Loans | Loans Loans at December 31 are summarized below. 2016 2015 ($ in Thousands) Commercial and industrial $ 6,489,014 $ 6,190,683 Commercial real estate — owner occupied 897,724 918,212 Commercial and business lending 7,386,738 7,108,895 Commercial real estate — investor 3,574,732 3,234,266 Real estate construction 1,432,497 1,162,145 Commercial real estate lending 5,007,229 4,396,411 Total commercial 12,393,967 11,505,306 Residential mortgage 6,332,327 5,783,267 Home equity 934,443 1,005,802 Other consumer 393,979 419,968 Total consumer 7,660,749 7,209,037 Total loans $ 20,054,716 $ 18,714,343 The Corporation has granted loans to their directors, executive officers, or their related interests. These loans were made on substantially the same terms, including rates and collateral, as those prevailing at the time for comparable transactions with other unrelated customers, and do not involve more than a normal risk of collection. These loans to related parties are summarized below. 2016 ($ in Thousands) Balance at beginning of year $ 36,597 New loans 10,677 Repayments (11,089 ) Change due to status of executive officers and directors (8,596 ) Balance at end of year $ 27,589 The following table presents commercial and consumer loans by credit quality indicator at December 31, 2016 . Pass Special Mention Potential Problem Nonaccrual Total ($ in Thousands) Commercial and industrial $ 5,937,119 $ 141,328 $ 227,196 $ 183,371 $ 6,489,014 Commercial real estate - owner occupied 805,871 17,785 64,524 9,544 897,724 Commercial and business lending 6,742,990 159,113 291,720 192,915 7,386,738 Commercial real estate - investor 3,491,217 14,236 51,228 18,051 3,574,732 Real estate construction 1,429,083 105 2,465 844 1,432,497 Commercial real estate lending 4,920,300 14,341 53,693 18,895 5,007,229 Total commercial 11,663,290 173,454 345,413 211,810 12,393,967 Residential mortgage 6,275,162 1,314 5,615 50,236 6,332,327 Home equity 919,740 1,588 114 13,001 934,443 Other consumer 393,161 562 — 256 393,979 Total consumer 7,588,063 3,464 5,729 63,493 7,660,749 Total loans $ 19,251,353 $ 176,918 $ 351,142 $ 275,303 $ 20,054,716 The following table presents commercial and consumer loans by credit quality indicator at December 31, 2015 . Pass Special Mention Potential Problem Nonaccrual Total ($ in Thousands) Commercial and industrial $ 5,522,809 $ 341,169 $ 233,130 $ 93,575 $ 6,190,683 Commercial real estate - owner occupied 835,572 38,885 35,706 8,049 918,212 Commercial and business lending 6,358,381 380,054 268,836 101,624 7,108,895 Commercial real estate - investor 3,153,703 45,976 25,944 8,643 3,234,266 Real estate construction 1,157,034 252 3,919 940 1,162,145 Commercial real estate lending 4,310,737 46,228 29,863 9,583 4,396,411 Total commercial 10,669,118 426,282 298,699 111,207 11,505,306 Residential mortgage 5,727,437 1,552 2,796 51,482 5,783,267 Home equity 988,574 1,762 222 15,244 1,005,802 Other consumer 419,087 556 — 325 419,968 Total consumer 7,135,098 3,870 3,018 67,051 7,209,037 Total loans $ 17,804,216 $ 430,152 $ 301,717 $ 178,258 $ 18,714,343 Factors that are important to managing overall credit quality are sound loan underwriting and administration, systematic monitoring of existing loans and commitments, effective loan review on an ongoing basis, early identification of potential problems, and appropriate allowance for loan losses, allowance for unfunded commitments, nonaccrual, and charge off policies. See Note 1 for the Corporation's accounting policy for loans. For commercial loans, management has determined the pass credit quality indicator to include credits that exhibit acceptable financial statements, cash flow, and leverage. If any risk exists, it is mitigated by the loan structure, collateral, monitoring, or control. For consumer loans, performing loans include credits that are performing in accordance with the original contractual terms. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Special mention credits have potential weaknesses that deserve management’s attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the credit. Potential problem loans are considered inadequately protected by the current net worth and paying capacity of the obligor or the collateral pledged. These loans generally have a well-defined weakness, or weaknesses, that may jeopardize liquidation of the debt and are characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected. Lastly, management considers a loan to be impaired when it is probable that the Corporation will be unable to collect all amounts due according to the original contractual terms of the note agreement, including both principal and interest. Management has determined that commercial and consumer loan relationships that have nonaccrual status or have had their terms restructured in a troubled debt restructuring meet this impaired loan definition. Commercial loans classified as special mention, potential problem, and nonaccrual loans are reviewed at a minimum on a quarterly basis, while pass rated credits are reviewed on an annual basis or more frequently if the loan renewal is less than one year or if otherwise warranted. The following table presents loans by past due status at December 31, 2016 . Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due (a) Nonaccrual (b) Total ($ in Thousands) Commercial and industrial $ 6,303,994 $ 965 $ 448 $ 236 $ 183,371 $ 6,489,014 Commercial real estate - owner occupied 886,796 968 416 — 9,544 897,724 Commercial and business lending 7,190,790 1,933 864 236 192,915 7,386,738 Commercial real estate - investor 3,555,750 431 500 — 18,051 3,574,732 Real estate construction 1,431,284 264 105 — 844 1,432,497 Commercial real estate lending 4,987,034 695 605 — 18,895 5,007,229 Total commercial 12,177,824 2,628 1,469 236 211,810 12,393,967 Residential mortgage 6,273,949 7,298 844 — 50,236 6,332,327 Home equity 915,593 4,265 1,584 — 13,001 934,443 Other consumer 389,157 2,471 718 1,377 256 393,979 Total consumer 7,578,699 14,034 3,146 1,377 63,493 7,660,749 Total loans $ 19,756,523 $ 16,662 $ 4,615 $ 1,613 $ 275,303 $ 20,054,716 (a) The recorded investment in loans past due 90 days or more and still accruing totaled $2 million at December 31, 2016 (the same as the reported balances for the accruing loans noted above). (b) Of the total nonaccrual loans, $224 million or 81% were current with respect to payment at December 31, 2016 . The following table presents loans by past due status at December 31, 2015 . Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due (a) Nonaccrual (b) Total ($ in Thousands) Commercial and industrial $ 6,095,848 $ 602 $ 409 $ 249 $ 93,575 $ 6,190,683 Commercial real estate - owner occupied 903,021 7,142 — — 8,049 918,212 Commercial and business lending 6,998,869 7,744 409 249 101,624 7,108,895 Commercial real estate - investor 3,225,332 291 — — 8,643 3,234,266 Real estate construction 1,160,909 270 26 — 940 1,162,145 Commercial real estate lending 4,386,241 561 26 — 9,583 4,396,411 Total commercial 11,385,110 8,305 435 249 111,207 11,505,306 Residential mortgage 5,726,855 4,491 439 — 51,482 5,783,267 Home equity 982,639 6,190 1,729 — 15,244 1,005,802 Other consumer 416,374 1,195 675 1,399 325 419,968 Total consumer 7,125,868 11,876 2,843 1,399 67,051 7,209,037 Total loans $ 18,510,978 $ 20,181 $ 3,278 $ 1,648 $ 178,258 $ 18,714,343 (a) The recorded investment in loans past due 90 days or more and still accruing totaled $2 million at December 31, 2015 (the same as the reported balances for the accruing loans noted above). (b) Of the total nonaccrual loans, $124 million or 69% were current with respect to payment at December 31, 2015 . The following table presents impaired loans at December 31, 2016 . Recorded Unpaid Related Average Interest ($ in Thousands) Loans with a related allowance Commercial and industrial $ 101,770 $ 107,813 $ 21,617 $ 111,211 $ 2,512 Commercial real estate — owner occupied 6,595 8,641 295 7,111 274 Commercial and business lending 108,365 116,454 21,912 118,322 2,786 Commercial real estate — investor 27,196 27,677 3,541 31,142 2,124 Real estate construction 1,203 1,566 441 1,321 67 Commercial real estate lending 28,399 29,243 3,982 32,463 2,191 Total commercial 136,764 145,697 25,894 150,785 4,977 Residential mortgage 62,362 67,090 11,091 63,825 2,263 Home equity 20,651 22,805 9,312 21,825 1,114 Other consumer 1,235 1,284 186 1,294 29 Total consumer 84,248 91,179 20,589 86,944 3,406 Total loans $ 221,012 $ 236,876 $ 46,483 $ 237,729 $ 8,383 Loans with no related allowance Commercial and industrial $ 113,485 $ 134,863 $ — $ 117,980 $ 1,519 Commercial real estate — owner occupied 8,439 9,266 — 8,759 138 Commercial and business lending 121,924 144,129 — 126,739 1,657 Commercial real estate — investor 6,144 6,478 — 7,092 — Real estate construction — — — — — Commercial real estate lending 6,144 6,478 — 7,092 — Total commercial 128,068 150,607 — 133,831 1,657 Residential mortgage 5,974 6,998 — 6,610 184 Home equity 106 107 — 107 4 Other consumer — — — — — Total consumer 6,080 7,105 — 6,717 188 Total loans $ 134,148 $ 157,712 $ — $ 140,548 $ 1,845 Total Commercial and industrial $ 215,255 $ 242,676 $ 21,617 $ 229,191 $ 4,031 Commercial real estate — owner occupied 15,034 17,907 295 15,870 412 Commercial and business lending 230,289 260,583 21,912 245,061 4,443 Commercial real estate — investor 33,340 34,155 3,541 38,234 2,124 Real estate construction 1,203 1,566 441 1,321 67 Commercial real estate lending 34,543 35,721 3,982 39,555 2,191 Total commercial 264,832 296,304 25,894 284,616 6,634 Residential mortgage 68,336 74,088 11,091 70,435 2,447 Home equity 20,757 22,912 9,312 21,932 1,118 Other consumer 1,235 1,284 186 1,294 29 Total consumer 90,328 98,284 20,589 93,661 3,594 Total impaired loans (a) $ 355,160 $ 394,588 $ 46,483 $ 378,277 $ 10,228 (a) The net recorded investment (defined as recorded investment, net of the related allowance) of the impaired loans represented 78% of the unpaid principal balance at December 31, 2016 . The following table presents impaired loans at December 31, 2015 . Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized ($ in Thousands) Loans with a related allowance Commercial and industrial $ 57,785 $ 59,409 $ 8,162 $ 46,833 $ 855 Commercial real estate — owner occupied 9,705 9,804 448 10,087 412 Commercial and business lending 67,490 69,213 8,610 56,920 1,267 Commercial real estate — investor 27,822 29,444 1,831 28,278 1,914 Real estate construction 1,450 2,154 453 1,667 66 Commercial real estate lending 29,272 31,598 2,284 29,945 1,980 Total commercial 96,762 100,811 10,894 86,865 3,247 Residential mortgage 66,590 71,084 12,462 68,183 2,374 Home equity 21,769 23,989 10,118 22,624 1,147 Other consumer 1,154 1,225 195 1,199 30 Total consumer 89,513 96,298 22,775 92,006 3,551 Total loans $ 186,275 $ 197,109 $ 33,669 $ 178,871 $ 6,798 Loans with no related allowance Commercial and industrial $ 65,083 $ 72,259 $ — $ 79,573 $ 1,657 Commercial real estate — owner occupied 6,221 6,648 — 6,534 15 Commercial and business lending 71,304 78,907 — 86,107 1,672 Commercial real estate — investor 2,736 2,840 — 2,763 90 Real estate construction — — — — — Commercial real estate lending 2,736 2,840 — 2,763 90 Total commercial 74,040 81,747 — 88,870 1,762 Residential mortgage 4,762 5,033 — 4,726 126 Home equity 544 544 — 544 30 Other consumer — — — — — Total consumer 5,306 5,577 — 5,270 156 Total loans $ 79,346 $ 87,324 $ — $ 94,140 $ 1,918 Total Commercial and industrial $ 122,868 $ 131,668 $ 8,162 $ 126,406 $ 2,512 Commercial real estate — owner occupied 15,926 16,452 448 16,621 427 Commercial and business lending 138,794 148,120 8,610 143,027 2,939 Commercial real estate — investor 30,558 32,284 1,831 31,041 2,004 Real estate construction 1,450 2,154 453 1,667 66 Commercial real estate lending 32,008 34,438 2,284 32,708 2,070 Total commercial 170,802 182,558 10,894 175,735 5,009 Residential mortgage 71,352 76,117 12,462 72,909 2,500 Home equity 22,313 24,533 10,118 23,168 1,177 Other consumer 1,154 1,225 195 1,199 30 Total consumer 94,819 101,875 22,775 97,276 3,707 Total impaired loans (a) $ 265,621 $ 284,433 $ 33,669 $ 273,011 $ 8,716 (a) The net recorded investment (defined as recorded investment, net of the related allowance) of the impaired loans represented 82% of the unpaid principal balance at December 31, 2015 . Troubled Debt Restructurings (“Restructured Loans”): Loans are considered restructured loans if concessions have been granted to borrowers that are experiencing financial difficulty. See Note 1 for the Corporation's accounting policy for troubled debt restructurings. As of December 31, 2016 there was approximately $7 million of commitments to lend additional funds to borrowers with restructured loans. The following table presents nonaccrual and performing restructured loans by loan portfolio. December 31, 2016 December 31, 2015 December 31, 2014 Performing Restructured Loans Nonaccrual Restructured Loans (a) Performing Restructured Loans Nonaccrual Restructured Loans (a) Performing Restructured Loans Nonaccrual Restructured Loans (a) ($ in Thousands) Commercial and industrial $ 31,884 $ 1,276 $ 29,293 $ 1,714 $ 33,892 $ 3,260 Commercial real estate — owner occupied 5,490 2,220 7,877 2,703 10,454 5,656 Commercial real estate — investor 15,289 924 21,915 3,936 23,127 15,216 Real estate construction 359 150 510 177 727 2,438 Residential mortgage 18,100 21,906 19,870 24,592 20,833 26,049 Home equity 7,756 2,877 7,069 4,522 8,209 4,838 Other consumer 979 32 829 40 974 199 Total restructured loans $ 79,857 $ 29,385 $ 87,363 $ 37,684 $ 98,216 $ 57,656 (a) Nonaccrual restructured loans have been included within nonaccrual loans. The following table provides the number of loans modified in a troubled debt restructuring by loan portfolio during the years ended December 31, 2016 , 2015 and 2014 , respectively, and the recorded investment and unpaid principal balance as of December 31, 2016 , 2015 and 2014 . Year Ended December 31, 2016 Year Ended December 31, 2015 Year Ended December 31, 2014 Number of Loans Recorded Investment (a) Unpaid Principal Balance (b) Number of Loans Recorded Investment (a) Unpaid Principal Balance (b) Number Recorded (a) Unpaid (b) ($ in Thousands) Commercial and industrial 8 $ 1,509 $ 1,526 12 $ 2,219 $ 2,900 15 $ 7,681 $ 7,711 Commercial real estate — owner occupied 1 116 122 5 3,694 3,901 4 1,465 1,625 Commercial real estate — investor — — — 5 21,573 21,640 6 6,097 6,521 Real estate construction 1 65 91 4 78 79 2 15 15 Residential mortgage 63 5,535 5,792 97 10,464 10,996 163 19,675 20,454 Home equity 57 2,030 2,084 88 3,103 3,249 117 3,913 4,308 Other consumer 1 15 16 — — — 2 24 26 Total 131 $ 9,270 $ 9,631 211 $ 41,131 $ 42,765 309 $ 38,870 $ 40,660 (a) Represents post-modification outstanding recorded investment. (b) Represents pre-modification outstanding recorded investment. Restructured loan modifications may include payment schedule modifications, interest rate concessions, maturity date extensions, modification of note structure (A/B Note), non-reaffirmed Chapter 7 bankruptcies, principal reduction, or some combination of these concessions. For the year ended December 31, 2016 , restructured loan modifications of commercial and industrial, commercial real estate, and real estate construction loans primarily included maturity date extensions, interest rate concessions, payment schedule modifications, or a combination of these concessions. Restructured loan modifications of home equity and residential mortgage loans primarily included maturity date extensions, interest rate concessions, non-reaffirmed Chapter 7 bankruptcies, or a combination of these concessions for the year ended December 31, 2016 . The following table provides the number of loans modified in a troubled debt restructuring during the previous twelve months which subsequently defaulted during the year ended December 31, 2016 , 2015 and 2014 , respectively, as well as the recorded investment in these restructured loans as of December 31, 2016 , 2015 and 2014 , respectively. Year Ended December 31, 2016 Year Ended December 31, 2015 Year Ended December 31, 2014 Number of Loans Recorded Investment Number of Loans Recorded Investment Number of Recorded ($ in Thousands) Commercial and industrial — $ — 2 $ 197 1 $ 52 Commercial real estate — owner occupied — — — — 3 785 Commercial real estate — investor — — — — 13 6,200 Real estate construction — — — — 1 160 Residential mortgage 44 4,102 61 6,815 80 10,032 Home equity 23 457 28 1,220 54 1,802 Other consumer 1 15 — — 3 34 Total 68 $ 4,574 91 $ 8,232 155 $ 19,065 All loans modified in a troubled debt restructuring are evaluated for impairment. The nature and extent of the impairment of restructured loans, including those which have experienced a subsequent payment default, is considered in the determination of an appropriate level of the allowance for loan losses. Allowance for Credit Losses: The allowance for credit losses is comprised of the allowance for loan losses and the allowance for unfunded commitments. The level of the allowance for loan losses represents management’s estimate of an amount appropriate to provide for probable credit losses in the loan portfolio at the balance sheet date. See Note 1 for the Corporation's accounting policy on the allowance for loan losses. A summary of the changes in the allowance for loan losses by portfolio segment for the year ended December 31, 2016 , was as follows. $ in Thousands Commercial and industrial Commercial real estate - owner occupied Commercial real estate - investor Real estate construction Residential mortgage Home equity Other consumer Total December 31, 2015 $ 129,959 $ 18,680 $ 43,018 $ 25,266 $ 28,261 $ 23,555 $ 5,525 $ 274,264 Charge offs (71,016 ) (512 ) (1,504 ) (558 ) (4,332 ) (4,686 ) (3,831 ) (86,439 ) Recoveries 14,543 74 1,624 203 755 3,491 820 21,510 Net charge offs (56,473 ) (438 ) 120 (355 ) (3,577 ) (1,195 ) (3,011 ) (64,929 ) Provision for loan losses 66,640 (4,208 ) 2,147 2,021 2,362 (1,996 ) 2,034 69,000 December 31, 2016 $ 140,126 $ 14,034 $ 45,285 $ 26,932 $ 27,046 $ 20,364 $ 4,548 $ 278,335 Allowance for loan losses: Individually evaluated for impairment $ 20,836 $ — $ 3,117 $ — $ 147 $ 3 $ — $ 24,103 Collectively evaluated for impairment 119,290 14,034 42,168 26,932 26,899 20,361 4,548 254,232 Total allowance for loan losses $ 140,126 $ 14,034 $ 45,285 $ 26,932 $ 27,046 $ 20,364 $ 4,548 $ 278,335 Loans: Individually evaluated for impairment $ 180,965 $ 8,439 $ 17,322 $ — $ 7,033 $ 650 $ — $ 214,409 Collectively evaluated for impairment 6,308,049 889,285 3,557,410 1,432,497 6,325,294 933,793 393,979 19,840,307 Total loans $ 6,489,014 $ 897,724 $ 3,574,732 $ 1,432,497 $ 6,332,327 $ 934,443 $ 393,979 $ 20,054,716 For comparison purposes, a summary of the changes in the allowance for loan losses by portfolio segment for the year ended December 31, 2015 , was as follows. $ in Thousands Commercial and industrial Commercial real estate - owner occupied Commercial real estate - investor Real estate construction Residential mortgage Home equity Other consumer Total December 31, 2014 $ 117,635 $ 16,510 $ 46,333 $ 20,999 $ 31,926 $ 26,464 $ 6,435 $ 266,302 Charge offs (27,687 ) (2,645 ) (4,645 ) (750 ) (5,636 ) (7,048 ) (3,869 ) (52,280 ) Recoveries 9,821 921 4,157 2,268 1,077 3,233 765 22,242 Net charge offs (17,866 ) (1,724 ) (488 ) 1,518 (4,559 ) (3,815 ) (3,104 ) (30,038 ) Provision for loan losses 30,190 3,894 (2,827 ) 2,749 894 906 2,194 38,000 December 31, 2015 $ 129,959 $ 18,680 $ 43,018 $ 25,266 $ 28,261 $ 23,555 $ 5,525 $ 274,264 Allowance for loan losses: Individually evaluated for impairment $ 7,522 $ — $ 229 $ — $ 166 $ 46 $ — $ 7,963 Collectively evaluated for impairment 122,437 18,680 42,789 25,266 28,095 23,509 5,525 266,301 Total allowance for loan losses $ 129,959 $ 18,680 $ 43,018 $ 25,266 $ 28,261 $ 23,555 $ 5,525 $ 274,264 Loans: Individually evaluated for impairment $ 91,569 $ 6,221 $ 5,460 $ — $ 6,956 $ 1,281 $ — $ 111,487 Collectively evaluated for impairment 6,099,114 911,991 3,228,806 1,162,145 5,776,311 1,004,521 419,968 18,602,856 Total loans $ 6,190,683 $ 918,212 $ 3,234,266 $ 1,162,145 $ 5,783,267 $ 1,005,802 $ 419,968 $ 18,714,343 The allowance for unfunded commitments is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to unfunded credit facilities (including unfunded loan commitments and letters of credit) and is included in accrued expenses and other liabilities on the consolidated balance sheets. See Note 16 for additional information on the allowance for unfunded commitments and see Note 1 for the Corporation's accounting policy for allowance for unfunded commitments. A summary of the changes in the allowance for unfunded commitments was as follows. Years Ended December 31, 2016 2015 2014 ($ in Thousands) Allowance for Unfunded Commitments: Balance at beginning of period $ 24,400 $ 24,900 $ 21,900 Provision for unfunded commitments 1,000 (500 ) 3,000 Balance at end of period $ 25,400 $ 24,400 $ 24,900 |