8-K

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)  April 14, 2003

STERLING FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Washington	0-20800	91-1572822
(State or other jurisdiction of	(Commission File Number)	(I.R.S. Employer
incorporation or organization)		Identification No.)

111 North Wall Street, Spokane, Washington 99201

(Address of principal executive offices) (Zip Code)

(509) 458-3711

(Registrant’s telephone number, including area code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

INFORMATION TO BE INCLUDED IN THE REPORT

Item 5.    Other Events.

On April 14, 2003, Sterling Financial Corporation issued a press release announcing its wholly-owned subsidiary Sterling Capital Trust I has called for redemption its 9.50% Cumulative Capital Securities due June 30, 2027.  A copy of the press release is attached hereto as Exhibit 99.1.

Item 7.    Financial Statements and Exhibits.

                (c)           Exhibits

                                99.1         Press Release dated April 14, 2003.

S I G N A T U R E

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 thereunto duly authorized.

	STERLING FINANCIAL CORPORATION
	(Registrant)
April 14, 2003	By:	/s/ William R. Basom
Date		William R. Basom
		Vice President, Treasurer, and
		Principal Accounting Officer

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EX-99.1

Exhibit 99.1

For Release April 14, 2003—1:30 p.m. PST	Contact:  Heidi B. Stanley
	(509) 358-6160

STERLING FINANCIAL CORPORATION

OF SPOKANE, WASHINGTON,

ANNOUNCES REDEMPTION OF STERLING CAPITAL TRUST I SECURITIES

Spokane, Washington—April 14, 2003—Sterling Financial Corporation (NASDAQ: STSA) today announced that its wholly-owned subsidiary, Sterling Capital Trust I, has called for redemption its 9.50% Cumulative Capital Securities due June 30, 2027 (the “Securities”).  The Securities will be redeemed on May 16, 2003 at 100% of the $40,000,000 aggregate principal amount thereof plus accrued and unpaid interest.

Deutsche Bank Trust Company Americas will be contacting the Holders of Sterling Capital Trust I with Notification of Full Redemption, which will include the delivery instructions for redemption of the Securities.  On and after the redemption date, interest on the Securities shall cease to accrue, the Securities will no longer be deemed outstanding and all rights with respect thereto will cease, except the rights of the holders to receive the redemption price.

Sterling Financial Corporation also announced that its wholly-owned subsidiary, Sterling Capital Trust III, sold $14.0 million of trust preferred securities on April 10, 2003.  The rate payable on these trust preferred securities will be the 90-day LIBOR plus 3.25%.  The trust preferred securities will be due in 2033.  The new trust preferred securities, part of a larger pooled offering, were not registered under the Securities Act of 1933 and, accordingly, may not be sold in the United States absent registration or an exemption from applicable registration requirements.

ABOUT STERLING

Sterling Financial Corporation of Spokane, Washington, is a unitary savings and loan holding company, which owns Sterling Savings Bank.  Sterling Savings Bank is a Washington State-chartered, federally insured stock savings association, which opened in April 1983.  Sterling Savings Bank, based in Spokane, Washington, has branches throughout Washington, Idaho, Oregon and western Montana.  Through Sterling’s wholly owned subsidiaries Action Mortgage Company and INTERVEST-Mortgage Investment Company, it operates loan production offices in Washington, Oregon, Idaho and western Montana.  Sterling’s subsidiary Harbor Financial Services provides non-bank investments, including mutual funds, variable annuities, and tax-deferred annuities, through regional representatives throughout Sterling Savings’ branch network.  Sterling’s subsidiary, Dime Insurance Agency provides commercial and consumer insurance products through its offices in western Montana.

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