| Loans And Allowance For Credit Losses | LOANS AND ALLOWANCE FOR CREDIT LOSSES Loans and Loans Held for Sale Loans are summarized as follows according to major portfolio segment and specific loan class: (In thousands) June 30, December 31, Loans held for sale $ 146,512 $ 149,880 Commercial: Commercial and industrial $ 13,757,123 $ 13,211,481 Leasing 426,449 441,666 Owner occupied 6,988,647 7,150,028 Municipal 756,145 675,839 Total commercial 21,928,364 21,479,014 Commercial real estate: Construction and land development 2,088,250 1,841,502 Term 9,229,683 8,514,401 Total commercial real estate 11,317,933 10,355,903 Consumer: Home equity credit line 2,507,176 2,416,357 1-4 family residential 5,680,050 5,382,099 Construction and other consumer real estate 419,299 385,240 Bankcard and other revolving plans 459,707 443,780 Other 189,046 187,149 Total consumer 9,255,278 8,814,625 Total loans $ 42,501,575 $ 40,649,542 Loan balances are presented net of unearned income and fees, which amounted to $149.7 million at June 30, 2016 and $150.3 million at December 31, 2015 . Owner occupied and commercial real estate (“CRE”) loans include unamortized premiums of approximately $23.0 million at June 30, 2016 and $26.2 million at December 31, 2015 . Municipal loans generally include loans to municipalities with the debt service being repaid from general funds or pledged revenues of the municipal entity, or to private commercial entities or 501(c)(3) not-for-profit entities utilizing a pass-through municipal entity to achieve favorable tax treatment. Land development loans included in the construction and land development loan class were $280.5 million at June 30, 2016 and $288.0 million at December 31, 2015 . Loans with a carrying value of approximately $26.0 billion at June 30, 2016 have been pledged at the Federal Reserve and the Federal Home Loan Bank (“FHLB”) of Des Moines as collateral for current and potential borrowings compared to $19.4 billion at December 31, 2015 at the Federal Reserve and various FHLBs. We sold loans totaling $317.5 million and $590.7 million for the three and six months ended June 30, 2016 , and $335.8 million and $636.2 million for the three and six months ended June 30, 2015 , respectively, that were classified as loans held for sale. The sold loans were derecognized from the balance sheet. Loans classified as loans held for sale primarily consist of conforming residential mortgages and the guaranteed portion of SBA loans. Amounts added to loans held for sale during these periods were $356.9 million and $592.6 million for the three and six months ended June 30, 2016 , and $359.0 million and $668.7 million for the three and six months ended June 30, 2015 , respectively. The principal balance of sold loans for which we retain servicing was approximately $1.2 billion at June 30, 2016 and $1.3 billion at December 31, 2015 . Income from loans sold, excluding servicing, was $5.9 million and $8.9 million for the three and six months ended June 30, 2016 , and $4.3 million and $8.9 million for the three and six months ended June 30, 2015 , respectively. Allowance for Credit Losses The allowance for credit losses (“ACL”) consists of the allowance for loan and lease losses (“ALLL”) (also referred to as the allowance for loan losses) and the reserve for unfunded lending commitments (“RULC”). Allowance for Loan and Lease Losses The ALLL represents our estimate of probable and estimable losses inherent in the loan and lease portfolio as of the balance sheet date. Losses are charged to the ALLL when recognized. Generally, commercial and CRE loans are charged off or charged down when they are determined to be uncollectible in whole or in part, or when 180 days past due unless the loan is well secured and in process of collection. Consumer loans are either charged off or charged down to net realizable value no later than the month in which they become 180 days past due. Closed-end consumer loans that are not secured by residential real estate are either charged off or charged down to net realizable value no later than the month in which they become 120 days past due. We establish the amount of the ALLL by analyzing the portfolio at least quarterly, and we adjust the provision for loan losses so the ALLL is at an appropriate level at the balance sheet date. We determine our ALLL as the best estimate within a range of estimated losses. The methodologies we use to estimate the ALLL depend upon the impairment status and loan portfolio. The methodology for impaired loans is discussed subsequently. For commercial and CRE loans with commitments equal to or greater than $750,000 , we assign internal risk grades using a comprehensive loan grading system based on financial and statistical models, individual credit analysis, and loan officer experience and judgment. The credit quality indicators discussed subsequently are based on this grading system. Estimated losses for these commercial and CRE loans are derived from a statistical analysis of our historical default and loss given default (“LGD”) experience over the period of January 2008 through the most recent full quarter. For consumer and small commercial and CRE loans with commitments less than $750,000 , we primarily use roll rate models to forecast probable inherent losses. Roll rate models measure the rate at which these loans migrate from one delinquency category to the next worse delinquency category, and eventually to loss. We estimate roll rates for these loans using recent delinquency and loss experience by segmenting our loan portfolios into separate pools based on common risk characteristics and separately calculating historical delinquency and loss experience for each pool. These roll rates are then applied to current delinquency levels to estimate probable inherent losses. The current status and historical changes in qualitative and environmental factors may not be reflected in our quantitative models. Thus, after applying historical loss experience, as described above, we review the quantitatively derived level of ALLL for each segment using qualitative criteria and use those criteria to determine our estimate within the range. We track various risk factors that influence our judgment regarding the level of the ALLL across the portfolio segments. These factors primarily include: • Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices • Changes in international, national, regional, and local economic and business conditions • Changes in the nature and volume of the portfolio and in the terms of loans • Changes in the experience, ability, and depth of lending management and other relevant staff • Changes in the volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified or graded loans • Changes in the quality of the loan review system • Changes in the value of underlying collateral for collateral-dependent loans • The existence and effect of any concentration of credit, and changes in the level of such concentrations • The effect of other external factors such as competition and legal and regulatory requirements The magnitude of the impact of these factors on our qualitative assessment of the ALLL changes from quarter to quarter according to changes made by management in its assessment of these factors, the extent these factors are already reflected in historic loss rates, and the extent changes in these factors diverge from one to another. We also consider the uncertainty inherent in the estimation process when evaluating the ALLL. Reserve for Unfunded Lending Commitments We also estimate a reserve for potential losses associated with off-balance sheet commitments, including standby letters of credit. We determine the RULC using the same procedures and methodologies that we use for the ALLL. The loss factors used in the RULC are the same as the loss factors used in the ALLL, and the qualitative adjustments used in the RULC are the same as the qualitative adjustments used in the ALLL. We adjust the Company’s unfunded lending commitments that are not unconditionally cancelable to an outstanding amount equivalent using credit conversion factors, and we apply the loss factors to the outstanding equivalents. Changes in ACL Assumptions During the first quarter of 2016, due to the consolidation of our separate banking charters, we enhanced our methodology to estimate the ACL on a Company-wide basis. As described previously, for large commercial and CRE loans, we began estimating historic loss factors by separately calculating historic default and LGD rates, instead of directly calculating loss rates for groupings of probability of default and LGD grades using a loss migration approach. For small commercial and CRE loans, we began using roll rate models to forecast probable inherent losses. For consumer loans, we began pooling loans by current loan-to-value, where applicable. The impact of these changes was largely neutral to the total ACL at implementation. Changes in the allowance for credit losses are summarized as follows: Three Months Ended June 30, 2016 (In thousands) Commercial Commercial real estate Consumer Total Allowance for loan losses Balance at beginning of period $ 463,987 $ 117,712 $ 30,195 $ 611,894 Additions: Provision for loan losses 25,186 9,621 (315 ) 34,492 Deductions: Gross loan and lease charge-offs (46,635 ) (7,839 ) (3,155 ) (57,629 ) Recoveries 14,526 2,073 2,989 19,588 Net loan and lease charge-offs (32,109 ) (5,766 ) (166 ) (38,041 ) Balance at end of period $ 457,064 $ 121,567 $ 29,714 $ 608,345 Reserve for unfunded lending commitments Balance at beginning of period $ 56,267 $ 12,759 $ — $ 69,026 Provision credited to earnings (2,744 ) (1,502 ) — (4,246 ) Balance at end of period $ 53,523 $ 11,257 $ — $ 64,780 Total allowance for credit losses at end of period Allowance for loan losses $ 457,064 $ 121,567 $ 29,714 $ 608,345 Reserve for unfunded lending commitments 53,523 11,257 — 64,780 Total allowance for credit losses $ 510,587 $ 132,824 $ 29,714 $ 673,125 Six Months Ended June 30, 2016 (In thousands) Commercial Commercial real estate Consumer Total Allowance for loan losses Balance at beginning of period $ 454,277 $ 113,992 $ 37,779 $ 606,048 Additions: Provision for loan losses 71,061 11,322 (5,746 ) 76,637 Deductions: Gross loan and lease charge-offs (89,865 ) (8,814 ) (7,060 ) (105,739 ) Recoveries 21,591 5,067 4,741 31,399 Net loan and lease charge-offs (68,274 ) (3,747 ) (2,319 ) (74,340 ) Balance at end of period $ 457,064 $ 121,567 $ 29,714 $ 608,345 Reserve for unfunded lending commitments Balance at beginning of period $ 57,696 $ 16,526 $ 616 $ 74,838 Provision credited to earnings (4,173 ) (5,269 ) (616 ) (10,058 ) Balance at end of period $ 53,523 $ 11,257 $ — $ 64,780 Total allowance for credit losses at end of period Allowance for loan losses $ 457,064 $ 121,567 $ 29,714 $ 608,345 Reserve for unfunded lending commitments 53,523 11,257 — 64,780 Total allowance for credit losses $ 510,587 $ 132,824 $ 29,714 $ 673,125 Three Months Ended June 30, 2015 (In thousands) Commercial Commercial real estate Consumer Total Allowance for loan losses Balance at beginning of period $ 442,072 $ 131,615 $ 46,326 $ 620,013 Additions: Provision for loan losses 5,941 (4,983 ) (392 ) 566 Adjustment for FDIC-supported/PCI loans (19 ) 57 — 38 Deductions: Gross loan and lease charge-offs (23,822 ) (3,943 ) (3,283 ) (31,048 ) Recoveries 13,598 3,050 3,158 19,806 Net loan and lease charge-offs (10,224 ) (893 ) (125 ) (11,242 ) Balance at end of period $ 437,770 $ 125,796 $ 45,809 $ 609,375 Reserve for unfunded lending commitments Balance at beginning of period $ 62,775 $ 18,937 $ 575 $ 82,287 Provision credited to earnings (2,001 ) (298 ) (27 ) (2,326 ) Balance at end of period $ 60,774 $ 18,639 $ 548 $ 79,961 Total allowance for credit losses at end of period Allowance for loan losses $ 437,770 $ 125,796 $ 45,809 $ 609,375 Reserve for unfunded lending commitments 60,774 18,639 548 79,961 Total allowance for credit losses $ 498,544 $ 144,435 $ 46,357 $ 689,336 Six Months Ended June 30, 2015 (In thousands) Commercial Commercial real estate Consumer Total Allowance for loan losses Balance at beginning of period $ 412,514 $ 145,009 $ 47,140 $ 604,663 Additions: Provision for loan losses 30,875 (31,870 ) 67 (928 ) Adjustment for FDIC-supported/PCI loans (57 ) 57 — — Deductions: Gross loan and lease charge-offs (39,773 ) (4,569 ) (6,894 ) (51,236 ) Recoveries 34,211 17,169 5,496 56,876 Net loan and lease charge-offs (5,562 ) 12,600 (1,398 ) 5,640 Balance at end of period $ 437,770 $ 125,796 $ 45,809 $ 609,375 Reserve for unfunded lending commitments Balance at beginning of period $ 58,931 $ 21,517 $ 628 $ 81,076 Provision charged (credited) to earnings 1,843 (2,878 ) (80 ) (1,115 ) Balance at end of period $ 60,774 $ 18,639 $ 548 $ 79,961 Total allowance for credit losses at end of period Allowance for loan losses $ 437,770 $ 125,796 $ 45,809 $ 609,375 Reserve for unfunded lending commitments 60,774 18,639 548 79,961 Total allowance for credit losses $ 498,544 $ 144,435 $ 46,357 $ 689,336 The ALLL and outstanding loan balances according to the Company’s impairment method are summarized as follows: June 30, 2016 (In thousands) Commercial Commercial real estate Consumer Total Allowance for loan losses: Individually evaluated for impairment $ 53,644 $ 3,648 $ 6,796 $ 64,088 Collectively evaluated for impairment 402,559 117,288 22,890 542,737 Purchased loans with evidence of credit deterioration 861 631 28 1,520 Total $ 457,064 $ 121,567 $ 29,714 $ 608,345 Outstanding loan balances: Individually evaluated for impairment $ 452,250 $ 102,806 $ 78,307 $ 633,363 Collectively evaluated for impairment 21,432,102 11,170,511 9,168,216 41,770,829 Purchased loans with evidence of credit deterioration 44,012 44,616 8,755 97,383 Total $ 21,928,364 $ 11,317,933 $ 9,255,278 $ 42,501,575 December 31, 2015 (In thousands) Commercial Commercial real estate Consumer Total Allowance for loan losses: Individually evaluated for impairment $ 36,909 $ 3,154 $ 9,462 $ 49,525 Collectively evaluated for impairment 417,295 110,417 27,866 555,578 Purchased loans with evidence of credit deterioration 73 421 451 945 Total $ 454,277 $ 113,992 $ 37,779 $ 606,048 Outstanding loan balances: Individually evaluated for impairment $ 289,629 $ 107,341 $ 92,605 $ 489,575 Collectively evaluated for impairment 21,129,125 10,193,840 8,712,079 40,035,044 Purchased loans with evidence of credit deterioration 60,260 54,722 9,941 124,923 Total $ 21,479,014 $ 10,355,903 $ 8,814,625 $ 40,649,542 Nonaccrual and Past Due Loans Loans are generally placed on nonaccrual status when payment in full of principal and interest is not expected, or the loan is 90 days or more past due as to principal or interest, unless the loan is both well secured and in the process of collection. Factors we consider in determining whether a loan is placed on nonaccrual include delinquency status, collateral value, borrower or guarantor financial statement information, bankruptcy status, and other information which would indicate that the full and timely collection of interest and principal is uncertain. A nonaccrual loan may be returned to accrual status when all delinquent interest and principal become current in accordance with the terms of the loan agreement; the loan, if secured, is well secured; the borrower has paid according to the contractual terms for a minimum of six months; and analysis of the borrower indicates a reasonable assurance of the ability and willingness to maintain payments. Payments received on nonaccrual loans are applied as a reduction to the principal outstanding. Closed-end loans with payments scheduled monthly are reported as past due when the borrower is in arrears for two or more monthly payments. Similarly, open-end credit such as charge-card plans and other revolving credit plans are reported as past due when the minimum payment has not been made for two or more billing cycles. Other multi-payment obligations (i.e., quarterly, semiannual, etc.), single payment, and demand notes are reported as past due when either principal or interest is due and unpaid for a period of 30 days or more. Nonaccrual loans are summarized as follows: (In thousands) June 30, December 31, Loans held for sale $ 13,570 $ — Commercial: Commercial and industrial $ 340,883 $ 163,906 Leasing 13,914 3,829 Owner occupied 69,646 73,881 Municipal 893 951 Total commercial 425,336 242,567 Commercial real estate: Construction and land development 4,610 7,045 Term 51,209 40,253 Total commercial real estate 55,819 47,298 Consumer: Home equity credit line 11,698 8,270 1-4 family residential 38,600 50,254 Construction and other consumer real estate 627 748 Bankcard and other revolving plans 1,667 537 Other 85 186 Total consumer loans 52,677 59,995 Total $ 533,832 $ 349,860 Past due loans (accruing and nonaccruing) are summarized as follows: June 30, 2016 (In thousands) Current 30-89 days past due 90+ days past due Total past due Total loans Accruing loans 90+ days past due Nonaccrual loans that are current 1 Loans held for sale $ 132,942 $ — $ 13,570 $ 13,570 $ 146,512 $ — $ — Commercial: Commercial and industrial $ 13,622,079 $ 73,002 $ 62,042 $ 135,044 $ 13,757,123 $ 10,210 $ 275,451 Leasing 424,112 — 2,337 2,337 426,449 1,826 13,403 Owner occupied 6,937,243 23,486 27,918 51,404 6,988,647 4,241 39,773 Municipal 756,145 — — — 756,145 — 893 Total commercial 21,739,579 96,488 92,297 188,785 21,928,364 16,277 329,520 Commercial real estate: Construction and land development 2,062,760 23,699 1,791 25,490 2,088,250 — 2,558 Term 9,193,382 13,119 23,182 36,301 9,229,683 11,254 36,774 Total commercial real estate 11,256,142 36,818 24,973 61,791 11,317,933 11,254 39,332 Consumer: Home equity credit line 2,495,556 6,230 5,390 11,620 2,507,176 — 4,687 1-4 family residential 5,649,946 10,936 19,168 30,104 5,680,050 288 15,742 Construction and other consumer real estate 411,212 7,504 583 8,087 419,299 314 308 Bankcard and other revolving plans 456,443 2,217 1,047 3,264 459,707 861 1,332 Other 188,322 715 9 724 189,046 — 52 Total consumer loans 9,201,479 27,602 26,197 53,799 9,255,278 1,463 22,121 Total $ 42,197,200 $ 160,908 $ 143,467 $ 304,375 $ 42,501,575 $ 28,994 $ 390,973 December 31, 2015 (In thousands) Current 30-89 days past due 90+ days past due Total past due Total loans Accruing loans 90+ days past due Nonaccrual loans that are current 1 Commercial: Commercial and industrial $ 13,114,045 $ 60,523 $ 36,913 $ 97,436 $ 13,211,481 $ 3,065 $ 117,942 Leasing 440,963 183 520 703 441,666 — 3,309 Owner occupied 7,085,086 37,776 27,166 64,942 7,150,028 3,626 43,984 Municipal 668,207 7,586 46 7,632 675,839 46 951 Total commercial 21,308,301 106,068 64,645 170,713 21,479,014 6,737 166,186 Commercial real estate: Construction and land development 1,835,360 842 5,300 6,142 1,841,502 — 1,745 Term 8,469,390 10,424 34,587 45,011 8,514,401 21,697 24,867 Total commercial real estate 10,304,750 11,266 39,887 51,153 10,355,903 21,697 26,612 Consumer: Home equity credit line 2,407,972 4,717 3,668 8,385 2,416,357 — 3,053 1-4 family residential 5,340,549 14,828 26,722 41,550 5,382,099 1,036 20,939 Construction and other consumer real estate 374,987 8,593 1,660 10,253 385,240 1,337 408 Bankcard and other revolving plans 440,358 1,861 1,561 3,422 443,780 1,217 146 Other 186,436 647 66 713 187,149 — 83 Total consumer loans 8,750,302 30,646 33,677 64,323 8,814,625 3,590 24,629 Total $ 40,363,353 $ 147,980 $ 138,209 $ 286,189 $ 40,649,542 $ 32,024 $ 217,427 1 Represents nonaccrual loans that are not past due more than 30 days; however, full payment of principal and interest is still not expected. Credit Quality Indicators In addition to the past due and nonaccrual criteria, we also analyze loans using loan risk grading systems, which vary based on the size and type of credit risk exposure. The internal risk grades assigned to loans follow our definitions of Pass, Special Mention, Substandard, and Doubtful, which are consistent with published definitions of regulatory risk classifications. Definitions of Pass, Special Mention, Substandard, and Doubtful are summarized as follows: Pass – A Pass asset is higher quality and does not fit any of the other categories described below. The likelihood of loss is considered low. Special Mention – A Special Mention asset has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the bank’s credit position at some future date. Substandard – A Substandard asset is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified have well-defined weaknesses and are characterized by the distinct possibility that the bank may sustain some loss if deficiencies are not corrected. Doubtful – A Doubtful asset has all the weaknesses inherent in a Substandard asset with the added characteristics that the weaknesses make collection or liquidation in full highly questionable and improbable. We generally assign internal risk grades to commercial and CRE loans with commitments equal to or greater than $750,000 based on financial and statistical models, individual credit analysis, and loan officer experience and judgment. For these larger loans, we assign one of multiple grades within the Pass classification or one of the following four grades: Special Mention, Substandard, Doubtful, and Loss. Loss indicates that the outstanding balance has been charged off. We confirm our internal risk grades quarterly, or as soon as we identify information that affects the credit risk of the loan. For consumer loans and certain small commercial and CRE loans with commitments less than $750,000 , we generally assign internal risk grades similar to those described previously based on automated rules that depend on refreshed credit scores, payment performance, and other risk indicators. These are generally assigned either a Pass or Substandard grade and are reviewed as we identify information that might warrant a grade change. Outstanding loan balances (accruing and nonaccruing) categorized by these credit quality indicators are summarized as follows: June 30, 2016 (In thousands) Pass Special Mention Sub- standard Doubtful Total loans Total allowance Commercial: Commercial and industrial $ 12,393,067 $ 316,850 $ 1,047,206 $ — $ 13,757,123 Leasing 394,633 1,601 30,215 — 426,449 Owner occupied 6,549,125 149,434 290,088 — 6,988,647 Municipal 741,826 — 14,319 — 756,145 Total commercial 20,078,651 467,885 1,381,828 — 21,928,364 $ 457,064 Commercial real estate: Construction and land development 2,015,546 64,383 8,321 — 2,088,250 Term 9,020,963 51,872 156,848 — 9,229,683 Total commercial real estate 11,036,509 116,255 165,169 — 11,317,933 121,567 Consumer: Home equity credit line 2,493,134 — 14,042 — 2,507,176 1-4 family residential 5,636,600 — 43,450 — 5,680,050 Construction and other consumer real estate 417,723 — 1,576 — 419,299 Bankcard and other revolving plans 455,721 — 3,986 — 459,707 Other 188,834 — 212 — 189,046 Total consumer loans 9,192,012 — 63,266 — 9,255,278 29,714 Total $ 40,307,172 $ 584,140 $ 1,610,263 $ — $ 42,501,575 $ 608,345 December 31, 2015 (In thousands) Pass Special Mention Sub- standard Doubtful Total loans Total allowance Commercial: Commercial and industrial $ 12,007,076 $ 399,847 $ 804,403 $ 155 $ 13,211,481 Leasing 411,131 5,166 25,369 — 441,666 Owner occupied 6,720,052 139,784 290,192 — 7,150,028 Municipal 663,903 — 11,936 — 675,839 Total commercial 19,802,162 544,797 1,131,900 155 21,479,014 $ 454,277 Commercial real estate: Construction and land development 1,786,610 42,348 12,544 — 1,841,502 Term 8,319,348 47,245 139,036 8,772 8,514,401 Total commercial real estate 10,105,958 89,593 151,580 8,772 10,355,903 113,992 Consumer: Home equity credit line 2,404,635 — 11,722 — 2,416,357 1-4 family residential 5,325,519 — 56,580 — 5,382,099 Construction and other consumer real estate 381,738 — 3,502 — 385,240 Bankcard and other revolving plans 440,282 — 3,498 — 443,780 Other 186,836 — 313 — 187,149 Total consumer loans 8,739,010 — 75,615 — 8,814,625 37,779 Total $ 38,647,130 $ 634,390 $ 1,359,095 $ 8,927 $ 40,649,542 $ 606,048 Impaired Loans Loans are considered impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due in accordance with the contractual terms of the loan agreement, including scheduled interest payments. For our non-purchased credit-impaired loans, if a nonaccrual loan has a balance greater than $1 million , or if a loan is a troubled debt restructuring (“TDR”), including TDRs that subsequently default, or if the loan is no longer reported as a TDR, we individually evaluate the loan for impairment and estimate a specific reserve for the loan for all portfolio segments under applicable accounting guidance. Smaller nonaccrual loans are pooled for ALLL estimation purposes. Purchase credit-impaired (“PCI”) loans are included in impaired loans and are accounted for under separate accounting guidance. See subsequent discussion under Purchased Loans. When a loan is impaired, we estimate a specific reserve for the loan based on the projected present value of the loan’s future cash flows discounted at the loan’s effective interest rate, the observable market price of the loan, or the fair value of the loan’s underlying collateral. The process of estimating future cash flows also incorporates the same determining factors discussed previously under nonaccrual loans. When we base the impairment amount on the fair value of the loan’s underlying collateral, we generally charge off the portion of the balance that is impaired, such that these loans do not have a specific reserve in the ALLL. Payments received on impaired loans that are accruing are recognized in interest income, according to the contractual loan agreement. Payments received on impaired loans that are on nonaccrual are not recognized in interest income, but are applied as a reduction to the principal outstanding. The amount of interest income recognized on a cash basis during the time the loans were impaired within the three and six months ended June 30, 2016 and 2015 was not significant. Information on impaired loans individually evaluated is summarized as follows, including the average recorded investment and interest income recognized for the three and six months ended June 30, 2016 and 2015 : June 30, 2016 (In thousands) Unpaid principal balance Recorded investment Total recorded investment Related allowance with no allowance with allowance Commercial: Commercial and industrial $ 422,844 $ 81,883 $ 293,498 $ 375,381 $ 49,385 Owner occupied 117,779 66,143 41,654 107,797 4,166 Municipal 1,372 893 — 893 — Total commercial 541,995 148,919 335,152 484,071 53,551 Commercial real estate: Construction and land development 18,714 3,152 8,155 11,307 746 Term 125,446 84,530 22,277 106,807 1,545 Total commercial real estate 144,160 87,682 30,432 118,114 2,291 Consumer: Home equity credit line 27,658 20,796 4,175 24,971 206 1-4 family residential 58,960 26,423 29,691 56,114 6,393 Construction and other consumer real estate 3,400 963 1,853 2,816 103 Other 2,307 160 1,598 1,758 17 Total consumer loans 92,325 48,342 37,317 85,659 6,719 Total $ 778,480 $ 284,943 $ 402,901 $ 687,844 $ 62,561 December 31, 2015 (In thousands) Unpaid principal balance Recorded investment Total recorded investment Related allowance with no allowance with allowance Commercial: Commercial and industrial $ 272,161 $ 44,190 $ 163,729 $ 207,919 $ 30,538 Owner occupied 141,526 83,024 43,243 126,267 5,486 Municipal 1,430 951 — 951 — Total commercial 415,117 128,165 206,972 335,137 36,024 Commercial real estate: Construction and land development 22,791 5,076 9,558 14,634 618 Term 142,239 82,864 34,361 117,225 2,604 Total commercial real estate 165,030 87,940 43,919 131,859 3,222 Consumer: Home equity credit line 27,064 18,980 5,319 24,299 243 1-4 family residential 74,009 29,540 41,155 70,695 8,736 Construction and other consumer real estate 2,741 989 1,014 2,003 173 Other 3,187 36 2,570 2,606 299 Total consumer loans 107,001 49,545 50,058 99,603 9,451 Total $ 687,148 $ 265,650 $ 300,949 $ 566,599 $ 48,697 Three Months Ended Six Months Ended (In thousands) Average recorded investment Interest income recognized Average recorded investment Interest income recognized Commercial: Commercial and industrial $ 429,681 $ 1,176 $ 317,211 $ 2,505 Owner occupied 111,165 3,131 113,198 5,557 Municipal 901 — 916 — Total commercial 541,747 4,307 431,325 8,062 Commercial real estate: Construction and land development 11,658 695 11,922 1,202 Term 98,234 3,512 96,925 6,871 Total commercial real estate 109,892 4,207 108,847 8,073 Consumer: Home equity credit line 24,609 367 24,227 744 1-4 family residential 61,481 455 60,372 901 Construction and other consumer real estate 2,829 48 2,814 95 Bankcard and other revolving plans — 1 — 17 Other 2,086 92 2,294 200 Total consumer loans 91,005 963 89,707 1,957 Total $ 742,644 $ 9,477 $ 629,879 $ 18,092 Three Months Ended Six Months Ended (In thousands) Average recorded investment Interest income recognized Average recorded investment Interest income recognized Commercial: Commercial and industrial $ 174,911 $ 2,831 $ 155,584 $ 4,255 Owner occupied 144,613 3,186 142,817 6,970 Municipal 1,008 — 1,021 — Total commercial 320,532 6,017 299,422 11,225 Commercial real estate: Construction and land development 35,562 1,628 36,215 2,177 Term 144,054 5,063 142,439 10,038 Total commercial real estate 179,616 6,691 178,654 12,215 Consumer: Home equity credit line 25,400 416 24,948 821 1-4 family residential 69,874 534 68,464 1,041 Construction and other consumer real estate 2,497 22 2,529 64 Bankcard and other revolving plans — 1 1 100 Other 4,176 230 4,463 516 Total consumer loans 101,947 1,203 100,405 2,542 Total $ 602,095 $ 13,911 $ 578,481 $ 25,982 Modified and Restructured Loans Loans may be modified in the normal course of business for competitive reasons or to strengthen the Company’s position. Loan modifications and restructurings may also occur when the borrower experiences financial difficulty and needs temporary or permanent relief from the original contractual terms of the loan. These modifications are structured on a loan-by-loan basis and, depending on the circumstances, may include extended payment terms, a modified interest rate, forgiveness of principal, or other concessions. Loans that have been modified to accommodate a borrower who is experiencing financial difficulties, and for which the Company has granted a concession that it would not otherwise consider, are considered TDRs. We consider many factors in determining whether to agree to a loan modification involving concessions, and seek a solution that will both minimize potential loss to the Company and attempt to help the borrower. We evaluate borrowers’ current and forecasted future cash flows, their ability and willingness to make current contractual or proposed modified payments, the value of the underlying collateral (if applicable), the possibility of obtaining additional security or guarantees, and the potential costs related to a repossession or foreclosure and the subsequent sale of the collateral. TDRs are classified as either accrual or nonaccrual loans. A loan on nonaccrual and restructured as a TDR will remain on nonaccrual status until the borrower has proven the ability to perform under the modified structure for a minimum of six months, and there is evidence that such payments can and are likely to continue as agreed. Performance prior to the restructuring, or significant events that coincide with the restructuring, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual at the time of restructuring or after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is uncertain, the loan remains classified as a nonaccrual loan. A TDR loan that specifies an interest rate that at the time of the restructuring is greater than or equal to the rate the bank is willing to accept for a new loan with comparable risk may not be reported as a TDR or an impaired loan in the calendar years subsequent to the restructuring if it is in compliance with its modified terms. Selected information on TDRs that includes the recorded investment on an accruing and nonaccruing basis by loan |
