Loans and Leases | LOANS AND LEASES Our 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 we would be able to collect all contractually required payments, are referred to collectively as Non-PCI loans. Generally, PCI loans are purchased loans for which there was, at the acquisition date, evidence of credit deterioration since their origination and for which it was probable that collection of all contractually required payments was unlikely. 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 on acquired non-impaired loans are recognized as an adjustment to interest income over the contractual life of the loans primarily using the effective interest method or taken into income when the related loans are paid off or included in the carrying amount of loans that are 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, 2017 December 31, 2016 Non-PCI Non-PCI Loans PCI Loans PCI and Leases Loans Total and Leases Loans Total (In thousands) Real estate mortgage $ 5,904,995 $ 88,918 $ 5,993,913 $ 5,635,675 $ 92,793 $ 5,728,468 Real estate construction and land 1,123,123 2,326 1,125,449 975,032 2,409 977,441 Commercial 8,115,953 4,863 8,120,816 8,426,236 12,994 8,439,230 Consumer 382,447 246 382,693 375,149 249 375,398 Total gross loans and leases 15,526,518 96,353 15,622,871 15,412,092 108,445 15,520,537 Deferred fees, net (66,164 ) (18 ) (66,182 ) (64,562 ) (21 ) (64,583 ) Total loans and leases, net of deferred fees 15,460,354 96,335 15,556,689 15,347,530 108,424 15,455,954 Allowance for loan and lease losses (149,826 ) (11,481 ) (161,307 ) (143,755 ) (13,483 ) (157,238 ) Total loans and leases, net $ 15,310,528 $ 84,854 $ 15,395,382 $ 15,203,775 $ 94,941 $ 15,298,716 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, 2017 30 - 89 90 or More Days Days Total Past Due Past Due Past Due Current Total (In thousands) Real estate mortgage: Commercial $ 9,218 $ 3,975 $ 13,193 $ 4,365,745 $ 4,378,938 Residential 844 1,879 2,723 1,505,308 1,508,031 Total real estate mortgage 10,062 5,854 15,916 5,871,053 5,886,969 Real estate construction and land: Commercial — — — 666,185 666,185 Residential — 362 362 441,689 442,051 Total real estate construction and land — 362 362 1,107,874 1,108,236 Commercial: Cash flow 598 2,915 3,513 3,129,896 3,133,409 Asset-based 500 204 704 2,390,379 2,391,083 Venture capital 14,381 257 14,638 1,920,311 1,934,949 Equipment finance 251 — 251 622,986 623,237 Total commercial 15,730 3,376 19,106 8,063,572 8,082,678 Consumer 77 — 77 382,394 382,471 Total Non-PCI loans and leases $ 25,869 $ 9,592 $ 35,461 $ 15,424,893 $ 15,460,354 December 31, 2016 30 - 89 90 or More Days Days Total Past Due Past Due Past Due Current Total (In thousands) Real estate mortgage: Commercial $ 8,590 $ 3,303 $ 11,893 $ 4,341,740 $ 4,353,633 Residential 5,694 1,999 7,693 1,256,630 1,264,323 Total real estate mortgage 14,284 5,302 19,586 5,598,370 5,617,956 Real estate construction and land: Commercial — — — 578,838 578,838 Residential 364 — 364 383,637 384,001 Total real estate construction and land 364 — 364 962,475 962,839 Commercial: Cash flow 191 1,821 2,012 3,105,380 3,107,392 Asset-based 1,500 2 1,502 2,607,543 2,609,045 Venture capital 13,589 5,769 19,358 1,963,798 1,983,156 Equipment finance 1,417 3,051 4,468 687,499 691,967 Total commercial 16,697 10,643 27,340 8,364,220 8,391,560 Consumer 224 — 224 374,951 375,175 Total Non-PCI loans and leases $ 31,569 $ 15,945 $ 47,514 $ 15,300,016 $ 15,347,530 It is our 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 opinion 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: March 31, 2017 December 31, 2016 Nonaccrual Performing Total Nonaccrual Performing Total (In thousands) Real estate mortgage: Commercial $ 66,216 $ 4,312,722 $ 4,378,938 $ 62,454 $ 4,291,179 $ 4,353,633 Residential 5,826 1,502,205 1,508,031 6,881 1,257,442 1,264,323 Total real estate mortgage 72,042 5,814,927 5,886,969 69,335 5,548,621 5,617,956 Real estate construction and land: Commercial — 666,185 666,185 — 578,838 578,838 Residential 362 441,689 442,051 364 383,637 384,001 Total real estate construction and land 362 1,107,874 1,108,236 364 962,475 962,839 Commercial: Cash flow 53,611 3,079,798 3,133,409 53,908 3,053,484 3,107,392 Asset-based 1,165 2,389,918 2,391,083 2,118 2,606,927 2,609,045 Venture capital 15,289 1,919,660 1,934,949 11,687 1,971,469 1,983,156 Equipment finance 30,388 592,849 623,237 32,848 659,119 691,967 Total commercial 100,453 7,982,225 8,082,678 100,561 8,290,999 8,391,560 Consumer 173 382,298 382,471 339 374,836 375,175 Total Non-PCI loans and leases $ 173,030 $ 15,287,324 $ 15,460,354 $ 170,599 $ 15,176,931 $ 15,347,530 At March 31, 2017 , nonaccrual loans and leases totaled $173.0 million and included $9.6 million of loans and leases 90 or more days past due, $4.0 million of loans and leases 30 to 89 days past due, and $159.4 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 $170.6 million at December 31, 2016 , including $15.9 million of the loans and leases 90 or more days past due, $3.0 million of loans and leases 30 to 89 days past due, and $151.7 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, 2017 December 31, 2016 Classified Nonclassified Total Classified Nonclassified Total (In thousands) Real estate mortgage: Commercial $ 100,202 $ 4,278,736 $ 4,378,938 $ 99,641 $ 4,253,992 $ 4,353,633 Residential 9,680 1,498,351 1,508,031 17,540 1,246,783 1,264,323 Total real estate mortgage 109,882 5,777,087 5,886,969 117,181 5,500,775 5,617,956 Real estate construction and land: Commercial 403 665,782 666,185 409 578,429 578,838 Residential 362 441,689 442,051 364 383,637 384,001 Total real estate construction and land 765 1,107,471 1,108,236 773 962,066 962,839 Commercial: Cash flow 175,511 2,957,898 3,133,409 177,661 2,929,731 3,107,392 Asset-based 32,285 2,358,798 2,391,083 28,112 2,580,933 2,609,045 Venture capital 75,222 1,859,727 1,934,949 52,646 1,930,510 1,983,156 Equipment finance 30,388 592,849 623,237 32,848 659,119 691,967 Total commercial 313,406 7,769,272 8,082,678 291,267 8,100,293 8,391,560 Consumer 346 382,125 382,471 424 374,751 375,175 Total Non-PCI loans and leases $ 424,399 $ 15,035,955 $ 15,460,354 $ 409,645 $ 14,937,885 $ 15,347,530 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 increases in the provisions for credit losses and the allowance for credit losses. Non‑PCI nonaccrual loans and leases and performing troubled debt restructured loans are considered impaired for reporting purposes. Troubled debt restructurings are a result of rate reductions, term extensions, fee concessions, and debt forgiveness, or a combination thereof. The following table presents the composition of our impaired loans and leases as of the dates indicated: March 31, 2017 December 31, 2016 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 $ 72,042 $ 47,119 $ 119,161 $ 69,335 $ 54,750 $ 124,085 Real estate construction and land 362 6,321 6,683 364 6,893 7,257 Commercial 100,453 2,920 103,373 100,561 3,157 103,718 Consumer 173 141 314 339 152 491 Total $ 173,030 $ 56,501 $ 229,531 $ 170,599 $ 64,952 $ 235,551 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, 2017 December 31, 2016 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Impaired Loans and Leases Investment Balance Allowance Investment Balance Allowance (In thousands) With An Allowance Recorded: Real estate mortgage: Commercial $ 14,350 $ 15,257 $ 633 $ 63,325 $ 65,031 $ 6,266 Residential 3,502 3,570 437 8,424 8,612 585 Real estate construction and land: Residential — — — 213 213 — Commercial: Cash flow 50,690 65,605 8,901 51,272 52,910 12,474 Asset-based 1,430 1,423 144 4,395 4,861 2,144 Venture capital 12,206 12,254 3,222 5,821 5,880 3,294 Equipment finance — — — 1,524 4,636 — Consumer 187 191 90 270 280 170 With No Related Allowance Recorded: Real estate mortgage: Commercial $ 96,032 $ 105,317 $ 44,557 $ 51,402 Residential 5,277 6,408 7,779 8,940 Real estate construction and land: Commercial 6,111 6,111 6,680 6,680 Residential 572 576 364 366 Commercial: Cash flow 2,925 5,718 2,852 5,939 Asset-based 2,651 3,782 664 1,652 Venture capital 3,083 9,907 5,866 8,939 Equipment finance 30,388 51,682 31,324 53,319 Consumer 127 198 221 292 Total Non-PCI Loans and Leases With and Without an Allowance Recorded: Real estate mortgage $ 119,161 $ 130,552 $ 1,070 $ 124,085 $ 133,985 $ 6,851 Real estate construction and land 6,683 6,687 — 7,257 7,259 — Commercial 103,373 150,371 12,267 103,718 138,136 17,912 Consumer 314 389 90 491 572 170 Total $ 229,531 $ 287,999 $ 13,427 $ 235,551 $ 279,952 $ 24,933 Three Months Ended March 31, 2017 2016 Weighted Interest Weighted Interest Average Income Average Income Impaired Loans and Leases Balance (1) Recognized Balance (1) Recognized (In thousands) With An Allowance Recorded: Real estate mortgage: Commercial $ 14,350 $ 206 $ 19,471 $ 243 Residential 3,501 12 4,198 24 Real estate construction and land: Residential — — 743 4 Commercial: Cash flow 43,172 — 20,823 12 Asset-based 1,162 15 3,696 27 Venture capital 4,693 — — — Equipment finance — — 49,322 — Consumer 187 — 341 3 With No Related Allowance Recorded: Real estate mortgage: Commercial $ 92,753 $ 560 $ 54,132 $ 217 Residential 5,216 15 5,405 14 Real estate construction and land: Commercial 6,111 67 7,202 62 Residential 572 2 — — Commercial: Cash flow 2,821 5 2,683 1 Asset-based 2,279 25 1,181 15 Venture capital 2,429 — — — Equipment finance 30,388 — — — Consumer 127 2 797 — Total Non-PCI Loans and Leases With and Without an Allowance Recorded: Real estate mortgage $ 115,820 $ 793 $ 83,206 $ 498 Real estate construction and land 6,683 69 7,945 66 Commercial 86,944 45 77,705 55 Consumer 314 2 1,138 3 Total $ 209,761 $ 909 $ 169,994 $ 622 _________________________ (1) For Non-PCI loans and leases reported as impaired at March 31, 2017 and 2016 , amounts were calculated based on the period of time such loans and leases were impaired during the reported period. The following table presents new troubled debt restructurings of Non-PCI loans for the periods indicated: Three Months Ended March 31, 2017 2016 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 1 $ 64 $ — 4 $ 3,140 $ 3,140 Residential 2 42 42 1 165 165 Commercial: Cash flow 2 106 106 4 257 257 Asset-based 2 613 613 2 629 629 Venture capital 3 13,065 13,065 — — — Equipment finance — — — 2 2,660 2,660 Consumer 1 97 97 1 60 60 Total 11 $ 13,987 $ 13,923 14 $ 6,911 $ 6,911 The following table presents troubled debt restructurings that subsequently defaulted for the periods indicated: Three Months Ended March 31, 2017 2016 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 Consumer 1 28 — — Total 1 $ 28 (2) 1 $ 230 (3) _________________________ (1) The population of defaulted restructured loans for the period indicated includes only those loans restructured during the preceding 12-month period. For example, for the 12-month period ended March 31, 2017 , the population of defaulted restructured loans includes only those loans restructured after March 31, 2016 . 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, 2017 , and there were no charge-offs. (3) Represents the balance at March 31, 2016 , and there were no charge-offs. 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, 2017 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 $ 37,765 $ 10,045 $ 93,853 $ 2,092 $ 143,755 $ 13,483 $ 157,238 Charge-offs (1,544 ) — (19,285 ) (99 ) (20,928 ) (2,230 ) (23,158 ) Recoveries 230 8 2,448 53 2,739 — 2,739 Provision (negative provision) (1,083 ) 423 25,118 (198 ) 24,260 228 24,488 Balance, end of period $ 35,368 $ 10,476 $ 102,134 $ 1,848 $ 149,826 $ 11,481 $ 161,307 Ending Allowance by Impairment Methodology: Individually evaluated for impairment $ 1,070 $ — $ 12,267 $ 90 $ 13,427 Collectively evaluated for impairment $ 34,298 $ 10,476 $ 89,867 $ 1,758 $ 136,399 Acquired loans with deteriorated credit quality $ 11,481 Ending Loans and Leases by Impairment Methodology: Individually evaluated for impairment $ 118,275 $ 6,683 $ 103,221 $ 281 $ 228,460 Collectively evaluated for impairment 5,768,694 1,101,553 7,979,457 382,190 15,231,894 Acquired loans with deteriorated credit quality $ 96,335 Ending balance $ 5,886,969 $ 1,108,236 $ 8,082,678 $ 382,471 $ 15,460,354 $ 96,335 $ 15,556,689 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 Ending Allowance by Impairment Methodology: 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 Ending Loans and Leases by Impairment Methodology: 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 $ 5,630,297 $ 575,473 $ 7,990,569 $ 110,622 $ 14,306,961 $ 176,556 $ 14,483,517 |