Fair value measurements (Tables)

9 Months Ended

Sep. 30, 2012

Fair value measurements

Schedule of estimated fair values of certain of the Company's financial instruments

	September 30, 2012										December 31, 2011
	Carrying or										Carrying or
	notional		Estimated fair value								notional		Estimated
(in thousands)	amount		Level 1		Level 2		Level 3		Total		amount		fair value
Financial assets
Cash and cash equivalents, excluding money market funds	$	168,502	$	—	$	168,502	$	—	$	168,502	$	270,255	$	270,255
Money market funds	10		—		10		—		10		10		10
Available-for-sale investment and mortgage-related securities	664,051		—		664,051		—		664,051		624,331		624,331
Investment in stock of Federal Home Loan Bank of Seattle	96,893		—		96,893		—		96,893		97,764		97,764
Loans receivable, net	3,722,243		—		—		3,948,690		3,948,690		3,652,419		3,886,253
Financial liabilities
Deposit liabilities	4,126,788		—		4,133,347		—		4,133,347		4,070,032		4,075,656		(1)
Short-term borrowings—other than bank	82,219		—		82,219		—		82,219		68,821		68,821
Other bank borrowings	211,219		—		228,533		—		228,533		233,229		250,486
Long-term debt, net—other than bank	1,429,869		—		1,491,860		—		1,491,860		1,340,070		1,400,241

(1)Revised (increased by $83.9 million) to correct an error in the estimated fair value disclosure at December 31, 2011.

Schedule of assets measured at fair value on a recurring basis

	Fair value measurements
(in thousands)	Level 1		Level 2		Level 3
September 30, 2012
Money market funds (“other” segment)	$	—	$	10	$	—
Available-for-sale securities (bank segment)
Mortgage-related securities-FNMA, FHLMC and GNMA	$	—	$	364,620	$	—
Federal agency obligations	—		216,583		—
Municipal bonds	—		82,848		—
	$	—	$	664,051	$	—
December 31, 2011
Money market funds (“other” segment)	$	—	$	10	$	—
Available-for-sale securities (bank segment)
Mortgage-related securities-FNMA, FHLMC and GNMA	$	—	$	344,865	$	—
Federal agency obligations	—		220,727		—
Municipal bonds	—		58,739		—
	$	—	$	624,331	$	—

Schedule of assets measured at fair value on a nonrecurring basis

			Fair value measurements
(in millions)	Balance		Level 1		Level 2		Level 3
Loans
September 30, 2012	$	24	$	—	$	—	$	24
December 31, 2011	34		—		—		34

Schedule of significant unobservable inputs used in the fair value measurement

($ in thousands)	Fair value at September 30, 2012		Valuation technique	Significant unobservable input	Significant unobservable  input value
Residential loans	$	20,088	Third party appraisal	Property sales	64%
Home equity lines of credit	649		Third party appraisal	Property sales	42%
Commercial loan	14		Third party appraisal	U.S. government agency guarantee	85%
Commercial loans	738		Third party appraisal	Fair value of business assets	45%
Commercial loan	1,998		Present value of cash flows	Present value of expected future cash flows based on anticipated debt restructuring Discount rate	Paydown of loan — 62% 4.5%
Commercial loan	227		Third party appraisal	Insurance proceeds	60%