POWER OF ATTORNEY

      Know all by these presents, that the undersigned hereby constitutes and
      appoints DANIEL G. BYRNE, or ROBERT G. BUTTERFIELD, or KATHLEEN HUGGINS,
      signing singly, the undersigned's true and lawful attorney-in-fact to:

(1)  execute for and on behalf of the undersigned, in the undersigned's
     capacity as an officer and/or director of STERLING FINANCIAL CORPORATION,
     STERLING SAVINGS BANK, and their subsidiaries (jointly referred to as the
    'Company'), Forms 3, 4 and 5 in accordance with Section 16(a) of the
     Securities Exchange Act of 1934 and the rules and regulations thereunder;

(2)  do and perform any and all acts for and on behalf of the undersigned
     which may be necessary or desirable to complete and execute any such
     Form 3, 4 or 5 and timely file such form with the United States
     Securities and Exchange Commission and any stock exchange or similar
     authority; and

(3)  take any other action of any type whatsoever in connection with the
     foregoing which, in the opinion of such attorney-in-fact, may be of
     benefit to, in the best interest of, or legally required by, the
     undersigned, it being understood that the documents executed by
     such attorney-in-fact on behalf of the undersigned pursuant to this
     Power of Attorney shall be in such form and shall contain such terms
     and conditions as such attorney-in-fact may approve in such
     attorney-in-fact's discretion.

	The undersigned hereby grants to each such attorney-in-fact full
        power and authority to do and perform any and every act and thing
        whatsoever requisite, necessary or proper to be done in the exercise
        of any of the rights and powers herein granted, as fully to all
        intents and purposes as the undersigned might or could do if
        personally present, with full power of substitution or revocation,
        hereby ratifying and confirming all that such attorney-in-fact, or
        such attorney-in-fact's substitute or substitutes, shall lawfully
        do or cause to be done by virtue of this Power of Attorney and the
        rights and powers herein granted.  The undersigned acknowledges that
        the foregoing attorneys-in-fact, in serving in such capacity at the
        request of the undersigned, are not assuming, nor is the Company
        assuming, any of the undersigned's responsibilities to comply with
        Section 16 of the Securities Exchange Act of 1934.

	The undersigned agrees that each such attorney-in-fact herein may
        rely entirely on information furnished orally or in writing by the
        undersigned to such attorney-in-fact.  The undersigned also agrees
        to indemnify and hold harmless the Company and each such
        attorney-in-fact against any losses, claims, damages or liabilities
        (or actions in these respects) that arise out of or are based upon
        any untrue statements or omission of necessary facts in the
        information provided by the undersigned to such attorney-in-fact
        for purposes of executing, acknowledging, delivering or filing
        Form 3, 4 or 5 (including amendments thereto) and agrees to reimburse
        the Company and such attorney-in-fact for any legal or other expenses
        reasonably incurred in connection with investigating or defending
        against any such loss, claim, damage, liability or action.

	This Power of Attorney shall remain in full force and effect until
        the undersigned is no longer required to file Forms 3, 4 and 5 with
        respect to the undersigned's holdings of and transactions in
        securities issued by the Company, unless earlier revoked by the
        undersigned in a signed writing delivered to the foregoing
        attorneys-in-fact.

	IN WITNESS WHEREOF, the undersigned has caused this Power of Attorney
        to be executed as of this 17th day of January, 2007.




						Signature


						Ned M. Barnes
						Print Name


Power of Attorney
Page 2