Loans and Credit Quality | Loans and Leases The Company’s loan and lease portfolio includes originated and purchased loans and leases. Originated loans and leases and purchased loans and leases for which there was no evidence of credit deterioration at their acquisition date and for which it was probable that all contractually required payments would be collected, are referred to collectively as non-purchased credit impaired loans, or "Non-PCI loans." Purchased loans for which there was, at the acquisition date, evidence of credit deterioration since their origination and it was probable that we would be unable to collect all contractually required payments are referred to as purchased credit impaired loans, or "PCI loans". Non-PCI loans are carried at the principal amount outstanding, net of deferred fees and costs, and in the case of acquired loans, net of purchase discounts and premiums. Deferred fees and costs and purchase discounts and premiums are recognized as an adjustment to interest income over the contractual life of the loans using the effective interest method or taken into income when the related loans are paid off or sold. PCI loans are accounted for in accordance with ASC Subtopic 310‑30, “ Loans and Debt Securities Acquired with Deteriorated Credit Quality" . For PCI loans, at the time of acquisition we (i) calculate the contractual amount and timing of undiscounted principal and interest payments (the "undiscounted contractual cash flows") and (ii) estimate the amount and timing of undiscounted expected principal and interest payments (the "undiscounted expected cash flows"). The difference between the undiscounted contractual cash flows and the undiscounted expected cash flows is the nonaccretable difference. The difference between the undiscounted cash flows expected to be collected and the estimated fair value of the acquired loans is the accretable yield. The nonaccretable difference represents an estimate of the loss exposure of principal and interest related to the PCI loan portfolio; such amount is subject to change over time based on the performance of such loans. The carrying value of PCI loans is reduced by payments received, both principal and interest, and increased by the portion of the accretable yield recognized as interest income. The following table summarizes the composition of our loan and lease portfolio as of the dates indicated: June 30, 2015 December 31, 2014 Non-PCI Non-PCI Loans PCI Loans PCI and Leases Loans Total and Leases Loans Total (In thousands) Real estate mortgage $ 5,428,698 $ 212,157 $ 5,640,855 $ 5,350,827 $ 256,489 $ 5,607,316 Real estate construction and land 346,919 1,464 348,383 309,162 6,924 316,086 Commercial 5,984,472 8,782 5,993,254 5,852,420 27,155 5,879,575 Consumer 86,224 289 86,513 101,423 284 101,707 Total gross loans and leases 11,846,313 222,692 12,069,005 11,613,832 290,852 11,904,684 Deferred fees and costs (34,762 ) (54 ) (34,816 ) (22,191 ) (61 ) (22,252 ) Total loans and leases, net of deferred fees 11,811,551 222,638 12,034,189 11,591,641 290,791 11,882,432 Allowance for loan and lease losses (85,047 ) (14,328 ) (99,375 ) (70,456 ) (13,999 ) (84,455 ) Total net loans and leases $ 11,726,504 $ 208,310 $ 11,934,814 $ 11,521,185 $ 276,792 $ 11,797,977 The following tables present a summary of the activity in the allowance for loan and lease losses on Non‑PCI loans and leases by portfolio segment and PCI loans for the periods indicated: Three Months Ended June 30, 2015 Real Estate Real Estate Construction Total Total Mortgage and Land Commercial Consumer Non-PCI PCI Total (In thousands) Allowance for Loan and Lease Losses: Balance, beginning of period $ 30,911 $ 2,173 $ 45,794 $ 802 $ 79,680 $ 12,698 $ 92,378 Charge-offs (62 ) — (534 ) (27 ) (623 ) — (623 ) Recoveries 200 12 1,744 34 1,990 101 2,091 Provision (negative provision) (1,141 ) 1,723 3,527 (109 ) 4,000 1,529 5,529 Balance, end of period $ 29,908 $ 3,908 $ 50,531 $ 700 $ 85,047 $ 14,328 $ 99,375 Six Months Ended June 30, 2015 Real Estate Real Estate Construction Total Total Mortgage and Land Commercial Consumer Non-PCI PCI Total (In thousands) Allowance for Loan and Lease Losses: Balance, beginning of period $ 25,097 $ 4,248 $ 39,858 $ 1,253 $ 70,456 $ 13,999 $ 84,455 Charge-offs (1,515 ) — (8,929 ) (90 ) (10,534 ) (579 ) (11,113 ) Recoveries 1,495 644 2,154 228 4,521 112 4,633 Provision (negative provision) 4,831 (984 ) 17,448 (691 ) 20,604 796 21,400 Balance, end of period $ 29,908 $ 3,908 $ 50,531 $ 700 $ 85,047 $ 14,328 $ 99,375 Amount of the allowance applicable to loans and leases: Individually evaluated for impairment $ 1,461 $ 49 $ 13,305 $ 193 $ 15,008 Collectively evaluated for impairment $ 28,447 $ 3,859 $ 37,226 $ 507 $ 70,039 Acquired loans with deteriorated credit quality $ 14,328 The ending balance of the loan and lease portfolio is composed of loans and leases: Individually evaluated for impairment $ 56,297 $ 8,118 $ 98,767 $ 3,585 $ 166,767 Collectively evaluated for impairment $ 5,359,373 $ 335,382 $ 5,867,335 $ 82,694 $ 11,644,784 Acquired loans with deteriorated credit quality $ 222,638 Ending balance of loans and leases $ 5,415,670 $ 343,500 $ 5,966,102 $ 86,279 $ 11,811,551 $ 222,638 $ 12,034,189 Three Months Ended June 30, 2014 Real Estate Real Estate Construction Total Total Mortgage and Land Commercial Consumer Non-PCI PCI Total (In thousands) Allowance for Loan and Lease Losses: Balance, beginning of period $ 24,352 $ 4,103 $ 27,740 $ 3,785 $ 59,980 $ 21,200 $ 81,180 Charge-offs (487 ) — (326 ) (17 ) (830 ) (4,604 ) (5,434 ) Recoveries 376 64 587 215 1,242 — 1,242 Provision (negative provision) (1,965 ) 135 7,529 (568 ) 5,131 30 5,161 Balance, end of period $ 22,276 $ 4,302 $ 35,530 $ 3,415 $ 65,523 $ 16,626 $ 82,149 Six Months Ended June 30, 2014 Real Estate Real Estate Construction Total Total Mortgage and Land Commercial Consumer Non-PCI PCI Total (In thousands) Allowance for Loan and Lease Losses: Balance, beginning of period $ 26,078 $ 4,298 $ 26,921 $ 2,944 $ 60,241 $ 21,793 $ 82,034 Charge-offs (581 ) — (1,767 ) (32 ) (2,380 ) (4,553 ) (6,933 ) Recoveries 636 88 965 242 1,931 — 1,931 Provision (negative provision) (3,857 ) (84 ) 9,411 261 5,731 (614 ) 5,117 Balance, end of period $ 22,276 $ 4,302 $ 35,530 $ 3,415 $ 65,523 $ 16,626 $ 82,149 Amount of the allowance applicable to loans and leases: Individually evaluated for impairment $ 2,245 $ 238 $ 12,531 $ 321 $ 15,335 Collectively evaluated for impairment $ 20,031 $ 4,064 $ 22,999 $ 3,094 $ 50,188 Acquired loans with deteriorated credit quality $ 16,626 The ending balance of the loan and lease portfolio is composed of loans and leases: Individually evaluated for impairment $ 62,287 $ 12,797 $ 51,488 $ 3,971 $ 130,543 Collectively evaluated for impairment $ 5,174,165 $ 285,680 $ 5,142,247 $ 59,034 $ 10,661,126 Acquired loans with deteriorated credit quality $ 398,436 Ending balance of loans and leases $ 5,236,452 $ 298,477 $ 5,193,735 $ 63,005 $ 10,791,669 $ 398,436 $ 11,190,105 Non‑Purchased Credit Impaired (Non‑PCI) Loans and Leases The following table presents the credit risk rating categories for Non‑PCI loans and leases by portfolio segment and class as of the dates indicated. Nonclassified loans and leases are those with a credit risk rating of either pass or special mention, while classified loans and leases are those with a credit risk rating of either substandard or doubtful. June 30, 2015 December 31, 2014 Classified Nonclassified Total Classified Nonclassified Total (In thousands) Real estate mortgage: Hospitality $ 16,737 $ 579,922 $ 596,659 $ 17,761 $ 542,458 $ 560,219 SBA 10,141 387,921 398,062 11,141 364,786 375,927 Other 53,777 4,367,172 4,420,949 68,084 4,336,330 4,404,414 Total real estate mortgage 80,655 5,335,015 5,415,670 96,986 5,243,574 5,340,560 Real estate construction and land: Residential 377 119,428 119,805 402 96,326 96,728 Commercial 984 222,711 223,695 3,346 207,061 210,407 Total real estate construction and land 1,361 342,139 343,500 3,748 303,387 307,135 Commercial: Collateralized 19,250 352,541 371,791 22,433 416,754 439,187 Unsecured 1,609 118,526 120,135 1,323 130,501 131,824 Asset-based 6,675 1,833,778 1,840,453 11,547 1,783,304 1,794,851 Cash flow 177,948 2,505,518 2,683,466 83,321 2,376,530 2,459,851 Equipment finance 85,536 818,952 904,488 15,973 953,516 969,489 SBA 3,068 42,701 45,769 3,207 44,054 47,261 Total commercial 294,086 5,672,016 5,966,102 137,804 5,704,659 5,842,463 Consumer 3,886 82,393 86,279 4,073 97,410 101,483 Total Non-PCI loans and leases $ 379,988 $ 11,431,563 $ 11,811,551 $ 242,611 $ 11,349,030 $ 11,591,641 In addition to our internal risk rating process, our federal and state banking regulators, as an integral part of their examination process, periodically review the Company’s loan and lease risk rating classifications. Our regulators may require the Company to recognize rating downgrades based on their judgments related to information available to them at the time of their examinations. Risk rating downgrades generally result in higher allowances for credit losses. The following tables present an aging analysis of our Non‑PCI loans and leases by portfolio segment and class as of the dates indicated: June 30, 2015 30 - 89 90 or More Days Days Total Past Due Past Due Past Due Current Total (In thousands) Real estate mortgage: Hospitality $ — $ — $ — $ 596,659 $ 596,659 SBA 2,526 6,919 9,445 388,617 398,062 Other 4,165 5,515 9,680 4,411,269 4,420,949 Total real estate mortgage 6,691 12,434 19,125 5,396,545 5,415,670 Real estate construction and land: Residential — — — 119,805 119,805 Commercial — — — 223,695 223,695 Total real estate construction and land — — — 343,500 343,500 Commercial: Collateralized 733 427 1,160 370,631 371,791 Unsecured 33 15 48 120,087 120,135 Asset-based — — — 1,840,453 1,840,453 Cash flow — — — 2,683,466 2,683,466 Equipment finance 2,551 16,443 18,994 885,494 904,488 SBA 293 1,192 1,485 44,284 45,769 Total commercial 3,610 18,077 21,687 5,944,415 5,966,102 Consumer 25 3,146 3,171 83,108 86,279 Total Non-PCI loans and leases $ 10,326 $ 33,657 $ 43,983 $ 11,767,568 $ 11,811,551 December 31, 2014 30 - 89 90 or More Days Days Total Past Due Past Due Past Due Current Total (In thousands) Real estate mortgage: Hospitality $ — $ — $ — $ 560,219 $ 560,219 SBA 5,530 4,357 9,887 366,040 375,927 Other 6,098 7,630 13,728 4,390,686 4,404,414 Total real estate mortgage 11,628 11,987 23,615 5,316,945 5,340,560 Real estate construction and land: Residential — — — 96,728 96,728 Commercial — 715 715 209,692 210,407 Total real estate construction and land — 715 715 306,420 307,135 Commercial: Collateralized 878 965 1,843 437,344 439,187 Unsecured 69 45 114 131,710 131,824 Asset-based — — — 1,794,851 1,794,851 Cash flow — 232 232 2,459,619 2,459,851 Equipment finance 6,525 366 6,891 962,598 969,489 SBA 205 1,362 1,567 45,694 47,261 Total commercial 7,677 2,970 10,647 5,831,816 5,842,463 Consumer 101 3,146 3,247 98,236 101,483 Total Non-PCI loans and leases $ 19,406 $ 18,818 $ 38,224 $ 11,553,417 $ 11,591,641 At June 30, 2015 and December 31, 2014 , the Company had no loans and leases (excluding PCI loans) that were greater than 90 days past due and still accruing interest. It is the Company’s policy to discontinue accruing interest when principal or interest payments are past due 90 days or more unless the loan is both well secured and in the process of collection or when, in the judgment of management, there is a reasonable doubt as to the collectability of a loan or lease in the normal course of business. Interest income on nonaccrual loans is recognized only to the extent cash is received and the principal balance of the loan is deemed collectable. The following table presents our nonaccrual and performing Non‑PCI loans and leases by portfolio segment and class as of the dates indicated: June 30, 2015 December 31, 2014 Nonaccrual Performing Total Nonaccrual Performing Total (In thousands) Real estate mortgage: Hospitality $ 7,894 $ 588,765 $ 596,659 $ 6,366 $ 553,853 $ 560,219 SBA 10,141 387,921 398,062 11,141 364,786 375,927 Other 16,213 4,404,736 4,420,949 20,105 4,384,309 4,404,414 Total real estate mortgage 34,248 5,381,422 5,415,670 37,612 5,302,948 5,340,560 Real estate construction and land: Residential 377 119,428 119,805 381 96,347 96,728 Commercial — 223,695 223,695 1,178 209,229 210,407 Total real estate construction and land 377 343,123 343,500 1,559 305,576 307,135 Commercial: Collateralized 3,761 368,030 371,791 5,450 433,737 439,187 Unsecured 537 119,598 120,135 639 131,185 131,824 Asset-based 40 1,840,413 1,840,453 4,574 1,790,277 1,794,851 Cash flow 14,605 2,668,861 2,683,466 15,964 2,443,887 2,459,851 Equipment finance 71,130 833,358 904,488 11,131 958,358 969,489 SBA 3,068 42,701 45,769 3,207 44,054 47,261 Total commercial 93,141 5,872,961 5,966,102 40,965 5,801,498 5,842,463 Consumer 3,412 82,867 86,279 3,485 97,998 101,483 Total Non-PCI loans and leases $ 131,178 $ 11,680,373 $ 11,811,551 $ 83,621 $ 11,508,020 $ 11,591,641 At June 30, 2015 , nonaccrual loans and leases totaled $131.2 million and included $33.7 million of loans and leases 90 or more days past due, $4.5 million of loans and leases 30 to 89 days past due, and $93.0 million of current loans and leases that were placed on nonaccrual status based on management’s judgment regarding their collectability. Nonaccrual loans and leases totaled $83.6 million at December 31, 2014 , including $18.8 million of loans and leases 90 or more days past due, $8.7 million of loans and leases 30 to 89 days past due, and $56.1 million of current loans and leases that were placed on nonaccrual status based on management’s judgment regarding their collectability. The increase in nonaccrual loans and leases generally, and equipment finance loans and leases specifically, was due to three relationships totaling $64.1 million that are related to the oil and gas industries and which have been adversely impacted by continued low oil prices. Non‑PCI nonaccrual loans and leases and performing restructured loans are considered impaired for reporting purposes. The following table presents the composition of our impaired loans and leases as of the dates indicated: June 30, 2015 December 31, 2014 Performing Total Performing Total Nonaccrual Restructured Impaired Nonaccrual Restructured Impaired Loans/Leases Loans Loans/Leases Loans/Leases Loans Loans/Leases (In thousands) Real estate mortgage $ 34,248 $ 23,863 $ 58,111 $ 37,612 $ 20,245 $ 57,857 Real estate construction and land 377 7,741 8,118 1,559 8,996 10,555 Commercial 93,141 6,350 99,491 40,965 5,744 46,709 Consumer 3,412 249 3,661 3,485 259 3,744 Total $ 131,178 $ 38,203 $ 169,381 $ 83,621 $ 35,244 $ 118,865 The following table presents loan and lease relationships having exposure to the oil and gas industries as of the dates indicated: June 30, 2015 March 31, 2015 Amount Obligors Amount Obligors (Dollars in thousands) Loans $ 87,005 8 $ 88,585 9 Leases 90,189 21 92,865 21 Total oil & gas support services $ 177,194 29 $ 181,450 30 Classified $ 64,232 4 $ 65,498 5 Nonaccrual $ 64,232 4 $ 65,074 4 The following tables present information regarding our Non‑PCI impaired loans and leases by portfolio segment and class as of and for the dates indicated: June 30, 2015 December 31, 2014 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance (In thousands) With An Allowance Recorded: Real estate mortgage: Hospitality $ 1,919 $ 1,918 $ 18 $ 1,946 $ 1,945 $ 47 Other 15,233 15,365 1,443 9,136 9,233 646 Real estate construction and land: Residential 755 755 36 763 763 46 Commercial 392 390 13 1,128 4,934 23 Commercial: Collateralized 7,336 8,060 4,016 4,630 5,246 3,771 Unsecured 1,147 1,160 1,008 912 924 799 Asset-based 40 150 40 137 247 137 Cash flow 14,606 17,650 4,556 15,578 17,970 2,667 Equipment finance 13,257 13,659 3,685 6,956 7,268 2,601 Consumer 302 307 193 143 142 37 With No Related Allowance Recorded: Real estate mortgage: Hospitality $ 7,894 $ 10,057 $ — $ 6,366 $ 7,593 $ — SBA 10,141 13,678 — 11,141 14,708 — Other 22,924 35,625 — 29,268 40,643 — Real estate construction and land: Residential — — — 21 19 — Commercial 6,971 6,968 — 8,643 8,749 — Commercial: Collateralized 1,697 2,120 — 5,566 6,877 — Unsecured 467 518 — 725 809 — Asset-based — — — 4,436 5,415 — Cash flow — 505 — 387 919 — Equipment finance 57,873 60,754 — 4,175 7,528 — SBA 3,068 4,862 — 3,207 4,920 — Consumer 3,359 3,518 — 3,601 3,768 — Total Non-PCI Loans and Leases With and Without an Allowance Recorded: Real estate mortgage $ 58,111 $ 76,643 $ 1,461 $ 57,857 $ 74,122 $ 693 Real estate construction and land 8,118 8,113 49 10,555 14,465 69 Commercial 99,491 109,438 13,305 46,709 58,123 9,975 Consumer 3,661 3,825 193 3,744 3,910 37 Total $ 169,381 $ 198,019 $ 15,008 $ 118,865 $ 150,620 $ 10,774 Three Months Ended June 30, 2015 2014 Weighted Interest Weighted Interest Average Income Average Income Balance (1) Recognized Balance (1) Recognized (In thousands) With An Allowance Recorded: Real estate mortgage: Hospitality $ 1,919 $ 20 $ 1,974 $ 20 Other 15,138 161 14,329 174 Real estate construction and land: Residential 755 4 771 4 Commercial 392 5 435 6 Commercial: Collateralized 6,050 37 5,986 43 Unsecured 1,082 12 701 6 Asset-based 40 — 269 — Cash flow 14,606 — — — Equipment finance 9,178 — 1,322 — Consumer 302 2 3,571 5 With No Related Allowance Recorded: Real estate mortgage: Hospitality $ 7,894 $ — $ 6,552 $ — SBA 9,984 4 4,271 — Other 20,656 83 27,100 79 Real estate construction and land: Residential — — 542 — Commercial 6,971 58 11,049 71 Commercial: Collateralized 1,257 17 1,985 24 Unsecured 467 1 304 — Asset-based — — 4,604 — Cash flow — — 174 — Equipment finance 57,873 — 7,476 — SBA 3,068 37 1,406 — Consumer 3,359 2 274 — Total Non-PCI Loans and Leases With and Without an Allowance Recorded: Real estate mortgage $ 55,591 $ 268 $ 54,226 $ 273 Real estate construction and land 8,118 67 12,797 81 Commercial 93,621 104 24,227 73 Consumer 3,661 4 3,845 5 Total $ 160,991 $ 443 $ 95,095 $ 432 _________________________ (1) For the loans and leases (excluding PCI loans) reported as impaired at June 30, 2015 and 2014 , amounts were calculated based on the period of time such loans and leases were impaired during the reported period. Six Months Ended June 30, 2015 2014 Weighted Interest Weighted Interest Average Income Average Income Balance (1) Recognized Balance (1) Recognized (In thousands) With An Allowance Recorded: Real estate mortgage: Hospitality $ 1,919 $ 39 $ 1,974 $ 40 SBA — — — — Other 14,601 309 13,127 277 Real estate construction and land: Residential 755 8 771 8 Commercial 392 11 221 7 Commercial: Collateralized 5,249 55 4,843 49 Unsecured 1,058 22 684 12 Asset-based 40 — 269 — Cash flow 14,606 — — — Equipment finance 6,446 — 665 — SBA — — — — Consumer 302 5 2,761 9 With No Related Allowance Recorded: Real estate mortgage: Hospitality $ 7,770 $ — $ 6,552 $ — SBA 9,213 1 4,193 — Other 19,814 163 23,697 153 Real estate construction and land: Residential — — 339 — Commercial 6,971 114 8,214 97 Commercial: Collateralized 1,123 30 1,532 31 Unsecured 467 2 295 — Asset-based — — 2,340 — Cash flow — — 87 — Equipment finance 32,547 — 6,245 — SBA 3,068 82 1,406 — Consumer 3,359 4 253 — Total Non-PCI Loans and Leases With and Without an Allowance Recorded: Real estate mortgage $ 53,317 $ 512 $ 49,543 $ 470 Real estate construction and land 8,118 133 9,545 112 Commercial 64,604 191 18,366 92 Consumer 3,661 9 3,014 9 Total $ 129,700 $ 845 $ 80,468 $ 683 _________________________ (1) For the loans and leases (excluding PCI loans) reported as impaired at June 30, 2015 and 2014 , amounts were calculated based on the period of time such loans and leases were impaired during the reported period. Troubled debt restructurings are a result of rate reductions, term extensions, fee concessions, and debt forgiveness or a combination thereof. The following tables present new troubled debt restructurings of Non-PCI loans for the periods indicated: Three Months Ended June 30, 2015 Three Months Ended June 30, 2014 Pre- Post- Pre- Post- Modification Modification Modification Modification Outstanding Outstanding Outstanding Outstanding Number Recorded Recorded Number Recorded Recorded Troubled Debt Restructurings: of Loans Investment Investment of Loans Investment Investment (Dollars in thousands) Real estate mortgage: Other 10 $ 2,476 $ 2,450 4 $ 1,341 $ 1,341 Real estate construction and land: Commercial 2 7,004 7,004 — — — Commercial: Collateralized 6 3,309 3,309 2 59 59 Unsecured 2 112 112 — — — Cash flow 2 — — — — — Equipment finance (1) 5 49,205 49,205 — — — Total 27 $ 62,106 $ 62,080 6 $ 1,400 $ 1,400 _________________________ (1) During the second quarter of 2015, two loan relationships, consisting of five loans and leases adversely affected by low oil prices, were restructured to reduce the current payment amounts for a period of time. These loans were assessed for impairment during the first quarter of 2015 and a specific credit loss allowance was established. These loans were on nonaccrual status before and after the restructuring. Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 Pre- Post- Pre- Post- Modification Modification Modification Modification Outstanding Outstanding Outstanding Outstanding Number Recorded Recorded Number Recorded Recorded Troubled Debt Restructurings: of Loans Investment Investment of Loans Investment Investment (Dollars in thousands) Real estate mortgage: Other 24 $ 8,550 $ 8,336 8 $ 3,856 $ 3,856 Real estate construction and land: Commercial 3 9,614 9,614 2 4,920 4,920 Commercial: Collateralized 12 4,708 4,708 6 3,346 3,346 Unsecured 3 306 306 2 38 38 Cash flow 4 566 387 — — — Equipment finance 9 53,338 53,338 — — — SBA 1 — — — — — Consumer 1 91 91 1 124 124 Total 57 $ 77,173 $ 76,780 19 $ 12,284 $ 12,284 The following tables present troubled debt restructurings that subsequently defaulted for the periods indicated: Three Months Ended June 30, 2015 2014 Troubled Debt Restructurings Number Recorded Number Recorded That Subsequently Defaulted: of Loans Investment (1) of Loans Investment (1) (Dollars in thousands) Real estate mortgage - Other 3 $ 1,234 — $ — Commercial: Collateralized 1 375 — — Equipment finance 2 1,635 — — Consumer 1 16 — — Total 7 $ 3,260 (2) — $ — (3) _________________________ (1) The population of defaulted restructured loans for the period indicated includes only those loans restructured during the preceding 12-month period. The table excludes defaulted troubled restructurings in those classes for which the recorded investment was zero at the end of the period. (2) Represents the balance at June 30, 2015 , and there were no charge-offs. (3) Represents the balance at June 30, 2014 , and there were no charge-offs. Six Months Ended June 30, 2015 2014 Troubled Debt Restructurings Number Recorded Number Recorded That Subsequently Defaulted: of Loans Investment (1) of Loans Investment (1) (Dollars in thousands) Real estate mortgage - Other 3 $ 1,234 — $ — Commercial: Collateralized 1 375 2 427 Equipment finance 2 1,635 — — Consumer 1 16 — — Total 7 $ 3,260 (2) 2 $ 427 (3) _________________________ (1) The population of defaulted restructured loans for the period indicated includes only those loans restructured during the preceding 12-month period. The table excludes defaulted troubled restructurings in those classes for which the recorded investment was zero at the end of the period. (2) Represents the balance at June 30, 2015 , and there were no charge-offs. (3) Represents the balance at June 30, 2014 , and is net of charge-offs of $0.2 million . Purchased Credit Impaired (PCI) Loans The following table reflects the PCI loans by portfolio segment as of the dates indicated: June 30, December 31, 2015 2014 (In thousands) Real estate mortgage $ 250,268 $ 299,660 Real estate construction and land 1,688 7,743 Commercial 14,065 32,904 Consumer 318 332 Total gross PCI loans 266,339 340,639 Less: Discount (43,701 ) (49,848 ) Allowance for loan losses (14,328 ) (13,999 ) Total net PCI loans $ 208,310 $ 276,792 The following table summarizes the changes in the carrying amount of PCI loans and accretable yield on those loans for the period indicated: Carrying Accretable Amount Yield (In thousands) Balance, December 31, 2014 $ 276,792 $ (106,856 ) Accretion 18,059 18,059 Payments received (85,745 ) — Increase in expected cash flows, net — (7,204 ) Provision for credit losses (796 ) — Balance, June 30, 2015 $ 208,310 $ (96,001 ) The following table presents PCI loans by credit risk rating categories and portfolio segment as of the dates indicated. Nonclassified loans are those with a credit risk rating of either pass or special mention, while classified loans are those with a credit risk rating of either substandard or doubtful. June 30, 2015 December 31, 2014 Classified Nonclassified Total Classified Nonclassified Total (In thousands) Real estate mortgage $ 65,704 $ 146,404 $ 212,108 $ 101,161 $ 155,281 $ 256,442 Real estate construction and land 1,459 — 1,459 3,901 3,010 6,911 Commercial 8,619 163 8,782 26,942 212 27,154 Consumer 289 — 289 284 — 284 Total PCI loans $ 76,071 $ 146,567 $ 222,638 $ 132,288 $ 158,503 $ 290,791 In addition to our internal risk rating process, our federal and state banking regulators, as an integral part of their examination process, periodically review the Company’s loan risk rating classifications. Our regulators may require the Company to recognize rating downgrades based on their judgments related to information available to them at the time of their examinations. |