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, 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 $ 5,481,922 $ 104,896 $ 5,586,818 $ 5,706,903 $ 168,725 $ 5,875,628 Real estate construction and land 843,097 2,423 845,520 534,307 2,656 536,963 Commercial 8,104,711 12,649 8,117,360 7,977,067 17,415 7,994,482 Consumer 256,476 253 256,729 120,793 299 121,092 Total gross loans and leases 14,686,206 120,221 14,806,427 14,339,070 189,095 14,528,165 Deferred fees, net (63,559 ) (22 ) (63,581 ) (49,861 ) (50 ) (49,911 ) Total loans and leases, net of deferred fees 14,622,647 120,199 14,742,846 14,289,209 189,045 14,478,254 Allowance for loan and lease losses (136,747 ) (11,229 ) (147,976 ) (105,534 ) (9,577 ) (115,111 ) Total net loans and leases $ 14,485,900 $ 108,970 $ 14,594,870 $ 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: September 30, 2016 30 - 89 90 or More Days Days Total Past Due Past Due Past Due Current Total (In thousands) Real estate mortgage: Commercial $ 10,489 $ 5,772 $ 16,261 $ 4,262,571 $ 4,278,832 Residential 266 2,520 2,786 1,183,323 1,186,109 Total real estate mortgage 10,755 8,292 19,047 5,445,894 5,464,941 Real estate construction and land: Commercial 1,245 — 1,245 507,166 508,411 Residential — — — 323,104 323,104 Total real estate construction and land 1,245 — 1,245 830,270 831,515 Commercial: Cash flow 66 2,128 2,194 3,063,297 3,065,491 Asset-based 6,644 15 6,659 2,565,142 2,571,801 Venture capital — 1,095 1,095 1,760,517 1,761,612 Equipment finance 3,304 350 3,654 667,129 670,783 Total commercial 10,014 3,588 13,602 8,056,085 8,069,687 Consumer — 4 4 256,500 256,504 Total Non-PCI loans and leases $ 22,014 $ 11,884 $ 33,898 $ 14,588,749 $ 14,622,647 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: September 30, 2016 December 31, 2015 Nonaccrual Performing Total Nonaccrual Performing Total (In thousands) Real estate mortgage: Commercial $ 74,606 $ 4,204,226 $ 4,278,832 $ 52,363 $ 4,499,595 $ 4,551,958 Residential 5,089 1,181,020 1,186,109 4,914 1,131,191 1,136,105 Total real estate mortgage 79,695 5,385,246 5,464,941 57,277 5,630,786 5,688,063 Real estate construction and land: Commercial 1,245 507,166 508,411 — 343,360 343,360 Residential 366 322,738 323,104 372 183,988 184,360 Total real estate construction and land 1,611 829,904 831,515 372 527,348 527,720 Commercial: Cash flow 27,831 3,037,660 3,065,491 15,800 3,046,468 3,062,268 Asset-based 4,044 2,567,757 2,571,801 2,505 2,545,028 2,547,533 Venture capital 10,782 1,750,830 1,761,612 124 1,452,303 1,452,427 Equipment finance 46,916 623,867 670,783 51,410 838,939 890,349 Total commercial 89,573 7,980,114 8,069,687 69,839 7,882,738 7,952,577 Consumer 206 256,298 256,504 1,531 119,318 120,849 Total Non-PCI loans and leases $ 171,085 $ 14,451,562 $ 14,622,647 $ 129,019 $ 14,160,190 $ 14,289,209 At September 30, 2016 , nonaccrual loans and leases totaled $171.1 million and included $11.9 million of loans and leases 90 or more days past due, $13.2 million of loans and leases 30 to 89 days past due, and $146.0 million of loans and leases current with respect to contractual payments 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. September 30, 2016 December 31, 2015 Classified Nonclassified Total Classified Nonclassified Total (In thousands) Real estate mortgage: Commercial $ 104,914 $ 4,173,918 $ 4,278,832 $ 98,436 $ 4,453,522 $ 4,551,958 Residential 15,876 1,170,233 1,186,109 12,627 1,123,478 1,136,105 Total real estate mortgage 120,790 5,344,151 5,464,941 111,063 5,577,000 5,688,063 Real estate construction and land: Commercial 1,839 506,572 508,411 571 342,789 343,360 Residential 366 322,738 323,104 1,395 182,965 184,360 Total real estate construction and land 2,205 829,310 831,515 1,966 525,754 527,720 Commercial: Cash flow 174,490 2,891,001 3,065,491 183,726 2,878,542 3,062,268 Asset-based 34,791 2,537,010 2,571,801 19,340 2,528,193 2,547,533 Venture capital 37,986 1,723,626 1,761,612 19,105 1,433,322 1,452,427 Equipment finance 46,916 623,867 670,783 54,054 836,295 890,349 Total commercial 294,183 7,775,504 8,069,687 276,225 7,676,352 7,952,577 Consumer 363 256,141 256,504 2,500 118,349 120,849 Total Non-PCI loans and leases $ 417,541 $ 14,205,106 $ 14,622,647 $ 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: September 30, 2016 December 31, 2015 Performing Total Performing Total Nonaccrual Troubled Impaired Nonaccrual Troubled Impaired Loans Debt Loans Loans Debt Loans and Restructured and and Restructured and Leases Loans Leases Leases Loans Leases (In thousands) Real estate mortgage $ 79,695 $ 59,793 $ 139,488 $ 57,277 $ 27,133 $ 84,410 Real estate construction and land 1,611 7,089 8,700 372 7,631 8,003 Commercial 89,573 3,250 92,823 69,839 5,221 75,060 Consumer 206 216 422 1,531 197 1,728 Total $ 171,085 $ 70,348 $ 241,433 $ 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: September 30, 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 $ 67,821 $ 68,852 $ 7,055 $ 17,967 $ 19,219 $ 777 Residential 2,517 2,573 244 2,278 2,435 681 Real estate construction and land: Residential 736 736 11 747 747 26 Commercial: Cash flow 25,936 26,971 4,686 14,072 20,312 7,079 Asset-based 4,136 4,584 2,899 3,901 4,423 2,511 Venture capital 10,781 10,856 3,331 — — — Equipment finance 46,916 52,908 12,715 11,193 11,894 8,032 Consumer 346 355 179 365 372 157 With No Related Allowance Recorded: Real estate mortgage: Commercial $ 59,090 $ 68,390 $ 58,678 $ 68,333 Residential 10,060 15,309 5,487 11,406 Real estate construction and land: Commercial 7,964 7,964 7,256 7,256 Commercial: Cash flow 2,519 4,783 2,825 5,121 Asset-based 2,535 2,575 2,729 2,726 Venture capital — — 124 125 Equipment finance — 11,709 40,216 44,194 Consumer 76 146 1,363 1,945 Total Non-PCI Loans and Leases With and Without an Allowance Recorded: Real estate mortgage $ 139,488 $ 155,124 $ 7,299 $ 84,410 $ 101,393 $ 1,458 Real estate construction and land 8,700 8,700 11 8,003 8,003 26 Commercial 92,823 114,386 23,631 75,060 88,795 17,622 Consumer 422 501 179 1,728 2,317 157 Total $ 241,433 $ 278,711 $ 31,120 $ 169,201 $ 200,508 $ 19,263 Three Months Ended September 30, 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 $ 18,580 $ 262 $ 13,230 $ 152 Residential 2,505 15 2,478 9 Real estate construction and land: Residential 736 4 751 4 Commercial: Cash flow 25,933 9 13,653 13 Asset-based 2,730 5 4,906 48 Venture capital 6,878 — — — Equipment finance 42,913 — 9,654 — Consumer 346 3 394 4 With No Related Allowance Recorded: Real estate mortgage: Commercial $ 59,090 $ 518 $ 36,534 $ 243 Residential 9,573 70 6,061 14 Real estate construction and land: Commercial 7,870 57 7,193 62 Commercial: Cash flow 2,330 1 2,942 1 Asset-based 2,535 37 1,487 21 Equipment finance — — 43,406 — Consumer 76 — 3,208 — Total Non-PCI Loans and Leases With and Without an Allowance Recorded: Real estate mortgage $ 89,748 $ 865 $ 58,303 $ 418 Real estate construction and land 8,606 61 7,944 66 Commercial 83,319 52 76,048 83 Consumer 422 3 3,602 4 Total $ 182,095 $ 981 $ 145,897 $ 571 _________________________ (1) For Non-PCI loans and leases reported as impaired at September 30, 2016 and 2015 , amounts were calculated based on the period of time such loans and leases were impaired during the reported period. Nine Months Ended September 30, 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 $ 18,220 $ 781 $ 13,155 $ 449 Residential 2,325 42 2,334 24 Real estate construction and land: Residential 736 11 751 12 Commercial: Cash flow 20,417 26 13,225 35 Asset-based 2,278 14 3,906 67 Venture capital 2,542 — — — Equipment finance 41,587 — 6,905 — Consumer 330 8 375 11 With No Related Allowance Recorded: Real estate mortgage: Commercial $ 54,747 $ 1,209 $ 33,263 $ 674 Residential 6,990 130 5,046 26 Real estate construction and land: Commercial 7,106 169 7,021 176 Commercial: Cash flow 2,232 1 2,917 86 Asset-based 1,828 77 1,238 51 Equipment finance — — 29,088 — Consumer 74 1 3,208 — Total Non-PCI Loans and Leases With and Without an Allowance Recorded: Real estate mortgage $ 82,282 $ 2,162 $ 53,798 $ 1,173 Real estate construction and land 7,842 180 7,772 188 Commercial 70,884 118 57,279 239 Consumer 404 9 3,583 11 Total $ 161,412 $ 2,469 $ 122,432 $ 1,611 _________________________ (1) For Non-PCI loans and leases reported as impaired at September 30, 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 September 30, 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 2 $ 1,147 $ 1,147 3 $ 574 $ 574 Residential 1 93 93 2 382 382 Real estate construction and land: Commercial 1 1,245 1,245 3 7,333 7,333 Commercial: Cash flow 2 25 25 9 883 883 Asset-based 1 25 25 1 3,431 3,431 Equipment finance 1 39,912 39,912 — — — Consumer 1 21 21 1 106 106 Total 9 $ 42,468 $ 42,468 19 $ 12,709 $ 12,709 Nine Months Ended September 30, 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 7 $ 5,287 $ 5,287 15 $ 7,080 $ 7,031 Residential 7 5,136 5,136 14 2,426 2,260 Real estate construction and land: Commercial 1 1,245 1,245 6 16,947 16,947 Commercial: Cash flow 12 30,582 30,582 17 1,756 1,577 Asset-based 5 2,158 2,158 13 8,139 8,139 Equipment finance 7 44,196 42,572 9 53,338 53,338 Consumer 4 819 111 2 197 197 Total 43 $ 89,423 $ 87,091 76 $ 89,883 $ 89,489 The following tables present troubled debt restructurings that subsequently defaulted for the periods indicated: Three Months Ended September 30, 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 $ 1,761 Residential — — 2 276 Real estate construction: Commercial 1 1,245 — — Commercial: Asset-based 1 2 — — Total 2 $ 1,247 (2) 3 $ 2,037 (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, 2016 , and there were no charge-offs. (3) Represents the balance at September 30, 2015 , and there were no charge-offs. Nine Months Ended September 30, 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 — $ — 2 $ 2,710 Residential — — 3 530 Real estate construction and land: Commercial 1 1,245 — — Commercial: Asset-based 1 2 — — Equipment finance 1 39,912 (4) — — Total 3 $ 41,159 (2) 5 $ 3,240 (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, 2016 , and there were no charge-offs. (3) Represents the balance at September 30, 2015 , and there were no charge-offs. (4) The term of the modification for this loan expired in the second quarter of 2016 and was not renewed until the third quarter of 2016. Thus, the loan was in payment default under the loan's original terms at June 30, 2016. 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 September 30, 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 $ 29,331 $ 7,853 $ 93,404 $ 1,412 $ 132,000 $ 11,289 $ 143,289 Charge-offs (302 ) — (9,606 ) (16 ) (9,924 ) (531 ) (10,455 ) Recoveries 2,414 27 3,553 56 6,050 — 6,050 Provision 5,498 803 2,240 80 8,621 471 9,092 Balance, end of period $ 36,941 $ 8,683 $ 89,591 $ 1,532 $ 136,747 $ 11,229 $ 147,976 Nine Months Ended September 30, 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 (1,905 ) — (14,306 ) (798 ) (17,009 ) (862 ) (17,871 ) Recoveries 4,352 185 4,179 95 8,811 — 8,811 Provision (negative provision) (2,160 ) 1,361 38,636 1,574 39,411 2,514 41,925 Balance, end of period $ 36,941 $ 8,683 $ 89,591 $ 1,532 $ 136,747 $ 11,229 $ 147,976 Amount of the allowance applicable to loans and leases: Individually evaluated for impairment $ 7,299 $ 11 $ 23,631 $ 179 $ 31,120 Collectively evaluated for impairment $ 29,642 $ 8,672 $ 65,960 $ 1,353 $ 105,627 Acquired loans with deteriorated credit quality $ 11,229 The ending balance of the loan and lease portfolio is composed of loans and leases: Individually evaluated for impairment $ 139,059 $ 8,700 $ 92,637 $ 376 $ 240,772 Collectively evaluated for impairment $ 5,325,882 $ 822,815 $ 7,977,050 $ 256,128 $ 14,381,875 Acquired loans with deteriorated credit quality $ 120,199 Ending balance of loans and leases $ 5,464,941 $ 831,515 $ 8,069,687 $ 256,504 $ 14,622,647 $ 120,199 $ 14,742,846 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 |