Loans | Loans The period end loan composition was as follows: ($ in Thousands) September 30, 2020 December 31, 2019 PPP $ 1,022,217 $ — Commercial and industrial 7,933,404 7,354,594 Commercial real estate — owner occupied 904,997 911,265 Commercial and business lending 9,860,618 8,265,858 Commercial real estate — investor 4,320,926 3,794,517 Real estate construction 1,859,609 1,420,900 Commercial real estate lending 6,180,536 5,215,417 Total commercial 16,041,154 13,481,275 Residential mortgage 7,885,523 8,136,980 Home equity 761,593 852,025 Other consumer 315,483 351,159 Total consumer 8,962,599 9,340,164 Total loans $ 25,003,753 $ 22,821,440 Accrued interest receivable on loans totaled $67 million at September 30, 2020, and $63 million at December 31, 2019 and is 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 $1 million and $2 million for the three and nine months ended September 30, 2020, respectively. The following table presents commercial and consumer loans by credit quality indicator by vintage year at September 30, 2020: Term Loans Amortized Cost Basis by Origination Year (a) ($ in Thousands) Rev Loans Converted to Term (a) Rev Loans Amortized Cost Basis YTD 2020 2019 2018 2017 2016 Prior Total PPP: (b) Risk rating: Pass $ — $ — $ 995,646 $ — $ — $ — $ — $ — $ 995,646 Special Mention — — 7,409 — — — — — 7,409 Potential Problem — — 19,161 — — — — — 19,161 PPP $ — $ — $ 1,022,217 $ — $ — $ — $ — $ — $ 1,022,217 Commercial and industrial: Risk rating: Pass $ 4,904 $ 2,031,744 $ 1,102,032 $ 1,581,019 $ 1,430,036 $ 545,931 $ 326,862 $ 518,950 $ 7,536,572 Special Mention — 9,424 13,594 61,594 48,357 22 13,783 — 146,774 Potential Problem (c) 3,089 10,580 21,483 18,101 81,580 2,369 8,031 2,015 144,159 Nonaccrual (d) 568 200 1,571 6,761 15,728 44,933 29,193 7,513 105,899 Commercial and industrial $ 8,562 $ 2,051,948 $ 1,138,680 $ 1,667,475 $ 1,575,701 $ 593,255 $ 377,868 $ 528,478 $ 7,933,404 Commercial real estate - owner occupied: Risk rating: Pass $ 1,150 $ 18,912 $ 120,161 $ 236,928 $ 137,669 $ 106,305 $ 155,023 $ 90,750 $ 865,748 Special Mention — — 2,420 2,410 1,106 556 2,671 5,236 14,398 Potential Problem — 2,593 678 7,804 1,354 1,135 5,127 4,117 22,808 Nonaccrual — — 168 — 371 326 — 1,177 2,043 Commercial real estate - owner occupied $ 1,150 $ 21,505 $ 123,426 $ 247,142 $ 140,499 $ 108,323 $ 162,821 $ 101,280 $ 904,997 Commercial and business lending: Risk rating: Pass $ 6,054 $ 2,050,656 $ 2,217,839 $ 1,817,947 $ 1,567,704 $ 652,236 $ 481,885 $ 609,700 $ 9,397,966 Special Mention — 9,424 23,423 64,004 49,462 578 16,454 5,236 168,582 Potential Problem (c) 3,089 13,173 41,323 25,905 82,934 3,504 13,158 6,132 186,129 Nonaccrual (d) 568 200 1,739 6,761 16,099 45,259 29,193 8,690 107,941 Commercial and business lending $ 9,712 $ 2,073,453 $ 2,284,323 $ 1,914,617 $ 1,716,200 $ 701,578 $ 540,690 $ 629,759 $ 9,860,618 Commercial real estate - investor: Risk rating: Pass $ 84 $ 189,623 $ 1,082,792 $ 1,030,772 $ 781,592 $ 321,341 $ 350,582 $ 245,290 $ 4,001,992 Special Mention — — 57,701 53,145 12,408 13,439 29,818 1,506 168,018 Potential Problem — 854 16,032 18,026 11,424 14,733 265 39,124 100,459 Nonaccrual 19,964 — 1,018 48,691 446 — — 304 50,458 Commercial real estate - investor $ 20,049 $ 190,477 $ 1,157,543 $ 1,150,634 $ 805,870 $ 349,513 $ 380,665 $ 286,224 $ 4,320,926 Real estate construction: Risk rating: Pass $ 1,151 $ 45,347 $ 545,859 $ 772,861 $ 376,567 $ 69,025 $ 2,588 $ 19,928 $ 1,832,176 Special Mention — — 411 — 24,437 — — 16 24,863 Potential Problem — — 127 — 355 1,557 95 45 2,178 Nonaccrual — — 12 — — — — 380 392 Real estate construction $ 1,151 $ 45,347 $ 546,409 $ 772,861 $ 401,358 $ 70,582 $ 2,683 $ 20,369 $ 1,859,609 Commercial real estate lending: Risk rating: Pass $ 1,236 $ 234,970 $ 1,628,651 $ 1,803,633 $ 1,158,158 $ 390,366 $ 353,170 $ 265,219 $ 5,834,167 Special Mention — — 58,112 53,145 36,845 13,439 29,818 1,522 192,881 Potential Problem — 854 16,159 18,026 11,779 16,289 360 39,169 102,637 Nonaccrual 19,964 — 1,030 48,691 446 — — 684 50,850 Commercial real estate lending $ 21,200 $ 235,823 $ 1,703,952 $ 1,923,495 $ 1,207,229 $ 420,095 $ 383,348 $ 306,593 $ 6,180,536 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 Total commercial: Risk rating: Pass $ 7,290 $ 2,285,626 $ 3,846,490 $ 3,621,580 $ 2,725,863 $ 1,042,603 $ 835,055 $ 874,918 $ 15,232,134 Special Mention — 9,424 81,534 117,150 86,307 14,017 46,272 6,758 361,463 Potential Problem 3,089 14,027 57,482 43,931 94,713 19,793 13,518 45,301 288,766 Nonaccrual 20,533 200 2,769 55,451 16,546 45,259 29,193 9,374 158,792 Total commercial $ 30,912 $ 2,309,277 $ 3,988,275 $ 3,838,112 $ 2,923,428 $ 1,121,672 $ 924,038 $ 936,352 $ 16,041,154 Residential mortgage: Risk rating: Pass $ — $ — $ 1,585,703 $ 1,608,973 $ 685,384 $ 1,119,248 $ 1,025,378 $ 1,794,997 $ 7,819,683 Special Mention — — 684 — 37 — — 392 1,113 Potential Problem — — 695 663 137 — 206 694 2,396 Nonaccrual — — 2,292 3,282 5,624 8,243 10,334 32,557 62,331 Residential mortgage $ — $ — $ 1,589,374 $ 1,612,918 $ 691,182 $ 1,127,490 $ 1,035,918 $ 1,828,640 $ 7,885,523 Home equity: Risk rating: Pass $ 10,470 $ 610,660 $ 2,041 $ 14,679 $ 18,022 $ 13,415 $ 6,700 $ 83,761 $ 749,277 Special Mention 107 39 — — — — — 369 408 Potential Problem — 1,632 — — — — — — 1,632 Nonaccrual 972 606 421 361 523 353 230 7,782 10,277 Home equity $ 11,549 $ 612,936 $ 2,462 $ 15,040 $ 18,545 $ 13,768 $ 6,930 $ 91,912 $ 761,593 Other consumer: Risk rating: Pass $ 27 $ 164,453 $ 7,298 $ 11,505 $ 4,438 $ 2,259 $ 1,475 $ 123,487 $ 314,916 Special Mention 5 369 — — — — 3 5 377 Nonaccrual 2 23 1 63 5 6 74 19 190 Other consumer $ 34 $ 164,845 $ 7,298 $ 11,568 $ 4,443 $ 2,265 $ 1,551 $ 123,511 $ 315,483 Total consumer: Risk rating: Pass $ 10,497 $ 775,112 $ 1,595,042 $ 1,635,157 $ 707,843 $ 1,134,922 $ 1,033,553 $ 2,002,246 $ 8,883,875 Special Mention 112 408 684 — 37 — 3 766 1,898 Potential Problem — 1,632 695 663 137 — 206 694 4,028 Nonaccrual 974 629 2,713 3,706 6,153 8,602 10,638 40,357 72,798 Total consumer $ 11,583 $ 777,781 $ 1,599,134 $ 1,639,527 $ 714,171 $ 1,143,524 $ 1,044,399 $ 2,044,063 $ 8,962,599 Total loans: Risk rating: Pass $ 17,787 $ 3,060,738 $ 5,441,532 $ 5,256,737 $ 3,433,706 $ 2,177,524 $ 1,868,608 $ 2,877,164 $ 24,116,009 Special Mention 112 9,832 82,219 117,150 86,344 14,017 46,275 7,524 363,361 Potential Problem 3,089 15,659 58,177 44,595 94,850 19,793 13,724 45,996 292,794 Nonaccrual 21,507 829 5,482 59,157 22,698 53,861 39,830 49,731 231,590 Total loans $ 42,495 $ 3,087,058 $ 5,587,409 $ 5,477,639 $ 3,637,599 $ 2,265,196 $ 1,968,437 $ 2,980,415 $ 25,003,753 (b) The Corporation’s policy is to assign risk ratings at the borrower level. PPP loans are 100% guaranteed by the SBA and therefore the Corporation considers these loans to have a risk profile similar to pass rated loans. (c) Includes $60 million of oil and gas related loans (d) Includes $8 million of oil and gas related loans The following table presents commercial and consumer loans by credit quality indicator at December 31, 2019 : ($ 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 September 30, 2020: Accruing ($ in Thousands) Current (a) 30-59 Days 60-89 Days 90 Days or Nonaccrual (b)(c) Total PPP $ 1,022,217 $ — $ — $ — $ — $ 1,022,217 Commercial and industrial 7,826,445 115 183 763 105,899 7,933,404 Commercial real estate - owner occupied 902,085 870 — — 2,043 904,997 Commercial and business lending 9,750,747 984 183 763 107,941 9,860,618 Commercial real estate - investor 4,270,059 409 — — 50,458 4,320,926 Real estate construction 1,859,106 95 16 — 392 1,859,609 Commercial real estate lending 6,129,165 504 16 — 50,850 6,180,536 Total commercial 15,879,912 1,488 199 763 158,792 16,041,154 Residential mortgage 7,816,986 5,793 392 22 62,331 7,885,523 Home equity 745,563 5,201 408 145 10,277 761,593 Other consumer 313,017 949 402 925 190 315,483 Total consumer 8,875,566 11,943 1,201 1,091 72,798 8,962,599 Total loans $ 24,755,478 $ 13,431 $ 1,400 $ 1,854 $ 231,590 $ 25,003,753 (a) Any deferred loans related to COVID-19 are considered current in accordance with Section 4013 of the CARES Act. (b) Of the total nonaccrual loans, $186 million, or 80%, were current with respect to payment at September 30, 2020. (c) No interest income was recognized on nonaccrual loans for both the three and nine months ended September 30, 2020. In addition, there were $40 million of nonaccrual loans for which there was no related ACLL at September 30, 2020. The following table presents loans by past due status at December 31, 2019: Accruing ($ 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 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, 2020 December 31, 2019 ($ in Thousands) Performing Nonaccrual Restructured Loans (a) Performing Nonaccrual Restructured Loans (a) Commercial and industrial $ 16,002 $ 7,827 $ 16,678 $ 7,376 Commercial real estate — owner occupied 1,389 168 1,676 — Commercial real estate — investor 635 — 293 — Real estate construction 382 98 298 179 Residential mortgage 5,378 14,535 3,955 13,035 Home equity 1,889 1,216 1,896 1,904 Other consumer 1,218 — 1,246 1 Total restructured loans (b) $ 26,891 $ 23,844 $ 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 Section 4013 of the CARES Act. The Corporation had a recorded investment of $9 million in loans modified in a TDR during the nine months ended September 30, 2020, of which $3 million were in accrual status and $6 million were in nonaccrual pending a sustained period of repayment. Short-term loan modifications made in good faith to help ease the adverse effects of COVID-19 are not categorized as TDRs in accordance with regulatory guidance. The following table provides the number of loans modified in a TDR by loan portfolio, the recorded investment, and unpaid principal balance for the nine months ended September 30, 2020 and 2019: Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 ($ in Thousands) Number Recorded Investment (a) Unpaid Principal Balance (b) Number Recorded Investment (a) Unpaid Principal Balance (b) Commercial and industrial 3 $ 1,250 $ 1,324 1 $ 185 $ 185 Commercial real estate — owner occupied 2 453 751 — — — Commercial real estate — investor 1 530 530 — — — Real estate construction 1 102 102 — — — Residential mortgage 32 5,789 5,870 47 6,785 6,863 Home equity 18 676 702 18 520 520 Other consumer — — — 1 9 9 Total loans modified 57 $ 8,800 $ 9,280 67 $ 7,500 $ 7,577 (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, 2020, restructured loan modifications of commercial loans primarily included maturity date extensions and payment schedule modifications. Restructured loan modifications of consumer 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, 2020. The following table provides the number of loans modified in a TDR during the previous twelve months which subsequently defaulted during the nine months ended September 30, 2020 and 2019 and the recorded investment in these restructured loans as of September 30, 2020 and 2019: Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 ($ in Thousands) Number of Recorded Number of Recorded Commercial real estate — investor — $ — 1 $ 461 Residential mortgage 5 1,036 27 4,528 Home equity 4 208 19 538 Total loans modified 9 $ 1,244 47 $ 5,526 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 ACLL. 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 $73 million at September 30, 2020. Of the loans classified as probable TDRs at September 30, 2020, all of them are within the oil and gas portfolio. Allowance for Credit Losses on Loans The ACLL is comprised of the allowance for loan losses and the allowance for unfunded commitments. The level of the ACLL represents management’s estimate of an amount appropriate to provide for expected lifetime credit losses in the loan portfolio at the balance sheet date. The expected lifetime credit losses are the product of multiplying the Corporation's estimates of probability of default, loss given default, and the individual loan level exposure at default on an undiscounted basis. A main factor in the determination of the ACLL is the economic forecast. The Corporation utilized the Moody's baseline forecast, updated during September 2020, in the allowance model. The forecast is applied over a 1 year reasonable and supportable period with immediate reversion to historical losses. The Corporation changed the reversion assumptions during the first quarter of 2020 from straight-line over 1 year to immediate reversion due to the uncertainty within the economic forecasts due to COVID-19. The allowance for unfunded commitments is maintained at a level believed by management to be sufficient to absorb expected lifetime losses related to unfunded credit facilities (including unfunded loan commitments and letters of credit). See Note 12 for additional information on the change in the allowance for unfunded commitments. The following table presents a summary of the changes in the ACLL by portfolio segment for the nine months ended September 30, 2020: ($ in Thousands) Dec. 31, 2019 Cumulative effect of ASU 2016-13 adoption (CECL) Jan. 1, 2020 Charge offs Recoveries Net Charge offs Gross up of allowance for PCD loans at acquisition Provision recorded at acquisition Provision for loan losses Sept. 30, 2020 ACLL / Loans Allowance for loan losses PPP $ — $ — $ — $ — $ — $ — $ — $ — $ 968 $ 968 Commercial and industrial 91,133 52,919 144,052 (70,011) 5,210 (64,802) 293 408 87,840 167,793 Commercial real estate — owner occupied 10,284 (1,851) 8,433 (419) 4 (415) 890 255 2,027 11,190 Commercial and business lending 101,417 51,068 152,485 (70,430) 5,213 (65,216) 1,183 663 90,836 179,951 Commercial real estate — investor 40,514 2,041 42,555 (4,224) 643 (3,581) 753 472 50,004 90,201 Real estate construction 24,915 7,467 32,382 (42) 30 (12) 435 492 3,823 37,119 Commercial real estate lending 65,429 9,508 74,937 (4,266) 673 (3,593) 1,188 964 53,827 127,321 Total commercial 166,846 60,576 227,422 (74,696) 5,887 (68,810) 2,371 1,627 144,662 307,272 Residential mortgage 16,960 33,215 50,175 (1,615) 409 (1,206) 651 403 (6,382) 43,640 Home equity 10,926 11,649 22,575 (1,551) 1,476 (76) 422 374 (3,935) 19,361 Other consumer 6,639 7,016 13,655 (3,875) 845 (3,030) 61 140 3,612 14,438 Total consumer 34,525 51,880 86,405 (7,042) 2,730 (4,311) 1,134 917 (6,705) 77,440 Total loans $ 201,371 $ 112,457 $ 313,828 $ (81,738) $ 8,617 $ (73,121) $ 3,504 $ 2,543 $ 137,957 $ 384,711 Allowance for unfunded commitments Commercial and industrial 12,276 (3,998) 8,278 — — — — 61 12,851 21,190 Commercial real estate — owner occupied 127 — 127 — — — — 4 434 564 Commercial and business lending 12,403 (3,998) 8,405 — — — — 65 13,285 21,754 Commercial real estate — investor 530 246 776 — — — — 2 (58) 719 Real estate construction 7,532 18,347 25,879 — — — 45 2,703 28,626 Commercial real estate lending 8,062 18,593 26,655 — — — — 47 2,644 29,345 Total commercial 20,465 14,595 35,060 — — — — 112 15,929 51,100 Home equity 1,038 2,591 3,629 — — — — 66 (106) 3,588 Other consumer 405 1,504 1,909 — — — — — 676 2,585 Total consumer 1,443 4,095 5,538 — — — — 66 571 6,176 Total loans $ 21,907 $ 18,690 $ 40,597 $ — $ — $ — $ — $ 179 $ 16,500 $ 57,276 Allowance for credit losses on loans PPP $ — $ — $ — $ — $ — $ — $ — $ — $ 968 $ 968 0.09 % Commercial and industrial 103,409 48,921 152,330 (70,011) 5,210 (64,802) 293 469 100,691 188,983 2.38 % Commercial real estate — owner occupied 10,411 (1,851) 8,560 (419) 4 (415) 890 259 2,461 11,755 1.30 % Commercial and business lending 113,820 47,070 160,890 (70,430) 5,213 (65,216) 1,183 728 104,120 201,706 2.05 % Commercial real estate — investor 41,044 2,287 43,331 (4,224) 643 (3,581) 753 474 49,945 90,921 2.10 % Real estate construction 32,447 25,814 58,261 (42) 30 (12) 435 537 6,525 65,745 3.54 % Commercial real estate lending 73,490 28,101 101,591 (4,266) 673 (3,593) 1,188 1,011 56,471 156,667 2.53 % Total commercial 187,311 75,171 262,482 (74,696) 5,887 (68,810) 2,371 1,739 160,591 358,372 2.23 % Residential mortgage 16,960 33,215 50,175 (1,615) 409 (1,206) 651 403 (6,380) 43,643 0.55 % Home equity 11,964 14,240 26,204 (1,551) 1,476 (76) 422 440 (4,041) 22,949 3.01 % Other consumer 7,044 8,520 15,564 (3,875) 845 (3,030) 61 140 4,287 17,023 5.40 % Total consumer 35,968 55,975 91,943 (7,042) 2,730 (4,311) 1,134 983 (6,134) 83,616 0.93 % Total loans $ 223,278 $ 131,147 $ 354,425 $ (81,738) $ 8,617 $ (73,121) $ 3,504 $ 2,722 $ 154,457 $ 441,988 1.77 % 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 and Dispositions 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 grosses 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. |