Loans

3 Months Ended

Mar. 31, 2016

Receivables [Abstract]

Loans

Loans

The period end loan composition was as follows.

	March 31, 2016		December 31, 2015
	($ in Thousands)
Commercial and industrial	$	6,511,648	$	6,190,683
Commercial real estate — owner occupied	917,285		918,212
Commercial and business lending	7,428,933		7,108,895
Commercial real estate — investor	3,276,733		3,234,266
Real estate construction	1,184,398		1,162,145
Commercial real estate lending	4,461,131		4,396,411
Total commercial	11,890,064		11,505,306
Residential mortgage	5,944,457		5,783,267
Home equity	982,994		1,005,802
Other consumer	409,725		419,968
Total consumer	7,337,176		7,209,037
Total loans	$	19,227,240	$	18,714,343

The following table presents commercial and consumer loans by credit quality indicator at March 31, 2016.

	Pass		Special Mention		Potential Problem		Nonaccrual		Total
	($ in Thousands)
Commercial and industrial	$	5,713,979	$	272,090	$	328,464	$	197,115	$	6,511,648
Commercial real estate - owner occupied	834,879		31,856		41,107		9,443		917,285
Commercial and business lending	6,548,858		303,946		369,571		206,558		7,428,933
Commercial real estate - investor	3,208,338		30,680		25,385		12,330		3,276,733
Real estate construction	1,180,914		222		2,422		840		1,184,398
Commercial real estate lending	4,389,252		30,902		27,807		13,170		4,461,131
Total commercial	10,938,110		334,848		397,378		219,728		11,890,064
Residential mortgage	5,883,743		5,014		3,488		52,212		5,944,457
Home equity	967,267		1,446		209		14,072		982,994
Other consumer	408,819		523		—		383		409,725
Total consumer	7,259,829		6,983		3,697		66,667		7,337,176
Total	$	18,197,939	$	341,831	$	401,075	$	286,395	$	19,227,240

The following table presents commercial and consumer loans by credit quality indicator at December 31, 2015.

	Pass		Special Mention		Potential Problem		Nonaccrual		Total
	($ in Thousands)
Commercial and industrial	$	5,522,809	$	341,169	$	233,130	$	93,575	$	6,190,683
Commercial real estate - owner occupied	835,572		38,885		35,706		8,049		918,212
Commercial and business lending	6,358,381		380,054		268,836		101,624		7,108,895
Commercial real estate - investor	3,153,703		45,976		25,944		8,643		3,234,266
Real estate construction	1,157,034		252		3,919		940		1,162,145
Commercial real estate lending	4,310,737		46,228		29,863		9,583		4,396,411
Total commercial	10,669,118		426,282		298,699		111,207		11,505,306
Residential mortgage	5,727,437		1,552		2,796		51,482		5,783,267
Home equity	988,574		1,762		222		15,244		1,005,802
Other consumer	419,087		556		—		325		419,968
Total consumer	7,135,098		3,870		3,018		67,051		7,209,037
Total	$	17,804,216	$	430,152	$	301,717	$	178,258	$	18,714,343

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 that exhibit 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 that are 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, that may jeopardize liquidation of the debt and are characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected. Lastly, management considers a loan to be impaired when it is probable that the Corporation will be unable to collect all amounts due according to the original contractual terms of the note agreement, including both principal and interest. Management has determined that commercial and consumer loan relationships that have nonaccrual status or have had their terms restructured in a troubled debt restructuring meet this impaired loan definition. Commercial loans classified as special mention, potential problem, and nonaccrual loans are reviewed at a minimum on a quarterly basis, while pass and performing rated credits are reviewed on an annual basis or more frequently if the loan renewal is less than one year or if otherwise warranted.

The following table presents loans by past due status at March 31, 2016.

	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due (a)		Nonaccrual (b)		Total
	($ in Thousands)
Commercial and industrial	$	6,311,415	$	2,665	$	236	$	217	$	197,115	$	6,511,648
Commercial real estate - owner occupied	907,322		520		—		—		9,443		917,285
Commercial and business lending	7,218,737		3,185		236		217		206,558		7,428,933
Commercial real estate - investor	3,263,331		748		324		—		12,330		3,276,733
Real estate construction	1,183,143		415		—		—		840		1,184,398
Commercial real estate lending	4,446,474		1,163		324		—		13,170		4,461,131
Total commercial	11,665,211		4,348		560		217		219,728		11,890,064
Residential mortgage	5,888,651		3,199		395		—		52,212		5,944,457
Home equity	963,118		4,410		1,394		—		14,072		982,994
Other consumer	406,248		1,020		662		1,412		383		409,725
Total consumer	7,258,017		8,629		2,451		1,412		66,667		7,337,176
Total	$	18,923,228	$	12,977	$	3,011	$	1,629	$	286,395	$	19,227,240

(a) The recorded investment in loans past due 90 days or more and still accruing totaled $2 million at March 31, 2016 (the same as the reported balances for the accruing loans noted above).

(b) Of the total nonaccrual loans,$230 million or 80% were current with respect to payment at March 31, 2016.

The following table presents loans by past due status at December 31, 2015.

	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due (a)		Nonaccrual (b)		Total
	($ in Thousands)
Commercial and industrial	$	6,095,848	$	602	$	409	$	249	$	93,575	$	6,190,683
Commercial real estate - owner occupied	903,021		7,142		—		—		8,049		918,212
Commercial and business lending	6,998,869		7,744		409		249		101,624		7,108,895
Commercial real estate - investor	3,225,332		291		—		—		8,643		3,234,266
Real estate construction	1,160,909		270		26		—		940		1,162,145
Commercial real estate lending	4,386,241		561		26		—		9,583		4,396,411
Total commercial	11,385,110		8,305		435		249		111,207		11,505,306
Residential mortgage	5,726,855		4,491		439		—		51,482		5,783,267
Home equity	982,639		6,190		1,729		—		15,244		1,005,802
Other consumer	416,374		1,195		675		1,399		325		419,968
Total consumer	7,125,868		11,876		2,843		1,399		67,051		7,209,037
Total	$	18,510,978	$	20,181	$	3,278	$	1,648	$	178,258	$	18,714,343

(a) The recorded investment in loans past due 90 days or more and still accruing totaled $2 million at December 31, 2015 (the same as the reported balances for the accruing loans noted above).

(b) Of the total nonaccrual loans,$124 million or 69% were current with respect to payment at December 31, 2015.

The following table presents impaired loans at March 31, 2016.

	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
	($ in Thousands)
Loans with a related allowance
Commercial and industrial	$	105,780	$	106,837	$	14,595	$	106,280	$	613
Commercial real estate — owner occupied	10,477		10,596		554		10,552		89
Commercial and business lending	116,257		117,433		15,149		116,832		702
Commercial real estate — investor	23,494		24,430		1,244		23,541		461
Real estate construction	1,226		1,812		412		1,237		14
Commercial real estate lending	24,720		26,242		1,656		24,778		475
Total commercial	140,977		143,675		16,805		141,610		1,177
Residential mortgage	65,281		70,624		12,351		65,819		548
Home equity	20,337		22,451		9,732		20,504		248
Other consumer	1,276		1,332		221		1,291		8
Total consumer	86,894		94,407		22,304		87,614		804
Total loans(a)	$	227,871	$	238,082	$	39,109	$	229,224	$	1,981
Loans with no related allowance
Commercial and industrial	$	120,243	$	130,935	$	—	$	120,399	$	91
Commercial real estate — owner occupied	6,659		9,005		—		6,715		—
Commercial and business lending	126,902		139,940		—		127,114		91
Commercial real estate — investor	9,829		9,984		—		9,855		—
Real estate construction	—		—		—		—		—
Commercial real estate lending	9,829		9,984		—		9,855		—
Total commercial	136,731		149,924		—		136,969		91
Residential mortgage	6,738		7,020		—		6,841		35
Home equity	652		652		—		653		10
Other consumer	—		—		—		—		—
Total consumer	7,390		7,672		—		7,494		45
Total loans(a)	$	144,121	$	157,596	$	—	$	144,463	$	136
Total
Commercial and industrial	$	226,023	$	237,772	$	14,595	$	226,679	$	704
Commercial real estate — owner occupied	17,136		19,601		554		17,267		89
Commercial and business lending	243,159		257,373		15,149		243,946		793
Commercial real estate — investor	33,323		34,414		1,244		33,396		461
Real estate construction	1,226		1,812		412		1,237		14
Commercial real estate lending	34,549		36,226		1,656		34,633		475
Total commercial	277,708		293,599		16,805		278,579		1,268
Residential mortgage	72,019		77,644		12,351		72,660		583
Home equity	20,989		23,103		9,732		21,157		258
Other consumer	1,276		1,332		221		1,291		8
Total consumer	94,284		102,079		22,304		95,108		849
Total loans(a)	$	371,992	$	395,678	$	39,109	$	373,687	$	2,117

(a) The net recorded investment (defined as recorded investment, net of the related allowance) of the impaired loans represented 84% of the unpaid principal balance at March 31, 2016.

The following table presents impaired loans at December 31, 2015.

	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
	($ in Thousands)
Loans with a related allowance
Commercial and industrial	$	57,785	$	59,409	$	8,162	$	46,833	$	855
Commercial real estate — owner occupied	9,705		9,804		448		10,087		412
Commercial and business lending	67,490		69,213		8,610		56,920		1,267
Commercial real estate — investor	27,822		29,444		1,831		28,278		1,914
Real estate construction	1,450		2,154		453		1,667		66
Commercial real estate lending	29,272		31,598		2,284		29,945		1,980
Total commercial	96,762		100,811		10,894		86,865		3,247
Residential mortgage	66,590		71,084		12,462		68,183		2,374
Home equity	21,769		23,989		10,118		22,624		1,147
Other consumer	1,154		1,225		195		1,199		30
Total consumer	89,513		96,298		22,775		92,006		3,551
Total loans(a)	$	186,275	$	197,109	$	33,669	$	178,871	$	6,798
Loans with no related allowance
Commercial and industrial	$	65,083	$	72,259	$	—	$	79,573	$	1,657
Commercial real estate — owner occupied	6,221		6,648		—		6,534		15
Commercial and business lending	71,304		78,907		—		86,107		1,672
Commercial real estate — investor	2,736		2,840		—		2,763		90
Real estate construction	—		—		—		—		—
Commercial real estate lending	2,736		2,840		—		2,763		90
Total commercial	74,040		81,747		—		88,870		1,762
Residential mortgage	4,762		5,033		—		4,726		126
Home equity	544		544		—		544		30
Other consumer	—		—		—		—		—
Total consumer	5,306		5,577		—		5,270		156
Total loans(a)	$	79,346	$	87,324	$	—	$	94,140	$	1,918
Total
Commercial and industrial	$	122,868	$	131,668	$	8,162	$	126,406	$	2,512
Commercial real estate — owner occupied	15,926		16,452		448		16,621		427
Commercial and business lending	138,794		148,120		8,610		143,027		2,939
Commercial real estate — investor	30,558		32,284		1,831		31,041		2,004
Real estate construction	1,450		2,154		453		1,667		66
Commercial real estate lending	32,008		34,438		2,284		32,708		2,070
Total commercial	170,802		182,558		10,894		175,735		5,009
Residential mortgage	71,352		76,117		12,462		72,909		2,500
Home equity	22,313		24,533		10,118		23,168		1,177
Other consumer	1,154		1,225		195		1,199		30
Total consumer	94,819		101,875		22,775		97,276		3,707
Total loans(a)	$	265,621	$	284,433	$	33,669	$	273,011	$	8,716

(a) The net recorded investment (defined as recorded investment, net of the related allowance) of the impaired loans represented 82% of the unpaid principal balance at December 31, 2015.

Troubled Debt Restructurings (“Restructured Loans”):

Loans are considered restructured loans if concessions have been granted to borrowers that are experiencing financial difficulty. See Note 1 “Summary of Significant Accounting Policies," in the Corporation’s 2015 Annual Report on Form 10-K for the Corporation's accounting policy for troubled debt restructurings. The Corporation had a recorded investment of over $4 million in loans modified in troubled debt restructurings for the three months ended March 31, 2016, of which approximately $470,000 was in accrual status and $4 million was in nonaccrual pending a sustained period of repayment. The following table presents nonaccrual and performing restructured loans by loan portfolio.

	March 31, 2016				December 31, 2015
	Performing Restructured Loans		Nonaccrual Restructured Loans(a)		Performing Restructured Loans		Nonaccrual Restructured Loans(a)
	($ in Thousands)
Commercial and industrial	$	28,908	$	2,711	$	29,293	$	1,714
Commercial real estate — owner occupied	7,693		2,689		7,877		2,703
Commercial real estate — investor	20,993		1,356		21,915		3,936
Real estate construction	386		182		510		177
Residential mortgage	19,807		23,845		19,870		24,592
Home equity	6,917		4,416		7,069		4,522
Other consumer	893		33		829		40
Total	$	85,597	$	35,232	$	87,363	$	37,684

(a) Nonaccrual restructured loans have been included within nonaccrual loans.

The following table provides the number of loans modified in a troubled debt restructuring by loan portfolio during the three months ended March 31, 2016 and 2015, respectively, and the recorded investment and unpaid principal balance as of March 31, 2016 and 2015 respectively.

	Three Months Ended March 31, 2016					Three Months Ended March 31, 2015
	Number of Loans	Recorded Investment(a)		Unpaid Principal Balance(b)		Number of Loans	Recorded Investment(a)		Unpaid Principal Balance(b)
	($ in Thousands)
Commercial and industrial	7	$	1,483	$	1,522	2	$	196	$	208
Commercial real estate — owner occupied	1	125		130		5	3,585		3,641
Commercial real estate — investor	—	—		—		4	3,030		3,042
Real estate construction	1	10		55		—	—		—
Residential mortgage	30	2,062		2,124		30	2,816		2,864
Home equity	20	818		879		36	1,782		1,843
Total	59	$	4,498	$	4,710	77	$	11,409	$	11,598

(a) Represents post-modification outstanding recorded investment.

(b) Represents pre-modification outstanding recorded investment.

Restructured loan modifications may include payment schedule modifications, interest rate concessions, maturity date extensions, modification of note structure (A/B Note), non-reaffirmed Chapter 7 bankruptcies, principal reduction, or some combination of these concessions. During the three months ended March 31, 2016, restructured loan modifications of commercial and industrial, commercial real estate, and real estate construction loans primarily included maturity date extensions and payment schedule modifications. Restructured loan modifications of home equity and residential mortgage loans primarily included maturity date extensions, interest rate concessions, non-reaffirmed Chapter 7 bankruptcies, or a combination of these concessions for the three months ended March 31, 2016.

The following table provides the number of loans modified in a troubled debt restructuring during the previous twelve months which subsequently defaulted during the three months ended March 31, 2016 and 2015, respectively, as well as the recorded investment in these restructured loans as of March 31, 2016 and 2015 respectively.

	Three Months Ended March 31, 2016			Three Month Ended March 31, 2015
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
	($ in Thousands)
Commercial real estate — owner occupied	—	$	—	1	$	297
Real estate construction	1	10		—	—
Residential mortgage	7	1,151		16	1,239
Home equity	8	153		24	855
Total	16	$	1,314	41	$	2,391

All loans modified in a troubled debt restructuring are evaluated for impairment. The nature and extent of the impairment of restructured loans, including those which have experienced a subsequent payment default, is considered in the determination of an appropriate level of the allowance for loan losses.

A summary of the changes in the allowance for loan losses by portfolio segment for the three months ended March 31, 2016, was as follows.

$ in Thousands	Commercial and industrial			Commercial real estate - owner occupied			Commercial real estate - investor			Real estate construction			Residential mortgage			Home equity			Other consumer			Total
December 31, 2015	$	129,959		$	18,680		$	43,018		$	25,266		$	28,261		$	23,555		$	5,525		$	274,264
Charge offs	(16,894		)	(76		)	(176		)	(54		)	(1,390		)	(1,746		)	(909		)	(21,245		)
Recoveries	1,958			33			1,415			26			158			600			161			4,351
Net charge offs	(14,936		)	(43		)	1,239			(28		)	(1,232		)	(1,146		)	(748		)	(16,894		)
Provision for loan losses	24,470			(2,059		)	(2,233		)	(3,498		)	2,030			721			569			20,000
March 31, 2016	$	139,493		$	16,578		$	42,024		$	21,740		$	29,059		$	23,130		$	5,346		$	277,370
Allowance for loan losses:
Individually evaluated for impairment	$	14,005		$	74		$	—		$	—		$	14		$	—		$	—		$	14,093
Collectively evaluated for impairment	125,488			16,504			42,024			21,740			29,045			23,130			5,346			263,277
Total allowance for loan losses	$	139,493		$	16,578		$	42,024		$	21,740		$	29,059		$	23,130		$	5,346		$	277,370
Loans:
Individually evaluated for impairment	$	195,341		$	7,500		$	9,829		$	—		$	7,472		$	652		$	—		$	220,794
Collectively evaluated for impairment	6,316,307			909,785			3,266,904			1,184,398			5,936,985			982,342			409,725			19,006,446
Total loans	$	6,511,648		$	917,285		$	3,276,733		$	1,184,398		$	5,944,457		$	982,994		$	409,725		$	19,227,240

The allowance for credit losses is comprised of the allowance for loan losses and the allowance for unfunded commitments. The level of the allowance for loan losses represents management’s estimate of an amount appropriate to provide for probable credit losses in the loan portfolio at the balance sheet date. The allowance for unfunded commitments is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to unfunded credit facilities (including unfunded loan commitments and letters of credit) and is included in accrued expenses and other liabilities on the consolidated balance sheets. See Note 12 for additional information on the allowance for unfunded commitments.

For comparison purposes, a summary of the changes in the allowance for loan losses by portfolio segment for the year ended December 31, 2015, was as follows.

$ in Thousands	Commercial and industrial			Commercial real estate - owner occupied			Commercial real estate - investor			Real estate construction			Residential mortgage			Home equity			Other consumer			Total
December 31, 2014	$	117,635		$	16,510		$	46,333		$	20,999		$	31,926		$	26,464		$	6,435		$	266,302
Charge offs	(27,687		)	(2,645		)	(4,645		)	(750		)	(5,636		)	(7,048		)	(3,869		)	(52,280		)
Recoveries	9,821			921			4,157			2,268			1,077			3,233			765			22,242
Net charge offs	(17,866		)	(1,724		)	(488		)	1,518			(4,559		)	(3,815		)	(3,104		)	(30,038		)
Provision for loan losses	30,190			3,894			(2,827		)	2,749			894			906			2,194			38,000
December 31, 2015	$	129,959		$	18,680		$	43,018		$	25,266		$	28,261		$	23,555		$	5,525		$	274,264
Allowance for loan losses:
Individually evaluated for impairment	$	7,522		$	—		$	229		$	—		$	166		$	46		$	—		$	7,963
Collectively evaluated for impairment	122,437			18,680			42,789			25,266			28,095			23,509			5,525			266,301
Total allowance for loan losses	$	129,959		$	18,680		$	43,018		$	25,266		$	28,261		$	23,555		$	5,525		$	274,264
Loans:
Individually evaluated for impairment	$	91,569		$	6,221		$	5,460		$	—		$	6,956		$	1,281		$	—		$	111,487
Collectively evaluated for impairment	6,099,114			911,991			3,228,806			1,162,145			5,776,311			1,004,521			419,968			18,602,856
Total loans	$	6,190,683		$	918,212		$	3,234,266		$	1,162,145		$	5,783,267		$	1,005,802		$	419,968		$	18,714,343

A summary of the changes in the allowance for unfunded commitments was as follows.

	Three Months Ended March 31, 2016		Year Ended December 31, 2015
	($ in Thousands)
Allowance for Unfunded Commitments:
Balance at beginning of period	$	24,400	$	24,900
Provision for unfunded commitments	—		(500		)
Balance at end of period	$	24,400	$	24,400