(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, excluding loans guaranteed by U.S. government agencies. 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):



	June 30, 2016								December 31, 2015
	Fixed Rate		Variable Rate		Non-accrual		Total		Fixed Rate		Variable Rate		Non-accrual		Total
Commercial	$	1,994,415	$	8,180,033	$	181,989	$	10,356,437	$	1,850,548	$	8,325,559	$	76,424	$	10,252,531
Commercial real estate	612,822		2,961,364		7,780		3,581,966		627,678		2,622,354		9,001		3,259,033
Residential mortgage	1,586,116		237,746		57,061		1,880,923		1,598,992		216,661		61,240		1,876,893
Personal	109,447		477,622		354		587,423		91,816		460,418		463		552,697
Total	$	4,302,800	$	11,856,765	$	247,184	$	16,406,749	$	4,169,034	$	11,624,992	$	147,128	$	15,941,154
Accruing loans past due (90 days)¹							$	2,899							$	1,207



	June 30, 2015
	Fixed Rate		Variable Rate		Non-accrual		Total
Commercial	$	1,730,675	$	8,020,813	$	24,233	$	9,775,721
Commercial real estate	715,062		2,298,296		20,139		3,033,497
Residential mortgage	1,639,773		198,986		45,969		1,884,728
Personal	100,028		329,612		550		430,190
Total	$	4,185,538	$	10,847,707	$	90,891	$	15,124,136
Accruing loans past due (90 days)¹							$	99


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

At June 30, 2016, $5.3 billion or 32 percent of our total loan portfolio is to businesses and individuals attributed to the Texas market and $3.8 billion or 23 percent 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, 2016, commercial loans attributed to the Texas market totaled $3.4 billion or 33 percent of the commercial loan portfolio segment and commercial loans attributed to the Oklahoma market totaled $2.4 billion or 23 percent of the commercial loan portfolio segment.

The commercial loan portfolio segment is further divided into loan classes. The energy loan class totaled $2.8 billion or 17 percent of total loans at June 30, 2016, including $2.2 billion of outstanding loans to energy producers. Approximately 60 percent of committed production loans are secured by properties primarily producing oil and 40 percent are secured by properties producing natural gas. The services loan class totaled $2.8 billion or 17 percent of total loans at June 30, 2016. Approximately $1.3 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 governmental, finance and insurance, not-for-profit, educational services and loans to entities providing services for real estate and construction. The healthcare loan class totaled $2.1 billion or 13 percent of total loans at June 30, 2016. The healthcare loan class consists primarily of loans for the development and operation of senior housing and care facilities, including independent living, assisted living and skill nursing. Healthcare also includes loans to hospitals and other medical service providers.

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, 2016, 30 percent of commercial real estate loans are secured by properties primarily located in the Dallas and Houston areas of Texas. An additional 13 percent of commercial real estate loans are secured by properties located primarily in the Tulsa and Oklahoma City metropolitan areas of Oklahoma.

Residential Mortgage and Personal

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. Personal loans consist primarily of loans secured by the cash surrender value of insurance policies and marketable securities. It also includes direct loans secured by and for the purchase of automobiles, recreational and marine equipment as well as unsecured loans. Residential mortgage and personal loans are made in accordance with underwriting policies we believe to be conservative and are fully documented. Loans may be individually underwritten or credit scored based on size and other criteria. 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 percent. Loan-to-value (“LTV”) ratios are tiered from 60 percent to 100 percent, 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, 2016, residential mortgage loans included $193 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 $719 million at June 30, 2016. Approximately, 67 percent of the home equity loan portfolio is comprised of first lien loans and 33 percent of the home equity portfolio is comprised of junior lien loans. Junior lien loans are distributed 61 percent to amortizing term loans and 39 percent to revolving lines of credit. Home equity loans generally require a minimum FICO score of 700 and a maximum DTI of 40 percent. 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, 2016, outstanding commitments totaled $8.5 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, 2016, outstanding standby letters of credit totaled $491 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, 2016, outstanding commercial letters of credit totaled $6.7 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, 2016.

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, 2016 is summarized as follows (in thousands):



	Commercial			Commercial Real Estate			Residential Mortgage			Personal			Nonspecific Allowance		Total
Allowance for loan losses:
Beginning balance	$	139,793		$	44,453		$	18,467		$	5,022		$	25,421	$	233,156
Provision for loan losses	12,478			2,010			368			1,443			1,263		17,562
Loans charged off	(7,355		)	—			(345		)	(1,145		)	—		(8,845		)
Recoveries	223			282			200			681			—		1,386
Ending balance	$	145,139		$	46,745		$	18,690		$	6,001		$	26,684	$	243,259
Allowance for off-balance sheet credit losses:
Beginning balance	$	6,319		$	228		$	58		$	2		$	—	$	6,607
Provision for off-balance sheet credit losses	2,433			(25		)	4			26			—		2,438
Ending balance	$	8,752		$	203		$	62		$	28		$	—	$	9,045

Total provision for credit losses	$	14,911		$	1,985		$	372		$	1,469		$	1,263	$	20,000

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, 2016 is summarized as follows (in thousands):



	Commercial			Commercial Real Estate		Residential Mortgage			Personal			Nonspecific Allowance			Total
Allowance for loan losses:
Beginning balance	$	130,334		$	41,391	$	19,509		$	4,164		$	30,126		$	225,524
Provision for loan losses	43,575			4,987		(363		)	2,909			(3,442		)	47,666
Loans charged off	(29,481		)	—		(819		)	(2,536		)	—			(32,836		)
Recoveries	711			367		363			1,464			—			2,905
Ending balance	$	145,139		$	46,745	$	18,690		$	6,001		$	26,684		$	243,259
Allowance for off-balance sheet credit losses:
Beginning balance	$	1,506		$	153	$	30		$	22		$	—		$	1,711
Provision for off-balance sheet credit losses	7,246			50		32			6			—			7,334
Ending balance	$	8,752		$	203	$	62		$	28		$	—		$	9,045

Total provision for credit losses	$	50,821		$	5,037	$	(331	)	$	2,915		$	(3,442	)	$	55,000



	Commercial			Commercial Real Estate			Residential Mortgage			Personal			Nonspecific Allowance		Total
Allowance for loan losses:
Beginning balance	$	101,411		$	40,819		$	23,244		$	4,139		$	28,073	$	197,686
Provision for loan losses	5,822			(1,334		)	(1,562		)	317			829		4,072
Loans charged off	(881		)	(16		)	(714		)	(1,266		)	—		(2,877		)
Recoveries	685			275			481			765			—		2,206
Ending balance	$	107,037		$	39,744		$	21,449		$	3,955		$	28,902	$	201,087
Allowance for off-balance sheet credit losses:
Beginning balance	$	577		$	333		$	24		$	20		$	—	$	954
Provision for off-balance sheet credit losses	18			(91		)	2			(1		)	—		(72		)
Ending balance	$	595		$	242		$	26		$	19		$	—	$	882

Total provision for credit losses	$	5,840		$	(1,425	)	$	(1,560	)	$	316		$	829	$	4,000



	Commercial			Commercial Real Estate			Residential Mortgage			Personal			Nonspecific Allowance		Total
Allowance for loan losses:
Beginning balance	$	90,875		$	42,445		$	23,458		$	4,233		$	28,045	$	189,056
Provision for loan losses	16,175			(11,751		)	(1,589		)	656			857		4,348
Loans charged off	(1,055		)	(44		)	(1,338		)	(2,609		)	—		(5,046		)
Recoveries	1,042			9,094			918			1,675			—		12,729
Ending balance	$	107,037		$	39,744		$	21,449		$	3,955		$	28,902	$	201,087
Allowance for off-balance sheet credit losses:
Beginning balance	$	475		$	707		$	28		$	20		$	—	$	1,230
Provision for off-balance sheet credit losses	120			(465		)	(2		)	(1		)	—		(348		)
Ending balance	$	595		$	242		$	26		$	19		$	—	$	882

Total provision for credit losses	$	16,295		$	(12,216	)	$	(1,591	)	$	655		$	857	$	4,000

The allowance for loan losses and recorded investment of the related loans by portfolio segment for each impairment measurement method at June 30, 2016 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	$	10,174,448	$	140,911	$	181,989	$	4,228	$	10,356,437	$	145,139
Commercial real estate	3,574,186		46,727		7,780		18		3,581,966		46,745
Residential mortgage	1,823,862		18,626		57,061		64		1,880,923		18,690
Personal	587,069		6,001		354		—		587,423		6,001
Total	16,159,565		212,265		247,184		4,310		16,406,749		216,575

Nonspecific allowance	—		—		—		—		—		26,684

Total	$	16,159,565	$	212,265	$	247,184	$	4,310	$	16,406,749	$	243,259

The allowance for loan losses and recorded investment of the related loans by portfolio segment for each impairment measurement method at December 31, 2015 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	$	10,176,107	$	114,027	$	76,424	$	16,307	$	10,252,531	$	130,334
Commercial real estate	3,250,032		41,373		9,001		18		3,259,033		41,391
Residential mortgage	1,815,653		19,441		61,240		68		1,876,893		19,509
Personal	552,234		4,164		463		—		552,697		4,164
Total	15,794,026		179,005		147,128		16,393		15,941,154		195,398

Nonspecific allowance	—		—		—		—		—		30,126

Total	$	15,794,026	$	179,005	$	147,128	$	16,393	$	15,941,154	$	225,524

The allowance for loan losses and recorded investment of the related loans by portfolio segment for each impairment measurement method at June 30, 2015 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	$	9,751,488	$	106,690	$	24,233	$	347	$	9,775,721	$	107,037
Commercial real estate	3,013,358		39,726		20,139		18		3,033,497		39,744
Residential mortgage	1,838,759		21,349		45,969		100		1,884,728		21,449
Personal	429,640		3,955		550		—		430,190		3,955
Total	15,033,245		171,720		90,891		465		15,124,136		172,185

Nonspecific allowance	—		—		—		—		—		28,902

Total	$	15,033,245	$	171,720	$	90,891	$	465	$	15,124,136	$	201,087

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, 2016 is as follows (in thousands):



	Internally Risk Graded				Non-Graded				Total
	Recorded Investment		Related Allowance		Recorded Investment		Related Allowance		Recorded Investment		Related Allowance
Commercial	$	10,331,701	$	144,217	$	24,736	$	922	$	10,356,437	$	145,139
Commercial real estate	3,581,966		46,745		—		—		3,581,966		46,745
Residential mortgage	202,520		2,995		1,678,403		15,695		1,880,923		18,690
Personal	500,240		3,624		87,183		2,377		587,423		6,001
Total	14,616,427		197,581		1,790,322		18,994		16,406,749		216,575

Nonspecific allowance	—		—		—		—		—		26,684

Total	$	14,616,427	$	197,581	$	1,790,322	$	18,994	$	16,406,749	$	243,259

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, 2015 is as follows (in thousands):



	Internally Risk Graded				Non-Graded				Total
	Recorded Investment		Related Allowance		Recorded Investment		Related Allowance		Recorded Investment		Related Allowance
Commercial	$	10,227,303	$	129,426	$	25,228	$	908	$	10,252,531	$	130,334
Commercial real estate	3,259,033		41,391		—		—		3,259,033		41,391
Residential mortgage	196,701		2,883		1,680,192		16,626		1,876,893		19,509
Personal	467,955		1,390		84,742		2,774		552,697		4,164
Total	14,150,992		175,090		1,790,162		20,308		15,941,154		195,398

Nonspecific allowance	—		—		—		—		—		30,126

Total	$	14,150,992	$	175,090	$	1,790,162	$	20,308	$	15,941,154	$	225,524

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, 2015 is as follows (in thousands):



	Internally Risk Graded				Non-Graded				Total
	Recorded Investment		Related Allowance		Recorded Investment		Related Allowance		Recorded Investment		Related Allowance
Commercial	$	9,752,301	$	106,162	$	23,420	$	875	$	9,775,721	$	107,037
Commercial real estate	3,033,497		39,744		—		—		3,033,497		39,744
Residential mortgage	190,744		2,922		1,693,984		18,527		1,884,728		21,449
Personal	343,114		1,549		87,076		2,406		430,190		3,955
Total	13,319,656		150,377		1,804,480		21,808		15,124,136		172,185

Nonspecific allowance	—		—		—		—		—		28,902

Total	$	13,319,656	$	150,377	$	1,804,480	$	21,808	$	15,124,136	$	201,087

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, 2016 by the risk grade categories (in thousands):



	Internally Risk Graded						Non-Graded
	Performing		Potential Problem		Nonaccrual		Performing		Nonaccrual		Total
Commercial:
Energy	$	2,229,486	$	421,025	$	168,145	$	—	$	—	$	2,818,656
Services	2,811,560		9,916		9,388		—		—		2,830,864
Wholesale/retail	1,503,561		26,624		2,772		—		—		1,532,957
Manufacturing	575,498		19,612		293		—		—		595,403
Healthcare	2,041,354		8,917		875		—		—		2,051,146
Other commercial and industrial	502,222		—		453		24,673		63		527,411
Total commercial	9,663,681		486,094		181,926		24,673		63		10,356,437

Commercial real estate:
Residential construction and land development	152,343		972		4,261		—		—		157,576
Retail	793,741		413		1,265		—		—		795,419
Office	768,202		304		606		—		—		769,112
Multifamily	781,058		6,077		65		—		—		787,200
Industrial	645,510		—		76		—		—		645,586
Other commercial real estate	425,558		8		1,507		—		—		427,073
Total commercial real estate	3,566,412		7,774		7,780		—		—		3,581,966

Residential mortgage:
Permanent mortgage	196,159		3,406		2,955		742,214		24,273		969,007
Permanent mortgages guaranteed by U.S. government agencies	—		—		—		172,991		19,741		192,732
Home equity	—		—		—		709,092		10,092		719,184
Total residential mortgage	196,159		3,406		2,955		1,624,297		54,106		1,880,923

Personal	496,534		3,590		116		86,945		238		587,423

Total	$	13,922,786	$	500,864	$	192,777	$	1,735,915	$	54,407	$	16,406,749

The following table summarizes the Company’s loan portfolio at December 31, 2015 by the risk grade categories (in thousands):



	Internally Risk Graded						Non-Graded
	Performing		Potential Problem		Nonaccrual		Performing		Nonaccrual		Total
Commercial:
Energy	$	2,906,357	$	129,782	$	61,189	$	—	$	—	$	3,097,328
Services	2,767,225		6,761		10,290		—		—		2,784,276
Wholesale/retail	1,412,780		6,365		2,919		—		—		1,422,064
Manufacturing	554,526		1,872		331		—		—		556,729
Healthcare	1,882,308		—		1,072		—		—		1,883,380
Other commercial and industrial	483,030		—		496		25,101		127		508,754
Total commercial	10,006,226		144,780		76,297		25,101		127		10,252,531

Commercial real estate:
Residential construction and land development	155,724		293		4,409		—		—		160,426
Retail	794,754		426		1,319		—		—		796,499
Office	636,501		555		651		—		—		637,707
Multifamily	744,299		6,512		274		—		—		751,085
Industrial	563,093		—		76		—		—		563,169
Other commercial real estate	347,864		11		2,272		—		—		350,147
Total commercial real estate	3,242,235		7,797		9,001		—		—		3,259,033

Residential mortgage:
Permanent mortgage	192,456		1,932		2,313		721,964		26,671		945,336
Permanent mortgages guaranteed by U.S. government agencies	—		—		—		175,037		21,900		196,937
Home equity	—		—		—		724,264		10,356		734,620
Total residential mortgage	192,456		1,932		2,313		1,621,265		58,927		1,876,893

Personal	467,811		14		130		84,409		333		552,697

Total	$	13,908,728	$	154,523	$	87,741	$	1,730,775	$	59,387	$	15,941,154

The following table summarizes the Company’s loan portfolio at June 30, 2015 by the risk grade categories (in thousands):



	Internally Risk Graded						Non-Graded
	Performing		Potential Problem		Nonaccrual		Performing		Nonaccrual		Total
Commercial:
Energy	$	2,771,248	$	124,054	$	6,841	$	—	$	—	$	2,902,143
Services	2,662,028		8,154		10,944		—		—		2,681,126
Wholesale/retail	1,506,059		23,505		4,166		—		—		1,533,730
Manufacturing	567,752		11,418		379		—		—		579,549
Healthcare	1,644,747		—		1,278		—		—		1,646,025
Other commercial and industrial	406,799		2,385		544		23,339		81		433,148
Total commercial	9,558,633		169,516		24,152		23,339		81		9,775,721

Commercial real estate:
Residential construction and land development	138,721		486		9,367		—		—		148,574
Retail	684,182		439		3,826		—		—		688,447
Office	560,159		566		2,360		—		—		563,085
Multifamily	703,449		7,689		195		—		—		711,333
Industrial	487,978		—		76		—		—		488,054
Other commercial real estate	429,544		145		4,315		—		—		434,004
Total commercial real estate	3,004,033		9,325		20,139		—		—		3,033,497

Residential mortgage:
Permanent mortgage	186,568		1,690		2,486		725,879		29,701		946,324
Permanent mortgages guaranteed by U.S. government agencies	—		—		—		187,122		3,717		190,839
Home equity	—		—		—		737,500		10,065		747,565
Total residential mortgage	186,568		1,690		2,486		1,650,501		43,483		1,884,728

Personal	342,949		16		149		86,675		401		430,190

Total	$	13,092,183	$	180,547	$	46,926	$	1,760,515	$	43,965	$	15,124,136

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, 2016										Three Months Ended				Six Months Ended
			Recorded Investment								June 30, 2016				June 30, 2016
	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	$	202,369	$	168,145	$	136,264	$	31,881	$	4,228	$	163,849	$	—	$	97,923	$	—
Services	12,780		9,388		9,388		—		—		9,450		—		9,839		—
Wholesale/retail	8,697		2,772		2,772		—		—		3,229		—		2,846		—
Manufacturing	650		293		293		—		—		303		—		312		—
Healthcare	1,175		875		875		—		—		949		—		973		—
Other commercial and industrial	8,186		516		516		—		—		542		—		569		—
Total commercial	233,857		181,989		150,108		31,881		4,228		178,322		—		112,462		—

Commercial real estate:
Residential construction and land development	7,177		4,261		4,261		—		—		4,525		—		4,335		—
Retail	1,914		1,265		1,265		—		—		1,283		—		1,292		—
Office	907		606		606		—		—		618		—		628		—
Multifamily	1,000		65		65		—		—		157		—		169		—
Industrial	76		76		76		—		—		76		—		76		—
Other real estate loans	7,445		1,507		1,355		152		18		1,865		—		1,890		—
Total commercial real estate	18,519		7,780		7,628		152		18		8,524		—		8,390		—

Residential mortgage:
Permanent mortgage	33,793		27,228		27,117		111		64		27,362		304		28,106		631
Permanent mortgage guaranteed by U.S. government agencies¹	198,534		192,732		192,732		—		—		191,430		2,023		195,563		3,795
Home equity	10,964		10,092		10,092		—		—		10,311		—		10,224		—
Total residential mortgage	243,291		230,052		229,941		111		64		229,103		2,327		233,893		4,426

Personal	1,174		354		354		—		—		342		—		409		—

Total	$	496,841	$	420,175	$	388,031	$	32,144	$	4,310	$	416,291	$	2,327	$	355,154	$	4,426


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, 2016, $20 million of these loans were nonaccruing and $173 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, 2015 follows (in thousands):



			Recorded Investment
	Unpaid Principal Balance		Total		With No Allowance		With Allowance		Related Allowance
Commercial:
Energy	$	63,910	$	61,189	$	18,330	$	42,859	$	16,115
Services	13,449		10,290		9,657		633		148
Wholesale/retail	8,582		2,919		2,907		12		9
Manufacturing	665		331		331		—		—
Healthcare	1,352		1,072		931		141		35
Other commercial and industrial	8,304		623		623		—		—
Total commercial	96,262		76,424		32,779		43,645		16,307

Commercial real estate:
Residential construction and land development	8,963		4,409		4,409		—		—
Retail	1,923		1,319		1,319		—		—
Office	937		651		651		—		—
Multifamily	1,192		274		274		—		—
Industrial	76		76		76		—		—
Other real estate loans	8,363		2,272		2,113		159		18
Total commercial real estate	21,454		9,001		8,842		159		18

Residential mortgage:
Permanent mortgage	37,273		28,984		28,868		116		68
Permanent mortgage guaranteed by U.S. government agencies¹	202,984		196,937		196,937		—		—
Home equity	10,988		10,356		10,356		—		—
Total residential mortgage	251,245		236,277		236,161		116		68

Personal	489		463		463		—		—

Total	$	369,450	$	322,165	$	278,245	$	43,920	$	16,393


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, 2015, $22 million of these loans were nonaccruing and $175 million were accruing based on the guarantee by U.S. government agencies.

A summary of impaired loans at June 30, 2015 follows (in thousands):



											For the				For the
	As of June 30, 2015										Three Months Ended				Six Months Ended
			Recorded Investment								June 30, 2015				June 30, 2015
	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	$	7,476	$	6,841	$	6,324	$	517	$	151	$	4,358	$	—	$	4,129	$	—
Services	13,815		10,944		10,270		674		152		7,844		—		8,072		—
Wholesale/retail	9,781		4,166		4,134		32		9		4,283		—		4,157		—
Manufacturing	690		379		379		—		—		398		—		414		—
Healthcare	1,646		1,278		1,088		190		35		1,418		—		1,329		—
Other commercial and industrial	8,302		625		625		—		—		755		—		778		—
Total commercial	41,710		24,233		22,820		1,413		347		19,056		—		18,879		—

Commercial real estate:
Residential construction and land development	14,143		9,367		9,367		—		—		9,483		—		7,333		—
Retail	5,369		3,826		3,826		—		—		3,842		—		3,876		—
Office	4,439		2,360		2,360		—		—		2,385		—		2,890		—
Multifamily	195		195		195		—		—		98		—		98		—
Industrial	76		76		76		—		—		76		—		38		—
Other real estate loans	10,411		4,315		4,149		166		18		4,138		—		5,113		—
Total commercial real estate	34,633		20,139		19,973		166		18		20,022		—		19,348		—

Residential mortgage:
Permanent mortgage	41,092		32,187		32,029		158		100		32,776		330		33,516		645
Permanent mortgage guaranteed by U.S. government agencies¹	197,090		190,839		190,839		—		—		194,138		2,047		200,929		4,303
Home equity	10,510		10,065		10,065		—		—		9,966		—		9,815		—
Total residential mortgage	248,692		233,091		232,933		158		100		236,880		2,377		244,260		4,948

Personal	570		550		550		—		—		506		—		558		—

Total	$	325,605	$	278,013	$	276,276	$	1,737	$	465	$	276,464	$	2,377	$	283,045	$	4,948


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, 2015, $3.7 million of these loans were nonaccruing and $187 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, 2016 is as follows (in thousands):



	As of June 30, 2016								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, 2016		Six Months Ended June 30, 2016
Nonaccruing TDRs:

Commercial:
Energy	$	2,246	$	—	$	2,246	$	—	$	500	$	500
Services	8,610		7,853		757		—		—		—
Wholesale/retail	2,467		2,427		40		—		—		—
Manufacturing	253		253		—		—		—		—
Healthcare	640		640		—		—		—		—
Other commercial and industrial	516		63		453		—		—		57
Total commercial	14,732		11,236		3,496		—		500		557

Commercial real estate:
Residential construction and land development	1,601		1,079		522		—		—		—
Retail	1,264		907		357		—		—		—
Office	152		152		—		—		—		—
Multifamily	—		—		—		—		—		—
Industrial	—		—		—		—		—		—
Other real estate loans	793		372		421		—		—		—
Total commercial real estate	3,810		2,510		1,300		—		—		—

Residential mortgage:
Permanent mortgage	17,367		12,462		4,905		64		37		52
Permanent mortgage guaranteed by U.S. government agencies	9,709		2,024		7,685		—		—		—
Home equity	4,763		4,139		624		—		60		126
Total residential mortgage	31,839		18,625		13,214		64		97		178

Personal	298		276		22		—		3		9

Total nonaccruing TDRs	$	50,679	$	32,647	$	18,032	$	64	$	600	$	744

Accruing TDRs:
Permanent mortgages guaranteed by U.S. government agencies	78,806		27,999		50,807		—		—		—

Total TDRs	$	129,485	$	60,646	$	68,839	$	64	$	600	$	744

A summary of troubled debt restructurings by accruing status as of December 31, 2015 is as follows (in thousands):



	As of
	December 31, 2015
	Recorded Investment		Performing in Accordance With Modified Terms		Not Performing in Accordance With Modified Terms		Specific Allowance
Nonaccruing TDRs:

Commercial:
Energy	$	2,304	$	2,304	$	—	$	—
Services	9,027		8,210		817		148
Wholesale/retail	2,758		2,706		52		9
Manufacturing	282		282		—		—
Healthcare	673		673		—		—
Other commercial and industrial	621		89		532		—
Total commercial	15,665		14,264		1,401		157

Commercial real estate:
Residential construction and land development	2,328		1,556		772		—
Retail	1,319		942		377		—
Office	165		165		—		—
Multifamily	—		—		—		—
Industrial	—		—		—		—
Other real estate loans	920		478		442		—
Total commercial real estate	4,732		3,141		1,591		—

Residential mortgage:
Permanent mortgage	16,618		9,043		7,575		68
Permanent mortgage guaranteed by U.S. government agencies	11,136		139		10,997		—
Home equity	5,159		4,218		941		—
Total residential mortgage	32,913		13,400		19,513		68

Personal	324		297		27		—

Total nonaccuring TDRs	$	53,634	$	31,102	$	22,532	$	225

Accruing TDRs:
Permanent mortgages guaranteed by U.S. government agencies	74,050		23,029		51,021		—

Total TDRs	$	127,684	$	54,131	$	73,553	$	225

A summary of troubled debt restructurings by accruing status as of June 30, 2015 is as follows (in thousands):



	As of June 30, 2015								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, 2015		Six Months Ended June 30, 2015
Nonaccruing TDRs:

Commercial:
Energy	$	1,176	$	1,176	$	—	$	—	$	—	$	—
Services	9,541		8,641		900		148		—		—
Wholesale/retail	3,064		2,984		80		9		—		—
Manufacturing	311		311		—		—		—		—
Healthcare	706		706		—		—		—		—
Other commercial and industrial	613		81		532		—		—		—
Total commercial	15,411		13,899		1,512		157		—		—

Commercial real estate:
Residential construction and land development	7,027		4,790		2,237		—		—		—
Retail	3,524		977		2,547		—		—		—
Office	1,360		—		1,360		—		—		—
Multifamily	—		—		—		—		—		—
Industrial	—		—		—		—		—		—
Other real estate loans	1,376		1,376		—		—		—		—
Total commercial real estate	13,287		7,143		6,144		—		—		—

Residential mortgage:
Permanent mortgage	15,671		10,326		5,345		100		2		3
Permanent mortgage guaranteed by U.S. government agencies	2,058		141		1,917		—		—		—
Home equity	5,318		4,549		769		—		48		58
Total residential mortgage	23,047		15,016		8,031		100		50		61

Personal	420		266		154		—		2		2

Total nonaccruing TDRs	$	52,165	$	36,324	$	15,841	$	257	$	52	$	63

Accruing TDRs:
Permanent mortgages guaranteed by U.S. government agencies	82,368		27,032		55,336		—		—		—

Total TDRs	$	134,533	$	63,356	$	71,177	$	257	$	52	$	63

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, 2016 by class that were restructured during the three months ended June 30, 2016 by primary type of concession (in thousands):



	Three Months Ended June 30, 2016
	Accruing							Nonaccrual						Total
		Payment Stream		Combination & Other		Total		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		—		—		—		684		1,183		1,867		1,867
Permanent mortgage guaranteed by U.S. government agencies		2,783		4,455		7,238		—		625		625		7,863
Home equity		—		—		—		48		329		377		377
Total residential mortgage		2,783		4,455		7,238		732		2,137		2,869		10,107

Personal		—		—		—		—		65		65		65

Total		$	2,783	$	4,455	$	7,238	$	732	$	2,202	$	2,934	$	10,172

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, 2016 by class that were restructured during the six months ended June 30, 2016 by primary type of concession (in thousands):



	Six Months Ended June 30, 2016
	Accruing							Nonaccrual						Total
		Payment Stream		Combination & Other		Total		Payment Stream		Combination & Other		Total
Commercial:
Energy		$	—	$	—	$	—	$	501	$	—	$	501	$	501
Services		—		—		—		—		—		—		—
Wholesale/retail		—		—		—		—		—		—		—
Manufacturing		—		—		—		—		—		—		—
Healthcare		—		—		—		—		—		—		—
Other commercial and industrial		—		—		—		—		—		—		—
Total commercial		—		—		—		501		—		501		501

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

Residential mortgage:
Permanent mortgage		—		—		—		1,046		1,244		2,290		2,290
Permanent mortgage guaranteed by U.S. government agencies		6,625		7,818		14,443		—		625		625		15,068
Home equity		—		—		—		48		791		839		839
Total residential mortgage		6,625		7,818		14,443		1,094		2,660		3,754		18,197

Personal		—		—		—		—		72		72		72

Total		$	6,625	$	7,818	$	14,443	$	1,595	$	2,732	$	4,327	$	18,770

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 three months ended June 30, 2015 by primary type of concession (in thousands):



	Three Months Ended June 30, 2015
	Accruing						Nonaccrual								Total
	Payment Stream		Combination & Other		Total		Interest Rate		Payment Stream		Combination & Other		Total
Commercial:
Energy	$	—	$	—	$	—	$	—	$	1,176	$	—	$	1,176	$	1,176
Services	—		—		—		—		—		7,972		7,972		7,972
Wholesale/retail	—		—		—		—		—		—		—		—
Manufacturing	—		—		—		—		—		—		—		—
Healthcare	—		—		—		706		—		—		706		706
Other commercial and industrial	—		—		—		—		—		—		—		—
Total commercial	—		—		—		706		1,176		7,972		9,854		9,854

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

Residential mortgage:
Permanent mortgage	—		—		—		—		57		475		532		532
Permanent mortgage guaranteed by U.S. government agencies	5,532		7,404		12,936		—		—		—		—		12,936
Home equity	—		—		—		—		—		578		578		578
Total residential mortgage	5,532		7,404		12,936		—		57		1,053		1,110		14,046

Personal	—		—		—		—		—		89		89		89

Total	$	5,532	$	7,404	$	12,936	$	706	$	1,233	$	9,114	$	11,053	$	23,989

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 six months ended June 30, 2015 by primary type of concession (in thousands):



	Six Months Ended June 30, 2015
	Accruing						Nonaccrual								Total
	Payment Stream		Combination & Other		Total		Interest Rate		Payment Stream		Combination & Other		Total
Commercial:
Energy	$	—	$	—	$	—	$	—	$	1,176	$	—	$	1,176	$	1,176
Services	—		—		—		—		—		7,972		7,972		7,972
Wholesale/retail	—		—		—		—		—		—		—		—
Manufacturing	—		—		—		—		—		—		—		—
Healthcare	—		—		—		706		—		—		706		706
Other commercial and industrial	—		—		—		—		—		—		—		—
Total commercial	—		—		—		706		1,176		7,972		9,854		9,854

Commercial real estate:
Residential construction and land development	—		—		—		—		4,581		—		4,581		4,581
Retail	—		—		—		—		—		—		—		—
Office	—		—		—		—		—		—		—		—
Multifamily	—		—		—		—		—		—		—		—
Industrial	—		—		—		—		—		—		—		—
Other real estate loans	—		—		—		—		—		—		—		—
Total commercial real estate	—		—		—		—		4,581		—		4,581		4,581

Residential mortgage:
Permanent mortgage	—		—		—		—		707		1,091		1,798		1,798
Permanent mortgage guaranteed by U.S. government agencies	11,904		11,215		23,119		—		—		843		843		23,962
Home equity	—		—		—		61		149		1,182		1,392		1,392
Total residential mortgage	11,904		11,215		23,119		61		856		3,116		4,033		27,152

Personal	—		—		—		—		—		121		121		121

Total	$	11,904	$	11,215	$	23,119	$	767	$	6,613	$	11,209	$	18,589	$	41,708

The following table summarizes, by loan class, the recorded investment at June 30, 2016 and 2015, respectively, 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, 2016 and 2015, respectively (in thousands):



	Three Months Ended June 30, 2016						Six Months Ended June 30, 2016
	Accruing		Nonaccrual		Total		Accruing		Nonaccrual		Total
Commercial:
Energy	$	—	$	2,246	$	2,246	$	—	$	2,246	$	2,246
Services	—		—		—		—		—		—
Wholesale/retail	—		—		—		—		—		—
Manufacturing	—		—		—		—		—		—
Healthcare	—		—		—		—		—		—
Other commercial and industrial	—		—		—		—		—		—
Total commercial	—		2,246		2,246		—		2,246		2,246

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

Residential mortgage:
Permanent mortgage	—		788		788		—		1,806		1,806
Permanent mortgage guaranteed by U.S. government agencies	18,893		1,006		19,899		20,621		1,006		21,627
Home equity	—		232		232		—		232		232
Total residential mortgage	18,893		2,026		20,919		20,621		3,044		23,665

Personal	—		—		—		—		—		—

Total	$	18,893	$	4,272	$	23,165	$	20,621	$	5,290	$	25,911

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.



	Three Months Ended June 30, 2015						Six Months Ended June 30, 2015
	Accruing		Nonaccrual		Total		Accruing		Nonaccrual		Total
Commercial:
Energy	$	—	$	—	$	—	$	—	$	—	$	—
Services	—		—		—		—		—		—
Wholesale/retail	—		—		—		—		—		—
Manufacturing	—		—		—		—		—		—
Healthcare	—		—		—		—		—		—
Other commercial and industrial	—		—		—		—		—		—
Total commercial	—		—		—		—		—		—

Commercial real estate:
Residential construction and land development	—		—		—		—		337		337
Retail	—		—		—		—		—		—
Office	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
Industrial	—		—		—		—		—		—
Other real estate loans	—		—		—		—		—		—
Total commercial real estate	—		—		—		—		337		337

Residential mortgage:
Permanent mortgage	—		1,341		1,341		—		1,796		1,796
Permanent mortgage guaranteed by U.S. government agencies	29,741		1,112		30,853		31,715		1,252		32,967
Home equity	—		479		479		—		503		503
Total residential mortgage	29,741		2,932		32,673		31,715		3,551		35,266

Personal	—		30		30		—		30		30

Total	$	29,741	$	2,962	$	32,703	$	31,715	$	3,918	$	35,633

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, 2016 is as follows (in thousands):



			Past Due
	Current		30 to 89 Days		90 Days or More		Nonaccrual		Total
Commercial:
Energy	$	2,647,678	$	—	$	2,833	$	168,145	$	2,818,656
Services	2,817,217		4,259		—		9,388		2,830,864
Wholesale/retail	1,530,110		75		—		2,772		1,532,957
Manufacturing	595,110		—		—		293		595,403
Healthcare	2,050,271		—		—		875		2,051,146
Other commercial and industrial	526,691		158		46		516		527,411
Total commercial	10,167,077		4,492		2,879		181,989		10,356,437

Commercial real estate:
Residential construction and land development	153,315		—		—		4,261		157,576
Retail	794,154		—		—		1,265		795,419
Office	768,506		—		—		606		769,112
Multifamily	784,826		2,309		—		65		787,200
Industrial	645,510		—		—		76		645,586
Other real estate loans	425,566		—		—		1,507		427,073
Total commercial real estate	3,571,877		2,309		—		7,780		3,581,966

Residential mortgage:
Permanent mortgage	935,857		5,922		—		27,228		969,007
Permanent mortgages guaranteed by U.S. government agencies	42,019		27,218		103,754		19,741		192,732
Home equity	707,024		2,048		20		10,092		719,184
Total residential mortgage	1,684,900		35,188		103,774		57,061		1,880,923

Personal	586,611		458		—		354		587,423

Total	$	16,010,465	$	42,447	$	106,653	$	247,184	$	16,406,749

A summary of loans currently performing, loans past due and accruing and nonaccrual loans as of December 31, 2015 is as follows (in thousands):



			Past Due
	Current		30 to 89 Days		90 Days or More		Nonaccrual		Total
Commercial:
Energy	$	3,033,504	$	2,635	$	—	$	61,189	$	3,097,328
Services	2,769,895		4,091		—		10,290		2,784,276
Wholesale/retail	1,418,396		49		700		2,919		1,422,064
Manufacturing	556,398		—		—		331		556,729
Healthcare	1,879,873		2,435		—		1,072		1,883,380
Other commercial and industrial	507,929		100		102		623		508,754
Total commercial	10,165,995		9,310		802		76,424		10,252,531

Commercial real estate:
Residential construction and land development	156,017		—		—		4,409		160,426
Retail	795,180		—		—		1,319		796,499
Office	637,056		—		—		651		637,707
Multifamily	742,697		8,114		—		274		751,085
Industrial	563,093		—		—		76		563,169
Other real estate loans	347,498		—		377		2,272		350,147
Total commercial real estate	3,241,541		8,114		377		9,001		3,259,033

Residential mortgage:
Permanent mortgage	913,062		3,290		—		28,984		945,336
Permanent mortgages guaranteed by U.S. government agencies	33,653		30,383		111,001		21,900		196,937
Home equity	721,149		3,095		20		10,356		734,620
Total residential mortgage	1,667,864		36,768		111,021		61,240		1,876,893

Personal	551,533		693		8		463		552,697

Total	$	15,626,933	$	54,885	$	112,208	$	147,128	$	15,941,154

A summary of loans currently performing, loans past due and accruing and nonaccrual loans as of June 30, 2015 is as follows (in thousands):



			Past Due
	Current		30 to 89 Days		90 Days or More		Nonaccrual		Total
Commercial:
Energy	$	2,895,302	$	—	$	—	$	6,841	$	2,902,143
Services	2,665,133		5,049		—		10,944		2,681,126
Wholesale/retail	1,529,477		87		—		4,166		1,533,730
Manufacturing	579,170		—		—		379		579,549
Healthcare	1,644,747		—		—		1,278		1,646,025
Other commercial and industrial	432,159		364		—		625		433,148
Total commercial	9,745,988		5,500		—		24,233		9,775,721

Commercial real estate:
Residential construction and land development	139,207		—		—		9,367		148,574
Retail	684,621		—		—		3,826		688,447
Office	560,725		—		—		2,360		563,085
Multifamily	710,486		652		—		195		711,333
Industrial	487,978		—		—		76		488,054
Other real estate loans	429,689		—		—		4,315		434,004
Total commercial real estate	3,012,706		652		—		20,139		3,033,497

Residential mortgage:
Permanent mortgage	907,860		6,277		—		32,187		946,324
Permanent mortgages guaranteed by U.S. government agencies	38,524		24,660		123,938		3,717		190,839
Home equity	734,837		2,564		99		10,065		747,565
Total residential mortgage	1,681,221		33,501		124,037		45,969		1,884,728

Personal	429,214		426		—		550		430,190

Total	$	14,869,129	$	40,079	$	124,037	$	90,891	$	15,124,136