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  <TITLE> Sterling Financial Corporation (Form: 8-K) </TITLE>
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  		UNITED STATES<BR>
  	SECURITIES AND EXCHANGE COMMISSION
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  	WASHINGTON, D.C. 20549
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  	FORM 8-K
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  	CURRENT REPORT
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  	Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934
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  	Date of Report (Date of Earliest Event Reported):
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  	&nbsp;
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  	March 2, 2006
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  	Sterling Financial Corporation
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  <BR>__________________________________________<BR>
  	(Exact name of registrant as specified in its charter)
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  	Pennsylvania
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  	0-16276
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  	23-2449551
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  _____________________<BR>
  	(State or other jurisdiction
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  _____________<BR>
  	(Commission
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  ______________<BR>
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  	of incorporation)
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  	File Number)
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  	Identification No.)
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  	&nbsp;&nbsp;
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  	101 North Pointe Boulevard, Lancaster, Pennsylvania
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  	17601-4133
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  _________________________________<BR>
  	(Address of principal executive offices)
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  	&nbsp;
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  ___________<BR>
  	(Zip Code)
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  	Registrant&#146;s telephone number, including area code:
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  	717-581-6030
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  	Not Applicable
  <BR>______________________________________________<BR>
  	Former name or former address, if changed since last report
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  	&nbsp;
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  <!-- CoverPageRegistrant END --><P><FONT SIZE="2">
  Check the appropriate box below if the Form 8-K filing is intended to
  simultaneously satisfy the filing obligation of the registrant under any
  of the following provisions:</FONT>
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  <P><FONT SIZE="2">
  [&nbsp;&nbsp;]&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<br>
  [&nbsp;&nbsp;]&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<br>
  [&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<br>
  [&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<br>
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  <B>
  	Item 1.01 Entry into a Material Definitive Agreement.
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  On March 2, 2006, the Manangement Development and Compensation Committee of Sterling Financial Corporation (the "Corporation"), determined the material elements of the Executive Officers' 2006 compensation, including setting the 2006 corporate performance goals for cash bonuses payable under the Corporation's Executive Annual Gain-Sharing Plan.  For 2006, the Committee established fully diluted earnings per share (EPS), return on average realized equity (ROE), and efficiency/productivity ratio as the key measures of corporate performance as well as a discretionary individual performance measure for certain executives. The attached Exhibit 99.1 sets forth the percentages of 2006 annual base salary that each of the executive officers may earn upon the attainment of the established corporate performance levels of: Threshold, Budget, Long-term Goal, and Maximum.<br><br><br>In 2005, the performance factors included basic earnings per share (EPS) growth, return on average realized equity (ROE), efficiency/productivity ratio, and a discretionary individual performance measure. The financial performance goals for 2005 were set at four levels: Threshold, Budget, Long-term Goal, and Maximum. The performance results for 2005, as adjusted for the 5-for-4 stock split paid on June 1, 2005, were, as reported by the Corporation on Form 8-K dated January 24, 2006 as follows:<br><br>Basic EPS:  $1.36<br>ROE:  13.97%<br>Efficiency Ratio:  61.0%<br>
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  	SIGNATURES
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  	Pursuant to the requirements of the Securities Exchange Act of 1934, the
  	registrant has duly caused this report to be signed on its behalf by the
  	undersigned hereunto duly authorized.
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  	Sterling Financial Corporation
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  	&nbsp;&nbsp;
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  <I>
  	March 8, 2006
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  <I>
  	By:
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  <I>
  	Jean Svoboda
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  	&nbsp;
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  <I>
  	Name: Jean Svoboda
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  <I>
  	Title: Vice President, General Counsel and Secretary
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  	Exhibit&nbsp;Index
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  	Exhibit No.
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  	99.1
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  	&nbsp;
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  Sterling Financial Corporation's 2006 Executive Annual Gain Sharing Performance Goals
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metadata_documents: [{"type": "8-K", "sequence": "1", "filename": "htm_10810.htm", "description": "LIVE FILING", "secsgml_size_bytes": 10979}]
metadata_filer: {"company-data": {"conformed-name": "STERLING FINANCIAL CORP /PA/", "cik": "0000811671", "assigned-sic": "6021", "irs-number": "232449551", "state-of-incorporation": "PA", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-16276", "film-number": "06673250"}, "business-address": {"street1": "NORTH POINTE BANKING CORP", "street2": "101 NORTH POINTE BLVD", "city": "LANCASTER", "state": "PA", "zip": "17601-4133", "phone": "7175816030"}}
text: Sterling Financial Corporation (Form: 8-K)
  UNITED STATES
  SECURITIES AND EXCHANGE COMMISSION
  WASHINGTON, D.C. 20549
  FORM 8-K
  CURRENT REPORT
  Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
  Date of Report (Date of Earliest Event Reported):
  March 2, 2006
  Sterling Financial Corporation
  __________________________________________
  (Exact name of registrant as specified in its charter)
  Pennsylvania
  0-16276
  23-2449551
  _____________________
  (State or other jurisdiction
  _____________
  (Commission
  ______________
  (I.R.S. Employer
  of incorporation)
  File Number)
  Identification No.)
  101 North Pointe Boulevard, Lancaster, Pennsylvania
  17601-4133
  _________________________________
  (Address of principal executive offices)
  ___________
  (Zip Code)
  Registrant's telephone number, including area code:
  717-581-6030
  Not Applicable
  ______________________________________________
  Former name or former address, if changed since last report
  Check the appropriate box below if the Form 8-K filing is intended to
  simultaneously satisfy the filing obligation of the registrant under any
  of the following provisions:
  [  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
  [  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
  [  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
  [  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
  Top of the Form
  Item 1.01 Entry into a Material Definitive Agreement.
  On March 2, 2006, the Manangement Development and Compensation Committee of Sterling Financial Corporation (the "Corporation"), determined the material elements of the Executive Officers' 2006 compensation, including setting the 2006 corporate performance goals for cash bonuses payable under the Corporation's Executive Annual Gain-Sharing Plan.  For 2006, the Committee established fully diluted earnings per share (EPS), return on average realized equity (ROE), and efficiency/productivity ratio as the key measures of corporate performance as well as a discretionary individual performance measure for certain executives. The attached Exhibit 99.1 sets forth the percentages of 2006 annual base salary that each of the executive officers may earn upon the attainment of the established corporate performance levels of: Threshold, Budget, Long-term Goal, and Maximum.
  In 2005, the performance factors included basic earnings per share (EPS) growth, return on average realized equity (ROE), efficiency/productivity ratio, and a discretionary individual performance measure. The financial performance goals for 2005 were set at four levels: Threshold, Budget, Long-term Goal, and Maximum. The performance results for 2005, as adjusted for the 5-for-4 stock split paid on June 1, 2005, were, as reported by the Corporation on Form 8-K dated January 24, 2006 as follows:
  Basic EPS:  $1.36
  ROE:  13.97%
  Efficiency Ratio:  61.0%
  Top of the Form
  SIGNATURES
  Pursuant to the requirements of the Securities Exchange Act of 1934, the
  	registrant has duly caused this report to be signed on its behalf by the
  	undersigned hereunto duly authorized.
  Sterling Financial Corporation
  March 8, 2006
  By:
  Jean Svoboda
  Name: Jean Svoboda
  Title: Vice President, General Counsel and Secretary
  Top of the Form
  Exhibit Index
  Exhibit No.
  Description
  99.1
  Sterling Financial Corporation's 2006 Executive Annual Gain Sharing Performance Goals