Loans Receivable And The Allowance For Loan Losses

12 Months Ended

Dec. 31, 2011

Loans Receivable And The Allowance For Loan Losses

Loans Receivable And The Allowance For Loan Losses

Note 6:  LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES

Loans receivable, including loans held for sale, at December 31, 2011 and 2010 are summarized as follows (dollars in thousands):

	December 31, 2011					December 31, 2010
		Amount		Percent			Amount		Percent
Commercial real estate
Owner-occupied	$	469,806		14.2	%	$	515,093		15.1	%
Investment properties		621,622		18.9			550,610		16.2
Multifamily real estate		139,710		4.2			134,634		4.0
Commercial construction		42,391		1.3			62,707		1.8
Multifamily construction		19,436		0.6			27,394		0.8
One- to four-family construction		144,177		4.4			153,383		4.5
Land and land development
Residential		97,491		3.0			167,764		4.9
Commercial		15,197		0.5			32,386		1.0
Commercial business		601,440		18.2			585,457		17.2
Agricultural business, including secured         by farmland		218,171		6.6			204,968		6.0
One- to four-family real estate		642,501		19.5			682,924		20.1
Consumer		103,347		3.1			99,761		2.9
Consumer secured by one- to four-family		181,049		5.5			186,036		5.5
Total consumer		284,396		8.6			285,797		8.4
Total loans outstanding		3,296,338		100.0	%		3,403,117		100.0	%
Less allowance for loan losses		(82,912	)				(97,401	)
Net loans	$	3,213,426				$	3,305,716

Loan amounts are net of unearned, unamortized loan fees (and costs) of approximately $10.0 million at December 31, 2011 and $11.0 million at December 31, 2010.

The Company’s loans by geographic concentration at December 31, 2011 were as follows (dollars in thousands):

		Washington			Oregon			Idaho			Other			Total
Commercial real estate
Owner-occupied	$	352,965		$	62,354		$	51,321		$	3,166		$	469,806
Investment properties		478,798			94,855			42,736			5,233			621,622
Multifamily real estate		121,699			9,344			8,260			407			139,710
Commercial construction		24,386			2,255			15,750			--			42,391
Multifamily construction		19,436			--			--			--			19,436
One- to four-family construction		79,294			63,058			1,825			--			144,177
Land and land development
Residential		49,611			43,382			4,498			--			97,491
Commercial		12,874			890			1,433			--			15,197
Commercial business		392,390			81,984			66,156			60,910			601,440
Agricultural business, including         secured by farmland		106,212			49,721			62,210			28			218,171
One- to four-family real estate		399,566			213,782			26,901			2,252			642,501
Consumer		72,349			25,871			5,127			--			103,347
Consumer secured by one- to   four- family		126,507			42,412			11,631			499			181,049
Total consumer		198,856			68,283			16,758			499			284,396
Total loans	$	2,236,087		$	689,908		$	297,848		$	72,495		$	3,296,338
Percent of total loans		67.8	%		20.9	%		9.0	%		2.3	%		100.0	%

The geographic concentrations of Banner’s land and land development loans by state at December 31, 2011 were as follows (dollars in thousands):

	Washington			Oregon			Idaho			Total
Residential:
Acquisition and development	$	13,200		$	17,343		$	3,607		$	34,150
Improved land and lots		22,651			23,055			408			46,114
Unimproved land		13,760			2,984			483			17,227
Commercial and industrial:
Acquisition and development		2,557			--			481			3,038
Improved land and lots		5,892			--			191			6,083
Unimproved land		4,425			890			761			6,076
Total land and land development loans	$	62,485		$	44,272		$	5,931		$	112,688
Percent of land and land development loans		55.4	%		39.3	%		5.3	%		100.0	%

The Company originates both adjustable- and fixed-rate loans.  At December 31, 2011 and 2010, the maturity and repricing composition of all those loans, less undisbursed amounts and deferred fees, were as follows (in thousands):

	December 31
	2011		2010
Fixed-rate (term to maturity):
Due in one year or less	$	216,782	$	214,625
Due after one year through three years		250,715		232,412
Due after three years through five years		182,647		173,533
Due after five years through ten years		157,559		119,108
Due after ten years		502,196		530,548
Total fixed-rate loans		1,309,899		1,270,226
Adjustable-rate (term to rate adjustment):
Due in one year or less		1,200,182		1,311,679
Due after one year through three years		425,309		428,910
Due after three years through five years		336,382		356,241
Due after five years through ten years		23,618		36,061
Due after ten years		948		--
Total adjustable-rate loans		1,986,439		2,132,891
Total loans	$	3,296,338	$	3,403,117

The adjustable-rate loans have interest rate adjustment limitations and are generally indexed to various prime (The Wall Street Journal) or LIBOR rates, FHLB advance rates or One-to-Five-Year Constant Maturity Treasury Indices.  Future market factors may affect the correlation of the interest rate adjustment with the rates the Banks pay on the short-term deposits that primarily have been utilized to fund these loans.

The Company’s loans to directors, executive officers and related entities are on substantially the same terms and underwriting as those prevailing at the time for comparable transactions with unrelated persons and do not involve more than normal risk of collectability.  Such loans had the following balances and activity during the years ended December 31, 2011 and 2010 (in thousands):

	Years Ended December 31
	2011			2010
Balance at beginning of year	$	5,428		$	10,161
New loans or advances		19,742			3,494
Repayments and adjustments		(14,931	)		(8,227	)
Balance at end of period	$	10,239		$	5,428

Impaired Loans and the Allowance for Loan Losses.  A loan is considered impaired when, based on current information and circumstances, the Company determines it is probable that it will be unable to collect all amounts due according to the contractual terms of the loan agreement, including scheduled interest payments.  Impaired loans are comprised of loans on nonaccrual, TDRs that are performing under their restructured terms, and loans that are 90 days or more past due, but are still on accrual.

The amount of impaired loans and the related allocated reserve for loan losses were as follows (in thousands):

	December 31, 2011				December 31, 2010
	Loan Amount		Allocated Reserves		Loan Amount		Allocated Reserves
Impaired loans:
Nonaccrual loans
Commercial real estate	$	9,226	$	908	$	24,727	$	2,151
Multifamily real estate		362		11		1,889		139
Construction and land		27,731		3,450		75,734		6,541
Commercial business		13,460		1,871		21,100		5,332
Agricultural business,                   including secured                   by farmland		1,896		629		5,853		56
One- to four-family                   residential		17,408		243		16,869		23
Consumer		2,905		85		2,332		84
Total nonaccrual loans		72,988		7,197		148,504		14,326
Past due and still accruing		2,324		19		2,985		7
TDRs on accrual		54,533		3,100		60,115		4,054
Total impaired loans	$	129,845	$	10,316	$	211,604	$	18,387

As of December 31, 2011, the Company had additional commitments to advance funds up to an amount of $155,000 related to TDRs.

The following table provides additional information on impaired loans with and without specific allowance reserves as of December 31, 2011 and December 31, 2010.  Recorded investment includes the unpaid principal balance or the carrying amount of loans less charge-offs and net deferred loan fees (in thousands):

	December 31, 2011
		Recorded Investment		Unpaid Principal Balance		Related Allowance			Average Recorded Investment		Interest Income Recognized
Without a specific allowance reserve (1)
Commercial real estate	$		2,428	$	2,470	$	339	$	2,602	$	9
Multifamily real estate			452		452		6		456		32
Construction and land			10,138		10,813		1,658		10,720		341
Commercial business			5,173		5,535		932		5,587		81
Agricultural business, including secured           by farmland			412		632		37		529		--
One-to-four-family residential			27,529		28,121		277		27,933		919
Consumer			2,266		2,828		34		2,666		29
			48,398		50,851		3,283		50,493		1,411
With a specific allowance reserve (2)
Commercial real estate			15,393		18,213		1,692		17,372		437
Multifamily real estate			1,997		1,997		11		1,967		82
Construction and land			31,290		45,837		2,614		47,851		497
Commercial business			12,889		13,332		1,404		13,721		144
Agricultural business, including secured            by farmland			1,483		1,671		592		1,855		--
One-to-four-family residential			16,877		18,301		658		17,555		469
Consumer			1,518		1,545		62		1,466		18
			81,447		100,896		7,033		101,787		1,647
Total
Commercial real estate	$		17,821	$	20,683	$	2,031	$	19,974	$	447
Multifamily real estate			2,449		2,449		17		2,423		114
Construction and land			41,428		56,650		4,272		58,571		837
Commercial business			18,062		18,867		2,336		19,308		225
Agricultural business, including secured           by farmland			1,895		2,303		629		2,384		--
One-to-four-family residential			44,406		46,422		935		45,488		1,388
Consumer			3,784		4,373		96		4,132		47
	$		129,845	$	151,747	$	10,316	$	152,280	$	3,058

   (1) Loans without a specific allowance reserve have not been individually evaluated for impairment, but have been included in pools of homogeneous loans for evaluation of related allowance reserves.

   (2) Loans with a specific allowance reserve have been individually evaluated for impairment using either a discounted cash flow analysis or, for collateral dependent loans, current appraisals to establish realizable value.  These analyses may identify a specific impairment amount needed or may conclude that no reserve is needed.  Any specific impairment that is identified is included in the category’s Related Allowance column.

	December 31, 2010
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
Without a specific allowance reserve (1)
Commercial real estate	$	4,870	$	5,295	$	594	$	4,835	$	36
Multifamily real estate		339		339		68		466		--
Construction and land		9,758		10,237		1,955		10,595		267
Commercial business		7,558		7,576		1,044		8,703		173
Agricultural business, including secured           by farmland		475		900		19		--		--
One- to four-family residential		31,094		31,121		122		31,620		1,069
Consumer		252		252		4		260		1
		54,346		55,720		3,806		56,479		1,546
With a specific allowance reserve (2)
Commercial real estate		26,384		28,048		2,320		27,737		157
Multifamily real estate		1,471		1,471		55		1,674		--
Construction and land		88,065		117,152		7,275		125,153		936
Commercial business		14,134		19,224		4,358		25,440		--
Agricultural business, including secured           by farmland		5,457		8,934		37		332		--
One- to four-family residential		20,736		21,791		536		22,287		396
Consumer		1,011		1,011		--		975		--
		157,258		197,631		14,581		203,598		1,489
Total impaired loans
Commercial real estate	$	31,254	$	33,343	$	2,914	$	32,572	$	193
Multifamily real estate		1,810		1,810		123		2,140		--
Construction and land		97,823		127,389		9,230		135,748		1,203
Commercial business		21,692		26,800		5,402		34,143		173
Agricultural business, including secured           by farmland		5,932		9,834		56		332		--
One- to four-family residential		51,830		52,912		658		53,907		1,465
Consumer		1,263		1,263		4		1,235		1
Total	$	211,604	$	253,351	$	18,387	$	260,077	$	3,035

   (1) Loans without a specific allowance reserve have not been individually evaluated for impairment, but have been included in pools of homogeneous loans for evaluation of related allowance reserves.

   (2) Loans with a specific allowance reserve have been individually evaluated for impairment using either a discounted cash flow analysis or, for collateral dependent loans, current appraisals to establish realizable value.  These analyses may identify a specific impairment amount needed or may conclude that no reserve is needed.  Any specific impairment that is identified is included in the category’s Related Allowance column.

The following tables present TDRs at December 31, 2011 and 2010 (in thousands):

	December 31, 2011
	Accrual Status		Nonaccrual Status		Total Modifications
Commercial real estate	$	7,751	$	1,964	$	9,715
Multifamily real estate		2,088		--		2,088
Construction and land		13,696		1,777		15,473
Commercial business		4,401		--		4,401
Agricultural business, including secured by farmland		--		--		--
One- to four-family residential		23,291		3,086		26,377
Consumer		3,306		4,523		7,829
	$	54,533	$	11,350	$	65,883

	December 31, 2010
	Accrual Status		Nonaccrual Status		Total Modifications
Commercial real estate	$	4,505	$	370	$	4,875
Multifamily real estate		--		--		--
Construction and land		21,873		6,944		28,817
Commercial business		3,746		27		3,773
Agricultural business, including secured by farmland		--		--		--
One- to four-family residential		29,340		2,415		31,755
Consumer		651		583		1,234
	$	60,115	$	10,339	$	70,454

The following tables present new TDRs that occurred during the twelve months ended December 31, 2011 and 2010 (dollars in thousands):

	Twelve Months Ended December 31, 2011
	Number of Loans		Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
Recorded Investment (1) (2)
Commercial real estate		5	$	6,895	$	6,895
Multifamily real estate		3		2,450		2,450
Construction and land		12		5,042		4,972
Commercial business		8		3,767		3,767
Agricultural business, including           secured by farmland		--		--		--
One- to four-family residential		5		1,379		1,284
Consumer		21		3,150		3,150
		54	$	22,683	$	22,518

	Twelve Months Ended December 31, 2010
	Number of Loans		Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
Recorded Investment (1) (2)
Commercial real estate		7	$	4,840	$	4,840
Multifamily real estate		--		--		--
Construction and land		11		16,965		16,774
Commercial business		6		822		822
Agricultural business, including          secured by farmland		--		--		--
One- to four-family residential		33		11,579		11,579
Consumer		4		764		764
		61	$	34,970	$	34,779

   (1) Since most loans were already considered classified and/or on non-accrual status prior to restructuring, the modifications did not have a material effect on the Company’s determination of the allowance for loan losses.

   (2) The majority of these modifications do not fit into one separate type, such as: rate, term, amount, interest-only or payment; but instead are a combination of multiple types of modifications, therefore they are disclosed in aggregate.

The following table presents TDRs which incurred a payment default within the twelve-month periods ended December 31, 2011 and 2010, for which the payment default occurred within twelve months of the restructure date.  A default on a restructured loan is either a transfer to nonaccrual status or a charge-off (in thousands):

	Twelve Months Ended December 31
	2011		2010
Commercial real estate	$	1,964	$	335
Multifamily real estate		--		--
Construction and land		578		3,342
Commercial business		--		--
Agricultural business, including secured          by farmland		--		--
One- to four-family residential		598		577
Consumer		1,732		113
Balance, end of period	$	4,872	$	4,367

Credit Quality Indicators:  To appropriately and effectively manage the ongoing credit quality of the Company’s loan portfolio, management has implemented a risk-rating or loan grading system for its loans.  The system is a tool to evaluate portfolio asset quality throughout each applicable loan’s life as an asset of the Company.  Generally, loans and leases are risk rated on an aggregate borrower/relationship basis with individual loans sharing similar ratings.  There are some instances when specific situations relating to individual loans will provide the basis for different risk ratings within the aggregate relationship.  Loans are graded on a scale of 1 to 9.  A description of the general characteristics of these categories is shown below:

Overall Risk Rating Definitions:  Risk-ratings contain both qualitative and quantitative measurements and take into account the financial strength of a borrower and the structure of the loan or lease.  Consequently, the definitions are to be applied in the context of each lending transaction and judgment must also be used to determine the appropriate risk rating, as it is not unusual for a loan or lease to exhibit characteristics of more than one risk-rating category.  Consideration for the final rating is centered in the borrower’s ability to repay, in a timely fashion, both principal and interest.  There were no material changes in the risk-rating or loan grading system in 2011.

Risk Rating 1: Exceptional

A credit supported by exceptional financial strength, stability, and liquidity.  The risk rating of 1 is reserved for the Company’s top quality loans, generally reserved for investment grade credits underwritten to the standards of institutional credit providers.

Risk Rating 2: Excellent

A credit supported by excellent financial strength, stability and liquidity.  The risk rating of 2 is reserved for very strong and highly stable customers with ready access to alternative financing sources.

Risk Rating 3: Strong

A credit supported by good overall financial strength and stability.  Collateral margins are strong, cash flow is stable although susceptible to cyclical market changes.

Risk Rating 4: Acceptable

A credit supported by the borrower’s adequate financial strength and stability.  Assets and cash flow are reasonably sound and provide for orderly debt reduction.  Access to alternative financing sources will be more difficult to obtain.

Risk Rating 5: Watch

A credit with the characteristics of an acceptable credit but one which requires more than the normal level of supervision and warrants formal quarterly management reporting.  Credits in this category are not yet criticized or classified, but due to adverse events or aspects of underwriting require closer than normal supervision. Generally, credits should be watch credits in most cases for six months or less as the impact of stress factors are analyzed.

Risk Rating 6: Special Mention

A credit with potential weaknesses that deserves management’s close attention is risk rated a 6.  If left uncorrected, these potential weaknesses will result in deterioration in the capacity to repay debt.  A key distinction between Special Mention and Substandard is that in a Special Mention credit, there are identified weaknesses that pose potential risk(s) to the repayment sources, versus well defined weaknesses that pose risk(s) to the repayment sources.  Assets in this category are expected to be in this category no more than 9-12 months as the potential weaknesses in the credit are resolved.

Risk Rating 7: Substandard

A credit with well defined weaknesses that jeopardize the ability to repay in full is risk rated a 7.  These credits are inadequately protected by either the sound net worth and payment capacity of the borrower or the value of pledged collateral.  These are credits with a distinct possibility of loss.  Loans headed for foreclosure and/or legal action due to deterioration are rated 7 or worse.

Risk Rating 8: Doubtful

A credit with an extremely high probability of loss is risk rated 8.  These credits have all the same critical weaknesses that are found in a substandard loan; however, the weaknesses are elevated to the point that based upon current information, collection or liquidation in full is improbable.  While some loss on doubtful credits is expected, pending events may strengthen a credit making the amount and timing of any loss undeterminable.  In these situations taking the loss is inappropriate until it is clear that the pending event has failed to strengthen the credit and improve the capacity to repay debt.

Risk Rating 9: Loss

A credit that is considered to be currently uncollectible or of such little value that it is no longer a viable Bank asset is risk rated 9.  Losses should be taken in the accounting period in which the credit is determined to be uncollectible.  Taking a loss does not mean that a credit has absolutely no recovery or salvage value but, rather, it is not practical or desirable to defer writing off the credit, even though partial recovery may occur in the future.

The following table shows Banner’s portfolio of risk-rated loans and non-risk-rated loans by grade or other characteristic as of December 31, 2011 (in thousands):

	December 31, 2011
	Commercial Real Estate		Multifamily		Construction and Land		Commercial Business		Ag-business & Farmland		One- to Four- Family Residential			Consumer (1)	Total Loans
Risk-rated loans:
Pass (Risk Ratings 1-5)	$	1,003,990	$	132,108	$	257,685	$	542,625	$	213,512	$	607,793	$	276,642	$	3,034,355
Special mention		29,751		5,000		3,359		13,447		923		772		402		53,654
Substandard		57,687		2,602		57,648		45,032		3,736		33,936		7,352		207,993
Doubtful		--		--		--		336		--		--		--		336
Loss		--		--		--		--		--		--		--		--
Total loans	$	1,091,428	$	139,710	$	318,692	$	601,440	$	218,171	$	642,501	$	284,396	$	3,296,338
Performing loans	$	1,082,202	$	139,348	$	290,961	$	587,976	$	216,275	$	622,946	$	281,318	$	3,221,026
Non-performing loans (2)		9,226		362		27,731		13,464		1,896		19,555		3,078		75,312
Total loans	$	1,091,428	$	139,710	$	318,692	$	601,440	$	218,171	$	642,501	$	284,396	$	3,296,338

(1)	Not all consumer loans are individually risk-rated.  For consumer loans that are not risk-rated, those that are performing consumer loans are reflected above as “Pass,” while non-performing consumer loans are reflected above as “Substandard.”
(2)	Non-performing loans include loans on non-accrual status and loans more than 90 days delinquent, but still accruing interest.

The following table shows Banner’s portfolio of risk-rated loans and non-risk-rated loans by grade or other characteristic as of December 31, 2010 (in thousands):

	December 31, 2010
	Commercial Real Estate		Multifamily		Construction and Land		Commercial Business		Ag-business & Farmland		One- to Four- Family Residential			Consumer (1)	Total Loans
Risk-rated loans:
Pass (Risk Ratings 1-5)	$	936,444	$	115,695	$	293,915	$	502,292	$	195,125	$	628,356	$	283,435	$	2,955,262
Special mention		36,163		16,335		12,231		33,084		1,326		3,918		--		103,057
Substandard		93,096		2,604		137,488		49,214		8,351		50,650		2,362		343,765
Doubtful		--		--		--		867		166		--		--		1,033
Loss		--		--		--		--		--		--		--		--
Total loans	$	1,065,703	$	134,634	$	443,634	$	585,457	$	204,968	$	682,924	$	285,797	$	3,403,117
Performing loans	$	1,040,976	$	132,745	$	367,900	$	564,357	$	199,115	$	663,100	$	283,435	$	3,251,628
Non-performing loans (2)		24,727		1,889		75,734		21,100		5,853		19,824		2,362		151,489
Total loans	$	1,065,703	$	134,634	$	443,634	$	585,457	$	204,968	$	682,924	$	285,797	$	3,403,117

(1)	Not all consumer loans are individually risk-rated.  For consumer loans that are not risk-rated, those that are performing consumer loans are reflected above as “Pass,” while non-performing consumer loans are reflected above as “Substandard.”
(2)	Non-performing loans include loans on non-accrual status and loans more than 90 days delinquent, but still accruing interest.

The following tables provide additional detail on the age analysis of Banner’s past due loans as of December 31, 2011 and 2010 (in thousands):

	December 31, 2011
	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Current		Total Loans		Loans 90 Days or More Past Due and Accruing
Commercial real estate	$	1,251	$	2,703	$	6,549	$	10,503	$	1,080,925	$	1,091,428	$	--
Multifamily		--		--		--		--		139,710		139,710		--
Construction and land		1,589		--		21,478		23,067		295,625		318,692		--
Commercial business		2,450		4,197		5,612		12,259		589,181		601,440		--
Ag-business/farmland		99		--		1,849		1,948		216,223		218,171		4
One-to four-family          residential		794		585		15,770		17,149		625,352		642,501		2,147
Consumer		1,703		445		2,143		4,291		280,105		284,396		173
Total	$	7,886	$	7,930	$	53,401	$	69,217	$	3,227,121	$	3,296,338	$	2,324

	December 31, 2010
	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Current		Total Loans		Loans 90 Days or More Past Due and Accruing
Commercial real estate	$	5,740	$	8,588	$	20,442	$	34,770	$	1,030,933	$	1,065,703	$	--
Multifamily		2,107		165		1,471		3,743		130,891		134,634		--
Construction and land		6,148		1,846		54,460		62,454		381,180		443,634		--
Commercial business		3,720		1,973		14,538		20,231		565,226		585,457		--
Ag-business/farmland		733		2,535		3,120		6,388		198,580		204,968		--
One-to four-family          residential		951		6,119		17,106		24,176		658,748		682,924		2,955
Consumer		1,535		1,006		1,554		4,095		281,702		285,797		30
Total	$	20,934	$	22,232	$	112,691	$	155,857	$	3,247,260	$	3,403,117	$	2,985

The following tables provide additional information on the allowance for loan losses and loan balances individually and collectively evaluated for impairment as of December 31, 2011 (in thousands):

	Commercial Real Estate			Multifamily			Construction and Land			Commercial Business			Ag-business and  Farmland			One- to Four-Family			Consumer			Commitments and Unallocated			Total
Allowance for loan losses:
Beginning balance	$	11,779		$	3,963		$	33,121		$	24,545		$	1,846		$	5,829		$	1,794		$	14,524		$	97,401
Provision for loan losses		10,704			671			9,789			(2,072	)		159			16,024			189			(464	)		35,000
Recoveries		53			-			1,602			1,082			20			356			304			--			3,417
Charge-offs		(6,079	)		(682	)		(26,328	)		(8,396	)		(477	)		(9,910	)		(1,034	)		--			(52,906
Ending balance	$	16,457		$	3,952		$	18,184		$	15,159		$	1,548		$	12,299		$	1,253		$	14,060		$	82,912
Allowance individually evaluated for impairment	$	1,693		$	11		$	2,614		$	1,404		$	592		$	658		$	62		$	--		$	7,034
Allowance collectively evaluated for impairment		14,764			3,941			15,570			13,755			956			11,641			1,191			14,060			75,878
Total allowance for loan           losses	$	16,457		$	3,952		$	18,184		$	15,159		$	1,548		$	12,299		$	1,253		$	14,060		$	82,912

	Commercial Real Estate		Multifamily		Construction and Land		Commercial Business		Ag-business and Farmland		One- to Four-Family		Consumer		Commitments and Unallocated		Total
Loan balances:
Loans individually evaluated for impairment	$	15,393	$	1,997	$	31,290	$	12,889	$	1,483	$	16,877	$	1,518	$	--	$	81,447
Loans collectively evaluated for impairment		1,076,035		137,713		287,402		588,551		216,688		625,624		282,878		--		3,214,891
Total loans	$	1,091,428	$	139,710	$	318,692	$	601,440	$	218,171	$	642,501	$	284,396	$	--	$	3,296,338

The following tables provide additional information on the allowance for loan losses and loan balances individually and collectively evaluated for impairment as of December 31, 2010 (in thousands):

	Commercial Real Estate			Multifamily		Construction and Land			Commercial Business			Ag-business and Farmland			One- to Four-Family			Consumer			Commitments and Unallocated		Total
Allowance for loan losses:
Beginning balance	$	8,278		$	90	$	45,209		$	22,054		$	919		$	2,912		$	1,809		$	13,998	$	95,269
Provision for loan losses		5,169			3,873		30,607			14,870			2,822			10,641			1,492			526		70,000
Recoveries		--			--		897			2,865			45			136			284			--		4,227
Charge-offs		(1,668	)		--		(43,592	)		(15,244	)		(1,940	)		(7,860	)		(1,791	)		--		(72,095)
Ending balance	$	11,779		$	3,963	$	33,121		$	24,545		$	1,846		$	5,829		$	1,794		$	14,524	$	97,401
Allowance individually evaluated for impairment	$	2,320		$	55	$	7,275		$	4,358		$	37		$	536		$	--		$	--	$	14,581
Allowance collectively evaluated for impairment		9,459			3,908		25,846			20,187			1,809			5,293			1,794			14,524		82,820
Total allowance for loan           losses	$	11,779		$	3,963	$	33,121		$	24,545		$	1,846		$	5,829		$	1,794		$	14,524	$	97,401

	Commercial Real Estate		Multifamily		Construction and Land		Commercial Business		Ag-business and Farmland		One- to Four-Family		Consumer		Commitments and Unallocated		Total
Loan balances:
Loans individually evaluated for impairment	$	26,384	$	1,471	$	88,065	$	14,134	$	5,457	$	20,736	$	1,011	$	--	$	157,258
Loans collectively evaluated for  impairment		1,039,319		133,163		355,569		571,323		199,511		662,188		284,786		--		3,245,859
Total loans	$	1,065,703	$	134,634	$	443,634	$	585,457	$	204,968	$	682,924	$	285,797	$	--	$	3,403,117