Noncovered Loans

6 Months Ended

Jun. 30, 2011

Noncovered Loans

Noncovered Loans

6. Noncovered Loans

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

(in thousands)	June 30, 2011			December 31, 2010
Noncovered loans:
Commercial business	$	836,745		$	795,369
Real Estate:
One-to-four family residential		51,077			49,383
Commercial and five or more family residential properties		843,288			794,329
Total real estate		894,365			843,712
Real estate construction:
One-to-four family residential		52,368			67,961
Commercial and five or more family residential properties		29,886			30,185
Total real estate construction		82,254			98,146
Consumer		177,564			182,017
Less: deferred loan fees		(3,454	)		(3,490	)
Total noncovered loans, net of deferred fees		1,987,474			1,915,754
Less: Allowance for loan and lease losses		(54,057	)		(60,993	)
Total loans, net	$	1,933,417		$	1,854,761
Loans held for sale	$	655		$	754

At June 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 $9.8 million and $12.9 million at June 30, 2011 and December 31, 2010, respectively. During the first six months of 2011, advances on related party loans were $3.1 million and repayments totaled $6.2 million.

At June 30, 2011 and December 31, 2010, $366.1 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 June 30, 2011 and December 31, 2010:

	June 30, 2011				December 31, 2010
(in thousands)	Recorded Investment (1) Nonaccrual Loans		Unpaid Principal Balance Nonaccrual Loans		Recorded Investment (1) Nonaccrual Loans		Unpaid Principal Balance Nonaccrual Loans
Commercial Business
Secured	$	11,506	$	17,798	$	32,368	$	44,316
Unsecured		204		814		0		327
Real Estate 1-4 Family
Residential RE Perm		2,748		3,197		2,999		3,353
Real Estate Commercial & Multifamily
Commercial RE Land		3,962		7,382		4,093		6,279
Income Property Multifamily Perm		8,611		10,724		11,716		12,737
Owner Occupied RE Perm		10,256		11,134		7,407		8,990
Construction 1-4 Family
Land & Acquisition		7,823		18,168		11,608		21,344
Residential Construction		2,307		4,593		6,503		11,547
Construction Commercial & Multifamily
Income Property Multifamily Construction		5,977		12,873		7,585		12,916
Owner Occupied RE Construction		0		0		0		0
Consumer		6,076		6,620		5,022		5,192
Total	$	59,470	$	93,303	$	89,301	$	127,001

(1) Recorded investment includes unpaid principal balance, net of charge-offs, unamortized deferred loan fees or costs, unamortized premiums or discounts and accrued interest.

The following is an analysis of the aged loan portfolio as of June 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
June 30, 2011
Commercial Business
Secured	$	782,661	$	446	$	969	$	0		1,415	$	11,380	$	795,456
Unsecured		40,921		0		59		0		59		310		41,290
Real Estate 1-4 Family
Residential RE Perm		48,331		0		0		0		0		2,746		51,077
Real Estate Commercial & Multifamily
Commercial RE Land		21,525		211		0		0		211		3,957		25,693
Income Property Multifamily Perm		472,606		45		0		0		45		8,601		481,252
Owner Occupied RE Perm		333,095		301		460		0		761		10,252		344,108
Construction 1-4 Family
Land & Acquisition		22,233		0		0		0		0		7,819		30,052
Residential Construction		18,084		1,942		0		0		1,942		2,289		22,315
Construction Commercial & Multifamily
Income Property Multifamily
Construction		2,938		0		0		0		0		5,976		8,914
Owner Occupied RE Construction		13,208		0		0		0		0		0		13,208
Consumer		168,317		663		2,509		0		3,172		6,074		177,563
Total	$	1,923,919	$	3,608	$	3,997	$	0	$	7,605	$	59,404	$	1,990,928
(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		0		0		9		448		40,912
Real Estate 1-4 Family
Residential RE Perm		46,167		220		0		0		220		2,996		49,383
Real Estate Commercial & Multifamily
Commercial RE Land		18,979		0		1,752		0		1,752		4,091		24,822
Income Property Multifamily Perm		426,320		1,208		121		0		1,329		10,745		438,394
Owner Occupied RE Perm		318,508		497		3,752		0		4,249		8,356		331,113
Construction 1-4 Family
Land & Acquisition		24,883		214		205		0		419		11,604		36,906
Residential Construction		24,655		0		0		0		0		6,400		31,055
Construction Commercial & Multifamily
Income Property Multifamily
Construction		10,666		0		0		0		0		7,584		18,250
Owner Occupied RE Construction		11,935		0		0		0		0		0		11,935
Consumer		176,005		397		595		0		992		5,020		182,017
Total	$	1,819,499	$	3,464	$	7,117	$	1	$	10,582	$	89,163	$	1,919,244

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

	Balance of Loans Collectively Measured for Contingency Provision		Balance of Loans Individually Measured for Specific Impairment		Impaired Loans With Recorded Allowance						Impaired Loans Without Recorded Allowance				Average Recorded Investment Impaired Loans (1)		Interest Recognized  on Impaired Loans
(in thousands)					Recorded Investment (1)		Unpaid Principal Balance		Related Allowance		Recorded Investment (1)		Unpaid Principal Balance
June 30, 2011
Commercial Business
Secured	$	786,252	$	9,204	$	1,593	$	1,592	$	331	$	7,617	$	7,612	$	20,471	$	52
Unsecured		41,189		100		71		71		71		29		29		102		1
Real Estate 1-4 Family
Residential RE Perm		48,652		2,425		0		0		0		2,428		2,425		2,649		0
Real Estate Commercial & Multifamily
Commercial RE Land		21,933		3,760		0		0		0		3,763		3,760		4,567		0
Income Property Multifamily Perm		473,138		8,113		2,340		2,339		301		5,782		5,774		10,330		442
Owner Occupied RE Perm		327,962		16,146		1,466		1,465		286		14,717		14,681		15,431		64
Construction 1-4 Family
Land & Acquisition		22,078		7,974		1,190		1,190		148		6,787		6,784		9,681		138
Residential Construction		20,027		2,289		0		0		0		2,311		2,289		4,158		0
Construction Commercial & Multifamily
Income Property Multifamily Construction		2,939		5,976		0		0		0		5,977		5,976		6,878		0
Owner Occupied RE Construction		13,207		0		0		0		0		0		0		0		0
Consumer		172,409		5,155		106		106		11		5,050		5,049		4,871		1
Total	$	1,929,786	$	61,142	$	6,766	$	6,763	$	1,148	$	54,461	$	54,379	$	79,138	$	698
			Balance of Loans Individually Measured for Specific Impairment		Impaired Loans With Recorded Allowance						Impaired Loans Without Recorded Allowance
(in thousands)	Balance of Loans Collectively Measured for Contingency Provision				Recorded Investment (1)		Unpaid Principal Balance		Related Allowance		Recorded Investment (1)		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 1-4 Family
Residential RE Perm		46,728		2,655		0		0		0		2,658		2,949
Real Estate Commercial & Multifamily
Commercial RE Land		20,959		3,863		3,062		5,225		0		804		826
Income Property Multifamily Perm		427,799		10,595		3,094		3,139		59		10,292		12,253
Owner Occupied RE Perm		317,010		14,103		0		0		0		14,152		17,099
Construction 1-4 Family
Land & 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
Construction Commercial & Multifamily
Income Property Multifamily Construction		10,666		7,584		6,792		10,515		175		792		2,401
Owner Occupied RE Construction		11,935		0		0		0		0		0		0
Consumer		177,484		4,533		0		0		0		4,533		4,691
Total	$	1,828,071	$	91,173	$	17,188	$	23,984	$	974	$	76,939	$	97,704

(1) Recorded investment includes unpaid principal balance, net of charge-offs, unamortized deferred loan fees or costs, unamortized premiums or discounts and accrued interest.