EXHIBIT 12.1

STERLING FINANCIAL CORPORATION
COMPUTATION OF RETURN ON AVERAGE SHAREHOLDERS’ EQUITY
For the Year Ended December 31, 2004

Date	Shareholders’ Equity	Number of Days	YTD Weighted Average
01/01/2004	250,348,095	1	250,348,095
01/02/2004	395,515,095	13	5,141,696,235
01/15/2004	400,517,942	5	2,002,589,710
01/20/2004	400,509,992	12	4,806,119,910
02/01/2004	400,509,992	2	801,019,985
02/03/2004	401,716,975	12	4,820,603,706
02/15/2004	404,908,181	2	809,816,363
02/17/2004	404,925,740	3	1,214,777,221
02/20/2004	405,085,658	4	1,620,342,634
02/24/2004	405,349,983	1	405,349,983
02/25/2004	405,357,653	5	2,026,788,267
03/01/2004	405,391,779	2	810,783,558
03/03/2004	405,390,641	1	405,390,641
03/04/2004	405,502,456	4	1,622,009,826
03/08/2004	405,582,628	2	811,165,257
03/10/2004	405,733,598	1	405,733,598
03/11/2004	405,740,238	1	405,740,238
03/12/2004	405,843,275	3	1,217,529,826
03/15/2004	409,701,279	2	819,402,559
03/17/2004	409,930,255	5	2,049,651,277
03/22/2004	410,005,740	4	1,640,022,962
03/26/2004	410,081,225	3	1,230,243,676
03/29/2004	410,149,405	1	410,149,405
03/30/2004	410,066,323	1	410,066,323
03/31/2004	430,295,183	1	430,295,183
04/01/2004	430,170,680	12	5,162,048,158
04/13/2004	430,306,768	2	860,613,536
04/15/2004	434,453,072	12	5,213,436,862
04/27/2004	434,512,941	4	1,738,051,763
05/01/2004	434,512,941	5	2,172,564,704
05/06/2004	434,745,872	1	434,745,872
05/07/2004	434,728,178	8	3,477,825,428
05/15/2004	438,693,779	9	3,948,244,015
05/24/2004	438,702,234	3	1,316,106,703
05/27/2004	438,647,350	5	2,193,236,752
06/01/2004	438,693,450	1	438,693,450
06/02/2004	438,711,870	6	2,632,271,223
06/08/2004	439,003,593	1	439,003,593
06/09/2004	439,029,105	6	2,634,174,631
06/15/2004	444,407,385	15	6,666,110,778
06/30/2004	408,221,552	1	408,221,552
07/01/2004	408,239,972	14	5,715,359,610
07/15/2004	412,369,601	7	2,886,587,208
07/22/2004	412,407,485	6	2,474,444,911
07/28/2004	412,422,221	2	824,844,442
07/30/2004	412,614,617	2	825,229,234

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Date	Shareholders’ Equity	Number of Days	YTD Weighted Average
08/01/2004	412,614,617	1	412,614,617
08/02/2004	412,633,037	3	1,237,899,111
08/05/2004	412,639,627	6	2,475,837,763
08/11/2004	412,782,216	4	1,651,128,866
08/15/2004	417,814,119	1	417,814,119
08/16/2004	417,834,427	1	417,834,427
08/17/2004	417,837,636	1	417,837,636
08/18/2004	418,021,268	1	418,021,268
08/19/2004	418,067,886	1	418,067,886
08/20/2004	418,067,900	7	2,926,475,297
08/27/2004	418,151,300	3	1,254,453,899
08/30/2004	418,228,049	2	836,456,097
09/01/2004	418,343,174	2	836,686,347
09/03/2004	418,422,994	4	1,673,691,974
09/07/2004	418,453,694	3	1,255,361,081
09/10/2004	418,468,964	3	1,255,406,891
09/13/2004	418,545,721	1	418,545,721
09/14/2004	419,178,712	1	419,178,712
09/15/2004	425,376,024	15	6,380,640,363
09/30/2004	447,237,138	1	447,237,138
10/01/2004	447,255,558	3	1,341,766,675
10/04/2004	447,316,973	1	447,316,973
10/05/2004	447,393,723	10	4,473,937,235
10/15/2004	452,292,554	17	7,688,973,426
11/01/2004	452,387,724	1	452,387,724
11/02/2004	452,450,905	2	904,901,810
11/04/2004	452,457,495	6	2,714,744,970
11/10/2004	452,544,107	5	2,262,720,533
11/15/2004	457,169,147	2	914,338,293
11/17/2004	457,169,217	2	914,338,433
11/19/2004	457,526,707	10	4,575,267,066
11/29/2004	457,604,976	1	457,604,976
11/30/2004	457,839,963	1	457,839,963
12/01/2004	458,789,963	1	458,789,963
12/02/2004	458,810,243	4	1,835,240,973
12/06/2004	458,828,663	7	3,211,800,643
12/13/2004	458,838,783	2	917,677,567
12/15/2004	464,876,607	1	464,876,607
12/16/2004	465,230,925	4	1,860,923,701
12/20/2004	465,234,220	8	3,721,873,762
12/28/2004	469,832,728	3	1,409,498,185
12/31/2004	469,843,466	1	469,843,466
Cumulative total		366	156,557,303,030
Divide by number of days			366
Average shareholders’ equity			427,752,194
Net income available to shares outstanding			$	56,305,295
Return on average shareholders’ equity (annualized)			13.16		%

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