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Loans and Allowance for Credit Losses (Tables)
 3 Months Ended
Mar. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]
Loans and Allowance for Credit Losses

Loans, Net of Unearned Income
Loans, net of unearned income are summarized as follows:
 
March 31, 2014
 
December 31, 2013
 
(in thousands)
Real-estate - commercial mortgage
$
5,137,454

 
$
5,101,922

Commercial - industrial, financial and agricultural
3,574,130

 
3,628,420

Real-estate - home equity
1,740,496

 
1,764,197

Real-estate - residential mortgage
1,331,465

 
1,337,380

Real-estate - construction
584,217

 
573,672

Consumer
270,021

 
283,124

Leasing and other
103,192

 
99,256

Overdrafts
3,034

 
4,045

Loans, gross of unearned income
12,744,009

 
12,792,016

Unearned income
(10,217
)
 
(9,796
)
Loans, net of unearned income
$
12,733,792

 
$
12,782,220



Allowance for Credit Losses
The allowance for credit losses consists of the allowance for loan losses and the reserve for unfunded lending commitments. The allowance for loan losses represents management’s estimate of incurred losses in the loan portfolio as of the balance sheet date and is recorded as a reduction to loans. The reserve for unfunded lending commitments represents management’s estimate of incurred losses in its unfunded loan commitments and is recorded in other liabilities on the consolidated balance sheet. The allowance for credit losses is increased by charges to expense, through the provision for credit losses, and decreased by charge-offs, net of recoveries.
The Corporation’s allowance for credit losses includes: (1) specific allowances allocated to loans evaluated for impairment under the Financial Accounting Standards Board’s (FASB) Accounting Standards Codification (ASC) Section 310-10-35; and (2) allowances calculated for pools of loans measured for impairment under FASB ASC Subtopic 450-20.
The Corporation segments its loan portfolio by general loan type, or "portfolio segments," as presented in the table under the heading, "Loans, Net of Unearned Income," above. Certain portfolio segments are further disaggregated and evaluated collectively for impairment based on "class segments," which are largely based on the type of collateral underlying each loan. For commercial loans, class segments include loans secured by collateral and unsecured loans. Construction loan class segments include loans secured by commercial real estate, loans to commercial borrowers secured by residential real estate and loans to individuals secured by residential real estate. Consumer loan class segments include direct consumer installment loans and indirect automobile loans.
The following table presents the components of the allowance for credit losses:
 
March 31,
2014
 
December 31,
2013
 
(in thousands)
Allowance for loan losses
$
197,089

 
$
202,780

Reserve for unfunded lending commitments
1,917

 
2,137

Allowance for credit losses
$
199,006

 
$
204,917


The following table presents the activity in the allowance for credit losses:
 
Three months ended March 31
 
2014
 
2013
 
(in thousands)
Balance at beginning of period
$
204,917

 
$
225,439

Loans charged off
(10,268
)
 
(22,106
)
Recoveries of loans previously charged off
1,857

 
3,194

Net loans charged off
(8,411
)
 
(18,912
)
Provision for credit losses
2,500

 
15,000

Balance at end of period
$
199,006

 
$
221,527


The following table presents the activity in the allowance for loan losses by portfolio segment:
 
Real Estate -
Commercial
Mortgage
 
Commercial -
Industrial,
Financial and
Agricultural
 
Real Estate -
Home
Equity
 
Real Estate -
Residential
Mortgage
 
Real Estate -
Construction
 
Consumer
 
Leasing
and other
and
overdrafts
 
Unallocated
 
Total
 
(in thousands)
Three months ended March 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2013
$
55,659

 
$
50,330

 
$
28,222

 
$
33,082

 
$
12,649

 
$
3,260

 
$
3,370

 
$
16,208

 
$
202,780

Loans charged off
(1,386
)
 
(5,125
)
 
(1,651
)
 
(846
)
 
(214
)
 
(751
)
 
(295
)
 
—

 
(10,268
)
Recoveries of loans previously charged off
44

 
744

 
356

 
116

 
224

 
209

 
164

 
—

 
1,857

Net loans charged off
(1,342
)
 
(4,381
)
 
(1,295
)
 
(730
)
 
10

 
(542
)
 
(131
)
 
—

 
(8,411
)
Provision for loan losses (1)
(560
)
 
4,614

 
5,533

 
977

 
(2,817
)
 
606

 
(1,228
)
 
(4,405
)
 
2,720

Balance at March 31, 2014
$
53,757

 
$
50,563

 
$
32,460

 
$
33,329

 
$
9,842

 
$
3,324

 
$
2,011

 
$
11,803

 
$
197,089

Three months ended March 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2012
$
62,928

 
$
60,205

 
$
22,776

 
$
34,536

 
$
17,287

 
$
2,367

 
$
2,752

 
$
21,052

 
$
223,903

Loans charged off
(4,133
)
 
(9,502
)
 
(2,404
)
 
(3,050
)
 
(1,986
)
 
(550
)
 
(481
)
 
—

 
(22,106
)
Recoveries of loans previously charged off
1,064

 
379

 
331

 
81

 
671

 
506

 
162

 
—

 
3,194

Net loans charged off
(3,069
)
 
(9,123
)
 
(2,073
)
 
(2,969
)
 
(1,315
)
 
(44
)
 
(319
)
 
—

 
(18,912
)
Provision for loan losses (1)
4,126

 
5,590

 
2,998

 
1,917

 
32

 
(37
)
 
354

 
70

 
15,050

Balance at March 31, 2013
$
63,985

 
$
56,672

 
$
23,701

 
$
33,484

 
$
16,004

 
$
2,286

 
$
2,787

 
$
21,122

 
$
220,041


(1)
The provision for loan losses excluded a $220,000 decrease in the reserve for unfunded lending commitments for the three months ended March 31, 2014 and excluded a $50,000 decrease in the reserve for unfunded lending commitments for the three months ended March 31, 2013. The total provision for credit losses, comprised of allocations for both funded and unfunded loans, was $2.5 million for the three months ended March 31, 2014 and $15.0 million for the three months ended March 31, 2013.
The following table presents loans, net of unearned income and their related allowance for loan losses, by portfolio segment:
 
Real Estate -
Commercial
Mortgage
 
Commercial -
Industrial,
Financial and
Agricultural
 
Real Estate -
Home
Equity
 
Real Estate -
Residential
Mortgage
 
Real Estate -
Construction
 
Consumer
 
Leasing
and other
and
overdrafts
 
Unallocated
(1)
 
Total
 
(in thousands)
Allowance for loan losses at March 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Measured for impairment under FASB ASC Subtopic 450-20
$
37,363

 
$
36,859

 
$
22,969

 
$
11,618

 
$
7,256

 
$
3,309

 
$
2,011

 
$
11,803

 
$
133,188

Evaluated for impairment under FASB ASC Section 310-10-35
16,394

 
13,704

 
9,491

 
21,711

 
2,586

 
15

 
—

 
N/A

 
63,901

 
$
53,757

 
$
50,563

 
$
32,460

 
$
33,329

 
$
9,842

 
$
3,324

 
$
2,011

 
$
11,803

 
$
197,089

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans, net of unearned income at March 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Measured for impairment under FASB ASC Subtopic 450-20
$
5,075,556

 
$
3,528,857

 
$
1,726,342

 
$
1,279,783

 
$
555,852

 
$
270,004

 
$
96,009

 
N/A

 
$
12,532,403

Evaluated for impairment under FASB ASC Section 310-10-35
61,898

 
45,273

 
14,154

 
51,682

 
28,365

 
17

 
—

 
N/A

 
201,389

 
$
5,137,454

 
$
3,574,130

 
$
1,740,496

 
$
1,331,465

 
$
584,217

 
$
270,021

 
$
96,009

 
N/A

 
$
12,733,792

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses at March 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Measured for impairment under FASB ASC Subtopic 450-20
$
40,920

 
$
38,988

 
$
14,947

 
$
10,075

 
$
8,838

 
$
2,271

 
$
2,758

 
$
21,122

 
$
139,919

Evaluated for impairment under FASB ASC Section 310-10-35
23,065

 
17,684

 
8,754

 
23,409

 
7,166

 
15

 
29

 
N/A

 
80,122

 
$
63,985

 
$
56,672

 
$
23,701

 
$
33,484

 
$
16,004

 
$
2,286

 
$
2,787

 
$
21,122

 
$
220,041

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans, net of unearned income at March 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Measured for impairment under FASB ASC Subtopic 450-20
$
4,646,355

 
$
3,591,753

 
$
1,675,577

 
$
1,247,976

 
$
554,757

 
$
309,120

 
$
89,195

 
N/A

 
$
12,114,733

Evaluated for impairment under FASB ASC Section 310-10-35
83,575

 
66,730

 
13,869

 
55,478

 
42,840

 
18

 
45

 
N/A

 
262,555

 
$
4,729,930

 
$
3,658,483

 
$
1,689,446

 
$
1,303,454

 
$
597,597

 
$
309,138

 
$
89,240

 
N/A

 
$
12,377,288

 
(1)
The unallocated allowance, which was approximately 6% and 10% of the total allowance for credit losses as of March 31, 2014 and March 31, 2013, respectively, was, in the opinion of management, reasonable and appropriate given that the estimates used in the allocation process are inherently imprecise.
N/A – Not applicable.
In March 2013, the Corporation sold $9.9 million of non-accrual commercial mortgage, commercial and construction loans to an investor, resulting in a total increase to charge-offs of $5.2 million during the three months ended March 31, 2013, as detailed in the following table.
 
Real Estate - Commercial mortgage
 
Commercial - industrial, financial and agricultural
 
Real Estate - Construction
 
Total
 
(in thousands)
Unpaid principal balance of loans sold
$
7,690

 
$
4,730

 
$
740

 
$
13,160

Charge-offs prior to sale
(2,420
)
 
(710
)
 
(150
)
 
(3,280
)
Net recorded investment in loans sold
5,270

 
4,020

 
590

 
9,880

Proceeds from sale, net of selling expenses
2,770

 
1,730

 
140

 
4,640

Total charge-off upon sale
$
(2,500
)
 
$
(2,290
)
 
$
(450
)
 
$
(5,240
)
 
 
 
 
 
 
 
 
Existing allocation for credit losses on sold loans
$
(2,870
)
 
$
(1,960
)
 
$
(300
)
 
$
(5,130
)


Impaired Loans
A loan is considered to be impaired if it is probable that all amounts will not be collected according to the contractual terms of the loan agreement. Impaired loans consist of all loans on non-accrual status and accruing troubled debt restructurings (TDRs). An allowance for loan losses is established for an impaired loan if its carrying value exceeds its estimated fair value. Impaired loans to borrowers with total outstanding commitments greater than $1.0 million are evaluated individually for impairment. Impaired loans to borrowers with total outstanding commitments less than $1.0 million are pooled and measured for impairment collectively. All loans evaluated for impairment under FASB ASC Section 310-10-35 are measured for losses on a quarterly basis. As of March 31, 2014 and December 31, 2013, substantially all of the Corporation’s individually evaluated impaired loans with total outstanding balances greater than $1.0 million were measured based on the estimated fair value of each loan’s collateral. Collateral could be in the form of real estate, in the case of impaired commercial mortgages and construction loans, or business assets, such as accounts receivable or inventory, in the case of commercial and industrial loans. Commercial and industrial loans may also be secured by real property.
As of March 31, 2014 and 2013, approximately 79% and 73%, respectively, of impaired loans with principal balances greater than $1.0 million, whose primary collateral is real estate, were measured at estimated fair value using state certified third-party appraisals that had been updated within the preceding 12 months.
When updated certified appraisals are not obtained for loans to commercial borrowers evaluated for impairment under FASB ASC Section 310-10-35 that are secured by real estate, fair values are estimated based on the original appraisal values, as long as the original appraisal indicated a strong loan-to-value position and, in the opinion of the Corporation's internal loan evaluation staff, there has not been a significant deterioration in the collateral value since the original appraisal was performed. Original appraisals are typically used only when the estimated collateral value, as adjusted appropriately for the age of the appraisal, results in a current loan-to-value ratio that is lower than the Corporation's loan-to-value requirements for new loans, generally less than 70%.
The following table presents total impaired loans by class segment:
 
March 31, 2014
 
December 31, 2013
 
Unpaid
Principal
Balance
 
Recorded
Investment
 
Related
Allowance
 
Unpaid
Principal
Balance
 
Recorded
Investment
 
Related
Allowance
 
(in thousands)
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
Real estate - commercial mortgage
$
27,433

 
$
23,491

 
$
—

 
$
28,892

 
$
24,494

 
$
—

Commercial - secured
23,862

 
20,867

 
—

 
23,890

 
21,383

 
—

Real estate - home equity
399

 
300

 
—

 
399

 
300

 
—

Real estate - residential mortgage
317

 
317

 
—

 
—

 
—

 
—

Construction - commercial residential
26,475

 
20,705

 
—

 
18,943

 
13,740

 
—

Construction - commercial
2,992

 
1,962

 
—

 
2,996

 
1,976

 
—

 
81,478

 
67,642

 

 
75,120

 
61,893

 

With a related allowance recorded:
 
 
 

 

 

 

Real estate - commercial mortgage
47,010

 
38,407

 
16,394

 
43,282

 
35,830

 
14,444

Commercial - secured
36,309

 
23,765

 
13,232

 
34,267

 
22,324

 
13,315

Commercial - unsecured
693

 
641

 
472

 
1,113

 
1,048

 
752

Real estate - home equity
19,420

 
13,854

 
9,491

 
20,383

 
14,337

 
9,059

Real estate - residential mortgage
61,733

 
51,365

 
21,711

 
63,682

 
51,097

 
21,745

Construction - commercial residential
15,753

 
4,963

 
2,212

 
25,769

 
14,579

 
3,493

Construction - commercial
481

 
191

 
76

 
485

 
195

 
77

Construction - other
718

 
544

 
298

 
719

 
548

 
301

Consumer - direct
15

 
15

 
13

 
11

 
11

 
10

Consumer - indirect
15

 
2

 
2

 
2

 
2

 
2

 
182,147

 
133,747

 
63,901

 
189,713

 
139,971

 
63,198

Total
$
263,625

 
$
201,389

 
$
63,901

 
$
264,833

 
$
201,864

 
$
63,198


As of March 31, 2014 and December 31, 2013, there were $67.6 million and $61.9 million, respectively, of impaired loans that did not have a related allowance for loan loss. The estimated fair values of the collateral for these loans exceeded their carrying amount, or they were previously charged down to collateral values. Accordingly, no specific valuation allowance was considered to be necessary.
The following table presents average impaired loans by class segment:
 
Three months ended March 31
 
2014
 
2013
 
Average
Recorded
Investment
 
Interest
Income
Recognized (1)
 
Average
Recorded
Investment
 
Interest
Income
Recognized (1)
 
(in thousands)
With no related allowance recorded:
 
 
 
 
 
 
 
Real estate - commercial mortgage
$
23,993

 
$
86

 
$
32,140

 
$
160

Commercial - secured
21,125

 
35

 
31,413

 
34

Commercial - unsecured
—

 
—

 
66

 
—

Real estate - home equity
300

 
—

 
205

 
1

Real estate - residential mortgage
159

 
1

 
991

 
12

Construction - commercial residential
17,223

 
60

 
22,650

 
63

Construction - commercial
1,969

 
—

 
4,979

 
2

 
64,769

 
182

 
92,444

 
272

With a related allowance recorded:
 
 
 
 
 
 
 
Real estate - commercial mortgage
37,119

 
132

 
54,464

 
221

Commercial - secured
23,045

 
38

 
35,864

 
43

Commercial - unsecured
845

 
1

 
1,743

 
2

Real estate - home equity
14,096

 
20

 
13,301

 
16

Real estate - residential mortgage
51,231

 
294

 
53,797

 
339

Construction - commercial residential
9,771

 
35

 
11,496

 
42

Construction - commercial
193

 
—

 
2,758

 
3

Construction - other
546

 
—

 
533

 
1

Consumer - direct
13

 
—

 
24

 
—

Consumer - indirect
2

 
—

 
—

 
—

Leasing and other and overdrafts
—

 
—

 
28

 
—

 
136,861

 
520

 
174,008

 
667

Total
$
201,630

 
$
702

 
$
266,452

 
$
939

 
 
 
 
 
 
 
 
(1)
All impaired loans, excluding accruing TDRs, were non-accrual loans. Interest income recognized for the three months ended March 31, 2014 and 2013 represents amounts earned on accruing TDRs.

Credit Quality Indicators and Non-performing Assets
The following table presents internal credit risk ratings for commercial - secured loans, commercial - unsecured loans, commercial mortgages, construction - commercial residential loans and construction - commercial loans:
 
Pass
 
Special Mention
 
Substandard or Lower
 
Total
 
March 31, 2014
 
December 31, 2013
 
March 31, 2014
 
December 31, 2013
 
March 31, 2014
 
December 31, 2013
 
March 31, 2014
 
December 31, 2013
 
(dollars in thousands)
Real estate - commercial mortgage
$
4,833,982

 
$
4,763,987

 
$
122,929

 
$
141,013

 
$
180,543

 
$
196,922

 
$
5,137,454

 
$
5,101,922

Commercial - secured
3,109,539

 
3,167,168

 
137,176

 
111,613

 
128,326

 
125,382

 
3,375,041

 
3,404,163

Commercial -unsecured
183,734

 
209,836

 
10,369

 
11,666

 
4,986

 
2,755

 
199,089

 
224,257

Total commercial - industrial, financial and agricultural
3,293,273

 
3,377,004

 
147,545

 
123,279

 
133,312

 
128,137

 
3,574,130

 
3,628,420

Construction - commercial residential
153,495

 
146,041

 
29,556

 
31,522

 
46,490

 
57,806

 
229,541

 
235,369

Construction - commercial
274,037

 
258,441

 
2,915

 
2,932

 
6,144

 
8,124

 
283,096

 
269,497

Total construction (excluding Construction - other)
427,532

 
404,482

 
32,471

 
34,454

 
52,634

 
65,930

 
512,637

 
504,866

 
$
8,554,787

 
$
8,545,473

 
$
302,945

 
$
298,746

 
$
366,489

 
$
390,989

 
$
9,224,221

 
$
9,235,208

% of Total
92.7
%
 
92.6
%
 
3.3
%
 
3.2
%
 
4.0
%
 
4.2
%
 
100.0
%
 
100.0
%

The following is a summary of the Corporation's internal risk rating categories:
•
Pass: These loans do not currently pose undue credit risk and can range from the highest to average quality, depending on the degree of potential risk.
•
Special Mention: These loans constitute an undue and unwarranted credit risk, but not to a point of justifying a classification of substandard. Loans in this category are currently acceptable, but are nevertheless potentially weak.
•
Substandard or Lower: These loans are inadequately protected by current sound worth and paying capacity of the borrower. There exists a well-defined weakness or weaknesses that jeopardize the normal repayment of the debt.

The Corporation believes that internal risk ratings are the most relevant credit quality indicator for the class segments presented above. The migration of loans through the various internal risk rating categories is a significant component of the allowance for credit loss methodology, which bases the probability of default on this migration. Assigning risk ratings involves judgment. Risk ratings are initially assigned to loans by loan officers and are reviewed on a regular basis by credit administration staff. The Corporation's loan review officers provide a separate assessment of risk rating accuracy. Ratings may be changed based on the ongoing monitoring procedures performed by loan officers or credit administration staff, or if specific loan review activities identify a deterioration or an improvement in the loan. The risk rating process allows management to identify riskier credits in a timely manner and to allocate resources to managing troubled accounts.

The Corporation does not assign internal risk ratings to smaller balance, homogeneous loans, such as home equity, residential mortgage, consumer, leasing and other and construction loans to individuals secured by residential real estate. For these loans, the most relevant credit quality indicator is delinquency status. The migration of these loans through the various delinquency status categories is a significant component of the allowance for credit losses methodology, which bases the probability of default on this migration.

The following table presents a summary of delinquency and non-performing status for home equity, residential mortgages, construction loans to individuals and consumer, leasing and other loans by class segment:
 
Performing
 
Delinquent (1)
 
Non-performing (2)
 
Total
 
March 31, 2014
 
December 31, 2013
 
March 31, 2014
 
December 31, 2013
 
March 31, 2014
 
December 31, 2013
 
March 31, 2014
 
December 31, 2013
 
(dollars in thousands)
Real estate - home equity
$
1,711,430

 
$
1,731,185

 
$
11,978

 
$
16,029

 
$
17,088

 
$
16,983

 
$
1,740,496

 
$
1,764,197

Real estate - residential mortgage
1,281,854

 
1,282,754

 
20,306

 
23,279

 
29,305

 
31,347

 
1,331,465

 
1,337,380

Construction - other
70,096

 
68,258

 
940

 
—

 
544

 
548

 
71,580

 
68,806

Consumer - direct
116,748

 
126,666

 
3,634

 
3,586

 
2,872

 
2,391

 
123,254

 
132,643

Consumer - indirect
144,220

 
147,017

 
2,420

 
3,312

 
127

 
152

 
146,767

 
150,481

Total consumer
260,968

 
273,683

 
6,054

 
6,898

 
2,999

 
2,543

 
270,021

 
283,124

Leasing and other and overdrafts
95,141

 
92,876

 
794

 
581

 
74

 
48

 
96,009

 
93,505

 
$
3,419,489

 
$
3,448,756

 
$
40,072

 
$
46,787

 
$
50,010

 
$
51,469

 
$
3,509,571

 
$
3,547,012

% of Total
97.4
%

97.2
%

1.2
%

1.3
%

1.4
%

1.5
%

100.0
%

100.0
%

(1)
Includes all accruing loans 31 days to 89 days past due.
(2)
Includes all accruing loans 90 days or more past due and all non-accrual loans.
The following table presents non-performing assets:
 
March 31,
2014
 
December 31,
2013
 
(in thousands)
Non-accrual loans
$
133,705

 
$
133,753

Accruing loans greater than 90 days past due
21,225

 
20,524

Total non-performing loans
154,930

 
154,277

Other real estate owned (OREO)
15,300

 
15,052

Total non-performing assets
$
170,230

 
$
169,329


The following table presents TDRs, by class segment:
 
March 31,
2014
 
December 31,
2013
 
(in thousands)
Real-estate - residential mortgage
$
30,363

 
$
28,815

Real-estate - commercial mortgage
19,514

 
19,758

Construction - commercial residential
8,430

 
10,117

Commercial - secured
6,674

 
7,933

Real estate - home equity
2,606

 
1,365

Commercial - unsecured
81

 
112

Consumer - direct
15

 
11

Consumer - indirect
1

 
—

Total accruing TDRs
67,684

 
68,111

Non-accrual TDRs (1)
27,487

 
30,209

Total TDRs
$
95,171

 
$
98,320

 
(1)
Included within non-accrual loans in the preceding table detailing non-performing assets.

As of March 31, 2014 and December 31, 2013, there were $5.2 million and $9.6 million, respectively, of commitments to lend additional funds to borrowers whose loans were modified under TDRs.

The following table presents TDRs, by class segment, as of March 31, 2014 and 2013 that were modified during the three months ended March 31, 2014 and 2013:
 
Three months ended March 31
 
2014
 
2013
 
Number of Loans
 
Recorded Investment
 
Number of Loans
 
Recorded Investment
 
(dollars in thousands)
Real estate - commercial mortgage
7
 
$
7,470

 
5
 
$
2,652

Real estate - residential mortgage
6
 
706

 
28
 
3,966

Construction - commercial residential
1
 
548

 
2
 
628

Real estate - home equity
10
 
529

 
17
 
1,180

Consumer - direct
4
 
4

 
—
 
—

Consumer - indirect
3
 
1

 
—
 
—

Commercial - secured
—
 
—

 
5
 
457

Commercial - unsecured
—
 
—

 
1
 
15

 
31
 
$
9,258

 
58
 
$
8,898


The following table presents TDRs, by class segment, as of March 31, 2014 and 2013 that were modified within the previous 12 months and had a post-modification payment default during the three months ended March 31, 2014 and 2013. The Corporation defines a payment default as a single missed payment.
 
Three months ended March 31
 
2014
 
2013
 
Number of Loans
 
Recorded Investment
 
Number of Loans
 
Recorded Investment
 
(dollars in thousands)
Real estate - residential mortgage
12
 
$
2,522

 
31
 
$
5,849

Real estate - home equity
14
 
1,432

 
20
 
1,233

Construction - commercial residential
1
 
619

 
4
 
1,308

Real estate - commercial mortgage
3
 
126

 
12
 
6,893

Commercial - secured
1
 
11

 
6
 
708

Construction - commercial
—
 
—

 
1
 
930

 
31
 
$
4,710

 
74
 
$
16,921



The following table presents past due status and non-accrual loans by portfolio segment and class segment:
 
March 31, 2014
 
31-59
Days Past
Due
 
60-89
Days Past
Due
 
≥ 90 Days
Past Due
and
Accruing
 
Non-
accrual
 
Total ≥ 90
Days
 
Total Past
Due
 
Current
 
Total
 
(in thousands)
Real estate - commercial mortgage
$
13,290

 
$
4,633

 
$
3,492

 
$
42,384

 
$
45,876

 
$
63,799

 
$
5,073,655

 
$
5,137,454

Commercial - secured
9,370

 
1,886

 
308

 
37,958

 
38,266

 
49,522

 
3,325,519

 
3,375,041

Commercial - unsecured
304

 
275

 
4

 
560

 
564

 
1,143

 
197,946

 
199,089

Total commercial - industrial, financial and agricultural
9,674

 
2,161

 
312

 
38,518

 
38,830

 
50,665

 
3,523,465

 
3,574,130

Real estate - home equity
9,347

 
2,631

 
5,540

 
11,548

 
17,088

 
29,066

 
1,711,430

 
1,740,496

Real estate - residential mortgage
14,682

 
5,624

 
7,986

 
21,319

 
29,305

 
49,611

 
1,281,854

 
1,331,465

Construction - commercial residential
1,352

 
228

 
796

 
17,238

 
18,034

 
19,614

 
209,927

 
229,541

Construction - commercial
—

 
—

 
27

 
2,153

 
2,180

 
2,180

 
280,916

 
283,096

Construction - other
940

 
—

 
—

 
544

 
544

 
1,484

 
70,096

 
71,580

Total real estate - construction
2,292

 
228

 
823

 
19,935

 
20,758

 
23,278

 
560,939

 
584,217

Consumer - direct
2,495

 
1,139

 
2,872

 
—

 
2,872

 
6,506

 
116,748

 
123,254

Consumer - indirect
1,960

 
460

 
126

 
1

 
127

 
2,547

 
144,220

 
146,767

Total consumer
4,455

 
1,599

 
2,998

 
1

 
2,999

 
9,053

 
260,968

 
270,021

Leasing and other and overdrafts
331

 
463

 
74

 
—

 
74

 
868

 
95,141

 
96,009

 
$
54,071

 
$
17,339

 
$
21,225

 
$
133,705

 
$
154,930

 
$
226,340

 
$
12,507,452

 
$
12,733,792


 
December 31, 2013
 
31-59
Days Past
Due
 
60-89
Days Past
Due
 
≥ 90 Days
Past Due
and
Accruing
 
Non-
accrual
 
Total ≥ 90
Days
 
Total Past
Due
 
Current
 
Total
 
(in thousands)
Real estate - commercial mortgage
$
15,474

 
$
4,009

 
$
3,502

 
$
40,566

 
$
44,068

 
$
63,551

 
$
5,038,371

 
$
5,101,922

Commercial - secured
8,916

 
1,365

 
1,311

 
35,774

 
37,085

 
47,366

 
3,356,797

 
3,404,163

Commercial - unsecured
332

 
125

 
—

 
936

 
936

 
1,393

 
222,864

 
224,257

Total commercial - industrial, financial and agricultural
9,248

 
1,490

 
1,311

 
36,710

 
38,021

 
48,759

 
3,579,661

 
3,628,420

Real estate - home equity
13,555

 
2,474

 
3,711

 
13,272

 
16,983

 
33,012

 
1,731,185

 
1,764,197

Real estate - residential mortgage
16,969

 
6,310

 
9,065

 
22,282

 
31,347

 
54,626

 
1,282,754

 
1,337,380

Construction - commercial residential
—

 
645

 
346

 
18,202

 
18,548

 
19,193

 
216,176

 
235,369

Construction - commercial
14

 
—

 
—

 
2,171

 
2,171

 
2,185

 
267,312

 
269,497

Construction - other
—

 
—

 
—

 
548

 
548

 
548

 
68,258

 
68,806

Total real estate - construction
14

 
645

 
346

 
20,921

 
21,267

 
21,926

 
551,746

 
573,672

Consumer - direct
2,091

 
1,495

 
2,391

 
—

 
2,391

 
5,977

 
126,666

 
132,643

Consumer - indirect
2,864

 
448

 
150

 
2

 
152

 
3,464

 
147,017

 
150,481

Total consumer
4,955

 
1,943

 
2,541

 
2

 
2,543

 
9,441

 
273,683

 
283,124

Leasing and other and overdrafts
559

 
22

 
48

 
—

 
48

 
629

 
92,876

 
93,505

 
$
60,774

 
$
16,893

 
$
20,524

 
$
133,753

 
$
154,277

 
$
231,944

 
$
12,550,276

 
$
12,782,220

The following table presents past due status and non-accrual loans by portfolio segment and class segment:
 
March 31, 2014
 
31-59
Days Past
Due
 
60-89
Days Past
Due
 
≥ 90 Days
Past Due
and
Accruing
 
Non-
accrual
 
Total ≥ 90
Days
 
Total Past
Due
 
Current
 
Total
 
(in thousands)
Real estate - commercial mortgage
$
13,290

 
$
4,633

 
$
3,492

 
$
42,384

 
$
45,876

 
$
63,799

 
$
5,073,655

 
$
5,137,454

Commercial - secured
9,370

 
1,886

 
308

 
37,958

 
38,266

 
49,522

 
3,325,519

 
3,375,041

Commercial - unsecured
304

 
275

 
4

 
560

 
564

 
1,143

 
197,946

 
199,089

Total commercial - industrial, financial and agricultural
9,674

 
2,161

 
312

 
38,518

 
38,830

 
50,665

 
3,523,465

 
3,574,130

Real estate - home equity
9,347

 
2,631

 
5,540

 
11,548

 
17,088

 
29,066

 
1,711,430

 
1,740,496

Real estate - residential mortgage
14,682

 
5,624

 
7,986

 
21,319

 
29,305

 
49,611

 
1,281,854

 
1,331,465

Construction - commercial residential
1,352

 
228

 
796

 
17,238

 
18,034

 
19,614

 
209,927

 
229,541

Construction - commercial
—

 
—

 
27

 
2,153

 
2,180

 
2,180

 
280,916

 
283,096

Construction - other
940

 
—

 
—

 
544

 
544

 
1,484

 
70,096

 
71,580

Total real estate - construction
2,292

 
228

 
823

 
19,935

 
20,758

 
23,278

 
560,939

 
584,217

Consumer - direct
2,495

 
1,139

 
2,872

 
—

 
2,872

 
6,506

 
116,748

 
123,254

Consumer - indirect
1,960

 
460

 
126

 
1

 
127

 
2,547

 
144,220

 
146,767

Total consumer
4,455

 
1,599

 
2,998

 
1

 
2,999

 
9,053

 
260,968

 
270,021

Leasing and other and overdrafts
331

 
463

 
74

 
—

 
74

 
868

 
95,141

 
96,009

 
$
54,071

 
$
17,339

 
$
21,225

 
$
133,705

 
$
154,930

 
$
226,340

 
$
12,507,452

 
$
12,733,792
Summary of Gross Loans by Type
Loans, net of unearned income are summarized as follows:
 
March 31, 2014
 
December 31, 2013
 
(in thousands)
Real-estate - commercial mortgage
$
5,137,454

 
$
5,101,922

Commercial - industrial, financial and agricultural
3,574,130

 
3,628,420

Real-estate - home equity
1,740,496

 
1,764,197

Real-estate - residential mortgage
1,331,465

 
1,337,380

Real-estate - construction
584,217

 
573,672

Consumer
270,021

 
283,124

Leasing and other
103,192

 
99,256

Overdrafts
3,034

 
4,045

Loans, gross of unearned income
12,744,009

 
12,792,016

Unearned income
(10,217
)
 
(9,796
)
Loans, net of unearned income
$
12,733,792

 
$
12,782,220
Schedule of Allowance for Credit Losses
The following table presents the components of the allowance for credit losses:
 
March 31,
2014
 
December 31,
2013
 
(in thousands)
Allowance for loan losses
$
197,089

 
$
202,780

Reserve for unfunded lending commitments
1,917

 
2,137

Allowance for credit losses
$
199,006

 
$
204,917
Activity in the Allowance for Credit Losses
The following table presents the activity in the allowance for credit losses:
 
Three months ended March 31
 
2014
 
2013
 
(in thousands)
Balance at beginning of period
$
204,917

 
$
225,439

Loans charged off
(10,268
)
 
(22,106
)
Recoveries of loans previously charged off
1,857

 
3,194

Net loans charged off
(8,411
)
 
(18,912
)
Provision for credit losses
2,500

 
15,000

Balance at end of period
$
199,006

 
$
221,527


The following table presents the activity in the allowance for loan losses by portfolio segment:
 
Real Estate -
Commercial
Mortgage
 
Commercial -
Industrial,
Financial and
Agricultural
 
Real Estate -
Home
Equity
 
Real Estate -
Residential
Mortgage
 
Real Estate -
Construction
 
Consumer
 
Leasing
and other
and
overdrafts
 
Unallocated
 
Total
 
(in thousands)
Three months ended March 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2013
$
55,659

 
$
50,330

 
$
28,222

 
$
33,082

 
$
12,649

 
$
3,260

 
$
3,370

 
$
16,208

 
$
202,780

Loans charged off
(1,386
)
 
(5,125
)
 
(1,651
)
 
(846
)
 
(214
)
 
(751
)
 
(295
)
 
—

 
(10,268
)
Recoveries of loans previously charged off
44

 
744

 
356

 
116

 
224

 
209

 
164

 
—

 
1,857

Net loans charged off
(1,342
)
 
(4,381
)
 
(1,295
)
 
(730
)
 
10

 
(542
)
 
(131
)
 
—

 
(8,411
)
Provision for loan losses (1)
(560
)
 
4,614

 
5,533

 
977

 
(2,817
)
 
606

 
(1,228
)
 
(4,405
)
 
2,720

Balance at March 31, 2014
$
53,757

 
$
50,563

 
$
32,460

 
$
33,329

 
$
9,842

 
$
3,324

 
$
2,011

 
$
11,803

 
$
197,089

Three months ended March 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2012
$
62,928

 
$
60,205

 
$
22,776

 
$
34,536

 
$
17,287

 
$
2,367

 
$
2,752

 
$
21,052

 
$
223,903

Loans charged off
(4,133
)
 
(9,502
)
 
(2,404
)
 
(3,050
)
 
(1,986
)
 
(550
)
 
(481
)
 
—

 
(22,106
)
Recoveries of loans previously charged off
1,064

 
379

 
331

 
81

 
671

 
506

 
162

 
—

 
3,194

Net loans charged off
(3,069
)
 
(9,123
)
 
(2,073
)
 
(2,969
)
 
(1,315
)
 
(44
)
 
(319
)
 
—

 
(18,912
)
Provision for loan losses (1)
4,126

 
5,590

 
2,998

 
1,917

 
32

 
(37
)
 
354

 
70

 
15,050

Balance at March 31, 2013
$
63,985

 
$
56,672

 
$
23,701

 
$
33,484

 
$
16,004

 
$
2,286

 
$
2,787

 
$
21,122

 
$
220,041


(1)
The provision for loan losses excluded a $220,000 decrease in the reserve for unfunded lending commitments for the three months ended March 31, 2014 and excluded a $50,000 decrease in the reserve for unfunded lending commitments for the three months ended March 31, 2013. The total provision for credit losses, comprised of allocations for both funded and unfunded loans, was $2.5 million for the three months ended March 31, 2014 and $15.0 million for the three months ended March 31, 2013.
The following table presents loans, net of unearned income and their related allowance for loan losses, by portfolio segment:
 
Real Estate -
Commercial
Mortgage
 
Commercial -
Industrial,
Financial and
Agricultural
 
Real Estate -
Home
Equity
 
Real Estate -
Residential
Mortgage
 
Real Estate -
Construction
 
Consumer
 
Leasing
and other
and
overdrafts
 
Unallocated
(1)
 
Total
 
(in thousands)
Allowance for loan losses at March 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Measured for impairment under FASB ASC Subtopic 450-20
$
37,363

 
$
36,859

 
$
22,969

 
$
11,618

 
$
7,256

 
$
3,309

 
$
2,011

 
$
11,803

 
$
133,188

Evaluated for impairment under FASB ASC Section 310-10-35
16,394

 
13,704

 
9,491

 
21,711

 
2,586

 
15

 
—

 
N/A

 
63,901

 
$
53,757

 
$
50,563

 
$
32,460

 
$
33,329

 
$
9,842

 
$
3,324

 
$
2,011

 
$
11,803

 
$
197,089

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans, net of unearned income at March 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Measured for impairment under FASB ASC Subtopic 450-20
$
5,075,556

 
$
3,528,857

 
$
1,726,342

 
$
1,279,783

 
$
555,852

 
$
270,004

 
$
96,009

 
N/A

 
$
12,532,403

Evaluated for impairment under FASB ASC Section 310-10-35
61,898

 
45,273

 
14,154

 
51,682

 
28,365

 
17

 
—

 
N/A

 
201,389

 
$
5,137,454

 
$
3,574,130

 
$
1,740,496

 
$
1,331,465

 
$
584,217

 
$
270,021

 
$
96,009

 
N/A

 
$
12,733,792

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses at March 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Measured for impairment under FASB ASC Subtopic 450-20
$
40,920

 
$
38,988

 
$
14,947

 
$
10,075

 
$
8,838

 
$
2,271

 
$
2,758

 
$
21,122

 
$
139,919

Evaluated for impairment under FASB ASC Section 310-10-35
23,065

 
17,684

 
8,754

 
23,409

 
7,166

 
15

 
29

 
N/A

 
80,122

 
$
63,985

 
$
56,672

 
$
23,701

 
$
33,484

 
$
16,004

 
$
2,286

 
$
2,787

 
$
21,122

 
$
220,041

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans, net of unearned income at March 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Measured for impairment under FASB ASC Subtopic 450-20
$
4,646,355

 
$
3,591,753

 
$
1,675,577

 
$
1,247,976

 
$
554,757

 
$
309,120

 
$
89,195

 
N/A

 
$
12,114,733

Evaluated for impairment under FASB ASC Section 310-10-35
83,575

 
66,730

 
13,869

 
55,478

 
42,840

 
18

 
45

 
N/A

 
262,555

 
$
4,729,930

 
$
3,658,483

 
$
1,689,446

 
$
1,303,454

 
$
597,597

 
$
309,138

 
$
89,240

 
N/A

 
$
12,377,288

 
(1)
The unallocated allowance, which was approximately 6% and 10% of the total allowance for credit losses as of March 31, 2014 and March 31, 2013, respectively, was, in the opinion of management, reasonable and appropriate given that the estimates used in the allocation process are inherently imprecise.
N/A – Not applicable
Allowance For Credit Losses On Financing Receivables Sold
 
Real Estate - Commercial mortgage
 
Commercial - industrial, financial and agricultural
 
Real Estate - Construction
 
Total
 
(in thousands)
Unpaid principal balance of loans sold
$
7,690

 
$
4,730

 
$
740

 
$
13,160

Charge-offs prior to sale
(2,420
)
 
(710
)
 
(150
)
 
(3,280
)
Net recorded investment in loans sold
5,270

 
4,020

 
590

 
9,880

Proceeds from sale, net of selling expenses
2,770

 
1,730

 
140

 
4,640

Total charge-off upon sale
$
(2,500
)
 
$
(2,290
)
 
$
(450
)
 
$
(5,240
)
 
 
 
 
 
 
 
 
Existing allocation for credit losses on sold loans
$
(2,870
)
 
$
(1,960
)
 
$
(300
)
 
$
(5,130
)
Total Impaired Loans by Class Segment
The following table presents total impaired loans by class segment:
 
March 31, 2014
 
December 31, 2013
 
Unpaid
Principal
Balance
 
Recorded
Investment
 
Related
Allowance
 
Unpaid
Principal
Balance
 
Recorded
Investment
 
Related
Allowance
 
(in thousands)
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
Real estate - commercial mortgage
$
27,433

 
$
23,491

 
$
—

 
$
28,892

 
$
24,494

 
$
—

Commercial - secured
23,862

 
20,867

 
—

 
23,890

 
21,383

 
—

Real estate - home equity
399

 
300

 
—

 
399

 
300

 
—

Real estate - residential mortgage
317

 
317

 
—

 
—

 
—

 
—

Construction - commercial residential
26,475

 
20,705

 
—

 
18,943

 
13,740

 
—

Construction - commercial
2,992

 
1,962

 
—

 
2,996

 
1,976

 
—

 
81,478

 
67,642

 

 
75,120

 
61,893

 

With a related allowance recorded:
 
 
 

 

 

 

Real estate - commercial mortgage
47,010

 
38,407

 
16,394

 
43,282

 
35,830

 
14,444

Commercial - secured
36,309

 
23,765

 
13,232

 
34,267

 
22,324

 
13,315

Commercial - unsecured
693

 
641

 
472

 
1,113

 
1,048

 
752

Real estate - home equity
19,420

 
13,854

 
9,491

 
20,383

 
14,337

 
9,059

Real estate - residential mortgage
61,733

 
51,365

 
21,711

 
63,682

 
51,097

 
21,745

Construction - commercial residential
15,753

 
4,963

 
2,212

 
25,769

 
14,579

 
3,493

Construction - commercial
481

 
191

 
76

 
485

 
195

 
77

Construction - other
718

 
544

 
298

 
719

 
548

 
301

Consumer - direct
15

 
15

 
13

 
11

 
11

 
10

Consumer - indirect
15

 
2

 
2

 
2

 
2

 
2

 
182,147

 
133,747

 
63,901

 
189,713

 
139,971

 
63,198

Total
$
263,625

 
$
201,389

 
$
63,901

 
$
264,833

 
$
201,864

 
$
63,198


As of March 31, 2014 and December 31, 2013, there were $67.6 million and $61.9 million, respectively, of impaired loans that did not have a related allowance for loan loss. The estimated fair values of the collateral for these loans exceeded their carrying amount, or they were previously charged down to collateral values. Accordingly, no specific valuation allowance was considered to be necessary.
The following table presents average impaired loans by class segment:
 
Three months ended March 31
 
2014
 
2013
 
Average
Recorded
Investment
 
Interest
Income
Recognized (1)
 
Average
Recorded
Investment
 
Interest
Income
Recognized (1)
 
(in thousands)
With no related allowance recorded:
 
 
 
 
 
 
 
Real estate - commercial mortgage
$
23,993

 
$
86

 
$
32,140

 
$
160

Commercial - secured
21,125

 
35

 
31,413

 
34

Commercial - unsecured
—

 
—

 
66

 
—

Real estate - home equity
300

 
—

 
205

 
1

Real estate - residential mortgage
159

 
1

 
991

 
12

Construction - commercial residential
17,223

 
60

 
22,650

 
63

Construction - commercial
1,969

 
—

 
4,979

 
2

 
64,769

 
182

 
92,444

 
272

With a related allowance recorded:
 
 
 
 
 
 
 
Real estate - commercial mortgage
37,119

 
132

 
54,464

 
221

Commercial - secured
23,045

 
38

 
35,864

 
43

Commercial - unsecured
845

 
1

 
1,743

 
2

Real estate - home equity
14,096

 
20

 
13,301

 
16

Real estate - residential mortgage
51,231

 
294

 
53,797

 
339

Construction - commercial residential
9,771

 
35

 
11,496

 
42

Construction - commercial
193

 
—

 
2,758

 
3

Construction - other
546

 
—

 
533

 
1

Consumer - direct
13

 
—

 
24

 
—

Consumer - indirect
2

 
—

 
—

 
—

Leasing and other and overdrafts
—

 
—

 
28

 
—

 
136,861

 
520

 
174,008

 
667

Total
$
201,630

 
$
702

 
$
266,452

 
$
939

 
 
 
 
 
 
 
 
(1)
All impaired loans, excluding accruing TDRs, were non-accrual loans. Interest income recognized for the three months ended March 31, 2014 and 2013 represents amounts earned on accruing TDRs.
Financing Receivable Credit Quality Indicators
The following table presents internal credit risk ratings for commercial - secured loans, commercial - unsecured loans, commercial mortgages, construction - commercial residential loans and construction - commercial loans:
 
Pass
 
Special Mention
 
Substandard or Lower
 
Total
 
March 31, 2014
 
December 31, 2013
 
March 31, 2014
 
December 31, 2013
 
March 31, 2014
 
December 31, 2013
 
March 31, 2014
 
December 31, 2013
 
(dollars in thousands)
Real estate - commercial mortgage
$
4,833,982

 
$
4,763,987

 
$
122,929

 
$
141,013

 
$
180,543

 
$
196,922

 
$
5,137,454

 
$
5,101,922

Commercial - secured
3,109,539

 
3,167,168

 
137,176

 
111,613

 
128,326

 
125,382

 
3,375,041

 
3,404,163

Commercial -unsecured
183,734

 
209,836

 
10,369

 
11,666

 
4,986

 
2,755

 
199,089

 
224,257

Total commercial - industrial, financial and agricultural
3,293,273

 
3,377,004

 
147,545

 
123,279

 
133,312

 
128,137

 
3,574,130

 
3,628,420

Construction - commercial residential
153,495

 
146,041

 
29,556

 
31,522

 
46,490

 
57,806

 
229,541

 
235,369

Construction - commercial
274,037

 
258,441

 
2,915

 
2,932

 
6,144

 
8,124

 
283,096

 
269,497

Total construction (excluding Construction - other)
427,532

 
404,482

 
32,471

 
34,454

 
52,634

 
65,930

 
512,637

 
504,866

 
$
8,554,787

 
$
8,545,473

 
$
302,945

 
$
298,746

 
$
366,489

 
$
390,989

 
$
9,224,221

 
$
9,235,208

% of Total
92.7
%
 
92.6
%
 
3.3
%
 
3.2
%
 
4.0
%
 
4.2
%
 
100.0
%
 
100.0
%

The following is a summary of the Corporation's internal risk rating categories:
•
Pass: These loans do not currently pose undue credit risk and can range from the highest to average quality, depending on the degree of potential risk.
•
Special Mention: These loans constitute an undue and unwarranted credit risk, but not to a point of justifying a classification of substandard. Loans in this category are currently acceptable, but are nevertheless potentially weak.
•
Substandard or Lower: These loans are inadequately protected by current sound worth and paying capacity of the borrower. There exists a well-defined weakness or weaknesses that jeopardize the normal repayment of the debt.

The Corporation believes that internal risk ratings are the most relevant credit quality indicator for the class segments presented above. The migration of loans through the various internal risk rating categories is a significant component of the allowance for credit loss methodology, which bases the probability of default on this migration. Assigning risk ratings involves judgment. Risk ratings are initially assigned to loans by loan officers and are reviewed on a regular basis by credit administration staff. The Corporation's loan review officers provide a separate assessment of risk rating accuracy. Ratings may be changed based on the ongoing monitoring procedures performed by loan officers or credit administration staff, or if specific loan review activities identify a deterioration or an improvement in the loan. The risk rating process allows management to identify riskier credits in a timely manner and to allocate resources to managing troubled accounts.

The Corporation does not assign internal risk ratings to smaller balance, homogeneous loans, such as home equity, residential mortgage, consumer, leasing and other and construction loans to individuals secured by residential real estate. For these loans, the most relevant credit quality indicator is delinquency status. The migration of these loans through the various delinquency status categories is a significant component of the allowance for credit losses methodology, which bases the probability of default on this migration.

The following table presents a summary of delinquency and non-performing status for home equity, residential mortgages, construction loans to individuals and consumer, leasing and other loans by class segment:
 
Performing
 
Delinquent (1)
 
Non-performing (2)
 
Total
 
March 31, 2014
 
December 31, 2013
 
March 31, 2014
 
December 31, 2013
 
March 31, 2014
 
December 31, 2013
 
March 31, 2014
 
December 31, 2013
 
(dollars in thousands)
Real estate - home equity
$
1,711,430

 
$
1,731,185

 
$
11,978

 
$
16,029

 
$
17,088

 
$
16,983

 
$
1,740,496

 
$
1,764,197

Real estate - residential mortgage
1,281,854

 
1,282,754

 
20,306

 
23,279

 
29,305

 
31,347

 
1,331,465

 
1,337,380

Construction - other
70,096

 
68,258

 
940

 
—

 
544

 
548

 
71,580

 
68,806

Consumer - direct
116,748

 
126,666

 
3,634

 
3,586

 
2,872

 
2,391

 
123,254

 
132,643

Consumer - indirect
144,220

 
147,017

 
2,420

 
3,312

 
127

 
152

 
146,767

 
150,481

Total consumer
260,968

 
273,683

 
6,054

 
6,898

 
2,999

 
2,543

 
270,021

 
283,124

Leasing and other and overdrafts
95,141

 
92,876

 
794

 
581

 
74

 
48

 
96,009

 
93,505

 
$
3,419,489

 
$
3,448,756

 
$
40,072

 
$
46,787

 
$
50,010

 
$
51,469

 
$
3,509,571

 
$
3,547,012

% of Total
97.4
%

97.2
%

1.2
%

1.3
%

1.4
%

1.5
%

100.0
%

100.0
%

(1)
Includes all accruing loans 31 days to 89 days past due.
(2)
Includes all accruing loans 90 days or more past due and all non-accrual loans.
Non-Performing Assets
The following table presents non-performing assets:
 
March 31,
2014
 
December 31,
2013
 
(in thousands)
Non-accrual loans
$
133,705

 
$
133,753

Accruing loans greater than 90 days past due
21,225

 
20,524

Total non-performing loans
154,930

 
154,277

Other real estate owned (OREO)
15,300

 
15,052

Total non-performing assets
$
170,230

 
$
169,329
Troubled Debt Restructurings on Financing Receivables
The following table presents TDRs, by class segment:
 
March 31,
2014
 
December 31,
2013
 
(in thousands)
Real-estate - residential mortgage
$
30,363

 
$
28,815

Real-estate - commercial mortgage
19,514

 
19,758

Construction - commercial residential
8,430

 
10,117

Commercial - secured
6,674

 
7,933

Real estate - home equity
2,606

 
1,365

Commercial - unsecured
81

 
112

Consumer - direct
15

 
11

Consumer - indirect
1

 
—

Total accruing TDRs
67,684

 
68,111

Non-accrual TDRs (1)
27,487

 
30,209

Total TDRs
$
95,171

 
$
98,320

 
(1)
Included within non-accrual loans in the preceding table detailing non-performing assets
Loan Terms Modified Under Troubled Debt Restructurings
The following table presents TDRs, by class segment, as of March 31, 2014 and 2013 that were modified during the three months ended March 31, 2014 and 2013:
 
Three months ended March 31
 
2014
 
2013
 
Number of Loans
 
Recorded Investment
 
Number of Loans
 
Recorded Investment
 
(dollars in thousands)
Real estate - commercial mortgage
7
 
$
7,470

 
5
 
$
2,652

Real estate - residential mortgage
6
 
706

 
28
 
3,966

Construction - commercial residential
1
 
548

 
2
 
628

Real estate - home equity
10
 
529

 
17
 
1,180

Consumer - direct
4
 
4

 
—
 
—

Consumer - indirect
3
 
1

 
—
 
—

Commercial - secured
—
 
—

 
5
 
457

Commercial - unsecured
—
 
—

 
1
 
15

 
31
 
$
9,258

 
58
 
$
8,898


The following table presents TDRs, by class segment, as of March 31, 2014 and 2013 that were modified within the previous 12 months and had a post-modification payment default during the three months ended March 31, 2014 and 2013. The Corporation defines a payment default as a single missed payment.
 
Three months ended March 31
 
2014
 
2013
 
Number of Loans
 
Recorded Investment
 
Number of Loans
 
Recorded Investment
 
(dollars in thousands)
Real estate - residential mortgage
12
 
$
2,522

 
31
 
$
5,849

Real estate - home equity
14
 
1,432

 
20
 
1,233

Construction - commercial residential
1
 
619

 
4
 
1,308

Real estate - commercial mortgage
3
 
126

 
12
 
6,893

Commercial - secured
1
 
11

 
6
 
708

Construction - commercial
—
 
—

 
1
 
930

 
31
 
$
4,710

 
74
 
$
16,921
Past due Loan Status and Non-Accrual Loans by Portfolio Segment
The following table presents past due status and non-accrual loans by portfolio segment and class segment:
 
March 31, 2014
 
31-59
Days Past
Due
 
60-89
Days Past
Due
 
≥ 90 Days
Past Due
and
Accruing
 
Non-
accrual
 
Total ≥ 90
Days
 
Total Past
Due
 
Current
 
Total
 
(in thousands)
Real estate - commercial mortgage
$
13,290

 
$
4,633

 
$
3,492

 
$
42,384

 
$
45,876

 
$
63,799

 
$
5,073,655

 
$
5,137,454

Commercial - secured
9,370

 
1,886

 
308

 
37,958

 
38,266

 
49,522

 
3,325,519

 
3,375,041

Commercial - unsecured
304

 
275

 
4

 
560

 
564

 
1,143

 
197,946

 
199,089

Total commercial - industrial, financial and agricultural
9,674

 
2,161

 
312

 
38,518

 
38,830

 
50,665

 
3,523,465

 
3,574,130

Real estate - home equity
9,347

 
2,631

 
5,540

 
11,548

 
17,088

 
29,066

 
1,711,430

 
1,740,496

Real estate - residential mortgage
14,682

 
5,624

 
7,986

 
21,319

 
29,305

 
49,611

 
1,281,854

 
1,331,465

Construction - commercial residential
1,352

 
228

 
796

 
17,238

 
18,034

 
19,614

 
209,927

 
229,541

Construction - commercial
—

 
—

 
27

 
2,153

 
2,180

 
2,180

 
280,916

 
283,096

Construction - other
940

 
—

 
—

 
544

 
544

 
1,484

 
70,096

 
71,580

Total real estate - construction
2,292

 
228

 
823

 
19,935

 
20,758

 
23,278

 
560,939

 
584,217

Consumer - direct
2,495

 
1,139

 
2,872

 
—

 
2,872

 
6,506

 
116,748

 
123,254

Consumer - indirect
1,960

 
460

 
126

 
1

 
127

 
2,547

 
144,220

 
146,767

Total consumer
4,455

 
1,599

 
2,998

 
1

 
2,999

 
9,053

 
260,968

 
270,021

Leasing and other and overdrafts
331

 
463

 
74

 
—

 
74

 
868

 
95,141

 
96,009

 
$
54,071

 
$
17,339

 
$
21,225

 
$
133,705

 
$
154,930

 
$
226,340

 
$
12,507,452

 
$
12,733,792


 
December 31, 2013
 
31-59
Days Past
Due
 
60-89
Days Past
Due
 
≥ 90 Days
Past Due
and
Accruing
 
Non-
accrual
 
Total ≥ 90
Days
 
Total Past
Due
 
Current
 
Total
 
(in thousands)
Real estate - commercial mortgage
$
15,474

 
$
4,009

 
$
3,502

 
$
40,566

 
$
44,068

 
$
63,551

 
$
5,038,371

 
$
5,101,922

Commercial - secured
8,916

 
1,365

 
1,311

 
35,774

 
37,085

 
47,366

 
3,356,797

 
3,404,163

Commercial - unsecured
332

 
125

 
—

 
936

 
936

 
1,393

 
222,864

 
224,257

Total commercial - industrial, financial and agricultural
9,248

 
1,490

 
1,311

 
36,710

 
38,021

 
48,759

 
3,579,661

 
3,628,420

Real estate - home equity
13,555

 
2,474

 
3,711

 
13,272

 
16,983

 
33,012

 
1,731,185

 
1,764,197

Real estate - residential mortgage
16,969

 
6,310

 
9,065

 
22,282

 
31,347

 
54,626

 
1,282,754

 
1,337,380

Construction - commercial residential
—

 
645

 
346

 
18,202

 
18,548

 
19,193

 
216,176

 
235,369

Construction - commercial
14

 
—

 
—

 
2,171

 
2,171

 
2,185

 
267,312

 
269,497

Construction - other
—

 
—

 
—

 
548

 
548

 
548

 
68,258

 
68,806

Total real estate - construction
14

 
645

 
346

 
20,921

 
21,267

 
21,926

 
551,746

 
573,672

Consumer - direct
2,091

 
1,495

 
2,391

 
—

 
2,391

 
5,977

 
126,666

 
132,643

Consumer - indirect
2,864

 
448

 
150

 
2

 
152

 
3,464

 
147,017

 
150,481

Total consumer
4,955

 
1,943

 
2,541

 
2

 
2,543

 
9,441

 
273,683

 
283,124

Leasing and other and overdrafts
559

 
22

 
48

 
—

 
48

 
629

 
92,876

 
93,505

 
$
60,774

 
$
16,893

 
$
20,524

 
$
133,753

 
$
154,277

 
$
231,944

 
$
12,550,276

 
$
12,782,220