LOANS AND LEASES AND ALLOWANCE FOR LOAN AND LEASE LOSSES | LOANS AND LEASES AND ALLOWANCE FOR LOAN AND LEASE LOSSES The following table presents the balances in the Company’s loans and leases portfolio as of the dates indicated: Non-Traditional Mortgages (NTM) Traditional Loans Total NTM and Traditional Loans Purchased Credit Impaired (PCI) Loans Total Loans and Leases Receivable ($ in thousands) September 30, 2015 Commercial: Commercial and industrial $ — $ 822,234 $ 822,234 $ 456 $ 822,690 Commercial real estate — 680,372 680,372 10,490 690,862 Multi-family — 823,415 823,415 — 823,415 SBA — 49,862 49,862 3,123 52,985 Construction — 39,475 39,475 — 39,475 Lease financing — 162,504 162,504 — 162,504 Consumer: Single family residential mortgage 642,410 900,478 1,542,888 358,488 1,901,376 Green Loans (HELOC) - first liens 112,074 — 112,074 — 112,074 Green Loans (HELOC) - second liens 4,681 — 4,681 — 4,681 Other consumer 113 119,902 120,015 — 120,015 Total gross loans and leases $ 759,278 $ 3,598,242 $ 4,357,520 $ 372,557 $ 4,730,077 Percentage to total gross loans and leases 16.1 % 76.1 % 92.2 % 7.8 % 100.0 % Allowance for loan and lease losses (34,774 ) Loans and leases receivable, net $ 4,695,303 December 31, 2014 Commercial: Commercial and industrial $ — $ 489,766 $ 489,766 $ 1,134 $ 490,900 Commercial real estate — 988,330 988,330 11,527 999,857 Multi-family — 955,683 955,683 — 955,683 SBA — 32,998 32,998 3,157 36,155 Construction — 42,198 42,198 — 42,198 Lease financing — 85,749 85,749 — 85,749 Consumer: Single family residential mortgage 222,306 595,100 817,406 231,079 1,048,485 Green Loans (HELOC) - first liens 123,177 — 123,177 — 123,177 Green Loans (HELOC) - second liens 4,979 — 4,979 — 4,979 Other consumer 113 161,826 161,939 — 161,939 Total gross loans and leases $ 350,575 $ 3,351,650 $ 3,702,225 $ 246,897 $ 3,949,122 Percentage to total gross loans and leases 8.9 % 84.8 % 93.7 % 6.3 % 100.0 % Allowance for loan and lease losses (29,480 ) Loans and leases receivable, net $ 3,919,642 Non Traditional Mortgage Loans The Company’s non-traditional mortgage (NTM) portfolio is comprised of three interest only products: Green Account Loans (Green Loans), fixed or adjustable hybrid interest only rate mortgage (Interest Only) loans and a small number of additional loans with the potential for negative amortization. As of September 30, 2015 and December 31, 2014 , the NTM loans totaled $759.3 million , or 16.1 percent of the total gross loan portfolio, and $350.6 million , or 8.9 percent of the total gross loan portfolio, respectively. The total NTM portfolio increased by $408.7 million , or 116.6 percent , during the nine months ended September 30, 2015 , due mainly to interest only loans transferred from loans held for sale of $277.5 million . The following table presents the composition of the NTM portfolio as of the dates indicated: September 30, 2015 December 31, 2014 Count Amount Percent Count Amount Percent ($ in thousands) Green Loans (HELOC) - first liens 135 $ 112,074 14.8 % 148 $ 123,177 35.1 % Interest-only - first liens 509 630,420 82.9 % 207 209,207 59.7 % Negative amortization 31 11,990 1.6 % 32 13,099 3.7 % Total NTM - first liens 675 754,484 99.3 % 387 345,483 98.5 % Green Loans (HELOC) - second liens 16 4,681 0.6 % 19 4,979 1.4 % Interest-only - second liens 1 113 0.1 % 1 113 0.1 % Total NTM - second liens 17 4,794 0.7 % 20 5,092 1.5 % Total NTM loans 692 $ 759,278 100.0 % 407 $ 350,575 100.0 % Total gross loan portfolio $ 4,730,077 $ 3,949,122 % of NTM to total gross loan portfolio 16.1 % 8.9 % Green Loans Green Loans are single family residential first and second mortgage lines of credit with a linked checking account that allows all types of deposits and withdrawals to be performed. The loans are generally interest only with a 15 year-balloon payment due at maturity. At September 30, 2015 and December 31, 2014 , Green Loans totaled $116.8 million and $128.2 million , respectively. At September 30, 2015 and December 31, 2014 , $10.2 million and $12.5 million , respectively, of the Company’s Green Loans were non-performing. As a result of their unique payment feature, Green Loans possess higher credit risk due to the potential for negative amortization; however, management believes the risk is mitigated through the Company’s loan terms and underwriting standards, including its policies on loan-to-value ratios and the Company’s contractual ability to curtail loans when the value of the underlying collateral declines. The Company discontinued origination of the Green Loan products in 2011. Interest Only Loans Interest only loans are primarily single family residential first mortgage loans with payment features that allow interest only payments in initial periods before converting to a fully amortizing loan. As of September 30, 2015 and December 31, 2014 , interest only loans totaled $630.5 million and $209.3 million , respectively. As of September 30, 2015 and December 31, 2014 , $3.7 million and $2.0 million of the interest only loans were non-performing, respectively. Loans with the Potential for Negative Amortization Negative amortization loans totaled $12.0 million and $13.1 million at September 30, 2015 and December 31, 2014 , respectively. The Company discontinued origination of negative amortization loans in 2007. At September 30, 2015 and December 31, 2014 , none of the loans that had the potential for negative amortization were non-performing. These loans pose a potentially higher credit risk because of the lack of principal amortization and potential for negative amortization; however, management believes the risk is mitigated through the loan terms and underwriting standards, including the Company’s policies on loan-to-value ratios. While Green Loans have the potential for negative amortization, they are excluded from the loans with the potential for negative amortization discussed in this paragraph. Risk Management of Non-Traditional Mortgages The Company has determined that significant performance indicators for NTMs are loan-to-value (LTV) and Fair Isaac Corporation (FICO) scores. Accordingly, the Company manages credit risk in the NTM portfolio through semi-annual review of the loan portfolio that includes refreshing FICO scores on the Green Loans and home equity lines of credit, as needed in conjunction with portfolio management, and ordering third party automated valuation models. The loan review is designed to provide a method of identifying borrowers who may be experiencing financial difficulty before they actually fail to make a loan payment. Upon receipt of the updated FICO scores, an exception report is run to identify loans with a decrease in FICO of 10 percent or more and/or a resulting FICO of 620 or less. The loans are then further analyzed to determine if the risk rating should be downgraded which will increase the reserves the Company will establish for potential losses. A report of the semi-annual loan review is published and regularly monitored. As these loans are revolving lines of credit, the Company, based on the loan agreement and loan covenants of the particular loan, as well as applicable rules and regulations, could suspend the borrowing privileges or reduce the credit limit at any time the Company reasonably believes that the borrower will be unable to fulfill their repayment obligations under the agreement or certain other conditions are met. In many cases, the decrease in FICO is the first indication that the borrower may have difficulty in making their future payment obligations. The Company proactively manages the NTM portfolio by performing detailed analyses on the portfolio. The Company’s Internal Asset Review Committee (IARC) conducts meetings on at least a quarterly basis to review the loans classified as special mention, substandard, or doubtful and determines whether a suspension or reduction in credit limit is warranted. If a line has been suspended and the borrower would like to have their credit privileges reinstated, they would need to provide updated financials showing their ability to meet their payment obligations. On the interest only loans, the Company projects future payment changes to determine if there will be a material increase in the required payment and then monitors the loans for possible delinquency. The individual loans are monitored for possible downgrading of risk rating. NTM Performance Indicators The following table presents the Company’s NTM Green Loans first lien portfolio at September 30, 2015 by FICO scores that were obtained during the quarter ended June 30, 2015, comparing to the FICO scores for those same loans that were obtained during the quarter ended December 31, 2014: September 30, 2015 By FICO Scores Obtained During the Quarter Ended June 30, 2015 By FICO Scores Obtained During the Quarter Ended December 31, 2014 Change Count Amount Percent Count Amount Percent Count Amount Percent ($ in thousands) FICO Score 800+ 23 $ 15,178 13.5 % 28 $ 19,338 17.3 % (5 ) $ (4,160 ) (3.8 )% 700-799 69 54,896 49.0 % 65 47,770 42.5 % 4 7,126 6.5 % 600-699 25 18,198 16.2 % 26 27,575 24.6 % (1 ) (9,377 ) (8.4 )% <600 7 7,815 7.0 % 8 11,836 10.6 % (1 ) (4,021 ) (3.6 )% No FICO 11 15,987 14.3 % 8 5,555 5.0 % 3 10,432 9.3 % Totals 135 $ 112,074 100.0 % 135 $ 112,074 100.0 % — $ — — % The Company updates FICO scores on a semi-annual basis, typically in the second and fourth quarters or as needed in conjunction with proactive portfolio management. Loan to Value The table below presents the Company’s single family residential NTM first lien portfolio by loan-to-value ratio (LTV) as of the dates indicated: Green Interest Only Negative Amortization Total Count Amount Percent Count Amount Percent Count Amount Percent Count Amount Percent ($ in thousands) LTV’s (1) September 30, 2015 < 61% 57 $ 32,541 29.0 % 129 $ 195,272 31.0 % 17 $ 5,330 44.5 % 203 $ 233,143 30.8 % 61-80% 43 39,210 35.0 % 292 402,223 63.8 % 10 5,683 47.4 % 345 447,116 59.3 % 81-100% 19 16,839 15.0 % 33 15,241 2.4 % 4 977 8.1 % 56 33,057 4.4 % > 100% 16 23,484 21.0 % 55 17,684 2.8 % — — — % 71 41,168 5.5 % Total 135 $ 112,074 100.0 % 509 $ 630,420 100.0 % 31 $ 11,990 100.0 % 675 $ 754,484 100.0 % December 31, 2014 < 61% 77 $ 58,856 47.8 % 60 $ 93,254 44.7 % 15 $ 6,023 46.0 % 152 $ 158,133 45.8 % 61-80% 45 46,177 37.5 % 54 81,472 38.9 % 12 5,901 45.0 % 111 133,550 38.6 % 81-100% 18 11,846 9.6 % 33 14,927 7.1 % 4 781 6.0 % 55 27,554 8.0 % > 100% 8 6,298 5.1 % 60 19,554 9.3 % 1 394 3.0 % 69 26,246 7.6 % Total 148 $ 123,177 100.0 % 207 $ 209,207 100.0 % 32 $ 13,099 100.0 % 387 $ 345,483 100.0 % (1) LTV represents estimated current loan to value ratio, determined by dividing current unpaid principal balance by latest estimated property value received per the Company policy. Allowance for Loan and Lease Losses The Company has an established credit risk management process that includes regular management review of the loan and lease portfolio to identify problem loans and leases. During the ordinary course of business, management becomes aware of borrowers and lessees that may not be able to meet the contractual requirements of the loan and lease agreements. Such loans and leases are subject to increased monitoring. Consideration is given to placing the loan or lease on non-accrual status, assessing the need for additional allowance for loan and lease losses, and partial or full charge-off. The Company maintains the allowance for loan and lease losses at a level that is considered adequate to cover the estimated and known inherent risks in the loan and lease portfolio. The Company also maintains a reserve for unfunded loan commitments at a level that is considered adequate to cover the estimated and known inherent risks. The probability of usage of the unfunded loan commitments and credit risk factors determined based on outstanding loan balance of the same customer or outstanding loans that share similar credit risk exposure are used to determine the adequacy of the reserve. As of September 30, 2015 and December 31, 2014 , the reserve for unfunded loan commitments was $1.7 million and $1.9 million , respectively. The credit risk monitoring system is designed to identify impaired and potential problem loans, and to permit periodic evaluation of impairment and the adequacy of the allowance for credit losses in a timely manner. In addition, the Board of Directors of the Bank has adopted a credit policy that includes a credit review and control system which it believes should be effective in ensuring that the Company maintains an adequate allowance for credit losses. The Board of Directors provides oversight and guidance for management’s allowance evaluation process, including quarterly valuations, and consideration of management’s determination of whether the allowance is adequate to absorb losses in the loan and lease portfolio. The determination of the amount of the allowance for loan and lease losses and the provision for loan and lease losses is based on management’s current judgment about the credit quality of the loan and lease portfolio and takes into consideration known relevant internal and external factors that affect collectability when determining the appropriate level for the allowance for loan and lease losses. Additions to the allowance for loan and lease losses are made by charges to the provision for loan and lease losses. Identified credit exposures that are determined to be uncollectible are charged against the allowance for loan and lease losses. Recoveries of previously charged off amounts, if any, are credited to the allowance for loan and lease losses. The following table presents a summary of activity in the allowance for loan and lease losses for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands) Balance at beginning of period $ 34,787 $ 22,627 $ 29,480 $ 18,805 Loans and leases charged off (788 ) (312 ) (1,224 ) (898 ) Recoveries of loans and leases previously charged off 40 96 309 1,172 Transfer of loans from (to) held-for-sale — 92 — (613 ) Provision for loan and lease losses 735 2,780 6,209 6,817 Balance at end of period $ 34,774 $ 25,283 $ 34,774 $ 25,283 The following table presents the activity and balance in the allowance for loan and lease losses and the recorded investment, excluding accrued interest, in loans and leases by portfolio segment and is based on the impairment method as of or for the three and nine months ended September 30, 2015 : Commercial and Industrial Commercial Real Estate Multi- family SBA Construction Lease Financing Single Family Residential Mortgage Other Consumer Unallocated Total (In thousands) Allowance for loan and lease losses: Balance at June 30, 2015 $ 6,884 $ 4,445 $ 3,680 $ 674 $ 579 $ 1,646 $ 12,950 $ 1,686 $ 2,243 $ 34,787 Charge-offs — — — (29 ) — (759 ) — — — (788 ) Recoveries — — — 40 — — — — — 40 Provision (904 ) (526 ) 2,030 (70 ) 612 1,196 1,051 (411 ) (2,243 ) 735 Balance at September 30, 2015 $ 5,980 $ 3,919 $ 5,710 $ 615 $ 1,191 $ 2,083 $ 14,001 $ 1,275 $ — $ 34,774 Balance at December 31, 2014 $ 6,910 $ 3,840 $ 7,179 $ 335 $ 846 $ 873 $ 7,192 $ 2,305 $ — $ 29,480 Charge-offs (33 ) (259 ) — (84 ) — (848 ) — — — (1,224 ) Recoveries 8 132 3 153 — — — 13 — 309 Provision (905 ) 206 (1,472 ) 211 345 2,058 6,809 (1,043 ) — 6,209 Balance at September 30, 2015 $ 5,980 $ 3,919 $ 5,710 $ 615 $ 1,191 $ 2,083 $ 14,001 $ 1,275 $ — $ 34,774 Individually evaluated for impairment $ 76 $ — $ — $ — $ — $ — $ 436 $ — $ — $ 512 Collectively evaluated for impairment 5,846 3,807 5,710 596 1,191 2,083 13,548 1,275 — 34,056 Acquired with deteriorated credit quality 58 112 — 19 — — 17 — — 206 Total ending allowance balance $ 5,980 $ 3,919 $ 5,710 $ 615 $ 1,191 $ 2,083 $ 14,001 $ 1,275 $ — $ 34,774 Loans: Individually evaluated for impairment $ 5,980 $ 333 $ — $ 8 $ — $ — $ 25,837 $ 554 $ — $ 32,712 Collectively evaluated for impairment 816,254 680,039 823,415 49,854 39,475 162,504 1,629,125 124,142 — 4,324,808 Acquired with deteriorated credit quality 456 10,490 — 3,123 — — 358,488 — — 372,557 Total ending loan balances $ 822,690 $ 690,862 $ 823,415 $ 52,985 $ 39,475 $ 162,504 $ 2,013,450 $ 124,696 $ — $ 4,730,077 The increase in ALLL on single family residential (SFR) mortgage loans for the nine months ended September 30, 2015 was mainly due to SFR mortgage loans transferred from held for sale of $476.9 million in the second quarter of 2015. The following table presents the activity and balance in the allowance for loan and lease losses and the recorded investment, excluding accrued interest, in loans and leases by portfolio segment and is based on the impairment method as of or for the three and nine months ended September 30, 2014 : Commercial and Industrial Commercial Real Estate Multi- family SBA Construction Lease Financing Single Family Residential Mortgage Other Consumer Unallocated Total (In thousands) Allowance for loan and lease losses: Balance at June 30, 2014 $ 3,007 $ 5,615 $ 3,408 $ 261 $ 1,245 $ 730 $ 7,289 $ 1,072 $ — $ 22,627 Charge-offs — (65 ) — — — (227 ) (18 ) (2 ) — (312 ) Recoveries — 88 — 7 — — — 1 — 96 Transfer of loans to held-for-sale — — — — — — 92 — — 92 Provision 1,878 (1,767 ) 2,676 44 (762 ) 233 (463 ) 941 — 2,780 Balance at September 30, 2014 $ 4,885 $ 3,871 $ 6,084 $ 312 $ 483 $ 736 $ 6,900 $ 2,012 $ — $ 25,283 Balance at December 31, 2013 $ 1,822 $ 5,484 $ 2,566 $ 235 $ 244 $ 428 $ 7,044 $ 532 $ 450 $ 18,805 Charge-offs — (65 ) (3 ) (17 ) — (227 ) (375 ) (211 ) — (898 ) Recoveries 53 843 — 273 — — — 3 — 1,172 Transfer of loans to held-for-sale — — — — — — (613 ) — — (613 ) Provision 3,010 (2,391 ) 3,521 (179 ) 239 535 844 1,688 (450 ) 6,817 Balance at September 30, 2014 $ 4,885 $ 3,871 $ 6,084 $ 312 $ 483 $ 736 $ 6,900 $ 2,012 $ — $ 25,283 Individually evaluated for impairment $ 7 $ — $ 80 $ — $ — $ — $ 437 $ — $ — $ 524 Collectively evaluated for impairment 4,878 3,871 6,004 312 483 736 6,463 2,012 — 24,759 Acquired with deteriorated credit quality — — — — — — — — — — Total ending allowance balance $ 4,885 $ 3,871 $ 6,084 $ 312 $ 483 $ 736 $ 6,900 $ 2,012 $ — $ 25,283 Loans: Individually evaluated for impairment $ 7,333 $ 3,572 $ 1,622 $ 6 $ — $ — $ 23,119 $ 1,382 $ — $ 37,034 Collectively evaluated for impairment 357,803 506,679 365,742 22,517 25,997 72,027 931,462 139,906 — 2,422,133 Acquired with deteriorated credit quality 1,280 11,616 — 3,206 — — 236,440 359 — 252,901 Total ending loan balances $ 366,416 $ 521,867 $ 367,364 $ 25,729 $ 25,997 $ 72,027 $ 1,191,021 $ 141,647 $ — $ 2,712,068 The following table presents loans and leases individually evaluated for impairment by class of loans and leases as of the dates indicated. The recorded investment, excluding accrued interest, presents customer balances net of any partial charge-offs recognized on the loans and leases and net of any deferred fees and costs. September 30, 2015 December 31, 2014 Unpaid Principal Balance Recorded Investment Allowance for Loan and Lease Losses Unpaid Principal Balance Recorded Investment Allowance for Loan and Lease Losses (In thousands) With no related allowance recorded: Commercial: Commercial and industrial $ 4,899 $ 4,824 $ — $ 4,803 $ 4,708 $ — Commercial real estate 1,210 333 — 1,910 1,017 — Multi-family — — — 1,747 1,594 — SBA 21 8 — 24 6 — Consumer: Single family residential mortgage 23,291 21,861 — 15,729 15,131 — Other consumer 554 554 — 507 503 — With an allowance recorded: Commercial: Commercial and industrial 1,154 1,156 76 4,310 4,313 788 Consumer: Single family residential mortgage 3,963 3,976 436 6,422 6,206 500 Total $ 35,092 $ 32,712 $ 512 $ 35,452 $ 33,478 $ 1,288 The following table presents information on impaired loans and leases, disaggregated by class, for the periods indicated: Three Months Ended Nine Months Ended Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized (In thousands) September 30, 2015 Commercial: Commercial and industrial $ 6,379 $ 60 $ 64 $ 6,592 $ 247 $ 258 Commercial real estate 343 10 10 363 27 27 Multi-family — — — 527 13 15 SBA 8 — — 8 — — Consumer: Single family residential mortgage 26,028 317 315 24,668 706 701 Other consumer 554 4 4 381 8 9 Total $ 33,312 $ 391 $ 393 $ 32,539 $ 1,001 $ 1,010 September 30, 2014 Commercial: Commercial and industrial $ 7,295 $ 31 $ 56 $ 2,432 $ 31 $ 56 Commercial real estate 3,595 44 51 3,476 93 108 Multi-family 1,637 12 12 1,668 25 25 SBA 6 — — 2 — — Consumer: Single family residential mortgage 23,201 182 194 14,580 247 259 Other consumer 1,393 22 22 606 23 23 Total $ 37,127 $ 291 $ 335 $ 22,764 $ 419 $ 471 Non-accrual Loans and Leases The following table presents nonaccrual loans and leases, and loans past due 90 days or more and still accruing as of the dates indicated: September 30, 2015 December 31, 2014 NTM Loans Traditional Loans and Leases Total NTM Traditional Total (In thousands) Loans past due 90 days or more and still accruing $ — $ — $ — $ — $ — $ — Nonaccrual loans and leases: The Company maintains specific allowances for these loans of $0 in 2015 and $478 in 2014 13,871 31,317 45,188 14,592 23,789 38,381 The following table presents the composition of nonaccrual loans and leases as of the dates indicated: September 30, 2015 December 31, 2014 NTM Traditional Total NTM Traditional Total (In thousands) Commercial: Commercial and industrial $ — $ 5,060 $ 5,060 $ — $ 7,143 $ 7,143 Commercial real estate — 1,315 1,315 — 1,017 1,017 Multi-family — 657 657 — 1,834 1,834 SBA — 448 448 — 285 285 Construction — — — — — — Lease financing — 984 984 — 100 100 Consumer: Single family residential mortgage 3,713 22,721 26,434 2,049 13,370 15,419 Green Loans (HELOC) - first liens 10,158 — 10,158 12,334 — 12,334 Green Loans (HELOC) - second liens — — — 209 — 209 Other consumer — 132 132 — 40 40 Total nonaccrual loans and leases $ 13,871 $ 31,317 $ 45,188 $ 14,592 $ 23,789 $ 38,381 Past Due Loans and Leases The following table presents the aging of the recorded investment in past due loans and leases as of September 30, 2015 , excluding accrued interest receivable (which is not considered to be material), by class of loans and leases: September 30, 2015 30 - 59 Days Past Due 60 - 89 Days Past Due Greater than 89 Days Past due Total Past Due Current Total (In thousands) NTM loans: Single family residential mortgage $ 6,776 $ 78 $ 3,713 $ 10,567 $ 631,843 $ 642,410 Green Loans (HELOC) - first liens 932 — — 932 111,142 112,074 Green Loans (HELOC) - second liens — — — — 4,681 4,681 Other consumer — — — — 113 113 Total NTM loans 7,708 78 3,713 11,499 747,779 759,278 Traditional loans and leases: Commercial: Commercial and industrial 282 5 1,083 1,370 820,864 822,234 Commercial real estate — — 642 642 679,730 680,372 Multi-family — 440 — 440 822,975 823,415 SBA 166 29 194 389 49,473 49,862 Construction — — — — 39,475 39,475 Lease financing 5,457 941 984 7,382 155,122 162,504 Consumer: Single family residential mortgage 28,045 5,363 16,962 50,370 850,108 900,478 Other consumer 36 — 147 183 119,719 119,902 Total traditional loans and leases 33,986 6,778 20,012 60,776 3,537,466 3,598,242 PCI loans Commercial: Commercial and industrial — — 182 182 274 456 Commercial real estate — — 691 691 9,799 10,490 SBA 360 — 805 1,165 1,958 3,123 Consumer: Single family residential mortgage 11,417 5,816 4,545 21,778 336,710 358,488 Total PCI loans 11,777 5,816 6,223 23,816 348,741 372,557 Total $ 53,471 $ 12,672 $ 29,948 $ 96,091 $ 4,633,986 $ 4,730,077 The following table presents the aging of the recorded investment in past due loans and leases as of December 31, 2014 , excluding accrued interest receivable (which is not considered to be material), by class of loans and leases: December 31, 2014 30 - 59 Days Past Due 60 - 89 Days Past Due Greater than 89 Days Past due Total Past Due Current Total (In thousands) NTM loans: Single family residential mortgage $ 1,415 $ 165 $ 2,049 $ 3,629 $ 218,677 $ 222,306 Green Loans (HELOC) - first liens 8,853 — 437 9,290 113,887 123,177 Green Loans (HELOC) - second liens 294 — 209 503 4,476 4,979 Other consumer — — — — 113 113 Total NTM loans 10,562 165 2,695 13,422 337,153 350,575 Traditional loans and leases: Commercial: Commercial and industrial 79 37 3,370 3,486 486,280 489,766 Commercial real estate 2,237 — — 2,237 986,093 988,330 Multi-family 1,072 208 — 1,280 954,403 955,683 SBA 82 — 254 336 32,662 32,998 Construction — — — — 42,198 42,198 Lease financing 1,055 36 100 1,191 84,558 85,749 Consumer: Single family residential mortgage 17,185 7,878 10,411 35,474 559,626 595,100 Other consumer 9 89 5 103 161,723 161,826 Total traditional loans and leases 21,719 8,248 14,140 44,107 3,307,543 3,351,650 PCI loans: Commercial: Commercial and industrial — — — — 1,134 1,134 Commercial real estate — — 951 951 10,576 11,527 SBA 878 — 300 1,178 1,979 3,157 Consumer: Single family residential mortgage 13,262 3,501 4,510 21,273 209,806 231,079 Total PCI loans 14,140 3,501 5,761 23,402 223,495 246,897 Total $ 46,421 $ 11,914 $ 22,596 $ 80,931 $ 3,868,191 $ 3,949,122 Troubled Debt Restructurings 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 the Company’s internal underwriting policy. For the nine months ended September 30, 2015 , there were 15 modifications through bankruptcy discharges. There was one modification through bankruptcy discharge for the three and nine months ended September 30, 2014 . The following table summarizes the pre-modification and post-modification balances of the new TDRs for the three and nine months ended September 30, 2015 : Three Months Ended Nine Months Ended Number of Loans Pre- Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment ($ in thousands) September 30, 2015 Consumer: Single family residential mortgage 12 $ 4,258 $ 4,205 14 $ 5,688 $ 5,635 Other consumer 1 $ 261 $ 260 1 $ 261 $ 260 Total 13 $ 4,519 $ 4,465 15 $ 5,949 $ 5,895 September 30, 2014 Consumer: Single family residential mortgage 1 $ 236 $ 233 1 $ 236 $ 233 Total 1 $ 236 $ 233 1 $ 236 $ 233 For the three and nine months ended September 30, 2015 and 2014 , there were no loans and leases that were modified as TDRs during the past 12 months that had payment defaults during the periods. TDR loans and leases consist of the following as of the dates indicated: September 30, 2015 December 31, 2014 NTM Loans Traditional Loans Total NTM Loans Traditional Loans Total (In thousands) Commercial: Commercial real estate $ — $ — $ — $ — $ — $ — SBA — 8 8 — 6 6 Consumer: Single family residential mortgage 1,028 7,402 8,430 — 4,269 4,269 Green Loans (HELOC) - first liens 2,403 — 2,403 3,442 — 3,442 Green Loans (HELOC) - second liens 554 — 554 294 — 294 Total $ 3,985 $ 7,410 $ 11,395 $ 3,736 $ 4,275 $ 8,011 The Company did not have any commitments to lend to customers with outstanding loans or leases that were classified as TDRs as of September 30, 2015 and December 31, 2014 . Credit Quality Indicators The Company categorizes loans and leases into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company performs historical loss analysis that is combined with a comprehensive loan or lease to value analysis to analyze the associated risks in the current loan and lease portfolio. The Company analyzes loans and leases individually by classifying the loans and leases as to credit risk. This analysis includes all loans and leases delinquent over 60 days and non-homogeneous loans and leases such as commercial and commercial real estate loans and leases. Classification of problem single family residential loans is performed on a monthly basis while analysis of non-homogeneous loans and leases is performed on a quarterly basis. The Company uses the following definitions for risk ratings: Pass : Loans and leases classified as pass are in compliance in all respects with the Bank’s credit policy and regulatory requirements, and do not exhibit any potential or defined weakness as defined under “Special Mention”, “Substandard” or “Doubtful/Loss”. Special Mention : Loans and leases classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or lease or of the Company’s credit position at some future date. Substandard : Loans and leases classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans and leases so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful/Loss : Loans and leases classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Not-Rated : When accrual of income on a pool of purchased credit impaired (PCI) loans with common risk characteristics is appropriate in accordance with ASC 310-30, individual loans in those pools are not risk-rated. The credit criteria evaluated are FICO scores, loan-to-value, delinquency, and actual cash flows versus expected cash flows of the loan pools. Loans and leases not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans and leases. The following table presents the risk categories for loans and leases as of September 30, 2015 : September 30, 2015 Pass Special Mention Substandard Doubtful Not-Rated Total (In thousands) NTM loans: Single family residential mortgage $ 627,232 $ 11,634 $ 3,544 $ — $ — $ 642,410 Green Loans (HELOC) - first liens 94,549 2,329 15,196 — — 112,074 Green Loans (HELOC) - second liens 4,681 — — — — 4,681 Other consumer 113 — — — — 113 Total NTM loans 726,575 13,963 18,740 — — 759,278 Traditional loans and leases: Commercial: Commercial and industrial 803,562 3,188 15,484 — — 822,234 Commercial real estate 666,013 6,282 8,077 — — 680,372 Multi-family 819,118 1,029 3,268 — — 823,415 SBA 48,956 — 906 — — 49,862 Construction 39,475 — — — — 39,475 Lease financing 161,619 — 561 324 — 162,504 Consumer: Single family residential mortgage 862,454 13,477 24,547 — — 900,478 Other consumer 119,620 151 131 — — 119,902 Total traditional loans and leases 3,520,817 24,127 52,974 324 — 3,598,242 PCI loans: Commercial: Commercial and industrial 67 — 389 — — 456 Commercial real estate 5,645 527 4,318 — — 10,490 SBA 999 — 2,124 — — 3,123 Consumer: Single family residential mortgage — — 141 — 358,347 358,488 Total PCI loans 6,711 527 6,972 — 358,347 372,557 Total $ 4,254,103 $ 38,617 $ 78,686 $ 324 $ 358,347 $ 4,730,077 The following table presents the risk categories for loans and leases as of December 31, 2014 : December 31, 2014 Pass Special Mention Substandard Doubtful Not-Rated Total (In thousands) NTM loans: Single family residential mortgage $ 219,747 $ 279 $ 2,280 $ — $ — $ 222,306 Green Loans (HELOC) - first liens 104,640 399 18,138 — — 123,177 Green Loans (HELOC) - second liens 4,770 — 209 — — 4,979 Other consumer 113 — — — — 113 Total NTM loans 329,270 678 20,627 — — 350,575 Traditional loans and leases: Commercial: Commercial and industrial 477,319 117 12,330 — — 489,766 Commercial real estate 943,645 14,281 30,404 — — 988,330 Multi-family 932,438 6,684 16,561 — — 955,683 SBA 32,171 — 827 — — 32,998 |