(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 the 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):



	September 30, 2014								December 31, 2013
	Fixed Rate		Variable Rate		Non-accrual		Total		Fixed Rate		Variable Rate		Non-accrual		Total
Commercial	$	1,714,251	$	6,841,383	$	16,404	$	8,572,038	$	1,637,620	$	6,288,841	$	16,760	$	7,943,221
Commercial real estate	757,846		1,935,693		30,660		2,724,199		770,908		1,603,595		40,850		2,415,353
Residential mortgage	1,722,864		207,892		48,907		1,979,663		1,783,614		226,092		42,320		2,052,026
Consumer	106,736		300,523		580		407,839		135,494		244,951		1,219		381,664
Total	$	4,301,697	$	9,285,491	$	96,551	$	13,683,739	$	4,327,636	$	8,363,479	$	101,149	$	12,792,264
Accruing loans past due (90 days)¹							$	25							$	1,415



	September 30, 2013
	Fixed Rate		Variable Rate		Non-accrual		Total
Commercial	$	1,468,198	$	6,083,355	$	19,522	$	7,571,075
Commercial real estate	730,733		1,565,994		52,502		2,349,229
Residential mortgage	1,766,818		228,691		39,256		2,034,765
Consumer	137,194		256,213		1,624		395,031
Total	$	4,102,943	$	8,134,253	$	112,904	$	12,350,100
Accruing loans past due (90 days)¹							$	188


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

At September 30, 2014, $4.6 billion or 34% of our total loan portfolio is to businesses and individuals attributed to the Texas market and $3.4 billion or 25% 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 September 30, 2014, commercial loans attributed to the Texas market totaled $2.9 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 $2.6 billion or 19% of total loans at September 30, 2014, including $2.2 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 $2.5 billion at September 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 September 30, 2014, 35% of commercial real estate loans are secured by properties primarily located in the Dallas and Houston areas of Texas. An additional 16% 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 September 30, 2014, residential mortgage loans included $198 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 $790 million at September 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 72% to amortizing term loans and 28% 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 September 30, 2014, outstanding commitments totaled $7.7 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 September 30, 2014, outstanding standby letters of credit totaled $451 million. Commercial letters of credit are used to facilitate customer trade transactions with the drafts being drawn when the underlying transaction is consummated. At September 30, 2014, outstanding commercial letters of credit totaled $5.1 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 nine months ended September 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 September 30, 2014 is summarized as follows (in thousands):



	Commercial			Commercial Real Estate			Residential Mortgage			Consumer			Nonspecific Allowance		Total
Allowance for loan losses:
Beginning balance	$	87,806		$	41,252		$	27,654		$	7,029		$	26,949	$	190,690
Provision for loan losses	(1,174		)	(84		)	185			156			995		78
Loans charged off	(117		)	(145		)	(773		)	(1,603		)	—		(2,638		)
Recoveries	260			1,410			150			1,294			—		3,114
Ending balance	$	86,775		$	42,433		$	27,216		$	6,876		$	27,944	$	191,244
Allowance for off-balance sheet credit losses:
Beginning balance	$	345		$	902		$	43		$	18		$	—	$	1,308
Provision for off-balance sheet credit losses	(65		)	10			(19		)	(4		)	—		(78		)
Ending balance	$	280		$	912		$	24		$	14		$	—	$	1,230

Total provision for credit losses	$	(1,239	)	$	(74	)	$	166		$	152		$	995	$	—

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 nine months ended September 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	4,444			(4,633		)	136			1,180			(269		)	858
Loans charged off	(290		)	(365		)	(3,611		)	(4,742		)	—			(9,008		)
Recoveries	3,441			5,858			1,226			3,473			—			13,998
Ending balance	$	86,775		$	42,433		$	27,216		$	6,876		$	27,944		$	191,244
Allowance for off-balance sheet credit losses:
Beginning balance	$	119		$	1,876		$	90		$	3		$	—		$	2,088
Provision for off-balance sheet credit losses	161			(964		)	(66		)	11			—			(858		)
Ending balance	$	280		$	912		$	24		$	14		$	—		$	1,230

Total provision for credit losses	$	4,605		$	(5,597	)	$	70		$	1,191		$	(269	)	$	—



	Commercial			Commercial Real Estate			Residential Mortgage			Consumer			Nonspecific Allowance			Total
Allowance for loan losses:
Beginning balance	$	64,044		$	49,687		$	39,206		$	7,738		$	42,449		$	203,124
Provision for loan losses	(1,774		)	(6,279		)	(136		)	1,256			(1,567		)	(8,500		)
Loans charged off	(1,354		)	(419		)	(961		)	(1,974		)	—			(4,708		)
Recoveries	864			2,073			188			1,284			—			4,409
Ending balance	$	61,780		$	45,062		$	38,297		$	8,304		$	40,882		$	194,325
Allowance for off-balance sheet credit losses:
Beginning balance	$	402		$	1,178		$	6		$	18		$	—		$	1,604
Provision for off-balance sheet credit losses	(228		)	202			42			(16		)	—			—
Ending balance	$	174		$	1,380		$	48		$	2		$	—		$	1,604

Total provision for credit losses	$	(2,002	)	$	(6,077	)	$	(94	)	$	1,240		$	(1,567	)	$	(8,500	)



	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	(3,507		)	(10,077		)	187			513			(3,305		)	(16,189		)
Loans charged off	(6,190		)	(5,669		)	(4,797		)	(5,513		)	—			(22,169		)
Recoveries	6,197			5,924			1,204			3,851			—			17,176
Ending balance	$	61,780		$	45,062		$	38,297		$	8,304		$	40,882		$	194,325
Allowance for off-balance sheet credit losses:
Beginning balance	$	475		$	1,353		$	78		$	9		$	—		$	1,915
Provision for off-balance sheet credit losses	(301		)	27			(30		)	(7		)	—			(311		)
Ending balance	$	174		$	1,380		$	48		$	2		$	—		$	1,604

Total provision for credit losses	$	(3,808	)	$	(10,050	)	$	157		$	506		$	(3,305	)	$	(16,500	)

The allowance for loan losses and recorded investment of the related loans by portfolio segment for each impairment measurement method at September 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	$	8,555,634	$	83,609	$	16,404	$	3,166	$	8,572,038	$	86,775
Commercial real estate	2,693,539		42,358		30,660		75		2,724,199		42,433
Residential mortgage	1,930,756		27,109		48,907		107		1,979,663		27,216
Consumer	407,259		6,876		580		—		407,839		6,876
Total	13,587,188		159,952		96,551		3,348		13,683,739		163,300

Nonspecific allowance	—		—		—		—		—		27,944

Total	$	13,587,188	$	159,952	$	96,551	$	3,348	$	13,683,739	$	191,244

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 September 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	$	7,551,553	$	61,208	$	19,522	$	572	$	7,571,075	$	61,780
Commercial real estate	2,296,727		44,574		52,502		488		2,349,229		45,062
Residential mortgage	1,996,086		38,083		38,679		214		2,034,765		38,297
Consumer	393,407		8,304		1,624		—		395,031		8,304
Total	12,237,773		152,169		112,327		1,274		12,350,100		153,443

Nonspecific allowance	—		—		—		—		—		40,882

Total	$	12,237,773	$	152,169	$	112,327	$	1,274	$	12,350,100	$	194,325

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 September 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	$	8,545,949	$	85,892	$	26,089	$	883	$	8,572,038	$	86,775
Commercial real estate	2,724,199		42,433		—		—		2,724,199		42,433
Residential mortgage	200,701		4,083		1,778,962		23,133		1,979,663		27,216
Consumer	314,604		3,257		93,235		3,619		407,839		6,876
Total	11,785,453		135,665		1,898,286		27,635		13,683,739		163,300

Nonspecific allowance	—		—		—		—		—		27,944

Total	$	11,785,453	$	135,665	$	1,898,286	$	27,635	$	13,683,739	$	191,244

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 September 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	$	7,553,151	$	60,570	$	17,924	$	1,210	$	7,571,075	$	61,780
Commercial real estate	2,349,229		45,062		—		—		2,349,229		45,062
Residential mortgage	236,399		3,764		1,798,366		34,533		2,034,765		38,297
Consumer	268,690		2,797		126,341		5,507		395,031		8,304
Total	10,407,469		112,193		1,942,631		41,250		12,350,100		153,443

Nonspecific allowance	—		—		—		—		—		40,882

Total	$	10,407,469	$	112,193	$	1,942,631	$	41,250	$	12,350,100	$	194,325

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 September 30, 2014 by the risk grade categories (in thousands):



	Internally Risk Graded						Non-Graded
	Performing		Potential Problem		Nonaccrual		Performing		Nonaccrual		Total
Commercial:
Energy	$	2,519,924	$	30,267	$	1,508	$	—	$	—	$	2,551,699
Services	2,466,857		17,376		3,584		—		—		2,487,817
Wholesale/retail	1,264,333		3,406		5,502		—		—		1,273,241
Manufacturing	469,881		6,180		3,482		—		—		479,543
Healthcare	1,376,399		4,583		1,417		—		—		1,382,399
Other commercial and industrial	359,159		11,234		857		26,035		54		397,339
Total commercial	8,456,553		73,046		16,350		26,035		54		8,572,038

Commercial real estate:
Residential construction and land development	145,223		15,371		14,634		—		—		175,228
Retail	605,718		1,538		4,009		—		—		611,265
Office	434,829		581		3,499		—		—		438,909
Multifamily	725,720		14,037		—		—		—		739,757
Industrial	371,426		—		—		—		—		371,426
Other commercial real estate	377,419		1,677		8,518		—		—		387,614
Total commercial real estate	2,660,335		33,204		30,660		—		—		2,724,199

Residential mortgage:
Permanent mortgage	195,688		1,312		3,701		758,970		31,436		991,107
Permanent mortgages guaranteed by U.S. government agencies	—		—		—		194,653		3,835		198,488
Home equity	—		—		—		780,133		9,935		790,068
Total residential mortgage	195,688		1,312		3,701		1,733,756		45,206		1,979,663

Consumer	314,409		20		175		92,830		405		407,839

Total	$	11,626,985	$	107,582	$	50,886	$	1,852,621	$	45,665	$	13,683,739

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 September 30, 2013 by the risk grade categories (in thousands):



	Internally Risk Graded						Non-Graded
	Performing		Potential Problem		Nonaccrual		Performing		Nonaccrual		Total
Commercial:
Energy	$	2,305,225	$	4,813	$	1,953	$	—	$	—	$	2,311,991
Services	2,130,169		11,455		6,927		—		—		2,148,551
Wholesale/retail	1,171,923		2,660		7,223		—		—		1,181,806
Manufacturing	378,723		2,894		843		—		—		382,460
Healthcare	1,158,436		43		1,733		—		—		1,160,212
Other commercial and industrial	362,545		4,790		796		17,877		47		386,055
Total commercial	7,507,021		26,655		19,475		17,877		47		7,571,075

Commercial real estate:
Residential construction and land development	178,278		17,394		20,784		—		—		216,456
Retail	548,197		807		7,914		—		—		556,918
Office	413,083		2,122		6,838		—		—		422,043
Multifamily	504,548		11,556		4,350		—		—		520,454
Industrial	244,768		254		—		—		—		245,022
Other commercial real estate	365,051		10,669		12,616		—		—		388,336
Total commercial real estate	2,253,925		42,802		52,502		—		—		2,349,229

Residential mortgage:
Permanent mortgage	222,630		4,633		5,441		819,601		26,356		1,078,661
Permanent mortgages guaranteed by U.S. government agencies	—		—		—		163,342		577		163,919
Home equity	3,695		—		—		781,608		6,882		792,185
Total residential mortgage	226,325		4,633		5,441		1,764,551		33,815		2,034,765

Consumer	267,564		846		280		124,997		1,344		395,031

Total	$	10,254,835	$	74,936	$	77,698	$	1,907,425	$	35,206	$	12,350,100

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
	September 30, 2014										Three Months Ended				Nine Months Ended
			Recorded Investment								September 30, 2014				September 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	$	1,536	$	1,508	$	1,508	$	—	$	—	$	1,563	$	—	$	1,684	$	—
Services	6,400		3,584		2,851		733		157		3,626		—		4,253		—
Wholesale/retail	10,792		5,502		5,470		32		9		5,693		—		6,235		—
Manufacturing	3,754		3,482		482		3,000		3,000		3,495		—		2,037		—
Healthcare	2,451		1,417		1,417		—		—		1,420		—		1,502		—
Other commercial and industrial	8,580		911		911		—		—		956		—		871		—
Total commercial	33,513		16,404		12,639		3,765		3,166		16,753		—		16,582		—

Commercial real estate:
Residential construction and land development	18,953		14,634		14,490		144		57		14,890		—		16,006		—
Retail	5,425		4,009		4,009		—		—		4,104		—		4,433		—
Office	6,004		3,499		3,499		—		—		3,545		—		4,945		—
Multifamily	—		—		—		—		—		—		—		3		—
Industrial	—		—		—		—		—		315		—		126		—
Other real estate loans	15,261		8,518		8,341		177		18		9,711		—		10,242		—
Total commercial real estate	45,643		30,660		30,339		321		75		32,565		—		35,755		—

Residential mortgage:
Permanent mortgage	44,396		35,137		34,962		175		107		34,045		429		34,708		1,067
Permanent mortgage guaranteed by U.S. government agencies¹	204,807		198,488		198,488		—		—		194,882		2,089		189,820		6,279
Home equity	10,031		9,935		9,935		—		—		9,688		—		8,599		—
Total residential mortgage	259,234		243,560		243,385		175		107		238,615		2,518		233,127		7,346

Consumer	597		580		580		—		—		673		—		900		—

Total	$	338,987	$	291,204	$	286,943	$	4,261	$	3,348	$	288,606	$	2,518	$	286,364	$	7,346


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 September 30, 2014, $3.8 million of these loans were nonaccruing and $195 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 September 30, 2013 follows (in thousands):



	As of										For the				For the
	As of September 30, 2013										Three Months Ended				Nine Months Ended
			Recorded Investment								September 30, 2013				September 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	$	1,954	$	1,953	$	1,953	$	—	$	—	$	2,115	$	—	$	2,207	$	—
Services	9,105		6,927		5,789		1,138		515		7,188		—		9,509		—
Wholesale/retail	11,262		7,223		7,188		35		9		6,962		—		5,150		—
Manufacturing	1,051		843		843		—		—		860		—		1,425		—
Healthcare	2,340		1,733		1,685		48		48		2,202		—		2,450		—
Other commercial and industrial	8,535		843		843		—		—		871		—		1,255		—
Total commercial	34,247		19,522		18,301		1,221		572		20,198		—		21,996		—

Commercial real estate:
Residential construction and land development	24,219		20,784		20,395		389		148		20,960		—		23,458		—
Retail	9,380		7,914		7,914		—		—		8,160		—		8,016		—
Office	8,254		6,838		6,830		8		8		7,333		—		6,834		—
Multifamily	4,351		4,350		4,350		—		—		5,399		—		3,528		—
Industrial	—		—		—		—		—		—		—		1,984		—
Other real estate loans	14,868		12,616		12,020		596		332		13,747		—		12,746		—
Total commercial real estate	61,072		52,502		51,509		993		488		55,599		—		56,566		—

Residential mortgage:
Permanent mortgage	39,648		31,797		31,527		270		214		32,272		539		35,829		1,142
Permanent mortgage guaranteed by U.S. government agencies¹	171,935		163,919		163,919		—		—		162,497		1,722		162,337		5,130
Home equity	7,091		6,882		6,882		—		—		7,293		—		6,569		—
Total residential mortgage	218,674		202,598		202,328		270		214		202,062		2,261		204,735		6,272

Total consumer	1,637		1,624		1,624		—		—		1,831		—		2,167		—

Total	$	315,630	$	276,246	$	273,762	$	2,484	$	1,274	$	279,690	$	2,261	$	285,464	$	6,272


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 September 30, 2013, $577 thousand of these loans were nonaccruing and $163 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 September 30, 2014 is as follows (in thousands):



	As of September 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 September 30, 2014		Nine Months Ended Sept. 30, 2014
Nonaccruing TDRs:

Commercial:
Energy	$	—	$	—	$	—	$	—	$	—	$	—
Services	1,714		724		990		148		—		—
Wholesale/retail	3,545		3,440		105		9		—		—
Manufacturing	3,355		355		3,000		3,000		—		—
Healthcare	—		—		—		—		—		—
Other commercial and industrial	644		48		596		—		—		—
Total commercial	9,258		4,567		4,691		3,157		—		—

Commercial real estate:
Residential construction and land development	8,562		264		8,298		56		—		—
Retail	3,664		2,486		1,178		—		—		—
Office	2,345		1,194		1,151		—		—		—
Multifamily	—		—		—		—		—		—
Industrial	—		—		—		—		—		—
Other real estate loans	1,743		1,743		—		—		—		—
Total commercial real estate	16,314		5,687		10,627		56		—		—

Residential mortgage:
Permanent mortgage	16,764		11,227		5,537		80		147		246
Permanent mortgage guaranteed by U.S. government agencies	1,665		329		1,336		—		—		—
Home equity	4,937		3,864		1,073		—		12		58
Total residential mortgage	23,366		15,420		7,946		80		159		304

Consumer	474		322		152		—		—		1

Total nonaccruing TDRs	$	49,412	$	25,996	$	23,416	$	3,293	$	159	$	305

Accruing TDRs:
Permanent mortgages guaranteed by U.S. government agencies	70,459		22,998		47,461		—		—		—

Total TDRs	$	119,871	$	48,994	$	70,877	$	3,293	$	159	$	305

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 September 30, 2013 is as follows (in thousands):



	As of September 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 September 30, 2013		Nine Months Ended Sept. 30, 2013
Nonaccruing TDRs:

Commercial:
Energy	$	—	$	—	$	—	$	—	$	—	$	—
Services	3,791		1,274		2,517		250		—		—
Wholesale/retail	275		141		134		9		—		—
Manufacturing	396		—		396		—		154		154
Healthcare	—		—		—		—		—		—
Other commercial and industrial	772		30		742		—		—		—
Total commercial	5,234		1,445		3,789		259		154		154

Commercial real estate:
Residential construction and land development	10,673		1,776		8,897		148		—		54
Retail	6,030		2,032		3,998		—		—		627
Office	5,448		1,294		4,154		—		—		77
Multifamily	980		980		—		—		—		—
Industrial	—		—		—		—		—		—
Other real estate loans	8,482		6,874		1,608		—		—		—
Total commercial real estate	31,613		12,956		18,657		148		—		758

Residential mortgage:
Permanent mortgage	17,319		9,579		7,740		13		73		450
Home equity	3,782		3,219		563		—		61		127
Total residential mortgage	21,101		12,798		8,303		13		134		577

Consumer	1,288		1,024		264		—		2		3

Total nonaccruing TDRs	$	59,236	$	28,223	$	31,013	$	420	$	290	$	1,492

Accruing TDRs:
Permanent mortgages guaranteed by U.S. government agencies	50,099		11,975		38,124		—		—		—
Total TDRs	$	109,335	$	40,198	$	69,137	$	420	$	290	$	1,492

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 September 30, 2014 by class that were restructured during the three and nine months ended September 30, 2014 by primary type of concession (in thousands):



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

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

Residential mortgage:
Permanent mortgage	—		—		—		—		196		1,018		1,214		1,214
Permanent mortgage guaranteed by U.S. government agencies	3,439		12,626		16,065		—		—		163		163		16,228
Home equity	—		—		—		—		—		570		570		570
Total residential mortgage	3,439		12,626		16,065		—		196		1,751		1,947		18,012

Consumer	—		—		—		—		—		20		20		20

Total	$	3,439	$	12,626	$	16,065	$	—	$	196	$	1,771	$	1,967	$	18,032



	Nine Months Ended Sept. 30, 2014
	Accruing						Nonaccrual								Total
	Payment Stream		Combination & Other		Total		Interest Rate		Payment Stream		Combination & Other		Total
Commercial:
Energy	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Services	—		—		—		—		—		—		—		—
Wholesale/retail	—		—		—		—		3,400		—		3,400		3,400
Manufacturing	—		—		—		—		3,000		—		3,000		3,000
Healthcare	—		—		—		—		—		—		—		—
Other commercial and industrial	—		—		—		—		—		22		22		22
Total commercial	—		—		—		—		6,400		22		6,422		6,422

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

Residential mortgage:
Permanent mortgage	—		—		—		—		540		3,066		3,606		3,606
Permanent mortgage guaranteed by U.S. government agencies	8,288		19,222		27,510		—		—		1,128		1,128		28,638
Home equity	—		—		—		—		—		1,771		1,771		1,771
Total residential mortgage	8,288		19,222		27,510		—		540		5,965		6,505		34,015

Consumer	—		—		—		—		—		41		41		41

Total	$	8,288	$	19,222	$	27,510	$	—	$	6,940	$	6,028	$	12,968	$	40,478

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 nine months ended September 30, 2013 by primary type of concession (in thousands):



	Three Months Ended Sept. 30, 2013
	Accruing						Nonaccrual								Total
	Payment Stream		Combination & Other		Total		Interest Rate		Payment Stream		Combination & Other		Total
Commercial:
Energy	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Services	—		—		—		610		228		—		838		838
Wholesale/retail	—		—		—		—		—		—		—		—
Manufacturing	—		—		—		—		396		—		396		396
Healthcare	—		—		—		—		—		—		—		—
Other commercial and industrial	—		—		—		—		—		—		—		—
Total commercial	—		—		—		610		624		—		1,234		1,234

Commercial real estate:
Residential construction and land development	—		—		—		—		—		—		—		—
Retail	—		—		—		—		498		—		498		498
Office	—		—		—		—		—		—		—		—
Multifamily	—		—		—		—		—		—		—		—
Industrial	—		—		—		—		—		—		—		—
Other real estate loans	—		—		—		—		—		—		—		—
Total commercial real estate	—		—		—		—		498		—		498		498

Residential mortgage:
Permanent mortgage	—		—		—		—		—		222		222		222
Permanent mortgage guaranteed by U.S. government agencies	1,971		2,892		4,863		—		—		—		—		4,863
Home equity	—		—		—		—		—		515		515		515
Total residential mortgage	1,971		2,892		4,863		—		—		737		737		5,600

Consumer	—		—		—		—		—		116		116		116

Total	$	1,971	$	2,892	$	4,863	$	610	$	1,122	$	853	$	2,585	$	7,448



	Nine Months Ended Sept. 30, 2013
	Accruing						Nonaccrual								Total
	Payment Stream		Combination & Other		Total		Interest Rate		Payment Stream		Combination & Other		Total
Commercial:
Energy	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Services	—		—		—		610		1,351		—		1,961		1,961
Wholesale/retail	—		—		—		—		—		—		—		—
Manufacturing	—		—		—		—		396		—		396		396
Healthcare	—		—		—		—		—		—		—		—
Other commercial and industrial	—		—		—		145		—		—		145		145
Total commercial	—		—		—		755		1,747		—		2,502		2,502

Commercial real estate:
Residential construction and land development	—		—		—		—		—		—		—		—
Retail	—		—		—		—		1,110		—		1,110		1,110
Office	—		—		—		—		3,173		—		3,173		3,173
Multifamily	—		—		—		—		980		—		980		980
Industrial	—		—		—		—		—		—		—		—
Other real estate loans	—		—		—		—		3,870		—		3,870		3,870
Total commercial real estate	—		—		—		—		9,133		—		9,133		9,133

Residential mortgage:
Permanent mortgage	—		—		—		—		132		864		996		996
Permanent mortgage guaranteed by U.S. government agencies	9,817		9,589		19,406		—		—		—		—		19,406
Home equity	—		—		—		—		—		2,490		2,490		2,490
Total residential mortgage	9,817		9,589		19,406		—		132		3,354		3,486		22,892

Consumer	—		—		—		81		—		763		844		844

Total	$	9,817	$	9,589	$	19,406	$	836	$	11,012	$	4,117	$	15,965	$	35,371

The following table summarizes, by loan class, the recorded investment at September 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 September 30, 2014 (in thousands):



	Three Months Ended Sept. 30, 2014						Nine Months Ended Sept. 30, 2014
	Accruing		Nonaccrual		Total		Accruing		Nonaccrual		Total
Commercial:
Energy	$	—	$	—	$	—	$	—	$	—	$	—
Services	—		—		—		—		—		—
Wholesale/retail	—		—		—		—		—		—
Manufacturing	—		3,000		3,000		—		3,000		3,000
Healthcare	—		—		—		—		—		—
Other commercial and industrial	—		—		—		—		—		—
Total commercial	—		3,000		3,000		—		3,000		3,000

Commercial real estate:
Residential construction and land development	—		—		—		—		—		—
Retail	—		445		445		—		445		445
Office	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
Industrial	—		—		—		—		—		—
Other real estate loans	—		—		—		—		—		—
Total commercial real estate	—		445		445		—		445		445

Residential mortgage:
Permanent mortgage	—		2,758		2,758		—		3,254		3,254
Permanent mortgage guaranteed by U.S. government agencies	23,376		1,115		24,491		24,126		1,115		25,241
Home equity	—		759		759		—		777		777
Total residential mortgage	23,376		4,632		28,008		24,126		5,146		29,272

Consumer	—		—		—		—		3		3

Total	$	23,376	$	8,077	$	31,453	$	24,126	$	8,594	$	32,720

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 September 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 September 30, 2013 (in thousands):



	Three Months Ended Sept. 30, 2013						Nine Months Ended Sept. 30, 2013
	Accruing		Nonaccrual		Total		Accruing		Nonaccrual		Total
Commercial:
Energy	$	—	$	—	$	—	$	—	$	—	$	—
Services	—		1,338		1,338		—		1,948		1,948
Wholesale/retail	—		—		—		—		—		—
Manufacturing	—		396		396		—		396		396
Healthcare	—		—		—		—		—		—
Other commercial and industrial	—		145		145		—		168		168
Total commercial	—		1,879		1,879		—		2,512		2,512

Commercial real estate:
Residential construction and land development	—		257		257		—		257		257
Retail	—		1,110		1,110		—		1,110		1,110
Office	—		3,173		3,173		—		3,173		3,173
Multifamily	—		—		—		—		980		980
Industrial	—		—		—		—		—		—
Other real estate loans	—		—		—		—		3,870		3,870
Total commercial real estate	—		4,540		4,540		—		9,390		9,390

Residential mortgage:
Permanent mortgage	—		820		820		—		941		941
Permanent mortgage guaranteed by U.S. government agencies	22,359		—		22,359		26,636		—		26,636
Home equity	—		563		563		—		630		630
Total residential mortgage	22,359		1,383		23,742		26,636		1,571		28,207

Consumer	—		134		134		—		169		169

Total	$	22,359	$	7,936	$	30,295	$	26,636	$	13,642	$	40,278

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 September 30, 2014 is as follows (in thousands):



			Past Due
	Current		30 to 89 Days		90 Days or More		Nonaccrual		Total
Commercial:
Energy	$	2,549,441	$	750	$	—	$	1,508	$	2,551,699
Services	2,483,416		812		5		3,584		2,487,817
Wholesale/retail	1,267,206		533		—		5,502		1,273,241
Manufacturing	475,595		466		—		3,482		479,543
Healthcare	1,380,982		—		—		1,417		1,382,399
Other commercial and industrial	396,358		70		—		911		397,339
Total commercial	8,552,998		2,631		5		16,404		8,572,038

Commercial real estate:
Residential construction and land development	152,399		8,195		—		14,634		175,228
Retail	606,383		873		—		4,009		611,265
Office	434,160		1,250		—		3,499		438,909
Multifamily	739,757		—		—		—		739,757
Industrial	371,426		—		—		—		371,426
Other real estate loans	378,796		300		—		8,518		387,614
Total commercial real estate	2,682,921		10,618		—		30,660		2,724,199

Residential mortgage:
Permanent mortgage	947,791		8,179		—		35,137		991,107
Permanent mortgages guaranteed by U.S. government agencies	35,318		23,475		135,860		3,835		198,488
Home equity	778,175		1,938		20		9,935		790,068
Total residential mortgage	1,761,284		33,592		135,880		48,907		1,979,663

Consumer	406,463		796		—		580		407,839

Total	$	13,403,666	$	47,637	$	135,885	$	96,551	$	13,683,739

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 September 30, 2013 is as follows (in thousands):



			Past Due
	Current		30 to 89 Days		90 Days or More		Nonaccrual		Total
Commercial:
Energy	$	2,308,639	$	1,399	$	—	$	1,953	$	2,311,991
Services	2,140,835		704		85		6,927		2,148,551
Wholesale/retail	1,173,628		955		—		7,223		1,181,806
Manufacturing	381,048		569		—		843		382,460
Healthcare	1,158,340		139		—		1,733		1,160,212
Other commercial and industrial	385,096		116		—		843		386,055
Total commercial	7,547,586		3,882		85		19,522		7,571,075

Commercial real estate:
Residential construction and land development	195,672		—		—		20,784		216,456
Retail	548,810		194		—		7,914		556,918
Office	415,205		—		—		6,838		422,043
Multifamily	516,104		—		—		4,350		520,454
Industrial	244,415		607		—		—		245,022
Other real estate loans	375,250		470		—		12,616		388,336
Total commercial real estate	2,295,456		1,271		—		52,502		2,349,229

Residential mortgage:
Permanent mortgage	1,040,616		6,248		—		31,797		1,078,661
Permanent mortgages guaranteed by U.S. government agencies	20,985		18,639		123,718		577		163,919
Home equity	782,954		2,321		28		6,882		792,185
Total residential mortgage	1,844,555		27,208		123,746		39,256		2,034,765

Consumer	391,604		1,728		75		1,624		395,031

Total	$	12,079,201	$	34,089	$	123,906	$	112,904	$	12,350,100