LOANS AND LEASES

Our 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 we would be able to collect all contractually required payments, are referred to collectively as Non-PCI loans. Generally, PCI loans are purchased loans for which there was, at the acquisition date, evidence of credit deterioration since their origination and for which it was probable that collection of all contractually required payments was unlikely.

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 on acquired non-impaired loans are recognized as an adjustment to interest income over the contractual life of the loans primarily using the effective interest method or taken into income when the related loans are paid off or included in the carrying amount of loans that are 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.

Loans Held for Sale

In the second quarter of 2017, we entered into two agreements to sell loans with balances totaling $175.2 million and the associated unfunded commitments of $19.3 million, primarily from our healthcare portfolios. The $175.2 million of loans were reported as loans held for sale at June 30, 2017 and the sales were completed in July. In connection with the transfer of loans to held for sale, we recognized $7.2 million in charge-offs during the second quarter related to our healthcare portfolio loans in order to record the loans at the lower of cost or fair value. There were no loans held for sale at September 30, 2017.

Loans and Leases Held for Investment

The following table summarizes the composition of our loans and leases held for investment as of the dates indicated:



	September 30, 2017									December 31, 2016
	Non-PCI									Non-PCI
	Loans			PCI						Loans			PCI
	and Leases			Loans			Total			and Leases			Loans			Total
	(In thousands)
Real estate mortgage	$	6,146,978		$	58,077		$	6,205,055		$	5,635,675		$	92,793		$	5,728,468
Real estate construction and land	1,266,791			—			1,266,791			975,032			2,409			977,441
Commercial	7,894,115			4,194			7,898,309			8,426,236			12,994			8,439,230
Consumer	385,892			238			386,130			375,149			249			375,398
Total gross loans and leases held for
investment	15,693,776			62,509			15,756,285			15,412,092			108,445			15,520,537
Deferred fees, net	(65,753		)	(15		)	(65,768		)	(64,562		)	(21		)	(64,583		)
Total loans and leases held for investment,
net of deferred fees	15,628,023			62,494			15,690,517			15,347,530			108,424			15,455,954
Allowance for loan and lease losses	(152,770		)	(6,836		)	(159,606		)	(143,755		)	(13,483		)	(157,238		)
Total loans and leases held for
investment, net	$	15,475,253		$	55,658		$	15,530,911		$	15,203,775		$	94,941		$	15,298,716

Non‑PCI Loans and Leases Held for Investment

The following tables present an aging analysis of our Non‑PCI loans and leases held for investment, net of deferred fees, by portfolio segment and class as of the dates indicated:



	September 30, 2017
	30 - 89		90 or More
	Days		Days		Total
	Past Due		Past Due		Past Due		Current		Total
	(In thousands)
Real estate mortgage:
Commercial	$	1,685	$	3,664	$	5,349	$	4,306,899	$	4,312,248
Residential	282		1,740		2,022		1,816,926		1,818,948
Total real estate mortgage	1,967		5,404		7,371		6,123,825		6,131,196
Real estate construction and land:
Commercial	—		—		—		680,949		680,949
Residential	—		—		—		568,273		568,273
Total real estate construction and land	—		—		—		1,249,222		1,249,222
Commercial:
Cash flow	140		1,484		1,624		2,728,771		2,730,395
Asset-based	—		—		—		2,577,390		2,577,390
Venture capital	3,142		948		4,090		1,955,345		1,959,435
Equipment finance	—		690		690		593,782		594,472
Total commercial	3,282		3,122		6,404		7,855,288		7,861,692
Consumer	286		272		558		385,355		385,913
Total	$	5,535	$	8,798	$	14,333	$	15,613,690	$	15,628,023



	December 31, 2016
	30 - 89		90 or More
	Days		Days		Total
	Past Due		Past Due		Past Due		Current		Total
	(In thousands)
Real estate mortgage:
Commercial	$	8,590	$	3,303	$	11,893	$	4,341,740	$	4,353,633
Residential	5,694		1,999		7,693		1,256,630		1,264,323
Total real estate mortgage	14,284		5,302		19,586		5,598,370		5,617,956
Real estate construction and land:
Commercial	—		—		—		578,838		578,838
Residential	364		—		364		383,637		384,001
Total real estate construction and land	364		—		364		962,475		962,839
Commercial:
Cash flow	191		1,821		2,012		3,105,380		3,107,392
Asset-based	1,500		2		1,502		2,607,543		2,609,045
Venture capital	13,589		5,769		19,358		1,963,798		1,983,156
Equipment finance	1,417		3,051		4,468		687,499		691,967
Total commercial	16,697		10,643		27,340		8,364,220		8,391,560
Consumer	224		—		224		374,951		375,175
Total	$	31,569	$	15,945	$	47,514	$	15,300,016	$	15,347,530

It is our policy to 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 opinion of management, there is a reasonable doubt as to the collectability of a 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 held for investment, net of deferred fees, by portfolio segment and class as of the dates indicated:



	September 30, 2017						December 31, 2016
	Nonaccrual		Performing		Total		Nonaccrual		Performing		Total
	(In thousands)
Real estate mortgage:
Commercial	$	63,096	$	4,249,152	$	4,312,248	$	62,454	$	4,291,179	$	4,353,633
Residential	3,186		1,815,762		1,818,948		6,881		1,257,442		1,264,323
Total real estate mortgage	66,282		6,064,914		6,131,196		69,335		5,548,621		5,617,956
Real estate construction and land:
Commercial	—		680,949		680,949		—		578,838		578,838
Residential	—		568,273		568,273		364		383,637		384,001
Total real estate construction and land	—		1,249,222		1,249,222		364		962,475		962,839
Commercial:
Cash flow	33,514		2,696,881		2,730,395		53,908		3,053,484		3,107,392
Asset-based	3,977		2,573,413		2,577,390		2,118		2,606,927		2,609,045
Venture capital	22,686		1,936,749		1,959,435		11,687		1,971,469		1,983,156
Equipment finance	30,942		563,530		594,472		32,848		659,119		691,967
Total commercial	91,119		7,770,573		7,861,692		100,561		8,290,999		8,391,560
Consumer	296		385,617		385,913		339		374,836		375,175
Total	$	157,697	$	15,470,326	$	15,628,023	$	170,599	$	15,176,931	$	15,347,530

At September 30, 2017, nonaccrual loans and leases totaled $157.7 million and included $8.8 million of loans and leases 90 or more days past due, $0.7 million of loans and leases 30 to 89 days past due, and $148.2 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 $170.6 million at December 31, 2016, including $15.9 million of the loans and leases 90 or more days past due, $3.0 million of loans and leases 30 to 89 days past due, and $151.7 million of current loans and leases that were placed on nonaccrual status based on management’s judgment regarding their collectability.

As of September 30, 2017, our ten largest Non-PCI loan relationships on nonaccrual status had an aggregate carrying value of $129.1 million and represented 81.9% of total Non-PCI nonaccrual loans and leases. The largest of these relationships consisted of a $45.5 million healthcare real estate loan secured by a continuing care retirement facility that migrated to nonaccrual status during the third quarter of 2016 due to weak operating performance and cash flow difficulties.

The following table presents the credit risk rating categories for Non‑PCI loans and leases held for investment, net of deferred fees, 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, 2017						December 31, 2016
	Classified		Nonclassified		Total		Classified		Nonclassified		Total
	(In thousands)
Real estate mortgage:
Commercial	$	95,272	$	4,216,976	$	4,312,248	$	99,641	$	4,253,992	$	4,353,633
Residential	7,652		1,811,296		1,818,948		17,540		1,246,783		1,264,323
Total real estate mortgage	102,924		6,028,272		6,131,196		117,181		5,500,775		5,617,956
Real estate construction and land:
Commercial	—		680,949		680,949		409		578,429		578,838
Residential	—		568,273		568,273		364		383,637		384,001
Total real estate construction and land	—		1,249,222		1,249,222		773		962,066		962,839
Commercial:
Cash flow	128,207		2,602,188		2,730,395		177,661		2,929,731		3,107,392
Asset-based	19,645		2,557,745		2,577,390		28,112		2,580,933		2,609,045
Venture capital	62,602		1,896,833		1,959,435		52,646		1,930,510		1,983,156
Equipment finance	30,942		563,530		594,472		32,848		659,119		691,967
Total commercial	241,396		7,620,296		7,861,692		291,267		8,100,293		8,391,560
Consumer	457		385,456		385,913		424		374,751		375,175
Total	$	344,777	$	15,283,246	$	15,628,023	$	409,645	$	14,937,885	$	15,347,530

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 increases in the provisions for credit losses and the allowance for credit losses.

Non‑PCI nonaccrual loans and leases and performing troubled debt restructured loans are considered impaired for reporting purposes. Troubled debt restructurings are a result of rate reductions, term extensions, fee concessions, and debt forgiveness, or a combination thereof.

The following table presents the composition of our impaired loans and leases held for investment, net of deferred fees, by portfolio segment as of the dates indicated:



	September 30, 2017						December 31, 2016
			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	$	66,282	$	47,473	$	113,755	$	69,335	$	54,750	$	124,085
Real estate construction and land	—		5,764		5,764		364		6,893		7,257
Commercial	91,119		3,209		94,328		100,561		3,157		103,718
Consumer	296		106		402		339		152		491
Total	$	157,697	$	56,552	$	214,249	$	170,599	$	64,952	$	235,551

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



	September 30, 2017						December 31, 2016
			Unpaid						Unpaid
	Recorded		Principal		Related		Recorded		Principal		Related
Impaired Loans and Leases	Investment		Balance		Allowance		Investment		Balance		Allowance
	(In thousands)
With An Allowance Recorded:
Real estate mortgage:
Commercial	$	14,716	$	15,536	$	682	$	63,325	$	65,031	$	6,266
Residential	3,074		3,269		471		8,424		8,612		585
Real estate construction and land:
Residential	—		—		—		213		213		—
Commercial:
Cash flow	31,114		40,068		8,720		51,272		52,910		12,474
Asset-based	2,499		2,514		422		4,395		4,861		2,144
Venture capital	20,039		22,377		5,870		5,821		5,880		3,294
Equipment finance	—		—		—		1,524		4,636		—
Consumer	106		105		17		270		280		170
With No Related Allowance Recorded:
Real estate mortgage:
Commercial	$	92,295	$	103,306			$	44,557	$	51,402
Residential	3,670		3,906				7,779		8,940
Real estate construction and land:
Commercial	5,764		5,762				6,680		6,680
Residential	—		—				364		366
Commercial:
Cash flow	2,559		4,690				2,852		5,939
Asset-based	4,528		6,479				664		1,652
Venture capital	2,647		6,741				5,866		8,939
Equipment finance	30,942		49,742				31,324		53,319
Consumer	296		368				221		292
Total Non-PCI Loans and Leases With
and Without an Allowance Recorded:
Real estate mortgage	$	113,755	$	126,017	$	1,153	$	124,085	$	133,985	$	6,851
Real estate construction and land	5,764		5,762		—		7,257		7,259		—
Commercial	94,328		132,611		15,012		103,718		138,136		17,912
Consumer	402		473		17		491		572		170
Total	$	214,249	$	264,863	$	16,182	$	235,551	$	279,952	$	24,933



	Three Months Ended September 30,
	2017				2016
	Weighted		Interest		Weighted		Interest
	Average		Income		Average		Income
Impaired Loans and Leases	Balance⁽¹⁾		Recognized		Balance⁽¹⁾		Recognized
	(In thousands)
With An Allowance Recorded:
Real estate mortgage:
Commercial	$	14,716	$	214	$	18,580	$	262
Residential	3,074		14		2,505		15
Real estate construction and land:
Residential	—		—		736		4
Commercial:
Cash flow	31,114		2		25,933		9
Asset-based	2,372		29		2,730		5
Venture capital	18,298		—		6,878		—
Equipment finance	—		—		42,913		—
Consumer	106		2		346		3
With No Related Allowance Recorded:
Real estate mortgage:
Commercial	$	92,183	$	635	$	59,090	$	518
Residential	3,670		15		9,573		70
Real estate construction and land:
Commercial	5,764		74		7,870		57
Commercial:
Cash flow	2,338		11		2,330		1
Asset-based	1,501		29		2,535		37
Venture capital	2,647		—		—		—
Equipment finance	30,942		—		—		—
Consumer	296		—		76		—
Total Non-PCI Loans and Leases With
and Without an Allowance Recorded:
Real estate mortgage	$	113,643	$	878	$	89,748	$	865
Real estate construction and land	5,764		74		8,606		61
Commercial	89,212		71		83,319		52
Consumer	402		2		422		3
Total	$	209,021	$	1,025	$	182,095	$	981

_________________________


(1)	For Non-PCI loans and leases reported as impaired at September 30, 2017 and 2016, amounts were calculated based on the period of time such loans and leases were impaired during the reported period.



	Nine Months Ended September 30,
	2017				2016
	Weighted		Interest		Weighted		Interest
	Average		Income		Average		Income
Impaired Loans and Leases	Balance⁽¹⁾		Recognized		Balance⁽¹⁾		Recognized
	(In thousands)
With An Allowance Recorded:
Real estate mortgage:
Commercial	$	14,716	$	634	$	18,220	$	781
Residential	3,074		41		2,325		42
Real estate construction and land:
Residential	—		—		736		11
Commercial:
Cash flow	31,114		5		20,417		26
Asset-based	2,079		83		2,278		14
Venture capital	9,621		—		2,542		—
Equipment finance	—		—		41,587		—
Consumer	106		6		330		8
With No Related Allowance Recorded:
Real estate mortgage:
Commercial	$	90,631	$	1,924	$	54,747	$	1,209
Residential	3,650		44		6,990		130
Real estate construction and land:
Commercial	5,764		220		7,106		169
Commercial:
Cash flow	1,995		14		2,232		1
Asset-based	1,171		54		1,828		77
Venture capital	1,922		—		—		—
Equipment finance	30,560		—		—		—
Consumer	296		—		74		1
Total Non-PCI Loans and Leases With
and Without an Allowance Recorded:
Real estate mortgage	$	112,071	$	2,643	$	82,282	$	2,162
Real estate construction and land	5,764		220		7,842		180
Commercial	78,462		156		70,884		118
Consumer	402		6		404		9
Total	$	196,699	$	3,025	$	161,412	$	2,469

_________________________


(1)	For Non-PCI loans and leases reported as impaired at September 30, 2017 and 2016, amounts were calculated based on the period of time such loans and leases were impaired during the reported period.

The following tables present our troubled debt restructurings of Non-PCI loans held for investment by portfolio segment and class for the periods indicated:



	Three Months Ended September 30,
	2017					2016
		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	1	$	998	$	998	2	$	1,147	$	1,147
Residential	3	566		10		1	93		93
Real estate construction and land:
Commercial	—	—		—		1	1,245		1,245
Commercial:
Cash flow	3	9,491		255		2	25		25
Asset-based	2	2,655		2,655		1	25		25
Venture capital	4	15,308		15,308		—	—		—
Equipment finance	—	—		—		1	39,912		39,912
Consumer	—	—		—		1	21		21
Total	13	$	29,018	$	19,226	9	$	42,468	$	42,468



	Nine Months Ended September 30,
	2017					2016
		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	5	$	2,527	$	2,463	7	$	5,287	$	5,287
Residential	8	1,328		489		7	5,136		5,136
Real estate construction and land:
Commercial	—	—		—		1	1,245		1,245
Residential	1	362		—		—	—		—
Commercial:
Cash flow	12	26,385		17,150		12	30,582		30,582
Asset-based	7	4,433		4,433		5	2,158		2,158
Venture capital	9	28,465		28,465		—	—		—
Equipment finance	—	—		—		7	44,196		42,572
Consumer	1	97		97		4	819		111
Total	43	$	63,597	$	53,097	43	$	89,423	$	87,091

The following tables present troubled debt restructurings of Non-PCI loans held for investment by portfolio segment and class that subsequently defaulted for the periods indicated:



	Three Months Ended September 30,
	2017			2016
Troubled Debt Restructurings	Number	Recorded		Number	Recorded
That Subsequently Defaulted	of Loans	Investment⁽¹⁾		of Loans	Investment⁽¹⁾
	(Dollars in thousands)
Real estate construction and land:
Commercial	—	$	—	1	$	1,245
Commercial:
Asset-based	—	—		1	2
Total	—	$	—	2	$	1,247	(2)

_________________________

(1)

The population of defaulted restructured loans for the period indicated includes only those loans restructured during the preceding 12-month period. For example, for the 12-month period ended September 30, 2017, the population of defaulted restructured loans includes only those loans restructured after September 30, 2016. 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.



	Nine Months Ended September 30,
	2017			2016
Troubled Debt Restructurings	Number	Recorded		Number	Recorded
That Subsequently Defaulted	of Loans	Investment⁽¹⁾		of Loans	Investment⁽¹⁾
	(Dollars in thousands)
Real estate construction and land:
Commercial	—	$	—	1	$	1,245
Commercial:
Asset-based	—	—		1	2
Equipment finance	—	—		1	39,912		(3)
Total	—	$	—	3	$	41,159	(2)

_________________________

(1)


(2)	Represents the balance at September 30, 2016, and there were no charge-offs.


(3)	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. The modified terms were extended an additional six months in April 2017.

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 held for investment by portfolio segment and PCI loans held for investment for the periods indicated:



	Three Months Ended September 30, 2017
				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	$	37,122		$	11,318	$	88,364		$	2,075		$	138,879		$	7,079		$	145,958
Charge-offs	(531		)	—		(4,984		)	(413		)	(5,928		)	(79		)	(6,007		)
Recoveries	36			353		4,447			29			4,865			217			5,082
Provision (negative provision)	(186		)	22		14,366			752			14,954			(381		)	14,573
Balance, end of period	$	36,441		$	11,693	$	102,193		$	2,443		$	152,770		$	6,836		$	159,606



	Nine Months Ended September 30, 2017
				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	$	37,765		$	10,045	$	93,853		$	2,092		$	143,755		$	13,483		$	157,238
Charge-offs	(2,217		)	—		(46,965		)	(625		)	(49,807		)	(5,768		)	(55,575		)
Recoveries	286			370		8,848			104			9,608			275			9,883
Provision (negative provision)	607			1,278		46,457			872			49,214			(1,154		)	48,060
Balance, end of period	$	36,441		$	11,693	$	102,193		$	2,443		$	152,770		$	6,836		$	159,606

Ending Allowance by
Impairment Methodology:
Individually evaluated for
impairment	$	1,153		$	—	$	15,012		$	17		$	16,182
Collectively evaluated for
impairment	$	35,288		$	11,693	$	87,181		$	2,426		$	136,588
Acquired loans with
deteriorated credit quality															$	6,836

Ending Loans and Leases by
Impairment Methodology:
Individually evaluated for
impairment	$	113,304		$	5,764	$	94,078		$	106		$	213,252
Collectively evaluated for
impairment	6,017,892			1,243,458		7,767,614			385,807			15,414,771
Acquired loans with
deteriorated credit quality															$	62,494
Ending balance	$	6,131,196		$	1,249,222	$	7,861,692		$	385,913		$	15,628,023		$	62,494		$	15,690,517



	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

Ending Allowance by
Impairment Methodology:
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

Ending Loans and Leases by
Impairment Methodology:
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	$	5,464,941		$	831,515	$	8,069,687		$	256,504		$	14,622,647		$	120,199		$	14,742,846

Allowance for Credit Losses

The Non-PCI allowance for credit losses is the combination of the Non-PCI allowance for loan and lease losses and the Non-PCI reserve for unfunded loan commitments. The Non-PCI reserve for unfunded loan commitments is included within "Accrued interest payable and other liabilities" on the condensed consolidated balance sheets. The following tables present a summary of the activity in the Non-PCI allowance for loan and lease losses, Non-PCI reserve for unfunded loan commitments, and PCI allowance for loan losses for the periods indicated:



	Three Months Ended September 30, 2017
	Non-PCI
	Allowance for			Reserve for					PCI			Total
	Loan and			Unfunded Loan		Allowance for			Allowance for			Allowance for
	Lease Losses			Commitments		Credit Losses			Loan Losses			Credit Losses
	(In thousands)
Balance, beginning of period	$	138,879		$	20,263	$	159,142		$	7,079		$	166,221
Charge-offs	(5,928		)	—		(5,928		)	(79		)	(6,007		)
Recoveries	4,865			—		4,865			217			5,082
Net charge-offs	(1,063		)	—		(1,063		)	138			(925		)
Provision (negative provision)	14,954			546		15,500			(381		)	15,119
Balance, end of period	$	152,770		$	20,809	$	173,579		$	6,836		$	180,415



	Nine Months Ended September 30, 2017
	Non-PCI
	Allowance for			Reserve for					PCI			Total
	Loan and			Unfunded Loan		Allowance for			Allowance for			Allowance for
	Lease Losses			Commitments		Credit Losses			Loan Losses			Credit Losses
	(In thousands)
Balance, beginning of period	$	143,755		$	17,523	$	161,278		$	13,483		$	174,761
Charge-offs	(49,807		)	—		(49,807		)	(5,768		)	(55,575		)
Recoveries	9,608			—		9,608			275			9,883
Net charge-offs	(40,199		)	—		(40,199		)	(5,493		)	(45,692		)
Provision (negative provision)	49,214			3,286		52,500			(1,154		)	51,346
Balance, end of period	$	152,770		$	20,809	$	173,579		$	6,836		$	180,415



	Three Months Ended September 30, 2016
	Non-PCI
	Allowance for			Reserve for						PCI			Total
	Loan and			Unfunded Loan			Allowance for			Allowance for			Allowance for
	Lease Losses			Commitments			Credit Losses			Loan Losses			Credit Losses
	(In thousands)
Balance, beginning of period	$	132,000		$	17,944		$	149,944		$	11,289		$	161,233
Charge-offs	(9,924		)	—			(9,924		)	(531		)	(10,455		)
Recoveries	6,050			—			6,050			—			6,050
Net charge-offs	(3,874		)	—			(3,874		)	(531		)	(4,405		)
Provision (negative provision)	8,621			(621		)	8,000			471			8,471
Balance, end of period	$	136,747		$	17,323		$	154,070		$	11,229		$	165,299



	Nine Months Ended September 30, 2016
	Non-PCI
	Allowance for			Reserve for					PCI			Total
	Loan and			Unfunded Loan		Allowance for			Allowance for			Allowance for
	Lease Losses			Commitments		Credit Losses			Loan Losses			Credit Losses
	(In thousands)
Balance, beginning of period	$	105,534		$	16,734	$	122,268		$	9,577		$	131,845
Charge-offs	(17,009		)	—		(17,009		)	(862		)	(17,871		)
Recoveries	8,811			—		8,811			—			8,811
Net charge-offs	(8,198		)	—		(8,198		)	(862		)	(9,060		)
Provision	39,411			589		40,000			2,514			42,514
Balance, end of period	$	136,747		$	17,323	$	154,070		$	11,229		$	165,299