Loans Receivable (excluding Covered Loans)



	September 30, 2014				September 30, 2013
	(In thousands)				(In thousands)
Non-acquired loans
Single-family residential	$	5,560,203	64.1	%	$	5,359,149	67.1	%
Construction - speculative	140,060		1.6		130,778		1.6
Construction - custom	385,824		4.5		302,722		3.8
Land - acquisition & development	77,832		0.9		77,775		1.1
Land - consumer lot loans	108,623		1.3		121,671		1.5
Multi-family	917,286		10.6		831,684		10.4
Commercial real estate	591,336		6.9		414,961		5.1
Commercial & industrial	379,226		4.4		243,199		3.0
HELOC	116,042		1.4		112,186		1.4
Consumer	132,590		1.5		47,141		0.6
Total non-acquired loans	8,409,022		97.2		7,641,266		95.6

Acquired loans
Single-family residential	11,716		0.1	%	14,468		0.2	%
Construction - speculative	—		—		—		—
Construction - custom	—		—		—		—
Land - acquisition & development	905		—		1,489		—
Land - consumer lot loans	2,507		—		3,313		—
Multi-family	2,999		—		3,914		0.1
Commercial real estate	97,898		1.1		133,423		1.7
Commercial & industrial	54,219		0.6		75,326		0.9
HELOC	8,274		0.1		10,179		0.1
Consumer	5,670		0.1		8,267		0.1
Total acquired loans	184,188		2.0		250,379		3.1

Credit-impaired acquired loans
Single-family residential	325		—		333		—
Construction - speculative	—		—		—		—
Construction - custom	—		—		—		—
Land - acquisition & development	1,622		—		2,396		—
Land - consumer lot loans	—		—		—		—
Multi-family	—		—		—		—
Commercial real estate	63,723		0.7		76,909		1.1
Commercial & industrial	643		—		7,925		0.1
HELOC	10,139		0.1		11,266		0.1
Consumer	55		—		71		—
Total credit-impaired acquired loans	76,507		0.8		98,900		1.3



Total loans
Single-family residential	5,572,244		64.2		5,373,950		67.3
Construction - speculative	140,060		1.6		130,778		1.6
Construction - custom	385,824		4.5		302,722		3.8
Land - acquisition & development	80,359		0.9		81,660		1.1
Land - consumer lot loans	111,130		1.3		124,984		1.5
Multi-family	920,285		10.6		835,598		10.5
Commercial real estate	752,957		8.7		625,293		7.9
Commercial & industrial	434,088		5.0		326,450		4.0
HELOC	134,455		1.6		133,631		1.6
Consumer	138,315		1.6		55,479		0.7
Total loans	8,669,717		100	%	7,990,545		100	%
Less:
Allowance for probable losses	112,347				116,741
Loans in process	346,172				275,577
Discount on acquired loans	25,391				34,143
Deferred net origination fees	37,485				36,054
	521,395				462,515
	$	8,148,322			$	7,528,030

The Company originates fixed and adjustable interest rate loans, which at September 30, 2014 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	$	366,988	Less than 1 year	$	1,167,059
1 to 3 years	189,917		1 to 3 years	562,839
3 to 5 years	100,854		3 to 5 years	713,975
5 to 10 years	127,292		5 to 10 years	12,884
10 to 20 years	819,570		10 to 20 years	—
Over 20 years	4,605,687		Over 20 years	2,652
	$	6,210,308		$	2,459,409

Gross loans by geographic concentration were as follows:



September 30, 2014	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	$	2,711,711	$	315,584	$	46,091	$	61,525	$	211,474	$	68,668	$	372,239	$	87,312	$	16	$	73,721	$	3,948,341
Oregon	784,794		278,112		5,655		19,738		53,218		31,210		161,401		31,547		—		15,501		1,381,176
Arizona	600,306		182,645		3,201		10,040		42,326		9,393		92,817		1,078		—		19,580		961,386
Other	206,586		688		—		—		—		—		19,160		309,855		138,299		30		674,618
Utah	471,248		49,755		5,430		5,293		28,107		5,640		3,319		297		—		7,657		576,746
Idaho	323,320		25,294		2,277		9,479		16,008		12,195		3,656		769		—		5,008		398,006
New Mexico	174,102		53,002		14,923		2,946		21,024		9,893		90,288		3,230		—		12,587		381,995
Texas	180,950		12,852		2,782		629		7,941		3,061		7,722		—		—		—		215,937
Nevada	119,227		2,353		—		1,480		5,726		—		2,355		—		—		371		131,512
	$	5,572,244	$	920,285	$	80,359	$	111,130	$	385,824	$	140,060	$	752,957	$	434,088	$	138,315	$	134,455	$	8,669,717



Percentage by geographic area
September 30, 2014	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	31.6	%	3.6	%	0.5	%	0.7	%	2.4	%	0.8	%	4.3	%	1.0	%	—	%	0.9	%	45.8	%
Oregon	9.1		3.2		0.1		0.2		0.6		0.4		1.9		0.4		—		0.2		16.1
Arizona	6.9		2.1		—		0.1		0.5		0.1		1.1		—		—		0.2		11.0
Other	2.4		—		—		—		—		—		0.2		3.6		1.6		—		7.8
Utah	5.4		0.6		0.1		0.1		0.3		0.1		—		—		—		0.1		6.7
Idaho	3.7		0.3		—		0.1		0.2		0.1		—		—		—		0.1		4.5
New Mexico	2.0		0.6		0.2		—		0.2		0.1		1.0		—		—		0.1		4.2
Texas	2.1		0.1		—		—		0.1		—		0.1		—		—		—		2.4
Nevada	1.4		—		—		—		0.1		—		—		—		—		—		1.5
	64.6	%	10.5	%	0.9	%	1.2	%	4.4	%	1.6	%	8.6	%	5.0	%	1.6	%	1.6	%	100.0	%



Percentage by geographic area as a % of each loan type
September 30, 2014	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	48.7	%	34.3	%	57.3	%	55.3	%	54.8	%	49.0	%	49.6	%	20.1	%	—	%	54.8	%
Oregon	14.1		30.2		7.0		17.8		13.8		22.3		21.4		7.3		—		11.5
Arizona	10.8		19.8		4.0		9.0		11.0		6.7		12.3		0.2		—		14.6
Other	3.7		0.1		—		—		—		—		2.5		71.4		100.0		—
Utah	8.5		5.4		6.8		4.8		7.3		4.0		0.4		0.1		—		5.7
Idaho	5.8		2.7		2.8		8.5		4.1		8.7		0.5		0.2		—		3.7
New Mexico	3.1		5.8		18.6		2.7		5.4		7.1		12.0		0.7		—		9.4
Texas	3.2		1.4		3.5		0.6		2.1		2.2		1.0		—		—		—
Nevada	2.1		0.3		—		1.3		1.5		—		0.3		—		—		0.3
	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, 2014		September 30, 2013
	(In thousands)
Recorded investment in impaired loans	$	435,185	$	454,557
Trouble Debt Restructuring included in impaired loans	374,743		415,696
Impaired loans with allocated reserves	196		6,035
Reserves on impaired loans	60		3,473
Average balance of impaired loans	403,138		495,472
Interest income from impaired loans	21,674		24,798
Outstanding fixed-rate origination commitments	198,504		190,363
Loans serviced for others	86,745		55,589

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



	September 30, 2014				September 30, 2013
	(In thousands)				(In thousands)
Non-accrual loans:
Single-family residential	$	74,067	84.8	%	$	100,460	76.5	%
Construction - speculative	1,477		1.7		4,560		3.5
Construction - custom	—		—		—		—
Land - acquisition & development	811		0.9		2,903		2.2
Land - consumer lot loans	2,637		3.0		3,337		2.5
Multi-family	1,742		2.0		6,573		5.0
Commercial real estate	5,106		5.8		11,736		8.9
Commercial & industrial	7		—		477		0.4
HELOC	795		0.9		263		0.2
Consumer	789		0.9		990		0.8
Total non-accrual loans	$	87,431	100	%	$	131,299	100	%

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



September 30, 2014	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	$	5,557,753	$	5,467,239	$	15,926	$	9,139	$	65,449	$	90,514	1.63	%
Construction - Speculative	87,035		87,035		—		—		—		—		—
Construction - Custom	192,098		191,262		836		—		—		836		0.44
Land - Acquisition & Development	68,066		67,911		155		—		—		155		0.23
Land - Consumer Lot Loans	108,589		104,571		1,246		304		2,468		4,018		3.70
Multi-Family	892,196		891,372		205		16		603		824		0.09
Commercial Real Estate	529,453		513,409		67		15,118		859		16,044		3.03
Commercial & Industrial	379,226		377,848		53		1,318		7		1,378		0.36
HELOC	116,262		115,262		335		292		373		1,000		0.86
Consumer	132,686		131,642		654		262		128		1,044		0.79
Total non-acquired loans	8,063,364		7,947,551		19,477		26,449		69,887		115,813		1.44	%

Acquired loans
Single-Family Residential	11,716		11,693		—		—		23		23		0.20	%
Construction - Speculative	—		—		—		—		—		—		—
Construction - Custom	—		—		—		—		—		—		—
Land - Acquisition & Development	905		905		—		—		—		—		—
Land - Consumer Lot Loans	2,502		2,132		—		370		—		370		14.79
Multi-Family	2,999		2,999		—		—		—		—		—
Commercial Real Estate	97,715		96,948		104		—		663		767		0.78
Commercial & Industrial	51,329		51,229		—		100		—		100		0.19
HELOC	8,056		8,056		—		—		—		—		—
Consumer	5,670		4,983		22		4		661		687		12.12
Total acquired loans	180,892		178,945		126		474		1,347		1,947		1.08	%

Credit-impaired acquired loans
Single-Family Residential	325		325		—		—		—		—		—	%
Construction - Speculative	—		—		—		—		—		—		—
Construction - Custom	—		—		—		—		—		—		—
Land - Acquisition & Development	1,581		1,581		—		—		—		—		—
Land - Consumer Lot Loans	—		—		—		—		—		—		—
Multi-Family	—		—		—		—		—		—		—
Commercial Real Estate	63,713		61,713		152		909		939		2,000		3.14
Commercial & Industrial	3,477		3,470		7		—		—		7		0.20
HELOC	10,138		9,641		—		75		422		497		4.90
Consumer	54		54		—		—		—		—		—
Total credit-impaired acquired loans	79,288		76,784		159		984		1,361		2,504		3.16	%

Total loans	$	8,323,544	$	8,203,280	$	19,762	$	27,907	$	72,595	$	120,264	1.44	%

Most loans restructured in troubled debt restructurings ("TDRs") are accruing and performing loans where the borrower has proactively approached the Bank 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, 2014, the outstanding balance of TDR's was $374,743,000. Single-family residential loans comprised 86% of restructured loans which is the same as 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, 2014					September 30, 2013
		Pre-Modification		Post-Modification			Pre-Modification		Post-Modification
		Outstanding		Outstanding			Outstanding		Outstanding
	Number of	Recorded		Recorded		Number of	Recorded		Recorded
Troubled Debt Restructurings:	Contracts	Investment		Investment		Contracts	Investment		Investment
		(In thousands)					(In thousands)
Single-Family Residential	241	$	52,900	$	52,900	406	$	105,551	$	105,551
Construction - Speculative	—	—		—		1	2,470		2,470
Construction - Custom	—	—		—		—	—		—
Land - Acquisition & Development	3	631		631		1	461		461
Land - Consumer Lot Loans	13	2,315		2,315		25	3,134		3,134
Multi-Family	2	1,196		1,196		1	36		36
Commercial Real Estate	3	2,177		2,177		15	11,523		11,523
Commercial & Industrial	—	—		—		1	56		56
HELOC	2	549		549		1	199		199
Consumer	3	35		35		2	33		33
	267	$	59,803	$	59,803	453	$	123,463	$	123,463



	September 30, 2014			September 30, 2013
	Number of	Recorded		Number of	Recorded
Troubled Debt Restructurings That Subsequently Defaulted:	Contracts	Investment		Contracts	Investment
		(In thousands)			(In thousands)
Single-Family Residential	38	$	7,427	78	$	17,120
Construction - Speculative	—	—		—	—
Construction - Custom	—	—		—	—
Land - Acquisition & Development	—	—		—	—
Land - Consumer Lot Loans	8	969		2	237
Multi-Family	—	—		—	—
Commercial Real Estate	—	—		2	2,703
Commercial & Industrial	—	—		—	—
HELOC	—	—		1	79
Consumer	—	—		—	—
	46	$	8,396	83	$	20,139

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, 2014 and 2013:



	September 30, 2014												September 30, 2013
	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)
Beginning balance	$	37,236		$	69,718		$	4,977		$	245,373		$	16,928		$	77,613		$	—		$	—
Additions	7,300			—			—			—			—			9,865			10,804			351,335
Net reclassification from nonaccretable	—			—			—			—			30,026			—			—			—
Accretion	(11,945		)	11,945			(723		)	723			(9,718		)	9,718			(5,827		)	5,827
Transfers to REO	—			(1,188		)	—			(4,710		)	—			(3,975		)	—			(7,755		)
Payments received, net	—			(22,704		)	—			(63,946		)	—			(23,503		)	—			(104,034		)
Ending Balance	$	32,591		$	57,771		$	4,254		$	177,440		$	37,236		$	69,718		$	4,977		$	245,373

Additionally, 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 reasonably 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
(In thousands)	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