Loans | Loans Loans consist of the following at (in thousands): September 30, December 31, Commercial loans $ 4,793,838 $ 4,346,506 Commercial loans collateralized by assignment of lease payments 2,074,215 2,002,976 Commercial real estate 4,094,706 3,788,016 Residential real estate 1,433,595 1,060,828 Construction real estate 395,794 518,562 Indirect vehicle 655,213 541,680 Home equity 228,726 266,377 Other consumer loans 77,372 80,781 Total loans, excluding purchased credit-impaired loans 13,753,459 12,605,726 Purchased credit-impaired loans 131,919 163,077 Total loans $ 13,885,378 $ 12,768,803 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 Illinois. 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 cash flow of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not perform 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. 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. In addition, leases that transfer substantially all of the benefits and risk related to the equipment ownership are classified as direct finance leases and are included in lease loans. 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 property income based loans and the repayment of these loans is largely dependent on the successful operation of the property, which also serves as collateral for the loan. 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 monitored 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, these loans 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 accounted for under ASC Topic 310-30, which include purchased credit-impaired loans acquired through business combinations, 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, loans with unpaid principal balances aggregating no less than 129% for qualifying first mortgage loans, 231% for home equity loans, 183% for qualifying commercial real estate loans and 108% for loans held for sale, of the outstanding advances from the Federal Home Loan Bank. As of September 30, 2017 and December 31, 2016 , the Company had $5.6 billion and $5.5 billion , respectively, of loans pledged as collateral for long-term Federal Home Loan Bank advances and third party letters of credit, while only $4.2 billion and $3.2 billion were required to be pledged at September 30, 2017 and December 31, 2016 , respectively. The following table presents the contractual aging of the recorded investment in past due loans by class of loans as of September 30, 2017 and December 31, 2016 (in thousands): Current 30-59 Days 60-89 Days Loans Past Due Total Total September 30, 2017 Commercial $ 4,782,808 $ 5,438 $ 351 $ 5,241 $ 11,030 $ 4,793,838 Commercial collateralized by assignment of lease payments 2,059,556 10,488 3,810 361 14,659 2,074,215 Commercial real estate: Healthcare 698,919 — — — — 698,919 Industrial 856,630 — — 755 755 857,385 Multifamily 608,254 959 — 569 1,528 609,782 Retail 508,048 1,021 — 258 1,279 509,327 Office 447,671 2,131 — 1,634 3,765 451,436 Other 964,855 1,896 87 1,019 3,002 967,857 Residential real estate 1,422,321 575 4,299 6,400 11,274 1,433,595 Construction real estate 395,226 568 — — 568 395,794 Indirect vehicle 649,884 3,938 992 399 5,329 655,213 Home equity 222,804 1,743 753 3,426 5,922 228,726 Other consumer 77,109 89 79 95 263 77,372 Total loans, excluding purchased credit-impaired loans 13,694,085 28,846 10,371 20,157 59,374 13,753,459 Purchased credit-impaired loans 72,900 4,438 6,602 47,979 59,019 131,919 Total loans $ 13,766,985 $ 33,284 $ 16,973 $ 68,136 $ 118,393 $ 13,885,378 Non-performing loan aging $ 27,148 $ 1,179 $ 2,244 $ 20,044 $ 23,467 $ 50,615 December 31, 2016 Commercial $ 4,337,348 $ 2,515 $ 156 $ 6,487 $ 9,158 $ 4,346,506 Commercial collateralized by assignment of lease payments 1,989,934 9,229 1,869 1,944 13,042 2,002,976 Commercial real estate: Healthcare 582,450 — — — — 582,450 Industrial 825,715 3,045 3,293 1,340 7,678 833,393 Multifamily 547,107 458 53 379 890 547,997 Retail 506,789 568 — — 568 507,357 Office 405,992 350 475 6,381 7,206 413,198 Other 899,950 2,385 1,155 131 3,671 903,621 Residential real estate 1,041,189 8,248 3,409 7,982 19,639 1,060,828 Construction real estate 518,171 — 391 — 391 518,562 Indirect vehicle 537,221 2,836 1,062 561 4,459 541,680 Home equity 261,765 1,219 815 2,578 4,612 266,377 Other consumer 80,443 152 120 66 338 80,781 Total loans, excluding purchased credit-impaired loans 12,534,074 31,005 12,798 27,849 71,652 12,605,726 Purchased credit-impaired loans 86,169 6,546 6,600 63,762 76,908 163,077 Total loans $ 12,620,243 $ 37,551 $ 19,398 $ 91,611 $ 148,560 $ 12,768,803 Non-performing loan aging $ 28,364 $ 2,308 $ 978 $ 27,702 $ 30,988 $ 59,352 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, 2017 and December 31, 2016 (in thousands): September 30, 2017 December 31, 2016 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 $ 7,079 $ — $ 11,222 $ 1,406 Commercial collateralized by assignment of lease payments 1,054 360 1,364 1,197 Commercial real estate: Healthcare — — — — Industrial 2,215 — 276 1,064 Multifamily 1,110 — 2,662 — Office 2,973 — 896 6,381 Retail 382 — 384 — Other 1,058 15 83 21 Residential real estate 18,811 185 16,538 235 Construction real estate — — — — Indirect vehicle 2,440 34 2,355 10 Home equity 12,803 — 13,187 — Other consumer 1 95 7 64 Total $ 49,926 $ 689 $ 48,974 $ 10,378 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. Loans rated but not adversely classified are deemed to be Pass. Risk ratings are updated any time the situation warrants and at least annually. Loans not rated are included in groups of homogeneous loans with similar risk and loss characteristics and are not included in the table below. 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, 2017 and December 31, 2016 (in thousands): Pass Special Substandard Doubtful Total September 30, 2017 Commercial $ 4,556,245 $ 160,905 $ 76,688 $ — $ 4,793,838 Commercial collateralized by assignment of lease payments 2,053,456 12,405 8,354 — 2,074,215 Commercial real estate: Healthcare 659,945 2,675 36,299 — 698,919 Industrial 830,106 15,401 11,878 — 857,385 Multifamily 601,515 151 8,116 — 609,782 Retail 505,004 1,566 2,757 — 509,327 Office 442,550 3,782 5,104 — 451,436 Other 893,589 46,688 27,580 — 967,857 Construction real estate 395,267 527 — — 395,794 Total $ 10,937,677 $ 244,100 $ 176,776 $ — $ 11,358,553 December 31, 2016 Commercial $ 4,127,397 $ 113,838 $ 105,271 $ — $ 4,346,506 Commercial collateralized by assignment of lease payments 1,981,689 16,010 5,277 — 2,002,976 Commercial real estate: Healthcare 545,663 32,251 4,536 — 582,450 Industrial 814,668 17,962 763 — 833,393 Multifamily 544,071 312 3,614 — 547,997 Retail 498,458 8,350 549 — 507,357 Office 404,811 5,299 3,088 — 413,198 Other 820,229 44,629 38,763 — 903,621 Construction real estate 518,562 — — — 518,562 Total $ 10,255,548 $ 238,651 $ 161,861 $ — $ 10,656,060 Approximately $15.9 million and $17.3 million of the substandard loans were non-performing as of September 30, 2017 and December 31, 2016 , respectively. For residential real estate, home equity, indirect vehicle and other consumer loan classes, the Company also 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, 2017 and December 31, 2016 (in thousands): Performing Non-performing Total September 30, 2017 Residential real estate $ 1,414,599 $ 18,996 $ 1,433,595 Indirect vehicle 652,739 2,474 655,213 Home equity 215,923 12,803 228,726 Other consumer 77,276 96 77,372 Total $ 2,360,537 $ 34,369 $ 2,394,906 December 31, 2016 Residential real estate $ 1,044,055 $ 16,773 $ 1,060,828 Indirect vehicle 539,315 2,365 541,680 Home equity 253,190 13,187 266,377 Other consumer 80,710 71 80,781 Total $ 1,917,270 $ 32,396 $ 1,949,666 The recorded investment in residential mortgage loans secured by residential real estate properties (including purchased credit-impaired loans) for which foreclosure proceedings are in process totaled $46.1 million and $29.1 million at September 30, 2017 and December 31, 2016 , respectively. The following tables present loans individually evaluated for impairment by class of loans, excluding purchased credit-impaired loans, as of September 30, 2017 and December 31, 2016 (in thousands): September 30, 2017 Three Months Ended Nine Months Ended Unpaid Recorded Partial Allowance for Average Interest Average Interest With no related allowance recorded: Commercial $ 2,997 $ 2,997 $ — $ — $ 2,470 $ 22 $ 4,064 $ 59 Commercial collateralized by assignment of lease payments 16 1 15 — 1 — 403 — Commercial real estate: Healthcare — — — — — — — — Industrial 1,238 1,238 — — 1,350 — 1,684 8 Multifamily — — — — — — 1,686 29 Retail — — — — — — 1,088 27 Office 1,860 1,856 4 — 1,903 6 1,715 12 Other 3,542 3,542 — — 3,552 57 1,197 57 Residential real estate 750 718 32 — — — — — Construction real estate — — — — — — — — Indirect vehicle 572 349 223 — 621 10 396 20 Home equity 108 108 — — 26 — 476 — Other consumer — — — — — — — — With an allowance recorded: Commercial 7,645 7,645 — 1,012 8,406 29 8,481 202 Commercial collateralized by assignment of lease payments 920 920 — 585 500 14 168 14 Commercial real estate: Healthcare — — — — — — — — Industrial 3,254 3,243 11 432 3,293 34 2,213 66 Multifamily 569 569 — 234 565 — 379 — Retail — — — — — — 1,799 28 Office 961 960 1 34 214 4 72 4 Other 591 591 — 155 115 — 39 — Residential real estate 20,876 18,652 2,224 2,169 18,655 16 17,126 21 Construction real estate — — — — — — — — Indirect vehicle — — — — — — — — Home equity 29,648 27,360 2,288 2,562 27,421 12 27,820 39 Other consumer — — — — — — — — Total $ 75,547 $ 70,749 $ 4,798 $ 7,183 $ 69,092 $ 204 $ 70,806 $ 586 December 31, 2016 Year Ended Unpaid Recorded Partial Allowance for Average Interest With no related allowance recorded: Commercial $ 9,056 $ 9,056 $ — $ — $ 5,944 $ — Commercial collateralized by assignment of lease payments 1,129 747 382 — 1,045 34 Commercial real estate: Healthcare — — — — — — Industrial — — — — 402 — Multifamily 1,922 1,922 — — 2,348 — Retail 2,670 929 1,741 — 2,165 — Office — — — — 256 — Other — — — — 60 — Residential real estate — — — — — — Construction real estate — — — — — — Indirect vehicle 223 122 101 — 252 — Home equity — — — — 143 — Other consumer — — — — — — With an allowance recorded: Commercial 14,403 14,403 — 2,889 22,737 — Commercial collateralized by assignment of lease payments — — — — 2,397 18 Commercial real estate: Healthcare — — — — — — Industrial — — — — — — Multifamily — — — — — — Retail 3,592 3,592 — 354 6,827 — Office — — — — 745 — Other — — — — 235 — Residential real estate 16,257 14,353 1,904 2,163 13,412 — Construction real estate — — — — — — Indirect vehicle — — — — — — Home equity 31,104 28,790 2,314 2,930 28,677 — Other consumer — — — — — — Total $ 80,356 $ 73,914 $ 6,442 $ 8,336 $ 87,645 $ 52 Impaired loans included accruing restructured loans of $32.9 million and $32.7 million that have been modified and are performing in accordance with those modified terms as of September 30, 2017 and December 31, 2016 , respectively. In addition, impaired loans included $24.4 million and $27.1 million of non-performing restructured loans as of September 30, 2017 and December 31, 2016 , 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. 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, 2017 (dollars in thousands): September 30, 2017 Number of Pre-Modification Recorded Post-Modification Recorded Charge-offs and Performing: Commercial real estate Industrial 1 $ 387 $ 387 $ — Retail 2 337 337 — Other 2 3,555 3,555 — Home equity 1 19 19 1 Total 6 $ 4,298 $ 4,298 $ 1 Non-Performing: Residential real estate 11 $ 2,775 $ 2,775 $ 739 Indirect vehicle 20 153 153 105 Home equity 1 15 15 1 Total 32 $ 2,943 $ 2,943 $ 845 The following table presents loans that were restructured during the nine months ended September 30, 2017 (dollars in thousands): September 30, 2017 Number of Pre-Modification Recorded Post-Modification Recorded Charge-offs and Performing: Commercial 5 $ 2,491 $ 2,491 $ 373 Commercial real estate Industrial 3 3,174 3,174 — Retail 2 337 337 — Office 1 549 549 — Other 3 3,703 3,703 — Residential real estate 6 902 902 135 Home equity 4 97 97 7 Total 24 $ 11,253 $ 11,253 $ 515 Non-Performing: Commercial 2 $ 676 $ 676 $ — Commercial real estate: Multifamily 3 290 290 — Retail 1 906 906 — Residential real estate 28 5,155 5,155 1,182 Indirect vehicle 31 250 250 134 Home equity 4 608 608 58 Total 69 $ 7,885 $ 7,885 $ 1,374 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 Of the troubled debt restructurings entered into during the past twelve months, none subsequently defaulted during the nine months ended September 30, 2017 . 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, 2017 (in thousands): Performing Non-performing Beginning balance $ 32,687 $ 27,068 Additions 11,253 7,885 Charge-offs — (520 ) Principal payments, net (1,001 ) (4,601 ) Removals (11,546 ) (3,429 ) Transfer to other real estate owned — (590 ) Transfers in 2,056 599 Transfers out (599 ) (2,056 ) Ending balance $ 32,850 $ 24,356 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, 2017 (in thousands): September 30, 2017 Extended Maturity, Delay in Amortization Extended Payments and/or and Reduction Maturity and/or Reduction of of Interest Rate Amortization Interest Rate Total Commercial $ — $ 3,167 $ — $ 3,167 Commercial collateralized by assignment of lease payments — — — — Commercial real estate: Healthcare — — — — Industrial — 3,174 — 3,174 Multifamily — 290 — 290 Retail — 906 337 1,243 Office — 549 — 549 Other — 3,703 — 3,703 Residential real estate 3,885 1,589 583 6,057 Construction real estate — — — — Indirect vehicle — — 250 250 Home equity — 35 670 705 Other consumer — — — — Total $ 3,885 $ 13,413 $ 1,840 $ 19,138 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, 2017 and 2016 (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, 2017 Allowance for credit losses: Three Months Ended Beginning balance $ 43,783 $ 12,765 $ 63,247 $ 8,249 $ 15,263 $ 3,963 $ 4,750 $ 2,013 $ 2,264 $ 156,297 Charge-offs 235 188 31 541 — 1,097 439 299 — 2,830 Recoveries 719 — 1,432 38 502 498 149 82 — 3,420 Provision 1,715 240 935 94 (707 ) 1,317 422 489 12 4,517 Ending balance $ 45,982 $ 12,817 $ 65,583 $ 7,840 $ 15,058 $ 4,681 $ 4,882 $ 2,285 $ 2,276 $ 161,404 Nine Months Ended Beginning balance $ 44,661 $ 12,238 $ 51,807 $ 5,971 $ 14,758 $ 3,421 $ 4,689 $ 1,821 $ 2,476 $ 141,842 Charge-offs 1,103 188 1,378 901 — 3,438 873 1,243 — 9,124 Recoveries 3,568 712 2,312 624 661 1,715 724 420 — 10,736 Provision (1,144 ) 55 12,842 2,146 (361 ) 2,983 342 1,287 (200 ) 17,950 Ending balance $ 45,982 $ 12,817 $ 65,583 $ 7,840 $ 15,058 $ 4,681 $ 4,882 $ 2,285 $ 2,276 $ 161,404 Ending allowance balance attributable to loans: Individually evaluated for impairment $ 1,012 $ 585 $ 855 $ 2,169 $ — $ — $ 2,562 $ — $ 1,220 $ 8,403 Collectively evaluated for impairment 44,879 12,232 63,868 5,671 15,023 4,681 2,320 2,285 1,056 152,015 Acquired and accounted for under ASC 310-30 (1) 91 — 860 — 35 — — — — 986 Total ending allowance balance $ 45,982 $ 12,817 $ 65,583 $ 7,840 $ 15,058 $ 4,681 $ 4,882 $ 2,285 $ 2,276 $ 161,404 Loans: Individually evaluated for impairment $ 10,642 $ 921 $ 11,999 $ 19,370 $ — $ 349 $ 27,468 $ — $ — $ 70,749 Collectively evaluated for impairment 4,783,196 2,073,294 4,082,707 1,414,225 395,794 654,864 201,258 77,372 — 13,682,710 Acquired and accounted for under ASC 310-30 (1) 13,677 — 32,063 68,071 5,183 — 11,200 1,725 — 131,919 Total ending loans balance $ 4,807,515 $ 2,074,215 $ 4,126,769 $ 1,501,666 $ 400,977 $ 655,213 $ 239,926 $ 79,097 $ — $ 13,885,378 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 (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 Topic 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 Topic 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 Topic 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 FDIC-assisted transactions 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, 2017 , there was a provision for credit losses of $243 thousand and net charge-offs of $123 thousand in relation to purchased credit-impaired loans. There was $986 thousand and $866 thousand in allowance for loan and lease losses related to these purchased credit-impaired loans at September 30, 2017 and December 31, 2016 , 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, 2017 and 2016 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Balance at beginning of period $ 12,686 $ 13,160 $ 16,050 $ 12,596 Purchases — 805 43 805 Accretion (4,315 ) (2,564 ) (9,334 ) (7,193 ) Other (1) 3,453 2,523 5,065 7,716 Balance at end of period $ 11,824 $ 13,924 $ 11,824 $ 13,924 (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. For other loans acquired through business combinations, 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. The carrying amount of loans acquired through a business combination by loan pool type are as follows (in thousands): September 30, 2017 Purchased Purchased Non-Credit-Impaired Total Covered loans (1) : Consumer related $ 15,658 $ — $ 15,658 Non-covered loans: Commercial loans 13,677 353,489 367,166 Commercial loans collateralized by assignment of lease payments — 50,629 50,629 Commercial real estate 32,063 873,179 905,242 Construction real estate 5,183 7,418 12,601 Consumer related 5,277 291,376 296,653 Total non-covered loans 56,200 1,576,091 1,632,291 Total acquired $ 71,858 $ 1,576,091 $ 1,647,949 (1) Covered loans refer to loans covered under loss-sharing agreements with the FDIC. In addition to loans acquired through a business combination noted in the table above, consumer related purchased credit-impaired loans includes loans repurchased from GNMA of $60.1 million as of September 30, 2017 . Effective April 1, 2014, the losses on commercial related loans (commercial, commercial real estate and construction real estate) acquired in connection with the Heritage Community Bank ("Heritage") FDIC-assisted transaction ceased being covered under the loss-share agreement for t |