Homebuyers Can Choose between 3 Percent Lender Contribution or 3.875 Percent Rate

Sterling Savings Bank today announced it is extending its special loan program that offers a choice between receiving a lender contribution of up to 3 percent of the purchase price or a 3.875 percent, 30-year fixed mortgage rate on a new home. This special pricing is available for purchases of newly-constructed homes that are currently being financed by Sterling Savings Bank. Qualified homebuyers now have until May 20, 2009 to apply for this offer on loans closing by June 30, 2009.

Sterling Saving Bank is partnering with Golf Savings Bank to offer this special loan pricing program. Sterling Savings Bank and Golf Savings Bank are both subsidiaries of Sterling Financial Corporation (NASDAQ:STSA). The program is designed to provide financing assistance to first-time homebuyers as well as more experienced homebuyers on qualifying, newly-constructed properties.

"The continuation of this successful program is a reflection of our commitment to putting the U.S. Treasury funds Sterling received to work in a manner that directly benefits new, qualified homebuyers in the communities we serve,” said Greg Seibly, president of Sterling Savings Bank. “The fixed-rate option works for qualified conventional homebuyers, while the 3 percent contribution is expected to appeal to qualified FHA and VA buyers as well as conventional homebuyers who prefer this option."

Seibly pointed out that as overall mortgage interest rates have fallen, many borrowers are attracted to the 3 percent lender contribution. The lender contribution money can be applied to closing costs and rate buy-downs, leaving homebuyers more cash to pay for the costs associated with settling into a new home. With more money in their pocket, new homebuyers can put the money right back into their local economy with purchases ranging from landscaping and window coverings to appliances and interior furnishings.

“This loan program opens a door for many in our communities that do not qualify for conventional financing; however they qualify for FHA and VA loan programs. The flexibility of the program reaches a broader range of consumers by making home ownership more affordable,” said Seibly.

Details of the program

Qualified borrowers can choose between:

• A 3 percent contribution (up to $20,000) from Sterling, or
• Fixed mortgage rates as low as 3.875 percent

This program covers home sales that meet the following criteria:

• Applications must be taken on or before May 20, 2009
• Loans must close by June 30, 2009
• Eligible properties are from a selection of homes from builders financed by Sterling Savings Bank and are located in Oregon, Washington, Idaho, Montana and California.

To receive details regarding the terms and conditions and to apply for this special offer, call Golf Savings Bank at 877-416-6111 or visit Golf’s website. Interested parties can also call Sterling's Home Loan Center at 888-671-1113.

ABOUT STERLING SAVINGS BANK AND GOLF SAVINGS BANK

Sterling Financial Corporation of Spokane, Washington, is the bank holding company for Sterling Savings Bank, a commercial bank, and Golf Savings Bank, a savings bank focused on single-family mortgage originations. Both banks are state chartered and federally insured. Sterling offers banking products and services, mortgage lending, construction financing and investment products to individuals, small businesses, commercial organizations and corporations. As of December 31, 2008, Sterling Financial Corporation had assets of $12.78 billion and operated more than 175 depository branches throughout Washington, Oregon, Idaho, Montana and California.

Sterling Savings Bank
Cara Coon, 509-626-5348