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, 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	$	5,481,922		$	104,896		$	5,586,818		$	5,706,903		$	168,725		$	5,875,628
Real estate construction and land	843,097			2,423			845,520			534,307			2,656			536,963
Commercial	8,104,711			12,649			8,117,360			7,977,067			17,415			7,994,482
Consumer	256,476			253			256,729			120,793			299			121,092
Total gross loans and leases	14,686,206			120,221			14,806,427			14,339,070			189,095			14,528,165
Deferred fees, net	(63,559		)	(22		)	(63,581		)	(49,861		)	(50		)	(49,911		)
Total loans and leases, net of deferred fees	14,622,647			120,199			14,742,846			14,289,209			189,045			14,478,254
Allowance for loan and lease losses	(136,747		)	(11,229		)	(147,976		)	(105,534		)	(9,577		)	(115,111		)
Total net loans and leases	$	14,485,900		$	108,970		$	14,594,870		$	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:



	September 30, 2016
	30 - 89		90 or More
	Days		Days		Total
	Past Due		Past Due		Past Due		Current		Total
	(In thousands)
Real estate mortgage:
Commercial	$	10,489	$	5,772	$	16,261	$	4,262,571	$	4,278,832
Residential	266		2,520		2,786		1,183,323		1,186,109
Total real estate mortgage	10,755		8,292		19,047		5,445,894		5,464,941
Real estate construction and land:
Commercial	1,245		—		1,245		507,166		508,411
Residential	—		—		—		323,104		323,104
Total real estate construction and land	1,245		—		1,245		830,270		831,515
Commercial:
Cash flow	66		2,128		2,194		3,063,297		3,065,491
Asset-based	6,644		15		6,659		2,565,142		2,571,801
Venture capital	—		1,095		1,095		1,760,517		1,761,612
Equipment finance	3,304		350		3,654		667,129		670,783
Total commercial	10,014		3,588		13,602		8,056,085		8,069,687
Consumer	—		4		4		256,500		256,504
Total Non-PCI loans and leases	$	22,014	$	11,884	$	33,898	$	14,588,749	$	14,622,647



	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:



	September 30, 2016						December 31, 2015
	Nonaccrual		Performing		Total		Nonaccrual		Performing		Total
	(In thousands)
Real estate mortgage:
Commercial	$	74,606	$	4,204,226	$	4,278,832	$	52,363	$	4,499,595	$	4,551,958
Residential	5,089		1,181,020		1,186,109		4,914		1,131,191		1,136,105
Total real estate mortgage	79,695		5,385,246		5,464,941		57,277		5,630,786		5,688,063
Real estate construction and land:
Commercial	1,245		507,166		508,411		—		343,360		343,360
Residential	366		322,738		323,104		372		183,988		184,360
Total real estate construction and land	1,611		829,904		831,515		372		527,348		527,720
Commercial:
Cash flow	27,831		3,037,660		3,065,491		15,800		3,046,468		3,062,268
Asset-based	4,044		2,567,757		2,571,801		2,505		2,545,028		2,547,533
Venture capital	10,782		1,750,830		1,761,612		124		1,452,303		1,452,427
Equipment finance	46,916		623,867		670,783		51,410		838,939		890,349
Total commercial	89,573		7,980,114		8,069,687		69,839		7,882,738		7,952,577
Consumer	206		256,298		256,504		1,531		119,318		120,849
Total Non-PCI loans and leases	$	171,085	$	14,451,562	$	14,622,647	$	129,019	$	14,160,190	$	14,289,209

At September 30, 2016, nonaccrual loans and leases totaled $171.1 million and included $11.9 million of loans and leases 90 or more days past due, $13.2 million of loans and leases 30 to 89 days past due, and $146.0 million of loans and leases current with respect to contractual payments 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.



	September 30, 2016						December 31, 2015
	Classified		Nonclassified		Total		Classified		Nonclassified		Total
	(In thousands)
Real estate mortgage:
Commercial	$	104,914	$	4,173,918	$	4,278,832	$	98,436	$	4,453,522	$	4,551,958
Residential	15,876		1,170,233		1,186,109		12,627		1,123,478		1,136,105
Total real estate mortgage	120,790		5,344,151		5,464,941		111,063		5,577,000		5,688,063
Real estate construction and land:
Commercial	1,839		506,572		508,411		571		342,789		343,360
Residential	366		322,738		323,104		1,395		182,965		184,360
Total real estate construction and land	2,205		829,310		831,515		1,966		525,754		527,720
Commercial:
Cash flow	174,490		2,891,001		3,065,491		183,726		2,878,542		3,062,268
Asset-based	34,791		2,537,010		2,571,801		19,340		2,528,193		2,547,533
Venture capital	37,986		1,723,626		1,761,612		19,105		1,433,322		1,452,427
Equipment finance	46,916		623,867		670,783		54,054		836,295		890,349
Total commercial	294,183		7,775,504		8,069,687		276,225		7,676,352		7,952,577
Consumer	363		256,141		256,504		2,500		118,349		120,849
Total Non-PCI loans and leases	$	417,541	$	14,205,106	$	14,622,647	$	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:



	September 30, 2016						December 31, 2015
			Performing		Total				Performing		Total
	Nonaccrual		Troubled		Impaired		Nonaccrual		Troubled		Impaired
	Loans		Debt		Loans		Loans		Debt		Loans
	and		Restructured		and		and		Restructured		and
	Leases		Loans		Leases		Leases		Loans		Leases
	(In thousands)
Real estate mortgage	$	79,695	$	59,793	$	139,488	$	57,277	$	27,133	$	84,410
Real estate construction and land	1,611		7,089		8,700		372		7,631		8,003
Commercial	89,573		3,250		92,823		69,839		5,221		75,060
Consumer	206		216		422		1,531		197		1,728
Total	$	171,085	$	70,348	$	241,433	$	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:



	September 30, 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	$	67,821	$	68,852	$	7,055	$	17,967	$	19,219	$	777
Residential	2,517		2,573		244		2,278		2,435		681
Real estate construction and land:
Residential	736		736		11		747		747		26
Commercial:
Cash flow	25,936		26,971		4,686		14,072		20,312		7,079
Asset-based	4,136		4,584		2,899		3,901		4,423		2,511
Venture capital	10,781		10,856		3,331		—		—		—
Equipment finance	46,916		52,908		12,715		11,193		11,894		8,032
Consumer	346		355		179		365		372		157
With No Related Allowance Recorded:
Real estate mortgage:
Commercial	$	59,090	$	68,390			$	58,678	$	68,333
Residential	10,060		15,309				5,487		11,406
Real estate construction and land:
Commercial	7,964		7,964				7,256		7,256
Commercial:
Cash flow	2,519		4,783				2,825		5,121
Asset-based	2,535		2,575				2,729		2,726
Venture capital	—		—				124		125
Equipment finance	—		11,709				40,216		44,194
Consumer	76		146				1,363		1,945
Total Non-PCI Loans and Leases With and Without an Allowance Recorded:
Real estate mortgage	$	139,488	$	155,124	$	7,299	$	84,410	$	101,393	$	1,458
Real estate construction and land	8,700		8,700		11		8,003		8,003		26
Commercial	92,823		114,386		23,631		75,060		88,795		17,622
Consumer	422		501		179		1,728		2,317		157
Total	$	241,433	$	278,711	$	31,120	$	169,201	$	200,508	$	19,263



	Three Months Ended September 30,
	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	$	18,580	$	262	$	13,230	$	152
Residential	2,505		15		2,478		9
Real estate construction and land:
Residential	736		4		751		4
Commercial:
Cash flow	25,933		9		13,653		13
Asset-based	2,730		5		4,906		48
Venture capital	6,878		—		—		—
Equipment finance	42,913		—		9,654		—
Consumer	346		3		394		4
With No Related Allowance Recorded:
Real estate mortgage:
Commercial	$	59,090	$	518	$	36,534	$	243
Residential	9,573		70		6,061		14
Real estate construction and land:
Commercial	7,870		57		7,193		62
Commercial:
Cash flow	2,330		1		2,942		1
Asset-based	2,535		37		1,487		21
Equipment finance	—		—		43,406		—
Consumer	76		—		3,208		—
Total Non-PCI Loans and Leases With and Without an Allowance Recorded:
Real estate mortgage	$	89,748	$	865	$	58,303	$	418
Real estate construction and land	8,606		61		7,944		66
Commercial	83,319		52		76,048		83
Consumer	422		3		3,602		4
Total	$	182,095	$	981	$	145,897	$	571

_________________________


(1)	For Non-PCI loans and leases reported as impaired at September 30, 2016 and 2015, amounts were calculated based on the period of time such loans and leases were impaired during the reported period.



	Nine Months Ended September 30,
	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	$	18,220	$	781	$	13,155	$	449
Residential	2,325		42		2,334		24
Real estate construction and land:
Residential	736		11		751		12
Commercial:
Cash flow	20,417		26		13,225		35
Asset-based	2,278		14		3,906		67
Venture capital	2,542		—		—		—
Equipment finance	41,587		—		6,905		—
Consumer	330		8		375		11
With No Related Allowance Recorded:
Real estate mortgage:
Commercial	$	54,747	$	1,209	$	33,263	$	674
Residential	6,990		130		5,046		26
Real estate construction and land:
Commercial	7,106		169		7,021		176
Commercial:
Cash flow	2,232		1		2,917		86
Asset-based	1,828		77		1,238		51
Equipment finance	—		—		29,088		—
Consumer	74		1		3,208		—
Total Non-PCI Loans and Leases With and Without an Allowance Recorded:
Real estate mortgage	$	82,282	$	2,162	$	53,798	$	1,173
Real estate construction and land	7,842		180		7,772		188
Commercial	70,884		118		57,279		239
Consumer	404		9		3,583		11
Total	$	161,412	$	2,469	$	122,432	$	1,611

_________________________


(1)	For Non-PCI loans and leases reported as impaired at September 30, 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 September 30,
	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	2	$	1,147	$	1,147	3	$	574	$	574
Residential	1	93		93		2	382		382
Real estate construction and land:
Commercial	1	1,245		1,245		3	7,333		7,333
Commercial:
Cash flow	2	25		25		9	883		883
Asset-based	1	25		25		1	3,431		3,431
Equipment finance	1	39,912		39,912		—	—		—
Consumer	1	21		21		1	106		106
Total	9	$	42,468	$	42,468	19	$	12,709	$	12,709



	Nine Months Ended September 30,
	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	7	$	5,287	$	5,287	15	$	7,080	$	7,031
Residential	7	5,136		5,136		14	2,426		2,260
Real estate construction and land:
Commercial	1	1,245		1,245		6	16,947		16,947
Commercial:
Cash flow	12	30,582		30,582		17	1,756		1,577
Asset-based	5	2,158		2,158		13	8,139		8,139
Equipment finance	7	44,196		42,572		9	53,338		53,338
Consumer	4	819		111		2	197		197
Total	43	$	89,423	$	87,091	76	$	89,883	$	89,489

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



	Three Months Ended September 30,
	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	$	1,761
Residential	—	—			2	276
Real estate construction:
Commercial	1	1,245			—	—
Commercial:
Asset-based	1	2			—	—
Total	2	$	1,247	(2)	3	$	2,037	(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, 2016, and there were no charge-offs.


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



	Nine Months Ended September 30,
	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	—	$	—		2	$	2,710
Residential	—	—			3	530
Real estate construction and land:
Commercial	1	1,245			—	—
Commercial:
Asset-based	1	2			—	—
Equipment finance	1	39,912		(4)	—	—
Total	3	$	41,159	(2)	5	$	3,240	(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, 2016, and there were no charge-offs.


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


(4)	The term of the modification for this loan expired in the second quarter of 2016 and was not renewed until the third quarter of 2016. Thus, the loan was in payment default under the loan's original terms at June 30, 2016.

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 September 30, 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	$	29,331		$	7,853	$	93,404		$	1,412		$	132,000		$	11,289		$	143,289
Charge-offs	(302		)	—		(9,606		)	(16		)	(9,924		)	(531		)	(10,455		)
Recoveries	2,414			27		3,553			56			6,050			—			6,050
Provision	5,498			803		2,240			80			8,621			471			9,092
Balance, end of period	$	36,941		$	8,683	$	89,591		$	1,532		$	136,747		$	11,229		$	147,976



	Nine Months Ended September 30, 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	(1,905		)	—		(14,306		)	(798		)	(17,009		)	(862		)	(17,871		)
Recoveries	4,352			185		4,179			95			8,811			—			8,811
Provision (negative provision)	(2,160		)	1,361		38,636			1,574			39,411			2,514			41,925
Balance, end of period	$	36,941		$	8,683	$	89,591		$	1,532		$	136,747		$	11,229		$	147,976

Amount of the allowance
applicable to loans and leases:
Individually evaluated for impairment	$	7,299		$	11	$	23,631		$	179		$	31,120
Collectively evaluated for impairment	$	29,642		$	8,672	$	65,960		$	1,353		$	105,627
Acquired loans with deteriorated credit quality															$	11,229

The ending balance of the
loan and lease portfolio is
composed of loans and leases:
Individually evaluated for impairment	$	139,059		$	8,700	$	92,637		$	376		$	240,772
Collectively evaluated for impairment	$	5,325,882		$	822,815	$	7,977,050		$	256,128		$	14,381,875
Acquired loans with deteriorated credit quality															$	120,199
Ending balance of
loans and leases	$	5,464,941		$	831,515	$	8,069,687		$	256,504		$	14,622,647		$	120,199		$	14,742,846



	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