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LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES

3 Months Ended

Mar. 31, 2012

LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES [Abstract]

LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES

Note 7: LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES

We originate residential mortgage loans for both portfolio investment and sale in the secondary market. At the time of origination, mortgage loans are designated as held for sale or held for investment. Loans held for sale are stated at the lower of cost or estimated market value determined on an aggregate basis. Net unrealized losses on loans held for sale are recognized through a valuation allowance by charges to income. The Banks also originate construction, land and land development, commercial and multifamily real estate, commercial business, agricultural business and consumer loans for portfolio investment. Loans receivable not designated as held for sale are recorded at the principal amount outstanding, net of allowance for loan losses, deferred fees, discounts and premiums. Premiums, discounts and deferred loan fees are amortized to maturity using the level-yield methodology.

Interest is accrued as earned unless management doubts the collectability of the loan or the unpaid interest. Interest accruals are generally discontinued when loans become 90 days past due for scheduled interest payments. All previously accrued but uncollected interest is deducted from interest income upon transfer to nonaccrual status. Future collection of interest is included in interest income based upon an assessment of the likelihood that the loans will be repaid or recovered. A loan may be put on nonaccrual status sooner than this policy would dictate if, in management’s judgment, the loan may be uncollectable. Such interest is then recognized as income only if it is ultimately collected.

Some of the Company’s loans are reported as troubled debt restructurings (TDRs). Loans are reported as restructured when the bank grants a concession(s) to a borrower experiencing financial difficulties that it would not otherwise consider. Examples of such concessions include forgiveness of principal or accrued interest, extending the maturity date(s) or providing a lower interest rate than would be normally available for a transaction of similar risk. As a result of these concessions, restructured loans are impaired as the bank will not collect all amounts due, both principal and interest, in accordance with the terms of the original loan agreement. Loans identified as TDRs are accounted for in accordance with the Banks’ impaired loan accounting policies.

Loans receivable, including loans held for sale, at March 31, 2012, December 31, 2011 and March 31, 2011 are summarized as follows (dollars in thousands):

	March 31 2012						December 31 2011						March 31 2011
	Amount			Percent of Total			Amount			Percent of Total			Amount			Percent of Total

Commercial real estate
Owner-occupied	$	468,318			14.5	%	$	469,806			14.2	%	$	521,823			15.7	%
Investment properties		612,617			19.0			621,622			18.9			564,337			17.0
Multifamily real estate		132,306			4.1			139,710			4.2			147,569			4.4
Commercial construction		40,276			1.2			42,391			1.3			26,580			0.8
Multifamily construction		20,654			0.6			19,436			0.6			19,694			0.6
One- to four-family construction		148,717			4.6			144,177			4.4			151,015			4.6
Land and land development
Residential		89,329			2.7			97,491			3.0			147,913			4.4
Commercial		12,044			0.4			15,197			0.5			30,539			0.9
Commercial business		609,497			18.9			601,440			18.2			577,128			17.4
Agricultural business, including secured by farmland		188,955			5.9			218,171			6.6			188,756			5.7
One- to four-family real estate		619,511			19.2			642,501			19.5			665,396			20.0
Consumer		106,978			3.3			103,347			3.1			104,129			3.1
Consumer secured by one- to four-family		180,460			5.6			181,049			5.5			181,201			5.4
Total consumer		287,438			8.9			284,396			8.6			285,330			8.5

Total loans outstanding		3,229,662			100.0	%		3,296,338			100.0	%		3,326,080			100.0	%

Less allowance for loan losses		(81,544	)					(82,912	)					(97,632	)

Net loans	$	3,148,118					$	3,213,426					$	3,228,448

Loan amounts are net of unearned, unamortized loan fees (and costs) of approximately $10 million, $10 million and $11 million at March 31, 2012, December 31, 2011 and March 31, 2011, respectively.

The Company’s loans by geographic concentration at March 31, 2012 were as follows (dollars in thousands):

	Washington			Oregon			Idaho			Other			Total
Commercial real estate
Owner-occupied	$	355,126		$	58,739		$	51,341		$	3,112		$	468,318
Investment properties		473,807			91,070			42,581			5,159			612,617
Multifamily real estate		110,525			13,210			8,192			379			132,306
Commercial construction		23,748			6,861			9,667			--			40,276
Multifamily construction		20,654			--			--			--			20,654
One- to four-family construction		77,225			69,370			2,122			--			148,717
Land and land development
Residential		47,833			39,135			2,361			--			89,329
Commercial		9,338			887			1,819			--			12,044
Commercial business		396,611			74,683			67,449			70,754			609,497
Agricultural business, including secured by farmland		99,778			35,073			54,104			--			188,955
One- to four-family real estate		379,602			210,708			26,977			2,224			619,511
Consumer		70,662			30,697			5,619			--			106,978
Consumer secured by one- to four- family		124,494			43,420			12,011			535			180,460
Total consumer		195,156			74,117			17,630			535			287,438

Total loans	$	2,189,403		$	673,853		$	284,243		$	82,163		$	3,229,662

Percent of total loans		67.8	%		20.9	%		8.8	%		2.5	%		100.0	%

The geographic concentrations of the Company’s land and land development loans by state at March 31, 2012 were as follows (dollars in thousands):

	Washington			Oregon			Idaho			Total
Residential:
Acquisition and development	$	12,115		$	14,708		$	1,903		$	28,726
Improved land and lots		22,615			21,510			370			44,495
Unimproved land		13,103			2,917			88			16,108

Commercial and industrial:
Acquisition and development		1,555			--			483			2,038
Improved land and lots		3,458			--			580			4,038
Unimproved land		4,325			887			756			5,968

Total land and land development loans	$	57,171		$	40,022		$	4,180		$	101,373

Percent of land and land development loans		56.4	%		39.5	%		4.1	%		100.0	%

The Company originates both adjustable- and fixed-rate loans. The maturity and repricing composition of those loans, less undisbursed amounts and deferred fees, at March 31, 2012, December 31, 2011 and March 31, 2011 were as follows (in thousands):

	March 31 2012		December 31 2011		March 31 2011
Fixed-rate (term to maturity):
Due in one year or less	$	213,503	$	216,782	$	187,493
Due after one year through three years		231,148		250,715		240,526
Due after three years through five years		175,846		182,647		188,126
Due after five years through ten years		159,453		157,559		132,917
Due after ten years		477,495		502,196		523,830
Total fixed-rate loans		1,257,445		1,309,899		1,272,892

Adjustable-rate (term to rate adjustment):
Due in one year or less		1,188,664		1,200,182		1,247,147
Due after one year through three years		387,588		425,309		428,897
Due after three years through five years		363,719		336,382		342,542
Due after five years through ten years		25,863		23,618		34,602
Due after ten years		6,383		948		--
Total adjustable-rate loans		1,972,217		1,986,439		2,053,188

Total loans	$	3,229,662	$	3,296,338	$	3,326,080

The adjustable-rate loans have interest rate adjustment limitations and are generally indexed to various prime (The Wall Street Journal) or LIBOR rates, One to Five Year Constant Maturity Treasury Indices or FHLB advance rates. 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.

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 as of March 31, 2012 and December 31, 2011 were as follows (in thousands):

	March 31, 2012				December 31, 2011
	Loan Amount		Allocated Reserves		Loan Amount		Allocated Reserves
Impaired loans:
Nonaccrual loans
Commercial real estate	$	10,541	$	382	$	9,226	$	908
Multifamily real estate		--		--		362		11
Construction and land		18,601		2,825		27,731		3,450
Commercial business		10,121		1,202		13,460		1,871
Agricultural business/farmland		1,481		544		1,896		629
One- to four-family residential		19,384		473		17,408		243
Consumer		2,572		81		2,905		85
Total nonaccrual loans	$	62,700	$	5,507	$	72,988	$	7,197

Past due and still accruing		2,213		1		2,324		19
TDRs		53,391		1,897		54,533		3,100
Total impaired loans	$	118,304	$	7,405	$	129,845	$	10,316

As of March 31, 2012, the Company had additional commitments to advance funds up to an amount of $363,000 related to impaired loans.

The following tables provide additional information on impaired loans with and without specific allowance reserves as of March 31, 2012 and December 31, 2011 (in thousands):

	At or For the Three Months Ended March 31, 2012
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized

Without a specific allowance reserve (1)
Commercial real estate	$	4,588	$	5,088	$	571	$	4,646	$	17
Multifamily real estate		450		450		5		451		8
Construction and land		8,187		9,620		1,176		8,382		83
Commercial business		4,758		5,136		771		4,875		25
Agricultural business/farmland		520		1,202		64		712		4
One- to four-family residential		25,092		25,633		216		25,044		23
Consumer		2,319		2,684		52		2,368		20
		45,914		49,813		2,855		46,478		180
With a specific allowance reserve (2)
Commercial real estate	$	13,123	$	14,237	$	239	$	13,788	$	22
Multifamily real estate		1,635		1,635		37		1,635		4
Construction and land		22,149		27,348		2,100		23,663		56
Commercial business		9,816		11,083		799		10,934		24
Agricultural business/farmland		961		961		480		1,036		--
One- to four-family residential		23,261		24,744		824		21,537		10
Consumer		1,445		1,719		71		1,623		3
		72,390		81,727		4,550		74,216		119
Total
Commercial real estate	$	17,711	$	19,325	$	810	$	18,434	$	39
Multifamily		2,085		2,085		42		2,086		12
Construction and land		30,336		36,968		3,276		32,045		139
Commercial business		14,574		16,219		1,570		15,809		49
Agricultural business/farmland		1,481		2,163		544		1,748		4
One- to four-family residential		48,353		50,377		1,040		46,581		33
Consumer		3,764		4,403		123		3,991		23
	$	118,304	$	131,540	$	7,405	$	120,694	$	299

	At or For the Year Ended 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/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

		43,398		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/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/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.

The following tables present TDRs at March 31, 2012 and December 31, 2011 (in thousands):

	March 31, 2012
	Accrual Status		Nonaccrual Status		Total Modifications


Commercial real estate	$	7,169	$	3,923	$	11,092
Multifamily real estate		2,085		--		2,085
Construction and land		11,736		1,968		13,704
Commercial business		4,453		58		4,511
One- to four-family residential		26,839		5,501		32,340
Consumer		1,109		881		1,990

	$	53,391	$	12,331	$	65,722

	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
One- to four-family residential		23,291		3,086		26,377
Consumer		3,306		4,523		7,829

	$	54,533	$	11,350	$	65,883

The following tables present newly restructured loans that occurred during the three months ended March 31, 2012 and 2011 (dollars in thousands):

	Three Months Ended March 31, 2012
	Number of Contracts		Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment

Recorded Investment (1) (2)
Commercial real estate		2	$	877	$	877
Construction and land		4		1,310		1,310
Commercial business		3		355		355
One- to four-family residential		15		8,489		8,489
Consumer		2		291		291

		26	$	11,322	$	11,322

	Three Months Ended March 31, 2011
	Number of Contracts		Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment

Recorded Investment (1) (2)
Commercial real estate		2	$	2,011	$	2,011
Multifamily real estate		1		362		362
One- to four-family residential		1		267		267
Consumer		1		1		1

		5	$	2,641	$	2,641

(1)	Since most loans were already considered classified and/or on nonaccrual 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 three-month periods ended March 31, 2012 and 2011, 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):

	Three Months Ended March 31,
	2012		2011
Commercial real estate	$	2,382	$	1,520
Construction and land		--		174
One- to four-family residential		231		--
Consumer		85		77

Balance, end of period	$	2,698	$	1,771

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 or during the three months ended March 31, 2012.

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 which requires, however, 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 the Company’s portfolio of risk-rated loans and non-risk-rated loans by grade or other characteristics as of March 31, 2012 and December 31, 2011 (in thousands):

	March 31, 2012
	Commercial Real Estate			Multifamily Real Estate			Construction and Land			Commercial Business			Agricultural Business			One- to Four- Family Residential			Consumer			Total Loans

Risk-rated loans:
Pass (Risk Ratings 1-5) (1)		$	1,005,442		$	125,017		$	258,728		$	553,280		$	184,900		$	584,454		$	280,297		$	2,992,118
Special mention			24,970			--			2,923			13,668			1,181			772			380			43,894
Substandard			50,523			7,289			49,369			42,228			2,874			34,285			6,761			193,329
Doubtful						--			--			321			--			--			--			321
Loss						--			--			--			--			--			--			--

Total loans		$	1,080,935		$	132,306		$	311,020		$	609,497		$	188,955		$	619,511		$	287,438		$	3,229,662

Performing loans		$	1,070,394		$	132,306		$	292,419		$	599,376		$	187,474		$	597,998		$	284,782		$	3,164,749
Non-performing loans			10,541			--			18,601			10,121			1,481			21,513			2,656			64,913

Total loans		$	1,080,935		$	132,306		$	311,020		$	609,497		$	188,955		$	619,511		$	287,438		$	3,229,662

		December 31, 2011
	Commercial Real Estate			Multifamily Real Estate			Construction and Land			Commercial Business			Agricultural Business			One- to Four- Family Residential			Consumer			Total Loans

Risk-rated loans:
Pass (Risk Ratings 1-5) (1)		$	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			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)The Pass category includes some performing loans that are part of homogenous pools which are not individually risk-rated. This includes all consumer loans, all one- to four-family residential loans and, in the commercial business category, $60 million of small credit-scored business loans. As loans in these pools become non-performing, they are individually risk-rated.

The following tables provide additional detail on the age analysis of the Company’s past due loans as of March 31, 2012 and December 31, 2011 (in thousands):

	March 31, 2012
	30-59 Days Past Due			60-89 Days Past Due			Greater Than 90 Days Past Due			Total Past Due			Current			Total Loans			Loans 90 Days or More Past Due and Accruing

Commercial real estate		$	1,394		$	1,709		$	6,530		$	9,633		$	1,071,302		$	1,080,935		$	--
Multifamily real estate			5,000			54			--			5,054			127,252			132,306			--
Construction and land			637			104			13,695			14,436			296,584			311,020			--
Commercial business			2,083			503			4,531			7,117			602,380			609,497			--
Agricultural business			--			28			1,461			1,489			187,466			188,955			--
One-to four-family residential			623			1,475			15,283			17,381			602,130			619,511			2,129
Consumer			4,030			230			1,560			5,820			281,618			287,438			84

Total		$	13,767		$	4,103		$	43,060		$	60,930		$	3,168,732		$	3,229,662		$	2,213

	December 31, 2011
	30-59 Days Past Due			60-89 Days Past Due			Greater Than 90 Days 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 real estate			--			--			--			--			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			--
Agricultural business			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

The following tables provide additional information on the allowance for loan losses and loan balances individually and collectively evaluated for impairment as of March 31, 2012 and 2011 (in thousands):

	March 31, 2012
	Commercial Real Estate			Multifamily			Construction and Land			Commercial Business			Agricultural business			One- to Four- Family			Consumer			Commitments and Unallocated		Total
Allowance for loan losses:
Beginning balance	$	16,457		$	3,952		$	18,184		$	15,159		$	1,548		$	12,299		$	1,253		$	14,060	$	82,912
Provision for loan losses		1,335			(691	)		241			(865	)		614			1,531			719			2,116		5,000
Recoveries		614			--			370			236			--			5			136			--		1,361
Charge-offs		(1,323	)		--			(2,924	)		(1,407	)		(275	)		(966	)		(834	)		--		(7,729	)

Ending balance	$	17,083		$	3,261		$	15,871		$	13,123		$	1,887		$	12,869		$	1,274		$	16,176	$	81,544


Allowance individually evaluated for impairment	$	239		$	37		$	2,100		$	799		$	480		$	824		$	71		$	--	$	4,550
Allowance collectively evaluated for impairment		16,844			3,224			13,771			12,324			1,407			12,045			1,203			16,176		76,994

Total allowance for loan losses	$	17,083		$	3,261		$	15,871		$	13,123		$	1,887		$	12,869		$	1,274		$	16,176	$	81,544

	Commercial Real Estate		Multifamily		Construction and Land		Commercial Business		Agricultural business		One- to Four-Family		Consumer		Commitments and Unallocated		Total
Loan balances:
Loans individually evaluated for impairment	$	13,123	$	1,635	$	22,149	$	9,816	$	961	$	23,261	$	1,445	$	--	$	72,390
Loans collectively evaluated for impairment		1,067,812		130,671		288,871		599,681		187,994		596,250		285,993		--		3,157,272

Total loans	$	1,080,935	$	132,306	$	311,020	$	609,497	$	188,955	$	619,511	$	287,438	$	--	$	3,229,662

	March 31, 2011
	Commercial Real Estate			Multifamily			Construction and Land			Commercial Business			Agricultural business			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		1,081			2,519			7,727			(204	)		(282	)		4,477			(58	)		1,740		17,000
Recoveries		--			--			35			81			--			52			78			--		246
Charge-offs		(989	)		(427	)		(10,537	)		(2,368	)		(123	)		(2,209	)		(362	)		--		(17,015	)

Ending balance	$	11,871		$	6,055		$	30,346		$	22,054		$	1,441		$	8,149		$	1,452		$	16,264	$	97,632


Allowance individually evaluated for impairment	$	1,849		$	204		$	7,419		$	2,720		$	32		$	544		$	--		$	--	$	12,768
Allowance collectively evaluated for impairment		10,022			5,851			22,927			19,334			1,409			7,605			1,452			16,264		84,864

Total allowance for loan losses	$	11,871		$	6,055		$	30,346		$	22,054		$	1,441		$	8,149		$	1,452		$	16,264	$	97,632

	Commercial Real Estate		Multifamily		Construction and Land		Commercial Business		Agricultural business		One- to Four-Family		Consumer		Commitments and Unallocated		Total
Loan balances:
Loans individually evaluated for impairment	$	27,531	$	978	$	76,430	$	10,236	$	1,465	$	19,108	$	3,707	$	--	$	139,455
Loans collectively evaluated for impairment		1,058,629		146,591		299,311		566,892		187,291		646,288		281,623		--		3,186,625

Total loans	$	1,086,160	$	147,569	$	375,741	$	577,128	$	188,756	$	665,396	$	285,330	$	--	$	3,326,080