Allowance for Credit Losses

The allowance for credit losses consists of the allowance for losses on non-covered loans and allowance for losses on covered loans related to credit impairment of certain covered loan pools subsequent to acquisition, as well as the allowance for unfunded letters of credit. Management maintains the allowance for credit losses at a level estimated to absorb probable loan losses of the loan portfolio and unfunded letter of credit commitments at the balance sheet date. The allowance for losses on non-covered loans is based on ongoing evaluations of the probable estimated losses inherent in the non-covered loan portfolio, including unexpected credit impairment or reduction in the provision of non-covered PCI loan pools subsequent to the acquisition date.

The following table summarizes the allowance for credit losses at September 30, 2015 and December 31, 2014:



	September 30, 2015		December 31, 2014
	(in thousands)
Components of allowance for credit losses:
Allowance for non-covered loans	$	104,351	$	102,153
Allowance for covered loans	200		200
Total allowance for loan losses	104,551		102,353
Allowance for unfunded letters of credit	2,146		1,934
Total allowance for credit losses	$	106,697	$	104,287

The following table summarizes the provision for credit losses for the periods indicated:



	Three Months Ended September 30,					Nine Months Ended September 30,
	2015		2014			2015		2014
	(in thousands)
Components of provision for credit losses:
Provision for non-covered loans	$	—	$	—		$	4,382	$	4,949
Provision for covered loans	—		—			—		(5,671		)
Total provision for loan losses	—		—			4,382		(722		)
Provision for unfunded letters of credit	94		(423		)	212		(1,374		)
Total provision for credit losses	$	94	$	(423	)	$	4,594	$	(2,096	)

The following table details activity in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2015 and 2014:



	Commercial and Industrial			Commercial Real Estate			Residential Mortgage			Consumer			Unallocated			Total
	(in thousands)
Three Months Ended September 30, 2015:
Allowance for loan losses:
Beginning balance	$	41,714		$	44,185		$	5,055		$	5,542		$	6,339		$	102,835
Loans charged-off	(1,124		)	(40		)	(111		)	(734		)	—			(2,009		)
Charged-off loans recovered	2,550			536			151			488			—			3,725
Net recoveries (charge-offs)	1,426			496			40			(246		)	—			1,716
Provision for loan losses	4,397			(2,403		)	(546		)	(829		)	(619		)	—
Ending balance	$	47,537		$	42,278		$	4,549		$	4,467		$	5,720		$	104,551
Three Months Ended September 30, 2014:
Allowance for loan losses:
Beginning balance	$	48,421		$	35,267		$	7,018		$	5,368		$	6,979		$	103,053
Loans charged-off ⁽¹⁾	(1,852		)	(181		)	(240		)	(72		)	—			(2,345		)
Charged-off loans recovered	1,190			26			8			506			—			1,730
Net (charge-offs) recoveries	(662		)	(155		)	(232		)	434			—			(615		)
Provision for loan losses	(1,388		)	1,954			(610		)	(22		)	66			—
Ending balance	$	46,371		$	37,066		$	6,176		$	5,780		$	7,045		$	102,438



	Commercial and Industrial			Commercial Real Estate			Residential Mortgage			Consumer			Unallocated			Total
	(in thousands)
Nine Months Ended September 30, 2015:
Allowance for loan losses:
Beginning balance	$	43,676		$	42,840		$	5,093		$	5,179		$	5,565		$	102,353
Loans charged-off	(5,103		)	(2,780		)	(499		)	(2,642		)	—			(11,024		)
Charged-off loans recovered	5,587			1,686			395			1,172			—			8,840
Net recoveries (charge-offs)	484			(1,094		)	(104		)	(1,470		)	—			(2,184		)
Provision for loan losses	3,377			532			(440		)	758			155			4,382
Ending balance	$	47,537		$	42,278		$	4,549		$	4,467		$	5,720		$	104,551
Nine Months Ended September 30, 2014:
Allowance for loan losses:
Beginning balance	$	51,551		$	42,343		$	7,786		$	4,359		$	7,578		$	113,617
Loans charged-off ⁽¹⁾	(11,806		)	(6,703		)	(515		)	(2,311		)	—			(21,335		)
Charged-off loans recovered ⁽²⁾	6,154			2,831			244			1,649			—			10,878
Net charge-offs	(5,652		)	(3,872		)	(271		)	(662		)	—			(10,457		)
Provision for loan losses	472			(1,405		)	(1,339		)	2,083			(533		)	(722		)
Ending balance	$	46,371		$	37,066		$	6,176		$	5,780		$	7,045		$	102,438


(1)	Includes covered loans charge-offs totaling $433 thousand and $1.2 million for three and nine months ended September 30, 2014, respectively. There were no covered loan charge-offs during 2015.


(2)	Included covered loans recoveries totaling $462 thousand for nine months ended September 30, 2014. There were no covered loan recoveries for the third quarters of 2014 and 2015, and the nine months ended September 30, 2015.

The following table represents the allocation of the allowance for loan losses and the related loans by loan portfolio segment disaggregated based on the impairment methodology at September 30, 2015 and December 31, 2014.



	Commercial and Industrial		Commercial Real Estate		Residential Mortgage		Consumer		Unallocated		Total
	(in thousands)
September 30, 2015
Allowance for loan losses:
Individually evaluated for impairment	$	4,446	$	4,536	$	1,632	$	463	$	—	$	11,077
Collectively evaluated for impairment	42,921		37,742		2,917		3,974		5,720		93,274
Loans acquired with discounts related to credit quality	170		—		—		30		—		200
Total	$	47,537	$	42,278	$	4,549	$	4,467	$	5,720	$	104,551
Loans:
Individually evaluated for impairment	$	27,384	$	89,434	$	23,424	$	3,097	$	—	$	143,339
Collectively evaluated for impairment	2,125,254		6,441,869		2,839,978		1,988,586		—		13,395,687
Loans acquired with discounts related to credit quality	247,980		999,027		135,860		94,921		—		1,477,788
Total	$	2,400,618	$	7,530,330	$	2,999,262	$	2,086,604	$	—	$	15,016,814
December 31, 2014
Allowance for loan losses:
Individually evaluated for impairment	$	4,929	$	5,502	$	1,629	$	465	$	—	$	12,525
Collectively evaluated for impairment	38,577		37,338		3,434		4,714		5,565		89,628
Loans acquired with discounts related to credit quality	170		—		30		—		—		200
Total	$	43,676	$	42,840	$	5,093	$	5,179	$	5,565	$	102,353
Loans:
Individually evaluated for impairment	$	28,224	$	91,298	$	22,340	$	3,146	$	—	$	145,008
Collectively evaluated for impairment	1,931,703		5,438,538		2,396,704		1,840,159		—		11,607,104
Loans acquired with discounts related to credit quality	291,184		1,164,179		157,328		109,110		—		1,721,801
Total	$	2,251,111	$	6,694,015	$	2,576,372	$	1,952,415	$	—	$	13,473,913