EXHIBIT 12.1

STERLING FINANCIAL CORPORATION

COMPUTATION OF RETURN ON AVERAGE SHAREHOLDERS’ EQUITY

For the Year Ended December 31, 2006

Date	Shareholders’ Equity		Number of Days		YTD Weighted Average
01/01/2006		506,684,395		2		1,013,368,790
01/03/2006		506,793,625		3		1,520,380,876
01/06/2006		506,843,665		6		3,041,061,992
01/12/2006		506,844,180		1		506,844,180
01/13/2006		506,950,490		2		1,013,900,981
01/15/2006		511,885,949		2		1,023,771,899
01/17/2006		512,197,693		3		1,536,593,080
01/20/2006		512,197,745		5		2,560,988,726
01/25/2006		512,217,383		6		3,073,304,297
01/31/2006		512,277,223		1		512,277,223
02/01/2006		512,299,037		7		3,586,093,260
02/08/2006		512,299,254		1		512,299,254
02/09/2006		512,314,921		6		3,073,889,526
02/15/2006		517,041,031		1		517,041,031
02/16/2006		517,127,051		1		517,127,051
02/17/2006		517,340,745		5		2,586,703,724
02/22/2006		517,347,775		1		517,347,775
02/23/2006		517,441,946		4		2,069,767,783
02/27/2006		517,455,746		1		517,455,746
02/28/2006		517,584,531		1		517,584,531
03/01/2006		517,941,971		2		1,035,883,941
03/03/2006		518,209,910		5		2,591,049,549
03/08/2006		519,051,379		2		1,038,102,758
03/10/2006		519,200,447		3		1,557,601,340
03/13/2006		519,605,662		2		1,039,211,324
03/15/2006		525,700,685		15		7,885,510,278
03/30/2006		525,700,743		1		525,700,743
03/31/2006		508,720,358		1		508,720,358
04/01/2006		508,720,358		9		4,578,483,218
04/10/2006		508,730,251		2		1,017,460,502
04/12/2006		508,734,024		1		508,734,024
04/13/2006		508,741,789		1		508,741,789
04/14/2006		509,531,864		1		509,531,864
04/15/2006		514,499,016		11		5,659,489,181
04/26/2006		514,499,519		2		1,028,999,039
04/28/2006		514,562,827		2		1,029,125,654
04/30/2006		514,565,717		1		514,565,717
05/01/2006		514,591,427		2		1,029,182,855
05/03/2006		514,643,256		7		3,602,502,790
05/10/2006		514,643,922		5		2,573,219,608
05/15/2006		520,480,582		1		520,480,582
05/16/2006		520,479,684		1		520,479,684
05/17/2006		520,480,148		7		3,643,361,039
05/24/2006		520,481,665		7		3,643,371,656
05/31/2006		520,731,789		1		520,731,789
06/01/2006		520,731,789		11		5,728,049,679
06/12/2006		520,741,936		1		520,741,936
06/13/2006		520,775,356		1		520,775,356
06/14/2006		520,775,893		1		520,775,893
06/15/2006		527,062,567		1		527,062,567
06/16/2006		527,067,623		12		6,324,811,478
06/28/2006		527,069,380		2		1,054,138,760

Date	Shareholders’ Equity		Number of Days		YTD Weighted Average
06/30/2006		514,141,037		1		514,141,037
07/01/2006		514,141,037		4		2,056,564,147
07/05/2006		564,705,989		9		5,082,353,899
07/14/2006		564,717,884		1		564,717,884
07/15/2006		571,549,931		12		6,858,599,167
07/27/2006		571,609,451		1		571,609,451
07/28/2006		571,899,756		3		1,715,699,268
07/31/2006		571,978,824		1		571,978,824
08/01/2006		571,978,824		1		571,978,824
08/02/2006		572,084,674		1		572,084,674
08/03/2006		572,544,717		6		3,435,268,302
08/09/2006		572,613,302		6		3,435,679,811
08/15/2006		578,682,119		1		578,682,119
08/16/2006		578,857,541		1		578,857,541
08/17/2006		578,902,241		1		578,902,241
08/18/2006		578,997,781		4		2,315,991,122
08/22/2006		579,074,911		1		579,074,911
08/31/2006		579,079,837		9		5,211,718,532
09/01/2006		579,072,337		1		579,072,337
09/13/2006		579,073,364		12		6,948,880,373
09/15/2006		585,734,483		2		1,171,468,965
09/29/2006		585,734,370		14		8,200,281,186
09/30/2006		608,721,393		1		608,721,393
10/01/2006		608,721,393		3		1,826,164,179
10/04/2006		608,724,399		7		4,261,070,792
10/11/2006		608,724,928		2		1,217,449,856
10/13/2006		608,739,176		2		1,217,478,352
10/15/2006		615,550,357		12		7,386,604,288
10/27/2006		616,087,959		3		1,848,263,876
10/30/2006		616,098,106		1		616,098,106
10/31/2006		616,160,983		1		616,160,983
11/01/2006		616,393,773		7		4,314,756,412
11/08/2006		616,389,124		5		3,081,945,618
11/13/2006		616,546,644		2		1,233,093,288
11/15/2006		623,206,635		1		623,206,635
11/16/2006		623,238,701		6		3,739,432,208
11/22/2006		623,239,803		8		4,985,918,424
11/30/2006		623,307,985		1		623,307,985
12/01/2006		773,189,973		3		2,319,569,919
12/04/2006		773,260,813		2		1,546,521,627
12/06/2006		773,362,994		1		773,362,994
12/07/2006		773,454,532		1		773,454,532
12/08/2006		773,535,407		3		2,320,606,222
12/11/2006		773,594,225		2		1,547,188,451
12/13/2006		773,606,022		1		773,606,022
12/14/2006		773,918,536		1		773,918,536
12/15/2006		783,022,477		5		3,915,112,384
12/20/2006		783,016,272		1		783,016,272
12/21/2006		783,136,422		8		6,265,091,376
12/29/2006		783,611,308		2		1,567,222,616
12/31/2006		783,416,087		1		783,416,087
Cumulative total				365		208,039,762,724
Divide by number of days						365
Average shareholders’ equity						569,971,953
Net income available to shares outstanding					$	73,946,355
Return on average shareholders’ equity (annualized)						12.97	%