PAST DUE LOANS, ALLOWANCE FOR CREDIT LOSSES, IMPAIRED LOANS, AND TDRS

Past Due and Non-accrual Loans

The following table presents an aging analysis of the Company's past due loans as of December 31, 2015 and 2014. The aging is determined without regard to accrual status. The table also presents non-performing loans, consisting of non-accrual loans (the majority of which are past due) and loans 90 days or more past due and still accruing interest, as of each balance sheet date.

Aging Analysis of Past Due Loans and Non-Performing Loans by Class

(Dollar amounts in thousands)



	Aging Analysis (Accruing and Non-accrual)										Non-performing Loans
	Current		30-89 Days Past Due		90 Days or More Past Due		Total Past Due		Total Loans		Non-accrual Loans		90 Days Past Due Loans, Still Accruing Interest
As of December 31, 2015
Commercial and industrial	$	2,516,197	$	4,956	$	3,573	$	8,529	$	2,524,726	$	5,587	$	857
Agricultural	387,109		245		86		331		387,440		355		—
Commercial real estate:
Office, retail, and industrial	1,386,383		2,647		6,424		9,071		1,395,454		6,875		4
Multi-family	526,625		541		1,158		1,699		528,324		796		548
Construction	216,377		—		505		505		216,882		905		—
Other commercial real estate	922,531		3,575		5,084		8,659		931,190		5,611		661
Total commercial real estate	3,051,916		6,763		13,171		19,934		3,071,850		14,187		1,213
Total corporate loans	5,955,222		11,964		16,830		28,794		5,984,016		20,129		2,070
Home equity	647,175		3,247		3,046		6,293		653,468		5,310		216
1-4 family mortgages	350,980		2,680		2,194		4,874		355,854		3,416		528
Installment	136,780		753		69		822		137,602		20		69
Total consumer loans	1,134,935		6,680		5,309		11,989		1,146,924		8,746		813
Total loans, excluding covered loans	7,090,157		18,644		22,139		40,783		7,130,940		28,875		2,883
Covered loans	29,808		405		562		967		30,775		555		174
Total loans	$	7,119,965	$	19,049	$	22,701	$	41,750	$	7,161,715	$	29,430	$	3,057
As of December 31, 2014
Commercial and industrial	$	2,230,947	$	19,505	$	3,104	$	22,609	$	2,253,556	$	22,693	$	205
Agricultural	355,982		1,934		333		2,267		358,249		360		—
Commercial real estate:
Office, retail, and industrial	1,463,724		2,340		12,315		14,655		1,478,379		12,939		76
Multi-family	562,625		1,261		535		1,796		564,421		754		83
Construction	197,255		—		6,981		6,981		204,236		6,981		—
Other commercial real estate	876,609		5,412		5,876		11,288		887,897		6,970		438
Total commercial real estate	3,100,213		9,013		25,707		34,720		3,134,933		27,644		597
Total corporate loans	5,687,142		30,452		29,144		59,596		5,746,738		50,697		802
Home equity	535,587		3,216		4,382		7,598		543,185		6,290		145
1-4 family mortgages	287,892		2,246		1,325		3,571		291,463		2,941		166
Installment	75,428		506		98		604		76,032		43		60
Total consumer loans	898,907		5,968		5,805		11,773		910,680		9,274		371
Total loans, excluding covered loans	6,586,049		36,420		34,949		71,369		6,657,418		59,971		1,173
Covered loans	66,331		2,714		10,390		13,104		79,435		6,186		5,002
Total loans	$	6,652,380	$	39,134	$	45,339	$	84,473	$	6,736,853	$	66,157	$	6,175

Allowance for Credit Losses

The Company maintains an allowance for credit losses at a level deemed adequate by management to absorb probable losses inherent in the loan portfolio. See Note 1, "Summary of Significant Accounting Policies," for the accounting policy for the allowance for credit losses. A rollforward of the allowance for credit losses by portfolio segment for the years ended December 31, 2015, 2014, and 2013 is presented in the table below.

Allowance for Credit Losses by Portfolio Segment

(Dollar amounts in thousands)



	Commercial, Industrial, and Agricultural			Office, Retail, and Industrial			Multi-family			Construction			Other Commercial Real Estate			Consumer			Covered Loans			Reserve for Unfunded Commitments			Total Allowance
As of December 31, 2015
Beginning balance	$	29,458		$	10,992		$	2,249		$	2,297		$	8,327		$	12,145		$	7,226		$	1,816		$	74,510
Charge-offs	(15,885		)	(2,887		)	(545		)	(136		)	(2,643		)	(4,187		)	(634		)	—			(26,917		)
Recoveries	2,573			467			15			350			1,993			1,183			120			—			6,701
Net charge-offs	(13,312		)	(2,420		)	(530		)	214			(650		)	(3,004		)	(514		)	—			(20,216		)
Provision for loan and covered loan losses and other	20,928			4,544			743			(1,071		)	(1,589		)	2,671			(5,074		)	(591		)	20,561
Ending Balance	$	37,074		$	13,116		$	2,462		$	1,440		$	6,088		$	11,812		$	1,638		$	1,225		$	74,855
As of December 31, 2014
Beginning balance	$	30,381		$	10,405		$	2,017		$	6,316		$	10,817		$	13,010		$	12,559		$	1,616		$	87,121
Charge-offs	(17,424		)	(7,345		)	(943		)	(1,052		)	(4,834		)	(7,574		)	(1,012		)	—			(40,184		)
Recoveries	3,800			497			87			166			1,727			729			1,199			—			8,205
Net charge-offs	(13,624		)	(6,848		)	(856		)	(886		)	(3,107		)	(6,845		)	187			—			(31,979		)
Provision for loan and covered loan losses and other	12,701			7,435			1,088			(3,133		)	617			5,980			(5,520		)	200			19,368
Ending balance	$	29,458		$	10,992		$	2,249		$	2,297		$	8,327		$	12,145		$	7,226		$	1,816		$	74,510
As of December 31, 2013
Beginning balance	$	36,761		$	11,432		$	3,575		$	9,223		$	13,531		$	12,862		$	12,062		$	3,366		$	102,812
Charge-offs	(12,094		)	(4,744		)	(1,029		)	(1,916		)	(4,784		)	(9,414		)	(4,599		)	—			(38,580		)
Recoveries	3,797			228			584			1,032			1,646			1,071			24			—			8,382
Net charge-offs	(8,297		)	(4,516		)	(445		)	(884		)	(3,138		)	(8,343		)	(4,575		)	—			(30,198		)
Provision for loan and covered loan losses and other	1,917			3,489			(1,113		)	(2,023		)	424			8,491			5,072			(1,750		)	14,507
Ending balance	$	30,381		$	10,405		$	2,017		$	6,316		$	10,817		$	13,010		$	12,559		$	1,616		$	87,121

The table below provides a breakdown of loans and the related allowance for credit losses by portfolio segment as of December 31, 2015 and 2014.

Loans and Related Allowance for Credit Losses by Portfolio Segment

(Dollar amounts in thousands)



	Loans								Allowance for Credit Losses
	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		PCI		Total		Individually Evaluated for Impairment		Collectively Evaluated for Impairment		PCI		Total
As of December 31, 2015
Commercial, industrial, and agricultural	$	2,871	$	2,902,361	$	6,934	$	2,912,166	$	883	$	35,378	$	813	$	37,074
Commercial real estate:
Office, retail, and industrial	6,162		1,376,789		12,503		1,395,454		715		10,833		1,568		13,116
Multi-family	800		526,037		1,487		528,324		—		2,367		95		2,462
Construction	178		212,671		4,033		216,882		—		1,160		280		1,440
Other commercial real estate	3,665		913,161		14,364		931,190		—		5,367		721		6,088
Total commercial real estate	10,805		3,028,658		32,387		3,071,850		715		19,727		2,664		23,106
Total corporate loans	13,676		5,931,019		39,321		5,984,016		1,598		55,105		3,477		60,180
Consumer	—		1,135,959		10,965		1,146,924		—		11,425		387		11,812
Total loans, excluding covered loans	13,676		7,066,978		50,286		7,130,940		1,598		66,530		3,864		71,992
Covered loans	—		20,856		9,919		30,775		—		248		1,390		1,638
Reserve for unfunded commitments	—		—		—		—		—		1,225		—		1,225
Total loans	$	13,676	$	7,087,834	$	60,205	$	7,161,715	$	1,598	$	68,003	$	5,254	$	74,855
As of December 31, 2014
Commercial, industrial, and agricultural	$	19,796	$	2,588,141	$	3,868	$	2,611,805	$	2,249	$	27,209	$	—	$	29,458
Commercial real estate:
Office, retail, and industrial	12,332		1,458,918		7,129		1,478,379		271		10,721		—		10,992
Multi-family	939		561,400		2,082		564,421		—		2,249		—		2,249
Construction	6,671		195,094		2,471		204,236		—		2,297		—		2,297
Other commercial real estate	3,266		880,087		4,544		887,897		11		8,316		—		8,327
Total commercial real estate	23,208		3,095,499		16,226		3,134,933		282		23,583		—		23,865
Total corporate loans	43,004		5,683,640		20,094		5,746,738		2,531		50,792		—		53,323
Consumer	—		902,062		8,618		910,680		—		11,822		323		12,145
Total loans, excluding covered loans	43,004		6,585,702		28,712		6,657,418		2,531		62,614		323		65,468
Covered loans	—		24,753		54,682		79,435		—		488		6,738		7,226
Reserve for unfunded commitments	—		—		—		—		—		1,816		—		1,816
Total loans	$	43,004	$	6,610,455	$	83,394	$	6,736,853	$	2,531	$	64,918	$	7,061	$	74,510

Loans Individually Evaluated for Impairment

The following table presents loans individually evaluated for impairment by class of loan as of December 31, 2015 and 2014. PCI loans are excluded from this disclosure.

Impaired Loans Individually Evaluated by Class

(Dollar amounts in thousands)



	As of December 31,
	2015								2014
	Recorded Investment In								Recorded Investment In
	Loans with No Specific Reserve		Loans with a Specific Reserve		Unpaid Principal Balance		Specific Reserve		Loans with No Specific Reserve		Loans with a Specific Reserve		Unpaid Principal Balance		Specific Reserve
Commercial and industrial	$	1,673	$	1,198	$	4,592	$	883	$	666	$	19,130	$	35,457	$	2,249
Agricultural	—		—		—		—		—		—		—		—
Commercial real estate:
Office, retail, and industrial	4,654		1,508		12,083		715		9,623		2,709		18,340		271
Multi-family	800		—		941		—		939		—		1,024		—
Construction	178		—		299		—		6,671		—		7,731		—
Other commercial real estate	3,665		—		4,403		—		2,752		514		4,490		11
Total commercial real estate	9,297		1,508		17,726		715		19,985		3,223		31,585		282
Total impaired loans individually evaluated for impairment	$	10,970	$	2,706	$	22,318	$	1,598	$	20,651	$	22,353	$	67,042	$	2,531

The following table presents the average recorded investment and interest income recognized on impaired loans by class for the years ended December 31, 2015, 2014, and 2013. PCI loans are excluded from this disclosure.

Average Recorded Investment and Interest Income Recognized on Impaired Loans by Class

(Dollar amounts in thousands)



	Years Ended December 31,
	2015				2014				2013
	Average Recorded Balance		Interest Income Recognized ⁽¹⁾		Average Recorded Balance		Interest Income Recognized ⁽¹⁾		Average Recorded Balance		Interest Income Recognized ⁽¹⁾
Commercial and industrial	$	8,940	$	163	$	16,137	$	371	$	20,925	$	205
Agricultural	—		—		—		—		—		—
Commercial real estate:
Office, retail, and industrial	9,359		52		19,003		245		24,802		18
Multi-family	855		13		1,245		5		1,116		8
Construction	3,902		118		5,764		—		5,932		—
Other commercial real estate	3,310		44		6,014		138		13,141		31
Total commercial real estate	17,426		227		32,026		388		44,991		57
Total impaired loans	$	26,366	$	390	$	48,163	$	759	$	65,916	$	262


⁽¹⁾	Recorded using the cash basis of accounting.

Credit Quality Indicators

Corporate loans and commitments are assessed for credit risk and assigned ratings based on various characteristics, such as the borrower's cash flow, leverage, and collateral. Ratings for commercial credits are reviewed periodically. The following tables present credit quality indicators by class for corporate and consumer loans, excluding covered loans, as of December 31, 2015 and 2014.

Corporate Credit Quality Indicators by Class, Excluding Covered Loans

(Dollar amounts in thousands)



	Pass		Special Mention ⁽¹⁾⁽⁴⁾		Substandard ⁽²⁾⁽⁴⁾		Non-Accrual ⁽³⁾		Total
As of December 31, 2015
Commercial and industrial	$	2,379,992	$	86,263	$	52,884	$	5,587	$	2,524,726
Agricultural	381,523		—		5,562		355		387,440
Commercial real estate:
Office, retail, and industrial	1,320,164		32,627		35,788		6,875		1,395,454
Multi-family	517,412		6,146		3,970		796		528,324
Construction	201,496		4,678		9,803		905		216,882
Other commercial real estate	898,746		13,179		13,654		5,611		931,190
Total commercial real estate	2,937,818		56,630		63,215		14,187		3,071,850
Total corporate loans	$	5,699,333	$	142,893	$	121,661	$	20,129	$	5,984,016
As of December 31, 2014
Commercial and industrial	$	2,115,170	$	84,615	$	31,078	$	22,693	$	2,253,556
Agricultural	357,595		294		—		360		358,249
Commercial real estate:
Office, retail, and industrial	1,393,885		38,891		32,664		12,939		1,478,379
Multi-family	553,255		6,363		4,049		754		564,421
Construction	178,992		5,776		12,487		6,981		204,236
Other commercial real estate	829,003		32,517		19,407		6,970		887,897
Total commercial real estate	2,955,135		83,547		68,607		27,644		3,134,933
Total corporate loans	$	5,427,900	$	168,456	$	99,685	$	50,697	$	5,746,738


⁽¹⁾	Loans categorized as special mention exhibit potential weaknesses that require the close attention of management since these potential weaknesses may result in the deterioration of repayment prospects in the future.


⁽²⁾	Loans categorized as substandard exhibit a well-defined weakness or weaknesses that may jeopardize the liquidation of the debt. These loans continue to accrue interest because they are well secured and collection of principal and interest is expected within a reasonable time.


⁽³⁾	Loans categorized as non-accrual exhibit a well-defined weakness or weaknesses that may jeopardize the liquidation of the debt or result in a loss if the deficiencies are not corrected.


⁽⁴⁾	Total special mention and substandard loans includes accruing TDRs of $862,000 as of December 31, 2015 and $1.8 million as of December 31, 2014.

Consumer Credit Quality Indicators by Class, Excluding Covered Loans

(Dollar amounts in thousands)



	Performing		Non-accrual		Total
As of December 31, 2015
Home equity	$	648,158	$	5,310	$	653,468
1-4 family mortgages	352,438		3,416		355,854
Installment	137,582		20		137,602
Total consumer loans	$	1,138,178	$	8,746	$	1,146,924
As of December 31, 2014
Home equity	$	536,895	$	6,290	$	543,185
1-4 family mortgages	288,522		2,941		291,463
Installment	75,989		43		76,032
Total consumer loans	$	901,406	$	9,274	$	910,680

TDRs

TDRs are generally performed at the request of the individual borrower and may include forgiveness of principal, reduction in interest rates, changes in payments, and maturity date extensions. The table below presents TDRs by class as of December 31, 2015 and 2014. See Note 1, "Summary of Significant Accounting Policies," for the accounting policy for TDRs.

TDRs by Class

(Dollar amounts in thousands)



	As of December 31,
	2015						2014
	Accruing		Non-accrual ⁽¹⁾		Total		Accruing		Non-accrual ⁽¹⁾		Total
Commercial and industrial	$	294	$	1,050	$	1,344	$	269	$	18,799	$	19,068
Agricultural	—		—		—		—		—		—
Commercial real estate:
Office, retail, and industrial	164		—		164		586		—		586
Multi-family	598		186		784		887		232		1,119
Construction	—		—		—		—		—		—
Other commercial real estate	340		—		340		433		183		616
Total commercial real estate	1,102		186		1,288		1,906		415		2,321
Total corporate loans	1,396		1,236		2,632		2,175		19,214		21,389
Home equity	494		667		1,161		651		506		1,157
1-4 family mortgages	853		421		1,274		878		184		1,062
Installment	—		—		—		—		—		—
Total consumer loans	1,347		1,088		2,435		1,529		690		2,219
Total loans	$	2,743	$	2,324	$	5,067	$	3,704	$	19,904	$	23,608


⁽¹⁾	These TDRs are included in non-accrual loans in the preceding tables.

TDRs are included in the calculation of the allowance for credit losses in the same manner as impaired loans. There were $758,000 in specific reserves related to TDRs as of December 31, 2015, and there were $1.8 million in specific reserves related to TDRs as of December 31, 2014.

The following table presents a summary of loans that were restructured during the years ended December 31, 2015, 2014, and 2013.

Loans Restructured During the Period

(Dollar amounts in thousands)



	Number of Loans	Pre-Modification Recorded Investment		Funds Disbursed		Interest and Escrow Capitalized		Charge-offs		Post-Modification Recorded Investment
Year Ended December 31, 2015
Home equity	1	$	120	$	—	$	—	$	—	$	120
1-4 family mortgages	2	325		—		—		—		325
Total loans restructured during the period	3	$	445	$	—	$	—	$	—	$	445
Year Ended December 31, 2014
Commercial and industrial	7	$	23,852	$	—	$	—	$	—	$	23,852
Office, retail, and industrial	1	417		—		—		—		417
Multi-family	1	275		—		—		—		275
Home equity	1	75		—		—		—		75
Total loans restructured during the period	10	$	24,619	$	—	$	—	$	—	$	24,619
Year Ended December 31, 2013
Commercial and industrial	7	$	14,439	$	—	$	2	$	—	$	14,441
Office, retail, and industrial	6	2,275		30		—		—		2,305
Multi-family	5	1,274		—		57		—		1,331
Construction	2	508		—		—		—		508
Other commercial real estate	5	526		—		—		—		526
Home equity	13	1,189		—		—		—		1,189
1-4 family mortgages	1	132		—		4		—		136
Total loans restructured during the period	39	$	20,343	$	30	$	63	$	—	$	20,436

Accruing TDRs that do not perform in accordance with their modified terms are transferred to non-accrual. The following table presents TDRs that had payment defaults during the years ended December 31, 2015, 2014, and 2013 where the default occurred within twelve months of the restructure date.

TDRs That Defaulted Within Twelve Months of the Restructured Date

(Dollar amounts in thousands)



	Years Ended December 31,
	2015			2014			2013
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
Commercial and industrial	—	$	—	2	$	125	1	$	350
Other commercial real estate	—	—		—	—		3	354
Home equity	—	—		1	77		—	—
Total	—	$	—	3	$	202	4	$	704

A rollforward of the carrying value of TDRs for the years ended December 31, 2015, 2014, and 2013 is presented in the following table.

TDR Rollforward

(Dollar amounts in thousands)



	Years Ended December 31,
	2015			2014			2013
Accruing
Beginning balance	$	3,704		$	23,770		$	6,867
Additions	120			804			4,847
Net payments	(774		)	(1,440		)	(723		)
Returned to performing status	—			(20,656		)	(5,529		)
Net transfers (to) from non-accrual	(307		)	1,226			18,308
Ending balance	2,743			3,704			23,770
Non-accrual
Beginning balance	19,904			4,083			10,924
Additions	325			23,815			15,589
Net (payments) advances	(15,525		)	1,991			(1,359		)
Charge-offs	(2,687		)	(8,457		)	(1,880		)
Transfers to OREO	—			(302		)	(77		)
Loans sold	—			—			(806		)
Net transfers from (to) accruing	307			(1,226		)	(18,308		)
Ending balance	2,324			19,904			4,083
Total TDRs	$	5,067		$	23,608		$	27,853

For TDRs to be removed from TDR status in the calendar year after the restructuring, the loans must (i) have an interest rate and terms that reflect market conditions at the time of restructuring, and (ii) be in compliance with the modified terms. Loans that were not restructured at market rates and terms, that are not in compliance with the modified terms, or for which there is a concern about the future ability of the borrower to meet its obligations under the modified terms, continue to be separately reported as restructured until paid in full or charged-off.

There were no material commitments to lend additional funds to borrowers with TDRs as of December 31, 2015 and there were $666,000 in commitments as of December 31, 2014.