manhattan customers with a one-stop solution for their banking and financing needs.

The importance to the City and State of expanded business-financing options in Lower Manhattan was emphasized by the presence of Manhattan Borough President C. Virginia Fields at the 42 Broadway ribbon cutting ceremony.

Empire State Development Corp. Chairman and CEO Charles A. Gargano referred to the City and State efforts "to retain and bring new jobs to downtown as part of our responsibility to restore and rebuild the community," adding "Together with partners like Sterling, we are building the future."

The Lower Manhattan revitalization effort received a major boost on May 25, when Governor George Pataki and Mayor Michael Bloomberg announced an $800 million plan for the area focusing on rejuvenation of neighborhoods, more-affordable housing, and better transportation.

Also at the branch opening, Sterling National Bank Chairman Louis J. Cappelli stated: "In a rapidly consolidating banking market, Sterling is a New York bank that truly understands the City we have called home for over 75 years.

"We are proud to serve the small and middle market businesses and professionals who want and need the kind of banking relationships they cannot find at a large money center bank, and we look forward to working with law firms, accounting firms, local business owners, as well as companies in the staffing and services industries."

The bank's success is "firmly planted on being part of the communities we serve," Mr. Cappelli stated, adding that "Sterling is here to work with Lower Manhattan-based businesses to help them accomplish their goals."

KENNETH E. COHEN SENIOR VP, DIRECTOR COMMERCIAL LENDING, STERLING NATIONAL BANK