Loans | Loans The period end loan composition was as follows: ($ in Thousands) March 31, 2020 December 31, 2019 Commercial and industrial $ 8,517,974 $ 7,354,594 Commercial real estate — owner occupied 940,687 911,265 Commercial and business lending 9,458,661 8,265,858 Commercial real estate — investor 4,038,036 3,794,517 Real estate construction 1,544,858 1,420,900 Commercial real estate lending 5,582,894 5,215,417 Total commercial 15,041,555 13,481,275 Residential mortgage 8,132,417 8,136,980 Home equity 844,901 852,025 Other consumer 346,761 351,159 Total consumer 9,324,079 9,340,164 Total loans (a) $ 24,365,633 $ 22,821,440 (a) During the first quarter of 2020, the Corporation transferred $200 million of portfolio residential mortgages to residential loans held for sale, which are not included in total loans. Accrued interest receivable on loans totaled $66 million at March 31, 2020, included in interest receivable on the consolidated balance sheets. Interest accrued but not received for loans placed on nonaccrual is reversed against interest income. The amount of accrued interest reversed totaled approximately $327,000 for the period ended March 31, 2020. The following table presents commercial and consumer loans by credit quality indicator by vintage year at March 31, 2020: Term Loans Amortized Cost Basis by Origination Year (a) ($ in Thousands) Rev Loans Converted to Term (a) Rev Loans Amortized Cost Basis YTD 2020 2019 2018 2017 2016 Prior Total Commercial and industrial: Risk rating: Pass $ 777 $ 2,027,795 $ 665,843 $ 1,943,817 $ 1,770,838 $ 846,057 $ 392,996 $ 598,104 $ 8,245,450 Special Mention — 26,674 5,570 17,726 5,255 1,260 7,287 151 63,922 Potential Problem (b) 685 60,784 134 2,430 21,030 53,915 9,053 2,401 149,747 Nonaccrual (c) — — 231 7,200 550 16,171 17,532 17,171 58,854 Commercial and industrial $ 1,462 $ 2,115,253 $ 671,779 $ 1,971,173 $ 1,797,672 $ 917,402 $ 426,869 $ 617,827 $ 8,517,974 Commercial real estate - owner occupied: Risk rating: Pass $ — $ 45,423 $ 33,107 $ 220,821 $ 141,652 $ 133,631 $ 160,435 $ 150,188 $ 885,257 Special Mention — 86 — 16,438 15,143 139 662 5,321 37,789 Potential Problem — 230 100 780 1,173 1,463 9,930 2,126 15,802 Nonaccrual — — — — 88 343 — 1,407 1,838 Commercial real estate - owner occupied $ — $ 45,739 $ 33,207 $ 238,039 $ 158,056 $ 135,576 $ 171,026 $ 159,043 $ 940,687 Commercial and business lending: Risk rating: Pass $ 777 $ 2,073,218 $ 698,951 $ 2,164,638 $ 1,912,490 $ 979,688 $ 553,431 $ 748,292 $ 9,130,708 Special Mention — 26,760 5,570 34,163 20,398 1,399 7,949 5,472 101,711 Potential Problem (b) 685 61,014 234 3,211 22,204 55,378 18,983 4,527 165,550 Nonaccrual (c) — — 231 7,200 637 16,514 17,532 18,578 60,692 Commercial and business lending $ 1,462 $ 2,160,992 $ 704,986 $ 2,209,212 $ 1,955,729 $ 1,052,978 $ 597,895 $ 776,869 $ 9,458,661 Commercial real estate - investor: Risk rating: Pass $ — $ 206,640 $ 499,631 $ 1,253,538 $ 820,547 $ 348,738 $ 405,718 $ 344,191 $ 3,879,003 Special Mention — — — 33,440 15,128 15,239 31,581 1,525 96,913 Potential Problem — 1,157 20 30,714 3,329 283 12,792 12,734 61,030 Nonaccrual — 446 570 — — — — 75 1,091 Commercial real estate - investor $ — $ 208,244 $ 500,221 $ 1,317,691 $ 839,004 $ 364,261 $ 450,091 $ 358,524 $ 4,038,036 Real estate construction: Risk rating: Pass $ — $ 80,118 $ 121,768 $ 708,726 $ 438,100 $ 146,967 $ 3,331 $ 25,389 $ 1,524,400 Special Mention — — — — 18,203 — — 16 18,219 Potential Problem — — — 148 — 1,557 — 48 1,753 Nonaccrual — — — — — — — 486 486 Real estate construction $ — $ 80,118 $ 121,768 $ 708,875 $ 456,303 $ 148,523 $ 3,331 $ 25,939 $ 1,544,858 Commercial real estate lending: Risk rating: Pass $ — $ 286,759 $ 621,399 $ 1,962,264 $ 1,258,647 $ 495,705 $ 409,049 $ 369,580 $ 5,403,403 Special Mention — — — 33,440 33,331 15,239 31,581 1,540 115,132 Potential Problem — 1,157 20 30,862 3,329 1,840 12,792 12,782 62,783 Nonaccrual — 446 570 — — — — 560 1,577 Commercial real estate lending $ — $ 288,362 $ 621,990 $ 2,026,565 $ 1,295,307 $ 512,784 $ 453,422 $ 384,463 $ 5,582,894 Total commercial: Risk rating: Pass $ 777 $ 2,359,976 $ 1,320,350 $ 4,126,902 $ 3,171,136 $ 1,475,393 $ 962,480 $ 1,117,872 $ 14,534,111 Special Mention — 26,760 5,570 67,603 53,729 16,638 39,530 7,013 216,843 Potential Problem 685 62,171 255 34,073 25,532 57,217 31,775 17,309 228,333 Nonaccrual — 446 801 7,200 637 16,514 17,532 19,138 62,269 Total commercial $ 1,462 $ 2,449,354 $ 1,326,976 $ 4,235,777 $ 3,251,035 $ 1,565,762 $ 1,051,317 $ 1,161,333 $ 15,041,555 Term Loans Amortized Cost Basis by Origination Year (a) ($ in Thousands) Rev Loans Converted to Term (a) Rev Loans Amortized Cost Basis YTD 2020 2019 2018 2017 2016 Prior Total Residential mortgage: Risk rating: Pass $ — $ 92 $ 352,107 $ 1,815,240 $ 874,080 $ 1,474,788 $ 1,321,163 $ 2,226,104 $ 8,063,574 Special Mention — — — — 37 22 36 572 667 Potential Problem — — — 587 36 992 432 1,274 3,322 Nonaccrual — — 619 3,802 5,422 8,949 12,678 33,385 64,855 Residential mortgage $ — $ 92 $ 352,726 $ 1,819,630 $ 879,575 $ 1,484,752 $ 1,334,308 $ 2,261,335 $ 8,132,417 Home equity: Risk rating: Pass $ 6,286 $ 738,938 $ 223 $ 1,626 $ 1,869 $ 2,374 $ 2,748 $ 83,567 $ 831,344 Special Mention 102 1,262 65 39 91 50 97 338 1,942 Potential Problem — 2,045 — — 46 — — 146 2,238 Nonaccrual 221 916 128 224 284 383 180 7,263 9,378 Home equity $ 6,609 $ 743,161 $ 417 $ 1,888 $ 2,290 $ 2,807 $ 3,025 $ 91,314 $ 844,901 Other consumer: Risk rating: Pass $ 62 $ 184,495 $ 2,874 $ 16,037 $ 6,843 $ 3,213 $ 2,369 $ 130,073 $ 345,904 Special Mention 4 559 — 1 — — 78 4 642 Potential Problem — — — — — — — — — Nonaccrual 8 119 — 34 — 10 — 52 215 Other consumer $ 75 $ 185,173 $ 2,874 $ 16,072 $ 6,843 $ 3,223 $ 2,447 $ 130,129 $ 346,761 Total consumer: Risk rating: Pass $ 6,348 $ 923,525 $ 355,204 $ 1,832,904 $ 882,791 $ 1,480,375 $ 1,326,279 $ 2,439,744 $ 9,240,821 Special Mention 106 1,821 65 40 128 71 212 914 3,251 Potential Problem — 2,045 — 587 83 992 432 1,420 5,559 Nonaccrual 229 1,036 748 4,060 5,706 9,342 12,857 40,700 74,448 Total consumer $ 6,683 $ 928,426 $ 356,017 $ 1,837,590 $ 888,708 $ 1,490,781 $ 1,339,780 $ 2,482,777 $ 9,324,079 Total loans: Risk rating: Pass $ 7,125 $ 3,283,501 $ 1,675,554 $ 5,959,806 $ 4,053,928 $ 2,955,768 $ 2,288,760 $ 3,557,616 $ 23,774,932 Special Mention 106 28,581 5,635 67,642 53,857 16,710 39,741 7,927 220,093 Potential Problem 685 64,216 255 34,660 25,615 58,210 32,207 18,729 233,892 Nonaccrual 229 1,482 1,549 11,260 6,343 25,856 30,390 59,838 136,717 Total loans $ 8,145 $ 3,377,780 $ 1,682,992 $ 6,073,368 $ 4,139,743 $ 3,056,543 $ 2,391,098 $ 3,644,110 $ 24,365,633 (a) Revolving loans converted to term loans are also reported in their year of origination (b) Includes $67 million of oil and gas related loans (c) Includes $29 million of oil and gas related loans The following table presents commercial and consumer loans by credit quality indicator at December 31, 2019 : ($ in Thousands) Pass Special Mention Potential Problem Nonaccrual Total Commercial and industrial $ 7,118,448 $ 79,525 $ 110,308 $ 46,312 $ 7,354,594 Commercial real estate - owner occupied 866,193 25,115 19,889 67 911,265 Commercial and business lending 7,984,641 104,641 130,197 46,380 8,265,858 Commercial real estate - investor 3,620,785 139,873 29,449 4,409 3,794,517 Real estate construction 1,420,374 33 — 493 1,420,900 Commercial real estate lending 5,041,159 139,906 29,449 4,902 5,215,417 Total commercial 13,025,800 244,547 159,646 51,282 13,481,275 Residential mortgage 8,077,122 563 1,451 57,844 8,136,980 Home equity 841,757 1,164 — 9,104 852,025 Other consumer 350,260 748 — 152 351,159 Total consumer 9,269,139 2,475 1,451 67,099 9,340,164 Total loans $ 22,294,939 $ 247,022 $ 161,097 $ 118,380 $ 22,821,440 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. Management has determined commercial loan relationships in nonaccrual status and commercial and consumer loan relationships with their terms restructured in a TDR meet the criteria to be individually evaluated. 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 generally 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, 2020: Accruing ($ in Thousands) Current 30-59 Days 60-89 Days 90 Days or Nonaccrual (a)(b) Total Commercial and industrial $ 8,457,708 $ 508 $ 468 $ 436 $ 58,854 $ 8,517,974 Commercial real estate - owner occupied 938,798 51 — — 1,838 940,687 Commercial and business lending 9,396,506 558 468 436 60,692 9,458,661 Commercial real estate - investor 4,022,482 14,462 — — 1,091 4,038,036 Real estate construction 1,544,194 179 — — 486 1,544,858 Commercial real estate lending 5,566,676 14,641 — — 1,577 5,582,894 Total commercial 14,963,182 15,200 468 436 62,269 15,041,555 Residential mortgage 8,057,461 9,492 610 — 64,855 8,132,417 Home equity 828,523 6,012 988 — 9,378 844,901 Other consumer 342,950 1,028 749 1,819 215 346,761 Total consumer 9,228,933 16,531 2,348 1,819 74,448 9,324,079 Total loans $ 24,192,115 $ 31,731 $ 2,816 $ 2,255 $ 136,717 $ 24,365,633 (a) Of the total nonaccrual loans, $75 million, or 55%, were current with respect to payment at March 31, 2020. (b) No interest income was recognized on nonaccrual loans during the three months ended March 31, 2020. In addition, there were $44 million of nonaccrual loans for which there was no related ACLL for the three months ended March 31, 2020. The following table presents loans by past due status at December 31, 2019: Accruing ($ in Thousands) Current 30-59 Days 60-89 Days 90 Days or Nonaccrual (a) Total Commercial and industrial $ 7,307,118 $ 576 $ 245 $ 342 $ 46,312 $ 7,354,594 Commercial real estate - owner occupied 909,828 1,369 — — 67 911,265 Commercial and business lending 8,216,947 1,945 245 342 46,380 8,265,858 Commercial real estate - investor 3,788,296 1,812 — — 4,409 3,794,517 Real estate construction 1,420,310 64 33 — 493 1,420,900 Commercial real estate lending 5,208,606 1,876 33 — 4,902 5,215,417 Total commercial 13,425,552 3,821 278 342 51,282 13,481,275 Residential mortgage 8,069,863 8,749 525 — 57,844 8,136,980 Home equity 837,274 4,483 1,164 — 9,104 852,025 Other consumer 347,007 1,135 949 1,917 152 351,159 Total consumer 9,254,144 14,366 2,638 1,917 67,099 9,340,164 Total loans $ 22,679,696 $ 18,188 $ 2,916 $ 2,259 $ 118,380 $ 22,821,440 (a) Of the total nonaccrual loans, $48 million, or 41%, were current with respect to payment at December 31, 2019. The following table presents impaired loans individually evaluated under ASC Topic 310, excluding $2 million of purchased credit-impaired loans, at December 31, 2019 : ($ in Thousands) Recorded Unpaid Related Average Interest Loans with a related allowance Commercial and industrial $ 47,249 $ 63,346 $ 12,010 $ 45,290 $ 1,832 Commercial real estate — owner occupied 1,676 1,682 19 1,774 88 Commercial and business lending 48,924 65,028 12,029 47,064 1,919 Commercial real estate — investor 928 2,104 15 950 15 Real estate construction 477 559 67 494 30 Commercial real estate lending 1,405 2,663 82 1,445 45 Total commercial 50,329 67,691 12,111 48,509 1,965 Residential mortgage 21,450 22,625 2,740 23,721 856 Home equity 3,076 3,468 1,190 3,756 191 Other consumer 1,247 1,249 125 1,250 1 Total consumer 25,773 27,342 4,055 28,726 1,047 Total loans with a related allowance $ 76,102 $ 95,033 $ 16,165 $ 77,235 $ 3,012 Loans with no related allowance Commercial and industrial $ 14,787 $ 33,438 $ — $ 20,502 $ 63 Commercial real estate — owner occupied — — — — — Commercial and business lending 14,787 33,438 — 20,502 63 Commercial real estate — investor 3,705 3,705 — 3,980 159 Real estate construction — — — — — Commercial real estate lending 3,705 3,705 — 3,980 159 Total commercial 18,491 37,142 — 24,482 222 Residential mortgage 14,104 14,461 — 10,962 373 Home equity 1,346 1,383 — 1,017 21 Other consumer — — — — — Total consumer 15,450 15,845 — 11,979 394 Total loans with no related allowance $ 33,941 $ 52,987 $ — $ 36,462 $ 616 Total Commercial and industrial $ 62,035 $ 96,784 $ 12,010 $ 65,792 $ 1,895 Commercial real estate — owner occupied 1,676 1,682 19 1,774 88 Commercial and business lending 63,711 98,466 12,029 67,566 1,982 Commercial real estate — investor 4,633 5,808 15 4,931 174 Real estate construction 477 559 67 494 30 Commercial real estate lending 5,110 6,367 82 5,425 204 Total commercial 68,820 104,833 12,111 72,991 2,186 Residential mortgage 35,554 37,087 2,740 34,683 1,229 Home equity 4,422 4,851 1,190 4,773 211 Other consumer 1,247 1,249 125 1,250 1 Total consumer 41,223 43,187 4,055 40,706 1,441 Total loans (a) $ 110,043 $ 148,020 $ 16,165 $ 113,697 $ 3,628 (a) The net recorded investment (defined as recorded investment, net of the related allowance) of the impaired loans represented 63% of the unpaid principal balance at December 31, 2019. 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: March 31, 2020 December 31, 2019 ($ in Thousands) Performing Nonaccrual Restructured Loans (a) Performing Nonaccrual Restructured Loans (a) Commercial and industrial $ 16,056 $ 6,909 $ 16,678 $ 7,376 Commercial real estate — owner occupied 2,091 — 1,676 — Commercial real estate — investor 281 570 293 — Real estate construction 339 176 298 179 Residential mortgage 4,654 15,097 3,955 13,035 Home equity 1,719 1,451 1,896 1,904 Other consumer 1,245 1 1,246 1 Total restructured loans (b) $ 26,384 $ 24,204 $ 26,041 $ 22,494 (a) Nonaccrual restructured loans have been included within nonaccrual loans. (b) Does not include any restructured loans related to COVID-19 in accordance with regulatory guidance. The Corporation had a recorded investment of $5 million in loans modified in a TDR during the three months ended March 31, 2020, of which $1 million were in accrual status and $4 million were in nonaccrual pending a sustained period of repayment. Short-term loan modifications made in good faith to help ease the adverse effects of COVID-19 are not categorized as TDRs in accordance with regulatory guidance. The following table provides the number of loans modified in a TDR by loan portfolio, the recorded investment and unpaid principal balance for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 ($ in Thousands) Number Recorded Investment (a) Unpaid Principal Balance (b) Number Recorded Investment (a) Unpaid Principal Balance (b) Commercial and industrial 1 $ 48 $ 48 — $ — $ — Commercial real estate — owner occupied 1 290 321 1 78 78 Commercial real estate — investor 1 570 1,740 — — — Real estate construction 1 122 122 — — — Residential mortgage 18 3,592 3,668 25 4,357 4,374 Home equity 8 277 277 13 293 312 Other consumer — — — 1 11 11 Total loans modified 30 $ 4,899 $ 6,175 40 $ 4,739 $ 4,776 (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, 2020, restructured loan modifications of commercial and industrial, and commercial real estate primarily included maturity date extensions and payment schedule modifications. Restructured loan modifications of residential mortgage and home equity 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, 2020. The following table provides the number of loans modified in a TDR during the previous twelve months which subsequently defaulted during the three months ended March 31, 2020 and 2019 and the recorded investment in these restructured loans as of March 31, 2020 and 2019: Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 ($ in Thousands) Number of Recorded Number of Recorded Residential mortgage 3 $ 388 5 $ 613 Home equity 2 88 7 177 Total loans modified 5 $ 476 12 $ 790 All loans modified in a TDR 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 credit losses on loans. The Corporation analyzes loans for classification as a probable TDR. This analysis includes identifying customers that are showing possible liquidity issues in the near term without reasonable access to alternative sources of capital. At adoption of ASU 2016-13 on January 1, 2020, the Corporation had $114 million in loans meeting this classification compared to $138 million at March 31, 2020. Of the loans classified as probable TDRs at March 31, 2020, $112 million are within the oil and gas portfolio, while one loan with a balance of $27 million, is in general commercial and business lending. Allowance for Credit Losses on Loans The ACLL is comprised of the allowance for loan losses and the allowance for unfunded commitments. The level of the ACLL represents management’s estimate of an amount appropriate to provide for expected lifetime credit losses in the loan portfolio at the balance sheet date. A main factor in the determination of the ACLL is the economic forecast. The Corporation utilized the Moody's baseline forecast, updated at the end of March 2020, in the allowance model. The forecast is applied over a 1 year reasonable and supportable period with immediate reversion to historical long run losses. The Corporation changed the reversion methodology applied from straight-line over 1 year to immediate reversion due to the uncertainty within the economic forecasts due to COVID-19. The allowance for unfunded commitments is maintained at a level believed by management to be sufficient to absorb expected lifetime losses related to unfunded credit facilities (including unfunded loan commitments and letters of credit). See Note 12 for additional information on the change in the allowance for unfunded commitments. The following table presents a summary of the changes in the ACLL by portfolio segment for the three months ended March 31, 2020: ($ in Thousands) Dec. 31, 2019 Cumulative effect of ASU 2016-13 adoption (CECL) Jan. 1, 2020 Charge offs Recoveries Net Charge offs Allowance for PCD loans for bank acquisition Provision recorded at acquisition Provision for loan losses March 31, 2020 ACLL / Loans Allowance for loan losses Commercial and industrial $ 91,133 $ 52,919 $ 144,052 $ (16,336) $ 1,288 $ (15,049) $ 293 $ 408 $ 44,284 $ 173,988 Commercial real estate — owner occupied 10,284 (1,851) 8,433 — — — 890 255 734 10,313 Commercial and business lending 101,417 51,068 152,485 (16,336) 1,288 (15,048) 1,183 663 45,018 184,301 Commercial real estate — investor 40,514 2,041 42,555 — — — 753 472 (1,664) 42,115 Real estate construction 24,915 7,467 32,382 (7) 19 11 435 492 (2,573) 30,746 Commercial real estate lending 65,428 9,508 74,937 (7) 19 11 1,188 964 (4,237) 72,861 Total commercial 166,846 60,576 227,422 (16,343) 1,307 (15,037) 2,371 1,627 40,781 257,162 Residential mortgage 16,960 33,215 50,175 (1,003) 91 (912) 651 403 (6,370) 43,947 Home equity 10,926 11,649 22,575 (526) 598 71 422 374 (1,135) 22,308 Other consumer 6,639 7,016 13,655 (1,434) 272 (1,162) 61 140 1,681 14,376 Total consumer 34,525 51,880 86,405 (2,963) 961 (2,003) 1,134 917 (5,824) 80,631 Total loans $ 201,371 $ 112,457 $ 313,828 $ (19,308) $ 2,268 $ (17,040) $ 3,504 $ 2,543 $ 34,957 $ 337,793 Allowance for unfunded commitments Commercial and industrial $ 12,276 $ (3,998) $ 8,278 $ — $ — $ — $ — $ 61 $ 6,461 $ 14,800 Commercial real estate — owner occupied 127 — 127 — — — — 4 109 240 Commercial and business lending 12,403 (3,998) 8,405 — — — — 65 6,570 15,040 Commercial real estate — investor 530 246 776 — — — — 2 (347) 431 Real estate construction 7,532 18,347 25,879 — — — — 45 9,018 34,942 Commercial real estate lending 8,062 18,593 26,655 — — — — 47 8,671 35,373 Total commercial 20,465 14,595 35,060 — — — — 112 15,241 50,413 Home equity 1,038 2,591 3,629 — — — — 66 241 3,936 Other consumer 405 1,504 1,909 — — — — — 17 1,926 Total consumer 1,443 4,095 5,538 — — — — 66 258 5,862 Total loans $ 21,907 $ 18,690 $ 40,597 $ — $ — $ — $ — $ 179 $ 15,500 $ 56,276 Allowance for credit losses on loans Commercial and industrial $ 103,409 $ 48,921 $ 152,330 $ (16,336) $ 1,288 $ (15,049) $ 293 $ 469 $ 50,745 $ 188,788 2.22 % Commercial real estate — owner occupied 10,411 (1,851) 8,560 — — — 890 259 843 10,553 1.12 % Commercial and business lending 113,820 47,070 160,890 (16,336) 1,288 (15,048) 1,183 728 51,588 199,342 2.11 % Commercial real estate — investor 41,044 2,287 43,331 — — — 753 474 (2,011) 42,546 1.05 % Real estate construction 32,447 25,814 58,261 (7) 19 11 435 537 6,445 65,688 4.25 % Commercial real estate lending 73,490 28,101 101,591 (7) 19 11 1,188 1,011 4,434 108,235 1.94 % Total commercial 187,311 75,171 262,482 (16,343) 1,307 (15,037) 2,371 1,739 56,022 307,577 2.04 % Residential mortgage 16,960 33,215 50,175 (1,003) 91 (912) 651 403 (6,370) 43,947 0.54 % Home equity 11,964 14,240 26,204 (526) 598 71 422 440 (894) 26,244 3.11 % Other consumer 7,044 8,520 15,564 (1,434) 272 (1,162) 61 140 1,698 16,302 4.70 % Total consumer 35,968 55,975 91,943 (2,963) 961 (2,003) 1,134 983 (5,566) 86,493 0.93 % Total loans $ 223,278 $ 131,147 $ 354,425 $ (19,308) $ 2,268 $ (17,040) $ 3,504 $ 2,722 $ 50,457 $ 394,069 1.62 % The following table presents details of the allowance for loan losses segregated by loan portfolio segment as of December 31, 2019, calculated in accordance with prior incurred loss methodology applicable under ASC Topic 310: ($ in Thousands) December 31, 2018 Charge offs Recoveries Net Charge offs Provision for loan losses December 31, 2019 Allowance for loan losses Commercial and industrial $ 108,835 $ (63,315) $ 11,875 $ (51,441) $ 33,738 $ 91,133 Commercial real estate — owner occupied 9,255 (222) 2,795 2,573 (1,543) 10,284 Commercial and business lending 118,090 (63,537) 14,670 (48,868) 32,195 101,417 Commercial real estate — investor 40,844 — 31 31 (361) 40,514 Real estate construction 28,240 (60) 302 243 (3,568) 24,915 Commercial real estate lending 69,084 (60) 333 274 (3,929) 65,429 Total commercial 187,174 (63,597) 15,003 (48,594) 28,266 166,846 Residential mortgage 25,595 (3,322) 692 (2,630) (6,005) 16,960 Home equity 19,266 (1,846) 2,599 753 (9,093) 10,926 Other consumer 5,988 (5,548) 868 (4,681) 5,332 6,639 Total consumer 50,849 (10,716) 4,159 (6,558) (9,766) 34,525 Total loans $ 238,023 $ (74,313) $ 19,161 $ (55,152) $ 18,500 $ 201,371 A summary of the individually and collectively evaluated loans by portfolio segment at December 31, 2019, was as follows: Allowance for loan losses Loans ($ in Thousands) Individually evaluated for impairment Collectively evaluated for impairment Total allowance for loan losses Individually evaluated for impairment Collectively evaluated for impairment Acquired and accounted for under ASC 310-30 (a) Total loans Commercial and industrial $ 12,010 $ 79,123 $ 91,133 $ 62,035 $ 7,292,217 $ 342 $ 7,354,594 Commercial real estate — owner occupied 19 10,265 10,284 1,676 909,010 579 911,265 Commercial and business lending 12,029 89,388 101,417 63,711 8,201,227 921 8,265,858 Commercial real estate — investor 15 40,498 40,514 4,633 3,789,755 129 3,794,517 Real estate construction 67 24,848 24,915 477 1,420,416 7 1,420,900 Commercial real estate lending 82 65,346 65,429 5,110 5,210,171 136 5,215,417 Total commercial 12,111 154,734 166,846 68,821 13,411,398 1,057 13,481,275 Residential mortgage 2,740 14,220 16,960 35,554 8,100,958 469 8,136,980 Home equity 1,190 9,737 10,926 4,422 847,577 26 852,025 Other consumer 125 6,514 6,639 1,247 349,912 — 351,159 Total consumer 4,055 30,471 34,525 41,223 9,298,447 495 9,340,164 Total loans $ 16,165 $ 185,205 $ 201,371 $ 110,043 $ 22,709,845 $ 1,552 $ 22,821,440 (a) Loans acquired in business combinations and accounted for under ASC Subtopic 310-30 "Receivables — Loans and Debt Securities Acquired with Deteriorated Credit Quality." Loans Acquired in Acquisitions Loans acquired in a business combination after January 1, 2020 are recorded in accordance with ASC Topic 326. See Note 2 Acquisitions for more information on loans acquired in a business combination. After January 1, 2020, acquired loans were segregated into two types: • PCD loans are loans demonstrating more than insignificant credit deterioration since origination and are accounted for with ASC 326-30. Under this guidance, the credit mark on acquired assets gross up the allowance for loan losses and the amortized cost of the loan. • Non-PCD loans are accounted for in accordance with ASC Topic 310-20 "Nonrefundable Fees and Other Costs" as these loans do not show evidence of credit deterioration since origination. Loans acquired in a business combination prior to January 1, 2020 were recorded at estimated fair value on their purchase date without a carryover of the related allowance for loan losses. Prior to January 1, 2020, acquired loans were segregated into two types: • Performing loans were 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 were accounted for in accordance with ASC Topic 310-30 as they displayed significant credit deterioration since origination. |