EXHIBIT 21.1

SUBSIDIARIES OF STERLING

Subsidiaries of Sterling Financial Corporation:



|                                      |  |                      
|------------------------------------- |  | ---------------------
|Name of Entity                        |  | State ofIncorporation
|                                      | 
|Golf Escrow Corporation               |  | WA                   
|Klamath First Capital Trust I         |  | DE                   
|Lynnwood Financial Statutory Trust I  |  | CT                   
|Lynnwood Financial Statutory Trust II |  | DE                   
|Sterling Capital Trust III            |  | DE                   
|Sterling Capital Trust IV             |  | DE                   
|Sterling Capital Statutory Trust V    |  | CT                   
|Sterling Capital Trust VI             |  | DE                   
|Sterling Capital Trust VII            |  | DE                   
|Sterling Capital Trust VIII           |  | DE                   
|Sterling Capital Trust IX             |  | DE                   
|Sterling Savings Bank                 |  | WA                   
|(d/b/a Sonoma Bank in CA)             |  |                      
|Tri-Cities Mortgage Corporation       |  | WA                   

Subsidiaries of Sterling Savings Bank:



|                                                                                |  |                      
|------------------------------------------------------------------------------- |  | ---------------------
|Name of Entity                                                                  |  | State ofIncorporation
|                                                                                | 
|Action Mortgage Company                                                         |  | WA                   
|(d/b/a SSB Mortgage Corporation in CA)                                          |  |                      
|(d/b/a Sterling Mortgage Company in CO)                                         |  |                      
|(d/b/a Action Mortgage Company, Inc. in HI)                                     |  |                      
|(d/b/a SSB Mortgage Company in TX)                                              |  |                      
|(d/b/a Sterling Mortgage Company in UT)                                         |  |                      
|The Dime Service Corporation                                                    |  | MT                   
|Evergreen Environmental Development Corporation                                 |  | WA                   
|Evergreen First Service Corporation                                             |  | WA                   
|Sterling Savings Banc Financial Services, Inc.                                  |  | WA                   
|(a subsidiary of Evergreen First Service Corporation)                           |  |                      
|(d/b/a Sonoma Bank Financial Services in CA)                                    |  |                      
|Fidelity Service Corporation                                                    |  | WA                   
|INTERVEST-Mortgage Investment Company                                           |  | WA                   
|Mason-McDuffie Financial Corporation                                            |  | WA                   
|(a subsidiary of INTERVEST-Mortgage Investment Company)                         |  |                      
|Source Capital Corporation                                                      |  | WA                   
|Peter W. Wong Associates, Inc. (a subsidiary of Source Capital Corporation)     |  | WA                   
|Source Capital Leasing Corporation (a subsidiary of Source Capital Corporation) |  | WA