NEWS RELEASE

For More Information Contact:	For Release - April 22, 2008
J. Downey Bridgwater, Chairman, President & Chief Executive Officer, (713) 507-2670 Zach L. Wasson, Executive Vice President & Chief Financial Officer, (713) 507-1297

STERLING BANCSHARES REPORTS FIRST QUARTER 2008 EARNINGS

Net Income of $11.6 Million or $0.16 per share

HOUSTON, TX, April 22, 2008 - Sterling Bancshares, Inc. (NASDAQ: SBIB) today reported net income of $11.6 million, or $0.16 per diluted share for the first quarter ended March 31, 2008, compared to the $11.9 million, or $0.17 per diluted share earned for the first quarter of 2007.

During the first quarter of 2008, the Company completed its acquisition of ten banking centers located in the Dallas and Fort Worth areas which included approximately $54 million in loans and $86 million in deposits from First Horizon National Corp. (“First Horizon”). This transaction allows the Company to achieve a critical presence in Dallas and an entry into the Fort Worth market.

“As compared to the national economy, the Texas markets in which we operate continue to be some of the better performing markets in the nation,” commented J. Downey Bridgwater, Sterling’s Chairman, President and Chief Executive Officer. “Accordingly, while we experienced an increase in net charge-offs during the first quarter of 2008, we expect net charge-offs to stay within our previously stated range for the year.”

Bridgwater continued, “Our expense reduction initiatives continue to show positive results, as well as our efforts to increase our non-interest income. Additionally, we were able to sustain a healthy net interest margin during the first quarter. Sterling’s fundamentals continue to reflect the strength of our franchise at a time when a large number of financial institutions are dealing with significant challenges.”

The allowance for loan losses at March 31, 2008 was $35.7 million and represented 1.01% of total period-end loans. The Company provided $4.2 million for credit losses in the first quarter of 2008 compared with $1.6 million for the fourth quarter of 2007. This increase was due to the acquisition of $54 million of loans from First Horizon, growth in the Company’s loan portfolio and an increase in net charge-offs. Net charge-offs for the first quarter of 2008 were $2.9 million, up from $1.4 million for the fourth quarter of 2007.

Tax-equivalent net interest income for the first quarter of 2008 was $48.4 million, up $870 thousand linked-quarter and up $3.4 million over the first quarter of 2007. Tax-equivalent net interest margin was 4.67% for the first quarter of 2008, up five basis points from 4.62% for the fourth quarter of 2007. This increase in net interest margin was due, in part, to the interest rate hedge that was established in 2006 which effectively converts a portion of the loan portfolio from variable rate to fixed rate and the strategic decision to utilize lower cost borrowings.

Noninterest income was $10.7 million in the first quarter of 2008, up $2.8 million as compared to the first quarter of 2007. This increase was due in part to the acquisition in June of 2007 of MBM Advisors, Inc., whose results contributed $1.7 million in noninterest income for the first quarter of 2008.

Sterling Bancshares, Inc., News Release

April 22, 2008

Page 2

Noninterest expense for the first quarter of 2008 was $37.4 million, up $3.6 million as compared with the first quarter of 2007. The Company completed three acquisitions since the first quarter of 2007 resulting in an increase in noninterest expense of approximately $2.6 million for the first quarter of 2008 compared to the first quarter of 2007. The Company’s efficiency ratio was 62.34% for the first quarter of 2008 compared to 62.59% for the first quarter of 2007.

Average loans held for investment were $3.4 billion for the first quarter of 2008, up $346 million or 11.3% from the first quarter of 2007. Period-end total loans held for investment increased $272 million or 8.5% to $3.5 billion at March 31, 2008 compared to March 31, 2007.

Average total deposits for the first quarter of 2008 were up $260 million or 7.8% from the first quarter of 2007. Period-end total deposits decreased $10.8 million to $3.6 billion at March 31, 2008 compared to March 31, 2007. At March 31, 2008, period-end certificate and other time deposits decreased $124 million since March 31, 2007, due to management’s decision to allow certain higher priced deposits to mature and be replaced by lower cost borrowings.

As of March 31, 2008, Sterling had total assets of $4.7 billion, total loans of $3.5 billion and total deposits of $3.6 billion. Shareholders’ equity of $496 million at March 31, 2008 was 10.5% of total assets. Book value per common share at period-end was $6.79.

Conference Call

Management of Sterling will host a conference call for investors and analysts that will be broadcast live via telephone and over the Internet on Tuesday, April 22, 2008 at 11:00 a.m. Eastern Time. To participate, visit the Investor Relations section of the Company’s web site at http://www.banksterling.com or call (612) 332-0345. An audio archive of the call will also be available on the web site beginning Wednesday, April 23, 2008.

Forward-Looking Statements

This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are based on beliefs and assumptions of management at the time that this release was prepared. The Company does not assume any obligation to update the forward-looking statements. There are several factors, many beyond the Company’s control, that could cause results to differ significantly from expectations including: adverse changes in the loan portfolio and the resulting credit risk-related losses and expenses; potential inadequacy of the allowance for credit losses; the ability to maintain or improve origination volumes; competitive influences on product pricing; and the ability to integrate acquisitions and realize expected cost savings and revenue enhancements. Additional factors can be found in the Company's 2007 Annual Report on Form 10-K filed with the Securities and Exchange Commission and available at the Securities and Exchange Commission’s web site (www.sec.gov).

About Sterling Bancshares

Sterling Bancshares, Inc. is a Houston-based bank holding company with total assets of $4.7 billion, which operates 59 banking centers in the greater metropolitan areas of Houston, San Antonio, Dallas and Fort Worth, Texas. The Company’s common stock is traded through the NASDAQ Global Select Market under the symbol “SBIB”. For more information on Sterling Bancshares, please visit the Company’s web site at http://www.banksterling.com.

-Tables to follow-

STERLING BANCSHARES, INC.

SELECTED FINANCIAL INFORMATION (Unaudited)

(dollars in thousands, except for per share data)

Page 3

	Quarter Ended
	Mar. 31,			Dec. 31,			Mar. 31,
	2008			2007			2007
Profitability
Net Income	$	11,609		$	13,362		$	11,923
Earnings per common share (1)
Basic	$	0.16		$	0.18		$	0.17
Diluted	$	0.16		$	0.18		$	0.17
Return on average common equity (2)		9.43	%		11.15	%		11.60	%
Return on average assets (2)		1.01	%		1.18	%		1.18	%
Tax equivalent net interest margin (3)		4.67	%		4.62	%		4.90	%
Efficiency ratio (4):
Consolidated		62.34	%		62.71	%		62.59	%
Sterling Bank		60.18	%		60.44	%		60.47	%
Liquidity and Capital Ratios
Average loans to average deposits		96.75	%		92.58	%		93.19	%
Period-end stockholders' equity to total assets		10.46	%		10.59	%		10.27	%
Average stockholders' equity to average assets		10.75	%		10.59	%		10.16	%
Period-end tangible capital to total tangible assets		6.76	%		6.79	%		6.52	%
Tier 1 capital to risk-weighted assets		8.75	%		9.05	%		9.11	%
Total capital to risk-weighted assets		10.76	%		11.10	%		11.18	%
Tier 1 leverage ratio (Tier 1 capital to average assets)		8.46	%		8.59	%		9.02	%
Other Data
Shares used in computing earnings per common share
Basic shares		73,152			73,047			71,084
Diluted shares		73,405			73,437			71,750
End of period common shares outstanding		73,115			73,159			73,401
Book value per common share at period-end
Total	$	6.79		$	6.56		$	6.07
Tangible	$	4.21		$	4.04		$	3.70
Cash dividends paid per common share	$	0.055		$	0.0525		$	0.0525
Common stock dividend payout ratio		34.69	%		28.69	%		31.26	%
Full-time equivalent employees		1,103			1,042			1,066
Number of banking centers		59			49			49

STERLING BANCSHARES, INC.

CONSOLIDATED BALANCE SHEETS (Unaudited)

(dollars in thousands)

Page 4

	Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,
	2008			2007			2007			2007			2007
ASSETS
Cash and cash equivalents	$	135,624		$	133,670		$	110,876		$	161,482		$	189,207
Interest-bearing deposits in financial institutions		-			-			-			-			99
Trading assets		-			-			-			398			85
Available-for-sale securities, at fair value		531,572			476,690			464,789			433,325			435,255
Held-to-maturity securities, at amortized cost		176,902			180,086			176,847			177,075			165,277
Loans held for sale		90,274			78,447			54,699			71,380			52,962
Loans held for investment		3,458,476			3,339,837			3,319,652			3,251,164			3,186,601
Total loans		3,548,750			3,418,284			3,374,351			3,322,544			3,239,563
Allowance for loan losses		(35,681	)		(34,446	)		(34,225	)		(33,450	)		(33,487	)
Loans, net		3,513,069			3,383,838			3,340,126			3,289,094			3,206,076
Premises and equipment, net		40,027			27,905			26,624			26,408			25,762
Real estate acquired by foreclosure		4,042			3,683			2,713			3,064			2,624
Goodwill		172,686			168,815			166,130			165,711			159,958
Core deposits and other intangibles, net		15,617			15,971			16,562			17,172			13,966
Accrued interest receivable		18,558			19,701			20,520			19,811			18,840
Other assets		137,364			125,550			114,990			119,254			118,161
TOTAL ASSETS	$	4,745,461		$	4,535,909		$	4,440,177		$	4,412,794		$	4,335,310
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Deposits:
Noninterest-bearing demand	$	1,100,919		$	1,092,210		$	1,082,037		$	1,144,049		$	1,132,744
Interest-bearing demand		1,464,937			1,403,227			1,340,746			1,332,469			1,320,245
Certificates and other time		1,079,061			1,178,274			1,238,980			1,254,338			1,202,715
Total deposits		3,644,917			3,673,711			3,661,763			3,730,856			3,655,704
Other borrowed funds		425,929			197,147			136,555			57,840			32,439
Subordinated debt		49,142			48,694			46,986			45,408			46,467
Junior subordinated debt		82,734			82,734			82,734			82,734			82,734
Accrued interest payable and other liabilities		46,369			53,364			49,104			50,977			72,547
Total liabilities		4,249,091			4,055,650			3,977,142			3,967,815			3,889,891
COMMITMENTS AND CONTINGENCIES		-			-			-			-			-
SHAREHOLDERS' EQUITY
Common stock		74,983			74,926			74,794			74,724			74,526
Capital surplus		111,267			110,367			108,964			108,238			106,926
Retained earnings		317,485			309,903			300,375			289,629			280,375
Treasury stock		(21,399	)		(20,493	)		(20,493	)		(19,413	)		(13,150	)
Accumulated other comprehensive income/(loss), net of tax		14,034			5,556			(605	)		(8,199	)		(3,258	)
Total shareholders' equity		496,370			480,259			463,035			444,979			445,419
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	4,745,461		$	4,535,909		$	4,440,177		$	4,412,794		$	4,335,310

STERLING BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(dollars in thousands, except for per share data)

Page 5

	Quarter Ended
	Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,			Mar. 31,
	2008		2007		2007		2007			2007
Interest income:
Loans, including fees	$	63,052	$	66,229	$	67,033	$	65,489		$	61,350
Securities:
Taxable		6,549		6,522		6,111		5,755			5,461
Non-taxable		908		897		867		853			877
Trading assets		21		87		81		4			1
Federal funds sold		39		117		58		274			148
Deposits in financial institutions		3		2		9		7			17
Total interest income		70,572		73,854		74,159		72,382			67,854
Interest expense:
Demand and savings deposits		5,615		7,535		8,038		7,605			6,039
Certificates and other time deposits		11,977		14,610		14,809		13,922			12,350
Other borrowed funds		2,352		1,708		1,369		1,257			2,495
Subordinated debt		1,032		1,162		1,175		1,162			1,150
Junior subordinated debt		1,600		1,677		1,673		1,658			1,231
Total interest expense		22,576		26,692		27,064		25,604			23,265
Net interest income		47,996		47,162		47,095		46,778			44,589
Provision for credit losses		4,150		1,600		850		1,000			370
Net interest income after provision for credit losses		43,846		45,562		46,245		45,778			44,219
Noninterest income:
Customer service fees		3,876		3,795		3,629		3,431			3,472
Net gain (loss) on trading assets		-		-		2		(1	)		1
Net gain on the sale of securities		-		3		-		-			-
Net gain on sale of loans		306		206		1,208		73			504
Other		6,533		6,131		5,794		4,015			3,957
Total noninterest income		10,715		10,135		10,633		7,518			7,934
Noninterest expense:
Salaries and employee benefits		20,759		20,949		20,634		19,768			19,688
Occupancy		5,265		4,692		4,706		4,606			4,362
Technology		2,330		2,439		2,260		2,095			2,049
Professional fees		1,009		1,068		1,068		1,078			945
Postage, delivery and supplies		1,073		954		903		943			811
Marketing		413		441		432		581			355
Core deposits and other intangibles amortization		585		590		610		517			420
Acquisition costs		562		-		-		166			754
Other		5,392		5,001		4,431		4,588			4,450
Total noninterest expense		37,388		36,134		35,044		34,342			33,834
Income before income taxes		17,173		19,563		21,834		18,954			18,319
Provision for income taxes		5,564		6,201		7,255		5,856			6,396
Net Income	$	11,609	$	13,362	$	14,579	$	13,098		$	11,923
Earnings per share (1):
Basic	$	0.16	$	0.18	$	0.20	$	0.18		$	0.17
Diluted	$	0.16	$	0.18	$	0.20	$	0.18		$	0.17

STERLING BANCSHARES, INC.

SELECTED FINANCIAL INFORMATION (Unaudited)

(dollars in thousands)

Page 6

	Quarter Ended
	Mar. 31, 2008							Dec. 31, 2007
	Average Balance		Interest		Yield/Rate			Average Balance		Interest		Yield/Rate
Interest-Earning Assets:
Loans held for sale	$	78,331	$	1,384		7.11	%	$	66,897	$	1,336		7.92	%
Loans held for investment:
Taxable		3,404,998		61,626		7.28	%		3,338,002		64,850		7.71	%
Non-taxable (3)		2,974		61		8.27	%		3,012		61		8.05	%
Securities:
Taxable		567,343		6,549		4.64	%		555,203		6,522		4.66	%
Non-taxable (3)		97,411		1,251		5.17	%		95,345		1,205		5.02	%
Trading assets		4,395		21		1.91	%		8,686		87		3.97	%
Federal funds sold		4,990		39		3.13	%		10,565		117		4.40	%
Deposits in financial institutions		437		3		3.01	%		183		2		4.37	%
Total interest-earning assets		4,160,879		70,934		6.86	%		4,077,893		74,180		7.22	%
Noninterest-earning assets		442,538							408,815
Total Assets	$	4,603,417						$	4,486,708
Interest-Bearing Liabilities:
Deposits:
Demand and savings	$	1,430,887	$	5,615		1.58	%	$	1,348,767	$	7,535		2.22	%
Certificates and other time		1,125,983		11,977		4.28	%		1,246,118		14,610		4.65	%
Other borrowed funds		323,622		2,352		2.92	%		148,982		1,708		4.55	%
Subordinated debt		49,272		1,032		8.42	%		47,637		1,162		9.68	%
Junior subordinated debt		82,734		1,600		7.78	%		82,734		1,677		8.04	%
Total interest-bearing liabilities		3,012,498		22,576		3.01	%		2,874,238		26,692		3.68	%
Noninterest-bearing sources:
Noninterest-bearing liabilities		1,095,966							1,137,265
Shareholders' equity		494,953							475,205
Total Liabilities and Shareholders' Equity	$	4,603,417						$	4,486,708
Tax Equivalent Net Interest Income and Margin (3)				48,358		4.67	%				47,488		4.62	%
Tax Equivalent Adjustment:
Loans				19							18
Securities				343							308
Total tax equivalent adjustment				362							326
Net Interest Income			$	47,996						$	47,162

STERLING BANCSHARES, INC.

SELECTED FINANCIAL INFORMATION (Unaudited)

(dollars in thousands)

Page 7

	Year-to-date
	2008							2007
	Average Balance		Interest		Yield/Rate			Average Balance		Interest		Yield/Rate
Interest-Earning Assets:
Loans held for sale	$	78,331	$	1,384		7.11	%	$	53,481	$	1,005		7.62	%
Loans held for investment:
Taxable		3,404,998		61,626		7.28	%		3,058,283		60,296		8.00	%
Non-taxable (3)		2,974		61		8.27	%		3,654		69		7.66	%
Securities:
Taxable		567,343		6,549		4.64	%		493,210		5,461		4.49	%
Non-taxable (3)		97,411		1,251		5.17	%		93,153		1,187		5.17	%
Trading assets		4,395		21		1.91	%		72		1		8.48	%
Federal funds sold		4,990		39		3.13	%		11,895		148		5.05	%
Deposits in financial institutions		437		3		3.01	%		1,429		17		4.74	%
Total interest-earning assets		4,160,879		70,934		6.86	%		3,715,177		68,184		7.44	%
Noninterest-earning assets		442,538							389,643
Total Assets	$	4,603,417						$	4,104,820
Interest-Bearing Liabilities:
Deposits:
Demand and savings	$	1,430,887	$	5,615		1.58	%	$	1,227,422	$	6,039		2.00	%
Certificates and other time		1,125,983		11,977		4.28	%		1,084,700		12,350		4.62	%
Other borrowed funds		323,622		2,352		2.92	%		188,569		2,495		5.37	%
Subordinated debt		49,272		1,032		8.42	%		46,125		1,150		10.11	%
Junior subordinated debt		82,734		1,600		7.78	%		58,678		1,231		8.51	%
Total interest-bearing liabilities		3,012,498		22,576		3.01	%		2,605,494		23,265		3.62	%
Noninterest-bearing sources:
Noninterest-bearing liabilities		1,095,966							1,082,426
Shareholders' equity		494,953							416,900
Total Liabilities and Shareholders' Equity	$	4,603,417						$	4,104,820
Tax Equivalent Net Interest Income and Margin (3)				48,358		4.67	%				44,919		4.90	%
Tax Equivalent Adjustment:
Loans				19							20
Securities				343							310
Total tax equivalent adjustment				362							330
Net Interest Income			$	47,996						$	44,589

STERLING BANCSHARES, INC.

SELECTED FINANCIAL INFORMATION (Unaudited)

(dollars in thousands)

Page 8

	Quarter Ended
	Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,
	2008		2007		2007		2007		2007
Condensed Average Balance Sheet
Loans held for sale	$	78,331	$	66,897	$	73,295	$	54,986	$	53,481
Loans held for investment		3,407,972		3,341,014		3,254,513		3,238,611		3,061,937
Total loans		3,486,303		3,407,911		3,327,808		3,293,597		3,115,418
Available-for-sale securities, at fair value		486,131		472,239		446,721		440,994		421,069
Held-to-maturity securities, at amortized cost		178,623		178,309		177,185		163,471		165,294
Trading assets		4,395		8,686		8,470		216		72
Other earning assets		5,427		10,748		5,605		25,623		13,324
Total earning assets		4,160,879		4,077,893		3,965,789		3,923,901		3,715,177
Goodwill		169,198		166,177		165,879		160,141		131,507
Core deposits and other intangibles, net		15,767		16,271		16,874		13,787		10,166
All other non-interest earning assets		257,573		226,367		249,716		244,628		247,970
Total assets	$	4,603,417	$	4,486,708	$	4,398,258	$	4,342,457	$	4,104,820
Noninterest-bearing demand deposits	$	1,046,412	$	1,086,217	$	1,093,485	$	1,108,895	$	1,031,046
Interest bearing deposits:
Interest-bearing demand deposits		1,430,887		1,348,767		1,320,136		1,318,839		1,227,422
Jumbo certificates of deposit		707,543		789,006		758,509		732,260		654,466
Regular certificates of deposit		327,624		339,085		343,288		330,084		311,710
Brokered certificates of deposit		90,816		118,027		142,127		126,136		118,524
Total deposits		3,603,282		3,681,102		3,657,545		3,616,214		3,343,168
Other borrowed funds		323,622		148,982		104,579		96,024		188,569
Subordinated debt		49,272		47,637		46,078		46,232		46,125
Junior subordinated debt		82,734		82,734		82,734		82,734		58,678
Accrued interest payable and other liabilities		49,554		51,048		50,962		50,515		51,380
Total liabilities		4,108,464		4,011,503		3,941,898		3,891,719		3,687,920
Total shareholders' equity		494,953		475,205		456,360		450,738		416,900
Total liabilities and shareholders' equity	$	4,603,417	$	4,486,708	$	4,398,258	$	4,342,457	$	4,104,820

	Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,
	2008		2007		2007		2007		2007
Period-end Loans:
Loans held for sale	$	90,274	$	78,447	$	54,699	$	71,380	$	52,962
Loans held for investment:
Commercial and industrial		980,884		934,176		940,821		913,796		862,516
Real Estate:
Commercial		1,432,905		1,389,225		1,382,313		1,371,036		1,360,681
Construction and development		731,833		714,600		697,099		671,429		666,177
Residential mortgage		237,715		226,085		219,914		215,313		215,536
Consumer/other		75,139		75,751		79,505		79,590		81,691
Loans held for investment		3,458,476		3,339,837		3,319,652		3,251,164		3,186,601
Total period-end loans	$	3,548,750	$	3,418,284	$	3,374,351	$	3,322,544	$	3,239,563
Period-End Deposits:
Noninterest-bearing demand	$	1,100,919	$	1,092,210	$	1,082,037	$	1,144,049	$	1,132,744
Interest-bearing demand		1,464,937		1,403,227		1,340,746		1,332,469		1,320,245
Certificates and other time deposits:
Jumbo		682,264		756,980		773,770		766,416		749,285
Regular		304,776		332,206		345,205		342,579		325,900
Brokered		92,021		89,088		120,005		145,343		127,530
Total period-end deposits	$	3,644,917	$	3,673,711	$	3,661,763	$	3,730,856	$	3,655,704

STERLING BANCSHARES, INC.

SELECTED FINANCIAL INFORMATION (Unaudited)

(dollars in thousands)

Page 9

	Quarter Ended
	Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,
	2008			2007			2007			2007			2007
Allowance For Credit Losses
Allowance for loan losses at beginning of period	$	34,446		$	34,225		$	33,450		$	33,487		$	32,027
Charge-offs:
Commercial, financial and industrial		1,721			876			540			1,316			535
Real estate, mortgage and construction		1,481			728			52			166			120
Consumer		303			547			478			279			325
Total charge-offs		3,505			2,151			1,070			1,761			980
Recoveries:
Commercial, financial and industrial		352			270			612			541			406
Real estate, mortgage and construction		61			8			3			34			2
Consumer		177			494			380			149			166
Total Recoveries		590			772			995			724			574
Net charge-offs		2,915			1,379			75			1,037			406
Allowance for credit losses associated with acquired institutions		-			-			-			-			1,496
Provision for loan losses		4,150			1,600			850			1,000			370
Allowance for loan losses at end of period	$	35,681		$	34,446		$	34,225		$	33,450		$	33,487
Reserve for unfunded loan commitments at beginning of period		927			927			927			927			927
Provision for losses on unfunded loan commitments		-			-			-			-			-
Reserve for unfunded loan commitments at end of period		927			927			927			927			927
Total allowance for credit losses	$	36,608		$	35,373		$	35,152		$	34,377		$	34,414
Nonperforming Assets
Nonperforming loans:
Nonaccrual	$	21,199		$	19,445		$	10,919		$	10,862		$	12,269
Restructured		764			769			772			772			777
Real estate acquired by foreclosure		4,042			3,683			2,713			3,064			2,624
Other repossessed assets		112			152			67			113			191
Total nonperforming assets	$	26,117		$	24,049		$	14,471		$	14,811		$	15,861
Accruing loans past due 90 days or more	$	944		$	1,304		$	1,477		$	1,533		$	4,575
Ratios
Period-end allowance for credit losses to period-end loans		1.03	%		1.03	%		1.04	%		1.03	%		1.06	%
Period-end allowance for loan losses to period-end loans		1.01	%		1.01	%		1.01	%		1.01	%		1.03	%
Period-end allowance for loan losses to nonperforming loans		162.46	%		170.41	%		292.74	%		287.52	%		256.69	%
Nonperforming loans to period-end loans		0.62	%		0.59	%		0.35	%		0.35	%		0.40	%
Nonperforming assets to period-end assets		0.55	%		0.53	%		0.33	%		0.34	%		0.37	%
Net charge-offs to average loans (2)		0.34	%		0.16	%		-			0.13	%		0.05	%

STERLING BANCSHARES, INC.

FOOTNOTES TO EARNINGS RELEASE

Page 10

(1) Earnings per share in each quarter is computed individually using the weighted-average number of shares outstanding during that quarter while earnings per share for the full period is computed using the weighted-average number of shares outstanding during the year. Thus, the sum for all quarters does not necessarily equal the full period earnings per share.

(2) Interim periods annualized.

(3) Taxable-equivalent basis assuming a 35% tax rate.

(4) The efficiency ratio is calculated by dividing noninterest expense less acquisition costs by tax equivalent basis net interest income plus noninterest income less net gain (loss) on sales of investment securities. Prior period amounts have been restated to reflect the current methodology.