Loans | Loans Loans consist of the following at (in thousands): September 30, December 31, Commercial loans $ 4,385,812 $ 3,616,286 Commercial loans collateralized by assignment of lease payments 1,873,380 1,779,072 Commercial real estate 3,794,801 2,695,676 Residential real estate 998,827 628,169 Construction real estate 451,023 252,060 Indirect vehicle 522,271 384,095 Home equity 275,288 216,573 Other consumer loans 77,956 80,661 Total loans, excluding purchased credit-impaired loans 12,379,358 9,652,592 Purchased credit-impaired loans 161,338 141,406 Total loans $ 12,540,696 $ 9,793,998 Loans are made to individuals as well as commercial and tax exempt entities. Specific loan terms vary as to interest rate, repayment, and collateral requirements based on the type of loan requested and the credit worthiness of the prospective borrower. Except for commercial loans collateralized by assignment of lease payments, asset-based loans, residential real estate loans and indirect vehicle loans, credit risk tends to be geographically concentrated in that a majority of the loan customers are located in the markets serviced by MB Financial Bank. The Company's extension of credit is governed by its Credit Risk Policy, which was established to control the quality of the Company's loans. This policy is reviewed and approved by the Enterprise Risk Committee of the Company's Board of Directors on an annual basis. Commercial Loans. Commercial credit is extended primarily to emerging middle market and middle market customers. Such credits are typically comprised of working capital loans, loans for physical asset expansion, asset acquisition loans and other business loans. Loans to closely held businesses will generally be guaranteed in full or for a significant amount by the businesses' principal owners. Commercial loans are made based primarily on the historical and projected cash flow of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not behave as forecasted and collateral securing loans may fluctuate in value due to economic or individual performance factors. Minimum standards and underwriting guidelines have been established for all commercial loan types. Asset-based loans, also included in commercial loans, are made to businesses with the primary source of repayment derived from payments on the related assets securing the loan. Collateral for these loans may include accounts receivable, inventory and equipment, and is monitored regularly to ensure ongoing sufficiency of collateral coverage and quality. The primary risk for these loans is a significant decline in collateral values due to general market conditions. Loan terms that mitigate these risks include typical industry amortization schedules, percentage of collateral advances, maintenance of cash collateral accounts and regular asset monitoring. Because of the national scope of our asset-based lending, the risk of these loans is also diversified by geography. Commercial Loans Collateralized by Assignment of Lease Payments ("Lease Loans"). The Company makes lease loans to lessors where the underlying leases are with both investment grade and non-investment grade companies. Investment grade lessees are companies rated in one of the four highest categories by Moody's Investor Services or Standard & Poor's Rating Services or, in the event the related lessee has not received any such rating, where the related lessee would be viewed under the underwriting policies of the Company as an investment grade company. Whether or not companies fall into this category, each lease loan is considered on its individual merit based on the financial wherewithal of the lessee using financial information available at the time of underwriting. Commercial Real Estate Loans. Commercial real estate loans are subject to underwriting standards and processes similar to commercial loans. These loans are viewed primarily as cash flow loans and the repayment of these loans is largely dependent on the successful operation of the property. Loan performance may be adversely affected by factors impacting the general economy or conditions specific to the real estate market such as geographic location and/or property type. Construction Real Estate Loans. The Company defines construction loans as loans where the loan proceeds are controlled by the Company and used exclusively for the improvement of real estate in which the Company holds a mortgage. Due to the inherent risk in this type of loan, they are subject to other industry specific policy guidelines outlined in the Company's Credit Risk Policy. Consumer Related Loans. The Company originates direct and indirect consumer loans, including primarily residential real estate, home equity lines and loans, credit cards, and indirect vehicle loans (motorcycle, marine, recreational and powersports vehicles). Each loan type is underwritten based upon several factors including debt to income, type of collateral and loan to collateral value, credit history and the Company's relationship with the borrower. Indirect loan and credit card underwriting involves the use of risk-based pricing in the underwriting process. Purchased credit-impaired loans. Purchased credit-impaired loans are loans accounted for under ASC 310-30, which include purchased credit-impaired loans acquired through a business combination, FDIC-assisted transactions and re-purchase transactions with the Government National Mortgage Association ("GNMA"). The loans re-purchased from GNMA were originally sold by the Company with servicing retained and subsequently became delinquent. These loans are also insured by the Federal Housing Administration (commonly referred to as "FHA") or the U.S. Department of Veterans Affairs (commonly referred to as "VA") where the Company would be able to recover the principal balance of these loans. All re-purchases from GNMA are at the Company's discretion. A collateral pledge agreement exists whereby at all times, the Company must keep on hand, free of all other pledges, liens, and encumbrances, first mortgage loans and home equity loans with unpaid principal balances aggregating no less than 133% for first mortgage loans and 250% for home equity loans of the outstanding advances from the Federal Home Loan Bank. As of September 30, 2016 and December 31, 2015 , the Company had $4.9 billion and $3.2 billion , respectively, of loans pledged as collateral for long-term Federal Home Loan Bank advances and third party letters of credit, while only $3.1 billion and $2.2 billion were required to be pledged at September 30, 2016 and December 31, 2015 , respectively. The following table presents the contractual aging of the recorded investment in past due loans by class of loans as of September 30, 2016 and December 31, 2015 (in thousands): Current 30-59 Days 60-89 Days Loans Past Due Total Total September 30, 2016 Commercial $ 4,376,819 $ 2,649 $ 104 $ 6,240 $ 8,993 $ 4,385,812 Commercial collateralized by assignment of lease payments 1,855,322 12,141 4,672 1,245 18,058 1,873,380 Commercial real estate: Healthcare 572,228 — — — — 572,228 Industrial 854,045 298 1,289 — 1,587 855,632 Multifamily 549,486 141 366 113 620 550,106 Retail 522,696 333 235 453 1,021 523,717 Office 416,965 1,336 49 — 1,385 418,350 Other 871,881 1,646 532 709 2,887 874,768 Residential real estate 986,386 2,347 1,739 8,355 12,441 998,827 Construction real estate 451,023 — — — — 451,023 Indirect vehicle 518,881 2,301 716 373 3,390 522,271 Home equity 270,028 1,475 490 3,295 5,260 275,288 Other consumer 77,570 166 129 91 386 77,956 Total loans, excluding purchased credit-impaired loans 12,323,330 24,833 10,321 20,874 56,028 12,379,358 Purchased credit-impaired loans 92,346 1,108 5,848 62,036 68,992 161,338 Total loans $ 12,415,676 $ 25,941 $ 16,169 $ 82,910 $ 125,020 $ 12,540,696 Non-performing loan aging $ 31,009 $ 373 $ 1,801 $ 20,726 $ 22,900 $ 53,909 December 31, 2015 Commercial $ 3,586,372 $ 22,956 $ 97 $ 6,861 $ 29,914 $ 3,616,286 Commercial collateralized by assignment of lease payments 1,758,839 3,399 5,902 10,932 20,233 1,779,072 Commercial real estate: Healthcare 476,939 — — — — 476,939 Industrial 400,182 — — 757 757 400,939 Multifamily 399,333 622 88 934 1,644 400,977 Retail 410,958 6,189 7,411 180 13,780 424,738 Office 223,935 58 — 5,189 5,247 229,182 Other 760,530 622 82 1,667 2,371 762,901 Residential real estate 612,573 5,193 1,729 8,674 15,596 628,169 Construction real estate 252,060 — — — — 252,060 Indirect vehicle 380,899 2,085 698 413 3,196 384,095 Home equity 207,818 1,774 1,398 5,583 8,755 216,573 Other consumer 80,225 254 84 98 436 80,661 Total loans, excluding purchased credit-impaired loans 9,550,663 43,152 17,489 41,288 101,929 9,652,592 Purchased credit-impaired loans 81,250 3,311 4,439 52,406 60,156 141,406 Total loans $ 9,631,913 $ 46,463 $ 21,928 $ 93,694 $ 162,085 $ 9,793,998 Non-performing loan aging $ 44,290 $ 9,827 $ 9,367 $ 41,177 $ 60,371 $ 104,661 The following table presents the recorded investment in non-accrual loans and loans past due ninety days or more and still accruing by class of loans, excluding purchased credit-impaired loans, as of September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 December 31, 2015 Loans past due Loans past due Non-accrual 90 days or more and still accruing Non-accrual 90 days or more and still accruing Commercial $ 8,583 $ 1,166 $ 24,689 $ 42 Commercial collateralized by assignment of lease payments 4,996 153 7,027 5,318 Commercial real estate: Healthcare — — — — Industrial 278 — 1,136 — Multifamily 2,648 — 3,415 — Office 447 — 4,496 693 Retail 607 — 17,594 — Other 531 144 1,544 195 Residential real estate 16,781 220 17,951 253 Construction real estate — — — — Indirect vehicle 1,955 — 2,046 — Home equity 15,300 — 18,156 — Other consumer 9 91 11 95 Total $ 52,135 $ 1,774 $ 98,065 $ 6,596 The Company utilizes an internal asset classification system as a means of reporting problem and potential problem loans. Under the Company's risk rating system, the Company classifies potential problem and problem loans as “Special Mention,” “Substandard,” and “Doubtful.” Substandard loans include those characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Loans classified as Doubtful have all the weaknesses inherent in those classified as Substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Loans that do not currently expose the Company to sufficient risk to warrant classification in one of the aforementioned categories but possess weaknesses that deserve management's close attention are deemed to be Special Mention. Risk ratings are updated any time the situation warrants and at least annually. Loans listed as not rated are included in groups of homogeneous loans with similar risk and loss characteristics. The following tables present the risk category of loans by class of loans based on the most recent analysis performed, excluding purchased credit-impaired loans, as of September 30, 2016 and December 31, 2015 (in thousands): Pass Special Substandard Doubtful Total September 30, 2016 Commercial $ 4,163,243 $ 131,163 $ 91,406 $ — $ 4,385,812 Commercial collateralized by assignment of lease payments 1,859,012 5,504 8,864 — 1,873,380 Commercial real estate: Healthcare 555,166 17,062 — — 572,228 Industrial 831,090 23,751 791 — 855,632 Multifamily 546,183 312 3,611 — 550,106 Retail 514,299 8,646 772 — 523,717 Office 409,124 5,086 4,140 — 418,350 Other 828,578 26,085 20,105 — 874,768 Construction real estate 451,023 — — — 451,023 Total $ 10,157,718 $ 217,609 $ 129,689 $ — $ 10,505,016 December 31, 2015 Commercial $ 3,373,943 $ 115,548 $ 126,795 $ — $ 3,616,286 Commercial collateralized by assignment of lease payments 1,760,674 4,367 14,031 — 1,779,072 Commercial real estate: Healthcare 472,599 4,340 — — 476,939 Industrial 380,200 19,011 1,728 — 400,939 Multifamily 396,117 595 4,265 — 400,977 Retail 393,543 13,310 17,885 — 424,738 Office 216,584 3,797 8,801 — 229,182 Other 730,713 6,193 25,995 — 762,901 Construction real estate 252,060 — — — 252,060 Total $ 7,976,433 $ 167,161 $ 199,500 $ — $ 8,343,094 Approximately $18.1 million and $59.6 million of the substandard loans were non-performing as of September 30, 2016 and December 31, 2015 , respectively. For residential real estate, home equity, indirect vehicle and other consumer loan classes, which are not rated, the Company evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in those loan classes based on payment activity, excluding purchased credit-impaired loans, as of September 30, 2016 and December 31, 2015 (in thousands): Performing Non-performing Total September 30, 2016 Residential real estate $ 981,826 $ 17,001 $ 998,827 Indirect vehicle 520,316 1,955 522,271 Home equity 259,988 15,300 275,288 Other consumer 77,856 100 77,956 Total $ 1,839,986 $ 34,356 $ 1,874,342 December 31, 2015 Residential real estate $ 609,965 $ 18,204 $ 628,169 Indirect vehicle 382,049 2,046 384,095 Home equity 198,417 18,156 216,573 Other consumer 80,555 106 80,661 Total $ 1,270,986 $ 38,512 $ 1,309,498 The recorded investment in residential mortgage loans secured by residential real estate properties for which foreclosure proceedings are in process totaled $23.6 million and $20.8 million at September 30, 2016 and December 31, 2015 , respectively. The following tables present loans individually evaluated for impairment by class of loans, excluding purchased credit-impaired loans, as of September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 Three Months Ended Nine Months Ended Unpaid Recorded Partial Allowance for Average Interest Average Interest With no related allowance recorded: Commercial $ 1,808 $ 1,808 $ — $ — $ 1,871 $ — $ 2,377 $ — Commercial collateralized by assignment of lease payments 1,161 794 367 — 1,141 27 1,026 27 Commercial real estate: Healthcare — — — — — — — — Industrial — — — — — — 536 — Multifamily 1,981 1,981 — — 2,334 — 2,362 — Retail 2,683 943 1,740 — 949 — 2,577 — Office — — — — — — 342 — Other — — — — — — 80 — Residential real estate — — — — — — — — Construction real estate — — — — — — — — Indirect vehicle 218 125 93 — 277 — 292 — Home equity — — — — — — 192 — Other consumer — — — — — — — — With an allowance recorded: Commercial 17,476 17,476 — 5,401 19,180 — 26,513 — Commercial collateralized by assignment of lease payments 7,260 7,260 — 3,933 5,086 — 3,201 18 Commercial real estate: Healthcare — — — — — — — — Industrial — — — — — — — — Multifamily — — — — — — — — Retail 3,606 3,606 — 363 3,612 — 7,911 — Office — — — — — — 995 — Other — — — — — — 314 — Residential real estate 15,117 13,268 1,849 2,394 13,325 — 13,068 — Construction real estate — — — — — — — — Indirect vehicle — — — — — — — — Home equity 29,688 27,276 2,412 3,252 27,443 — 28,635 — Other consumer — — — — — — — — Total $ 80,998 $ 74,537 $ 6,461 $ 15,343 $ 75,218 $ 27 $ 90,421 $ 45 December 31, 2015 Year Ended Unpaid Recorded Partial Allowance for Average Interest With no related allowance recorded: Commercial $ 11,253 $ 11,253 $ — $ — $ 6,628 $ — Commercial collateralized by assignment of lease payments 3,453 2,949 504 — 1,035 54 Commercial real estate: Healthcare — — — — — — Industrial 820 757 63 — 3,467 — Multifamily 575 575 — — 1,540 17 Retail 7,872 6,131 1,741 — 2,768 — Office 1,608 1,031 577 — 1,663 — Other — — — — 965 — Residential real estate 970 970 — — 717 — Construction real estate — — — — — — Indirect vehicle — — — — — — Home equity 927 927 — — 1,000 — Other consumer — — — — — — With an allowance recorded: Commercial 23,394 23,394 — 7,523 18,820 — Commercial collateralized by assignment of lease payments 3,297 3,297 — 1,790 4,013 104 Commercial real estate: Healthcare — — — — — — Industrial — — — — 228 — Multifamily 2,155 2,155 — 17 3,307 27 Retail 16,034 16,034 — 4,926 8,885 — Office 2,929 2,929 — 1,717 2,457 — Other 592 592 — 199 9,629 — Residential real estate 12,950 12,769 181 2,634 13,484 — Construction real estate — — — — 214 — Indirect vehicle 119 119 — — 287 — Home equity 28,696 28,583 113 3,131 27,747 — Other consumer — — — — — — Total $ 117,644 $ 114,465 $ 3,179 $ 21,937 $ 108,854 $ 202 Impaired loans included accruing restructured loans of $28.6 million and $27.0 million that have been modified and are performing in accordance with those modified terms as of September 30, 2016 and December 31, 2015 , respectively. In addition, impaired loans included $23.4 million and $23.6 million of non-performing restructured loans as of September 30, 2016 and December 31, 2015 , respectively. Loans may be restructured in an effort to maximize collections from financially distressed borrowers. We use various restructuring techniques, including, but not limited to, deferring past due interest or principal, implementing an A/B note structure, redeeming past due taxes, reducing interest rates, extending maturities and modifying amortization schedules. Residential real estate loans are restructured in an effort to minimize losses while allowing borrowers to remain in their primary residences when possible. Programs that we offer to residential real estate borrowers include the Home Affordable Refinance Program (“HARP”), a restructuring program similar to the Home Affordable Modification Program (“HAMP”) for first mortgage borrowers, the Second Lien Modification Program (“2MP”) and similar programs for home equity borrowers in keeping with the restructuring techniques discussed above. Periodically, the Company will restructure a note into two separate notes (A/B structure), charging off the entire B portion of the note. The A note is structured with appropriate loan-to-value and cash flow coverage ratios that provide for a high likelihood of repayment. The A note is classified as a non-performing note until the borrower has displayed a historical payment performance for a reasonable time prior to and subsequent to the restructuring. A period of sustained repayment for at least six months generally is required to return the note to accrual status provided that management has determined that the performance is reasonably expected to continue. The A note will be classified as a restructured note (either performing or non-performing) through the calendar year of the restructuring that the historical payment performance has been established. As of September 30, 2016 and December 31, 2015 , there was one A/B structure with a recorded investment of $943 thousand and $1.0 million , respectively, which is included above as an accruing restructured loan. A loan classified as a troubled debt restructuring will no longer be included in the troubled debt restructuring disclosures in the years after the restructuring if the loan performs in accordance with the terms specified by the restructuring agreement and the interest rate specified in the restructuring agreement represents a market rate at the time of modification. The specified interest rate is considered a market rate when the interest rate is equal to or greater than the rate the Company is willing to accept at the time of restructuring for a new loan with comparable risk. If there are concerns that the borrower will not be able to meet the modified terms of the loan, the loan will continue to be included in the troubled debt restructuring disclosures. Impairment analyses on commercial-related loans classified as troubled debt restructurings are performed in conjunction with the normal allowance for loan and lease losses process. Consumer loans classified as troubled debt restructurings are aggregated in two pools that share common risk characteristics, home equity and residential real estate loans, with impairment measured on a quarterly basis based on the present value of expected future cash flows discounted at the loan's effective interest rate. The following table presents loans that were restructured during the three months ended September 30, 2016 (dollars in thousands): September 30, 2016 Number of Pre-Modification Recorded Post-Modification Recorded Charge-offs and Performing: Residential real estate 2 $ 101 $ 101 $ 18 Home equity 2 102 102 12 Total 4 $ 203 $ 203 $ 30 Non-Performing: Commercial 3 $ 5,874 $ 5,874 $ 1,490 Residential real estate 4 484 484 85 Indirect vehicle 7 34 34 17 Home equity 5 489 489 72 Total 19 $ 6,881 $ 6,881 $ 1,664 The following table presents loans that were restructured during the nine months ended September 30, 2016 (dollars in thousands): September 30, 2016 Number of Pre-Modification Recorded Post-Modification Recorded Charge-offs and Performing: Commercial 1 $ 1,870 $ 1,870 $ 412 Residential real estate 2 101 101 18 Home equity 4 511 511 12 Total 7 $ 2,482 $ 2,482 $ 442 Non-Performing: Commercial 7 $ 14,481 $ 14,481 $ 4,990 Residential real estate 6 639 639 85 Indirect vehicle 25 183 183 60 Home equity 28 3,600 3,600 138 Total 66 $ 18,903 $ 18,903 $ 5,273 The following table presents loans that were restructured during the three months ended September 30, 2015 (dollars in thousands): September 30, 2015 Number of Pre-Modification Recorded Post-Modification Recorded Charge-offs and Performing: Home equity 4 $ 477 $ 477 $ — Total 4 $ 477 $ 477 $ — Non-Performing: Indirect vehicle 7 $ 45 $ 45 $ 16 Home equity 4 550 550 8 Total 11 $ 595 $ 595 $ 24 The following table presents loans that were restructured during the nine months ended September 30, 2015 (dollars in thousands): September 30, 2015 Number of Pre-Modification Recorded Post-Modification Recorded Charge-offs and Performing: Commercial 1 $ 80 $ 80 $ — Home equity 16 4,290 4,290 — Total 17 $ 4,370 $ 4,370 $ — Non-Performing: Commercial real estate: Multifamily 1 $ 334 $ 334 $ — Residential real estate 1 140 140 17 Indirect vehicle 13 75 75 23 Home equity 9 1,348 1,348 130 Total 24 $ 1,897 $ 1,897 $ 170 Of the troubled debt restructurings entered into during the past twelve months, $224 thousand subsequently defaulted during the nine months ended September 30, 2016 . Performing troubled debt restructurings are considered to have defaulted when they become 90 days or more past due post-restructuring or are placed on non-accrual status. The following table presents the troubled debt restructurings activity during the nine months ended September 30, 2016 (in thousands): Performing Non-performing Beginning balance $ 26,991 $ 23,619 Additions 2,482 18,903 Charge-offs — (1,046 ) Principal payments, net (2,145 ) (8,695 ) Removals (1,655 ) (6,384 ) Transfer to other real estate owned — (112 ) Transfers in 3,677 789 Transfers out (789 ) (3,677 ) Ending balance $ 28,561 $ 23,397 Loans removed from troubled debt restructuring status are those that were restructured in a previous calendar year at a market rate of interest and have performed in compliance with the modified terms. The following table presents the type of modification for loans that have been restructured during the nine months ended September 30, 2016 (in thousands): September 30, 2016 Extended Maturity, Delay in Amortization Extended Payments or and Reduction Maturity and/or Reduction of of Interest Rate Amortization Interest Rate Total Commercial $ — $ 14,481 $ 1,870 $ 16,351 Commercial collateralized by assignment of lease payments — — — — Commercial real estate: Healthcare — — — — Industrial — — — — Multifamily — — — — Retail — — — — Office — — — — Other — — — — Residential real estate 484 256 — 740 Construction real estate — — — — Indirect vehicle — — 183 183 Home equity 3,220 820 71 4,111 Other consumer — — — — Total $ 3,704 $ 15,557 $ 2,124 $ 21,385 The following table presents the activity in the allowance for credit losses, balance in allowance for credit losses and recorded investment in loans by portfolio segment and based on impairment method as of September 30, 2016 and 2015 (in thousands): Commercial Commercial collateralized by assignment of lease payments Commercial real estate Residential real estate Construction real estate Indirect vehicle Home equity Other consumer Unfunded commitments Total September 30, 2016 Allowance for credit losses: Three Months Ended Beginning balance $ 50,297 $ 10,549 $ 46,040 $ 4,800 $ 14,230 $ 3,100 $ 4,199 $ 2,399 $ 2,719 $ 138,333 Charge-offs 1,341 367 529 290 7 838 376 409 — 4,157 Recoveries 665 3 324 45 50 436 65 86 — 1,674 Provision (3,894 ) 2,944 1,239 1,575 2,033 598 2,309 (407 ) 152 6,549 Ending balance $ 45,727 $ 13,129 $ 47,074 $ 6,130 $ 16,306 $ 3,296 $ 6,197 $ 1,669 $ 2,871 $ 142,399 Nine Months Ended Beginning balance $ 39,316 $ 10,434 $ 45,475 $ 5,734 $ 15,113 $ 2,418 $ 7,374 $ 2,276 $ 3,368 $ 131,508 Charge-offs 2,126 3,288 2,601 1,134 151 2,420 1,233 1,216 — 14,169 Recoveries 1,997 520 2,761 151 94 1,400 576 620 — 8,119 Provision 6,540 5,463 1,439 1,379 1,250 1,898 (520 ) (11 ) (497 ) 16,941 Ending balance $ 45,727 $ 13,129 $ 47,074 $ 6,130 $ 16,306 $ 3,296 $ 6,197 $ 1,669 $ 2,871 $ 142,399 Ending allowance balance attributable to loans: Individually evaluated for impairment $ 5,401 $ 3,933 $ 363 $ 2,394 $ — $ — $ 3,252 $ — $ 737 $ 16,080 Collectively evaluated for impairment 40,161 9,196 46,235 3,736 16,249 3,296 2,945 1,669 2,134 125,621 Acquired and accounted for under ASC 310-30 (1) 165 — 476 — 57 — — — — 698 Total ending allowance balance $ 45,727 $ 13,129 $ 47,074 $ 6,130 $ 16,306 $ 3,296 $ 6,197 $ 1,669 $ 2,871 $ 142,399 Loans: Individually evaluated for impairment $ 19,284 $ 8,054 $ 6,530 $ 13,268 $ — $ 125 $ 27,276 $ — $ — $ 74,537 Collectively evaluated for impairment 4,366,528 1,865,326 3,788,271 985,559 451,023 522,146 248,012 77,956 — 12,304,821 Acquired and accounted for under ASC 310-30 (1) 22,913 — 41,286 66,698 14,131 — 13,886 2,424 — 161,338 Total ending loans balance $ 4,408,725 $ 1,873,380 $ 3,836,087 $ 1,065,525 $ 465,154 $ 522,271 $ 289,174 $ 80,380 $ — $ 12,540,696 Commercial Commercial collateralized by assignment of lease payments Commercial real estate Residential real estate Construction real estate Indirect vehicle Home equity Other consumer Unfunded commitments Total September 30, 2015 Allowance for credit losses: Three Months Ended Beginning balance $ 39,142 $ 11,268 $ 38,076 $ 6,669 $ 12,459 $ 1,909 $ 8,412 $ 2,135 $ 4,060 $ 124,130 Charge-offs 1,657 1,980 170 292 5 581 358 467 — 5,510 Recoveries 456 11 2,402 337 216 334 186 118 — 4,060 Provision 5,044 985 1,216 (868 ) 123 512 (1,490 ) 484 (648 ) 5,358 Ending balance $ 42,985 $ 10,284 $ 41,524 $ 5,846 $ 12,793 $ 2,174 $ 6,750 $ 2,270 $ 3,412 $ 128,038 Nine Months Ended Beginning balance $ 29,571 $ 9,962 $ 41,826 $ 6,646 $ 8,918 $ 1,687 $ 9,456 $ 1,960 $ 4,031 $ 114,057 Charge-offs 2,283 2,080 2,312 1,189 11 2,082 1,078 1,391 — 12,426 Recoveries 1,514 1,100 6,338 417 253 1,354 447 356 — 11,779 Provision 14,183 1,302 (4,328 ) (28 ) 3,633 1,215 (2,075 ) 1,345 (619 ) 14,628 Ending balance $ 42,985 $ 10,284 $ 41,524 $ 5,846 $ 12,793 $ 2,174 $ 6,750 $ 2,270 $ 3,412 $ 128,038 Ending allowance balance attributable to loans: Individually evaluated for impairment $ 7,943 $ 2,618 $ 3,123 $ 2,834 $ — $ 8 $ 2,478 $ — $ 1,388 $ 20,392 Collectively evaluated for impairment 34,731 7,666 36,975 3,012 12,700 2,166 4,272 2,270 2,024 105,816 Acquired and accounted for under ASC 310-30 (1) 311 — 1,426 — 93 — — — — 1,830 Total ending allowance balance $ 42,985 $ 10,284 $ 41,524 $ 5,846 $ 12,793 $ 2,174 $ 6,750 $ 2,270 $ 3,412 $ 128,038 Loans: Individually evaluated for impairment $ 36,325 $ 6,724 $ 29,354 $ 14,233 $ — $ 131 $ 29,520 $ — $ — $ 116,287 Collectively evaluated for impairment 3,404,307 1,686,816 2,550,655 592,938 255,620 345,600 193,653 87,612 — 9,117,201 Acquired and accounted for under ASC 310-30 (1) 37,189 — 47,803 43,735 12,372 — 11,986 2,608 — 155,693 Total ending loans balance $ 3,477,821 $ 1,693,540 $ 2,627,812 $ 650,906 $ 267,992 $ 345,731 $ 235,159 $ 90,220 $ — $ 9,389,181 (1) Loans acquired in business combinations and accounted for under ASC Subtopic 310-30 “Receivables — Loans and Debt Securities Acquired with Deteriorated Credit Quality.” Purchased loans acquired in a business combination are recorded at estimated fair value on their purchase date without a carryover of the related allowance for loan and lease losses. These acquired loans are segregated into three types: pass rated loans with no discount attributable to credit quality, non-impaired loans with a discount attributable at least in part to credit quality and impaired loans with evidence of significant credit deterioration. • Pass rated loans (typically performing loans) are accounted for in accordance with ASC 310-20 "Nonrefundable Fees and Other Costs" as these loans do not have evidence of credit deterioration since origination. • Non-impaired loans (typically performing substandard loans) are accounted for in accordance with ASC 310-30 if they display at least some level of credit deterioration since origination. • Impaired loans (typically substandard loans on non-accrual status) are accounted for in accordance with ASC 310-30 as they display significant credit deterioration since origination. For pass rated loans (non-purchased credit-impaired loans), the difference between the estimated fair value of the loans and the principal outstanding is accreted over the remaining life of the loans. In accordance with ASC 310-30, for both purchased non-impaired loans and purchased credit-impaired loans, the loans are pooled by loan type and the difference between contractually required payments at acquisition and the cash flows expected to be collected is referred to as the non-accretable difference. Further, any excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized into interest income over the remaining life of the loan pools when there is a reasonable expectation about the amount and timing of such cash flows. Substantially all of the loans acquired in transactions with the FDIC displayed at least some level of credit deterioration and as such are included as non-impaired and impaired loans as described immediately above. During the nine months ended September 30, 2016 , there was a negative provision for credit losses of $515 thousand and net charge-offs of $864 thousand in relation to purchased loans. There was $698 thousand and $2.1 million in allowance for loan and lease losses related to these purchased loans at September 30, 2016 and December 31, 2015 , respectively. The provision for credit losses and accompanying charge-offs are included in the table above. Changes in the accretable yield for loans acquired and accounted for under ASC 310-30 were as follows for the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Balance at beginning of period $ 13,160 $ 11,456 $ 12,596 $ 7,434 Purchases 805 — 805 — Accretion (2,564 ) (1,794 ) (7,193 ) (5,541 ) Other (1) 2,523 590 7,716 8,359 Balance at end of period $ 13,924 $ 10,252 $ 13,924 $ 10,252 (1) Primarily includes discount transfers from non-accretable discount to accretable discount due to better than expected performance of loan pools acquired and accounted for under ASC 310-30. In our FDIC-assisted transactions, the fair value of purchased credit-impaired loans, on the acquisition date, was determined based on assigned risk ratings, expected cash flows and the fair value of loan collateral. The fair value of loans that were non-impaired was determined based on estimates of losses on defaults and other market factors. Due to the loss-share agreements with the FDIC, we recorded a receivable (FDIC indemnification asset) from the FDIC equal to the present value of the corresponding reimbursement percentages on the estimated losses embedded in the loan portfolio. When cash flow estimates are adjusted downward for a particular loan pool, the FDIC indemnification asset is increased. An allowance for loan and lease losses is established for the impairment of the loans. A provision for credit losses is recognized for the difference between the increase in the FDIC indemnification asset and the decrease in cash flows. When cash flow estimates are adjusted upward for a particular loan pool, the FDIC indemnification asset is decreased. The difference between the decrease in the FDIC indemnification asset and the increase in cash flows is accreted over the estimated life of the l |