Loans and Leases

The Company’s loan and lease portfolio includes originated and purchased loans and leases. Originated and purchased loans and leases for which there was no evidence of credit deterioration at their acquisition date and for which it was probable that all contractually required payments would be collected, are referred to collectively as non-purchased credit impaired loans, or "Non-PCI loans." Purchased loans for which there was, at the acquisition date, evidence of credit deterioration since their origination and for which it was deemed probable that we would be unable to collect all contractually required payments, are referred to as purchased credit impaired loans, or "PCI loans".

Non-PCI loans are carried at the principal amount outstanding, net of deferred fees and costs, and in the case of acquired loans, net of purchase discounts and premiums. Deferred fees and costs and purchase discounts and premiums are recognized as an adjustment to interest income over the contractual life of the loans using the effective interest method or taken into income on an accelerated basis when the related loans are paid off or sold.

PCI loans are accounted for in accordance with ASC Subtopic 310‑30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality". For PCI loans, at the time of acquisition we (i) calculate the contractual amount and timing of undiscounted principal and interest payments (the "undiscounted contractual cash flows") and (ii) estimate the amount and timing of undiscounted expected principal and interest payments (the "undiscounted expected cash flows"). The difference between the undiscounted contractual cash flows and the undiscounted expected cash flows is the nonaccretable difference. The difference between the undiscounted cash flows expected to be collected and the estimated fair value of the acquired loans is the accretable yield. The nonaccretable difference represents an estimate of the loss exposure of principal and interest related to the PCI loan portfolio; such amount is subject to change over time based on the performance of such loans. The carrying value of PCI loans is reduced by payments received, both principal and interest, and increased by the portion of the accretable yield recognized as interest income.

The following table summarizes the composition of our loan and lease portfolio as of the dates indicated:



	September 30, 2015									December 31, 2014
	Non-PCI									Non-PCI
	Loans			PCI						Loans			PCI
	and Leases			Loans			Total			and Leases			Loans			Total
	(In thousands)
Real estate mortgage	$	5,521,291		$	184,751		$	5,706,042		$	5,350,827		$	256,489		$	5,607,316
Real estate construction and land	376,197			2,690			378,887			309,162			6,924			316,086
Commercial	6,272,807			5,606			6,278,413			5,852,420			27,155			5,879,575
Consumer	129,762			293			130,055			101,423			284			101,707
Total gross loans and leases	12,300,057			193,340			12,493,397			11,613,832			290,852			11,904,684
Deferred fees and costs	(41,141		)	(51		)	(41,192		)	(22,191		)	(61		)	(22,252		)
Total loans and leases, net of deferred fees	12,258,916			193,289			12,452,205			11,591,641			290,791			11,882,432
Allowance for loan and lease losses	(92,316		)	(10,955		)	(103,271		)	(70,456		)	(13,999		)	(84,455		)
Total net loans and leases	$	12,166,600		$	182,334		$	12,348,934		$	11,521,185		$	276,792		$	11,797,977

The following tables present a summary of the activity in the allowance for loan and lease losses on Non‑PCI loans and leases by portfolio segment and PCI loans for the periods indicated:



	Three Months Ended September 30, 2015
				Real Estate
	Real Estate			Construction								Total			Total
	Mortgage			and Land		Commercial			Consumer			Non-PCI			PCI			Total
	(In thousands)
Allowance for Loan and
Lease Losses:
Balance, beginning of period	$	29,908		$	3,908	$	50,531		$	700		$	85,047		$	14,328		$	99,375
Charge-offs	(252		)	—		(4,035		)	(25		)	(4,312		)	(1,119		)	(5,431		)
Recoveries	288			390		239			164			1,081			—			1,081
Provision (negative provision)	4,355			93		6,137			(85		)	10,500			(2,254		)	8,246
Balance, end of period	$	34,299		$	4,391	$	52,872		$	754		$	92,316		$	10,955		$	103,271



	Nine Months Ended September 30, 2015
				Real Estate
	Real Estate			Construction									Total			Total
	Mortgage			and Land			Commercial			Consumer			Non-PCI			PCI			Total
	(In thousands)
Allowance for Loan and
Lease Losses:
Balance, beginning of period	$	25,097		$	4,248		$	39,858		$	1,253		$	70,456		$	13,999		$	84,455
Charge-offs	(1,767		)	—			(12,964		)	(115		)	(14,846		)	(1,698		)	(16,544		)
Recoveries	1,783			1,034			2,393			392			5,602			112			5,714
Provision (negative provision)	9,186			(891		)	23,585			(776		)	31,104			(1,458		)	29,646
Balance, end of period	$	34,299		$	4,391		$	52,872		$	754		$	92,316		$	10,955		$	103,271

Amount of the allowance
applicable to loans and leases:
Individually evaluated for impairment	$	1,443		$	31		$	10,343		$	158		$	11,975
Collectively evaluated for impairment	$	32,856		$	4,360		$	42,529		$	596		$	80,341
Acquired loans with deteriorated credit quality																$	10,955

The ending balance of the
loan and lease portfolio is
composed of loans and leases:
Individually evaluated for impairment	$	58,393		$	8,047		$	76,088		$	3,540		$	146,068
Collectively evaluated for impairment	$	5,446,694		$	364,433		$	6,175,440		$	126,281		$	12,112,848
Acquired loans with deteriorated credit quality																$	193,289
Ending balance of
loans and leases	$	5,505,087		$	372,480		$	6,251,528		$	129,821		$	12,258,916		$	193,289		$	12,452,205



	Three Months Ended September 30, 2014
				Real Estate
	Real Estate			Construction								Total			Total
	Mortgage			and Land		Commercial			Consumer			Non-PCI			PCI			Total
	(In thousands)
Allowance for Loan and
Lease Losses:
Balance, beginning of period	$	22,276		$	4,302	$	35,530		$	3,415		$	65,523		$	16,626		$	82,149
Charge-offs	(395		)	—		(7,282		)	(171		)	(7,848		)	(108		)	(7,956		)
Recoveries	1,312			24		337			52			1,725			—			1,725
Provision (negative provision)	3,810			1,591		422			(2,139		)	3,684			2,297			5,981
Balance, end of period	$	27,003		$	5,917	$	29,007		$	1,157		$	63,084		$	18,815		$	81,899



	Nine Months Ended September 30, 2014
				Real Estate
	Real Estate			Construction								Total			Total
	Mortgage			and Land		Commercial			Consumer			Non-PCI			PCI			Total
	(In thousands)
Allowance for Loan and
Lease Losses:
Balance, beginning of period	$	26,078		$	4,298	$	26,921		$	2,944		$	60,241		$	21,793		$	82,034
Charge-offs	(976		)	—		(9,049		)	(203		)	(10,228		)	(4,712		)	(14,940		)
Recoveries	1,949			112		1,301			294			3,656			51			3,707
Provision (negative provision)	(48		)	1,507		9,834			(1,878		)	9,415			1,683			11,098
Balance, end of period	$	27,003		$	5,917	$	29,007		$	1,157		$	63,084		$	18,815		$	81,899

Amount of the allowance
applicable to loans and leases:
Individually evaluated for impairment	$	1,568		$	119	$	7,654		$	34		$	9,375
Collectively evaluated for impairment	$	25,435		$	5,798	$	21,353		$	1,123		$	53,709
Acquired loans with deteriorated credit quality															$	18,815

The ending balance of the
loan and lease portfolio is
composed of loans and leases:
Individually evaluated for impairment	$	58,041		$	12,621	$	46,143		$	3,448		$	120,253
Collectively evaluated for impairment	$	5,340,203		$	270,446	$	5,387,644		$	104,960		$	11,103,253
Acquired loans with deteriorated credit quality															$	351,379
Ending balance of
loans and leases	$	5,398,244		$	283,067	$	5,433,787		$	108,408		$	11,223,506		$	351,379		$	11,574,885

Non‑Purchased Credit Impaired (Non‑PCI) Loans and Leases

The following table presents the credit risk rating categories for Non‑PCI loans and leases by portfolio segment and class as of the dates indicated. Nonclassified loans and leases are those with a credit risk rating of either pass or special mention, while classified loans and leases are those with a credit risk rating of either substandard or doubtful.



	September 30, 2015						December 31, 2014
	Classified		Nonclassified		Total		Classified		Nonclassified		Total
	(In thousands)
Real estate mortgage:
Hospitality	$	10,695	$	613,452	$	624,147	$	17,761	$	542,458	$	560,219
SBA	11,682		387,044		398,726		11,141		364,786		375,927
Other	56,981		4,425,233		4,482,214		68,084		4,336,330		4,404,414
Total real estate mortgage	79,358		5,425,729		5,505,087		96,986		5,243,574		5,340,560
Real estate construction and land:
Residential	1,407		143,834		145,241		402		96,326		96,728
Commercial	584		226,655		227,239		3,346		207,061		210,407
Total real estate construction and land	1,991		370,489		372,480		3,748		303,387		307,135
Commercial:
Collateralized	17,147		341,942		359,089		22,433		416,754		439,187
Unsecured	2,357		124,214		126,571		1,323		130,501		131,824
Asset-based	3,838		2,018,591		2,022,429		11,547		1,783,304		1,794,851
Cash flow	163,589		2,636,965		2,800,554		83,321		2,376,530		2,459,851
Equipment finance	53,153		841,624		894,777		15,973		953,516		969,489
SBA	2,918		45,190		48,108		3,207		44,054		47,261
Total commercial	243,002		6,008,526		6,251,528		137,804		5,704,659		5,842,463
Consumer	3,687		126,134		129,821		4,073		97,410		101,483
Total Non-PCI loans and leases	$	328,038	$	11,930,878	$	12,258,916	$	242,611	$	11,349,030	$	11,591,641

In addition to our internal risk rating process, our federal and state banking regulators, as an integral part of their examination process, periodically review the Company’s loan and lease risk rating classifications. Our regulators may require the Company to recognize rating downgrades based on their judgments related to information available to them at the time of their examinations. Risk rating downgrades generally result in higher allowances for credit losses.

The following tables present an aging analysis of our Non‑PCI loans and leases by portfolio segment and class as of the dates indicated:



	September 30, 2015
	30 - 89		90 or More
	Days		Days		Total
	Past Due		Past Due		Past Due		Current		Total
	(In thousands)
Real estate mortgage:
Hospitality	$	779	$	—	$	779	$	623,368	$	624,147
SBA	276		8,661		8,937		389,789		398,726
Other	4,022		7,276		11,298		4,470,916		4,482,214
Total real estate mortgage	5,077		15,937		21,014		5,484,073		5,505,087
Real estate construction and land:
Residential	—		—		—		145,241		145,241
Commercial	—		—		—		227,239		227,239
Total real estate construction and land	—		—		—		372,480		372,480
Commercial:
Collateralized	425		140		565		358,524		359,089
Unsecured	57		—		57		126,514		126,571
Asset-based	—		—		—		2,022,429		2,022,429
Cash flow	—		—		—		2,800,554		2,800,554
Equipment finance	—		1,680		1,680		893,097		894,777
SBA	239		1,218		1,457		46,651		48,108
Total commercial	721		3,038		3,759		6,247,769		6,251,528
Consumer	88		3,146		3,234		126,587		129,821
Total Non-PCI loans and leases	$	5,886	$	22,121	$	28,007	$	12,230,909	$	12,258,916



	December 31, 2014
	30 - 89		90 or More
	Days		Days		Total
	Past Due		Past Due		Past Due		Current		Total
	(In thousands)
Real estate mortgage:
Hospitality	$	—	$	—	$	—	$	560,219	$	560,219
SBA	5,530		4,357		9,887		366,040		375,927
Other	6,098		7,630		13,728		4,390,686		4,404,414
Total real estate mortgage	11,628		11,987		23,615		5,316,945		5,340,560
Real estate construction and land:
Residential	—		—		—		96,728		96,728
Commercial	—		715		715		209,692		210,407
Total real estate construction and land	—		715		715		306,420		307,135
Commercial:
Collateralized	878		965		1,843		437,344		439,187
Unsecured	69		45		114		131,710		131,824
Asset-based	—		—		—		1,794,851		1,794,851
Cash flow	—		232		232		2,459,619		2,459,851
Equipment finance	6,525		366		6,891		962,598		969,489
SBA	205		1,362		1,567		45,694		47,261
Total commercial	7,677		2,970		10,647		5,831,816		5,842,463
Consumer	101		3,146		3,247		98,236		101,483
Total Non-PCI loans and leases	$	19,406	$	18,818	$	38,224	$	11,553,417	$	11,591,641

At September 30, 2015 and December 31, 2014, the Company had no loans and leases (excluding PCI loans) that were greater than 90 days past due and still accruing interest. We discontinue accruing interest when principal or interest payments are past due 90 days or more unless the loan is both well secured and in the process of collection or when, in the judgment of management, there is a reasonable doubt as to the collectability of the loan or lease in the normal course of business. Interest income on nonaccrual loans is recognized only to the extent cash is received and the principal balance of the loan is deemed collectable.

The following table presents our nonaccrual and performing Non‑PCI loans and leases by portfolio segment and class as of the dates indicated:



	September 30, 2015						December 31, 2014
	Nonaccrual		Performing		Total		Nonaccrual		Performing		Total
	(In thousands)
Real estate mortgage:
Hospitality	$	1,845	$	622,302	$	624,147	$	6,366	$	553,853	$	560,219
SBA	11,682		387,044		398,726		11,141		364,786		375,927
Other	18,294		4,463,920		4,482,214		20,105		4,384,309		4,404,414
Total real estate mortgage	31,821		5,473,266		5,505,087		37,612		5,302,948		5,340,560
Real estate construction and land:
Residential	374		144,867		145,241		381		96,347		96,728
Commercial	—		227,239		227,239		1,178		209,229		210,407
Total real estate construction and land	374		372,106		372,480		1,559		305,576		307,135
Commercial:
Collateralized	2,771		356,318		359,089		5,450		433,737		439,187
Unsecured	923		125,648		126,571		639		131,185		131,824
Asset-based	90		2,022,339		2,022,429		4,574		1,790,277		1,794,851
Cash flow	11,761		2,788,793		2,800,554		15,964		2,443,887		2,459,851
Equipment finance	53,153		841,624		894,777		11,131		958,358		969,489
SBA	2,918		45,190		48,108		3,207		44,054		47,261
Total commercial	71,616		6,179,912		6,251,528		40,965		5,801,498		5,842,463
Consumer	3,379		126,442		129,821		3,485		97,998		101,483
Total Non-PCI loans and leases	$	107,190	$	12,151,726	$	12,258,916	$	83,621	$	11,508,020	$	11,591,641

At September 30, 2015, nonaccrual loans and leases totaled $107.2 million and included $22.1 million of loans and leases 90 or more days past due, $2.6 million of loans and leases 30 to 89 days past due, and $82.4 million of current loans and leases that were placed on nonaccrual status based on management’s judgment regarding their collectability. Nonaccrual loans and leases totaled $83.6 million at December 31, 2014, including $18.8 million of loans and leases 90 or more days past due, $8.7 million of loans and leases 30 to 89 days past due, and $56.1 million of current loans and leases that were placed on nonaccrual status based on management’s judgment regarding their collectability. The increase in nonaccrual loans and leases generally, and equipment finance loans and leases specifically, was due to four relationships totaling $47.9 million that are related to the oil and gas industries and which have been adversely impacted by continued low oil prices.

Non‑PCI nonaccrual loans and leases and performing restructured loans are considered impaired for reporting purposes. The following table presents the composition of our impaired loans and leases as of the dates indicated:



	September 30, 2015						December 31, 2014
			Performing		Total				Performing		Total
	Nonaccrual		Restructured		Impaired		Nonaccrual		Restructured		Impaired
	Loans/Leases		Loans		Loans/Leases		Loans/Leases		Loans		Loans/Leases
	(In thousands)
Real estate mortgage	$	31,821	$	27,293	$	59,114	$	37,612	$	20,245	$	57,857
Real estate construction and land	374		7,673		8,047		1,559		8,996		10,555
Commercial	71,616		4,767		76,383		40,965		5,744		46,709
Consumer	3,379		223		3,602		3,485		259		3,744
Total	$	107,190	$	39,956	$	147,146	$	83,621	$	35,244	$	118,865

The following table presents loan and lease relationships having direct exposure to the oil and gas industries as of the dates indicated:



	September 30, 2015			June 30, 2015
	Amount		Obligors	Amount		Obligors
	(Dollars in thousands)
Loans	$	83,025	7	$	87,005	8
Leases	69,247		20	90,189		21
Total oil & gas support services	$	152,272	27	$	177,194	29

Nonaccrual	$	47,853	4	$	64,232	4
Classified	$	47,853	4	$	64,232	4

The following tables present information regarding our Non‑PCI impaired loans and leases by portfolio segment and class as of and for the dates indicated:



	September 30, 2015						December 31, 2014
			Unpaid						Unpaid
	Recorded		Principal		Related		Recorded		Principal		Related
	Investment		Balance		Allowance		Investment		Balance		Allowance
	(In thousands)
With An Allowance Recorded:
Real estate mortgage:
Hospitality	$	1,907	$	1,907	$	6	$	1,946	$	1,945	$	47
Other	13,955		14,203		1,437		9,136		9,233		646
Real estate construction and land:
Residential	751		751		31		763		763		46
Commercial	—		—		—		1,128		4,934		23
Commercial:
Collateralized	4,966		5,529		3,006		4,630		5,246		3,771
Unsecured	1,908		1,921		1,580		912		924		799
Asset-based	30		140		30		137		247		137
Cash flow	11,761		17,606		2,097		15,578		17,970		2,667
Equipment finance	9,654		10,247		3,630		6,956		7,268		2,601
Consumer	394		400		158		143		142		37
With No Related Allowance Recorded:
Real estate mortgage:
Hospitality	$	7,920	$	10,019	$	—	$	6,366	$	7,593	$	—
SBA	11,682		15,616		—		11,141		14,708		—
Other	23,650		36,240		—		29,268		40,643		—
Real estate construction and land:
Residential	—		—		—		21		19		—
Commercial	7,296		7,293		—		8,643		8,749		—
Commercial:
Collateralized	1,486		1,908		—		5,566		6,877		—
Unsecured	101		111		—		725		809		—
Asset-based	61		61		—		4,436		5,415		—
Cash flow	—		505		—		387		919		—
Equipment finance	43,498		46,894		—		4,175		7,528		—
SBA	2,918		4,743		—		3,207		4,920		—
Consumer	3,208		3,327		—		3,601		3,768		—
Total Non-PCI Loans and Leases With and Without an Allowance Recorded:
Real estate mortgage	$	59,114	$	77,985	$	1,443	$	57,857	$	74,122	$	693
Real estate construction and land	8,047		8,044		31		10,555		14,465		69
Commercial	76,383		89,665		10,343		46,709		58,123		9,975
Consumer	3,602		3,727		158		3,744		3,910		37
Total	$	147,146	$	179,421	$	11,975	$	118,865	$	150,620	$	10,774



	Three Months Ended September 30,
	2015				2014
	Weighted		Interest		Weighted		Interest
	Average		Income		Average		Income
	Balance⁽¹⁾		Recognized		Balance⁽¹⁾		Recognized
	(In thousands)
With An Allowance Recorded:
Real estate mortgage:
Hospitality	$	1,907	$	20	$	1,957	$	20
Other	13,801		141		13,302		129
Real estate construction and land:
Residential	751		4		767		4
Commercial	—		—		1,162		6
Commercial:
Collateralized	4,876		48		5,404		46
Unsecured	1,892		13		620		6
Asset-based	30		—		262		—
Cash flow	11,761		—		15,726		—
Equipment finance	9,654		—		1,864		—
Consumer	394		4		146		2
With No Related Allowance Recorded:
Real estate mortgage:
Hospitality	$	7,920	$	144	$	6,451	$	—
SBA	11,209		—		7,521		38
Other	23,466		113		29,119		79
Real estate construction and land:
Residential	—		—		542		—
Commercial	7,193		62		10,221		75
Commercial:
Collateralized	1,486		21		2,746		25
Unsecured	101		1		144		—
Asset-based	1		—		4,472		—
Cash flow	—		—		—		—
Equipment finance	43,406		—		9,466		—
SBA	2,841		—		3,331		36
Consumer	3,208		—		3,492		2
Total Non-PCI Loans and Leases With and Without an Allowance Recorded:
Real estate mortgage	$	58,303	$	418	$	58,350	$	266
Real estate construction and land	7,944		66		12,692		85
Commercial	76,048		83		44,035		113
Consumer	3,602		4		3,638		4
Total	$	145,897	$	571	$	118,715	$	468

_________________________


(1)	For Non-PCI loans and leases reported as impaired at September 30, 2015 and 2014, amounts were calculated based on the period of time such loans and leases were impaired during the reported period.



	Nine Months Ended September 30,
	2015				2014
	Weighted		Interest		Weighted		Interest
	Average		Income		Average		Income
	Balance⁽¹⁾		Recognized		Balance⁽¹⁾		Recognized
	(In thousands)
With An Allowance Recorded:
Real estate mortgage:
Hospitality	$	1,907	$	58	$	1,957	$	60
SBA	—		—		—		—
Other	13,582		415		12,989		383
Real estate construction and land:
Residential	751		12		767		12
Commercial	—		—		1,162		19
Commercial:
Collateralized	3,876		67		5,404		138
Unsecured	1,464		35		620		18
Asset-based	30		—		262		—
Cash flow	11,761		—		5,357		—
Equipment finance	6,905		—		1,051		—
SBA	—		—		—		—
Consumer	375		11		146		7
With No Related Allowance Recorded:
Real estate mortgage:
Hospitality	$	7,839	$	426	$	6,451	$	—
SBA	9,518		1		6,259		38
Other	20,952		273		26,858		283
Real estate construction and land:
Residential	—		—		407		—
Commercial	7,021		176		10,221		222
Commercial:
Collateralized	1,238		51		2,623		82
Unsecured	101		4		125		—
Asset-based	—		—		3,013		—
Cash flow	—		—		—		—
Equipment finance	29,088		—		6,057		—
SBA	2,816		82		2,786		36
Consumer	3,208		—		2,856		7
Total Non-PCI Loans and Leases With and Without an Allowance Recorded:
Real estate mortgage	$	53,798	$	1,173	$	54,514	$	764
Real estate construction and land	7,772		188		12,557		253
Commercial	57,279		239		27,298		274
Consumer	3,583		11		3,002		14
Total	$	122,432	$	1,611	$	97,371	$	1,305

_________________________


(1)	For Non-PCI loans and leases reported as impaired at September 30, 2015 and 2014, amounts were calculated based on the period of time such loans and leases were impaired during the reported period.

Troubled debt restructurings are a result of rate reductions, term extensions, fee concessions, and debt forgiveness or a combination thereof. The following tables present new troubled debt restructurings of Non-PCI loans for the periods indicated:



	Three Months Ended September 30,
	2015					2014
		Pre-		Post-			Pre-		Post-
		Modification		Modification			Modification		Modification
		Outstanding		Outstanding			Outstanding		Outstanding
	Number	Recorded		Recorded		Number	Recorded		Recorded
Troubled Debt Restructurings:	of Loans	Investment		Investment		of Loans	Investment		Investment
	(Dollars in thousands)
Real estate mortgage:
SBA	—	$	—	$	—	1	$	64	$	64
Other	5	956		956		7	10,496		10,496
Real estate construction and land:
Commercial	3	7,333		7,333		—	—		—
Commercial:
Collateralized	1	3,431		3,431		9	1,507		1,507
Unsecured	9	883		883		3	173		173
SBA	—	—		—		2	1,313		1,313
Consumer	1	106		106		3	183		183
Total	19	$	12,709	$	12,709	25	$	13,736	$	13,736



	Nine Months Ended September 30,
	2015					2014
		Pre-		Post-			Pre-		Post-
		Modification		Modification			Modification		Modification
		Outstanding		Outstanding			Outstanding		Outstanding
	Number	Recorded		Recorded		Number	Recorded		Recorded
Troubled Debt Restructurings:	of Loans	Investment		Investment		of Loans	Investment		Investment
	(Dollars in thousands)
Real estate mortgage:
SBA	—	$	—	$	—	1	$	64	$	64
Other	29	9,506		9,291		15	14,352		14,352
Real estate construction and land:
Commercial	6	16,948		16,948		2	4,920		4,920
Commercial:
Collateralized	13	8,138		8,138		15	4,853		4,853
Unsecured	12	1,190		1,190		5	211		211
Cash flow	4	566		387		—	—		—
Equipment finance	9	53,338		53,338		—	—		—
SBA	1	—		—		2	1,313		1,313
Consumer	2	197		197		4	307		307
Total	76	$	89,883	$	89,489	44	$	26,020	$	26,020

The following tables present troubled debt restructurings that subsequently defaulted for the periods indicated:



	Three Months Ended September 30,
	2015				2014
Troubled Debt Restructurings	Number	Recorded			Number	Recorded
That Subsequently Defaulted:	of Loans	Investment⁽¹⁾			of Loans	Investment⁽¹⁾
	(Dollars in thousands)
Real estate mortgage - Other	3	$	2,037		—	$	—
Real estate construction - Commercial	—	—			1	1,190
Commercial - Unsecured	—	—			2	37
Total	3	$	2,037	(2)	3	$	1,227	(3)

_________________________


(1)	The population of defaulted restructured loans for the period indicated includes only those loans restructured during the preceding 12-month period. The table excludes defaulted troubled restructurings in those classes for which the recorded investment was zero at the end of the period.


(2)	Represents the balance at September 30, 2015, and there were no charge-offs.


(3)	Represents the balance at September 30, 2014, and is net of charge-offs of $0.2 million.



	Nine Months Ended September 30,
	2015				2014
Troubled Debt Restructurings	Number	Recorded			Number	Recorded
That Subsequently Defaulted:	of Loans	Investment⁽¹⁾			of Loans	Investment⁽¹⁾
	(Dollars in thousands)
Real estate mortgage - Other	5	$	3,240		—	$	—
Real estate construction - Commercial	—	—			1	1,190
Commercial:
Collateralized	—	—			1	22
Unsecured	—	—			2	37
Consumer	—	—			1	109
Total	5	$	3,240	(2)	5	$	1,358	(3)

_________________________


(1)	The population of defaulted restructured loans for the period indicated includes only those loans restructured during the preceding 12-month period. The table excludes defaulted troubled restructurings in those classes for which the recorded investment was zero at the end of the period.


(2)	Represents the balance at September 30, 2015, and there were no charge-offs.


(3)	Represents the balance at September 30, 2014, and is net of charge-offs of $0.2 million.

Purchased Credit Impaired (PCI) Loans

The following table reflects the PCI loans by portfolio segment as of the dates indicated:



	September 30,			December 31,
	2015			2014
	(In thousands)
Real estate mortgage	$	221,258		$	299,660
Real estate construction and land	2,664			7,743
Commercial	8,590			32,904
Consumer	310			332
Total gross PCI loans	232,822			340,639
Less:
Discount	(39,533		)	(49,848		)
Allowance for loan losses	(10,955		)	(13,999		)
Total net PCI loans	$	182,334		$	276,792

The following table summarizes the changes in the carrying amount of PCI loans and accretable yield on those loans for the period indicated:



	Carrying			Accretable
	Amount			Yield
	(In thousands)
Balance, December 31, 2014	$	276,792		$	(106,856	)
Accretion	25,523			25,523
Payments received	(121,439		)	—
Increase in expected cash flows, net	—			(10,694		)
Negative provision for credit losses	1,458			—
Balance, September 30, 2015	$	182,334		$	(92,027	)

The following table presents PCI loans by credit risk rating categories and portfolio segment as of the dates indicated. Nonclassified loans are those with a credit risk rating of either pass or special mention, while classified loans are those with a credit risk rating of either substandard or doubtful.



	September 30, 2015						December 31, 2014
	Classified		Nonclassified		Total		Classified		Nonclassified		Total
	(In thousands)
Real estate mortgage	$	48,987	$	135,717	$	184,704	$	101,161	$	155,281	$	256,442
Real estate construction and land	1,254		1,432		2,686		3,901		3,010		6,911
Commercial	5,480		126		5,606		26,942		212		27,154
Consumer	293		—		293		284		—		284
Total PCI loans, net of deferred fees	$	56,014	$	137,275	$	193,289	$	132,288	$	158,503	$	290,791

In addition to our internal risk rating process, our federal and state banking regulators, as an integral part of their examination process, periodically review the Company’s loan risk rating classifications. Our regulators may require the Company to recognize rating downgrades based on their judgments related to information available to them at the time of their examinations.