| LOANS AND CREDIT QUALITY | NOTE 4–LOANS AND CREDIT QUALITY: For a detailed discussion of loans and credit quality, including accounting policies and the methodology used to estimate the allowance for credit losses, see Note 1, Summary of Significant Accounting Policies and Note 5, Loans and Credit Quality within our 2014 Annual Report on Form 10-K. The Company's portfolio of loans held for investment is divided into two portfolio segments, consumer loans and commercial loans, which are the same segments used to determine the allowance for loan losses. Within each portfolio segment, the Company monitors and assesses credit risk based on the risk characteristics of each of the following loan classes: single family and home equity and other loans within the consumer loan portfolio segment and commercial real estate, multifamily, construction/land development and commercial business loans within the commercial loan portfolio segment. Loans held for investment consist of the following: (in thousands) At June 30, At December 31, Consumer loans Single family $ 1,182,542 (1) $ 896,665 Home equity and other 216,635 135,598 1,399,177 1,032,263 Commercial loans Commercial real estate 547,571 523,464 Multifamily 366,187 55,088 Construction/land development 454,817 367,934 Commercial business 166,216 147,449 1,534,791 1,093,935 2,933,968 2,126,198 Net deferred loan fees, costs and discounts (7,516 ) (5,048 ) 2,926,452 2,121,150 Allowance for loan losses (25,777 ) (22,021 ) $ 2,900,675 $ 2,099,129 (1) Includes $38.2 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. Loans in the amount of $1.32 billion and $1.06 billion at June 30, 2015 and December 31, 2014 , respectively, were pledged to secure borrowings from the FHLB as part of our liquidity management strategy. Additionally, loans totaling $516.2 million and $487.2 million were pledged to secure borrowings from the Federal Reserve Bank. The FHLB and Federal Reserve Bank do not have the right to sell or re-pledge these loans. Credit Risk Concentration Concentrations of credit risk arise when a number of customers are engaged in similar business activities or activities in the same geographic region, or when they have similar economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic conditions. Loans held for investment are primarily secured by real estate located in the Pacific Northwest, Oregon, California and Hawaii. At June 30, 2015 , we had concentrations representing 10% or more of the total portfolio by state and property type for the loan classes of single family, commercial real estate and construction/land development within the state of Washington, which represented 20.7% , 15.0% and 11.3% of the total portfolio, respectively. Additionally, we had a concentration representing 10% or more by state and property type for the single family loan class within the state of California, which represented 13.8% of the total portfolio. At December 31, 2014 we had concentrations representing 10% or more of the total portfolio by state and property type for the loan classes of single family, commercial real estate and construction/land development within the state of Washington, which represented 28.0% and 20.7% and 13.7% of the total portfolio, respectively. Credit Quality Management considers the level of allowance for loan losses to be appropriate to cover credit losses inherent within the loans held for investment portfolio as of June 30, 2015 . In addition to the allowance for loan losses, the Company maintains a separate allowance for losses related to unfunded loan commitments, and this amount is included in accounts payable and other liabilities on the consolidated statements of financial condition. Collectively, these allowances are referred to as the allowance for credit losses. For further information on the policies that govern the determination of the allowance for loan losses levels, see Note 1, Summary of Significant Accounting Policies within our 2014 Annual Report on Form 10-K. Activity in the allowance for credit losses was as follows. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2015 2014 2015 2014 Allowance for credit losses (roll-forward): Beginning balance $ 25,628 $ 22,317 $ 22,524 $ 24,089 Provision (reversal of provision) for credit losses 500 — 3,500 (1,500 ) (Charge-offs), net of recoveries 320 (149 ) 424 (421 ) Ending balance $ 26,448 $ 22,168 $ 26,448 $ 22,168 Components: Allowance for loan losses $ 25,777 $ 21,926 $ 25,777 $ 21,926 Allowance for unfunded commitments 671 242 671 242 Allowance for credit losses $ 26,448 $ 22,168 $ 26,448 $ 22,168 Activity in the allowance for credit losses by loan portfolio and loan class was as follows. Three Months Ended June 30, 2015 (in thousands) Beginning balance Charge-offs Recoveries (Reversal of) Provision Ending balance Consumer loans Single family $ 9,959 $ — $ 181 $ (1,143 ) $ 8,997 Home equity and other 3,331 (119 ) 57 613 3,882 13,290 (119 ) 238 (530 ) 12,879 Commercial loans Commercial real estate 4,551 — 37 458 5,046 Multifamily 661 — — 119 780 Construction/land development 5,003 — 85 855 5,943 Commercial business 2,123 (9 ) 88 (402 ) 1,800 12,338 (9 ) 210 1,030 13,569 Total allowance for credit losses $ 25,628 $ (128 ) $ 448 $ 500 $ 26,448 Three Months Ended June 30, 2014 (in thousands) Beginning balance Charge-offs Recoveries (Reversal of) Provision Ending balance Consumer loans Single family $ 9,406 $ (172 ) $ 25 $ (148 ) $ 9,111 Home equity and other 3,882 (136 ) 236 (465 ) 3,517 13,288 (308 ) 261 (613 ) 12,628 Commercial loans Commercial real estate 4,309 (23 ) 100 (323 ) 4,063 Multifamily 965 — — (78 ) 887 Construction/land development 2,003 — 46 369 2,418 Commercial business 1,752 (288 ) 63 645 2,172 9,029 (311 ) 209 613 9,540 Total allowance for credit losses $ 22,317 $ (619 ) $ 470 $ — $ 22,168 Six Months Ended June 30, 2015 (in thousands) Beginning Charge-offs Recoveries (Reversal of) Provision Ending Consumer loans Single family $ 9,447 $ — $ 246 $ (696 ) $ 8,997 Home equity and other 3,322 (201 ) 141 620 3,882 12,769 (201 ) 387 (76 ) 12,879 Commercial loans Commercial real estate 3,846 (16 ) 37 1,179 5,046 Multifamily 673 — — 107 780 Construction/land development 3,818 — 99 2,026 5,943 Commercial business 1,418 (9 ) 127 264 1,800 9,755 (25 ) 263 3,576 13,569 Total allowance for credit losses $ 22,524 $ (226 ) $ 650 $ 3,500 $ 26,448 Six Months Ended June 30, 2014 (in thousands) Beginning Charge-offs Recoveries (Reversal of) Provision Ending Consumer loans Single family $ 11,990 $ (283 ) $ 41 $ (2,637 ) $ 9,111 Home equity and other 3,987 (559 ) 326 (237 ) 3,517 15,977 (842 ) 367 (2,874 ) 12,628 Commercial loans Commercial real estate 4,012 (23 ) 156 (82 ) 4,063 Multifamily 942 — — (55 ) 887 Construction/land development 1,414 — 62 942 2,418 Commercial business 1,744 (288 ) 147 569 2,172 8,112 (311 ) 365 1,374 9,540 Total allowance for credit losses $ 24,089 $ (1,153 ) $ 732 $ (1,500 ) $ 22,168 The following table disaggregates our allowance for credit losses and recorded investment in loans by impairment methodology. At June 30, 2015 (in thousands) Allowance: collectively evaluated for impairment Allowance: individually evaluated for impairment Total Loans: collectively evaluated for impairment Loans: individually evaluated for impairment Total Consumer loans Single family $ 8,738 $ 259 $ 8,997 $ 1,065,566 $ 78,752 $ 1,144,318 Home equity and other 3,719 163 3,882 214,468 2,167 216,635 12,457 422 12,879 1,280,034 80,919 1,360,953 Commercial loans Commercial real estate 4,672 374 5,046 523,570 24,001 547,571 Multifamily 581 199 780 361,475 4,712 366,187 Construction/land development 5,943 — 5,943 450,217 4,600 454,817 Commercial business 1,487 313 1,800 160,173 6,043 166,216 12,683 886 13,569 1,495,435 39,356 1,534,791 Total loans evaluated for impairment 25,140 1,308 26,448 2,775,469 120,275 2,895,744 Loans held for investment carried at fair value 38,224 (1) Total loans held for investment $ 25,140 $ 1,308 $ 26,448 $ 2,775,469 $ 120,275 $ 2,933,968 (1) Comprised of single family loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. At December 31, 2014 (in thousands) Allowance: collectively evaluated for impairment Allowance: individually evaluated for impairment Total Loans: collectively evaluated for impairment Loans: individually evaluated for impairment Total Consumer loans Single family $ 8,743 $ 704 $ 9,447 $ 818,783 $ 77,882 $ 896,665 Home equity and other 3,165 157 3,322 132,937 2,661 135,598 11,908 861 12,769 951,720 80,543 1,032,263 Commercial loans Commercial real estate 3,806 40 3,846 496,685 26,779 523,464 Multifamily 312 361 673 52,011 3,077 55,088 Construction/land development 3,818 — 3,818 362,487 5,447 367,934 Commercial business 974 444 1,418 144,071 3,378 147,449 8,910 845 9,755 1,055,254 38,681 1,093,935 Total $ 20,818 $ 1,706 $ 22,524 $ 2,006,974 $ 119,224 $ 2,126,198 The Company recorded $500 thousand of provision for credit losses in the second quarter of 2015 . The credit loss provision recorded in the quarter was the result of overall growth in the loans held for investment portfolio. Impaired Loans The following tables present impaired loans by loan portfolio segment and loan class. At June 30, 2015 (in thousands) Recorded investment (1) Unpaid principal balance (2) Related allowance With no related allowance recorded: Consumer loans Single family $ 76,135 $ 78,337 $ — Home equity and other 1,387 1,412 — 77,522 79,749 — Commercial loans Commercial real estate 10,429 12,179 — Multifamily 3,810 4,223 — Construction/land development 4,600 5,101 — Commercial business 5,015 5,516 — 23,854 27,019 — $ 101,376 $ 106,768 $ — With an allowance recorded: Consumer loans Single family $ 2,617 $ 2,730 $ 259 Home equity and other 780 780 163 3,397 3,510 422 Commercial loans Commercial real estate 13,572 13,585 374 Multifamily 902 850 199 Construction/land development — — — Commercial business 1,028 1,145 313 15,502 15,580 886 $ 18,899 $ 19,090 $ 1,308 Total: Consumer loans Single family (3) $ 78,752 $ 81,067 $ 259 Home equity and other 2,167 2,192 163 80,919 83,259 422 Commercial loans Commercial real estate 24,001 25,764 374 Multifamily 4,712 5,073 199 Construction/land development 4,600 5,101 — Commercial business 6,043 6,661 313 39,356 42,599 886 Total impaired loans $ 120,275 $ 125,858 $ 1,308 (1) Includes partial charge-offs and nonaccrual interest paid and purchase discounts and premiums. (2) Unpaid principal balance does not include partial charge-offs, purchase discounts and premiums or nonaccrual interest paid. Related allowance is calculated on net book balances not unpaid principal balances. (3) Includes $75.7 million in performing troubled debt restructurings ("TDRs"). At December 31, 2014 (in thousands) Recorded investment (1) Unpaid principal balance (2) Related allowance With no related allowance recorded: Consumer loans Single family $ 48,104 $ 50,787 $ — Home equity and other 1,824 1,850 — 49,928 52,637 — Commercial loans Commercial real estate 25,540 27,205 — Multifamily 508 508 — Construction/land development 5,447 14,532 — Commercial business 1,302 3,782 — 32,797 46,027 — $ 82,725 $ 98,664 $ — With an allowance recorded: Consumer loans Single family $ 29,778 $ 29,891 $ 704 Home equity and other 837 837 157 30,615 30,728 861 Commercial loans Commercial real estate 1,239 1,399 40 Multifamily 2,569 2,747 361 Commercial business 2,076 2,204 444 5,884 6,350 845 $ 36,499 $ 37,078 $ 1,706 Total: Consumer loans Single family (3) $ 77,882 $ 80,678 $ 704 Home equity and other 2,661 2,687 157 80,543 83,365 861 Commercial loans Commercial real estate 26,779 28,604 40 Multifamily 3,077 3,255 361 Construction/land development 5,447 14,532 — Commercial business 3,378 5,986 444 38,681 52,377 845 Total impaired loans $ 119,224 $ 135,742 $ 1,706 (1) Includes partial charge-offs and nonaccrual interest paid. (2) Unpaid principal balance does not include partial charge-offs, purchase discounts and premiums or nonaccrual interest paid. Related allowance is calculated on net book balances not unpaid principal balances. (3) Includes $73.6 million in single family performing TDRs. The following table provides the average recorded investment in impaired loans by portfolio segment and class. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2015 2014 2015 2014 Consumer loans Single family $ 78,720 $ 70,977 $ 78,440 $ 71,713 Home equity and other 2,250 2,466 2,387 2,525 80,970 73,443 80,827 74,238 Commercial loans Commercial real estate 23,469 31,771 24,572 31,806 Multifamily 4,270 3,135 3,873 3,144 Construction/land development 5,047 5,875 5,180 5,966 Commercial business 4,832 3,200 4,347 3,085 37,618 43,981 37,972 44,001 $ 118,588 $ 117,424 $ 118,799 $ 118,239 Credit Quality Indicators Management regularly reviews loans in the portfolio to assess credit quality indicators and to determine appropriate loan classification and grading in accordance with applicable bank regulations. The Company's risk rating methodology assigns risk ratings ranging from 1 to 10, where a higher rating represents higher risk. The Company differentiates its lending portfolios into homogeneous loans and non-homogeneous loans. The 10 risk rating categories can be generally described by the following groupings for non-homogeneous loans: Pass. We have five pass risk ratings which represent a level of credit quality that ranges from no well-defined deficiency or weakness to some noted weakness, however the risk of default on any loan classified as pass is expected to be remote. The five pass risk ratings are described below: Minimal Risk . A minimal risk loan, risk rated 1-Exceptional, is to a borrower of the highest quality. The borrower has an unquestioned ability to produce consistent profits and service all obligations and can absorb severe market disturbances with little or no difficulty. Low Risk. A low risk loan, risk rated 2-Superior, is similar in characteristics to a minimal risk loan. Balance sheet and operations are slightly more prone to fluctuations within the business cycle; however, debt capacity and debt service coverage remains strong. The borrower will have a strong demonstrated ability to produce profits and absorb market disturbances. Modest Risk. A modest risk loan, risk rated 3-Excellent, is a desirable loan with excellent sources of repayment and no currently identifiable risk associated with collection. The borrower exhibits a very strong capacity to repay the loan in accordance with the repayment agreement. The borrower may be susceptible to economic cycles, but will have cash reserves to weather these cycles. Average Risk. An average risk loan, risk rated 4-Good, is an attractive loan with sound sources of repayment and no material collection or repayment weakness evident. The borrower has an acceptable capacity to pay in accordance with the agreement. The borrower is susceptible to economic cycles and more efficient competition, but should have modest reserves sufficient to survive all but the most severe downturns or major setbacks. Acceptable Risk. An acceptable risk loan, risk rated 5-Acceptable, is a loan with lower than average, but still acceptable credit risk. These borrowers may have higher leverage, less certain but viable repayment sources, have limited financial reserves and may possess weaknesses that can be adequately mitigated through collateral, structural or credit enhancement. The borrower is susceptible to economic cycles and is less resilient to negative market forces or financial events. Reserves may be insufficient to survive a modest downturn. Watch. A watch loan, risk rated 6-Watch, is still pass-rated, but represents the lowest level of acceptable risk due to an emerging risk element or declining performance trend. Watch ratings are expected to be temporary, with issues resolved or manifested to the extent that a higher or lower rating would be appropriate. The borrower should have a plausible plan, with reasonable certainty of success, to correct the problems in a short period of time. Borrowers rated watch are characterized by elements of uncertainty, such as: • The borrower may be experiencing declining operating trends, strained cash flows or less-than anticipated performance. Cash flow should still be adequate to cover debt service, and the negative trends should be identified as being of a short-term or temporary nature. • The borrower may have experienced a minor, unexpected covenant violation. • Companies who may be experiencing tight working capital or have a cash cushion deficiency. • A loan may also be a watch if financial information is late, there is a documentation deficiency, the borrower has experienced unexpected management turnover, or if they face industry issues that, when combined with performance factors create uncertainty in their future ability to perform. • Delinquent payments, increasing and material overdraft activity, request for bulge and/or out- of-formula advances may be an indicator of inadequate working capital and may suggest a lower rating. • Failure of the intended repayment source to materialize as expected, or renewal of a loan (other than cash/marketable security secured or lines of credit) without reduction are possible indicators of a watch or worse risk rating. Special Mention. A special mention loan, risk rated 7-Special Mention, has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loans or the institutions credit position at some future date. They contain unfavorable characteristics and are generally undesirable. Loans in this category are currently protected but are potentially weak and constitute an undue and unwarranted credit risk, but not to the point of a substandard classification. A special mention loan has potential weaknesses, which if not checked or corrected, weaken the loan or inadequately protect the Company’s position at some future date. Such weaknesses include: • Performance is poor or significantly less than expected. There may be a temporary debt-servicing deficiency or inadequate working capital as evidenced by a cash cushion deficiency, but not to the extent that repayment is compromised. Material violation of financial covenants is common. • Loans with unresolved material issues that significantly cloud the debt service outlook, even though a debt servicing deficiency does not currently exist. • Modest underperformance or deviation from plan for real estate loans where absorption of rental/sales units is necessary to properly service the debt as structured. Depth of support for interest carry provided by owner/guarantors may mitigate and provide for improved rating • This rating may be assigned when a loan officer is unable to supervise the credit properly, an inadequate loan agreement, an inability to control collateral, failure to obtain proper documentation, or any other deviation from prudent lending practices. • Unlike a substandard credit, there should be a reasonable expectation that these temporary issues will be corrected within the normal course of business, rather than liquidation of assets, and in a reasonable period of time. Substandard. A substandard loan, risk rated 8-Substandard, is inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the loan. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard loans, does not have to exist in individual loans classified substandard. Loans are classified as substandard when they have unsatisfactory characteristics causing unacceptable levels of risk. A substandard loan normally has one or more well-defined weaknesses that could jeopardize repayment of the loan. The likely need to liquidate assets to correct the problem, rather than repayment from successful operations is the key distinction between special mention and substandard. The following are examples of well-defined weaknesses: • Cash flow deficiencies or trends are of a magnitude to jeopardize current and future payments with no immediate relief. A loss is not presently expected, however the outlook is sufficiently uncertain to preclude ruling out the possibility. • The borrower has been unable to adjust to prolonged and unfavorable industry or economic trends. • Material underperformance or deviation from plan for real estate loans where absorption of rental/sales units is necessary to properly service the debt and risk is not mitigated by willingness and capacity of owner/guarantor to support interest payments. • Management character or honesty has become suspect. This includes instances where the borrower has become uncooperative. • Due to unprofitable or unsuccessful business operations, some form of restructuring of the business, including liquidation of assets, has become the primary source of loan repayment. Cash flow has deteriorated, or been diverted, to the point that sale of collateral is now the Company’s primary source of repayment (unless this was the original source of repayment). If the collateral is under the Company’s control and is cash or other liquid, highly marketable securities and properly margined, then a more appropriate rating might be special mention or watch. • The borrower is involved in bankruptcy proceedings where collateral liquidation values are expected to fully protect the Company against loss. • There is material, uncorrectable faulty documentation or materially suspect financial information. Doubtful. Loans classified as doubtful, risk rated 9-Doubtful, have all the weaknesses inherent in one classified 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. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors, which may work towards strengthening of the loan, classification as a loss (and immediate charge-off) is deferred until more exact status may be determined. Pending factors include proposed merger, acquisition, liquidation procedures, capital injection, and perfection of liens on additional collateral and refinancing plans. In certain circumstances, a doubtful rating will be temporary, while the Company is awaiting an updated collateral valuation. In these cases, once the collateral is valued and appropriate margin applied, the remaining un-collateralized portion will be charged-off. The remaining balance, properly margined, may then be upgraded to substandard, however must remain on non-accrual. Loss. Loans classified as loss, risk rated 10-Loss, are considered un-collectible and of such little value that the continuance as an active Company asset is not warranted. This rating does not mean that the loan has no recovery or salvage value, but rather that the loan should be charged-off now, even though partial or full recovery may be possible in the future. Impaired. Loans are classified as impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and interest when due, in accordance with the terms of the original loan agreement, without unreasonable delay. This generally includes all loans classified as nonaccrual and troubled debt restructurings. Impaired loans are risk rated for internal and regulatory rating purposes, but presented separately for clarification. Homogeneous loans maintain their original risk rating until they are greater than 30 days past due, and risk rating reclassification is based primarily on the past due status of the loan. The risk rating categories can be generally described by the following groupings for commercial and commercial real estate homogeneous loans: Watch. A homogeneous watch loan, risk rated 6, is 30-59 days past due from the required payment date at month-end. Special Mention. A homogeneous special mention loan, risk rated 7, is 60-89 days past due from the required payment date at month-end. S ubstandard. A homogeneous substandard loan, risk rated 8, is 90-179 days past due from the required payment date at month-end. Loss. A homogeneous loss loan, risk rated 10, is 180 days and more past due from the required payment date. These loans are generally charged-off in the month in which the 180 day time period elapses. The risk rating categories can be generally described by the following groupings for residential and home equity and other homogeneous loans: Watch. A homogeneous retail watch loan, risk rated 6, is 60-89 days past due from the required payment date at month-end. Substandard. A homogeneous retail substandard loan, risk rated 8, is 90-180 days past due from the required payment date at month-end. Loss. A homogeneous retail loss loan, risk rated 10, becomes past due 180 cumulative days from the contractual due date. These loans are generally charged-off in the month in which the 180 day period elapses. Residential and home equity loans modified in a troubled debt restructure are not considered homogeneous. The risk rating classification for such loans are based on the non-homogeneous definitions noted above. The following tables summarize designated loan grades by loan portfolio segment and loan class. At June 30, 2015 (in thousands) Pass Watch Special mention Substandard Total Consumer loans Single family $ 1,149,603 (1) $ 1,498 $ 20,604 $ 10,837 $ 1,182,542 Home equity and other 214,492 61 481 1,601 216,635 1,364,095 1,559 21,085 12,438 1,399,177 Commercial loans Commercial real estate 452,364 76,226 8,285 10,696 547,571 Multifamily 339,780 18,529 4,687 3,191 366,187 Construction/land development 448,247 3,240 1,314 2,016 454,817 Commercial business 131,601 27,647 2,354 4,614 166,216 1,371,992 125,642 16,640 20,517 1,534,791 $ 2,736,087 $ 127,201 $ 37,725 $ 32,955 $ 2,933,968 (1) Includes $38.2 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. At December 31, 2014 (in thousands) Pass Watch Special mention Substandard Total Consumer loans Single family $ 865,641 $ 361 $ 21,714 $ 8,949 $ 896,665 Home equity and other 133,338 82 652 1,526 135,598 998,979 443 22,366 10,475 1,032,263 Commercial loans Commercial real estate 441,509 67,434 13,066 1,455 523,464 Multifamily 50,495 1,516 3,077 — 55,088 Construction/land development 361,167 2,830 1,261 2,676 367,934 Commercial business 115,665 25,724 3,690 2,370 147,449 968,836 97,504 21,094 6,501 1,093,935 $ 1,967,815 $ 97,947 $ 43,460 $ 16,976 $ 2,126,198 As of June 30, 2015 and December 31, 2014 , none of the Company's loans were rated Doubtful or Loss. For a detailed discussion on credit quality, see Note 6, Loans and Credit Quality within our 2014 Annual Report on Form 10-K. Nonaccrual and Past Due Loans Loans are placed on nonaccrual status when the full and timely collection of principal and interest is doubtful, generally when the loan becomes 90 days or more past due for principal or interest payment or if part of the principal balance has been charged off. Loans whose repayments are insured by the Federal Housing Authority ("FHA") or guaranteed by the Department of Veterans' Affairs ("VA") are generally maintained on accrual status even if 90 days or more past due. The following table presents an aging analysis of past due loans by loan portfolio segment and loan class. At June 30, 2015 (in thousands) 30-59 days past due 60-89 days past due 90 days or more past due Total past due Current Total loans 90 days or more past due and accruing (2) Consumer loans Single family $ 8,619 $ 3,400 $ 41,959 $ 53,978 $ 1,128,564 (1) $ 1,182,542 $ 31,700 (2) Home equity and other 658 80 1,533 2,271 214,364 216,635 — 9,277 3,480 43,492 56,249 1,342,928 1,399,177 31,700 Commercial loans Commercial real estate — — 3,850 3,850 543,721 547,571 — Multifamily — — 1,671 1,671 364,516 366,187 — Construction/land development — — — — 454,817 454,817 — Commercial business — — 3,995 3,995 162,221 166,216 — — — 9,516 9,516 1,525,275 1,534,791 — $ 9,277 $ 3,480 $ 53,008 $ 65,765 $ 2,868,203 $ 2,933,968 $ 31,700 At December 31, 2014 (in thousands) 30-59 days 60-89 days 90 days or Total past Current Total 90 days or (2) Consumer loans Single family $ 7,832 $ 2,452 $ 43,105 $ 53,389 $ 843,276 $ 896,665 $ 34,737 (2) Home equity and other 371 81 1,526 1,978 133,620 135,598 — 8,203 2,533 44,631 55,367 976,896 1,032,263 34,737 Commercial loans Commercial real estate — — 4,843 4,843 518,621 523,464 — Multifamily — — — — 55,088 55,088 — Construction/land development — 1,261 — 1,261 366,673 367,934 — Commercial business 611 3 1,527 2,141 145,308 147,449 250 611 1,264 6,370 8,245 1,085,690 1,093,935 250 $ 8,814 $ 3,797 $ 51,001 $ 63,612 $ 2,062,586 $ 2,126,198 $ 34,987 (1) Includes $38.2 million of loans at June 30, 2015 where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. (2) FHA-insured and VA-guaranteed single family loans that are 90 days or more past due are maintained on accrual status if they are determined to have little to no risk of loss. The following tables present performing and nonperforming loan balances by loan portfolio segment and loan class. At June 30, 2015 (in thousands) Accrual Nonaccrual (2) Total Consumer loans Single family $ 1,172,283 (1) $ 10,259 $ 1,182,542 Home equity and other 215,102 1,533 216,635 1,387,385 11,792 1,399,177 Commercial loans Commercial real estate 543,721 3,850 547,571 Multifamily 364,516 1,671 366,187 Construction/land development 454,817 — 454,817 Commercial business 162,221 3,995 166,216 1,525,275 9,516 1,534,791 $ 2,912,660 $ 21,308 $ 2,933,968 (1) Includes $38.2 million of loans at June 30, 2015 where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. (2) Included in this balance are $8.5 million of acquired nonperforming loans. At December 31, 2014 (in thousands) Accrual Nonaccrual Total Consumer loans Single family $ 888,297 $ 8,368 $ 896,665 Home equity and other 134,072 1,526 135,598 1,022,369 9,894 1,032,263 Commercial loans Commercial real estate 518,621 4,843 523,464 Multifamily 55,088 — 55,088 Construction/land development 367,934 — 367,934 Commercial business 146,172 1,277 147,449 1,087,815 6,120 1,093,935 $ 2,110,184 $ 16,014 $ 2,126,198 The following tables present information about troubled debt restructurings ("TDRs") activity during the periods presented. Three Months Ended June 30, 2015 (dollars in thousands) Concession type Number of loan modifications Recorded investment Related charge- offs Consumer loans Single family Interest rate reduction 17 $ 4,402 $ — Payment restructure — — — Home equity and other Interest rate reduction — — — Total consumer Interest rate reduction 17 4,402 — Payment restructure — — — 17 4,402 — Commercial loans Commercial real estate Interest rate reduction — — — Payment restructure — — — Commercial business Interest rate reduction 2 482 — Forgiveness of principal — — — Total commercial Interest rate reduction 2 482 — Payment restructure — — — Forgiveness of principal — — — 2 482 — Total loans Interest rate reduction 19 4,884 — Payment restructure — — — Forgiveness of principal — — — 19 $ 4,884 $ — Three Months Ended June 30, 2014 (dollars in thousands) Concession type Number of loan modifications Recorded investment Related charge- offs Consumer loans Single family Interest rate reduction 15 $ 2,430 $ — Total consumer Interest rate reduction 15 2,430 — 15 2,430 — Commercial loans Commercial real estate Payment restructure 2 2,092 — Commercial business Forgiveness of principal 1 208 288 Total commercial Payment restructure 2 2,092 — Forgiveness of principal 1 208 288 3 2,300 288 Total loans Interest rate redu |
