Sterling Financial Corporation of Lancaster, Pa., Announces Quarterly Dividend for Third Quarter 2006

LANCASTER, Pa., Aug. 22  /PRNewswire-FirstCall/ -- The board of directors of Sterling Financial Corporation (NASDAQ:SLFI) declared a $0.15 per share cash dividend for the third quarter of 2006.  This $0.15 per share quarterly dividend represents a 7.1 percent increase in the quarterly dividend over the dividend of $0.14 in both the second quarter of 2006 and the third quarter of 2005.  In addition, it represents a dividend yield of 2.78 percent, based on Sterling's closing market price of $21.62 on Aug. 21, 2006. The third quarter dividend is payable on Oct. 2, 2006, to shareholders of record on Sept. 15, 2006.

Sterling Financial Corporation has an 18-year record of consecutively increasing shareholder dividends.

With assets of approximately $3.1 billion and investment assets under administration of $2.5 billion, Sterling Financial Corporation (NASDAQ:SLFI) is a diversified financial services company based in Lancaster, Pa.  Sterling Banking Services Group affiliates offer a full range of banking services in south-central Pennsylvania, northern Maryland and northern Delaware; the group also offers correspondent banking services in the mid-Atlantic region to other companies within the financial services industry. Sterling Financial Services Group affiliates provide specialty commercial financing; fleet and equipment leasing; investment, trust and brokerage services; insurance services; and human resources consulting services.  Visit http://www.sterlingfi.com/ for more information.

Banking Services Group -- Banks:  Pennsylvania:  Bank of Lancaster County, N.A.; Bank of Lebanon County; PennSterling Bank; and Pennsylvania State Bank. Pennsylvania and Maryland:  Bank of Hanover and Trust Company.  Maryland: First National Bank of North East.  Delaware:  Delaware Sterling Bank & Trust Company.  Correspondent banking services:  Correspondent Services Group (provider of Sterling services to other financial institutions).

Financial Services Group -- Specialty commercial financing:  Equipment Finance LLC (commercial financing company for the forestry, land clearing and construction industries).  Fleet and equipment leasing:  Town & Country Leasing, LLC (nationwide fleet and equipment leasing company). Trust, investment and brokerage services:  Sterling Financial Trust Company (trust and investment services), Church Capital Management, LLC (registered investment advisor) and Bainbridge Securities Inc. (securities broker/dealer). Insurance services:  Lancaster Insurance Group, LLC (independent insurance agency for personal, property and business insurance); StoudtAdvisors (employee benefits consulting and brokerage firm); and Sterling Financial Settlement Services, LLC (title insurance agency).   Human resources consulting:  Professional Services Group (human resources consulting services provider for small to medium size businesses).

This news release may contain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Actual results and trends could differ materially from those set forth in such statements due to various factors. Such factors include costs and efforts required to integrate aspects of the operations of the companies being more difficult than expected, anticipated merger-related synergies not being achieved timely or not being achieved at all, the possibility that increased demand or prices for Sterling's financial services and products may not occur, changing economic and competitive conditions, volatility in interest rates, technological developments, costs associated with complying with laws, rules and regulations, and other risks and uncertainties, including those detailed in Sterling's filings with the Securities and Exchange Commission. 

DATASOURCE: Sterling Financial Corporation



CONTACT:  Financial, Tito Lima, Chief Financial Officer, [phone],

, or Media, Joe Patterson, Vice President, Director of

Corporate Communications, [phone], [phone] mobile,

, both of Sterling Financial Corporation



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

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