Allowance for Loan and Lease Loss and Credit Quality

The Bank's methodology for assessing the appropriateness of the Allowance for Loan and Lease Loss ("ALLL") consists of three key elements: 1) the formula allowance; 2) the specific allowance; and 3) the unallocated allowance. By incorporating these factors into a single allowance requirement analysis, we believe all risk-based activities within the loan and lease portfolios are simultaneously considered.

Formula Allowance

When loans and leases are originated or acquired, they are assigned a risk rating that is reassessed periodically during the term of the loan or lease through the credit review process. The Bank's risk rating methodology assigns risk ratings ranging from 1 to 10, where a higher rating represents higher risk. The 10 risk rating categories are a primary factor in determining an appropriate amount for the formula allowance.

The formula allowance is calculated by applying risk factors to various segments of pools of outstanding loans and leases. Risk factors are assigned to each portfolio segment based on management's evaluation of the losses inherent within each segment. Segments or regions with greater risk of loss will therefore be assigned a higher risk factor.

Base risk – The portfolio is segmented into loan categories, and these categories are assigned a Base risk factor based on an evaluation of the loss inherent within each segment.

Extra risk – Additional risk factors provide for an additional allocation of ALLL based on the loan and lease risk rating system and loan delinquency, and reflect the increased level of inherent losses associated with more adversely classified loans and leases.

Risk factors may be changed periodically based on management's evaluation of the following factors: loss experience; changes in the level of non-performing loans and leases; regulatory exam results; changes in the level of adversely classified loans and leases; improvement or deterioration in local economic conditions; and any other factors deemed relevant.

Specific Allowance

Regular credit reviews of the portfolio identify loans that are considered potentially impaired. Potentially impaired loans are referred to the ALLL Committee which reviews and approves designated loans as impaired. A loan is considered impaired when, based on current information and events, we determine that we will probably not be able to collect all amounts due according to the loan contract, including scheduled interest payments. When we identify a loan as impaired, we measure the impairment using discounted cash flows or estimated note sale price, except when the sole remaining source of the repayment for the loan is the liquidation of the collateral. In these cases, we use the current fair value of the collateral, less selling costs, instead of discounted cash flows. If we determine that the value of the impaired loan is less than the recorded investment in the loan, we either recognize an impairment reserve as a specific allowance to be provided for in the allowance for loan and lease losses or charge-off the impaired balance on collateral-dependent loans if it is determined that such amount represents a confirmed loss. Loans determined to be impaired are excluded from the formula allowance so as not to double-count the loss exposure. The non-accrual impaired loans as of period-end have already been partially charged-off to their estimated net realizable value, and are expected to be resolved over the coming quarters with no additional material loss, absent further decline in market prices.

The combination of the formula allowance component and the specific allowance component represents the allocated allowance for loan and lease losses.

Management believes that the ALLL was adequate as of March 31, 2015. There is, however, no assurance that future loan and lease losses will not exceed the levels provided for in the ALLL and could possibly result in additional charges to the provision for loan and lease losses.

The reserve for unfunded commitments ("RUC") is established to absorb inherent losses associated with our commitment to lend funds, such as with a letter or line of credit. The adequacy of the ALLL and RUC are monitored on a regular basis and are based on management's evaluation of numerous factors. These factors include the quality of the current loan portfolio; the trend in the loan portfolio's risk ratings; current economic conditions; loan concentrations; loan growth rates; past-due and non-performing trends; evaluation of specific loss estimates for all significant problem loans; historical charge-off and recovery experience; and other pertinent information.

There have been no significant changes to the Bank's ALLL methodology or policies in the periods presented.

Activity in the Allowance for Loan and Lease Losses

The following table summarizes activity related to the allowance for loan and lease losses by loan and lease portfolio segment for the three months ended March 31, 2015 and 2014:



(in thousands)	Three Months Ended March 31, 2015
	Commercial									Consumer
	Real Estate			Commercial			Residential			& Other			Total
Balance, beginning of period	$	55,184		$	41,216		$	15,922		$	3,845		$	116,167
Charge-offs	(727		)	(4,564		)	(308		)	(6,946		)	(12,545		)
Recoveries	223			1,071			31			2,520			3,845
Provision	502			6,477			576			5,082			12,637
Balance, end of period	$	55,182		$	44,200		$	16,221		$	4,501		$	120,104

	Three Months Ended March 31, 2014
	Commercial									Consumer
	Real Estate			Commercial			Residential			& Other			Total
Balance, beginning of period	$	59,538		$	27,028		$	7,487		$	1,032		$	95,085
Charge-offs	(2,241		)	(3,519		)	(250		)	(224		)	(6,234		)
Recoveries	830			1,102			162			113			2,207
Provision (recapture)	(209		)	5,620			424			136			5,971
Balance, end of period	$	57,918		$	30,231		$	7,823		$	1,057		$	97,029

The following table presents the allowance and recorded investment in loans and leases by portfolio segment as of March 31, 2015 and 2014:



(in thousands)	March 31, 2015
	Commercial						Consumer
	Real Estate		Commercial		Residential		& Other		Total
Allowance for loans and leases:
Collectively evaluated for impairment	$	49,543	$	41,436	$	15,521	$	4,437	$	110,937
Individually evaluated for impairment	1,081		319		—		—		1,400
Loans acquired with deteriorated credit quality	4,558		2,445		700		64		7,767
Total	$	55,182	$	44,200	$	16,221	$	4,501	$	120,104
Loans and leases:
Collectively evaluated for impairment	$	8,475,620	$	2,919,336	$	3,124,655	$	413,882	$	14,933,493
Individually evaluated for impairment	66,481		27,859		—		—		94,340
Loans acquired with deteriorated credit quality	422,878		28,154		68,939		1,153		521,124
Total	$	8,964,979	$	2,975,349	$	3,193,594	$	415,035	$	15,548,957



(in thousands)	March 31, 2014
	Commercial						Consumer
	Real Estate		Commercial		Residential		& Other		Total
Allowance for loans and leases:
Collectively evaluated for impairment	$	50,613	$	27,000	$	7,242	$	959	$	85,814
Individually evaluated for impairment	1,343		15		—		—		1,358
Loans acquired with deteriorated credit quality	5,962		3,216		581		98		9,857
Total	$	57,918	$	30,231	$	7,823	$	1,057	$	97,029
Loans and leases:
Collectively evaluated for impairment	$	4,223,962	$	2,124,134	$	924,561	$	50,637	$	7,323,294
Individually evaluated for impairment	91,190		14,541		—		—		105,731
Loans acquired with deteriorated credit quality	286,507		10,807		35,775		1,577		334,666
Total	$	4,601,659	$	2,149,482	$	960,336	$	52,214	$	7,763,691

The loan and lease balances are net of net deferred loans costs of $31.7 million and $4.7 million at March 31, 2015 and March 31, 2014, respectively.

Summary of Reserve for Unfunded Commitments Activity

The following table presents a summary of activity in the RUC and unfunded commitments for the three months ended March 31, 2015 and 2014:



(in thousands)	Three Months Ended
	March 31,
	2015			2014
Balance, beginning of period	$	3,539		$	1,436
Net change to other expense	(345		)	(19		)
Balance, end of period	$	3,194		$	1,417



(in thousands)
	Total
Unfunded loan and lease commitments:
March 31, 2015	$	3,993,400
March 31, 2014	$	1,595,665

Loans and leases sold

In the course of managing the loan and lease portfolio, at certain times, management may decide to sell loans and leases. The following table summarizes loans and leases sold by loan portfolio during the three months ended March 31, 2015 and 2014:



(in thousands)	Three Months Ended
	March 31,
	2015		2014
Commercial real estate
Non-owner occupied term	$	—	$	3,193
Owner occupied term	3,319		2,147
Multifamily	435		—
Residential development	—		605
Commercial
Term	2,340		15,996
Residential
Mortgage	66,753		331
Total	$	72,847	$	22,272

Asset Quality and Non-Performing Loans and Leases

We manage asset quality and control credit risk through diversification of the loan and lease portfolio and the application of policies designed to promote sound underwriting and loan and lease monitoring practices. The Bank's Credit Quality Administration is charged with monitoring asset quality, establishing credit policies and procedures and enforcing the consistent application of these policies and procedures across the Bank. Reviews of non-performing, past due loans and leases and larger credits, designed to identify potential charges to the allowance for loan and lease losses, and to determine the adequacy of the allowance, are conducted on an ongoing basis. These reviews consider such factors as the financial strength of borrowers, the value of the applicable collateral, loan and lease loss experience, estimated loan and lease losses, growth in the loan and lease portfolio, prevailing economic conditions and other factors.

Non-Accrual Loans and Leases and Loans and Leases Past Due

The following table summarizes our non-accrual loans and leases and loans and leases past due, by loan and lease class, as of March 31, 2015 and December 31, 2014:



(in thousands)	March 31, 2015
	Greater than 30 to 59 Days Past Due		60 to 89 Days Past Due		Greater than 90 Days and Accruing		Total Past Due		Non-Accrual		Current & Other (1)		Total Loans and Leases
Commercial real estate
Non-owner occupied term, net	$	487	$	585	$	2,425	$	3,497	$	6,974	$	3,293,158	$	3,303,629
Owner occupied term, net	2,599		2,786		—		5,385		9,219		2,562,880		2,577,484
Multifamily, net	420		—		—		420		—		2,763,983		2,764,403
Construction & development, net	—		—		—		—		—		238,303		238,303
Residential development, net	—		—		—		—		—		81,160		81,160
Commercial
Term, net	1,108		3		21		1,132		17,981		1,109,873		1,128,986
LOC & other, net	927		664		103		1,694		1,611		1,272,566		1,275,871
Leases and equipment finance, net	2,349		1,552		—		3,901		3,358		563,233		570,492
Residential
Mortgage, net	1,485		340		6,874		8,699		636		2,320,990		2,330,325
Home equity loans & lines, net	1,471		1,454		731		3,656		433		859,180		863,269
Consumer & other, net	1,629		629		262		2,520		34		412,481		415,035
Total, net of deferred fees and costs	$	12,475	$	8,013	$	10,416	$	30,904	$	40,246	$	15,477,807	$	15,548,957

(1) Other includes purchased credit impaired loans of $521.1 million.



(in thousands)	December 31, 2014
	Greater than 30 to 59 Days Past Due		60 to 89 Days Past Due		Greater than 90 Days and Accruing		Total Past Due		Non-Accrual		Current & Other (1)		Total Loans and Leases



Commercial real estate
Non-owner occupied term, net	$	452	$	—	$	283	$	735	$	8,957	$	3,280,918	$	3,290,610
Owner occupied term, net	2,304		347		—		2,651		8,292		2,622,921		2,633,864
Multifamily, net	—		512		—		512		300		2,637,806		2,638,618
Construction & development, net	1,091		—		—		1,091		—		257,631		258,722
Residential development, net	6,155		—		—		6,155		—		75,691		81,846
Commercial
Term, net	1,098		242		3		1,343		19,097		1,082,547		1,102,987
LOC & other, net	1,637		1,155		1,223		4,015		8,825		1,309,882		1,322,722
Leases and equipment finance, net	1,482		1,695		695		3,872		5,084		514,158		523,114
Residential
Mortgage, net	8		1,224		4,289		5,521		655		2,227,559		2,233,735
Home equity loans & lines, net	1,924		702		749		3,375		615		848,488		852,478
Consumer & other, net	2,133		498		270		2,901		216		385,919		389,036
Total, net of deferred fees and costs	$	18,284	$	6,375	$	7,512	$	32,171	$	52,041	$	15,243,520	$	15,327,732

(1) Other includes purchased credit impaired loans of $562.9 million

Impaired Loans

Loans with no related allowance reported generally represent non-accrual loans. The Bank recognizes the charge-off on impaired loans in the period it arises for collateral-dependent loans. Therefore, the non-accrual loans as of March 31, 2015 have already been written down to their estimated net realizable value and are expected to be resolved with no additional material loss, absent further decline in market prices. The valuation allowance on impaired loans primarily represents the impairment reserves on performing restructured loans, and is measured by comparing the present value of expected future cash flows on the restructured loans discounted at the interest rate of the original loan agreement to the loan's carrying value.

The following table summarizes our impaired loans by loan class as of March 31, 2015 and December 31, 2014:



(in thousands)	March 31, 2015
	Unpaid		Recorded Investment
	Principal		Without		With		Related
	Balance		Allowance		Allowance		Allowance

Commercial real estate
Non-owner occupied term, net	$	41,615	$	14,936	$	22,100	$	502
Owner occupied term, net	15,531		8,203		7,064		361
Multifamily, net	3,519		—		3,519		49
Construction & development, net	2,655		—		1,091		7
Residential development, net	9,568		—		9,568		162
Commercial
Term, net	29,026		20,600		256		12
LOC & other, net	14,515		1,611		5,392		307
Residential
Mortgage, net	—		—		—		—
Home equity loans & lines, net	622		—		—		—
Consumer & other, net	150		—		—		—
Total, net of deferred fees and costs	$	117,201	$	45,350	$	48,990	$	1,400



(in thousands)	December 31, 2014
	Unpaid		Recorded Investment
	Principal		Without		With		Related
	Balance		Allowance		Allowance		Allowance

Commercial real estate
Non-owner occupied term, net	$	42,793	$	16,916	$	22,190	$	502
Owner occupied term, net	16,339		8,290		7,655		364
Multifamily, net	4,040		300		3,519		49
Construction & development, net	2,655		—		1,091		7
Residential development, net	9,670		—		9,675		166
Commercial
Term, net	31,733		18,701		256		12
LOC & other, net	18,761		8,575		5,404		308
Residential
Mortgage, net	—		—		—		—
Home equity loans & lines, net	626		—		—		—
Consumer & other, net	152		—		—		—
Total, net of deferred fees and costs	$	126,769	$	52,782	$	49,790	$	1,408

The following table summarizes our average recorded investment and interest income recognized on impaired loans by loan class for the three months ended March 31, 2015 and 2014:



(in thousands)	Three Months Ended				Three Months Ended
	March 31, 2015				March 31, 2014
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
Commercial real estate
Non-owner occupied term, net	$	38,071	$	323	$	51,674	$	349
Owner occupied term, net	15,606		65		12,293		77
Multifamily, net	3,669		31		645		—
Construction & development, net	1,091		11		9,558		118
Residential development, net	9,622		103		16,065		159
Commercial
Term, net	19,907		3		10,643		4
LOC & other, net	10,491		47		2,378		13
Residential
Mortgage, net	—		—		—		—
Home equity loans & lines, net	—		—		—		—
Consumer & other, net	—		—		—		—
Total, net of deferred fees and costs	$	98,457	$	583	$	103,256	$	720

The impaired loans for which these interest income amounts were recognized primarily relate to accruing restructured loans.

Credit Quality Indicators

As previously noted, the Bank's risk rating methodology assigns risk ratings ranging from 1 to 10, where a higher rating represents higher risk. The Bank differentiates its lending portfolios into homogeneous loans and leases and non-homogeneous loans and leases. The 10 risk rating categories can be generally described by the following groupings for non-homogeneous loans and leases:

Minimal Risk—A minimal risk loan or lease, risk rated 1, 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 or lease, risk rated 2, is similar in characteristics to a minimal risk loan. Margins may be smaller or protective elements may be subject to greater fluctuation. The borrower will have a strong demonstrated ability to produce profits, provide ample debt service coverage and to absorb market disturbances.

Modest Risk—A modest risk loan or lease, risk rated 3, is a desirable loan or lease with excellent sources of repayment and no currently identifiable risk associated with collection. The borrower exhibits a very strong capacity to repay the credit in accordance with the repayment agreement. The borrower may be susceptible to economic cycles, but will have reserves to weather these cycles.

Average Risk—An average risk loan or lease, risk rated 4, is an attractive loan or lease 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 or lease, risk rated 5, is a loan or lease 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 or lease, risk rated 6, 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.

Special Mention—A special mention loan or lease, risk rated 7, 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 asset or the institution's credit position at some future date. They contain unfavorable characteristics and are generally undesirable. Loans and leases 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 or lease has potential weaknesses, which if not checked or corrected, weaken the asset or inadequately protect the Bank's position at some future date.

Substandard—A substandard asset, risk rated 8, is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets classified substandard. Loans and leases are classified as substandard when they have unsatisfactory characteristics causing unacceptable levels of risk. A substandard loan or lease normally has one or more well-defined weaknesses that could jeopardize repayment of the debt. 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.

Doubtful—Loans or leases classified as doubtful, risk rated 9, 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 asset, 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 Bank 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 or leases classified as loss, risk rated 10, are considered un-collectible and of such little value that the continuance as an active Bank asset is not warranted. This rating does not mean that the loan or lease has no recovery or salvage value, but rather that the loan or lease 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 Bank 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 non-accrual and troubled debt restructurings. Impaired loans are risk rated for internal and regulatory rating purposes, but presented separately for clarification.

Homogeneous loans and leases are not risk rated until they are greater than 30 days past due, and risk rating is based on the past due status of the loan or lease. The risk rating categories can be generally described by the following groupings for commercial and commercial real estate homogeneous loans and leases:

Special Mention—A homogeneous special mention loan or lease, risk rated 7, is greater than 30 to 59 days past due from the required payment date at month-end.

Substandard—A homogeneous substandard loan or lease, risk rated 8, is 60 to 89 days past due from the required payment date at month-end.

Doubtful—A homogeneous doubtful loan or lease, risk rated 9, is 90 to 179 days past due from the required payment date at month-end.

Loss—A homogeneous loss loan or lease, 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 consumer and other homogeneous loans:

Special Mention—A homogeneous retail special mention loan, risk rated 7, is greater than 30 to 89 days past due from the required payment date at month-end.

Substandard—A homogeneous retail substandard loan, risk rated 8, is an open-end loan 90 to 180 days past due from the required payment date at month-end or a closed-end loan 90 to 120 days past due from the required payment date at month-end.

Loss—A homogeneous retail loss loan, risk rated 10, is a closed-end loan that becomes past due 120 cumulative days or an open-end retail loan that becomes past due 180 cumulative days from the contractual due date. These loans are generally charged-off in the month in which the 120 or 180 day period elapses.

The following table summarizes our internal risk rating by loan and lease class for the loan and lease portfolio as of March 31, 2015 and December 31, 2014:



(in thousands)	March 31, 2015
	Pass/Watch		Special Mention		Substandard		Doubtful		Loss		Impaired (1)		Total
Commercial real estate
Non-owner occupied term, net	$	3,055,623	$	98,661	$	111,740	$	235	$	334	$	37,036	$	3,303,629
Owner occupied term, net	2,418,407		52,551		88,585		1,415		1,259		15,267		2,577,484
Multifamily, net	2,737,917		6,574		16,393		—		—		3,519		2,764,403
Construction & development, net	230,038		3,823		3,351		—		—		1,091		238,303
Residential development, net	68,668		827		2,097		—		—		9,568		81,160
Commercial
Term, net	1,072,456		4,474		30,598		186		416		20,856		1,128,986
LOC & other, net	1,239,239		8,292		21,237		68		32		7,003		1,275,871
Leases and equipment finance, net	561,150		4,454		1,545		2,791		552		—		570,492
Residential
Mortgage, net	2,310,287		2,906		2,098		—		15,034		—		2,330,325
Home equity loans & lines, net	857,187		4,209		316		—		1,557		—		863,269
Consumer & other, net	412,454		2,292		57		—		232		—		415,035
Total, net of deferred fees and costs	$	14,963,426	$	189,063	$	278,017	$	4,695	$	19,416	$	94,340	$	15,548,957

(1) The percentage of impaired loans classified as pass/watch, special mention, substandard, doubtful, and loss was 5.7%, 16.5%, 77.3%, 0.1%, and 0.4% respectively, as of March 31, 2015.



(in thousands)	December 31, 2014
	Pass/Watch		Special Mention		Substandard		Doubtful		Loss		Impaired (1)		Total
Commercial real estate
Non-owner occupied term, net	$	3,027,777	$	99,556	$	123,350	$	821	$	—	$	39,106	$	3,290,610
Owner occupied term, net	2,475,944		58,425		81,567		309		1,674		15,945		2,633,864
Multifamily, net	2,610,039		9,583		15,177		—		—		3,819		2,638,618
Construction & development, net	248,547		4,081		5,003		—		—		1,091		258,722
Residential development, net	68,789		963		2,419		—		—		9,675		81,846
Commercial
Term, net	1,055,728		12,661		15,219		198		224		18,957		1,102,987
LOC & other, net	1,281,628		17,665		9,082		280		88		13,979		1,322,722
Leases and equipment finance, net	513,104		2,554		3,809		3,255		392		—		523,114
Residential
Mortgage, net	2,215,956		2,330		4,497		—		10,952		—		2,233,735
Home equity loans & lines, net	846,277		3,271		1,079		—		1,851		—		852,478
Consumer & other, net	385,754		2,717		198		—		367		—		389,036
Total, net of deferred fees and costs	$	14,729,543	$	213,806	$	261,400	$	4,863	$	15,548	$	102,572	$	15,327,732

(1) The percentage of impaired loans classified as pass/watch, special mention, substandard, doubtful, and loss was 5.6%, 15.1%, 77.9%, 0.1% and 1.3% respectively, as of December 31, 2014.

Troubled Debt Restructurings

At March 31, 2015 and December 31, 2014, impaired loans of $60.9 million and $54.8 million, respectively, were classified as accruing restructured loans. The restructurings were granted in response to borrower financial difficulty, and generally provide for a temporary modification of loan repayment terms. The restructured loans on accrual status represent the only impaired loans accruing interest. In order for a restructured loan to be considered for accrual status, the loan's collateral coverage generally will be greater than or equal to 100% of the loan balance, the loan is current on payments, and the borrower must either prefund an interest reserve or demonstrate the ability to make payments from a verified source of cash flow. Impaired restructured loans carry a specific allowance and the allowance on impaired restructured loans is calculated consistently across the portfolios.

There were $3.8 million available commitments for troubled debt restructurings outstanding as of March 31, 2015 and $1.0 million as of December 31, 2014.

The following tables present troubled debt restructurings by accrual versus non-accrual status and by loan class as of March 31, 2015 and December 31, 2014:



(in thousands)	March 31, 2015
	Accrual		Non-Accrual		Total
	Status		Status		Modifications
Commercial real estate, net	$	48,593	$	677	$	49,270
Commercial, net	8,718		3,333		12,051
Residential, net	3,585		—		3,585
Total, net of deferred fees and costs	$	60,896	$	4,010	$	64,906



(in thousands)	December 31, 2014
	Accrual		Non-Accrual		Total
	Status		Status		Modifications
Commercial real estate, net	$	48,817	$	2,319	$	51,136
Commercial, net	5,404		9,541		14,945
Residential, net	615		—		615
Total, net of deferred fees and costs	$	54,836	$	11,860	$	66,696

The Bank's policy is that loans placed on non-accrual will typically remain on non-accrual status until all principal and interest payments are brought current and the prospect for future payment in accordance with the loan agreement appears relatively certain. The Bank's policy generally refers to six months of payment performance as sufficient to warrant a return to accrual status.

There were no new restructured loans during the three months ended March 31, 2014. The following table presents newly restructured loans that occurred during the three months ended March 31, 2015:




(in thousands)	Three Months Ended March 31, 2015
	Rate		Term		Interest Only		Payment		Combination		Total
	Modifications		Modifications		Modifications		Modifications		Modifications		Modifications

Commercial, net	$	—	$	—	$	—	$	—	$	3,349	$	3,349
Residential, net	—		74		—		—		2,944		3,018
Total, net of deferred fees and costs	$	—	$	74	$	—	$	—	$	6,293	$	6,367

For the periods presented in the tables above, the outstanding recorded investment was the same pre and post modification.

There were no financing receivables modified as troubled debt restructurings within the previous 12 months for which there was a payment default during the three months ended March 31, 2015 and 2014.