| 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) September 30, December 31, Loans held for sale $ 160,287 $ 149,880 Commercial: Commercial and industrial $ 13,542,752 $ 13,211,481 Leasing 438,933 441,666 Owner occupied 6,889,674 7,150,028 Municipal 752,960 675,839 Total commercial 21,624,319 21,479,014 Commercial real estate: Construction and land development 2,147,212 1,841,502 Term 9,302,712 8,514,401 Total commercial real estate 11,449,924 10,355,903 Consumer: Home equity credit line 2,581,068 2,416,357 1-4 family residential 5,784,583 5,382,099 Construction and other consumer real estate 453,235 385,240 Bankcard and other revolving plans 457,910 443,780 Other 188,681 187,149 Total consumer 9,465,477 8,814,625 Total loans $ 42,539,720 $ 40,649,542 Loan balances are presented net of unearned income and fees, which amounted to $149.1 million at September 30, 2016 and $150.3 million at December 31, 2015 . Owner occupied and commercial real estate (“CRE”) loans include unamortized premiums of approximately $21.4 million at September 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 $295.1 million at September 30, 2016 and $288.0 million at December 31, 2015 . Loans with a carrying value of approximately $25.9 billion at September 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 $413.2 million and $1,003.9 million for the three and nine months ende d September 30, 2016 , and $434.1 million and $1,070.2 million for the three and nine months ende d September 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 $386.7 million and $979.3 million for the three and nine months ende d September 30, 2016 , and $442.4 million and $1,111.0 million for the three and nine months ende d September 30, 2015 , respectively. The principal balance of sold loans for which we retain servicing was approximately $1.2 billion at September 30, 2016 and $1.3 billion at December 31, 2015 . Income from loans sold, excluding servicing, was $6.2 million and $15.1 million for the three and nine months ende d September 30, 2016 , and $5.0 million and $13.9 million for the three and nine months ende d September 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 estimate 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 September 30, 2016 (In thousands) Commercial Commercial real estate Consumer Total Allowance for loan losses Balance at beginning of period $ 457,064 $ 121,567 $ 29,714 $ 608,345 Additions: Provision for loan losses 22,298 (6,446 ) 2,973 18,825 Deductions: Gross loan and lease charge-offs (48,032 ) (1,075 ) (4,656 ) (53,763 ) Recoveries 14,724 6,952 2,102 23,778 Net loan and lease (charge-offs) recoveries (33,308 ) 5,877 (2,554 ) (29,985 ) Balance at end of period $ 446,054 $ 120,998 $ 30,133 $ 597,185 Reserve for unfunded lending commitments Balance at beginning of period $ 53,523 $ 11,257 $ — $ 64,780 Provision credited to earnings (1,903 ) (1,262 ) — (3,165 ) Balance at end of period $ 51,620 $ 9,995 $ — $ 61,615 Total allowance for credit losses at end of period Allowance for loan losses $ 446,054 $ 120,998 $ 30,133 $ 597,185 Reserve for unfunded lending commitments 51,620 9,995 — 61,615 Total allowance for credit losses $ 497,674 $ 130,993 $ 30,133 $ 658,800 Nine Months Ended September 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 93,359 4,876 (2,773 ) 95,462 Deductions: Gross loan and lease charge-offs (137,897 ) (9,889 ) (11,716 ) (159,502 ) Recoveries 36,315 12,019 6,843 55,177 Net loan and lease (charge-offs) recoveries (101,582 ) 2,130 (4,873 ) (104,325 ) Balance at end of period $ 446,054 $ 120,998 $ 30,133 $ 597,185 Reserve for unfunded lending commitments Balance at beginning of period $ 57,696 $ 16,526 $ 616 $ 74,838 Provision credited to earnings (6,076 ) (6,531 ) (616 ) (13,223 ) Balance at end of period $ 51,620 $ 9,995 $ — $ 61,615 Total allowance for credit losses at end of period Allowance for loan losses $ 446,054 $ 120,998 $ 30,133 $ 597,185 Reserve for unfunded lending commitments 51,620 9,995 — 61,615 Total allowance for credit losses $ 497,674 $ 130,993 $ 30,133 $ 658,800 Three Months Ended September 30, 2015 (In thousands) Commercial Commercial real estate Consumer Total Allowance for loan losses Balance at beginning of period $ 437,770 $ 125,796 $ 45,809 $ 609,375 Additions: Provision for loan losses 22,417 (6,621 ) 2,466 18,262 Deductions: Gross loan and lease charge-offs (36,961 ) (1,068 ) (4,330 ) (42,359 ) Recoveries 4,471 4,162 2,529 11,162 Net loan and lease (charge-offs) recoveries (32,490 ) 3,094 (1,801 ) (31,197 ) Balance at end of period $ 427,697 $ 122,269 $ 46,474 $ 596,440 Reserve for unfunded lending commitments Balance at beginning of period $ 60,774 $ 18,639 $ 548 $ 79,961 Provision charged (credited) to earnings 2,808 (1,467 ) 87 1,428 Balance at end of period $ 63,582 $ 17,172 $ 635 $ 81,389 Total allowance for credit losses at end of period Allowance for loan losses $ 427,697 $ 122,269 $ 46,474 $ 596,440 Reserve for unfunded lending commitments 63,582 17,172 635 81,389 Total allowance for credit losses $ 491,279 $ 139,441 $ 47,109 $ 677,829 Nine Months Ended September 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 53,292 (38,491 ) 2,533 17,334 Deductions: Gross loan and lease charge-offs (76,734 ) (5,637 ) (11,224 ) (93,595 ) Recoveries 38,682 21,331 8,025 68,038 Net loan and lease (charge-offs) recoveries (38,052 ) 15,694 (3,199 ) (25,557 ) Balance at end of period $ 427,697 $ 122,269 $ 46,474 $ 596,440 Reserve for unfunded lending commitments Balance at beginning of period $ 58,931 $ 21,517 $ 628 $ 81,076 Provision charged (credited) to earnings 4,651 (4,345 ) 7 313 Balance at end of period $ 63,582 $ 17,172 $ 635 $ 81,389 Total allowance for credit losses at end of period Allowance for loan losses $ 427,697 $ 122,269 $ 46,474 $ 596,440 Reserve for unfunded lending commitments 63,582 17,172 635 81,389 Total allowance for credit losses $ 491,279 $ 139,441 $ 47,109 $ 677,829 The ALLL and outstanding loan balances according to the Company’s impairment method are summarized as follows: September 30, 2016 (In thousands) Commercial Commercial real estate Consumer Total Allowance for loan losses: Individually evaluated for impairment $ 68,159 $ 3,029 $ 6,755 $ 77,943 Collectively evaluated for impairment 377,197 117,520 22,900 517,617 Purchased loans with evidence of credit deterioration 698 449 478 1,625 Outstanding loan balances: Individually evaluated for impairment $ 495,919 $ 74,456 $ 76,564 $ 646,939 Collectively evaluated for impairment 21,086,101 11,336,574 9,380,885 41,803,560 Purchased loans with evidence of credit deterioration 42,299 38,894 8,028 89,221 Total $ 21,624,319 $ 11,449,924 $ 9,465,477 $ 42,539,720 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 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) September 30, December 31, Loans held for sale $ 29,448 $ — Commercial: Commercial and industrial $ 387,339 $ 163,906 Leasing 14,219 3,829 Owner occupied 65,873 73,881 Municipal 868 951 Total commercial 468,299 242,567 Commercial real estate: Construction and land development 4,037 7,045 Term 27,420 40,253 Total commercial real estate 31,457 47,298 Consumer: Home equity credit line 11,318 8,270 1-4 family residential 36,016 50,254 Construction and other consumer real estate 753 748 Bankcard and other revolving plans 1,415 537 Other 126 186 Total consumer loans 49,628 59,995 Total $ 549,384 $ 349,860 Past due loans (accruing and nonaccruing) are summarized as follows: September 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 $ 160,287 $ — $ — $ — $ 160,287 $ — $ 29,448 Commercial: Commercial and industrial $ 13,404,163 $ 87,689 $ 50,900 $ 138,589 $ 13,542,752 $ 5,452 $ 320,959 Leasing 438,933 — — — 438,933 — 14,219 Owner occupied 6,839,251 30,313 20,110 50,423 6,889,674 5,472 42,803 Municipal 752,960 — — — 752,960 — 868 Total commercial 21,435,307 118,002 71,010 189,012 21,624,319 10,924 378,849 Commercial real estate: Construction and land development 2,113,363 32,079 1,770 33,849 2,147,212 — 2,267 Term 9,254,133 25,362 23,217 48,579 9,302,712 15,231 17,226 Total commercial real estate 11,367,496 57,441 24,987 82,428 11,449,924 15,231 19,493 Consumer: Home equity credit line 2,569,726 4,380 6,962 11,342 2,581,068 1,500 4,219 1-4 family residential 5,751,412 13,393 19,778 33,171 5,784,583 63 11,248 Construction and other consumer real estate 446,778 5,896 561 6,457 453,235 107 288 Bankcard and other revolving plans 453,961 2,794 1,155 3,949 457,910 1,010 1,174 Other 188,147 533 1 534 188,681 — 82 Total consumer loans 9,410,024 26,996 28,457 55,453 9,465,477 2,680 17,011 Total $ 42,212,827 $ 202,439 $ 124,454 $ 326,893 $ 42,539,720 $ 28,835 $ 415,353 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 Loans held for sale $ 149,880 $ — $ — $ — $ 149,880 $ — $ — 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: September 30, 2016 (In thousands) Pass Special Mention Sub- standard Doubtful Total loans Total allowance Commercial: Commercial and industrial $ 12,131,677 $ 355,800 $ 1,046,068 $ 9,207 $ 13,542,752 Leasing 403,597 6,155 29,181 — 438,933 Owner occupied 6,450,754 145,338 293,582 — 6,889,674 Municipal 738,808 — 14,152 — 752,960 Total commercial 19,724,836 507,293 1,382,983 9,207 21,624,319 $ 446,054 Commercial real estate: Construction and land development 2,059,627 61,936 25,649 — 2,147,212 Term 9,065,467 96,384 140,861 — 9,302,712 Total commercial real estate 11,125,094 158,320 166,510 — 11,449,924 120,998 Consumer: Home equity credit line 2,566,873 — 14,195 — 2,581,068 1-4 family residential 5,746,829 — 37,754 — 5,784,583 Construction and other consumer real estate 451,809 — 1,426 — 453,235 Bankcard and other revolving plans 454,850 — 3,060 — 457,910 Other 188,468 — 213 — 188,681 Total consumer loans 9,408,829 — 56,648 — 9,465,477 30,133 Total $ 40,258,759 $ 665,613 $ 1,606,141 $ 9,207 $ 42,539,720 $ 597,185 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 nine months ende d September 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 nine months ende d September 30, 2016 and 2015 : September 30, 2016 (In thousands) Unpaid principal balance Recorded investment Total recorded investment Related allowance with no allowance with allowance Loans held for sale $ 18,935 $ 15,996 $ — $ 15,996 $ — Commercial: Commercial and industrial $ 476,275 $ 86,904 $ 338,754 $ 425,658 $ 64,381 Owner occupied 108,694 61,794 38,163 99,957 3,612 Municipal 1,347 869 — 869 — Total commercial 586,316 149,567 376,917 526,484 67,993 Commercial real estate: Construction and land development 18,432 3,538 7,323 10,861 256 Term 86,540 52,295 22,290 74,585 1,322 Total commercial real estate 104,972 55,833 29,613 85,446 1,578 Consumer: Home equity credit line 25,200 15,891 6,762 22,653 537 1-4 family residential 59,306 27,047 29,250 56,297 6,488 Construction and other consumer real estate 3,316 917 1,825 2,742 105 Other 1,992 1,484 32 1,516 3 Total consumer loans 89,814 45,339 37,869 83,208 7,133 Total $ 781,102 $ 250,739 $ 444,399 $ 695,138 $ 76,704 December 31, 2015 (In thousands) Unpaid principal balance Recorded investment Total recorded investment Related allowance with no allowance with allowance Loans held for sale $ — $ — $ — $ — $ — 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 Nine Months Ended (In thousands) Average recorded investment Interest income recognized Average recorded investment Interest income recognized Loans held for sale $ 18,561 $ — $ 20,583 $ — Commercial: Commercial and industrial $ 448,590 $ 1,464 $ 318,434 $ 3,977 Owner occupied 100,386 2,060 103,439 7,537 Municipal 877 — 903 — Total commercial 549,853 3,524 422,776 11,514 Commercial real estate: Construction and land development 11,281 863 12,041 2,065 Term 73,860 2,689 79,449 9,378 Total commercial real estate 85,141 3,552 91,490 11,443 Consumer: Home equity credit line 22,895 323 22,291 1,029 1-4 family residential 61,149 461 57,815 1,324 Construction and other consumer real estate 2,767 43 2,707 134 Bankcard and other revolving plans — 1 — 17 Other 1,912 81 2,166 281 Total consumer loans 88,723 909 84,979 2,785 Total $ 723,717 $ 7,985 $ 599,245 $ 25,742 Three Months Ended Nine Months Ended (In thousands) Average recorded investment Interest income recognized Average recorded investment Interest income recognized Loans held for sale $ — $ — $ — $ — Commercial: Commercial and industrial $ 191,642 $ 1,314 $ 158,825 $ 5,525 Owner occupied 138,194 2,752 135,212 9,706 Municipal 978 — 1,007 — Total commercial 330,814 4,066 295,044 15,231 Commercial real estate: Construction and land development 31,506 499 31,920 2,691 Term 119,694 3,705 124,446 13,383 Total commercial real estate 151,200 4,204 156,366 16,074 Consumer: Home equity credit line 25,095 401 24,329 1,206 1-4 family residential 90,240 398 91,671 1,803 Construction and other consumer real estate 5,540 32 2,342 91 Bankcard and other revolving plans — 1 1 101 Other 36 177 4,109 692 Total consumer loans 120,911 1,009 122,452 3,893 Total $ 602,925 $ 9,279 $ 573,862 $ 35,198 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 |
