Loans | Loans The period end loan composition was as follows. June 30, December 31, ($ in Thousands) Commercial and industrial $ 6,571,000 $ 6,489,014 Commercial real estate — owner occupied 845,336 897,724 Commercial and business lending 7,416,336 7,386,738 Commercial real estate — investor 3,329,585 3,574,732 Real estate construction 1,651,805 1,432,497 Commercial real estate lending 4,981,390 5,007,229 Total commercial 12,397,726 12,393,967 Residential mortgage 7,115,457 6,332,327 Home equity 897,111 934,443 Other consumer 372,775 393,979 Total consumer 8,385,343 7,660,749 Total loans $ 20,783,069 $ 20,054,716 The following table presents commercial and consumer loans by credit quality indicator at June 30, 2017 . Pass Special Mention Potential Problem Nonaccrual Total ($ in Thousands) Commercial and industrial $ 6,183,037 $ 103,881 $ 142,607 $ 141,475 $ 6,571,000 Commercial real estate - owner occupied 754,446 14,366 60,724 15,800 845,336 Commercial and business lending 6,937,483 118,247 203,331 157,275 7,416,336 Commercial real estate - investor 3,260,187 13,623 48,569 7,206 3,329,585 Real estate construction 1,621,198 19,989 8,901 1,717 1,651,805 Commercial real estate lending 4,881,385 33,612 57,470 8,923 4,981,390 Total commercial 11,818,868 151,859 260,801 166,198 12,397,726 Residential mortgage 7,060,673 1,233 1,576 51,975 7,115,457 Home equity 882,253 1,168 208 13,482 897,111 Other consumer 372,018 524 — 233 372,775 Total consumer 8,314,944 2,925 1,784 65,690 8,385,343 Total $ 20,133,812 $ 154,784 $ 262,585 $ 231,888 $ 20,783,069 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 $ 19,251,353 $ 176,918 $ 351,142 $ 275,303 $ 20,054,716 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. 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 are reviewed at a minimum on a quarterly basis, while pass and performing 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 June 30, 2017 . 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 $ 6,428,022 $ 1,042 $ 213 $ 248 $ 141,475 $ 6,571,000 Commercial real estate - owner occupied 828,252 1,136 148 — 15,800 845,336 Commercial and business lending 7,256,274 2,178 361 248 157,275 7,416,336 Commercial real estate - investor 3,321,480 899 — — 7,206 3,329,585 Real estate construction 1,649,953 40 95 — 1,717 1,651,805 Commercial real estate lending 4,971,433 939 95 — 8,923 4,981,390 Total commercial 12,227,707 3,117 456 248 166,198 12,397,726 Residential mortgage 7,054,317 8,163 1,002 — 51,975 7,115,457 Home equity 877,705 4,755 1,169 — 13,482 897,111 Other consumer 369,509 1,113 633 1,287 233 372,775 Total consumer 8,301,531 14,031 2,804 1,287 65,690 8,385,343 Total $ 20,529,238 $ 17,148 $ 3,260 $ 1,535 $ 231,888 $ 20,783,069 (a) The recorded investment in loans past due 90 days or more and still accruing totaled $2 million at June 30, 2017 (the same as the reported balances for the accruing loans noted above). (b) Of the total nonaccrual loans, $180 million or 78% were current with respect to payment at June 30, 2017 . The following table presents loans by past due status at December 31, 2016 . Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due (a) Nonaccrual (b) Total ($ 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 $ 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, $224 million or 81% were current with respect to payment at December 31, 2016 . The following table presents impaired loans at June 30, 2017 . Recorded Unpaid Related Average Interest ($ in Thousands) Loans with a related allowance Commercial and industrial $ 89,563 $ 94,231 $ 17,882 $ 95,205 $ 635 Commercial real estate — owner occupied 7,249 9,154 526 6,086 93 Commercial and business lending 96,812 103,385 18,408 101,291 728 Commercial real estate — investor 15,832 16,111 330 15,782 767 Real estate construction 1,819 2,188 707 1,868 54 Commercial real estate lending 17,651 18,299 1,037 17,650 821 Total commercial 114,463 121,684 19,445 118,941 1,549 Residential mortgage 60,209 65,163 10,649 60,831 1,112 Home equity 20,927 22,907 9,665 21,232 484 Other consumer 1,315 1,342 229 1,335 12 Total consumer 82,451 89,412 20,543 83,398 1,608 Total loans (a) $ 196,914 $ 211,096 $ 39,988 $ 202,339 $ 3,157 Loans with no related allowance Commercial and industrial $ 83,452 $ 107,471 $ — $ 104,989 $ 173 Commercial real estate — owner occupied 12,696 13,546 — 12,906 49 Commercial and business lending 96,148 121,017 — 117,895 222 Commercial real estate — investor 6,002 6,466 — 6,071 — Real estate construction 219 222 — 222 — Commercial real estate lending 6,221 6,688 — 6,293 — Total commercial 102,369 127,705 — 124,188 222 Residential mortgage 9,390 10,246 — 9,461 101 Home equity 540 543 — 540 — Other consumer — — — — — Total consumer 9,930 10,789 — 10,001 101 Total loans (a) $ 112,299 $ 138,494 $ — $ 134,189 $ 323 Total Commercial and industrial $ 173,015 $ 201,702 $ 17,882 $ 200,194 $ 808 Commercial real estate — owner occupied 19,945 22,700 526 18,992 142 Commercial and business lending 192,960 224,402 18,408 219,186 950 Commercial real estate — investor 21,834 22,577 330 21,853 767 Real estate construction 2,038 2,410 707 2,090 54 Commercial real estate lending 23,872 24,987 1,037 23,943 821 Total commercial 216,832 249,389 19,445 243,129 1,771 Residential mortgage 69,599 75,409 10,649 70,292 1,213 Home equity 21,467 23,450 9,665 21,772 484 Other consumer 1,315 1,342 229 1,335 12 Total consumer 92,381 100,201 20,543 93,399 1,709 Total loans (a) $ 309,213 $ 349,590 $ 39,988 $ 336,528 $ 3,480 (a) The net recorded investment (defined as recorded investment, net of the related allowance) of the impaired loans represented 77% of the unpaid principal balance at June 30, 2017 . The following table presents impaired loans at December 31, 2016 . Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized ($ 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 (a) $ 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 (a) $ 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 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 . Troubled Debt Restructurings (“Restructured Loans”) Loans are considered restructured loans if concessions have been granted to borrowers that are experiencing financial difficulty. The Corporation had a recorded investment of approximately $35 million in loans modified in troubled debt restructurings for the six months ended June 30, 2017 , of which approximately $6 million was in accrual status and $29 million was in nonaccrual pending a sustained period of repayment. During the six months ended June 30, 2017 , the commercial and industrial nonaccrual restructured loans increased primarily due to the restructuring of several large oil and gas loans. These loans were included in nonaccrual loans at both June 30, 2017 and December 31, 2016 . The following table presents nonaccrual and performing restructured loans by loan portfolio. June 30, 2017 December 31, 2016 Performing Restructured Loans Nonaccrual Restructured Loans (a) Performing Restructured Loans Nonaccrual Restructured Loans (a) ($ in Thousands) Commercial and industrial $ 31,540 $ 27,016 $ 31,884 $ 1,276 Commercial real estate — owner occupied 4,145 2,145 5,490 2,220 Commercial real estate — investor 14,628 602 15,289 924 Real estate construction 321 164 359 150 Residential mortgage 17,624 19,365 18,100 21,906 Home equity 7,985 2,401 7,756 2,877 Other consumer 1,082 22 979 32 Total $ 77,325 $ 51,715 $ 79,857 $ 29,385 (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 six months ended June 30, 2017 and 2016 , respectively, and the recorded investment and unpaid principal balance as of June 30, 2017 and 2016 respectively. Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 Number of Loans Recorded Investment (a) Unpaid Principal Balance (b) Number of Loans Recorded Investment (a) Unpaid Principal Balance (b) ($ in Thousands) Commercial and industrial 24 $ 30,935 $ 52,260 11 $ 2,608 $ 2,676 Commercial real estate — owner occupied 2 716 716 1 120 126 Residential mortgage 36 2,695 2,805 48 3,942 4,171 Home equity 26 674 919 37 1,433 1,554 Total 88 $ 35,020 $ 56,700 97 $ 8,103 $ 8,527 (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. During the six months ended June 30, 2017 , restructured loan modifications of commercial and industrial, commercial real estate, and real estate construction loans primarily included maturity date extensions and payment schedule modifications. 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 six months ended June 30, 2017 . The following table provides the number of loans modified in a troubled debt restructuring during the previous twelve months which subsequently defaulted during the six months ended June 30, 2017 and 2016 , respectively, as well as the recorded investment in these restructured loans as of June 30, 2017 and 2016 , respectively. Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 Number of Loans Recorded Investment Number of Loans Recorded Investment ($ in Thousands) Commercial real estate — owner occupied — $ — 2 $ 168 Residential mortgage 17 941 25 2,407 Home equity 9 271 11 164 Total 26 $ 1,212 38 $ 2,739 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 A summary of the changes in the allowance for loan losses by portfolio segment for the six months ended June 30, 2017 , 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, 2016 $ 140,126 $ 14,034 $ 45,285 $ 26,932 $ 27,046 $ 20,364 $ 4,548 $ 278,335 Charge offs (21,912 ) (83 ) (803 ) (62 ) (1,034 ) (1,196 ) (2,140 ) (27,230 ) Recoveries 6,498 145 163 47 342 1,423 378 8,996 Net charge offs (15,414 ) 62 (640 ) (15 ) (692 ) 227 (1,762 ) (18,234 ) Provision for loan losses 18,295 (5,551 ) (3,155 ) 4,571 5,212 (351 ) 1,979 21,000 June 30, 2017 $ 143,007 $ 8,545 $ 41,490 $ 31,488 $ 31,566 $ 20,240 $ 4,765 $ 281,101 Allowance for loan losses: Impaired loans: Individually evaluated $ 17,350 $ 187 $ 183 $ — $ 106 $ — $ — $ 17,826 Collectively evaluated 532 339 147 707 10,543 9,665 229 22,162 Total impaired loans 17,882 526 330 707 10,649 9,665 229 39,988 Non-impaired loans: Collectively evaluated 125,125 8,019 41,160 30,781 20,917 10,575 4,536 241,113 Total $ 143,007 $ 8,545 $ 41,490 $ 31,488 $ 31,566 $ 20,240 $ 4,765 $ 281,101 Period end loan balances: Impaired loans: Individually evaluated $ 140,061 $ 15,303 $ 6,799 $ 220 $ 11,060 $ 643 $ — $ 174,086 Collectively evaluated 32,954 4,642 15,035 1,818 58,539 20,824 1,315 135,127 Total impaired loans 173,015 19,945 21,834 2,038 69,599 21,467 1,315 309,213 Non-impaired loans: Collectively evaluated 6,397,985 825,391 3,307,751 1,649,767 7,045,858 875,644 371,460 20,473,856 Total $ 6,571,000 $ 845,336 $ 3,329,585 $ 1,651,805 $ 7,115,457 $ 897,111 $ 372,775 $ 20,783,069 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. 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 12 for additional information on the allowance for unfunded commitments. For comparison purposes, 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: Impaired loans: Individually evaluated $ 20,836 $ — $ 3,117 $ — $ 147 $ 3 $ — $ 24,103 Collectively evaluated 781 295 424 441 10,944 9,309 186 22,380 Total impaired loans 21,617 295 3,541 441 11,091 9,312 186 46,483 Non-impaired loans: Collectively evaluated 118,509 13,739 41,744 26,491 15,955 11,052 4,362 231,852 Total $ 140,126 $ 14,034 $ 45,285 $ 26,932 $ 27,046 $ 20,364 $ 4,548 $ 278,335 Period end loan balances: Impaired loans: Individually evaluated $ 180,965 $ 8,439 $ 17,322 $ — $ 7,033 $ 650 $ — $ 214,409 Collectively evaluated 34,290 6,595 16,018 1,203 61,303 20,107 1,235 140,751 Total impaired loans 215,255 15,034 33,340 1,203 68,336 20,757 1,235 355,160 Non-impaired loans: Collectively evaluated 6,273,759 882,690 3,541,392 1,431,294 6,263,991 913,686 392,744 19,699,556 Total $ 6,489,014 $ 897,724 $ 3,574,732 $ 1,432,497 $ 6,332,327 $ 934,443 $ 393,979 $ 20,054,716 A summary of the changes in the allowance for unfunded commitments was as follows. Six Months Ended June 30, 2017 Year Ended December 31, 2016 ($ in Thousands) Allowance for Unfunded Commitments: Balance at beginning of period $ 25,400 $ 24,400 Provision for unfunded commitments — 1,000 Balance at end of period $ 25,400 $ 25,400 |