Loans Receivable

3 Months Ended

Jun. 30, 2011

7.	LOANS RECEIVABLE

Loans receivable, excluding loans held for sale, consisted of the following (in thousands):

		June 30, 2011		March 31, 2011
Commercial and construction
Commercial business	$	84,158	$	85,511
Other real estate mortgage		465,391		461,955
Real estate construction		25,924		27,385
Total commercial and construction		575,473		574,851

Consumer
Real estate one-to-four family		115,578		110,437
Other installment		2,318		2,289
Total consumer		117,896		112,726

Total loans		693,369		687,577

Less: Allowance for loan losses		16,059		14,968
Loans receivable, net	$	677,310	$	672,609

The Company considers its loan portfolio to have very little exposure to sub-prime mortgage loans since the Company has not historically engaged in this type of lending.

Most of the Bank’s business activity is with customers located in the states of Washington and Oregon. Loans and extensions of credit outstanding at one time to one borrower are generally limited by federal regulation to 15% of the Bank’s shareholders’ equity, excluding accumulated other comprehensive loss. As of June 30, 2011 and March 31, 2011, the Bank had no loans to any one borrower in excess of the regulatory limit.