Portfolio Loans | PORTFOLIO LOANS Below is a summary of Portfolio loans by category at March 31, 2016 and December 31, 2015 : (in thousands) March 31, 2016 December 31, 2015 Commercial and industrial $ 1,544,980 $ 1,484,327 Real estate: Commercial - investor owned 439,355 428,064 Commercial - owner occupied 334,180 342,959 Construction and land development 175,324 161,061 Residential 202,255 196,498 Total real estate loans 1,151,114 1,128,582 Consumer and other 136,358 137,537 Portfolio loans 2,832,452 2,750,446 Unearned loan fees, net 164 291 Portfolio loans, including unearned loan fees $ 2,832,616 $ 2,750,737 A summary of the year-to-date activity in the allowance for loan losses and the recorded investment in Portfolio loans by class and category based on impairment method through March 31, 2016 , and at December 31, 2015 , is as follows: (in thousands) Commercial and industrial CRE - investor owned CRE - owner occupied Construction and land development Residential real estate Consumer and other Total Allowance for loan losses: Balance at December 31, 2015 $ 22,056 $ 3,484 $ 2,969 $ 1,704 $ 1,796 $ 1,432 $ 33,441 Provision (provision reversal) charged to expense 1,120 (116 ) 80 (65 ) 11 (197 ) 833 Losses charged off (68 ) — — — — (5 ) (73 ) Recoveries 53 7 68 6 34 4 172 Balance at March 31, 2016 $ 23,161 $ 3,375 $ 3,117 $ 1,645 $ 1,841 $ 1,234 $ 34,373 (in thousands) Commercial and industrial CRE - investor owned CRE - owner occupied Construction and land development Residential real estate Consumer and other Total Balance March 31, 2016 Allowance for loan losses - Ending balance: Individually evaluated for impairment $ 2,042 $ — $ 28 $ 298 $ 4 $ — $ 2,372 Collectively evaluated for impairment 21,119 3,375 3,089 1,347 1,837 1,234 32,001 Total $ 23,161 $ 3,375 $ 3,117 $ 1,645 $ 1,841 $ 1,234 $ 34,373 Loans - Ending balance: Individually evaluated for impairment $ 5,209 $ 894 $ 1,820 $ 2,652 $ 679 $ — $ 11,254 Collectively evaluated for impairment 1,539,771 438,461 332,360 172,672 201,576 136,522 2,821,362 Total $ 1,544,980 $ 439,355 $ 334,180 $ 175,324 $ 202,255 $ 136,522 $ 2,832,616 Balance December 31, 2015 Allowance for Loan Losses - Ending Balance: Individually evaluated for impairment $ 1,953 $ — $ 6 $ 369 $ 7 $ — $ 2,335 Collectively evaluated for impairment 20,103 3,484 2,963 1,335 1,789 1,432 31,106 Total $ 22,056 $ 3,484 $ 2,969 $ 1,704 $ 1,796 $ 1,432 $ 33,441 Loans - Ending balance: Individually evaluated for impairment $ 4,514 $ 921 $ 1,962 $ 2,800 $ 681 $ — $ 10,878 Collectively evaluated for impairment 1,479,813 427,143 340,997 158,261 195,817 137,828 2,739,859 Total $ 1,484,327 $ 428,064 $ 342,959 $ 161,061 $ 196,498 $ 137,828 $ 2,750,737 A summary of Portfolio loans individually evaluated for impairment by category at March 31, 2016 and December 31, 2015 , is as follows: March 31, 2016 (in thousands) Unpaid Recorded Recorded Allowance Total Related Allowance Average Commercial and industrial $ 6,683 $ 1,362 $ 4,444 $ 5,806 $ 2,042 $ 7,182 Real estate loans: Commercial - investor owned 896 648 248 896 — 908 Commercial - owner occupied 86 86 — 86 28 79 Construction and land development 4,259 2,975 379 3,354 298 2,747 Residential 709 644 65 709 4 680 Consumer and other — — — — — — Total $ 12,633 $ 5,715 $ 5,136 $ 10,851 $ 2,372 $ 11,596 December 31, 2015 (in thousands) Unpaid Recorded Recorded Allowance Total Related Allowance Average Commercial and industrial $ 5,554 $ 509 $ 4,204 $ 4,713 $ 1,953 $ 6,970 Real estate loans: Commercial - investor owned 927 927 — 927 — 970 Commercial - owner occupied 329 85 113 198 6 301 Construction and land development 4,349 2,914 530 3,444 369 3,001 Residential 705 637 68 705 7 682 Consumer and other — — — — — — Total $ 11,864 $ 5,072 $ 4,915 $ 9,987 $ 2,335 $ 11,924 The following table presents details for past due and impaired loans: Three months ended March 31, (in thousands) 2016 2015 Total interest income that would have been recognized under original terms $ 148 $ 315 Total cash received and recognized as interest income on non-accrual loans 6 27 Total interest income recognized on impaired loans 6 13 There were no loans over 90 days past due and still accruing interest at March 31, 2016 or December 31, 2015 . At March 31, 2016 , there were no unadvanced commitments on impaired loans. The recorded investment in impaired Portfolio loans by category at March 31, 2016 and December 31, 2015 , is as follows: March 31, 2016 (in thousands) Non-accrual Restructured Loans over 90 days past due and still accruing interest Total Commercial and industrial $ 5,516 $ 290 $ — $ 5,806 Real estate: Commercial - investor owned 896 — — 896 Commercial - owner occupied 86 — — 86 Construction and land development 3,354 — — 3,354 Residential 709 — — 709 Consumer and other — — — — Total $ 10,561 $ 290 $ — $ 10,851 December 31, 2015 (in thousands) Non-accrual Restructured Loans over 90 days past due and still accruing interest Total Commercial and industrial $ 4,406 $ 307 $ — $ 4,713 Real estate: Commercial - investor owned 927 — — 927 Commercial - owner occupied 198 — — 198 Construction and land development 3,444 — — 3,444 Residential 705 — — 705 Consumer and other — — — — Total $ 9,680 $ 307 $ — $ 9,987 The Company restructured two Portfolio loans with a recorded balance of $0.3 million during the three months ended March 31, 2016 , and none during the three months ended March 31, 2015 . The restructured loans primarily resulted from interest rate concessions and changing the terms of the loans. As of March 31, 2016 , the Company had $0.2 million specific reserves allocated to loans that have been restructured. There were no Portfolio loans restructured that subsequently defaulted during the three months ended March 31, 2016 or 2015 . The aging of the recorded investment in past due Portfolio loans by portfolio class and category at March 31, 2016 and December 31, 2015 is shown below. March 31, 2016 (in thousands) 30-89 Days Past Due 90 or More Past Due Total Past Due Current Total Commercial and industrial $ 865 $ 716 $ 1,581 $ 1,543,399 $ 1,544,980 Real estate: Commercial - investor owned 3,990 — 3,990 435,365 439,355 Commercial - owner occupied — 79 79 334,101 334,180 Construction and land development — 2,273 2,273 173,051 175,324 Residential 161 614 775 201,480 202,255 Consumer and other 15 — 15 136,507 136,522 Total $ 5,031 $ 3,682 $ 8,713 $ 2,823,903 $ 2,832,616 December 31, 2015 (in thousands) 30-89 Days Past Due 90 or More Past Due Total Past Due Current Total Commercial and industrial $ 505 $ 888 $ 1,393 $ 1,482,934 $ 1,484,327 Real estate: Commercial - investor owned 464 — 464 427,600 428,064 Commercial - owner occupied 94 184 278 342,681 342,959 Construction and land development 384 2,273 2,657 158,404 161,061 Residential 70 681 751 195,747 196,498 Consumer and other 20 — 20 137,808 137,828 Total $ 1,537 $ 4,026 $ 5,563 $ 2,745,174 $ 2,750,737 The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, payment experience, credit documentation, and current economic factors among other factors. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings: • Grades 1 , 2 , and 3 – Includes loans to borrowers with a continuous record of strong earnings, sound balance sheet condition and capitalization, ample liquidity with solid cash flow, and whose management team has experience and depth within their industry. • Grade 4 – Includes loans to borrowers with positive trends in profitability, satisfactory capitalization and balance sheet condition, and sufficient liquidity and cash flow. • Grade 5 – Includes loans to borrowers that may display fluctuating trends in sales, profitability, capitalization, liquidity, and cash flow. • Grade 6 – Includes loans to borrowers where an adverse change or perceived weakness has occurred, but may be correctable in the near future. Alternatively, this rating category may also include circumstances where the borrower is starting to reverse a negative trend or condition, or has recently been upgraded from a 7 , 8 , or 9 rating. • Grade 7 – Watch credits are borrowers that have experienced financial setback of a nature that is not determined to be severe or influence ‘ongoing concern’ expectations. Although possible, no loss is anticipated, due to strong collateral and/or guarantor support. • Grade 8 – Substandard credits will include those borrowers characterized by significant losses and sustained downward trends in balance sheet condition, liquidity, and cash flow. Repayment reliance may have shifted to secondary sources. Collateral exposure may exist and additional reserves may be warranted. • Grade 9 – Doubtful credits include borrowers that may show deteriorating trends that are unlikely to be corrected. Collateral values may appear insufficient for full recovery, therefore requiring a partial charge-off, or debt renegotiation with the borrower. The borrower may have declared bankruptcy or bankruptcy is likely in the near term. All doubtful rated credits will be on non-accrual. The recorded investment by risk category of the Portfolio loans by portfolio class and category at March 31, 2016 , which is based upon the most recent analysis performed, and December 31, 2015 is as follows: March 31, 2016 (in thousands) Pass (1-6) Watch (7) Substandard (8) Doubtful (9) Total Commercial and industrial $ 1,403,863 $ 99,432 $ 41,685 $ — $ 1,544,980 Real estate: Commercial - investor owned 418,870 15,748 4,737 — 439,355 Commercial - owner occupied 301,626 28,748 3,806 — 334,180 Construction and land development 164,813 6,402 4,109 — 175,324 Residential 193,681 5,569 3,005 — 202,255 Consumer and other 129,833 717 5,972 — 136,522 Total $ 2,612,686 $ 156,616 $ 63,314 $ — $ 2,832,616 December 31, 2015 (in thousands) Pass (1-6) Watch (7) Substandard (8) Doubtful (9) Total Commercial and industrial $ 1,356,864 $ 90,370 $ 37,093 $ — $ 1,484,327 Real estate: Commercial - investor owned 403,820 18,868 5,376 — 428,064 Commercial - owner occupied 314,791 24,727 3,441 — 342,959 Construction and land development 146,601 10,114 4,346 — 161,061 Residential 188,269 5,138 3,091 — 196,498 Consumer and other 131,060 721 6,047 — 137,828 Total $ 2,541,405 $ 149,938 $ 59,394 $ — $ 2,750,737 |