**____________**

**FORM      10-KSB/A**

**Amendment      No. 1**

**STERLING      BANKS, INC.**

| New                Jersey                                                     | 20-4647587                     |
|-------------------------------------------------------------------------------|--------------------------------|
| (State                or other jurisdiction of incorporation or organization) | (I.R.S.                E.I.N.) |

| 3100                Route 38, Mount Laurel, New Jersey  | 08054                   |
|--------------------------------------------------------------|-------------------------|
| (Address                of principal executive offices)      | Zip                Code |

| Securities                registered pursuant to Section 12(b) of the Act: | Common                Stock, par value $2.00 per share |
|----------------------------------------------------------------------------|--------------------------------------------------------|
|                                                                       | (Title                of Class)                        |

| Securities                registered pursuant to Section 12(g) of the Act: | None                            |
|----------------------------------------------------------------------------|---------------------------------|
|                                                                       | (Title                of Class) |

**,      **
**,      **

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**EXPLANATORY      NOTE**

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**PART      III**

**Item      9. Directors, Executive Officers, Promoters and Control Persons; Compliance      with      Section 16(a) of the Exchange Act. **

**Biographical      Information **

**Directors**

***S.      David Brandt***

***Jeffrey      Dubrow***

***A.      Theodore Eckenhoff***
**,**

***Benjamin      D. Goldman***

***R.      Scott Horner***

***James      L. Kaltenbach, M.D.***

***Robert      H. King***

----

***G.      Edward Koenig, Jr.***

***John      J. Maley, Jr.,***

***Howard      E. Needleman***

***Luis      G. Rogers***

***Ronald      P. Sandmeyer***

***Jeffrey      P. Taylor***

***James      W. Yoh, PhD.***
**,**

**Executive      Officers (who are not also directors) **

***Dale      F. Braun, Jr.,***

***John      Herninko***
*,*

***Kimberly      A. Johnson***
*,*

***Theresa      S. Valentino Congdon***
*,      *

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**Section      16(a) Beneficial Ownership Reporting Compliance. **

**Audit      Committee. **

**Financial      Expert. **

**Code      of Ethics. **

**Item      10. Director and Executive Officer Compensation. **

**Executive      Compensation**

----

**Summary      Compensation Table**

| **Name                and****Principal                Position**                                    | **Year**     | **Salary**                      | **Bonus**            | **Stock****Awards**        | **Option****Awards**** **(1)                | **Non-Equity                Incentive Plan****Compensation** | **Nonqualified                Deferred Compensation****Earnings** | **All                other****Compensation**   | **Total**             |
|-----------------------------------------------------------------------------------------------------|----------------------------------|--------------------------------------|-------------------------------------|--------------------------------------|-------------------------------------------------------|--------------------------------------------------------------|-------------------------------------------------------------------|----------------------------------------------------------|--------------------------------------|
| Robert                H. King, President                and Chief Executive Officer                 | 2006                             | $                205,428             | $                39,500        | $                ―        | $                ―                    | $                ―                           | $                ―                                | $                4,673 (4)                     | $                249,601   |
| R.                Scott Horner, Executive                Vice President and Chief Financial Officer | 2006                   | $                126,066   | $                28,788   | $                ―   | $                2,442 (2)                  | $                ―                           | $                ―                                | $                3,903 (4)                     | $                161,199   |
| John                Herninko, Senior Vice President and Senior Loan Officer                         | 2006                   | $                126,806   | $                28,109   | $                ―   | $                2, 475 (3)                 | $                ―                           | $                ―                                | $                24,169 (5)                         | $                181,559   |

| (1)   | Represents                share-based compensation expense incurred for the year ended December                31,                2006, in accordance with Statement of Financial Accounting Standard                (“SFAS”) 123(R), *Share-                Based Payment.*The                amounts shown exclude the impact of estimated forfeitures related                to                service-based vesting conditions. For additional information on the                valuation assumptions related to the calculation of the valuation,                see                Footnote 1 to the Financial Statements for the fiscal year ended                December                31, 2006, included in the Company’s Annual Report on Form 10-KSB captioned                “Stock Based Employee Compensation”. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | 8,682                options are exercisable at $ 11.44 and expire on 3/28/16. |
|-----------------|--------------------------------------------------------------------------------|

| (3)   | 8,799                options are exercisable at $ 11.44 and expire on 3/28/16. |
|-----------------|--------------------------------------------------------------------------------|

| (4)   | Represents                employer contributions to the Company’s 401(k) plan. |
|-----------------|--------------------------------------------------------------------------------------|

| (5)   | $20,198                represents gross profit on the sale of stock held less than one year                and                the remaining $3,971 represents employer contributions to the Company’s                401(k) plan. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Narrative      Disclosure to Summary Compensation Table**

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***Employment/Change-in-Control      Agreements***

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***Incentive      Compensation Plan***

***Employees      Stock Option Plans***

**Outstanding      Equity Awards at Fiscal Year-End**

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|                               |                                                                                     | **OPTION                AWARDS**                                                                                                                       | **STOCK                AWARDS**                                                                                                                                                                                             |
|------------------------------------|------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Name                          | Number                of Securities Underlying Unexercised Options (#) Exercisable  | Number                of Securities                Underlying                Unexercised                Options                (#) Unexercisable  | Equity                Incentive                Plan                Awards:                Number                of Securities                Underlying                Unexercised Unearned                Options(#)  | Option                Exercise                Price   | Option                Expiration                Date  | Number                of Shares or Units of Stock that have not Vested                (#)  | Market                Value                of Shares                or Units                of Stock                that have                not Vested                  | Equity                Incentive                Plan                Awards: Number                of Unearned Shares,                Units                or Other                Rights                that have not Vested   | Equity                Incentive                Plan Awards:                Market                or Payout                Value of                Unearned Shares,                Units or                Other Rights                that have                not Vested   |
| Robert                H. King (1)  | 25,857                                                                                   | -                                                                                                                                                      | -                                                                                                                                                                                                                           | $8.17 | 05/01/08 | - | - | - | - |
|                               | 1,376                                                                                    | -                                                                                                                                                      | -                                                                                                                                                                                                                           | 6.80 | 03/25/13 | - | - | - | - |
|                               | 57,881                                                                                   | -                                                                                                                                                      | -                                                                                                                                                                                                                           | 8.64 | 04/26/14 | - | - | - | - |
|                               | 22,050                                                                                   | -                                                                                                                                                      | -                                                                                                                                                                                                                           | 9.14 | 03/22/15 | - | - | - | - |
| R.                Scott Horner (2) | 7,757                                                                                    | -                                                                                                                                                      | -                                                                                                                                                                                                                           | 6.66 | 04/29/07 | - | - | - | - |
|                               | 4,221                                                                                    | -                                                                                                                                                      | -                                                                                                                                                                                                                           | 9.24 | 11/24/08 | - | - | - | - |
|                               | 4,020                                                                                    | -                                                                                                                                                      | -                                                                                                                                                                                                                           | 8.58 | 11/23/09 | - | - | - | - |
|                               | 3,829                                                                                    | -                                                                                                                                                      | -                                                                                                                                                                                                                           | 7.20 | 12/01/10 | - | - | - | - |
|                               | 1,376                                                                                    | -                                                                                                                                                      | -                                                                                                                                                                                                                           | 6.80 | 03/25/13 | - | - | - | - |
|                               | 4,631                                                                                    | -                                                                                                                                                      | -                                                                                                                                                                                                                           | 8.04 | 11/25/13 | - | - | - | - |
|                               | 8,269                                                                                    | -                                                                                                                                                      | -                                                                                                                                                                                                                           | 9.52 | 11/23/14 | - | - | - | - |
|                               | 2,756                                                                                    | -                                                                                                                                                      | -                                                                                                                                                                                                                           | 9.14 | 03/22/15 | - | - | - | - |
|                               | -                                                                                        | 8,682                                                                                                                                                  | -                                                                                                                                                                                                                           | 11.44 | 03/28/16 | - | - | - | - |
| John                Herninko (3)   | 4,211                                                                                    |                                                                                                                                                   | -                                                                                                                                                                                                                           | 9.24 | 11/24/08 | - | - | - | - |
|                               | 4,020                                                                                    |                                                                                                                                                   | -                                                                                                                                                                                                                           | 8.58 | 11/23/09 | - | - | - | - |
|                               | 3,829                                                                                    |                                                                                                                                                   | -                                                                                                                                                                                                                           | 7.20 | 12/01/10 | - | - | - | - |
|                               | 1,376                                                                                    |                                                                                                                                                   | -                                                                                                                                                                                                                           | 6.80 | 03/25/13 | - | - | - | - |
|                               | 4,631                                                                                    |                                                                                                                                                   | -                                                                                                                                                                                                                           | 8.04 | 11/25/13 | - | - | - | - |
|                               | 8,269                                                                                    |                                                                                                                                                   | -                                                                                                                                                                                                                           | 9.52 | 11/23/14 | - | - | - | - |
|                               | 2,756                                                                                    |                                                                                                                                                   | -                                                                                                                                                                                                                           | 9.14 | 03/22/15 | - | - | - | - |
|                               | -                                                                                        | 8,799                                                                                                                                                  | -                                                                                                                                                                                                                           | 11.44 | 03/28/16 | - | - | - | - |

----

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**Director      Compensation**

| Name                       | Fees                Earned or Paid in Cash | Stock                Awards  | Option                Awards  | Non-Equity                Incentive Plan Compensation | Nonqualified                Deferred Compensation Earnings | All                Other Compensation  | Total                         |
|--------------------------------------|--------------------------------------------|-----------------------------------|------------------------------------|-------------------------------------------------------|------------------------------------------------------------|---------------------------------------------|------------------------------------|
| S.                David Brandt, Esq. | $                11,100                    | ―                           | ―                            | ―                                               | ―                                                    | ―                                     | $                11,100            |
| Jeffrey                Dubrow        | $                11,200                    | ―                           | ―                            | ―                                               | ―                                                    | ―                                     | $                11,200            |
| A.                Theodore Eckenhoff | $                20,800                    | ―                           | ―                            | ―                                               | ―                                                    | ―                                     | $                20,800            |
| Benjamin                Goldman      | $                  9,750         | ―                           | ―                            | ―                                               | ―                                                    | ―                                     | $                  9,750 |
| James                L. Kaltenbach   | $                17,550                    | ―                           | ―                            | ―                                               | ―                                                    | ―                                     | $                17,550            |
| Howard                E. Needleman   | $                13,550                    | ―                           | ―                            | ―                                               | ―                                                    | ―                                     | $                13,550            |
| Luis                G. Rogers        | $                17,400                    | ―                           | ―                            | ―                                               | ―                                                    | ―                                     | $                17,400            |
| Roger                P. Sandmeyer    | $                19,850                    | ―                           | ―                            | ―                                               | ―                                                    | ―                                     | $                19,850            |
| Jeffrey                P. Taylor     | $                17,800                    | ―                           | ―                            | ―                                               | ―                                                    | ―                                     | $                17,800            |
| James                W. Yoh, Ph.D.   | $                14,500                    | ―                           | ―                            | ―                                               | ―                                                    | ―                                     | $                14,500            |

**Compensation      Arrangements**

**Directors      Stock Option Plan**

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**Item      11. Security Ownership of Certain Beneficial Owners and Management and Related      Stockholder Matters.**

|                                                  | **Number                of****Shares****Beneficially****Owned                (1)** |   | **Percent                of****Company****Common****Stock** |
|-------------------------------------------------------|------------------------------------------------------------------------------------|--------|-------------------------------------------------------------|
| **Certain                Beneficial Owners**:         |                                                                               |   |                                                        |
| Jeffrey                P. Orleans (2)                 | 386,517                                                                            |   | 6.96%                                                       |
| Wellington                Management Company, LLP (3) | 294,138                                                                            |   | 5.29%                                                       |
|                                                  |                                                                               |   |                                                        |
| **Directors                and Executive Officers**:  |                                                                               |   |                                                        |
| S.                David Brandt, Esq. (4)              | 29,745                                                                             |   | *                                                           |
| Dale                F. Braun, Jr. (5)                 | 22,351                                                                             |   | *                                                           |
| Jeffrey                Dubrow (6)                     | 24,304                                                                             |   | *                                                           |
| A.                Theodore Eckenhoff (7)              | 81,474                                                                             |   | 1.46%                                                       |
| Benjamin                D. Goldman (8)                | 94,526                                                                             |   | 1.70%                                                       |
| John                Herninko (9)                      | 34,347                                                                             |   | *                                                           |
| R.                Scott Horner (10)                   | 62,188                                                                             |   | 1.11%                                                       |
| Kimberly                A. Johnson (11)               | 27,037                                                                             |   | *                                                           |
| James                L. Kaltenbach, M.D. (12)         | 40,399                                                                             |   | *                                                           |
| Robert                H. King (13)                    | 148,647                                                                            |   | 2.62%                                                       |
| G.                Edward Koenig, Jr. ( 14 )           | 19,470                                                                             |   | *                                                           |
| John                J. Maley, Jr.                     | 15,398                                                                             |   | *                                                           |
| Howard                E. Needleman (15)               | 104,752                                                                            |   | 1.88%                                                       |

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| Luis                G. Rogers (16)                                                                                                                                         | 17,533    |   | *                      |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|--------|------------------------|
| Ronald                P. Sandmeyer (17)                                                                                                                                    | 129,411   |   | 2.33                %  |
| Jeffrey                P. Taylor (18)                                                                                                                                      | 121,571   |   | 2.19%                  |
| Theresa                S. Valentino Congdon (19)                                                                                                                           | 24,194    |   | *                      |
| James                W. Yoh, PhD. (20)                                                                                                                                     | 10,415    |   | *                      |
| All                Directors and Executive Officers of the Company as a Group (18 persons)                (21)_______________*                ―less than one percent | 1,011,106 |   | 17.30                % |

| (1)   | Beneficial                ownership is based on 5,555,788 outstanding shares of common stock                as of                March 31, 2007. The securities “beneficially owned” by an individual are                determined in accordance with the regulations of the Securities and                Exchange Commission and, accordingly, may include securities owned                by or                for, among others, the spouse and/or minor children of the individual                and                any other relative who has the same home as such individual, as well                as                other securities as to which the individual has or shares voting                or                investment power. A person is also deemed to beneficially own shares                of                common stock which such person does not own but has the right to                acquire                presently or within the next 60                days. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Based                solely on information provided to us by the named beneficial owner,                Jeffrey P. Orleans, One Greenwood Square, 3333 Street Road, Bensalem,                Pennsylvania 19020. Mr. Orleans owns 278,998 shares directly and                has                voting and investment power over (i) 42,470 shares owned by Orleans                Investment Land Associates, LP, a limited partnership of which Mr.                Orleans                owns 100% of the corporate general partner, and (ii) 65,049 shares                owned                by 16A Associates, LP, a limited partnership of which Mr. Orleans                owns                100% of the corporate general partner. Mr. Orleans is the Chairman                and                Chief Executive Officer of Orleans Homebuilders, Inc., a company                of which                Benjamin D. Goldman serves as the Vice-Chairman of the Board. Mr.                Orleans                disclaims beneficial ownership of shares that Mr. Goldman beneficially                owns. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Information                provided by Schedule 13G under the Securities Exchange Act of 1934                filed                by the named beneficial owner, Wellington Management Company, LLP,                75                State Street, Boston, MA 02109 in its capacity as investment advisor,                are                owned of record by clients of Wellington Management. Wellington Management                has shared power to vote on 213,987 shares and shared power to dispose                of                all 294,138 shares. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Includes                4,051 shares held by Mr. Brandt’s wife, 2,647 shares held by Mr. Brandt in                an Individual Retirement Account and an option to purchase 6,566                shares. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | Includes                2,951 shares held jointly with Mr. Braun’s wife and an option to purchase                19,400 shares. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------|

| (6)   | Includes                772 shares held by Mr. Dubrow as custodian for his child, 1,456 shares                held in an Individual Retirement Account and an option to purchase                6,566                shares. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7)   | Includes                7,096 shares held by Mr. Eckenhoff’s wife, 7,751 shares held in an                Individual Retirement account, and an option to purchase 6,566                shares. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8)   | Includes                an option to purchase 2,186 shares. Mr. Goldman serves as the                Vice-Chairman of the Board of Orleans Homebuilders, Inc., a company                of                which Jeffrey P. Orleans is the Chairman and Chief Executive Officer.                Mr.                Goldman disclaims beneficial ownership of shares that Mr. Orleans                beneficially owns. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (9)   | Includes                3,104 shares held jointly with Mr. Herninko’s wife,1,263 shares held in an                Individual Retirement Account and an option to purchase 29,981                shares. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10)   | Includes                19,489 shares held jointly with Mr. Horner’s wife, 4,972 shares held in an                Individual Retirement Account and an option to purchase 37,727                shares. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (11)   | Includes                7,308 shares held jointly with Ms. Johnson’s husband and an option to                purchase 19,729 shares. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| (12)   | Includes                33,154 shares held in an Individual Retirement Account, 680 shares                held by                Dr. Kaltenbach’s wife, and an option to purchase 6,566                shares. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (13)   | Includes                41,483 shares held jointly with Mr. King’s wife and an option to purchase                107,164 shares. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------|

| (14)   | Includes                2,721 shares held in an Individual Retirement Account, 1,701 shares                held                by Mr. Koenig’s wife, and 10,886 shares held in Mr. Koenig’s wife’s                Individual Retirement Account. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (15)   | Includes                2,712 shares held by Mr. Needleman’s wife, 16,202 shares held in an                Individual Retirement Account, 2,315 shares held by Needleman & Co. in                an Individual Retirement Account in which Mr. Needleman has voting                and                investment power, and an option to purchase 6,566                shares. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (16)   | Includes                150 shares held by Justice for All People, a nonprofit organization                of                which Mr. Rogers is the executive director, and an option to purchase                2,186 shares. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (17)   | Includes                31,080 shares held by Mr. Sandmeyer’s wife as custodian for their                grandchildren, 41,350 shares held jointly with his wife and an option                to                purchase 6,566 shares. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (18)   | Includes                49,176 shares held by Mr. Taylor’s wife, 347 shares held by Mr. Taylor’s                wife as custodian for their son, 11,083 held in an Individual Retirement                Account, and an option to purchase 6,566                shares. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (19)   | Includes                705 shares held as custodian for Ms Valentino Congdon’s son and an option                to purchase 23,730 shares. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| (20)   | Includes                an option to purchase 2,186 shares. |
|------------------|-------------------------------------------------------------|

| (21)   | Includes                290,252 shares subject to options. |
|------------------|------------------------------------------------------------|

| Plan                Category                                                | Number                of shares of Common Stock to be issued upon exercise of outstanding                options (a)  |   | Weighted-average                exercise price of outstanding options (b)  |   | Number                of shares of Common Stock remaining available for future issuance                under                equity compensation plans (excluding options reflected in column                (a)) (c)  |
|-----------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Equity                compensation plans approved by shareholders      | 436,414                                                                                                                    |   | $8.94                                                                           |   | 72,503                                                                                                                                                                                                                     |
| Equity                compensation plans not approved by shareholders  | not                applicable                                                                                              |   | not                applicable                                                   |   | not                applicable                                                                                                                                                                                              |
| Total                                                                       | 436,414                                                                                                                         |   | $8.94                                                                                |   | 72,503                                                                                                                                                                                                                          |

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**Item      12. Certain Relationships and Related Transactions. **

**Financial      Products and Services**

**Other      Transactions. **

**Item      13. Exhibits. **

|   | 1. | The                  statements of financial condition of Sterling Bank as of December                  31, 2006                  and 2005 and the related statements of operations, shareholders'                  equity                  and cash flows for the years ended December 31, 2006 and 2005 together                  with the related notes. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Schedules                  omitted as they are not applicable. |
|--------|----|----------------------------------------------------------------|

|   | 3. | The                  following exhibits are included in this amended Report or incorporated                  herein by reference: |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------|

|   | 2.1 | Plan                  of Acquisition, dated April 26, 2006 by and between Sterling Bank                  and                  Sterling Banks, Inc. (a) |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2.2 | Agreement                  and Plan of Merger, dated June 23, 2006, by and among Sterling                  Banks,                  Inc., Sterling Bank, and Farnsworth Bancorp, Inc.                  (b) |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.1 | Certificate                  of Incorporation of Sterling Banks, Inc.                  (d) |
|--------|-----|--------------------------------------------------------------------------------------------|

|   | 3.2 | Bylaws                  of Sterling Banks, Inc. (e) |
|--------|-----|-----------------------------------------------------|

|   | 10.1 | 1994                    Employee Stock Option Plan (f) |
|--------|------|--------------------------------------------------------|

|   | 10.2 | 1998                    Employee Stock Option Plan (f) |
|--------|------|--------------------------------------------------------|

|   | 10.3 | 1998 Director                    Stock Option Plan (f) |
|--------|------|-------------------------------------------------------------|
|   | 10.4 | 2003                    Employee Stock Option Plan                    (f) |
|--------|------|---------------------------------------------------------------------------|

|   | 10.5 | Employment                  agreement dated January 26, 2006 between the Bank and Robert H.                  King (g),                  (h) |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.6 | Letter                  agreement dated January 15, 1998 between the Bank and R. Scott                  Horner (c),                  (h) |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.7 | Letter                  agreement dated January 15, 1998 between the Bank and John Herninko                  (c),                  (h) |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.8 | Letter                    agreement dated January 15, 1998 between the Bank and Theresa                    S. “Sherri”                    Valentino Congdon (c), (h) |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | 10.9 | Lease                  dated as of April 3, 1990, as amended, for headquarters facility                  in Mount                  Laurel, New Jersey (f) |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13.1 | Portions                  of the Bank’s Annual Report to Shareholders for the fiscal year ended                  December 31, 2006 (i) |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | 23.1 | Consent                  of McGladrey & Pullen, LLP, Independent Registered Public Accounting                  Firm (i) |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------|

|   | 31.1 | CEO                  Certification required under Section 302 of Sarbanes - Oxley Act                  of                  2002 |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | CFO                  Certification required under Section 302 of Sarbanes - Oxley Act                  of                  2002 |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------|

|   | 32.1 | CEO                  Certification required under Section 906 of Sarbanes - Oxley Act                  of 2002                  (i) |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.2 | CFO                  Certification required under Section 906 of Sarbanes - Oxley Act                  of 2002                  (i) |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------|

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|   | (a) | Incorporated                  by reference to Exhibit 2.1 of Sterling Banks, Inc.; Registration                  Statement on Form S-4 (File no.                  333-133649). |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Incorporated                  by reference to Exhibit 2.2 of Sterling Banks, Inc.; Registration                  Statement on Form S-4 (File no.                  333-133649). |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Incorporated                  by reference to the Bank’s Registration Statement on Form 10-SB, as                  amended by Amendment No. 1, dated August 13,                  2003. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Incorporated                  by reference to Exhibit 3.1 of Sterling Banks, Inc.; Registration                  Statement on Form S-4 (File no.                  333-133649). |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | Incorporated                  by reference to Exhibit 3.4 of Sterling Banks, Inc.; Registration                  Statement on Form S-4 (File no.                  333-133649). |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | Incorporated                  by reference to the Bank’s Annual Report on Form 10-KSB for the year ended                  December 31, 2003. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | Incorporated                  by reference to the Bank’s Current Report on Form 8-K dated January 25,                  2006. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | Management                  contract or compensatory plan or                  arrangement. |
|--------|-----|--------------------------------------------------------------------------------------------|

|   | (i) | Previously                  filed. |
|--------|-----|------------------------------------|

**Item      14. Principal Accountant Fees and Services.**

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**Audit      Fees**

|                                  | 2006    | 2005    |
|---------------------------------------|---------|---------|
| Audit                fees (a)         | $95,000 | $83,000 |
| Audit-related                fees (b) | 84,000  | 35,000  |
| Tax                fees (c)           | 12,000  | 12,000  |
| All                other fees         | 12,000  | ― |

| (a)   | Fees                for 2006 and 2005 consist of fees for the audit of the Company’s and the                Bank’s annual financial statements and review of financial statements                included in the Company’s and the Bank’s quarterly                reports. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Fees                for 2006 include review of the Company’s Form S-4 filed with the SEC,                audit of the Bank’s 401k Plan and consultation regarding the Company’s                proposed acquisition of Farnsworth Bancorp, Inc. Fees for 2005 consist                of                review of the Bank’s Offering Circular relating to its public offering of                shares of Common Stock which closed in May                2005. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Tax                service fees for compliance work, as well as tax planning and tax                advice. |
|-----------------|-------------------------------------------------------------------------------------------------------------|

| (d)   | All                other fees consist of compliance work                performed. |
|-----------------|------------------------------------------------------------------------------------|

**Audit      Committee Pre-Approval of Audit and Permissible Non-Audit Services of      Independent Auditor**

----

**SIGNATURES**

|   | **STERLING                BANKS, INC.** |
|--------|-----------------------------------------|
|   |                                    |   |
|   | By:                                     | /s/                Robert H. King |
|   |                                    | Robert                H. King |
|   |                                    | President                and Chief Executive Officer |

| /s/Robert                H. King                    |   | /s/                Benjamin D. Goldman   |
|-----------------------------------------------------|--------|------------------------------------------|
| Robert                H. King                       |   | Benjamin                D. Goldman       |
| President,                Chief Executive Officer   |   | Director                                 |
| and                Director                         |   |                                     |
| (Principal                Executive Officer)        |   | /s/                James L. Kaltenbach   |
|                                                |   | James                L. Kaltenbach, M.D. |
| /s/                R. Scott Horner                  |   | Director                                 |
| R.                Scott Horner                      |   |                                     |
| Executive                Vice President, Chief      |   | /s/                G. Edward Koenig, Jr. |
| Financial                Officer and Director       |   | G.                Edward Koenig, Jr.     |
| (Principal                Financial Officer)        |   | Director                                 |
|                                                |   |                                     |
| /s/                Dale F. Braun, Jr.               |   |                                     |
| Dale                F. Braun, Jr.                   |   | John                J. Maley, Jr.        |
| Senior                Vice President and Controller |   | Director                                 |
| (Principal                Accounting Officer)       |   |                                     |
|                                                |   | /s/                Luis G. Rogers        |
| /s/                A. Theodore Eckenhoff            |   | Luis                G. Rogers            |
| A.                Theodore Eckenhoff                |   | Director                                 |
| Chairman                                            |   |                                     |
|                                                |   | /s/                Ronald Sandmeyer      |
|                                                |   | Ronald                P. Sandmeyer       |
| Howard                E. Needleman                  |   | Director                                 |
| Vice                Chairman                        |   |                                     |
|                                                |   | /s/                Jeffrey P. Taylor     |
| /s/                S. David Brandt, Esq             |   | Jeffrey                P. Taylor, P.E.   |
| S.                David Brandt, Esq                 |   | Director                                 |
| Director                                            |   |                                     |
|                                                |   |                                     |
| /s/                Jeffrey Dubrow                   |   | James                Yoh, PhD.           |
| Jeffrey                Dubrow                       |   | Director                                 |
| Director                                            |   |                                     |

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|   | 2.1 | Plan                  of Acquisition, dated April 26, 2006 by and between Sterling Bank                  and                  Sterling Banks, Inc. (a) |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2.2 | Agreement                  and Plan of Merger, dated June 23, 2006, by and among Sterling                  Banks,                  Inc., Sterling Bank, and Farnsworth Bancorp, Inc.                  (b) |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.1 | Certificate                  of Incorporation of Sterling Banks, Inc.                  (d) |
|--------|-----|--------------------------------------------------------------------------------------------|

|   | 3.2 | Bylaws                  of Sterling Banks, Inc. (e) |
|--------|-----|-----------------------------------------------------|

|   | 10.1 | 1994                  Employee Stock Option Plan (f) |
|--------|------|------------------------------------------------------|

|   | 10.2 | 1998                  Employee Stock Option Plan (f) |
|--------|------|------------------------------------------------------|

|   | 10.3 | 1998                    Director Stock Option Plan                    (f) |
|--------|------|---------------------------------------------------------------------------|

|   | 10.4 | 2003                  Employee Stock Option Plan (f) |
|--------|------|------------------------------------------------------|
|   | 10.5 | Employment                  agreement dated January 26, 2006 between the Bank and Robert H.                  King (g),                  (h) |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.6 | Letter                  agreement dated January 15, 1998 between the Bank and R. Scott                  Horner (c),                  (h) |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.7 | Letter                  agreement dated January 15, 1998 between the Bank and John Herninko                  (c),                  (h) |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.8 | Letter                  agreement dated January 15, 1998 between the Bank and Theresa S.“Sherri”                  Valentino Congdon (c), (h) |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.9 | Lease                  dated as of April 3, 1990, as amended, for headquarters facility                  in Mount                  Laurel, New Jersey (f) |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13.1 | Portions                  of the Bank’s Annual Report to Shareholders for the fiscal year ended                  December 31, 2006 (i) |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | 23.1 | Consent                  of McGladrey & Pullen, LLP, Independent Registered Public Accounting                  Firm (i) |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------|

|   | 31.1 | CEO                  Certification required under Section 302 of Sarbanes                  - Oxley Act of 2002 |
|--------|------|----------------------------------------------------------------------------------------------------------------|

|   | 31.2 | CFO                  Certification required under Section 302 of Sarbanes                  - Oxley Act of 2002 |
|--------|------|----------------------------------------------------------------------------------------------------------------|

|   | 32.1 | CEO                  Certification required under Section 906 of Sarbanes - Oxley Act                  of 2002                  (i) |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.2 | CFO                  Certification required under Section 906 of Sarbanes - Oxley Act                  of 2002                  (i) |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------|

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|   | (a) | Incorporated                  by reference to Exhibit 2.1 of Sterling Banks, Inc.; Registration                  Statement on Form S-4 (File no.                  333-133649). |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Incorporated                  by reference to Exhibit 2.2 of Sterling Banks, Inc.; Registration                  Statement on Form S-4 (File no.                  333-133649). |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Incorporated                  by reference to the Bank’s Registration Statement on Form 10-SB, as                  amended by Amendment No. 1, dated August 13,                  2003. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Incorporated                  by reference to Exhibit 3.1 of Sterling Banks, Inc.; Registration                  Statement on Form S-4 (File no.                  333-133649). |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | Incorporated                  by reference to Exhibit 3.4 of Sterling Banks, Inc.; Registration                  Statement on Form S-4 (File no.                  333-133649). |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | Incorporated                  by reference to the Bank’s Annual Report on Form 10-KSB for the year ended                  December 31, 2003. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | Incorporated                  by reference to the Bank’s Current Report on Form 8-K dated January 25,                  2006. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | Management                  contract or compensatory plan or                  arrangement. |
|--------|-----|--------------------------------------------------------------------------------------------|

|   | (i) | Previously                  filed. |
|--------|-----|------------------------------------|

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