Loans | Loans The period end loan composition was as follows: June 30, 2019 December 31, 2018 ($ in Thousands) Commercial and industrial $ 7,579,384 $ 7,398,044 Commercial real estate — owner occupied 942,811 920,443 Commercial and business lending 8,522,194 8,318,487 Commercial real estate — investor 3,779,201 3,751,554 Real estate construction 1,394,815 1,335,031 Commercial real estate lending 5,174,016 5,086,585 Total commercial 13,696,210 13,405,072 Residential mortgage 8,277,479 8,277,712 Home equity 916,213 894,473 Other consumer 360,065 363,171 Total consumer 9,553,757 9,535,357 Total loans (a) $ 23,249,967 $ 22,940,429 (a) Includes $2 million and $5 million of purchased credit-impaired loans at June 30, 2019 and December 31, 2018 , respectively. The following table presents commercial and consumer loans by credit quality indicator at June 30, 2019 : Pass Special Mention Potential Problem Nonaccrual Total ($ in Thousands) Commercial and industrial $ 7,387,549 $ 49,026 $ 58,658 $ 84,151 $ 7,579,384 Commercial real estate - owner occupied 909,641 8,362 24,237 571 942,811 Commercial and business lending 8,297,189 57,388 82,895 84,722 8,522,194 Commercial real estate - investor 3,628,197 71,753 77,766 1,485 3,779,201 Real estate construction 1,382,502 8,720 3,166 427 1,394,815 Commercial real estate lending 5,010,699 80,473 80,932 1,912 5,174,016 Total commercial 13,307,888 137,860 163,828 86,634 13,696,210 Residential mortgage 8,206,689 641 1,983 68,166 8,277,479 Home equity 903,694 652 32 11,835 916,213 Other consumer 359,487 506 — 72 360,065 Total consumer 9,469,870 1,799 2,014 80,073 9,553,757 Total loans $ 22,777,758 $ 139,660 $ 165,842 $ 166,707 $ 23,249,967 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, which 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 June 30, 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 $ 7,490,030 $ 4,769 $ 139 $ 293 $ 84,151 $ 7,579,384 Commercial real estate - owner occupied 940,222 2,018 — — 571 942,811 Commercial and business lending 8,430,252 6,787 139 293 84,722 8,522,194 Commercial real estate - investor 3,776,334 1,382 — — 1,485 3,779,201 Real estate construction 1,394,237 131 19 — 427 1,394,815 Commercial real estate lending 5,170,572 1,513 19 — 1,912 5,174,016 Total commercial 13,600,824 8,300 159 293 86,634 13,696,210 Residential mortgage 8,199,557 9,199 558 — 68,166 8,277,479 Home equity 898,550 5,176 652 — 11,835 916,213 Other consumer 356,360 1,150 688 1,795 72 360,065 Total consumer 9,454,467 15,524 1,898 1,795 80,073 9,553,757 Total loans $ 23,055,291 $ 23,824 $ 2,057 $ 2,088 $ 166,707 $ 23,249,967 (a) Of the total nonaccrual loans, $90 million , or 54% , were current with respect to payment at June 30, 2019 . The following table presents loans by past due status at December 31, 2018 : Accruing Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Nonaccrual (a) Total ($ 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 $2 million of purchased credit-impaired loans, at June 30, 2019 : Recorded Unpaid Related Average Interest ($ in Thousands) Loans with a related allowance Commercial and industrial $ 83,561 $ 94,759 $ 22,890 $ 48,118 $ 1,104 Commercial real estate — owner occupied 1,970 1,977 27 2,017 51 Commercial and business lending 85,531 96,735 22,917 50,135 1,155 Commercial real estate — investor 776 782 103 786 17 Real estate construction 417 497 56 422 14 Commercial real estate lending 1,193 1,279 159 1,208 31 Total commercial 86,724 98,015 23,076 51,343 1,186 Residential mortgage 45,856 49,110 5,693 45,953 991 Home equity 9,609 10,600 3,233 11,042 240 Other consumer 1,225 1,227 185 1,227 — Total consumer 56,690 60,938 9,112 58,222 1,231 Total loans with a related allowance $ 143,414 $ 158,952 $ 32,188 $ 109,565 $ 2,417 Loans with no related allowance Commercial and industrial $ 16,505 $ 33,999 $ — $ 23,303 $ 25 Commercial real estate — owner occupied 503 735 — 569 3 Commercial and business lending 17,007 34,734 — 23,872 28 Commercial real estate — investor 635 1,805 — 638 — Real estate construction — — — — — Commercial real estate lending 635 1,805 — 638 — Total commercial 17,642 36,539 — 24,511 28 Residential mortgage 10,416 10,584 — 8,183 178 Home equity 1,017 1,036 — — 11 Other consumer — — — — — Total consumer 11,432 11,620 — 8,183 189 Total loans with no related allowance $ 29,075 $ 48,159 $ — $ 32,694 $ 216 Total Commercial and industrial $ 100,066 $ 128,758 $ 22,890 $ 71,421 $ 1,129 Commercial real estate — owner occupied 2,473 2,712 27 2,586 54 Commercial and business lending 102,538 131,470 22,917 74,007 1,183 Commercial real estate — investor 1,411 2,587 103 1,424 17 Real estate construction 417 497 56 422 14 Commercial real estate lending 1,828 3,084 159 1,847 31 Total commercial 104,367 134,554 23,076 75,853 1,214 Residential mortgage 56,272 59,694 5,693 54,136 1,168 Home equity 10,626 11,636 3,233 11,042 251 Other consumer 1,225 1,227 185 1,227 — Total consumer 68,122 72,557 9,112 66,405 1,420 Total loans (a) $ 172,489 $ 207,111 $ 32,188 $ 142,258 $ 2,633 (a) The net recorded investment (defined as recorded investment, net of the related allowance) of the impaired loans represented 68% of the unpaid principal balance at June 30, 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 with a related allowance $ 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 with no related allowance $ 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 $6 million in loans modified in troubled debt restructurings during the six months ended June 30, 2019 , of which $1 million were in accrual status and approximately $5 million were in nonaccrual pending a sustained period of repayment. The following table presents nonaccrual and performing restructured loans by loan portfolio: June 30, 2019 December 31, 2018 Performing Restructured Loans Nonaccrual Restructured Loans (a) Performing Restructured Loans Nonaccrual Restructured Loans (a) ($ in Thousands) Commercial and industrial $ 16,850 $ 101 $ 25,478 $ 249 Commercial real estate — owner occupied 1,970 — 2,080 — Commercial real estate — investor 315 461 799 933 Real estate construction 232 185 311 198 Residential mortgage 17,645 21,213 16,036 22,279 Home equity 7,247 2,369 7,385 2,627 Other consumer 1,222 3 1,174 6 Total restructured loans $ 45,481 $ 24,332 $ 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 six months ended June 30, 2019 and 2018 : Six Months Ended June 30, 2019 Six Months Ended June 30, 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 1 $ 196 $ 196 1 $ 47 $ 47 Commercial real estate — investor — — — 1 984 1,031 Residential mortgage 38 5,665 5,682 10 2,064 2,064 Home equity 18 499 506 10 935 949 Other consumer 1 10 10 1 5 8 Total loans modified 58 $ 6,370 $ 6,394 23 $ 4,035 $ 4,099 (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 six months ended June 30, 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 residential mortgage, home equity, and other consumer loans primarily included maturity date extensions, interest rate concessions, non-reaffirmed Chapter 7 bankruptcies, or a combination of these concessions for the six months ended June 30, 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 six months ended June 30, 2019 and 2018 and the recorded investment in these restructured loans as of June 30, 2019 and 2018 : Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 Number of Loans Recorded Investment Number of Loans Recorded Investment ($ in Thousands) Commercial and industrial — $ — 3 $ — Residential mortgage 16 2,813 8 2,219 Home equity 14 477 21 1,409 Total loans modified 30 $ 3,290 32 $ 3,628 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 six months ended June 30, 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 (26,255 ) (222 ) — (60 ) (1,260 ) (725 ) (2,726 ) (31,247 ) Recoveries 6,650 1,312 34 211 438 1,273 467 10,384 Net Charge offs (19,605 ) 1,089 34 151 (822 ) 548 (2,259 ) (20,864 ) Provision for loan losses 23,970 (1,110 ) 10 (1,267 ) (3,421 ) (4,241 ) 2,558 16,500 June 30, 2019 $ 113,199 $ 9,235 $ 40,888 $ 27,124 $ 21,352 $ 15,573 $ 6,287 $ 233,659 Allowance for loan losses Individually evaluated for impairment $ 22,890 $ 27 $ 103 $ 56 $ 5,693 $ 3,233 $ 185 $ 32,188 Collectively evaluated for impairment 90,309 9,207 40,785 27,068 15,659 12,340 6,102 201,470 Total allowance for loan losses $ 113,199 $ 9,235 $ 40,888 $ 27,124 $ 21,352 $ 15,573 $ 6,287 $ 233,659 Loans Individually evaluated for impairment $ 100,066 $ 2,473 $ 1,411 $ 417 $ 56,272 $ 10,626 $ 1,225 $ 172,489 Collectively evaluated for impairment 7,478,790 939,647 3,777,511 1,394,384 8,220,602 905,560 358,841 23,075,334 Acquired and accounted for under ASC 310-30 (a) 528 691 279 14 605 27 — 2,145 Total loans $ 7,579,384 $ 942,811 $ 3,779,201 $ 1,394,815 $ 8,277,479 $ 916,213 $ 360,065 $ 23,249,967 (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, 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 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 related to the oil and gas portfolio was $25 million , or 3.8% of total oil and gas loans, and $12 million , or 1.6% of total oil and gas loans, at June 30, 2019 and December 31, 2018 , respectively. ($ in Millions) Six Months Ended June 30, 2019 Year Ended December 31, 2018 Balance at beginning of period $ 12 $ 27 Charge offs (17 ) (24 ) Recoveries 4 6 Net Charge offs (13 ) (17 ) Provision for loan losses 26 2 Balance at end of period $ 25 $ 12 Allowance for loan losses Individually evaluated for impairment $ 16 $ — Collectively evaluated for impairment 9 12 Total allowance for loan losses $ 25 $ 12 Loans Individually evaluated for impairment $ 63 $ 22 Collectively evaluated for impairment 594 725 Total loans $ 657 $ 747 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: Six Months Ended June 30, 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 (2,500 ) (2,500 ) Amount recorded at acquisition 70 2,436 Balance at end of period $ 21,907 $ 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 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 six months ended June 30, 2019 and for the year ended December 31, 2018 : Six Months Ended June 30, 2019 Year Ended December 31, 2018 ($ in Thousands) Changes in Accretable Yield Balance at beginning of period $ 1,482 $ — Purchases — 4,853 Accretion (812 ) (4,954 ) Net reclassification from non-accretable yield 23 1,605 Other (a) — (22 ) Balance at end of period $ 694 $ 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. The Corporation's Huntington branch acquisition included no purchased credit-impaired loans. At June 30, 2019 , the Corporation had a total of approximately $17 million in net unaccreted purchase discount, of which approximately $16 million was related to performing loans and approximately $1 million was related to the Corporation's purchased credit-impaired loans. At December 31, 2018 , the Corporation had a total of approximately $20 million in net unaccreted purchase discount, of which approximately $18 million was related to performing loans and approximately $2 million |