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Loans
 6 Months Ended
Jun. 30, 2019
Receivables [Abstract]  
Loans Loans
The period end loan composition was as follows:
 
June 30, 2019
 
December 31, 2018
 
($ in Thousands)
Commercial and industrial
$
7,579,384

 
$
7,398,044

Commercial real estate — owner occupied
942,811

 
920,443

Commercial and business lending
8,522,194

 
8,318,487

Commercial real estate — investor
3,779,201

 
3,751,554

Real estate construction
1,394,815

 
1,335,031

Commercial real estate lending
5,174,016

 
5,086,585

Total commercial
13,696,210

 
13,405,072

Residential mortgage
8,277,479

 
8,277,712

Home equity
916,213

 
894,473

Other consumer
360,065

 
363,171

Total consumer
9,553,757

 
9,535,357

Total loans(a)
$
23,249,967

 
$
22,940,429


(a) Includes $2 million and $5 million of purchased credit-impaired loans at June 30, 2019 and December 31, 2018, respectively.

The following table presents commercial and consumer loans by credit quality indicator at June 30, 2019:
 
Pass
 
Special Mention
 
Potential Problem
 
Nonaccrual
 
Total
 
($ in Thousands)
Commercial and industrial
$
7,387,549

 
$
49,026

 
$
58,658

 
$
84,151

 
$
7,579,384

Commercial real estate - owner occupied
909,641

 
8,362

 
24,237

 
571

 
942,811

Commercial and business lending
8,297,189

 
57,388

 
82,895

 
84,722

 
8,522,194

Commercial real estate - investor
3,628,197

 
71,753

 
77,766

 
1,485

 
3,779,201

Real estate construction
1,382,502

 
8,720

 
3,166

 
427

 
1,394,815

Commercial real estate lending
5,010,699

 
80,473

 
80,932

 
1,912

 
5,174,016

Total commercial
13,307,888

 
137,860

 
163,828

 
86,634

 
13,696,210

Residential mortgage
8,206,689

 
641

 
1,983

 
68,166

 
8,277,479

Home equity
903,694

 
652

 
32

 
11,835

 
916,213

Other consumer
359,487

 
506

 
—

 
72

 
360,065

Total consumer
9,469,870

 
1,799

 
2,014

 
80,073

 
9,553,757

Total loans
$
22,777,758

 
$
139,660

 
$
165,842

 
$
166,707

 
$
23,249,967

The following table presents commercial and consumer loans by credit quality indicator at December 31, 2018:
 
Pass
 
Special Mention
 
Potential Problem
 
Nonaccrual
 
Total
 
($ in Thousands)
Commercial and industrial
$
7,162,370

 
$
78,075

 
$
116,578

 
$
41,021

 
$
7,398,044

Commercial real estate - owner occupied
854,265

 
6,257

 
55,964

 
3,957

 
920,443

Commercial and business lending
8,016,635

 
84,332

 
172,542

 
44,978

 
8,318,487

Commercial real estate - investor
3,653,642

 
28,479

 
67,481

 
1,952

 
3,751,554

Real estate construction
1,321,447

 
8,771

 
3,834

 
979

 
1,335,031

Commercial real estate lending
4,975,089

 
37,249

 
71,315

 
2,931

 
5,086,585

Total commercial
12,991,724

 
121,582

 
243,856

 
47,909

 
13,405,072

Residential mortgage
8,203,729

 
434

 
5,975

 
67,574

 
8,277,712

Home equity
880,808

 
1,223

 
103

 
12,339

 
894,473

Other consumer
362,343

 
749

 
—

 
79

 
363,171

Total consumer
9,446,881

 
2,406

 
6,078

 
79,992

 
9,535,357

Total loans
$
22,438,605

 
$
123,988

 
$
249,935

 
$
127,901

 
$
22,940,429


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 exhibiting 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 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, which may jeopardize liquidation of the debt, and are characterized by the distinct possibility the Corporation will sustain some loss if the deficiencies are not corrected. Lastly, management considers a loan to be impaired when it is probable 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 commercial and consumer loan relationships in nonaccrual status or those with 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 June 30, 2019:
 
Accruing
 
 
 
 
 
Current
 
30-59 Days
Past Due
 
60-89 Days
Past Due
 
90 Days or
More
Past Due
 
Nonaccrual(a)
 
Total
 
($ in Thousands)
Commercial and industrial
$
7,490,030

 
$
4,769

 
$
139

 
$
293

 
$
84,151

 
$
7,579,384

Commercial real estate - owner occupied
940,222

 
2,018

 
—

 
—

 
571

 
942,811

Commercial and business lending
8,430,252

 
6,787

 
139

 
293

 
84,722

 
8,522,194

Commercial real estate - investor
3,776,334

 
1,382

 
—

 
—

 
1,485

 
3,779,201

Real estate construction
1,394,237

 
131

 
19

 
—

 
427

 
1,394,815

Commercial real estate lending
5,170,572

 
1,513

 
19

 
—

 
1,912

 
5,174,016

Total commercial
13,600,824

 
8,300

 
159

 
293

 
86,634

 
13,696,210

Residential mortgage
8,199,557

 
9,199

 
558

 
—

 
68,166

 
8,277,479

Home equity
898,550

 
5,176

 
652

 
—

 
11,835

 
916,213

Other consumer
356,360

 
1,150

 
688

 
1,795

 
72

 
360,065

Total consumer
9,454,467

 
15,524

 
1,898

 
1,795

 
80,073

 
9,553,757

Total loans
$
23,055,291

 
$
23,824

 
$
2,057

 
$
2,088

 
$
166,707

 
$
23,249,967


(a) Of the total nonaccrual loans, $90 million, or 54%, were current with respect to payment at June 30, 2019.

The following table presents loans by past due status at December 31, 2018:
 
Accruing
 
 
 
 
 
Current
 
30-59 Days
Past Due
 
60-89 Days
Past Due
 
90 Days or
More
Past Due
 
Nonaccrual(a)
 
Total
 
($ in Thousands)
Commercial and industrial
$
7,356,187

 
$
187

 
$
338

 
$
311

 
$
41,021

 
$
7,398,044

Commercial real estate - owner occupied
913,787

 
2,580

 
119

 
—

 
3,957

 
920,443

Commercial and business lending
8,269,974

 
2,767

 
457

 
311

 
44,978

 
8,318,487

Commercial real estate - investor
3,745,835

 
2,954

 
813

 
—

 
1,952

 
3,751,554

Real estate construction
1,333,722

 
330

 
—

 
—

 
979

 
1,335,031

Commercial real estate lending
5,079,557

 
3,284

 
813

 
—

 
2,931

 
5,086,585

Total commercial
13,349,531

 
6,051

 
1,270

 
311

 
47,909

 
13,405,072

Residential mortgage
8,200,432

 
9,272

 
434

 
—

 
67,574

 
8,277,712

Home equity
876,085

 
4,826

 
1,223

 
—

 
12,339

 
894,473

Other consumer
358,970

 
1,401

 
868

 
1,853

 
79

 
363,171

Total consumer
9,435,487

 
15,499

 
2,525

 
1,853

 
79,992

 
9,535,357

Total loans
$
22,785,019

 
$
21,550

 
$
3,795

 
$
2,165

 
$
127,901

 
$
22,940,429

(a) Of the total nonaccrual loans, $74 million, or 58%, were current with respect to payment at December 31, 2018.
The following table presents impaired loans individually evaluated under ASC Topic 310, excluding $2 million of purchased credit-impaired loans, at June 30, 2019:
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
($ in Thousands)
Loans with a related allowance
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
83,561

 
$
94,759

 
$
22,890

 
$
48,118

 
$
1,104

Commercial real estate — owner occupied
1,970

 
1,977

 
27

 
2,017

 
51

Commercial and business lending
85,531

 
96,735

 
22,917

 
50,135

 
1,155

Commercial real estate — investor
776

 
782

 
103

 
786

 
17

Real estate construction
417

 
497

 
56

 
422

 
14

Commercial real estate lending
1,193

 
1,279

 
159

 
1,208

 
31

Total commercial
86,724

 
98,015

 
23,076

 
51,343

 
1,186

Residential mortgage
45,856

 
49,110

 
5,693

 
45,953

 
991

Home equity
9,609

 
10,600

 
3,233

 
11,042

 
240

Other consumer
1,225

 
1,227

 
185

 
1,227

 
—

Total consumer
56,690

 
60,938

 
9,112

 
58,222

 
1,231

Total loans with a related allowance
$
143,414

 
$
158,952

 
$
32,188

 
$
109,565

 
$
2,417

Loans with no related allowance
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
16,505

 
$
33,999

 
$
—

 
$
23,303

 
$
25

Commercial real estate — owner occupied
503

 
735

 
—

 
569

 
3

Commercial and business lending
17,007

 
34,734

 
—

 
23,872

 
28

Commercial real estate — investor
635

 
1,805

 
—

 
638

 
—

Real estate construction
—

 
—

 
—

 
—

 
—

Commercial real estate lending
635

 
1,805

 
—

 
638

 
—

Total commercial
17,642

 
36,539

 
—

 
24,511

 
28

Residential mortgage
10,416

 
10,584

 
—

 
8,183

 
178

Home equity
1,017

 
1,036

 
—

 
—

 
11

Other consumer
—

 
—

 
—

 
—

 
—

Total consumer
11,432

 
11,620

 
—

 
8,183

 
189

Total loans with no related allowance
$
29,075

 
$
48,159

 
$
—

 
$
32,694

 
$
216

Total
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
100,066

 
$
128,758

 
$
22,890

 
$
71,421

 
$
1,129

Commercial real estate — owner occupied
2,473

 
2,712

 
27

 
2,586

 
54

Commercial and business lending
102,538

 
131,470

 
22,917

 
74,007

 
1,183

Commercial real estate — investor
1,411

 
2,587

 
103

 
1,424

 
17

Real estate construction
417

 
497

 
56

 
422

 
14

Commercial real estate lending
1,828

 
3,084

 
159

 
1,847

 
31

Total commercial
104,367

 
134,554

 
23,076

 
75,853

 
1,214

Residential mortgage
56,272

 
59,694

 
5,693

 
54,136

 
1,168

Home equity
10,626

 
11,636

 
3,233

 
11,042

 
251

Other consumer
1,225

 
1,227

 
185

 
1,227

 
—

Total consumer
68,122

 
72,557

 
9,112

 
66,405

 
1,420

Total loans(a)
$
172,489

 
$
207,111

 
$
32,188

 
$
142,258

 
$
2,633

(a) The net recorded investment (defined as recorded investment, net of the related allowance) of the impaired loans represented 68% of the unpaid principal balance at June 30, 2019.
The following table presents impaired loans individually evaluated under ASC Topic 310, excluding $5 million of purchased credit-impaired loans, at December 31, 2018: 
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
($ in Thousands)
Loans with a related allowance
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
40,747

 
$
42,131

 
$
5,721

 
$
52,461

 
$
1,167

Commercial real estate — owner occupied
2,080

 
2,087

 
24

 
2,179

 
104

Commercial and business lending
42,827

 
44,218

 
5,745

 
54,640

 
1,271

Commercial real estate — investor
799

 
805

 
28

 
827

 
38

Real estate construction
510

 
589

 
75

 
533

 
32

Commercial real estate lending
1,309

 
1,394

 
103

 
1,360

 
70

Total commercial
44,136

 
45,612

 
5,848

 
56,000

 
1,341

Residential mortgage
41,691

 
45,149

 
6,023

 
42,687

 
1,789

Home equity
9,601

 
10,539

 
3,312

 
10,209

 
566

Other consumer
1,181

 
1,183

 
121

 
1,184

 
3

Total consumer
52,473

 
56,871

 
9,456

 
54,080

 
2,358

Total loans with a related allowance
$
96,609

 
$
102,483

 
$
15,304

 
$
110,079

 
$
3,699

Loans with no related allowance
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
22,406

 
$
45,024

 
$
—

 
$
21,352

 
$
(344
)
Commercial real estate — owner occupied
3,772

 
4,823

 
—

 
3,975

 
—

Commercial and business lending
26,178

 
49,847

 
—

 
25,327

 
(344
)
Commercial real estate — investor
1,585

 
2,820

 
—

 
980

 
68

Real estate construction
—

 
—

 
—

 
—

 
—

Commercial real estate lending
1,585

 
2,820

 
—

 
980

 
68

Total commercial
27,763

 
52,667

 
—

 
26,307

 
(276
)
Residential mortgage
8,795

 
9,074

 
—

 
8,790

 
203

Home equity
523

 
542

 
—

 
530

 
—

Other consumer
—

 
—

 
—

 
—

 
—

Total consumer
9,318

 
9,616

 
—

 
9,320

 
203

Total loans with no related allowance
$
37,081

 
$
62,283

 
$
—

 
$
35,627

 
$
(73
)
Total
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
63,153

 
$
87,155

 
$
5,721

 
$
73,813

 
$
823

Commercial real estate — owner occupied
5,852

 
6,910

 
24

 
6,154

 
104

Commercial and business lending
69,005

 
94,065

 
5,745

 
79,967

 
927

Commercial real estate — investor
2,384

 
3,625

 
28

 
1,807

 
106

Real estate construction
510

 
589

 
75

 
533

 
32

Commercial real estate lending
2,894

 
4,214

 
103

 
2,340

 
138

Total commercial
71,899

 
98,279

 
5,848

 
82,307

 
1,065

Residential mortgage
50,486

 
54,223

 
6,023

 
51,477

 
1,992

Home equity
10,124

 
11,081

 
3,312

 
10,739

 
566

Other consumer
1,181

 
1,183

 
121

 
1,184

 
3

Total consumer
61,791

 
66,487

 
9,456

 
63,400

 
2,561

Total loans(a)
$
133,690

 
$
164,766

 
$
15,304

 
$
145,707

 
$
3,626

(a) The net recorded investment (defined as recorded investment, net of the related allowance) of the impaired loans represented 72% of the unpaid principal balance at December 31, 2018.
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 $6 million in loans modified in troubled debt restructurings during the six months ended June 30, 2019, of which $1 million were in accrual status and approximately $5 million were in nonaccrual pending a sustained period of repayment.
The following table presents nonaccrual and performing restructured loans by loan portfolio:
 
June 30, 2019
 
December 31, 2018
 
Performing
Restructured
Loans
 
Nonaccrual
Restructured
Loans(a)
 
Performing
Restructured
Loans
 
Nonaccrual
Restructured
Loans(a)
 
($ in Thousands)
Commercial and industrial
$
16,850

 
$
101

 
$
25,478

 
$
249

Commercial real estate — owner occupied
1,970

 
—

 
2,080

 
—

Commercial real estate — investor
315

 
461

 
799

 
933

Real estate construction
232

 
185

 
311

 
198

Residential mortgage
17,645

 
21,213

 
16,036

 
22,279

Home equity
7,247

 
2,369

 
7,385

 
2,627

Other consumer
1,222

 
3

 
1,174

 
6

   Total restructured loans
$
45,481

 
$
24,332

 
$
53,263

 
$
26,292

(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, the recorded investment and unpaid principal balance for the six months ended June 30, 2019 and 2018:
 
Six Months Ended June 30, 2019
 
Six Months Ended June 30, 2018
 
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
1

 
$
196

 
$
196

 
1

 
$
47

 
$
47

Commercial real estate — investor
—

 
—

 
—

 
1

 
984

 
1,031

Residential mortgage
38

 
5,665

 
5,682

 
10

 
2,064

 
2,064

Home equity
18

 
499

 
506

 
10

 
935

 
949

Other consumer
1

 
10

 
10

 
1

 
5

 
8

   Total loans modified
58

 
$
6,370

 
$
6,394

 
23

 
$
4,035

 
$
4,099


(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 six months ended June 30, 2019, 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 residential mortgage, home equity, and other consumer loans primarily included maturity date extensions, interest rate concessions, non-reaffirmed Chapter 7 bankruptcies, or a combination of these concessions for the six months ended June 30, 2019.
The following table provides the number of loans modified in a troubled debt restructuring during the previous twelve months which subsequently defaulted during the six months ended June 30, 2019 and 2018 and the recorded investment in these restructured loans as of June 30, 2019 and 2018:
 
Six Months Ended June 30, 2019
 
Six Months Ended June 30, 2018
 
Number of
Loans
 
Recorded
Investment
 
Number of
Loans
 
Recorded
Investment
 
($ in Thousands)
Commercial and industrial
—

 
$
—

 
3

 
$
—

Residential mortgage
16

 
2,813

 
8

 
2,219

Home equity
14

 
477

 
21

 
1,409

   Total loans modified
30

 
$
3,290

 
32

 
$
3,628


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, are 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. 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.
The following table presents a summary of the changes in the allowance for loan losses by portfolio segment for the six months ended June 30, 2019:
($ 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, 2018
$
108,835

$
9,255

$
40,844

$
28,240

$
25,595

$
19,266

$
5,988

$
238,023

Charge offs
(26,255
)
(222
)
—

(60
)
(1,260
)
(725
)
(2,726
)
(31,247
)
Recoveries
6,650

1,312

34

211

438

1,273

467

10,384

Net Charge offs
(19,605
)
1,089

34

151

(822
)
548

(2,259
)
(20,864
)
Provision for loan losses
23,970

(1,110
)
10

(1,267
)
(3,421
)
(4,241
)
2,558

16,500

June 30, 2019
$
113,199

$
9,235

$
40,888

$
27,124

$
21,352

$
15,573

$
6,287

$
233,659

Allowance for loan losses
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
22,890

$
27

$
103

$
56

$
5,693

$
3,233

$
185

$
32,188

Collectively evaluated for impairment
90,309

9,207

40,785

27,068

15,659

12,340

6,102

201,470

Total allowance for loan losses
$
113,199

$
9,235

$
40,888

$
27,124

$
21,352

$
15,573

$
6,287

$
233,659

Loans
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
100,066

$
2,473

$
1,411

$
417

$
56,272

$
10,626

$
1,225

$
172,489

Collectively evaluated for impairment
7,478,790

939,647

3,777,511

1,394,384

8,220,602

905,560

358,841

23,075,334

Acquired and accounted for under ASC 310-30(a)
528

691

279

14

605

27

—

2,145

Total loans
$
7,579,384

$
942,811

$
3,779,201

$
1,394,815

$
8,277,479

$
916,213

$
360,065

$
23,249,967

(a) Loans acquired in business combinations and accounted for under ASC Subtopic 310-30 "Receivables — Loans and Debt Securities Acquired with Deteriorated Credit Quality."
For comparison purposes, a summary of the changes in the allowance for loan losses by portfolio segment for the year ended December 31, 2018, 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, 2017
$
123,068

$
10,352

$
41,059

$
34,370

$
29,607

$
22,126

$
5,298

$
265,880

Charge offs
(30,837
)
(1,363
)
(7,914
)
(298
)
(1,627
)
(3,236
)
(5,261
)
(50,536
)
Recoveries
13,714

639

668

446

1,271

2,628

812

20,179

Net Charge offs
(17,123
)
(724
)
(7,246
)
149

(355
)
(608
)
(4,448
)
(30,358
)
Provision for loan losses
2,890

(373
)
7,031

(6,279
)
(3,657
)
(2,252
)
5,138

2,500

December 31, 2018
$
108,835

$
9,255

$
40,844

$
28,240

$
25,595

$
19,266

$
5,988

$
238,023

Allowance for loan losses
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
5,721

$
24

$
28

$
75

$
6,023

$
3,312

$
121

$
15,304

Collectively evaluated for impairment
103,114

9,231

40,816

28,165

19,572

15,954

5,867

222,719

Total allowance for loan losses
$
108,835

$
9,255

$
40,844

$
28,240

$
25,595

$
19,266

$
5,988

$
238,023

Loans
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
63,153

$
5,852

$
2,384

$
510

$
50,486

$
10,124

$
1,181

$
133,690

Collectively evaluated for impairment
7,331,898

913,708

3,748,883

1,334,500

8,226,642

884,266

361,990

22,801,887

Acquired and accounted for under ASC 310-30(a)
2,994

883

287

21

584

83

—

4,853

Total loans
$
7,398,044

$
920,443

$
3,751,554

$
1,335,031

$
8,277,712

$
894,473

$
363,171

$
22,940,429

(a) Loans acquired in business combinations and accounted for under ASC Subtopic 310-30 "Receivables — Loans and Debt Securities Acquired with Deteriorated Credit Quality."
The allowance related to the oil and gas portfolio was $25 million, or 3.8% of total oil and gas loans, and $12 million, or 1.6% of total oil and gas loans, at June 30, 2019 and December 31, 2018, respectively.
($ in Millions)
Six Months Ended June 30, 2019
 
Year Ended December 31, 2018
Balance at beginning of period
$
12

 
$
27

Charge offs
(17
)
 
(24
)
Recoveries
4

 
6

Net Charge offs
(13
)
 
(17
)
Provision for loan losses
26

 
2

Balance at end of period
$
25

 
$
12

Allowance for loan losses
 
 
 
Individually evaluated for impairment
$
16

 
$
—

Collectively evaluated for impairment
9

 
12

Total allowance for loan losses
$
25

 
$
12

Loans
 
 
 
Individually evaluated for impairment
$
63

 
$
22

Collectively evaluated for impairment
594

 
725

Total loans
$
657

 
$
747



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. The following table presents a summary of the changes in the allowance for unfunded commitments:
 
Six Months Ended June 30, 2019
 
Year Ended December 31, 2018
 
($ in Thousands)
Allowance for Unfunded Commitments
 
 
 
Balance at beginning of period
$
24,336

 
$
24,400

Provision for unfunded commitments
(2,500
)
 
(2,500
)
Amount recorded at acquisition
70

 
2,436

Balance at end of period
$
21,907

 
$
24,336


Loans Acquired in Acquisition
Loans acquired in a business combination are recorded at estimated fair value on their purchase date without a carryover of the related allowance for loan losses. Acquired loans are segregated into two types:
•
Performing loans are accounted for in accordance with ASC Topic 310-20 "Nonrefundable Fees and Other Costs" as these loans do not have evidence of credit deterioration since origination.
•
Nonperforming loans are accounted for in accordance with ASC Topic 310-30 as they display significant credit deterioration since origination.
For performing loans the difference between the estimated fair value of the loans and the principal outstanding is accreted over the remaining life of the loans.
In accordance with ASC 310-30, purchased credit-impaired loans are pooled by loan type and the difference between contractually required payments at acquisition and the cash flows expected to be collected is referred to as the non-accretable difference. Further, any excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized into interest income over the remaining life of the loan pools when there is a reasonable expectation about the amount and timing of such cash flows. If a reasonable expectation on the amount or timing of such cash flows cannot be determined, accretion of the fair value discount for nonperforming loans will be recognized using the cost recovery method of accounting.
Changes in the accretable yield for loans acquired and accounted for under ASC Topic 310-30 were as follows for the six months ended June 30, 2019 and for the year ended December 31, 2018:
 
Six Months Ended June 30, 2019
 
Year Ended December 31, 2018
 
($ in Thousands)
Changes in Accretable Yield
 
 
 
Balance at beginning of period
$
1,482

 
$
—

Purchases
—

 
4,853

Accretion
(812
)
 
(4,954
)
Net reclassification from non-accretable yield
23

 
1,605

Other(a)
—

 
(22
)
Balance at end of period
$
694

 
$
1,482


(a) Primarily includes charge-offs which are accounted for under ASC Subtopic 310-30 "Receivables — Loans and Debt Securities Acquired with Deteriorated Credit Quality."
For loans acquired, the fair value of purchased credit-impaired loans, on the acquisition date, was determined based on assigned risk ratings, expected cash flows and the fair value of loan collateral. The fair value of loans that were non-impaired was determined based on estimates of losses on defaults and other market factors. The Corporation's Huntington branch acquisition included no purchased credit-impaired loans.
At June 30, 2019, the Corporation had a total of approximately $17 million in net unaccreted purchase discount, of which approximately $16 million was related to performing loans and approximately $1 million was related to the Corporation's purchased credit-impaired loans. At December 31, 2018, the Corporation had a total of approximately $20 million in net unaccreted purchase discount, of which approximately $18 million was related to performing loans and approximately $2 million was related to the Corporation's purchased credit-impaired loans.