Exhibit 99.2

STERLING FINANCIAL CORPORATION

SELECTED FINANCIAL DATA

(DOLLAR AMOUNTS IN THOUSANDS,

EXCEPT PER SHARE AMOUNTS, UNAUDITED)

	DECEMBER 31, 2003			SEPTEMBER 30, 2003			DECEMBER 31, 2002 (1)

ASSETS:
CASH AND CASH EQUIVALENTS	$	65,528		$	75,191		$	78,591
LOANS RECEIVABLE, NET	2,903,724			2,761,174			2,390,263
LOANS HELD FOR SALE	14,616			22,754			22,549
INVESTMENTS AND ASSET-BACKED SECURITIES (ABS)
AVAILABLE FOR SALE	1,070,955			1,010,084			826,692
INVESTMENTS AND ABS HELD TO MATURITY	2,229			2,821			3,476
OFFICE PROPERTIES AND EQUIPMENT, NET	54,620			52,385			47,745
REAL ESTATE OWNED, NET	4,226			3,108			3,953
GOODWILL, NET	45,075			45,075			43,977
OTHER INTANGIBLE ASSETS, NET	2,881			2,960			0
BANK OWNED LIFE INSURANCE (BOLI)	73,141			72,168			59,399
PREPAID EXPENSES AND OTHER ASSETS, NET	35,754			27,730			29,419

TOTAL ASSETS	$	4,272,749		$	4,075,450		$	3,506,064

LIABILITIES:
DEPOSITS	$	2,455,076		$	2,421,043		$	2,014,096
ADVANCES FROM FEDERAL HOME LOAN BANK OF SEATTLE	1,026,031			964,140			874,515
REPURCHASE AGREEMENTS AND FED FUNDS	363,137			259,107			249,769
OTHER BORROWINGS	135,583			136,782			127,682
ACCRUED EXPENSES & OTHER LIABILITIES	42,574			45,501			36,346
TOTAL LIABILITIES	4,022,401			3,826,573			3,302,408

SHAREHOLDERS’ EQUITY:
COMMON STOCK	14,864			14,812			11,959
ADDITIONAL PAID-IN CAPITAL	181,382			181,036			125,177
ACCUMULATED COMPREHENSIVE INCOME (LOSS):
UNREALIZED GAIN (LOSS) ON INVESTMENTS AND ABS (2)	(15,193		)	(7,278		)	3,439
RETAINED EARNINGS	69,295			60,307			63,081
TOTAL SHAREHOLDERS’ EQUITY	250,348			248,877			203,656

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	4,272,749		$	4,075,450		$	3,506,064

BOOK VALUE PER SHARE (3)	$	16.84		$	16.80		$	15.48

TANGIBLE BOOK VALUE PER SHARE (4)	$	13.62		$	13.56		$	12.14

SHARES OUTSTANDING AT END OF PERIOD	14,863,917			14,811,661			11,958,948

SHAREHOLDERS’ EQUITY TO TOTAL ASSETS	5.86		%	6.11		%	5.81		%

TANGIBLE EQUITY TO TOTAL ASSETS (5)	4.74		%	4.93		%	4.55		%

(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 December 31, 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									TWELVE MONTHS ENDED
	DEC 31, 2003			SEPT 30, 2003			DEC 31, 2002 (1)			DEC 31, 2003			DEC 31, 2002 (1)
INTEREST INCOME:
LOANS	$	43,517		$	43,179		$	40,938		$	169,411		$	159,278
ASSET-BACKED SECURITIES	11,449			10,558			9,155			41,193			33,539
INVESTMENTS AND CASH	929			959			1,244			4,123			4,496
TOTAL INTEREST INCOME	55,895			54,696			51,337			214,727			197,313

INTEREST EXPENSE:
DEPOSITS	8,996			9,322			9,607			36,831			43,632
BORROWINGS	12,918			13,046			14,003			52,976			53,333
TOTAL INTEREST EXPENSE	21,914			22,368			23,610			89,807			96,965

NET INTEREST INCOME	33,981			32,328			27,727			124,920			100,348

PROVISION FOR LOSSES ON LOANS	(2,850		)	(2,850		)	(4,277		)	(10,500		)	(11,867		)
NET INTEREST INCOME AFTER PROVISION	31,131			29,478			23,450			114,420			88,481

OTHER INCOME:
FEES AND SERVICE CHARGES	4,908			5,052			4,397			19,168			16,678
MORTGAGE BANKING OPERATIONS	1,584			2,185			2,319			8,482			5,982
LOAN SERVICING FEES (COSTS)	117			518			(329		)	566			536
NET GAIN (LOSS) ON SALES OF SECURITIES	965			(308		)	1,129			3,694			2,925
REAL ESTATE OWNED OPERATIONS	11			125			76			(73		)	(126		)
BOLI	973			979			847			3,742			3,280
CHARGE RELATED TO EARLY REPAYMENT OF DEBT	0			0			0			(1,464		)	0
OTHER NONINTEREST INCOME (EXPENSE)	(17		)	(155		)	0			(380		)	(195		)
TOTAL OTHER INCOME	8,541			8,396			8,439			33,735			29,080

OPERATING EXPENSES:
EMPLOYEE COMPENSATION AND BENEFITS	13,428			13,683			10,758			51,066			42,861
OCCUPANCY AND EQUIPMENT	3,882			3,641			3,214			14,687			12,534

AMORTIZATION OF OTHER INTANGIBLES	79			78			0			262			644
GOODWILL LITIGATION COSTS	50			236			310			600			1,100
ACQUISITION AND MERGER COSTS	437			166			0			792			0
OTHER	8,018			6,851			6,123			27,157			23,804
TOTAL OPERATING EXPENSES	25,894			24,655			20,405			94,564			80,943

INCOME FROM OPERATIONS BEFORE TAXES	13,778			13,219			11,484			53,591			36,618
INCOME TAX PROVISION	(4,790		)	(4,594		)	(3,843		)	(18,678		)	(11,031		)

NET INCOME	$	8,988		$	8,625		$	7,641		$	34,913		$	25,587

EARNINGS PER SHARE - BASIC (2)	$	0.61		$	0.58		$	0.58		$	2.40		$	1.96
EARNINGS PER SHARE - DILUTED (2)	$	0.59		$	0.57		$	0.57		$	2.34		$	1.91

CORE EARNINGS (3)	$	8,645		$	8,933		$	8,110		$	33,979		$	25,376
CORE EARNINGS PER SHARE - BASIC (3)	$	0.59		$	0.60		$	0.61		$	2.34		$	1.94
CORE EARNINGS PER SHARE - DILUTED (3)	$	0.57		$	0.59		$	0.61		$	2.27		$	1.89

WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC (2)	14,844,325			14,791,399			13,154,287			14,533,402			13,027,884
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED (2)	15,286,227			15,220,484			13,462,131			14,940,108			13,432,770

(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									TWELVE MONTHS ENDED
	DEC 31, 2003			SEPT 30, 2003			DEC 31, 2002 (1)			DEC 31, 2003			DEC 31, 2002 (1)

NET INTEREST SPREAD:
YIELD ON LOAN PORTFOLIO	6.01		%	6.10		%	6.87		%	6.23		%	7.08		%
YIELD ON INVESTMENTS AND CASH	3.94		%	3.87		%	5.33		%	4.26		%	4.81		%
YIELD ON ASSET-BACKED SECURITIES	4.61		%	4.29		%	4.81		%	4.51		%	5.24		%
YIELD ON INTEREST-EARNING ASSETS	5.62		%	5.59		%	6.34		%	5.75		%	6.63		%

COST OF DEPOSITS	1.46		%	1.53		%	1.91		%	1.58		%	2.23		%
COST OF BORROWINGS	3.59		%	3.74		%	4.64		%	3.95		%	5.28		%
COST OF LIABILITIES	2.24		%	2.33		%	2.93		%	2.45		%	3.27		%

NET INTEREST SPREAD	3.38		%	3.26		%	3.41		%	3.30		%	3.36		%

NET INTEREST MARGIN	3.41		%	3.31		%	3.42		%	3.35		%	3.37		%

AVERAGE INTEREST-EARNING ASSETS	$	3,949,301		$	3,880,679		$	3,212,857		$	3,731,192		$	2,975,587
AVERAGE INTEREST-BEARING LIABILITIES	3,873,380			3,806,143			3,196,551			3,666,546			2,969,725

PERFORMANCE RATIOS:
RETURN ON AVERAGE ASSETS	0.85		%	0.83		%	0.88		%	0.88		%	0.80		%
RETURN ON AVERAGE ASSETS, CORE OPERATING BASIS (2)	0.82		%	0.86		%	0.94		%	0.85		%	0.79		%
RETURN ON AVERAGE SHAREHOLDERS’ EQUITY	14.1		%	13.6		%	15.1		%	14.4		%	13.9		%
RETURN ON AVERAGE SHAREHOLDERS’ EQUITY, CORE OPERATING BASIS (2)	13.5		%	14.1		%	16.0		%	14.0		%	13.8		%
OPERATING EFFICIENCY	60.9		%	60.5		%	56.4		%	59.6		%	62.5		%
OPERATING EFFICIENCY, CORE OPERATING BASIS (2)	59.6		%	61.7		%	53.3		%	56.9		%	60.2		%
NONINTEREST EXPENSE TO AVERAGE ASSETS (ANNUALIZED)	2.45		%	2.38		%	2.36		%	2.39		%	2.53		%

CAPITAL ADEQUACY:
SHAREHOLDERS’ EQUITY RATIO	5.86		%	6.11		%	5.81		%	5.86		%	5.81		%
REGULATORY CAPITAL RATIOS (FOR STERLING SAVINGS BANK):
CORE CAPITAL RATIO.	7.4		%	7.6		%	7.6		%	7.4		%	7.6		%
TIER 1 RISK-BASED CAPITAL RATIO	9.9		%	10.1		%	10.0		%	9.9		%	10.0		%
TOTAL RISK-BASED CAPITAL RATIO	10.9		%	11.1		%	11.0		%	10.9		%	11.0		%

LOAN ORIGINATIONS BY PROPERTY TYPE:
RESIDENTIAL REAL ESTATE	$	78,568		$	146,908		$	147,289		$	504,169		$	350,973
MULTIFAMILY REAL ESTATE	17,827			23,693			45,024			71,962			77,761
COMMERCIAL REAL ESTATE	16,650			12,435			19,600			114,487			66,492
CONSTRUCTION	165,188			218,072			143,287			707,551			598,447
CONSUMER - DIRECT	48,438			69,127			40,002			211,505			146,575
CONSUMER - INDIRECT	19,102			24,081			13,988			73,046			64,333
BUSINESS BANKING	96,064			93,014			111,462			386,521			403,181
CORPORATE BANKING	90,048			16,055			28,667			204,733			121,348
TOTAL LOAN ORIGINATION VOLUME	$	531,885		$	603,385		$	549,319		$	2,273,974		$	1,829,110

NONBANKING SUBSIDIARY PRODUCTION:
SALES OF FINANCIAL PRODUCTS	$	10,043		$	9,905		$	8,279		$	36,954		$	31,930

(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.

	DEC 31, 2003			SEPT 30, 2003			DEC 31, 2002

LOANS BY COLLATERAL TYPE:
RESIDENTIAL REAL ESTATE	$	407,999		$	377,459		$	358,359
MULTIFAMILY REAL ESTATE	167,220			161,830			161,547
COMMERCIAL REAL ESTATE	463,191			478,386			458,712
CONSTRUCTION	552,965			549,641			480,919
CONSUMER - DIRECT	309,931			294,520			246,578
CONSUMER - INDIRECT	99,697			91,488			62,896
BUSINESS BANKING	717,369			681,586			546,819
CORPORATE BANKING	228,233			167,123			108,749
DEFERRED LOAN FEES, NET	(7,276		)	(7,118		)	(6,450		)
ALLOWANCE FOR LOSSES ON LOANS	(35,605		)	(33,741		)	(27,866		)
NET LOANS RECEIVABLE	$	2,903,724		$	2,761,174		$	2,390,263

ALLOWANCE FOR LOSSES ON LOANS:
BALANCE AT BEGINNING OF QUARTER	$	33,741		$	32,034		$	24,115
ALLOWANCE FOR LOAN LOSSES ACQUIRED	0			0			0
PROVISION FOR LOSSES ON LOANS	2,850			2,850			4,277
AMOUNTS WRITTEN OFF NET OF RECOVERIES AND OTHER	(986		)	(1,143		)	(526		)
BALANCE AT END OF QUARTER	$	35,605		$	33,741		$	27,866

NET CHARGE-OFFS TO AVERAGE NET LOANS (ANNUALIZED)	0.14		%	0.16		%	0.09		%
NET CHARGE-OFFS TO AVERAGE NET LOANS (YTD)	0.13		%	0.10		%	0.21		%

LOAN LOSS ALLOWANCE TO TOTAL LOANS	1.21		%	1.21		%	1.15		%
LOAN LOSS ALLOWANCE & DISCOUNTS TO LOANS	1.27		%	1.27		%	1.20		%

LOAN LOSS ALLOWANCE TO NON-PERFORMING LOANS (EXCLUDING LOANS CLASSIFIED AS LOSS)	216.6		%	153.8		%	174.3		%
NON-PERFORMING LOANS TO NET LOANS	0.60		%	0.81		%	0.71		%

ALLOWANCE FOR REAL ESTATE OWNED (REO):
BALANCE AT BEGINNING OF QUARTER	$	37		$	235		$	271
PROVISION FOR REO LOSSES	0			35			0
AMOUNTS WRITTEN OFF NET OF RECOVERIES AND OTHER	(34		)	(232		)	(32		)
BALANCE AT END OF QUARTER	$	3		$	38		$	239

REO LOSS ALLOWANCE TO TOTAL REO	0.07		%	1.21		%	5.70		%

NONPERFORMING ASSETS:
ACCRUING LOANS WHICH ARE PAST DUE 90 DAYS	$	183		$	0		$	0
NON-ACCRUAL LOANS	16,025			21,151			16,278
RESTRUCTURED LOANS	1,164			1,232			594
TOTAL NONPERFORMING LOANS	17,372			22,383			16,872
REO	4,226			3,108			3,953
TOTAL NONPERFORMING ASSETS (NPA)	$	21,598		$	25,491		$	20,825

NPA TO TOTAL ASSETS	0.51		%	0.63		%	0.59		%

NPA TO TOTAL ASSETS EXCLUDING SOURCE CAPITAL/EMPIRE NPA	0.35		%	0.43		%	0.50		%

LOAN AND REO LOSS ALLOWANCE TO NONPERFORMING ASSETS	164.8		%	132.3		%	133.4		%

LOAN DELINQUENCY RATIO (60 DAYS AND OVER)	0.90		%	0.87		%	0.82		%

CLASSIFIED ASSETS- STERLING SAVINGS BANK	$	74,652		$	59,397		$	79,095
CLASSIFIED ASSETS- SOURCE	4,298			4,811			5,604
CLASSIFIED ASSETS- EMPIRE	5,806			5,056			0
TOTAL CLASSIFIED ASSETS	$	84,756		$	69,264		$	84,699
CLASSIFIED ASSETS/TOTAL ASSETS	1.98		%	1.70		%	2.42		%

CLASSIFIED ASSETS/TOTAL ASSETS EXCLUDING SOURCE AND EMPIRE	1.75		%	1.46		%	2.26		%

EXHIBIT A- RECONCILIATION SCHEDULE

	THREE MONTHS ENDED									TWELVE MONTHS ENDED
	DEC 31, 2003			SEPT 30, 2003			DEC 31, 2002 (1)			DEC 31, 2003			DEC 31, 2002 (1)

CORE EARNINGS:
NET INCOME, AS REPORTED	$	8,988		$	8,625		$	7,641		$	34,913		$	25,587
SUBTRACT: NET (GAIN) LOSS ON SECURITIES, NET OF TAX	(627		)	200			(734		)	(2,401		)	(1,901		)
ADD BACK: INCREMENTAL LOAN LOSS PROVISION, NET OF TAX	0			0			1,203			0			1,690
ADD BACK: ACQUISITION AND MERGER COSTS, NET OF TAX	284			108			0			515			0
ADD BACK: CHARGE ON EARLY DEBT REPAYMENT, NET OF TAX	0			0			0			952			0
CORE EARNINGS	$	8,645		$	8,933		$	8,110		$	33,979		$	25,376

CORE EARNINGS PER SHARE- BASIC:
EARNINGS PER SHARE- BASIC, AS REPORTED	$	0.61		$	0.58		$	0.58		$	2.40		$	1.96
SUBTRACT: NET (GAIN) LOSS ON SECURITIES, NET OF TAX	(0.04		)	0.01			(0.06		)	(0.17		)	(0.15		)
ADD BACK: INCREMENTAL LOAN LOSS PROVISION, NET OF TAX	0.00			0.00			0.09			0.00			0.13
ADD BACK: ACQUISITION AND MERGER COSTS, NET OF TAX	0.02			0.01			0.00			0.04			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	$	0.59		$	0.60		$	0.61		$	2.34		$	1.94

CORE EARNINGS PER SHARE- DILUTED:
EARNINGS PER SHARE- DILUTED, AS REPORTED	$	0.59		$	0.57		$	0.57		$	2.34		$	1.91
SUBTRACT: NET (GAIN) LOSS ON SECURITIES, NET OF TAX	(0.04		)	0.01			(0.05		)	(0.16		)	(0.15		)
ADD BACK: INCREMENTAL LOAN LOSS PROVISION, NET OF TAX	0.00			0.00			0.09			0.00			0.13
ADD BACK: ACQUISITION AND MERGER COSTS, NET OF TAX	0.02			0.01			0.00			0.03			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	$	0.57		$	0.59		$	0.61		$	2.27		$	1.89

WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC (1)	14,844,325			14,791,399			13,154,287			14,533,402			13,027,884
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED (1)	15,286,227			15,220,484			13,462,131			14,940,108			13,432,770

RETURN ON AVERAGE ASSETS, CORE OPERATING BASIS
RETURN ON AVERAGE ASSETS, AS REPORTED	0.85		%	0.83		%	0.88		%	0.88		%	0.80		%
SUBTRACT: NET (GAIN) LOSS ON SECURITIES, NET OF TAX	(0.06		)%	0.02		%	(0.08		)%	(0.06		)%	(0.06		)%
ADD BACK: INCREMENTAL LOAN LOSS PROVISION, NET OF TAX	0.00		%	0.00		%	0.14		%	0.00		%	0.05		%
ADD BACK: ACQUISITION AND MERGER COSTS, NET OF TAX	0.03		%	0.01		%	0.00		%	0.01		%	0.00		%
ADD BACK: CHARGE ON EARLY DEBT REPAYMENT, NET OF TAX	0.00		%	0.00		%	0.00		%	0.02		%	0.00		%
RETURN ON AVERAGE ASSETS, CORE OPERATING BASIS	0.82		%	0.86		%	0.94		%	0.85		%	0.79		%

RETURN ON AVERAGE SHAREHOLDERS’ EQUITY, CORE OPERATING BASIS
RETURN ON AVERAGE SHAREHOLDERS’ EQUITY, AS REPORTED	14.1		%	13.6		%	15.1		%	14.4		%	13.9		%
SUBTRACT: NET (GAIN) LOSS ON SECURITIES, NET OF TAX	(1.0		)%	0.3		%	(1.5		)%	(1.0		)%	(1.0		)%
ADD BACK: INCREMENTAL LOAN LOSS PROVISION, NET OF TAX	0.0		%	0.0		%	2.4		%	0.0		%	0.9		%
ADD BACK: ACQUISITION AND MERGER COSTS, NET OF TAX	0.4		%	0.2		%	0.0		%	0.2		%	0.0		%
ADD BACK: CHARGE ON EARLY DEBT REPAYMENT, NET OF TAX	0.0		%	0.0		%	0.0		%	0.4		%	0.0		%
RETURN ON AVERAGE SHAREHOLDERS’ EQUITY, CORE OPERATING BASIS	13.5		%	14.1		%	16.0		%	14.0		%	13.8		%

AVERAGE ASSETS	$	4,193,886		$	4,103,400		$	3,435,937		$	3,954,764		$	3,201,929
AVERAGE SHAREHOLDERS’ EQUITY	253,317			251,098			200,799			242,219			184,163

OPERATING EFFICIENCY RATIO, CORE OPERATING BASIS:
OPERATING EFFICIENCY RATIO, AS REPORTED.	60.9		%	60.5		%	56.4		%	59.6		%	62.5		%
SUBTRACT: NET (GAIN) LOSS ON SECURITIES	(2.3		)%	0.8		%	(3.1		)%	(2.3		)%	(2.3		)%
ADD BACK: ACQUISITION AND MERGER COSTS	1.0		%	0.4		%	0.0		%	0.5		%	0.0		%
ADD BACK: CHARGE ON EARLY DEBT REPAYMENT	0.0		%	0.0		%	0.0		%	(0.9		)%	0.0		%
OPERATING EFFICIENCY RATIO, CORE OPERATING BASIS	59.6		%	61.7		%	53.3		%	56.9		%	60.2		%

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