Loans | Loans Major classifications of loans at June 30, 2016 and December 31, 2015 were as follows: (In thousands) June 30, 2016 December 31, 2015 Commercial real estate loans: Construction $ 548,563 $ 522,269 Mortgage(1) 1,642,719 1,423,545 2,191,282 1,945,814 Consumer real estate loans: Construction 16 9 Mortgage 234,787 264,422 234,803 264,431 Commercial and industrial loans 1,304,952 1,221,283 Loans to individuals, excluding real estate 28,139 21,688 Other loans 20,809 5,377 3,779,985 3,458,593 Less allowance for loan losses (76,964 ) (78,478 ) Loans, net $ 3,703,021 $ 3,380,115 (1) Included in commercial real estate loans, mortgage, are owner-occupied real estate loans of $502.1 million at June 30, 2016 and $449.1 million at December 31, 2015 . A summary of changes in the allowance for loan losses during the three and six months ended June 30, 2016 and June 30, 2015 is as follows: Three Months Ended June 30, 2016 (In thousands) Construction Commercial Real Estate Consumer Real Estate Commercial and Industrial Consumer Total Allowance for loan losses: Balance, beginning of period $ 6,706 $ 21,115 $ 5,293 $ 50,746 $ 329 $ 84,189 Charge-offs (25 ) (300 ) (45 ) (505 ) (5 ) (880 ) Recoveries — 9 4 2 5 20 (Recovery) Provision (609 ) 6,260 (1,408 ) (10,627 ) 19 (6,365 ) Balance, end of period $ 6,072 $ 27,084 $ 3,844 $ 39,616 $ 348 $ 76,964 Three Months Ended June 30, 2015 (In thousands) Construction Commercial Real Estate Consumer Real Estate Commercial and Industrial Consumer Total Allowance for loan losses: Balance, beginning of period $ 4,733 $ 16,750 $ 3,316 $ 20,205 $ 191 $ 45,195 Charge-offs (10 ) (501 ) (41 ) (122 ) (24 ) (698 ) Recoveries — 243 2 5 4 254 Provision 628 327 257 4,388 — 5,600 Balance, end of period $ 5,351 $ 16,819 $ 3,534 $ 24,476 $ 171 $ 50,351 Six Months Ended June 30, 2016 (In thousands) Construction Commercial Real Estate Consumer Real Estate Commercial and Industrial Consumer Total Allowance for loan losses: Balance, beginning of period $ 5,027 $ 18,016 $ 3,500 $ 51,736 $ 199 $ 78,478 Charge-offs (25 ) (496 ) (45 ) (9,364 ) (7 ) (9,937 ) Recoveries — 13 4 14 9 40 Provision (Recovery) 1,070 9,551 385 (2,770 ) 147 8,383 Balance, end of period $ 6,072 $ 27,084 $ 3,844 $ 39,616 $ 348 $ 76,964 Six Months Ended June 30, 2015 (In thousands) Construction Commercial Real Estate Consumer Real Estate Commercial and Industrial Consumer Total Allowance for loan losses: Balance, beginning of period $ 4,030 $ 14,965 $ 3,316 $ 19,814 $ 211 $ 42,336 Charge-offs (12 ) (530 ) (41 ) (272 ) (50 ) (905 ) Recoveries — 243 2 66 9 320 Provision 1,333 2,141 257 4,868 1 8,600 Balance, end of period $ 5,351 $ 16,819 $ 3,534 $ 24,476 $ 171 $ 50,351 The allowance for loan losses and recorded investment in loans, including loans acquired with deteriorated credit quality, as of the dates indicated are as follows: June 30, 2016 (In thousands) Construction Commercial Real Estate Consumer Real Estate Commercial and Industrial Consumer Total Allowance for loan losses: Individually evaluated for impairment $ 516 $ 4,722 $ 384 $ 20,433 $ 25 $ 26,080 Collectively evaluated for impairment 5,556 22,362 3,460 19,183 323 50,884 Total $ 6,072 $ 27,084 $ 3,844 $ 39,616 $ 348 $ 76,964 Outstanding loan balances: Individually evaluated for impairment $ 12,704 $ 25,554 $ 6,017 $ 127,311 $ 270 $ 171,856 Collectively evaluated for impairment 535,875 1,617,165 228,770 1,198,450 27,869 3,608,129 Total $ 548,579 $ 1,642,719 $ 234,787 $ 1,325,761 $ 28,139 $ 3,779,985 December 31, 2015 (In thousands) Construction Commercial Real Estate Consumer Real Estate Commercial and Industrial Consumer Total Allowance for loan losses: Individually evaluated for impairment $ 508 $ 5,674 $ 322 $ 40,176 $ 13 $ 46,693 Collectively evaluated for impairment 4,519 12,342 3,178 11,560 186 31,785 Total $ 5,027 $ 18,016 $ 3,500 $ 51,736 $ 199 $ 78,478 Outstanding loan balances: Individually evaluated for impairment $ 2,630 $ 30,007 $ 4,318 $ 119,652 $ 144 $ 156,751 Collectively evaluated for impairment 519,648 1,393,538 260,104 1,107,008 21,544 3,301,842 Total $ 522,278 $ 1,423,545 $ 264,422 $ 1,226,660 $ 21,688 $ 3,458,593 Credit quality indicators on the Company’s loan portfolio, including loans acquired with deteriorated credit quality, as of the dates indicated were as follows: June 30, 2016 (In thousands) Pass and Pass/Watch Special Mention Substandard Doubtful Total Construction $ 451,226 $ — $ 97,353 $ — $ 548,579 Commercial real estate 1,546,679 12,216 83,824 — 1,642,719 Consumer real estate 218,732 5,533 10,522 — 234,787 Commercial and industrial 1,126,209 9,754 170,474 19,324 1,325,761 Consumer 27,779 8 352 — 28,139 Total loans $ 3,370,625 $ 27,511 $ 362,525 $ 19,324 $ 3,779,985 December 31, 2015 (In thousands) Pass and Pass/Watch Special Mention Substandard Doubtful Total Construction $ 444,713 $ — $ 77,565 $ — $ 522,278 Commercial real estate 1,325,513 15,230 82,802 — 1,423,545 Consumer real estate 252,707 175 11,540 — 264,422 Commercial and industrial 1,038,567 7,377 161,391 19,325 1,226,660 Consumer 21,364 13 311 — 21,688 Total loans $ 3,082,864 $ 22,795 $ 333,609 $ 19,325 $ 3,458,593 The table above as of June 30, 2016 included $3.4 million of substandard loans which are loans acquired with deteriorated credit quality and accounted for under ASC 310-30. As of December 31, 2015 , included in the above table were $3.2 million of substandard loans which are loans acquired with deteriorated credit quality and accounted for under ASC 310-30. The above classifications follow regulatory guidelines and can generally be described as follows: • Pass and pass/watch loans are of satisfactory quality. • Special mention loans have an existing weakness that could cause future impairment, including the deterioration of financial ratios, past due status, questionable management capabilities, and possible reduction in the collateral values. • Substandard loans have an existing specific and well-defined weakness that may include poor liquidity and deterioration of financial ratios. The loan may be past due and related deposit accounts may be experiencing overdrafts. Immediate corrective action is necessary. • Doubtful loans have specific weaknesses that are severe enough to make collection or liquidation in full highly questionable and improbable. An aged analysis of past due loans, including loans acquired with deteriorated credit quality, as of the dates indicated is as follows: June 30, 2016 (In thousands) Greater Than 30 and Fewer Than 90 Days Past Due 90 Days and Greater Past Due Total Past Due Current Loans Total Loans Real estate loans: Construction $ 656 $ 11,375 $ 12,031 $ 536,548 $ 548,579 Commercial real estate 3,941 5,111 9,052 1,633,667 1,642,719 Consumer real estate 3,737 4,547 8,284 226,503 234,787 Total real estate loans 8,334 21,033 29,367 2,396,718 2,426,085 Other loans: Commercial and industrial 4,648 11,411 16,059 1,309,702 1,325,761 Consumer 38 81 119 28,020 28,139 Total other loans 4,686 11,492 16,178 1,337,722 1,353,900 Total loans $ 13,020 $ 32,525 $ 45,545 $ 3,734,440 $ 3,779,985 December 31, 2015 (In thousands) Greater Than 30 and Fewer Than 90 Days Past Due 90 Days and Greater Past Due Total Past Due Current Loans Total Loans Real estate loans: Construction $ 430 $ 981 $ 1,411 $ 520,867 $ 522,278 Commercial real estate 979 5,943 6,922 1,416,623 1,423,545 Consumer real estate 5,628 2,517 8,145 256,277 264,422 Total real estate loans 7,037 9,441 16,478 2,193,767 2,210,245 Other loans: Commercial and industrial 2,018 2,588 4,606 1,222,054 1,226,660 Consumer 385 190 575 21,113 21,688 Total other loans 2,403 2,778 5,181 1,243,167 1,248,348 Total loans $ 9,440 $ 12,219 $ 21,659 $ 3,436,934 $ 3,458,593 The following is a summary of information pertaining to impaired loans excluding loans acquired with deteriorated credit quality, as of the periods indicated: June 30, 2016 (In thousands) Recorded Investment Contractual Balance Related Allowance With no related allowance recorded: Construction $ 10,596 $ 10,609 $ — Commercial real estate 5,364 6,830 — Consumer real estate 3,814 3,898 — Commercial and industrial 3,958 6,966 — Consumer 167 167 — Total $ 23,899 $ 28,470 $ — With an allowance recorded: Construction $ 2,108 $ 2,122 $ 516 Commercial real estate 20,190 20,853 4,722 Consumer real estate 2,203 2,287 384 Commercial and industrial 123,353 131,221 20,433 Consumer 103 103 25 Total $ 147,957 $ 156,586 $ 26,080 Total impaired loans: Construction $ 12,704 $ 12,731 $ 516 Commercial real estate 25,554 27,683 4,722 Consumer real estate 6,017 6,185 384 Commercial and industrial 127,311 138,187 20,433 Consumer 270 270 25 Total $ 171,856 $ 185,056 $ 26,080 December 31, 2015 (In thousands) Recorded Investment Contractual Balance Related Allowance With no related allowance recorded: Construction $ 902 $ 915 $ — Commercial real estate 12,090 12,424 — Consumer real estate 2,802 2,938 — Commercial and industrial 6,072 6,264 — Consumer 130 130 — Total $ 21,996 $ 22,671 $ — With an allowance recorded: Construction $ 1,728 $ 1,755 $ 508 Commercial real estate 17,917 17,982 5,674 Consumer real estate 1,516 1,534 322 Commercial and industrial 113,580 113,862 40,176 Consumer 14 14 13 Total $ 134,755 $ 135,147 $ 46,693 Total impaired loans: Construction $ 2,630 $ 2,670 $ 508 Commercial real estate 30,007 30,406 5,674 Consumer real estate 4,318 4,472 322 Commercial and industrial 119,652 120,126 40,176 Consumer 144 144 13 Total $ 156,751 $ 157,818 $ 46,693 For the Three Months Ended June 30, 2016 June 30, 2015 (In thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Construction $ 10,352 $ — $ 883 $ 18 Commercial real estate 5,683 — 3,402 14 Consumer real estate 3,466 6 2,364 — Commercial and industrial 3,929 — 7,514 — Consumer 94 — 99 — Total $ 23,524 $ 6 $ 14,262 $ 32 With an allowance recorded: Construction $ 2,132 $ — $ 22 $ — Commercial real estate 22,199 6 10,143 60 Consumer real estate 2,214 — 318 — Commercial and industrial 118,710 297 16,322 — Consumer 205 — 1 — Total $ 145,460 $ 303 $ 26,806 $ 60 Total impaired loans: Construction $ 12,484 $ — $ 905 $ 18 Commercial real estate 27,882 6 13,545 74 Consumer real estate 5,680 6 2,682 — Commercial and industrial 122,639 297 23,836 — Consumer 299 — 100 — Total $ 168,984 $ 309 $ 41,068 $ 92 For the Six Months Ended June 30, 2016 June 30, 2015 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Construction $ 5,749 $ — $ 891 $ 18 Commercial real estate 8,727 20 4,529 14 Consumer real estate 3,308 7 2,348 3 Commercial and industrial 5,015 — 371 — Consumer 149 — 163 — Total $ 22,948 $ 27 $ 8,302 $ 35 With an allowance recorded: Construction $ 1,912 $ 17 $ 21 $ — Commercial real estate 19,060 75 8,711 60 Consumer real estate 1,860 7 292 — Commercial and industrial 118,466 299 16,038 4 Consumer 59 — 2 — Total $ 141,357 $ 398 $ 25,064 $ 64 Total impaired loans: Construction $ 7,661 $ 17 $ 912 $ 18 Commercial real estate 27,787 95 13,240 74 Consumer real estate 5,168 14 2,640 3 Commercial and industrial 123,481 299 16,409 4 Consumer 208 — 165 — Total $ 164,305 $ 425 $ 33,366 $ 99 Also presented in the above table is the average recorded investment of the impaired loans and the related amount of interest recognized during the time within the period that the impaired loans were impaired. When the ultimate collectability of the total principal of an impaired loan is in doubt and the loan is on nonaccrual status, all payments are applied to principal under the cost recovery method. When the ultimate collectability of the total principal of an impaired loan is not in doubt and the loan is in nonaccrual status, contractual interest is credited to interest income when received under the cash basis method. In the table above, all interest recognized represents cash collected. The average balances are calculated based on the month-end balances of the financing receivables of the period reported. As of June 30, 2016 , there were no cash secured tuition loans that were past due 90 days or more still accruing interest. There were $0.1 million in cash secured tuition loans that were past due 90 days or more still accruing interest as of December 31, 2015 . The following is a summary of information pertaining to nonaccrual loans as of the periods indicated: (In thousands) June 30, 2016 December 31, 2015 Nonaccrual loans: Construction $ 12,691 $ 2,633 Commercial real estate 21,634 27,937 Consumer real estate 5,948 4,538 Commercial and industrial 126,727 119,705 Consumer 310 125 Total $ 167,310 $ 154,938 As of June 30, 2016 and December 31, 2015 , the average recorded investment in nonaccrual loans was $163.1 million and $34.0 million , respectively. The amount of interest income that would have been recognized on nonaccrual loans based on contractual terms was $4.4 million and $1.8 million at June 30, 2016 and December 31, 2015 , respectively. Information about the Company’s TDRs at June 30, 2016 and December 31, 2015 is presented in the following tables: (In thousands) Current Greater Than 30 Days Past Due Nonaccrual TDRs Total TDRs As of June 30, 2016 Real estate loans: Construction $ — $ — $ 1,249 $ 1,249 Commercial real estate 1,842 — — 1,842 Consumer real estate 561 — 127 688 Total real estate loans 2,403 — 1,376 3,779 Other loans: Commercial and industrial 447 — 115,375 115,822 Total loans $ 2,850 $ — $ 116,751 $ 119,601 (In thousands) Current Greater Than 30 Days Past Due Nonaccrual TDRs Total TDRs As of December 31, 2015 Real estate loans: Construction $ 1 $ — $ 366 $ 367 Commercial real estate 2,215 — 1,393 3,608 Consumer real estate 585 — 771 1,356 Total real estate loans 2,801 — 2,530 5,331 Other loans: Commercial and industrial 482 — 109,727 110,209 Total loans $ 3,283 $ — $ 112,257 $ 115,540 There were no TDRs modified during the three months ended June 30, 2016 and June 30, 2015. The following table provides information on how the TDRs were modified during the six months ended June 30, 2016 and June 30, 2015. (In thousands) June 30, 2016 June 30, 2015 Maturity and interest rate adjustment $ — $ — Movement to, or extension of, interest rate-only payments 6,324 — Other concessions (1) — — Total $ 6,324 $ — A summary of information pertaining to modified terms of loans, as of the dates indicated, is as follows: As of June 30, 2016 (In thousands) Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Troubled debt restructuring: Construction 1 $ 1,249 $ 1,249 Commercial real estate 1 1,842 1,842 Consumer real estate 1 688 688 Commercial and industrial 18 115,822 115,822 21 $ 119,601 $ 119,601 As of December 31, 2015 (In thousands) Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Troubled debt restructuring: Construction 3 $ 367 $ 367 Commercial real estate 3 3,608 3,608 Consumer real estate 5 1,356 1,356 Commercial and industrial 30 110,209 110,209 41 $ 115,540 $ 115,540 None of the performing TDRs defaulted subsequent to the restructuring through the date the financial statements were available to be issued. As of June 30, 2016 , the Company was committed to lend $0.1 million in additional funds to customers whose loans were classified as impaired or TDR. As of December 31, 2015 , the Company was not committed to lend additional funds to any customer whose loan was classified as impaired or as a TDR. |