Exhibit 99.2

STERLING FINANCIAL CORPORATION

SELECTED FINANCIAL DATA

(DOLLAR AMOUNTS IN THOUSANDS,

EXCEPT PER SHARE AMOUNTS, UNAUDITED)

	SEPTEMBER 30, 2003			JUNE 30, 2003			SEPTEMBER 30, 2002 (1)

ASSETS:
CASH AND CASH EQUIVALENTS	$	75,191		$	93,605		$	71,008
LOANS RECEIVABLE, NET	2,761,174			2,668,990			2,243,164
LOANS HELD FOR SALE	22,754			50,625			18,616
INVESTMENTS AND ASSET-BACKED SECURITIES (ABS) AVAILABLE FOR SALE	1,010,084			1,073,869			803,784
INVESTMENTS AND ABS HELD TO MATURITY	2,821			2,834			6,667
OFFICE PROPERTIES AND EQUIPMENT, NET	52,385			51,921			47,347
REAL ESTATE OWNED, NET	3,108			3,982			5,336
GOODWILL, NET	45,075			45,075			43,977
OTHER INTANGIBLE ASSETS, NET	2,960			3,038			0
BANK OWNED LIFE INSURANCE (BOLI)	72,168			71,189			58,543
PREPAID EXPENSES AND OTHER ASSETS, NET	27,730			29,459			31,133

TOTAL ASSETS	$	4,075,450		$	4,094,587		$	3,329,575

LIABILITIES:
DEPOSITS	$	2,421,043		$	2,393,707		$	2,018,424
ADVANCES FROM FEDERAL HOME LOAN BANK OF SEATTLE	964,140			995,119			738,086
REPURCHASE AGREEMENTS AND FED FUNDS	259,107			276,958			221,960
OTHER BORROWINGS	136,782			139,782			119,000
ACCRUED EXPENSES & OTHER LIABILITIES	45,501			42,678			35,627
TOTAL LIABILITIES	3,826,573			3,848,244			3,133,097

SHAREHOLDERS’ EQUITY:
COMMON STOCK	14,812			14,781			11,957
ADDITIONAL PAID-IN CAPITAL	181,036			180,825			125,166
ACCUMULATED COMPREHENSIVE INCOME (LOSS): UNREALIZED GAIN (LOSS) ON INVESTMENTS AND ABS (2)	(7,278		)	(945		)	3,916
RETAINED EARNINGS	60,307			51,682			55,439
TOTAL SHAREHOLDERS’ EQUITY	248,877			246,343			196,478

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	4,075,450		$	4,094,587		$	3,329,575

BOOK VALUE PER SHARE (3)	$	16.80		$	16.67		$	14.94

TANGIBLE BOOK VALUE PER SHARE (4)	$	13.56		$	13.41		$	11.59

SHARES OUTSTANDING AT END OF PERIOD	14,811,661			14,781,418			11,957,448

SHAREHOLDERS’ EQUITY TO TOTAL ASSETS	6.11		%	6.02		%	5.90		%

TANGIBLE EQUITY TO TOTAL ASSETS (5)	4.93		%	4.84		%	4.58		%

(1) Certain prior period amounts have been reclassified to conform with the current period’s presentation.

(2) Net of deferred income taxes.

(3) Amount as of September 30, 2002 has been restated to reflect the 10% stock dividend paid in May 2003.

(4) Amount represents shareholders’ equity less net goodwill and other intangible assets divided by total shares outstanding.

(5) Amount represents shareholders’ equity less net goodwill and other intangible assets divided by total assets.

	THREE MONTHS ENDED									NINE MONTHS ENDED
	SEPT 30, 2003			JUNE 30, 2003			SEPT 30, 2002 (1)			SEPT 30, 2003			SEPT 30, 2002 (1)
INTEREST INCOME:
LOANS	$	43,179		$	42,376		$	40,260		$	125,894		$	118,340
ASSET-BACKED SECURITIES	10,558			9,214			8,797			29,744			24,384
INVESTMENTS AND CASH	959			1,061			1,052			3,194			3,252
TOTAL INTEREST INCOME	54,696			52,651			50,109			158,832			145,976

INTEREST EXPENSE:
DEPOSITS	9,322			9,493			11,175			27,835			34,025
BORROWINGS	13,046			13,118			13,070			40,058			39,330
TOTAL INTEREST EXPENSE	22,368			22,611			24,245			67,893			73,355

NET INTEREST INCOME	32,328			30,040			25,864			90,939			72,621

PROVISION FOR LOSSES ON LOANS	(2,850		)	(2,550		)	(3,277		)	(7,650		)	(7,590		)
NET INTEREST INCOME AFTER PROVISION	29,478			27,490			22,587			83,289			65,031

OTHER INCOME:
FEES AND SERVICE CHARGES	5,052			4,909			4,352			14,260			12,281
MORTGAGE BANKING OPERATIONS	2,185			2,496			1,307			6,898			3,663
LOAN SERVICING FEES (COSTS)	518			(153		)	271			449			865
NET GAIN (LOSS) ON SALES OF SECURITIES	(308		)	1,677			1,399			2,729			1,796
REAL ESTATE OWNED OPERATIONS	125			(180		)	(8		)	(84		)	(202		)
BOLI	979			968			731			2,769			2,433
CHARGE RELATED TO EARLY REPAYMENT OF DEBT	0			—			0			(1,464		)	0
OTHER NONINTEREST INCOME (EXPENSE)	(155		)	(28		)	15			(363		)	(195		)
TOTAL OTHER INCOME	8,396			9,689			8,067			25,194			20,641

OPERATING EXPENSES:
EMPLOYEE COMPENSATION AND BENEFITS	13,683			11,997			11,076			37,638			32,103
OCCUPANCY AND EQUIPMENT	3,641			3,657			3,152			10,805			9,320
AMORTIZATION OF OTHER INTANGIBLES	78			79			—			183			644
GOODWILL LITIGATION COSTS	236			64			270			550			790
ACQUISITION AND MERGER COSTS	166			45			0			354			0
OTHER	6,851			6,762			6,621			19,140			17,681
TOTAL OPERATING EXPENSES	24,655			22,604			21,119			68,670			60,538

INCOME FROM OPERATIONS BEFORE TAXES	13,219			14,575			9,535			39,813			25,134
INCOME TAX PROVISION	(4,594		)	(5,058		)	(2,906		)	(13,888		)	(7,188		)

NET INCOME	$	8,625		$	9,517		$	6,629		$	25,925		$	17,946

EARNINGS PER SHARE - BASIC (2)	$	0.58		$	0.64		$	0.50		$	1.80		$	1.38
EARNINGS PER SHARE - DILUTED (2)	$	0.57		$	0.63		$	0.49		$	1.75		$	1.34

CORE EARNINGS (3)	$	8,933		$	8,456		$	6,208		$	25,333		$	17,267
CORE EARNINGS PER SHARE - BASIC (3)	$	0.60		$	0.57		$	0.47		$	1.77		$	1.33
CORE EARNINGS PER SHARE - DILUTED (3)	$	0.59		$	0.56		$	0.46		$	1.71		$	1.29

WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC (2)	14,791,399			14,771,708			13,145,696			14,428,622			12,985,287
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED (2)	15,220,484			15,147,572			13,439,003			14,818,023			13,398,551

(1) Certain prior period amounts have been reclassified to conform with the current period’s presentation.

(2) Weighted average shares and per share amounts for prior periods have been restated to reflect the 10% stock dividend paid in May 2003.

(3) Core earnings per share excludes net securities gains (losses), acquisition and merger costs, a supplemental loan loss provision and a charge for costs related to early repayment of debt, net of related income taxes. See Exhibit A for a reconciliation to reported earnings per share. Management believes that this presentation of non-GAAP information regarding core earnings provides useful information to investors regarding the registrant’s financial condition and results of operations as core earnings are widely used for comparison purposes in the financial services industry.

	THREE MONTHS ENDED									NINE MONTHS ENDED
	SEPT 30, 2003			JUNE 30, 2003			SEPT 30, 2002 (1)			SEPT 30, 2003			SEPT 30, 2002 (1)

NET INTEREST SPREAD:
YIELD ON LOAN PORTFOLIO	6.10		%	6.29		%	7.09		%	6.30		%	7.17		%
YIELD ON INVESTMENTS AND CASH	3.87		%	4.13		%	4.97		%	4.37		%	4.63		%
YIELD ON ASSET-BACKED SECURITIES	4.29		%	4.40		%	5.35		%	4.47		%	5.41		%
YIELD ON INTEREST-EARNING ASSETS	5.59		%	5.80		%	6.67		%	5.80		%	6.74		%

COST OF DEPOSITS	1.53		%	1.65		%	2.20		%	1.39		%	2.34		%
COST OF BORROWINGS	3.74		%	4.17		%	5.38		%	4.08		%	5.54		%
COST OF LIABILITIES	2.33		%	2.54		%	3.23		%	2.52		%	3.39		%

NET INTEREST SPREAD	3.26		%	3.26		%	3.44		%	3.28		%	3.35		%

NET INTEREST MARGIN	3.31		%	3.31		%	3.44		%	3.32		%	3.35		%

AVERAGE INTEREST-EARNING ASSETS	$	3,880,679		$	3,642,331		$	2,981,256		$	3,658,489		$	2,896,497
AVERAGE INTEREST-BEARING LIABILITIES	3,806,143			3,577,582			2,975,445			3,597,602			2,894,116

PERFORMANCE RATIOS:
RETURN ON AVERAGE ASSETS	0.83		%	0.98		%	0.82		%	0.89		%	0.77		%
RETURN ON AVERAGE ASSETS, CORE OPERATING BASIS (2)	0.86		%	0.87		%	0.76		%	0.87		%	0.74		%
RETURN ON AVERAGE SHAREHOLDERS’ EQUITY	13.6		%	15.5		%	13.8		%	14.5		%	13.4		%
RETURN ON AVERAGE SHAREHOLDERS’ EQUITY, CORE OPERATING BASIS (2)	14.1		%	13.8		%	12.9		%	14.2		%	12.9		%
OPERATING EFFICIENCY, EXCLUDING INTANGIBLE AMORTIZATION	60.4		%	56.7		%	62.2		%	59.0		%	64.2		%
OPERATING EFFICIENCY, EXCLUDING INTANGIBLE AMORTIZATION AND GAIN (LOSS) ON SALE OF SECURITIES	59.9		%	59.2		%	64.9		%	60.4		%	65.5		%
NONINTEREST EXPENSE TO AVERAGE ASSETS	2.38		%	2.34		%	2.60		%	2.37		%	2.59		%

CAPITAL ADEQUACY:
SHAREHOLDERS’ EQUITY RATIO	6.11		%	6.02		%	5.90		%	6.11		%	5.90		%
REGULATORY CAPITAL RATIOS (FOR STERLING SAVINGS BANK):
CORE CAPITAL RATIO	7.6		%	7.4		%	7.8		%	7.6		%	7.8		%
TIER 1 RISK-BASED CAPITAL RATIO	10.1		%	10.1		%	10.2		%	10.1		%	10.2		%
TOTAL RISK-BASED CAPITAL RATIO	11.1		%	11.1		%	11.2		%	11.1		%	11.2		%

LOAN ORIGINATIONS BY PROPERTY TYPE:
RESIDENTIAL REAL ESTATE	$	146,908		$	146,405		$	87,556		$	425,601		$	203,684
MULTIFAMILY REAL ESTATE	23,693			17,077			14,929			54,135			32,737
COMMERCIAL REAL ESTATE	12,435			48,304			15,167			97,838			46,892
CONSTRUCTION	218,072			195,137			169,567			542,363			455,260
CONSUMER - DIRECT	69,127			61,632			30,593			163,067			106,573
CONSUMER - INDIRECT	24,081			15,594			17,059			53,943			50,345
BUSINESS BANKING	93,014			122,857			116,464			290,457			291,719
CORPORATE BANKING	16,055			51,780			24,318			114,685			92,681
TOTAL LOAN ORIGINATION VOLUME	$	603,385		$	658,786		$	475,653		$	1,742,089		$	1,279,891

NONBANKING SUBSIDIARY PRODUCTION:
SALES OF FINANCIAL PRODUCTS	$	9,905		$	8,781		$	10,200		$	26,911		$	23,651

(1) Certain prior period amounts have been reclassified to conform with the current period’s presentation.

(2) Core operating basis excludes net securities gains (losses), acquisition and merger costs, a supplemental loan loss provision and a charge for costs related to early repayment of debt, net of related income taxes. See Exhibit A for a reconciliation to reported ratios. Management believes that this presentation of non-GAAP information regarding core earnings provides useful information to investors regarding the registrant’s financial condition and results of operations as core earnings are widely used for comparison purposes in the financial services industry.

STERLING FINANCIAL CORPORATION

SELECTED FINANCIAL DATA

(DOLLAR AMOUNTS IN THOUSANDS)

	SEPT 30, 2003			JUNE 30, 2003			SEPT 30, 2002

LOANS BY COLLATERAL TYPE:
RESIDENTIAL REAL ESTATE	$	377,459		$	369,293		$	344,337
MULTIFAMILY REAL ESTATE	161,830			164,656			140,803
COMMERCIAL REAL ESTATE	478,386			478,849			435,458
CONSTRUCTION	549,641			540,301			456,671
CONSUMER - DIRECT	294,520			268,720			249,494
CONSUMER - INDIRECT	91,488			77,383			55,241
BUSINESS BANKING	681,586			656,218			530,068
CORPORATE BANKING	167,123			152,377			61,192
DEFERRED LOAN FEES, NET	(7,118		)	(6,773		)	(5,985		)
ALLOWANCE FOR LOSSES ON LOANS	(33,741		)	(32,034		)	(24,115		)
NET LOANS RECEIVABLE	$	2,761,174		$	2,668,990		$	2,243,164

ALLOWANCE FOR LOSSES ON LOANS:
BALANCE AT BEGINNING OF QUARTER	$	32,034		$	30,562		$	21,535
ALLOWANCE FOR LOAN LOSSES ACQUIRED	0			0			0
PROVISION FOR LOSSES ON LOANS	2,850			2,550			3,277
AMOUNTS WRITTEN OFF NET OF RECOVERIES AND OTHER	(1,143		)	(1,078		)	(697		)
BALANCE AT END OF QUARTER	$	33,741		$	32,034		$	24,115

NET CHARGE-OFFS TO AVERAGE NET LOANS (ANNUALIZED)	0.16		%	0.16		%	0.12		%
NET CHARGE-OFFS TO AVERAGE NET LOANS (YTD)	0.10		%	0.06		%	0.19		%

LOAN LOSS ALLOWANCE TO TOTAL LOANS	1.21		%	1.19		%	1.06		%
LOAN LOSS ALLOWANCE & DISCOUNTS TO LOANS	1.27		%	1.26		%	1.15		%

LOAN LOSS ALLOWANCE TO NON-PERFORMING LOANS (EXCLUDING LOANS CLASSIFIED AS LOSS)	153.8		%	116.5		%	118.9		%
NON-PERFORMING LOANS TO NET LOANS	0.81		%	1.03		%	0.92		%

ALLOWANCE FOR REAL ESTATE OWNED (REO):
BALANCE AT BEGINNING OF QUARTER	$	235		$	338		$	675
PROVISION FOR REO LOSSES	35			15			60
AMOUNTS WRITTEN OFF NET OF RECOVERIES AND OTHER	(232		)	(118		)	(464		)
BALANCE AT END OF QUARTER	$	38		$	235		$	271

REO LOSS ALLOWANCE TO TOTAL REO	1.21		%	5.57		%	4.83		%

NONPERFORMING ASSETS:
ACCRUING LOANS WHICH ARE PAST DUE 90 DAYS	$	0		$	1,259		$	0
NON-ACCRUAL LOANS	21,151			24,299			19,913
RESTRUCTURED LOANS	1,232			1,843			614
TOTAL NONPERFORMING LOANS	22,383			27,401			20,527
REO	3,108			3,982			5,336
TOTAL NONPERFORMING ASSETS (NPA)	$	25,491		$	31,383		$	25,863

NPA TO TOTAL ASSETS	0.63		%	0.77		%	0.78		%

NPA TO TOTAL ASSETS EXCLUDING SOURCE CAPITAL/EMPIRE NPA	0.43		%	0.54		%	0.51		%

LOAN AND REO LOSS ALLOWANCE TO NONPERFORMING ASSETS	132.3		%	102.1		%	93.3		%

LOAN DELINQUENCY RATIO (60 DAYS AND OVER)	0.87		%	1.13		%	0.82		%

CLASSIFIED ASSETS- STERLING SAVINGS BANK	$	59,397		$	68,745		$	60,274
CLASSIFIED ASSETS- SOURCE	4,811			5,034			12,025
CLASSIFIED ASSETS- EMPIRE	5,056			6,716			0
TOTAL CLASSIFIED ASSETS	$	69,264		$	80,495		$	72,299

CLASSIFIED ASSETS/TOTAL ASSETS	1.70		%	1.97		%	2.17		%

CLASSIFIED ASSETS/TOTAL ASSETS EXCLUDING SOURCE AND EMPIRE	1.46		%	1.68		%	1.81		%

(DOLLAR AMOUNTS IN THOUSANDS,

EXCEPT PER SHARE AMOUNTS, UNAUDITED)

EXHIBIT A- RECONCILIATION SCHEDULE

	THREE MONTHS ENDED									NINE MONTHS ENDED
	SEPT 30, 2003			JUNE 30, 2003			SEPT 30, 2002 (1)			SEPT 30, 2003			SEPT 30, 2002 (1)

CORE EARNINGS:
NET INCOME, AS REPORTED	$	8,625		$	9,517		$	6,629		$	25,925		$	17,946
SUBTRACT: NET (GAIN) LOSS ON SECURITIES, NET OF TAX	200			(1,090		)	(909		)	(1,774		)	(1,167		)
ADD BACK: INCREMENTAL LOAN LOSS PROVISION, NET OF TAX	0			0			488			0			488
ADD BACK: ACQUISITION AND MERGER COSTS, NET OF TAX	108			29			0			230			0
ADD BACK: CHARGE ON EARLY DEBT REPAYMENT, NET OF TAX	0			0			0			952			0
CORE EARNINGS	$	8,933		$	8,456		$	6,208		$	25,333		$	17,267

CORE EARNINGS PER SHARE- BASIC:
EARNINGS PER SHARE- BASIC, AS REPORTED	$	0.58		$	0.64		$	0.50		$	1.80		$	1.38
SUBTRACT: NET (GAIN) LOSS ON SECURITIES, NET OF TAX	0.01			(0.07		)	(0.07		)	(0.12		)	(0.09		)
ADD BACK: INCREMENTAL LOAN LOSS PROVISION, NET OF TAX	0.00			0.00			0.04			0.00			0.04
ADD BACK: ACQUISITION AND MERGER COSTS, NET OF TAX	0.01			0.00			0.00			0.02			0.00
ADD BACK: CHARGE ON EARLY DEBT REPAYMENT, NET OF TAX	0.00			0.00			0.00			0.07			0.00
CORE EARNINGS PER SHARE- BASIC	$	0.60		$	0.57		$	0.47		$	1.77		$	1.33

CORE EARNINGS PER SHARE- DILUTED:
EARNINGS PER SHARE- DILUTED, AS REPORTED	$	0.57		$	0.63		$	0.49		$	1.75		$	1.34
SUBTRACT: NET (GAIN) LOSS ON SECURITIES, NET OF TAX	0.01			(0.07		)	(0.07		)	(0.12		)	(0.09		)
ADD BACK: INCREMENTAL LOAN LOSS PROVISION, NET OF TAX	0.00			0.00			0.04			0.00			0.04
ADD BACK: ACQUISITION AND MERGER COSTS, NET OF TAX	0.01			0.00			0.00			0.02			0.00
ADD BACK: CHARGE ON EARLY DEBT REPAYMENT, NET OF TAX	0.00			0.00			0.00			0.06			0.00
CORE EARNINGS PER SHARE- DILUTED	$	0.59		$	0.56		$	0.46		$	1.71		$	1.29

WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC (1)	14,791,399			14,771,708			13,145,696			14,428,622			12,985,287
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED (1)	15,220,484			15,147,572			13,439,003			14,818,023			13,398,551

RETURN ON AVERAGE ASSETS, CORE OPERATING BASIS
RETURN ON AVERAGE ASSETS, AS REPORTED	0.83		%	0.98		%	0.82		%	0.89		%	0.77		%
SUBTRACT: NET (GAIN) LOSS ON SECURITIES, NET OF TAX	0.02		%	(0.11		)%	(0.12		)%	(0.06		)%	(0.05		)%
ADD BACK: INCREMENTAL LOAN LOSS PROVISION, NET OF TAX	0.00		%	0.00		%	0.06		%	0.00		%	0.02		%
ADD BACK: ACQUISITION AND MERGER COSTS, NET OF TAX	0.01		%	0.00		%	0.00		%	0.01		%	0.00		%
ADD BACK: CHARGE ON EARLY DEBT REPAYMENT, NET OF TAX	0.00		%	0.00		%	0.00		%	0.03		%	0.00		%
RETURN ON AVERAGE ASSETS, CORE OPERATING BASIS	0.86		%	0.87		%	0.76		%	0.87		%	0.74		%

RETURN ON AVERAGE SHAREHOLDERS’ EQUITY, CORE OPERATING BASIS
RETURN ON AVERAGE SHAREHOLDERS’ EQUITY, AS REPORTED	13.6		%	15.5		%	13.8		%	14.5		%	13.4		%
SUBTRACT: NET (GAIN) LOSS ON SECURITIES, NET OF TAX	0.3		%	(1.7		)%	(1.9		)%	(1.0		)%	(0.9		)%
ADD BACK: INCREMENTAL LOAN LOSS PROVISION, NET OF TAX	0.0		%	0.0		%	1.0		%	0.0		%	0.4		%
ADD BACK: ACQUISITION AND MERGER COSTS, NET OF TAX	0.2		%	0.0		%	0.0		%	0.2		%	0.0		%
ADD BACK: CHARGE ON EARLY DEBT REPAYMENT, NET OF TAX	0.0		%	0.0		%	0.0		%	0.5		%	0.0		%
RETURN ON AVERAGE SHAREHOLDERS’ EQUITY, CORE OPERATING BASIS	14.1		%	13.8		%	12.9		%	14.2		%	12.9		%

AVERAGE ASSETS	$	4,103,400		$	3,881,446		$	3,219,802		$	3,874,684		$	3,123,401
AVERAGE SHAREHOLDERS’ EQUITY	251,098			245,845			190,249			238,479			178,557

(1) Weighted average shares and per share amounts for prior periods have been restated to reflect the 10% stock dividend paid in May 2003.