Cash and Cash Equivalents

12 Months Ended

Dec. 31, 2012

Cash and Cash Equivalents [Abstract]

Cash and Cash Equivalents

Cash & Cash Equivalents:

The balances of the Company's cash and cash equivalents are as follows (in thousands):

	2012		2011
	Balance		Balance
Unrestricted interest-bearing cash and cash equivalents	$	53,403	$	82,242
Unrestricted non interest-bearing and vault cash	$	13,536	$	24,958
Restricted non-interest bearing cash	$	13,146	$	2,668

In 2012 and 2011, unrestricted interest bearing cash was deposited at the Federal Reserve ("FRB") and Federal Home Loan Bank of Seattle ("FHLB"). Unrestricted non-interest bearing cash includes overnight cash deposited at several of the Company's correspondent banks and balances kept in the vaults of its various offices. At December 31, 2012 restricted non-interest bearing cash consisted of the following:

• $1.1 million in reserve balances to meet FRB reserve requirements;

• $877,000 deposited in escrow for the payment of the deferred interest on the Company's Trust II debenture, which was subsequently due and paid on January 7, 2013;

• $572,000 pledged to various correspondent banks to secure interest rate swap transactions and foreign currency exchange lines;

• $1.1 million held at the Company's subsidiary Bank to be used for future tenant improvements of the Sandpoint Center, as required by the agreement executed to sell the Sandpoint Center in 2009;

• $9.5 million held at the Company's subsidiary Bank as required by an intercompany agreement signed by the Company and the Bank as part of the Company's January 2012 capital raise, which represents a pledge of funds to the Bank to partially secure the loan made by the Bank to the third party who bought and subsequently leased the Sandpoint Center back to the Bank.

At December 31, 2011, restricted cash consisted of $991,000 to meet FRB reserve requirements,$604,000 to secure interest swap transactions and foreign currency exchange lines, and $1.1 million to fund future tenant improvements at the Sandpoint Center.