| Loans And Allowance For Credit Losses | Loans and Allowance for Credit Losses Major classifications within the Company’s held for investment loan portfolio at March 31, 2020 and December 31, 2019 are as follows: (In thousands) March 31, 2020 December 31, 2019 Commercial: Business $ 5,773,865 $ 5,565,449 Real estate – construction and land 873,402 899,377 Real estate – business 2,960,308 2,833,554 Personal Banking: Real estate – personal 2,464,819 2,354,760 Consumer 1,941,787 1,964,145 Revolving home equity 349,735 349,251 Consumer credit card 706,753 764,977 Overdrafts 3,143 6,304 Total loans (1) $ 15,073,812 $ 14,737,817 (1) Accrued interest receivable totaled $38.1 million at March 31, 2020 and was included within other assets on the consolidated balance sheet. For the three months ended March 31, 2020, the Company wrote-off accrued interest by reversing interest income of $54 thousand and $1.9 million in the Commercial and Personal Banking portfolios, respectively. At March 31, 2020, loans of $4.1 billion were pledged at the Federal Home Loan Bank as collateral for borrowings and letters of credit obtained to secure public deposits. Additional loans of $1.6 billion were pledged at the Federal Reserve Bank as collateral for discount window borrowings. Allowance for credit losses The allowance for credit losses is measured using an average historical loss model which incorporates relevant information about past events, including historical credit loss experience on loans with similar risk characteristics, current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the loans. The allowance for credit losses is measured on a collective (pool) basis. Loans are aggregated into pools based on similar risk characteristics including borrower type, collateral type and expected credit loss patterns. Loans that do not share similar risk characteristics, primarily large loans on non-accrual status, are evaluated on an individual basis. For loans evaluated for credit losses on a collective basis, average historical loss rates are calculated for each pool using the Company’s historical net charge-offs (combined charge-offs and recoveries by observable historical reporting period) and outstanding loan balances during a lookback period. Lookback periods can be different based on the individual pool and represent management’s credit expectations for the pool of loans over the remaining contractual life. In certain loan pools, if the Company’s own historical loss rate is not reflective of the future loss expectations, the historical loss rate is augmented by industry and peer data. The calculated average net charge-off rate is then adjusted for current conditions and reasonable and supportable forecasts. These adjustments increase or decrease the average historical loss rate to reflect expectations of future losses given a single path economic forecast of key macroeconomic variables including GDP, disposable income, unemployment rate, various interest rates, CPI inflation rate, HPI, CREPI and market volatility. The adjustments are based on results from various regression models projecting the impact of the macroeconomic variables to loss rates. The forecast is used for a reasonable and supportable period before reverting back to historical averages using a straight-line method. The forecast adjusted loss rate is applied to the loans over the remaining contractual lives, adjusted for expected prepayments. The contractual term excludes expected extensions, renewals and modifications unless there is a reasonable expectation that a troubled debt restructuring will be executed. Credit cards and certain similar consumer lines of credit do not have stated maturities and therefore, for these loan classes, remaining contractual lives are determined by estimating future cash flows expected to be received from customers until payments have been fully allocated to outstanding balances. Additionally, the allowance for credit losses considers other qualitative factors not included in historical loss rates or macroeconomic forecast such as changes in portfolio composition, underwriting practices, or significant unique events or conditions. Key model assumptions in the Company’s allowance for credit loss model include the forecast, the reasonable and supportable period, prepayment assumptions and qualitative factors applied for portfolio composition changes or credit administration changes. The assumptions utilized in estimating the Company’s allowance for credit losses at March 31, 2020 and January 1, 2020 (implementation) are discussed below. Key Assumption March 31, 2020 January 1, 2020 (implementation) Overall economic forecast • Immediate, sharp recession caused by unprecedented pandemic event, COVID-19 • Extremely low interest rates • Recovery into 2021 • Significant uncertainty regarding the severity and duration of the pandemic's impact on the economy Stable economic environment with slight positive growth projections in overall economic indicators, short-term and long-term, reflecting low unemployment in a late-stage economic cycle Reasonable and supportable period and related reversion period • One year for commercial loans • Two years for personal banking loans • Reversion to historical average loss rates within two quarters using a straight-line method Same as March 31, 2020 Forecasted macro-economic variables • Unemployment rate ranging from 3.6% to 6.0% during the supportable forecast period • Real GDP growth ranges from -11.3% to 13.8% • Prime rate ranges from 3.3% to 4.2% • See "Qualitative factors" below for qualitative adjustments made to the forecasted macro-economic variables stated herein • Unemployment rate ranges from 3.4% to 3.8% during the supportable forecast period • Real GDP growth ranges from 1.2% to 1.8% • Prime rate ranges from 4.6% to 4.8% • See "Qualitative factors" below for qualitative adjustments made to the forecasted macro-economic variables stated herein Prepayment assumptions Commercial loans • 5% for most loan pools Personal banking loans ◦ Ranging from 16.5% to 24.0% for most loan pools • 58.1% for consumer credit cards Commercial loans • 5% for most loan pools Personal banking loans ◦ Ranging from 14.9% to 25.6% for most loan pools • 57.2% for consumer credit cards Qualitative factors Added reserves using qualitative processes related to: • Increase loss rates to reflect a recession past 2020 and higher unemployment • Loans originated in our recent expansion markets • Loans that are designated as shared national credits • Loans downgraded to special mention, substandard, or non-accrual status Added reserves using qualitative processes related to: • Loans originated in our recent expansion markets • Loans that are designated as shared national credits • Loans downgraded to special mention, substandard, or non-accrual status The allowance for credit losses is an estimate that takes a significant amount of time to produce and evaluate through the various quality control and governance steps. The forecasted macro-economic variables utilized by the above model were derived in mid-March and after evaluation by the Company’s Forecast Committee were determined to be more optimistic than the prevailing expectations. As a result, the Company applied judgement to qualitatively adjust loss rates to reflect a more severe recession. The Company’s loss experience during the Great Recession served as a guide for the qualitative adjustments. The liability for unfunded lending commitments utilizes the same model as the allowance for credit losses on loans, however, the liability for unfunded lending commitments incorporates an assumption for the portion of unfunded commitments that are expected to be funded. Sensitivity in the Allowance for Credit Loss model The allowance for credit losses is an estimate that requires significant judgment including projections of the macro-economic environment. The forecasted macro-economic environment continuously changes which can cause fluctuations in estimated expected losses. The current forecast projects a sharp recession with a recovery in the next two years as a result of the Coronavirus outbreak. This pandemic is unprecedented and information that could be used in the estimation of the allowance for credit losses changes frequently. Events such as the timing of governmental required business lock downs or possible additional waves of infection could prolong and deepen the projected recession. A summary of the activity in the allowance for credit losses on loans during the three months ended March 31, 2020 follows: For the Three Months Ended March 31 (In thousands) Commercial Personal Banking Total ALLOWANCE FOR CREDIT LOSSES ON LOANS Balance at December 31, 2019 $ 91,760 $ 68,922 $ 160,682 Adoption of ASU 2016-13 (29,711) 8,672 (21,039) Balance at January 1 $ 62,049 $ 77,594 $ 139,643 Provision for credit losses on loans 21,108 21,760 42,868 Deductions: Loans charged off 416 13,976 14,392 Less recoveries on loans 810 2,724 3,534 Net loan charge-offs (recoveries) (394) 11,252 10,858 Balance March 31, 2020 $ 83,551 $ 88,102 $ 171,653 LIABILITY FOR UNFUNDED LENDING COMMITMENTS Balance at December 31, 2019 $ 399 $ 676 $ 1,075 Adoption of ASU 2016-13 16,057 33 16,090 Balance at January 1 $ 16,456 $ 709 $ 17,165 Provision for credit losses on unfunded lending commitments 14,605 480 15,085 Balance March 31, 2020 $ 31,061 $ 1,189 $ 32,250 ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LIABILITY FOR UNFUNDED LENDING COMMITMENTS $ 114,612 $ 89,291 $ 203,903 Allowance for loan losses A summary of the activity in the allowance for loan losses during the three months ended March 31, 2019 follows: For the Three Months Ended March 31 (In thousands) Commercial Personal Banking Balance at January 1 $ 92,869 $ 67,063 $ 159,932 Provision for loan losses 1,168 11,295 12,463 Deductions: Loans charged off 527 14,204 14,731 Less recoveries on loans 133 2,885 3,018 Net loan charge-offs (recoveries) 394 11,319 11,713 Balance March 31, 2019 $ 93,643 $ 67,039 $ 160,682 Delinquent and non-accrual loans The Company considers loans past due on the day following the contractual repayment date, if the contractual repayment was not received by the Company as of the end of the business day. The following table provides aging information on the Company’s past due and accruing loans, in addition to the balances of loans on non-accrual status, at March 31, 2020 and December 31, 2019. (In thousands) Current or Less Than 30 Days Past Due 30 – 89 Days Past Due 90 Days Past Due and Still Accruing Non-accrual Total March 31, 2020 Commercial: Business $ 5,750,172 $ 15,927 $ 410 $ 7,356 $ 5,773,865 Real estate – construction and land 853,400 19,997 3 2 873,402 Real estate – business 2,954,825 3,771 180 1,532 2,960,308 Personal Banking: Real estate – personal 2,450,868 9,952 2,256 1,743 2,464,819 Consumer 1,911,853 27,724 2,210 — 1,941,787 Revolving home equity 347,992 1,208 535 — 349,735 Consumer credit card 687,394 8,433 10,926 — 706,753 Overdrafts 2,904 239 — — 3,143 Total $ 14,959,408 $ 87,251 $ 16,520 $ 10,633 $ 15,073,812 December 31, 2019 Commercial: Business $ 5,545,104 $ 12,064 $ 792 $ 7,489 $ 5,565,449 Real estate – construction and land 882,826 13,046 3,503 2 899,377 Real estate – business 2,830,494 2,030 — 1,030 2,833,554 Personal Banking: Real estate – personal 2,345,243 6,129 1,689 1,699 2,354,760 Consumer 1,928,082 34,053 2,010 — 1,964,145 Revolving home equity 347,258 1,743 250 — 349,251 Consumer credit card 742,659 10,703 11,615 — 764,977 Overdrafts 5,972 332 — — 6,304 Total $ 14,627,638 $ 80,100 $ 19,859 $ 10,220 $ 14,737,817 At March 31, 2020, the Company had $7.0 million and $540 thousand of non-accrual business and business real estate loans, respectively, that had no allowance for credit loss. The Company did not record any interest income on non-accrual loans during the three months ended March 31, 2020. Credit quality indicators The following table provides information about the credit quality of the Commercial loan portfolio. The Company utilizes an internal risk rating system comprised of a series of grades to categorize loans according to perceived risk associated with the expectation of debt repayment based on borrower specific information including but not limited to current financial information, historical payment experience, industry information, collateral levels and collateral types. The “pass” category consists of a range of loan grades that reflect increasing, though still acceptable, risk. A loan is assigned the risk rating at origination and then monitored throughout the contractual term for possible risk rating changes. Movement of risk through the various grade levels in the “pass” category is monitored for early identification of credit deterioration. The “special mention” rating is applied to loans where the borrower exhibits negative financial trends due to borrower specific or systemic conditions that, if left uncorrected, threaten its capacity to meet its debt obligations. The borrower is believed to have sufficient financial flexibility to react to and resolve its negative financial situation. It is a transitional grade that is closely monitored for improvement or deterioration. The “substandard” rating is applied to loans where the borrower exhibits well-defined weaknesses that jeopardize its continued performance and are of a severity that the distinct possibility of default exists. Loans are placed on “non-accrual” when management does not expect to collect payments consistent with acceptable and agreed upon terms of repayment. All loans are analyzed for risk rating updates annually. For larger loans, rating assessments may be more frequent if relevant information is obtained earlier through debt convent monitoring or overall relationship management. Smaller loans are monitored as identified by the loan officer based on the risk profile of the individual borrower or if the loan becomes past due related to credit issues. Loans rated Special Mention, Substandard or Non-accrual are subject to quarterly review and monitoring processes. In addition to the regular monitoring performed by the lending personnel and credit committees, loans are subject to review by a credit review department which verifies the appropriateness of the risk ratings for the loans chosen as part of its risk-based review plan. The risk category of loans in the Commercial portfolio as of March 31, 2020 are as follows: Term Loans Amortized Cost Basis by Origination Year (In thousands) 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Basis Total Business Risk Rating: Pass $ 564,816 $ 1,429,136 $ 627,725 $ 424,625 $ 236,325 $ 364,452 $ 1,907,436 $ 5,554,515 Special mention 40,720 14,556 596 2,704 2,699 712 27,422 89,409 Substandard 12,032 22,378 4,732 4,957 1,944 15,378 61,164 122,585 Non-accrual 2,876 87 — 96 — 4,297 — 7,356 Total Business: $ 620,444 $ 1,466,157 $ 633,053 $ 432,382 $ 240,968 $ 384,839 $ 1,996,022 $ 5,773,865 Real estate-construction Risk Rating: Pass $ 84,761 $ 386,165 $ 158,298 $ 88,418 $ 57,393 $ 1,228 $ 44,130 $ 820,393 Special mention — 1,163 10,110 13,143 — 27,535 — 51,951 Substandard 462 — 594 — — — — 1,056 Non-accrual — — — — — 2 — 2 Total Real estate-construction: $ 85,223 $ 387,328 $ 169,002 $ 101,561 $ 57,393 $ 28,765 $ 44,130 $ 873,402 Real estate- business Risk Rating: Pass $ 252,996 $ 805,807 $ 524,329 $ 338,898 $ 428,528 $ 341,534 $ 67,584 $ 2,759,676 Special mention 962 6,243 1,057 58,589 9,896 4,022 42 80,811 Substandard 3,688 7,348 5,159 44,689 14,052 37,988 5,365 118,289 Non-accrual — 316 542 — 540 134 — 1,532 Total Real-estate business: $ 257,646 $ 819,714 $ 531,087 $ 442,176 $ 453,016 $ 383,678 $ 72,991 $ 2,960,308 Commercial loans Risk Rating: Pass $ 902,573 $ 2,621,108 $ 1,310,352 $ 851,941 $ 722,246 $ 707,214 $ 2,019,150 $ 9,134,584 Special mention 41,682 21,962 11,763 74,436 12,595 32,269 27,464 222,171 Substandard 16,182 29,726 10,485 49,646 15,996 53,366 66,529 241,930 Non-accrual 2,876 403 542 96 540 4,433 — 8,890 Total Commercial loans: $ 963,313 $ 2,673,199 $ 1,333,142 $ 976,119 $ 751,377 $ 797,282 $ 2,113,143 $ 9,607,575 Information about the credit quality of the Commercial loan portfolio as of December 31, 2019 follows: Commercial Loans (In thousands) Business Real Estate-Construction Real Estate- Business Total December 31, 2019 Pass $ 5,393,928 $ 856,364 $ 2,659,827 $ 8,910,119 Special mention 80,089 42,541 92,626 215,256 Substandard 83,943 470 80,071 164,484 Non-accrual 7,489 2 1,030 8,521 Total $ 5,565,449 $ 899,377 $ 2,833,554 $ 9,298,380 The credit quality of Personal Banking loans is monitored primarily on the basis of aging/delinquency, and this information is provided as of March 31, 2020 below: Term Loans Amortized Cost Basis by Origination Year (In thousands) 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Basis Total Real estate-personal Current to 90 days past due $ 230,746 $ 623,695 $ 298,166 $ 273,521 $ 291,938 $ 731,052 $ 11,702 $ 2,460,820 Over 90 days past due — 535 37 45 734 765 140 2,256 Non-accrual — 1 — 47 68 1,627 — 1,743 Total Real estate-personal: $ 230,746 $ 624,231 $ 298,203 $ 273,613 $ 292,740 $ 733,444 $ 11,842 $ 2,464,819 Consumer Current to 90 days past due $ 129,190 $ 481,531 $ 250,426 $ 193,273 $ 126,054 $ 153,143 $ 605,960 $ 1,939,577 Over 90 days past due — 429 140 281 248 409 703 2,210 Total Consumer: $ 129,190 $ 481,960 $ 250,566 $ 193,554 $ 126,302 $ 153,552 $ 606,663 $ 1,941,787 Revolving home equity Current to 90 days past due $ — $ — $ — $ — $ — $ — $ 349,200 $ 349,200 Over 90 days past due — — — — — — 535 535 Total Revolving home equity: $ — $ — $ — $ — $ — $ — $ 349,735 $ 349,735 Consumer credit card Current to 90 days past due $ — $ — $ — $ — $ — $ — $ 695,827 $ 695,827 Over 90 days past due — — — — — — 10,926 10,926 Total Consumer credit card: $ — $ — $ — $ — $ — $ — $ 706,753 $ 706,753 Overdrafts Current to 90 days past due $ 3,143 $ — $ — $ — $ — $ — $ — $ 3,143 Over 90 days past due — — — — — — — — Total Overdrafts: $ 3,143 $ — $ — $ — $ — $ — $ — $ 3,143 Personal banking loans Current to 90 days past due $ 363,079 $ 1,105,226 $ 548,592 $ 466,794 $ 417,992 $ 884,195 $ 1,662,689 $ 5,448,567 Over 90 days past due — 964 177 326 982 1,174 12,304 15,927 Non-accrual — 1 — 47 68 1,627 — 1,743 Total Personal banking loans: $ 363,079 $ 1,106,191 $ 548,769 $ 467,167 $ 419,042 $ 886,996 $ 1,674,993 $ 5,466,237 Collateral-dependent loans The Company's collateral-dependent loans are comprised of large loans on non-accrual status. The Company requires that collateral-dependent loans are either over-collateralized or carry collateral equal to the amortized cost of the loan. The following table presents the amortized cost basis of collateral-dependent loans as of March 31, 2020. (In thousands) Business Assets Future Revenue Streams Real Estate Energy Total Commercial: Business $ 149 $ 3,996 $ — $ 2,876 $ 7,020 Real estate - business — — 540 — 540 Total $ 149 $ 3,996 $ 540 $ 2,876 $ 7,560 Other Personal Banking loan information As noted above, the credit quality of Personal Banking loans is monitored primarily on the basis of aging/delinquency, and this information is provided in the table in the above section on "Credit quality indicators." In addition, FICO scores are obtained and updated on a quarterly basis for most of the loans in the Personal Banking portfolio. This is a published credit score designed to measure the risk of default by taking into account various factors from a borrower's financial history and is considered supplementary information utilized by the Company, as management does not consider this information in evaluating the allowance for credit losses on loans. The Bank normally obtains a FICO score at the loan's origination and renewal dates, and updates are obtained on a quarterly basis. Excluded from the table below are certain personal real estate loans for which FICO scores are not obtained because the loans generally pertain to commercial customer activities and are often underwritten with other collateral considerations. These loans totaled $196.2 million at March 31, 2020 and $198.2 million at December 31, 2019. The table also excludes consumer loans related to the Company's patient healthcare loan program, which totaled $198.8 million at March 31, 2020 and $199.2 million at December 31, 2019. As the healthcare loans are guaranteed by the hospital, customer FICO scores are not obtained for these loans. The personal real estate loans and consumer loans excluded below totaled less than 8% of the Personal Banking portfolio. For the remainder of loans in the Personal Banking portfolio, the table below shows the percentage of balances outstanding at March 31, 2020 and December 31, 2019 by FICO score. Personal Banking Loans % of Loan Category Real Estate - Personal Consumer Revolving Home Equity Consumer Credit Card March 31, 2020 FICO score: Under 600 1.1 % 3.1 % 1.5 % 5.7 % 600 - 659 1.9 4.7 2.5 14.6 660 - 719 8.9 16.1 9.5 34.5 720 - 779 26.1 25.4 22.5 26.1 780 and over 62.0 50.7 64.0 19.1 Total 100.0 % 100.0 % 100.0 % 100.0 % December 31, 2019 FICO score: Under 600 1.0 % 3.0 % 1.7 % 5.6 % 600 - 659 1.9 5.2 1.9 14.3 660 - 719 9.2 15.4 9.0 32.2 720 - 779 25.7 27.0 21.5 26.6 780 and over 62.2 49.4 65.9 21.3 Total 100.0 % 100.0 % 100.0 % 100.0 % Troubled debt restructurings Restructured loans are those extended to borrowers who are experiencing financial difficulty and who have been granted a concession. Restructured loans are placed on non-accrual status if the Company does not believe it probable that amounts due under the contractual terms will be collected. Commercial performing restructured loans are primarily comprised of certain business, construction and business real estate loans classified as substandard but renewed at rates judged to be non-market. These loans are performing in accordance with their modified terms, and because the Company believes it probable that all amounts due under the modified terms of the agreements will be collected, interest on these loans is being recognized on an accrual basis. Troubled debt restructurings also include certain credit card and other small consumer loans under various debt management and assistance programs. Modifications to these loans generally involve removing the available line of credit, placing loans on amortizing status, and lowering the contractual interest rate. Certain personal real estate, revolving home equity, and consumer loans were classified as consumer bankruptcy troubled debt restructurings because they were not reaffirmed by the borrower in bankruptcy proceedings. Interest on these loans is being recognized on an accrual basis, as the borrowers are continuing to make payments. Other consumer loans classified as troubled debt restructurings consist of various other workout arrangements with consumer customers. Section 4013 of the CARES Act was signed into law on March 27, 2020, and includes a provision that short-term modifications are not troubled debt restructurings, if made on a good-faith basis in response to COVID-19 to borrowers who were current prior to December 31, 2019. In addition to the CARES Act, bank regulatory agencies issued interagency guidance stating suspending the troubled debt restructuring classification would be appropriate if the borrower was less than 30 days past due at the time the modification program is implemented. The guidance also provides that loans generally will not be adversely classified if the short-term modification is related to COVID-19 relief programs. The Company will follow the guidance under the CARES Act and the interagency guidance when determining if a customer’s modification is subject to troubled debt restructuring classification. If it is deemed the modification is not short-term, not COVID-19 related or the customer does not meet the criteria under the guidance to be scoped out of troubled debt restructuring classification, the Company will evaluate the loan modifications under its existing framework which requires modifications that result in a concession to a borrower experiencing financial difficulty be accounted for as a troubled debt restructuring. (In thousands) March 31, 2020 December 31, 2019 Accruing restructured loans: Commercial $ 64,369 $ 55,934 Assistance programs 8,590 8,365 Consumer bankruptcy 3,301 3,592 Other consumer 3,245 3,621 Non-accrual loans 7,782 7,938 Total troubled debt restructurings $ 87,287 $ 79,450 The table below shows the balance of troubled debt restructurings by loan classification at March 31, 2020, in addition to the outstanding balances of these restructured loans which the Company considers to have been in default at any time during the past twelve months. For purposes of this disclosure, the Company considers "default" to mean 90 days or more past due as to interest or principal. (In thousands) March 31, 2020 Balance 90 days past due at any time during previous 12 months Commercial: Business $ 43,793 $ — Real estate - construction and land 43 — Real estate - business 27,448 — Personal Banking: Real estate - personal 3,816 209 Consumer 3,858 79 Revolving home equity 33 — Consumer credit card 8,296 1,059 Total troubled debt restructurings $ 87,287 $ 1,347 For those loans on non-accrual status also classified as restructured, the modification did not create any further financial effect on the Company as those loans were already recorded at net realizable value. For those performing commercial loans classified as restructured, there were no concessions involving forgiveness of principal or interest and, therefore, there was no financial impact to the Company as a result of modification to these loans. No financial impact resulted from those performing loans where the debt was not reaffirmed in bankruptcy, as no changes to loan terms occurred in that process. However, the effects of modifications to loans under various debt management and assistance programs were estimated to decrease interest income by approximately $1.1 million on an annual, pre-tax basis, compared to amounts contractually owed. Other modifications to consumer loans mainly involve extensions and other small modifications that did not include the forgiveness of principal or interest. The allowance for credit losses related to troubled debt restructurings on non-accrual status is determined by individual evaluation, including collateral adequacy, using the same process as loans on non-accrual status which are not classified as troubled debt restructurings. Those performing loans classified as troubled debt restructurings are accruing loans which management expects to collect under contractual terms. Performing commercial loans having no other concessions granted other than being renewed at non-market interest rates are judged to have similar risk characteristics as non-troubled debt commercial loans and are collectively evaluated based on internal risk rating, loan type, delinquency, historical experience and current economic factors. Performing personal banking loans classified as troubled debt restructurings resulted from the borrower not reaffirming the debt during bankruptcy and have had no other concession granted, other than the Bank's future limitations on collecting payment deficiencies or in pursuing foreclosure actions. As such, they have similar risk characteristics as non-troubled debt personal banking loans and are evaluated collectively based on loan type, delinquency, historical experience and current economic factors. If a troubled debt restructuring defaults and is already on non-accrual status, the allowance for credit losses continues to be based on individual evaluation, using discounted expected cash flows or the fair value of collateral. If an accruing troubled debt restructuring defaults, the loan's risk rating is downgraded to non-accrual status and the loan's related allowance for credit losses is determined based on individual evaluation, or if necessary, the loan is charged off and collection efforts begun. The Company had commitments of $5.4 million at March 31, 2020 to lend additional funds to borrowers with restructured loans. Impaired loans The following Impaired loans disclosures were superceded by ASC 2016-13. The table below shows the Company’s balances of impaired loans at December 31, 2019. These loans consist of all loans on non-accrual status and other restructured loans whose terms have been modified and classified as troubled debt restructurings. These restructured loans are performing in accordance with their modified terms, and because the Company believes it probable that all amounts due under the modified terms of the agreements will be collected, interest on these loans is being recognized on an accrual basis. They are discussed further in the "Troubled debt restructurings" section above. (In thousands) Dec. 31, 2019 Non-accrual loans $ 10,220 Restructured loans (accruing) 71,512 Total impaired loans $ 81,732 The following table shows the balance in the allowance for loan losses and the related loan balance at December 31, 2019, disaggregated on the basis of impairment methodology. Impaired loans evaluated under Accounting Standards Codification (ASC) 310-10-35 include loans on non-accrual status, which are individually evaluated for impairment, and other impaired loans deemed to have similar risk characteristics, which are collectively evaluated. All other loans are collectively evaluated for impairment under ASC 450-20. Impaired Loans All Other Loans (In thousands) Allowance for Loan Losses Loans Outstanding Allowance for Loan Losses Loans Outstanding December 31, 2019 Commercial $ 1,629 $ 64,500 $ 90,131 $ 9,233,880 Personal Banking 1,117 17,232 67,805 5,422,205 Total $ 2,746 $ 81,732 $ 157,936 $ 14,656,085 The following table provides additional information about impaired loans held by the Company at December 31, 2019, segregated between loans for which an allowance for credit losses has been provided and loans for which no allowance has been provided. (In thousands) Recorded Investment Unpaid Principal Balance Related Allowance December 31, 2019 With no related allowance recorded: Business $ 7,054 $ 13,738 $ — $ 7,054 $ 13,738 $ — With an allowance recorded: Business $ 30,437 $ 30,487 $ 837 Real estate – construction and land 46 51 1 Real estate – business 26,963 27,643 791 Real estate – personal 4,729 5,968 258 Consumer 4,421 4,421 35 Revolving home equity 35 35 1 Consumer credit card 8,047 8,047 823 $ 74,678 $ 76,652 $ 2,746 Total $ 81,732 $ 90,390 $ 2,746 Total average impaired loans for the three month period ended March 31, 2019 are shown in the table below. (In thousands) Commercial Personal Banking Total For the three months ended March 31, 2019 Non-accrual loans $ 10,347 $ 1,973 $ 12,320 Restructured loans (accruing) 53,607 15,437 69,044 Total $ 63,954 $ 17,410 $ 81,364 The table below shows interest income recognized during the three month period ended March 31, 2019, respectively, for impaired loans held at the end of each period. This interest all relates to accruing restructured loans, as discussed in the "Troubled debt restructurings" section above. For the Three Months Ended March 31 (In thousands) 2019 Interest income recognized on impaired loans: Business $ 1,008 Real estate – construction and land 6 Real estate – business 151 Real estate – personal 35 Consumer 80 Revolving home equity 1 Consumer credit card 146 Total $ 1,427 Loans held for sale The Company designates certain long-term fixed rate personal real estate loans as held for sale, and the Company has elected the fair value option for these loans. The election of the fair value option aligns the accounting for these loans with the related economic hedges discussed in Note 11. The loans are primarily sold to FNMA, FHLMC, and GNMA, however, the Company temporarily paused sales of these loans, as it was not able to effectively hedge the Company's mortgage loan production, due to volatility in the market caused by the COVID-19 outbreak. At March 31, 2020, the fair value and the unpaid principal balance of these loans was $108 thousand. The Company also designates certain student loan originations as held for sale. The borrowers are credit-worthy students who are attending colleges and universities. The loans are intended to be sold in the secondary market, and the Company maintains contracts with Sallie Mae to sell the loans within 210 days after the last disbursement to the student. These loans are carried at lower of cost or fair value, which at March 31, 2020 totaled $6.1 million. At March 31, 2020, none of the l |
