Loans Receivable and Allowance for Loan Losses | LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES The following is a summary of loans by major category at December 31, 2015 and 2014 : December 31, 2015 December 31, 2014 (In thousands) Loan portfolio composition Real estate loans: Residential $ 33,797 $ 21,415 Commercial & industrial 4,912,655 4,324,349 Construction 123,030 94,086 Total real estate loans 5,069,482 4,439,850 Commercial business 980,153 903,621 Trade finance 99,163 134,762 Consumer and other 102,573 89,849 Total loans outstanding 6,251,371 5,568,082 Less: deferred loan fees (3,030 ) (2,890 ) Gross loans receivable 6,248,341 5,565,192 Less: allowance for loan losses (76,408 ) (67,758 ) Loans receivable, net $ 6,171,933 $ 5,497,434 Our loan portfolio is made up of four segments: real estate loans, commercial business, trade finance and consumer and other. These segments are further segregated between loans accounted for under the amortized cost method Legacy Loans and acquired loans that were originally recorded at fair value with no carryover of the related pre-acquisition allowance for loan losses Acquired Loans. The Acquired Loans are further segregated between ACILs and APLs. The following table presents changes in the accretable discount on the ACILs for the years ended December 31, 2015 and 2014 : Year ended December 31, 2015 2014 (In thousands) Balance at beginning of period $ 24,051 $ 47,398 Accretion (12,633 ) (16,222 ) Changes in expected cash flows 12,359 (7,125 ) Balance at end of period $ 23,777 $ 24,051 On the acquisition date, the amount by which the undiscounted expected cash flows exceed the estimated fair value of the ACILs is the “accretable yield”. The accretable yield is then measured at each financial reporting date and represents the difference between the remaining undiscounted expected cash flows and the current carrying value of the loans. The accretable yield will change from period to period due to the following: 1) estimates of the remaining life of acquired loans will affect the amount of future interest income, 2) indicies for variable rates of interest on ACILs may change; and 3) estimates of the amount of the contractual principal and interest that will not be collected (nonaccretable difference) may change. The following tables detail the activity in the allowance for loan losses by portfolio segment for the year ended December 31, 2015 and 2014 : Legacy Acquired Total Real Estate Commercial Business Trade Finance Consumer and Other Real Estate Commercial Business Trade Finance Consumer and Other (In thousands) December 31, 2015 Balance, beginning of period $ 38,775 $ 15,986 $ 3,456 $ 427 $ 8,573 $ 485 $ — $ 56 $ 67,758 Provision (credit) for loan losses 2,828 (577 ) 1,424 177 4,270 (117 ) — (5 ) 8,000 Loans charged off (558 ) (1,971 ) (1,288 ) (630 ) (183 ) (271 ) — (11 ) (4,912 ) Recoveries of charged offs 1,784 2,894 — 582 163 117 — 22 5,562 Balance, end of period $ 42,829 $ 16,332 $ 3,592 $ 556 $ 12,823 $ 214 $ — $ 62 $ 76,408 December 31, 2014 Balance, beginning of period $ 40,068 $ 16,796 $ 2,653 $ 461 $ 6,482 $ 796 $ — $ 64 $ 67,320 Provision (credit) for loan losses 428 4,656 4,737 (240 ) 2,133 856 — 68 12,638 Loans charged off (2,512 ) (9,500 ) (3,934 ) (21 ) (214 ) (1,499 ) — (79 ) (17,759 ) Recoveries of charged offs 791 4,034 — 227 172 332 — 3 5,559 Balance, end of period $ 38,775 $ 15,986 $ 3,456 $ 427 $ 8,573 $ 485 $ — $ 56 $ 67,758 The following tables disaggregate the allowance for loan losses and the carrying value of loans receivables by impairment methodology at December 31, 2015 and December 31, 2014 : December 31, 2015 Legacy Acquired Total Real Estate Commercial Business Trade Finance Consumer and Other Real Estate Commercial Business Trade Finance Consumer and Other (In thousands) Allowance for loan losses: Individually evaluated for impairment $ 1,663 $ 4,188 $ 2,603 $ — $ 225 $ 128 $ — $ — $ 8,807 Collectively evaluated for impairment 41,166 12,144 989 556 616 86 — 62 55,619 Loans acquired with credit deterioration — — — — 11,982 — — — 11,982 Total $ 42,829 $ 16,332 $ 3,592 $ 556 $ 12,823 $ 214 $ — $ 62 $ 76,408 Loans outstanding: Individually evaluated for impairment $ 63,376 $ 40,352 $ 12,548 $ 812 $ 19,109 $ 1,235 $ — $ 658 $ 138,090 Collectively evaluated for impairment 4,717,300 896,041 86,615 60,570 200,753 22,660 — 20,533 6,004,472 Loans acquired with credit deterioration — — — — 68,944 19,865 — 20,000 108,809 Total $ 4,780,676 $ 936,393 $ 99,163 $ 61,382 $ 288,806 $ 43,760 $ — $ 41,191 $ 6,251,371 December 31, 2014 Legacy Acquired Total Real Estate Commercial Business Trade Finance Consumer and Other Real Estate Commercial Business Trade Finance Consumer and Other (In thousands) Allowance for loan losses: Individually evaluated for impairment $ 1,940 $ 6,929 $ 1,312 $ — $ 434 $ 307 $ — $ — $ 10,922 Collectively evaluated for impairment 36,835 9,057 2,144 427 792 178 — 56 49,489 Loans acquired with credit deterioration — — — — 7,347 — — — 7,347 Total $ 38,775 $ 15,986 $ 3,456 $ 427 $ 8,573 $ 485 $ — $ 56 $ 67,758 Loans outstanding: Individually evaluated for impairment $ 57,506 $ 40,829 $ 5,936 $ 465 $ 20,035 $ 1,778 $ — $ 596 $ 127,145 Collectively evaluated for impairment 3,864,289 784,407 128,826 37,312 397,147 43,460 — 25,859 5,281,300 Loans acquired with credit deterioration — — — — 100,873 33,147 — 25,617 159,637 Total $ 3,921,795 $ 825,236 $ 134,762 $ 37,777 $ 518,055 $ 78,385 $ — $ 52,072 $ 5,568,082 As of December 31, 2015 and December 31, 2014 , the liability for unfunded commitments was $ 2.0 million and $ 1.6 million , respectively. For the year ended December 31, 2015 and 2014 , the recognized provision for credit losses related to unfunded commitments was $ 381 thousand and $ 688 thousand . The recorded investment in individually impaired loans was as follows: December 31, 2015 December 31, 2014 (In thousands) With Allocated Allowance Without charge-off $ 77,922 $ 67,352 With charge-off 155 6,582 With No Allocated Allowance Without charge-off 57,585 46,885 With charge-off 2,428 6,326 Allowance on Impaired Loans (8,807 ) (10,922 ) Impaired Loans, net of allowance $ 129,283 $ 116,223 The following tables detail impaired loans (Legacy and Acquired) by portfolio segment. Loans with no related allowance for loan losses are believed by management to have adequate collateral securing their carrying value. As of December 31, 2015 For the year ended December 31, 2015 Total Impaired Loans Recorded Investment* Unpaid Contractual Principal Balance Related Allowance Average Recorded Investment* Interest Income Recognized during Impairment (In thousands) With Related Allowance: Real Estate—Residential $ — $ — $ — $ — $ — Real Estate—Commercial Retail 1,871 1,984 230 3,388 — Hotel & Motel 4,697 4,707 158 10,512 230 Gas Station & Car Wash 1,569 1,625 47 1,542 59 Mixed Use 564 1,087 13 498 9 Industrial & Warehouse 563 563 — 3,686 25 Other 24,603 24,851 1,440 12,585 1,110 Real Estate—Construction — — — — — Commercial Business 31,527 31,832 4,316 31,790 998 Trade Finance 12,548 12,548 2,603 6,209 527 Consumer and Other 135 135 — 153 7 $ 78,077 $ 79,332 $ 8,807 $ 70,363 $ 2,965 With No Related Allowance Real Estate—Residential $ — $ — $ — $ — $ — Real Estate—Commercial Retail 11,305 12,051 — 10,779 464 Hotel & Motel 7,592 10,180 — 6,455 93 Gas Station & Car Wash 3,754 6,435 — 3,685 107 Mixed Use 2,382 2,604 — 2,375 51 Industrial & Warehouse 8,967 10,608 — 10,186 254 Other 13,250 14,234 — 9,355 362 Real Estate—Construction 1,369 1,470 — 1,153 — Commercial Business 10,059 12,063 — 8,722 345 Trade Finance — — — 986 — Consumer and Other 1,335 1,431 — 1,177 26 $ 60,013 $ 71,076 $ — $ 54,873 $ 1,702 Total $ 138,090 $ 150,408 $ 8,807 $ 125,236 $ 4,667 * Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts. As of December 31, 2015 For the year ended December 31, 2015 Impaired APLs (1) Recorded Investment* Unpaid Contractual Principal Balance Related Allowance Average Recorded Investment* Interest Income Recognized during Impairment (In thousands) With Related Allowance: Real Estate—Residential $ — $ — $ — $ — $ — Real Estate—Commercial Retail 1,171 1,173 197 1,835 — Hotel & Motel — — — — — Gas Station & Car Wash 1,017 1,062 6 1,246 59 Mixed Use 494 491 5 380 9 Industrial & Warehouse — — — 72 — Other 306 306 17 797 16 Real Estate—Construction — — — — — Commercial Business 566 645 128 671 15 Trade Finance — — — — — Consumer and Other — — — — — $ 3,554 $ 3,677 $ 353 $ 5,001 $ 99 With No Related Allowance Real Estate—Residential $ — $ — $ — $ — $ — Real Estate—Commercial Retail 2,642 2,756 — 2,301 105 Hotel & Motel 7,014 9,303 — 5,889 73 Gas Station & Car Wash 1,188 1,299 — 651 64 Mixed Use 273 282 — 210 13 Industrial & Warehouse 1,127 1,298 — 1,275 9 Other 3,876 4,615 — 4,162 53 Real Estate—Construction — — — — — Commercial Business 668 1,039 — 892 55 Trade Finance — — — — — Consumer and Other 658 748 — 629 7 $ 17,446 $ 21,340 $ — $ 16,009 $ 379 Total $ 21,000 $ 25,017 $ 353 $ 21,010 $ 478 * Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts. (1) APLs that became impaired subsequent to being acquired. As of December 31, 2014 For the year ended December 31, 2014 Total Impaired Loans Recorded Investment* Unpaid Contractual Principal Balance Related Allowance Average Recorded Investment* Interest Income Recognized during Impairment (In thousands) With Related Allowance: Real Estate—Residential $ — $ — $ — $ — $ — Real Estate—Commercial Retail 4,902 5,288 390 5,205 127 Hotel & Motel 13,401 14,548 469 12,053 532 Gas Station & Car Wash 1,904 3,507 379 2,440 60 Mixed Use 482 497 13 823 — Industrial & Warehouse 2,111 2,126 13 7,309 119 Other 9,781 10,389 1,110 9,709 355 Real Estate—Construction — — — — — Commercial Business 37,300 38,730 7,236 32,798 1,502 Trade Finance 4,053 11,310 1,312 6,647 — Consumer and Other — — — 114 — $ 73,934 $ 86,395 $ 10,922 $ 77,098 $ 2,695 With No Related Allowance Real Estate—Residential $ — $ — $ — $ — $ — Real Estate—Commercial Retail 11,708 13,492 — 8,462 358 Hotel & Motel 5,992 8,728 — 6,655 — Gas Station & Car Wash 2,693 4,065 — 4,139 44 Mixed Use 1,589 1,697 — 1,415 39 Industrial & Warehouse 14,374 17,940 — 9,311 494 Other 7,083 9,886 — 5,118 93 Real Estate—Construction 1,521 1,545 — 1,583 — Commercial Business 5,307 6,880 — 8,349 50 Trade Finance 1,883 5,000 — 724 — Consumer and Other 1,061 1,118 — 1,168 28 $ 53,211 $ 70,351 $ — $ 46,924 $ 1,106 Total $ 127,145 $ 156,746 $ 10,922 $ 124,022 $ 3,801 * Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts. As of December 31, 2014 For the year ended December 31, 2014 Impaired APLs (1) Recorded Investment* Unpaid Contractual Principal Balance Related Allowance Average Recorded Investment* Interest Income Recognized during Impairment (In thousands) With Related Allowance: Real Estate—Residential $ — $ — $ — $ — $ — Real Estate—Commercial Retail 1,653 1,638 36 838 97 Hotel & Motel — — — — — Gas Station & Car Wash 1,762 1,953 379 1,783 60 Mixed Use 352 348 2 212 — Industrial & Warehouse — — — 1,026 — Other 1,763 2,016 17 1,134 5 Real Estate—Construction — — — — — Commercial Business 769 928 307 1,090 15 Trade Finance — — — — — Consumer and Other — — — — — $ 6,299 $ 6,883 $ 741 $ 6,083 $ 177 With No Related Allowance Real Estate—Residential $ — $ — $ — $ — $ — Real Estate—Commercial Retail 3,158 3,376 — 1,869 27 Hotel & Motel 5,591 7,493 — 6,067 — Gas Station & Car Wash 9 297 — 621 — Mixed Use — — — 275 — Industrial & Warehouse 1,737 1,954 — 2,673 39 Other 4,009 5,174 — 3,798 41 Real Estate—Construction — — — — — Commercial Business 1,009 1,758 — 1,321 4 Trade Finance — — — — — Consumer and Other 596 652 — 772 8 $ 16,109 $ 20,704 $ — $ 17,396 $ 119 Total $ 22,408 $ 27,587 $ 741 $ 23,479 $ 296 * Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts. (1) APLs that became impaired subsequent to being acquired. For the year ended December 31, 2013 Total Impaired Loans Average Recorded Investment* Interest Income Recognized during Impairment (In thousands) With Related Allowance: Real Estate—Residential $ — $ — Real Estate—Commercial Retail 7,783 181 Hotel & Motel 11,432 550 Gas Station & Car Wash 2,090 117 Mixed Use 1,108 43 Industrial & Warehouse 9,496 323 Other 9,826 405 Real Estate—Construction — — Commercial Business 27,010 1,572 Trade Finance 5,313 41 Consumer and Other 348 23 $ 74,406 $ 3,255 With No Related Allowance Real Estate—Residential $ — $ — Real Estate—Commercial Retail 3,428 45 Hotel & Motel 6,304 — Gas Station & Car Wash 3,803 139 Mixed Use 697 — Industrial & Warehouse 3,958 10 Other 3,043 — Real Estate—Construction 1,670 89 Commercial Business 2,770 25 Trade Finance 18 — Consumer and Other 1,067 — $ 26,758 $ 308 Total $ 101,164 $ 3,563 * Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts. The following tables present the aging of past due loans as of December 31, 2015 and December 31, 2014 by class of loans: As of December 31, 2015 Past Due and Accruing 30-59 Days Past Due 60-89 Days Past Due 90 or More Days Past Due Total Nonaccrual Loans (2) Total Delinquent loans (In thousands) Legacy Loans Real estate—Residential $ — $ — $ — $ — $ — $ — Real estate—Commercial Retail 574 — — 574 2,383 2,957 Hotel & Motel 854 — — 854 318 1,172 Gas Station & Car Wash — 640 330 970 2,418 3,388 Mixed Use — — — — 1,407 1,407 Industrial & Warehouse — 110 — 110 2,275 2,385 Other — — — — 2,930 2,930 Real estate—Construction — — — — 1,369 1,369 Commercial business 905 770 — 1,675 13,393 15,068 Trade finance — — — — 1,731 1,731 Consumer and other 770 158 45 973 245 1,218 Subtotal $ 3,103 $ 1,678 $ 375 $ 5,156 $ 28,469 $ 33,625 Acquired Loans (1) Real estate—Residential $ — $ — $ — $ — $ — $ — Real estate—Commercial Retail 2,572 — — 2,572 2,113 4,685 Hotel & Motel — — — — 5,072 5,072 Gas Station & Car Wash — — — — — Mixed Use — — — — 415 415 Industrial & Warehouse — — — — 990 990 Other — — — — 2,684 2,684 Real estate—Construction — — — — — — Commercial business 310 39 — 349 476 825 Trade finance — — — — — — Consumer and other 287 — — 287 582 869 Subtotal $ 3,169 $ 39 $ — $ 3,208 $ 12,332 $ 15,540 TOTAL $ 6,272 $ 1,717 $ 375 $ 8,364 $ 40,801 $ 49,165 (1) The Acquired Loans exclude ACILs. (2) Nonaccrual loans exclude the guaranteed portion of delinquent SBA loans that are in liquidation totaling $18.7 million . As of December 31, 2014 Past Due and Accruing 30-59 Days Past Due 60-89 Days Past Due 90 or More Days Past Due Total Nonaccrual Loans (2) Total Delinquent loans (In thousands) Legacy Loans Real estate—Residential $ — $ — $ — $ — $ — $ — Real estate—Commercial Retail 201 351 — 552 4,586 5,138 Hotel & Motel 299 — — 299 2,336 2,635 Gas Station & Car Wash — — — — 2,105 2,105 Mixed Use 437 — — 437 930 1,367 Industrial & Warehouse — 208 — 208 2,335 2,543 Other 455 524 — 979 2,150 3,129 Real estate—Construction — — — — 1,521 1,521 Commercial business 655 729 — 1,384 9,640 11,024 Trade finance — — — — 3,194 3,194 Consumer and other 36 — — 36 18 54 Subtotal 2,083 1,812 — 3,895 28,815 32,710 Acquired Loans (1) Real estate—Residential $ — $ — $ — $ — $ — $ — Real estate—Commercial Retail 1,402 — — 1,402 2,792 4,194 Hotel & Motel — — — — 5,591 5,591 Gas Station & Car Wash — — — — 736 736 Mixed Use 345 — — 345 352 697 Industrial & Warehouse — — 361 361 1,185 1,546 Other — — — — 4,370 4,370 Real estate—Construction — — — — — — Commercial business 36 347 — 383 1,468 1,851 Trade finance — — — — — — Consumer and other 23 90 — 113 1,044 1,157 Subtotal $ 1,806 $ 437 $ 361 $ 2,604 $ 17,538 $ 20,142 TOTAL $ 3,889 $ 2,249 $ 361 $ 6,499 $ 46,353 $ 52,852 (1) The Acquired Loans exclude ACILs. (2) Nonaccrual loans exclude the guaranteed portion of delinquent SBA loans that are in liquidation totaling $28.9 million . Loans accounted for under ASC 310-30 are generally considered accruing and performing loans and the accretable discount is accreted to interest income over the estimate life of the loan when cash flows are reasonably estimable. Accordingly, ACILs that are contractually past due are still considered to be accruing and performing loans. The loans may be classified as nonaccrual if the timing and amount of future cash flows is not reasonably estimable. The following tables present the risk rating for Legacy Loans and Acquired Loans as of December 31, 2015 and December 31, 2014 by class of loans: As of December 31, 2015 Pass Special Mention Substandard Doubtful/Loss Total (In thousands) Legacy Loans: Real estate—Residential $ 32,543 $ 465 $ — $ — $ 33,008 Real estate—Commercial Retail 1,168,844 25,686 14,838 — 1,209,368 Hotel & Motel 1,009,493 789 5,937 — 1,016,219 Gas Station & Car Wash 610,749 6,192 3,758 — 620,699 Mixed Use 326,902 1,191 2,610 — 330,703 Industrial & Warehouse 461,938 10,099 11,966 — 484,003 Other 913,304 15,805 34,537 — 963,646 Real estate—Construction 121,661 — 1,369 — 123,030 Commercial business 875,988 21,886 38,505 13 936,392 Trade finance 82,797 3,818 12,548 — 99,163 Consumer and other 60,550 14 812 7 61,383 Subtotal $ 5,664,769 $ 85,945 $ 126,880 $ 20 $ 5,877,614 Acquired Loans: Real estate—Residential $ 508 $ 281 $ — $ — $ 789 Real estate—Commercial Retail 91,076 2,364 14,926 — 108,366 Hotel & Motel 21,306 4,339 13,835 — 39,480 Gas Station & Car Wash 22,231 356 6,548 — 29,135 Mixed Use 14,195 6,382 3,762 — 24,339 Industrial & Warehouse 31,606 1,361 4,708 378 38,053 Other 38,311 366 9,967 — 48,644 Real estate—Construction — — — — — Commercial business 27,414 1,149 14,835 363 43,761 Trade finance — — — — — Consumer and other 32,193 1,643 5,901 1,453 41,190 Subtotal $ 278,840 $ 18,241 $ 74,482 $ 2,194 $ 373,757 Total $ 5,943,609 $ 104,186 $ 201,362 $ 2,214 $ 6,251,371 As of December 31, 2014 Pass Special Mention Substandard Doubtful/Loss Total (In thousands) Legacy Loans: Real estate—Residential $ 20,586 $ — $ — $ — $ 20,586 Real estate—Commercial Retail 1,015,195 20,177 14,805 — 1,050,177 Hotel & Motel 784,586 114 7,746 — 792,446 Gas Station & Car Wash 553,901 — 8,857 — 562,758 Mixed Use 288,409 1,147 2,187 — 291,743 Industrial & Warehouse 347,805 9,181 12,313 — 369,299 Other 699,644 28,044 13,013 — 740,701 Real estate—Construction 92,564 — 1,521 — 94,085 Commercial business 765,280 18,792 41,138 26 825,236 Trade finance 103,844 18,599 12,319 — 134,762 Consumer and other 37,256 38 470 13 37,777 Subtotal $ 4,709,070 $ 96,092 $ 114,369 $ 39 $ 4,919,570 Acquired Loans: Real estate—Residential $ 539 $ 290 $ — $ — $ 829 Real estate—Commercial Retail 157,485 3,531 25,469 — 186,485 Hotel & Motel 69,236 3,889 9,241 — 82,366 Gas Station & Car Wash 27,936 369 8,542 268 37,115 Mixed Use 25,843 7,001 3,048 — 35,892 Industrial & Warehouse 66,214 667 14,177 — 81,058 Other 76,956 2,076 15,242 36 94,310 Real estate—Construction — — — — — Commercial business 48,270 6,331 22,721 1,063 78,385 Trade finance — — — — — Consumer and other 40,136 2,089 9,066 781 52,072 Subtotal $ 512,615 $ 26,243 $ 107,506 $ 2,148 $ 648,512 Total $ 5,221,685 $ 122,335 $ 221,875 $ 2,187 $ 5,568,082 The following table presents loans sold from loans held for investment or transferred from held for investment to held for sale during the year ended December 31, 2015 and 2014 by portfolio segment: Year ended December 31, 2015 2014 (In thousands) Sales or reclassification to held for sale Real estate - Commercial $ 619 $ 1,606 Real estate - Construction — — Commercial Business 66 388 Consumer 6,330 — Total $ 7,015 $ 1,994 The following table presents loans by portfolio segment and impairment method at December 31, 2015 and December 31, 2014 : As of December 31, 2015 Real estate - Residential Real estate - Commercial Real estate - Construction Commercial business Trade finance Consumer and other Total (Dollars in thousands) Impaired loans (Gross carrying value) $ — $ 81,117 $ 1,369 $ 41,586 $ 12,548 $ 1,470 $ 138,090 Specific allowance $ — $ 1,888 $ — $ 4,316 $ 2,603 $ — $ 8,807 Loss coverage ratio N/A 2.3 % 0.0 % 10.4 % 20.7 % 0.0 % 6.4 % Non-impaired loans $ 33,797 $ 4,831,538 $ 121,661 $ 938,567 $ 86,615 $ 101,103 $ 6,113,281 General allowance $ 230 $ 52,617 $ 917 $ 12,231 $ 989 $ 617 $ 67,601 Loss coverage ratio 0.7 % 1.1 % 0.8 % 1.3 % 1.1 % 0.6 % 1.1 % Total loans $ 33,797 $ 4,912,655 $ 123,030 $ 980,153 $ 99,163 $ 102,573 $ 6,251,371 Total allowance for loan losses $ 230 $ 54,505 $ 917 $ 16,547 $ 3,592 $ 617 $ 76,408 Loss coverage ratio 0.7 % 1.1 % 0.7 % 1.7 % 3.6 % 0.6 % 1.2 % As of December 31, 2014 Real estate - Residential Real estate - Commercial Real estate - Construction Commercial business Trade finance Consumer and other Total (Dollars in thousands) Impaired loans (Gross carrying value) $ — $ 76,020 $ 1,521 $ 42,607 $ 5,936 $ 1,061 $ 127,145 Specific allowance $ — $ 2,374 $ — $ 7,236 $ 1,312 $ — $ 10,922 Loss coverage ratio N/A 3.1 % 0.0 % 17.0 % 22.1 % 0.0 % 8.6 % Non-impaired loans $ 21,416 $ 4,248,329 $ 92,564 $ 861,014 $ 128,826 $ 88,788 $ 5,440,937 General allowance $ 146 $ 44,161 $ 667 $ 9,235 $ 2,144 $ 483 $ 56,836 Loss coverage ratio 0.7 % 1.0 % 0.7 % 1.1 % 1.7 % 0.5 % 1.0 % Total loans $ 21,416 $ 4,324,349 $ 94,085 $ 903,621 $ 134,762 $ 89,849 $ 5,568,082 Total allowance for loan losses $ 146 $ 46,535 $ 667 $ 16,471 $ 3,456 $ 483 $ 67,758 Loss coverage ratio 0.7 % 1.1 % 0.7 % 1.8 % 2.6 % 0.5 % 1.2 % Under certain circumstances, the Company provides borrowers relief through loan modifications. These modifications are either temporary in nature (“temporary modifications”) or are more substantive. At December 31, 2015 , total modified loans were $72.2 million , compared to $ 76.1 million at December 31, 2014 . The temporary modifications generally consist of interest only payments for a three to six month period, whereby principal payments are deferred. At the end of the modification period, the remaining principal balance is re-amortized based on the original maturity date. Loans subject to temporary modifications are generally downgraded to Substandard or Special Mention. At the end of the modification period, the loan either 1) returns to the original contractual terms; 2) is further modified and accounted for as a troubled debt restructuring in accordance with ASC 310-10-35; or 3) is disposed of through foreclosure or liquidation. Troubled Debt Restructurings (“TDRs”) of loans are defined by ASC 310-40, Troubled Debt Restructurings by Creditors , and ASC 470-60, Troubled Debt Restructurings by Debtors, and evaluated for impairment in accordance with ASC 310-10-35. The concessions may be granted in various forms, including reduction in the stated interest rate, reduction in the amount of principal amortization, forgiveness of a portion of a loan balance or accrued interest, or extension of the maturity date. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under our internal underwriting policy. A summary of TDRs on accrual and nonaccrual by type of concession as of December 31, 2015 , December 31, 2014 , and December 31, 2013 is presented below: As of December 31, 2015 TDRs on accrual TDRs on nonaccrual TOTAL Real estate - Commercial Commercial Business Other Total Real estate - Commercial Commercial Business Other Total (In thousands) Payment concession $ 11,604 $ 375 $ — $ 11,979 $ 3,891 $ 2,410 $ — $ 6,301 $ 18,280 Maturity / Amortization concession 4,009 18,192 5,311 27,512 1,583 6,818 2,297 10,698 38,210 Rate concession 7,215 1,278 — 8,493 6,445 641 166 7,252 15,745 Principal forgiveness — — — — — — — — — $ 22,828 $ 19,845 $ 5,311 $ 47,984 $ 11,919 $ 9,869 $ 2,463 $ 24,251 $ 72,235 As of December 31, 2014 TDRs on accrual TDRs on nonaccrual TOTAL Real estate - Commercial Commercial Business Other Total Real estate - Commercial Commercial Business Other Total (In thousands) Payment concession $ 12,235 $ 556 $ — $ 12,791 $ 3,840 $ 517 $ — $ 4,357 $ 17,148 Maturity / Amortization concession 2,189 20,053 3,387 25,629 1,207 3,158 1,550 5,915 31,544 Rate concession 13,684 5,024 — 18,708 8,473 80 176 8,729 27,437 Principal forgiveness — — — — — 15 — 15 15 $ 28,108 $ 25,633 $ 3,387 $ 57,128 $ 13,520 $ 3,770 $ 1,726 $ 19,016 $ 76,144 As of December 31, 2013 TDRs on accrual TDRs on nonaccrual TOTAL Real estate - Commercial Other Total Real estate - Commercial Other Total (In thousands) Payment concession $ 7,437 $ 1,057 $ — $ 8,494 $ 9,489 $ 1,279 $ 767 $ 11,535 $ 20,029 Maturity / Amortization concession 765 6,565 535 7,865 1,653 3,656 — 5,309 13,174 Rate concession 13,055 4,490 — 17,545 8,107 — — 8,107 25,652 Principal forgiveness — — — — — 49 — 49 49 $ 21,257 $ 12,112 $ 535 $ 33,904 $ 19,249 $ 4,984 $ 767 $ 25,000 $ 58,904 TDRs on accrual status are comprised of loans that were accruing at the time of restructuring and for which the Bank anticipates full repayment of both principal and interest under the restructured terms. TDRs that are on nonaccrual can be returned to accrual status after a period of sustained performance, generally determined to be six months of timely payments as modified. Sustained performance includes the periods prior to the modification if the prior performance met or exceeded the modified terms. TDRs on accrual status at December 31, 2015 were comprised of 24 commercial real estate loans totaling $22.8 million , 28 commercial business loans totaling $19.8 million and 4 consumer and other loans totaling $5.3 million . TDRs on accrual status at December 31, 2014 were comprised of 24 commercial real estate loans totaling $ 28.1 million , 30 commercial business loans totaling $ 25.6 million , and 3 consumer and other loans totaling $3.4 million . TDRs on accrual status at December 31, 2013 were comprised of 15 commercial real estate loans totaling $21.3 million , 28 commercial business loans totaling $12.1 million , and 2 consumer loans totaling $535 thousand . Management expects that the TDRs on accrual status as of December 31, 2015 , which were all performing in accordance with their restructured terms, will continue to comply with the restructured terms because of the reduced principal or interest payments on these loans. TDRs that were restructured at market interest rates and had sustained performance as agreed under the modified loan terms may be reclassified as non-TDRs after each year end but are still monitored for potential impairment. The Company has allocated $5.7 million , $5.7 million , and $6.6 million of specific reserves to TDRs as of December 31, 2015 , 2014 , and 2013 respectively. As of December 31, 2015 , 2014 , and 2013 the Company did not have any outstanding commitments to extend additional funds to these borrowers. The following table presents loans by class modified as TDRs that occurred during the years ended December 31, 2015 , 2014 , and 2013 : For the year ended For the year ended For the year ended December 31, 2015 December 31, 2014 December 31, 2013 Number of Loans Pre-Modifi-cation Post-Modifi-cation Number of Loans Pre-Modifi-cation Post-Modifi-cation Number of Loans Pre-Modifi-cation Post-Modifi-cation (Dollars in thousands) Legacy Loans: Real estate - Residential — $ — $ — — $ — $ — — $ — $ — Real estate - Commercial Retail 2 750 733 2 645 618 6 6,195 6,214 Hotel & Motel — — — — — — — — — Gas Station & Car Wash 2 383 351 — — — 1 1,371 880 Mixed Use 2 437 407 — — — — — — Industrial & Warehouse — — — 2 783 821 1 370 338 Other 2 1,762 1,700 2 327 350 — — — Real estate - Construction — — — — — — — — — Commercial business 18 9,171 13,234 19 18,143 17,219 15 8,687 7,552 Trade Finance 2 7,623 2,208 3 3,156 4,053 — — — Consumer and Other 1 248 237 — — — 2 970 490 Subtotal 29 $ 20,374 $ 18,870 28 $ 23,054 $ 23,061 25 $ 17,593 $ 15,474 Acquired Loans: Real estate - Residential — $ — $ — — $ — $ — — — — Real estate - Commercial Retail — — — 2 1,075 1,035 3 336 321 Hotel & Motel — — — — — — — — — Gas Station & Car Wash — — — 1 794 727 1 165 — Mixed Use 3 425 416 — — — — — — Industrial & Warehouse — — — 1 75 74 2 10,336 5,208 Other — — — 2 1,356 1,300 2 1,137 1,122 Real estate - Construction — — — — — — — — — Commercial business 1 56 13 6 426 142 8 1,182 441 Trade Finance — — — — — — — — — Consumer and Other 1 115 104 1 195 180 — — — Subtotal 5 $ 596 $ 533 13 $ 3,921 $ 3,458 16 $ 13,156 $ 7,092 Total 34 $ 20,970 $ 19,403 41 $ 26,975 $ 26,519 41 $ 30,749 $ 22,566 The specific reserves for the TDRs described above as of December 31, 2015 , 2014 , and 2013 were $ 2.9 million , $2.4 million , and $2.0 million , respectively, and the charge offs for the years ended December 31, 2015 , 2014 , 2013 and were $42 thousand , $3.3 million , and $2.6 million respectively. The following table presents loans by class for TDRs that have been modified within the previous twelve months and have subsequently had a payment default during the years ended December 31, 2015 , 2014 , and 2013 : December 31, 2015 December 31, 2014 December 31, 2013 Number of Loans Balance Number of Loans Balance Number of Balance (Dollars in thousands) Legacy Loans: Real estate - Commercial Retail — $ — — $ — 1 $ 508 Hotel & Motel — — — — — — Gas Station & Car Wash 1 121 — — — — Mixed Use 1 103 — — — — Industrial & Warehouse — — 1 21 — — Other 1 307 — — — — Commercial Business 4 2,091 2 14 5 540 Consumer and Other — — — — — — Subtotal 7 $ 2,622 3 $ 35 6 $ 1,048 Acquired Loans: Real estate - Commercial Retail — $ — 1 $ 121 1 $ 56 Hotel & Motel — — — — — — Mixed Use 1 63 — — — — Gas Station & Car Wash — — — — 1 — Industrial & Warehouse — — — — 1 5,128 Other — — — — — — Commercial Business — — 3 118 3 47 Consumer and Other 1 104 — — — — Subtotal 2 $ 167 4 $ 239 6 $ 5,231 9 $ 2,789 7 $ 274 12 $ 6,279 A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms. The specific reserves for the TDRs described above as of December 31, 2015 , 2014 , and 2013 were $ 303 thousand , $0 , and $661 thousand respectively, and the charge offs for the years ended December 31, 2015 , 2014 , and 2013 were $0 , $125 thousand , and $7.0 million respectively. The seven Legacy Loans that subsequently defaulted in 2015 were modified through payment concessions or maturity concessions. The payment concessions were comprised of one Real Estate loan totaling $121 thousand and four Commercial Business loans totaling $2.1 million . The maturity concessions were comprised of two Real Estate loans totaling $410 thousand . The two Acquired Loans that subsequently defaulted in 2015 were modified through payment concession, or maturity concession. The payment concession was comprised of one Real Estate loan totaling $63 thousand . There was one Consumer and other loan totaling $104 thousand modified through a maturity concession. The three Legacy Loans that subsequently defaulted in 2014 were modified through payment concessions and were comprised of one Real Estate loan totaling $21 thousand and two Commercial Business loans totaling $14 thousand . The four Acquired Loans that subsequently defaulted in 2014 were modified through payment concessions, maturity concessions or rate concessions. The payment concessions were comprised of two Commercial Business loans totaling $118 thousand . There was one Real Estate loan totaling $121 thousand modified through a rate concession, and there was one Commercial Business loan modified through a maturity concession that was fully charged off. The six Legacy Loans that subsequently defaulted in 2013 were modified through payment concession, maturity / amortization concession, or rate concession. The payment concessions were comprised of two Commercial Business loan totaling $540 thousand . The maturity / amortization concessions were comprised of two Commercial Business loans that were fully charged off during the year. The rate concessions were comprised of one Real Estate Commercial - Retail loan totaling $508 thousand , and one Commercial Business loan that was fully charged off during the year. The six Acquired Loans that subsequently defaulted in 2013 were modified through payment concessions and are comprised of: three Commercial Business loans totaling $47 thousand , one Real Estate Commercial - Industrial loan totaling $5.1 million , one Real Estate Commercial - Retail loan totaling $56 thousand , and one Real Estate Commercial - Gas Station & Car Wash loan that was fully charged off during the year. Covered Assets On April 16, 2010, the Department of Financial Institutions closed Innovative Bank, California a |