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: NTM Loans Traditional Loans and Leases Total NTM and Traditional Loans and Leases PCI Loans Total Loans ($ in thousands) December 31, 2016 Commercial: Commercial and industrial $ — $ 1,518,200 $ 1,518,200 $ 4,760 $ 1,522,960 Commercial real estate — 728,777 728,777 1,182 729,959 Multi-family — 1,365,262 1,365,262 — 1,365,262 SBA — 71,168 71,168 2,672 73,840 Construction — 125,100 125,100 — 125,100 Lease financing — 379 379 — 379 Consumer: Single family residential mortgage 794,120 1,091,829 1,885,949 133,212 2,019,161 Green Loans (HELOC) - first liens 87,469 — 87,469 — 87,469 Green Loans (HELOC) - second liens 3,559 — 3,559 — 3,559 Other consumer — 107,063 107,063 — 107,063 Total loans and leases $ 885,148 $ 5,007,778 $ 5,892,926 $ 141,826 $ 6,034,752 Percentage to total loans and leases 14.7 % 83.0 % 97.7 % 2.3 % 100.0 % Allowance for loan and lease losses (40,444 ) Loans and leases receivable, net $ 5,994,308 December 31, 2015 Commercial: Commercial and industrial $ — $ 876,146 $ 876,146 $ 853 $ 876,999 Commercial real estate — 718,108 718,108 9,599 727,707 Multi-family — 904,300 904,300 — 904,300 SBA — 54,657 54,657 3,049 57,706 Construction — 55,289 55,289 — 55,289 Lease financing — 192,424 192,424 — 192,424 Consumer: — Single family residential mortgage 675,960 775,263 1,451,223 699,230 2,150,453 Green Loans (HELOC) - first liens 105,131 — 105,131 — 105,131 Green Loans (HELOC) - second liens 4,704 — 4,704 — 4,704 Other consumer 113 109,568 109,681 — 109,681 Total loans and leases $ 785,908 $ 3,685,755 $ 4,471,663 $ 712,731 $ 5,184,394 Percentage to total loans and leases 15.2 % 71.1 % 86.3 % 13.7 % 100.0 % Allowance for loan and lease losses (35,533 ) Loans and leases receivable, net $ 5,148,861 Non-Traditional Mortgage Loans The Company’s NTM portfolio is comprised of three interest only products: Green Loans, fixed or adjustable rate hybrid interest only rate mortgage (Interest Only) loans and a small number of additional loans with the potential for negative amortization. As of December 31, 2016 and 2015 , the NTM loans totaled $885.1 million , or 14.7 percent of total loans and leases, and $785.9 million , or 15.2 percent of total loans and leases, respectively. The total NTM portfolio increased by $99.2 million , or 12.6 percent , during the year ended December 31, 2016 . The following table presents the composition of the NTM portfolio as of the dates indicated: December 31, 2016 2015 Count Amount Percent Count Amount Percent ($ in thousands) Green Loans (HELOC) - first liens 107 $ 87,469 9.9 % 121 $ 105,131 13.4 % Interest only - first liens 522 784,364 88.6 % 521 664,358 84.4 % Negative amortization 22 9,756 1.1 % 30 11,602 1.5 % Total NTM - first liens 651 881,589 99.6 % 672 781,091 99.3 % Green Loans (HELOC) - second liens 12 3,559 0.4 % 16 4,704 0.6 % Interest only - second liens — — — % 1 113 0.1 % Total NTM - second liens 12 3,559 0.4 % 17 4,817 0.7 % Total NTM loans 663 885,148 100.0 % 689 785,908 100.0 % Total loans and leases $ 6,034,752 $ 5,184,394 Percentage to total loans and leases 14.7 % 15.2 % 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 December 31, 2016 and 2015 , Green Loans totaled $91.0 million and $109.8 million , respectively. At December 31, 2016 and 2015 , $0 and $10.1 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 LTV 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. At December 31, 2016 and 2015 , interest only loans totaled $784.4 million and $664.5 million , respectively. At December 31, 2016 and 2015 , $467 thousand and $4.6 million of the interest only loans were non-performing, respectively. Loans with the Potential for Negative Amortization Negative amortization loans totaled $9.8 million and $11.6 million at December 31, 2016 and 2015 , respectively. The Company discontinued origination of negative amortization loans in 2007. At December 31, 2016 and 2015 , no ne 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 LTV ratios. Risk Management of Non-Traditional Mortgages The Company has determined that significant performance indicators for NTMs are LTV ratios and FICO scores. Accordingly, the Company manages credit risk in the NTM portfolio through periodic review of the loan portfolio that includes refreshing FICO scores on the Green Loans and HELOCs, as needed in conjunction with portfolio management, and ordering third party AVMs. 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 score of 10 percent or more and/or a resulting FICO score 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 periodic 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 score 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 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. Individual loans are monitored for possible downgrading of risk rating. Non-Traditional Mortgage Performance Indicators The following table presents the Company’s NTM Green Loans first lien portfolio at December 31, 2016 by FICO scores that were obtained during the quarter ended December 31, 2016 , comparing to the FICO scores for those same loans that were obtained during the quarter ended December 31, 2015 : December 31, 2016 By FICO Scores Obtained During the Quarter Ended December 31, 2016 By FICO Scores Obtained Change Count Amount Percent Count Amount Percent Count Amount Percent ($ in thousands) FICO Score 800+ 16 $ 9,586 11.0 % 20 $ 13,831 15.8 % (4 ) $ (4,245 ) (4.8 )% 700-799 55 43,337 49.5 % 55 44,310 50.7 % — (973 ) (1.2 )% 600-699 28 27,327 31.2 % 21 21,039 24.1 % 7 6,288 7.1 % <600 1 1,800 2.1 % 3 2,573 2.9 % (2 ) (773 ) (0.8 )% No FICO score 7 5,419 6.2 % 8 5,716 6.5 % (1 ) (297 ) (0.3 )% Totals 107 $ 87,469 100.0 % 107 $ 87,469 100.0 % — $ — — % Loan to Value Ratio LTV ratio represents estimated current loan to value ratio, determined by dividing current unpaid principal balance by latest estimated property value received per the Company policy. The table below represents the Company’s single family residential NTM first lien portfolio by LTV ratios 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) December 31, 2016 < 61 45 $ 39,105 44.7 % 196 $ 336,744 42.9 % 16 $ 7,043 72.2 % 257 $ 382,892 43.4 % 61-80 52 41,732 47.7 % 306 434,269 55.4 % 6 2,713 27.8 % 364 478,714 54.3 % 81-100 10 6,632 7.6 % 8 8,828 1.1 % — — — % 18 15,460 1.8 % > 100 — — — % 12 4,523 0.6 % — — — % 12 4,523 0.5 % Total 107 $ 87,469 100.0 % 522 $ 784,364 100.0 % 22 $ 9,756 100.0 % 651 $ 881,589 100.0 % December 31, 2015 < 61 70 $ 51,221 48.7 % 141 $ 208,120 31.3 % 17 $ 5,271 45.4 % 228 $ 264,612 33.9 % 61-80 33 42,075 40.0 % 291 408,662 61.6 % 12 6,106 52.7 % 336 456,843 58.4 % 81-100 12 6,836 6.5 % 37 30,167 4.5 % 1 225 1.9 % 50 37,228 4.8 % > 100 6 4,999 4.8 % 52 17,409 2.6 % — — — % 58 22,408 2.9 % Total 121 $ 105,131 100.0 % 521 $ 664,358 100.0 % 30 $ 11,602 100.0 % 672 $ 781,091 100.0 % The decrease in Green Loans was due to reductions in principal balance and payoffs and the increase in interest only was due to increased originations. 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 ALLL, and partial or full charge-off. The Company maintains the ALLL 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. At December 31, 2016 and 2015 , the reserve for unfunded loan commitments was $2.4 million and $2.1 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 loan and lease 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 appropriate to absorb losses in the loan and lease portfolio. The determination of the amount of the ALLL 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 considers known relevant internal and external factors that affect collectability when determining the appropriate level for the ALLL. Additions to the ALLL 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 ALLL. Recoveries of previously charged off amounts, if any, are credited to the ALLL. The following table presents a summary of activity in the ALLL for the periods indicated: Year Ended December 31, 2016 2015 2014 (In thousands) Balance at beginning of year $ 35,533 $ 29,480 $ 18,805 Loans and leases charged-off (2,618 ) (1,942 ) (923 ) Recoveries of loans and leases previously charged off 2,258 526 1,235 Transfer of loans to held-for-sale — — (613 ) Provision for loan and lease losses 5,271 7,469 10,976 Balance at end of year $ 40,444 $ 35,533 $ 29,480 The following table presents the activity and balance in the ALLL 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 year ended December 31, 2016 : Commercial and Industrial Commercial Real Estate Multi- family SBA Construction Lease Financing Single Family Residential Mortgage Other Consumer Total (In thousands) ALLL: Balance at December 31, 2015 $ 5,850 $ 4,252 $ 6,012 $ 683 $ 1,530 $ 2,195 $ 13,854 $ 1,157 $ 35,533 Charge-offs (166 ) (414 ) — — — (974 ) (1,057 ) (7 ) (2,618 ) Recoveries 225 807 169 500 — 283 248 26 2,258 Provision 1,675 822 5,195 (244 ) 485 (1,498 ) (970 ) (194 ) 5,271 Balance at December 31, 2016 $ 7,584 $ 5,467 $ 11,376 $ 939 $ 2,015 $ 6 $ 12,075 $ 982 $ 40,444 Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ 243 $ — $ 243 Collectively evaluated for impairment 7,584 5,462 11,376 920 2,015 6 11,752 982 40,097 Acquired with deteriorated credit quality — 5 — 19 — — 80 — 104 Total ending ALLL $ 7,584 $ 5,467 $ 11,376 $ 939 $ 2,015 $ 6 $ 12,075 $ 982 $ 40,444 Loans and leases: Individually evaluated for impairment $ 2,429 $ — $ — $ — $ — $ — $ 10,629 $ 294 $ 13,352 Collectively evaluated for impairment 1,515,771 728,777 1,365,262 71,168 125,100 379 1,962,789 110,328 5,879,574 Acquired with deteriorated credit quality 4,760 1,182 — 2,672 — — 133,212 — 141,826 Total ending loans and leases $ 1,522,960 $ 729,959 $ 1,365,262 $ 73,840 $ 125,100 $ 379 $ 2,106,630 $ 110,622 $ 6,034,752 The following table presents the activity and balance in the ALLL 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 year ended December 31, 2015 : Commercial and Industrial Commercial Real Estate Multi- family SBA Construction Lease Financing Single Family Residential Mortgage Other Consumer Total (In thousands) ALLL: Balance at December 31, 2014 $ 6,910 $ 3,840 $ 7,179 $ 335 $ 846 $ 873 $ 7,192 $ 2,305 $ 29,480 Charge-offs (33 ) (259 ) — (106 ) — (1,541 ) — (3 ) (1,942 ) Recoveries 8 132 3 288 — 79 — 16 526 Provision (1,035 ) 539 (1,170 ) 166 684 2,784 6,662 (1,161 ) 7,469 Balance at December 31, 2015 $ 5,850 $ 4,252 $ 6,012 $ 683 $ 1,530 $ 2,195 $ 13,854 $ 1,157 $ 35,533 Individually evaluated for impairment $ 38 $ — $ — $ — $ — $ — $ 331 $ — $ 369 Collectively evaluated for impairment 5,754 4,140 6,012 664 1,530 2,195 13,506 1,157 34,958 Acquired with deteriorated credit quality 58 112 — 19 — — 17 — 206 Total ending ALLL $ 5,850 $ 4,252 $ 6,012 $ 683 $ 1,530 $ 2,195 $ 13,854 $ 1,157 $ 35,533 Loans and leases: Individually evaluated for impairment $ 7,159 $ 312 $ — $ 3 $ — $ — $ 26,256 $ 553 $ 34,283 Collectively evaluated for impairment 868,987 717,796 904,300 54,654 55,289 192,424 1,530,098 113,832 4,437,380 Acquired with deteriorated credit quality 853 9,599 — 3,049 — — 699,230 — 712,731 Total ending loans and leases $ 876,999 $ 727,707 $ 904,300 $ 57,706 $ 55,289 $ 192,424 $ 2,255,584 $ 114,385 $ 5,184,394 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. December 31, 2016 2015 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 $ 2,478 $ 2,429 $ — $ 6,244 $ 6,086 $ — Commercial real estate — — — 1,200 312 — SBA — — — 22 3 — Consumer: Single family residential mortgage 8,865 8,887 — 24,224 22,671 — Other consumer 294 294 — 553 553 — With an allowance recorded: Commercial: Commercial and industrial — — — 1,072 1,073 38 Consumer: Single family residential mortgage 1,772 1,742 243 3,575 3,585 331 Total $ 13,409 $ 13,352 $ 243 $ 36,890 $ 34,283 $ 369 The following table presents information on impaired loans and leases, disaggregated by class, for the periods indicated: Year Ended December 31, 2016 2015 2014 Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized Average Interest Cash Basis Average Interest Cash Basis (In thousands) Commercial: Commercial and industrial $ 3,490 $ 183 $ 208 $ 6,750 $ 305 $ 302 $ 4,166 $ 92 $ 133 Commercial real estate 148 24 24 353 37 37 2,865 110 125 Multi-family — — — 395 13 15 1,653 43 43 SBA — — — 7 2 — 3 — — Consumer: Single family residential mortgage 27,150 862 835 25,093 869 885 16,285 390 405 Other consumer 294 8 9 424 12 13 580 25 24 Total $ 31,081 $ 1,077 $ 1,076 $ 33,022 $ 1,238 $ 1,252 $ 25,552 $ 660 $ 730 Non-accrual Loans and Leases The following table presents non-accrual loans and leases, excluding PCI loans, and loans past due 90 days or more and still accruing as of the dates indicated: December 31, 2016 2015 NTM Traditional 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 2016 and 2015 467 14,475 14,942 14,703 30,426 45,129 The following table presents the composition of nonaccrual loans and leases, excluding PCI loans, as of the dates indicated: December 31, 2016 2015 NTM Loans Traditional Total NTM Loans Traditional Total (In thousands) Commercial: Commercial and industrial $ — $ 3,544 $ 3,544 $ — $ 4,383 $ 4,383 Commercial real estate — — — — 1,552 1,552 Multi-family — — — — 642 642 SBA — 619 619 — 422 422 Lease financing — 109 109 — 598 598 Consumer: Single family residential mortgage 467 9,820 10,287 4,615 22,615 27,230 Green Loans (HELOC) - first liens — — — 10,088 — 10,088 Other consumer — 383 383 — 214 214 Total nonaccrual loans and leases $ 467 $ 14,475 $ 14,942 $ 14,703 $ 30,426 $ 45,129 Loans in Process of Foreclosure At December 31, 2016 and 2015, the Company's SFR mortgage loans of $2.2 million and $5.6 million , respectively, were in the process of foreclosure. Past Due Loans and Leases The following table presents the aging of the recorded investment in past due loans and leases as of December 31, 2016, excluding accrued interest receivable (which is not considered to be material), by class of loans and leases: December 31, 2016 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 $ 4,193 $ — $ 467 $ 4,660 $ 789,460 $ 794,120 Green Loans (HELOC) - first liens — — — — 87,469 87,469 Green Loans (HELOC) - second liens — — — — 3,559 3,559 Other consumer — — — — — — Total NTM loans 4,193 — 467 4,660 880,488 885,148 Traditional loans and leases: Commercial: Commercial and industrial 412 463 3,385 4,260 1,513,940 1,518,200 Commercial real estate — — — — 728,777 728,777 Multi-family — — — — 1,365,262 1,365,262 SBA 15 2 482 499 70,669 71,168 Construction 1,529 — — 1,529 123,571 125,100 Lease financing — — 109 109 270 379 Consumer: Single family residential mortgage 11,225 1,345 9,393 21,963 1,069,866 1,091,829 Other consumer 10,023 933 382 11,338 95,725 107,063 Total traditional loans and leases 23,204 2,743 13,751 39,698 4,968,080 5,007,778 PCI loans: Commercial: Commercial and industrial — — 156 156 4,604 4,760 Commercial real estate — — — — 1,182 1,182 SBA 300 232 328 860 1,812 2,672 Consumer: Single family residential mortgage 10,483 4,063 2,093 16,639 116,573 133,212 Total PCI loans 10,783 4,295 2,577 17,655 124,171 141,826 Total loans and leases $ 38,180 $ 7,038 $ 16,795 $ 62,013 $ 5,972,739 $ 6,034,752 The following table presents the aging of the recorded investment in past due loans and leases as of December 31, 2015, excluding accrued interest receivable (which is not considered to be material), by class of loans and leases: December 31, 2015 30 - 59 Days 60 - 89 Days Greater Total Current Total (In thousands) NTM loans: Single family residential mortgage $ 3,935 $ — $ 3,447 $ 7,382 $ 668,578 $ 675,960 Green Loans (HELOC) - first liens 7,913 — — 7,913 97,218 105,131 Green Loans (HELOC) - second liens — — — — 4,704 4,704 Other consumer — — — — 113 113 Total NTM loans 11,848 — 3,447 15,295 770,613 785,908 Traditional loans and leases: Commercial: Commercial and industrial 23 4,984 544 5,551 870,595 876,146 Commercial real estate — — 911 911 717,197 718,108 Multi-family 223 — 432 655 903,645 904,300 SBA — 162 173 335 54,322 54,657 Construction — — — — 55,289 55,289 Lease financing 2,005 1,041 394 3,440 188,984 192,424 Consumer: Single family residential mortgage 15,762 3,887 17,226 36,875 738,388 775,263 Other consumer — 11 211 222 109,346 109,568 Total traditional loans and leases 18,013 10,085 19,891 47,989 3,637,766 3,685,755 PCI loans: Commercial: Commercial and industrial — — 176 176 677 853 Commercial real estate — — 1,425 1,425 8,174 9,599 SBA 386 163 621 1,170 1,879 3,049 Consumer: Single family residential mortgage 33,507 6,235 4,672 44,414 654,816 699,230 Total PCI loans 33,893 6,398 6,894 47,185 665,546 712,731 Total loans and leases $ 63,754 $ 16,483 $ 30,232 $ 110,469 $ 5,073,925 $ 5,184,394 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. The following table summarizes the pre-modification and post-modification balances of the new TDRs for the periods indicated: Year Ended December 31, 2016 2015 2014 Number of Loans Pre- Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Pre- Post-Modification Number of Pre- Post-Modification ($ in thousands) Consumer: Single family residential mortgage 42 $ 10,278 $ 10,273 13 $ 4,571 $ 4,493 5 $ 1,245 $ 1,229 Other consumer — — — 1 261 259 1 294 294 Total 42 $ 10,278 $ 10,273 14 4,832 $ 4,752 $ 6 $ 1,539 $ 1,523 The following table summarizes the TDRs by modification type for the periods indicated: Modification Type Change in Principal Payments and Interest Rates Change in Principal Payments Change in Interest Rates Chapter 7 Bankruptcy Other Total Count Amount Count Amount Count Amount Count Amount Count Amount Count Amount ($ in thousands) Year ended December 31, 2016 Single family residential mortgage 34 $ 8,622 4 $ 780 2 $ 146 1 $ 519 1 $ 206 42 $ 10,273 Total 34 $ 8,622 4 $ 780 2 $ 146 1 $ 519 1 $ 206 42 $ 10,273 Year ended December 31, 2015 Single family residential mortgage — $ — — $ — — $ — 13 $ 4,493 — $ — 13 $ 4,493 Other consumer — — — — — — 1 259 — — 1 259 Total — $ — — $ — — $ — 14 $ 4,752 — $ — 14 $ 4,752 Year ended December 31, 2014 Single family residential mortgage — $ — — $ — — $ — 5 $ 1,229 — $ — 5 $ 1,229 Other consumer — — — — — — 1 294 — — 1 294 Total — $ — — $ — — $ — 6 $ 1,523 — $ — 6 $ 1,523 For the years ended December 31, 2016 , 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. Troubled debt restructured loans and leases consist of the following as of the dates indicated: December 31, 2016 2015 NTM Loans Traditional Loans Total NTM Traditional Loans Total (In thousands) Commercial: SBA $ — $ — $ — $ — $ 3 $ 3 Consumer: Single family residential mortgage 853 1,440 2,293 1,015 5,841 6,856 Green Loans (HELOC) - first liens 2,240 — 2,240 2,400 — 2,400 Green Loans (HELOC) - second liens 294 — 294 553 — 553 Total $ 3,387 $ 1,440 $ 4,827 $ 3,968 $ 5,844 $ 9,812 The Company did not have any commitments to lend to customers with outstanding loans or leases that were classified as troubled debt restructurings as of December 31, 2016 and 2015 . 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.” 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 : 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 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, LTV ratios, 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 total loans and leases as of December 31, 2016: December 31, 2016 Pass Special Mention Substandard Doubtful Not-Rated Total (In thousands) NTM loans: Single family residential mortgage $ 792,179 $ 1,474 $ 467 $ — $ — $ 794,120 Green Loans (HELOC) - first liens 85,460 2,009 — — — 87,469 Green Loans (HELOC) - second liens 3,559 — — — — 3,559 Other consumer — — — — — — Total NTM loans 881,198 3,483 467 — — 885,148 Traditional loans and leases: Commercial: Commercial and industrial 1,508,636 844 8,642 78 — 1,518,200 Commercial real estate 725,861 1,350 1,566 — — 728,777 Multi-family 1,365,262 — — — — 1,365,262 SBA 70,508 — 660 — — 71,168 Construction 123,571 1,529 — — — 125,100 Lease financing 270 — 109 — — 379 Consumer: Single family residential mortgage 1,080,664 950 10,215 — — 1,091,829 Other consumer 106,632 48 383 — — 107,063 Total traditional loans and leases 4,981,404 4,721 21,575 78 — 5,007,778 PCI loans: Commercial: Commercial and industrial — 4,056 704 — — 4,760 Commercial real estate 1,182 — — — — 1,182 SBA 1,268 — 1,404 — — 2,672 Consumer: Single family residential mortgage — — — — 133,212 133,212 Total PCI loans 2,450 4,056 2,108 — 133,212 141,826 Total loans and leases $ 5,865,052 $ 12,260 $ 24,150 $ 78 $ 133,212 $ 6,034,752 The following table presents the risk categories for total loans and leases as of December 31, 2015: December 31, 2015 Pass Special Mention Substandard Doubtful Not-Rated Total (In thousands) NTM loans: Single family residential mortgage $ 660,683 $ 11,731 $ 3,546 $ — $ — $ 675,960 Green Loans (HELOC) - first liens 87,967 2,329 14,835 — — 105,131 Green Loans (HELOC) - second liens 4,704 — — — — 4,704 Other consumer 113 — — — — 113 Total NTM loans 753,467 14,060 18,381 — — 785,908 Traditional loans and leases: Commercial: Commercial and industrial 860,993 3,175 11,978 — — 876,146 Commercial real estate 707,238 4,788 6,082 — — 718,108 Multi-family 901,578 403 2,319 — — 904,300 SBA 53,078 1,132 447 — — 54,657 Construction 55,289 — — — — 55,289 Lease financing 190,976 — 1,448 — — 192,424 Consumer: Single family residential mortgage 738,196 12,301 24,766 — — 775,263 Other consumer 109,206 148 214 — — 109,568 Total traditional loans and leases 3,616,554 21,947 47,254 — — 3,685,755 PCI loans: Commercial: Commercial and industrial 54 — 799 — — 853 Commercial real estate 5,621 523 3,455 — — 9,599 SBA 988 — 2,061 — — 3,049 Consumer: Single family residential mortgage — — 139 — 699,091 699,230 Total PCI loans 6,663 523 6,454 — 699,091 712,731 Total loans and leases $ 4,376,684 $ 36,530 $ 72,089 $ — $ 699,091 $ 5,184,394 Purchased Credit Impaired Loans During the years ended December 31, 2016 , 2015 , and 2014 , the Company acquired loans through business acquisitions and purchases of loan pools for which there was, at acquisition, evidence of deterioration of credit quality subsequent to origination and it was probable, at acquisition, that all contractually required payments would not be collected. The following table presents the outstanding balance and carrying amount of those loans as of the dates indicated: December 31, 2016 2015 Outstanding Balance Carrying Amount Outstanding Balance Carrying Amount (In thousands) Commercial: Commercial and industrial $ 5,029 $ 4,760 $ 1,001 $ 853 Commercial real estate 1,613 1,182 11,255 9,599 SBA 3,771 2,672 4,033 3,049 Consumer: Single family residential mortgage 153,867 133,212 764,814 699,230 Total $ 164,280 $ 141,826 $ 781,103 $ 712,731 The following table presents a summary of accretable yield, or income expected to be collected for the periods indicated: Year Ended December 31, 2016 2015 2014 (In thousands) Balance at beginning of year $ 205,549 $ 92,301 $ 126,336 New loans or leases purchased 23,568 138,046 — Accretion of income (34,616 ) (23,441 ) (25,335 ) Increase (decrease) in expected cash flows (10,650 ) 19,852 29,267 Disposals (142,670 ) (21,209 ) (37,967 ) Balance at end of year $ 41,181 $ 205,549 $ 92,301 The decrease in expected cash flows for the year ended December 31, 2016 was not related to credit quality of PCI loans. The following table presents loans purchased and acquired through business acquisitions at acquisition dates for which it was probable at acquisition that all contractually required payments would not be collected f |