Annual report pursuant to Section 13 and 15(d)

Loans and Leases

v3.6.0.2
Loans and Leases
12 Months Ended
Dec. 31, 2016
Receivables [Abstract]  
Loans and Leases
Loans and Leases
The Board of Directors and management review and approve the Bank’s loan and lease policy and procedures on a regular basis to reflect issues such as regulatory and organizational structure changes, strategic planning revisions, concentrations of credit, loan and lease delinquencies and nonperforming loans and leases, problem loans and leases, and policy adjustments.
Real estate loans are loans secured by liens or interest in real estate, to provide purchase, construction, and refinance on real estate properties. Commercial and industrial loans consist of commercial term loans, commercial lines of credit, and Small Business Administration (“SBA”) loans. Leases receivables include equipment finance agreements which are typically secured by the business assets being financed. Consumer loans consist of auto loans, credit cards, personal loans, and home equity lines of credit. We maintain management loan review and monitoring departments that review and monitor pass graded loans as well as problem loans to prevent further deterioration.
Concentrations of Credit: The majority of the Bank’s loan and lease portfolio consists of commercial real estate and commercial and industrial loans. The Bank has been diversifying and monitoring commercial real estate loans based on property types, tightening underwriting standards, and portfolio liquidity and management, and has not exceeded certain specified limits set forth in the Bank’s loan and lease policy.
Loans and leases receivable
Loans and leases receivable consisted of the following as of the dates indicated:
 
December 31, 2016
 
December 31, 2015
 
Non-PCI Loans and Leases
 
PCI Loans
 
Total
 
Non-PCI Loans and Leases
 
PCI Loans
 
Total
 
(In thousands)
Real estate loans:
 
 
 
 
 
 
 
 
 
 
 
Commercial property
 
 
 
 
 
 
 
 
 
 
 
Retail
$
857,629

 
$
2,324

 
$
859,953

 
$
735,501

 
$
4,849

 
$
740,350

Hotel/motel
649,540

 
1,618

 
651,158

 
539,345

 
4,080

 
543,425

Gas station
260,187

 
2,692

 
262,879

 
319,363

 
4,292

 
323,655

Other (1)
1,107,589

 
2,067

 
1,109,656

 
973,243

 
5,418

 
978,661

Construction
55,962

 

 
55,962

 
23,387

 

 
23,387

Residential property
337,791

 
976

 
338,767

 
234,879

 
1,157

 
236,036

Total real estate loans
3,268,698

 
9,677

 
3,278,375

 
2,825,718

 
19,796

 
2,845,514

Commercial and industrial loans:
 
 
 
 
 
 
 
 
 
 
 
Commercial term
138,032

 
136

 
138,168

 
152,602

 
171

 
152,773

Commercial lines of credit
136,231

 

 
136,231

 
128,224

 

 
128,224

International loans
25,821

 

 
25,821

 
31,879

 

 
31,879

Total commercial and industrial loans
300,084

 
136

 
300,220

 
312,705

 
171

 
312,876

Leases receivable
243,294

 

 
243,294

 

 

 

Consumer loans (2)
22,830

 
50

 
22,880

 
24,879

 
47

 
24,926

Total loans and leases
3,834,906

 
9,863

 
3,844,769

 
3,163,302

 
20,014

 
3,183,316

Allowance for loan and lease losses
(31,458
)
 
(971
)
 
(32,429
)
 
(37,494
)
 
(5,441
)
 
(42,935
)
Loans and leases receivable, net
$
3,803,448

 
$
8,892

 
$
3,812,340

 
$
3,125,808

 
$
14,573

 
$
3,140,381

 
 
(1)
Includes, among other property types, mixed-use, apartment, office, industrial, faith-based facilities and warehouse; the remaining real estate categories represents less than one percent of the Bank's total loans and leases.
(2)
Consumer loans include home equity lines of credit of $17.7 million and $21.8 million as of December 31, 2016 and 2015, respectively.
Accrued interest on loans and leases receivable was $8.2 million and $7.9 million at December 31, 2016 and 2015, respectively. At December 31, 2016 and 2015, loans and leases receivable totaling $1.0 billion and $557.7 million, respectively, were pledged to secure advances from the FHLB and the FRB’s discount window.
The following table details the information on the sales and reclassifications of loans receivable to loans held for sale (excluding PCI loans) by portfolio segment for the years ended December 31, 2016 and 2015:
 
Real Estate
 
Commercial and
Industrial
 
Total
Non-PCI
 
(In thousands)
December 31, 2016
 
 
 
 
 
Balance at beginning of period
$
840

 
$
2,034

 
$
2,874

Origination of loans held for sale
65,416

 
25,951

 
91,367

Sales of loans held for sale
(58,836
)
 
(26,065
)
 
(84,901
)
Principal payoffs and amortization
(10
)
 
(14
)
 
(24
)
Balance at end of period
$
7,410

 
$
1,906

 
$
9,316

 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
Balance at beginning of period
$
3,323

 
$
2,128

 
$
5,451

Origination of loans held for sale
56,247

 
30,410

 
86,657

Reclassification from loans receivable to loans held for sale
360

 

 
360

Sales of loans held for sale
(59,030
)
 
(30,441
)
 
(89,471
)
Principal payoffs and amortization
(60
)
 
(63
)
 
(123
)
Balance at end of period
$
840

 
$
2,034

 
$
2,874


Allowance for Loan and Lease Losses
Activity in the allowance for loan and lease losses and allowance for off-balance sheet items was as follows for the periods indicated:
 
Non-PCI Loans and Leases
 
PCI Loans
 
Total
As of and for the Year Ended December 31, 2016
(In thousands)
Balance at beginning of period
$
37,494

 
$
5,441

 
$
42,935

Charge-offs
(3,736
)
 
(5,133
)
 
(8,869
)
Recoveries on loans and leases previously charged off
2,702

 

 
2,702

Net loan and lease recoveries (charge-offs)
(1,034
)
 
(5,133
)
 
(6,167
)
(Negative provision) provision charged to operating expense
(5,002
)
 
663

 
(4,339
)
Balance at end of period
$
31,458

 
$
971

 
$
32,429

 
 
 
 
 
 
As of and for the Year Ended December 31, 2015
 
 
 
 
 
Balance at beginning of period
$
51,640

 
$
1,026

 
$
52,666

Charge-offs
(3,531
)
 

 
(3,531
)
Recoveries on loans and leases previously charged off
5,423

 

 
5,423

Net loan and lease recoveries (charge-offs)
1,892

 

 
1,892

(Negative provision) provision charged to operating expense
(16,038
)
 
4,415

 
(11,623
)
Balance at end of period
$
37,494

 
$
5,441

 
$
42,935

 
 
 
 
 
 
As of and for the Year Ended December 31, 2014
 
 
 
 
 
Balance at beginning of period
$
57,555

 
$

 
$
57,555

Charge-offs
(6,992
)
 

 
(6,992
)
Recoveries on loans and leases previously charged off
8,361

 

 
8,361

Net loan and lease recoveries (charge-offs)
1,369

 

 
1,369

(Negative provision) provision charged to operating expense
(7,284
)
 
1,026

 
(6,258
)
Balance at end of period
$
51,640

 
$
1,026

 
$
52,666


The following table details the information on the allowance for loan and lease losses on non-PCI loans leases by portfolio segment for the years ended December 31, 2016 and 2015:
 
Real Estate
 
Commercial
and Industrial
 
Leases
Receivable
 
Consumer
 
Unallocated
 
Total
 
(In thousands)
December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses on non-PCI loans and leases:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
29,800

 
$
7,081

 

 
$
242

 
$
371

 
$
37,494

Charge-offs
(3,022
)
 
(706
)
 
(6
)
 
(2
)
 

 
(3,736
)
Recoveries on loans and leases previously charged off
667

 
1,978

 
1

 
56

 

 
2,702

(Negative provision) provision
(2,233
)
 
(2,771
)
 
312

 
(105
)
 
(205
)
 
(5,002
)
Ending balance
$
25,212

 
$
5,582

 
$
307

 
$
191

 
$
166

 
$
31,458

Ending balance: individually evaluated for impairment
$
3,980

 
$
347

 
$

 
$

 
$

 
$
4,327

Ending balance: collectively evaluated for impairment
$
21,232

 
$
5,235

 
$
307

 
$
191

 
$
166

 
$
27,131

Non-PCI loans and leases receivable:
 
 
 
 
 
 
 
 
 
 
 
Ending balance
$
3,268,698

 
$
300,084

 
$
243,294

 
$
22,830

 
$

 
$
3,834,906

Ending balance: individually evaluated for impairment
$
21,757

 
$
4,174

 
$

 
$
419

 
$

 
$
26,350

Ending balance: collectively evaluated for impairment
$
3,246,941

 
$
295,910

 
$
243,294

 
$
22,411

 
$

 
$
3,808,556

 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses on PCI loans:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
5,397

 
$
42

 
$

 
$
2

 
$

 
$
5,441

Charge-offs
(5,133
)
 

 

 

 

 
(5,133
)
Provision
658

 
(1
)
 

 
6

 

 
663

Ending balance: acquired with deteriorated credit quality
$
922

 
$
41

 
$

 
$
8

 
$

 
$
971

PCI loans receivable:
 
 
 
 
 
 
 
 
 
 
 
Ending balance: acquired with deteriorated credit quality
$
9,677

 
$
136

 
$

 
$
50

 
$

 
$
9,863

 
Real Estate
 
Commercial
and Industrial
 
Consumer
 
Unallocated
 
Total
December 31, 2015
 
 
 
 
 
 
 
 
 
Allowance for loan and lease losses on non-PCI loans:
 
 
 
 
 
 
 
 
 
Beginning balance
$
41,194

 
$
9,142

 
$
220

 
$
1,084

 
$
51,640

Charge-offs
(565
)
 
(2,966
)
 

 

 
(3,531
)
Recoveries on loans and leases previously charged off
2,080

 
3,339

 
4

 

 
5,423

Provision (negative provision)
(12,909
)
 
(2,434
)
 
18

 
(713
)
 
(16,038
)
Ending balance
$
29,800

 
$
7,081

 
$
242

 
$
371

 
$
37,494

Ending balance: individually evaluated for impairment
$
3,858

 
$
587

 
$

 
$

 
$
4,445

Ending balance: collectively evaluated for impairment
$
25,942

 
$
6,494

 
$
242

 
$
371

 
$
33,049

Non-PCI loans and leases receivable:
 
 
 
 
 
 
 
 
 
Ending balance
$
2,825,718

 
$
312,705

 
$
24,879

 
$

 
$
3,163,302

Ending balance: individually evaluated for impairment
$
27,341

 
$
6,853

 
$
1,665

 
$

 
$
35,859

Ending balance: collectively evaluated for impairment
$
2,798,377

 
$
305,852

 
$
23,214

 
$

 
$
3,127,443

Allowance for loan losses on PCI loans:
 
 
 
 
 
 
 
 
 
Beginning balance
$
895

 
$
131

 
$

 
$

 
$
1,026

Provision
4,502

 
(89
)
 
2

 

 
4,415

Ending balance: acquired with deteriorated credit quality
$
5,397

 
$
42

 
$
2

 
$

 
$
5,441

PCI loans receivable:
 
 
 
 
 
 
 
 
 
Ending balance: acquired with deteriorated credit quality
$
19,796

 
$
171

 
$
47

 
$

 
$
20,014


Loan Quality Indicators
As part of the on-going monitoring of the quality of our loan and lease portfolio, we utilize an internal loan and lease grading system to identify credit risk and assign an appropriate grade (from 0 to (8)) for each and every loan or lease in our loan and lease portfolio. A third-party loan review is required on an annual basis. Additional adjustments are made when determined to be necessary. The loan and lease grade definitions are as follows:
Pass and Pass-Watch: Pass and Pass-Watch loans and leases, grades (0-4), are in compliance with the Bank’s credit policy and regulatory requirements, and do not exhibit any potential or defined weaknesses as defined under “Special Mention,” “Substandard” or “Doubtful.” This category is the strongest level of the Bank’s loan and lease grading system. It consists of all performing loans and lease with no identified credit weaknesses. It includes cash and stock/security secured loans or other investment grade loans.
Special Mention: A Special Mention loan or lease, grade (5), has potential weaknesses that deserve management’s close attention. If not corrected, these potential weaknesses may result in deterioration of the repayment of the debt and result in a Substandard classification. Loans and leases that have significant actual, not potential, weaknesses are considered more severely classified.
Substandard: A Substandard loan or lease, grade (6), has a well-defined weakness that jeopardizes the liquidation of the debt. A loan or lease graded Substandard is not protected by the sound worth and paying capacity of the borrower, or of the value and type of collateral pledged. With a Substandard loan or lease, there is a distinct possibility that the Bank will sustain some loss if the weaknesses or deficiencies are not corrected.
Doubtful: A Doubtful loan or lease, grade (7), is one that has critical weaknesses that would make the collection or liquidation of the full amount due improbable. However, there may be pending events which may work to strengthen the loan or lease, and therefore the amount or timing of a possible loss cannot be determined at the current time.
Loss: A loan or lease classified as Loss, grade (8), is considered uncollectible and of such little value that their continuance as active bank assets is not warranted. This classification does not mean that the loan or lease has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this asset even though partial recovery may be possible in the future. Loans and leases classified as Loss will be charged off in a timely manner.
As of December 31, 2016 and 2015, pass/pass-watch, special mention and classified (substandard and doubtful) loans and leases (excluding PCI loans), disaggregated by loan class, were as follows:
 
Pass/Pass-Watch
 
Special Mention
 
Classified
 
Total
 
(In thousands)
December 31, 2016
 
 
 
 
 
 
 
Real estate loans:
 
 
 
 
 
 
 
Commercial property
 
 
 
 
 
 
 
Retail
$
851,147

 
$
2,275

 
$
4,207

 
$
857,629

Hotel/motel
634,397

 
5,497

 
9,646

 
649,540

Gas station
252,123

 
1,911

 
6,153

 
260,187

Other
1,100,070

 
1,645

 
5,874

 
1,107,589

Construction
55,962

 

 

 
55,962

Residential property
337,227

 

 
564

 
337,791

Commercial and industrial loans:
 
 
 
 
 
 
 
Commercial term
133,811

 
2,060

 
2,161

 
138,032

Commercial lines of credit
135,699

 
464

 
68

 
136,231

International loans
23,406

 
2,415

 

 
25,821

Leases receivable
242,393

 

 
901

 
243,294

Consumer loans
22,139

 

 
691

 
22,830

Total Non-PCI loans and leases
$
3,788,374


$
16,267


$
30,265


$
3,834,906

 
 
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
Real estate loans:
 
 
 
 
 
 
 
Commercial property
 
 
 
 
 
 
 
Retail
$
722,483

 
$
9,519

 
$
3,499

 
$
735,501

Hotel/motel
517,462

 
9,604

 
12,279

 
539,345

Gas station
309,598

 
5,897

 
3,868

 
319,363

Other
953,839

 
8,662

 
10,742

 
973,243

Construction
23,387

 

 

 
23,387

Residential property
232,862

 
58

 
1,959

 
234,879

Commercial and industrial loans:
 
 
 
 
 
 
 
Commercial term
145,773

 
2,370

 
4,459

 
152,602

Commercial lines of credit
127,579

 
195

 
450

 
128,224

International loans
29,719

 
2,160

 

 
31,879

Consumer loans
22,707

 
91

 
2,081

 
24,879

Total Non-PCI loans and leases
$
3,085,409


$
38,556


$
39,337


$
3,163,302


The following is an aging analysis of gross loans and leases (excluding PCI loans), disaggregated by loan class, as of the dates indicated:
 
30-59 Days Past
Due
 
60-89 Days Past
Due
 
90 Days or
More Past Due
 
Total Past Due
 
Current
 
Total
 
Accruing 90
Days or More
Past Due
 
(In thousands)
December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial property
 
 
 
 
 
 
 
 
 
 
 
 
 
Retail
$
9

 
$
137

 
$
234

 
$
380

 
$
857,249

 
$
857,629

 
$

Hotel/motel
1,037

 
46

 
600

 
1,683

 
647,857

 
649,540

 

Gas station
245

 
643

 
137

 
1,025

 
259,162

 
260,187

 

Other
432

 
79

 
1,100

 
1,611

 
1,105,978

 
1,107,589

 

Construction

 

 

 

 
55,962

 
55,962

 

Residential property
730

 
89

 
423

 
1,242

 
336,549

 
337,791

 

Commercial and industrial loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial term
484

 
42

 
111

 
637

 
137,395

 
138,032

 

Commercial lines of credit

 

 

 

 
136,231

 
136,231

 

International loans
80

 

 

 
80

 
25,741

 
25,821

 

Leases receivable
2,090

 
1,043

 
385

 
3,518

 
239,776

 
243,294

 
 
Consumer loans
170

 

 

 
170

 
22,660

 
22,830

 

Total Non-PCI loans
$
5,277

 
$
2,079

 
$
2,990

 
$
10,346

 
$
3,824,560

 
$
3,834,906

 
$

 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial property
 
 
 
 
 
 
 
 
 
 
 
 
 
Retail
$
441

 
$
343

 
$
399

 
$
1,183

 
$
734,318

 
$
735,501

 
$

Hotel/motel
1,250

 
49

 
3,840

 
5,139

 
534,206

 
539,345

 

Gas station
959

 
406

 
1,517

 
2,882

 
316,481

 
319,363

 

Other
1,144

 
661

 
1,636

 
3,441

 
969,802

 
973,243

 

Construction

 

 

 

 
23,387

 
23,387

 

Residential property

 

 
396

 
396

 
234,483

 
234,879

 

Commercial and industrial loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial term
420

 
253

 
458

 
1,131

 
151,471

 
152,602

 

Commercial lines of credit
58

 

 
392

 
450

 
127,774

 
128,224

 

International loans

 
497

 

 
497

 
31,382

 
31,879

 

Consumer loans
250

 
5

 

 
255

 
24,624

 
24,879

 

Total Non-PCI loans
$
4,522

 
$
2,214

 
$
8,638

 
$
15,374

 
$
3,147,928

 
$
3,163,302

 
$


Impaired Loans
Loans are considered impaired when nonaccrual and principal or interest payments have been contractually past due for 90 days or more, unless the loan is both well-collateralized and in the process of collection; or they are classified as TDR loans to offer terms not typically granted by the Bank; or when current information or events make it unlikely to collect in full according to the contractual terms of the loan agreements; or there is a deterioration in the borrower’s financial condition that raises uncertainty as to timely collection of either principal or interest; or full payment of both interest and principal is in doubt according to the original contractual terms.
We evaluate loan impairment in accordance with applicable GAAP. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, as a practical expedient, at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent, less costs to sell. If the measure of the impaired loan is less than the recorded investment in the loan, the deficiency will be charged off against the allowance for loan losses or, alternatively, a specific allocation will be established. Additionally, loans that are considered impaired are specifically excluded from the quarterly migration analysis when determining the amount of the allowance for loan losses required for the period.
The allowance for collateral-dependent loans is determined by calculating the difference between the outstanding loan balance and the value of the collateral as determined by recent appraisals. The allowance for collateral-dependent loans varies from loan to loan based on the collateral coverage of the loan at the time of designation as nonperforming. We continue to monitor the collateral coverage, using recent appraisals, on these loans on a quarterly basis and adjust the allowance accordingly.
The following table provides information on impaired loans (excluding PCI loans), disaggregated by loan class, as of the dates indicated:
 
Recorded
Investment
 
Unpaid Principal
Balance
 
With No
Related
Allowance
Recorded
 
With an
Allowance
Recorded
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
 
 
 
 
(In thousands)
 
 
 
 
 
 
As of or for The Year Ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial property
 
 
 
 
 
 
 
 
 
 
 
 
 
Retail
$
1,678

 
$
1,684

 
$
151

 
$
1,527

 
$
120

 
$
2,243

 
$
141

Hotel/motel
6,227

 
6,823

 
2,243

 
3,984

 
3,078

 
4,887

 
454

Gas station
4,984

 
5,092

 
4,984

 

 

 
4,831

 
645

Other
6,070

 
6,808

 
3,127

 
2,943

 
782

 
7,104

 
681

Residential property
2,798

 
2,851

 
2,798

 

 

 
2,656

 
112

Commercial and industrial loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial term
4,106

 
4,171

 
1,229

 
2,877

 
347

 
4,815

 
307

Commercial lines of credit
68

 
68

 
68

 

 

 
45

 
14

International loans

 

 

 

 

 
315

 

Consumer loans
419

 
489

 
419

 

 

 
622

 
29

Total Non-PCI loans
$
26,350


$
27,986


$
15,019


$
11,331


$
4,327


$
27,518


$
2,383

 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of or for The Year Ended December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial property
 
 
 
 
 
 
 
 
 
 
 
 
 
Retail
$
2,597

 
$
2,892

 
$
2,435

 
$
162

 
$
27

 
$
3,878

 
$
277

Hotel/motel
7,168

 
7,538

 
2,873

 
4,295

 
3,068

 
6,628

 
572

Gas station
5,393

 
5,815

 
4,400

 
993

 
112

 
7,116

 
436

Other
9,288

 
10,810

 
7,219

 
2,069

 
647

 
10,218

 
795

Residential property
2,895

 
3,081

 
2,608

 
287

 
4

 
2,839

 
120

Commercial and industrial loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial term
5,257

 
5,621

 
1,858

 
3,399

 
457

 
6,637

 
368

Commercial lines of credit
381

 
493

 
280

 
101

 
100

 
1,515

 
42

International loans
1,215

 
1,215

 
647

 
568

 
30

 
1,257

 

Consumer loans
1,665

 
1,898

 
1,665

 

 

 
1,753

 
73

Total Non-PCI loans
$
35,859


$
39,363


$
23,985


$
11,874


$
4,445


$
41,841


$
2,683

 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of or for The Year Ended December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial property
 
 
 
 
 
 
 
 
 
 
 
 
 
Retail
$
4,436

 
$
4,546

 
$
1,938

 
$
2,498

 
$
220

 
$
5,373

 
$
251

Hotel/motel
5,835

 
6,426

 
4,581

 
1,254

 
1,828

 
4,583

 
398

Gas station
8,974

 
9,594

 
8,526

 
448

 
150

 
11,281

 
787

Other
10,125

 
11,591

 
8,890

 
1,235

 
319

 
10,579

 
885

Residential property
3,127

 
3,268

 
3,127

 

 

 
2,924

 
115

Commercial and industrial loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial term
7,614

 
8,133

 
2,999

 
4,615

 
2,443

 
9,458

 
566

Commercial lines of credit
466

 
575

 
466

 

 

 
1,205

 
66

International loans
3,546

 
3,546

 
2,628

 
918

 
286

 
1,736

 
33

Consumer loans
1,742

 
1,907

 
1,742

 

 

 
1,651

 
59

Total Non-PCI loans
$
45,865

 
$
49,586

 
$
34,897

 
$
10,968

 
$
5,246

 
$
48,790

 
$
3,160


The following is a summary of interest foregone on impaired loans (excluding PCI loans) for the periods indicated:
 
Year Ended December 31,
 
2016
 
2015
 
2014
 
(In thousands)
Interest income that would have been recognized had impaired loans performed in accordance with their original terms
$
3,053

 
$
4,168

 
$
4,468

Less: Interest income recognized on impaired loans
(2,383
)
 
(2,683
)
 
(3,160
)
Interest foregone on impaired loans
$
670


$
1,485


$
1,308


There were no commitments to lend additional funds to borrowers whose loans are included above.
Nonaccrual Loans and Leases
Loans and leases are placed on nonaccrual status when, in the opinion of management, the full timely collection of principal or interest is in doubt. Generally, the accrual of interest is discontinued when principal or interest payments become more than 90 days past due, unless management believes the loan is adequately collateralized and in the process of collection. However, in certain instances, we may place a particular loan or lease on nonaccrual status earlier, depending upon the individual circumstances surrounding the loan or lease’s delinquency. When a loan or lease is placed on nonaccrual status, previously accrued but unpaid interest is reversed against current income. Subsequent collections of cash are applied as principal reductions when received, except when the ultimate collectability of principal is probable, in which case interest payments are credited to income. Nonaccrual loans and leases may be restored to accrual status when principal and interest payments become current and full repayment is expected.
The following table details nonaccrual loans and leases (excluding PCI loans), disaggregated by loan class, as of the dates indicated:
 
As of December 31,
 
2016
 
2015
 
(In thousands)
Real estate loans:
 
 
 
Commercial property
 
 
 
Retail
$
404

 
$
946

Hotel/motel
5,266

 
5,790

Gas station
1,025

 
2,774

Other
2,033

 
4,068

Residential property
564

 
1,386

Commercial and industrial loans:
 
 
 
Commercial term
824

 
2,193

Commercial lines of credit

 
450

Leases receivable
901

 

Consumer loans
389

 
1,511

Total nonaccrual Non-PCI loans and leases
$
11,406


$
19,118


The following table details nonperforming assets (excluding PCI loans) as of the dates indicated:
 
As of December 31,
 
2016
 
2015
 
(In thousands)
Nonaccrual Non-PCI loans and leases
$
11,406

 
$
19,118

Loans and leases 90 days or more past due and still accruing

 

Total nonperforming Non-PCI loans and leases
11,406


19,118

Other real estate owned
7,484

 
8,511

Total nonperforming assets
$
18,890


$
27,629


As of December 31, 2016, OREO consisted of twelve properties with a combined carrying value of $7.5 million, including a $5.7 million OREO acquired in the CBI acquisition or were obtained as a result of PCI loan collateral foreclosures subsequent to the acquisition date. As of December 31, 2015, OREO consisted of fourteen properties with a combined carrying value of $8.5 million, including a $7.4 million OREO acquired in the CBI acquisition or were obtained as a result of PCI loan collateral foreclosures subsequent to the acquisition date.
Troubled Debt Restructuring
The following table details TDRs (excluding PCI loans), disaggregated by concession type and by loan type, as of December 31, 2016, 2015 and 2014:
 
Nonaccrual TDRs
 
Accrual TDRs
 
Deferral of
Principal
 
Deferral of
Principal and
Interest
 
Reduction of
Principal
and Interest
 
Extension of
Maturity
 
Total
 
Deferral of
Principal
 
Deferral of
Principal and
Interest
 
Reduction of
Principal
and Interest
 
Extension of
Maturity
 
Total
 
(In thousands)
December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial property
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retail
$

 
$

 
$

 
$

 
$

 
$

 
$

 
$
1,228

 


 
$
1,228

Hotel/motel
1,292

 
3,722

 

 

 
5,014

 

 

 

 


 

Gas station

 

 

 

 

 
1,324

 


 

 


 
1,324

Other
387

 
651

 
143

 

 
1,181

 
2,688

 


 
286

 
1,344

 
4,318

Residential property

 


 


 


 

 
783

 


 

 
289

 
1,072

Commercial and industrial loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial term
149

 
71

 
69

 
419

 
708

 
22

 
198

 
2,135

 
662

 
3,017

Commercial lines of credit

 


 

 

 

 

 


 


 
68

 
68

Consumer loans


 


 

 


 

 

 


 
119

 


 
119

Total Non-PCI loans
$
1,828


$
4,444


$
212


$
419


$
6,903


$
4,817


$
198


$
3,768


$
2,363


$
11,146

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial property
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retail
$

 
$

 
$

 
$
344

 
$
344

 
$

 
$

 
$
1,227

 
$

 
$
1,227

Hotel/motel
1,216

 
28

 

 

 
1,244

 
414

 

 

 

 
414

Gas station
959

 

 

 

 
959

 

 

 

 

 

Other

 
1,301

 
216

 
8

 
1,525

 
3,537

 

 
322

 
1,378

 
5,237