Loans | Loans The Board of Directors and management review and approve the Bank’s loan policy and procedures on a regular basis to reflect issues such as regulatory and organizational structure changes, strategic planning revisions, concentrations of credit, loan delinquencies and nonperforming loans, problem loans, and policy adjustments. Real estate loans are loans secured by liens or interest in real estate, to provide purchase, construction, and refinance on real estate properties. Commercial and industrial loans consist of commercial term loans, commercial lines of credit, and Small Business Administration (“SBA”) loans. Consumer loans consist of auto loans, credit cards, personal loans, and home equity lines of credit. We maintain management loan review and monitoring departments that review and monitor pass graded loans as well as problem loans to prevent further deterioration. Concentrations of Credit: The majority of the Bank’s loan portfolio consists of commercial real estate and commercial and industrial loans. The Bank has been diversifying and monitoring commercial real estate loans based on property types, tightening underwriting standards, and portfolio liquidity and management, and has not exceeded certain specified limits set forth in the Bank’s loan policy. Loans Receivable Loans receivable consisted of the following as of the dates indicated: December 31, 2015 December 31, 2014 Non-PCI Loans PCI Loans Total (In thousands) Real estate loans: Commercial property (1) Retail $ 735,501 $ 4,849 $ 740,350 $ 684,400 Hotel/motel 539,345 4,080 543,425 462,718 Gas station 319,363 4,292 323,655 370,416 Other (2) 973,243 5,418 978,661 848,906 Construction 23,387 — 23,387 9,527 Residential property 234,879 1,157 236,036 135,462 Total real estate loans 2,825,718 19,796 2,845,514 2,511,429 Commercial and industrial loans: Commercial term 152,602 171 152,773 116,536 Commercial lines of credit 128,224 — 128,224 93,970 International loans 31,879 — 31,879 38,974 Total commercial and industrial loans 312,705 171 312,876 249,480 Consumer loans (3) 24,879 47 24,926 27,589 Total gross loans 3,163,302 20,014 3,183,316 2,788,498 Allowance for loans losses (37,494 ) (5,441 ) (42,935 ) (52,666 ) Loans receivable, net $ 3,125,808 $ 14,573 $ 3,140,381 $ 2,735,832 (1) Includes owner-occupied property loans of $1.20 billion and $1.12 billion as of December 31, 2015 and 2014 , respectively. (2) Includes, among other property types, mixed-use, apartment, office, industrial, faith-based facilities and warehouse; the remaining real estate categories represents less than one percent of the Bank's total loans. (3) Consumer loans include home equity lines of credit Accrued interest on loans receivable was $7.9 million and $6.4 million at December 31, 2015 and 2014, respectively. At December 31, 2015 and 2014 , loans receivable totaling $557.7 million and $840.0 million , respectively, were pledged to secure advances from the FHLB and the FRB’s discount window. The following table details the information on the sales and reclassifications of loans receivable to loans held for sale (excluding PCI loans) by portfolio segment for the years ended December 31, 2015 and 2014 : Real Estate Commercial and Total (In thousands) December 31, 2015 Balance at beginning of period $ 3,323 $ 2,128 $ 5,451 Origination of loans held for sale 56,247 30,410 86,657 Reclassification from loans receivable to loans held for sale 360 — 360 Sales of loans held for sale (59,030 ) (30,441 ) (89,471 ) Principal payoffs and amortization (60 ) (63 ) (123 ) Balance at end of period $ 840 $ 2,034 $ 2,874 December 31, 2014 Balance at beginning of period $ — $ — $ — Origination of loans held for sale 38,379 9,606 47,985 Sales of loans held for sale (34,994 ) (7,418 ) (42,412 ) Principal payoffs and amortization (62 ) (60 ) (122 ) Balance at end of period $ 3,323 $ 2,128 $ 5,451 For the year ended December 31, 2015 , there was $360,000 reclassification of loans receivable as loans held for sale, and loans held for sale of $89.5 million were sold. For the year ended December 31, 2014 , there was no reclassification of loans receivable as loans held for sale, and loans held for sale of $42.4 million were sold. Allowance for Loan Losses and Allowance for Off-Balance Sheet Items Activity in the allowance for loan losses and allowance for off-balance sheet items was as follows for the periods indicated: As of and for the 2015 Non-PCI Loans PCI Loans Total 2014 2013 (In thousands) Allowance for loan losses: Balance at beginning of period $ 51,640 $ 1,026 $ 52,666 $ 57,555 $ 63,305 Charge-offs (3,531 ) — (3,531 ) (6,992 ) (11,862 ) Recoveries on loans previously charged off 5,423 — 5,423 8,361 5,536 Net loan recoveries (charge-offs) 1,892 — 1,892 1,369 (6,326 ) (Negative provision) provision charged to operating expense (16,038 ) 4,415 (11,623 ) (6,258 ) 576 Balance at end of period $ 37,494 $ 5,441 $ 42,935 $ 52,666 $ 57,555 Allowance for off-balance sheet items: Balance at beginning of period $ 1,366 $ — $ 1,366 $ 1,248 $ 1,824 Provision (negative provision) charged to operating expense (380 ) — $ (380 ) 118 (576 ) Balance at end of period $ 986 $ — $ 986 $ 1,366 $ 1,248 The allowance for off-balance sheet items is maintained at a level believed to be sufficient to absorb probable losses related to these unfunded credit facilities. The determination of the allowance adequacy is based on periodic evaluations of the unfunded credit facilities including an assessment of the probability of commitment usage, credit risk factors for loans outstanding to these same customers, and the terms and expiration dates of the unfunded credit facilities. As of December 31, 2015 and 2014 , the allowance for off-balance sheet items amounted $1.0 million and $1.4 million , respectively. Net adjustments to the allowance for off-balance sheet items are included in other operating expenses. The following table details the information on the allowance for loan losses by portfolio segment for the years ended December 31, 2015 and 2014 : Real Estate Commercial Consumer Unallocated Total (In thousands) December 31, 2015 Allowance for loan losses on Non-PCI loans: Beginning balance $ 41,194 $ 9,142 $ 220 $ 1,084 $ 51,640 Charge-offs (565 ) (2,966 ) — — (3,531 ) Recoveries on loans previously charged off 2,080 3,339 4 — 5,423 (Negative provision) provision (12,909 ) (2,434 ) 18 (713 ) (16,038 ) Ending balance $ 29,800 $ 7,081 $ 242 $ 371 $ 37,494 Ending balance: individually evaluated for impairment $ 3,858 $ 587 $ — $ — $ 4,445 Ending balance: collectively evaluated for impairment $ 25,942 $ 6,494 $ 242 $ 371 $ 33,049 Non-PCI loans receivable: Ending balance $ 2,825,718 $ 312,705 $ 24,879 $ — $ 3,163,302 Ending balance: individually evaluated for impairment $ 27,341 $ 6,853 $ 1,665 $ — $ 35,859 Ending balance: collectively evaluated for impairment $ 2,798,377 $ 305,852 $ 23,214 $ — $ 3,127,443 Allowance for loan losses on PCI loans: Beginning balance $ 895 $ 131 $ — $ — $ 1,026 Provision 4,502 (89 ) 2 — 4,415 Ending balance: acquired with deteriorated credit quality $ 5,397 $ 42 $ 2 $ — $ 5,441 PCI loans receivable: Ending balance: acquired with deteriorated credit quality $ 19,796 $ 171 $ 47 $ — $ 20,014 December 31, 2014 Allowance for loan losses on Non-PCI loans: Beginning balance $ 43,550 $ 11,287 $ 1,427 $ 1,291 $ 57,555 Charge-offs (3,009 ) (3,881 ) (102 ) — (6,992 ) Recoveries on loans previously charged off 4,348 3,801 212 — 8,361 Provision (negative provision) (3,695 ) (2,065 ) (1,317 ) (207 ) (7,284 ) Ending balance $ 41,194 $ 9,142 $ 220 $ 1,084 $ 51,640 Ending balance: individually evaluated for impairment $ 2,517 $ 2,729 $ — $ — $ 5,246 Ending balance: collectively evaluated for impairment $ 38,677 $ 6,413 $ 220 $ 1,084 $ 46,394 Non-PCI loans receivable: Ending balance $ 2,464,386 $ 248,862 $ 27,512 $ — $ 2,740,760 Ending balance: individually evaluated for impairment $ 32,497 $ 11,626 $ 1,742 $ — $ 45,865 Ending balance: collectively evaluated for impairment $ 2,431,889 $ 237,236 $ 25,770 $ — $ 2,694,895 Loan Quality Indicators As part of the on-going monitoring of the quality of our loan portfolio, we utilize an internal loan grading system to identify credit risk and assign an appropriate grade (from 0 to (8)) for each and every loan in our loan portfolio. A third-party loan review is required on an annual basis. Additional adjustments are made when determined to be necessary. The loan grade definitions are as follows: Pass and Pass-Watch: Pass and Pass-Watch loans, grades (0-4), are in compliance with the Bank’s credit policy and regulatory requirements, and do not exhibit any potential or defined weaknesses as defined under “Special Mention,” “Substandard” or “Doubtful.” This category is the strongest level of the Bank’s loan grading system. It consists of all performing loans with no identified credit weaknesses. It includes cash and stock/security secured loans or other investment grade loans. Special Mention: A Special Mention loan, grade (5), has potential weaknesses that deserve management’s close attention. If not corrected, these potential weaknesses may result in deterioration of the repayment of the debt and result in a Substandard classification. Loans that have significant actual, not potential, weaknesses are considered more severely classified. Substandard: A Substandard loan , grade (6), has a well-defined weakness that jeopardizes the liquidation of the debt. A loan graded Substandard is not protected by the sound worth and paying capacity of the borrower, or of the value and type of collateral pledged. With a Substandard loan, there is a distinct possibility that the Bank will sustain some loss if the weaknesses or deficiencies are not corrected. Doubtful: A Doubtful loan, grade (7), is one that has critical weaknesses that would make the collection or liquidation of the full amount due improbable. However, there may be pending events which may work to strengthen the loan, and therefore the amount or timing of a possible loss cannot be determined at the current time. Loss: A loan classified as Loss, grade (8), is considered uncollectible and of such little value that their continuance as active bank assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this asset even though partial recovery may be possible in the future. Loans classified as Loss will be charged off in a timely manner. As of December 31, 2015 and 2014 , pass/pass-watch, special mention and classified (substandard and doubtful) loans (excluding PCI loans), disaggregated by loan class, were as follows: Pass/Pass-Watch Special Mention Classified Total (In thousands) December 31, 2015 Real estate loans: Commercial property Retail $ 722,483 $ 9,519 $ 3,499 $ 735,501 Hotel/motel 517,462 9,604 12,279 539,345 Gas station 309,598 5,897 3,868 319,363 Other 953,839 8,662 10,742 973,243 Construction 23,387 — — 23,387 Residential property 232,862 58 1,959 234,879 Commercial and industrial loans: Commercial term 145,773 2,370 4,459 152,602 Commercial lines of credit 127,579 195 450 128,224 International loans 29,719 2,160 — 31,879 Consumer loans 22,707 91 2,081 24,879 Total Non-PCI loans $ 3,085,409 $ 38,556 $ 39,337 $ 3,163,302 December 31, 2014 Real estate loans: Commercial property Retail $ 654,360 $ 18,013 $ 2,699 $ 675,072 Hotel/motel 397,437 46,365 10,697 454,499 Gas station 345,775 8,899 7,566 362,240 Other 822,037 9,543 10,546 842,126 Construction 9,517 — — 9,517 Residential property 118,688 66 2,178 120,932 Commercial and industrial loans: Commercial term 106,326 1,225 8,522 116,073 Commercial lines of credit 92,312 993 555 93,860 International loans 36,121 252 2,556 38,929 Consumer loans 25,313 131 2,068 27,512 Total Non-PCI loans $ 2,607,886 $ 85,487 $ 47,387 $ 2,740,760 The following is an aging analysis of gross loans (excluding PCI loans), disaggregated by loan class, as of the dates indicated: 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Current Total Accruing 90 Days or More Past Due (In thousands) December 31, 2015 Real estate loans: Commercial property Retail $ 441 $ 343 $ 399 $ 1,183 $ 734,318 $ 735,501 $ — Hotel/motel 1,250 49 3,840 5,139 534,206 539,345 — Gas station 959 406 1,517 2,882 316,481 319,363 — Other 1,144 661 1,636 3,441 969,802 973,243 — Construction — — — — 23,387 23,387 — Residential property — — 396 396 234,483 234,879 — Commercial and industrial loans: Commercial term 420 253 458 1,131 151,471 152,602 — Commercial lines of credit 58 — 392 450 127,774 128,224 — International loans — 497 — 497 31,382 31,879 — Consumer loans 250 5 — 255 24,624 24,879 — Total Non-PCI loans $ 4,522 $ 2,214 $ 8,638 $ 15,374 $ 3,147,928 $ 3,163,302 $ — December 31, 2014 Real estate loans: Commercial property Retail $ 1,554 $ 281 $ 1,920 $ 3,755 $ 671,317 $ 675,072 $ — Hotel/motel 1,531 2,340 433 4,304 450,195 454,499 — Gas station 2,991 1,113 353 4,457 357,783 362,240 — Other 1,674 2,156 1,142 4,972 837,154 842,126 — Construction — — — — 9,517 9,517 — Residential property 167 — 687 854 120,078 120,932 — Commercial and industrial loans: Commercial term 1,107 490 2,847 4,444 111,629 116,073 — Commercial lines of credit — — 227 227 93,633 93,860 — International loans 200 — — 200 38,729 38,929 — Consumer loans 489 349 248 1,086 26,426 27,512 — Total Non-PCI loans $ 9,713 $ 6,729 $ 7,857 $ 24,299 $ 2,716,461 $ 2,740,760 $ — Impaired Loans Loans are considered impaired when nonaccrual and principal or interest payments have been contractually past due for 90 days or more, unless the loan is both well-collateralized and in the process of collection; or they are classified as TDR loans to offer terms not typically granted by the Bank; or when current information or events make it unlikely to collect in full according to the contractual terms of the loan agreements; or there is a deterioration in the borrower’s financial condition that raises uncertainty as to timely collection of either principal or interest; or full payment of both interest and principal is in doubt according to the original contractual terms. We evaluate loan impairment in accordance with applicable GAAP. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, as a practical expedient, at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent, less costs to sell. If the measure of the impaired loan is less than the recorded investment in the loan, the deficiency will be charged off against the allowance for loan losses or, alternatively, a specific allocation will be established. Additionally, loans that are considered impaired are specifically excluded from the quarterly migration analysis when determining the amount of the allowance for loan losses required for the period. The allowance for collateral-dependent loans is determined by calculating the difference between the outstanding loan balance and the value of the collateral as determined by recent appraisals. The allowance for collateral-dependent loans varies from loan to loan based on the collateral coverage of the loan at the time of designation as nonperforming. We continue to monitor the collateral coverage, using recent appraisals, on these loans on a quarterly basis and adjust the allowance accordingly. The following table provides information on impaired loans (excluding PCI loans), disaggregated by loan class, as of the dates indicated: Recorded Unpaid Principal With No With an Related Average Interest (In thousands) As of or for The Year Ended December 31, 2015 Real estate loans: Commercial property Retail $ 2,597 $ 2,892 $ 2,435 $ 162 $ 27 $ 3,878 $ 277 Hotel/motel 7,168 7,538 2,873 4,295 3,068 6,628 572 Gas station 5,393 5,815 4,400 993 112 7,116 436 Other 9,288 10,810 7,219 2,069 647 10,218 795 Residential property 2,895 3,081 2,608 287 4 2,839 120 Commercial and industrial loans: Commercial term 5,257 5,621 1,858 3,399 457 6,637 368 Commercial lines of credit 381 493 280 101 100 1,515 42 International loans 1,215 1,215 647 568 30 1,257 — Consumer loans 1,665 1,898 1,665 — — 1,753 73 Total Non-PCI loans $ 35,859 $ 39,363 $ 23,985 $ 11,874 $ 4,445 $ 41,841 $ 2,683 As of or for The Year Ended December 31, 2014 Real estate loans: Commercial property Retail $ 4,436 $ 4,546 $ 1,938 $ 2,498 $ 220 $ 5,373 $ 251 Hotel/motel 5,835 6,426 4,581 1,254 1,828 4,583 398 Gas station 8,974 9,594 8,526 448 150 11,281 787 Other 10,125 11,591 8,890 1,235 319 10,579 885 Residential property 3,127 3,268 3,127 — — 2,924 115 Commercial and industrial loans: Commercial term 7,614 8,133 2,999 4,615 2,443 9,458 566 Commercial lines of credit 466 575 466 — — 1,205 66 International loans 3,546 3,546 2,628 918 286 1,736 33 Consumer loans 1,742 1,907 1,742 — — 1,651 59 Total Non-PCI loans $ 45,865 $ 49,586 $ 34,897 $ 10,968 $ 5,246 $ 48,790 $ 3,160 As of or for The Year Ended December 31, 2013 Real estate loans: Commercial property Retail $ 6,244 $ 6,332 $ 3,767 $ 2,477 $ 305 $ 4,342 $ 166 Hotel/motel 6,200 6,940 4,668 1,532 1,183 5,125 530 Gas station 9,389 9,884 8,592 797 209 8,939 756 Other 11,451 12,882 9,555 1,896 351 10,014 1,047 Residential property 2,678 2,773 2,678 — — 2,941 117 Commercial and industrial loans: Commercial term 13,834 14,308 2,929 10,905 3,806 13,083 968 Commercial lines of credit 614 686 173 441 252 1,008 54 International loans 1,087 1,087 286 801 78 1,284 — Consumer loans 1,569 1,671 644 925 284 1,612 71 Total Non-PCI loans $ 53,066 $ 56,563 $ 33,292 $ 19,774 $ 6,468 $ 48,348 $ 3,709 The following is a summary of interest foregone on impaired loans (excluding PCI loans) for the periods indicated: Year Ended December 31, 2015 2014 2013 (In thousands) Interest income that would have been recognized had impaired loans performed in accordance with their original terms $ 4,168 $ 4,468 $ 4,451 Less: Interest income recognized on impaired loans (2,683 ) (3,160 ) (3,708 ) Interest foregone on impaired loans $ 1,485 $ 1,308 $ 743 There were no commitments to lend additional funds to borrowers whose loans are included above. Nonaccrual Loans Loans are placed on nonaccrual status when, in the opinion of management, the full timely collection of principal or interest is in doubt. Generally, the accrual of interest is discontinued when principal or interest payments become more than 90 days past due, unless management believes the loan is adequately collateralized and in the process of collection. However, in certain instances, we may place a particular loan on nonaccrual status earlier, depending upon the individual circumstances surrounding the loan’s delinquency. When a loan is placed on nonaccrual status, previously accrued but unpaid interest is reversed against current income. Subsequent collections of cash are applied as principal reductions when received, except when the ultimate collectability of principal is probable, in which case interest payments are credited to income. Nonaccrual loans may be restored to accrual status when principal and interest payments become current and full repayment is expected. The following table details nonaccrual loans (excluding PCI loans), disaggregated by loan class, as of the dates indicated: As of December 31, 2015 2014 (In thousands) Real estate loans: Commercial property Retail $ 946 $ 2,160 Hotel/motel 5,790 3,835 Gas station 2,774 3,478 Other 4,068 4,961 Residential property 1,386 1,588 Commercial and industrial loans: Commercial term 2,193 7,052 Commercial lines of credit 450 466 Consumer loans 1,511 1,742 Total nonaccrual Non-PCI loans $ 19,118 $ 25,282 The following table details nonperforming assets (excluding PCI loans) as of the dates indicated: As of December 31, 2015 2014 (In thousands) Nonaccrual Non-PCI loans $ 19,118 $ 25,282 Loans 90 days or more past due and still accruing — — Total nonperforming Non-PCI loans 19,118 25,282 Other real estate owned 8,511 15,790 Total nonperforming assets $ 27,629 $ 41,072 As of December 31, 2015 , OREO consisted of fourteen properties with a combined carrying value of $8.5 million , including a $7.4 million OREO acquired in the CBI acquisition or were obtained as a result of PCI loan collateral foreclosures subsequent to the acquisition date. As of December 31, 2014 , OREO consisted of twenty-seven properties with a combined carrying value of $15.8 million , including a $15.3 million OREO acquired in the CBI acquisition or were obtained as a result of PCI loan collateral foreclosures subsequent to the acquisition date. Troubled Debt Restructuring In April 2011, the FASB issued ASU 2011-2, “ A Creditor’s Determination of Whether a Restructuring is a Troubled Debt Restructuring ,” which clarifies the guidance for evaluating whether a restructuring constitutes a TDR. This guidance is effective for the first interim or annual period beginning on or after June 15, 2011, and should be applied retrospectively to the beginning of the annual period of adoption. For the purposes of measuring impairment of loans that are newly considered impaired, the guidance should be applied prospectively for the first interim or annual period beginning on or after June 15, 2011. As a result of the amendments in ASU 2011-2, we reassessed all restructurings that occurred on or after the beginning of the annual period and identified certain receivables as TDRs. Upon identifying those receivables as TDRs, we considered them impaired and applied the impairment measurement guidance prospectively for those receivables newly identified as impaired. The following table details TDRs (excluding PCI loans), disaggregated by concession type and by loan type, as of December 31, 2015 , 2014 and 2013 : Nonaccrual TDRs Accrual TDRs Deferral of Deferral of Reduction of Extension of Total Deferral of Deferral of Reduction of Extension of Total (In thousands) December 31, 2015 Real estate loans: Commercial property Retail $ — $ — $ — $ 344 $ 344 $ — $ — $ 1,227 $ — $ 1,227 Hotel/motel 1,216 28 — — 1,244 414 — — — 414 Gas station 959 — — — 959 — — — — — Other — 1,301 216 8 1,525 3,537 — 322 1,378 5,237 Residential property 689 — — — 689 — — — 299 299 Commercial and industrial loans: Commercial term 45 — 997 679 1,721 40 214 1,673 945 2,872 Commercial lines of credit 222 — — 58 280 — — — — — International loans — — — — — — — — — — Consumer loans — — 116 — 116 250 — — — 250 Total Non-PCI loans $ 3,131 $ 1,329 $ 1,329 $ 1,089 $ 6,878 $ 4,241 $ 214 $ 3,222 $ 2,622 $ 10,299 December 31, 2014 Real estate loans: Commercial property Retail $ — $ — $ — $ 2,032 $ 2,032 $ 306 $ — $ — $ — $ 306 Hotel/motel 1,115 (53 ) — — 1,062 1,807 — — — 1,807 Gas station 1,075 — — — 1,075 2,335 — — — 2,335 Other 943 1,498 433 24 2,898 2,343 — 782 1,372 4,497 Residential property 742 — — — 742 — — — 308 308 Commercial and industrial loans: Commercial term 14 (1 ) 2,556 1,481 4,050 57 226 567 1,358 2,208 Commercial lines of credit 227 — 126 113 466 2,156 — — — 2,156 International loans — — — — — — — 200 — 200 Consumer loans — — 131 — 131 — — — — — Total Non-PCI loans $ 4,116 $ 1,444 $ 3,246 $ 3,650 $ 12,456 $ 9,004 $ 226 $ 1,549 $ 3,038 $ 13,817 December 31, 2013 Real estate loans: Commercial property Retail $ — $ — $ — $ 750 $ 750 $ — $ — $ — $ 474 $ 474 Hotel/motel 1,272 758 — — 2,030 1,000 — — — 1,000 Gas station 1,291 — 729 — 2,020 365 — — 2,609 2,974 Other 403 1,279 555 — 2,237 2,956 — 1,253 2,027 6,236 Residential property 795 — — — 795 — — — — — Commercial and industrial loans: Commercial term 25 206 1,449 851 2,531 1,203 — 2,286 3,817 7,306 Commercial lines of credit — — — 173 173 — — 191 — 191 International loans — — — — — — — 1,087 — 1,087 Consumer loans — — — — — — — 149 — 149 Total Non-PCI loans $ 3,786 $ 2,243 $ 2,733 $ 1,774 $ 10,536 $ 5,524 $ — $ 4,966 $ 8,927 $ 19,417 As of December 31, 2015 , 2014 and 2013 , total TDRs, excluding loans held for sale, were $17.2 million , $26.3 million and $30.0 million , respectively. A debt restructuring is considered a TDR if we grant a concession that we would not have otherwise considered to the borrower, for economic or legal reasons related to the borrower’s financial difficulties. Loans are considered to be TDRs if they were restructured through payment structure modifications such as reducing the amount of principal and interest due monthly and/or allowing for interest only monthly payments for six months or less. All TDRs are impaired and are individually evaluated for specific impairment using one of these three criteria: (1)the present value of expected future cash flows discounted at the loan’s effective interest rate; (2)the loan’s observable market price; or (3)the fair value of the collateral if the loan is collateral dependent. At December 31, 2015 , 2014 and 2013 , TDRs, excluding loans held for sale, were subjected to specific impairment analysis, and we determined impairment reserves of $1.0 million , $2.9 million and $2.8 million , respectively, related to these loans which were included in the allowance for loan losses. The following table details TDRs (excluding PCI loans), disaggregated by loan class, for the years ended December 31, 2015 , 2014 and 2013 : December 31, 2015 December 31, 2014 December 31, 2013 Number of Pre- Post- Number of Pre- Post- Number of Pre- Post- (In thousands, except number of loans) Real estate loans: Commercial property Retail (1) 1 $ 1,230 $ 1,227 2 $ 2,205 $ 2,032 — $ — $ — Hotel/motel (2) — — — 1 832 821 1 1,000 1,000 Gas station (3) — — — 1 2,040 1,979 3 903 819 Other (4) 2 725 724 3 1,422 1,352 4 1,853 1,796 Residential property (5) — — — 1 317 308 — — — Commercial and industrial loans: Commercial term (6) 10 973 801 5 721 629 20 4,068 3,534 Commercial lines of credit (7) — — — 3 2,366 2,509 2 220 191 International loans (8) — — — 1 480 200 2 1,584 1,087 Consumer loans (9) 1 250 250 — — — 1 149 149 Total Non-PCI loans 14 $ 3,178 $ 3,002 17 $ 10,383 $ 9,830 33 $ 9,777 $ 8,576 (1) Includes a modification of $1.2 million through a reduction of principal or accrued interest payment for the year ended December 31, 2015 and a modification of $2.0 million through payment deferrals for the year ended December 31, 2014 . (2) Includes a modification of $821,000 through a payment deferral for the year ended December 31, 2014 and a modification of $1.0 million through payment deferral for the year ended December 31, 2013 . (3) Includes a modification of $2.0 million through a payment deferral for the year ended December 31, 2014 and modifications of $90,000 through payment deferral and $729,000 through reductions of principal or accrued interest for the year ended December 31, 2013 . (4) Includes a modification of $725,000 through payment deferrals for the year ended December 31, 2015 and modifications of $943,000 through a payment deferral, $385,000 through a reduction of principal or accrued interest and $24,000 through an extension of maturity for the year ended December 31, 2014 , modifications of $365,000 through a payment deferral, $785,000 through a reduction of principal or accrued interest and $645,000 through an extension of maturity for the year ended December 31, 2013 . (5) Includes a modification of $308,000 through an extension of maturity for the year ended December 31, 2014 . (6) Includes modifications of $34,000 through payment deferral, $60,000 through reductions of principal or accrued interest and $707,000 through extensions of maturity for the year ended December 31, 2015 , modifications of $184,000 through reductions of principal or accrued interest and $445,000 through extensions of maturity for the year ended December 31, 2014 , modifications of $386,000 through payment deferrals, $733,000 through a reduction of principal or accrued interest and $2.5 million through extensions of maturity for the year ended December 31, 2013 . (7) Includes modifications of $2.4 million through payment deferrals and $126,000 through a reduction of principal or accrued interest for the year ended December 31, 2014 , and a modification o f $191,000 through a reduction of principal or accrued interest for the year ended December 31, 2013 . (8) Includes a modification of $200,000 through a reduction of principal or accrued interest for the year ended December 31, 2014 , and a modification of $1.1 million through a reduction of principal or accrued interest for the year ended December 31, 2013 . (9) Includes a modification of $250,000 through a payment deferral for the year ended December 31, 2015 and a modification of $149,000 through a reduction of principal or accrued interest for the year ended December 31, 2013 . During the year ended December 31, 2015 , we restructured monthly payments on 14 loans, with a net carrying value of $3.0 million as of December 31, 2015 , through temporary payment structure modifications or re-amortization. For the restructured loans on accrual status, we determined that, based on the financial capabilities of the borrowers at the time of the loan restructuring and the borrowers’ past performance in the payment of debt service under the previous loan terms, performance and collection under the revised terms are probable. The following table details TDRs (excluding PCI loans) that defaulted subsequent to the modifications occurring within the previous twelve months, disaggregated by loan class, for years ended December 31, 2015 , 2014 and 2013 , respectively: For the Year Ended December 31, 2015 December 31, 2014 December 31, 2013 Number of Recorded Number of Recorded Number of Recorded (In thousands, except number of loans) Real estate loans: Commercial property Retail — $ — 1 $ 1,856 — $ — Gas station — — — — 1 90 Other 1 412 3 1,352 1 125 Commercial and industrial loans: Commercial term 1 178 — — 2 123 Commercial lines of credit — — 2 353 — — Total Non-PCI loans 2 $ 590 6 $ 3,561 4 $ 338 Purchased Credit Impaired Loans As part of the acquisition of CBI, the Company purchased loans for which there was, at acquisition, evidence of deterioration of credit quality subsequent to origination and it was probable, at acquisition, that all contractually required payments would not be collected. The following table summarizes the changes in carrying value of PCI loans during the year ended December 31, 2015 : For the Year Ended December 31, 2015 For the Year Ended December 31, 2014 Carrying Amount Accretable Yield Carrying Accretable (In thousands) (In thousands) Beginning Balance $ 43,475 $ (11,025 ) $ — $ — Additions from CBI acquisition at August 31, 2014 — — 65,346 (10,856 ) Accretion 2,956 2,956 1,448 1,448 Payments received (31,215 ) — (17,803 ) — Disposal/transfers to OREO 3,772 — (4,490 ) — Change in expected cash flows, net — 2,125 — (1,617 ) Provision for credit losses (4,415 ) — (1,026 ) — Ending Balance $ 14,573 $ (5,944 ) $ 43,475 $ (11,025 ) As of December 31, 2015 and 2014, pass/pass-watch, special mention and classified (substandard and doubtful) PCI loans, disaggregated by loan class, were as follows: December 31, 2015 Pass/Pass-Watch Special Mention Classified Total Allowance Total (In thousands) Real estate loans: Commercial property Retail $ — $ — $ 4,849 $ 4,849 $ 269 $ 4,580 Hotel/motel 186 — 3,894 $ 4,080 88 3,992 Gas station — 176 4,116 $ 4,292 477 3,815 Other — — 5,418 $ 5,418 4,412 1,006 Residential property 999 — 158 $ 1,157 151 1,006 Commercial and industrial loans: Commercial term — — 171 $ 171 42 129 Consumer loans — — 47 $ 47 2 45 Total PCI loans $ 1,185 $ 176 $ 18,653 $ 20,014 $ 5,441 $ 14,573 December 31, 2014 Pass/Pass-Watch Special Mention Classified Total Allowance Amount Total PCI Loans (In thousands) Real estate loans: Commercial property Retail $ 1,207 $ 219 $ 7,109 $ 8,535 $ 401 $ 8,134 Hotel/motel — — 7,682 $ 7,682 99 7,583 Gas station — 1,242 6,503 $ 7,745 302 7,443 Other — — 5,796 $ 5,796 65 5,731 Residential property — — 14,371 $ 14,371 28 14,343 Commercial and industrial loans: $ — Commercial term — — 327 $ 327 131 196 Consumer loans — — 45 $ 45 — 45 Total PCI loans $ 1,207 $ 1,461 $ 41,833 $ 44,501 $ 1,026 $ 43,475 Loans accounted for as PCI are generally considered accruing and performing loans as the accretable discount is accreted to interest income over the estimated life of the loan when cash flows are reasonably estimable. Accordingly, PCI loans that are contractually past due are still considered to be accruing and performing loans. If the timing and amount of future cash flows is not reasonably estimable, the loans are classified as nonaccrual loans and interest income is not recognized until the timing and amount of future cas |