Exhibit 99.2

STERLING FINANCIAL CORPORATION

SELECTED FINANCIAL DATA

(DOLLAR AMOUNTS IN THOUSANDS,

EXCEPT PER SHARE AMOUNTS, UNAUDITED)

	DECEMBER 31, 2005			SEPTEMBER 30, 2005			DECEMBER 31, 2004

ASSETS:
CASH AND CASH EQUIVALENTS	$	132,169		$	126,812		$	94,468
LOANS RECEIVABLE, NET	4,885,916			4,287,684			4,251,877
LOANS HELD FOR SALE	7,894			26,091			14,224
INVESTMENTS AND MORTGAGE-BACKED SECURITIES (MBS) AVAILABLE FOR SALE	2,076,615			1,915,287			2,157,136
INVESTMENTS AND MBS HELD TO MATURITY	51,924			49,716			47,449
OFFICE PROPERTIES AND EQUIPMENT, NET	82,432			81,007			78,402
REAL ESTATE OWNED, NET	779			2,454			1,865
GOODWILL, NET	112,707			112,391			112,398
OTHER INTANGIBLE ASSETS, NET	17,625			18,180			19,848
BANK OWNED LIFE INSURANCE (BOLI)	107,649			107,122			93,790
PREPAID EXPENSES AND OTHER ASSETS, NET	83,218			69,304			70,767

TOTAL ASSETS	$	7,558,928		$	6,796,048		$	6,942,224

LIABILITIES:
DEPOSITS	$	4,806,301		$	4,390,757		$	3,863,296
ADVANCES FROM FEDERAL HOME LOAN BANK OF SEATTLE	1,443,462			1,266,874			1,635,933
REPURCHASE AGREEMENTS AND FED FUNDS	611,676			461,594			780,012
OTHER BORROWINGS	110,688			110,683			131,822
ACCRUED EXPENSES AND OTHER LIABILITIES	80,116			66,457			61,317
TOTAL LIABILITIES	7,052,243			6,296,365			6,472,380

SHAREHOLDERS’ EQUITY:
COMMON STOCK	34,856			34,725			22,936
ADDITIONAL PAID-IN CAPITAL	385,353			384,409			393,245
ACCUMULATED COMPREHENSIVE INCOME (LOSS):
UNREALIZED GAIN (LOSS) ON INVESTMENTS AND MBS (1)	(34,219		)	(26,635		)	(9,470		)
RETAINED EARNINGS	120,695			107,184			63,133
TOTAL SHAREHOLDERS’ EQUITY	506,685			499,683			469,844

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	7,558,928		$	6,796,048		$	6,942,224

BOOK VALUE PER SHARE (2)	$	14.54		$	14.39		$	13.65

TANGIBLE BOOK VALUE PER SHARE (2)(3)	$	10.80		$	10.63		$	9.81

SHARES OUTSTANDING AT END OF PERIOD	34,855,549			34,725,400			22,936,154

SHAREHOLDERS’ EQUITY TO TOTAL ASSETS	6.70		%	7.35		%	6.77		%

TANGIBLE SHAREHOLDERS’ EQUITY TO TANGIBLE ASSETS (4)	5.07		%	5.54		%	4.96		%

(1) Net of deferred income taxes.

(2) Amounts as of December 31, 2004 have been restated to reflect the 3 for 2 stock split that was effected on August 31, 2005.

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

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

	THREE MONTHS ENDED									TWELVE MONTHS ENDED
	DEC 31, 2005			SEPT 30, 2005			DEC 31, 2004			DEC 31, 2005			DEC 31, 2004
INTEREST INCOME:
LOANS	$	82,269		$	73,375		$	63,724		$	296,306		$	229,448
MORTGAGE-BACKED SECURITIES	22,985			20,757			23,024			88,682			85,009
INVESTMENTS AND CASH	661			642			756			2,823			5,304
TOTAL INTEREST INCOME	105,915			94,774			87,504			387,811			319,761

INTEREST EXPENSE:
DEPOSITS	28,735			23,827			15,250			91,990			53,483
BORROWINGS	20,365			17,859			20,052			79,286			69,462
TOTAL INTEREST EXPENSE	49,100			41,686			35,302			171,276			122,945

NET INTEREST INCOME	56,815			53,088			52,202			216,535			196,816

PROVISION FOR LOSSES ON LOANS	(4,650		)	(3,400		)	(3,300		)	(15,200		)	(12,150		)
NET INTEREST INCOME AFTER PROVISION	52,165			49,688			48,902			201,335			184,666

NON-INTEREST INCOME:
FEES AND SERVICE CHARGES	9,834			9,260			7,856			34,702			32,692
MORTGAGE BANKING OPERATIONS	3,452			2,969			1,715			17,899			6,155
LOAN SERVICING FEES	104			90			126			434			561
NET GAIN (LOSS) ON SALES OF SECURITIES	0			0			0			(57		)	4,571
REAL ESTATE OWNED OPERATIONS	289			(23		)	(42		)	477			(162		)
BOLI	2,583			1,164			998			5,914			4,340
CHARGE RELATED TO EARLY REPAYMENT OF DEBT	0			0			(238		)	645			(238		)
OTHER NONINTEREST INCOME (EXPENSE)	(43		)	(154		)	10			(445		)	(120		)
TOTAL NON-INTEREST INCOME	16,219			13,306			10,425			59,569			47,799

NON-INTEREST EXPENSES:
EMPLOYEE COMPENSATION AND BENEFITS	25,742			23,274			20,007			93,367			77,617
OCCUPANCY AND EQUIPMENT	7,170			6,578			6,003			26,411			23,051
AMORTIZATION OF CORE DEPOSIT INTANGIBLES	555			556			555			2,222			2,222
MERGER AND ACQUISITION COSTS	0			0			0			0			4,835
OTHER	12,966			12,191			10,428			48,281			40,645
TOTAL NON-INTEREST EXPENSES	46,433			42,599			36,993			170,281			148,370

INCOME BEFORE INCOME TAXES	21,951			20,395			22,334			90,623			84,095
INCOME TAX PROVISION	(6,521		)	(6,505		)	(6,806		)	(29,404		)	(27,790		)

NET INCOME	$	15,430		$	13,890		$	15,528		$	61,219		$	56,305

EARNINGS PER SHARE - BASIC (1)	$	0.44		$	0.40		$	0.45		$	1.77		$	1.66
EARNINGS PER SHARE - DILUTED (1)	$	0.44		$	0.40		$	0.44		$	1.75		$	1.62

CORE EARNINGS (2)	$	15,430		$	13,890		$	15,683		$	60,849		$	56,632
CORE EARNINGS PER SHARE - BASIC (2)	$	0.44		$	0.40		$	0.46		$	1.76		$	1.67
CORE EARNINGS PER SHARE - DILUTED (2)	$	0.44		$	0.40		$	0.45		$	1.74		$	1.63

WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC (1)	34,789,284			34,660,107			34,290,222			34,633,952			33,931,509
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED (1)	35,121,020			35,097,474			34,948,536			35,035,029			34,708,794

(1) Weighted average shares and per share amounts for the applicable prior periods have been restated to reflect the 3 for 2 stock split that was effected on August 31, 2005.

(2) Core earnings per share excludes net securities gains (losses), merger and acquisition costs and gains (losses) 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,			SEPT 30,			DEC 31,			DEC 31,			DEC 31,
	2005			2005			2004			2005			2004
NET INTEREST SPREAD:
YIELD ON LOAN PORTFOLIO:
MORTGAGE LOAN PORTFOLIO	6.98		%	6.66		%	6.10		%	6.78		%	6.09		%
COMMERCIAL AND CONSUMER LOAN PORTFOLIO	7.10		%	6.87		%	5.96		%	6.42		%	5.80		%
TOTAL YIELD ON LOAN PORTFOLIO	7.04		%	6.77		%	6.04		%	6.61		%	5.96		%
YIELD ON MORTGAGE-BACKED SECURITIES	4.60		%	4.43		%	4.52		%	4.55		%	4.51		%
YIELD ON INVESTMENTS AND CASH	1.53		%	1.50		%	1.77		%	1.67		%	2.78		%
YIELD ON INTEREST-EARNING ASSETS	6.19		%	5.94		%	5.45		%	5.88		%	5.39		%

COST OF DEPOSITS:
INTEREST & NONINTEREST-BEARING TRANSACTION ACCOUNTS	0.13		%	0.12		%	0.13		%	0.13		%	0.09		%
SAVINGS (AND MONEY MARKET DEMAND) ACCOUNTS	2.33		%	2.05		%	1.13		%	1.92		%	1.04		%
TIME DEPOSITS	3.77		%	3.41		%	2.73		%	3.35		%	2.57		%
TOTAL COST OF DEPOSITS	2.49		%	2.20		%	1.58		%	2.16		%	1.47		%
COST OF BORROWINGS	3.93		%	3.76		%	3.25		%	3.62		%	3.16		%
COST OF INTEREST-BEARING LIABILITIES	2.93		%	2.67		%	2.23		%	2.65		%	2.10		%

NET INTEREST SPREAD	3.26		%	3.27		%	3.22		%	3.23		%	3.29		%

NET INTEREST MARGIN	3.32		%	3.33		%	3.25		%	3.28		%	3.32		%

PERFORMANCE RATIOS:
RETURN ON AVERAGE ASSETS	0.85		%	0.81		%	0.91		%	0.87		%	0.88		%
RETURN ON AVERAGE ASSETS, CORE OPERATING BASIS (1)	0.85		%	0.81		%	0.91		%	0.86		%	0.89		%
RETURN ON AVERAGE SHAREHOLDERS’ EQUITY	12.1		%	10.8		%	13.6		%	12.4		%	13.2		%
RETURN ON AVERAGE SHAREHOLDERS’ EQUITY, CORE OPERATING BASIS (1)	12.1		%	10.8		%	13.7		%	12.3		%	13.2		%
RETURN ON AVERAGE TANGIBLE EQUITY (2)	16.3		%	14.6		%	19.0		%	16.9		%	19.8		%
OPERATING EFFICIENCY	63.6		%	64.2		%	59.1		%	61.7		%	60.7		%
OPERATING EFFICIENCY, CORE OPERATING BASIS (1)	63.6		%	64.2		%	58.7		%	61.9		%	60.5		%
NONINTEREST EXPENSE TO AVERAGE ASSETS (ANNUALIZED)	2.55		%	2.49		%	2.16		%	2.42		%	2.33		%

CAPITAL ADEQUACY:
SHAREHOLDERS’ EQUITY RATIO	6.7		%	7.4		%	6.8		%	6.7		%	6.8		%
REGULATORY CAPITAL RATIOS (STERLING FINANCIAL CORPORATION):
CORE CAPITAL RATIO (3)	6.7		%	7.7		%	N/A			6.7		%	N/A
TIER 1 RISK-BASED CAPITAL RATIO (3)	9.5		%	10.6		%	N/A			9.5		%	N/A
TOTAL RISK-BASED CAPITAL RATIO (3)	10.5		%	11.7		%	N/A			10.5		%	N/A
REGULATORY CAPITAL RATIOS (STERLING SAVINGS BANK):
CORE CAPITAL RATIO	6.5		%	6.7		%	6.6		%	6.5		%	6.6		%
TIER 1 RISK-BASED CAPITAL RATIO	9.2		%	10.7		%	9.7		%	9.2		%	9.7		%
TOTAL RISK-BASED CAPITAL RATIO	10.2		%	11.9		%	10.7		%	10.2		%	10.7		%

LOAN ORIGINATIONS BY PROPERTY TYPE:
RESIDENTIAL REAL ESTATE	$	82,572		$	115,870		$	132,293		$	461,414		$	400,391
MULTIFAMILY REAL ESTATE	44,304			0			4,390			57,571			43,395
COMMERCIAL REAL ESTATE	97,576			51,065			65,805			218,396			241,754
CONSTRUCTION	588,583			443,521			334,617			1,801,543			1,025,517
CONSUMER - DIRECT	83,080			86,216			56,373			353,840			332,076
CONSUMER - INDIRECT	22,483			30,825			19,081			90,096			56,403
BUSINESS BANKING	167,433			155,831			107,788			547,540			465,827
CORPORATE BANKING	109,364			72,176			72,795			351,228			352,767

TOTAL LOAN ORIGINATION VOLUME	$	1,195,395		$	955,504		$	793,142		$	3,881,628		$	2,918,130

(1) Core earnings per share excludes net securities gains (losses), merger and acquisition costs 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.

(2) Average tangible equity is average shareholders’ equity less average net goodwill and other intangible assets.

(3) Sterling Financial Corporation did not have regulatory capital ratio requirements prior to its conversion to a bank holding company in July of 2005.

STERLING FINANCIAL CORPORATION

SELECTED FINANCIAL DATA

(DOLLAR AMOUNTS IN THOUSANDS, UNAUDITED)

	DEC 31,			SEPT 30,			DEC 31,
	2005			2005			2004

LOANS BY COLLATERAL TYPE:
RESIDENTIAL REAL ESTATE	$	488,633		$	493,752		$	794,632
MULTIFAMILY REAL ESTATE	332,211			219,224			184,754
COMMERCIAL REAL ESTATE	792,219			580,567			699,879
CONSTRUCTION	1,021,502			905,381			652,895
CONSUMER - DIRECT	618,528			598,956			543,895
CONSUMER - INDIRECT	166,143			141,475			120,894
BUSINESS BANKING	1,079,939			1,001,691			932,146
CORPORATE BANKING	451,140			409,251			379,051
DEFERRED LOAN FEES, NET	(8,916		)	(8,942		)	(6,907		)
ALLOWANCE FOR LOSSES ON LOANS	(55,483		)	(53,671		)	(49,362		)

NET LOANS RECEIVABLE	$	4,885,916		$	4,287,684		$	4,251,877

ALLOWANCE FOR LOSSES ON LOANS:
BALANCE AT BEGINNING OF QUARTER	$	53,671		$	54,593		$	47,290
PROVISION FOR LOSSES ON LOANS	4,650			3,400			3,300
AMOUNTS WRITTEN OFF NET OF RECOVERIES AND OTHER	(2,838		)	(4,322		)	(1,228		)

BALANCE AT END OF QUARTER	$	55,483		$	53,671		$	49,362

NET CHARGE-OFFS TO AVERAGE NET LOANS (ANNUALIZED)	0.24		%	0.40		%	0.12		%
NET CHARGE-OFFS TO AVERAGE NET LOANS (YTD)	0.20		%	0.14		%	0.13		%

LOAN LOSS ALLOWANCE TO TOTAL LOANS	1.12		%	1.24		%	1.15		%

LOAN LOSS ALLOWANCE TO NONPERFORMING LOANS (EXCLUDING LOANS CLASSIFIED AS LOSS)	975.9		%	953.1		%	538.3		%

NONPERFORMING LOANS TO NET LOANS	0.16		%	0.21		%	0.28		%

NONPERFORMING ASSETS:
ACCRUING LOANS WHICH ARE PAST DUE 90 DAYS	$	0		$	0		$	0
NONACCRUAL LOANS	6,542			7,888			10,738
RESTRUCTURED LOANS	1,081			1,226			1,305
TOTAL NONPERFORMING LOANS	7,623			9,114			12,043
REO	779			2,454			1,865

TOTAL NONPERFORMING ASSETS (NPA)	$	8,402		$	11,568		$	13,908

NPA TO TOTAL ASSETS	0.11		%	0.17		%	0.20		%

LOAN DELINQUENCY RATIO (60 DAYS AND OVER)	0.18		%	0.28		%	0.32		%

CLASSIFIED ASSETS	$	59,611		$	63,537		$	68,259

CLASSIFIED ASSETS/TOTAL ASSETS	0.79		%	0.93		%	0.98		%

STERLING FINANCIAL CORPORATION

SELECTED FINANCIAL DATA

(DOLLAR AMOUNTS IN THOUSANDS,

EXCEPT AS INDICATED, UNAUDITED)

	THREE MONTHS ENDED						TWELVE MONTHS ENDED
	DEC 31,		SEPT 30,		DEC 31,		DEC 31,		DEC 31,
	2005		2005		2004		2005		2004
AVERAGE BALANCE SHEET DATA:
AVERAGE LOANS:
MORTGAGE LOANS	$	2,410,115	$	2,164,792	$	2,265,574	$	2,368,974	$	2,036,742
COMMERCIAL AND CONSUMER LOAN PORTFOLIO	2,228,997		2,135,668		1,931,967		2,113,038		1,815,505
TOTAL AVERAGE LOANS	4,639,112		4,300,460		4,197,541		4,482,012		3,852,247
AVERAGE MORTGAGE-BACKED SECURITIES	1,981,771		1,858,353		2,024,775		1,948,435		1,885,239
AVERAGE INVESTMENTS AND CASH	170,913		169,716		169,524		168,853		190,934

AVERAGE INTEREST-EARNING ASSETS	$	6,791,796	$	6,328,529	$	6,391,840	$	6,599,300	$	5,928,420

AVERAGE DEPOSITS:
INTEREST AND NON INTEREST-BEARING TRANSACTION ACCOUNTS	$	1,119,421	$	1,104,013	$	1,004,394	$	1,067,522	$	946,091
SAVINGS (AND MONEY MARKET DEMAND) ACCOUNTS	1,251,887		1,160,121		1,120,366		1,158,270		1,092,612
TIME DEPOSITS	2,210,650		2,039,046		1,708,824		2,041,122		1,608,599
TOTAL AVERAGE DEPOSITS	4,581,958		4,303,180		3,833,584		4,266,914		3,647,302
AVERAGE BORROWINGS	2,056,837		1,885,913		2,450,715		2,192,934		2,200,229

AVERAGE INTEREST-BEARING LIABILITIES	$	6,638,795	$	6,189,093	$	6,284,299	$	6,459,848	$	5,847,531

AVERAGE ASSETS	$	7,231,051	$	6,785,740	$	6,825,567	$	7,047,055	$	6,376,417

AVERAGE SHAREHOLDERS’ EQUITY	$	507,016	$	509,256	$	456,051	$	493,215	$	427,752

AVERAGE TANGIBLE EQUITY (1)	$	376,640	$	378,326	$	324,310	$	362,004	$	283,868

DAYS IN YEAR	365		365		366		365		366
DAYS IN PERIOD	92		92		92		365		366

DEPOSITS DETAIL:
INTEREST-BEARING TRANSACTION ACCOUNTS	$	432,936	$	439,838	$	413,217	$	432,936	$	413,217
NONINTEREST-BEARING TRANSACTION ACCOUNTS	673,934		717,026		574,186		673,934		574,186
SAVINGS AND MONEY MARKET DEMAND ACCOUNTS	1,312,033		1,198,489		1,104,871		1,312,033		1,104,871
TIME DEPOSITS	2,387,398		2,035,404		1,771,022		2,387,398		1,771,022

TOTAL DEPOSITS	$	4,806,301	$	4,390,757	$	3,863,296	$	4,806,301	$	3,863,296

NUMBER OF TRANSACTION ACCOUNTS:
INTEREST-BEARING TRANSACTION ACCOUNTS	46,362		47,157		48,579		46,362		48,579
NONINTEREST-BEARING TRANSACTION ACCOUNTS	107,245		105,208		99,125		107,245		99,125

TOTAL TRANSACTION ACCOUNTS	153,607		152,365		147,704		153,607		147,704

FULL-TIME EQUIVALENT EMPLOYEES AT END OF PERIOD	1,789		1,770		1,624		1,789		1,624

NONBANKING SUBSIDIARY PRODUCTION:
SALES OF FINANCIAL PRODUCTS	$	19,309	$	23,332	$	19,658	$	97,739	$	76,341

(1) Average tangible equity is average shareholders’ equity less average net goodwill and other intangible assets.

STERLING FINANCIAL CORPORATION

SELECTED FINANCIAL DATA

(DOLLAR AMOUNTS IN THOUSANDS,

EXCEPT PER SHARE AMOUNTS, UNAUDITED)

EXHIBIT A- RECONCILIATION SCHEDULE

	AS OF OR FOR THE THREE MONTHS ENDED									AS OF OR FOR THE TWELVE MONTHS ENDED
	DEC 31,			SEPT 30,			DEC 31,			DEC 31,			DEC 31,
	2005			2005			2004			2005			2004
CORE EARNINGS: (2)
NET INCOME, AS REPORTED	$	15,430		$	13,890		$	15,528		$	61,219		$	56,305
SUBTRACT: NET (GAIN) LOSS ON SECURITIES, NET OF TAX	0			0			0			36			(2,971		)
ADD BACK: MERGER AND ACQUISITION COSTS, NET OF TAX	0			0			0			0			3,143
ADD BACK: CHARGE ON EARLY DEBT REPAYMENT, NET OF TAX	0			0			155			(406		)	155

CORE EARNINGS	$	15,430		$	13,890		$	15,683		$	60,849		$	56,632

CORE EARNINGS PER SHARE - BASIC: (2)
EARNINGS PER SHARE - BASIC, AS REPORTED	$	0.44		$	0.40		$	0.45		$	1.77		$	1.66
SUBTRACT: NET (GAIN) LOSS ON SECURITIES, NET OF TAX	0.00			0.00			0.00			0.00			(0.09		)
ADD BACK: MERGER AND ACQUISITION COSTS, NET OF TAX	0.00			0.00			0.00			0.00			0.09
ADD BACK: CHARGE ON EARLY DEBT REPAYMENT, NET OF TAX	0.00			0.00			0.01			(0.01		)	0.01

CORE EARNINGS PER SHARE - BASIC	$	0.44		$	0.40		$	0.46		$	1.76		$	1.67

CORE EARNINGS PER SHARE - DILUTED: (2)
EARNINGS PER SHARE - DILUTED, AS REPORTED	$	0.44		$	0.40		$	0.44		$	1.75		$	1.62
SUBTRACT: NET (GAIN) LOSS ON SECURITIES, NET OF TAX	0.00			0.00			0.00			0.00			(0.09		)
ADD BACK: MERGER AND ACQUISITION COSTS, NET OF TAX	0.00			0.00			0.00			0.00			0.09
ADD BACK: CHARGE ON EARLY DEBT REPAYMENT, NET OF TAX	0.00			0.00			0.01			(0.01		)	0.01

CORE EARNINGS PER SHARE - DILUTED	$	0.44		$	0.40		$	0.45		$	1.74		$	1.63

WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC (1)	34,789,284			34,660,107			34,290,222			34,633,952			33,931,509
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED (1)	35,121,020			35,097,474			34,948,536			35,035,029			34,708,794
COMMON SHARES OUTSTANDING	34,855,549			34,725,400			22,936,154			34,855,549			22,936,154

RETURN ON AVERAGE ASSETS, CORE OPERATING BASIS: (2)
RETURN ON AVERAGE ASSETS, AS REPORTED	0.85		%	0.81		%	0.91		%	0.87		%	0.88		%
SUBTRACT: NET (GAIN) LOSS ON SECURITIES, NET OF TAX	0.00		%	0.00		%	0.00		%	0.00		%	(0.05		)%
ADD BACK: MERGER AND ACQUISITION COSTS, NET OF TAX	0.00		%	0.00		%	0.00		%	0.00		%	0.05		%
ADD BACK: CHARGE ON EARLY DEBT REPAYMENT, NET OF TAX	0.00		%	0.00		%	0.00		%	(0.01		)%	0.01		%

RETURN ON AVERAGE ASSETS, CORE OPERATING BASIS	0.85		%	0.81		%	0.91		%	0.86		%	0.89		%

RETURN ON AVERAGE SHAREHOLDERS’ EQUITY, CORE OPERATING BASIS: (2)
RETURN ON AVERAGE SHAREHOLDERS’ EQUITY, AS REPORTED	12.1		%	10.8		%	13.6		%	12.4		%	13.2		%
SUBTRACT: NET (GAIN) LOSS ON SECURITIES, NET OF TAX	0.0		%	0.0		%	0.0		%	0.0		%	(0.7		)%
ADD BACK: MERGER AND ACQUISITION COSTS, NET OF TAX	0.0		%	0.0		%	0.0		%	0.0		%	0.7		%
ADD BACK: CHARGE ON EARLY DEBT REPAYMENT, NET OF TAX	0.0		%	0.0		%	0.1		%	(0.1		)%	0.0		%

RETURN ON AVERAGE SHAREHOLDERS’ EQUITY, CORE OPERATING BASIS	12.1		%	10.8		%	13.7		%	12.3		%	13.2		%

AVERAGE ASSETS	$	7,231,051		$	6,785,740		$	6,825,567		$	7,047,055		$	6,376,417
AVERAGE SHAREHOLDERS’ EQUITY	$	507,016		$	509,256		$	456,051		$	493,215		$	427,752

OPERATING EFFICIENCY RATIO, CORE OPERATING BASIS: (2)
OPERATING EFFICIENCY RATIO, AS REPORTED	63.6		%	64.2		%	59.1		%	61.7		%	60.7		%
ADD BACK: NET (GAIN) LOSS ON SECURITIES	0.0		%	0.0		%	0.0		%	0.0		%	1.9		%
SUBTRACT: MERGER AND ACQUISITION COSTS	0.0		%	0.0		%	0.0		%	0.0		%	(2.0		)%
SUBTRACT: CHARGE ON EARLY DEBT REPAYMENT	0.0		%	0.0		%	(0.4		)%	0.2		%	(0.1		)%

OPERATING EFFICIENCY RATIO, CORE OPERATING BASIS	63.6		%	64.2		%	58.7		%	61.9		%	60.5		%

ADJUSTED SHAREHOLDERS’ EQUITY:
SHAREHOLDERS’ EQUITY, AS REPORTED	$	506,685		$	499,683		$	469,844		$	506,685		$	469,844
ADD (SUBTRACT) UNREALIZED LOSS (GAIN) ON INVESTMENTS AND MBS, NET	34,219			26,635			9,470			34,219			9,470

ADJUSTED SHAREHOLDERS EQUITY	$	540,904		$	526,318		$	479,314		$	540,904		$	479,314

ADJUSTED BOOK VALUE PER SHARE:
BOOK VALUE PER SHARE, AS REPORTED	$	14.54		$	14.39		$	13.65		$	14.54		$	13.65
ADD (SUBTRACT) UNREALIZED LOSS (GAIN) ON INVESTMENTS AND MBS, NET	0.98			0.77			0.28			0.98			0.28

ADJUSTED BOOK VALUE PER SHARE	$	15.52		$	15.16		$	13.93		$	15.52		$	13.93

(1) Weighted average shares and per share amounts for prior periods have been restated to reflect the 3 for 2 stock split that was effected on August 31, 2005.

(2) Core earnings per share excludes net securities gains (losses), merger and acquisition costs and a charge for costs related to early repayment of debt, net of related income taxes. 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,

EXCEPT AS INDICATED, UNAUDITED)

	THREE MONTHS ENDED DECEMBER 31, 2005						THREE MONTHS ENDED DECEMBER 31, 2004
	AVERAGE BALANCE		AMOUNT		AVERAGE RATE		AVERAGE BALANCE		AMOUNT		AVERAGE RATE
AVERAGE INTEREST EARNING ASSETS:
LOANS:
MORTGAGE LOANS	$	2,410,115	$	42,400	6.98	%	$	2,265,574	$	34,763	6.10	%
COMMERCIAL AND CONSUMER LOANS	2,228,997		39,869		7.10	%	1,931,967		28,961		5.96	%
TOTAL LOANS	4,639,112		82,269		7.04	%	4,197,541		63,724		6.04	%
MORTGAGE-BACKED SECURITIES	1,981,771		22,985		4.60	%	2,024,775		23,024		4.52	%
INVESTMENTS AND CASH	170,913		661		1.53	%	169,524		756		1.77	%

TOTAL AVERAGE INTEREST-EARNING ASSETS	$	6,791,796	$	105,915	6.19	%	$	6,391,840	$	87,504	5.45	%

AVERAGE INTEREST BEARING LIABILITIES:
DEPOSITS:
INTEREST AND NON INTEREST-BEARING TRANSACTION ACCOUNTS	$	1,119,421	$	371	0.13	%	$	1,004,394	$	317	0.13	%
SAVINGS (AND MONEY MARKET DEMAND) ACCOUNTS	1,251,887		7,358		2.33	%	1,120,366		3,195		1.13	%
TIME DEPOSITS	2,210,650		21,006		3.77	%	1,708,824		11,738		2.73	%
TOTAL DEPOSITS	4,581,958		28,735		2.49	%	3,833,584		15,250		1.58	%
BORROWINGS	2,056,837		20,365		3.93	%	2,450,715		20,052		3.25	%

TOTAL AVERAGE INTEREST-BEARING LIABILITIES	$	6,638,795	$	49,100	2.93	%	$	6,284,299	$	35,302	2.23	%

NET INTEREST SPREAD					3.26	%					3.22	%

NET INTEREST MARGIN					3.32	%					3.25	%

	TWELVE MONTHS ENDED DECEMBER 31, 2005						TWELVE MONTHS ENDED DECEMBER 31, 2004
	AVERAGE BALANCE		AMOUNT		AVERAGE RATE		AVERAGE BALANCE		AMOUNT		AVERAGE RATE
AVERAGE INTEREST EARNING ASSETS:
LOANS:
MORTGAGE LOANS	$	2,368,974	$	160,656	6.78	%	$	2,036,742	$	124,115	6.09	%
COMMERCIAL AND CONSUMER LOANS	2,113,038		135,650		6.42	%	1,815,505		105,333		5.80	%
TOTAL LOANS	4,482,012		296,306		6.61	%	3,852,247		229,448		5.96	%
MORTGAGE-BACKED SECURITIES	1,948,435		88,682		4.55	%	1,885,239		85,009		4.51	%
INVESTMENTS AND CASH	168,853		2,823		1.67	%	190,934		5,304		2.78	%

TOTAL AVERAGE INTEREST-EARNING ASSETS	$	6,599,300	$	387,811	5.88	%	$	5,928,420	$	319,761	5.39	%

AVERAGE INTEREST BEARING LIABILITIES:
DEPOSITS:
INTEREST AND NON INTEREST-BEARING TRANSACTION ACCOUNTS	$	1,067,522	$	1,340	0.13	%	$	946,091	$	837	0.09	%
SAVINGS (AND MONEY MARKET DEMAND) ACCOUNTS	1,158,270		22,272		1.92	%	1,092,612		11,347		1.04	%
TIME DEPOSITS	2,041,122		68,378		3.35	%	1,608,599		41,299		2.57	%
TOTAL DEPOSITS	4,266,914		91,990		2.16	%	3,647,302		53,483		1.47	%
BORROWINGS	2,192,934		79,286		3.62	%	2,200,229		69,462		3.16	%

TOTAL AVERAGE INTEREST-BEARING LIABILITIES	$	6,459,848	$	171,276	2.65	%	$	5,847,531	$	122,945	2.10	%

NET INTEREST SPREAD					3.23	%					3.29	%

NET INTEREST MARGIN					3.28	%					3.32	%