EXHIBIT 12.1

STERLING FINANCIAL CORPORATION

COMPUTATION OF RETURN ON AVERAGE COMMON SHAREHOLDERS’ EQUITY

For the Year Ended December 31, 2008

Date	Shareholders’ Equity	Number of Days	YTD Weighted Average
01/01/2008	1,183,276,071	1	1,183,276,071
01/09/2008	1,183,276,269	8	9,466,210,151
01/10/2008	1,183,341,017	1	1,183,341,017
01/11/2008	1,183,486,064	4	4,733,944,255
01/15/2008	1,191,248,285	1	1,191,248,285
01/16/2008	1,191,248,947	9	10,721,240,523
01/25/2008	1,191,341,237	6	7,148,047,422
01/31/2008	1,191,481,918	1	1,191,481,918
02/01/2008	1,192,309,442	1	1,192,309,442
02/02/2008	1,192,327,163	4	4,769,308,650
02/06/2008	1,192,329,285	2	2,384,658,570
02/08/2008	1,192,462,037	3	3,577,386,111
02/11/2008	1,192,495,457	2	2,384,990,914
02/13/2008	1,192,495,898	2	2,384,991,796
02/15/2008	1,199,652,249	5	5,998,261,244
02/20/2008	1,199,652,283	2	2,399,304,566
02/22/2008	1,199,811,195	5	5,999,055,974
02/27/2008	1,199,814,063	2	2,399,628,126
02/29/2008	1,200,043,843	1	1,200,043,843
03/01/2008	1,200,043,843	4	4,800,175,371
03/05/2008	1,200,044,343	2	2,400,088,686
03/07/2008	1,200,128,662	5	6,000,643,311
03/12/2008	1,200,129,449	1	1,200,129,449
03/13/2008	1,200,169,201	1	1,200,169,201
03/14/2008	1,200,202,998	1	1,200,202,998
03/15/2008	1,188,221,765	4	4,752,887,058
03/19/2008	1,188,222,647	2	2,376,445,293
03/21/2008	1,188,311,048	10	11,883,110,482
03/31/2008	1,191,385,738	1	1,191,385,738
04/01/2008	1,191,385,738	1	1,191,385,738
04/02/2008	1,191,387,249	2	2,382,774,498
04/04/2008	1,191,473,185	5	5,957,365,924
04/09/2008	1,191,478,930	2	2,382,957,861
04/11/2008	1,191,507,034	4	4,766,028,136
04/15/2008	1,201,269,148	3	3,603,807,443
04/18/2008	1,201,363,385	7	8,409,543,698
04/25/2008	1,201,377,355	4	4,805,509,419
04/29/2008	1,201,393,247	1	1,201,393,247
04/30/2008	1,196,435,693	1	1,196,435,693
05/01/2008	1,196,435,693	1	1,196,435,693
05/02/2008	1,196,519,999	5	5,982,599,995
05/07/2008	1,196,782,451	5	5,983,912,256
05/12/2008	1,196,856,431	2	2,393,712,862
05/14/2008	1,196,881,692	1	1,196,881,692
05/15/2008	1,205,524,353	1	1,205,524,353
05/16/2008	1,205,617,607	5	6,028,088,033
05/21/2008	1,205,618,711	9	10,850,568,398
05/30/2008	1,205,934,506	2	2,411,869,013
06/01/2008	1,205,934,506	3	3,617,803,519
06/04/2008	1,205,935,005	7	8,441,545,034
06/11/2008	1,205,936,513	2	2,411,873,027
06/13/2008	1,206,041,669	2	2,412,083,339
06/15/2008	1,199,366,960	3	3,598,100,881
06/18/2008	1,199,367,508	9	10,794,307,576
06/27/2008	1,199,456,524	3	3,598,369,573
06/30/2008	1,178,184,114	1	1,178,184,114

EXHIBIT 12.1, Continued

Date	Shareholders’ Equity	Number of Days	YTD Weighted Average
07/01/2008	1,178,184,114	1		1,178,184,114
07/02/2008	1,178,184,262	7		8,247,289,836
07/09/2008	1,178,184,630	2		2,356,369,261
07/11/2008	1,178,292,858	4		4,713,171,433
07/15/2008	1,181,576,337	1		1,181,576,337
07/16/2008	1,181,579,464	7		8,271,056,250
07/23/2008	1,181,595,557	2		2,363,191,115
07/25/2008	1,181,684,195	5		5,908,420,975
07/30/2008	1,181,696,379	1		1,181,696,379
07/31/2008	1,176,718,155	1		1,176,718,155
08/01/2008	1,176,718,155	5		5,883,590,774
08/06/2008	1,176,724,278	2		2,353,448,555
08/08/2008	1,176,808,539	5		5,884,042,694
08/13/2008	1,176,809,332	2		2,353,618,664
08/15/2008	1,180,498,088	5		5,902,490,438
08/20/2008	1,180,500,183	7		8,263,501,280
08/27/2008	1,180,500,211	1		1,180,500,211
08/28/2008	1,180,694,737	1		1,180,694,737
08/29/2008	1,180,714,822	3		3,542,144,466
09/01/2008	1,180,714,822	2		2,361,429,644
09/03/2008	1,180,715,028	5		5,903,575,142
09/08/2008	1,180,774,217	2		2,361,548,434
09/10/2008	1,180,781,287	5		5,903,906,437
09/15/2008	1,178,854,649	2		2,357,709,299
09/17/2008	1,178,854,992	12		14,146,259,906
09/29/2008	1,180,426,750	2		2,360,853,500
10/01/2008	1,180,426,860	7		8,262,988,018
10/08/2008	1,180,428,085	2		2,360,856,170
10/10/2008	1,180,459,544	5		5,902,297,722
10/15/2008	1,168,149,577	7		8,177,047,042
10/22/2008	1,168,149,682	2		2,336,299,363
10/24/2008	1,168,149,682	5		5,840,748,408
10/29/2008	1,168,150,392	2		2,336,300,784
10/31/2008	1,168,293,704	1		1,168,293,704
11/01/2008	1,168,293,704	4		4,673,174,815
11/05/2008	1,168,293,805	7		8,178,056,637
11/12/2008	1,168,294,171	3		3,504,882,514
11/15/2008	1,158,653,370	4		4,634,613,481
11/19/2008	1,158,653,470	6		6,951,920,821
11/25/2008	1,158,874,230	1		1,158,874,230
11/26/2008	1,158,874,551	4		4,635,498,206
11/30/2008	1,158,927,539	1		1,158,927,539
12/01/2008	1,158,927,539	4		4,635,710,156
12/05/2009	1,170,118,539	5		5,850,592,695
12/10/2008	1,170,118,802	5		5,850,594,009
12/15/2008	836,986,417	2		1,673,972,834
12/17/2008	836,986,680	14		11,717,813,515
12/31/2008	849,070,922	1		849,070,922
preferred	291,964,000
total equity	1,141,034,922
Cumulative total		366		428,088,549,101
Divide by number of days				366
Average common shareholders’ equity				1,169,640,845
Net income available to common shares outstanding			$	(336,742,000	)
Return on average common shareholders’ equity				-28.8%