Allowance for Credit Losses [Text Block] | 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 December 31, 2015 and 2014 : As of December 31, 2015 (Dollars in thousands) Nonaccrual 90+ days and still accruing 60-89 days past due 30-59 days past due Current Total Loans Loan Balances: Commercial Commercial and industrial $ 12,416 $ 6 $ 6,749 $ 12,930 $ 2,819,253 $ 2,851,354 Franchise — — — — 245,228 245,228 Mortgage warehouse lines of credit — — — — 222,806 222,806 Community Advantage — homeowners association — — — — 130,986 130,986 Aircraft 288 — — — 5,039 5,327 Asset-based lending 8 — 3,864 1,844 736,968 742,684 Tax exempt — — — — 267,273 267,273 Leases — 535 748 4,192 220,599 226,074 Other — — — — 3,588 3,588 PCI - commercial (1) — 892 — 2,510 15,187 18,589 Total commercial $ 12,712 $ 1,433 $ 11,361 $ 21,476 $ 4,666,927 $ 4,713,909 Commercial real estate: Residential construction $ 273 $ — $ — $ 45 $ 70,063 $ 70,381 Commercial construction 33 — 1,371 1,600 285,275 288,279 Land 1,751 — — 120 76,546 78,417 Office 4,619 — 764 3,817 853,801 863,001 Industrial 9,564 — 1,868 1,009 715,207 727,648 Retail 1,760 — 442 2,310 863,887 868,399 Multi-family 1,954 — 597 6,568 733,230 742,349 Mixed use and other 6,691 — 6,723 7,215 1,712,187 1,732,816 PCI - commercial real estate (1) — 22,111 4,662 16,559 114,667 157,999 Total commercial real estate $ 26,645 $ 22,111 $ 16,427 $ 39,243 $ 5,424,863 $ 5,529,289 Home equity 6,848 — 1,889 5,517 770,421 784,675 Residential real estate 12,043 — 1,964 3,824 586,154 603,985 PCI - residential real estate (1) — 488 202 79 2,697 3,466 Premium finance receivables Commercial insurance loans 14,561 10,294 6,624 21,656 2,321,786 2,374,921 Life insurance loans — — 3,432 11,140 2,578,632 2,593,204 PCI - life insurance loans (1) — — — — 368,292 368,292 Consumer and other 263 211 204 1,187 144,511 146,376 Total loans, net of unearned income, excluding covered loans $ 73,072 $ 34,537 $ 42,103 $ 104,122 $ 16,864,283 $ 17,118,117 Covered loans 5,878 7,335 703 5,774 128,983 148,673 Total loans, net of unearned income $ 78,950 $ 41,872 $ 42,806 $ 109,896 $ 16,993,266 $ 17,266,790 (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. See Note 4 - Loans for further discussion of these purchased loans. As of December 31, 2014 (Dollars in thousands) Nonaccrual 90+ days and still accruing 60-89 days past due 30-59 days past due Current Total Loans Loan Balances: Commercial Commercial and industrial $ 9,132 $ 474 $ 3,161 $ 7,492 $ 2,194,221 $ 2,214,480 Franchise — — 308 1,219 250,673 252,200 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. See Note 4 - Loans for further discussion of these purchased loans. 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 December 31, 2015 and 2014 : Performing Non-performing Total December 31, December 31, December 31, December 31, December 31, December 31, (Dollars in thousands) 2015 2014 2015 2014 2015 2014 Loan Balances: Commercial Commercial and industrial $ 2,838,932 $ 2,204,874 $ 12,422 $ 9,606 $ 2,851,354 $ 2,214,480 Franchise 245,228 252,200 — — 245,228 252,200 Mortgage warehouse lines of credit 222,806 139,003 — — 222,806 139,003 Community Advantage—homeowners association 130,986 106,364 — — 130,986 106,364 Aircraft 5,039 8,065 288 — 5,327 8,065 Asset-based lending 742,676 806,377 8 25 742,684 806,402 Tax exempt 267,273 217,487 — — 267,273 217,487 Leases 225,539 160,136 535 — 226,074 160,136 Other 3,588 11,034 — — 3,588 11,034 PCI - commercial (1) 18,589 9,223 — — 18,589 9,223 Total commercial $ 4,700,656 $ 3,914,763 $ 13,253 $ 9,631 $ 4,713,909 $ 3,924,394 Commercial real estate Residential construction $ 70,108 $ 38,696 $ 273 $ — $ 70,381 $ 38,696 Commercial construction 288,246 187,536 33 230 288,279 187,766 Land 76,666 89,174 1,751 2,656 78,417 91,830 Office 858,382 698,144 4,619 7,288 863,001 705,432 Industrial 718,084 621,578 9,564 2,392 727,648 623,970 Retail 866,639 727,336 1,760 4,152 868,399 731,488 Multi-family 740,395 605,493 1,954 249 742,349 605,742 Mixed use and other 1,726,125 1,455,479 6,691 9,638 1,732,816 1,465,117 PCI - commercial real estate (1) 157,999 55,712 — — 157,999 55,712 Total commercial real estate $ 5,502,644 $ 4,479,148 $ 26,645 $ 26,605 $ 5,529,289 $ 4,505,753 Home equity 777,827 710,119 6,848 6,174 784,675 716,293 Residential real estate 591,942 465,806 12,043 15,502 603,985 481,308 PCI - residential real estate (1) 3,466 2,234 — — 3,466 2,234 Premium finance receivables Commercial insurance loans 2,350,066 2,330,463 24,855 20,370 2,374,921 2,350,833 Life insurance loans 2,593,204 1,884,092 — — 2,593,204 1,884,092 PCI - life insurance loans (1) 368,292 393,479 — — 368,292 393,479 Consumer and other 145,963 150,617 413 395 146,376 151,012 Total loans, net of unearned income, excluding covered loans $ 17,034,060 $ 14,330,721 $ 84,057 $ 78,677 $ 17,118,117 $ 14,409,398 (1) PCI loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. See Note 4 - Loans for further discussion of these purchased loans. A summary of the activity in the allowance for credit losses by loan portfolio (excluding covered loans) for the years ended December 31, 2015 and 2014 is as follows: Year Ended December 31, 2015 (Dollars in thousands) Commercial Commercial Real Estate Home Equity Residential Real Estate Premium Finance Receivable Consumer and Other Total, Excluding Covered Loans 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 (51 ) (419 ) — (125 ) (142 ) — (737 ) Reclassification to/from allowance for unfunded lending-related commitments — (138 ) — — — — (138 ) Charge-offs (4,253 ) (6,543 ) (4,227 ) (2,903 ) (7,060 ) (521 ) (25,507 ) Recoveries 1,432 2,840 312 283 1,304 159 6,330 Provision for credit losses 7,308 12,485 3,427 3,261 6,618 648 33,747 Allowance for loan losses at period end $ 36,135 $ 43,758 $ 12,012 $ 4,734 $ 7,233 $ 1,528 $ 105,400 Allowance for unfunded lending-related commitments at period end — 949 — — — — 949 Allowance for credit losses at period end $ 36,135 $ 44,707 $ 12,012 $ 4,734 $ 7,233 $ 1,528 $ 106,349 Individually evaluated for impairment 2,026 3,733 333 316 — 10 6,418 Collectively evaluated for impairment 34,025 40,625 11,679 4,416 7,233 1,518 99,496 Loans acquired with deteriorated credit quality 84 349 — 2 — — 435 Loans at period end Individually evaluated for impairment $ 18,789 $ 59,871 $ 6,847 $ 16,522 $ — $ 392 $ 102,421 Collectively evaluated for impairment 4,676,531 5,311,419 777,828 587,463 4,968,125 144,640 16,466,006 Loans acquired with deteriorated credit quality 18,589 157,999 — 3,466 368,292 1,344 549,690 Year Ended December 31, 2014 (Dollars in thousands) Commercial Commercial Real Estate Home Equity Residential Real Estate Premium Finance Receivable Consumer and Other Total, Excluding Covered Loans 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 (83 ) (665 ) (3 ) (9 ) (64 ) — (824 ) Reclassification to/from allowance for unfunded lending-related commitments — (56 ) — — — — (56 ) Charge-offs (4,153 ) (15,788 ) (3,895 ) (1,750 ) (5,726 ) (792 ) (32,104 ) Recoveries 1,198 1,334 535 335 1,150 326 4,878 Provision for credit losses 11,645 2,050 3,252 534 5,570 (162 ) 22,889 Allowance for loan losses at period end $ 31,699 $ 35,533 $ 12,500 $ 4,218 $ 6,513 $ 1,242 $ 91,705 Allowance for unfunded lending-related commitments at period end — 775 — — — — 775 Allowance for credit losses at period end $ 31,699 $ 36,308 $ 12,500 $ 4,218 $ 6,513 $ 1,242 $ 92,480 Individually evaluated for impairment 1,936 3,260 475 632 — 26 6,329 Collectively evaluated for impairment 29,763 32,960 12,025 3,482 6,513 1,197 85,940 Loans acquired with deteriorated credit quality — 88 — 104 — 19 211 Loans at period end Individually evaluated for impairment $ 16,326 $ 87,225 $ 6,399 $ 18,365 $ — $ 372 $ 128,687 Collectively evaluated for impairment 3,898,845 4,362,816 709,894 462,943 4,234,925 150,640 13,820,063 Loans acquired with deteriorated credit quality 9,223 55,712 — 2,234 393,479 — 460,648 A summary of activity in the allowance for covered loan losses for the years ended December 31, 2015 and 2014 is as follows: Years Ended December 31, December 31, (Dollars in thousands) 2015 2014 Balance at beginning of period $ 2,131 $ 10,092 Provision for covered loan losses before benefit attributable to FDIC loss share agreements (5,350 ) (11,762 ) Benefit attributable to FDIC loss share agreements 4,545 9,410 Net provision for covered loan losses $ (805 ) $ (2,352 ) (Decrease) increase in FDIC indemnification asset (4,545 ) (9,410 ) Loans charged-off (827 ) (5,521 ) Recoveries of loans charged-off 7,072 9,322 Net recoveries (charge-offs) $ 6,245 $ 3,801 Balance at end of period $ 3,026 $ 2,131 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 loss share asset or reduce any FDIC loss share liability. 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 loss share asset or increase any FDIC loss share liability. Additions to expected losses will require an increase to the allowance for loan losses, and a corresponding increase to the FDIC loss share asset or reduction to any FDIC loss share liability. See "FDIC-Assisted Transactions" within Note 7 - Business Combinations for more detail. Impaired Loans A summary of impaired loans, including TDRs, at December 31, 2015 and 2014 is as follows: (Dollars in thousands) 2015 2014 Impaired loans (included in non-performing and restructured loans): Impaired loans with an allowance for loan loss required (1) $ 49,961 $ 69,487 Impaired loans with no allowance for loan loss required 51,294 57,925 Total impaired loans (2) $ 101,255 $ 127,412 Allowance for loan losses related to impaired loans $ 6,380 $ 6,270 TDRs 51,853 82,275 Reduction of interest income from non-accrual loans 3,006 2,222 Interest income recognized on impaired loans 6,198 7,190 (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 as of December 31, 2015 and 2014 : As of For the Year Ended December 31, 2015 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Impaired loans with a related ASC 310 allowance recorded Commercial Commercial and industrial $ 9,754 $ 12,498 $ 2,012 $ 10,123 $ 792 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 4,929 8,711 41 5,127 547 Office 5,050 6,051 632 5,394 314 Industrial 8,413 9,105 1,943 10,590 565 Retail 8,527 9,230 343 8,596 386 Multi-family 370 370 202 372 25 Mixed use and other 7,590 7,708 570 7,681 328 Home equity 423 435 333 351 16 Residential real estate 4,710 4,799 294 4,618 182 Premium finance receivables Commercial insurance — — — — — Life insurance — — — — — PCI - life insurance — — — — — Consumer and other 195 220 10 216 12 Impaired loans with no related ASC 310 allowance recorded Commercial Commercial and industrial $ 8,274 $ 9,537 $ — $ 9,510 $ 494 Franchise — — — — — Mortgage warehouse lines of credit — — — — — Community Advantage—homeowners association — — — — — Aircraft 288 378 — 375 27 Asset-based lending 8 1,570 — 5 88 Tax exempt — — — — — Leases — — — — — Other — — — — — Commercial real estate Residential construction 2,296 2,296 — 2,300 112 Commercial construction 32 33 — 16 1 Land 888 2,373 — 929 90 Office 3,500 4,484 — 3,613 237 Industrial 2,217 2,426 — 2,286 188 Retail 2,757 2,925 — 2,897 129 Multi-family 2,344 2,807 — 2,390 117 Mixed use and other 10,510 14,060 — 11,939 624 Home equity 6,424 7,987 — 5,738 288 Residential real estate 11,559 13,979 — 11,903 624 Premium finance receivables Commercial insurance — — — — — Life insurance — — — — — PCI - life insurance — — — — — Consumer and other 197 267 — 201 12 Total loans, net of unearned income, excluding covered loans $ 101,255 $ 124,249 $ 6,380 $ 107,170 $ 6,198 As of For the Year Ended December 31, 2014 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized 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 — — — — — PCI - 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 — — — — — PCI - 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 Average recorded investment in impaired loans for the years ended December 31, 2015 , 2014 , and 2013 were $107.2 million , $135.0 million , and $170.7 million , respectively. Interest income recognized on impaired loans was $6.2 million , $7.2 million , and $8.9 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. TDRs At December 31, 2015 , the Company had $51.9 million in loans modified in TDRs. The $51.9 million in TDRs represents 102 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 6 or worse or a modification of any other credit, which will result in a restructured credit risk rating of 6 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 5 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 5 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 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 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 at December 31, 2015 and approximately $1.8 million of impairment was present and appropriately reserved for through the Company’s normal reserving methodology in the Company’s allowance for loan losses. For TDRs in which impairment is calculated by the present value of future cash flows, the Company records interest income representing the decrease in impairment resulting from the passage of time during the respective period, which differs from interest income from contractually required interest on these specific loans. For the year ended December 31, 2015 and 2014, the Company recorded $573,000 and $724,000 , respectively, in interest income representing this decrease in impairment. TDRs may arise in which, due to financial difficulties experienced by the borrower, the Company obtains through physical possession one or more collateral assets in satisfaction of all or part of an existing credit. Once possession is obtained, the Company reclassifies the appropriate portion of the remaining balance of the credit from loans to OREO, which is included within other assets in the Consolidated Statements of Condition. For any residential real estate property collateralizing a consumer mortgage loan, the Company is considered to possess the related collateral only if legal title is obtained upon completion of foreclosure, or the borrower conveys all interest in the residential real estate property to the Company through completion of a deed in lieu of foreclosure or similar legal agreement. Excluding covered OREO, at December 31, 2015, the Company had $14.2 million of foreclosed residential real estate properties included within OREO. The tables below present a summary of the post-modification balance of loans restructured during the years ended December 31, 2015 , 2014 , and 2013 , which represent TDRs: Year ended December 31, 2015 Total (1)(2) Extension at Below Market Terms (2) Reduction of Interest Rate (2) Modification to Interest-only Payments (2) Forgiveness of Debt (2) (Dollars in thousands) Count Balance Count Balance Count Balance Count Balance Count Balance Commercial Commercial and industrial — $ — — $ — — $ — — $ — — $ — Commercial real estate Commercial construction — — — — — — — — — — Land — — — — — — — — — — Office — — — — — — — — — — Industrial 1 169 1 169 — — 1 169 — — Retail — — — — — — — — — — Multi-family — — — — — — — — — — Mixed use and other 2 201 2 201 — — 2 201 — — Residential real estate and other 9 1,664 9 1,664 5 674 1 50 — — Total loans 12 $ 2,034 12 $ 2,034 5 $ 674 4 $ 420 — $ — Year ended December 31, 2014 Total (1)(2) Extension at Below Market Terms (2) Reduction of Interest Rate (2) Modification to Interest-only Payments (2) Forgiveness of Debt (2) (Dollars in thousands) Count Balance Count Balance Count Balance Count Balance Count Balance Commercial Commercial and industrial 2 $ 1,549 1 $ 88 1 $ 1,461 2 $ 1,549 — $ — Commercial real estate Commercial construction — — — — — — — — — — Land — — — — — — — — — — Office 2 1,510 2 1,510 — — — — — — Industrial 2 1,763 2 1,763 1 685 1 1,078 — — Retail 1 202 1 202 — — — — — — Multi-family 1 181 — — 1 181 — — — — Mixed use and other 7 4,926 3 2,837 7 4,926 1 1,273 — — Residential real estate and other 6 1,836 5 1,625 4 1,138 1 220 — — Total loans 21 $ 11,967 14 $ 8,025 14 $ 8,391 5 $ 4,120 — $ — Year ended December 31, 2013 Total (1)(2) Extension at Below Market Terms (2) Reduction of Interest Rate (2) Modification to Interest-only Payments (2) Forgiveness of Debt (2) (Dollars in thousands) Count Balance Count Balance Count Balance Count Balance Count Balance Commercial Commercial and industrial 6 $ 708 5 $ 573 4 $ 553 2 $ 185 — $ — Commercial real estate Commercial construction 3 6,120 3 6,120 — — 3 6,120 — — Land 3 2,639 3 2,639 2 287 — — 1 73 Office 4 4,021 4 4,021 1 556 — — — — Industrial 1 949 1 949 1 949 — — — — Retail 1 200 1 200 1 200 — — — — Multi-family 1 705 1 705 1 705 — — — — Mixed use and other 6 5,042 6 5,042 5 4,947 1 932 — — Residential real estate and other 10 2,296 6 1,613 7 931 2 234 1 1,000 Total loans 35 $ 22,680 30 $ 21,862 22 $ 9,128 8 $ 7,471 2 $ 1,073 (1) TDRs may have more than one modification representing a concession. As such, TDRs during the period may be represented in more than one of the categories noted above. (2) Balances represent the recorded investment in the loan at the time of the restructuring. During the year ended December 31, 2015 , $2.0 million , or 12 loans, were determined to be TDRs, compared to $12.0 million , or 21 loans, and $22.7 million , or 35 loans, in the years ended 2014 and 2013 , respectively. Of these loans extended at below market terms, the weighted average extension had a term of approximately 45 months in 2015 compared to 19 months in 2014 and 18 months in 2013 . Further, the weighted average decrease in the stated interest rate for loans with a reduction of interest rate during the period was approximately 358 basis points, 170 basis points and 184 basis points during the years ended December 31, 2015 , 2014 , and 2013 , respectively. Interest-only payment terms were approximately 17 months during the year ended 2015 compared to seven months and 11 months for the years ended 2014 and 2013 , respectively. Additionally, no principal balances were forgiven during 2015 and 2014 , compared to $1.0 million forgiven during 2013 . The tables below present a summary of all loans restructured in TDRs during the years ended December 31, 2015 , 2014 , and 2013 , and such loans which were in payment default under the restructured terms during the respective periods: Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013 Total (1)(3) Payments in Default (2)(3) Total (1)(3) Payments in Default (2)(3) Total (1)(3) Payments in Default (2)(3) (Dollars in thousands) Count Balance Count Balance Count Balance Count Balance Count Balance Count Balance Commercial Commercial and industrial — $ — — $ — 2 $ 1,549 1 $ 88 6 $ 708 1 $ 20 Commercial real-estate Commercial construction — — — — — — — — 3 6,120 — — Land — — — — — — — — 3 2,639 1 215 Office — — — — 2 1,510 — — 4 4,021 1 1,648 Industrial 1 169 — — 2 1,763 1 1,078 1 949 — — Retail — — — — 1 202 — — 1 200 — — Multi-family — — — — 1 181 1 181 1 705 1 705 Mixed use and other 2 201 2 201 7 4,926 2 569 6 5,042 1 95 Residential real estate and other 9 1,664 4 568 6 1,836 1 211 10 2,296 — — Total loans 12 $ 2,034 6 $ 769 21 $ 11,967 6 $ 2,127 35 $ 22,680 5 $ 2,683 (1) Total TDRs represent all lo |