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: March 31, 2016 December 31, 2015 Non-PCI Non-PCI Loans PCI Loans PCI and Leases Loans Total and Leases Loans Total (In thousands) Real estate mortgage $ 5,649,282 $ 160,122 $ 5,809,404 $ 5,706,903 $ 168,725 $ 5,875,628 Real estate construction and land 584,968 2,689 587,657 534,307 2,656 536,963 Commercial 8,021,092 13,513 8,034,605 7,977,067 17,415 7,994,482 Consumer 110,573 283 110,856 120,793 299 121,092 Total gross loans and leases 14,365,915 176,607 14,542,522 14,339,070 189,095 14,528,165 Deferred fees and costs (58,954 ) (51 ) (59,005 ) (49,861 ) (50 ) (49,911 ) Total loans and leases, net of deferred fees 14,306,961 176,556 14,483,517 14,289,209 189,045 14,478,254 Allowance for loan and lease losses (120,807 ) (9,554 ) (130,361 ) (105,534 ) (9,577 ) (115,111 ) Total net loans and leases $ 14,186,154 $ 167,002 $ 14,353,156 $ 14,183,675 $ 179,468 $ 14,363,143 Non‑Purchased Credit Impaired (Non‑PCI) Loans and Leases The following tables present an aging analysis of our Non‑PCI loans and leases by portfolio segment and class as of the dates indicated: March 31, 2016 30 - 89 90 or More Days Days Total Past Due Past Due Past Due Current Total (In thousands) Real estate mortgage: Commercial $ 16,655 $ 10,638 $ 27,293 $ 4,525,668 $ 4,552,961 Residential 2,187 559 2,746 1,074,590 1,077,336 Total real estate mortgage 18,842 11,197 30,039 5,600,258 5,630,297 Real estate construction and land: Commercial — — — 305,529 305,529 Residential — — — 269,944 269,944 Total real estate construction and land — — — 575,473 575,473 Commercial: Cash flow 766 2,013 2,779 3,163,035 3,165,814 Asset-based 4 — 4 2,588,912 2,588,916 Venture capital 9,554 — 9,554 1,493,057 1,502,611 Equipment finance 2,244 2,140 4,384 728,844 733,228 Total commercial 12,568 4,153 16,721 7,973,848 7,990,569 Consumer 30 708 738 109,884 110,622 Total Non-PCI loans and leases $ 31,440 $ 16,058 $ 47,498 $ 14,259,463 $ 14,306,961 December 31, 2015 30 - 89 90 or More Days Days Total Past Due Past Due Past Due Current Total (In thousands) Real estate mortgage: Commercial $ 3,947 $ 13,075 $ 17,022 $ 4,534,936 $ 4,551,958 Residential 3,391 905 4,296 1,131,809 1,136,105 Total real estate mortgage 7,338 13,980 21,318 5,666,745 5,688,063 Real estate construction and land: Commercial — — — 343,360 343,360 Residential — — — 184,360 184,360 Total real estate construction and land — — — 527,720 527,720 Commercial: Cash flow 2,048 1,427 3,475 3,058,793 3,062,268 Asset-based 1 — 1 2,547,532 2,547,533 Venture capital 250 700 950 1,451,477 1,452,427 Equipment finance 359 94 453 889,896 890,349 Total commercial 2,658 2,221 4,879 7,947,698 7,952,577 Consumer 626 1,307 1,933 118,916 120,849 Total Non-PCI loans and leases $ 10,622 $ 17,508 $ 28,130 $ 14,261,079 $ 14,289,209 It is the Company's policy to discontinue accruing interest when, in the opinion of management, there is a reasonable doubt as to the collectability of a loan or lease in the normal course of business or 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. 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: March 31, 2016 December 31, 2015 Nonaccrual Performing Total Nonaccrual Performing Total (In thousands) Real estate mortgage: Commercial $ 30,357 $ 4,522,604 $ 4,552,961 $ 52,363 $ 4,499,595 $ 4,551,958 Residential 5,807 1,071,529 1,077,336 4,914 1,131,191 1,136,105 Total real estate mortgage 36,164 5,594,133 5,630,297 57,277 5,630,786 5,688,063 Real estate construction and land: Commercial — 305,529 305,529 — 343,360 343,360 Residential 370 269,574 269,944 372 183,988 184,360 Total real estate construction and land 370 575,103 575,473 372 527,348 527,720 Commercial: Cash flow 39,665 3,126,149 3,165,814 15,800 3,046,468 3,062,268 Asset-based 2,046 2,586,870 2,588,916 2,505 2,545,028 2,547,533 Venture capital — 1,502,611 1,502,611 124 1,452,303 1,452,427 Equipment finance 51,247 681,981 733,228 51,410 838,939 890,349 Total commercial 92,958 7,897,611 7,990,569 69,839 7,882,738 7,952,577 Consumer 926 109,696 110,622 1,531 119,318 120,849 Total Non-PCI loans and leases $ 130,418 $ 14,176,543 $ 14,306,961 $ 129,019 $ 14,160,190 $ 14,289,209 At March 31, 2016 , nonaccrual loans and leases totaled $130.4 million and included $13.5 million of loans and leases 90 or more days past due, $13.7 million of loans and leases 30 to 89 days past due, and $103.2 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 $129.0 million at December 31, 2015 , including $16.8 million of the loans and leases 90 or more days past due, $3.6 million of loans and leases 30 to 89 days past due, and $108.6 million of current loans and leases that were placed on nonaccrual status based on management’s judgment regarding their collectability. 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. March 31, 2016 December 31, 2015 Classified Nonclassified Total Classified Nonclassified Total (In thousands) Real estate mortgage: Commercial $ 65,532 $ 4,487,429 $ 4,552,961 $ 98,436 $ 4,453,522 $ 4,551,958 Residential 18,361 1,058,975 1,077,336 12,627 1,123,478 1,136,105 Total real estate mortgage 83,893 5,546,404 5,630,297 111,063 5,577,000 5,688,063 Real estate construction and land: Commercial 558 304,971 305,529 571 342,789 343,360 Residential 1,382 268,562 269,944 1,395 182,965 184,360 Total real estate construction and land 1,940 573,533 575,473 1,966 525,754 527,720 Commercial: Cash flow 209,108 2,956,706 3,165,814 183,726 2,878,542 3,062,268 Asset-based 22,236 2,566,680 2,588,916 19,340 2,528,193 2,547,533 Venture capital 14,889 1,487,722 1,502,611 19,105 1,433,322 1,452,427 Equipment finance 51,247 681,981 733,228 54,054 836,295 890,349 Total commercial 297,480 7,693,089 7,990,569 276,225 7,676,352 7,952,577 Consumer 1,385 109,237 110,622 2,500 118,349 120,849 Total Non-PCI loans and leases $ 384,698 $ 13,922,263 $ 14,306,961 $ 391,754 $ 13,897,455 $ 14,289,209 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. Non‑PCI nonaccrual loans and leases and performing troubled debt 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: March 31, 2016 December 31, 2015 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 $ 36,164 $ 55,124 $ 91,288 $ 57,277 $ 27,133 $ 84,410 Real estate construction and land 370 7,575 7,945 372 7,631 8,003 Commercial 92,958 3,901 96,859 69,839 5,221 75,060 Consumer 926 229 1,155 1,531 197 1,728 Total $ 130,418 $ 66,829 $ 197,247 $ 129,019 $ 40,182 $ 169,201 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: March 31, 2016 December 31, 2015 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance (In thousands) With An Allowance Recorded: Real estate mortgage: Commercial $ 25,440 $ 26,632 $ 1,206 $ 17,967 $ 19,219 $ 777 Residential 4,198 4,352 748 2,278 2,435 681 Real estate construction and land: Residential 743 743 21 747 747 26 Commercial: Cash flow 37,894 44,786 9,965 14,072 20,312 7,079 Asset-based 3,696 4,250 1,973 3,901 4,423 2,511 Equipment finance 51,247 58,862 15,964 11,193 11,894 8,032 Consumer 359 365 163 365 372 157 With No Related Allowance Recorded: Real estate mortgage: Commercial $ 55,460 $ 65,094 $ 58,678 $ 68,333 Residential 6,190 12,347 5,487 11,406 Real estate construction and land: Commercial 7,202 7,197 7,256 7,256 Commercial: Cash flow 2,841 5,188 2,825 5,121 Asset-based 1,181 1,176 2,729 2,726 Venture capital — — 124 125 Equipment finance — — 40,216 44,194 Consumer 796 1,904 1,363 1,945 Total Non-PCI Loans and Leases With and Without an Allowance Recorded: Real estate mortgage $ 91,288 $ 108,425 $ 1,954 $ 84,410 $ 101,393 $ 1,458 Real estate construction and land 7,945 7,940 21 8,003 8,003 26 Commercial 96,859 114,262 27,902 75,060 88,795 17,622 Consumer 1,155 2,269 163 1,728 2,317 157 Total $ 197,247 $ 232,896 $ 30,040 $ 169,201 $ 200,508 $ 19,263 Three Months Ended March 31, 2016 2015 Weighted Interest Weighted Interest Average Income Average Income Balance (1) Recognized Balance (1) Recognized (In thousands) With An Allowance Recorded: Real estate mortgage: Commercial $ 19,471 $ 243 $ 11,917 $ 148 Residential 4,198 24 2,796 7 Real estate construction and land: Commercial — — 403 5 Residential 743 4 759 4 Commercial: Cash flow 20,823 12 16,028 11 Asset-based 3,696 27 4,693 33 Equipment finance 49,322 — 4,581 — Consumer 341 3 383 4 With No Related Allowance Recorded: Real estate mortgage: Commercial $ 54,132 $ 217 $ 36,704 $ 74 Residential 5,405 14 5,187 6 Real estate construction and land: Commercial 7,202 62 7,457 271 Residential — — 20 — Commercial: Cash flow 2,683 1 3,845 46 Asset-based 1,181 15 7,435 48 Equipment finance — — 7,537 — Consumer 797 — 3,345 — Total Non-PCI Loans and Leases With and Without an Allowance Recorded: Real estate mortgage $ 83,206 $ 498 $ 56,604 $ 235 Real estate construction and land 7,945 66 8,639 280 Commercial 77,705 55 44,119 138 Consumer 1,138 3 3,728 4 Total $ 169,994 $ 622 $ 113,090 $ 657 _________________________ (1) For Non-PCI loans and leases reported as impaired at March 31, 2016 and 2015 , 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 March 31, 2016 2015 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: Commercial 4 $ 3,140 $ 3,140 9 $ 5,161 $ 5,113 Residential 1 165 165 5 913 773 Real estate construction and land: Commercial — — — 1 2,610 2,610 Commercial: Cash flow 4 257 257 4 761 582 Asset-based 2 629 629 6 1,399 1,399 Equipment finance 2 2,660 2,660 4 4,133 4,133 Consumer 1 60 60 1 91 91 Total 14 $ 6,911 $ 6,911 30 $ 15,068 $ 14,701 The following tables present troubled debt restructurings that subsequently defaulted for the periods indicated: Three Months Ended March 31, 2016 2015 Troubled Debt Restructurings Number Recorded Number Recorded That Subsequently Defaulted: of Loans Investment (1) of Loans Investment (1) (Dollars in thousands) Real estate mortgage: Commercial 1 $ 230 1 $ 1,511 Residential — — 1 8 Commercial - Asset-based — — 1 385 Total 1 $ 230 (2) 3 $ 1,904 (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 March 31, 2016 , and there were no charge-offs. (3) Represents the balance at March 31, 2015 , and is net of charge-offs of $772,000 . Allowance for Loan and Lease Losses 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 March 31, 2016 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 $ 36,654 $ 7,137 $ 61,082 $ 661 $ 105,534 $ 9,577 $ 115,111 Charge-offs (737 ) — (4,045 ) (591 ) (5,373 ) (163 ) (5,536 ) Recoveries 999 152 314 16 1,481 — 1,481 Provision (negative provision) (7,817 ) (413 ) 26,606 789 19,165 140 19,305 Balance, end of period $ 29,099 $ 6,876 $ 83,957 $ 875 $ 120,807 $ 9,554 $ 130,361 Amount of the allowance applicable to loans and leases: Individually evaluated for impairment $ 1,954 $ 21 $ 27,902 $ 163 $ 30,040 Collectively evaluated for impairment $ 27,145 $ 6,855 $ 56,055 $ 712 $ 90,767 Acquired loans with deteriorated credit quality $ 9,554 The ending balance of the loan and lease portfolio is composed of loans and leases: Individually evaluated for impairment $ 90,830 $ 7,945 $ 96,614 $ 1,102 $ 196,491 Collectively evaluated for impairment $ 5,539,467 $ 567,528 $ 7,893,955 $ 109,520 $ 14,110,470 Acquired loans with deteriorated credit quality $ 176,556 Ending balance of loans and leases $ 5,630,297 $ 575,473 $ 7,990,569 $ 110,622 $ 14,306,961 $ 176,556 $ 14,483,517 Three Months Ended March 31, 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 (1,453 ) — (8,395 ) (63 ) (9,911 ) (579 ) (10,490 ) Recoveries 1,295 632 410 194 2,531 11 2,542 Provision (negative provision) 5,972 (2,707 ) 13,921 (582 ) 16,604 (733 ) 15,871 Balance, end of period $ 30,911 $ 2,173 $ 45,794 $ 802 $ 79,680 $ 12,698 $ 92,378 Amount of the allowance applicable to loans and leases: Individually evaluated for impairment $ 1,500 $ 55 $ 10,493 $ 178 $ 12,226 Collectively evaluated for impairment $ 29,411 $ 2,118 $ 35,301 $ 624 $ 67,454 Acquired loans with deteriorated credit quality $ 12,698 The ending balance of the loan and lease portfolio is composed of loans and leases: Individually evaluated for impairment $ 59,733 $ 8,639 $ 103,208 $ 3,729 $ 175,309 Collectively evaluated for impairment $ 5,528,697 $ 320,070 $ 5,903,859 $ 89,946 $ 11,842,572 Acquired loans with deteriorated credit quality $ 254,285 Ending balance of loans and leases $ 5,588,430 $ 328,709 $ 6,007,067 $ 93,675 $ 12,017,881 $ 254,285 $ 12,272,166 |