Loans

Loans outstanding as of June 30, 2015, December 31, 2014, and June 30, 2014, net of unearned income, consisted of the following:



(In thousands)		June 30, 2015			December 31, 2014			June 30, 2014
Originated loans:
Commercial		$	8,196,630		$	7,830,085		$	7,365,499
Residential mortgage		653,143			625,283			580,166
Installment		2,720,059			2,393,451			2,051,587
Home equity		1,180,802			1,110,336			998,179
Credit cards		168,576			164,478			151,967
Leases		436,702			370,179			319,795
	Total originated loans	13,355,912			12,493,812			11,467,193
Allowance for originated loan losses		(101,682		)	(95,696		)	(91,950		)
	Net originated loans	$	13,254,230		$	12,398,116		$	11,375,243
Acquired loans:
Commercial		$	877,598		$	1,086,899		$	1,457,903
Residential mortgage		358,559			394,484			425,584
Installment		659,348			764,168			872,034
Home equity		200,179			233,629			268,266
	Total acquired loans	2,095,684			2,479,180			3,023,787
Allowance for acquired loan losses		(4,950		)	(7,457		)	(4,977		)
	Net acquired loans	$	2,090,734		$	2,471,723		$	3,018,810
FDIC acquired loans:
Commercial		$	145,821		$	211,607		$	292,782
Residential mortgage		38,029			41,276			46,705
Installment		2,299			4,874			5,364
Home equity		55,545			73,365			89,815
Loss share receivable		11,820			22,033			43,981
	Total FDIC acquired loans	253,514			353,155			478,647
Allowance for FDIC acquired loan losses		(41,627		)	(40,496		)	(45,109		)
	Net FDIC acquired loans	$	211,887		$	312,659		$	433,538
Total loans:
Commercial		$	9,220,049		$	9,128,591		$	9,116,184
Residential mortgage		1,049,731			1,061,043			1,052,455
Installment		3,381,706			3,162,493			2,928,985
Home equity		1,436,526			1,417,330			1,356,260
Credit cards		168,576			164,478			151,967
Leases		436,702			370,179			319,795
Loss share receivable		11,820			22,033			43,981
	Total loans	15,705,110			15,326,147			14,969,627
Total allowance for loan losses		(148,259		)	(143,649		)	(142,036		)
	Total Net loans	$	15,556,851		$	15,182,498		$	14,827,591

The following describes the distinction between originated, acquired and FDIC acquired loan portfolios and certain significant accounting policies relevant to each of these portfolios.

Originated Loans

Loans originated for investment are stated at their principal amount outstanding adjusted for partial charge-offs, and net deferred loan fees and costs. Interest income on loans is accrued over the term of the loans primarily using the "simple-interest" method based on the principal balance outstanding. Interest is not accrued on loans where collectability is uncertain. Accrued interest is presented separately in the consolidated balance sheet, except for accrued interest on credit card loans, which is included in the outstanding loan balance. Loan origination fees and certain direct costs incurred to extend credit are deferred and amortized over the term of the loan or loan commitment period as an adjustment to the related loan yield. Net deferred loan origination fees and costs amounted to $5.4 million, $5.4 million, and $6.1 million at June 30, 2015, December 31, 2014, and June 30, 2014, respectively.

Acquired Loans

Acquired loans are those purchased in the Citizens acquisition. These loans were recorded at estimated fair value at the Acquisition Date with no carryover of the related ALL. The acquired loans were segregated as of the Acquisition Date between those considered to be performing (acquired nonimpaired loans) and those with evidence of credit deterioration (acquired impaired loans). Acquired loans are considered impaired if there is evidence of credit deterioration and if it is probable, at acquisition, all contractually required payments will not be collected. Revolving loans, including lines of credit, are excluded from acquired impaired loan accounting.

Total outstanding acquired impaired loans as of June 30, 2015 and 2014 were $504.7 million and $714.2 million, respectively. The outstanding balance of these loans is the undiscounted sum of all amounts, including amounts deemed principal, interest, fees, penalties, and other under the loans, owed at the reporting date, whether or not currently due and whether or not any such amounts have been charged off. Changes in the carrying amount and accretable yield for acquired impaired loans were as follows for the three and six months ended June 30, 2015 and 2014:



	Three Months Ended June 30,												Six Months Ended June 30,
Acquired Impaired Loans	2015						2014						2015						2014
(In thousands)	Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans
Balance at beginning of period	$	118,756		$	388,313		$	142,284		$	557,199		$	119,450		$	423,209		$	136,646		$	601,000
Accretion	(10,285		)	10,285			(12,746		)	12,746			(21,503		)	21,503			(24,487		)	24,487
Net reclassifications from nonaccretable to accretable	8,217			—			10,499			—			21,212			—			30,013			—
Payments received, net	—			(42,434		)	—			(50,695		)	—			(88,548		)	—			(106,237		)
Disposals	(4,657		)	—			(2,595		)	—			(7,128		)	—			(4,730		)	—
Balance at end of period	$	112,031		$	356,164		$	137,442		$	519,250		$	112,031		$	356,164		$	137,442		$	519,250

Cash flows expected to be collected on acquired impaired loans are estimated quarterly by incorporating several key assumptions similar to the initial estimate of fair value. These key assumptions include probability of default, and the amount of actual prepayments after the acquisition date. Prepayments affect the estimated life of the loans and could change the amount of interest income, and possibly principal expected to be collected. In reforecasting future estimated cash flows, credit loss expectations are adjusted as necessary.

Improved cash flow expectations for loans or pools that were impaired in prior periods are recorded first as a reversal of previously recorded impairment and then as an increase in prospective yield when all previously recorded impairment has been recaptured. Decreases in expected cash flows are recognized as an impairment through a provision for loan loss and an increase to the allowance for acquired impaired loans.

During the quarter ended June 30, 2015, there was an overall improvement in cash flow expectations, which resulted in the reclassification of $8.2 million from the nonaccretable difference to accretable yield. This reclassification results in prospective yield adjustments on these loan pools.

FDIC Acquired Loans and Related Loss Share Receivable

FDIC acquired loans include loans purchased in the 2010 FDIC-assisted acquisitions of George Washington and Midwest. George Washington and Midwest non-single family loss share agreements with the FDIC expired at March 31, 2015 and June 30, 2015, respectively, resulting in $2.6 million and $143.2 million of loans no longer being covered as of June 30, 2015. As of June 30, 2015, $13.1 million and $82.8 million of George Washington and Midwest loans, respectively, remained covered by single family loss share agreements.

Changes in the loss share receivable for the three and six months ended June 30, 2015 and 2014 were as follows:



Loss Share Receivable	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2015			2014			2015			2014
Balance at beginning of period	$	20,005		$	54,748		$	22,033		$	61,827
Amortization	(1,185		)	(4,185		)	(3,372		)	(10,048		)
Increase/(decrease) due to impairment (recapture) on FDIC acquired loans	1,819			(3,897		)	6,046			927
FDIC reimbursement	(8,713		)	(1,237		)	(12,726		)	(6,324		)
FDIC acquired loans paid in full	(106		)	(1,448		)	(161		)	(2,401		)
Balance at end of the period ⁽¹⁾	$	11,820		$	43,981		$	11,820		$	43,981

(1) As of June 30, 2015, the loss share receivable of $11.8 million was related to single family covered loans.

Total outstanding FDIC acquired impaired loans were $351.1 million and $637.6 million as of June 30, 2015 and 2014, respectively. The outstanding balance of these loans is the undiscounted sum of all amounts, including amounts deemed principal, interest, fees, penalties, and other under the loans, owed at the reporting date, whether or not currently due and whether or not any such amounts have been charged off. Changes in the carrying amount and accretable yield for FDIC acquired impaired loans were as follows for the three and six months ended June 30, 2015 and 2014:



	Three Months Ended June 30,												Six Months Ended June 30,
FDIC Acquired Impaired Loans	2015						2014						2015						2014
(In thousands)	Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans
Balance at beginning of period	$	29,867		$	199,225		$	63,003		$	364,488		$	37,511		$	232,452		$	67,282		$	403,692
Accretion	(4,100		)	4,100			(12,139		)	12,139			(9,667		)	9,667			(24,755		)	24,755
Net reclassifications between non-accretable and accretable	2,136			—			5,549			—			2,080			—			11,606			—
Payments received, net	—			(45,517		)	—			(60,146		)	—			(84,311		)	—			(111,966		)
(Disposals)/Additions	(1,753		)	—			(2,758		)	—			(3,774		)	—			(478		)	—
Balance at end of period	$	26,150		$	157,808		$	53,655		$	316,481		$	26,150		$	157,808		$	53,655		$	316,481

The cash flows expected to be collected on covered impaired loans are estimated quarterly in a similar manner as described above for acquired impaired loans. During the quarter ended June 30, 2015, the re-estimation process resulted in a net reclassification of $2.1 million from accretable yield to nonaccretable difference. This reclassification results in prospective yield adjustments on the loan pools.

Credit Quality Disclosures

The credit quality of the Corporation's loan portfolios is assessed as a function of net credit losses, levels of nonperforming assets and delinquencies, and credit quality ratings as defined by the Corporation. These credit quality ratings are an important part of the Corporation's overall credit risk management process and evaluation of the allowance for credit losses.

Generally, loans, except for certain commercial, credit card and mortgage loans, and leases on which payments are past due for 90 days are placed on nonaccrual status, unless those loans are in the process of collection and, in Management's opinion, are fully secured. Credit card loans on which payments are past due for 120 days are placed on nonaccrual status. Acquired and FDIC acquired impaired loans are considered to be accruing and performing even though collection of contractual payments may be in doubt because income continues to be accreted on the loan pool as long as expected cash flows are reasonably estimable.

When a loan is placed on nonaccrual status, interest deemed uncollectible which had been accrued in prior years is charged against the ALL and interest deemed uncollectible accrued in the current year is reversed against interest income. Interest on mortgage loans is accrued until Management deems it uncollectible based upon the specific identification method. Payments subsequently received on nonaccrual loans are generally applied to principal. A loan is returned to accrual status when principal and interest are no longer past due and collectability is probable. This generally requires timely principal and interest payments for a minimum of six consecutive payment cycles. Loans are generally written off when deemed uncollectible or when they reach a predetermined number of days past due depending upon loan product, terms and other factors.

The following tables provide a summary of loans by portfolio type, including the delinquency status of those loans that continue to accrue interest and those loans that are nonaccrual:



As of June 30, 2015
(In thousands)													≥ 90 Days
Originated Loans	Days Past Due						Total				Total		Past Due and		Nonaccrual
	30-59		60-89		≥ 90		Past Due		Current		Loans		Accruing ⁽¹⁾		Loans
Commercial
C&I	$	5,837	$	1,949	$	3,780	$	11,566	$	5,459,797	$	5,471,363	$	—	$	29,241
CRE	3,758		119		2,780		6,657		2,131,715		2,138,372		418		7,486
Construction	483		—		—		483		586,412		586,895		—		—
Leases	17,862		—		—		17,862		418,840		436,702		—		1,162
Consumer
Installment	11,526		3,010		4,191		18,727		2,701,332		2,720,059		3,386		2,903
Home Equity Lines	2,268		720		1,032		4,020		1,176,782		1,180,802		249		1,591
Credit Cards	679		338		558		1,575		167,001		168,576		337		459
Residential Mortgages	9,792		1,935		7,595		19,322		633,821		653,143		3,619		12,300
Total	$	52,205	$	8,071	$	19,936	$	80,212	$	13,275,700	$	13,355,912	$	8,009	$	55,142
Acquired Loans													≥ 90 Days
	Days Past Due						Total				Total		Past Due and		Nonaccrual
	30-59		60-89		≥ 90		Past Due		Current		Loans		Accruing⁽³⁾		Loans ⁽³⁾
Commercial
C&I	$	33	$	99	$	3,279	$	3,411	$	334,012	$	337,423	$	—	$	661
CRE	3,353		3,115		17,473		23,941		510,004		533,945		—		5,545
Construction	—		—		694		694		5,536		6,230		—		—
Consumer
Installment	3,999		1,029		1,083		6,111		653,237		659,348		475		671
Home Equity Lines	2,349		785		1,353		4,487		195,692		200,179		762		246
Residential Mortgages	186		1,173		4,902		6,261		352,298		358,559		411		929
Total	$	9,920	$	6,201	$	28,784	$	44,905	$	2,050,779	$	2,095,684	$	1,648	$	8,052
FDIC Acquired Loans ⁽²⁾													≥ 90 Days
	Days Past Due						Total				Total		Past Due and		Nonaccrual
	30-59		60-89		≥ 90		Past Due		Current		Loans		Accruing ⁽³⁾		Loans ⁽³⁾
Commercial
C&I	$	—	$	—	$	2,916	$	2,916	$	35,221	$	38,137	n/a		n/a
CRE	664		1,959		32,076		34,699		67,110		101,809		n/a		n/a
Construction	—		—		3,701		3,701		2,174		5,875		n/a		n/a
Consumer
Installment	—		—		—		—		2,299		2,299		n/a		n/a
Home Equity Lines	1,256		246		3,454		4,956		50,589		55,545		n/a		n/a
Residential Mortgages	5,391		319		2,961		8,671		29,358		38,029		n/a		n/a
Total	$	7,311	$	2,524	$	45,108	$	54,943	$	186,751	$	241,694	n/a		n/a

(1)Installment loans 90 days or more past due and accruing include $2.7 million of loans guaranteed by the U.S. government as of June 30, 2015.

(2)Excludes loss share receivable of $11.8 million as of June 30, 2015.

(3) Acquired and FDIC acquired impaired loans were not classified as nonperforming assets at June 30, 2015 as the loans are considered to be performing under ASC 310-30. As a result, interest income, through the accretion of the difference between the carrying amount of the loans and the expected cash flows, is being recognized on all acquired and FDIC Acquired impaired loans. These asset quality disclosures are, therefore, not applicable to acquired and FDIC acquired impaired loans.



As of December 31, 2014
(In thousands)													≥ 90 Days
Originated Loans	Days Past Due						Total				Total		Past Due and		Nonaccrual
	30-59		60-89		≥ 90		Past Due		Current		Loans		Accruing ⁽¹⁾		Loans
Commercial
C&I	$	2,212	$	1,162	$	2,670	$	6,044	$	5,169,157	$	5,175,201	$	1,547	$	6,114
CRE	2,155		1,460		8,864		12,479		2,104,639		2,117,118		1,696		11,033
Construction	—		—		—		—		537,766		537,766		—		—
Leases	—		—		—		—		370,179		370,179		—		—
Consumer
Installment	14,621		3,647		4,716		22,984		2,370,467		2,393,451		3,695		3,268
Home Equity Lines	1,357		587		1,206		3,150		1,107,186		1,110,336		569		1,654
Credit Cards	668		516		860		2,044		162,434		164,478		407		596
Residential Mortgages	12,086		2,744		8,013		22,843		602,440		625,283		4,242		11,952
Total	$	33,099	$	10,116	$	26,329	$	69,544	$	12,424,268	$	12,493,812	$	12,156	$	34,617

Acquired Loans													≥ 90 Days
	Days Past Due						Total				Total		Past Due and		Nonaccrual
	30-59		60-89		≥ 90		Past Due		Current		Loans		Accruing ⁽³⁾		Loans ⁽³⁾
Commercial
C&I	$	92	$	234	$	4,791	$	5,117	$	444,137	$	449,254	$	—	$	787
CRE	3,479		3,398		23,509		30,386		600,288		630,674		44		4,171
Construction	—		—		685		685		6,286		6,971		—		—
Consumer
Installment	6,204		2,029		1,861		10,094		754,074		764,168		615		1,218
Home Equity Lines	2,819		2,123		2,333		7,275		226,354		233,629		1,519		631
Residential Mortgages	13,062		1,648		7,089		21,799		372,685		394,484		1,293		1,249
Total	$	25,656	$	9,432	$	40,268	$	75,356	$	2,403,824	$	2,479,180	$	3,471	$	8,056
FDIC Acquired Loans ⁽²⁾													≥ 90 Days
	Days Past Due						Total				Total		Past Due and		Nonaccrual
	30-59		60-89		≥ 90		Past Due		Current		Loans		Accruing⁽³⁾		Loans ⁽³⁾
Commercial
C&I	$	58	$	—	$	6,041	$	6,099	$	42,738	$	48,837	n/a		n/a
CRE	234		1,517		47,233		48,984		104,524		153,508		n/a		n/a
Construction	—		—		6,064		6,064		3,198		9,262		n/a		n/a
Consumer
Installment	23		—		34		57		4,817		4,874		n/a		n/a
Home Equity Lines	1,395		870		3,859		6,124		67,241		73,365		n/a		n/a
Residential Mortgages	6,205		91		3,572		9,868		31,408		41,276		n/a		n/a
Total	$	7,915	$	2,478	$	66,803	$	77,196	$	253,926	$	331,122	n/a		n/a

(1) Installment loans 90 days or more past due and accruing include $2.4 million of loans guaranteed by the U.S. government as of December 31, 2014.

(2) Excludes loss share receivable of $22.0 million as of December 31, 2014.

(3) Acquired and FDIC acquired impaired loans were not classified as nonperforming assets at December 31, 2014 as the loans are considered to be performing under ASC 310-30. As a result, interest income, through the accretion of the difference between the carrying amount of the loans and the expected cash flows, is being recognized on all acquired and FDIC Acquired loans. These asset quality disclosures are, therefore, not applicable to acquired and FDIC acquired impaired loans.



As of June 30, 2014
(In thousands)													≥ 90 Days
Originated Loans	Days Past Due						Total				Total		Past Due and		Nonaccrual
	30-59		60-89		≥ 90		Past Due		Current		Loans		Accruing ⁽¹⁾		Loans
Commercial
C&I	$	1,094	$	1,087	$	6,029	$	8,210	$	4,849,405	$	4,857,615	$	80	$	9,991
CRE	2,010		1,934		14,333		18,277		2,079,741		2,098,018		6,633		11,028
Construction	—		—		—		—		409,866		409,866		—		53
Leases	103		—		—		103		319,692		319,795		—		—
Consumer
Installment	11,205		3,164		4,041		18,410		2,033,177		2,051,587		3,505		3,334
Home Equity Lines	1,549		604		815		2,968		995,211		998,179		535		1,329
Credit Cards	677		385		510		1,572		150,395		151,967		258		446
Residential Mortgages	13,087		1,820		7,527		22,434		557,732		580,166		4,632		10,560
Total	$	29,725	$	8,994	$	33,255	$	71,974	$	11,395,219	$	11,467,193	$	15,643	$	36,741

Acquired Loans													≥ 90 Days
	Days Past Due						Total				Total		Past Due and		Nonaccrual
	30-59		60-89		≥ 90		Past Due		Current		Loans		Accruing⁽³⁾		Loans ⁽³⁾
Commercial
C&I	$	1,164	$	511	$	4,239	$	5,914	$	654,347	$	660,261	$	40	$	787
CRE	1,678		1,162		23,604		26,444		757,299		783,743		—		1,736
Construction	—		—		666		666		13,233		13,899		—		—
Consumer
Installment	6,148		1,859		1,296		9,303		862,731		872,034		1,021		419
Home Equity Lines	5,417		3,089		1,989		10,495		257,771		268,266		643		534
Residential Mortgages	158		1,372		7,298		8,828		416,756		425,584		847		1,506
Total	$	14,565	$	7,993	$	39,092	$	61,650	$	2,962,137	$	3,023,787	$	2,551	$	4,982

FDIC Acquired Loans ⁽²⁾													≥ 90 Days
	Days Past Due						Total				Total		Past Due and		Nonaccrual
	30-59		60-89		≥ 90		Past Due		Current		Loans		Accruing ⁽³⁾		Loans ⁽³⁾
Commercial
C&I	$	2,929	$	—	$	6,893	$	9,822	$	46,601	$	56,423	n/a		n/a
CRE	643		1,702		79,916		82,261		134,995		217,256		n/a		n/a
Construction	—		—		17,278		17,278		1,823		19,101		n/a		n/a
Consumer
Installment	25		163		44		232		5,132		5,364		n/a		n/a
Home Equity Lines	579		540		2,036		3,155		86,661		89,816		n/a		n/a
Residential Mortgages	7,141		381		5,356		12,878		33,828		46,706		n/a		n/a
Total	$	11,317	$	2,786	$	111,523	$	125,626	$	309,040	$	434,666	n/a		n/a

(1) Installment loans 90 days or more past due and accruing include $2.5 million of loans guaranteed by the U.S. government as of June 30, 2014.

(2) Excludes loss share receivable of $44.0 million as of June 30, 2014.

(3) Acquired and FDIC acquired impaired loans were not classified as nonperforming assets at June 30, 2014 as the loans are considered to be performing under ASC 310-30. As a result interest income, through the accretion of the difference between the carrying amount of the loans and the expected cash flows, is being recognized on all acquired and FDIC Acquired impaired loans. These asset quality disclosures are, therefore, not applicable to acquired and FDIC acquired impaired loans.

Individual commercial loans are assigned credit risk grades based on an internal assessment of conditions that affect a borrower’s ability to meet its contractual obligation under the loan agreement. The assessment process includes reviewing a borrower’s current financial information, historical payment experience, credit documentation, public information, and other information specific to each borrower. Commercial loans are reviewed on an annual, quarterly or rotational basis or as Management becomes aware of information about a borrower’s ability to fulfill its obligation. For consumer loans, Management evaluates credit quality based on the aging status of the loan as well as by payment activity, which is presented in the above tables.

The credit-risk grading process for commercial loans is summarized as follows:

“Pass” Loans (Grades 1, 2, 3, 4) are not considered a greater than normal credit risk. Generally, the borrowers have the apparent ability to satisfy obligations to the bank, and the Corporation anticipates insignificant uncollectible amounts based on its individual loan review.

“Special Mention” Loans (Grade 5) are commercial loans that have identified potential weaknesses that deserve Management’s close attention. If left uncorrected, these potential weaknesses may result in noticeable deterioration of the repayment prospects for the asset or in the institution’s credit position.

“Substandard” Loans (Grade 6) are inadequately protected by the current financial condition and paying capacity of the obligor or by any collateral pledged. Loans so classified have a well-defined weakness or weaknesses that may jeopardize the liquidation of the debt pursuant to the contractual principal and interest terms. Such loans are characterized by the distinct possibility that the Corporation may sustain some loss if the deficiencies are not corrected.

“Doubtful” Loans (Grade 7) have all the weaknesses inherent in those classified as substandard, with the added characteristic that existing facts, conditions, and values make collection or liquidation in full highly improbable. Such loans are currently managed separately to determine the highest recovery alternatives.

The following tables provide a summary of commercial loans by portfolio type and the Corporation's internal credit quality rating:



As of June 30, 2015
(In thousands)
Originated Loans	Commercial
	C&I		CRE		Construction		Leases		Total
Grade 1	$	65,856	$	807	$	—	$	14,688	$	81,351
Grade 2	206,384		1,166		—		29,564		237,114
Grade 3	1,417,295		367,457		55,889		65,664		1,906,305
Grade 4	3,567,387		1,715,998		529,517		321,268		6,134,170
Grade 5	98,137		25,466		360		2,956		126,919
Grade 6	112,661		27,478		1,129		2,562		143,830
Grade 7	3,643		—		—		—		3,643
Total	$	5,471,363	$	2,138,372	$	586,895	$	436,702	$	8,633,332

Acquired Loans	Commercial
	C&I		CRE		Construction		Leases		Total
Grade 1	$	1,061	$	—	$	—	$	—	$	1,061
Grade 2	—		—		—		—		—
Grade 3	17,338		27,190		—		—		44,528
Grade 4	289,027		453,830		5,536		—		748,393
Grade 5	13,283		16,815		—		—		30,098
Grade 6	16,714		36,110		694		—		53,518
Grade 7	—		—		—		—		—
Total	$	337,423	$	533,945	$	6,230	$	—	$	877,598

FDIC Acquired Loans	Commercial
	C&I		CRE		Construction		Leases		Total
Grade 1	$	—	$	—	$	—	$	—	$	—
Grade 2	1,129		—		—		—		1,129
Grade 3	—		—		—		—		—
Grade 4	33,992		65,906		817		—		100,715
Grade 5	—		625		—		—		625
Grade 6	3,016		35,278		5,058		—		43,352
Grade 7	—		—		—		—		—
Total	$	38,137	$	101,809	$	5,875	$	—	$	145,821



As of December 31, 2014
(In thousands)
Originated Loans	Commercial
	C&I		CRE		Construction		Leases		Total
Grade 1	$	52,676	$	683	$	678	$	4,451	$	58,488
Grade 2	186,278		3,454		—		14,959		204,691
Grade 3	1,340,100		294,281		46,074		71,908		1,752,363
Grade 4	3,413,446		1,745,470		490,757		277,277		5,926,950
Grade 5	139,083		29,990		257		1,389		170,719
Grade 6	43,618		43,240		—		195		87,053
Grade 7	—		—		—		—		—
Total	$	5,175,201	$	2,117,118	$	537,766	$	370,179	$	8,200,264

Acquired Loans	Commercial
	C&I		CRE		Construction		Leases		Total
Grade 1	$	1,076	$	—	$	—	$	—	$	1,076
Grade 2	—		—		—		—		—
Grade 3	20,891		24,867		—		—		45,758
Grade 4	376,129		532,447		6,286		—		914,862
Grade 5	23,268		28,382		685		—		52,335
Grade 6	27,890		44,978		—		—		72,868
Grade 7	—		—		—		—		—
Total	$	449,254	$	630,674	$	6,971	$	—	$	1,086,899

FDIC Acquired Loans	Commercial
	C&I		CRE		Construction		Leases		Total
Grade 1	$	—	$	—	$	—	$	—	$	—
Grade 2	1,347		—		—		—		1,347
Grade 3	—		—		—		—		—
Grade 4	36,406		86,779		823		—		124,008
Grade 5	167		3,401		—		—		3,568
Grade 6	10,917		63,328		8,248		—		82,493
Grade 7	—		—		191		—		191
Total	$	48,837	$	153,508	$	9,262	$	—	$	211,607



As of June 30, 2014
(In thousands)
Originated Loans	Commercial
	C&I		CRE		Construction		Leases		Total
Grade 1	$	33,855	$	—	$	—	$	9,408	$	43,263
Grade 2	134,682		3,610		—		10,971		149,263
Grade 3	1,100,807		290,652		36,954		55,648		1,484,061
Grade 4	3,439,210		1,725,808		371,488		236,324		5,772,830
Grade 5	100,776		29,382		—		7,092		137,250
Grade 6	48,285		48,566		1,424		352		98,627
Grade 7	—		—		—		—		—
Total	$	4,857,615	$	2,098,018	$	409,866	$	319,795	$	7,685,294

Acquired Loans	Commercial
	C&I		CRE		Construction		Leases		Total
Grade 1	$	700	$	—	$	—	$	—	$	700
Grade 2	—		—		—		—		—
Grade 3	35,608		26,652		—		—		62,260
Grade 4	553,293		651,011		13,899		—		1,218,203
Grade 5	41,213		50,267		—		—		91,480
Grade 6	29,447		55,813		—		—		85,260
Grade 7	—		—		—		—		—
Total	$	660,261	$	783,743	$	13,899	$	—	$	1,457,903

FDIC Acquired Loans	Commercial
	C&I		CRE		Construction		Leases		Total
Grade 1	$	—	$	—	$	—	$	—	$	—
Grade 2	1,015		—		—		—		1,015
Grade 3	—		—		—		—		—
Grade 4	38,892		104,455		707		—		144,054
Grade 5	999		3,984		—		—		4,983
Grade 6	15,517		108,637		18,045		—		142,199
Grade 7	—		180		349		—		529
Total	$	56,423	$	217,256	$	19,101	$	—	$	292,780