LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Tables)

3 Months Ended

Mar. 31, 2015

Schedule of Loans Receivable, Including Loans Held for Sale

Loans receivable, including loans held for sale, at March 31, 2015 and December 31, 2014 are summarized as follows (dollars in thousands):



	March 31, 2015					December 31, 2014
	Amount			Percent of Total		Amount			Percent of Total
Commercial real estate:
Owner-occupied	$	627,531		15.3	%	$	546,783		14.3	%
Investment properties	936,693			22.8		856,942			22.3
Multifamily real estate	208,687			5.1		167,524			4.4
Commercial construction	30,434			0.7		17,337			0.4
Multifamily construction	56,201			1.4		60,193			1.6
One- to four-family construction	228,224			5.5		219,889			5.7
Land and land development:
Residential	98,930			2.4		102,435			2.7
Commercial	17,174			0.4		11,152			0.3
Commercial business	776,579			18.9		723,964			18.9
Agricultural business, including secured by farmland	208,635			5.1		238,499			6.2
One- to four-family residential	552,423			13.4		539,894			14.1
Consumer:
Consumer secured by one- to four-family	233,643			5.7		222,205			5.8
Consumer-other	139,664			3.3		127,003			3.3
Total loans outstanding	4,114,818			100.0	%	3,833,820			100.0	%
Less allowance for loan losses	(75,365		)			(75,907		)
Net loans	$	4,039,453				$	3,757,913

Loan amounts are net of unearned loan fees in excess of unamortized costs of $10.6 million as of March 31, 2015 and $5.8 million as of December 31, 2014. Net loans include net discounts on acquired loans of $5.0 million and $148,000 as of March 31, 2015 and December 31, 2014, respectively.

Schedule of Loans Receivable by Geographic Location

The Company’s total loans by geographic concentration at March 31, 2015 were as follows (dollars in thousands):



	Washington			Oregon			Idaho			Other			Total
Commercial real estate:
Owner-occupied	$	392,416		$	158,137		$	56,696		$	20,282		$	627,531
Investment properties	527,257			184,038			60,160			165,238			936,693
Multifamily real estate	119,166			74,536			14,672			313			208,687
Commercial construction	26,783			1,663			1,988			—			30,434
Multifamily construction	47,857			6,990			1,354			—			56,201
One- to four-family construction	130,366			95,262			2,596			—			228,224
Land and land development:
Residential	53,476			43,737			1,042			675			98,930
Commercial	6,194			8,164			2,816			—			17,174
Commercial business	429,680			144,751			82,825			119,323			776,579
Agricultural business, including secured by farmland	108,464			59,837			40,292			42			208,635
One- to four-family residential	336,332			189,572			25,778			741			552,423
Consumer:
Consumer secured by one- to four-family	142,461			74,669			15,499			1,014			233,643
Consumer—other	83,021			50,042			6,222			379			139,664
Total loans	$	2,403,473		$	1,091,398		$	311,940		$	308,007		$	4,114,818
Percent of total loans	58.4		%	26.5		%	7.6		%	7.5		%	100.0		%

Schedule of Land and Land Development Loans Receivable by State

The geographic concentrations of the Company’s land and land development loans by state at March 31, 2015 were as follows (dollars in thousands):



	Washington			Oregon			Idaho			Other			Total
Residential:
Acquisition and development	$	29,923		$	25,033		$	910		$	—		$	55,866
Improved land and lots	20,511			15,114			141			675			36,441
Unimproved land	3,034			3,589			—			—			6,623
Commercial:
Improved land and lots	3,414			5,865			1,781			—			11,060
Unimproved land	2,780			2,299			1,035			—			6,114
Total land and land development loans	$	59,662		$	51,900		$	3,867		$	675		$	116,104
Percent of land and land development loans	51.4		%	44.7		%	3.3		%	0.6		%	100.0		%

Schedule of Adjustable and Fixed Rate Loans by Contractual Maturity Date

The Company originates both adjustable- and fixed-rate loans. The maturity and repricing composition of those loans, less undisbursed amounts and deferred fees and origination costs, at March 31, 2015 and December 31, 2014 were as follows (in thousands):



	March 31, 2015		December 31, 2014
Fixed-rate (term to maturity):
Maturing in one year or less	$	145,752	$	115,571
Maturing after one year through three years	193,168		184,707
Maturing after three years through five years	192,141		180,449
Maturing after five years through ten years	251,516		240,742
Maturing after ten years	611,185		572,793
Total fixed-rate loans	1,393,762		1,294,262
Adjustable-rate (term to rate adjustment):
Maturing or repricing in one year or less	1,509,680		1,468,316
Maturing or repricing after one year through three years	527,346		416,433
Maturing or repricing after three years through five years	595,531		566,371
Maturing or repricing after five years through ten years	87,572		87,506
Maturing or repricing after ten years	927		932
Total adjustable-rate loans	2,721,056		2,539,558
Total loans	$	4,114,818	$	3,833,820

Schedule of Trouble Debt Restructuring, Changes in Accretable Yield

The following table presents the changes in the accretable yield for purchased credit-impaired loans for the three months ended March 31, 2015 and 2014 (in thousands):



	Three Months Ended March 31
	2015			2014
Balance, beginning of period	$	—		$	—
Additions	2,239			—
Accretion to interest income	(35		)	—
Disposals	—			—
Reclassifications from non-accretable difference	—			—
Balance, end of period	$	2,204		$	—

Schedule of Impaired Loans and Related Allocated Reserve for Loan Losses

The amount of impaired loans, including purchased credit-impaired loans, and the related allocated reserve for loan losses as of March 31, 2015 and December 31, 2014 were as follows (in thousands):



	March 31, 2015				December 31, 2014
	Loan Amount		Allocated Reserves		Loan Amount		Allocated Reserves
Impaired loans:
Nonaccrual loans
Commercial real estate:
Owner-occupied	$	3,734	$	35	$	1,365	$	20
Investment properties	407		66		32		5
Multifamily real estate	578		—		—		—
One- to four-family construction	1,388		—		—		—
Land and land development:
Residential	1,265		—		1,275		—
Commercial	4,870		—		—		—
Commercial business	418		44		537		46
Agricultural business, including secured by farmland	1,566		66		1,597		26
One- to four-family residential	7,111		15		8,507		35
Consumer:
Consumer secured by one- to four-family	951		38		838		47
Consumer—other	892		—		411		—
Total nonaccrual loans	23,180		264		14,562		179

Loans 90 days or more past due and still accruing
Commercial real estate:
One- to four-family residential	1,548		10		2,095		10
Consumer:
Consumer secured by one- to four-family	6		—		80		—
Consumer—other	1		—		—		—
Total loans 90 days or more past due and still accruing	1,555		10		2,175		10

Troubled debt restructuring on accrual status:
Commercial real estate:
Owner-occupied	183		4		184		4
Investment properties	5,981		640		6,021		724
Multifamily real estate	781		83		786		86
One- to four-family construction	2,772		454		3,923		640
Land and land development:
Residential	1,279		354		1,279		346
Commercial business	724		78		739		82
Agricultural business, including secured by farmland	289		3		—		—
One- to four-family residential	15,127		916		15,792		987
Consumer:
Consumer secured by one- to four-family	232		24		233		28
Consumer—other	190		6		197		6
Total troubled debt restructurings on accrual status	27,558		2,562		29,154		2,903
Total impaired loans	$	52,293	$	2,836	$	45,891	$	3,092

As of March 31, 2015 and December 31, 2014, the Company had commitments to advance funds related to TDRs up to additional amounts of $587,000 and $2.1 million, respectively.

Schedule of Impaired Loans With and Without Specific Reserves

The following tables provide additional information on impaired loans with and without specific allowance reserves at or for the three months ended March 31, 2015 and at or for the year ended December 31, 2014 (in thousands):



	At or For the Three Months Ended March 31, 2015
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
Without a specific allowance reserve ⁽¹⁾
Commercial real estate:
Owner-occupied	$	940	$	990	$	34	$	946	$	—
Investment properties	407		407		66		495		—
Commercial business	418		631		44		443		—
Agricultural business/farmland	1,566		2,192		66		2,032		—
One- to four-family residential	7,750		8,407		16		7,764		6
Consumer:
Consumer secured by one- to four-family	824		899		3		842		—
Consumer—other	303		313		—		307		—
	12,208		13,839		229		12,829		6
With a specific allowance reserve ⁽²⁾
Commercial real estate:
Owner-occupied	2,977		2,977		3		1,752		3
Investment properties	5,981		6,386		641		5,995		77
Multifamily real estate	1,359		1,359		84		975		11
One- to-four family construction	4,160		4,197		454		3,097		31
Land and land development:
Residential	2,543		3,698		354		2,547		16
Commercial	4,870		5,445		—		1,624		—
Commercial business	725		725		78		729		9
Agricultural business/farmland	289		289		3		285		5
One- to four-family residential	16,036		16,799		925		16,261		198
Consumer:
Consumer secured by one- to four-family	365		365		59		367		3
Consumer—other	780		915		6		466		4
	40,085		43,155		2,607		34,098		357
Total
Commercial real estate:
Owner-occupied	3,917		3,967		37		2,698		3
Investment properties	6,388		6,793		707		6,490		77
Multifamily real estate	1,359		1,359		84		975		11
One- to four-family construction	4,160		4,197		454		3,097		31
Land and land development:
Residential	2,543		3,698		354		2,547		16
Commercial	4,870		5,445		—		1,624		—
Commercial business	1,143		1,356		122		1,172		9
Agricultural business/farmland	1,855		2,481		69		2,317		5
One- to four-family residential	23,786		25,206		941		24,025		204
Consumer:
Consumer secured by one- to four-family	1,189		1,264		62		1,209		3
Consumer—other	1,083		1,228		6		773		4
	$	52,293	$	56,994	$	2,836	$	46,927	$	363



	At or For the Year Ended December 31, 2014
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
Without a specific allowance reserve ⁽¹⁾
Commercial real estate:
Owner-occupied	$	399	$	449	$	20	$	526	$	—
Investment properties	32		32		5		44		—
Commercial business	537		763		46		566		—
Agricultural business/farmland	853		853		26		1,122		—
One- to four-family residential	8,546		9,244		18		7,284		29
Consumer:
Consumer secured by one- to four-family	783		888		11		838		3
Consumer—other	295		305		—		270		—
	11,445		12,534		126		10,650		32
With a specific allowance reserve ⁽²⁾
Commercial real estate:
Owner-occupied	1,149		1,149		4		1,315		12
Investment properties	6,022		6,426		724		6,101		315
Multifamily real estate	786		786		86		795		45
One- to-four family construction	3,923		3,923		640		2,655		118
Land and land development:
Residential	2,554		3,710		346		2,872		89
Commercial business	739		739		82		762		41
Agricultural business/farmland	744		744		—		744		—
One- to four-family residential	17,848		18,611		1,014		18,809		841
Consumer:
Consumer secured by one- to four-family	368		368		64		410		16
Consumer—other	313		329		6		327		19
	34,446		36,785		2,966		34,790		1,496
Total
Commercial real estate
Owner-occupied	1,548		1,598		24		1,841		12
Investment properties	6,054		6,458		729		6,145		315
Multifamily real estate	786		786		86		795		45
One- to four-family construction	3,923		3,923		640		2,655		118
Land and land development
Residential	2,554		3,710		346		2,872		89
Commercial business	1,276		1,502		128		1,328		41
Agricultural business/farmland	1,597		1,597		26		1,866		—
One- to four-family residential	26,394		27,855		1,032		26,093		870
Consumer
Consumer secured by one- to four-family	1,151		1,256		75		1,248		19
Consumer—other	608		634		6		597		19
	$	45,891	$	49,319	$	3,092	$	45,440	$	1,528


⁽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 less costs to sell 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.

Schedule of Troubled Debt Restructurings

The following tables present TDRs at March 31, 2015 and December 31, 2014 (in thousands):



	March 31, 2015
	Accrual Status		Nonaccrual Status		Total TDRs
Commercial real estate:
Owner-occupied	$	183	$	108	$	291
Investment properties	5,981		26		6,007
Multifamily real estate	781		—		781
One- to four-family construction	2,772		—		2,772
Land and land development:
Residential	1,279		514		1,793
Commercial business	724		82		806
Agricultural business, including secured by farmland	289		—		289
One- to four-family residential	15,127		1,404		16,531
Consumer:
Consumer secured by one- to four-family	232		115		347
Consumer—other	190		116		306
	$	27,558	$	2,365	$	29,923



	December 31, 2014
	Accrual Status		Nonaccrual Status		Total TDRs
Commercial real estate:
Owner-occupied	$	183	$	109	$	292
Investment properties	6,021		32		6,053
Multifamily real estate	786		—		786
One- to four-family construction	3,923		—		3,923
Land and land development:
Residential	1,279		525		1,804
Commercial business	739		87		826
One- to four-family residential	15,793		1,363		17,156
Consumer:
Consumer secured by one- to four-family	233		117		350
Consumer—other	197		116		313
	$	29,154	$	2,349	$	31,503

Schedule of Newly Restructured Loans

The following tables present new TDRs that occurred during the three months ended March 31, 2015 and 2014 (dollars in thousands):



	Three Months Ended March 31, 2015
	Number of Contracts	Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
Recorded Investment ^{(1) (2)}
One- to four-family construction	2	592		592
Agricultural business/farmland	2	288		288
	4	$	880	$	880

	Three Months Ended March 31, 2014
	Number of Contracts	Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
Recorded Investment ^{(1) (2)}
Commercial real estate
Owner-occupied	1	$	94	$	94
Commercial business	1	100		100
	2	$	194	$	194


⁽¹⁾	Since these 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.

Schedule of Troubled Debt Restructurings Which Incurred A Payment Default

TDRs which incurred a payment default within twelve months of the restructure date during the three-month periods ended March 31, 2015 and 2014. A default on a TDR results in either a transfer to nonaccrual status or a partial charge-off.

Schedule of the Company's Portfolio of Risk-Rated Loans and Non-Risk Rated Loans by Grade and Other Characteristics

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, 2015 and December 31, 2014 (in thousands):



	March 31, 2015
	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⁾	$	1,533,181	$	206,791	$	410,039	$	742,040	$	199,436	$	540,693	$	369,465	$	4,001,645
Special mention	5,156		—		—		26,776		818		691		219		33,660
Substandard	25,887		1,896		20,924		7,763		8,381		11,039		3,611		79,501
Doubtful	—		—		—		—		—		—		12		12
Total loans	$	1,564,224	$	208,687	$	430,963	$	776,579	$	208,635	$	552,423	$	373,307	$	4,114,818

Performing loans	$	1,560,083	$	208,109	$	423,441	$	776,161	$	207,069	$	543,764	$	371,456	$	4,090,083
Non-performing loans ⁽²⁾	4,141		578		7,522		418		1,566		8,659		1,851		24,735
Total loans	$	1,564,224	$	208,687	$	430,963	$	776,579	$	208,635	$	552,423	$	373,307	$	4,114,818

	December 31, 2014
	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⁾	$	1,375,885	$	166,712	$	395,356	$	691,143	$	234,101	$	527,384	$	346,456	$	3,737,037
Special mention	3,717		—		—		27,453		1,055		63		140		32,428
Substandard	24,123		812		15,650		5,368		3,343		12,447		2,601		64,344
Doubtful	—		—		—		—		—		—		11		11
Total loans	$	1,403,725	$	167,524	$	411,006	$	723,964	$	238,499	$	539,894	$	349,208	$	3,833,820

Performing loans	$	1,402,328	$	167,524	$	409,731	$	723,427	$	236,902	$	529,292	$	347,879	$	3,817,083
Non-performing loans ⁽²⁾	1,397		—		1,275		537		1,597		10,602		1,329		16,737
Total loans	$	1,403,725	$	167,524	$	411,006	$	723,964	$	238,499	$	539,894	$	349,208	$	3,833,820

⁽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, as of March 31, 2015 and December 31, 2014, in the commercial business category, $120 million and $115 million, respectively, of credit-scored small business loans. As loans in these pools become non-performing, they are individually risk-rated.


⁽²⁾	Non-performing loans include non-accrual loans and loans past due greater than 90 days and on accrual status.

Schedule of Age Analysis of the Company's Past Due Loans

The following tables provide additional detail on the age analysis of the Company’s past due loans as of March 31, 2015 and December 31, 2014 (in thousands):



	March 31, 2015
	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans		Loans 90 Days or More Past Due and Accruing
Commercial real estate:
Owner-occupied	$	2,254	$	1,589	$	815	$	4,658	$	622,873	$	627,531	$	—
Investment properties	—		—		910		910		935,783		936,693		—
Multifamily real estate	—		—		578		578		208,109		208,687		—
Commercial construction	—		—		—		—		30,434		30,434		—
Multifamily construction	—		—		—		—		56,201		56,201		—
One-to-four-family construction	1,494		—		—		1,494		226,730		228,224		—
Land and land development:
Residential	—		—		750		750		98,180		98,930		—
Commercial	—		—		1,225		1,225		15,949		17,174		—
Commercial business	350		63		—		413		776,166		776,579		—
Agricultural business, including secured by farmland	803		395		1,021		2,219		206,416		208,635		—
One- to four-family residential	897		943		5,279		7,119		545,304		552,423		1,548
Consumer:
Consumer secured by one- to four-family	431		103		121		655		232,988		233,643		6
Consumer—other	378		86		697		1,161		138,503		139,664		1
Total	$	6,607	$	3,179	$	11,396	$	21,182	$	4,093,636	$	4,114,818	$	1,555



	December 31, 2014
	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans		Loans 90 Days or More Past Due and Accruing
Commercial real estate:
Owner-occupied	$	—	$	1,984	$	—	$	1,984	$	544,799	$	546,783	$	—
Investment properties	639		—		—		639		856,303		856,942		—
Multifamily real estate	—		—		—		—		167,524		167,524		—
Commercial construction	—		—		—		—		17,337		17,337		—
Multifamily construction	—		—		—		—		60,193		60,193		—
One-to-four-family construction	840		—		—		840		219,049		219,889		—
Land and land development:
Residential	759		—		750		1,509		100,926		102,435		—
Commercial	—		—		—		—		11,152		11,152		—
Commercial business	775		35		100		910		723,054		723,964		—
Agricultural business, including secured by farmland	597		466		744		1,807		236,692		238,499		—
One-to four-family residential	877		1,623		7,526		10,026		529,868		539,894		2,095
Consumer:
Consumer secured by one- to four-family	59		60		139		258		221,947		222,205		80
Consumer—other	491		88		293		872		126,131		127,003		—
Total	$	5,037	$	4,256	$	9,552	$	18,845	$	3,814,975	$	3,833,820	$	2,175

Allowance for Credit Losses on Financing Receivables

The following tables provide additional information on the allowance for loan losses and loan balances individually and collectively evaluated for impairment at or for the three months ended March 31, 2015 and 2014 (in thousands):



	For the Three Months Ended March 31, 2015
	Commercial Real Estate		Multifamily Real Estate			Construction and Land		Commercial Business			Agricultural Business			One- to Four-Family Residential			Consumer			Unallocated			Total
Allowance for loan losses:
Beginning balance	$	18,784	$	4,562		$	23,545	$	12,043		$	2,821		$	8,447		$	483		$	5,222		$	75,907
Provision for loan losses	305		(161		)	745		778			1,434			(237		)	245			(3,109		)	—
Recoveries	14		—			108		178			295			6			46			—			647
Charge-offs	—		—			—		(107		)	(818		)	(75		)	(189		)	—			(1,189		)
Ending balance	$	19,103	$	4,401		$	24,398	$	12,892		$	3,732		$	8,141		$	585		$	2,113		$	75,365



	March 31, 2015
	Commercial Real Estate		Multifamily Real Estate		Construction and Land		Commercial Business		Agricultural Business		One- to Four-Family Residential		Consumer		Unallocated		Total
Allowance individually evaluated for impairment	$	643	$	84	$	808	$	78	$	3	$	925	$	65	$	—	$	2,606
Allowance collectively evaluated for impairment	18,460		4,317		23,590		12,814		3,729		7,216		520		2,113		72,759
Total allowance for loan losses	$	19,103	$	4,401	$	24,398	$	12,892	$	3,732	$	8,141	$	585	$	2,113	$	75,365



Loan balances:
Loans individually evaluated for impairment	$	8,958	$	1,359	$	11,573	$	725	$	289	$	16,036	$	1,145	$	—	$	40,085
Loans collectively evaluated for impairment	1,550,691		207,328		419,390		775,854		208,346		535,295		372,155		—		4,069,059
Loans acquired with deteriorated credit quality	4,575		—		—		—		—		1,092		7		—		5,674
Total loans	$	1,564,224	$	208,687	$	430,963	$	776,579	$	208,635	$	552,423	$	373,307	$	—	$	4,114,818



	For the Three Months Ended March 31, 2014
	Commercial Real Estate			Multifamily Real Estate		Construction and Land		Commercial Business			Agricultural Business			One- to Four-Family Residential			Consumer			Unallocated			Total
Allowance for loan losses:
Beginning balance	$	16,759		$	5,306	$	17,640	$	11,773		$	2,841		$	11,486		$	1,335		$	7,118		$	74,258
Provision for loan losses	595			346		748		35			(555		)	(382		)	(532		)	(255		)	—
Recoveries	296			—		232		293			350			188			282			—			1,641
Charge-offs	(238		)	—		—		(738		)	—			(379		)	(173		)	—			(1,528		)
Ending balance	$	17,412		$	5,652	$	18,620	$	11,363		$	2,636		$	10,913		$	912		$	6,863		$	74,371



	March 31, 2014
	Commercial Real Estate		Multifamily Real Estate		Construction and Land		Commercial Business		Agricultural Business		One- to Four-Family Residential		Consumer		Unallocated		Total
Allowance individually evaluated for impairment	$	574	$	1,059	$	1,521	$	159	$	—	$	1,292	$	88	$	—	$	4,693
Allowance collectively evaluated for impairment	16,838		4,593		17,099		11,204		2,636		9,621		824		6,863		69,678
Loans acquired with deteriorated credit quality
Total allowance for loan losses	$	17,412	$	5,652	$	18,620	$	11,363	$	2,636	$	10,913	$	912	$	6,863	$	74,371



Loan balances:
Loans individually evaluated for impairment	$	10,063	$	5,726	$	10,133	$	1,040	$	—	$	24,959	$	1,088	$	—	$	53,009
Loans collectively evaluated for impairment	1,241,036		147,277		368,641		715,506		208,817		492,662		295,964		—		3,469,903
Total loans	$	1,251,099	$	153,003	$	378,774	$	716,546	$	208,817	$	517,621	$	297,052	$	—	$	3,522,912