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Loans | 12 Months Ended
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Dec. 31, 2014
Receivables [Abstract] |
Loans | Note 6 — Loans The Board of Directors and management review and approve the Bank’s loan policy and procedures on a regular basis to reflect issues such as regulatory and organizational structure changes, strategic planning revisions, concentrations of credit, loan delinquencies and nonperforming loans, problem loans, 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. 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 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 policy. Loans Receivable Loans receivable consisted of the following as of the dates indicated:
|  | December 31, 2014 |  |  | December 31, 2013 |
|  | Non-PCI Loans |  |  | PCI Loans |  |  | Total |  |
|  | (In thousands) |
Real estate loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial property (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail |  | $ | 675,072 |  |  | $ | 8,535 |  |  | $ | 683,607 |  |  | $ | 543,619 |
Hotel/motel |  |  | 454,499 |  |  |  | 7,682 |  |  |  | 462,181 |  |  |  | 322,927 |
Gas station |  |  | 362,240 |  |  |  | 7,745 |  |  |  | 369,985 |  |  |  | 292,557 |
Other |  |  | 842,126 |  |  |  | 5,796 |  |  |  | 847,922 |  |  |  | 731,617 |
Construction |  |  | 9,517 |  |  |  | — |  |  |  | 9,517 |  |  |  | — |
Residential property |  |  | 120,932 |  |  |  | 14,371 |  |  |  | 135,303 |  |  |  | 79,078 |
Total real estate loans |  |  | 2,464,386 |  |  |  | 44,129 |  |  |  | 2,508,515 |  |  |  | 1,969,798 |
Commercial and industrial loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial term |  |  | 116,073 |  |  |  | 327 |  |  |  | 116,400 |  |  |  | 124,391 |
Commercial lines of credit |  |  | 93,860 |  |  |  | — |  |  |  | 93,860 |  |  |  | 71,042 |
International loans |  |  | 38,929 |  |  |  | — |  |  |  | 38,929 |  |  |  | 36,353 |
Total commercial and industrial loans |  |  | 248,862 |  |  |  | 327 |  |  |  | 249,189 |  |  |  | 231,786 |
Consumer loans |  |  | 27,512 |  |  |  | 45 |  |  |  | 27,557 |  |  |  | 32,505 |
Total gross loans |  |  | 2,740,760 |  |  |  | 44,501 |  |  |  | 2,785,261 |  |  |  | 2,234,089 |
Allowance for loans losses |  |  | (51,640 | ) |  |  | (1,026 | ) |  |  | (52,666 | ) |  |  | (57,555 | )
Deferred loan costs |  |  | 3,237 |  |  |  | — |  |  |  | 3,237 |  |  |  | 964 |
Loans receivable, net |  | $ | 2,692,357 |  |  | $ | 43,475 |  |  | $ | 2,735,832 |  |  | $ | 2,177,498 |
(1) | Includes owner-occupied property loans of $1.12 billion and $957.3 million as of December 31, 2014 and 2013, respectively.
Accrued interest on loans receivable was $6.4 million and $5.4 million at December 31, 2014 and 2013, respectively. At December 31, 2014 and 2013, loans receivable totaling $840.0 million and $568.7 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, 2014 and 2013:
|  | Real Estate |  |  | Commercial and Industrial |  |  | Consumer |  |  | Total Non-PCI |
|  | (In thousands) |
December 31, 2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Origination of loans held for sale |  |  | 38,379 |  |  |  | 9,606 |  |  |  | — |  |  |  | 47,985 |
Sales of loans held for sale |  |  | (34,994 | ) |  |  | (7,418 | ) |  |  | — |  |  |  | (42,412 | )
Principal payoffs and amortization |  |  | (62 | ) |  |  | (60 | ) |  |  | — |  |  |  | (122 | )
Balance at end of period |  | $ | 3,323 |  |  | $ | 2,128 |  |  | $ | — |  |  | $ | 5,451 |
December 31, 2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | 7,977 |  |  | $ | 329 |  |  | $ | — |  |  | $ | 8,306 |
Origination of loans held for sale |  |  | 77,295 |  |  |  | 5,732 |  |  |  | — |  |  |  | 83,027 |
Reclassification from loans receivable to loans held for sale |  |  | 7,594 |  |  |  | 416 |  |  |  | — |  |  |  | 8,010 |
Reclassification from loans held for sale to loans receivable |  |  | (2,118 | ) |  |  | (416 | ) |  |  | — |  |  |  | (2,534 | )
Sales of loans held for sale |  |  | (90,706 | ) |  |  | (6,048 | ) |  |  | — |  |  |  | (96,754 | )
Principal payoffs and amortization |  |  | (42 | ) |  |  | (13 | ) |  |  | — |  |  |  | (55 | )
Balance at end of period |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
For the year ended December 31, 2014, there was no reclassification of loans receivable as loans held for sale, and loans held for sale of $42.4 million were sold. For the year ended December 31, 2013, loans receivable of $8.0 million were reclassified as loans held for sale, and loans held for sale of $96.8 million were sold. Allowance for Loan Losses and Allowance for Off-Balance Sheet Items Activity in the allowance for loan losses and allowance for off-balance sheet items was as follows for the periods indicated:
|  | As of and for the Year Ended December 31, |
|  | 2014 |  |  |  |  |  |  |
|  | Non-PCI Loans |  |  | PCI Loans |  |  | Total |  |  | 2013 |  |  | 2012 |
|  | (In thousands) |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | 57,555 |  |  | $ | — |  |  | $ | 57,555 |  |  | $ | 63,305 |  |  | $ | 89,936 |
Charge-offs |  |  | (6,992 | ) |  |  | — |  |  |  | (6,992 | ) |  |  | (11,862 | ) |  |  | (38,227 | )
Recoveries on loans previously charged off |  |  | 8,361 |  |  |  | — |  |  |  | 8,361 |  |  |  | 5,536 |  |  |  | 4,439 |
Net loan recoveries (charge-offs) |  |  | 1,369 |  |  |  | — |  |  |  | 1,369 |  |  |  | (6,326 | ) |  |  | (33,788 | )
(Negative provision) provision charged to operating expense |  |  | (7,284 | ) |  |  | 1,026 |  |  |  | (6,258 | ) |  |  | 576 |  |  |  | 7,157 |
Balance at end of period |  | $ | 51,640 |  |  | $ | 1,026 |  |  | $ | 52,666 |  |  | $ | 57,555 |  |  | $ | 63,305 |
Allowance for off-balance sheet items: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | 1,248 |  |  | $ | — |  |  | $ | 1,248 |  |  | $ | 1,824 |  |  | $ | 2,981 |
Provision (negative provision) charged to operating expense |  |  | 118 |  |  |  | — |  |  |  | 118 |  |  |  | (576 | ) |  |  | (1,157 | )
Balance at end of period |  | $ | 1,366 |  |  | $ | — |  |  | $ | 1,366 |  |  | $ | 1,248 |  |  | $ | 1,824 |
The allowance for off-balance sheet items is maintained at a level believed to be sufficient to absorb probable losses related to these unfunded credit facilities. The determination of the allowance adequacy is based on periodic evaluations of the unfunded credit facilities including an assessment of the probability of commitment usage, credit risk factors for loans outstanding to these same customers, and the terms and expiration dates of the unfunded credit facilities. As of December 31, 2014 and 2013, the allowance for off-balance sheet items amounted $1.4 million and $1.2 million, respectively. Net adjustments to the allowance for off-balance sheet items are included in the provision for credit losses. The following table details the information on the allowance for loan losses by portfolio segment for the years ended December 31, 2014 and 2013:
|  | Real Estate |  |  | Commercial and Industrial |  |  | Consumer |  |  | Unallocated |  |  | Total |
|  | (In thousands) |
December 31, 2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for loan losses on Non-PCI loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 43,550 |  |  | $ | 11,287 |  |  | $ | 1,427 |  |  | $ | 1,291 |  |  | $ | 57,555 |
Charge-offs |  |  | (3,009 | ) |  |  | (3,881 | ) |  |  | (102 | ) |  |  | — |  |  |  | (6,992 | )
Recoveries on loans previously charged off |  |  | 4,348 |  |  |  | 3,801 |  |  |  | 212 |  |  |  | — |  |  |  | 8,361 |
(Negative provision) provision |  |  | (3,695 | ) |  |  | (2,065 | ) |  |  | (1,317 | ) |  |  | (207 | ) |  |  | (7,284 | )
Ending balance |  | $ | 41,194 |  |  | $ | 9,142 |  |  | $ | 220 |  |  | $ | 1,084 |  |  | $ | 51,640 |
Ending balance: individually evaluated for impairment |  | $ | 2,517 |  |  | $ | 2,729 |  |  | $ | — |  |  | $ | — |  |  | $ | 5,246 |
Ending balance: collectively evaluated for impairment |  | $ | 38,677 |  |  | $ | 6,413 |  |  | $ | 220 |  |  | $ | 1,084 |  |  | $ | 46,394 |
Non-PCI loans receivable: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending balance |  | $ | 2,464,386 |  |  | $ | 248,862 |  |  | $ | 27,512 |  |  | $ | — |  |  | $ | 2,740,760 |
Ending balance: individually evaluated for impairment |  | $ | 32,497 |  |  | $ | 11,626 |  |  | $ | 1,742 |  |  | $ | — |  |  | $ | 45,865 |
Ending balance: collectively evaluated for impairment |  | $ | 2,431,889 |  |  | $ | 237,236 |  |  | $ | 25,770 |  |  | $ | — |  |  | $ | 2,694,895 |
Allowance for loan losses on PCI loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Provision |  |  | 895 |  |  |  | 131 |  |  |  | — |  |  |  | — |  |  |  | 1,026 |
Ending balance: acquired with deteriorated credit quality |  | $ | 895 |  |  | $ | 131 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,026 |
PCI loans receivable: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending balance: acquired with deteriorated credit quality |  | $ | 44,129 |  |  | $ | 327 |  |  | $ | 45 |  |  | $ | — |  |  | $ | 44,501 |
December 31, 2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for loan losses on Non-PCI loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 49,472 |  |  | $ | 10,636 |  |  | $ | 2,280 |  |  | $ | 917 |  |  | $ | 63,305 |
Charge-offs |  |  | (4,614 | ) |  |  | (6,981 | ) |  |  | (267 | ) |  |  | — |  |  |  | (11,862 | )
Recoveries on loans previously charged off |  |  | 2,934 |  |  |  | 2,433 |  |  |  | 169 |  |  |  | — |  |  |  | 5,536 |
Provision (negative provision) |  |  | (4,242 | ) |  |  | 5,199 |  |  |  | (755 | ) |  |  | 374 |  |  |  | 576 |
Ending balance |  | $ | 43,550 |  |  | $ | 11,287 |  |  | $ | 1,427 |  |  | $ | 1,291 |  |  | $ | 57,555 |
Ending balance: individually evaluated for impairment |  | $ | 2,048 |  |  | $ | 4,136 |  |  | $ | 284 |  |  | $ | — |  |  | $ | 6,468 |
Ending balance: collectively evaluated for impairment |  | $ | 41,502 |  |  | $ | 7,151 |  |  | $ | 1,143 |  |  | $ | 1,291 |  |  | $ | 51,087 |
Non-PCI loans receivable: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending balance |  | $ | 1,969,798 |  |  | $ | 231,786 |  |  | $ | 32,505 |  |  | $ | — |  |  | $ | 2,234,089 |
Ending balance: individually evaluated for impairment |  | $ | 35,961 |  |  | $ | 15,536 |  |  | $ | 1,569 |  |  | $ | — |  |  | $ | 53,066 |
Ending balance: collectively evaluated for impairment |  | $ | 1,933,837 |  |  | $ | 216,250 |  |  | $ | 30,936 |  |  | $ | — |  |  | $ | 2,181,023 |
Credit Quality Indicators As part of the on-going monitoring of the credit quality of our loan portfolio, we utilize an internal loan grading system to identify credit risk and assign an appropriate grade (from (0) to (8)) for each and every loan in our loan portfolio. A third-party loan review is required on an annual basis. Additional adjustments are made when determined to be necessary. The loan grade definitions are as follows: Pass and Pass-Watch: Pass and Pass-Watch loans, 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 grading system. It consists of all performing loans with no identified credit weaknesses. It includes cash and stock/security secured loans or other investment grade loans. Special Mention: A Special Mention credit, 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 that have significant actual, not potential, weaknesses are considered more severely classified. Substandard: A Substandard credit, grade (6), has a well-defined weakness that jeopardizes the liquidation of the debt. A credit 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, there is a distinct possibility that the Bank will sustain some loss if the weaknesses or deficiencies are not corrected. Doubtful: A Doubtful credit, 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 credit, and therefore the amount or timing of a possible loss cannot be determined at the current time. Loss: A loan 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 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 classified as Loss will be charged off in a timely manner. As of December 31, 2014 and 2013, pass/pass-watch, special mention and classified (substandard and doubtful) loans (excluding PCI loans), disaggregated by loan class, were as follows:
|  | Pass/Pass-Watch |  |  | Special Mention |  |  | Classified |  |  | Total |
|  | (In thousands) |
December 31, 2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial property |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail |  | $ | 654,360 |  |  | $ | 18,013 |  |  | $ | 2,699 |  |  | $ | 675,072 |
Hotel/motel |  |  | 397,437 |  |  |  | 46,365 |  |  |  | 10,697 |  |  |  | 454,499 |
Gas station |  |  | 345,775 |  |  |  | 8,899 |  |  |  | 7,566 |  |  |  | 362,240 |
Other |  |  | 822,037 |  |  |  | 9,543 |  |  |  | 10,546 |  |  |  | 842,126 |
Construction |  |  | 9,517 |  |  |  | — |  |  |  | — |  |  |  | 9,517 |
Residential property |  |  | 118,688 |  |  |  | 66 |  |  |  | 2,178 |  |  |  | 120,932 |
Commercial and industrial loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial term |  |  | 106,326 |  |  |  | 1,225 |  |  |  | 8,522 |  |  |  | 116,073 |
Commercial lines of credit |  |  | 92,312 |  |  |  | 993 |  |  |  | 555 |  |  |  | 93,860 |
International loans |  |  | 36,121 |  |  |  | 252 |  |  |  | 2,556 |  |  |  | 38,929 |
Consumer loans |  |  | 25,313 |  |  |  | 131 |  |  |  | 2,068 |  |  |  | 27,512 |
Total Non-PCI loans |  | $ | 2,607,886 |  |  | $ | 85,487 |  |  | $ | 47,387 |  |  | $ | 2,740,760 |
December 31, 2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial property |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail |  | $ | 531,014 |  |  | $ | 5,309 |  |  | $ | 7,296 |  |  | $ | 543,619 |
Hotel/motel |  |  | 308,483 |  |  |  | 1,796 |  |  |  | 12,648 |  |  |  | 322,927 |
Gas station |  |  | 279,636 |  |  |  | 3,104 |  |  |  | 9,817 |  |  |  | 292,557 |
Other |  |  | 690,481 |  |  |  | 8,524 |  |  |  | 32,612 |  |  |  | 731,617 |
Residential property |  |  | 77,422 |  |  |  | — |  |  |  | 1,656 |  |  |  | 79,078 |
Commercial and industrial loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial term |  |  | 107,712 |  |  |  | 2,007 |  |  |  | 14,672 |  |  |  | 124,391 |
Commercial lines of credit |  |  | 69,823 |  |  |  | — |  |  |  | 1,219 |  |  |  | 71,042 |
International loans |  |  | 35,777 |  |  |  | 576 |  |  |  | — |  |  |  | 36,353 |
Consumer loans |  |  | 30,044 |  |  |  | 163 |  |  |  | 2,298 |  |  |  | 32,505 |
Total Non-PCI loans |  | $ | 2,130,392 |  |  | $ | 21,479 |  |  | $ | 82,218 |  |  | $ | 2,234,089 |
The following is an aging analysis of gross loans (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, 2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial property |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail |  | $ | 1,554 |  |  | $ | 281 |  |  | $ | 1,920 |  |  | $ | 3,755 |  |  | $ | 671,317 |  |  | $ | 675,072 |  |  | $ | — |
Hotel/motel |  |  | 1,531 |  |  |  | 2,340 |  |  |  | 433 |  |  |  | 4,304 |  |  |  | 450,195 |  |  |  | 454,499 |  |  |  | — |
Gas station |  |  | 2,991 |  |  |  | 1,113 |  |  |  | 353 |  |  |  | 4,457 |  |  |  | 357,783 |  |  |  | 362,240 |  |  |  | — |
Other |  |  | 1,674 |  |  |  | 2,156 |  |  |  | 1,142 |  |  |  | 4,972 |  |  |  | 837,154 |  |  |  | 842,126 |  |  |  | — |
Construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 9,517 |  |  |  | 9,517 |  |  |  | — |
Residential property |  |  | 167 |  |  |  | — |  |  |  | 687 |  |  |  | 854 |  |  |  | 120,078 |  |  |  | 120,932 |  |  |  | — |
Commercial and industrial loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial term |  |  | 1,107 |  |  |  | 490 |  |  |  | 2,847 |  |  |  | 4,444 |  |  |  | 111,629 |  |  |  | 116,073 |  |  |  | — |
Commercial lines of credit |  |  | — |  |  |  | — |  |  |  | 227 |  |  |  | 227 |  |  |  | 93,633 |  |  |  | 93,860 |  |  |  | — |
International loans |  |  | 200 |  |  |  | — |  |  |  | — |  |  |  | 200 |  |  |  | 38,729 |  |  |  | 38,929 |  |  |  | — |
Consumer loans |  |  | 489 |  |  |  | 349 |  |  |  | 248 |  |  |  | 1,086 |  |  |  | 26,426 |  |  |  | 27,512 |  |  |  | — |
Total Non-PCI loans |  | $ | 9,713 |  |  | $ | 6,729 |  |  | $ | 7,857 |  |  | $ | 24,299 |  |  | $ | 2,716,461 |  |  | $ | 2,740,760 |  |  | $ | — |
December 31, 2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial property |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail |  | $ | 202 |  |  | $ | 426 |  |  | $ | 2,196 |  |  | $ | 2,824 |  |  | $ | 540,794 |  |  | $ | 543,618 |  |  | $ | — |
Hotel/motel |  |  | 1,087 |  |  |  | — |  |  |  | 1,532 |  |  |  | 2,619 |  |  |  | 320,308 |  |  |  | 322,927 |  |  |  | — |
Gas station |  |  | 141 |  |  |  | 410 |  |  |  | 153 |  |  |  | 704 |  |  |  | 291,853 |  |  |  | 292,557 |  |  |  | — |
Other |  |  | 423 |  |  |  | 2,036 |  |  |  | 839 |  |  |  | 3,298 |  |  |  | 728,320 |  |  |  | 731,618 |  |  |  | — |
Residential property |  |  | — |  |  |  | 122 |  |  |  | 279 |  |  |  | 401 |  |  |  | 78,677 |  |  |  | 79,078 |  |  |  | — |
Commercial and industrial loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial term |  |  | 1,443 |  |  |  | 886 |  |  |  | 3,269 |  |  |  | 5,598 |  |  |  | 118,793 |  |  |  | 124,391 |  |  |  | — |
Commercial lines of credit |  |  | — |  |  |  | 150 |  |  |  | 250 |  |  |  | 400 |  |  |  | 70,642 |  |  |  | 71,042 |  |  |  | — |
International loans |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 36,353 |  |  |  | 36,353 |  |  |  | — |
Consumer loans |  |  | 311 |  |  |  | 42 |  |  |  | 77 |  |  |  | 430 |  |  |  | 32,075 |  |  |  | 32,505 |  |  |  | — |
Total Non-PCI loans |  | $ | 3,607 |  |  | $ | 4,072 |  |  | $ | 8,595 |  |  | $ | 16,274 |  |  | $ | 2,217,815 |  |  | $ | 2,234,089 |  |  | $ | — |
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) |  |  |  |  |  |  |  |  |  |  |  |  |
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 |
December 31, 2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial property |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail |  | $ | 6,244 |  |  | $ | 6,332 |  |  | $ | 3,767 |  |  | $ | 2,477 |  |  | $ | 305 |  |  | $ | 4,342 |  |  | $ | 166 |
Hotel/motel |  |  | 6,200 |  |  |  | 6,940 |  |  |  | 4,668 |  |  |  | 1,532 |  |  |  | 1,183 |  |  |  | 5,125 |  |  |  | 530 |
Gas station |  |  | 9,389 |  |  |  | 9,884 |  |  |  | 8,592 |  |  |  | 797 |  |  |  | 209 |  |  |  | 8,939 |  |  |  | 756 |
Other |  |  | 11,451 |  |  |  | 12,882 |  |  |  | 9,555 |  |  |  | 1,896 |  |  |  | 351 |  |  |  | 10,014 |  |  |  | 1,047 |
Residential property |  |  | 2,678 |  |  |  | 2,773 |  |  |  | 2,678 |  |  |  | — |  |  |  | — |  |  |  | 2,941 |  |  |  | 117 |
Commercial and industrial loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial term |  |  | 13,834 |  |  |  | 14,308 |  |  |  | 2,929 |  |  |  | 10,905 |  |  |  | 3,806 |  |  |  | 13,083 |  |  |  | 968 |
Commercial lines of credit |  |  | 614 |  |  |  | 686 |  |  |  | 173 |  |  |  | 441 |  |  |  | 252 |  |  |  | 1,008 |  |  |  | 54 |
International loans |  |  | 1,087 |  |  |  | 1,087 |  |  |  | 286 |  |  |  | 801 |  |  |  | 78 |  |  |  | 1,284 |  |  |  | — |
Consumer loans |  |  | 1,569 |  |  |  | 1,671 |  |  |  | 644 |  |  |  | 925 |  |  |  | 284 |  |  |  | 1,612 |  |  |  | 71 |
Total Non-PCI loans |  | $ | 53,066 |  |  | $ | 56,563 |  |  | $ | 33,292 |  |  | $ | 19,774 |  |  | $ | 6,468 |  |  | $ | 48,348 |  |  | $ | 3,709 |
December 31, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial property |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail |  | $ | 5,438 |  |  | $ | 5,919 |  |  | $ | 4,948 |  |  | $ | 490 |  |  | $ | 94 |  |  | $ | 5,186 |  |  | $ | 309 |
Hotel/motel |  |  | 6,056 |  |  |  | 6,790 |  |  |  | 1,943 |  |  |  | 4,113 |  |  |  | 1,115 |  |  |  | 5,384 |  |  |  | 566 |
Gas station |  |  | 8,844 |  |  |  | 9,239 |  |  |  | 4,079 |  |  |  | 4,765 |  |  |  | 413 |  |  |  | 9,807 |  |  |  | 768 |
Other |  |  | 12,690 |  |  |  | 15,487 |  |  |  | 7,801 |  |  |  | 4,889 |  |  |  | 1,141 |  |  |  | 13,172 |  |  |  | 1,348 |
Construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 6,012 |  |  |  | 209 |
Residential property |  |  | 3,265 |  |  |  | 3,308 |  |  |  | 1,866 |  |  |  | 1,399 |  |  |  | 94 |  |  |  | 3,268 |  |  |  | 164 |
Commercial and industrial loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial term |  |  | 15,278 |  |  |  | 17,403 |  |  |  | 6,896 |  |  |  | 8,382 |  |  |  | 2,529 |  |  |  | 15,010 |  |  |  | 1,039 |
Commercial lines of credit |  |  | 1,521 |  |  |  | 1,704 |  |  |  | 848 |  |  |  | 673 |  |  |  | 230 |  |  |  | 1,688 |  |  |  | 65 |
Consumer loans |  |  | 1,652 |  |  |  | 1,711 |  |  |  | 449 |  |  |  | 1,203 |  |  |  | 615 |  |  |  | 1,205 |  |  |  | 73 |
Total Non-PCI loans |  | $ | 54,744 |  |  | $ | 61,561 |  |  | $ | 28,830 |  |  | $ | 25,914 |  |  | $ | 6,231 |  |  | $ | 60,732 |  |  | $ | 4,541 |
The following is a summary of interest foregone on impaired loans (excluding PCI loans) for the periods indicated:
|  | Year Ended December 31, |
|  | 2014 |  |  | 2013 |  |  | 2012 |
|  | (In thousands) |
Interest income that would have been recognized had impaired loans performed in accordance with their original terms |  | $ | 4,468 |  |  | $ | 4,451 |  |  | $ | 5,887 |
Less: Interest income recognized on impaired loans |  |  | (3,160 | ) |  |  | (3,708 | ) |  |  | (4,541 | )
Interest foregone on impaired loans |  | $ | 1,308 |  |  | $ | 743 |  |  | $ | 1,346 |
There were no commitments to lend additional funds to borrowers whose loans are included above. Nonaccrual Loans Loans 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 on nonaccrual status earlier, depending upon the individual circumstances surrounding the loan’s delinquency. When a loan 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 may be restored to accrual status when principal and interest payments become current and full repayment is expected. The following table details nonaccrual loans (excluding PCI loans), disaggregated by loan class, as of the dates indicated:
|  | As of December 31, |
|  | 2014 |  |  | 2013 |
|  | (In thousands) |
Real estate loans: |  |  |  |  |  |  |  |
Commercial property |  |  |  |  |  |  |  |
Retail |  | $ | 2,160 |  |  | $ | 2,946 |
Hotel/motel |  |  | 3,835 |  |  |  | 5,200 |
Gas station |  |  | 3,478 |  |  |  | 2,492 |
Other |  |  | 4,961 |  |  |  | 4,808 |
Residential property |  |  | 1,588 |  |  |  | 1,365 |
Commercial and industrial loans: |  |  |  |  |  |  |  |
Commercial term |  |  | 7,052 |  |  |  | 7,146 |
Commercial lines of credit |  |  | 466 |  |  |  | 423 |
Consumer loans |  |  | 1,742 |  |  |  | 1,497 |
Total nonaccrual Non-PCI loans |  | $ | 25,282 |  |  | $ | 25,877 |
The following table details nonperforming assets (excluding PCI loans) as of the dates indicated:
|  | As of December 31, |
|  | 2014 |  |  | 2013 |
|  | (In thousands) |
Nonaccrual Non-PCI loans |  | $ | 25,282 |  |  | $ | 25,877 |
Loans 90 days or more past due and still accruing |  |  | — |  |  |  | — |
Total nonperforming Non-PCI loans |  |  | 25,282 |  |  |  | 25,877 |
Other real estate owned |  |  | 15,790 |  |  |  | 756 |
Total nonperforming assets |  | $ | 41,072 |  |  | $ | 26,633 |
As of December 31, 2014, OREOs consisted of twenty seven properties with a combined carrying value of $15.8 million. Of the $15.8 million, $15.3 million were OREOs as loans acquired in the CBI acquisition that were foreclosed subsequent to the acquisition date. As of December 31, 2013, there were three OREOs with a combined carrying value of $756,000 and a valuation adjustment of $56,000. Troubled Debt Restructuring In April 2011, the FASB issued ASU 2011-02, “A Creditor’s Determination of Whether a Restructuring is a Troubled Debt Restructuring,” which clarifies the guidance for evaluating whether a restructuring constitutes a TDR. This guidance is effective for the first interim or annual period beginning on or after June 15, 2011, and should be applied retrospectively to the beginning of the annual period of adoption. For the purposes of measuring impairment of loans that are newly considered impaired, the guidance should be applied prospectively for the first interim or annual period beginning on or after June 15, 2011. As a result of the amendments in ASU 2011-02, we reassessed all restructurings that occurred on or after the beginning of the annual period and identified certain receivables as TDRs. Upon identifying those receivables as TDRs, we considered them impaired and applied the impairment measurement guidance prospectively for those receivables newly identified as impaired. The following table details TDRs (excluding PCI loans), disaggregated by concession type and by loan type, as of December 31, 2014, 2013 and 2012:
|  | 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, 2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial property |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 2,032 |  |  | $ | 2,032 |  |  | $ | 306 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 306 |
Hotel/motel |  |  | 1,115 |  |  |  | (53 | ) |  |  | — |  |  |  | — |  |  |  | 1,062 |  |  |  | 1,807 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,807 |
Gas station |  |  | 1,075 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,075 |  |  |  | 2,335 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,335 |
Other |  |  | 943 |  |  |  | 1,498 |  |  |  | 433 |  |  |  | 24 |  |  |  | 2,898 |  |  |  | 2,343 |  |  |  | — |  |  |  | 782 |  |  |  | 1,372 |  |  |  | 4,497 |
Residential property |  |  | 742 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 742 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 308 |  |  |  | 308 |
Commercial and industrial loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial term |  |  | 14 |  |  |  | (1 | ) |  |  | 2,556 |  |  |  | 1,481 |  |  |  | 4,050 |  |  |  | 57 |  |  |  | 226 |  |  |  | 567 |  |  |  | 1,358 |  |  |  | 2,208 |
Commercial lines of credit |  |  | 227 |  |  |  | — |  |  |  | 126 |  |  |  | 113 |  |  |  | 466 |  |  |  | 2,156 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,156 |
International loans |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 200 |  |  |  | — |  |  |  | 200 |
Consumer loans |  |  | — |  |  |  | — |  |  |  | 131 |  |  |  | — |  |  |  | 131 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total Non-PCI loans |  | $ | 4,116 |  |  | $ | 1,444 |  |  | $ | 3,246 |  |  | $ | 3,650 |  |  | $ | 12,456 |  |  | $ | 9,004 |  |  | $ | 226 |  |  | $ | 1,549 |  |  | $ | 3,038 |  |  | $ | 13,817 |
December 31, 2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial property |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 750 |  |  | $ | 750 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 474 |  |  | $ | 474 |
Hotel/motel |  |  | 1,272 |  |  |  | 758 |  |  |  | — |  |  |  | — |  |  |  | 2,030 |  |  |  | 1,000 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,000 |
Gas station |  |  | 1,291 |  |  |  | — |  |  |  | 729 |  |  |  | — |  |  |  | 2,020 |  |  |  | 365 |  |  |  | — |  |  |  | — |  |  |  | 2,609 |  |  |  | 2,974 |
Other |  |  | 403 |  |  |  | 1,279 |  |  |  | 555 |  |  |  | — |  |  |  | 2,237 |  |  |  | 2,956 |  |  |  | — |  |  |  | 1,253 |  |  |  | 2,027 |  |  |  | 6,236 |
Residential property |  |  | 795 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 795 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Commercial and industrial loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial term |  |  | 25 |  |  |  | 206 |  |  |  | 1,449 |  |  |  | 851 |  |  |  | 2,531 |  |  |  | 1,203 |  |  |  | — |  |  |  | 2,286 |  |  |  | 3,817 |  |  |  | 7,306 |
Commercial lines of credit |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 173 |  |  |  | 173 |  |  |  | — |  |  |  | — |  |  |  | 191 |  |  |  | — |  |  |  | 191 |
International loans |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,087 |  |  |  | — |  |  |  | 1,087 |
Consumer loans |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 149 |  |  |  | — |  |  |  | 149 |
Total Non-PCI loans |  | $ | 3,786 |  |  | $ | 2,243 |  |  | $ | 2,733 |  |  | $ | 1,774 |  |  | $ | 10,536 |  |  | $ | 5,524 |  |  | $ | — |  |  | $ | 4,966 |  |  | $ | 8,927 |  |  | $ | 19,417 |
December 31, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial property |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail |  | $ | 2,018 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,079 |  |  | $ | 3,097 |  |  | $ | 357 |  |  | $ | — |  |  | $ | — |  |  | $ | 665 |  |  | $ | 1,022 |
Hotel/motel |  |  | 1,340 |  |  |  | 931 |  |  |  | — |  |  |  | — |  |  |  | 2,271 |  |  |  | 2,287 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,287 |
Gas station |  |  | 1,348 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,348 |  |  |  | 372 |  |  |  | — |  |  |  | — |  |  |  | 2,666 |  |  |  | 3,038 |
Other |  |  | 442 |  |  |  | 1,681 |  |  |  | 521 |  |  |  | — |  |  |  | 2,644 |  |  |  | 2,684 |  |  |  | — |  |  |  | 448 |  |  |  | 1,391 |  |  |  | 4,523 |
Residential property |  |  | 827 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 827 |  |  |  | — |  |  |  | 572 |  |  |  | — |  |  |  | — |  |  |  | 572 |
Commercial and industrial loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial term |  |  | — |  |  |  | 676 |  |  |  | 5,387 |  |  |  | 1,415 |  |  |  | 7,478 |  |  |  | 1,088 |  |  |  | — |  |  |  | 1,190 |  |  |  | 3,260 |  |  |  | 5,538 |
Commercial lines of credit |  |  | 673 |  |  |  | — |  |  |  | 188 |  |  |  | 243 |  |  |  | 1,104 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total Non-PCI loans |  | $ | 6,648 |  |  | $ | 3,288 |  |  | $ | 6,096 |  |  | $ | 2,737 |  |  | $ | 18,769 |  |  | $ | 6,788 |  |  | $ | 572 |  |  | $ | 1,638 |  |  | $ | 7,982 |  |  | $ | 16,980 |
As of December 31, 2014, 2013 and 2012, total TDRs, excluding loans held for sale, were $26.3 million, $30.0 million and $35.7 million, respectively. A debt restructuring is considered a TDR if we grant a concession that we would not have otherwise considered to the borrower, for economic or legal reasons related to the borrower’s financial difficulties. Loans are considered to be TDRs if they were restructured through payment structure modifications such as reducing the amount of principal and interest due monthly and/or allowing for interest only monthly payments for six months or less. All TDRs are impaired and are individually evaluated for specific impairment using one of these three criteria: (1) the present value of expected future cash flows discounted at the loan’s effective interest rate; (2) the loan’s observable market price; or (3) the fair value of the collateral if the loan is collateral dependent. At December 31, 2014, 2013 and 2012, TDRs, excluding loans held for sale, were subjected to specific impairment analysis, and $2.9 million, $2.8 million and $3.6 million, respectively, of reserves relating to these loans were included in the allowance for loan losses. The following table details TDRs (excluding PCI loans), disaggregated by loan class, for the years ended December 31, 2014, 2013 and 2012:
|  | December 31, 2014 |  |  | December 31, 2013 |  |  | December 31, 2012 |
|  | Number of Loans |  |  | Pre- Modification Outstanding Recorded Investment |  |  | Post- Modification Outstanding Recorded Investment |  |  | Number of Loans |  |  | Pre- Modification Outstanding Recorded Investment |  |  | Post- Modification Outstanding Recorded Investment |  |  | Number of Loans |  |  | Pre- Modification Outstanding Recorded Investment |  |  | Post- Modification Outstanding Recorded Investment |
|  |  |  |  |  |  |  |  |  |  | (In thousands, except number of loans) |  |  |  |  |  |  |  |  |  |
Real estate loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial property |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail (1) |  |  | 2 |  |  | $ | 2,205 |  |  | $ | 2,032 |  |  |  | — |  |  | $ | — |  |  | $ | — |  |  |  | 3 |  |  | $ | 1,068 |  |  | $ | 1,023 |
Hotel/motel (2) |  |  | 1 |  |  |  | 832 |  |  |  | 821 |  |  |  | 1 |  |  |  | 1,000 |  |  |  | 1,000 |  |  |  | 3 |  |  |  | 2,402 |  |  |  | 2,305 |
Gas station (3) |  |  | 1 |  |  |  | 2,040 |  |  |  | 1,979 |  |  |  | 3 |  |  |  | 903 |  |  |  | 819 |  |  |  | 2 |  |  |  | 1,839 |  |  |  | 1,720 |
Other (4) |  |  | 3 |  |  |  | 1,422 |  |  |  | 1,352 |  |  |  | 4 |  |  |  | 1,853 |  |  |  | 1,796 |  |  |  | 6 |  |  |  | 4,386 |  |  |  | 4,176 |
Residential property (5) |  |  | 1 |  |  |  | 317 |  |  |  | 308 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Commercial and industrial loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial term (6) |  |  | 5 |  |  |  | 721 |  |  |  | 629 |  |  |  | 20 |  |  |  | 4,068 |  |  |  | 3,534 |  |  |  | 44 |  |  |  | 6,423 |  |  |  | 5,634 |
Commercial lines of credit (7) |  |  | 3 |  |  |  | 2,366 |  |  |  | 2,509 |  |  |  | 2 |  |  |  | 220 |  |  |  | 191 |  |  |  | 1 |  |  |  | 202 |  |  |  | 188 |
International loans (8) |  |  | 1 |  |  |  | 480 |  |  |  | 200 |  |  |  | 2 |  |  |  | 1,584 |  |  |  | 1,087 |  |  |  | — |  |  |  | — |  |  |  | — |
Consumer loans (9) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1 |  |  |  | 149 |  |  |  | 149 |  |  |  | — |  |  |  | — |  |  |  | — |
Total Non-PCI loans |  |  | 17 |  |  | $ | 10,383 |  |  | $ | 9,830 |  |  |  | 33 |  |  | $ | 9,777 |  |  | $ | 8,576 |  |  |  | 59 |  |  | $ | 16,320 |  |  | $ | 15,046 |
(1) | Includes modifications of $2.0 million through payment deferrals for the year ended December 31, 2014, and modifications of $357,000 through a payment deferral and $665,000 through extensions of maturity for the year ended December 31, 2012.
(2) | Includes a modification of $821,000 through a payment deferral for the year ended December 31, 2014, a modification of $1.0 million through a payment deferral for the year ended December 31, 2013, and modifications of $2.3 million through payment deferrals and $18,000 through a reduction of principal or accrued interest for the year ended December 31, 2012.
(3) | Includes a modification of $2.0 million through a payment deferral for the year ended December 31, 2014, modifications of $90,000 through a payment deferral and $729,000 through reductions of principal or accrued interest for the year ended December 31, 2013, and modifications of $1.7 million through payment deferrals for the year ended December 31, 2012.
(4) | Includes modifications of $943,000 through a payment deferral, $385,000 through a reduction of principal or accrued interest and $24,000 through an extension of maturity for the year ended December 31, 2014, modifications of $365,000 through a payment deferral, $785,000 through reductions of principal or accrued interest and $645,000 through an extension of maturity for the year ended December 31, 2013, and modifications of $2.3 million through payments deferrals, $520,000 through reductions of principal or accrued interest and $1.4 million through an extension of maturities for the year ended December 31, 2012.
(5) | Includes a modification of $308,000 through an extension of maturity for the year ended December 31, 2014.
(6) | Includes modifications of $184,000 through reductions of principal or accrued interest and $445,000 through extensions of maturity for the year ended December 31, 2014, modifications of $386,000 through payment deferrals, $733,000 through reductions of principal or accrued interest and $2.5 million through extensions of maturity for the year ended December 31, 2013, and modifications of $1.0 million through payment deferrals, $968,000 through reductions of principal or accrued interest and $3.6 million through extensions of maturity for the year ended December 31, 2012.
(7) | Includes modifications of $2.4 million through payment deferrals and $126,000 through a reduction of principal or accrued interest for the year ended December 31, 2014, modifications of $191,000 through reductions of principal or accrued interest for the year ended December 31, 2013, and a modification of $188,000 through a reduction of principal or accrued interest for the year ended December 31, 2012.
(8) | Includes modifications of $200,000 through a reduction of principal or accrued interest for the year ended December 31, 2014, and modifications of $1.1 million through reductions of principal or accrued interest for the year ended December 31, 2013.
(9) | Includes a modification of $149,000 through a reduction of principal or accrued interest for the year ended December 31, 2012.
During the year ended December 31, 2014, we restructured monthly payments on 17 loans, with a net carrying value of $9.8 million as of December 31, 2014, through temporary payment structure modifications or re-amortization. For the restructured loans on accrual status, we determined that, based on the financial capabilities of the borrowers at the time of the loan restructuring and the borrowers’ past performance in the payment of debt service under the previous loan terms, performance and collection under the revised terms are probable. The following table details TDRs (excluding PCI loans) that defaulted subsequent to the modifications occurring within the previous twelve months, disaggregated by loan class, for years ended December 31, 2014, 2013 and 2012, respectively:
|  | For the Year Ended |
|  | December 31, 2014 |  |  | December 31, 2013 |  |  | December 31, 2012 |
|  | Number of Loans |  |  | Recorded Investment |  |  | Number of Loans |  |  | Recorded Investment |  |  | Number of Loans |  |  | Recorded Investment |
|  | (In thousands, except number of loans) |
Real estate loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial property |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail |  |  | 1 |  |  | $ | 1,856 |  |  |  | — |  |  | $ | — |  |  |  | — |  |  | $ | — |
Gas station |  |  | — |  |  |  | — |  |  |  | 1 |  |  |  | 90 |  |  |  | — |  |  |  | — |
Other |  |  | 3 |  |  |  | 1,352 |  |  |  | 1 |  |  |  | 125 |  |  |  | — |  |  |  | — |
Commercial and industrial loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial term |  |  | — |  |  |  | — |  |  |  | 2 |  |  |  | 123 |  |  |  | 11 |  |  |  | 719 |
Commercial lines of credit |  |  | 2 |  |  |  | 353 |  |  |  | — |  |  |  | — |  |  |  | 1 |  |  |  | 188 |
Total Non-PCI loans |  |  | 6 |  |  | $ | 3,561 |  |  |  | 4 |  |  | $ | 338 |  |  |  | 12 |  |  | $ | 907 |
Purchased Credit Impaired Loans As part of the acquisition of CBI, the Company purchased loans for which there was, at acquisition, evidence of deterioration of credit quality subsequent to origination and it was probable, at acquisition, that all contractually required payments would not be collected. The following table summarizes the changes in carrying value of PCI loans during the year ended December 31, 2014:
|  | Carrying |  |  | Accretable |
|  | Amount |  |  | Yield |
|  | (In thousands) |
Balance at January 1, 2014 |  | $ | — |  |  | $ | — |
Additions from CBI acquisition at August 31, 2014 |  |  | 65,346 |  |  |  | (10,856 | )
Accretion |  |  | 1,448 |  |  |  | 1,448 |
Payments received |  |  | (17,803 | ) |  |  | — |
Disposal/transfers to OREO |  |  | (4,490 | ) |  |  | — |
Increase in expected cash flows, net |  |  | — |  |  |  | (1,617 | )
Provision for credit losses |  |  | (1,026 | ) |  |  | — |
Balance at December 31, 2014 |  | $ | 43,475 |  |  | $ | (11,025 | )
As of December 31, 2014, pass/pass-watch, special mention and classified (substandard and doubtful) PCI loans, disaggregated by loan class, were as follows:
|  | As of December 31, 2014 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | Allowance |  |  | Total |
|  | Pass/Pass-Watch |  |  | Special Mention |  |  | Classified |  |  | Total |  |  | Amount |  |  | PCI Loans |
|  | (In thousands) |
Real estate loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial property |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail |  | $ | 1,207 |  |  | $ | 219 |  |  | $ | 7,109 |  |  | $ | 8,535 |  |  | $ | 401 |  |  | $ | 8,134 |
Hotel/motel |  |  | — |  |  |  | — |  |  |  | 7,682 |  |  |  | 7,682 |  |  |  | 99 |  |  |  | 7,583 |
Gas station |  |  | — |  |  |  | 1,242 |  |  |  | 6,503 |  |  |  | 7,745 |  |  |  | 302 |  |  |  | 7,443 |
Other |  |  | — |  |  |  | — |  |  |  | 5,796 |  |  |  | 5,796 |  |  |  | 65 |  |  |  | 5,731 |
Residential property |  |  | — |  |  |  | — |  |  |  | 14,371 |  |  |  | 14,371 |  |  |  | 28 |  |  |  | 14,343 |
Commercial and industrial loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial term |  |  | — |  |  |  | — |  |  |  | 327 |  |  |  | 327 |  |  |  | 131 |  |  |  | 196 |
Consumer loans |  |  | — |  |  |  | — |  |  |  | 45 |  |  |  | 45 |  |  |  | — |  |  |  | 45 |
Total PCI loans |  | $ | 1,207 |  |  | $ | 1,461 |  |  | $ | 41,833 |  |  | $ | 44,501 |  |  | $ | 1,026 |  |  | $ | 43,475 |
Loans accounted for as PCI are generally considered accruing and performing loans as the accretable discount is accreted to interest income over the estimated life of the loan when cash flows are reasonably estimable. Accordingly, PCI loans that are contractually past due are still considered to be accruing and performing loans. If the timing and amount of future cash flows is not reasonably estimable, the loans are classified as nonaccrual loans and interest income is not recognized until the timing and amount of future cash flows can be reasonably estimated. As of December 31, 2014, we had no PCI loans on nonaccrual status and included in the delinquency table below. The following table presents a summary of the borrowers’ underlying payment status of PCI loans 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 |  |  | Allowance Amount |  |  | Total PCI Loans |
|  | (In thousands) |
December 31, 2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial property |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail |  | $ | 93 |  |  | $ | 287 |  |  | $ | 3,815 |  |  | $ | 4,195 |  |  | $ | 4,340 |  |  | $ | 8,535 |  |  | $ | 401 |  |  | $ | 8,134 |
Hotel/motel |  |  | 312 |  |  |  | — |  |  |  | 2,490 |  |  |  | 2,802 |  |  |  | 4,880 |  |  |  | 7,682 |  |  |  | 99 |  |  |  | 7,583 |
Gas station |  |  | 1,139 |  |  |  | 1,053 |  |  |  | 3,178 |  |  |  | 5,370 |  |  |  | 2,375 |  |  |  | 7,745 |  |  |  | 302 |  |  |  | 7,443 |
Other |  |  | — |  |  |  | — |  |  |  | 5,235 |  |  |  | 5,235 |  |  |  | 561 |  |  |  | 5,796 |  |  |  | 65 |  |  |  | 5,731 |
Residential property |  |  | — |  |  |  | — |  |  |  | 13,594 |  |  |  | 13,594 |  |  |  | 777 |  |  |  | 14,371 |  |  |  | 28 |  |  |  | 14,343 |
Commercial and industrial loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial term |  |  | 30 |  |  |  | — |  |  |  | 135 |  |  |  | 165 |  |  |  | 162 |  |  |  | 327 |  |  |  | 131 |  |  |  | 196 |
Consumer loans |  |  | — |  |  |  | 17 |  |  |  | 28 |  |  |  | 45 |  |  |  | — |  |  |  | 45 |  |  |  | — |  |  |  | 45 |
Total PCI loans |  | $ | 1,574 |  |  | $ | 1,357 |  |  | $ | 28,475 |  |  | $ | 31,406 |  |  | $ | 13,095 |  |  | $ | 44,501 |  |  | $ | 1,026 |  |  | $ | 43,475 |
Servicing Assets & Liabilities The changes in servicing assets and liabilities for the years ended December 31, 2014 and 2013 were as follows:
|  | As of December 31, |
|  | 2014 |  |  | 2013 |
|  | (In thousands) |
Servicing assets: |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | 6,833 |  |  | $ | 5,542 |
Additions from CBI acquisition |  |  | 7,497 |  |  |  | — |
Addition related to sale of SBA loans |  |  | 1,332 |  |  |  | 2,754 |
Amortization |  |  | (1,889 | ) |  |  | (1,463 | )
Balance at end of period |  | $ | 13,773 |  |  | $ | 6,833 |
Servicing liabilities: |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | 106 |  |  | $ | 120 |
Additions from CBI acquisition |  |  | 6,039 |  |  |  | — |
Amortization |  |  | (174 | ) |  |  | (14 | )
Balance at end of period |  | $ | 5,971 |  |  | $ | 106 |
At December 31, 2014 and 2013, we serviced loans sold to unaffiliated parties in the amounts of $500.9 million and $350.0 million, respectively. These represented loans that have been sold for which the Bank continues to provide servicing. These loans are maintained off balance sheet and are not included in the loans receivable balance. All of the loans being serviced were SBA loans. FDIC Loss Sharing Asset & Liability The FDIC loss sharing asset related to the assumption of Single Family and Commercial Shared-Loss Agreement (“SLAs”) between CBI and the FDIC arising from the CBI’s acquisition of Mutual Bank. The loss sharing asset was measured at its fair value as of August 31, 2014 in conjunction with the acquisition of CBI. During the third quarter of 2014, the Bank submitted losses in excess of the stated reimbursement threshold of $611.0 million, increasing the reimbursable percentage to 95 from 80. The three-year recovery period on the Commercial Share-Loss Portfolio commenced on October 1, 2014. During this period, 95 percent of any recoveries of previously charged-off and reimbursed Commercial SLA loans need to be reimbursed to the FDIC, less any reasonable recovery costs incurred. As of December 31, 2014, the FDIC loss sharing liability was related to $2.1 million net payables to the FDIC, consisting of $3.3 million of the FDIC recoveries partially offset by $1.2 million of reimbursable expense owed to the Bank. Of the $2.1 million net payable to the FDIC, $102,000 was related to the Single Family SLA Portfolio.

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