Loans | Loans The period end loan composition was as follows: March 31, 2019 (a) December 31, 2018 (a) ($ in Thousands) Commercial and industrial $ 7,587,597 $ 7,398,044 Commercial real estate — owner occupied 932,393 920,443 Commercial and business lending 8,519,990 8,318,487 Commercial real estate — investor 3,809,253 3,751,554 Real estate construction 1,273,782 1,335,031 Commercial real estate lending 5,083,035 5,086,585 Total commercial 13,603,025 13,405,072 Residential mortgage 8,323,846 8,277,712 Home equity 868,886 894,473 Other consumer 352,602 363,171 Total consumer 9,545,333 9,535,357 Total loans $ 23,148,359 $ 22,940,429 (a) Includes $5 million of purchased credit-impaired loans at March 31, 2019 and December 31, 2018 . The following table presents commercial and consumer loans by credit quality indicator at March 31, 2019 : Pass Special Mention Potential Problem Nonaccrual Total ($ in Thousands) Commercial and industrial $ 7,371,790 $ 30,657 $ 111,772 $ 73,379 $ 7,587,597 Commercial real estate - owner occupied 874,152 8,422 48,929 890 932,393 Commercial and business lending 8,245,942 39,079 160,701 74,269 8,519,990 Commercial real estate - investor 3,698,679 39,184 70,613 776 3,809,253 Real estate construction 1,259,661 8,782 4,600 739 1,273,782 Commercial real estate lending 4,958,341 47,966 75,213 1,516 5,083,035 Total commercial 13,204,282 87,045 235,914 75,784 13,603,025 Residential mortgage 8,250,915 256 5,351 67,323 8,323,846 Home equity 855,603 891 91 12,300 868,886 Other consumer 351,734 719 — 149 352,602 Total consumer 9,458,252 1,866 5,443 79,772 9,545,333 Total loans $ 22,662,534 $ 88,912 $ 241,357 $ 155,556 $ 23,148,359 The following table presents commercial and consumer loans by credit quality indicator at December 31, 2018 : Pass Special Mention Potential Problem Nonaccrual Total ($ in Thousands) Commercial and industrial $ 7,162,370 $ 78,075 $ 116,578 $ 41,021 $ 7,398,044 Commercial real estate - owner occupied 854,265 6,257 55,964 3,957 920,443 Commercial and business lending 8,016,635 84,332 172,542 44,978 8,318,487 Commercial real estate - investor 3,653,642 28,479 67,481 1,952 3,751,554 Real estate construction 1,321,447 8,771 3,834 979 1,335,031 Commercial real estate lending 4,975,089 37,249 71,315 2,931 5,086,585 Total commercial 12,991,724 121,582 243,856 47,909 13,405,072 Residential mortgage 8,203,729 434 5,975 67,574 8,277,712 Home equity 880,808 1,223 103 12,339 894,473 Other consumer 362,343 749 — 79 363,171 Total consumer 9,446,881 2,406 6,078 79,992 9,535,357 Total loans $ 22,438,605 $ 123,988 $ 249,935 $ 127,901 $ 22,940,429 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 exhibiting 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 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 the Corporation will sustain some loss if the deficiencies are not corrected. Lastly, management considers a loan to be impaired when it is probable 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 commercial and consumer loan relationships in nonaccrual status or those with 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, 2019 : 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 $ 7,510,637 $ 2,902 $ 392 $ 287 $ 73,379 $ 7,587,597 Commercial real estate - owner occupied 925,437 6,066 — — 890 932,393 Commercial and business lending 8,436,074 8,968 392 287 74,269 8,519,990 Commercial real estate - investor 3,807,387 1,090 — — 776 3,809,253 Real estate construction 1,266,270 6,727 46 — 739 1,273,782 Commercial real estate lending 5,073,657 7,816 46 — 1,516 5,083,035 Total commercial 13,509,731 16,785 439 287 75,784 13,603,025 Residential mortgage 8,243,248 13,018 256 — 67,323 8,323,846 Home equity 850,223 5,472 891 — 12,300 868,886 Other consumer 348,158 1,389 975 1,931 149 352,602 Total consumer 9,441,629 19,879 2,123 1,931 79,772 9,545,333 Total loans $ 22,951,360 $ 36,663 $ 2,562 $ 2,218 $ 155,556 $ 23,148,359 (a) Of the total nonaccrual loans, $106 million , or 68% , were current with respect to payment at March 31, 2019 . The following table presents loans by past due status at December 31, 2018 : Accruing Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Nonaccrual (a) Total ($ in Thousands) Commercial and industrial $ 7,356,187 $ 187 $ 338 $ 311 $ 41,021 $ 7,398,044 Commercial real estate - owner occupied 913,787 2,580 119 — 3,957 920,443 Commercial and business lending 8,269,974 2,767 457 311 44,978 8,318,487 Commercial real estate - investor 3,745,835 2,954 813 — 1,952 3,751,554 Real estate construction 1,333,722 330 — — 979 1,335,031 Commercial real estate lending 5,079,557 3,284 813 — 2,931 5,086,585 Total commercial 13,349,531 6,051 1,270 311 47,909 13,405,072 Residential mortgage 8,200,432 9,272 434 — 67,574 8,277,712 Home equity 876,085 4,826 1,223 — 12,339 894,473 Other consumer 358,970 1,401 868 1,853 79 363,171 Total consumer 9,435,487 15,499 2,525 1,853 79,992 9,535,357 Total loans $ 22,785,019 $ 21,550 $ 3,795 $ 2,165 $ 127,901 $ 22,940,429 (a) Of the total nonaccrual loans, $74 million , or 58% , were current with respect to payment at December 31, 2018 . The following table presents impaired loans individually evaluated under ASC Topic 310, excluding $5 million of purchased credit-impaired loans, at March 31, 2019 : Recorded Unpaid Related Average Interest ($ in Thousands) Loans with a related allowance Commercial and industrial $ 44,810 $ 48,448 $ 10,876 $ 36,288 $ 317 Commercial real estate — owner occupied 2,104 2,111 50 2,122 27 Commercial and business lending 46,914 50,559 10,926 38,411 344 Commercial real estate — investor 1,700 1,799 26 792 17 Real estate construction 498 578 69 502 9 Commercial real estate lending 2,198 2,377 94 1,293 25 Total commercial 49,112 52,936 11,021 39,704 369 Residential mortgage 46,165 49,395 6,197 43,194 527 Home equity 10,792 11,815 3,348 10,015 128 Other consumer 1,158 1,161 119 1,159 — Total consumer 58,116 62,370 9,664 54,368 655 Total loans (a) $ 107,228 $ 115,307 $ 20,684 $ 94,072 $ 1,025 Loans with no related allowance Commercial and industrial $ 42,988 $ 61,425 $ — $ 15,896 $ 1,657 Commercial real estate — owner occupied 730 740 — — 3 Commercial and business lending 43,718 62,166 — 15,896 1,660 Commercial real estate — investor 635 1,805 — 1,559 — Real estate construction — — — — — Commercial real estate lending 635 1,805 — 1,559 — Total commercial 44,353 63,970 — 17,455 1,660 Residential mortgage 8,182 8,429 — 7,885 48 Home equity — — — 523 — Other consumer — — — — — Total consumer 8,182 8,429 — 8,408 48 Total loans (a) $ 52,535 $ 72,399 $ — $ 25,863 $ 1,708 Total Commercial and industrial $ 87,798 $ 109,873 $ 10,876 $ 52,184 $ 1,974 Commercial real estate — owner occupied 2,834 2,851 50 2,122 30 Commercial and business lending 90,632 112,724 10,926 54,307 2,004 Commercial real estate — investor 2,335 3,604 26 2,351 17 Real estate construction 498 578 69 502 9 Commercial real estate lending 2,833 4,182 94 2,852 25 Total commercial 93,465 116,906 11,021 57,159 2,029 Residential mortgage 54,348 57,824 6,197 51,079 574 Home equity 10,792 11,815 3,348 10,538 128 Other consumer 1,158 1,161 119 1,159 — Total consumer 66,298 70,799 9,664 62,776 703 Total loans (a) $ 159,763 $ 187,705 $ 20,684 $ 119,935 $ 2,732 (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, 2019 . The following table presents impaired loans individually evaluated under ASC Topic 310, excluding $5 million of purchased credit-impaired loans, at December 31, 2018 : Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized ($ in Thousands) Loans with a related allowance Commercial and industrial $ 40,747 $ 42,131 $ 5,721 $ 52,461 $ 1,167 Commercial real estate — owner occupied 2,080 2,087 24 2,179 104 Commercial and business lending 42,827 44,218 5,745 54,640 1,271 Commercial real estate — investor 799 805 28 827 38 Real estate construction 510 589 75 533 32 Commercial real estate lending 1,309 1,394 103 1,360 70 Total commercial 44,136 45,612 5,848 56,000 1,341 Residential mortgage 41,691 45,149 6,023 42,687 1,789 Home equity 9,601 10,539 3,312 10,209 566 Other consumer 1,181 1,183 121 1,184 3 Total consumer 52,473 56,871 9,456 54,080 2,358 Total loans (a) $ 96,609 $ 102,483 $ 15,304 $ 110,079 $ 3,699 Loans with no related allowance Commercial and industrial $ 22,406 $ 45,024 $ — $ 21,352 $ (344 ) Commercial real estate — owner occupied 3,772 4,823 — 3,975 — Commercial and business lending 26,178 49,847 — 25,327 (344 ) Commercial real estate — investor 1,585 2,820 — 980 68 Real estate construction — — — — — Commercial real estate lending 1,585 2,820 — 980 68 Total commercial 27,763 52,667 — 26,307 (276 ) Residential mortgage 8,795 9,074 — 8,790 203 Home equity 523 542 — 530 — Other consumer — — — — — Total consumer 9,318 9,616 — 9,320 203 Total loans (a) $ 37,081 $ 62,283 $ — $ 35,627 $ (73 ) Total Commercial and industrial $ 63,153 $ 87,155 $ 5,721 $ 73,813 $ 823 Commercial real estate — owner occupied 5,852 6,910 24 6,154 104 Commercial and business lending 69,005 94,065 5,745 79,967 927 Commercial real estate — investor 2,384 3,625 28 1,807 106 Real estate construction 510 589 75 533 32 Commercial real estate lending 2,894 4,214 103 2,340 138 Total commercial 71,899 98,279 5,848 82,307 1,065 Residential mortgage 50,486 54,223 6,023 51,477 1,992 Home equity 10,124 11,081 3,312 10,739 566 Other consumer 1,181 1,183 121 1,184 3 Total consumer 61,791 66,487 9,456 63,400 2,561 Total loans (a) $ 133,690 $ 164,766 $ 15,304 $ 145,707 $ 3,626 (a) The net recorded investment (defined as recorded investment, net of the related allowance) of the impaired loans represented 72% of the unpaid principal balance at December 31, 2018 . 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 $5 million in loans modified in troubled debt restructurings during the three months ended March 31, 2019 , of which $1 million were in accrual status and approximately $4 million were in nonaccrual pending a sustained period of repayment. The following table presents nonaccrual and performing restructured loans by loan portfolio: March 31, 2019 December 31, 2018 Performing Restructured Loans Nonaccrual Restructured Loans (a) Performing Restructured Loans Nonaccrual Restructured Loans (a) ($ in Thousands) Commercial and industrial $ 15,443 $ 107 $ 25,478 $ 249 Commercial real estate — owner occupied 2,026 78 2,080 — Commercial real estate — investor 1,700 — 799 933 Real estate construction 311 187 311 198 Residential mortgage 18,226 21,549 16,036 22,279 Home equity 7,688 2,247 7,385 2,627 Other consumer 1,154 5 1,174 6 Total restructured loans $ 46,548 $ 24,172 $ 53,263 $ 26,292 (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, the recorded investment and unpaid principal balance for the three months ended March 31, 2019 and 2018 : Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 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 Commercial real estate — owner occupied 1 78 78 — — — Commercial real estate — investor — — — 1 1,007 1,037 Residential mortgage 25 4,357 4,374 11 1,807 1,807 Home equity 13 293 312 17 1,044 1,060 Other consumer 1 11 11 2 8 11 Total loans modified 40 $ 4,739 $ 4,776 33 $ 3,958 $ 4,007 (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, 2019 , 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, 2019 . 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, 2019 and 2018 and the recorded investment in these restructured loans as of March 31, 2019 and 2018 : Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 Number of Loans Recorded Investment Number of Loans Recorded Investment ($ in Thousands) Residential mortgage 5 $ 613 4 $ 467 Home equity 7 177 12 954 Total loans modified 12 $ 790 16 $ 1,421 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, are 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, 2019 : ($ in Thousands) Commercial and Commercial real estate - owner occupied Commercial real estate - Real estate Residential Home Other Total December 31, 2018 $ 108,835 $ 9,255 $ 40,844 $ 28,240 $ 25,595 $ 19,266 $ 5,988 $ 238,023 Charge offs (13,216 ) — — (52 ) (652 ) (254 ) (1,312 ) (15,486 ) Recoveries 5,788 1,193 31 52 195 563 222 8,044 Net Charge offs (7,428 ) 1,193 31 — (457 ) 309 (1,090 ) (7,442 ) Provision for loan losses 7,525 131 289 (1,326 ) (1,567 ) (1,639 ) 1,087 4,500 March 31, 2019 $ 108,933 $ 10,579 $ 41,164 $ 26,914 $ 23,571 $ 17,936 $ 5,984 $ 235,081 Allowance for loan losses Individually evaluated for impairment $ 10,876 $ 50 $ 26 $ 69 $ 6,197 $ 3,348 $ 119 $ 20,684 Collectively evaluated for impairment 98,057 10,529 41,138 26,845 17,373 14,588 5,866 214,396 Acquired and accounted for under ASC 310-30 (a) — — — — — — — — Total allowance for loan losses $ 108,933 $ 10,579 $ 41,164 $ 26,914 $ 23,571 $ 17,936 $ 5,984 $ 235,081 Loans Individually evaluated for impairment $ 87,798 $ 2,834 $ 2,335 $ 498 $ 54,347 $ 10,793 $ 1,158 $ 159,763 Collectively evaluated for impairment 7,496,743 928,723 3,806,635 1,273,267 8,268,834 858,044 351,443 22,983,688 Acquired and accounted for under ASC 310-30 (a) 3,057 836 283 18 664 49 — 4,907 Total loans $ 7,587,597 $ 932,393 $ 3,809,253 $ 1,273,782 $ 8,323,846 $ 868,886 $ 352,602 $ 23,148,359 (a) Loans acquired in business combinations and accounted for under ASC topic 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, 2018 , was as follows: ($ 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 (30,837 ) (1,363 ) (7,914 ) (298 ) (1,627 ) (3,236 ) (5,261 ) (50,536 ) Recoveries 13,714 639 668 446 1,271 2,628 812 20,179 Net Charge offs (17,123 ) (724 ) (7,246 ) 149 (355 ) (608 ) (4,448 ) (30,358 ) Provision for loan losses 2,890 (373 ) 7,031 (6,279 ) (3,657 ) (2,252 ) 5,138 2,500 December 31, 2018 $ 108,835 $ 9,255 $ 40,844 $ 28,240 $ 25,595 $ 19,266 $ 5,988 $ 238,023 Allowance for loan losses Individually evaluated for impairment $ 5,721 $ 24 $ 28 $ 75 $ 6,023 $ 3,312 $ 121 $ 15,304 Collectively evaluated for impairment 103,114 9,231 40,816 28,165 19,572 15,954 5,867 222,719 Acquired and accounted for under ASC 310-30 (a) — — — — — — — — Total allowance for loan losses $ 108,835 $ 9,255 $ 40,844 $ 28,240 $ 25,595 $ 19,266 $ 5,988 $ 238,023 Loans Individually evaluated for impairment $ 63,153 $ 5,852 $ 2,384 $ 510 $ 50,486 $ 10,124 $ 1,181 $ 133,690 Collectively evaluated for impairment 7,331,898 913,708 3,748,883 1,334,500 8,226,642 884,266 361,990 22,801,887 Acquired and accounted for under ASC 310-30 (a) 2,994 883 287 21 584 83 — 4,853 Total loans $ 7,398,044 $ 920,443 $ 3,751,554 $ 1,335,031 $ 8,277,712 $ 894,473 $ 363,171 $ 22,940,429 (a) Loans acquired in business combinations and accounted for under ASC Subtopic 310-30 "Receivables — Loans and Debt Securities Acquired with Deteriorated Credit Quality." 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. The following table presents a summary of the changes in the allowance for unfunded commitments: Three Months Ended March 31, 2019 Year Ended December 31, 2018 ($ in Thousands) Allowance for Unfunded Commitments Balance at beginning of period $ 24,336 $ 24,400 Provision for unfunded commitments 1,500 (2,500 ) Amount recorded at acquisition — 2,436 Balance at end of period $ 25,836 $ 24,336 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 three months ended March 31, 2019 and for the year ended December 31, 2018 : Three Months Ended March 31, 2019 Year Ended December 31, 2018 ($ in Thousands) Changes in Accretable Yield Balance at beginning of period $ 1,482 $ — Purchases — 4,853 Accretion (221 ) (4,954 ) Net reclassification from non-accretable yield 23 1,605 Other (a) — (22 ) Balance at end of period $ 1,285 $ 1,482 (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 March 31, 2019 , the Corporation had a total of approximately $18 million in net unaccreted purchase discount, of which approximately $16 million was related to performing loans and approximately $2 million |