ALLOWANCE FOR LOAN AND LEASE LOSSES

3 Months Ended

Mar. 31, 2016

ALLOWANCE FOR LOAN AND LEASE LOSSES

NOTE7 – ALLOWANCEFORLOANAND LEASELOSSES

The changes in the allowance for loan and lease losses were as follows:
(In thousands)	Residential Mortgage Loans		Commercial Mortgage Loans		Commercial & Industrial Loans		Construction Loans		Consumer Loans		Total
Quarter ended March 31, 2016
Allowance for loan and lease losses:
Beginning balance	$	39,570	$	68,211	$	68,768	$	3,519	$	60,642	$	240,710
Charge-offs		(7,306)		(575)		(3,759)		(91)		(14,804)		(26,535)
Recoveries		346		46		280		17		2,208		2,897
Provision (release)		5,938		1,062		5,809		(432)		8,676		21,053
Ending balance	$	38,548	$	68,744	$	71,098	$	3,013	$	56,722	$	238,125
Ending balance: specific reserve for
impaired loans	$	16,150	$	36,007	$	18,749	$	1,202	$	9,387	$	81,495
Ending balance: purchased credit-impaired loans (1)	$	4,423	$	145	$	-	$	-	$	-	$	4,568
Ending balance: general allowance	$	17,975	$	32,592	$	52,349	$	1,811	$	47,335	$	152,062
Loans held for investment:
Ending balance	$	3,330,945	$	1,524,491	$	2,343,416	$	146,129	$	1,786,361	$	9,131,342
Ending balance: impaired loans	$	461,606	$	191,251	$	168,160	$	52,938	$	43,636	$	917,591
Ending balance: purchased credit-
impaired loans	$	169,190	$	3,142	$	-	$	-	$	-	$	172,332
Ending balance: loans with general allowance	$	2,700,149	$	1,330,098	$	2,175,256	$	93,191	$	1,742,725	$	8,041,419
(1) Refer to Note 6 - Loans Held for Investment-PCI loans for a detail of changes in the allowance for loan losses related to PCI loans.

(In thousands)	Residential Mortgage Loans		Commercial Mortgage Loans		Commercial & Industrial Loans		Construction Loans		Consumer Loans		Total
Quarter ended March 31, 2015
Allowance for loan and lease losses:
Beginning balance	$	27,301	$	50,894	$	63,721	$	12,822	$	67,657	$	222,395
Charge-offs		(5,192)		(4,006)		(4,453)		(605)		(17,757)		(32,013)
Recoveries		98		276		558		207		1,573		2,712
Provision (release)		6,475		(2,137)		10,353		1,215		17,064		32,970
Ending balance	$	28,682	$	45,027	$	70,179	$	13,639	$	68,537	$	226,064
Ending balance: specific reserve for
impaired loans	$	14,862	$	13,238	$	24,871	$	3,381	$	5,788	$	62,140
Ending balance: purchased credit-impaired loans	$	-	$	-	$	-	$	-	$	-	$	-
Ending balance: general allowance	$	13,820	$	31,789	$	45,308	$	10,258	$	62,749	$	163,924
Loans held for investment:
Ending balance	$	3,331,620	$	1,649,263	$	2,442,867	$	124,440	$	1,937,182	$	9,485,372
Ending balance: impaired loans	$	429,526	$	224,365	$	226,656	$	37,593	$	36,841	$	954,981
Ending balance: purchased credit-
impaired loans	$	177,601	$	3,279	$	-	$	-	$	234	$	181,114
Ending balance: loans with general allowance	$	2,724,493	$	1,421,619	$	2,216,211	$	86,847	$	1,900,107	$	8,349,277

Asof March 31, 2016, the Corporation maintained a $1.3 million reserve for unfunded loan commitments mainly related to outstanding commercial loan commitments and a floor plan revolving line of credit. The reserve for unfunded loan commitments is an estimate of the losses inherent in off-balance sheet loan commitments to borrowers that are experiencing financial difficulties at the balance sheet date. It is calculated by multiplying an estimated loss factor by an estimated probability of funding, and then by the period-end amounts for unfunded commitments. The reserve for unfunded loan commitments is included as part of accounts payable and other liabilities in the consolidated statement of financial condition.