Loans Receivable (excluding Covered Loans)



	September 30, 2013				September 30, 2012
	(In thousands)				(In thousands)
Non-acquired loans
Single-family residential	$	5,359,149	67.1	%	$	5,778,922	73.5	%
Construction - speculative	130,778		1.6		129,637		1.6
Construction - custom	302,722		3.8		211,690		2.7
Land - acquisition & development	77,775		1.1		124,677		1.6
Land - consumer lot loans	121,671		1.5		141,844		1.8
Multi-family	831,684		10.4		710,140		9.0
Commercial real estate	414,961		5.1		319,210		4.1
Commercial & industrial	243,199		3.0		162,823		2.1
HELOC	112,186		1.4		112,902		1.4
Consumer	47,141		0.6		63,374		0.8
Total non-acquired loans	7,641,266		95.6		7,755,219		98.6

Acquired loans
Single-family residential	$	14,468	0.2	%	$	—	—	%
Construction - speculative	—		—		—		—
Construction - custom	—		—		—		—
Land - acquisition & development	1,489		—		—		—
Land - consumer lot loans	3,313		—		—		—
Multi-family	3,914		0.1		—		—
Commercial real estate	133,423		1.7		—		—
Commercial & industrial	75,326		0.9		—		—
HELOC	10,179		0.1		—		—
Consumer	8,267		0.1		—		—
Total acquired loans	250,379		3.1		—		—

Credit-impaired acquired loans
Single-family residential	333		—		342		—
Construction - speculative	—		—		1,889		—
Construction - custom	—		—		—		—
Land - acquisition & development	2,396		—		3,702		0.1
Land - consumer lot loans	—		—		—		—
Multi-family	—		—		601		—
Commercial real estate	76,909		1.1		87,154		1.1
Commercial & industrial	7,925		0.1		3,292		—
HELOC	11,266		0.1		14,040		0.2
Consumer	71		—		97		—
Total credit-impaired acquired loans	98,900		1.3		111,117		1.4



Total loans
Single-family residential	5,373,950		67.3		5,779,264		73.5
Construction - speculative	130,778		1.6		131,526		1.6
Construction - custom	302,722		3.8		211,690		2.7
Land - acquisition & development	81,660		1.1		128,379		1.7
Land - consumer lot loans	124,984		1.5		141,844		1.8
Multi-family	835,598		10.5		710,741		9
Commercial real estate	625,293		7.9		406,364		5.2
Commercial & industrial	326,450		4.0		166,115		2.1
HELOC	133,631		1.6		126,942		1.6
Consumer	55,479		0.7		63,471		0.8
Total loans	7,990,545		100	%	7,866,336		100	%
Less:
Allowance for probable losses	116,741				133,147
Loans in process	275,577				213,286
Discount on acquired loans	34,143				33,484
Deferred net origination fees	36,054				34,421
	462,515				414,338
	$	7,528,030			$	7,451,998

The Company originates fixed and adjustable interest rate loans, which at September 30, 2013 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	$	482,270	Less than 1 year	$	175,614
1 to 3 years	283,166		1 to 3 years	209,288
3 to 5 years	255,617		3 to 5 years	168,765
5 to 10 years	223,719		5 to 10 years	818,834
10 to 20 years	859,412		10 to 20 years	93,533
Over 20 years	3,977,904		Over 20 years	442,423
	$	6,082,088		$	1,908,457

Gross loans by geographic concentration were as follows:



September 30, 2013	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	$	2,576,400	$	285,314	$	39,355	$	65,131	$	177,062	$	66,543	$	286,676	$	210,665	$	45,313	$	71,382	$	3,823,841
Oregon	806,160		284,959		6,614		24,185		44,075		27,620		158,062		98,541		7,646		17,280		1,475,142
Arizona	579,291		123,181		12,801		11,991		30,536		11,098		95,834		2,736		180		19,731		887,379
Utah	435,250		55,930		9,491		6,489		26,433		5,955		—		636		45		6,676		546,905
Idaho	329,299		27,029		2,685		11,602		10,917		9,818		1,417		192		13		4,748		397,720
New Mexico	176,915		40,236		9,099		3,628		7,118		9,016		66,662		7,278		1,367		13,596		334,915
Other	233,725		2,110		—		—		—		—		4,516		5,118		848		41		246,358
Texas	137,628		13,809		1,615		948		3,411		728		10,131		1,253		42		—		169,565
Nevada	99,282		3,030		—		1,010		3,170		—		1,995		31		25		177		108,720
	$	5,373,950	$	835,598	$	81,660	$	124,984	$	302,722	$	130,778	$	625,293	$	326,450	$	55,479	$	133,631	$	7,990,545



Percentage by geographic area
September 30, 2013	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	32.9	%	3.6	%	0.5	%	0.8	%	2.2	%	0.8	%	3.6	%	2.6	%	0.6	%	0.9	%	48.5	%
Oregon	10.1		3.6		0.1		0.3		0.6		0.3		2.0		1.2		0.1		0.2		18.5
Arizona	7.2		1.5		0.2		0.2		0.4		0.1		1.2		—		—		0.2		11.0
Utah	5.4		0.7		0.1		0.1		0.3		0.1		—		—		—		0.1		6.8
Idaho	4.1		0.3		—		0.1		0.1		0.1		—		—		—		0.1		4.8
New Mexico	2.2		0.5		0.1		—		0.1		0.1		0.8		0.1		—		0.2		4.1
Other	2.9		—		—		—		—		—		0.1		0.1		—		—		3.1
Texas	1.7		0.2		—		—		—		—		0.1		—		—		—		2.0
Nevada	1.2		—		—		—		—		—		—		—		—		—		1.2
	67.7	%	10.4	%	1.0	%	1.5	%	3.7	%	1.5	%	7.8	%	4.0	%	0.7	%	1.7	%	100.0	%



Percentage by geographic area as a % of each loan type
September 30, 2013	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	48.0	%	34.1	%	48.2	%	52.0	%	58.5	%	50.8	%	45.9	%	64.5	%	81.7	%	53.4	%
Oregon	15.0		34.1		8.1		19.4		14.6		21.1		25.3		30.2		13.8		12.9
Arizona	10.8		14.7		15.7		9.6		10.1		8.5		15.3		0.8		0.3		14.8
Utah	8.1		6.7		11.6		5.2		8.7		4.6		—		0.2		0.1		5.0
Idaho	6.1		3.2		3.3		9.3		3.6		7.5		0.2		0.1		—		3.6
New Mexico	3.3		4.8		11.1		2.9		2.4		6.9		10.7		2.2		2.5		10.2
Other	4.3		0.3		—		—		—		—		0.7		1.6		1.5		—
Texas	2.6		1.7		2.0		0.8		1.1		0.6		1.6		0.4		0.1		—
Nevada	1.8		0.4		—		0.8		1.0		—		0.3		—		—		0.1
	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, 2013		September 30, 2012
	(In thousands)
Recorded investment in impaired loans	$	454,557	$	565,553
Troubled Debt Restructuring included in impaired loans	415,696		433,278
Impaired loans with allocated reserves	6,035		44,167
Reserves on impaired loans	3,473		15,983
Average balance of impaired loans	495,472		523,363
Interest income from impaired loans	24,798		28,366
Outstanding fixed-rate origination commitments	190,363		151,990
Loans serviced for others	55,589		58,673

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



	September 30, 2013				September 30, 2012
	(In thousands)				(In thousands)
Non-accrual loans:
Single-family residential	$	100,460	76.5	%	$	131,193	75.7	%
Construction - speculative	4,560		3.5		10,634		6.1
Construction - custom	—		—		539		0.3
Land - acquisition & development	2,903		2.2		13,477		7.8
Land - consumer lot loans	3,337		2.5		5,149		3.0
Multi-family	6,573		5.0		4,185		2.4
Commercial real estate	11,736		8.9		7,653		4.4
Commercial & industrial	477		0.4		16		—
HELOC	263		0.2		198		0.1
Consumer	990		0.8		383		0.2
Total non-accrual loans	$	131,299	100	%	$	173,427	100	%

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



September 30, 2013	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	$	5,356,200	$	5,237,413	$	26,888	$	12,373	$	79,526	$	118,787	2.22	%
Construction - Speculative	82,422		80,047		—		—		2,375		2,375		2.88
Construction - Custom	130,095		129,678		417		—		—		417		0.32
Land - Acquisition & Development	71,567		70,106		—		—		1,461		1,461		2.04
Land - Consumer Lot Loans	121,473		117,076		806		355		3,236		4,397		3.62
Multi-Family	790,564		785,793		—		—		4,771		4,771		0.60
Commercial Real Estate	404,680		398,114		2,942		351		3,273		6,566		1.62
Commercial & Industrial	249,405		249,363		42		—		—		42		0.02
HELOC	112,186		111,407		493		213		73		779		0.69
Consumer	47,142		45,620		849		283		390		1,522		3.23
Total non-acquired loans	7,365,734		7,224,617		32,437		13,575		95,105		141,117		1.92	%

Acquired loans
Single-Family Residential	$	14,468	$	14,343	$	82	$	—	$	43	$	125	0.86	%
Construction - Speculative	—		—		—		—		—		—		NM
Construction - Custom	—		—		—		—		—		—		NM
Land - Acquisition & Development	1,489		1,241		—		—		248		248		16.66
Land - Consumer Lot Loans	3,313		2,987		125		100		101		326		9.84
Multi-Family	3,914		3,914		—		—		—		—		—
Commercial Real Estate	133,398		128,610		134		617		4,037		4,788		3.59
Commercial & Industrial	75,323		74,992		10		153		168		331		0.44
HELOC	10,179		10,063		—		16		100		116		1.14
Consumer	8,266		7,568		90		8		600		698		8.44
Total acquired loans	250,350		243,718		441		894		5,297		6,632		2.65	%

Credit-impaired acquired loans
Single-Family Residential	333		333		—		—		—		—		—	%
Construction - Speculative	—		—		—		—		—		—		—
Construction - Custom	—		—		—		—		—		—		—
Land - Acquisition & Development	2,393		1,929		—		464		—		464		19.39
Land - Consumer Lot Loans	—		—		—		—		—		—		—
Multi-Family	—		—		—		—		—		—		—
Commercial Real Estate	83,116		80,095		2,301		—		720		3,021		3.63
Commercial & Industrial	1,705		1,396		—		—		309		309		18.12
HELOC	11,266		11,176		—		—		90		90		0.80
Consumer	71		71		—		—		—		—		—
Total credit-impaired acquired loans	98,884		95,000		2,301		464		1,119		3,884		3.93	%

Total loans	$	7,714,968	$	7,563,335	$	35,179	$	14,933	$	101,521	$	151,633	1.97	%

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, 2013 single-family residential loans comprised 86% of restructured loans compared to 86% at the prior year end. 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 during the period ending:



	September 30, 2013					September 30, 2012
		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	406	$	105,551	$	105,551	787	$	183,548	$	183,548
Construction - Speculative	1	2,470		2,470		24	6,703		6,703
Construction - Custom	—	—		—		1	1,196		1,196
Land - Acquisition & Development	1	461		461		26	5,489		5,489
Land - Consumer Lot Loans	25	3,134		3,134		38	5,237		5,237
Multi-Family	1	36		36		4	3,104		3,104
Commercial Real Estate	15	11,523		11,523		4	6,224		6,224
Commercial & Industrial	1	56		56		—	—		—
HELOC	1	199		199		5	707		707
Consumer	2	33		33		—	—		—
	453	$	123,463	$	123,463	889	$	212,208	$	212,208



	September 30, 2013			September 30, 2012
	Number of	Recorded		Number of	Recorded
	Contracts	Investment		Contracts	Investment
		(In thousands)			(In thousands)
Troubled Debt Restructurings That Subsequently Defaulted:
Single-Family Residential	78	$	17,120	123	$	24,431
Construction - Speculative	—	—		—	—
Construction - Custom	—	—		—	—
Land - Acquisition & Development	—	—		—	—
Land - Consumer Lot Loans	2	237		12	1,402
Multi-Family	—	—		—	—
Commercial Real Estate	2	2,703		—	—
Commercial & Industrial	—	—		—	—
HELOC	1	79		—	—
Consumer	—	—		—	—
	83	$	20,139	135	$	25,833

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 and acquired non-impaired loans for the years ended September 30, 2013 and 2012:



	September 30, 2013												September 30, 2012
	Acquired Impaired						Acquired Non-impaired						Acquired Impaired						Acquired Non-impaired
	Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans			Accretable Yield		Carrying Amount of Loans
	(In thousands)												(In thousands)
Balance at beginning of period	$	16,928		$	77,613		$	—		$	—		—			—			$	—	$	—
Additions	—			9,865			10,804			351,335			21,384			93,691			—		—
Reclassification from nonaccretable balance, net	30,026			—			—			—			—			—			—		—
Accretion	(9,718		)	9,718			(5,827		)	5,827			(4,456		)	4,456			—		—
Transfers to REO	—			(3,975		)	—			(7,755		)	—			(2,616		)	—		—
Payments received, net	—			(23,503		)	—			(104,034		)	—			(17,918		)	—		—
Balance at end of period	$	37,236		$	69,718		$	4,977		$	245,373		$	16,928		$	77,613		$	—	$	—

There were $9.9 million in loans acquired during Fiscal 2013 as part of the South Valley Bank acquisition for which it was probable at acquisition that all contractually required payments would not be collected. The timing and amount of future cash flows cannot be reasonable estimated; therefore, these loan are accounted for on a cash basis. The following table shows loans that were acquired during Fiscal 2012 as part of the Western National Bank acquisition and are accounted for under FASB ASC 310-30:



	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