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Loans and Allowance for Credit Losses (Tables)
 3 Months Ended
Mar. 31, 2017
Receivables [Abstract]  
Summary of Gross Loans by Type
Loans, net of unearned income are summarized as follows:
 
March 31,
2017
 
December 31, 2016
 
(in thousands)
Real-estate - commercial mortgage
$
6,118,533

 
$
6,018,582

Commercial - industrial, financial and agricultural
4,167,809

 
4,087,486

Real-estate - residential mortgage
1,665,142

 
1,601,994

Real-estate - home equity
1,595,901

 
1,625,115

Real-estate - construction
882,983

 
843,649

Consumer
288,826

 
291,470

Leasing and other
262,315

 
246,704

Overdrafts
3,342

 
3,662

Loans, gross of unearned income
14,984,851

 
14,718,662

Unearned income
(21,674
)
 
(19,390
)
Loans, net of unearned income
$
14,963,177

 
$
14,699,272
Schedule of Allowance for Credit Losses
The following table presents the components of the allowance for credit losses:
 
March 31,
2017
 
December 31,
2016
 
(in thousands)
Allowance for loan losses
$
170,076

 
$
168,679

Reserve for unfunded lending commitments
2,571

 
2,646

Allowance for credit losses
$
172,647

 
$
171,325
Activity in the Allowance for Credit Losses
The following table presents the activity in the allowance for credit losses:
 
Three months ended March 31
 
2017
 
2016
 
(in thousands)
Balance at beginning of period
$
171,325

 
$
171,412

Loans charged off
(9,407
)
 
(11,155
)
Recoveries of loans previously charged off
5,929

 
4,278

Net loans charged off
(3,478
)
 
(6,877
)
Provision for credit losses
4,800

 
1,530

Balance at end of period
$
172,647

 
$
166,065


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, other
and
overdrafts
 
Unallocated
 
Total
 
(in thousands)
Three months ended March 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2016
$
46,842

 
$
54,353

 
$
26,801

 
$
22,929

 
$
6,455

 
$
3,574

 
$
3,192

 
$
4,533

 
$
168,679

Loans charged off
(1,224
)
 
(5,527
)
 
(698
)
 
(216
)
 
(247
)
 
(856
)
 
(639
)
 
—

 
(9,407
)
Recoveries of loans previously charged off
450

 
4,191

 
137

 
230

 
548

 
236

 
137

 
—

 
5,929

Net loans charged off
(774
)
 
(1,336
)
 
(561
)
 
14

 
301

 
(620
)
 
(502
)
 
—

 
(3,478
)
Provision for loan losses (1)
1,305

 
2,292

 
(2,419
)
 
(925
)
 
745

 
77

 
578

 
3,222

 
4,875

Balance at March 31, 2017
$
47,373

 
$
55,309

 
$
23,821

 
$
22,018

 
$
7,501

 
$
3,031

 
$
3,268

 
$
7,755

 
$
170,076

Three months ended March 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2015
$
47,866

 
$
57,098

 
$
22,405

 
$
21,375

 
$
6,529

 
$
2,585

 
$
2,468

 
$
8,728

 
$
169,054

Loans charged off
(582
)
 
(6,188
)
 
(1,541
)
 
(1,068
)
 
(326
)
 
(1,007
)
 
(443
)
 
—

 
(11,155
)
Recoveries of loans previously charged off
825

 
2,319

 
338

 
136

 
383

 
196

 
81

 
—

 
4,278

Net loans charged off
243

 
(3,869
)
 
(1,203
)
 
(932
)
 
57

 
(811
)
 
(362
)
 
—

 
(6,877
)
Provision for loan losses (1)
202

 
1,104

 
1,322

 
(515
)
 
(304
)
 
550

 
868

 
(1,563
)
 
1,664

Balance at March 31, 2016
$
48,311

 
$
54,333

 
$
22,524

 
$
19,928

 
$
6,282

 
$
2,324

 
$
2,974

 
$
7,165

 
$
163,841


(1)
The provision for loan losses excluded a $75,000 and an $134,000 decrease, respectively, in the reserve for unfunded lending commitments for the three months ended March 31, 2017 and 2016.
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, other
and
overdrafts
 
Unallocated
 
Total
 
(in thousands)
Allowance for loan losses at March 31, 2017:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Measured for impairment under FASB ASC Subtopic 450-20
$
37,457

 
$
43,155

 
$
14,744

 
$
10,581

 
$
4,915

 
$
3,007

 
$
3,268

 
$
7,755

 
$
124,882

Evaluated for impairment under FASB ASC Section 310-10-35
9,916

 
12,154

 
9,077

 
11,437

 
2,586

 
24

 
—

 
N/A

 
45,194

 
$
47,373

 
$
55,309

 
$
23,821

 
$
22,018

 
$
7,501

 
$
3,031

 
$
3,268

 
$
7,755

 
$
170,076

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans, net of unearned income at March 31, 2017:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Measured for impairment under FASB ASC Subtopic 450-20
$
6,067,492

 
$
4,119,550

 
$
1,576,949

 
$
1,620,302

 
$
869,225

 
$
288,789

 
$
243,983

 
N/A

 
$
14,786,290

Evaluated for impairment under FASB ASC Section 310-10-35
51,041

 
48,259

 
18,952

 
44,840

 
13,758

 
37

 
—

 
N/A

 
176,887

 
$
6,118,533

 
$
4,167,809

 
$
1,595,901

 
$
1,665,142

 
$
882,983

 
$
288,826

 
$
243,983

 
N/A

 
$
14,963,177

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses at March 31, 2016:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Measured for impairment under FASB ASC Subtopic 450-20
$
35,914

 
$
40,969

 
$
13,541

 
$
7,599

 
$
4,004

 
$
2,302

 
$
1,756

 
$
7,165

 
$
113,250

Evaluated for impairment under FASB ASC Section 310-10-35
12,397

 
13,364

 
8,983

 
12,329

 
2,278

 
22

 
1,218

 
N/A

 
50,591

 
$
48,311

 
$
54,333

 
$
22,524

 
$
19,928

 
$
6,282

 
$
2,324

 
$
2,974

 
$
7,165

 
$
163,841

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans, net of unearned income at March 31, 2016:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Measured for impairment under FASB ASC Subtopic 450-20
$
5,499,820

 
$
3,992,567

 
$
1,641,457

 
$
1,329,114

 
$
797,282

 
$
263,189

 
$
164,806

 
N/A

 
$
13,688,235

Evaluated for impairment under FASB ASC Section 310-10-35
58,288

 
42,766

 
18,024

 
48,345

 
13,590

 
32

 
1,421

 
N/A

 
182,466

 
$
5,558,108

 
$
4,035,333

 
$
1,659,481

 
$
1,377,459

 
$
810,872

 
$
263,221

 
$
166,227

 
N/A

 
$
13,870,701

 
N/A - Not applicable
Total Impaired Loans by Class Segment
The following table presents total impaired loans by class segment:
 
March 31, 2017
 
December 31, 2016
 
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
$
25,043

 
$
22,236

 
$
—

 
$
28,757

 
$
25,447

 
$
—

Commercial - secured
33,791

 
25,622

 
—

 
29,296

 
25,526

 
—

Real estate - residential mortgage
4,657

 
4,657

 
—

 
4,689

 
4,689

 
—

Construction - commercial residential
6,169

 
4,692

 
—

 
6,271

 
4,795

 
—

Construction - commercial
603

 
603

 
—

 
—

 
—

 
—

 
70,263

 
57,810

 

 
69,013

 
60,457

 

With a related allowance recorded:
 
 
 
 
 
 
 
 
 
 
Real estate - commercial mortgage
37,069

 
28,805

 
9,916

 
37,132

 
29,446

 
10,162

Commercial - secured
26,205

 
21,872

 
11,739

 
27,767

 
22,626

 
13,198

Commercial - unsecured
1,061

 
765

 
415

 
1,122

 
823

 
455

Real estate - home equity
23,351

 
18,952

 
9,077

 
23,971

 
19,205

 
9,511

Real estate - residential mortgage
47,442

 
40,183

 
11,437

 
48,885

 
41,359

 
11,897

Construction - commercial residential
13,451

 
7,286

 
2,134

 
10,103

 
4,206

 
1,300

Construction - commercial
141

 
81

 
31

 
681

 
435

 
145

Construction - other
1,096

 
1,096

 
421

 
1,096

 
1,096

 
423

Consumer - direct
20

 
20

 
14

 
19

 
19

 
12

Consumer - indirect
17

 
17

 
10

 
21

 
21

 
14

 
149,853

 
119,077

 
45,194

 
150,797

 
119,236

 
47,117

Total
$
220,116

 
$
176,887

 
$
45,194

 
$
219,810

 
$
179,693

 
$
47,117


As of March 31, 2017 and December 31, 2016, there were $57.8 million and $60.5 million, respectively, of impaired loans that did not have a related allowance for loan loss. The estimated fair values of the collateral securing these loans exceeded their carrying amount, or they were previously charged down to realizable 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
 
2017
 
2016
 
Average
Recorded
Investment
 
Interest
Income (1)
 
Average
Recorded
Investment
 
Interest
Income (1)
 
(in thousands)
With no related allowance recorded:
 
 
 
 
 
 
 
Real estate - commercial mortgage
$
23,842

 
$
70

 
$
22,810

 
$
69

Commercial - secured
25,574

 
36

 
12,964

 
16

Real estate - residential mortgage
4,673

 
26

 
5,501

 
30

Construction - commercial residential
4,744

 
2

 
7,582

 
19

Construction - commercial
302

 
—

 
—

 
—

 
59,135

 
134

 
48,857

 
134

With a related allowance recorded:
 
 
 
 
 
 
 
Real estate - commercial mortgage
29,126

 
85

 
35,482

 
108

Commercial - secured
22,249

 
32

 
31,642

 
38

Commercial - unsecured
795

 
—

 
853

 
1

Real estate - home equity
19,079

 
95

 
16,896

 
57

Real estate - residential mortgage
40,839

 
230

 
43,885

 
235

Construction - commercial residential
5,746

 
3

 
6,189

 
15

Construction - commercial
258

 
—

 
616

 
—

Construction - other
1,096

 
—

 
402

 
—

Consumer - direct
20

 
—

 
17

 
—

Consumer - indirect
18

 
—

 
16

 
—

Leasing, other and overdrafts
713

 
—

 
1,423

 
—

 
119,939

 
445

 
137,421

 
454

Total
$
179,074

 
$
579

 
$
186,278

 
$
588

 
 
 
 
 
 
 
 
(1)
All impaired loans, excluding accruing TDRs, were non-accrual loans. Interest income recognized for the three months ended March 31, 2017 and 2016 represents amounts earned on accruing TDRs.
Financing Receivable Credit Quality Indicators
The following table presents a summary of performing, delinquent and non-performing loans for the indicated loan class segments:
 
Performing
 
Delinquent (1)
 
Non-performing (2)
 
Total
 
March 31, 2017
 
December 31, 2016
 
March 31, 2017
 
December 31, 2016
 
March 31, 2017
 
December 31, 2016
 
March 31, 2017
 
December 31, 2016
 
(dollars in thousands)
Real estate - home equity
$
1,576,374

 
$
1,602,687

 
$
7,295

 
$
9,274

 
$
12,232

 
$
13,154

 
$
1,595,901

 
$
1,625,115

Real estate - residential mortgage
1,624,477

 
1,557,995

 
17,068

 
20,344

 
23,597

 
23,655

 
1,665,142

 
1,601,994

Construction - other
45,446

 
55,874

 
—

 
—

 
1,096

 
1,096

 
46,542

 
56,970

Consumer - direct
84,670

 
93,572

 
1,383

 
1,752

 
1,129

 
1,563

 
87,182

 
96,887

Consumer - indirect
199,542

 
190,656

 
2,055

 
3,599

 
47

 
328

 
201,644

 
194,583

Total consumer
284,212

 
284,228

 
3,438

 
5,351

 
1,176

 
1,891

 
288,826

 
291,470

Leasing
242,120

 
229,591

 
1,425

 
1,068

 
438

 
317

 
243,983

 
230,976

 
$
3,772,629

 
$
3,730,375

 
$
29,226

 
$
36,037

 
$
38,539

 
$
40,113

 
$
3,840,394

 
$
3,806,525

% of Total
98.2
%
 
98.0
%
 
0.8
%
 
0.9
%
 
1.0
%
 
1.1
%
 
100.0
%
 
100.0
%

(1)
Includes all accruing loans 30 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 internal credit risk ratings for the indicated loan class segments:
 
Pass
 
Special Mention
 
Substandard or Lower
 
Total
 
March 31, 2017
 
December 31, 2016
 
March 31, 2017
 
December 31, 2016
 
March 31, 2017
 
December 31, 2016
 
March 31, 2017
 
December 31, 2016
 
(dollars in thousands)
Real estate - commercial mortgage
$
5,860,141

 
$
5,763,122

 
$
137,643

 
$
132,484

 
$
120,749

 
$
122,976

 
$
6,118,533

 
$
6,018,582

Commercial - secured
3,753,918

 
3,686,152

 
138,242

 
128,873

 
138,757

 
118,527

 
4,030,917

 
3,933,552

Commercial - unsecured
127,858

 
145,922

 
6,471

 
4,481

 
2,563

 
3,531

 
136,892

 
153,934

Total commercial - industrial, financial and agricultural
3,881,776

 
3,832,074

 
144,713

 
133,354

 
141,320

 
122,058

 
4,167,809

 
4,087,486

Construction - commercial residential
124,415

 
113,570

 
10,677

 
15,447

 
16,221

 
13,172

 
151,313

 
142,189

Construction - commercial
674,863

 
635,963

 
4,902

 
3,412

 
5,363

 
5,115

 
685,128

 
644,490

Total construction (excluding Construction - other)
799,278

 
749,533

 
15,579

 
18,859

 
21,584

 
18,287

 
836,441

 
786,679

 
$
10,541,195

 
$
10,344,729

 
$
297,935

 
$
284,697

 
$
283,653

 
$
263,321

 
$
11,122,783

 
$
10,892,747

% of Total
94.8
%
 
95.0
%
 
2.6
%
 
2.6
%
 
2.6
%
 
2.4
%
 
100.0
%
 
100.0
%
Non-Performing Assets
The following table presents non-performing assets:
 
March 31,
2017
 
December 31,
2016
 
(in thousands)
Non-accrual loans
$
117,264

 
$
120,133

Loans 90 days or more past due and still accruing
14,268

 
11,505

Total non-performing loans
131,532

 
131,638

Other real estate owned (OREO)
11,906

 
12,815

Total non-performing assets
$
143,438

 
$
144,453
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, 2017
 
30-59
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
$
9,890

 
$
971

 
$
910

 
$
35,803

 
$
36,713

 
$
47,574

 
$
6,070,959

 
$
6,118,533

Commercial - secured
4,530

 
3,179

 
2,511

 
40,084

 
42,595

 
50,304

 
3,980,613

 
4,030,917

Commercial - unsecured
309

 
54

 
497

 
734

 
1,231

 
1,594

 
135,298

 
136,892

Total commercial - industrial, financial and agricultural
4,839

 
3,233

 
3,008

 
40,818

 
43,826

 
51,898

 
4,115,911

 
4,167,809

Real estate - home equity
6,181

 
1,114

 
2,881

 
9,351

 
12,232

 
19,527

 
1,576,374

 
1,595,901

Real estate - residential mortgage
12,829

 
4,239

 
5,790

 
17,807

 
23,597

 
40,665

 
1,624,477

 
1,665,142

Construction - commercial residential
1,550

 
801

 
65

 
11,705

 
11,770

 
14,121

 
137,192

 
151,313

Construction - commercial
1,546

 
142

 
—

 
684

 
684

 
2,372

 
682,756

 
685,128

Construction - other
—

 
—

 
—

 
1,096

 
1,096

 
1,096

 
45,446

 
46,542

Total real estate - construction
3,096

 
943

 
65

 
13,485

 
13,550

 
17,589

 
865,394

 
882,983

Consumer - direct
939

 
444

 
1,129

 
—

 
1,129

 
2,512

 
84,670

 
87,182

Consumer - indirect
1,784

 
271

 
47

 
—

 
47

 
2,102

 
199,542

 
201,644

Total consumer
2,723

 
715

 
1,176

 
—

 
1,176

 
4,614

 
284,212

 
288,826

Leasing, other and overdrafts
981

 
444

 
438

 
—

 
438

 
1,863

 
242,120

 
243,983

Total
$
40,539

 
$
11,659

 
$
14,268

 
$
117,264

 
$
131,532

 
$
183,730

 
$
14,779,447

 
$
14,963,177

 
December 31, 2016
 
30-59
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
$
6,254

 
$
1,622

 
$
383

 
$
38,936

 
$
39,319

 
$
47,195

 
$
5,971,387

 
$
6,018,582

Commercial - secured
6,660

 
2,616

 
959

 
41,589

 
42,548

 
51,824

 
3,881,728

 
3,933,552

Commercial - unsecured
898

 
35

 
152

 
760

 
912

 
1,845

 
152,089

 
153,934

Total commercial - industrial, financial and agricultural
7,558

 
2,651

 
1,111

 
42,349

 
43,460

 
53,669

 
4,033,817

 
4,087,486

Real estate - home equity
6,596

 
2,678

 
2,543

 
10,611

 
13,154

 
22,428

 
1,602,687

 
1,625,115

Real estate - residential mortgage
15,600

 
4,744

 
5,224

 
18,431

 
23,655

 
43,999

 
1,557,995

 
1,601,994

Construction - commercial residential
233

 
51

 
36

 
8,275

 
8,311

 
8,595

 
133,594

 
142,189

Construction - commercial
743

 
—

 
—

 
435

 
435

 
1,178

 
643,312

 
644,490

Construction - other
—

 
—

 
—

 
1,096

 
1,096

 
1,096

 
55,874

 
56,970

Total real estate - construction
976

 
51

 
36

 
9,806

 
9,842

 
10,869

 
832,780

 
843,649

Consumer - direct
1,211

 
541

 
1,563

 
—

 
1,563

 
3,315

 
93,572

 
96,887

Consumer - indirect
3,200

 
399

 
328

 
—

 
328

 
3,927

 
190,656

 
194,583

Total consumer
4,411

 
940

 
1,891

 
—

 
1,891

 
7,242

 
284,228

 
291,470

Leasing, other and overdrafts
543

 
525

 
317

 
—

 
317

 
1,385

 
229,591

 
230,976

Total
$
41,938

 
$
13,211

 
$
11,505

 
$
120,133

 
$
131,638

 
$
186,787

 
$
14,512,485

 
$
14,699,272
Troubled Debt Restructurings on Financing Receivables
The following table presents TDRs, by class segment:
 
March 31,
2017
 
December 31,
2016
 
(in thousands)
Real-estate - residential mortgage
$
27,033

 
$
27,617

Real-estate - commercial mortgage
15,237

 
15,957

Real estate - home equity
9,601

 
8,594

Commercial
7,441

 
6,627

Construction
273

 
726

Consumer
37

 
39

Total accruing TDRs
59,622

 
59,560

Non-accrual TDRs (1)
27,220

 
27,850

Total TDRs
$
86,842

 
$
87,410

 
(1)
Included in 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 and type of concession for loans that were modified during the three months ended March 31, 2017 and 2016:
 
 
Three months ended March 31
 
2017
 
2016
Number of Loans
 
Post-Modification Recorded Investment
 
Number of Loans
 
Post-Modification Recorded Investment
 
(dollars in thousands)
Real estate – residential mortgage:
 
 
 
 
 
 
 
 
Extend maturity without rate concession
2

 
$
337

 
—

 
$
—

 
Bankruptcy
1

 
178

 
—

 
—

Real estate - commercial mortgage:
 
 
 
 
 
 
 
 
Extend maturity without rate concession
1

 
318

 
—

 
—

Real estate - home equity:
 
 
 
 
 
 
 
 
Extend maturity with rate concession
—

 
—

 
1

 
44

 
Extend maturity without rate concession
16

 
1,284

 
—

 
—

 
Bankruptcy
7

 
453

 
37

 
2,698

Commercial:
 
 
 
 
 
 
 
 
Extend maturity without rate concession
4

 
3,126

 
4

 
933

Consumer:
 
 
 
 
 
 
 
 
Bankruptcy
—

 
—

 
1

 
2

 
 
 
 
 
 
 
 
 
Total
31

 
$
5,696

 
43

 
$
3,677

 
 
 
 
 
 
 
 
 
The following table presents TDRs, by class segment, as of March 31, 2017 and 2016, that were modified in the previous 12 months and had a post-modification payment default during the three months ended March 31, 2017 and 2016. The Corporation defines a payment default as a single missed payment.
 
2017
 
2016
 
Number of Loans
 
Recorded Investment
 
Number of Loans
 
Recorded Investment
 
(dollars in thousands)
Real estate - residential mortgage
8

 
$
2,006

 
3

 
$
260

Real estate - commercial mortgage
2

 
430

 
3

 
235

Real estate - home equity
14

 
639

 
14

 
1,039

Commercial
6

 
3,654

 
1

 
47

Total
30

 
$
6,729

 
21

 
$
1,581