Noncovered Loans (Tables)

9 Months Ended

Sep. 30, 2011

Analysis of Loan Portfolio by Major Types of Loans

The following is an analysis of the noncovered loan portfolio by major types of loans (net of unearned income):



(in thousands)	September 30, 2011			December 31, 2010
Noncovered loans:
Commercial Business	$	983,820		$	795,369
Real Estate:
One-to-four family residential	64,535			49,383
Commercial and multifamily residential	977,173			794,329
Total Real Estate	1,041,708			843,712
Real Estate Construction:
One-to-four family residential	52,287			67,961
Commercial and multifamily residential	27,181			30,185
Total Real Estate Construction	79,468			98,146
Consumer	176,667			182,017
Less: Net unearned income	(23,764		)	(3,490		)
Total noncovered loans, net of unearned income	2,257,899			1,915,754
Less: Allowance for loan and lease losses	(50,422		)	(60,993		)
Total noncovered loans, net	$	2,207,477		$	1,854,761
Loans held for sale	$	2,568		$	754

At September 30, 2011 and December 31, 2010, the Company had no loans to foreign domiciled businesses or foreign countries, or loans related to highly leveraged transactions. Substantially all of the Company’s loans and unfunded commitments are geographically concentrated in its service areas within the states of Washington and Oregon.

The Company and its banking subsidiary have granted loans to officers and directors of the Company and related interests. These loans are made on the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated persons and do not involve more than the normal risk of collectability. The aggregate dollar amount of these loans was $9.5 million and $12.9 million at September 30, 2011 and December 31, 2010, respectively. During the first nine months of 2011, advances on related party loans were $3.1 million and repayments totaled $6.5 million.

At September 30, 2011 and December 31, 2010, $401.6 million and $426.6 million of commercial and residential real estate loans were pledged as collateral on Federal Home Loan Bank borrowings.

The following is an analysis of noncovered, nonaccrual loans as of September 30, 2011 and December 31, 2010:



	September 30, 2011				December 31, 2010
(in thousands)	Recorded Investment Nonaccrual Loans		Unpaid Principal Balance Nonaccrual Loans		Recorded Investment Nonaccrual Loans		Unpaid Principal Balance Nonaccrual Loans
Commercial Business
Secured	$	9,594	$	18,025	$	32,368	$	44,316
Unsecured	301		1,244		—		327
Real Estate:
One-to-four family residential	2,157		2,514		2,999		3,353
Commercial & multifamily residential
Commercial land	3,872		7,355		4,093		6,279
Income property multifamily	7,135		9,740		11,716		12,737
Owner occupied	9,845		10,908		7,407		8,990
Real Estate Construction:
One-to-four family residential
Land and acquisition	7,817		15,952		11,608		21,344
Residential construction	3,164		4,691		6,503		11,547
Commercial & multifamily residential
Income property multifamily	7,622		14,963		7,585		12,916
Owner occupied	—		—		—		—
Consumer	3,545		4,390		5,022		5,192
Total	$	55,052	$	89,782	$	89,301	$	127,001

The following is an analysis of the recorded investment of the aged loan portfolio as of September 30, 2011 and December 31, 2010:



(in thousands)	Current Loans		30 - 59 Days Past Due		60 - 89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Nonaccrual Loans		Total Loans
September 30, 2011
Commercial Business
Secured	$	905,270	$	847	$	579	$	—	$	1,426	$	9,594	$	916,290
Unsecured	57,118		1,359		58		—		1,417		301		58,836
Real Estate:
One-to-four family residential	61,073		239		204		—		443		2,157		63,673
Commercial & multifamily residential
Commercial land	44,260		—		—		—		—		3,872		48,132
Income property multifamily	519,034		352		10		—		362		7,135		526,531
Owner occupied	378,541		2,488		931		—		3,419		9,845		391,805
Real Estate Construction:
One-to-four family residential
Land and acquisition	16,640		1,084		436		—		1,520		7,817		25,977
Residential construction	22,781		—		—		—		—		3,164		25,945
Commercial & multifamily residential
Income property multifamily	5,168		1,011		—		—		1,011		7,622		13,801
Owner occupied	10,358		—		—		—		—		—		10,358
Consumer	172,094		465		447		—		912		3,545		176,551
Total	$	2,192,337	$	7,845	$	2,665	$	—	$	10,510	$	55,052	$	2,257,899

(in thousands)	Current Loans		30 - 59 Days Past Due		60 - 89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Nonaccrual Loans		Total Loans
December 31, 2010
Commercial Business
Secured	$	720,926	$	919	$	692	$	1	$	1,612	$	31,919	$	754,457
Unsecured	40,455		9		—		—		9		448		40,912
Real Estate:
One-to-four family residential	46,167		220		—		—		220		2,996		49,383
Commercial & multifamily residential
Commercial land	18,979		—		1,752		—		1,752		4,091		24,822
Income property multifamily	426,320		1,208		121		—		1,329		10,745		438,394
Owner occupied	318,508		497		3,752		—		4,249		8,356		331,113
Real Estate Construction:
One-to-four family residential
Land and acquisition	24,883		214		205		—		419		11,604		36,906
Residential construction	24,655		—		—		—		—		6,400		31,055
Commercial & multifamily residential
Income property multifamily	10,666		—		—		—		—		7,584		18,250
Owner occupied	11,935		—		—		—		—		—		11,935
Consumer	176,005		397		595		—		992		5,020		182,017
Total	$	1,819,499	$	3,464	$	7,117	$	1	$	10,582	$	89,163	$	1,919,244

Analysis of Nonaccrual Loans

The following is an analysis of noncovered, nonaccrual loans as of September 30, 2011 and December 31, 2010:



	September 30, 2011				December 31, 2010
(in thousands)	Recorded Investment Nonaccrual Loans		Unpaid Principal Balance Nonaccrual Loans		Recorded Investment Nonaccrual Loans		Unpaid Principal Balance Nonaccrual Loans
Commercial Business
Secured	$	9,594	$	18,025	$	32,368	$	44,316
Unsecured	301		1,244		—		327
Real Estate:
One-to-four family residential	2,157		2,514		2,999		3,353
Commercial & multifamily residential
Commercial land	3,872		7,355		4,093		6,279
Income property multifamily	7,135		9,740		11,716		12,737
Owner occupied	9,845		10,908		7,407		8,990
Real Estate Construction:
One-to-four family residential
Land and acquisition	7,817		15,952		11,608		21,344
Residential construction	3,164		4,691		6,503		11,547
Commercial & multifamily residential
Income property multifamily	7,622		14,963		7,585		12,916
Owner occupied	—		—		—		—
Consumer	3,545		4,390		5,022		5,192
Total	$	55,052	$	89,782	$	89,301	$	127,001

Analysis of the Aged Loan Portfolio

The following is an analysis of the recorded investment of the aged loan portfolio as of September 30, 2011 and December 31, 2010:



(in thousands)	Current Loans		30 - 59 Days Past Due		60 - 89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Nonaccrual Loans		Total Loans
September 30, 2011
Commercial Business
Secured	$	905,270	$	847	$	579	$	—	$	1,426	$	9,594	$	916,290
Unsecured	57,118		1,359		58		—		1,417		301		58,836
Real Estate:
One-to-four family residential	61,073		239		204		—		443		2,157		63,673
Commercial & multifamily residential
Commercial land	44,260		—		—		—		—		3,872		48,132
Income property multifamily	519,034		352		10		—		362		7,135		526,531
Owner occupied	378,541		2,488		931		—		3,419		9,845		391,805
Real Estate Construction:
One-to-four family residential
Land and acquisition	16,640		1,084		436		—		1,520		7,817		25,977
Residential construction	22,781		—		—		—		—		3,164		25,945
Commercial & multifamily residential
Income property multifamily	5,168		1,011		—		—		1,011		7,622		13,801
Owner occupied	10,358		—		—		—		—		—		10,358
Consumer	172,094		465		447		—		912		3,545		176,551
Total	$	2,192,337	$	7,845	$	2,665	$	—	$	10,510	$	55,052	$	2,257,899

(in thousands)	Current Loans		30 - 59 Days Past Due		60 - 89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Nonaccrual Loans		Total Loans
December 31, 2010
Commercial Business
Secured	$	720,926	$	919	$	692	$	1	$	1,612	$	31,919	$	754,457
Unsecured	40,455		9		—		—		9		448		40,912
Real Estate:
One-to-four family residential	46,167		220		—		—		220		2,996		49,383
Commercial & multifamily residential
Commercial land	18,979		—		1,752		—		1,752		4,091		24,822
Income property multifamily	426,320		1,208		121		—		1,329		10,745		438,394
Owner occupied	318,508		497		3,752		—		4,249		8,356		331,113
Real Estate Construction:
One-to-four family residential
Land and acquisition	24,883		214		205		—		419		11,604		36,906
Residential construction	24,655		—		—		—		—		6,400		31,055
Commercial & multifamily residential
Income property multifamily	10,666		—		—		—		—		7,584		18,250
Owner occupied	11,935		—		—		—		—		—		11,935
Consumer	176,005		397		595		—		992		5,020		182,017
Total	$	1,819,499	$	3,464	$	7,117	$	1	$	10,582	$	89,163	$	1,919,244

Analysis of Impaired Loans

The following is an analysis of impaired loans as of September 30, 2011 and December 31, 2010:



	Recorded Investment of Loans Collectively Measured for Contingency Provision		Recorded Investment of Loans Individually Measured for Specific Impairment		Impaired Loans With Recorded Allowance						Impaired Loans Without Recorded Allowance				Average Recorded Investment Impaired Loans		Interest Recognized on Impaired Loans
(in thousands)					Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance
September 30, 2011
Commercial Business
Secured	$	908,699	$	7,591	$	273	$	273	$	54	$	7,318	$	14,810	$	17,251	$	16
Unsecured	58,548		288		—		—		—		288		609		148		—
Real Estate:
One-to-four family residential	61,629		2,044		—		—		—		2,044		2,283		2,498		—
Commercial & multifamily residential
Commercial land	44,316		3,816		—		—		—		3,816		6,781		4,380		—
Income property multifamily	519,745		6,786		2,588		3,512		297		4,198		5,673		9,444		526
Owner occupied	376,391		15,414		1,528		2,186		408		13,886		16,616		15,427		298
Real Estate Construction:
One-to-four family residential
Land and acquisition	17,550		8,427		1,216		1,813		175		7,211		12,210		9,368		176
Residential construction	20,830		5,115		—		—		—		5,115		6,563		4,397		—
Commercial & multifamily residential
Income property multifamily	6,178		7,623		—		—		—		7,623		14,963		7,064		—
Owner occupied	10,358		—		—		—		—		—		—		—		—
Consumer	174,059		2,492		154		226		32		2,338		2,832		4,276		13
Total	$	2,198,303	$	59,596	$	5,759	$	8,010	$	966	$	53,837	$	83,340	$	74,253	$	1,029

	Recorded Investment of Loans Collectively Measured for Contingency Provision		Recorded Investment of Loans Individually Measured for Specific Impairment		Impaired Loans With Recorded Allowance						Impaired Loans Without Recorded Allowance
(in thousands)					Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance
December 31, 2010
Commercial Business
Secured	$	724,665	$	29,793	$	2,717	$	2,758	$	600	$	27,081	$	26,913
Unsecured	40,808		104		75		75		75		29		30
Real Estate:
One-to-four family residential	46,728		2,655		—		—		—		2,658		2,949
Commercial & multifamily residential
Commercial land	20,959		3,863		3,062		5,225		—		804		826
Income property multifamily	427,799		10,595		3,094		3,139		59		10,292		12,253
Owner occupied	317,010		14,103		—		—		—		14,152		17,099
Real Estate Construction:
One-to-four family residential
Land and acquisition	25,362		11,543		533		549		3		11,013		20,718
Residential construction	24,655		6,400		915		1,723		62		5,585		9,824
Commercial & multifamily residential
Income property multifamily	10,666		7,584		6,792		10,515		175		792		2,401
Owner occupied	11,935		—		—		—		—		—		—
Consumer	177,484		4,533		—		—		—		4,533		4,691
Total	$	1,828,071	$	91,173	$	17,188	$	23,984	$	974	$	76,939	$	97,704

Analysis of loans classified as Troubled Debt Restructurings (“TDR”)

The following is an analysis of loans classified as Troubled Debt Restructurings ("TDR") during the three months ended September 30, 2011:



(in thousands except number of modifications)	Number of TDR Modifications	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial Business
Secured	1	$	226	$	226
Total	1	$	226	$	226

The following is an analysis of loans classified as Troubled Debt Restructurings during the nine months ended September 30, 2011:



(in thousands except number of modifications)	Number of TDR Modifications	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial Business
Secured	3	$	578	$	578
Real Estate: Commercial & multifamily residential
Income Property Multifamily	1	623		623
Real Estate Construction: One-to-four family residential
Residential Construction	1	36		36
Total	5	$	1,237	$	1,237