Loans | Loans The period end loan composition was as follows. September 30, 2018 (a) December 31, ($ in Thousands) Commercial and industrial $ 7,159,941 $ 6,399,693 Commercial real estate — owner occupied 867,682 802,209 Commercial and business lending 8,027,622 7,201,902 Commercial real estate — investor 3,924,499 3,315,254 Real estate construction 1,416,209 1,451,684 Commercial real estate lending 5,340,708 4,766,938 Total commercial 13,368,330 11,968,840 Residential mortgage 8,227,649 7,546,534 Home equity 901,275 883,804 Other consumer 369,858 385,813 Total consumer 9,498,782 8,816,151 Total loans $ 22,867,112 $ 20,784,991 (a) Includes $13 million of purchased credit-impaired loans The following table presents commercial and consumer loans by credit quality indicator at September 30, 2018 . Pass Special Mention Potential Problem Nonaccrual Total ($ in Thousands) Commercial and industrial $ 6,886,363 $ 78,964 $ 144,468 $ 50,146 $ 7,159,941 Commercial real estate - owner occupied 823,615 6,762 32,526 4,779 867,682 Commercial and business lending 7,709,978 85,725 176,994 54,925 8,027,622 Commercial real estate - investor 3,790,423 64,509 49,842 19,725 3,924,499 Real estate construction 1,401,585 10,078 3,392 1,154 1,416,209 Commercial real estate lending 5,192,008 74,587 53,234 20,879 5,340,708 Total commercial 12,901,986 160,312 230,228 75,804 13,368,330 Residential mortgage 8,154,521 1,159 6,073 65,896 8,227,649 Home equity 887,690 1,113 148 12,324 901,275 Other consumer 369,192 598 — 68 369,858 Total consumer 9,411,403 2,870 6,221 78,288 9,498,782 Total $ 22,313,389 $ 163,182 $ 236,449 $ 154,092 $ 22,867,112 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 September 30, 2018 . Accruing Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Nonaccrual (a) Total ($ in Thousands) Commercial and industrial $ 7,103,744 $ 5,592 $ 140 $ 319 $ 50,146 $ 7,159,941 Commercial real estate - owner occupied 856,777 5,589 537 — 4,779 867,682 Commercial and business lending 7,960,521 11,181 677 319 54,925 8,027,622 Commercial real estate - investor 3,904,401 373 — — 19,725 3,924,499 Real estate construction 1,414,538 517 — — 1,154 1,416,209 Commercial real estate lending 5,318,939 890 — — 20,879 5,340,708 Total commercial 13,279,460 12,071 677 319 75,804 13,368,330 Residential mortgage 8,152,854 7,829 1,070 — 65,896 8,227,649 Home equity 880,871 6,989 1,091 — 12,324 901,275 Other consumer 365,955 1,249 730 1,856 68 369,858 Total consumer 9,399,680 16,067 2,891 1,856 78,288 9,498,782 Total $ 22,679,140 $ 28,138 $ 3,568 $ 2,175 $ 154,092 $ 22,867,112 (a) Of the total nonaccrual loans, $92 million or 60% were current with respect to payment at September 30, 2018 . The following table presents loans by past due status at December 31, 2017 . Accruing Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Nonaccrual (a) Total ($ 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) 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 $13 million of purchased credit-impaired loans, at September 30, 2018 . Recorded Unpaid Related Average Interest ($ in Thousands) Loans with a related allowance Commercial and industrial $ 57,935 $ 68,894 $ 6,013 $ 70,339 $ 1,121 Commercial real estate — owner occupied 3,746 3,752 20 15,460 143 Commercial and business lending 61,681 72,646 6,033 85,799 1,264 Commercial real estate — investor 2,069 2,148 287 14,929 13 Real estate construction 440 516 74 451 22 Commercial real estate lending 2,509 2,664 361 15,380 35 Total commercial 64,190 75,310 6,394 101,179 1,299 Residential mortgage 40,797 44,197 5,937 41,589 1,321 Home equity 9,692 10,689 3,327 9,846 431 Other consumer 1,186 1,188 123 1,188 2 Total consumer 51,675 56,074 9,387 52,623 1,754 Total loans (a) $ 115,865 $ 131,384 $ 15,781 $ 153,802 $ 3,053 Loans with no related allowance Commercial and industrial $ 28,311 $ 41,615 $ — $ 31,955 $ (348 ) Commercial real estate — owner occupied 3,772 4,823 — 4,043 — Commercial and business lending 32,083 46,438 — 35,998 (348 ) Commercial real estate — investor 9,917 14,230 — 993 892 Real estate construction — — — — — Commercial real estate lending 9,917 14,230 — 993 892 Total commercial 42,000 60,668 — 36,991 544 Residential mortgage 9,925 10,047 — 10,504 172 Home equity 778 796 — 1,277 5 Other consumer — — — — — Total consumer 10,703 10,843 — 11,781 177 Total loans (a) $ 52,703 $ 71,511 $ — $ 48,772 $ 721 Total Commercial and industrial $ 86,246 $ 110,509 $ 6,013 $ 102,294 $ 773 Commercial real estate — owner occupied 7,518 8,575 20 19,503 143 Commercial and business lending 93,764 119,084 6,033 121,797 916 Commercial real estate — investor 11,986 16,378 287 15,922 905 Real estate construction 440 516 74 451 22 Commercial real estate lending 12,426 16,894 361 16,373 927 Total commercial 106,190 135,978 6,394 138,170 1,843 Residential mortgage 50,722 54,244 5,937 52,093 1,493 Home equity 10,470 11,485 3,327 11,123 436 Other consumer 1,186 1,188 123 1,188 2 Total consumer 62,378 66,917 9,387 64,404 1,931 Total loans (a) $ 168,568 $ 202,895 $ 15,781 $ 202,574 $ 3,774 (a) The net recorded investment (defined as recorded investment, net of the related allowance) of the impaired loans represented 75% of the unpaid principal balance at September 30, 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 following table presents nonaccrual and performing restructured loans by loan portfolio. September 30, 2018 December 31, 2017 Performing Restructured Loans Nonaccrual Restructured Loans (a) Performing Restructured Loans Nonaccrual Restructured Loans (a) ($ in Thousands) Commercial and industrial $ 38,885 $ 142 $ 30,047 $ 1,776 Commercial real estate — owner occupied 3,746 — 3,989 — Commercial real estate — investor 350 9,917 14,389 — Real estate construction 218 222 310 157 Residential mortgage 16,986 20,952 17,068 18,991 Home equity 7,792 2,515 7,705 2,537 Other consumer 1,177 9 1,110 25 Total $ 69,154 $ 33,757 $ 74,618 $ 23,486 (a) Nonaccrual restructured loans have been included within nonaccrual loans. The Corporation had a recorded investment of approximately $10 million in loans modified in troubled debt restructurings during the nine months ended September 30, 2018 , of which $4 million were in accrual status and approximately $6 million were in nonaccrual pending a sustained period of repayment. The following table provides the number of loans modified in a troubled debt restructuring by loan portfolio, the recorded investment and unpaid principal balance for the nine months ended September 30, 2018 and 2017 . Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 Number of Loans Recorded Investment (a) Unpaid Principal Balance (b) Number of Loans Recorded Investment (a) Unpaid Principal Balance (b) ($ in Thousands) Commercial and industrial 6 $ 1,954 $ 1,995 19 $ 11,387 $ 15,898 Commercial real estate — owner occupied — — — 2 710 710 Commercial real estate — investor 1 958 1,022 — — — Residential mortgage 29 5,655 5,733 48 4,445 4,638 Home equity 32 1,552 1,582 35 934 1,182 Other consumer 3 19 21 — — — Total 71 $ 10,138 $ 10,353 104 $ 17,476 $ 22,428 (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, 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 nine months ended September 30, 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 nine months ended September 30, 2018 and 2017 and the recorded investment in these restructured loans as of September 30, 2018 and 2017 . Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 Number of Loans Recorded Investment Number of Loans Recorded Investment ($ in Thousands) Commercial and industrial 3 $ — 1 $ 1 Residential mortgage 12 2,579 21 1,335 Home equity 28 1,599 14 371 Total 43 $ 4,178 36 $ 1,707 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, 2018 . ($ in Thousands) Commercial and Commercial real estate - owner occupied 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 (29,707 ) (1,361 ) (5,278 ) (298 ) (1,310 ) (2,508 ) (3,923 ) (44,385 ) Recoveries 9,609 354 139 340 1,049 2,171 593 14,255 Net Charge offs (20,098 ) (1,007 ) (5,139 ) 42 (261 ) (337 ) (3,330 ) (30,130 ) Provision for loan losses 2,643 105 5,737 (7,676 ) (1,884 ) (2,101 ) 3,676 500 September 30, 2018 $ 105,613 $ 9,451 $ 41,657 $ 26,737 $ 27,461 $ 19,687 $ 5,644 $ 236,250 Allowance for loan losses Individually evaluated for impairment $ 6,013 $ 20 $ 287 $ 74 $ 5,937 $ 3,327 $ 123 $ 15,781 Collectively evaluated for impairment 99,600 9,431 41,370 26,663 21,524 16,360 5,521 220,469 Acquired and accounted for under ASC 310-30 (a) — — — — — — — — Total allowance for loan losses $ 105,613 $ 9,451 $ 41,657 $ 26,737 $ 27,461 $ 19,687 $ 5,644 $ 236,250 Loans Individually evaluated for impairment $ 86,246 $ 7,518 $ 11,986 $ 440 $ 50,722 $ 10,470 $ 1,186 $ 168,568 Collectively evaluated for impairment 7,071,043 858,747 3,904,266 1,415,745 8,176,217 890,721 368,672 22,685,411 Acquired and accounted for under ASC 310-30 (a) 2,652 1,416 8,247 24 710 84 — 13,133 Total loans $ 7,159,941 $ 867,682 $ 3,924,499 $ 1,416,209 $ 8,227,649 $ 901,275 $ 369,858 $ 22,867,112 (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 $10 million at September 30, 2018 and represented 1.4% of total oil and gas loans. ($ in Millions) Nine Months Ended September 30, 2018 Year Ended December 31, 2017 Balance at beginning of period $ 27 $ 38 Charge offs (24 ) (25 ) Recoveries 3 — Net Charge offs (20 ) (25 ) Provision for loan losses 3 14 Balance at end of period $ 10 $ 27 Allowance for loan losses Individually evaluated for impairment $ — $ 5 Collectively evaluated for impairment 10 22 Total allowance for loan losses $ 10 $ 27 Loans Individually evaluated for impairment $ 32 $ 77 Collectively evaluated for impairment 700 523 Total loans $ 731 $ 600 The following table presents a summary of the changes in the allowance for unfunded commitments. Nine Months Ended September 30, 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 (1,500 ) (1,000 ) Amount recorded at acquisition 2,436 — Balance at end of period $ 25,336 $ 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. If a reasonable expectation on the amount or timing of such cash flows cannot be determined, accretion of the fair value discount for nonperforming loans will be recognized using the cost recovery method of accounting. Changes in the accretable yield for loans acquired and accounted for under ASC Topic 310-30 were as follows for the nine months ended September 30, 2018 and for the year ended December 31, 2017 Nine Months Ended September 30, 2018 Year Ended December 31, 2017 ($ in Thousands) Changes in Accretable Yield Balance at beginning of period $ — $ — Purchases 4,853 — Accretion (310 ) — Net reclassification from non-accretable yield 144 — Other (a) (5 ) — Balance at end of period $ 4,681 $ — (a) Primarily includes charge-offs which are accounted for under ASC Subtopic 310-30 "Receivables — Loans and Debt Securities Acquired with Deteriorated Credit Quality." 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. At September 30, 2018 , the Corporation had a total of approximately $27 million in net unaccreted purchase discount, of which approximately $21 million was related to performing loans and approximately $6 million |