Loans

3 Months Ended

Mar. 31, 2017

Receivables [Abstract]

Loans

Loans

The period end loan composition was as follows.

	March 31, 2017		December 31, 2016
	($ in Thousands)
Commercial and industrial	$	6,300,646	$	6,489,014
Commercial real estate — owner occupied	878,391		897,724
Commercial and business lending	7,179,037		7,386,738
Commercial real estate — investor	3,415,355		3,574,732
Real estate construction	1,553,205		1,432,497
Commercial real estate lending	4,968,560		5,007,229
Total commercial	12,147,597		12,393,967
Residential mortgage	6,715,282		6,332,327
Home equity	911,969		934,443
Other consumer	372,835		393,979
Total consumer	8,000,086		7,660,749
Total loans	$	20,147,683	$	20,054,716

The following table presents commercial and consumer loans by credit quality indicator at March 31, 2017.

	Pass		Special Mention		Potential Problem		Nonaccrual		Total
	($ in Thousands)
Commercial and industrial	$	5,816,591	$	100,234	$	218,930	$	164,891	$	6,300,646
Commercial real estate - owner occupied	793,177		8,295		58,994		17,925		878,391
Commercial and business lending	6,609,768		108,529		277,924		182,816		7,179,037
Commercial real estate - investor	3,336,105		21,760		49,217		8,273		3,415,355
Real estate construction	1,541,779		38		10,141		1,247		1,553,205
Commercial real estate lending	4,877,884		21,798		59,358		9,520		4,968,560
Total commercial	11,487,652		130,327		337,282		192,336		12,147,597
Residential mortgage	6,658,070		874		2,155		54,183		6,715,282
Home equity	897,452		1,085		220		13,212		911,969
Other consumer	372,064		511		—		260		372,835
Total consumer	7,927,586		2,470		2,375		67,655		8,000,086
Total	$	19,415,238	$	132,797	$	339,657	$	259,991	$	20,147,683

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

	Pass		Special Mention		Potential Problem		Nonaccrual		Total
	($ in Thousands)
Commercial and industrial	$	5,937,119	$	141,328	$	227,196	$	183,371	$	6,489,014
Commercial real estate - owner occupied	805,871		17,785		64,524		9,544		897,724
Commercial and business lending	6,742,990		159,113		291,720		192,915		7,386,738
Commercial real estate - investor	3,491,217		14,236		51,228		18,051		3,574,732
Real estate construction	1,429,083		105		2,465		844		1,432,497
Commercial real estate lending	4,920,300		14,341		53,693		18,895		5,007,229
Total commercial	11,663,290		173,454		345,413		211,810		12,393,967
Residential mortgage	6,275,162		1,314		5,615		50,236		6,332,327
Home equity	919,740		1,588		114		13,001		934,443
Other consumer	393,161		562		—		256		393,979
Total consumer	7,588,063		3,464		5,729		63,493		7,660,749
Total	$	19,251,353	$	176,918	$	351,142	$	275,303	$	20,054,716

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 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, 2017.

	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	$	6,133,822	$	752	$	923	$	258	$	164,891	$	6,300,646
Commercial real estate - owner occupied	859,496		500		470		—		17,925		878,391
Commercial and business lending	6,993,318		1,252		1,393		258		182,816		7,179,037
Commercial real estate - investor	3,405,960		920		202		—		8,273		3,415,355
Real estate construction	1,551,527		393		38		—		1,247		1,553,205
Commercial real estate lending	4,957,487		1,313		240		—		9,520		4,968,560
Total commercial	11,950,805		2,565		1,633		258		192,336		12,147,597
Residential mortgage	6,653,856		4,238		3,005		—		54,183		6,715,282
Home equity	894,245		3,406		1,106		—		13,212		911,969
Other consumer	369,455		1,013		645		1,462		260		372,835
Total consumer	7,917,556		8,657		4,756		1,462		67,655		8,000,086
Total	$	19,868,361	$	11,222	$	6,389	$	1,720	$	259,991	$	20,147,683

(a) The recorded investment in loans past due 90 days or more and still accruing totaled $2 million at March 31, 2017 (the same as the reported balances for the accruing loans noted above).

(b) Of the total nonaccrual loans,$194 million or 75% were current with respect to payment at March 31, 2017.

The following table presents loans by past due status at December 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	$	6,303,994	$	965	$	448	$	236	$	183,371	$	6,489,014
Commercial real estate - owner occupied	886,796		968		416		—		9,544		897,724
Commercial and business lending	7,190,790		1,933		864		236		192,915		7,386,738
Commercial real estate - investor	3,555,750		431		500		—		18,051		3,574,732
Real estate construction	1,431,284		264		105		—		844		1,432,497
Commercial real estate lending	4,987,034		695		605		—		18,895		5,007,229
Total commercial	12,177,824		2,628		1,469		236		211,810		12,393,967
Residential mortgage	6,273,949		7,298		844		—		50,236		6,332,327
Home equity	915,593		4,265		1,584		—		13,001		934,443
Other consumer	389,157		2,471		718		1,377		256		393,979
Total consumer	7,578,699		14,034		3,146		1,377		63,493		7,660,749
Total	$	19,756,523	$	16,662	$	4,615	$	1,613	$	275,303	$	20,054,716

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

(b) Of the total nonaccrual loans,$224 million or 81% were current with respect to payment at December 31, 2016.

The following table presents impaired loans at March 31, 2017.

	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
	($ in Thousands)
Loans with a related allowance
Commercial and industrial	$	124,408	$	135,061	$	26,686	$	130,361	$	305
Commercial real estate — owner occupied	14,918		16,833		1,766		15,045		113
Commercial and business lending	139,326		151,894		28,452		145,406		418
Commercial real estate — investor	16,018		16,497		319		16,060		371
Real estate construction	1,349		1,663		533		1,369		32
Commercial real estate lending	17,367		18,160		852		17,429		403
Total commercial	156,693		170,054		29,304		162,835		821
Residential mortgage	66,221		71,013		11,860		66,495		588
Home equity	20,775		22,958		9,528		20,964		250
Other consumer	1,301		1,327		192		1,309		6
Total consumer	88,297		95,298		21,580		88,768		844
Total loans(a)	$	244,990	$	265,352	$	50,884	$	251,603	$	1,665
Loans with no related allowance
Commercial and industrial	$	71,335	$	75,212	$	—	$	73,314	$	93
Commercial real estate — owner occupied	8,539		9,409		—		8,582		—
Commercial and business lending	79,874		84,621		—		81,896		93
Commercial real estate — investor	6,818		7,219		—		6,853		—
Real estate construction	225		225		—		225		—
Commercial real estate lending	7,043		7,444		—		7,078		—
Total commercial	86,917		92,065		—		88,974		93
Residential mortgage	6,497		7,521		—		6,507		68
Home equity	646		650		—		647		—
Other consumer	—		—		—		—		—
Total consumer	7,143		8,171		—		7,154		68
Total loans(a)	$	94,060	$	100,236	$	—	$	96,128	$	161
Total
Commercial and industrial	$	195,743	$	210,273	$	26,686	$	203,675	$	398
Commercial real estate — owner occupied	23,457		26,242		1,766		23,627		113
Commercial and business lending	219,200		236,515		28,452		227,302		511
Commercial real estate — investor	22,836		23,716		319		22,913		371
Real estate construction	1,574		1,888		533		1,594		32
Commercial real estate lending	24,410		25,604		852		24,507		403
Total commercial	243,610		262,119		29,304		251,809		914
Residential mortgage	72,718		78,534		11,860		73,002		656
Home equity	21,421		23,608		9,528		21,611		250
Other consumer	1,301		1,327		192		1,309		6
Total consumer	95,440		103,469		21,580		95,922		912
Total loans(a)	$	339,050	$	365,588	$	50,884	$	347,731	$	1,826

(a) The net recorded investment (defined as recorded investment, net of the related allowance) of the impaired loans represented 79% of the unpaid principal balance at March 31, 2017.

The following table presents impaired loans at December 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	$	101,770	$	107,813	$	21,617	$	111,211	$	2,512
Commercial real estate — owner occupied	6,595		8,641		295		7,111		274
Commercial and business lending	108,365		116,454		21,912		118,322		2,786
Commercial real estate — investor	27,196		27,677		3,541		31,142		2,124
Real estate construction	1,203		1,566		441		1,321		67
Commercial real estate lending	28,399		29,243		3,982		32,463		2,191
Total commercial	136,764		145,697		25,894		150,785		4,977
Residential mortgage	62,362		67,090		11,091		63,825		2,263
Home equity	20,651		22,805		9,312		21,825		1,114
Other consumer	1,235		1,284		186		1,294		29
Total consumer	84,248		91,179		20,589		86,944		3,406
Total loans(a)	$	221,012	$	236,876	$	46,483	$	237,729	$	8,383
Loans with no related allowance
Commercial and industrial	$	113,485	$	134,863	$	—	$	117,980	$	1,519
Commercial real estate — owner occupied	8,439		9,266		—		8,759		138
Commercial and business lending	121,924		144,129		—		126,739		1,657
Commercial real estate — investor	6,144		6,478		—		7,092		—
Real estate construction	—		—		—		—		—
Commercial real estate lending	6,144		6,478		—		7,092		—
Total commercial	128,068		150,607		—		133,831		1,657
Residential mortgage	5,974		6,998		—		6,610		184
Home equity	106		107		—		107		4
Other consumer	—		—		—		—		—
Total consumer	6,080		7,105		—		6,717		188
Total loans(a)	$	134,148	$	157,712	$	—	$	140,548	$	1,845
Total
Commercial and industrial	$	215,255	$	242,676	$	21,617	$	229,191	$	4,031
Commercial real estate — owner occupied	15,034		17,907		295		15,870		412
Commercial and business lending	230,289		260,583		21,912		245,061		4,443
Commercial real estate — investor	33,340		34,155		3,541		38,234		2,124
Real estate construction	1,203		1,566		441		1,321		67
Commercial real estate lending	34,543		35,721		3,982		39,555		2,191
Total commercial	264,832		296,304		25,894		284,616		6,634
Residential mortgage	68,336		74,088		11,091		70,435		2,447
Home equity	20,757		22,912		9,312		21,932		1,118
Other consumer	1,235		1,284		186		1,294		29
Total consumer	90,328		98,284		20,589		93,661		3,594
Total loans(a)	$	355,160	$	394,588	$	46,483	$	378,277	$	10,228

(a) The net recorded investment (defined as recorded investment, net of the related allowance) of the impaired loans represented 78% of the unpaid principal balance at December 31, 2016.

Troubled Debt Restructurings (“Restructured Loans”)

Loans are considered restructured loans if concessions have been granted to borrowers that are experiencing financial difficulty. The Corporation had a recorded investment of approximately $55 million in loans modified in troubled debt restructurings for the three months ended March 31, 2017, of which approximately $1 million was in accrual status and $54 million was in nonaccrual pending a sustained period of repayment. At March 31, 2017 the commercial and industrial nonaccrual restructured loans increased primarily due to the restructuring of several large oil and gas loans. These loans were included in nonaccrual loans at both March 31, 2017 and December 31, 2016. The following table presents nonaccrual and performing restructured loans by loan portfolio.

	March 31, 2017				December 31, 2016
	Performing Restructured Loans		Nonaccrual Restructured Loans(a)		Performing Restructured Loans		Nonaccrual Restructured Loans(a)
	($ in Thousands)
Commercial and industrial	$	30,852	$	52,079	$	31,884	$	1,276
Commercial real estate — owner occupied	5,532		2,148		5,490		2,220
Commercial real estate — investor	14,563		1,643		15,289		924
Real estate construction	327		170		359		150
Residential mortgage	18,535		20,457		18,100		21,906
Home equity	8,209		2,379		7,756		2,877
Other consumer	1,041		26		979		32
Total	$	79,059	$	78,902	$	79,857	$	29,385

(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, 2017 and 2016, respectively, and the recorded investment and unpaid principal balance as of March 31, 2017 and 2016 respectively.

	Three Months Ended March 31, 2017					Three Months Ended March 31, 2016
	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	20	$	52,326	$	60,546	7	$	1,483	$	1,522
Commercial real estate — owner occupied	1	204		204		1	125		130
Commercial real estate — investor	1	733		744		—	—		—
Real estate construction	—	—		—		1	10		55
Residential mortgage	16	1,301		1,322		30	2,062		2,124
Home equity	15	347		347		20	818		879
Total	53	$	54,911	$	63,163	59	$	4,498	$	4,710

(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, 2017, 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, 2017.

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, 2017 and 2016, respectively, as well as the recorded investment in these restructured loans as of March 31, 2017 and 2016, respectively.

	Three Months Ended March 31, 2017			Three Month Ended March 31, 2016
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
	($ in Thousands)
Real estate construction	—	$	—	1	$	10
Residential mortgage	6	383		7	1,151
Home equity	2	26		8	153
Total	8	$	409	16	$	1,314

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.

Allowance for Credit Losses

A summary of the changes in the allowance for loan losses by portfolio segment for the three months ended March 31, 2017, 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, 2016	$	140,126		$	14,034		$	45,285		$	26,932		$	27,046		$	20,364		$	4,548		$	278,335
Charge offs	(9,359		)	(5		)	(633		)	(23		)	(297		)	(509		)	(1,028		)	(11,854		)
Recoveries	4,991			24			119			34			169			682			172			6,191
Net charge offs	(4,368		)	19			(514		)	11			(128		)	173			(856		)	(5,663		)
Provision for loan losses	10,509			(2,841		)	(3,406		)	1,825			3,370			(223		)	766			10,000
March 31, 2017	$	146,267		$	11,212		$	41,365		$	28,768		$	30,288		$	20,314		$	4,458		$	282,672
Allowance for loan losses:
Individually evaluated for impairment	$	25,915		$	1,541		$	99		$	—		$	810		$	—		$	—		$	28,365
Collectively evaluated for impairment	120,352			9,671			41,266			28,768			29,478			20,314			4,458			254,307
Total allowance for loan losses	$	146,267		$	11,212		$	41,365		$	28,768		$	30,288		$	20,314		$	4,458		$	282,672
Loans:
Individually evaluated for impairment	$	162,788		$	17,098		$	7,615		$	225		$	11,086		$	647		$	—		$	199,459
Collectively evaluated for impairment	6,137,858			861,293			3,407,740			1,552,980			6,704,196			911,322			372,835			19,948,224
Total loans	$	6,300,646		$	878,391		$	3,415,355		$	1,553,205		$	6,715,282		$	911,969		$	372,835		$	20,147,683

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, 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	(71,016		)	(512		)	(1,504		)	(558		)	(4,332		)	(4,686		)	(3,831		)	(86,439		)
Recoveries	14,543			74			1,624			203			755			3,491			820			21,510
Net charge offs	(56,473		)	(438		)	120			(355		)	(3,577		)	(1,195		)	(3,011		)	(64,929		)
Provision for loan losses	66,640			(4,208		)	2,147			2,021			2,362			(1,996		)	2,034			69,000
December 31, 2016	$	140,126		$	14,034		$	45,285		$	26,932		$	27,046		$	20,364		$	4,548		$	278,335
Allowance for loan losses:
Individually evaluated for impairment	$	20,836		$	—		$	3,117		$	—		$	147		$	3		$	—		$	24,103
Collectively evaluated for impairment	119,290			14,034			42,168			26,932			26,899			20,361			4,548			254,232
Total allowance for loan losses	$	140,126		$	14,034		$	45,285		$	26,932		$	27,046		$	20,364		$	4,548		$	278,335
Loans:
Individually evaluated for impairment	$	180,965		$	8,439		$	17,322		$	—		$	7,033		$	650		$	—		$	214,409
Collectively evaluated for impairment	6,308,049			889,285			3,557,410			1,432,497			6,325,294			933,793			393,979			19,840,307
Total loans	$	6,489,014		$	897,724		$	3,574,732		$	1,432,497		$	6,332,327		$	934,443		$	393,979		$	20,054,716

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

	Three Months Ended March 31, 2017			Year Ended December 31, 2016
	($ in Thousands)
Allowance for Unfunded Commitments:
Balance at beginning of period	$	25,400		$	24,400
Provision for unfunded commitments	(1,000		)	1,000
Balance at end of period	$	24,400		$	25,400