THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Sterling Financial Corporation (SLFI)

3/29/2006 Proxy Information

Mr. Stefan served as Chairman of Sterling Financial Corporation (Sterling) from April 2002 to June 28, 2005. Prior to becoming Chairman, he served Sterling and its affiliates in many capacities since joining the organization in 1979. He served as Chairman and Chief Executive Officer of Sterling from January 2002 to April 2002 and Chairman, President and Chief Executive Officer of Sterling from 1994 to January 2002.

Some of Sterling’s Directors and executive officers and the companies with which they are associated, were customers of and had banking transactions in the ordinary course of business with Sterling’s subsidiary banks during 2005. All loans and loan commitments made to them and to their companies were made in the ordinary course of business, on substantially the same terms, including interest rates, collateral and repayment terms, as those prevailing at the time for comparable transactions with other customers of the banks, and did not involve more than a normal risk of collectibility or present other unfavorable features. Additionally, some of the Directors’ companies lease vehicles and equipment from Sterling’s leasing subsidiary. Total outstanding loan and lease indebtedness from these persons and their companies as of December 31, 2005 was $3,821,942. The largest aggregate loan and lease amount outstanding to these persons and their companies during 2005 was $4,792,976. Sterling’s bank and leasing subsidiaries anticipate that they will continue to enter into similar transactions in the future.

During 2005, Sterling and its subsidiaries paid $599,821 to D&E Communications, Inc. (a company whose common stock is registered under §12 of the Securities Exchange Act of 1934, as amended) for telecommunication services, local area and wide area network integration services, personal computer hardware and software, and data communications equipment. W. Garth Sprecher, a Director of Sterling, is Senior Vice President, Corporate Secretary and a Director of D&E Communications, Inc. Also during 2005, Sterling and its subsidiaries paid $945,563 to Murray Insurance Associates, Inc. (“Murray”) in insurance premiums for various insurance policies. Further, pursuant to a servicing agreement in connection with Sterling’s 2004 acquisition of Murray’s interest in Lancaster Insurance Group, LLC, Sterling paid Murray $54,215 for administrative and record keeping services in 2005. David E. Hosler, a Director of Sterling, is the Chief Operating Officer of Murray Insurance Associates, Inc.

4/1/2005 Proxy Information

Some of the directors and executive officers of Sterling and the companies with which they are associated, were customers of and had banking transactions in the ordinary course of business with Sterling’s subsidiary banks during 2004. All loans and loan commitments made to them and to their companies were made in the ordinary course of business, on substantially the same terms, including interest rates, collateral and repayment terms, as those prevailing at the time for comparable transactions with other customers of the banks, and did not involve more than a normal risk of collectibility or present other unfavorable features. Total loans to these persons as of December 31, 2004, amounted to $11,176,000. Sterling’s subsidiary banks anticipate that they will enter into similar transactions in the future.

During 2004, Sterling and its subsidiaries paid approximately $635,000 to D&E Communications, Inc. for telecommunication services, local area and wide area network integration services, personal computer hardware and software and data communications equipment. W. Garth Sprecher, a Director of Sterling, is Senior Vice President, Corporate Secretary and a Director of D&E Communications, Inc. Also during 2004, Sterling and its subsidiaries paid approximately $963,000 to Murray Insurance Associates, Inc. (“Murray”) in insurance premiums for various insurance policies. Further, in June 2004, Sterling paid $225,000 to acquire Murray’s membership interest in Lancaster Insurance Group, LLC (“LIG”), a joint venture between Bank of Lancaster County, N.A. and Murray. Pursuant to the purchase agreement, Murray and LIG agreed to split certain commissions until June 30, 2005 and that Murray would provide certain administrative and record keeping services for LIG. David E. Hosler, a Director of Sterling, is Chief Operating Officer of Murray Insurance Associates, Inc.