Loans and Leases | 5. LOANS AND LEASES Following is a summary of loans and leases, net of unearned income: Originated Loans Acquired Loans Total Loans and March 31, 2016 Commercial real estate $ 3,605,301 $ 1,648,359 $ 5,253,660 Commercial and industrial 2,574,321 471,946 3,046,267 Commercial leases 202,605 — 202,605 Total commercial loans and leases 6,382,227 2,120,305 8,502,532 Direct installment 1,686,037 104,765 1,790,802 Residential mortgages 1,105,680 425,699 1,531,379 Indirect installment 1,025,413 314 1,025,727 Consumer lines of credit 1,034,681 226,812 1,261,493 Other 53,666 — 53,666 $ 11,287,704 $ 2,877,895 $ 14,165,599 Originated Loans Acquired Loans Total Loans and December 31, 2015 Commercial real estate $ 3,531,146 $ 577,910 $ 4,109,056 Commercial and industrial 2,534,351 67,371 2,601,722 Commercial leases 204,553 — 204,553 Total commercial loans and leases 6,270,050 645,281 6,915,331 Direct installment 1,660,717 45,919 1,706,636 Residential mortgages 1,044,689 351,282 1,395,971 Indirect installment 996,175 554 996,729 Consumer lines of credit 1,021,830 115,425 1,137,255 Other 38,518 — 38,518 $ 11,031,979 $ 1,158,461 $ 12,190,440 Commercial real estate includes both owner-occupied and non-owner-occupied loans secured by commercial properties. Commercial and industrial includes loans to businesses that are not secured by real estate. Commercial leases are made for new or used equipment. Direct installment is comprised of fixed-rate, closed-end consumer loans for personal, family or household use, such as home equity loans and automobile loans. Residential mortgages consist of conventional and jumbo mortgage loans for non-commercial properties. Indirect installment is comprised of loans originated by third parties and underwritten by the Corporation, primarily automobile loans. Consumer lines of credit include home equity lines of credit (HELOC) and consumer lines of credit that are either unsecured or secured by collateral other than home equity. Other is comprised primarily of credit cards, mezzanine loans and student loans. The loan and lease portfolio consists principally of loans to individuals and small- and medium-sized businesses within the Corporation’s primary market area of Pennsylvania, eastern Ohio, Maryland and northern West Virginia. The total loan portfolio also contains consumer finance loans to individuals in Pennsylvania, Ohio, Tennessee and Kentucky, which totaled $180,889 or 1.3% of total loans and leases at March 31, 2016, compared to $186,162 or 1.5% of total loans and leases at December 31, 2015. Due to the relative size of the consumer finance loan portfolio, these loans are not segregated from other consumer loans. As of March 31, 2016, 38.2% of the commercial real estate loans were owner-occupied, while the remaining 61.8% were non-owner-occupied, compared to 38.1% and 61.9%, respectively, as of December 31, 2015. As of March 31, 2016 and December 31, 2015, the Corporation had commercial construction loans of $458,388 and $352,322, respectively, representing 3.2% and 2.9% of total loans and leases at those respective dates. Acquired Loans All acquired loans were initially recorded at fair value at the acquisition date. The outstanding balance and the carrying amount of acquired loans included in the consolidated balance sheet are as follows: March 31, 2016 December 31, Accounted for under ASC 310-30: Outstanding balance $ 2,849,661 $ 1,258,418 Carrying amount 2,485,752 1,011,139 Accounted for under ASC 310-20: Outstanding balance 403,252 146,161 Carrying amount 386,564 140,595 Total acquired loans: Outstanding balance 3,252,913 1,404,579 Carrying amount 2,872,316 1,151,734 The carrying amount of purchased credit impaired loans included in the table above totaled $17,161 at March 31, 2016 and $5,940 at December 31, 2015, representing less than 1% of the carrying amount of total acquired loans as of each date. The following table provides changes in accretable yield for all acquired loans accounted for under ASC 310-30. Loans accounted for under ASC 310-20 are not included in this table. Three Months Ended 2016 2015 Balance at beginning of period $ 256,120 $ 331,899 Acquisitions 284,092 — Reduction due to unexpected early payoffs (9,375 ) (11,909 ) Reclass from non-accretable difference 10,494 7,676 Disposals/transfers (260 ) (118 ) Accretion (13,204 ) (16,264 ) Balance at end of period $ 527,867 $ 311,284 The following table reflects amounts at acquisition for all purchased loans subject to ASC 310-30 (impaired and non-impaired) acquired from METR. Acquired Acquired Performing Loans Total Contractually required cash flows at acquisition $ 99,611 $ 2,074,623 $ 2,174,234 Non-accretable difference (expected losses and foregone interest) (52,995 ) (248,666 ) (301,661 ) Cash flows expected to be collected at acquisition 46,616 1,825,957 1,872,573 Accretable yield (1,063 ) (283,029 ) (284,092 ) Basis in acquired loans at acquisition $ 45,553 $ 1,542,928 $ 1,588,481 In addition, loans purchased in the METR acquisition that were not subject to ASC 310-30 had the following balances at the date of acquisition: fair value of $273,966; unpaid principal balance of $296,484; and contractual cash flows not expected to be collected of $98,021. Credit Quality Management monitors the credit quality of the Corporation’s loan and lease portfolio on an ongoing basis. Measurement of delinquency and past due status is based on the contractual terms of each loan. Non-performing loans include non-accrual loans and non-performing troubled debt restructurings (TDRs). Past due loans are reviewed on a monthly basis to identify loans for non-accrual status. The Corporation places a loan on non-accrual status and discontinues interest accruals on originated loans generally when principal or interest is due and has remained unpaid for a certain number of days or when the principal and interest is deemed uncollectible, unless the loan is both well secured and in the process of collection. Commercial loans are placed on non-accrual at 90 days, installment loans are placed on non-accrual at 120 days and residential mortgages and consumer lines of credit are generally placed on non-accrual at 180 days. When a loan is placed on non-accrual status, all unpaid interest is reversed. Non-accrual loans may not be restored to accrual status until all delinquent principal and interest have been paid and the ultimate ability to collect the remaining principal and interest is reasonably assured. TDRs are loans in which the borrower has been granted a concession on the interest rate or the original repayment terms due to financial distress. Following is a summary of non-performing assets: March 31, 2016 December 31, Non-accrual loans $ 63,036 $ 49,897 Troubled debt restructurings 21,453 22,028 Total non-performing loans 84,489 71,925 Other real estate owned (OREO) 50,526 38,918 Total non-performing assets $ 135,015 $ 110,843 Asset quality ratios: Non-performing loans as a percent of total loans and leases 0.60 % 0.59 % Non-performing loans + OREO as a percent of total loans and leases + OREO 0.95 % 0.91 % Non-performing assets as a percent of total assets 0.66 % 0.63 % The carrying value of residential OREO held as a result of obtaining physical possession upon completion of a foreclosure or through completion of a deed in lieu of foreclosure totaled $4,590 at March 31, 2016 and $5,219 at December 31, 2015. The recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process at March 31, 2016 and December 31, 2015 totaled $10,174 and $11,725, respectively. The following tables provide an analysis of the aging of the Corporation’s past due loans by class, segregated by loans and leases originated and loans acquired: 30-89 Days Past Due ³ 90 Days Non- Accrual Total Past Due Current Total Loans and Originated Loans and Leases March 31, 2016 Commercial real estate $ 9,342 $ 1 $ 24,083 $ 33,426 $ 3,571,875 $ 3,605,301 Commercial and industrial 4,653 3 24,627 29,283 2,545,038 2,574,321 Commercial leases 1,422 15 894 2,331 200,274 202,605 Total commercial loans and leases 15,417 19 49,604 65,040 6,317,187 6,382,227 Direct installment 6,845 3,463 5,646 15,954 1,670,083 1,686,037 Residential mortgages 7,398 1,545 3,446 12,389 1,093,291 1,105,680 Indirect installment 5,479 369 1,347 7,195 1,018,218 1,025,413 Consumer lines of credit 1,523 661 1,954 4,138 1,030,543 1,034,681 Other 49 63 — 112 53,554 53,666 $ 36,711 $ 6,120 $ 61,997 $ 104,828 $ 11,182,876 $ 11,287,704 December 31, 2015 Commercial real estate $ 11,006 $ 1 $ 23,503 $ 34,510 $ 3,496,636 $ 3,531,146 Commercial and industrial 5,409 3 14,382 19,794 2,514,557 2,534,351 Commercial leases 924 — 659 1,583 202,970 204,553 Total commercial loans and leases 17,339 4 38,544 55,887 6,214,163 6,270,050 Direct installment 9,254 3,813 4,806 17,873 1,642,844 1,660,717 Residential mortgages 8,135 1,470 2,882 12,487 1,032,202 1,044,689 Indirect installment 9,472 379 1,361 11,212 984,963 996,175 Consumer lines of credit 2,410 1,189 1,181 4,780 1,017,050 1,021,830 Other 73 169 — 242 38,276 38,518 $ 46,683 $ 7,024 $ 48,774 $ 102,481 $ 10,929,498 $ 11,031,979 30-89 Days Past Due ³ 90 Days and Still Non- Accrual Total Past Due (1) (2) Current Discount Total Loans Acquired Loans March 31, 2016 Commercial real estate $ 27,329 $ 23,563 $ 740 $ 51,632 $ 1,695,949 $ (99,222 ) $ 1,648,359 Commercial and industrial 1,879 6,596 152 8,627 499,764 (36,445 ) 471,946 Total commercial loans 29,208 30,159 892 60,259 2,195,713 (135,667 ) 2,120,305 Direct installment 2,855 958 — 3,813 97,964 2,988 104,765 Residential mortgages 11,010 15,498 — 26,508 436,528 (37,337 ) 425,699 Indirect installment — 6 — 6 413 (105 ) 314 Consumer lines of credit 1,578 1,292 147 3,017 228,682 (4,887 ) 226,812 $ 44,651 $ 47,913 $ 1,039 $ 93,603 $ 2,959,300 $ (175,008 ) $ 2,877,895 December 31, 2015 Commercial real estate $ 6,399 $ 12,752 $ 931 $ 20,082 $ 593,128 $ (35,300 ) $ 577,910 Commercial and industrial 1,065 616 103 1,784 72,037 (6,450 ) 67,371 Total commercial loans 7,464 13,368 1,034 21,866 665,165 (41,750 ) 645,281 Direct installment 837 659 — 1,496 43,596 827 45,919 Residential mortgages 5,871 15,136 — 21,007 366,742 (36,467 ) 351,282 Indirect installment 32 9 — 41 571 (58 ) 554 Consumer lines of credit 830 546 89 1,465 117,443 (3,483 ) 115,425 $ 15,034 $ 29,718 $ 1,123 $ 45,875 $ 1,193,517 $ (80,931 ) $ 1,158,461 (1) Past due information for acquired loans is based on the contractual balance outstanding at March 31, 2016 and December 31, 2015. (2) Acquired loans are considered performing upon acquisition, regardless of whether the customer is contractually delinquent, as long as the Corporation can reasonably estimate the timing and amount of expected cash flows on such loans. In these instances, the Corporation does not consider acquired contractually delinquent loans to be non-accrual or non-performing and continues to recognize interest income on these loans using the accretion method. Acquired loans are considered non-accrual or non-performing when, due to credit deterioration or other factors, the Corporation determines it is no longer able to reasonably estimate the timing and amount of expected cash flows on such loans. The Corporation does not recognize interest income on acquired loans considered non-accrual or non-performing. The Corporation utilizes the following categories to monitor credit quality within its commercial loan and lease portfolio: Rating Category Definition Pass in general, the condition and performance of the borrower is satisfactory or better Special Mention in general, the condition of the borrower has deteriorated, requiring an increased level of monitoring Substandard in general, the condition and performance of the borrower has significantly deteriorated and could further deteriorate if deficiencies are not corrected Doubtful in general, the condition of the borrower has significantly deteriorated and the collection in full of both principal and interest is highly questionable or improbable The use of these internally assigned credit quality categories within the commercial loan and lease portfolio permits management’s use of transition matrices to estimate a quantitative portion of credit risk. The Corporation’s internal credit risk grading system is based on past experiences with similarly graded loans and leases and conforms with regulatory categories. In general, loan and lease risk ratings within each category are reviewed on an ongoing basis according to the Corporation’s policy for each class of loans and leases. Each quarter, management analyzes the resulting ratings, as well as other external statistics and factors such as delinquency, to track the migration performance of the commercial loan and lease portfolio. Loans and leases within the Pass credit category or that migrate toward the Pass credit category generally have a lower risk of loss compared to loans and leases that migrate toward the Substandard or Doubtful credit categories. Accordingly, management applies higher risk factors to Substandard and Doubtful credit categories. The following tables present a summary of the Corporation’s commercial loans and leases by credit quality category, segregated by loans and leases originated and loans acquired: Originated Commercial Loan and Lease Credit Quality Categories Pass Special Substandard Doubtful Total Originated Loans and Leases March 31, 2016 Commercial real estate $ 3,445,547 $ 97,426 $ 61,928 $ 400 $ 3,605,301 Commercial and industrial 2,346,483 114,408 107,818 5,612 2,574,321 Commercial leases 194,947 3,121 4,537 — 202,605 $ 5,986,977 $ 214,955 $ 174,283 $ 6,012 $ 6,382,227 December 31, 2015 Commercial real estate $ 3,416,527 $ 52,887 $ 61,411 $ 321 $ 3,531,146 Commercial and industrial 2,335,103 109,539 87,380 2,329 2,534,351 Commercial leases 198,207 2,447 3,899 — 204,553 $ 5,949,837 $ 164,873 $ 152,690 $ 2,650 $ 6,270,050 Acquired Loans March 31, 2016 Commercial real estate $ 1,331,863 $ 156,709 $ 152,929 $ 6,858 $ 1,648,359 Commercial and industrial 369,178 23,214 77,897 1,657 471,946 $ 1,701,041 $ 179,923 $ 230,826 $ 8,515 $ 2,120,305 December 31, 2015 Commercial real estate $ 464,162 $ 47,619 $ 66,129 — $ 577,910 Commercial and industrial 56,446 3,182 7,743 — 67,371 $ 520,608 $ 50,801 $ 73,872 — $ 645,281 Credit quality information for acquired loans is based on the contractual balance outstanding at March 31, 2016 and December 31, 2015. The increase in acquired loans in 2016 relates to the METR acquisition completed on February 13, 2016. The Corporation uses delinquency transition matrices within the consumer and other loan classes to enable management to estimate a quantitative portion of credit risk. Each month, management analyzes payment and volume activity, FICO scores and other external factors such as unemployment, to determine how consumer loans are performing. Following is a table showing originated consumer loans by payment status: Originated Consumer Loan Credit Quality by Payment Status Performing Non- Performing Total March 31, 2016 Direct installment $ 1,671,896 $ 14,141 $ 1,686,037 Residential mortgages 1,092,329 13,351 1,105,680 Indirect installment 1,023,909 1,504 1,025,413 Consumer lines of credit 1,031,798 2,883 1,034,681 Other 53,666 — 53,666 $ 4,873,598 $ 31,879 $ 4,905,477 Originated Consumer Loan Credit Quality by Payment Status Performing Non- Performing Total December 31, 2015 Direct installment $ 1,646,925 $ 13,792 $ 1,660,717 Residential mortgages 1,031,926 12,763 1,044,689 Indirect installment 994,661 1,514 996,175 Consumer lines of credit 1,019,783 2,047 1,021,830 Other 38,518 — 38,518 $ 4,731,813 $ 30,116 $ 4,761,929 Loans and leases are designated as impaired when, in the opinion of management, based on current information and events, the collection of principal and interest in accordance with the loan and lease contract is doubtful. Typically, the Corporation does not consider loans and leases for impairment unless a sustained period of delinquency (i.e., 90-plus days) is noted or there are subsequent events that impact repayment probability (i.e., negative financial trends, bankruptcy filings, imminent foreclosure proceedings, etc.). Impairment is evaluated in the aggregate for consumer installment loans, residential mortgages, consumer lines of credit and commercial loan and lease relationships less than $500 based on loan and lease segment loss given default. For commercial loan relationships greater than or equal to $500, a specific valuation allowance is allocated, if necessary, so that the loan is reported net, at the present value of estimated future cash flows using a market interest rate or at the fair value of collateral if repayment is expected solely from the collateral. Consistent with the Corporation’s existing method of income recognition for loans and leases, interest on impaired loans, except those classified as non-accrual, is recognized as income using the accrual method. Impaired loans, or portions thereof, are charged off when deemed uncollectible. Following is a summary of information pertaining to originated loans and leases considered to be impaired, by class of loan and lease: Unpaid Principal Balance Recorded Investment Reserve Recorded Investment Specific Reserve Total Recorded Investment Specific Average Recorded Investment At or for the Three Months Ended March 31, 2016 Commercial real estate $ 33,434 $ 24,035 $ 1,520 $ 25,555 $ 400 $ 25,374 Commercial and industrial 25,965 12,042 12,479 24,521 5,612 19,620 Commercial leases 894 894 — 894 — — Total commercial loans and leases 60,293 36,971 13,999 50,970 6,012 44,994 Direct installment 15,135 14,141 — 14,141 — 13,966 Residential mortgages 13,881 13,351 — 13,351 — 13,058 Indirect installment 3,667 1,504 — 1,504 — 1,509 Consumer lines of credit 3,436 2,883 — 2,883 — 2,465 $ 96,412 $ 68,850 $ 13,999 $ 82,849 $ 6,012 $ 75,992 At or for the Year Ended December 31, 2015 Commercial real estate $ 33,780 $ 24,423 $ 772 $ 25,195 $ 321 $ 26,143 Commercial and industrial 15,860 9,176 5,543 14,719 2,329 12,298 Commercial leases 659 659 — 659 — 747 Total commercial loans and leases 50,299 34,258 6,315 40,573 2,650 39,188 Direct installment 14,679 13,792 — 13,792 — 13,267 Residential mortgages 13,394 12,763 — 12,763 — 12,896 Indirect installment 3,745 1,514 — 1,514 — 1,401 Consumer lines of credit 2,408 2,047 — 2,047 — 2,198 $ 84,525 $ 64,374 $ 6,315 $ 70,689 $ 2,650 $ 68,950 Interest income is generally no longer recognized once a loan becomes impaired. These tables do not reflect the additional allowance for credit losses relating to acquired loans in the following pools and categories: commercial real estate of $2,821; commercial and industrial of $499; direct installment of $1,322; residential mortgages of $487; indirect installment of $222; and consumer lines of credit of $229, totaling $5,580 at March 31, 2016 and commercial real estate of $3,073; commercial and industrial of $695; direct installment of $1,557; residential mortgages of $659; indirect installment of $221; and consumer lines of credit of $522, totaling $6,727 at December 31, 2015. Troubled Debt Restructurings TDRs are loans whose contractual terms have been modified in a manner that grants a concession to a borrower experiencing financial difficulties. TDRs typically result from loss mitigation activities and could include the extension of a maturity date, interest rate reduction, principal forgiveness, deferral or decrease in payments for a period of time and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of collateral. Following is a summary of the payment status of originated TDRs: March 31, 2016 December 31, Accruing: Performing $ 16,508 $ 15,165 Non-performing 21,453 22,028 Non-accrual 11,953 8,307 $ 49,914 $ 45,500 TDRs that are accruing and performing include loans that met the criteria for non-accrual of interest prior to restructuring for which the Corporation can reasonably estimate the timing and amount of the expected cash flows on such loans and for which the Corporation expects to fully collect the new carrying value of the loans. During the three months ended March 31, 2016, the Corporation returned to performing status $2,488 in restructured residential mortgage loans that have consistently met their modified obligations for more than six months. TDRs that are accruing and non-performing are comprised of consumer loans that have not demonstrated a consistent repayment pattern on the modified terms for more than six months, however it is expected that the Corporation will collect all future principal and interest payments. TDRs that are on non-accrual are not placed on accruing status until all delinquent principal and interest have been paid and the ultimate collectability of the remaining principal and interest is reasonably assured. Some loan modifications classified as TDRs may not ultimately result in the full collection of principal and interest, as modified, and may result in potential incremental losses which are factored into the allowance for credit losses. Excluding purchased impaired loans, commercial loans over $500 whose terms have been modified in a TDR are generally placed on non-accrual, individually analyzed and measured for estimated impairment based on the fair value of the underlying collateral. The Corporation’s allowance for credit losses included specific reserves for commercial TDRs of $298 and $300 at March 31, 2016 and December 31, 2015, respectively, and pooled reserves for individual loans under $500 of $865 and $929 for those same respective periods, based on loan segment loss given default. Upon default, the amount of the recorded investment in the TDR in excess of the fair value of the collateral, less estimated selling costs, is generally considered a confirmed loss and is charged-off against the allowance for credit losses. All other classes of loans, which are primarily secured by residential properties, whose terms have been modified in a TDR are pooled and measured for estimated impairment based on the expected net present value of the estimated future cash flows of the pool. The Corporation’s allowance for credit losses included pooled reserves for these classes of loans of $3,405 and $3,515 at March 31, 2016 and December 31, 2015, respectively. Upon default of an individual loan, the Corporation’s charge-off policy is followed accordingly for that class of loan. The majority of TDRs are the result of interest rate concessions for a limited period of time. Following is a summary of originated loans, by class, that have been restructured: Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 Number of Contracts Pre- Modification Recorded Investment Post- Outstanding Recorded Investment Number of Contracts Pre- Modification Recorded Investment Post- Outstanding Recorded Investment Commercial real estate 4 $ 778 $ 760 2 $ 312 $ 196 Commercial and industrial 2 5,565 3,279 — — — Total commercial loans 6 6,343 4,039 2 312 196 Direct installment 145 1,991 1,961 131 1,526 1,484 Residential mortgages 18 968 951 14 581 631 Indirect installment 3 11 12 5 16 16 Consumer lines of credit 20 243 238 16 270 270 192 $ 9,556 $ 7,201 168 $ 2,705 $ 2,597 Following is a summary of originated TDRs, by class of loans and leases, for which there was a payment default, excluding loans that were either charged-off or cured by period end. Default occurs when a loan is 90 days or more past due and is within 12 months of restructuring. Three Months Ended March 31, 2016 (1) Three Months Ended March 31, 2015 (1) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Commercial real estate — $ — — $ — Commercial and industrial — — — — Total commercial loans — — — — Direct installment 28 175 37 105 Residential mortgages 1 50 2 102 Indirect installment 4 5 3 4 Consumer lines of credit 1 10 1 92 34 $ 240 43 $ 303 (1) The recorded investment is as of period end. 6. ALLOWANCE FOR CREDIT LOSSES The allowance for credit losses addresses credit losses inherent in the existing loan and lease portfolio and is presented as a reserve against loans and leases on the consolidated balance sheet. Loan and lease losses are charged off against the allowance for credit losses, with recoveries of amounts previously charged off credited to the allowance for credit losses. Provisions for credit losses are charged to operations based on management’s periodic evaluation of the adequacy of the allowance for credit losses. Following is a summary of changes in the allowance for credit losses, by loan and lease class: Balance at Beginning Charge- Recoveries Net Charge- Provision Balance at End of Three Months Ended March 31, 2016 Commercial real estate $ 41,741 $ (1,369 ) $ 597 $ (772 ) $ 2,929 $ 43,898 Commercial and industrial 41,023 (298 ) 190 (108 ) 6,948 47,863 Commercial leases 2,541 (114 ) 14 (100 ) 377 2,818 Total commercial loans and leases 85,305 (1,781 ) 801 (980 ) 10,254 94,579 Direct installment 21,587 (2,667 ) 454 (2,213 ) 1,351 20,725 Residential mortgages 7,909 (85 ) 19 (66 ) (33 ) 7,810 Indirect installment 9,889 (1,942 ) 262 (1,680 ) 856 9,065 Consumer lines of credit 9,582 (474 ) 56 (418 ) (197 ) 8,967 Other 1,013 (554 ) 6 (548 ) 609 1,074 Total allowance on originated loans and leases 135,285 (7,503 ) 1,598 (5,905 ) 12,840 142,220 Purchased credit-impaired loans 834 (160 ) — (160 ) 30 704 Other acquired loans 5,893 (221 ) 306 85 (1,102 ) 4,876 Total allowance on acquired loans 6,727 (381 ) 306 (75 ) (1,072 ) 5,580 Total allowance $ 142,012 $ (7,884 ) $ 1,904 $ (5,980 ) $ 11,768 $ 147,800 Three Months Ended March 31, 2015 Commercial real estate $ 37,588 $ (1,001 ) $ 209 $ (792 ) $ 1,996 $ 38,792 Commercial and industrial 32,645 (684 ) 120 (564 ) 722 32,803 Commercial leases 2,398 (93 ) 10 (83 ) 261 2,576 Total commercial loans and leases 72,631 (1,778 ) 339 (1,439 ) 2,979 74,171 Direct installment 20,538 (2,433 ) 269 (2,164 ) 2,830 21,204 Residential mortgages 8,024 (511 ) 15 (496 ) 943 8,471 Indirect installment 7,504 (1,280 ) 302 (978 ) 1,131 7,657 Consumer lines of credit 8,496 (410 ) 40 (370 ) 764 8,890 Other 759 (335 ) 11 (324 ) 419 854 Total allowance on originated loans and leases 117,952 (6,747 ) 976 (5,771 ) 9,066 121,247 Purchased credit-impaired loans 660 (64 ) 19 (45 ) 6 621 Other acquired loans 7,314 (77 ) 330 253 (936 ) 6,631 Total allowance on acquired loans 7,974 (141 ) 349 208 (930 ) 7,252 Total allowance $ 125,926 $ (6,888 ) $ 1,325 $ (5,563 ) $ 8,136 $ 128,499 Following is a summary of the individual and collective originated allowance for credit losses and corresponding loan and lease balances by class: Originated Allowance Originated Loans and Leases Outstanding Individually Evaluated for Impairment Collectively Evaluated for Impairment Loans and Individually Evaluated for Impairment Collectively Evaluated for Impairment March 31, 2016 Commercial real estate $ 400 $ 43,498 $ 3,605,301 $ 14,260 $ 3,591,041 Commercial and industrial 5,612 42,251 2,574,321 19,679 2,554,642 Commercial leases — 2,818 202,605 — 202,605 Total commercial loans and leases 6,012 88,567 6,382,227 33,939 6,348,288 Direct installment — 20,725 1,686,037 — 1,686,037 Residential mortgages — 7,810 1,105,680 — 1,105,680 Indirect installment — 9,065 1,025,413 — 1,025,413 Consumer lines of credit — 8,967 1,034,681 — 1,034,681 Other — 1,074 53,666 — 53,666 $ 6,012 $ 136,208 $ 11,287,704 $ 33,939 $ 11,253,765 December 31, 2015 Commercial real estate $ 321 $ 41,420 $ 3,531,146 $ 12,904 $ 3,518,242 Commercial and industrial 2,329 38,694 2,534,351 10,802 2,523,549 Commercial leases — 2,541 204,553 — 204,553 Total commercial loans and leases 2,650 82,655 6,270,050 23,706 6,246,344 Direct installment — 21,587 1,660,717 — 1,660,717 Residential mortgages — 7,909 1,044,689 — 1,044,689 Indirect installment — 9,889 996,175 — 996,175 Consumer lines of credit — 9,582 1,021,830 — 1,021,830 Other — 1,013 38,518 — 38,518 $ 2,650 $ 132,635 $ 11,031,979 $ 23,706 $ 11,008,273 |