| Loans Receivable and Allowance for Loan Losses | LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES Because the period to submit losses for non-single family loans covered under the FDIC loss sharing agreements expired in third quarter 2015, and the balance of covered loans at December 31, 2015 and 2014 was insignificant to Customers' total loan portfolio, the disaggregation between covered and non-covered loans is no longer presented in the disclosures that follow. Additional disaggregation of the commercial real estate loan portfolio between owner occupied and non-owner occupied is presented. Prior period amounts have been reclassified to conform with the current period presentation. The following table presents loans receivable as of December 31, 2015 and 2014 . December 31, 2015 2014 (amounts in thousands) Commercial: Multi-family $ 2,909,439 $ 2,208,405 Commercial and industrial (including owner occupied commercial real estate) 1,111,400 785,669 Commercial real estate non-owner occupied 956,255 839,310 Construction 87,240 49,718 Total commercial loans 5,064,334 3,883,102 Consumer: Residential real estate 271,613 297,395 Manufactured housing 113,490 126,731 Other 3,708 4,433 Total consumer loans 388,811 428,559 Total loans receivable 5,453,145 4,311,661 Deferred costs and unamortized premiums, net 334 512 Allowance for loan losses (35,647 ) (30,932 ) Loans receivable, net of allowance for loan losses $ 5,417,832 $ 4,281,241 The following tables summarize loans receivable by loan type and performance status as of December 31, 2015 and 2014 : December 31, 2015 30-89 Days Past Due (1) 90 Or More Days Past Due (1) Total Past Due Still Accruing (1) Non- Accrual Current (2) Purchased- Credit- Impaired Loans (3) Total Loans (4) (amounts in thousands) Multi-family $ — $ — $ — $ — $ 2,905,789 $ 3,650 $ 2,909,439 Commercial and industrial 39 — 39 1,973 799,595 1,552 803,159 Commercial real estate - owner occupied 268 — 268 2,700 292,312 12,961 308,241 Commercial real estate - non-owner occupied 1,997 — 1,997 1,307 940,895 12,056 956,255 Construction — — — — 87,006 234 87,240 Residential real estate 2,986 — 2,986 2,202 257,984 8,441 271,613 Manufactured housing (5) 3,752 2,805 6,557 2,449 101,132 3,352 113,490 Other consumer 107 — 107 140 3,227 234 3,708 Total $ 9,149 $ 2,805 $ 11,954 $ 10,771 $ 5,387,940 $ 42,480 $ 5,453,145 December 31, 2014 30-89 Days Past Due (1) 90 Or More Days Past Due (1) Total Past Due Still Accruing (1) Non- Accrual Current (2) Purchased- Credit- Impaired Loans (3) Total Loans (4) (amounts in thousands) Multi-family $ — $ — $ — $ — $ 2,204,059 $ 4,346 $ 2,208,405 Commercial and industrial 884 — 884 2,513 543,245 3,293 549,935 Commercial real estate - owner occupied — — — 2,514 217,187 16,033 235,734 Commercial real estate - non-owner occupied — — — 1,460 822,046 15,804 839,310 Construction — — — 2,325 44,483 2,910 49,718 Residential real estate 1,226 — 1,226 1,855 284,347 9,967 297,395 Manufactured housing (5) 6,324 4,388 10,712 931 111,072 4,016 126,731 Other consumer 147 — 147 135 3,903 248 4,433 Total $ 8,581 $ 4,388 $ 12,969 $ 11,733 $ 4,230,342 $ 56,617 $ 4,311,661 (1) Includes past due loans that are accruing interest because collection is considered probable. (2) Loans where next payment due is less than 30 days from the report date. (3) Purchased-credit-impaired loans aggregated into a pool are accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, and the past due status of the pools, or that of the individual loans within the pools, is not meaningful. Because of the credit impaired nature of the loans, the loans are recorded at a discount reflecting estimated future cash flows and the Bank recognizes interest income on each pool of loans reflecting the estimated yield and passage of time. Such loans are considered to be performing. Purchased-credit-impaired loans that are not in pools accrete interest when the timing and amount of their expected cash flows are reasonably estimable, and are reported as performing loans. (4) Amounts exclude deferred costs and fees, unamortized premiums and discounts, and the allowance for loan losses. (5) Manufactured housing loans purchased in 2010 are supported by cash reserves held at the Bank that are used to fund past-due payments when the loan becomes 90 days or more delinquent. Subsequent purchases are subject to varying provisions in the event of borrowers’ delinquencies. Allowance for Loan Losses and the FDIC Loss Sharing Receivable and Clawback Liability Losses incurred on covered loans are eligible for partial reimbursement by the FDIC. Subsequent to the purchase date, the expected cash flows on the covered loans are subject to evaluation. Decreases in the present value of expected cash flows on the covered loans are recognized by increasing the allowance for loan losses with a related charge to the provision for loan losses. At the same time, the FDIC indemnification asset is increased reflecting an estimated future collection from the FDIC, which is recorded as a reduction to the provision for loan losses. If the expected cash flows on the covered loans increase such that a previously recorded impairment can be reversed, the Bank records a reduction in the allowance for loan losses (with a related credit to the provision for loan losses) accompanied by a reduction in the FDIC receivable balance (with a related charge to the provision for loan losses). Increases in expected cash flows on covered loans and decreases in expected cash flows of the FDIC loss sharing receivable, when there are no previously recorded impairments, are considered together and recognized over the remaining life of the loans as interest income. Decreases in the valuations of other real estate owned covered by the loss sharing agreements are recorded net of the estimated FDIC receivable as an increase to other real estate owned expense (a component of non-interest expense). The FDIC loss sharing receivable balance will be reduced through a charge to the provision for loan losses, with no offsetting reduction to the allowance for loan losses, as the period to submit losses under the FDIC loss sharing arrangements approaches expiration and the estimated losses in the covered loans have not yet emerged or been realized in a final disposition event. The period to submit losses under the FDIC loss sharing arrangements for non-single family loans expired in third quarter 2015. The period to submit losses under the FDIC loss sharing arrangements for single family loans expires in third quarter 2017. The final maturity of the FDIC loss sharing arrangements occurs in third quarter 2020. As of December 2015 and 2014, loans covered under loss sharing agreements with the FDIC were $13.8 million and $42.2 million , respectively. As part of the FDIC loss sharing arrangements, Customers also assumed a liability to be paid within 45 days subsequent to the maturity or termination of the loss sharing arrangements that is contingent upon actual losses incurred over the life of the arrangements relative to expected losses and the consideration paid upon acquisition of the failed institutions. Due to cash received on the covered assets in excess of the original expectations of the FDIC, the Bank anticipates that it will be required to pay the FDIC at the end of its loss sharing arrangements. As of December 31, 2015, a clawback liability of $2.3 million has been recorded. To the extent actual losses on the covered assets are less than estimated losses, the clawback liability will increase. To the extent actual losses on the covered assets are more than the estimated losses, the clawback liability will decrease. As of December 31, 2015, Customers expects to collect $0.2 million from the FDIC for estimated losses and reimbursement of external costs, such as legal fees, real estate taxes and appraisal expenses, and estimated the clawback liability due to the FDIC in 2020 at $2.3 million . The net amount of $2.1 million is included in "Accrued interest payable and other liabilities" in the accompanying consolidated balance sheet. The following table presents changes in the allowance for loans losses and the FDIC loss sharing receivable, including the effect of the estimated clawback liability for the years ended December 31, 2015 , 2014 and 2013 . Allowance for Loan Losses For The Year Ended December 31, 2015 2014 2013 (amounts in thousands) Beginning Balance $ 30,932 $ 23,998 $ 25,837 Provision for loan losses (1) 16,694 10,058 5,055 Charge-offs (13,412 ) (4,947 ) (7,338 ) Recoveries 1,433 1,823 444 Ending Balance $ 35,647 $ 30,932 $ 23,998 FDIC Loss Sharing Receivable For The Year Ended December 31, 2015 2014 2013 (amounts in thousands) Beginning Balance $ 2,320 $ 10,046 $ 12,343 Increased (decreased) estimated cash flows (2) (3,872 ) (4,689 ) 2,819 Increased estimated cash flows from covered OREO (a) 3,138 — — Other activity, net (b) 248 2,409 1,610 Cash receipts from FDIC (3,917 ) (5,446 ) (6,726 ) Ending Balance $ (2,083 ) $ 2,320 $ 10,046 (1) Provision for loan losses $ 16,694 $ 10,058 $ 5,055 (2) Effect attributable to FDIC loss share arrangements 3,872 4,689 (2,819 ) Net amount reported as provision for loan losses $ 20,566 $ 14,747 $ 2,236 (a) Recorded as a reduction to Other Real Estate Owned expense (a component of non-interest expense). (b) Includes external costs, such as legal fees, real estate taxes and appraisal expenses, that qualify for reimbursement under loss share arrangements. Loans Individually Evaluated for Impairment The following tables present the recorded investment (net of charge-offs), unpaid principal balance, and related allowance by loan type for loans that are individually evaluated for impairment as of December 31, 2015 and 2014 and the average recorded investment and interest income recognized for the years ended December 31, 2015 and 2014. Purchased-credit-impaired loans are considered to be performing and are not included in the tables below. December 31, 2015 Year Ended December 31, 2015 Recorded Investment Net of Charge Offs Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (amounts in thousands) With no related allowance recorded: Multi-family $ 661 $ 661 $ — $ 267 $ 24 Commercial and industrial 12,056 13,028 — 8,543 891 Commercial real estate - owner occupied 8,317 8,317 — 6,526 454 Commercial real estate - non-owner occupied 4,276 4,276 — 6,605 648 Construction — — — 749 — Other consumer 48 48 — 42 1 Residential real estate 4,331 4,331 — 2,254 86 Manufactured housing 8,300 8,300 — 5,433 368 With an allowance recorded: Commercial and industrial 5,565 5,914 1,990 9,331 191 Commercial real estate - owner occupied 12 12 1 15 1 Commercial real estate - non-owner occupied 555 555 148 817 12 Construction — — — — — Other consumer 92 92 50 83 — Residential real estate 395 395 84 426 2 Total $ 44,608 $ 45,929 $ 2,273 $ 41,091 $ 2,678 December 31, 2014 Year Ended December 31, 2014 Recorded Investment Net of Charge Offs Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (amounts in thousands) With no related allowance recorded: Commercial and industrial $ 14,600 $ 16,122 $ — $ 13,329 $ 674 Commercial real estate - owner occupied 12,599 12,744 — 10,204 504 Commercial real estate - non-owner occupied 5,602 5,602 7,770 383 Construction 2,325 2,325 — 2,415 41 Other consumer 21 21 — 26 — Residential real estate 3,675 5,917 — 4,145 87 Manufactured housing 2,588 2,588 — 2,588 128 With an allowance recorded: Commercial and industrial 1,923 1,923 857 1,725 28 Commercial real estate - owner occupied 750 750 95 1,184 22 Commercial real estate - non-owner occupied 571 571 170 902 17 Construction — — — 851 — Other consumer 114 114 32 82 1 Residential real estate 365 365 188 296 1 Total $ 45,133 $ 49,042 $ 1,342 $ 45,517 $ 1,886 Troubled Debt Restructurings At December 31, 2015 , 2014 and 2013 there were $11.4 million , $5.0 million , $4.6 million respectively, in loans categorized as troubled debt restructurings (“TDRs”). TDRs are reported as impaired loans in the calendar year of their restructuring and are evaluated to determine whether they should be placed on non-accrual status. In subsequent years, a TDR may be returned to accrual status if the borrower satisfies a minimum six -month performance requirement; however, it will remain classified as impaired. Generally, the Bank requires sustained performance for nine months before returning a TDR to accrual status. Modification of purchased-credit-impaired loans that are accounted for within loan pools in accordance with the accounting standards for purchased-credit-impaired loans do not result in the removal of these loans from the pool even if modifications would otherwise be considered a TDR. Accordingly, as each pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, modifications of loans within such pools are not considered TDRs. The following is an analysis of loans modified in a troubled debt restructuring by type of concession for the years ended December 31, 2015 , 2014 and 2013. There were no modifications that involved forgiveness of debt. December 31, 2015 Number Recorded (dollars in thousands) Extended under forbearance 1 $ 183 Interest-rate reductions 161 7,274 Total 162 $ 7,457 December 31, 2014 Number Recorded (dollars in thousands) Extended under forbearance 11 $ 460 Interest rate reductions 10 620 Total 21 $ 1,080 December 31, 2013 Number Recorded (dollars in thousands) Extended under forbearance — $ — Interest rate reductions 14 1,238 Total 14 $ 1,238 The following table provides, by loan type, the number of loans modified in troubled debt restructurings and the related recorded investment during the years ended December 31, 2015, 2014 and 2013. December 31, 2015 Number of Loans Recorded Investment (dollars in thousands) Commercial and industrial 3 $ 791 Commercial real estate non-owner occupied 1 211 Manufactured housing 156 6,251 Residential real estate 2 204 Total loans 162 $ 7,457 December 31, 2014 Number of Loans Recorded Investment (dollars in thousands) Manufactured housing 10 $ 620 Home equity / other 11 460 Total loans 21 $ 1,080 December 31, 2013 Number Recorded (dollars in thousands) Manufactured housing 13 $ 1,206 Home equity / other 1 32 Total loans 14 $ 1,238 As of December 31, 2015 , 2014 , 2013, there were no commitments to lend additional funds to debtors whose terms have been modified in TDRs. For the years ended December 31, 2015 , 2014 and 2013 , the recorded investment of loans determined to be TDRs was $7.5 million , $1.1 million and $1.2 million respectively, both before and after restructuring. During the year ending December 31, 2015 , thirty-six TDR loans defaulted with a recorded investment of $2.5 million . During the year ending December 31, 2014 , six TDR loans defaulted with a recorded investment of $0.4 million . During the year ended December 31, 2013, five TDR loans defaulted with a recorded investment of $0.4 million . For the year ended 2015, $1.8 million of the $2.5 million defaulted loans are subject to a cash reserve. Loans modified in troubled debt restructurings are evaluated for impairment. The nature and extent of impairment of TDRs, including those which have experienced a subsequent default, is considered in the determination of an appropriate level of allowance for credit losses. There were three specific allowances resulting from TDR modifications during 2015, totaling $0.2 million for 2 commercial and industrial loans, and $0.1 million for one commercial real estate non-owner occupied loan. There were no specific allowances resulting from TDR modifications during 2014 or 2013. Credit Quality Indicators Commercial and industrial, commercial real estate, multi-family, residential real estate and construction loans are based on an internally assigned risk rating system which are assigned at loan origination and reviewed on a periodic or “as needed” basis. Other consumer and manufactured housing loans are evaluated based on the payment activity of the loan. To facilitate the monitoring of credit quality within commercial and industrial, commercial real estate, construction, multi-family and residential real estate loans, and for purposes of analyzing historical loss rates used in the determination of the allowance for loan losses for the respective portfolio class, the Bank utilizes the following categories of risk ratings: pass/satisfactory (includes risk rating 1 through 6), special mention, substandard, doubtful, and loss. The risk rating categories, which are derived from standard regulatory rating definitions, are assigned upon initial approval of credit to borrowers and updated periodically thereafter. Pass/satisfactory ratings, which are assigned to those borrowers who do not have identified potential or well-defined weaknesses and for whom there is a high likelihood of orderly repayment, are updated periodically based on the size and credit characteristics of the borrower. All other categories are updated on a quarterly basis during the month preceding the end of the calendar quarter. Certain consumer loans are not assigned a risk rating. While assigning risk ratings involves judgment, the risk-rating process allows management to identify riskier credits in a timely manner and allocate the appropriate resources to managing the loans. The risk rating grades are defined as follows: “1” – Pass / Excellent Loans rated 1 represent a credit extension of the highest quality. The borrower’s historic (at least five years) cash flows manifest extremely large and stable margins of coverage. Balance sheets are conservative, well capitalized, and liquid. After considering debt service for proposed and existing debt, projected cash flows continue to be strong and provide ample coverage. The borrower typically reflects broad geographic and product diversification and has access to alternative financial markets. “2” – Pass / Superior Loans rated 2 are those for which the borrower has a strong financial condition, balance sheet, operations, cash flow, debt capacity and coverage with ratios better than industry norms. The borrowers of these loans exhibit a limited leverage position, are virtually immune to local economies, and are in stable growing industries. The management team is well respected and the company has ready access to public markets. “3” – Pass / Strong Loans rated 3 are those loans for which the borrower has above average financial condition and flexibility; more than satisfactory debt service coverage; balance sheet and operating ratios are consistent with or better than industry peers; have little industry risk; and move in diversified markets and are experienced and competent in their industry. These borrowers access to capital markets is limited mostly to private sources, often secured, but the borrower typically has access to a wide range of refinancing alternatives. “4” – Pass / Good Loans rated 4 have a sound primary and secondary source of repayment. The borrower may have access to alternative sources of financing, bust sources are not as widely available as they are to a higher grade borrower. These loans carry a normal level of risk, with very low loss exposure. The borrower has the ability to perform according to the terms of the credit facility. The margins of cash flow coverage are satisfactory but vulnerable to more rapid deterioration than the higher quality loans. “5” – Satisfactory Loans rated 5 are extended to borrowers who are determined to be a reasonable credit risk and demonstrate the ability to repay the debt from normal business operations. Risk factors may include reliability of margins and cash flows, liquidity, dependence on a single product or industry, cyclical trends, depth of management, or limited access to alternative financing sources. The borrower’s historical financial information may indicate erratic performance, but current trends are positive and the quality of financial information is adequate, but is not as detailed and sophisticated as information found on higher grade loans. If adverse circumstances arise, the impact on the borrower may be significant. “6” – Satisfactory / Bankable with Care Loans rated 6 are those for which the borrower has higher than normal credit risk; however, cash flow and asset values are generally intact. These borrowers may exhibit declining financial characteristics, with increasing leverage and decreasing liquidity, and may have limited resources and access to financial alternatives. Signs of weakness in these borrowers may include delinquent taxes, trade slowness and eroding profit margins. “7” – Special Mention Loans rated Special Mention are credit facilities that may have potential developing weaknesses and deserve extra attention from the account manager and other management personnel. In the event potential weaknesses are not corrected or mitigated, deterioration in the ability of the borrower to repay the debt in the future may occur. This grade is not assigned to loans that bear certain peculiar risks normally associated with the type of financing involved, unless circumstances have caused the risk to increase to a level higher than would have been acceptable when the credit was originally approved. Loans where significant actual, not potential, weaknesses or problems are clearly evident are graded in the category below. “8” – Substandard Loans are classified Substandard when the loans are inadequately protected by the current sound worth and payment capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt and are characterized by the distinct possibility that the company will sustain some loss if the weaknesses are not corrected. “9” – Doubtful Doubtful ratings are assigned to loans that have all the attributes of a substandard rating 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. The possibility of loss is extremely high, but because of certain important and reasonable specific pending factors that may work to the advantage of and strengthen the credit quality of the loan, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors may include a proposed merger or acquisition, liquidation proceeding, capital injection, perfecting liens on additional collateral or refinancing plans. “10” – Loss The Bank assigns a loss rating to loans considered uncollectible and of such little value that their continuance as an active asset is not warranted. Amounts classified as loss are immediately charged off. Risk ratings are not established for certain consumer loans, including home equity loans, manufactured housing, and installment loans, mainly because these portfolios consist of a larger number of homogeneous loans with smaller balances. Instead, these portfolios are evaluated for risk mainly based upon aggregate payment history through the monitoring of delinquency levels and trends and are classified as performing and nonperforming. The following table presents the credit ratings as of December 31, 2015 and 2014 for the loans receivable portfolio. December 31, 2015 Multi-family Commercial Commercial Commercial Construction Residential Manufactured Other Consumer Total (amounts in thousands) Pass/Satisfactory $ 2,907,362 $ 784,892 $ 295,762 $ 950,886 $ 87,240 $ 268,210 $ — $ — $ 5,294,352 Special Mention 661 14,052 7,840 1,671 — 282 — — 24,506 Substandard 1,416 4,215 4,639 3,698 — 3,121 — — 17,089 Performing (1) — — — — — — 104,484 3,461 107,945 Non-performing (2) — — — — — — 9,006 247 9,253 Total $ 2,909,439 $ 803,159 $ 308,241 $ 956,255 $ 87,240 $ 271,613 $ 113,490 $ 3,708 $ 5,453,145 December 31, 2014 Multi-family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Real Estate Non-Owner Occupied Construction Residential Real Estate Manufactured Other Consumer Total (amounts in thousands) Pass/Satisfactory $ 2,206,776 $ 531,790 $ 217,356 $ 829,238 $ 44,642 $ 294,225 $ — $ — $ 4,124,027 Special Mention — 14,565 13,056 6,694 — 243 — — 34,558 Substandard 1,629 3,580 5,322 3,378 5,076 2,927 — — 21,912 Performing (1) — — — — — — 115,088 4,151 119,239 Non-performing (2) — — — — — — 11,643 282 11,925 Total $ 2,208,405 $ 549,935 $ 235,734 $ 839,310 $ 49,718 $ 297,395 $ 126,731 $ 4,433 $ 4,311,661 (1) Includes consumer and other installment loans not subject to risk ratings. (2) Includes loans that are past due and still accruing interest and loans on non-accrual status. As of December 31, 2015, the Bank had $1.2 million of residential real estate held in other real estate owned. As of December 31, 2015, the Bank initiated foreclosure proceedings on $0.6 million in loans secured by residential real estate. During second quarter 2015, the Bank refined its methodology for estimating the general allowance for loan losses. Previously, the general allowance for the portion of the loan portfolio originated after December 31, 2009 ("Post 2009 loan portfolio") was based generally on qualitative factors due to insufficient historical loss data on the portfolio. During second quarter 2015, the Bank began using objectively verifiable industry and peer loss data to estimate probable incurred losses as of the balance sheet date for the Post 2009 loan portfolio until sufficient internal loss history is available. The same methodology was also adopted for the portion of the loan portfolio originated on or before December 31, 2009 ("Legacy loan portfolio") that had no loss history over the past two years. The changes in the allowance for loan losses for the years ended December 31, 2015 and 2014 and the loans and allowance for loan losses by loan class based on impairment evaluation method are as follows. The amounts presented for the provision for loan losses below do not include the effect of changes to estimated benefits resulting from the FDIC loss share arrangements for the covered loans. Twelve months ended December 31, 2015 Multi-family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Real Estate Non-Owner Occupied Construction Residential Real Estate Manufactured Other Consumer Total (amounts in thousands) Beginning Balance, January 1, 2015 $ 8,493 $ 4,784 $ 4,336 $ 9,198 $ 1,047 $ 2,698 $ 262 $ 114 $ 30,932 Charge-offs — (11,331 ) (378 ) (327 ) (1,064 ) (276 ) — (36 ) (13,412 ) Recoveries — 548 14 0 204 575 — 92 1,433 Provision for loan losses 3,523 14,863 (2,624 ) (451 ) 887 301 232 (37 ) 16,694 Ending Balance, December 31, 2015 $ 12,016 $ 8,864 $ 1,348 $ 8,420 $ 1,074 $ 3,298 $ 494 $ 133 $ 35,647 Loans: Individually evaluated for impairment $ 661 $ 17,621 $ 8,329 $ 4,831 $ — $ 4,726 $ 8,300 $ 140 $ 44,608 Collectively evaluated for impairment 2,905,128 783,986 286,951 939,368 87,006 258,446 101,838 3,334 5,366,057 Loans acquired with credit deterioration 3,650 1,552 12,961 12,056 234 8,441 3,352 234 42,480 $ 2,909,439 $ 803,159 $ 308,241 $ 956,255 $ 87,240 $ 271,613 $ 113,490 $ 3,708 $ 5,453,145 Allowance for loan losses: Individually evaluated for impairment $ — $ 1,990 $ 1 $ 148 $ — $ 84 $ — $ 50 $ 2,273 Collectively evaluated for impairment 12,016 6,650 1,347 3,858 1,074 2,141 98 28 27,212 Loans acquired with credit deterioration — 224 — 4,414 — 1,073 396 55 6,162 $ 12,016 $ 8,864 $ 1,348 $ 8,420 $ 1,074 $ 3,298 $ 494 $ 133 $ 35,647 Twelve months ended December 31, 2014 Multi-family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Real Estate Non-Owner Occupied Construction Residential Real Estate Manufactured Other Consumer Total (amounts in thousands) Beginning Balance, January 1, 2014 $ 4,227 $ 2,674 $ 2,517 $ 8,961 $ 2,385 $ 2,490 $ 614 $ 130 $ 23,998 Charge-offs — (1,155 ) (482 ) (1,715 ) (895 ) (667 ) — (33 ) (4,947 ) Recoveries — 511 225 801 13 265 — 8 1,823 Provision for loan losses 4,266 2,754 2,076 1,151 (456 ) 610 (352 ) 9 10,058 Ending Balance, December 31, 2014 $ 8,493 $ 4,784 $ 4,336 $ 9,198 $ 1,047 $ 2,698 $ 262 $ 114 $ 30,932 Loans: Individually evaluated for impairment $ — $ 16,523 $ 13,349 $ 6,173 $ 2,325 $ 4,040 $ 2,588 $ 135 $ 45,133 Collectively evaluated for impairment 2,204,059 530,119 206,352 817,333 44,483 283,388 120,127 4,050 4,209,911 Loans acquired with credit deterioration 4,346 3,293 16,033 15,804 2,910 9,967 4,016 248 56,617 $ 2,208,405 $ 549,935 $ 235,734 $ 839,310 $ 49,718 $ 297,395 $ 126,731 $ 4,433 $ 4,311,661 Allowance for loan losses: Individually evaluated for impairment $ — $ 857 $ 95 $ 170 $ — $ 188 $ — $ 32 $ 1,342 Collectively evaluated for impairment 8,493 3,765 1,757 6,580 424 1,436 92 28 22,575 Loans acquired with credit deterioration — 162 2,484 2,448 623 1,074 170 54 7,015 $ 8,493 $ 4,784 $ 4,336 $ 9,198 $ 1,047 $ 2,698 $ 262 $ 114 $ 30,932 The manufactured housing portfolio was purchased in August 2010. A portion of the purchase price may be used to reimburse the Bank under the specified terms in the Purchase Agreement for defaults of the underlying borrower and other specified items. At December 31, 2015 and 2014, funds available for reimbursement, if necessary, were $1.2 million and $3.0 million , respectively. Each quarter, these funds are evaluated to determine if they would be sufficient to absorb probable losses within the manufactured housing portfolio. The changes in accretable yield related to purchased-credit-impaired loans for the three and nine months ended September 30, 2015 and 2014 were as follows: The changes in accretable yield related to purchased-credit-impaired loans for the years ended December 31, 2015, 2014 and 2013 were as follows: December 31, 2015 2014 2013 (amounts in thousands) Accretable yield balance, beginning of period $ 17,606 $ 22,557 $ 32,174 Accretion to interest income (2,299 ) (3,201 ) (6,213 ) Reclassification from nonaccretable difference and disposals, net (2,360 ) (1,750 ) (3,404 ) Accretable yield balance, end of period $ 12,947 $ 17,606 $ 22,557 |
