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Noncovered Loans (Tables)
9 Months Ended
Sep. 30, 2011
Noncovered Loans [Abstract] 
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