Loans

12 Months Ended

Dec. 31, 2017

Receivables [Abstract]

Loans

Loans

Loans at December 31 are summarized below.

	2017		2016
	($ in Thousands)
Commercial and industrial	$	6,399,693	$	6,489,014
Commercial real estate - owner occupied	802,209		897,724
Commercial and business lending	7,201,902		7,386,738
Commercial real estate - investor	3,315,254		3,574,732
Real estate construction	1,451,684		1,432,497
Commercial real estate lending	4,766,938		5,007,229
Total commercial	11,968,840		12,393,967
Residential mortgage	7,546,534		6,332,327
Home equity	883,804		934,443
Other consumer	385,813		393,979
Total consumer	8,816,151		7,660,749
Total loans	$	20,784,991	$	20,054,716

The Corporation has granted loans to its directors, executive officers, or their related interests. These loans were made on substantially the same terms, including rates and collateral, as those prevailing at the time for comparable transactions with other unrelated customers, and do not involve more than a normal risk of collection. These loans to related parties are summarized below.

	2017			2016
	($ in Thousands)
Balance at beginning of year	$	27,589		$	36,597
New loans	5,329			10,677
Repayments	(7,632		)	(11,089		)
Change due to status of executive officers and directors	(5,026		)	(8,596		)
Balance at end of year	$	20,260		$	27,589

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

	Pass		Special Mention		Potential Problem		Nonaccrual		Total
	($ in Thousands)
Commercial and industrial	$	6,015,884	$	157,245	$	113,778	$	112,786	$	6,399,693
Commercial real estate - owner occupied	723,291		14,181		41,997		22,740		802,209
Commercial and business lending	6,739,175		171,426		155,775		135,526		7,201,902
Commercial real estate - investor	3,266,389		24,845		19,291		4,729		3,315,254
Real estate construction	1,421,504		29,206		—		974		1,451,684
Commercial real estate lending	4,687,893		54,051		19,291		5,703		4,766,938
Total commercial	11,427,068		225,477		175,066		141,229		11,968,840
Residential mortgage	7,490,860		426		1,616		53,632		7,546,534
Home equity	868,958		1,137		195		13,514		883,804
Other consumer	384,990		652		—		171		385,813
Total consumer	8,744,808		2,215		1,811		67,317		8,816,151
Total loans	$	20,171,876	$	227,692	$	176,877	$	208,546	$	20,784,991

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 loans	$	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, an appropriate allowance for loan losses, allowance for unfunded commitments, nonaccrual, and charge off policies. See Note 1 for the Corporation's accounting policy for loans.

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 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 December 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	$	6,286,369	$	170	$	101	$	267	$	112,786	$	6,399,693
Commercial real estate - owner occupied	779,421		48		—		—		22,740		802,209
Commercial and business lending	7,065,790		218		101		267		135,526		7,201,902
Commercial real estate - investor	3,310,000		374		—		151		4,729		3,315,254
Real estate construction	1,450,459		168		83		—		974		1,451,684
Commercial real estate lending	4,760,459		542		83		151		5,703		4,766,938
Total commercial	11,826,249		760		184		418		141,229		11,968,840
Residential mortgage	7,483,350		9,186		366		—		53,632		7,546,534
Home equity	863,465		5,688		1,137		—		13,514		883,804
Other consumer	382,186		1,227		780		1,449		171		385,813
Total consumer	8,729,001		16,101		2,283		1,449		67,317		8,816,151
Total loans	$	20,555,250	$	16,861	$	2,467	$	1,867	$	208,546	$	20,784,991

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

(b) Of the total nonaccrual loans, $135 million or 65% were current with respect to payment at December 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 loans	$	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 individually evaluated under ASC Topic 310 at December 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	$	81,649	$	83,579	$	10,838	$	58,494	$	2,629
Commercial real estate - owner occupied	23,796		23,937		2,973		12,124		736
Commercial and business lending	105,445		107,516		13,811		70,618		3,365
Commercial real estate - investor	17,823		17,862		1,597		16,924		1,694
Real estate construction	467		578		86		484		29
Commercial real estate lending	18,290		18,440		1,683		17,408		1,723
Total commercial	123,735		125,956		15,494		88,026		5,088
Residential mortgage	40,561		42,922		6,512		40,411		1,614
Home equity	10,250		10,986		3,718		10,521		549
Other consumer	1,135		1,138		122		1,140		3
Total consumer	51,946		55,046		10,352		52,072		2,166
Total loans	$	175,681	$	181,002	$	25,846	$	140,098	$	7,254
Loans with no related allowance
Commercial and industrial	$	60,595	$	82,839	$	—	$	89,275	$	492
Commercial real estate - owner occupied	2,438		2,829		—		1,948		36
Commercial and business lending	63,033		85,668		—		91,223		528
Commercial real estate - investor	1,295		1,295		—		—		45
Real estate construction	—		—		—		—		—
Commercial real estate lending	1,295		1,295		—		—		45
Total commercial	64,328		86,963		—		91,223		573
Residential mortgage	6,925		7,204		—		4,999		217
Home equity	641		645		—		540		7
Other consumer	—		—		—		—		—
Total consumer	7,566		7,849		—		5,539		224
Total loans	$	71,894	$	94,812	$	—	$	96,762	$	797
Total
Commercial and industrial	$	142,244	$	166,418	$	10,838	$	147,769	$	3,121
Commercial real estate - owner occupied	26,234		26,766		2,973		14,072		772
Commercial and business lending	168,478		193,184		13,811		161,841		3,893
Commercial real estate - investor	19,118		19,157		1,597		16,924		1,739
Real estate construction	467		578		86		484		29
Commercial real estate lending	19,585		19,735		1,683		17,408		1,768
Total commercial	188,063		212,919		15,494		179,249		5,661
Residential mortgage	47,486		50,126		6,512		45,410		1,831
Home equity	10,891		11,631		3,718		11,061		556
Other consumer	1,135		1,138		122		1,140		3
Total consumer	59,512		62,895		10,352		57,611		2,390
Total loans (a)	$	247,575	$	275,814	$	25,846	$	236,860	$	8,051

(a) The net recorded investment (defined as recorded investment, net of the related allowance) of the impaired loans represented 80% of the unpaid principal balance at December 31, 2017.

The following table presents impaired loans individually evaluated under ASC Topic 310 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	$	99,786	$	105,175	$	21,047	$	104,808	$	2,345
Commercial real estate - owner occupied	5,544		5,568		23		5,840		263
Commercial and business lending	105,330		110,743		21,070		110,648		2,608
Commercial real estate - investor	26,764		27,031		3,410		30,665		2,120
Real estate construction	509		648		84		529		31
Commercial real estate lending	27,273		27,679		3,494		31,194		2,151
Total commercial	132,603		138,422		24,564		141,842		4,759
Residential mortgage	37,902		39,979		6,438		38,608		1,551
Home equity	11,070		11,909		3,943		11,420		627
Other consumer	1,012		1,023		109		1,021		2
Total consumer	49,984		52,911		10,490		51,049		2,180
Total loans	$	182,587	$	191,333	$	35,054	$	192,891	$	6,939
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	$	134,148	$	157,712	$	—	$	140,548	$	1,845
Total
Commercial and industrial	$	213,271	$	240,038	$	21,047	$	222,788	$	3,864
Commercial real estate - owner occupied	13,983		14,834		23		14,599		401
Commercial and business lending	227,254		254,872		21,070		237,387		4,265
Commercial real estate - investor	32,908		33,509		3,410		37,757		2,120
Real estate construction	509		648		84		529		31
Commercial real estate lending	33,417		34,157		3,494		38,286		2,151
Total commercial	260,671		289,029		24,564		275,673		6,416
Residential mortgage	43,876		46,977		6,438		45,218		1,735
Home equity	11,176		12,016		3,943		11,527		631
Other consumer	1,012		1,023		109		1,021		2
Total consumer	56,064		60,016		10,490		57,766		2,368
Total loans (a)	$	316,735	$	349,045	$	35,054	$	333,439	$	8,784

(a) The net recorded investment (defined as recorded investment, net of the related allowance) of the impaired loans represented 81% 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. See Note 1 for the Corporation's accounting policy for troubled debt restructurings. The Corporation had a recorded investment of approximately $9 million in loans modified in troubled debt restructurings for the year ended December 31, 2017, of which approximately $6 million were in accrual status and $3 million were in nonaccrual pending a sustained period of repayment. As of December 31, 2017 there was approximately $9 million of commitments to lend additional funds to borrowers with restructured loans. The following table presents nonaccrual and performing restructured loans by loan portfolio.

	December 31, 2017				December 31, 2016				December 31, 2015
	Performing Restructured Loans		Nonaccrual Restructured Loans(a)		Performing Restructured Loans		Nonaccrual Restructured Loans(a)		Performing Restructured Loans		Nonaccrual Restructured Loans(a)
	($ in Thousands)
Commercial and industrial	$	30,047	$	1,776	$	31,884	$	1,276	$	29,293	$	1,714
Commercial real estate - owner occupied	3,989		—		5,490		2,220		7,877		2,703
Commercial real estate - investor	14,389		—		15,289		924		21,915		3,936
Real estate construction	310		157		359		150		510		177
Residential mortgage	17,068		18,991		18,100		21,906		19,870		24,592
Home equity	7,705		2,537		7,756		2,877		7,069		4,522
Other consumer	1,110		25		979		32		829		40
Total restructured loans	$	74,618	$	23,486	$	79,857	$	29,385	$	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 years ended December 31, 2017, 2016 and 2015, respectively, and the recorded investment and unpaid principal balance as of December 31, 2017, 2016 and 2015, respectively.

	Year Ended December 31, 2017					Year Ended December 31, 2016					Year Ended December 31, 2015
	Number of Loans	Recorded Investment(a)		Unpaid Principal Balance(b)		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	8	$	3,991	$	6,339	8	$	1,509	$	1,526	12	$	2,219	$	2,900
Commercial real estate - owner occupied	2	690		690		1	116		122		5	3,694		3,901
Commercial real estate - investor	—	—		—		—	—		—		5	21,573		21,640
Real estate construction	—	—		—		1	65		91		4	78		79
Residential mortgage	45	4,238		4,364		63	5,535		5,792		97	10,464		10,996
Home equity	22	507		507		57	2,030		2,084		88	3,103		3,249
Other consumer	—	—		—		1	15		16		—	—		—
Total	77	$	9,426	$	11,900	131	$	9,270	$	9,631	211	$	41,131	$	42,765

(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. For the year ended December 31, 2017, restructured loan modifications of commercial and industrial, commercial real estate, and real estate construction loans primarily included maturity date extensions, interest rate concessions, payment schedule modifications, or a combination of these concessions. 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 year ended December 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 year ended December 31, 2017, 2016 and 2015, respectively, as well as the recorded investment in these restructured loans as of December 31, 2017, 2016 and 2015, respectively.

	Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2015
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
	($ in Thousands)
Commercial and industrial	2	$	—	—	$	—	2	$	197
Residential mortgage	36	3,137		44	4,102		61	6,815
Home equity	27	735		23	457		28	1,220
Other consumer	1	7		1	15		—	—
Total	66	$	3,879	68	$	4,574	91	$	8,232

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

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. See Note 1 for the Corporation's accounting policy on the allowance for loan losses. 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 16 for additional information on the allowance for unfunded commitments.

A summary of the changes in the allowance for loan losses by portfolio segment for the year ended December 31, 2017, was as follows.

	Commercial and industrial			Commercial real estate - owner occupied			Commercial real estate - investor			Real estate construction			Residential mortgage			Home equity			Other consumer			Total
	($ in Thousands)
December 31, 2016	$	140,126		$	14,034		$	45,285		$	26,932		$	27,046		$	20,364		$	4,548		$	278,335
Charge offs	(44,533		)	(344		)	(991		)	(604		)	(2,611		)	(2,724		)	(4,439		)	(56,246		)
Recoveries	11,465			173			242			74			927			3,194			716			16,791
Net charge offs	(33,068		)	(171		)	(749		)	(530		)	(1,684		)	470			(3,723		)	(39,455		)
Provision for loan losses	16,010			(3,511		)	(3,477		)	7,968			4,245			1,292			4,473			27,000
December 31, 2017	$	123,068		$	10,352		$	41,059		$	34,370		$	29,607		$	22,126		$	5,298		$	265,880
Allowance for loan losses
Individually evaluated for impairment	$	10,838		$	2,973		$	1,597		$	86		$	6,512		$	3,718		$	122		$	25,846
Collectively evaluated for impairment	112,230			7,379			39,462			34,284			23,095			18,408			5,176			240,034
Total allowance for loan losses	$	123,068		$	10,352		$	41,059		$	34,370		$	29,607		$	22,126		$	5,298		$	265,880
Loans
Individually evaluated for impairment	$	142,244		$	26,234		$	19,118		$	467		$	47,486		$	10,891		$	1,135		$	247,575
Collectively evaluated for impairment	6,257,449			775,975			3,296,136			1,451,217			7,499,048			872,913			384,678			20,537,416
Total loans	$	6,399,693		$	802,209		$	3,315,254		$	1,451,684		$	7,546,534		$	883,804		$	385,813		$	20,784,991

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.

	Commercial and industrial			Commercial real estate - owner occupied			Commercial real estate - investor			Real estate construction			Residential mortgage			Home equity			Other consumer			Total
	($ in Thousands)
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	$	21,047		$	23		$	3,410		$	84		$	6,438		$	3,943		$	109		$	35,054
Collectively evaluated for impairment	119,079			14,011			41,875			26,848			20,608			16,421			4,439			243,281
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	$	213,271		$	13,983		$	32,908		$	509		$	43,876		$	11,176		$	1,012		$	316,735
Collectively evaluated for impairment	6,275,743			883,741			3,541,824			1,431,988			6,288,451			923,267			392,967			19,737,981
Total loans	$	6,489,014		$	897,724		$	3,574,732		$	1,432,497		$	6,332,327		$	934,443		$	393,979		$	20,054,716

The allowance related to the oil and gas portfolio was $27 million at December 31, 2017 and represented 4.5% of total oil and gas loans.

	Year Ended December 31, 2017			Year Ended December 31, 2016
	($ in Millions)
Balance at beginning of period	$	38		$	42
Charge offs	(25		)	(59		)
Recoveries	—			—
Net Charge offs	(25		)	(59		)
Provision for loan losses	14			55
Balance at end of period	$	27		$	38
Allowance for loan losses
Individually evaluated for impairment	$	5		$	14
Collectively evaluated for impairment	22			24
Total allowance for loan losses	$	27		$	38
Loans
Individually evaluated for impairment	$	77		$	147
Collectively evaluated for impairment	523			521
Total loans	$	600		$	668

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 16 for additional information on the allowance for unfunded commitments and see Note 1 for the Corporation's accounting policy for allowance for unfunded commitments. A summary of the changes in the allowance for unfunded commitments was as follows.

	Years Ended December 31,
	2017			2016		2015
	($ in Thousands)
Allowance for Unfunded Commitments
Balance at beginning of period	$	25,400		$	24,400	$	24,900
Provision for unfunded commitments	(1,000		)	1,000		(500		)
Balance at end of period	$	24,400		$	25,400	$	24,400