EXHIBIT 12.1

STERLING FINANCIAL CORPORATION

COMPUTATION OF RETURN ON AVERAGE COMMON SHAREHOLDERS' EQUITY

For the Three and Twelve Months Ended 12/31/02

	Shareholders' Equity		Number	Three Months Daily Weighted Average				Weighted Twelve Months Daily Average
	Total	Common	of Days	Total	Common			Total	Common
January 1, 2002	165,690,368	165,690,368	14					2,319,665,152	2,319,665,152
January 15, 2002	167,681,400	167,681,400	9					1,509,132,600	1,509,132,600
January 24, 2002	167,750,691	167,750,691	8					1,342,005,528	1,342,005,528
February 1, 2002	167,750,691	167,750,691	14					2,348,509,674	2,348,509,674
February 15, 2002	169,535,616	169,535,616	13					2,203,963,008	2,203,963,008
February 28, 2002	169,696,019	169,696,019	1					169,696,019	169,696,019
March 1, 2002	169,696,019	169,696,019	14					2,375,744,266	2,375,744,266
March 15, 2002	171,501,344	171,501,344	14					2,401,018,816	2,401,018,816
March 29, 2002	171,821,673	171,821,673	2					343,643,346	343,643,346
March 31, 2002	171,590,657	171,590,657	1					171,590,657	171,590,657
April 1, 2002	171,590,657	171,590,657	14					2,402,269,198	2,402,269,198
April 15, 2002	173,001,044	173,001,044	1					173,001,044	173,001,044
April 16, 2002	173,020,102	173,020,102	15					2,595,301,523	2,595,301,523
May 1, 2002	176,520,036	176,520,036	15					2,647,800,533	2,647,800,533
May 15, 2002	178,009,326	178,009,326	15					2,670,139,883	2,670,139,883
May 31, 2002	177,992,313	177,992,313	1					177,992,313	177,992,313
June 1, 2002	177,992,313	177,992,313	3					533,976,939	533,976,939
June 4, 2002	177,988,948	177,988,948	11					1,957,878,428	1,957,878,428
June 15, 2002	180,825,419	180,825,419	6					1,084,952,514	1,084,952,514
June 21, 2002	180,863,214	180,863,214	5					904,316,070	904,316,070
June 26, 2002	180,928,028	180,928,028	4					723,712,112	723,712,112
June 30, 2002	186,778,393	186,778,393	1					186,778,393	186,778,393
July 1, 2002	186,778,393	186,778,393	14					2,614,897,502	2,614,897,502
July 15, 2002	188,962,857	188,962,857	16					3,023,405,712	3,023,405,712
July 31, 2002	189,005,847	189,005,847	1					189,005,847	189,005,847
August 1, 2002	189,005,847	189,005,847	14					2,646,081,858	2,646,081,858
August 15, 2002	191,194,339	191,194,339	15					2,867,915,078	2,867,915,078
August 30, 2002	191,330,456	191,330,456	1					191,330,456	191,330,456
August 31, 2002	191,330,456	191,330,456	1					191,330,456	191,330,456
September 1, 2002	191,330,456	191,330,456	14					2,678,626,384	2,678,626,384
September 15, 2002	193,586,051	193,586,051	15					2,903,790,765	2,903,790,765
September 30, 2002	196,477,777	196,477,777	1					196,477,777	196,477,777
October 1, 2002	196,477,777	196,477,777	14	2,750,688,878	2,750,688,878			2,750,688,878	2,750,688,878
October 15, 2002	199,792,642	199,792,642	16	3,196,682,272	3,196,682,272			3,196,682,272	3,196,682,272
October 31, 2002	199,806,840	199,806,840	1	199,806,840	199,806,840			199,806,840	199,806,840
November 1, 2002	199,806,840	199,806,840	14	2,797,295,760	2,797,295,760			2,797,295,760	2,797,295,760
November 15, 2002	201,973,447	201,973,447	16	3,231,575,152	3,231,575,152			3,231,575,152	3,231,575,152
December 1, 2002	201,973,447	201,973,447	14	2,827,628,258	2,827,628,258			2,827,628,258	2,827,628,258
December 15, 2002	204,133,257	204,133,257	16	3,266,132,112	3,266,132,112			3,266,132,112	3,266,132,112
December 31, 2002	203,655,930	203,655,930	1	203,655,930	203,655,930			203,655,930	203,655,930
			365
Cumulative Total				18,473,465,202	18,473,465,202			67,219,415,051	67,219,415,051
Divide by Number of Days				92	92			365	365
Average				200,798,535	200,798,535			184,162,781	184,162,781
Net Income Available to Common Shares					$	7,641,282			25,587,263
Divide by Average Common Shareholders' Equity					200,798,535				184,162,781
Return on Average Common Shareholder s' Equity (Annualized)					15.10		%		13.89	%