Loans | Loans The period end loan composition was as follows. September 30, December 31, ($ in Thousands) Commercial and industrial $ 6,534,660 $ 6,489,014 Commercial real estate — owner occupied 827,064 897,724 Commercial and business lending 7,361,724 7,386,738 Commercial real estate — investor 3,345,536 3,574,732 Real estate construction 1,552,135 1,432,497 Commercial real estate lending 4,897,671 5,007,229 Total commercial 12,259,395 12,393,967 Residential mortgage 7,408,471 6,332,327 Home equity 890,130 934,443 Other consumer 373,464 393,979 Total consumer 8,672,065 7,660,749 Total loans $ 20,931,460 $ 20,054,716 The following table presents commercial and consumer loans by credit quality indicator at September 30, 2017 . Pass Special Mention Potential Problem Nonaccrual Total ($ in Thousands) Commercial and industrial $ 6,101,491 $ 157,106 $ 153,779 $ 122,284 $ 6,534,660 Commercial real estate - owner occupied 742,257 11,741 57,468 15,598 827,064 Commercial and business lending 6,843,748 168,847 211,247 137,882 7,361,724 Commercial real estate - investor 3,284,497 10,726 46,770 3,543 3,345,536 Real estate construction 1,550,462 15 118 1,540 1,552,135 Commercial real estate lending 4,834,959 10,741 46,888 5,083 4,897,671 Total commercial 11,678,707 179,588 258,135 142,965 12,259,395 Residential mortgage 7,352,286 881 650 54,654 7,408,471 Home equity 876,003 1,364 124 12,639 890,130 Other consumer 372,638 567 — 259 373,464 Total consumer 8,600,927 2,812 774 67,552 8,672,065 Total $ 20,279,634 $ 182,400 $ 258,909 $ 210,517 $ 20,931,460 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 September 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 $ 6,410,690 $ 1,254 $ 124 $ 308 $ 122,284 $ 6,534,660 Commercial real estate - owner occupied 809,944 1,522 — — 15,598 827,064 Commercial and business lending 7,220,634 2,776 124 308 137,882 7,361,724 Commercial real estate - investor 3,340,884 1,109 — — 3,543 3,345,536 Real estate construction 1,549,895 685 15 — 1,540 1,552,135 Commercial real estate lending 4,890,779 1,794 15 — 5,083 4,897,671 Total commercial 12,111,413 4,570 139 308 142,965 12,259,395 Residential mortgage 7,344,947 8,327 543 — 54,654 7,408,471 Home equity 870,300 5,852 1,339 — 12,639 890,130 Other consumer 370,216 987 699 1,303 259 373,464 Total consumer 8,585,463 15,166 2,581 1,303 67,552 8,672,065 Total $ 20,696,876 $ 19,736 $ 2,720 $ 1,611 $ 210,517 $ 20,931,460 (a) The recorded investment in loans past due 90 days or more and still accruing totaled $2 million at September 30, 2017 (the same as the reported balances for the accruing loans noted above). (b) Of the total nonaccrual loans, $156 million or 74% were current with respect to payment at September 30, 2017 . The following table presents loans by past due status at December 31, 2016 . Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due (a) Nonaccrual (b) Total ($ 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, $224 million or 81% were current with respect to payment at December 31, 2016 . The following table presents impaired loans individually evaluated under ASC Topic 310 at September 30, 2017 . Recorded Unpaid Related Average Interest ($ in Thousands) Loans with a related allowance Commercial and industrial $ 67,226 $ 72,343 $ 11,540 $ 76,082 $ 1,050 Commercial real estate — owner occupied 12,255 12,374 1,549 12,032 192 Commercial and business lending 79,481 84,717 13,089 88,114 1,242 Commercial real estate — investor 16,974 16,988 1,812 16,992 1,224 Real estate construction 476 586 75 489 22 Commercial real estate lending 17,450 17,574 1,887 17,481 1,246 Total commercial 96,931 102,291 14,976 105,595 2,488 Residential mortgage 42,684 45,028 6,893 43,090 1,258 Home equity 10,351 11,283 3,684 10,537 411 Other consumer 1,092 1,093 118 1,095 1 Total consumer 54,127 57,404 10,695 54,722 1,670 Total loans (a) $ 151,058 $ 159,695 $ 25,671 $ 160,317 $ 4,158 Loans with no related allowance Commercial and industrial $ 86,802 $ 99,480 $ — $ 100,398 $ 927 Commercial real estate — owner occupied 6,871 7,716 — 7,016 — Commercial and business lending 93,673 107,196 — 107,414 927 Commercial real estate — investor 589 732 — 606 — Real estate construction 213 218 — 220 — Commercial real estate lending 802 950 — 826 — Total commercial 94,475 108,146 — 108,240 927 Residential mortgage 6,469 7,074 — 6,492 105 Home equity 540 543 — 540 — Other consumer — — — — — Total consumer 7,009 7,617 — 7,032 105 Total loans (a) $ 101,484 $ 115,763 $ — $ 115,272 $ 1,032 Total Commercial and industrial $ 154,028 $ 171,823 $ 11,540 $ 176,480 $ 1,977 Commercial real estate — owner occupied 19,126 20,090 1,549 19,048 192 Commercial and business lending 173,154 191,913 13,089 195,528 2,169 Commercial real estate — investor 17,563 17,720 1,812 17,598 1,224 Real estate construction 689 804 75 709 22 Commercial real estate lending 18,252 18,524 1,887 18,307 1,246 Total commercial 191,406 210,437 14,976 213,835 3,415 Residential mortgage 49,153 52,102 6,893 49,582 1,363 Home equity 10,891 11,826 3,684 11,077 411 Other consumer 1,092 1,093 118 1,095 1 Total consumer 61,136 65,021 10,695 61,754 1,775 Total loans (a) $ 252,542 $ 275,458 $ 25,671 $ 275,589 $ 5,190 (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 September 30, 2017 . The following table presents impaired loans individually evaluated under ASC Topic 310 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 $ 99,786 $ 105,175 $ 21,047 $ 104,808 $ 2,345 Commercial real estate — owner occupied 5,544 5,568 23 5,840 263 Commercial and business lending 105,330 110,743 21,070 110,648 2,608 Commercial real estate — investor 26,764 27,031 3,410 30,665 2,120 Real estate construction 509 648 84 529 31 Commercial real estate lending 27,273 27,679 3,494 31,194 2,151 Total commercial 132,603 138,422 24,564 141,842 4,759 Residential mortgage 37,902 39,979 6,438 38,608 1,551 Home equity 11,070 11,909 3,943 11,420 627 Other consumer 1,012 1,023 109 1,021 2 Total consumer 49,984 52,911 10,490 51,049 2,180 Total loans (a) $ 182,587 $ 191,333 $ 35,054 $ 192,891 $ 6,939 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 $ 213,271 $ 240,038 $ 21,047 $ 222,788 $ 3,864 Commercial real estate — owner occupied 13,983 14,834 23 14,599 401 Commercial and business lending 227,254 254,872 21,070 237,387 4,265 Commercial real estate — investor 32,908 33,509 3,410 37,757 2,120 Real estate construction 509 648 84 529 31 Commercial real estate lending 33,417 34,157 3,494 38,286 2,151 Total commercial 260,671 289,029 24,564 275,673 6,416 Residential mortgage 43,876 46,977 6,438 45,218 1,735 Home equity 11,176 12,016 3,943 11,527 631 Other consumer 1,012 1,023 109 1,021 2 Total consumer 56,064 60,016 10,490 57,766 2,368 Total loans (a) $ 316,735 $ 349,045 $ 35,054 $ 333,439 $ 8,784 (a) The net recorded investment (defined as recorded investment, net of the related allowance) of the impaired loans represented 81% 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 $17 million in loans modified in troubled debt restructurings for the nine months ended September 30, 2017 , of which approximately $6 million were in accrual status and $11 million were in nonaccrual pending a sustained period of repayment. The following table presents nonaccrual and performing restructured loans by loan portfolio. September 30, 2017 December 31, 2016 Performing Restructured Loans Nonaccrual Restructured Loans (a) Performing Restructured Loans Nonaccrual Restructured Loans (a) ($ in Thousands) Commercial and industrial $ 32,572 $ 7,994 $ 31,884 $ 1,276 Commercial real estate — owner occupied 4,077 2,145 5,490 2,220 Commercial real estate — investor 14,294 589 15,289 924 Real estate construction 316 160 359 150 Residential mortgage 16,859 20,248 18,100 21,906 Home equity 7,987 2,364 7,756 2,877 Other consumer 1,073 20 979 32 Total $ 77,178 $ 33,520 $ 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 nine months ended September 30, 2017 and 2016 , respectively, and the recorded investment and unpaid principal balance as of September 30, 2017 and 2016 , respectively. Nine Months Ended September 30, 2017 Nine Months Ended September 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 19 $ 11,387 $ 15,898 10 $ 2,455 $ 2,517 Commercial real estate — owner occupied 2 710 710 1 117 124 Real estate construction — — — 1 66 91 Residential mortgage 48 4,445 4,638 56 4,676 4,922 Home equity 35 934 1,182 47 1,709 1,793 Other consumer — — — 1 15 16 Total 104 $ 17,476 $ 22,428 116 $ 9,038 $ 9,463 (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 nine months ended September 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 nine months ended September 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 nine months ended September 30, 2017 and 2016 , respectively, as well as the recorded investment in these restructured loans as of September 30, 2017 and 2016 , respectively. Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Number of Loans Recorded Investment Number of Loans Recorded Investment ($ in Thousands) Commercial and industrial 1 $ 1 — $ — Residential mortgage 21 1,335 36 3,310 Home equity 14 371 12 182 Other consumer — — 1 15 Total 36 $ 1,707 49 $ 3,507 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. 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. The following table presents a summary of the changes in the allowance for loan losses by portfolio segment for the nine months ended September 30, 2017 . ($ in Thousands) Commercial and Commercial real estate Commercial real estate - Real estate Residential Home Other Total December 31, 2016 $ 140,126 $ 14,034 $ 45,285 $ 26,932 $ 27,046 $ 20,364 $ 4,548 $ 278,335 Charge offs (33,928 ) (83 ) (803 ) (225 ) (1,472 ) (2,208 ) (3,238 ) (41,957 ) Recoveries 9,072 158 218 60 754 2,348 563 13,173 Net Charge offs (24,856 ) 75 (585 ) (165 ) (718 ) 140 (2,675 ) (28,784 ) Provision for loan losses 23,587 (4,352 ) 1,798 (1,340 ) 4,632 (479 ) 3,154 27,000 September 30, 2017 $ 138,857 $ 9,757 $ 46,498 $ 25,427 $ 30,960 $ 20,025 $ 5,027 $ 276,551 Allowance for loan losses Individually evaluated for impairment $ 11,540 $ 1,549 $ 1,812 $ 75 $ 6,893 $ 3,684 $ 118 $ 25,671 Collectively evaluated for impairment 127,317 8,208 44,686 25,352 24,067 16,341 4,909 250,880 Total allowance for loan losses $ 138,857 $ 9,757 $ 46,498 $ 25,427 $ 30,960 $ 20,025 $ 5,027 $ 276,551 Loans Individually evaluated for impairment $ 154,028 $ 19,126 $ 17,563 $ 689 $ 49,153 $ 10,891 $ 1,092 $ 252,542 Collectively evaluated for impairment 6,380,632 807,938 3,327,973 1,551,446 7,359,318 879,239 372,372 20,678,918 Total loans $ 6,534,660 $ 827,064 $ 3,345,536 $ 1,552,135 $ 7,408,471 $ 890,130 $ 373,464 $ 20,931,460 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 Commercial real estate Commercial real estate - Real estate Residential Home Other 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 $ 21,047 $ 23 $ 3,410 $ 84 $ 6,438 $ 3,943 $ 109 $ 35,054 Collectively evaluated for impairment 119,079 14,011 41,875 26,848 20,608 16,421 4,439 243,281 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 $ 213,271 $ 13,983 $ 32,908 $ 509 $ 43,876 $ 11,176 $ 1,012 $ 316,735 Collectively evaluated for impairment 6,275,743 883,741 3,541,824 1,431,988 6,288,451 923,267 392,967 19,737,981 Total loans $ 6,489,014 $ 897,724 $ 3,574,732 $ 1,432,497 $ 6,332,327 $ 934,443 $ 393,979 $ 20,054,716 At September 30, 2017, the oil and gas portfolio was comprised of 56 credits, totaling $577 million of outstanding balances. The allowance related to the oil and gas portfolio was $30 million at September 30, 2017 and represented 5.2% of total oil and gas loans. ($ in Millions) Nine Months Ended September 30, 2017 Year Ended December 31, 2016 Balance at beginning of period $ 38 $ 42 Charge offs (26 ) (59 ) Recoveries — — Net Charge offs (26 ) (59 ) Provision for loan losses 18 55 Balance at end of period $ 30 $ 38 Allowance for loan losses Individually evaluated for impairment $ 2 $ 14 Collectively evaluated for impairment 28 24 Total allowance for loan losses $ 30 $ 38 Loans Individually evaluated for impairment $ 92 $ 147 Collectively evaluated for impairment 485 521 Total loans $ 577 $ 668 The following table presents a summary of the changes in the allowance for unfunded commitments. Nine Months Ended September 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 ) 1,000 Balance at end of period $ 24,400 $ 25,400 |