Loans Receivable (excluding Covered Loans)



	September 30, 2012				September 30, 2011
	(In thousands)				(In thousands)
Non-acquired loans
Single-family residential	$	5,778,922	73.5	%	$	6,218,878	74.9	%
Construction - speculative	129,637		1.6		140,459		1.7
Construction - custom	211,690		2.7		279,851		3.4
Land - acquisition & development	124,677		1.6		200,692		2.4
Land - consumer lot loans	141,844		1.8		163,146		2.0
Multi-family	710,140		9.0		700,673		8.4
Commercial real estate	319,210		4.1		303,442		3.7
Commercial & industrial	162,823		2.1		109,332		1.3
HELOC	112,902		1.4		115,092		1.4
Consumer	63,374		0.8		67,509		0.8
Total non-acquired loans	7,755,219		98.6		8,299,074		100
Credit-impaired acquired loans
Single-family residential	342		—		—		—
Construction - speculative	1,889		—		—		—
Construction - custom	—		—		—		—
Land - acquisition & development	3,702		0.1		—		—
Land - consumer lot loans	—		—		—		—
Multi-family	601		—		—		—
Commercial real estate	87,154		1.1		—		—
Commercial & industrial	3,292		—		—		—
HELOC	14,040		0.2		—		—
Consumer	97		—		—		—
Total credit-impaired acquired loans	111,117		1.4		—		—
Total loans
Single-family residential	5,779,264		73.5		6,218,878		74.9
Construction - speculative	131,526		1.6		140,459		1.7
Construction - custom	211,690		2.7		279,851		3.4
Land - acquisition & development	128,379		1.7		200,692		2.4
Land - consumer lot loans	141,844		1.8		163,146		2
Multi-family	710,741		9.0		700,673		8.4
Commercial real estate	406,364		5.2		303,442		3.7
Commercial & industrial	166,115		2.1		109,332		1.3
HELOC	126,942		1.6		115,092		1.4
Consumer	63,471		0.8		67,509		0.8
Total loans	7,866,336		100	%	8,299,074		100	%
Less:
Allowance for probable losses	133,147				157,160
Loans in process	213,286				170,229
Discount on acquired loans	33,484				—
Deferred net origination fees	34,421				35,808
	414,338				363,197
	$	7,451,998			$	7,935,877

The Company originates fixed and adjustable interest rate loans, which at September 30, 2012 consisted of the following:



Fixed-Rate			Adjustable-Rate
Term To Maturity	Book Value		Term To Rate Adjustment	Book Value
	(In thousands)			(In thousands)
Within 1 year	$	259,208	Less than 1 year	$	164,682
1 to 3 years	151,418		1 to 3 years	237,263
3 to 5 years	197,642		3 to 5 years	155,987
5 to 10 years	337,819		5 to 10 years	444,389
10 to 20 years	943,963		10 to 20 years	54,017
Over 20 years	4,603,237		Over 20 years	316,711
	$	6,493,287		$	1,373,049

Gross loans by geographic concentration were as follows:



September 30, 2012	Single - family residential		Multi- family		Land - A & D		Land - lot loans		Construction - custom		Construction - speculative		Commercial real estate		Commercial and industrial		Consumer		HELOC		Total
	(In thousands)
Washington	$	2,604,501	$	237,687	$	62,052	$	71,576	$	127,669	$	78,446	$	232,756	$	78,026	$	60,226	$	71,271	$	3,624,210
Oregon	907,462		289,289		12,401		28,023		34,983		19,014		5,849		10		—		7,555		1,304,586
Other	339,226		4,464		—		105		—		—		4,014		79,344		3,209		476		430,838
Idaho	401,987		24,517		4,982		13,800		4,975		11,242		610		86		—		4,748		466,947
Arizona	619,503		66,257		15,605		12,065		21,051		9,597		93,654		5,240		—		21,672		864,644
Utah	469,741		53,707		12,411		9,643		16,103		3,177		482		37		—		6,528		571,829
New Mexico	179,252		19,211		17,682		3,966		3,105		8,804		56,672		3,372		36		14,398		306,498
Texas	145,304		11,236		3,246		1,306		1,804		1,246		12,327		—		—		—		176,469
Nevada	112,288		4,373		—		1,360		2,000		—		—		—		—		294		120,315
	$	5,779,264	$	710,741	$	128,379	$	141,844	$	211,690	$	131,526	$	406,364	$	166,115	$	63,471	$	126,942	$	7,866,336



PERCENTAGE BY GEOGRAPHIC AREA
September 30, 2012	Single - family residential		Multi- family		Land - A & D		Land - lot loans		Construction - custom		Construction - speculative		Commercial real estate		Commercial and industrial		Consumer		HELOC		Total
	As % of total gross loans
Washington	33.2	%	3.0	%	0.7	%	0.8	%	1.7	%	1.2	%	2.9	%	1.0	%	0.8	%	0.8	%	46.1	%
Oregon	11.5		3.7		0.2		0.4		0.4		0.2		0.1		—		—		0.1		16.6
Other	4.3		0.1		—		—		—		—		0.1		1.0		—		—		5.5
Idaho	5.1		0.3		0.1		0.2		0.1		0.1		—		—		—		0.1		6.0
Arizona	7.9		0.8		0.2		0.2		0.3		0.1		1.2		0.1		—		0.3		11.1
Utah	6.0		0.7		0.2		0.1		0.2		—		—		—		—		0.1		7.3
New Mexico	2.3		0.2		0.2		0.1		—		0.1		0.7		—		—		0.2		3.8
Texas	1.8		0.1		—		—		—		—		0.2		—		—		—		2.1
Nevada	1.4		0.1		—		—		—		—		—		—		—		—		1.5
	73.5	%	9.0	%	1.6	%	1.8	%	2.7	%	1.7	%	5.2	%	2.1	%	0.8	%	1.6	%	100.0	%



PERCENTAGE BY GEOGRAPHIC AREA AS A % OF EACH LOAN TYPE
September 30, 2012	Single - family residential		Multi- family		Land - A & D		Land - lot loans		Construction - custom		Construction - speculative		Commercial real estate		Commercial and industrial		Consumer		HELOC
As % of total gross loans
Washington	45.1	%	33.5	%	48.2	%	50.4	%	60.3	%	59.7	%	57.4	%	46.9	%	94.8	%	56.2	%
Oregon	15.7		40.7		9.7		19.8		16.5		14.5		1.4		—		—		6.0
Other	5.9		0.6		—		0.1		—		—		1.0		47.8		5.1		0.4
Idaho	7.0		3.4		3.9		9.7		2.4		8.5		0.2		0.1		—		3.7
Arizona	10.7		9.3		12.2		8.5		9.9		7.3		23.0		3.2		—		17.1
Utah	8.1		7.6		9.7		6.8		7.6		2.4		0.1		—		—		5.1
New Mexico	3.1		2.7		13.8		2.8		1.5		6.7		13.9		2.0		0.1		11.3
Texas	2.5		1.6		2.5		0.9		0.9		0.9		3.0		—		—		—
Nevada	1.9		0.6		—		1.0		0.9		—		—		—		—		0.2
	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

The following table provides additional information on impaired loans, loan commitments and loans serviced for others:



	September 30, 2012		September 30, 2011
	(In thousands)
Recorded investment in impaired loans	$	565,553	$	476,822
Impaired loans with allocated reserves	44,167		123,862
Reserves on impaired loans	15,983		41,912
Average balance of impaired loans	523,363		486,665
Interest income from impaired loans	28,366		28,081
Outstanding fixed-rate origination commitments	151,990		67,542
Loans serviced for others	58,673		102,775

The following table sets forth information regarding non-accrual loans held by the Company:



	September 30, 2012				September 30, 2011
	(In thousands)				(In thousands)
Non-accrual loans:
Single-family residential	$	131,193	75.7	%	$	126,624	60.3	%
Construction - speculative	10,634		6.1		15,383		7.3
Construction - custom	539		0.3		635		0.3
Land - acquisition & development	13,477		7.8		37,339		17.7
Land - consumer lot loans	5,149		3.0		8,843		4.2
Multi-family	4,185		2.4		7,664		3.6
Commercial real estate	7,653		4.4		11,380		5.4
Commercial & industrial	16		—		1,679		0.8
HELOC	198		0.1		481		0.2
Consumer	383		0.2		437		0.2
Total non-accrual loans	$	173,427	100	%	$	210,465	100	%

The following tables provide an analysis of the age of loans in past due status :



September 30, 2012	Amount of Loans		Days Delinquent Based on $ Amount of Loans										% based on $
Type of Loan	Net of LIP & Chg.-Offs		Current		30		60		90		Total		% based on $
	(In thousands)
Non-acquired loans
Single-Family Residential	$	5,776,002	$	5,618,261	$	34,035	$	16,276	$	107,430	$	157,741	2.73	%
Construction - Speculative	88,849		85,785		142		190		2,732		3,064		3.45
Construction - Custom	107,882		107,215		128		—		539		667		0.62
Land - Acquisition & Development	119,192		106,321		853		1,004		11,014		12,871		10.80
Land - Consumer Lot Loans	141,772		134,560		1,688		375		5,149		7,212		5.09
Multi-Family	676,917		672,263		718		67		3,869		4,654		0.69
Commercial Real Estate	292,261		284,427		699		3,153		3,982		7,834		2.68
Commercial & Industrial	162,802		162,778		8		—		16		24		0.01
HELOC	112,902		112,482		158		64		198		420		0.37
Consumer	63,374		61,405		1,155		431		383		1,969		3.11
Total non-acquired loans	7,541,953		7,345,497		39,584		21,560		135,312		196,456		2.60	%

Credit-impaired acquired loans
Single-Family Residential	342		342		—		—		—		—		—	%
Construction - Speculative	1,889		1,889		—		—		—		—		—
Construction - Custom	—		—		—		—		—		—		—
Land - Acquisition & Development	3,702		3,219		365		—		118		483		13.05
Land - Consumer Lot Loans	—		—		—		—		—		—		—
Multi-Family	601		—		601		—		—		601		100.00
Commercial Real Estate	87,134		78,959		412		2,549		5,214		8,175		9.38
Commercial & Industrial	3,292		3,054		238		—		—		238		7.23
HELOC	14,040		13,950		—		90		—		90		0.64
Consumer	97		95		2		—		—		2		2.06
Total credit-impaired acquired loans	111,097		101,508		1,618		2,639		5,332		9,589		8.63	%

Total loans	$	7,653,050	$	7,447,005	$	41,202	$	24,199	$	140,644	$	206,045	2.69	%

Most loans restructured in troubled debt restructurings ("TDRs") are accruing and performing loans where the borrower has proactively approached the Company about modifications due to temporary financial difficulties. Each request is individually evaluated for merit and likelihood of success. The concession for these loans is typically a payment reduction through a rate reduction of from 100 to 200 bps for a specific term, usually six to twelve months. Interest-only payments may also be approved during the modification period. Principal forgiveness is not an available option for restructured loans. As of September 30, 2012 single-family residential loans comprised 83% of restructured loans.

The Bank reserves for restructured loans within its allowance for loan loss methodology by taking into account the following performance indicators: 1) time since modification, 2) current payment status and 3) geographic area.

The following tables provides information related to loans that were restructured:



	September 30, 2012					September 30, 2011
		Pre-Modification		Post-Modification			Pre-Modification		Post-Modification
		Outstanding		Outstanding			Outstanding		Outstanding
	Number of	Recorded		Recorded		Number of	Recorded		Recorded
	Contracts	Investment		Investment		Contracts	Investment		Investment
		(In thousands)					(In thousands)
Troubled Debt Restructurings:
Single-Family Residential	787	$	183,548	$	183,548	681	$	177,216	$	177,216
Construction - Speculative	24	6,703		6,703		12	2,499		2,499
Construction - Custom	1	1,196		1,196		—	—		—
Land - Acquisition & Development	26	5,489		5,489		3	3,909		3,909
Land - Consumer Lot Loans	38	5,237		5,237		62	8,745		8,745
Multi-Family	4	3,104		3,104		9	10,360		10,360
Commercial Real Estate	4	6,224		6,224		—	—		—
Commercial & Industrial	—	—		—		—	—		—
HELOC	5	707		707		1	99		99
Consumer	—	—		—		—	—		—
	889	$	212,208	$	212,208	768	$	202,828	$	202,828



	September 30, 2012			September 30, 2011
	Number of	Recorded		Number of	Recorded
	Contracts	Investment		Contracts	Investment
		(In thousands)			(In thousands)
Troubled Debt Restructurings That Subsequently Defaulted:
Single-Family Residential	123	$	24,431	103	$	27,878
Construction - Speculative	—	—		—	—
Construction - Custom	—	—		—	—
Land - Acquisition & Development	—	—		5	779
Land - Consumer Lot Loans	12	1,402		—	—
Multi-Family	—	—		1	983
Commercial Real Estate	—	—		—	—
Commercial & Industrial	—	—		—	—
HELOC	—	—		—	—
Consumer	—	—		—	—
	135	$	25,833	109	$	29,640

The excess of cash flows expected to be collected over the initial fair value of acquired impaired loans is referred to as the accretable yield and is accreted into interest income over the estimated life of the acquired loans using the effective yield method. Other adjustments to the accretable yield include changes in the estimated remaining life of the acquired loans, changes in expected cash flows and changes of indices for acquired loans with variable interest rates.

The following table shows the changes in accretable yield for acquired impaired loans for the years ended September 30, 2012 and 2011:



	September 30, 2012						September 30, 2011
	Accretable Yield			Carrying Amount of Loans			Accretable Yield		Carrying Amount of Loans
	(In thousands)
Balance at beginning of period	$	—		$	—		$	—	$	—
Additions	21,384			93,691			—		—
Reclassification from nonaccretable balance, net	—			—			—		—
Accretion	(4,456		)	4,456			—		—
Transfers to REO	—			(2,616		)	—		—
Payments received, net	—			(17,918		)	—		—
Balance at end of period	$	16,928		$	77,613		$	—	$	—

The following table shows loans acquired during 2012 and 2011 for which it was probable at acquisition that all contractually required payments would not be collected:



	Western National Bank
	December 16, 2011
Contractually required payments of interest and principal	$	171,515
Nonaccretable difference	(56,440		)
Cash flows expected to be collected (1)	115,075
Accretable yield	(21,384		)
Carrying value of acquired loans	$	93,691
(1) Represents undiscounted expected principal and interest cash flows