(4) Loans and Allowances for Credit Losses

Loans

Loans are either secured or unsecured based on the type of loan and the financial condition of the borrower. Repayment is generally expected from cash flow or proceeds from the sale of selected assets of the borrower. BOK Financial is exposed to risk of loss on loans due to the borrower’s difficulties, which may arise from any number of factors, including problems within the respective industry or local economic conditions. Access to collateral, in the event of borrower default, is reasonably assured through adherence to applicable lending laws and through sound lending standards and credit review procedures. Accounting policies for all loans, excluding residential mortgage loans guaranteed by U.S. government agencies, are as follows.

Interest is accrued at the applicable interest rate on the principal amount outstanding. Loans are placed on nonaccruing status when, in the opinion of management, full collection of principal or interest is uncertain. Internally risk graded loans are individually evaluated for nonaccruing status quarterly. Non-risk graded loans are generally placed on nonaccruing status when more than 90 days past due or within 60 days of being notified of the borrower's bankruptcy filing. Interest previously accrued but not collected is charged against interest income when the loan is placed on nonaccruing status. Payments on nonaccruing loans are applied to principal or recognized as interest income, according to management’s judgment as to the collectability of principal. Loans may be returned to accruing status when, in the opinion of management, full collection of principal and interest, including principal previously charged off, is probable based on improvements in the borrower’s financial condition or a sustained period of performance.

Loans to borrowers experiencing financial difficulties may be modified in troubled debt restructurings ("TDRs"). All TDRs are classified as nonaccruing. Modifications generally consist of extension of payment terms or interest rate concessions and may result either voluntarily through negotiations with the borrower or involuntarily through court order. Generally, principal and accrued but unpaid interest is not voluntarily forgiven.

Performing loans may be renewed under then current collateral value, debt service ratio and other underwriting standards. Nonaccruing loans may be renewed and will remain classified as nonaccruing.

All loans are charged off when the loan balance or a portion of the loan balance is no longer supported by the paying capacity of the borrower or when the required cash flow is reduced in a TDR. The charge-off amount is determined through a quarterly evaluation of available cash resources and collateral value and charge-offs are taken in the quarter in which the loss is identified. Non-risk graded loans that are past due between 60 and 180 days, based on the loan product type, are charged off. Loans to borrowers whose personal obligation has been discharged through Chapter 7 bankruptcy proceedings are charged off within 60 days of notice of the bankruptcy filing, regardless of payment status.

Loan origination and commitment fees and direct loan acquisition and origination costs are deferred and amortized as an adjustment to yield over the life of the loan or over the commitment period, as applicable.

Qualifying residential mortgage loans guaranteed by U.S. government agencies have been sold into GNMA pools. Under certain performance conditions specified in government programs, the Company may have the right, but not the obligation to repurchase loans from GNMA pools. These loans no longer qualify for sale accounting and are recognized in the Consolidated Balance Sheets. Guaranteed loans are considered impaired because we do not expect to receive all principal and interest based on the loan's contractual terms. The principal balance continues to be guaranteed; however, interest accrues at a curtailed rate as specified in the programs. The carrying value of these loans is reduced based on an estimate of the expected cash flows discounted at the original note rate plus a liquidity spread. Guaranteed loans may be modified in TDRs in accordance with U.S. government agency guidelines. Interest continues to accrue based on the modified rate. Guaranteed loans may either be resold into GNMA pools after a performance period specified by the programs or foreclosed and conveyed to the guarantors.

Loans are disaggregated into portfolio segments and further disaggregated into classes. The portfolio segment is the level at which the Company develops and documents a systematic method for determining its allowance for credit losses. Classes are a further disaggregation of portfolio segments based on the risk characteristics of the loans and the Company’s method for monitoring and assessing credit risk.

Portfolio segments of the loan portfolio are as follows (in thousands):



	June 30, 2014								December 31, 2013
	Fixed Rate		Variable Rate		Non-accrual		Total		Fixed Rate		Variable Rate		Non-accrual		Total
Commercial	$	1,681,348	$	6,669,210	$	17,103	$	8,367,661	$	1,637,620	$	6,288,841	$	16,760	$	7,943,221
Commercial real estate	744,101		1,876,405		34,472		2,654,978		770,908		1,603,595		40,850		2,415,353
Residential mortgage	1,753,186		210,689		44,340		2,008,215		1,783,615		226,092		42,319		2,052,026
Consumer	115,185		280,054		765		396,004		135,494		244,950		1,220		381,664
Total	$	4,293,820	$	9,036,358	$	96,680	$	13,426,858	$	4,327,637	$	8,363,478	$	101,149	$	12,792,264
Accruing loans past due (90 days)¹							$	67							$	1,415



	June 30, 2013
	Fixed Rate		Variable Rate		Non-accrual		Total
Commercial	$	1,447,823	$	6,239,428	$	20,869	$	7,708,120
Commercial real estate	698,242		1,560,161		58,693		2,317,096
Residential mortgage	1,768,607		230,644		40,534		2,039,785
Consumer	142,737		231,007		2,037		375,781
Total	$	4,057,409	$	8,261,240	$	122,133	$	12,440,782
Accruing loans past due (90 days)¹							$	2,460


¹	Excludes residential mortgage loans guaranteed by agencies of the U.S. government

At June 30, 2014, $4.4 billion or 33% of our total loan portfolio is to businesses and individuals attributed to the Texas market and $3.4 billion or 26% of the total loan portfolio is to businesses and individuals attributed to the Oklahoma market. These geographic concentrations subject the loan portfolio to the general economic conditions within these areas.

Commercial

Commercial loans represent loans for working capital, facilities acquisition or expansion, purchases of equipment and other needs of commercial customers primarily located within our geographical footprint. Commercial loans are underwritten individually and represent on-going relationships based on a thorough knowledge of the customer, the customer’s industry and market. While commercial loans are generally secured by the customer’s assets including real property, inventory, accounts receivable, operating equipment, interest in mineral rights and other property and may also include personal guarantees of the owners and related parties, the primary source of repayment of the loans is the on-going cash flow from operations of the customer’s business. Inherent lending risk is centrally monitored on a continuous basis from underwriting throughout the life of the loan for compliance with commercial lending policies.

At June 30, 2014, commercial loans attributed to the Texas market totaled $2.8 billion or 34% of the commercial loan portfolio segment and commercial loans attributed to the Oklahoma market totaled $2.0 billion or 24% of the commercial loan portfolio segment.

The commercial loan portfolio segment is further divided into loan classes. The energy loan class totaled $2.4 billion or 18% of total loans at June 30, 2014, including $2.1 billion of outstanding loans to energy producers. Approximately 59% of committed production loans are secured by properties primarily producing oil and 41% are secured by properties producing natural gas. The services loan class totaled $2.4 billion at June 30, 2014. Approximately $1.2 billion of loans in the services category consist of loans with individual balances of less than $10 million. Businesses included in the services class include gaming, educational, public finance, insurance and community foundations.

Commercial Real Estate

Commercial real estate loans are for the construction of buildings or other improvements to real estate and property held by borrowers for investment purposes primarily within our geographical footprint. We require collateral values in excess of the loan amounts, demonstrated cash flows in excess of expected debt service requirements, equity investment in the project and a portion of the project already sold, leased or permanent financing already secured. The expected cash flows from all significant new or renewed income producing property commitments are stress tested to reflect the risks in varying interest rates, vacancy rates and rental rates. As with commercial loans, inherent lending risks are centrally monitored on a continuous basis from underwriting throughout the life of the loan for compliance with applicable lending policies.

At June 30, 2014, 33% of commercial real estate loans are secured by properties primarily located in the Dallas and Houston areas of Texas. An additional 17% of commercial real estate loans are secured by properties located primarily in the Tulsa and Oklahoma City metropolitan areas of Oklahoma.

Residential Mortgage and Consumer

Residential mortgage loans provide funds for our customers to purchase or refinance their primary residence or to borrow against the equity in their home. Residential mortgage loans are secured by a first or second mortgage on the customer’s primary residence. Consumer loans include direct loans secured by and for the purchase of automobiles, recreational and marine equipment as well as other unsecured loans. Consumer loans also include indirect automobile loans made through primary dealers. Residential mortgage and consumer loans are made in accordance with underwriting policies we believe to be conservative and are fully documented. Credit scoring is assessed based on significant credit characteristics including credit history, residential and employment stability. Residential mortgage loans retained in the Company’s portfolio are primarily composed of various mortgage programs to support customer relationships including jumbo mortgage loans, non-builder construction loans and special loan programs for high net worth individuals and certain professionals. Jumbo loans may be fixed or variable rate and are fully amortizing. Jumbo loans generally conform to government sponsored entity standards, except that the loan size exceeds maximums required under these standards. These loans generally require a minimum FICO score of 720 and a maximum debt-to-income ratio (“DTI”) of 38%. Loan-to-value (“LTV”) ratios are tiered from 60% to 100%, depending on the market. Special mortgage programs include fixed and variable fully amortizing loans tailored to the needs of certain healthcare professionals. Variable rate loans are fully indexed at origination and may have fixed rates for three to ten years, then adjust annually thereafter.

At June 30, 2014, residential mortgage loans included $188 million of loans guaranteed by U.S. government agencies previously sold into GNMA mortgage pools. These loans either have been repurchased or are eligible to be repurchased by the Company when certain defined delinquency criteria are met. Although payments on these loans generally are past due more than 90 days, interest continues to accrue based on the government guarantee.

Home equity loans totaled $799 million at June 30, 2014. Approximately, 69% of the home equity loan portfolio is comprised of first lien loans and 31% of the home equity portfolio is comprised of junior lien loans. Junior lien loans are distributed 73% to amortizing term loans and 27% to revolving lines of credit. Home equity loans generally require a minimum FICO score of 700 and a maximum DTI of 40%. The maximum loan amount available for our home equity loan products is generally $400 thousand. Revolving loans have a 5 year revolving period followed by a 15 year term of amortizing repayments. Interest-only home equity loans may not be extended for any additional revolving time. All other home equity loans may be extended at management's discretion for an additional 5 year revolving term, subject to an update of certain credit information.

Credit Commitments

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of conditions established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. At June 30, 2014, outstanding commitments totaled $7.5 billion. Because some commitments are expected to expire before being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. BOK Financial uses the same credit policies in making commitments as it does loans.

The amount of collateral obtained, if deemed necessary, is based upon management’s credit evaluation of the borrower.

Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Because the credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loan commitments, BOK Financial uses the same credit policies in evaluating the creditworthiness of the customer. Additionally, BOK Financial uses the same evaluation process in obtaining collateral on standby letters of credit as it does for loan commitments. The term of these standby letters of credit is defined in each commitment and typically corresponds with the underlying loan commitment. At June 30, 2014, outstanding standby letters of credit totaled $469 million. Commercial letters of credit are used to facilitate customer trade transactions with the drafts being drawn when the underlying transaction is consummated. At June 30, 2014, outstanding commercial letters of credit totaled $11 million.

Allowances for Credit Losses

BOK Financial maintains an allowance for loan losses and an accrual for off-balance sheet credit risk. The accrual for off-balance sheet credit risk is maintained at a level that is appropriate to cover estimated losses associated with credit instruments that are not currently recognized as assets such as loan commitments, standby letters of credit or guarantees. As discussed in greater detail in Note 6, the Company also has separate accruals for off-balance sheet credit risk related to residential mortgage loans previously sold with full or partial recourse and for residential mortgage loans sold to government sponsored agencies under standard representations and warranties.

The appropriateness of the allowance for loan losses and accrual for off-balance sheet credit losses (collectively "allowance for credit losses") is assessed by management based on an on-going quarterly evaluation of the probable estimated losses inherent in the portfolio, including probable losses on both outstanding loans and unused commitments.

The allowance for loan losses consists of specific allowances attributed to impaired loans that have not yet been charged down to amounts we expect to recover, general allowances for unimpaired loans based on estimated loss rates by loan class and nonspecific allowances based on general economic conditions, risk concentration and related factors. There have been no material changes in the approach or techniques utilized in developing the allowance for loan losses and the accrual for off-balance sheet credit losses for the three and six months ended June 30, 2014.

Loans are considered to be impaired when it becomes probable that BOK Financial will be unable to collect all amounts due according to the contractual terms of the loan agreements. Internally risk graded loans are evaluated individually for impairment. Substantially all commercial and commercial real estate loans and certain residential mortgage and consumer loans are risk graded based on evaluation of the borrowers' ability to repay. Certain commercial loans and most residential mortgage and consumer loans are small balance, homogeneous pools of loans that are not risk graded. Non-risk graded loans are identified as impaired based on performance status. Generally, non-risk graded loans 90 days or more past due or modified in a TDR or in bankruptcy are considered to be impaired.

Specific allowances for impaired loans are measured by an evaluation of estimated future cash flows discounted at the loans’ initial effective interest rate or the fair value of collateral for certain collateral dependent loans. Collateral value of real property is generally based on third party appraisals that conform to Uniform Standards of Professional Appraisal Practice, less estimated selling costs. Appraised values are on an "as-is" basis and are generally not adjusted by the Company. Updated appraisals are obtained at least annually or more frequently if market conditions indicate collateral values have declined. Collateral value of mineral rights is generally determined by our internal staff of engineers based on projected cash flows under current market conditions. Collateral values and available cash resources that support impaired loans are evaluated quarterly. Historical statistics may be used as a practical way to estimate impairment in limited situations, such as when a collateral dependent loan is identified as impaired at the end of a reporting period, until an updated appraisal of collateral value is received or a full assessment of future cash flows is completed. Estimates of future cash flows and collateral values require significant judgments and may be volatile.

General allowances for unimpaired loans are based on estimated loss rates by loan class. The gross loss rate for each loan class is determined by the greater of the current gross loss rate based on the most recent twelve months or a ten-year gross loss rate. Recoveries are not directly considered in the estimation of loss rates. Recoveries generally do not follow predictable patterns and are not received until well after the charge-off date as a result of protracted legal actions. For risk graded loans, gross loss rates are adjusted for changes in risk grading. For each loan class, the current weighted average risk grade is compared to the long-term average risk grade. This comparison determines whether credit risk in each loan class is increasing or decreasing. Loss rates are adjusted upward or downward in proportion to changes in average risk grading. General allowances for unimpaired loans also consider inherent risks identified for each loan class. Inherent risks consider loss rates that most appropriately represent the current credit cycle and other factors attributable to specific loan classes which have not yet been represented in the gross loss rates or risk grading. These factors include changes in commodity prices or engineering imprecision, which may affect the value of reserves that secure our energy loan portfolio, construction risk that may affect commercial real estate loans, changes in regulations and public policy that may disproportionately impact health care loans and changes in loan products.

Nonspecific allowances are maintained for risks beyond factors specific to a particular loan or loan class. These factors include trends in the economy of our primary lending areas, concentrations in large balance loans and other relevant factors.

An accrual for off-balance sheet credit losses is included in Other liabilities in the Consolidated Balance Sheets. The appropriateness of this accrual is determined in the same manner as the allowance for loan losses.

A provision for credit losses is charged against or credited to earnings in amounts necessary to maintain an appropriate allowance for credit losses. Recoveries of loans previously charged off are added to the allowance when received.

The activity in the allowance for loan losses and the allowance for off-balance sheet credit losses related to loan commitments and standby letters of credit for the three months ended June 30, 2014 is summarized as follows (in thousands):



	Commercial			Commercial Real Estate			Residential Mortgage			Consumer			Nonspecific Allowance			Total
Allowance for loan losses:
Beginning balance	$	85,246		$	41,589		$	28,307		$	6,211		$	26,965		$	188,318
Provision for loan losses	1,393			(2,958		)	467			1,484			(16		)	370
Loans charged off	(29		)	—			(1,842		)	(1,651		)	—			(3,522		)
Recoveries	1,196			2,621			722			985			—			5,524
Ending balance	$	87,806		$	41,252		$	27,654		$	7,029		$	26,949		$	190,690
Allowance for off-balance sheet credit losses:
Beginning balance	$	576		$	1,040		$	62		$	—		$	—		$	1,678
Provision for off-balance sheet credit losses	(231		)	(138		)	(19		)	18			—			(370		)
Ending balance	$	345		$	902		$	43		$	18		$	—		$	1,308

Total provision for credit losses	$	1,162		$	(3,096	)	$	448		$	1,502		$	(16	)	$	—

The activity in the allowance for loan losses and the allowance for off-balance sheet credit losses related to loan commitments and standby letters of credit for the six months ended June 30, 2014 is summarized as follows (in thousands):



	Commercial			Commercial Real Estate			Residential Mortgage			Consumer			Nonspecific Allowance			Total
Allowance for loan losses:
Beginning balance	$	79,180		$	41,573		$	29,465		$	6,965		$	28,213		$	185,396
Provision for loan losses	5,618			(4,549		)	(49		)	1,024			(1,264		)	780
Loans charged off	(173		)	(220		)	(2,838		)	(3,139		)	—			(6,370		)
Recoveries	3,181			4,448			1,076			2,179			—			10,884
Ending balance	$	87,806		$	41,252		$	27,654		$	7,029		$	26,949		$	190,690
Allowance for off-balance sheet credit losses:
Beginning balance	$	119		$	1,876		$	90		$	3		$	—		$	2,088
Provision for off-balance sheet credit losses	226			(974		)	(47		)	15			—			(780		)
Ending balance	$	345		$	902		$	43		$	18		$	—		$	1,308

Total provision for credit losses	$	5,844		$	(5,523	)	$	(96	)	$	1,039		$	(1,264	)	$	—



	Commercial			Commercial Real Estate			Residential Mortgage			Consumer			Nonspecific Allowance			Total
Allowance for loan losses:
Beginning balance	$	66,419		$	48,528		$	40,222		$	7,984		$	42,812		$	205,965
Provision for loan losses	223			(1,118		)	597			162			(363		)	(499		)
Loans charged off	(4,538		)	(450		)	(2,057		)	(1,507		)	—			(8,552		)
Recoveries	1,940			2,727			444			1,099			—			6,210
Ending balance	$	64,044		$	49,687		$	39,206		$	7,738		$	42,449		$	203,124
Allowance for off-balance sheet credit losses:
Beginning balance	$	405		$	618		$	72		$	10		$	—		$	1,105
Provision for off-balance sheet credit losses	(3		)	560			(66		)	8			—			499
Ending balance	$	402		$	1,178		$	6		$	18		$	—		$	1,604

Total provision for credit losses	$	220		$	(558	)	$	531		$	170		$	(363	)	$	—



	Commercial			Commercial Real Estate			Residential Mortgage			Consumer			Nonspecific Allowance			Total
Allowance for loan losses:
Beginning balance	$	65,280		$	54,884		$	41,703		$	9,453		$	44,187		$	215,507
Provision for loan losses	(1,733		)	(3,798		)	323			(743		)	(1,738		)	(7,689		)
Loans charged off	(4,836		)	(5,250		)	(3,836		)	(3,539		)	—			(17,461		)
Recoveries	5,333			3,851			1,016			2,567			—			12,767
Ending balance	$	64,044		$	49,687		$	39,206		$	7,738		$	42,449		$	203,124
Allowance for off-balance sheet credit losses:
Beginning balance	$	475		$	1,353		$	78		$	9		$	—		$	1,915
Provision for off-balance sheet credit losses	(73		)	(175		)	(72		)	9			—			(311		)
Ending balance	$	402		$	1,178		$	6		$	18		$	—		$	1,604

Total provision for credit losses	$	(1,806	)	$	(3,973	)	$	251		$	(734	)	$	(1,738	)	$	(8,000	)

The allowance for loan losses and recorded investment of the related loans by portfolio segment for each impairment measurement method at June 30, 2014 is as follows (in thousands):



	Collectively Measured for Impairment				Individually Measured for Impairment				Total
	Recorded Investment		Related Allowance		Recorded Investment		Related Allowance		Recorded Investment		Related Allowance
Commercial	$	8,350,558	$	84,639	$	17,103	$	3,167	$	8,367,661	$	87,806
Commercial real estate	2,620,506		41,069		34,472		183		2,654,978		41,252
Residential mortgage	1,963,875		27,571		44,340		83		2,008,215		27,654
Consumer	395,239		7,029		765		—		396,004		7,029
Total	13,330,178		160,308		96,680		3,433		13,426,858		163,741

Nonspecific allowance	—		—		—		—		—		26,949

Total	$	13,330,178	$	160,308	$	96,680	$	3,433	$	13,426,858	$	190,690

The allowance for loan losses and recorded investment of the related loans by portfolio segment for each impairment measurement method at December 31, 2013 is as follows (in thousands):



	Collectively Measured for Impairment				Individually Measured for Impairment				Total
	Recorded Investment		Related Allowance		Recorded Investment		Related Allowance		Recorded Investment		Related Allowance
Commercial	$	7,926,461	$	78,607	$	16,760	$	573	$	7,943,221	$	79,180
Commercial real estate	2,374,503		41,440		40,850		133		2,415,353		41,573
Residential mortgage	2,010,483		29,217		41,543		248		2,052,026		29,465
Consumer	380,445		6,965		1,219		—		381,664		6,965
Total	12,691,892		156,229		100,372		954		12,792,264		157,183

Nonspecific allowance	—		—		—		—		—		28,213

Total	$	12,691,892	$	156,229	$	100,372	$	954	$	12,792,264	$	185,396

The allowance for loan losses and recorded investment of the related loans by portfolio segment for each impairment measurement method at June 30, 2013 is as follows (in thousands):



	Collectively Measured for Impairment				Individually Measured for Impairment				Total
	Recorded Investment		Related Allowance		Recorded Investment		Related Allowance		Recorded Investment		Related Allowance
Commercial	$	7,687,251	$	63,492	$	20,869	$	552	$	7,708,120	$	64,044
Commercial real estate	2,258,403		48,493		58,693		1,194		2,317,096		49,687
Residential mortgage	1,999,334		39,028		40,451		178		2,039,785		39,206
Consumer	373,744		7,618		2,037		120		375,781		7,738
Total	12,318,732		158,631		122,050		2,044		12,440,782		160,675

Nonspecific allowance	—		—		—		—		—		42,449

Total	$	12,318,732	$	158,631	$	122,050	$	2,044	$	12,440,782	$	203,124

Credit Quality Indicators

The Company utilizes loan class and risk grading as primary credit quality indicators. Substantially all commercial and commercial real estate loans and certain residential mortgage and consumer loans are risk graded based on a quarterly evaluation of the borrowers’ ability to repay the loans. Certain commercial loans and most residential mortgage and consumer loans are small, homogeneous pools that are not risk graded.

The allowance for loan losses and recorded investment of the related loans by portfolio segment for risk graded and non-risk graded loans at June 30, 2014 is as follows (in thousands):



	Internally Risk Graded				Non-Graded				Total
	Recorded Investment		Related Allowance		Recorded Investment		Related Allowance		Recorded Investment		Related Allowance
Commercial	$	8,341,114	$	86,893	$	26,547	$	913	$	8,367,661	$	87,806
Commercial real estate	2,654,978		41,252		—		—		2,654,978		41,252
Residential mortgage	203,097		4,169		1,805,118		23,485		2,008,215		27,654
Consumer	295,762		2,980		100,242		4,049		396,004		7,029
Total	11,494,951		135,294		1,931,907		28,447		13,426,858		163,741

Nonspecific allowance	—		—		—		—		—		26,949

Total	$	11,494,951	$	135,294	$	1,931,907	$	28,447	$	13,426,858	$	190,690

The allowance for loan losses and recorded investment of the related loans by portfolio segment for risk graded and non-risk graded loans at December 31, 2013 is as follows (in thousands):



	Internally Risk Graded				Non-Graded				Total
	Recorded Investment		Related Allowance		Recorded Investment		Related Allowance		Recorded Investment		Related Allowance
Commercial	$	7,888,219	$	78,250	$	55,002	$	930	$	7,943,221	$	79,180
Commercial real estate	2,415,353		41,573		—		—		2,415,353		41,573
Residential mortgage	220,635		5,481		1,831,391		23,984		2,052,026		29,465
Consumer	265,533		2,657		116,131		4,308		381,664		6,965
Total	10,789,740		127,961		2,002,524		29,222		12,792,264		157,183

Nonspecific allowance	—		—		—		—		—		28,213

Total	$	10,789,740	$	127,961	$	2,002,524	$	29,222	$	12,792,264	$	185,396

The allowance for loan losses and recorded investment of the related loans by portfolio segment for risk graded and non-risk graded loans at June 30, 2013 is as follows (in thousands):



	Internally Risk Graded				Non-Graded				Total
	Recorded Investment		Related Allowance		Recorded Investment		Related Allowance		Recorded Investment		Related Allowance
Commercial	$	7,689,954	$	62,830	$	18,166	$	1,214	$	7,708,120	$	64,044
Commercial real estate	2,317,096		49,687		—		—		2,317,096		49,687
Residential mortgage	230,359		3,753		1,809,426		35,453		2,039,785		39,206
Consumer	243,384		2,316		132,397		5,422		375,781		7,738
Total	10,480,793		118,586		1,959,989		42,089		12,440,782		160,675

Nonspecific allowance	—		—		—		—		—		42,449

Total	$	10,480,793	$	118,586	$	1,959,989	$	42,089	$	12,440,782	$	203,124

Loans are considered to be performing if they are in compliance with the original terms of the agreement, which is consistent with the regulatory guideline of “pass.” Performing also includes loans considered to be “other loans especially mentioned” by regulatory guidelines. Other loans especially mentioned are in compliance with the original terms of the agreement but may have a weakness that deserves management’s close attention. Performing loans also include past due residential mortgages that are guaranteed by agencies of the U.S. government.

The risk grading process identified certain criticized loans as potential problem loans. These loans have a well-defined weakness (e.g. inadequate debt service coverage or liquidity or marginal capitalization; repayment may depend on collateral or other risk mitigation) that may jeopardize liquidation of the debt and represent a greater risk due to deterioration in the financial condition of the borrower. This is consistent with the regulatory guideline for “substandard.” Because the borrowers are still performing in accordance with the original terms of the loan agreements, these loans were not placed in nonaccruing status. Known information does, however, cause concern as to the borrowers’ continued compliance with current repayment terms. Nonaccruing loans represent loans for which full collection of principal and interest is uncertain. This is substantially the same criteria used to determine whether a loan is impaired and includes certain loans considered “substandard” and all loans considered “doubtful” by regulatory guidelines.

The following table summarizes the Company’s loan portfolio at June 30, 2014 by the risk grade categories (in thousands):



	Internally Risk Graded						Non-Graded
	Performing		Potential Problem		Nonaccrual		Performing		Nonaccrual		Total
Commercial:
Energy	$	2,395,942	$	22,227	$	1,619	$	—	$	—	$	2,419,788
Services	2,352,450		20,946		3,669		—		—		2,377,065
Wholesale/retail	1,307,426		4,840		5,885		—		—		1,318,151
Manufacturing	442,493		6,866		3,507		—		—		452,866
Healthcare	1,385,395		7,339		1,422		—		—		1,394,156
Other commercial and industrial	374,556		3,593		939		26,485		62		405,635
Total commercial	8,258,262		65,811		17,041		26,485		62		8,367,661

Commercial real estate:
Residential construction and land development	152,228		17,405		15,146		—		—		184,779
Retail	636,332		1,579		4,199		—		—		642,110
Office	389,487		1,139		3,591		—		—		394,217
Multifamily	663,349		14,054		—		—		—		677,403
Industrial	341,449		—		631		—		—		342,080
Other commercial real estate	400,709		2,775		10,905		—		—		414,389
Total commercial real estate	2,583,554		36,952		34,472		—		—		2,654,978

Residential mortgage:
Permanent mortgage	197,005		2,187		3,905		788,784		29,047		1,020,928
Permanent mortgages guaranteed by U.S. government agencies	—		—		—		186,140		1,947		188,087
Home equity	—		—		—		789,759		9,441		799,200
Total residential mortgage	197,005		2,187		3,905		1,764,683		40,435		2,008,215

Consumer	295,552		25		185		99,662		580		396,004

Total	$	11,334,373	$	104,975	$	55,603	$	1,890,830	$	41,077	$	13,426,858

The following table summarizes the Company’s loan portfolio at December 31, 2013 by the risk grade categories (in thousands):



	Internally Risk Graded						Non-Graded
	Performing		Potential Problem		Nonaccrual		Performing		Nonaccrual		Total
Commercial:
Energy	$	2,347,519	$	2,381	$	1,860	$	—	$	—	$	2,351,760
Services	2,265,984		11,304		4,922		—		—		2,282,210
Wholesale/retail	1,191,791		2,604		6,969		—		—		1,201,364
Manufacturing	381,794		9,365		592		—		—		391,751
Healthcare	1,272,626		34		1,586		—		—		1,274,246
Other commercial and industrial	381,394		4,736		758		54,929		73		441,890
Total commercial	7,841,108		30,424		16,687		54,929		73		7,943,221

Commercial real estate:
Residential construction and land development	173,488		15,393		17,377		—		—		206,258
Retail	579,506		1,684		4,857		—		—		586,047
Office	403,951		1,157		6,391		—		—		411,499
Multifamily	562,800		13,695		7		—		—		576,502
Industrial	243,625		—		252		—		—		243,877
Other commercial real estate	371,628		7,576		11,966		—		—		391,170
Total commercial real estate	2,334,998		39,505		40,850		—		—		2,415,353

Residential mortgage:
Permanent mortgage	210,142		3,283		7,210		815,040		27,069		1,062,744
Permanent mortgages guaranteed by U.S. government agencies	—		—		—		180,821		777		181,598
Home equity	—		—		—		800,420		7,264		807,684
Total residential mortgage	210,142		3,283		7,210		1,796,281		35,110		2,052,026

Consumer	264,536		795		202		115,114		1,017		381,664

Total	$	10,650,784	$	74,007	$	64,949	$	1,966,324	$	36,200	$	12,792,264

The following table summarizes the Company’s loan portfolio at June 30, 2013 by the risk grade categories (in thousands):



	Internally Risk Graded						Non-Graded
	Performing		Potential Problem		Nonaccrual		Performing		Nonaccrual		Total
Commercial:
Energy	$	2,378,187	$	4,282	$	2,277	$	—	$	—	$	2,384,746
Services	2,170,695		26,110		7,448		—		—		2,204,253
Wholesale/retail	1,167,215		1,628		6,700		—		—		1,175,543
Manufacturing	381,729		3,528		876		—		—		386,133
Healthcare	1,116,089		51		2,670		—		—		1,118,810
Other commercial and industrial	410,237		9,395		837		18,105		61		438,635
Total commercial	7,624,152		44,994		20,808		18,105		61		7,708,120

Commercial real estate:
Residential construction and land development	184,216		20,303		21,135		—		—		225,654
Retail	540,872		4,134		8,406		—		—		553,412
Office	450,790		940		7,828		—		—		459,558
Multifamily	491,864		2,141		6,447		—		—		500,452
Industrial	253,732		258		—		—		—		253,990
Other commercial real estate	296,864		12,289		14,877		—		—		324,030
Total commercial real estate	2,218,338		40,065		58,693		—		—		2,317,096

Residential mortgage:
Permanent mortgage	219,222		4,789		6,348		839,113		26,399		1,095,871
Permanent mortgages guaranteed by U.S. government agencies	—		—		—		156,804		83		156,887
Home equity	—		—		—		779,323		7,704		787,027
Total residential mortgage	219,222		4,789		6,348		1,775,240		34,186		2,039,785

Consumer	242,059		930		395		130,755		1,642		375,781

Total	$	10,303,771	$	90,778	$	86,244	$	1,924,100	$	35,889	$	12,440,782

Impaired Loans

Loans are considered to be impaired when it is probable that the Company will not be able to collect all amounts due according to the contractual terms of the loan agreement. This includes all nonaccruing loans, all loans modified in a TDR and all loans repurchased from GNMA pools.

A summary of impaired loans follows (in thousands):



	As of										For the				For the
	June 30, 2014										Three Months Ended				Six Months Ended
			Recorded Investment								June 30, 2014				June 30, 2014
	Unpaid Principal Balance		Total		With No Allowance		With Allowance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial:
Energy	$	1,646	$	1,619	$	1,619	$	—	$	—	$	1,689	$	—	$	1,739	$	—
Services	6,530		3,669		2,917		752		158		4,125		—		4,295		—
Wholesale/retail	10,966		5,885		5,853		32		9		6,369		—		6,427		—
Manufacturing	3,764		3,507		507		3,000		3,000		3,536		—		2,050		—
Healthcare	2,438		1,422		1,422		—		—		1,433		—		1,504		—
Other commercial and industrial	8,668		1,001		1,001		—		—		923		—		916		—
Total commercial	34,012		17,103		13,319		3,784		3,167		18,075		—		16,931		—

Commercial real estate:
Residential construction and land development	19,441		15,146		14,504		642		162		15,846		—		16,261		—
Retail	5,679		4,199		4,199		—		—		4,413		—		4,529		—
Office	6,039		3,591		3,588		3		3		4,946		—		4,991		—
Multifamily	—		—		—		—		—		—		—		3		—
Industrial	790		631		631		—		—		758		—		441		—
Other real estate loans	17,617		10,905		10,725		180		18		10,925		—		11,436		—
Total commercial real estate	49,566		34,472		33,647		825		183		36,888		—		37,661		—

Residential mortgage:
Permanent mortgage	41,646		32,952		32,817		135		83		34,647		293		33,615		638
Permanent mortgage guaranteed by U.S. government agencies¹	194,178		188,087		188,087		—		—		187,505		2,054		187,247		4,190
Home equity	9,482		9,441		9,441		—		—		8,453		—		8,353		—
Total residential mortgage	245,306		230,480		230,345		135		83		230,605		2,347		229,215		4,828

Consumer	781		765		765		—		—		870		—		992		—

Total	$	329,665	$	282,820	$	278,076	$	4,744	$	3,433	$	286,438	$	2,347	$	284,799	$	4,828


¹	All permanent mortgage loans guaranteed by U.S. government agencies are considered impaired as we do not expect full collection of contractual principal and interest. At June 30, 2014, $1.9 million of these loans were nonaccruing and $186 million were accruing based on the guarantee by U.S. government agencies.

Generally, no interest income is recognized on impaired loans until all principal balances, including amounts charged-off, are recovered.

A summary of impaired loans at December 31, 2013 follows (in thousands):



			Recorded Investment
	Unpaid Principal Balance		Total		With No Allowance		With Allowance		Related Allowance
Commercial:
Energy	$	1,860	$	1,860	$	1,860	$	—	$	—
Services	6,486		4,922		3,791		1,131		516
Wholesale/retail	11,009		6,969		6,937		32		9
Manufacturing	746		592		592		—		—
Healthcare	2,193		1,586		1,538		48		48
Other commercial and industrial	8,532		831		831		—		—
Total commercial	30,826		16,760		15,549		1,211		573

Commercial real estate:
Residential construction and land development	20,804		17,377		17,050		327		107
Retail	6,133		4,857		4,857		—		—
Office	7,848		6,391		6,383		8		8
Multifamily	7		7		7		—		—
Industrial	252		252		252		—		—
Other real estate loans	14,593		11,966		11,779		187		18
Total commercial real estate	49,637		40,850		40,328		522		133

Residential mortgage:
Permanent mortgage	41,870		34,279		33,869		410		248
Permanent mortgage guaranteed by U.S. government agencies¹	188,436		181,598		181,598		—		—
Home equity	7,537		7,264		7,264		—		—
Total residential mortgage	237,843		223,141		222,731		410		248

Total consumer	1,228		1,219		1,219		—		—

Total	$	319,534	$	281,970	$	279,827	$	2,143	$	954


¹	All permanent mortgage loans guaranteed by U.S. government agencies are considered impaired as we do not expect full collection of contractual principal and interest. At December 31, 2013, $777 thousand of these loans were nonaccruing and $181 million were accruing based on the guarantee by U.S. government agencies.

A summary of impaired loans at June 30, 2013 follows (in thousands):



	As of										For the				For the
	As of June 30, 2013										Three Months Ended				Six Months Ended
			Recorded Investment								June 30, 2013				June 30, 2013
	Unpaid Principal Balance		Total		With No Allowance		With Allowance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial:
Energy	$	2,277	$	2,277	$	2,277	$	—	$	—	$	2,327	$	—	$	2,369	$	—
Services	9,631		7,448		6,283		1,165		493		8,461		—		9,769		—
Wholesale/retail	10,916		6,700		6,656		44		11		4,470		—		4,889		—
Manufacturing	1,168		876		876		—		—		1,362		—		1,442		—
Healthcare	3,357		2,670		2,622		48		48		2,816		—		2,918		—
Other commercial and industrial	8,398		898		898		—		—		930		—		1,283		—
Total commercial	35,747		20,869		19,612		1,257		552		20,366		—		22,670		—

Commercial real estate:
Residential construction and land development	24,752		21,135		20,841		294		102		22,299		—		23,633		—
Retail	9,827		8,406		8,406		—		—		8,664		—		8,262		—
Office	9,245		7,828		7,820		8		8		10,340		—		7,329		—
Multifamily	6,447		6,447		4,415		2,032		196		5,474		—		4,577		—
Industrial	—		—		—		—		—		1,099		—		1,984		—
Other real estate loans	17,196		14,877		13,113		1,764		888		14,060		—		13,876		—
Total commercial real estate	67,467		58,693		54,595		4,098		1,194		61,936		—		59,661		—

Residential mortgage:
Permanent mortgage	42,983		32,747		32,495		252		178		35,450		285		36,304		603
Permanent mortgage guaranteed by U.S. government agencies¹	165,431		156,887		156,887		—		—		158,038		1,628		162,256		3,408
Home equity	7,704		7,704		7,704		—		—		7,382		—		6,980		—
Total residential mortgage	216,118		197,338		197,086		252		178		200,870		1,913		205,540		4,011

Total consumer	2,103		2,037		1,917		120		120		2,105		—		2,373		—

Total	$	321,435	$	278,937	$	273,210	$	5,727	$	2,044	$	285,277	$	1,913	$	290,244	$	4,011


¹	All permanent mortgage loans guaranteed by U.S. government agencies are considered impaired as we do not expect full collection of contractual principal and interest. At June 30, 2013, $83 thousand of these loans were nonaccruing and $157 million were accruing based on the guarantee by U.S. government agencies.

Troubled Debt Restructurings

A summary of troubled debt restructurings ("TDRs") by accruing status as of June 30, 2014 is as follows (in thousands):



	As of June 30, 2014								Amounts Charged Off During
	Recorded Investment		Performing in Accordance With Modified Terms		Not Performing in Accordance With Modified Terms		Specific Allowance		Three Months Ended June 30, 2014		Six Months Ended June 30, 2014
Nonaccruing TDRs:

Commercial:
Energy	$	—	$	—	$	—	$	—	$	—	$	—
Services	1,762		742		1,020		148		—		—
Wholesale/retail	3,719		3,598		121		9		—		—
Manufacturing	3,369		369		3,000		3,000		—		—
Healthcare	—		—		—		—		—		—
Other commercial and industrial	726		54		672		—		—		—
Total commercial	9,576		4,763		4,813		3,157		—		—

Commercial real estate:
Residential construction and land development	9,482		1,622		7,860		162		—		—
Retail	3,727		2,535		1,192		—		—		—
Office	2,378		1,416		962		—		—		—
Multifamily	—		—		—		—		—		—
Industrial	—		—		—		—		—		—
Other real estate loans	3,151		3,151		—		—		—		—
Total commercial real estate	18,738		8,724		10,014		162		—		—

Residential mortgage:
Permanent mortgage	17,182		11,605		5,577		83		107		108
Permanent mortgage guaranteed by U.S. government agencies	855		180		675		—		—		—
Home equity	5,076		3,923		1,153		—		52		65
Total residential mortgage	23,113		15,708		7,405		83		159		173

Consumer	610		440		170		—		1		1

Total nonaccruing TDRs	$	52,037	$	29,635	$	22,402	$	3,402	$	160	$	174

Accruing TDRs:
Permanent mortgages guaranteed by U.S. government agencies	57,818		17,269		40,549		—		—		—

Total TDRs	$	109,855	$	46,904	$	62,951	$	3,402	$	160	$	174

A summary of troubled debt restructurings by accruing status as of December 31, 2013 is as follows (in thousands):



	As of
	December 31, 2013
	Recorded Investment		Performing in Accordance With Modified Terms		Not Performing in Accordance With Modified Terms		Specific Allowance
Nonaccruing TDRs:

Commercial:
Energy	$	—	$	—	$	—	$	—
Services	2,235		852		1,383		237
Wholesale/retail	235		89		146		9
Manufacturing	391		—		391		—
Healthcare	—		—		—		—
Other commercial and industrial	771		173		598		—
Total commercial	3,632		1,114		2,518		246

Commercial real estate:
Residential construction and land development	10,148		1,444		8,704		107
Retail	4,359		3,141		1,218		—
Office	5,059		3,872		1,187		—
Multifamily	—		—		—		—
Industrial	—		—		—		—
Other real estate loans	5,011		2,885		2,126		—
Total commercial real estate	24,577		11,342		13,235		107

Residential mortgage:
Permanent mortgage	18,697		12,214		6,483		88
Home equity	4,045		3,531		514		—
Total residential mortgage	22,742		15,745		6,997		88

Consumer	1,008		758		250		—

Total nonaccuring TDRs	$	51,959	$	28,959	$	23,000	$	441

Accruing TDRs:
Permanent mortgages guaranteed by U.S. government agencies	54,322		13,384		40,938		—
Total TDRs	$	106,281	$	42,343	$	63,938	$	441

A summary of troubled debt restructurings by accruing status as of June 30, 2013 is as follows (in thousands):



	As of June 30, 2013								Amount Charged Off During
	Recorded Investment		Performing in Accordance With Modified Terms		Not Performing in Accordance With Modified Terms		Specific Allowance		Three Months Ended June 30, 2013		Six Months Ended June 30, 2013
Nonaccruing TDRs:

Commercial:
Energy	$	—	$	—	$	—	$	—	$	—	$	—
Services	3,065		710		2,355		228		—		—
Wholesale/retail	1,107		968		139		12		—		—
Manufacturing	—		—		—		—		—		—
Healthcare	—		—		—		—		—		—
Other commercial and industrial	821		189		632		—		—		—
Total commercial	4,993		1,867		3,126		240		—		—

Commercial real estate:
Residential construction and land development	11,734		1,934		9,800		23		54		54
Retail	5,681		1,604		4,077		—		—		627
Office	5,488		1,313		4,175		—		77		77
Multifamily	990		208		782		—		—		—
Industrial	—		—		—		—		—		—
Other real estate loans	8,746		3,739		5,007		—		—		—
Total commercial real estate	32,639		8,798		23,841		23		131		758

Residential mortgage:
Permanent mortgage	17,639		10,917		6,722		54		8		348
Home equity	3,504		3,264		240		—		69		69
Total residential mortgage	21,143		14,181		6,962		54		77		417

Consumer	1,542		1,324		218		78		—		1

Total nonaccruing TDRs	$	60,317	$	26,170	$	34,147	$	395	$	208	$	1,176

Accruing TDRs:
Permanent mortgages guaranteed by U.S. government agencies	48,733		12,598		36,135		—		—		—
Total TDRs	$	109,050	$	38,768	$	70,282	$	395	$	208	$	1,176

Troubled debt restructurings generally consist of interest rate concessions, payment stream concessions or a combination of concessions to distressed borrowers. The following tables detail the recorded balance of loans at June 30, 2014 by class that were restructured during the three and six months ended June 30, 2014 by primary type of concession (in thousands):



	Three Months Ended June 30, 2014
	Accruing						Nonaccrual								Total
	Payment Stream		Combination & Other		Total		Interest Rate		Payment Stream		Combination & Other		Total
Commercial:
Energy	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Services	—		—		—		—		—		—		—		—
Wholesale/retail	—		—		—		—		3,542		—		3,542		3,542
Manufacturing	—		—		—		—		—		—		—		—
Healthcare	—		—		—		—		—		—		—		—
Other commercial and industrial	—		—		—		—		—		—		—		—
Total commercial	—		—		—		—		3,542		—		3,542		3,542

Commercial real estate:
Residential construction and land development	—		—		—		—		—		307		307		307
Retail	—		—		—		—		—		—		—		—
Office	—		—		—		—		—		—		—		—
Multifamily	—		—		—		—		—		—		—		—
Industrial	—		—		—		—		—		—		—		—
Other real estate loans	—		—		—		—		—		—		—		—
Total commercial real estate	—		—		—		—		—		307		307		307

Residential mortgage:
Permanent mortgage	—		—		—		—		218		1,821		2,039		2,039
Permanent mortgage guaranteed by U.S. government agencies	4,260		6,694		10,954		—		—		230		230		11,184
Home equity	—		—		—		—		—		1,276		1,276		1,276
Total residential mortgage	4,260		6,694		10,954		—		218		3,327		3,545		14,499

Consumer	—		—		—		—		—		33		33		33

Total	$	4,260	$	6,694	$	10,954	$	—	$	3,760	$	3,667	$	7,427	$	18,381



	Six Months Ended June 30, 2014
	Accruing						Nonaccrual								Total
	Payment Stream		Combination & Other		Total		Interest Rate		Payment Stream		Combination & Other		Total
Commercial:
Energy	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Services	—		—		—		—		—		—		—		—
Wholesale/retail	—		—		—		—		3,542		—		3,542		3,542
Manufacturing	—		—		—		—		3,000		—		3,000		3,000
Healthcare	—		—		—		—		—		—		—		—
Other commercial and industrial	—		—		—		—		—		26		26		26
Total commercial	—		—		—		—		6,542		26		6,568		6,568

Commercial real estate:
Residential construction and land development	—		—		—		—		422		307		729		729
Retail	—		—		—		—		—		—		—		—
Office	—		—		—		—		—		—		—		—
Multifamily	—		—		—		—		—		—		—		—
Industrial	—		—		—		—		—		—		—		—
Other real estate loans	—		—		—		—		—		—		—		—
Total commercial real estate	—		—		—		—		422		307		729		729

Residential mortgage:
Permanent mortgage	—		—		—		—		348		2,062		2,410		2,410
Permanent mortgage guaranteed by U.S. government agencies	5,773		10,300		16,073		—		—		411		411		16,484
Home equity	—		—		—		—		—		1,564		1,564		1,564
Total residential mortgage	5,773		10,300		16,073		—		348		4,037		4,385		20,458

Consumer	—		—		—		—		—		46		46		46

Total	$	5,773	$	10,300	$	16,073	$	—	$	7,312	$	4,416	$	11,728	$	27,801

Troubled debt restructurings generally consist of interest rate concessions, payment stream concessions or a combination of concessions to distressed borrowers. The following tables detail the recorded balance of loans by class that were restructured during the three and six months ended June 30, 2013 by primary type of concession (in thousands):



	Three Months Ended June 30, 2013
	Accruing						Nonaccrual								Total
	Payment Stream		Combination & Other		Total		Interest Rate		Payment Stream		Combination & Other		Total
Commercial:
Energy	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Services	—		—		—		—		1,140		—		1,140		1,140
Wholesale/retail	—		—		—		—		—		—		—		—
Manufacturing	—		—		—		—		—		—		—		—
Healthcare	—		—		—		—		—		—		—		—
Other commercial and industrial	—		—		—		—		—		—		—		—
Total commercial	—		—		—		—		1,140		—		1,140		1,140

Commercial real estate:
Residential construction and land development	—		—		—		—		—		—		—		—
Retail	—		—		—		—		612		—		612		612
Office	—		—		—		—		3,181		—		3,181		3,181
Multifamily	—		—		—		—		990		—		990		990
Industrial	—		—		—		—		—		—		—		—
Other real estate loans	—		—		—		—		3,931		—		3,931		3,931
Total commercial real estate	—		—		—		—		8,714		—		8,714		8,714

Residential mortgage:
Permanent mortgage	—		—		—		—		—		1,132		1,132		1,132
Permanent mortgage guaranteed by U.S. government agencies	3,087		5,809		8,896		—		—		—		—		8,896
Home equity	—		—		—		—		—		1,798		1,798		1,798
Total residential mortgage	3,087		5,809		8,896		—		—		2,930		2,930		11,826

Consumer	—		—		—		—		—		777		777		777

Total	$	3,087	$	5,809	$	8,896	$	—	$	9,854	$	3,707	$	13,561	$	22,457



	Six Months Ended June 30, 2013
	Accruing						Nonaccrual								Total
	Payment Stream		Combination & Other		Total		Interest Rate		Payment Stream		Combination & Other		Total
Commercial:
Energy	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Services	—		—		—		—		1,173		—		1,173		1,173
Wholesale/retail	—		—		—		—		—		—		—		—
Manufacturing	—		—		—		—		—		—		—		—
Healthcare	—		—		—		—		—		—		—		—
Other commercial and industrial	—		—		—		147		—		—		147		147
Total commercial	—		—		—		147		1,173		—		1,320		1,320

Commercial real estate:
Residential construction and land development	—		—		—		—		—		—		—		—
Retail	—		—		—		—		612		—		612		612
Office	—		—		—		—		3,181		—		3,181		3,181
Multifamily	—		—		—		—		990		—		990		990
Industrial	—		—		—		—		—		—		—		—
Other real estate loans	—		—		—		—		3,931		—		3,931		3,931
Total commercial real estate	—		—		—		—		8,714		—		8,714		8,714

Residential mortgage:
Permanent mortgage	—		—		—		—		27		1,377		1,404		1,404
Permanent mortgage guaranteed by U.S. government agencies	8,694		8,949		17,643		—		—		—		—		17,643
Home equity	—		—		—		—		—		2,108		2,108		2,108
Total residential mortgage	8,694		8,949		17,643		—		27		3,485		3,512		21,155

Consumer	—		—		—		87		—		823		910		910

Total	$	8,694	$	8,949	$	17,643	$	234	$	9,914	$	4,308	$	14,456	$	32,099

The following table summarizes, by loan class, the recorded investment at June 30, 2014 of loans modified as TDRs within the previous 12 months and for which there was a payment default during the three months ended June 30, 2014 (in thousands):



	Three Months Ended June 30, 2014						Six Months Ended June 30, 2014
	Accruing		Nonaccrual		Total		Accruing		Nonaccrual		Total
Commercial:
Energy	$	—	$	—	$	—	$	—	$	—	$	—
Services	—		1,020		1,020		—		1,020		1,020
Wholesale/retail	—		—		—		—		—		—
Manufacturing	—		3,000		3,000		—		3,369		3,369
Healthcare	—		—		—		—		—		—
Other commercial and industrial	—		—		—		—		—		—
Total commercial	—		4,020		4,020		—		4,389		4,389

Commercial real estate:
Residential construction and land development	—		422		422		—		422		422
Retail	—		459		459		—		459		459
Office	—		—		—		—		199		199
Multifamily	—		—		—		—		—		—
Industrial	—		—		—		—		—		—
Other real estate loans	—		—		—		—		—		—
Total commercial real estate	—		881		881		—		1,080		1,080

Residential mortgage:
Permanent mortgage	—		2,324		2,324		—		2,769		2,769
Permanent mortgage guaranteed by U.S. government agencies	20,492		383		20,875		20,912		383		21,295
Home equity	—		1,002		1,002		—		1,021		1,021
Total residential mortgage	20,492		3,709		24,201		20,912		4,173		25,085

Consumer	—		14		14		—		14		14

Total	$	20,492	$	8,624	$	29,116	$	20,912	$	9,656	$	30,568

A payment default is defined as being 30 days or more past due. The table above includes loans that experienced a payment default during the period, but may be performing in accordance with the modified terms as of the balance sheet date.

The following table summarizes, by loan class, the recorded investment at June 30, 2013 of loans modified as TDRs within the previous 12 months and for which there was a payment default during the three months ended June 30, 2013 (in thousands):



	Three Months Ended June 30, 2013						Six Months Ended June 30, 2013
	Accruing		Nonaccrual		Total		Accruing		Nonaccrual		Total
Commercial:
Energy	$	—	$	—	$	—	$	—	$	—	$	—
Services	—		2,007		2,007		—		2,007		2,007
Wholesale/retail	—		—		—		—		—		—
Manufacturing	—		—		—		—		—		—
Healthcare	—		—		—		—		—		—
Other commercial and industrial	—		—		—		—		33		33
Total commercial	—		2,007		2,007		—		2,040		2,040

Commercial real estate:
Residential construction and land development	—		6,889		6,889		—		6,889		6,889
Retail	—		612		612		—		612		612
Office	—		3,181		3,181		—		3,181		3,181
Multifamily	—		782		782		—		990		990
Industrial	—		—		—		—		—		—
Other real estate loans	—		3,398		3,398		—		3,931		3,931
Total commercial real estate	—		14,862		14,862		—		15,603		15,603

Residential mortgage:
Permanent mortgage	—		1,949		1,949		—		1,969		1,969
Permanent mortgage guaranteed by U.S. government agencies	22,784		—		22,784		26,767		—		26,767
Home equity	—		240		240		—		371		371
Total residential mortgage	22,784		2,189		24,973		26,767		2,340		29,107

Consumer	—		85		85		—		122		122

Total	$	22,784	$	19,143	$	41,927	$	26,767	$	20,105	$	46,872

Nonaccrual & Past Due Loans

Past due status for all loan classes is based on the actual number of days since the last payment was due according to the contractual terms of the loans.

A summary of loans currently performing, loans past due and accruing and nonaccrual loans as of June 30, 2014 is as follows (in thousands):



			Past Due
	Current		30 to 89 Days		90 Days or More		Nonaccrual		Total
Commercial:
Energy	$	2,416,139	$	2,005	$	25	$	1,619	$	2,419,788
Services	2,373,081		315		—		3,669		2,377,065
Wholesale/retail	1,312,255		11		—		5,885		1,318,151
Manufacturing	448,656		703		—		3,507		452,866
Healthcare	1,392,718		16		—		1,422		1,394,156
Other commercial and industrial	404,248		386		—		1,001		405,635
Total commercial	8,347,097		3,436		25		17,103		8,367,661

Commercial real estate:
Residential construction and land development	169,627		6		—		15,146		184,779
Retail	637,609		302		—		4,199		642,110
Office	390,626		—		—		3,591		394,217
Multifamily	677,403		—		—		—		677,403
Industrial	341,449		—		—		631		342,080
Other real estate loans	403,484		—		—		10,905		414,389
Total commercial real estate	2,620,198		308		—		34,472		2,654,978

Residential mortgage:
Permanent mortgage	977,897		10,079		—		32,952		1,020,928
Permanent mortgages guaranteed by U.S. government agencies	27,855		19,231		139,054		1,947		188,087
Home equity	787,863		1,855		41		9,441		799,200
Total residential mortgage	1,793,615		31,165		139,095		44,340		2,008,215

Consumer	394,246		992		1		765		396,004

Total	$	13,155,156	$	35,901	$	139,121	$	96,680	$	13,426,858

A summary of loans currently performing, loans past due and accruing and nonaccrual loans as of December 31, 2013 is as follows (in thousands):



			Past Due
	Current		30 to 89 Days		90 Days or More		Nonaccrual		Total
Commercial:
Energy	$	2,347,267	$	2,483	$	150	$	1,860	$	2,351,760
Services	2,276,036		1,210		42		4,922		2,282,210
Wholesale/retail	1,193,905		338		152		6,969		1,201,364
Manufacturing	391,159		—		—		592		391,751
Healthcare	1,272,660		—		—		1,586		1,274,246
Other commercial and industrial	440,973		81		5		831		441,890
Total commercial	7,922,000		4,112		349		16,760		7,943,221

Commercial real estate:
Residential construction and land development	188,434		428		19		17,377		206,258
Retail	580,926		264		—		4,857		586,047
Office	404,505		603		—		6,391		411,499
Multifamily	576,495		—		—		7		576,502
Industrial	243,625		—		—		252		243,877
Other real estate loans	376,699		1,493		1,012		11,966		391,170
Total commercial real estate	2,370,684		2,788		1,031		40,850		2,415,353

Residential mortgage:
Permanent mortgage	1,018,670		9,795		—		34,279		1,062,744
Permanent mortgages guaranteed by U.S. government agencies	21,916		17,290		141,615		777		181,598
Home equity	797,299		3,087		34		7,264		807,684
Total residential mortgage	1,837,885		30,172		141,649		42,320		2,052,026

Consumer	379,417		1,027		1		1,219		381,664

Total	$	12,509,986	$	38,099	$	143,030	$	101,149	$	12,792,264

A summary of loans currently performing, loans past due and accruing and nonaccrual loans as of June 30, 2013 is as follows (in thousands):



			Past Due
	Current		30 to 89 Days		90 Days or More		Nonaccrual		Total
Commercial:
Energy	$	2,382,377	$	92	$	—	$	2,277	$	2,384,746
Services	2,192,771		1,769		2,265		7,448		2,204,253
Wholesale/retail	1,168,686		—		157		6,700		1,175,543
Manufacturing	385,257		—		—		876		386,133
Healthcare	1,115,187		953		—		2,670		1,118,810
Other commercial and industrial	437,558		160		19		898		438,635
Total commercial	7,681,836		2,974		2,441		20,869		7,708,120

Commercial real estate:
Residential construction and land development	204,519		—		—		21,135		225,654
Retail	542,946		2,060		—		8,406		553,412
Office	451,730		—		—		7,828		459,558
Multifamily	492,306		1,699		—		6,447		500,452
Industrial	253,990		—		—		—		253,990
Other real estate loans	308,373		780		—		14,877		324,030
Total commercial real estate	2,253,864		4,539		—		58,693		2,317,096

Residential mortgage:
Permanent mortgage	1,054,435		8,689		—		32,747		1,095,871
Permanent mortgages guaranteed by U.S. government agencies	22,328		17,670		116,806		83		156,887
Home equity	776,872		2,451		—		7,704		787,027
Total residential mortgage	1,853,635		28,810		116,806		40,534		2,039,785

Consumer	371,243		2,482		19		2,037		375,781

Total	$	12,160,578	$	38,805	$	119,266	$	122,133	$	12,440,782