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Loans
 9 Months Ended
Sep. 30, 2019
Receivables [Abstract]  
Loans Loans
The period end loan composition was as follows:
($ in Thousands)
September 30, 2019
 
December 31, 2018
Commercial and industrial
$
7,495,623

 
$
7,398,044

Commercial real estate — owner occupied
915,524

 
920,443

Commercial and business lending
8,411,147

 
8,318,487

Commercial real estate — investor
3,803,277

 
3,751,554

Real estate construction
1,356,508

 
1,335,031

Commercial real estate lending
5,159,784

 
5,086,585

Total commercial
13,570,932

 
13,405,072

Residential mortgage
7,954,801

 
8,277,712

Home equity
879,642

 
894,473

Other consumer
349,335

 
363,171

Total consumer
9,183,778

 
9,535,357

Total loans(a)(b)
$
22,754,710

 
$
22,940,429


(a) During the third quarter of 2019, the Corporation sold approximately $240 million of portfolio mortgages as well as $33 million of nonaccrual and performing restructured loans.
(b) Includes $2 million and $5 million of purchased credit-impaired loans at September 30, 2019 and December 31, 2018, respectively.

The following table presents commercial and consumer loans by credit quality indicator at September 30, 2019:
($ in Thousands)
Pass
 
Special Mention
 
Potential Problem
 
Nonaccrual
 
Total
Commercial and industrial
$
7,293,226

 
$
86,434

 
$
59,427

 
$
56,536

 
$
7,495,623

Commercial real estate - owner occupied
866,287

 
26,546

 
22,624

 
68

 
915,524

Commercial and business lending
8,159,513

 
112,980

 
82,051

 
56,604

 
8,411,147

Commercial real estate - investor
3,634,780

 
114,343

 
49,353

 
4,800

 
3,803,277

Real estate construction
1,332,930

 
22,492

 
544

 
542

 
1,356,508

Commercial real estate lending
4,967,710

 
136,835

 
49,897

 
5,342

 
5,159,784

Total commercial
13,127,223

 
249,815

 
131,948

 
61,946

 
13,570,932

Residential mortgage
7,896,073

 
430

 
1,242

 
57,056

 
7,954,801

Home equity
868,854

 
961

 
—

 
9,828

 
879,642

Other consumer
348,498

 
728

 
—

 
109

 
349,335

Total consumer
9,113,424

 
2,119

 
1,242

 
66,993

 
9,183,778

Total loans(a)
$
22,240,647

 
$
251,934

 
$
133,189

 
$
128,939

 
$
22,754,710

(a) During the third quarter of 2019, the Corporation sold approximately $240 million of portfolio mortgages. In addition, the Corporation sold $33 million of residential mortgages and home equity loans, of which $21 million were pass loans and $12 million were nonaccrual loans.

The following table presents commercial and consumer loans by credit quality indicator at December 31, 2018:
($ in Thousands)
Pass
 
Special Mention
 
Potential Problem
 
Nonaccrual
 
Total
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 September 30, 2019:
 
Accruing
 
 
 
 
($ in Thousands)
Current
 
30-59 Days
Past Due
 
60-89 Days
Past Due
 
90 Days or
More
Past Due
 
Nonaccrual(a)
 
Total
Commercial and industrial
$
7,438,395

 
$
220

 
$
206

 
$
266

 
$
56,536

 
$
7,495,623

Commercial real estate - owner occupied
912,810

 
2,646

 
—

 
—

 
68

 
915,524

Commercial and business lending
8,351,205

 
2,867

 
206

 
266

 
56,604

 
8,411,147

Commercial real estate - investor
3,797,840

 
—

 
636

 
—

 
4,800

 
3,803,277

Real estate construction
1,355,371

 
571

 
24

 
—

 
542

 
1,356,508

Commercial real estate lending
5,153,211

 
571

 
661

 
—

 
5,342

 
5,159,784

Total commercial
13,504,416

 
3,438

 
866

 
266

 
61,946

 
13,570,932

Residential mortgage
7,889,681

 
7,866

 
197

 
—

 
57,056

 
7,954,801

Home equity
865,017

 
3,837

 
961

 
—

 
9,828

 
879,642

Other consumer
345,303

 
1,321

 
881

 
1,720

 
109

 
349,335

Total consumer
9,100,001

 
13,025

 
2,038

 
1,720

 
66,993

 
9,183,778

Total loans(b)
$
22,604,417

 
$
16,462

 
$
2,905

 
$
1,986

 
$
128,939

 
$
22,754,710


(a) Of the total nonaccrual loans, $47 million, or 36%, were current with respect to payment at September 30, 2019.
(b)During the third quarter of 2019, the Corporation sold approximately $240 million of portfolio mortgages. In addition, the Corporation sold $33 million of residential mortgages and home equity loans, of which $21 million were accruing current loans, $12 million were nonaccrual loans, and approximately $200,000 were 30-89 days past due accruing loans.

The following table presents loans by past due status at December 31, 2018:
 
Accruing
 
 
 
 
($ in Thousands)
Current
 
30-59 Days
Past Due
 
60-89 Days
Past Due
 
90 Days or
More
Past Due
 
Nonaccrual(a)
 
Total
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 $2 million of purchased credit-impaired loans, at September 30, 2019:
($ in Thousands)
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
Loans with a related allowance
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
48,597

 
$
59,132

 
$
17,791

 
$
45,439

 
$
1,003

Commercial real estate — owner occupied
1,912

 
1,919

 
19

 
1,988

 
78

Commercial and business lending
50,510

 
61,051

 
17,811

 
47,427

 
1,081

Commercial real estate — investor
1,400

 
2,575

 
101

 
780

 
21

Real estate construction
409

 
490

 
56

 
419

 
21

Commercial real estate lending
1,809

 
3,066

 
157

 
1,199

 
42

Total commercial
52,319

 
64,116

 
17,968

 
48,626

 
1,123

Residential mortgage
24,621

 
25,783

 
3,824

 
27,173

 
623

Home equity
3,604

 
4,011

 
1,313

 
6,796

 
136

Other consumer
1,244

 
1,246

 
187

 
1,246

 
1

Total consumer
29,468

 
31,041

 
5,323

 
35,214

 
760

Total loans with a related allowance
$
81,787

 
$
95,157

 
$
23,291

 
$
83,840

 
$
1,883

Loans with no related allowance
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
21,971

 
$
59,697

 
$
—

 
$
14,448

 
$
—

Commercial real estate — owner occupied
—

 
—

 
—

 
—

 
—

Commercial and business lending
21,971

 
59,697

 
—

 
14,448

 
—

Commercial real estate — investor
3,705

 
3,705

 
—

 
637

 
159

Real estate construction
—

 
—

 
—

 
—

 
—

Commercial real estate lending
3,705

 
3,705

 
—

 
637

 
159

Total commercial
25,675

 
63,402

 
—

 
15,086

 
159

Residential mortgage
11,418

 
11,732

 
—

 
8,732

 
279

Home equity
1,044

 
1,063

 
—

 
1,017

 
18

Other consumer
—

 
—

 
—

 
—

 
—

Total consumer
12,462

 
12,795

 
—

 
9,749

 
297

Total loans with no related allowance
$
38,138

 
$
76,197

 
$
—

 
$
24,835

 
$
456

Total
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
70,568

 
$
118,829

 
$
17,791

 
$
59,887

 
$
1,003

Commercial real estate — owner occupied
1,912

 
1,919

 
19

 
1,988

 
78

Commercial and business lending
72,480

 
120,748

 
17,811

 
61,875

 
1,081

Commercial real estate — investor
5,104

 
6,280

 
101

 
1,417

 
180

Real estate construction
409

 
490

 
56

 
419

 
21

Commercial real estate lending
5,514

 
6,770

 
157

 
1,836

 
201

Total commercial
77,994

 
127,518

 
17,968

 
63,712

 
1,282

Residential mortgage
36,039

 
37,515

 
3,824

 
35,905

 
902

Home equity
4,648

 
5,075

 
1,313

 
7,812

 
154

Other consumer
1,244

 
1,246

 
187

 
1,246

 
1

Total consumer
41,931

 
43,836

 
5,323

 
44,964

 
1,056

Total loans(a)
$
119,925

 
$
171,354

 
$
23,291

 
$
108,675

 
$
2,338

(a) The net recorded investment (defined as recorded investment, net of the related allowance) of the impaired loans represented 56% of the unpaid principal balance at September 30, 2019.
The following table presents impaired loans individually evaluated under ASC Topic 310, excluding $5 million of purchased credit-impaired loans, at December 31, 2018: 
($ in Thousands)
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
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 following table presents nonaccrual and performing restructured loans by loan portfolio:
 
September 30, 2019
 
December 31, 2018
 ($ in Thousands)
Performing
Restructured
Loans
 
Nonaccrual
Restructured
Loans(a)
 
Performing
Restructured
Loans
 
Nonaccrual
Restructured
Loans(a)
Commercial and industrial
$
15,398

 
$
—

 
$
25,478

 
$
249

Commercial real estate — owner occupied
1,912

 
—

 
2,080

 
—

Commercial real estate — investor
304

 
461

 
799

 
933

Real estate construction
227

 
182

 
311

 
198

Residential mortgage
3,228

 
14,090

 
16,036

 
22,279

Home equity
2,017

 
1,559

 
7,385

 
2,627

Other consumer
1,243

 
1

 
1,174

 
6

   Total restructured loans(b)
$
24,329

 
$
16,293

 
$
53,263

 
$
26,292

(a) Nonaccrual restructured loans have been included within nonaccrual loans.
(b) During the third quarter of 2019, the Corporation sold $21 million of performing restructured loans, of which $18 million were residential mortgages and $3 million were home equity loans. In addition, the Corporation sold $7 million of nonaccrual restructured residential mortgage loans.

The Corporation had a recorded investment of $7 million in loans modified in troubled debt restructurings during the nine months ended September 30, 2019, of which $2 million were in accrual status and $5 million were in nonaccrual pending a sustained period of repayment. 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 nine months ended September 30, 2019 and 2018:
 
Nine Months Ended September 30, 2019
 
Nine Months Ended September 30, 2018
 ($ in Thousands)
Number
of
Loans
 
Recorded
Investment(a)
 
Unpaid
Principal
Balance(b)
 
Number
of
Loans
 
Recorded
Investment(a)
 
Unpaid
Principal
Balance(b)
Commercial and industrial
1

 
$
185

 
$
185

 
6

 
$
1,954

 
$
1,995

Commercial real estate — investor
—

 
—

 
—

 
1

 
958

 
1,022

Residential mortgage
47

 
6,785

 
6,863

 
29

 
5,655

 
5,733

Home equity
18

 
520

 
520

 
32

 
1,552

 
1,582

Other consumer
1

 
9

 
9

 
3

 
19

 
21

   Total loans modified
67

 
$
7,500

 
$
7,577

 
71

 
$
10,138

 
$
10,353


(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 nine months ended September 30, 2019, restructured loan modifications of commercial and industrial, and commercial real estate 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 nine months ended September 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 nine months ended September 30, 2019 and 2018 and the recorded investment in these restructured loans as of September 30, 2019 and 2018:
 
Nine Months Ended September 30, 2019
 
Nine Months Ended September 30, 2018
 ($ in Thousands)
Number of
Loans
 
Recorded
Investment
 
Number of
Loans
 
Recorded
Investment
Commercial and industrial
—

 
$
—

 
3

 
$
—

Commercial real estate — investor
1

 
461

 
—

 
—

Residential mortgage
27

 
4,528

 
12

 
2,579

Home equity
19

 
538

 
28

 
1,599

   Total loans modified
47

 
$
5,526

 
43

 
$
4,178


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 nine months ended September 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
(49,845
)
(222
)
—

(60
)
(1,754
)
(1,605
)
(4,074
)
(57,560
)
Recoveries
10,322

2,795

31

230

539

1,878

667

16,462

Net Charge offs
(39,523
)
2,573

31

170

(1,215
)
273

(3,407
)
(41,098
)
Provision for loan losses
36,419

(3,229
)
(971
)
(4,960
)
(5,757
)
(7,690
)
3,688

17,500

September 30, 2019
$
105,730

$
8,599

$
39,904

$
23,451

$
18,623

$
11,849

$
6,269

$
214,425

Allowance for loan losses
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
17,791

$
19

$
101

$
56

$
3,824

$
1,313

$
187

$
23,291

Collectively evaluated for impairment
87,939

8,579

39,803

23,395

14,799

10,536

6,082

191,133

Total allowance for loan losses
$
105,730

$
8,599

$
39,904

$
23,451

$
18,623

$
11,849

$
6,269

$
214,425

Loans
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
70,568

$
1,912

$
5,104

$
409

$
36,039

$
4,648

$
1,244

$
119,925

Collectively evaluated for impairment
7,424,690

912,935

3,798,039

1,356,088

7,918,265

874,968

348,091

22,633,075

Acquired and accounted for under ASC 310-30(a)
365

677

134

11

497

26

—

1,710

Total loans
$
7,495,623

$
915,524

$
3,803,277

$
1,356,508

$
7,954,801

$
879,642

$
349,335

$
22,754,710

(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 $21 million, or 3.7% of total oil and gas loans, and $12 million, or 1.6% of total oil and gas loans, at September 30, 2019 and December 31, 2018, respectively. The following table provides a summary of the changes in allowance for loan losses in the Corporation's oil and gas loan portfolio at September 30, 2019 and December 31, 2018:
($ in Millions)
Nine Months Ended September 30, 2019
 
Year Ended December 31, 2018
Balance at beginning of period
$
12

 
$
27

Charge offs
(39
)
 
(24
)
Recoveries
5

 
6

Net Charge offs
(34
)
 
(17
)
Provision for loan losses
44

 
2

Balance at end of period
$
21

 
$
12

Allowance for loan losses
 
 
 
Individually evaluated for impairment
$
11

 
$
—

Collectively evaluated for impairment
10

 
12

Total allowance for loan losses
$
21

 
$
12

Loans
 
 
 
Individually evaluated for impairment
$
36

 
$
22

Collectively evaluated for impairment
545

 
725

Total loans
$
582

 
$
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:
($ in Thousands)
Nine Months Ended September 30, 2019
 
Year Ended December 31, 2018
Allowance for Unfunded Commitments
 
 
 
Balance at beginning of period
$
24,336

 
$
24,400

Provision for unfunded commitments
(1,500
)
 
(2,500
)
Amount recorded at acquisition
70

 
2,436

Balance at end of period
$
22,907

 
$
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 nine months ended September 30, 2019 and for the year ended December 31, 2018:
($ in Thousands)
Nine Months Ended September 30, 2019
 
Year Ended December 31, 2018
Changes in Accretable Yield
 
 
 
Balance at beginning of period
$
1,482

 
$
—

Purchases
—

 
4,853

Accretion
(912
)
 
(4,954
)
Net reclassification from non-accretable yield
23

 
1,605

Other(a)
—

 
(22
)
Balance at end of period
$
595

 
$
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 September 30, 2019, the Corporation had a total of approximately $15 million in net unaccreted purchase discount, of which approximately $14 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.