Loans and Leases | Loans and Leases The Company’s loan and lease portfolio includes originated and purchased loans and leases. Originated 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 for which it was deemed 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 on an accelerated basis 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: September 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 $ 5,521,291 $ 184,751 $ 5,706,042 $ 5,350,827 $ 256,489 $ 5,607,316 Real estate construction and land 376,197 2,690 378,887 309,162 6,924 316,086 Commercial 6,272,807 5,606 6,278,413 5,852,420 27,155 5,879,575 Consumer 129,762 293 130,055 101,423 284 101,707 Total gross loans and leases 12,300,057 193,340 12,493,397 11,613,832 290,852 11,904,684 Deferred fees and costs (41,141 ) (51 ) (41,192 ) (22,191 ) (61 ) (22,252 ) Total loans and leases, net of deferred fees 12,258,916 193,289 12,452,205 11,591,641 290,791 11,882,432 Allowance for loan and lease losses (92,316 ) (10,955 ) (103,271 ) (70,456 ) (13,999 ) (84,455 ) Total net loans and leases $ 12,166,600 $ 182,334 $ 12,348,934 $ 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 September 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 $ 29,908 $ 3,908 $ 50,531 $ 700 $ 85,047 $ 14,328 $ 99,375 Charge-offs (252 ) — (4,035 ) (25 ) (4,312 ) (1,119 ) (5,431 ) Recoveries 288 390 239 164 1,081 — 1,081 Provision (negative provision) 4,355 93 6,137 (85 ) 10,500 (2,254 ) 8,246 Balance, end of period $ 34,299 $ 4,391 $ 52,872 $ 754 $ 92,316 $ 10,955 $ 103,271 Nine Months Ended September 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 (1,767 ) — (12,964 ) (115 ) (14,846 ) (1,698 ) (16,544 ) Recoveries 1,783 1,034 2,393 392 5,602 112 5,714 Provision (negative provision) 9,186 (891 ) 23,585 (776 ) 31,104 (1,458 ) 29,646 Balance, end of period $ 34,299 $ 4,391 $ 52,872 $ 754 $ 92,316 $ 10,955 $ 103,271 Amount of the allowance applicable to loans and leases: Individually evaluated for impairment $ 1,443 $ 31 $ 10,343 $ 158 $ 11,975 Collectively evaluated for impairment $ 32,856 $ 4,360 $ 42,529 $ 596 $ 80,341 Acquired loans with deteriorated credit quality $ 10,955 The ending balance of the loan and lease portfolio is composed of loans and leases: Individually evaluated for impairment $ 58,393 $ 8,047 $ 76,088 $ 3,540 $ 146,068 Collectively evaluated for impairment $ 5,446,694 $ 364,433 $ 6,175,440 $ 126,281 $ 12,112,848 Acquired loans with deteriorated credit quality $ 193,289 Ending balance of loans and leases $ 5,505,087 $ 372,480 $ 6,251,528 $ 129,821 $ 12,258,916 $ 193,289 $ 12,452,205 Three Months Ended September 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 $ 22,276 $ 4,302 $ 35,530 $ 3,415 $ 65,523 $ 16,626 $ 82,149 Charge-offs (395 ) — (7,282 ) (171 ) (7,848 ) (108 ) (7,956 ) Recoveries 1,312 24 337 52 1,725 — 1,725 Provision (negative provision) 3,810 1,591 422 (2,139 ) 3,684 2,297 5,981 Balance, end of period $ 27,003 $ 5,917 $ 29,007 $ 1,157 $ 63,084 $ 18,815 $ 81,899 Nine Months Ended September 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 (976 ) — (9,049 ) (203 ) (10,228 ) (4,712 ) (14,940 ) Recoveries 1,949 112 1,301 294 3,656 51 3,707 Provision (negative provision) (48 ) 1,507 9,834 (1,878 ) 9,415 1,683 11,098 Balance, end of period $ 27,003 $ 5,917 $ 29,007 $ 1,157 $ 63,084 $ 18,815 $ 81,899 Amount of the allowance applicable to loans and leases: Individually evaluated for impairment $ 1,568 $ 119 $ 7,654 $ 34 $ 9,375 Collectively evaluated for impairment $ 25,435 $ 5,798 $ 21,353 $ 1,123 $ 53,709 Acquired loans with deteriorated credit quality $ 18,815 The ending balance of the loan and lease portfolio is composed of loans and leases: Individually evaluated for impairment $ 58,041 $ 12,621 $ 46,143 $ 3,448 $ 120,253 Collectively evaluated for impairment $ 5,340,203 $ 270,446 $ 5,387,644 $ 104,960 $ 11,103,253 Acquired loans with deteriorated credit quality $ 351,379 Ending balance of loans and leases $ 5,398,244 $ 283,067 $ 5,433,787 $ 108,408 $ 11,223,506 $ 351,379 $ 11,574,885 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. September 30, 2015 December 31, 2014 Classified Nonclassified Total Classified Nonclassified Total (In thousands) Real estate mortgage: Hospitality $ 10,695 $ 613,452 $ 624,147 $ 17,761 $ 542,458 $ 560,219 SBA 11,682 387,044 398,726 11,141 364,786 375,927 Other 56,981 4,425,233 4,482,214 68,084 4,336,330 4,404,414 Total real estate mortgage 79,358 5,425,729 5,505,087 96,986 5,243,574 5,340,560 Real estate construction and land: Residential 1,407 143,834 145,241 402 96,326 96,728 Commercial 584 226,655 227,239 3,346 207,061 210,407 Total real estate construction and land 1,991 370,489 372,480 3,748 303,387 307,135 Commercial: Collateralized 17,147 341,942 359,089 22,433 416,754 439,187 Unsecured 2,357 124,214 126,571 1,323 130,501 131,824 Asset-based 3,838 2,018,591 2,022,429 11,547 1,783,304 1,794,851 Cash flow 163,589 2,636,965 2,800,554 83,321 2,376,530 2,459,851 Equipment finance 53,153 841,624 894,777 15,973 953,516 969,489 SBA 2,918 45,190 48,108 3,207 44,054 47,261 Total commercial 243,002 6,008,526 6,251,528 137,804 5,704,659 5,842,463 Consumer 3,687 126,134 129,821 4,073 97,410 101,483 Total Non-PCI loans and leases $ 328,038 $ 11,930,878 $ 12,258,916 $ 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: September 30, 2015 30 - 89 90 or More Days Days Total Past Due Past Due Past Due Current Total (In thousands) Real estate mortgage: Hospitality $ 779 $ — $ 779 $ 623,368 $ 624,147 SBA 276 8,661 8,937 389,789 398,726 Other 4,022 7,276 11,298 4,470,916 4,482,214 Total real estate mortgage 5,077 15,937 21,014 5,484,073 5,505,087 Real estate construction and land: Residential — — — 145,241 145,241 Commercial — — — 227,239 227,239 Total real estate construction and land — — — 372,480 372,480 Commercial: Collateralized 425 140 565 358,524 359,089 Unsecured 57 — 57 126,514 126,571 Asset-based — — — 2,022,429 2,022,429 Cash flow — — — 2,800,554 2,800,554 Equipment finance — 1,680 1,680 893,097 894,777 SBA 239 1,218 1,457 46,651 48,108 Total commercial 721 3,038 3,759 6,247,769 6,251,528 Consumer 88 3,146 3,234 126,587 129,821 Total Non-PCI loans and leases $ 5,886 $ 22,121 $ 28,007 $ 12,230,909 $ 12,258,916 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 September 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. We 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 the 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: September 30, 2015 December 31, 2014 Nonaccrual Performing Total Nonaccrual Performing Total (In thousands) Real estate mortgage: Hospitality $ 1,845 $ 622,302 $ 624,147 $ 6,366 $ 553,853 $ 560,219 SBA 11,682 387,044 398,726 11,141 364,786 375,927 Other 18,294 4,463,920 4,482,214 20,105 4,384,309 4,404,414 Total real estate mortgage 31,821 5,473,266 5,505,087 37,612 5,302,948 5,340,560 Real estate construction and land: Residential 374 144,867 145,241 381 96,347 96,728 Commercial — 227,239 227,239 1,178 209,229 210,407 Total real estate construction and land 374 372,106 372,480 1,559 305,576 307,135 Commercial: Collateralized 2,771 356,318 359,089 5,450 433,737 439,187 Unsecured 923 125,648 126,571 639 131,185 131,824 Asset-based 90 2,022,339 2,022,429 4,574 1,790,277 1,794,851 Cash flow 11,761 2,788,793 2,800,554 15,964 2,443,887 2,459,851 Equipment finance 53,153 841,624 894,777 11,131 958,358 969,489 SBA 2,918 45,190 48,108 3,207 44,054 47,261 Total commercial 71,616 6,179,912 6,251,528 40,965 5,801,498 5,842,463 Consumer 3,379 126,442 129,821 3,485 97,998 101,483 Total Non-PCI loans and leases $ 107,190 $ 12,151,726 $ 12,258,916 $ 83,621 $ 11,508,020 $ 11,591,641 At September 30, 2015 , nonaccrual loans and leases totaled $107.2 million and included $22.1 million of loans and leases 90 or more days past due, $2.6 million of loans and leases 30 to 89 days past due, and $82.4 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 four relationships totaling $47.9 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: September 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 $ 31,821 $ 27,293 $ 59,114 $ 37,612 $ 20,245 $ 57,857 Real estate construction and land 374 7,673 8,047 1,559 8,996 10,555 Commercial 71,616 4,767 76,383 40,965 5,744 46,709 Consumer 3,379 223 3,602 3,485 259 3,744 Total $ 107,190 $ 39,956 $ 147,146 $ 83,621 $ 35,244 $ 118,865 The following table presents loan and lease relationships having direct exposure to the oil and gas industries as of the dates indicated: September 30, 2015 June 30, 2015 Amount Obligors Amount Obligors (Dollars in thousands) Loans $ 83,025 7 $ 87,005 8 Leases 69,247 20 90,189 21 Total oil & gas support services $ 152,272 27 $ 177,194 29 Nonaccrual $ 47,853 4 $ 64,232 4 Classified $ 47,853 4 $ 64,232 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: September 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 $ 1,907 $ 1,907 $ 6 $ 1,946 $ 1,945 $ 47 Other 13,955 14,203 1,437 9,136 9,233 646 Real estate construction and land: Residential 751 751 31 763 763 46 Commercial — — — 1,128 4,934 23 Commercial: Collateralized 4,966 5,529 3,006 4,630 5,246 3,771 Unsecured 1,908 1,921 1,580 912 924 799 Asset-based 30 140 30 137 247 137 Cash flow 11,761 17,606 2,097 15,578 17,970 2,667 Equipment finance 9,654 10,247 3,630 6,956 7,268 2,601 Consumer 394 400 158 143 142 37 With No Related Allowance Recorded: Real estate mortgage: Hospitality $ 7,920 $ 10,019 $ — $ 6,366 $ 7,593 $ — SBA 11,682 15,616 — 11,141 14,708 — Other 23,650 36,240 — 29,268 40,643 — Real estate construction and land: Residential — — — 21 19 — Commercial 7,296 7,293 — 8,643 8,749 — Commercial: Collateralized 1,486 1,908 — 5,566 6,877 — Unsecured 101 111 — 725 809 — Asset-based 61 61 — 4,436 5,415 — Cash flow — 505 — 387 919 — Equipment finance 43,498 46,894 — 4,175 7,528 — SBA 2,918 4,743 — 3,207 4,920 — Consumer 3,208 3,327 — 3,601 3,768 — Total Non-PCI Loans and Leases With and Without an Allowance Recorded: Real estate mortgage $ 59,114 $ 77,985 $ 1,443 $ 57,857 $ 74,122 $ 693 Real estate construction and land 8,047 8,044 31 10,555 14,465 69 Commercial 76,383 89,665 10,343 46,709 58,123 9,975 Consumer 3,602 3,727 158 3,744 3,910 37 Total $ 147,146 $ 179,421 $ 11,975 $ 118,865 $ 150,620 $ 10,774 Three Months Ended September 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 $ 1,907 $ 20 $ 1,957 $ 20 Other 13,801 141 13,302 129 Real estate construction and land: Residential 751 4 767 4 Commercial — — 1,162 6 Commercial: Collateralized 4,876 48 5,404 46 Unsecured 1,892 13 620 6 Asset-based 30 — 262 — Cash flow 11,761 — 15,726 — Equipment finance 9,654 — 1,864 — Consumer 394 4 146 2 With No Related Allowance Recorded: Real estate mortgage: Hospitality $ 7,920 $ 144 $ 6,451 $ — SBA 11,209 — 7,521 38 Other 23,466 113 29,119 79 Real estate construction and land: Residential — — 542 — Commercial 7,193 62 10,221 75 Commercial: Collateralized 1,486 21 2,746 25 Unsecured 101 1 144 — Asset-based 1 — 4,472 — Cash flow — — — — Equipment finance 43,406 — 9,466 — SBA 2,841 — 3,331 36 Consumer 3,208 — 3,492 2 Total Non-PCI Loans and Leases With and Without an Allowance Recorded: Real estate mortgage $ 58,303 $ 418 $ 58,350 $ 266 Real estate construction and land 7,944 66 12,692 85 Commercial 76,048 83 44,035 113 Consumer 3,602 4 3,638 4 Total $ 145,897 $ 571 $ 118,715 $ 468 _________________________ (1) For Non-PCI loans and leases reported as impaired at September 30, 2015 and 2014 , amounts were calculated based on the period of time such loans and leases were impaired during the reported period. Nine Months Ended September 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 $ 1,907 $ 58 $ 1,957 $ 60 SBA — — — — Other 13,582 415 12,989 383 Real estate construction and land: Residential 751 12 767 12 Commercial — — 1,162 19 Commercial: Collateralized 3,876 67 5,404 138 Unsecured 1,464 35 620 18 Asset-based 30 — 262 — Cash flow 11,761 — 5,357 — Equipment finance 6,905 — 1,051 — SBA — — — — Consumer 375 11 146 7 With No Related Allowance Recorded: Real estate mortgage: Hospitality $ 7,839 $ 426 $ 6,451 $ — SBA 9,518 1 6,259 38 Other 20,952 273 26,858 283 Real estate construction and land: Residential — — 407 — Commercial 7,021 176 10,221 222 Commercial: Collateralized 1,238 51 2,623 82 Unsecured 101 4 125 — Asset-based — — 3,013 — Cash flow — — — — Equipment finance 29,088 — 6,057 — SBA 2,816 82 2,786 36 Consumer 3,208 — 2,856 7 Total Non-PCI Loans and Leases With and Without an Allowance Recorded: Real estate mortgage $ 53,798 $ 1,173 $ 54,514 $ 764 Real estate construction and land 7,772 188 12,557 253 Commercial 57,279 239 27,298 274 Consumer 3,583 11 3,002 14 Total $ 122,432 $ 1,611 $ 97,371 $ 1,305 _________________________ (1) For Non-PCI loans and leases reported as impaired at September 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 September 30, 2015 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: SBA — $ — $ — 1 $ 64 $ 64 Other 5 956 956 7 10,496 10,496 Real estate construction and land: Commercial 3 7,333 7,333 — — — Commercial: Collateralized 1 3,431 3,431 9 1,507 1,507 Unsecured 9 883 883 3 173 173 SBA — — — 2 1,313 1,313 Consumer 1 106 106 3 183 183 Total 19 $ 12,709 $ 12,709 25 $ 13,736 $ 13,736 Nine Months Ended September 30, 2015 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: SBA — $ — $ — 1 $ 64 $ 64 Other 29 9,506 9,291 15 14,352 14,352 Real estate construction and land: Commercial 6 16,948 16,948 2 4,920 4,920 Commercial: Collateralized 13 8,138 8,138 15 4,853 4,853 Unsecured 12 1,190 1,190 5 211 211 Cash flow 4 566 387 — — — Equipment finance 9 53,338 53,338 — — — SBA 1 — — 2 1,313 1,313 Consumer 2 197 197 4 307 307 Total 76 $ 89,883 $ 89,489 44 $ 26,020 $ 26,020 The following tables present troubled debt restructurings that subsequently defaulted for the periods indicated: Three Months Ended September 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 $ 2,037 — $ — Real estate construction - Commercial — — 1 1,190 Commercial - Unsecured — — 2 37 Total 3 $ 2,037 (2) 3 $ 1,227 (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 September 30, 2015 , and there were no charge-offs. (3) Represents the balance at September 30, 2014 , and is net of charge-offs of $0.2 million . Nine Months Ended September 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 5 $ 3,240 — $ — Real estate construction - Commercial — — 1 1,190 Commercial: Collateralized — — 1 22 Unsecured — — 2 37 Consumer — — 1 109 Total 5 $ 3,240 (2) 5 $ 1,358 (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 September 30, 2015 , and there were no charge-offs. (3) Represents the balance at September 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: September 30, December 31, 2015 2014 (In thousands) Real estate mortgage $ 221,258 $ 299,660 Real estate construction and land 2,664 7,743 Commercial 8,590 32,904 Consumer 310 332 Total gross PCI loans 232,822 340,639 Less: Discount (39,533 ) (49,848 ) Allowance for loan losses (10,955 ) (13,999 ) Total net PCI loans $ 182,334 $ 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 25,523 25,523 Payments received (121,439 ) — Increase in expected cash flows, net — (10,694 ) Negative provision for credit losses 1,458 — Balance, September 30, 2015 $ 182,334 $ (92,027 ) 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. September 30, 2015 December 31, 2014 Classified Nonclassified Total Classified Nonclassified Total (In thousands) Real estate mortgage $ 48,987 $ 135,717 $ 184,704 $ 101,161 $ 155,281 $ 256,442 Real estate construction and land 1,254 1,432 2,686 3,901 3,010 6,911 Commercial 5,480 126 5,606 26,942 212 27,154 Consumer 293 — 293 284 — 284 Total PCI loans, net of deferred fees $ 56,014 $ 137,275 $ 193,289 $ 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. |