EXHIBIT 12.1

STERLING FINANCIAL CORPORATION

COMPUTATION OF RETURN ON
AVERAGE COMMON SHAREHOLDERS EQUITY

For the Year Ended December 31, 2009



|           |  |                      |  |                |  |                     
|---------- |  | -------------------- |  | -------------- |  | --------------------
|Date       |  | Shareholders Equity |  | Number of Days |  | YTD Weighted Average
|01/01/2009 |  | 849,070,922          |  | 1              |  | 849,070,922         
|01/14/2009 |  | 849,071,366          |  | 13             |  | 11,037,927,755      
|01/15/2009 |  | 852,120,718          |  | 1              |  | 852,120,718         
|01/28/2009 |  | 852,121,115          |  | 13             |  | 11,077,574,491      
|01/30/2009 |  | 851,430,732          |  | 2              |  | 1,702,861,464       
|01/31/2009 |  | 851,430,732          |  | 1              |  | 851,430,732         
|02/01/2009 |  | 851,430,732          |  | 10             |  | 8,514,307,320       
|02/11/2009 |  | 851,430,969          |  | 4              |  | 3,405,723,878       
|02/15/2009 |  | 851,613,016          |  | 10             |  | 8,516,130,163       
|02/25/2009 |  | 851,613,972          |  | 2              |  | 1,703,227,944       
|02/27/2009 |  | 850,503,727          |  | 1              |  | 850,503,727         
|02/28/2009 |  | 850,523,727          |  | 1              |  | 850,523,727         
|03/01/2009 |  | 850,523,727          |  | 3              |  | 2,551,571,181       
|03/04/2009 |  | 850,527,222          |  | 7              |  | 5,953,690,554       
|03/11/2009 |  | 850,527,362          |  | 4              |  | 3,402,109,450       
|03/15/2009 |  | 826,852,990          |  | 3              |  | 2,480,558,971       
|03/18/2009 |  | 826,855,331          |  | 7              |  | 5,787,987,319       
|03/25/2009 |  | 826,855,730          |  | 6              |  | 4,961,134,379       
|03/31/2009 |  | 829,108,020          |  | 1              |  | 829,108,020         
|04/01/2009 |  | 829,108,069          |  | 7              |  | 5,803,756,481       
|04/08/2009 |  | 829,108,291          |  | 7              |  | 5,803,758,040       
|04/15/2009 |  | 828,400,117          |  | 7              |  | 5,798,800,821       
|04/22/2009 |  | 828,402,262          |  | 8              |  | 6,627,218,096       
|04/30/2009 |  | 827,182,576          |  | 1              |  | 827,182,576         
|05/01/2009 |  | 827,182,576          |  | 12             |  | 9,926,190,906       
|05/13/2009 |  | 827,183,064          |  | 2              |  | 1,654,366,127       
|05/15/2009 |  | 819,965,507          |  | 16             |  | 13,119,448,104      
|05/30/2009 |  | 818,248,380          |  | 1              |  | 818,248,380         
|06/01/2009 |  | 818,248,380          |  | 11             |  | 9,000,732,175       
|06/12/2009 |  | 818,248,481          |  | 3              |  | 2,454,745,442       
|06/15/2009 |  | 796,641,512          |  | 4              |  | 3,186,566,046       
|06/19/2009 |  | 796,641,656          |  | 11             |  | 8,763,058,211       
|06/30/2009 |  | 803,375,387          |  | 1              |  | 803,375,387         
|07/01/2009 |  | 803,375,387          |  | 7              |  | 5,623,627,706       
|07/08/2009 |  | 803,375,487          |  | 7              |  | 5,623,628,406       
|07/15/2009 |  | 794,828,584          |  | 15             |  | 11,922,428,753      
|07/30/2009 |  | 793,881,932          |  | 2              |  | 1,587,763,863       
|08/01/2009 |  | 793,881,932          |  | 4              |  | 3,175,527,726       
|08/05/2009 |  | 793,882,113          |  | 7              |  | 5,557,174,791       
|08/12/2009 |  | 793,882,352          |  | 3              |  | 2,381,647,056       
|08/15/2009 |  | 787,419,371          |  | 16             |  | 12,598,709,936      
|08/31/2009 |  | 786,257,039          |  | 1              |  | 786,257,039         
|09/01/2009 |  | 786,257,039          |  | 14             |  | 11,007,598,550      
|09/15/2009 |  | 341,860,116          |  | 1              |  | 341,860,116         
|09/16/2009 |  | 341,860,256          |  | 7              |  | 2,393,021,795       
|09/23/2009 |  | 341,860,356          |  | 7              |  | 2,393,022,491       
|09/30/2009 |  | 372,233,170          |  | 1              |  | 372,233,170         



---

EXHIBIT 12.1, Continued



|                                                  |  |                      |              |                |                 |                      |               | 
|------------------------------------------------- |  | -------------------- | ------------ | -------------- | --------------- | -------------------- | ------------- | 
|Date                                              |  | Shareholders Equity |              | Number of Days |                 | YTD Weighted Average |              
|10/01/2009                                        |  | 372,233,170          |              | 13             |                 |                      | 4,839,031,209 | 
|10/14/2009                                        |  | 372,235,507          |              | 1              |                 |                      | 372,235,507   | 
|10/15/2009                                        |  | 325,952,991          |              | 6              |                 |                      | 1,955,717,944 | 
|10/21/2009                                        |  | 325,953,389          |              | 6              |                 |                      | 1,955,720,332 | 
|10/28/2009                                        |  | 325,956,097          |              | 3              |                 |                      | 977,868,291   | 
|10/30/2009                                        |  | 323,657,574          |              | 2              |                 |                      | 647,315,149   | 
|11/01/2009                                        |  | 323,657,574          |              | 3              |                 |                      | 970,972,723   | 
|11/04/2009                                        |  | 323,657,872          |              | 7              |                 |                      | 2,265,605,107 | 
|11/11/2009                                        |  | 323,658,163          |              | 4              |                 |                      | 1,294,632,651 | 
|11/15/2009                                        |  | 272,737,559          |              | 10             |                 |                      | 2,727,375,587 | 
|11/25/2009                                        |  | 272,737,589          |              | 5              |                 |                      | 1,363,687,947 | 
|11/30/2009                                        |  | 271,346,713          |              | 1              |                 |                      | 271,346,713   | 
|12/01/2009                                        |  | 271,346,713          |              | 8              |                 |                      | 2,170,773,707 | 
|12/09/2009                                        |  | 271,346,853          |              | 6              |                 |                      | 1,628,081,120 | 
|12/15/2009                                        |  | 39,838,999           |              | 1              |                 |                      | 39,838,999    | 
|12/16/2009                                        |  | 39,839,365           |              | 6              |                 |                      | 239,036,188   | 
|12/22/2009                                        |  | 39,839,365           |              | 1              |                 |                      | 39,839,365    | 
|12/23/2009                                        |  | 39,839,415           |              | 7              |                 |                      | 278,875,903   | 
|12/30/2009                                        |  | 39,839,445           |              | 1              |                 |                      | 39,839,445    | 
|12/31/2009                                        |  | 29,111,673           |              | 1              |                 |                      | 29,111,673    | 
|preferred                                         |  | 294,135,948          |              |                |                 |                      |               | 
|                                                  |  |                      |              |                |                 |                      |               | 
|total equity                                      |  | 323,247,621          |              |                |                 |                      |               | 
|                                                  |  |                      |              |                |                 |                      |               | 
|                                                  |  |                     
|Cumulative total                                  |  | 365                  |              |                | 240,636,416,465 |                     
|                                                  |  |                      |              |                |                 |                      |               | 
|                                                  | 
|Divide by number of days                          |  |                      | 365          |               
|                                                  |  |                      |              |                |                 |                      |               | 
|                                                  | 
|Average common shareholders equity               |  |                      | 659,277,853  |               
|                                                  |  |                      |              |                |                 |                      |               | 
|                                                  | 
|Net income available to common shares outstanding |  | $                    | (855,463,000 | )             
|                                                  | 
|Return on average common shareholders equity     |  |                      | -129.8       | %             
|                                                  |  |                      |              |                |                 |                      |               |