Allowance for Loan Losses, Allowance for Losses on Lending-Related Commitments and Impaired Loans | Allowance for Loan Losses, Allowance for Losses on Lending-Related Commitments and Impaired Loans The tables below show the aging of the Company’s loan portfolio at September 30, 2015 , December 31, 2014 and September 30, 2014 : As of September 30, 2015 90+ days and still accruing 60-89 days past due 30-59 days past due (Dollars in thousands) Nonaccrual Current Total Loans Loan Balances: Commercial Commercial and industrial $ 12,006 $ — $ 2,731 $ 9,331 $ 2,622,207 $ 2,646,275 Franchise — — 80 376 221,545 222,001 Mortgage warehouse lines of credit — — — — 136,614 136,614 Community Advantage—homeowners association — — 44 — 123,165 123,209 Aircraft — — — 378 5,993 6,371 Asset-based lending 12 — 1,313 247 800,798 802,370 Tax exempt — — — — 232,667 232,667 Leases — — — 89 205,697 205,786 Other — — — — 1,953 1,953 PCI - commercial (1) — 217 — 39 22,683 22,939 Total commercial 12,018 217 4,168 10,460 4,373,322 4,400,185 Commercial real estate: Residential construction — — — 1,141 60,130 61,271 Commercial construction 31 — — 2,394 283,538 285,963 Land 1,756 — — 2,207 75,113 79,076 Office 4,045 — 10,861 2,362 773,043 790,311 Industrial 11,637 — 786 897 622,804 636,124 Retail 2,022 — 1,536 821 781,463 785,842 Multi-family 1,525 — 512 744 684,878 687,659 Mixed use and other 7,601 — 2,340 12,871 1,797,516 1,820,328 PCI - commercial real estate (1) — 13,547 299 583 146,563 160,992 Total commercial real estate 28,617 13,547 16,334 24,020 5,225,048 5,307,566 Home equity 8,365 — 811 4,124 784,165 797,465 Residential real estate 14,557 — 1,017 1,195 551,292 568,061 PCI - residential real estate (1) — 424 323 411 2,524 3,682 Premium finance receivables Commercial insurance loans 13,751 8,231 6,664 13,659 2,364,770 2,407,075 Life insurance loans — — 9,656 2,627 2,314,406 2,326,689 PCI - life insurance loans (1) — — — — 373,586 373,586 Consumer and other 297 140 56 935 130,474 131,902 Total loans, net of unearned income, excluding covered loans $ 77,605 $ 22,559 $ 39,029 $ 57,431 $ 16,119,587 $ 16,316,211 Covered loans 6,540 7,626 1,392 802 152,249 168,609 Total loans, net of unearned income $ 84,145 $ 30,185 $ 40,421 $ 58,233 $ 16,271,836 $ 16,484,820 (1) PCI loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. Loan agings are based upon contractually required payments. As of December 31, 2014 90+ days and still accruing 60-89 days past due 30-59 days past due (Dollars in thousands) Nonaccrual Current Total Loans Loan Balances: Commercial Commercial and industrial $ 9,132 $ 474 $ 3,161 $ 7,492 $ 2,213,105 $ 2,233,364 Franchise — — 308 1,219 231,789 233,316 Mortgage warehouse lines of credit — — — — 139,003 139,003 Community Advantage—homeowners association — — — — 106,364 106,364 Aircraft — — — — 8,065 8,065 Asset-based lending 25 — 1,375 2,394 802,608 806,402 Tax exempt — — — — 217,487 217,487 Leases — — 77 315 159,744 160,136 Other — — — — 11,034 11,034 PCI - commercial (1) — 365 202 138 8,518 9,223 Total commercial 9,157 839 5,123 11,558 3,897,717 3,924,394 Commercial real estate Residential construction — — 250 76 38,370 38,696 Commercial construction 230 — — 2,023 185,513 187,766 Land 2,656 — — 2,395 86,779 91,830 Office 7,288 — 2,621 1,374 694,149 705,432 Industrial 2,392 — — 3,758 617,820 623,970 Retail 4,152 — 116 3,301 723,919 731,488 Multi-family 249 — 249 1,921 603,323 605,742 Mixed use and other 9,638 — 2,603 9,023 1,443,853 1,465,117 PCI - commercial real estate (1) — 10,976 6,393 4,016 34,327 55,712 Total commercial real estate 26,605 10,976 12,232 27,887 4,428,053 4,505,753 Home equity 6,174 — 983 3,513 705,623 716,293 Residential real estate 15,502 — 267 6,315 459,224 481,308 PCI - residential real estate (1) — 549 — — 1,685 2,234 Premium finance receivables Commercial insurance loans 12,705 7,665 5,995 17,328 2,307,140 2,350,833 Life insurance loans — — 13,084 339 1,870,669 1,884,092 PCI - life insurance loans (1) — — — — 393,479 393,479 Consumer and other 277 119 293 838 149,485 151,012 Total loans, net of unearned income, excluding covered loans $ 70,420 $ 20,148 $ 37,977 $ 67,778 $ 14,213,075 $ 14,409,398 Covered loans 7,290 17,839 1,304 4,835 195,441 226,709 Total loans, net of unearned income $ 77,710 $ 37,987 $ 39,281 $ 72,613 $ 14,408,516 $ 14,636,107 (1) PCI loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. Loan agings are based upon contractually required payments. As of September 30, 2014 90+ days and still accruing 60-89 days past due 30-59 days past due (Dollars in thousands) Nonaccrual Current Total Loans Loan Balances: Commercial Commercial and industrial $ 10,430 $ — $ 7,333 $ 8,559 $ 2,044,505 $ 2,070,827 Franchise — — — 1,221 237,079 238,300 Mortgage warehouse lines of credit — — — — 121,585 121,585 Community Advantage—homeowners association — — — — 99,595 99,595 Aircraft — — — — 6,146 6,146 Asset-based lending 25 — 2,959 1,220 777,723 781,927 Tax exempt — — — — 205,150 205,150 Leases — — — — 145,439 145,439 Other — — — — 11,403 11,403 PCI - commercial (1) — 863 64 137 8,235 9,299 Total commercial 10,455 863 10,356 11,137 3,656,860 3,689,671 Commercial real estate: Residential construction — — — — 30,237 30,237 Commercial construction 425 — — — 159,383 159,808 Land 2,556 — 1,316 2,918 94,449 101,239 Office 7,366 — 1,696 1,888 688,390 699,340 Industrial 2,626 — 224 367 624,669 627,886 Retail 6,205 — — 4,117 715,568 725,890 Multi-family 249 — 793 2,319 674,610 677,971 Mixed use and other 7,936 — 1,468 10,323 1,407,659 1,427,386 PCI - commercial real estate (1) — 14,294 — 5,807 40,517 60,618 Total commercial real estate 27,363 14,294 5,497 27,739 4,435,482 4,510,375 Home equity 5,696 — 1,181 2,597 710,584 720,058 Residential real estate 15,730 — 670 2,696 448,528 467,624 PCI - residential real estate (1) — 930 30 — 1,735 2,695 Premium finance receivables Commercial insurance loans 14,110 7,115 6,279 14,157 2,336,231 2,377,892 Life insurance loans — — 7,533 6,942 1,712,328 1,726,803 PCI - life insurance loans (1) — — — — 407,602 407,602 Consumer and other 426 175 123 1,133 147,482 149,339 Total loans, net of unearned income, excluding covered loans $ 73,780 $ 23,377 $ 31,669 $ 66,401 $ 13,856,832 $ 14,052,059 Covered loans 6,042 26,170 4,289 5,655 212,449 254,605 Total loans, net of unearned income $ 79,822 $ 49,547 $ 35,958 $ 72,056 $ 14,069,281 $ 14,306,664 (1) PCI loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. Loan agings are based upon contractually required payments. Our ability to manage credit risk depends in large part on our ability to properly identify and manage problem loans. To do so, the Company operates a credit risk rating system under which our credit management personnel assign a credit risk rating (1 to 10 rating) to each loan at the time of origination and review loans on a regular basis. Each loan officer is responsible for monitoring his or her loan portfolio, recommending a credit risk rating for each loan in his or her portfolio and ensuring the credit risk ratings are appropriate. These credit risk ratings are then ratified by the bank’s chief credit officer and/or concurrence credit officer. Credit risk ratings are determined by evaluating a number of factors including: a borrower’s financial strength, cash flow coverage, collateral protection and guarantees. The Company’s Problem Loan Reporting system automatically includes all loans with credit risk ratings of 6 through 9. This system is designed to provide an on-going detailed tracking mechanism for each problem loan. Once management determines that a loan has deteriorated to a point where it has a credit risk rating of 6 or worse, the Company’s Managed Asset Division performs an overall credit and collateral review. As part of this review, all underlying collateral is identified and the valuation methodology is analyzed and tracked. As a result of this initial review by the Company’s Managed Asset Division, the credit risk rating is reviewed and a portion of the outstanding loan balance may be deemed uncollectible or an impairment reserve may be established. The Company’s impairment analysis utilizes an independent re-appraisal of the collateral (unless such a third-party evaluation is not possible due to the unique nature of the collateral, such as a closely-held business or thinly traded securities). In the case of commercial real estate collateral, an independent third party appraisal is ordered by the Company’s Real Estate Services Group to determine if there has been any change in the underlying collateral value. These independent appraisals are reviewed by the Real Estate Services Group and sometimes by independent third party valuation experts and may be adjusted depending upon market conditions. Through the credit risk rating process, loans are reviewed to determine if they are performing in accordance with the original contractual terms. If the borrower has failed to comply with the original contractual terms, further action may be required by the Company, including a downgrade in the credit risk rating, movement to non-accrual status, a charge-off or the establishment of a specific impairment reserve. If we determine that a loan amount, or portion thereof, is uncollectible, the loan’s credit risk rating is immediately downgraded to an 8 or 9 and the uncollectible amount is charged-off. Any loan that has a partial charge-off continues to be assigned a credit risk rating of an 8 or 9 for the duration of time that a balance remains outstanding. The Company undertakes a thorough and ongoing analysis to determine if additional impairment and/or charge-offs are appropriate and to begin a workout plan for the credit to minimize actual losses. If, based on current information and events, it is probable that the Company will be unable to collect all amounts due to it according to the contractual terms of the loan agreement, a specific impairment reserve is established. In determining the appropriate charge-off for collateral-dependent loans, the Company considers the results of appraisals for the associated collateral. Non-performing loans include all non-accrual loans (8 and 9 risk ratings) as well as loans 90 days past due and still accruing interest, excluding PCI and covered loans. The remainder of the portfolio is considered performing under the contractual terms of the loan agreement. The following table presents the recorded investment based on performance of loans by class, excluding covered loans, per the most recent analysis at September 30, 2015 , December 31, 2014 and September 30, 2014 : Performing Non-performing Total (Dollars in thousands) September 30, 2015 December 31, 2014 September 30, 2014 September 30, December 31, 2014 September 30, September 30, December 31, 2014 September 30, Loan Balances: Commercial Commercial and industrial $ 2,634,269 $ 2,223,758 $ 2,060,397 $ 12,006 $ 9,606 $ 10,430 $ 2,646,275 $ 2,233,364 $ 2,070,827 Franchise 222,001 233,316 238,300 — — — 222,001 233,316 238,300 Mortgage warehouse lines of credit 136,614 139,003 121,585 — — — 136,614 139,003 121,585 Community Advantage—homeowners association 123,209 106,364 99,595 — — — 123,209 106,364 99,595 Aircraft 6,371 8,065 6,146 — — — 6,371 8,065 6,146 Asset-based lending 802,358 806,377 781,902 12 25 25 802,370 806,402 781,927 Tax exempt 232,667 217,487 205,150 — — — 232,667 217,487 205,150 Leases 205,786 160,136 145,439 — — — 205,786 160,136 145,439 Other 1,953 11,034 11,403 — — — 1,953 11,034 11,403 PCI - commercial (1) 22,939 9,223 9,299 — — — 22,939 9,223 9,299 Total commercial 4,388,167 3,914,763 3,679,216 12,018 9,631 10,455 4,400,185 3,924,394 3,689,671 Commercial real estate Residential construction 61,271 38,696 30,237 — — — 61,271 38,696 30,237 Commercial construction 285,932 187,536 159,383 31 230 425 285,963 187,766 159,808 Land 77,320 89,174 98,683 1,756 2,656 2,556 79,076 91,830 101,239 Office 786,266 698,144 691,974 4,045 7,288 7,366 790,311 705,432 699,340 Industrial 624,487 621,578 625,260 11,637 2,392 2,626 636,124 623,970 627,886 Retail 783,820 727,336 719,685 2,022 4,152 6,205 785,842 731,488 725,890 Multi-family 686,134 605,493 677,722 1,525 249 249 687,659 605,742 677,971 Mixed use and other 1,812,727 1,455,479 1,419,450 7,601 9,638 7,936 1,820,328 1,465,117 1,427,386 PCI - commercial real estate (1) 160,992 55,712 60,618 — — — 160,992 55,712 60,618 Total commercial real estate 5,278,949 4,479,148 4,483,012 28,617 26,605 27,363 5,307,566 4,505,753 4,510,375 Home equity 789,100 710,119 714,362 8,365 6,174 5,696 797,465 716,293 720,058 Residential real estate 553,504 465,806 451,894 14,557 15,502 15,730 568,061 481,308 467,624 PCI - residential real estate (1) 3,682 2,234 2,695 — — — 3,682 2,234 2,695 Premium finance receivables Commercial insurance loans 2,385,093 2,330,463 2,356,667 21,982 20,370 21,225 2,407,075 2,350,833 2,377,892 Life insurance loans 2,326,689 1,884,092 1,726,803 — — — 2,326,689 1,884,092 1,726,803 PCI - life insurance loans (1) 373,586 393,479 407,602 — — — 373,586 393,479 407,602 Consumer and other 131,465 150,617 148,738 437 395 601 131,902 151,012 149,339 Total loans, net of unearned income, excluding covered loans $ 16,230,235 $ 14,330,721 $ 13,970,989 $ 85,976 $ 78,677 $ 81,070 $ 16,316,211 $ 14,409,398 $ 14,052,059 (1) PCI loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. See Note 6 - Loans for further discussion of these purchased loans. A summary of activity in the allowance for credit losses by loan portfolio (excluding covered loans) for the three months ended September 30, 2015 and 2014 is as follows: Three months ended September 30, 2015 Commercial Real Estate Home Equity Residential Real Estate Premium Finance Receivable Consumer and Other Total, Excluding Covered Loans (Dollars in thousands) Commercial Allowance for credit losses Allowance for loan losses at beginning of period $ 32,900 $ 42,198 $ 12,288 $ 5,019 $ 6,921 $ 878 $ 100,204 Other adjustments (12 ) (85 ) — (6 ) (50 ) — (153 ) Reclassification from allowance for unfunded lending-related commitments — (42 ) — — — — (42 ) Charge-offs (964 ) (1,948 ) (1,116 ) (1,138 ) (1,595 ) (116 ) (6,877 ) Recoveries 462 213 42 136 294 52 1,199 Provision for credit losses 1,604 3,725 1,009 575 1,511 241 8,665 Allowance for loan losses at period end $ 33,990 $ 44,061 $ 12,223 $ 4,586 $ 7,081 $ 1,055 $ 102,996 Allowance for unfunded lending-related commitments at period end $ — $ 926 $ — $ — $ — $ — $ 926 Allowance for credit losses at period end $ 33,990 $ 44,987 $ 12,223 $ 4,586 $ 7,081 $ 1,055 $ 103,922 Individually evaluated for impairment $ 1,881 $ 5,832 $ 239 $ 544 $ — $ 30 $ 8,526 Collectively evaluated for impairment 31,943 38,361 11,984 4,042 7,081 1,024 94,435 Loans acquired with deteriorated credit quality 166 794 — — — 1 961 Loans at period end Individually evaluated for impairment $ 18,211 $ 68,947 $ 8,365 $ 18,267 $ — $ 430 $ 114,220 Collectively evaluated for impairment 4,359,035 5,077,627 789,100 549,794 4,733,764 131,472 15,640,792 Loans acquired with deteriorated credit quality 22,939 160,992 — 3,682 373,586 — 561,199 Three months ended September 30, 2014 Commercial Commercial Real Estate Home Equity Residential Real Estate Premium Finance Receivable Consumer and Other Total, Excluding Covered Loans (Dollars in thousands) Allowance for credit losses Allowance for loan losses at beginning of period $ 26,038 $ 40,702 $ 13,918 $ 3,733 $ 6,309 $ 1,553 $ 92,253 Other adjustments (32 ) (265 ) (1 ) (2 ) (35 ) — (335 ) Reclassification from allowance for unfunded lending-related commitments — 62 — — — — 62 Charge-offs (832 ) (4,510 ) (748 ) (205 ) (1,557 ) (250 ) (8,102 ) Recoveries 296 275 99 111 290 42 1,113 Provision for credit losses 2,442 2,395 (308 ) 405 1,260 (166 ) 6,028 Allowance for loan losses at period end $ 27,912 $ 38,659 $ 12,960 $ 4,042 $ 6,267 $ 1,179 $ 91,019 Allowance for unfunded lending-related commitments at period end $ — $ 822 $ — $ — $ — $ — $ 822 Allowance for credit losses at period end $ 27,912 $ 39,481 $ 12,960 $ 4,042 $ 6,267 $ 1,179 $ 91,841 Individually evaluated for impairment $ 2,296 $ 3,507 $ 292 $ 512 $ — $ 53 $ 6,660 Collectively evaluated for impairment 25,427 35,967 12,668 3,530 6,267 1,103 84,962 Loans acquired with deteriorated credit quality 189 7 — — — 23 219 Loans at period end Individually evaluated for impairment $ 16,568 $ 89,201 $ 5,922 $ 18,383 $ — $ 870 $ 130,944 Collectively evaluated for impairment 3,663,804 4,360,556 714,136 449,241 4,104,695 148,469 13,440,901 Loans acquired with deteriorated credit quality 9,299 60,618 — 2,695 407,602 — 480,214 Nine months ended September 30, 2015 Commercial Real Estate Home Equity Residential Real Estate Premium Finance Receivable Consumer and Other Total, Excluding Covered Loans (Dollars in thousands) Commercial Allowance for credit losses Allowance for loan losses at beginning of period $ 31,699 $ 35,533 $ 12,500 $ 4,218 $ 6,513 $ 1,242 $ 91,705 Other adjustments (42 ) (346 ) — (14 ) (92 ) — (494 ) Reclassification from allowance for unfunded lending-related commitments — (151 ) — — — — (151 ) Charge-offs (2,884 ) (3,809 ) (3,547 ) (2,692 ) (4,384 ) (342 ) (17,658 ) Recoveries 1,117 2,349 129 228 1,081 139 5,043 Provision for credit losses 4,100 10,485 3,141 2,846 3,963 16 24,551 Allowance for loan losses at period end $ 33,990 $ 44,061 $ 12,223 $ 4,586 $ 7,081 $ 1,055 $ 102,996 Allowance for unfunded lending-related commitments at period end $ — $ 926 $ — $ — $ — $ — $ 926 Allowance for credit losses at period end $ 33,990 $ 44,987 $ 12,223 $ 4,586 $ 7,081 $ 1,055 $ 103,922 Nine months ended September 30, 2014 Commercial Commercial Real Estate Home Equity Residential Real Estate Premium Finance Receivable Consumer and Other Total, Excluding Covered Loans (Dollars in thousands) Allowance for credit losses Allowance for loan losses at beginning of period $ 23,092 $ 48,658 $ 12,611 $ 5,108 $ 5,583 $ 1,870 $ 96,922 Other adjustments (69 ) (482 ) (3 ) (6 ) (28 ) — (588 ) Reclassification from allowance for unfunded lending-related commitments — (102 ) — — — — (102 ) Charge-offs (3,864 ) (11,354 ) (3,745 ) (1,120 ) (4,259 ) (636 ) (24,978 ) Recoveries 883 762 478 316 925 256 3,620 Provision for credit losses 7,870 1,177 3,619 (256 ) 4,046 (311 ) 16,145 Allowance for loan losses at period end $ 27,912 $ 38,659 $ 12,960 $ 4,042 $ 6,267 $ 1,179 $ 91,019 Allowance for unfunded lending-related commitments at period end $ — $ 822 $ — $ — $ — $ — $ 822 Allowance for credit losses at period end $ 27,912 $ 39,481 $ 12,960 $ 4,042 $ 6,267 $ 1,179 $ 91,841 A summary of activity in the allowance for covered loan losses for the three months ended September 30, 2015 and 2014 is as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (Dollars in thousands) 2015 2014 2015 2014 Balance at beginning of period $ 2,215 $ 1,667 $ 2,131 $ 10,092 Provision for covered loan losses before benefit attributable to FDIC loss share agreements (1,716 ) (818 ) (3,339 ) (8,703 ) Benefit attributable to FDIC loss share agreements 1,373 654 2,671 6,962 Net provision for covered loan losses (343 ) (164 ) (668 ) (1,741 ) Decrease in FDIC indemnification asset (1,373 ) (654 ) (2,671 ) (6,962 ) Loans charged-off (287 ) (293 ) (664 ) (5,346 ) Recoveries of loans charged-off 2,706 2,099 4,790 6,612 Net recoveries (charge-offs) 2,419 1,806 4,126 1,266 Balance at end of period $ 2,918 $ 2,655 $ 2,918 $ 2,655 In conjunction with FDIC-assisted transactions, the Company entered into loss share agreements with the FDIC. Additional expected losses, to the extent such expected losses result in the recognition of an allowance for loan losses, will increase the FDIC indemnification asset. The allowance for loan losses for loans acquired in FDIC-assisted transactions is determined without giving consideration to the amounts recoverable through loss share agreements (since the loss share agreements are separately accounted for and thus presented “gross” on the balance sheet). On the Consolidated Statements of Income, the provision for credit losses is reported net of changes in the amount recoverable under the loss share agreements. Reductions to expected losses, to the extent such reductions to expected losses are the result of an improvement to the actual or expected cash flows from the covered assets, will reduce the FDIC indemnification asset. Additions to expected losses will require an increase to the allowance for loan losses, and a corresponding increase to the FDIC indemnification asset. See “FDIC-Assisted Transactions” within Note 3 – Business Combinations for more detail. Impaired Loans A summary of impaired loans, including troubled debt restructurings ("TDRs"), is as follows: September 30, December 31, September 30, (Dollars in thousands) 2015 2014 2014 Impaired loans (included in non-performing and TDRs): Impaired loans with an allowance for loan loss required (1) $ 51,113 $ 69,487 $ 68,471 Impaired loans with no allowance for loan loss required 61,914 57,925 61,066 Total impaired loans (2) $ 113,027 $ 127,412 $ 129,537 Allowance for loan losses related to impaired loans $ 8,483 $ 6,270 $ 6,577 TDRs $ 59,320 $ 82,275 $ 83,385 (1) These impaired loans require an allowance for loan losses because the estimated fair value of the loans or related collateral is less than the recorded investment in the loans. (2) Impaired loans are considered by the Company to be non-accrual loans, TDRs or loans with principal and/or interest at risk, even if the loan is current with all payments of principal and interest. The following tables present impaired loans evaluated for impairment by loan class for the periods ended as follows: For the Nine Months Ended As of September 30, 2015 September 30, 2015 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (Dollars in thousands) Impaired loans with a related ASC 310 allowance recorded Commercial Commercial and industrial $ 8,580 $ 9,118 $ 1,865 $ 8,906 $ 381 Franchise — — — — — Mortgage warehouse lines of credit — — — — — Community Advantage—homeowners association — — — — — Aircraft — — — — — Asset-based lending — — — — — Tax exempt — — — — — Leases — — — — — Other — — — — — Commercial real estate Residential construction — — — — — Commercial construction — — — — — Land 3,559 7,309 31 3,713 362 Office 6,765 7,724 2,162 7,113 263 Industrial 10,049 10,542 1,550 10,662 421 Retail 8,899 9,596 381 8,906 306 Multi-family 1,199 1,622 203 1,210 60 Mixed use and other 7,162 7,345 1,501 7,250 224 Home equity 547 762 239 672 25 Residential real estate 4,225 4,326 521 4,280 130 Premium finance receivables Commercial insurance — — — — — Life insurance — — — — — PCI - life insurance — — — — — Consumer and other 128 128 30 139 6 Impaired loans with no related ASC 310 allowance recorded Commercial Commercial and industrial $ 9,142 $ 11,997 $ — $ 9,716 $ 539 Franchise — — — — — Mortgage warehouse lines of credit — — — — — Community Advantage—homeowners association — — — — — Aircraft — — — — — Asset-based lending 12 1,573 — 4 66 Tax exempt — — — — — Leases — — — — — Other — — — — — Commercial real estate Residential construction 2,023 2,023 — 2,023 73 Commercial construction 31 32 — 11 — Land 4,114 4,874 — 4,232 130 Office 4,171 5,120 — 4,243 194 Industrial 2,255 2,448 — 2,304 141 Retail 3,140 3,302 — 3,305 104 Multi-family 1,330 1,635 — 1,522 50 Mixed use and other 13,788 16,576 — 14,668 563 Home equity 7,818 8,406 — 7,065 229 Residential real estate 13,788 15,932 — 14,387 449 Premium finance receivables Commercial insurance — — — — — Life insurance — — — — — PCI - life insurance — — — — — Consumer and other 302 398 — 311 15 Total loans, net of unearned income, excluding covered loans $ 113,027 $ 132,788 $ 8,483 $ 116,642 $ 4,731 For the Twelve Months Ended As of December 31, 2014 December 31, 2014 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (Dollars in thousands) Impaired loans with a related ASC 310 allowance recorded Commercial Commercial and industrial $ 9,989 $ 10,785 $ 1,915 $ 10,784 $ 539 Franchise — — — — — Mortgage warehouse lines of credit — — — — — Community Advantage—homeowners association — — — — — Aircraft — — — — — Asset-based lending — — — — — Tax exempt — — — — — Leases — — — — — Other — — — — — Commercial real estate Residential construction — — — — — Commercial construction — — — — — Land 5,011 8,626 43 5,933 544 Office 11,038 12,863 305 11,567 576 Industrial 195 277 15 214 13 Retail 11,045 14,566 487 12,116 606 Multi-family 2,808 3,321 158 2,839 145 Mixed use and other 21,777 24,076 2,240 21,483 1,017 Home equity 1,946 2,055 475 1,995 80 Residential real estate 5,467 5,600 606 5,399 241 Premium finance receivables Commercial insurance — — — — — Life insurance — — — — — Purchased life insurance — — — — — Consumer and other 211 213 26 214 10 Impaired loans with no related ASC 310 allowance recorded Commercial Commercial and industrial $ 5,797 $ 8,862 $ — $ 6,664 $ 595 Franchise — — — — — Mortgage warehouse lines of credit — — — — — Community Advantage—homeowners association — — — — — Aircraft — — — — — Asset-based lending 25 1,952 — 87 100 Tax exempt — — — — — Leases — — — — — Other — — — — — Commercial real estate Residential construction — — — — — Commercial construction 2,875 3,085 — 3,183 151 Land 10,210 10,941 — 10,268 430 Office 4,132 5,020 — 4,445 216 Industrial 4,160 4,498 — 3,807 286 Retail 5,487 7,470 — 6,915 330 Multi-family — — — — — Mixed use and other 7,985 8,804 — 9,533 449 Home equity 4,453 6,172 — 4,666 256 Residential real estate 12,640 14,334 — 12,682 595 Premium finance receivables Commercial insurance — — — — — Life insurance — — — — — Purchased life insurance — — — — — Consumer and other 161 222 — 173 11 Total loans, net of unearned income, excluding covered loans $ 127,412 $ 153,742 $ 6,270 $ 134,967 $ 7,190 For the Nine Months Ended As of September 30, 2014 September 30, 2014 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (Dollars in thousands) Impaired loans with a related ASC 310 allowance recorded Commercial Commercial and industrial $ 8,384 $ 11,333 $ 2,273 $ 9,367 $ 537 Franchise — — — — — Mortgage warehouse lines of credit — — — — — Community Advantage—homeowners association — — — — — Aircraft — — — — — Asset-based lending — — — — — Tax exempt — — — — — Leases — — — — — Other — — — — — Commercial real estate Residential construction — — — — — Commercial construction 425 440 195 432 15 Land 7,502 7,502 40 7,572 193 Office 8,198 9,671 322 8,493 300 Industrial 2,567 2,672 151 2,595 92 Retail 10,861 11,279 921 10,826 362 Multi-family 2,822 3,335 107 2,847 109 Mixed use and other 21,172 21,453 1,738 20,891 656 Home equity 1,438 1,533 292 1,491 42 Residential real estate 4,889 4,986 485 4,783 157 Premium finance receivables — Commercial insurance — — — — — Life insurance — — — — — Purchased life insurance — — — — — Consumer and other 213 215 53 215 6 Impaired loans with no related ASC 310 allowance recorded Commercial Commercial and industrial $ 7,563 $ 8,285 $ — $ 7,909 $ 306 Franchise — — — — — Mortgage warehouse lines of credit — — — — — Community Advantage—homeowners association — — — — — Aircraft — — — — — Asset-based lending 25 1,952 — 108 75 Tax exempt — — — — — Leases — — — — — Other — — — — — Commercial real estate Residential construction — — — — — Commercial construction 2,803 2,803 — 2,777 98 Land 8,101 12,432 — 8,969 538 Office 5,159 6,359 — 6,679 244 Industrial 1,903 2,110 — 1,962 76 Retail 8,095 10,177 — 8,647 342 Multi-family — — — — — Mixed use and other 9,042 11,772 — 9,467 445 Home equity 4,484 6,490 — 4,806 207 Residential real estate 13,234 14,953 — 13,291 496 Premium finance receivables Commercial insurance — — — — — Life insurance — — — — — Purchased life insurance — — — — — Consumer and other 657 721 — 665 29 Total loans, net of unearned income, excluding covered loans $ 129,537 $ 152,473 $ 6,577 $ 134,792 $ 5,325 TDRs At September 30, 2015 , the Company had $59.3 million in loans modified in TDRs. The $59.3 million in TDRs represents 114 credits in which economic concessions were granted to certain borrowers to better align the terms of their loans with their current ability to pay. The Company’s approach to restructuring loans, excluding PCI loans, is built on its credit risk rating system which requires credit management personnel to assign a credit risk rating to each loan. In each case, the loan officer is responsible for recommending a credit risk rating for each loan and ensuring the credit risk ratings are appropriate. These credit risk ratings are then reviewed and approved by the bank’s chief credit officer and/or concurrence credit officer. Credit risk ratings are determined by evaluating a number of factors including a borrower’s financial strength, cash flow coverage, collateral protection and guarantees. The Company’s credit risk rating scale is one through ten with higher scores indicating higher risk. In the case of loans rated six or worse following modification, the Company’s Managed Assets Division evaluates the loan and the credit risk rating and determines that the loan has been restructured to be reasonably assured of repayment and of performance according to the modified terms and is supported by a current, well-documented credit assessment of the borrower’s financial condition and prospects for repayment under the revised terms. A modification of a loan, excluding PCI loans, with an existing credit risk rating of six or worse or a modification of any other credit which will result in a restructured credit risk rating of six or worse, must be reviewed for possible TDR classification. In that event, our Managed Assets Division conducts an overall credit and collateral review. A modification of these loans is considered to be a TDR if both (1) the borrower is experiencing financial difficulty and (2) for economic or legal reasons, the bank grants a concession to a borrower that it would not otherwise consider. The modification of a loan, excluding PCI loans, where the credit risk rating is five or better both before and after such modification is not considered to be a TDR. Based on the Company’s credit risk rating system, it considers that borrowers whose credit risk rating is five or better are not experiencing financial difficulties and therefore, are not considered TDRs. All credits determined to be a TDR will continue to be classified as a TDR in all subsequent periods, unless at any subsequent re-modification the borrower has been in compliance with the loan’s modified terms for a period of six months (including over a calendar year-end) and the current interest rate represents a market rate at the time of restructuring. The Managed Assets Division, in consultation with the respective loan officer, determines whether the modified interest rate represented a current market rate at the time of restructuring. Using knowledge of current market conditions and rates, competitive pricing on recent loan originations, and an assessment of various characteristics of the modified loan (including collateral position and payment history), an appropriate market rate for a new borrower with similar risk is determined. If the modified interest rate meets or exceeds this market rate for a new borrower with similar risk, the modified interest rate represents a market rate at the time of restructuring. Additionally, before removing a loan from TDR classification, a review of the current or previously measured impairment on the loan and any concerns related to future performance by the borrower is conducted. If concerns exist about the future ability of the borrower to meet its obligations under the loans based on a credit review by the Managed Assets Division, the TDR classification is not removed from the loan. TDRs are reviewed at the time of the modification and on a quarterly basis to determine if a specific reserve is necessary. The carrying amount of the loan is compared to the expected payments to be received, discounted at the loan's original rate, or for collateral dependent loans, to the fair value of the collateral. Any shortfall is recorded as a specific reserve. The Company, in accordance with ASC 310-10, continues to individually measure impairment of these loans after the TDR classification is removed. Each TDR was reviewed for impairment |