Loans

Loans outstanding as of June 30, 2016, December 31, 2015, and June 30, 2015, net of unearned income, consisted of the following:



(In thousands)		June 30, 2016			December 31, 2015			June 30, 2015
Originated loans:
Commercial		$	9,132,366		$	9,007,830		$	8,633,332
Residential mortgage		728,534			689,045			653,143
Installment		3,353,084			2,990,349			2,720,059
Home equity		1,276,661			1,248,438			1,180,802
Credit cards		174,986			182,843			168,576
	Total originated loans	14,665,631			14,118,505			13,355,912
Allowance for originated loan losses		(105,175		)	(105,135		)	(101,682		)
	Net originated loans	$	14,560,456		$	14,013,370		$	13,254,230
Acquired loans:
Commercial		$	554,414		$	677,149		$	877,598
Residential mortgage		292,877			324,008			358,559
Installment		494,429			573,372			659,348
Home equity		146,916			168,542			200,179
	Total acquired loans	1,488,636			1,743,071			2,095,684
Allowance for acquired loan losses		(4,256		)	(3,877		)	(4,950		)
	Net acquired loans	$	1,484,380		$	1,739,194		$	2,090,734
FDIC acquired loans:
Commercial		$	115,793		$	129,109		$	145,821
Residential mortgage		33,370			35,568			38,029
Installment		1,808			2,077			2,299
Home equity		29,813			38,668			55,545
Loss share receivable		8,555			9,947			11,820
	Total FDIC acquired loans	189,339			215,369			253,514
Allowance for FDIC acquired loan losses		(40,218		)	(44,679		)	(41,627		)
	Net FDIC acquired loans	$	149,121		$	170,690		$	211,887
Total loans:
Commercial		$	9,802,573		$	9,814,088		$	9,656,751
Residential mortgage		1,054,781			1,048,621			1,049,731
Installment		3,849,321			3,565,798			3,381,706
Home equity		1,453,390			1,455,648			1,436,526
Credit cards		174,986			182,843			168,576
Loss share receivable		8,555			9,947			11,820
	Total loans	16,343,606			16,076,945			15,705,110
Total allowance for loan losses		(149,649		)	(153,691		)	(148,259		)
	Total Net loans	$	16,193,957		$	15,923,254		$	15,556,851

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 $3.3 million, $4.1 million, and $5.4 million at June 30, 2016, December 31, 2015, and June 30, 2015, 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, 2016 and 2015 were $340.9 million and $504.7 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, 2016 and 2015:



	Three Months Ended June 30,												Six Months Ended June 30,
Acquired Impaired Loans	2016						2015						2016						2015
(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	$	85,444		$	257,152		$	118,756		$	388,313		$	89,823		$	284,709		$	119,450		$	423,209
Accretion	(7,921		)	7,921			(10,285		)	10,285			(16,823		)	16,823			(21,503		)	21,503
Net reclassifications from nonaccretable to accretable	4,883			—			8,217			—			12,636			—			21,212			—
Payments received, net	—			(25,878		)	—			(42,434		)	—			(62,337		)	—			(88,548		)
Disposals	(3,042		)	—			(4,657		)	—			(6,272		)	—			(7,128		)	—
Balance at end of period	$	79,364		$	239,195		$	112,031		$	356,164		$	79,364		$	239,195		$	112,031		$	356,164

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, 2016, there was an overall improvement in cash flow expectations, which resulted in the net reclassification of $4.9 million from the nonaccretable difference to accretable yield. This reclassification was $8.2 million for the three months ended June 30, 2015. The reclassification from the nonaccretable difference to the accretable yield results in prospective yield adjustments on the 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 $115.8 million of loans no longer being covered as of June 30, 2016. As of June 30, 2016, $65.0 million remained covered by single family loss share agreements.

Changes in the loss share receivable for the three and six months ended June 30, 2016 and 2015 were as follows:



Loss Share Receivable	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2016			2015			2016			2015
Balance at beginning of period	$	9,436		$	20,005		$	9,947		$	22,033
Amortization	(358		)	(1,185		)	(706		)	(3,372		)
Increase/(decrease) due to impairment (recapture) on FDIC acquired loans	(12		)	1,819			257			6,046
FDIC reimbursement	(194		)	(8,713		)	(386		)	(12,726		)
FDIC acquired loans paid in full	(317		)	(106		)	(557		)	(161		)
Balance at end of the period ⁽¹⁾	$	8,555		$	11,820		$	8,555		$	11,820

(1) As of June 30, 2016, the loss share receivable of $8.6 million was related to single family covered loans.

Total outstanding FDIC acquired impaired loans were $301.2 million and $351.1 million as of June 30, 2016 and 2015, 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, 2016 and 2015:



	Three Months Ended June 30,												Six Months Ended June 30,
FDIC Acquired Impaired Loans	2016						2015						2016						2015
(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	$	22,126		$	122,134		$	29,867		$	199,225		$	22,908		$	130,648		$	37,511		$	232,452
Accretion	(2,231		)	2,231			(4,100		)	4,100			(4,528		)	4,528			(9,667		)	9,667
Net reclassifications between non-accretable and accretable	699			—			2,136			—			2,372			—			2,080			—
Payments received, net	—			(5,604		)	—			(45,517		)	—			(16,415		)	—			(84,311		)
(Disposals)/Additions	(371		)	—			(1,753		)	—			(529		)	—			(3,774		)	—
Balance at end of period	$	20,223		$	118,761		$	26,150		$	157,808		$	20,223		$	118,761		$	26,150		$	157,808

The cash flows expected to be collected on FDIC acquired impaired loans are estimated quarterly in a similar manner as described above for acquired impaired loans. During the quarter ended June 30, 2016, the re-estimation process resulted in a net reclassification of $0.7 million from the nonaccretable difference to accretable yield. This reclassification was $2.1 million for the three months ended June 30, 2015. The reclassification from the nonaccretable difference to the accretable yield 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, 2016
(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	$	1,677	$	1,465	$	10,864	$	14,006	$	5,868,988	$	5,882,994	$	1,062	$	43,887
CRE	4,506		142		12,176		16,824		2,018,674		2,035,498		166		13,860
Construction	—		709		4,760		5,469		699,871		705,340		—		9,195
Leases	—		—		476		476		508,058		508,534		476		—
Consumer
Installment	15,662		3,496		4,005		23,163		3,329,921		3,353,084		3,453		3,506
Home Equity Lines	1,245		713		2,140		4,098		1,272,563		1,276,661		623		2,390
Credit Cards	811		504		860		2,175		172,811		174,986		789		758
Residential Mortgages	9,564		2,017		4,233		15,814		712,720		728,534		1,439		10,701
Total	$	33,465	$	9,046	$	39,514	$	82,025	$	14,583,606	$	14,665,631	$	8,008	$	84,297
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	$	340	$	121	$	1,168	$	1,629	$	179,874	$	181,503	$	—	$	865
CRE	602		896		9,491		10,989		357,811		368,800		—		4,482
Construction	—		—		413		413		3,698		4,111		—		—
Consumer
Installment	3,623		767		486		4,876		489,553		494,429		224		615
Home Equity Lines	960		503		712		2,175		144,741		146,916		587		235
Residential Mortgages	299		943		3,867		5,109		287,768		292,877		646		924
Total	$	5,824	$	3,230	$	16,137	$	25,191	$	1,463,445	$	1,488,636	$	1,457	$	7,121
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	$	—	$	—	$	1,326	$	1,326	$	29,948	$	31,274	n/a		n/a
CRE	—		804		24,931		25,735		54,153		79,888		n/a		n/a
Construction	—		—		3,512		3,512		1,119		4,631		n/a		n/a
Consumer
Installment	—		—		—		—		1,808		1,808		n/a		n/a
Home Equity Lines	2,097		354		938		3,389		26,424		29,813		n/a		n/a
Residential Mortgages	4,371		204		1,800		6,375		26,995		33,370		n/a		n/a
Total	$	6,468	$	1,362	$	32,507	$	40,337	$	140,447	$	180,784	n/a		n/a

(1)Installment loans 90 days or more past due and accruing include $2.3 million of loans guaranteed by the U.S. government as of June 30, 2016.

(2)Excludes loss share receivable of $8.6 million as of June 30, 2016.

(3) Acquired and FDIC acquired impaired loans were not classified as nonperforming assets at June 30, 2016 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, 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	$	4,684	$	115	$	8,824	$	13,623	$	5,779,785	$	5,793,408	$	236	$	23,123
CRE	12,880		—		2,260		15,140		2,062,204		2,077,344		153		4,503
Construction	1,360		—		486		1,846		643,491		645,337		—		482
Leases	—		—		—		—		491,741		491,741		—		—
Consumer
Installment	17,934		4,828		3,920		26,682		2,963,667		2,990,349		3,519		2,178
Home Equity Lines	1,952		913		1,478		4,343		1,244,095		1,248,438		513		1,674
Credit Cards	1,449		494		632		2,575		180,268		182,843		725		545
Residential Mortgages	11,099		1,519		6,693		19,311		669,734		689,045		2,876		11,600
Total	$	51,358	$	7,869	$	24,293	$	83,520	$	14,034,985	$	14,118,505	$	8,022	$	44,105

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	$	311	$	31	$	3,336	$	3,678	$	236,467	$	240,145	$	13	$	782
CRE	3,192		1,681		9,657		14,530		416,361		430,891		522		4,948
Construction	—		—		733		733		5,380		6,113		—		—
Consumer
Installment	5,059		1,329		974		7,362		566,010		573,372		236		835
Home Equity Lines	1,365		660		1,260		3,285		165,257		168,542		644		514
Residential Mortgages	8,760		567		6,792		16,119		307,889		324,008		1,681		1,166
Total	$	18,687	$	4,268	$	22,752	$	45,707	$	1,697,364	$	1,743,071	$	3,096	$	8,245
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	$	—	$	—	$	1,054	$	1,054	$	34,412	$	35,466	n/a		n/a
CRE	296		354		28,501		29,151		58,623		87,774		n/a		n/a
Construction	—		—		3,761		3,761		2,108		5,869		n/a		n/a
Consumer
Installment	—		—		—		—		2,077		2,077		n/a		n/a
Home Equity Lines	2,230		52		1,917		4,199		34,469		38,668		n/a		n/a
Residential Mortgages	4,616		172		2,655		7,443		28,125		35,568		n/a		n/a
Total	$	7,142	$	578	$	37,888	$	45,608	$	159,814	$	205,422	n/a		n/a

(1) Installment loans 90 days or more past due and accruing include $2.3 million of loans guaranteed by the U.S. government as of December 31, 2015.

(2) Excludes loss share receivable of $9.9 million as of December 31, 2015.

(3) Acquired and FDIC acquired impaired loans were not classified as nonperforming assets at December 31, 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 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.

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, 2016
(In thousands)
Originated Loans	Commercial
	C&I		CRE		Construction		Leases		Total
Grade 1	$	75,818	$	742	$	—	$	12,001	$	88,561
Grade 2	416,677		806		—		49,953		467,436
Grade 3	1,267,423		294,396		46,114		87,346		1,695,279
Grade 4	3,886,039		1,697,194		609,659		325,346		6,518,238
Grade 5	73,989		13,929		31,744		22,830		142,492
Grade 6	154,707		28,431		17,823		11,058		212,019
Grade 7	8,341		—		—		—		8,341
Total	$	5,882,994	$	2,035,498	$	705,340	$	508,534	$	9,132,366

Acquired Loans	Commercial
	C&I		CRE		Construction		Leases		Total
Grade 1	$	—	$	—	$	—	$	—	$	—
Grade 2	—		—		—		—		—
Grade 3	5,994		24,244		—		—		30,238
Grade 4	140,944		303,228		3,698		—		447,870
Grade 5	27,053		11,607		—		—		38,660
Grade 6	7,512		29,721		413		—		37,646
Grade 7	—		—		—		—		—
Total	$	181,503	$	368,800	$	4,111	$	—	$	554,414

FDIC Acquired Loans	Commercial
	C&I		CRE		Construction		Leases		Total
Grade 1	$	—	$	—	$	—	$	—	$	—
Grade 2	—		—		—		—		—
Grade 3	—		7,040		—		—		7,040
Grade 4	27,834		45,520		—		—		73,354
Grade 5	—		—		—		—		—
Grade 6	3,440		27,328		4,631		—		35,399
Grade 7	—		—		—		—		—
Total	$	31,274	$	79,888	$	4,631	$	—	$	115,793



As of December 31, 2015
(In thousands)
Originated Loans	Commercial
	C&I		CRE			Construction		Leases		Total
Grade 1	$	60,440	$	773		$	—	$	12,732	$	73,945
Grade 2	353,581		831			—		69,258		423,670
Grade 3	1,371,850		319,987			59,182		49,956		1,800,975
Grade 4	3,756,333		1,697,261			569,098		344,763		6,367,455
Grade 5	124,140		18,388			7,193		7,858		157,579
Grade 6	124,483		40,105			9,864		7,174		181,626
Grade 7	2,581		(1		)	—		—		2,580
Total	$	5,793,408	$	2,077,344		$	645,337	$	491,741	$	9,007,830

Acquired Loans	Commercial
	C&I		CRE			Construction		Leases		Total
Grade 1	$	346	$	—		$	—	$	—	$	346
Grade 2	—		—			—		—		—
Grade 3	15,548		27,387			—		—		42,935
Grade 4	200,736		361,518			5,380		—		567,634
Grade 5	11,735		12,546			—		—		24,281
Grade 6	11,780		29,440			733		—		41,953
Grade 7	—		—			—		—		—
Total	$	240,145	$	430,891		$	6,113	$	—	$	677,149

FDIC Acquired Loans	Commercial
	C&I		CRE			Construction		Leases		Total
Grade 1	$	—	$	—		$	—	$	—	$	—
Grade 2	1,072		—			—		—		1,072
Grade 3	—		7,004			—		—		7,004
Grade 4	31,637		49,917			819		—		82,373
Grade 5	295		—			—		—		295
Grade 6	2,462		30,853			5,050		—		38,365
Grade 7	—		—			—		—		—
Total	$	35,466	$	87,774		$	5,869	$	—	$	129,109



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