EXHIBIT 12.1

STERLING FINANCIAL CORPORATION

COMPUTATION OF RETURN ON AVERAGE COMMON SHAREHOLDERS’ EQUITY

For the 3 and 12 Months Ended December 31, 2003

	Shareholders’ Equity		Number	QTD Weighted Average				Twelve Months Daily Weighted Average
	Total	Common	of Days	Total	Common			Total	Common
January 1, 2003	203,655,930	203,655,930	14					2,851,183,020	2,851,183,020
January 15, 2003	206,657,857	206,657,857	16					3,306,525,712	3,306,525,712
January 31, 2003	206,671,404	206,671,404	1					206,671,404	206,671,404
February 1, 2003	206,671,404	206,671,404	5					1,033,357,020	1,033,357,020
February 6, 2003	206,753,957	206,753,957	9					1,860,785,613	1,860,785,613
February 15, 2003	209,401,041	209,401,041	6					1,256,406,246	1,256,406,246
February 21, 2003	209,603,455	209,603,455	8					1,676,827,640	1,676,827,640
March 1, 2003	238,817,337	238,817,337	14					3,343,442,711	3,343,442,711
March 15, 2003	240,951,765	240,951,765	10					2,409,517,645	2,409,517,645
March 25, 2003	241,007,231	241,007,231	6					1,446,043,387	1,446,043,387
March 31, 2003	241,135,611	241,135,611	1					241,135,611	241,135,611
April 1, 2003	241,135,611	241,135,611	14					3,375,898,557	3,375,898,557
April 15, 2003	244,001,919	244,001,919	15					3,660,028,788	3,660,028,788
April 30, 2003	244,197,224	244,197,224	1					244,197,224	244,197,224
May 1, 2003	244,197,224	244,197,224	14					3,418,761,139	3,418,761,139
May 15, 2003	247,222,976	247,222,976	15					3,708,344,643	3,708,344,643
May 30, 2003	247,196,851	247,196,851	2					494,393,702	494,393,702
June 1, 2003	247,196,851	247,196,851	5					1,235,984,254	1,235,984,254
June 6, 2003	247,230,571	247,230,571	9					2,225,075,137	2,225,075,137
June 15, 2003	250,855,238	250,855,238	15					3,762,828,573	3,762,828,573
June 30, 2003	246,342,767	246,342,767	1					246,342,767	246,342,767
July 1, 2003	246,342,767	246,342,767	14					3,448,798,740	3,448,798,740
July 15, 2003	249,691,780	249,691,780	17					4,244,760,263	4,244,760,263
August 1, 2003	249,691,780	249,691,780	14					3,495,684,922	3,495,684,922
August 15, 2003	252,621,858	252,621,858	7					1,768,353,007	1,768,353,007
August 22, 2003	252,725,113	252,725,113	7					1,769,075,792	1,769,075,792
August 29,2003	252,822,523	252,822,523	3					758,467,570	758,467,570
September 1, 2003	252,822,523	252,822,523	14					3,539,515,324	3,539,515,324
September 15, 2003	255,168,850	255,168,850	15					3,827,532,753	3,827,532,753
September 30, 2003	248,877,198	248,877,198	1					248,877,198	248,877,198
October 1, 2003	248,877,198	248,877,198	14	3,484,280,774	3,484,280,774			3,484,280,774	3,484,280,774
October 15, 2003	251,513,024	251,513,024	17	4,275,721,411	4,275,721,411			4,275,721,411	4,275,721,411
November 1, 2003	251,513,024	251,513,024	2	503,026,048	503,026,048			503,026,048	503,026,048
November 3, 2003	251,765,487	251,765,487	1	251,765,487	251,765,487			251,765,487	251,765,487
November 4, 2003	251,898,227	251,898,227	11	2,770,880,502	2,770,880,502			2,770,880,502	2,770,880,502
November 15, 2003	254,436,553	254,436,553	16	4,070,984,855	4,070,984,855			4,070,984,855	4,070,984,855
December 1, 2003	254,436,553	254,436,553	4	1,017,746,214	1,017,746,214			1,017,746,214	1,017,746,214
December 5, 2003	254,444,048	254,444,048	9	2,289,996,436	2,289,996,436			2,289,996,436	2,289,996,436
December 15, 2003	258,257,230	258,257,230	17	4,390,372,918	4,390,372,918			4,390,372,918	4,390,372,918
December 31, 2003	250,348,095	250,348,095	1	250,348,095	250,348,095			250,348,095	250,348,095
Cumulative Total			365	23,305,122,741	23,305,122,741			88,409,939,104	88,409,939,104
Divide by Number of Days				92	92			365	365
Average				253,316,552	253,316,552			242,219,011	242,219,011
Net Income Available to Common Shares					$	8,987,332			$	34,912,817
Divide by Average Common Shareholders’ Equity					253,316,552				242,219,011
Return on Average Common Shareholders’ Equity (Annualized)					14.08		%		14.41		%

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