EXHIBIT 12.1

STERLING FINANCIAL CORPORATION
COMPUTATION OF RETURN ON AVERAGE SHAREHOLDERS’ EQUITY
For the Year Ended December 31, 2005

Date	Shareholders’ Equity		Number of Days		YTD Weighted Average
01/01/2005		469,843,466		2		939,686,931
01/03/2005		469,969,336		10		4,699,693,356
01/13/2005		469,999,096		1		469,999,096
01/14/2005		470,028,856		1		470,028,856
01/15/2005		474,746,175		12		5,696,954,095
01/27/2005		474,810,083		4		1,899,240,333
01/31/2005		474,812,974		1		474,812,974
02/01/2005		474,848,279		2		949,696,559
02/03/2005		474,941,809		1		474,941,809
02/04/2005		474,941,829		4		1,899,767,317
02/08/2005		475,077,159		2		950,154,319
02/10/2005		475,083,749		1		475,083,749
02/11/2005		475,131,849		3		1,425,395,548
02/14/2005		475,162,340		1		475,162,340
02/15/2005		479,208,177		2		958,416,354
02/17/2005		479,269,772		1		479,269,772
02/18/2005		479,269,807		7		3,354,888,648
02/25/2005		479,273,122		3		1,437,819,367
02/28/2005		479,276,013		1		479,276,013
03/01/2005		479,294,433		3		1,437,883,300
03/04/2005		479,869,019		3		1,439,607,056
03/07/2005		479,898,779		1		479,898,779
03/08/2005		479,928,539		1		479,928,539
03/09/2005		479,958,299		6		2,879,749,791
03/15/2005		487,188,029		6		2,923,128,171
03/21/2005		487,249,429		10		4,872,494,285
03/31/2005		471,096,354		1		471,096,354
04/01/2005		471,114,774		12		5,653,377,292
04/13/2005		471,119,894		2		942,239,789
04/15/2005		474,998,350		7		3,324,988,452
04/22/2005		475,059,750		8		3,800,478,003
04/30/2005		475,062,641		1		475,062,641
05/01/2005		475,062,641		1		475,062,641
05/02/2005		475,081,061		7		3,325,567,424
05/09/2005		475,127,111		6		2,850,762,664
05/15/2005		479,434,431		3		1,438,303,292
05/18/2005		479,479,751		5		2,397,398,753
05/23/2005		479,563,676		3		1,438,691,027
05/26/2005		479,618,919		5		2,398,094,593
05/31/2005		479,621,809		1		479,621,809
06/01/2005		479,640,229		7		3,357,481,602
06/08/2008		479,674,454		7		3,357,721,177
06/15/2005		487,568,728		13		6,338,393,461
06/28/2005		487,852,191		2		975,704,382
06/30/2005		503,486,359		1		503,486,359

EXHIBIT 12.1, Continued

Date	Shareholders’ Equity		Number of Days		YTD Weighted Average
07/01/2005		503,504,779		14		7,049,066,906
07/15/2005		507,529,887		5		2,537,649,435
07/20/2005		507,606,237		9		4,568,456,133
07/29/2005		507,699,626		2		1,015,399,253
07/31/2005		506,547,628		1		506,547,628
08/01/2005		506,566,048		1		506,566,048
08/02/2005		506,614,400		3		1,519,843,201
08/05/2005		506,662,500		3		1,519,987,501
08/08/2005		506,666,042		2		1,013,332,085
08/10/2005		506,676,162		2		1,013,352,325
08/12/2005		506,690,537		3		1,520,071,610
08/15/2005		511,030,128		1		511,030,128
08/16/2005		511,080,168		15		7,666,202,513
08/31/2005		510,490,550		1		510,490,550
09/01/2005		510,508,970		12		6,126,107,638
09/13/2005		510,526,690		1		510,526,690
09/14/2005		510,556,450		1		510,556,450
09/15/2005		516,447,640		15		7,746,714,600
09/30/2005		499,682,939		1		499,682,939
10/01/2005		499,682,939		2		999,365,877
10/03/2005		499,701,358		12		5,996,416,296
10/15/2005		504,100,381		16		8,065,606,096
10/31/2005		504,103,271		1		504,103,271
11/01/2005		504,136,911		14		7,057,916,758
11/15/2005		508,582,601		1		508,582,601
11/16/2005		508,612,361		5		2,543,061,806
11/21/2005		508,632,601		4		2,034,530,405
11/25/2005		508,662,361		5		2,543,311,807
11/30/2005		508,665,252		1		508,665,252
12/01/2005		508,923,822		4		2,035,695,288
12/05/2005		508,928,895		7		3,562,502,267
12/12/2005		508,944,115		2		1,017,888,231
12/14/2005		509,163,383		1		509,163,383
12/15/2005		515,748,886		16		8,251,982,181
12/31/2005		506,684,395		1		506,684,395
Cumulative total				365		180,023,568,614
Divide by number of days						365
Average shareholders’ equity						493,215,256
Net income available to shares outstanding					$	61,218,903
Return on average shareholders’ equity (annualized)						12.41	%