Loans | Loans The period end loan composition was as follows. March 31, 2018 (a) December 31, ($ in Thousands) Commercial and industrial $ 6,756,983 $ 6,399,693 Commercial real estate — owner occupied 900,913 802,209 Commercial and business lending 7,657,896 7,201,902 Commercial real estate — investor 4,077,671 3,315,254 Real estate construction 1,579,778 1,451,684 Commercial real estate lending 5,657,449 4,766,938 Total commercial 13,315,345 11,968,840 Residential mortgage 8,197,223 7,546,534 Home equity 923,470 883,804 Other consumer 374,453 385,813 Total consumer 9,495,146 8,816,151 Total loans $ 22,810,491 $ 20,784,991 (a) Includes $15 million of purchased credit-impaired loans The following table presents commercial and consumer loans by credit quality indicator at March 31, 2018 . Pass Special Mention Potential Problem Nonaccrual Total ($ in Thousands) Commercial and industrial $ 6,325,258 $ 132,292 $ 196,766 $ 102,667 $ 6,756,983 Commercial real estate - owner occupied 830,489 15,378 34,410 20,636 900,913 Commercial and business lending 7,155,747 147,670 231,176 123,303 7,657,896 Commercial real estate - investor 3,960,155 54,972 46,970 15,574 4,077,671 Real estate construction 1,547,443 29,421 1,695 1,219 1,579,778 Commercial real estate lending 5,507,598 84,393 48,665 16,793 5,657,449 Total commercial 12,663,345 232,063 279,841 140,096 13,315,345 Residential mortgage 8,134,387 5,580 2,155 55,100 8,197,223 Home equity 908,682 1,383 188 13,218 923,470 Other consumer 373,714 600 — 139 374,453 Total consumer 9,416,783 7,563 2,343 68,456 9,495,146 Total $ 22,080,128 $ 239,626 $ 282,184 $ 208,553 $ 22,810,491 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 $ 20,171,876 $ 227,692 $ 176,877 $ 208,546 $ 20,784,991 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 March 31, 2018 . 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 $ 6,653,188 $ 793 $ 87 $ 248 $ 102,667 $ 6,756,983 Commercial real estate - owner occupied 879,766 511 — — 20,636 900,913 Commercial and business lending 7,532,954 1,304 87 248 123,303 7,657,896 Commercial real estate - investor 4,061,600 240 — 257 15,574 4,077,671 Real estate construction 1,578,069 220 270 — 1,219 1,579,778 Commercial real estate lending 5,639,669 460 270 257 16,793 5,657,449 Total commercial 13,172,623 1,764 357 505 140,096 13,315,345 Residential mortgage 8,125,707 9,876 5,257 1,283 55,100 8,197,223 Home equity 904,305 4,485 1,383 79 13,218 923,470 Other consumer 370,977 1,058 753 1,526 139 374,453 Total consumer 9,400,989 15,419 7,393 2,888 68,456 9,495,146 Total $ 22,573,612 $ 17,184 $ 7,750 $ 3,393 $ 208,553 $ 22,810,491 (a) The recorded investment in loans past due 90 days or more and still accruing totaled $3 million at March 31, 2018 (the same as the reported balances for the accruing loans noted above). (b) Of the total nonaccrual loans, $159 million or 76% were current with respect to payment at March 31, 2018 . The following table presents loans by past due status at December 31, 2017 . Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due (a) Nonaccrual (b) Total ($ 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 $ 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, $135 million or 65% were current with respect to payment at December 31, 2017 . The following table presents impaired loans individually evaluated under ASC Topic 310, excluding purchased credit-impaired loans, at March 31, 2018 . Recorded Unpaid Related Average Interest ($ in Thousands) Loans with a related allowance Commercial and industrial $ 76,452 $ 81,091 $ 18,778 $ 77,130 $ 312 Commercial real estate — owner occupied 16,264 16,617 2,043 22,978 47 Commercial and business lending 92,716 97,708 20,821 100,108 359 Commercial real estate — investor 18,582 18,619 2,721 16,559 464 Real estate construction 458 532 82 461 7 Commercial real estate lending 19,040 19,151 2,803 17,020 471 Total commercial 111,756 116,859 23,624 117,128 830 Residential mortgage 38,438 40,851 6,635 40,475 431 Home equity 10,762 11,383 3,719 10,238 136 Other consumer 1,066 1,069 116 1,067 1 Total consumer 50,266 53,303 10,470 51,780 568 Total loans (a) $ 162,022 $ 170,162 $ 34,094 $ 168,908 $ 1,398 Loans with no related allowance Commercial and industrial $ 52,389 $ 76,720 $ — $ 55,897 $ (348 ) Commercial real estate — owner occupied 6,225 7,276 — 2,403 — Commercial and business lending 58,614 83,996 — 58,300 (348 ) Commercial real estate — investor 1,805 1,853 — — — Real estate construction — — — — — Commercial real estate lending 1,805 1,853 — — — Total commercial 60,419 85,849 — 58,300 (348 ) Residential mortgage 10,425 10,871 — 6,317 39 Home equity 212 212 — 639 1 Other consumer — — — — — Total consumer 10,637 11,083 — 6,956 40 Total loans (a) $ 71,056 $ 96,932 $ — $ 65,256 $ (308 ) Total Commercial and industrial $ 128,841 $ 157,811 $ 18,778 $ 133,027 $ (36 ) Commercial real estate — owner occupied 22,489 23,893 2,043 25,381 47 Commercial and business lending 151,330 181,704 20,821 158,408 11 Commercial real estate — investor 20,387 20,472 2,721 16,559 464 Real estate construction 458 532 82 461 7 Commercial real estate lending 20,845 21,004 2,803 17,020 471 Total commercial 172,175 202,708 23,624 175,428 482 Residential mortgage 48,863 51,722 6,635 46,792 470 Home equity 10,974 11,595 3,719 10,877 137 Other consumer 1,066 1,069 116 1,067 1 Total consumer 60,903 64,386 10,470 58,736 608 Total loans (a) $ 233,078 $ 267,094 $ 34,094 $ 234,164 $ 1,090 (a) The net recorded investment (defined as recorded investment, net of the related allowance) of the impaired loans represented 74% of the unpaid principal balance at March 31, 2018 . The following table presents impaired loans individually evaluated under ASC Topic 310 at December 31, 2017 . Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized ($ 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 (a) $ 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 (a) $ 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 . 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 $4 million in loans modified in troubled debt restructurings for the three months ended March 31, 2018 , of which approximately $1 million were in accrual status and $3 million were in nonaccrual pending a sustained period of repayment. The following table presents nonaccrual and performing restructured loans by loan portfolio. March 31, 2018 December 31, 2017 Performing Restructured Loans Nonaccrual Restructured Loans (a) Performing Restructured Loans Nonaccrual Restructured Loans (a) ($ in Thousands) Commercial and industrial $ 29,580 $ 886 $ 30,047 $ 1,776 Commercial real estate — owner occupied 3,892 — 3,989 — Commercial real estate — investor 13,683 1,007 14,389 — Real estate construction 305 152 310 157 Residential mortgage 19,902 18,640 17,068 18,991 Home equity 8,098 3,117 7,705 2,537 Other consumer 1,041 25 1,110 25 Total $ 76,501 $ 23,827 $ 74,618 $ 23,486 (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 three months ended March 31, 2018 and 2017 , respectively, and the recorded investment and unpaid principal balance as of March 31, 2018 and 2017 , respectively. Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 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 2 $ 92 $ 92 20 $ 52,326 $ 60,546 Commercial real estate — owner occupied — — — 1 204 204 Commercial real estate — investor 1 1,007 1,037 1 733 744 Residential mortgage 11 1,807 1,807 16 1,301 1,322 Home equity 17 1,044 1,060 15 347 347 Other consumer 2 8 11 — — — Total 33 $ 3,958 $ 4,007 53 $ 54,911 $ 63,163 (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 three months ended March 31, 2018 , 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 three months ended March 31, 2018 . The following table provides the number of loans modified in a troubled debt restructuring during the previous twelve months which subsequently defaulted during the three months ended March 31, 2018 and 2017 , respectively, as well as the recorded investment in these restructured loans as of March 31, 2018 and 2017 , respectively. Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 Number of Loans Recorded Investment Number of Loans Recorded Investment ($ in Thousands) Residential mortgage 4 467 6 383 Home equity 12 954 2 26 Total 16 $ 1,421 8 $ 409 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 three months ended March 31, 2018 . ($ in Thousands) Commercial and Commercial real estate Commercial real estate - Real estate Residential Home Other Total December 31, 2017 $ 123,068 $ 10,352 $ 41,059 $ 34,370 $ 29,607 $ 22,126 $ 5,298 $ 265,880 Charge offs (8,067 ) (1,042 ) — (47 ) (493 ) (1,250 ) (1,256 ) (12,155 ) Recoveries 1,468 17 8 236 362 573 168 2,832 Net Charge offs (6,599 ) (1,025 ) 8 189 (131 ) (677 ) (1,088 ) (9,323 ) Provision for loan losses 1,377 2,520 1,215 (6,125 ) 536 241 736 500 March 31, 2018 $ 117,847 $ 11,847 $ 42,282 $ 28,434 $ 30,012 $ 21,690 $ 4,946 $ 257,058 Allowance for loan losses Individually evaluated for impairment $ 18,778 $ 2,043 $ 2,721 $ 82 $ 6,635 $ 3,719 $ 116 $ 34,094 Collectively evaluated for impairment 99,069 9,804 39,561 28,352 23,377 17,971 4,830 222,964 Acquired and accounted for under ASC 310-30 (a) — — — — — — — — Total allowance for loan losses $ 117,847 $ 11,847 $ 42,282 $ 28,434 $ 30,012 $ 21,690 $ 4,946 $ 257,058 Loans Individually evaluated for impairment $ 128,841 $ 22,489 $ 20,387 $ 458 $ 48,863 $ 10,974 $ 1,066 $ 233,078 Collectively evaluated for impairment 6,625,314 876,631 4,048,532 1,579,065 8,147,224 912,421 373,388 22,562,575 Acquired and accounted for under ASC 310-30 (a) 2,828 1,793 8,752 255 1,136 74 — 14,838 Total loans $ 6,756,983 $ 900,913 $ 4,077,671 $ 1,579,778 $ 8,197,223 $ 923,470 $ 374,453 $ 22,810,491 (a) Loans acquired in business combinations and accounted for under ASC Subtopic 310-30 "Receivables — Loans and Debt Securities Acquired with Deteriorated Credit Quality." For comparison purposes, a summary of the changes in the allowance for loan losses by portfolio segment for the year ended December 31, 2017 , was as follows. ($ 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 (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 The allowance related to the oil and gas portfolio was $19 million at March 31, 2018 and represented 3% of total oil and gas loans. ($ in Millions) Three Months Ended March 31, 2018 Year Ended December 31, 2017 Balance at beginning of period $ 27 $ 38 Charge offs (4 ) (25 ) Recoveries — — Net Charge offs (4 ) (25 ) Provision for loan losses (4 ) 14 Balance at end of period $ 19 $ 27 Allowance for loan losses Individually evaluated for impairment $ 10 $ 5 Collectively evaluated for impairment 9 22 Total allowance for loan losses $ 19 $ 27 Loans Individually evaluated for impairment $ 69 $ 77 Collectively evaluated for impairment 588 523 Total loans $ 657 $ 600 The following table presents a summary of the changes in the allowance for unfunded commitments. Three Months Ended March 31, 2018 Year Ended December 31, 2017 ($ in Thousands) Allowance for Unfunded Commitments Balance at beginning of period $ 24,400 $ 25,400 Provision for unfunded commitments (500 ) (1,000 ) Amount recorded at acquisition 2,436 — Balance at end of period $ 26,336 $ 24,400 Loans Acquired in Acquisition Loans acquired in a business combination are recorded at estimated fair value on their purchase date without a carryover of the related allowance for loan and lease losses. Acquired loans are segregated into two types: • Performing loans are accounted for in accordance with ASC Topic 310-20 "Nonrefundable Fees and Other Costs" as these loans do not have evidence of credit deterioration since origination. • Nonperforming loans are accounted for in accordance with ASC Topic 310-30 as they display significant credit deterioration since origination. For performing loans the difference between the estimated fair value of the loans and the principal outstanding is accreted over the remaining life of the loans. In accordance with ASC 310-30, purchased credit-impaired loans are pooled by loan type and the difference between contractually required payments at acquisition and the cash flows expected to be collected is referred to as the non-accretable difference. Further, any excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized into interest income over the remaining life of the loan pools when there is a reasonable expectation about the amount and timing of such cash flows. Changes in the accretable yield for loans acquired and accounted for under ASC Topic 310-30 were as follows for the three months ended March 31, 2018 and for the year ended December 31, 2017 Three Months Ended March 31, 2018 Year Ended December 31, 2017 ($ in Thousands) Changes in Accretable Yield Balance at beginning of period $ — $ — Purchases 4,244 — Accretion — — Other (a) — — Balance at end of period $ 4,244 $ — (a) Represents the accretable difference that is relieved when a loan exits the PCI population due to full payoff, full charge-off, or transfer to repossessed assets, etc. For loans acquired, the fair value of purchased credit-impaired loans, on the acquisition date, was determined based on assigned risk ratings, expected cash flows and the fair value of loan collateral. The fair value of loans that were non-impaired was determined based on estimates of losses on defaults and other market factors. |