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:



	March 31, 2016									December 31, 2015
	Non-PCI									Non-PCI
	Loans			PCI						Loans			PCI
	and Leases			Loans			Total			and Leases			Loans			Total
	(In thousands)
Real estate mortgage	$	5,649,282		$	160,122		$	5,809,404		$	5,706,903		$	168,725		$	5,875,628
Real estate construction and land	584,968			2,689			587,657			534,307			2,656			536,963
Commercial	8,021,092			13,513			8,034,605			7,977,067			17,415			7,994,482
Consumer	110,573			283			110,856			120,793			299			121,092
Total gross loans and leases	14,365,915			176,607			14,542,522			14,339,070			189,095			14,528,165
Deferred fees and costs	(58,954		)	(51		)	(59,005		)	(49,861		)	(50		)	(49,911		)
Total loans and leases, net of deferred fees	14,306,961			176,556			14,483,517			14,289,209			189,045			14,478,254
Allowance for loan and lease losses	(120,807		)	(9,554		)	(130,361		)	(105,534		)	(9,577		)	(115,111		)
Total net loans and leases	$	14,186,154		$	167,002		$	14,353,156		$	14,183,675		$	179,468		$	14,363,143

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

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



	March 31, 2016
	30 - 89		90 or More
	Days		Days		Total
	Past Due		Past Due		Past Due		Current		Total
	(In thousands)
Real estate mortgage:
Commercial	$	16,655	$	10,638	$	27,293	$	4,525,668	$	4,552,961
Residential	2,187		559		2,746		1,074,590		1,077,336
Total real estate mortgage	18,842		11,197		30,039		5,600,258		5,630,297
Real estate construction and land:
Commercial	—		—		—		305,529		305,529
Residential	—		—		—		269,944		269,944
Total real estate construction and land	—		—		—		575,473		575,473
Commercial:
Cash flow	766		2,013		2,779		3,163,035		3,165,814
Asset-based	4		—		4		2,588,912		2,588,916
Venture capital	9,554		—		9,554		1,493,057		1,502,611
Equipment finance	2,244		2,140		4,384		728,844		733,228
Total commercial	12,568		4,153		16,721		7,973,848		7,990,569
Consumer	30		708		738		109,884		110,622
Total Non-PCI loans and leases	$	31,440	$	16,058	$	47,498	$	14,259,463	$	14,306,961



	December 31, 2015
	30 - 89		90 or More
	Days		Days		Total
	Past Due		Past Due		Past Due		Current		Total
	(In thousands)
Real estate mortgage:
Commercial	$	3,947	$	13,075	$	17,022	$	4,534,936	$	4,551,958
Residential	3,391		905		4,296		1,131,809		1,136,105
Total real estate mortgage	7,338		13,980		21,318		5,666,745		5,688,063
Real estate construction and land:
Commercial	—		—		—		343,360		343,360
Residential	—		—		—		184,360		184,360
Total real estate construction and land	—		—		—		527,720		527,720
Commercial:
Cash flow	2,048		1,427		3,475		3,058,793		3,062,268
Asset-based	1		—		1		2,547,532		2,547,533
Venture capital	250		700		950		1,451,477		1,452,427
Equipment finance	359		94		453		889,896		890,349
Total commercial	2,658		2,221		4,879		7,947,698		7,952,577
Consumer	626		1,307		1,933		118,916		120,849
Total Non-PCI loans and leases	$	10,622	$	17,508	$	28,130	$	14,261,079	$	14,289,209

It is the Company's policy to discontinue accruing interest when, in the opinion of management, there is a reasonable doubt as to the collectability of a loan or lease in the normal course of business or 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. 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:



	March 31, 2016						December 31, 2015
	Nonaccrual		Performing		Total		Nonaccrual		Performing		Total
	(In thousands)
Real estate mortgage:
Commercial	$	30,357	$	4,522,604	$	4,552,961	$	52,363	$	4,499,595	$	4,551,958
Residential	5,807		1,071,529		1,077,336		4,914		1,131,191		1,136,105
Total real estate mortgage	36,164		5,594,133		5,630,297		57,277		5,630,786		5,688,063
Real estate construction and land:
Commercial	—		305,529		305,529		—		343,360		343,360
Residential	370		269,574		269,944		372		183,988		184,360
Total real estate construction and land	370		575,103		575,473		372		527,348		527,720
Commercial:
Cash flow	39,665		3,126,149		3,165,814		15,800		3,046,468		3,062,268
Asset-based	2,046		2,586,870		2,588,916		2,505		2,545,028		2,547,533
Venture capital	—		1,502,611		1,502,611		124		1,452,303		1,452,427
Equipment finance	51,247		681,981		733,228		51,410		838,939		890,349
Total commercial	92,958		7,897,611		7,990,569		69,839		7,882,738		7,952,577
Consumer	926		109,696		110,622		1,531		119,318		120,849
Total Non-PCI loans and leases	$	130,418	$	14,176,543	$	14,306,961	$	129,019	$	14,160,190	$	14,289,209

At March 31, 2016, nonaccrual loans and leases totaled $130.4 million and included $13.5 million of loans and leases 90 or more days past due, $13.7 million of loans and leases 30 to 89 days past due, and $103.2 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 $129.0 million at December 31, 2015, including $16.8 million of the loans and leases 90 or more days past due, $3.6 million of loans and leases 30 to 89 days past due, and $108.6 million of current loans and leases that were placed on nonaccrual status based on management’s judgment regarding their collectability.

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.



	March 31, 2016						December 31, 2015
	Classified		Nonclassified		Total		Classified		Nonclassified		Total
	(In thousands)
Real estate mortgage:
Commercial	$	65,532	$	4,487,429	$	4,552,961	$	98,436	$	4,453,522	$	4,551,958
Residential	18,361		1,058,975		1,077,336		12,627		1,123,478		1,136,105
Total real estate mortgage	83,893		5,546,404		5,630,297		111,063		5,577,000		5,688,063
Real estate construction and land:
Commercial	558		304,971		305,529		571		342,789		343,360
Residential	1,382		268,562		269,944		1,395		182,965		184,360
Total real estate construction and land	1,940		573,533		575,473		1,966		525,754		527,720
Commercial:
Cash flow	209,108		2,956,706		3,165,814		183,726		2,878,542		3,062,268
Asset-based	22,236		2,566,680		2,588,916		19,340		2,528,193		2,547,533
Venture capital	14,889		1,487,722		1,502,611		19,105		1,433,322		1,452,427
Equipment finance	51,247		681,981		733,228		54,054		836,295		890,349
Total commercial	297,480		7,693,089		7,990,569		276,225		7,676,352		7,952,577
Consumer	1,385		109,237		110,622		2,500		118,349		120,849
Total Non-PCI loans and leases	$	384,698	$	13,922,263	$	14,306,961	$	391,754	$	13,897,455	$	14,289,209

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.

Non‑PCI nonaccrual loans and leases and performing troubled debt 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:



	March 31, 2016						December 31, 2015
			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	$	36,164	$	55,124	$	91,288	$	57,277	$	27,133	$	84,410
Real estate construction and land	370		7,575		7,945		372		7,631		8,003
Commercial	92,958		3,901		96,859		69,839		5,221		75,060
Consumer	926		229		1,155		1,531		197		1,728
Total	$	130,418	$	66,829	$	197,247	$	129,019	$	40,182	$	169,201

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:



	March 31, 2016						December 31, 2015
			Unpaid						Unpaid
	Recorded		Principal		Related		Recorded		Principal		Related
	Investment		Balance		Allowance		Investment		Balance		Allowance
	(In thousands)
With An Allowance Recorded:
Real estate mortgage:
Commercial	$	25,440	$	26,632	$	1,206	$	17,967	$	19,219	$	777
Residential	4,198		4,352		748		2,278		2,435		681
Real estate construction and land:
Residential	743		743		21		747		747		26
Commercial:
Cash flow	37,894		44,786		9,965		14,072		20,312		7,079
Asset-based	3,696		4,250		1,973		3,901		4,423		2,511
Equipment finance	51,247		58,862		15,964		11,193		11,894		8,032
Consumer	359		365		163		365		372		157
With No Related Allowance Recorded:
Real estate mortgage:
Commercial	$	55,460	$	65,094			$	58,678	$	68,333
Residential	6,190		12,347				5,487		11,406
Real estate construction and land:
Commercial	7,202		7,197				7,256		7,256
Commercial:
Cash flow	2,841		5,188				2,825		5,121
Asset-based	1,181		1,176				2,729		2,726
Venture capital	—		—				124		125
Equipment finance	—		—				40,216		44,194
Consumer	796		1,904				1,363		1,945
Total Non-PCI Loans and Leases With and Without an Allowance Recorded:
Real estate mortgage	$	91,288	$	108,425	$	1,954	$	84,410	$	101,393	$	1,458
Real estate construction and land	7,945		7,940		21		8,003		8,003		26
Commercial	96,859		114,262		27,902		75,060		88,795		17,622
Consumer	1,155		2,269		163		1,728		2,317		157
Total	$	197,247	$	232,896	$	30,040	$	169,201	$	200,508	$	19,263



	Three Months Ended March 31,
	2016				2015
	Weighted		Interest		Weighted		Interest
	Average		Income		Average		Income
	Balance⁽¹⁾		Recognized		Balance⁽¹⁾		Recognized
	(In thousands)
With An Allowance Recorded:
Real estate mortgage:
Commercial	$	19,471	$	243	$	11,917	$	148
Residential	4,198		24		2,796		7
Real estate construction and land:
Commercial	—		—		403		5
Residential	743		4		759		4
Commercial:
Cash flow	20,823		12		16,028		11
Asset-based	3,696		27		4,693		33
Equipment finance	49,322		—		4,581		—
Consumer	341		3		383		4
With No Related Allowance Recorded:
Real estate mortgage:
Commercial	$	54,132	$	217	$	36,704	$	74
Residential	5,405		14		5,187		6
Real estate construction and land:
Commercial	7,202		62		7,457		271
Residential	—		—		20		—
Commercial:
Cash flow	2,683		1		3,845		46
Asset-based	1,181		15		7,435		48
Equipment finance	—		—		7,537		—
Consumer	797		—		3,345		—
Total Non-PCI Loans and Leases With and Without an Allowance Recorded:
Real estate mortgage	$	83,206	$	498	$	56,604	$	235
Real estate construction and land	7,945		66		8,639		280
Commercial	77,705		55		44,119		138
Consumer	1,138		3		3,728		4
Total	$	169,994	$	622	$	113,090	$	657

_________________________


(1)	For Non-PCI loans and leases reported as impaired at March 31, 2016 and 2015, 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 March 31,
	2016					2015
		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:
Commercial	4	$	3,140	$	3,140	9	$	5,161	$	5,113
Residential	1	165		165		5	913		773
Real estate construction and land:
Commercial	—	—		—		1	2,610		2,610
Commercial:
Cash flow	4	257		257		4	761		582
Asset-based	2	629		629		6	1,399		1,399
Equipment finance	2	2,660		2,660		4	4,133		4,133
Consumer	1	60		60		1	91		91
Total	14	$	6,911	$	6,911	30	$	15,068	$	14,701

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



	Three Months Ended March 31,
	2016				2015
Troubled Debt Restructurings	Number	Recorded			Number	Recorded
That Subsequently Defaulted:	of Loans	Investment⁽¹⁾			of Loans	Investment⁽¹⁾
	(Dollars in thousands)
Real estate mortgage:
Commercial	1	$	230		1	$	1,511
Residential	—	—			1	8
Commercial - Asset-based	—	—			1	385
Total	1	$	230	(2)	3	$	1,904	(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 March 31, 2016, and there were no charge-offs.


(3)	Represents the balance at March 31, 2015, and is net of charge-offs of $772,000.

Allowance for Loan and Lease Losses

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 March 31, 2016
				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	$	36,654		$	7,137		$	61,082		$	661		$	105,534		$	9,577		$	115,111
Charge-offs	(737		)	—			(4,045		)	(591		)	(5,373		)	(163		)	(5,536		)
Recoveries	999			152			314			16			1,481			—			1,481
Provision (negative provision)	(7,817		)	(413		)	26,606			789			19,165			140			19,305
Balance, end of period	$	29,099		$	6,876		$	83,957		$	875		$	120,807		$	9,554		$	130,361

Amount of the allowance
applicable to loans and leases:
Individually evaluated for impairment	$	1,954		$	21		$	27,902		$	163		$	30,040
Collectively evaluated for impairment	$	27,145		$	6,855		$	56,055		$	712		$	90,767
Acquired loans with deteriorated credit quality																$	9,554

The ending balance of the
loan and lease portfolio is
composed of loans and leases:
Individually evaluated for impairment	$	90,830		$	7,945		$	96,614		$	1,102		$	196,491
Collectively evaluated for impairment	$	5,539,467		$	567,528		$	7,893,955		$	109,520		$	14,110,470
Acquired loans with deteriorated credit quality																$	176,556
Ending balance of
loans and leases	$	5,630,297		$	575,473		$	7,990,569		$	110,622		$	14,306,961		$	176,556		$	14,483,517



	Three Months Ended March 31, 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	(1,453		)	—			(8,395		)	(63		)	(9,911		)	(579		)	(10,490		)
Recoveries	1,295			632			410			194			2,531			11			2,542
Provision (negative provision)	5,972			(2,707		)	13,921			(582		)	16,604			(733		)	15,871
Balance, end of period	$	30,911		$	2,173		$	45,794		$	802		$	79,680		$	12,698		$	92,378

Amount of the allowance
applicable to loans and leases:
Individually evaluated for impairment	$	1,500		$	55		$	10,493		$	178		$	12,226
Collectively evaluated for impairment	$	29,411		$	2,118		$	35,301		$	624		$	67,454
Acquired loans with deteriorated credit quality																$	12,698

The ending balance of the
loan and lease portfolio is
composed of loans and leases:
Individually evaluated for impairment	$	59,733		$	8,639		$	103,208		$	3,729		$	175,309
Collectively evaluated for impairment	$	5,528,697		$	320,070		$	5,903,859		$	89,946		$	11,842,572
Acquired loans with deteriorated credit quality																$	254,285
Ending balance of
loans and leases	$	5,588,430		$	328,709		$	6,007,067		$	93,675		$	12,017,881		$	254,285		$	12,272,166