Loans | Loans Loans at December 31 are summarized below. 2017 2016 ($ in Thousands) Commercial and industrial $ 6,399,693 $ 6,489,014 Commercial real estate - owner occupied 802,209 897,724 Commercial and business lending 7,201,902 7,386,738 Commercial real estate - investor 3,315,254 3,574,732 Real estate construction 1,451,684 1,432,497 Commercial real estate lending 4,766,938 5,007,229 Total commercial 11,968,840 12,393,967 Residential mortgage 7,546,534 6,332,327 Home equity 883,804 934,443 Other consumer 385,813 393,979 Total consumer 8,816,151 7,660,749 Total loans $ 20,784,991 $ 20,054,716 The Corporation has granted loans to its 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. 2017 2016 ($ in Thousands) Balance at beginning of year $ 27,589 $ 36,597 New loans 5,329 10,677 Repayments (7,632 ) (11,089 ) Change due to status of executive officers and directors (5,026 ) (8,596 ) Balance at end of year $ 20,260 $ 27,589 The following table presents commercial and consumer loans by credit quality indicator at December 31, 2017 . Pass Special Mention Potential Problem Nonaccrual Total ($ in Thousands) Commercial and industrial $ 6,015,884 $ 157,245 $ 113,778 $ 112,786 $ 6,399,693 Commercial real estate - owner occupied 723,291 14,181 41,997 22,740 802,209 Commercial and business lending 6,739,175 171,426 155,775 135,526 7,201,902 Commercial real estate - investor 3,266,389 24,845 19,291 4,729 3,315,254 Real estate construction 1,421,504 29,206 — 974 1,451,684 Commercial real estate lending 4,687,893 54,051 19,291 5,703 4,766,938 Total commercial 11,427,068 225,477 175,066 141,229 11,968,840 Residential mortgage 7,490,860 426 1,616 53,632 7,546,534 Home equity 868,958 1,137 195 13,514 883,804 Other consumer 384,990 652 — 171 385,813 Total consumer 8,744,808 2,215 1,811 67,317 8,816,151 Total loans $ 20,171,876 $ 227,692 $ 176,877 $ 208,546 $ 20,784,991 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 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, an 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, 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 $ 6,286,369 $ 170 $ 101 $ 267 $ 112,786 $ 6,399,693 Commercial real estate - owner occupied 779,421 48 — — 22,740 802,209 Commercial and business lending 7,065,790 218 101 267 135,526 7,201,902 Commercial real estate - investor 3,310,000 374 — 151 4,729 3,315,254 Real estate construction 1,450,459 168 83 — 974 1,451,684 Commercial real estate lending 4,760,459 542 83 151 5,703 4,766,938 Total commercial 11,826,249 760 184 418 141,229 11,968,840 Residential mortgage 7,483,350 9,186 366 — 53,632 7,546,534 Home equity 863,465 5,688 1,137 — 13,514 883,804 Other consumer 382,186 1,227 780 1,449 171 385,813 Total consumer 8,729,001 16,101 2,283 1,449 67,317 8,816,151 Total loans $ 20,555,250 $ 16,861 $ 2,467 $ 1,867 $ 208,546 $ 20,784,991 (a) The recorded investment in loans past due 90 days or more and still accruing totaled $2 million at December 31, 2017 (the same as the reported balances for the accruing loans noted above). (b) Of the total nonaccrual loans, $135 million or 65% were current with respect to payment at December 31, 2017 . The following table presents loans by past due status at December 31, 2016 . Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due (a) Nonaccrual (b) Total ($ 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 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, $224 million or 81% were current with respect to payment at December 31, 2016 . The following table presents impaired loans individually evaluated under ASC Topic 310 at December 31, 2017 . Recorded Unpaid Related Average Interest ($ in Thousands) Loans with a related allowance Commercial and industrial $ 81,649 $ 83,579 $ 10,838 $ 58,494 $ 2,629 Commercial real estate - owner occupied 23,796 23,937 2,973 12,124 736 Commercial and business lending 105,445 107,516 13,811 70,618 3,365 Commercial real estate - investor 17,823 17,862 1,597 16,924 1,694 Real estate construction 467 578 86 484 29 Commercial real estate lending 18,290 18,440 1,683 17,408 1,723 Total commercial 123,735 125,956 15,494 88,026 5,088 Residential mortgage 40,561 42,922 6,512 40,411 1,614 Home equity 10,250 10,986 3,718 10,521 549 Other consumer 1,135 1,138 122 1,140 3 Total consumer 51,946 55,046 10,352 52,072 2,166 Total loans $ 175,681 $ 181,002 $ 25,846 $ 140,098 $ 7,254 Loans with no related allowance Commercial and industrial $ 60,595 $ 82,839 $ — $ 89,275 $ 492 Commercial real estate - owner occupied 2,438 2,829 — 1,948 36 Commercial and business lending 63,033 85,668 — 91,223 528 Commercial real estate - investor 1,295 1,295 — — 45 Real estate construction — — — — — Commercial real estate lending 1,295 1,295 — — 45 Total commercial 64,328 86,963 — 91,223 573 Residential mortgage 6,925 7,204 — 4,999 217 Home equity 641 645 — 540 7 Other consumer — — — — — Total consumer 7,566 7,849 — 5,539 224 Total loans $ 71,894 $ 94,812 $ — $ 96,762 $ 797 Total Commercial and industrial $ 142,244 $ 166,418 $ 10,838 $ 147,769 $ 3,121 Commercial real estate - owner occupied 26,234 26,766 2,973 14,072 772 Commercial and business lending 168,478 193,184 13,811 161,841 3,893 Commercial real estate - investor 19,118 19,157 1,597 16,924 1,739 Real estate construction 467 578 86 484 29 Commercial real estate lending 19,585 19,735 1,683 17,408 1,768 Total commercial 188,063 212,919 15,494 179,249 5,661 Residential mortgage 47,486 50,126 6,512 45,410 1,831 Home equity 10,891 11,631 3,718 11,061 556 Other consumer 1,135 1,138 122 1,140 3 Total consumer 59,512 62,895 10,352 57,611 2,390 Total loans (a) $ 247,575 $ 275,814 $ 25,846 $ 236,860 $ 8,051 (a) The net recorded investment (defined as recorded investment, net of the related allowance) of the impaired loans represented 80% of the unpaid principal balance at December 31, 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 $ 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 $ 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. See Note 1 for the Corporation's accounting policy for troubled debt restructurings. The Corporation had a recorded investment of approximately $9 million in loans modified in troubled debt restructurings for the year ended December 31, 2017 , of which approximately $6 million were in accrual status and $3 million were in nonaccrual pending a sustained period of repayment. As of December 31, 2017 there was approximately $9 million of commitments to lend additional funds to borrowers with restructured loans. The following table presents nonaccrual and performing restructured loans by loan portfolio. December 31, 2017 December 31, 2016 December 31, 2015 Performing Restructured Loans Nonaccrual Restructured Loans (a) Performing Restructured Loans Nonaccrual Restructured Loans (a) Performing Restructured Loans Nonaccrual Restructured Loans (a) ($ in Thousands) Commercial and industrial $ 30,047 $ 1,776 $ 31,884 $ 1,276 $ 29,293 $ 1,714 Commercial real estate - owner occupied 3,989 — 5,490 2,220 7,877 2,703 Commercial real estate - investor 14,389 — 15,289 924 21,915 3,936 Real estate construction 310 157 359 150 510 177 Residential mortgage 17,068 18,991 18,100 21,906 19,870 24,592 Home equity 7,705 2,537 7,756 2,877 7,069 4,522 Other consumer 1,110 25 979 32 829 40 Total restructured loans $ 74,618 $ 23,486 $ 79,857 $ 29,385 $ 87,363 $ 37,684 (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, 2017 , 2016 and 2015 , respectively, and the recorded investment and unpaid principal balance as of December 31, 2017 , 2016 and 2015 , respectively. Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 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 $ 3,991 $ 6,339 8 $ 1,509 $ 1,526 12 $ 2,219 $ 2,900 Commercial real estate - owner occupied 2 690 690 1 116 122 5 3,694 3,901 Commercial real estate - investor — — — — — — 5 21,573 21,640 Real estate construction — — — 1 65 91 4 78 79 Residential mortgage 45 4,238 4,364 63 5,535 5,792 97 10,464 10,996 Home equity 22 507 507 57 2,030 2,084 88 3,103 3,249 Other consumer — — — 1 15 16 — — — Total 77 $ 9,426 $ 11,900 131 $ 9,270 $ 9,631 211 $ 41,131 $ 42,765 (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, 2017 , 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, 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 year ended December 31, 2017 , 2016 and 2015 , respectively, as well as the recorded investment in these restructured loans as of December 31, 2017 , 2016 and 2015 , respectively. Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Number of Loans Recorded Investment Number of Loans Recorded Investment Number of Recorded ($ in Thousands) Commercial and industrial 2 $ — — $ — 2 $ 197 Residential mortgage 36 3,137 44 4,102 61 6,815 Home equity 27 735 23 457 28 1,220 Other consumer 1 7 1 15 — — Total 66 $ 3,879 68 $ 4,574 91 $ 8,232 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. 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. A summary of the changes in the allowance for loan losses by portfolio segment for the year ended December 31, 2017 , was as follows. Commercial and industrial Commercial real estate - owner occupied Commercial real estate - investor Real estate construction Residential mortgage Home equity Other consumer Total ($ in Thousands) December 31, 2016 $ 140,126 $ 14,034 $ 45,285 $ 26,932 $ 27,046 $ 20,364 $ 4,548 $ 278,335 Charge offs (44,533 ) (344 ) (991 ) (604 ) (2,611 ) (2,724 ) (4,439 ) (56,246 ) Recoveries 11,465 173 242 74 927 3,194 716 16,791 Net charge offs (33,068 ) (171 ) (749 ) (530 ) (1,684 ) 470 (3,723 ) (39,455 ) Provision for loan losses 16,010 (3,511 ) (3,477 ) 7,968 4,245 1,292 4,473 27,000 December 31, 2017 $ 123,068 $ 10,352 $ 41,059 $ 34,370 $ 29,607 $ 22,126 $ 5,298 $ 265,880 Allowance for loan losses Individually evaluated for impairment $ 10,838 $ 2,973 $ 1,597 $ 86 $ 6,512 $ 3,718 $ 122 $ 25,846 Collectively evaluated for impairment 112,230 7,379 39,462 34,284 23,095 18,408 5,176 240,034 Total allowance for loan losses $ 123,068 $ 10,352 $ 41,059 $ 34,370 $ 29,607 $ 22,126 $ 5,298 $ 265,880 Loans Individually evaluated for impairment $ 142,244 $ 26,234 $ 19,118 $ 467 $ 47,486 $ 10,891 $ 1,135 $ 247,575 Collectively evaluated for impairment 6,257,449 775,975 3,296,136 1,451,217 7,499,048 872,913 384,678 20,537,416 Total loans $ 6,399,693 $ 802,209 $ 3,315,254 $ 1,451,684 $ 7,546,534 $ 883,804 $ 385,813 $ 20,784,991 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. Commercial and industrial Commercial real estate - owner occupied Commercial real estate - investor Real estate construction Residential mortgage Home equity Other consumer Total ($ in Thousands) 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 The allowance related to the oil and gas portfolio was $27 million at December 31, 2017 and represented 4.5% of total oil and gas loans. Year Ended December 31, 2017 Year Ended December 31, 2016 ($ in Millions) Balance at beginning of period $ 38 $ 42 Charge offs (25 ) (59 ) Recoveries — — Net Charge offs (25 ) (59 ) Provision for loan losses 14 55 Balance at end of period $ 27 $ 38 Allowance for loan losses Individually evaluated for impairment $ 5 $ 14 Collectively evaluated for impairment 22 24 Total allowance for loan losses $ 27 $ 38 Loans Individually evaluated for impairment $ 77 $ 147 Collectively evaluated for impairment 523 521 Total loans $ 600 $ 668 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, 2017 2016 2015 ($ in Thousands) Allowance for Unfunded Commitments Balance at beginning of period $ 25,400 $ 24,400 $ 24,900 Provision for unfunded commitments (1,000 ) 1,000 (500 ) Balance at end of period $ 24,400 $ 25,400 $ 24,400 |