##### 



EXHIBIT 12.1
  STERLING
    FINANCIAL CORPORATION
  COMPUTATION
    OF RETURN ON AVERAGE SHAREHOLDERS EQUITY
 For the
    Year Ended December 31, 2006
  Date

Shareholders Equity


Number of Days


YTD Weighted Average01/01/2006


506,684,395



2



1,013,368,79001/03/2006


506,793,625



3



1,520,380,87601/06/2006


506,843,665



6



3,041,061,99201/12/2006


506,844,180



1



506,844,18001/13/2006


506,950,490



2



1,013,900,98101/15/2006


511,885,949



2



1,023,771,89901/17/2006


512,197,693



3



1,536,593,08001/20/2006


512,197,745



5



2,560,988,72601/25/2006


512,217,383



6



3,073,304,29701/31/2006


512,277,223



1



512,277,22302/01/2006


512,299,037



7



3,586,093,26002/08/2006


512,299,254



1



512,299,25402/09/2006


512,314,921



6



3,073,889,52602/15/2006


517,041,031



1



517,041,03102/16/2006


517,127,051



1



517,127,05102/17/2006


517,340,745



5



2,586,703,72402/22/2006


517,347,775



1



517,347,77502/23/2006


517,441,946



4



2,069,767,78302/27/2006


517,455,746



1



517,455,74602/28/2006


517,584,531



1



517,584,53103/01/2006


517,941,971



2



1,035,883,94103/03/2006


518,209,910



5



2,591,049,54903/08/2006


519,051,379



2



1,038,102,75803/10/2006


519,200,447



3



1,557,601,34003/13/2006


519,605,662



2



1,039,211,32403/15/2006


525,700,685



15



7,885,510,27803/30/2006


525,700,743



1



525,700,74303/31/2006


508,720,358



1



508,720,35804/01/2006


508,720,358



9



4,578,483,21804/10/2006


508,730,251



2



1,017,460,50204/12/2006


508,734,024



1



508,734,02404/13/2006


508,741,789



1



508,741,78904/14/2006


509,531,864



1



509,531,86404/15/2006


514,499,016



11



5,659,489,18104/26/2006


514,499,519



2



1,028,999,03904/28/2006


514,562,827



2



1,029,125,65404/30/2006


514,565,717



1



514,565,71705/01/2006


514,591,427



2



1,029,182,85505/03/2006


514,643,256



7



3,602,502,79005/10/2006


514,643,922



5



2,573,219,60805/15/2006


520,480,582



1



520,480,58205/16/2006


520,479,684



1



520,479,68405/17/2006


520,480,148



7



3,643,361,03905/24/2006


520,481,665



7



3,643,371,65605/31/2006


520,731,789



1



520,731,78906/01/2006


520,731,789



11



5,728,049,67906/12/2006


520,741,936



1



520,741,93606/13/2006


520,775,356



1



520,775,35606/14/2006


520,775,893



1



520,775,89306/15/2006


527,062,567



1



527,062,56706/16/2006


527,067,623



12



6,324,811,47806/28/2006


527,069,380



2



1,054,138,760




---



##### 



Date

Shareholders Equity


Number of Days


YTD Weighted Average06/30/2006


514,141,037



1



514,141,03707/01/2006


514,141,037



4



2,056,564,14707/05/2006


564,705,989



9



5,082,353,89907/14/2006


564,717,884



1



564,717,88407/15/2006


571,549,931



12



6,858,599,16707/27/2006


571,609,451



1



571,609,45107/28/2006


571,899,756



3



1,715,699,26807/31/2006


571,978,824



1



571,978,82408/01/2006


571,978,824



1



571,978,82408/02/2006


572,084,674



1



572,084,67408/03/2006


572,544,717



6



3,435,268,30208/09/2006


572,613,302



6



3,435,679,81108/15/2006


578,682,119



1



578,682,11908/16/2006


578,857,541



1



578,857,54108/17/2006


578,902,241



1



578,902,24108/18/2006


578,997,781



4



2,315,991,12208/22/2006


579,074,911



1



579,074,91108/31/2006


579,079,837



9



5,211,718,53209/01/2006


579,072,337



1



579,072,33709/13/2006


579,073,364



12



6,948,880,37309/15/2006


585,734,483



2



1,171,468,96509/29/2006


585,734,370



14



8,200,281,18609/30/2006


608,721,393



1



608,721,39310/01/2006


608,721,393



3



1,826,164,17910/04/2006


608,724,399



7



4,261,070,79210/11/2006


608,724,928



2



1,217,449,85610/13/2006


608,739,176



2



1,217,478,35210/15/2006


615,550,357



12



7,386,604,28810/27/2006


616,087,959



3



1,848,263,87610/30/2006


616,098,106



1



616,098,10610/31/2006


616,160,983



1



616,160,98311/01/2006


616,393,773



7



4,314,756,41211/08/2006


616,389,124



5



3,081,945,61811/13/2006


616,546,644



2



1,233,093,28811/15/2006


623,206,635



1



623,206,63511/16/2006


623,238,701



6



3,739,432,20811/22/2006


623,239,803



8



4,985,918,42411/30/2006


623,307,985



1



623,307,98512/01/2006


773,189,973



3



2,319,569,91912/04/2006


773,260,813



2



1,546,521,62712/06/2006


773,362,994



1



773,362,99412/07/2006


773,454,532



1



773,454,53212/08/2006


773,535,407



3



2,320,606,22212/11/2006


773,594,225



2



1,547,188,45112/13/2006


773,606,022



1



773,606,02212/14/2006


773,918,536



1



773,918,53612/15/2006


783,022,477



5



3,915,112,38412/20/2006


783,016,272



1



783,016,27212/21/2006


783,136,422



8



6,265,091,37612/29/2006


783,611,308



2



1,567,222,61612/31/2006


783,416,087



1



783,416,087Cumulative total






365



208,039,762,724Divide by number of days










365Average shareholders equity










569,971,953Net income available to shares
    outstanding









$
73,946,355Return on average
    shareholders equity (annualized)










12.97
%