Loans

3 Months Ended

Mar. 31, 2022

The period end loan composition was as follows:


($ in Thousands)	Mar 31, 2022		Dec 31, 2021
PPP	$	17,995	$	66,070
Asset-based lending & equipment finance(a)	231,040		178,027
Commercial and industrial	8,102,380		8,208,289
Commercial real estate — owner occupied	973,572		971,326
Commercial and business lending	9,324,986		9,423,711
Commercial real estate — investor	4,469,241		4,384,569
Real estate construction	1,760,076		1,808,976
Commercial real estate lending	6,229,317		6,193,545
Total commercial	15,554,303		15,617,256
Residential mortgage	7,609,343		7,567,310
Auto finance	497,523		143,045
Home equity	580,867		595,615
Other consumer	289,889		301,723
Total consumer	8,977,622		8,607,693
Total loans	$	24,531,926	$	24,224,949

(a) Periods prior to Mar 31, 2022 do not include equipment finance.

Accrued interest receivable on loans totaled $58 million at March 31, 2022, and $55 million at December 31, 2021, and is included in interest receivable on the consolidated balance sheets. Interest accrued but not received for loans placed on nonaccrual is reversed against interest income. The amount of accrued interest reversed totaled approximately $95,000 and $98,000 for the three months ended March 31, 2022 and March 31, 2021, respectively.

The following table presents commercial and consumer loans by credit quality indicator by vintage year at March 31, 2022:


					Term Loans Amortized Cost Basis by Origination Year(a)
($ in Thousands)	Rev Loans Converted to Term(a)		Rev Loans Amortized Cost Basis		YTD 2022		2021		2020		2019		2018		Prior		Total
PPP:(b)
Risk rating:
Pass	$	—	$	—	$	—	$	16,118	$	1,782	$	—	$	—	$	—	$	17,900

Potential Problem	—		—		—		—		54		—		—		—		54
Nonaccrual	—		—		—		—		41		—		—		—		41
PPP	$	—	$	—	$	—	$	16,118	$	1,877	$	—	$	—	$	—	$	17,995
Asset-based lending & equipment finance:
Risk rating:
Pass	$	—	$	27,624	$	22,962	$	116,851	$	42,930	$	1,243	$	223	$	150	$	211,982

Potential Problem	—		2,057		—		—		17,000		—		—		—		19,057

Asset-based lending & equipment finance	$	—	$	29,681	$	22,962	$	116,851	$	59,930	$	1,243	$	223	$	150	$	231,040
Commercial and industrial:
Risk rating:
Pass	$	—	$	2,113,051	$	320,013	$	2,622,986	$	802,154	$	905,744	$	582,722	$	602,568	$	7,949,237
Special Mention	—		11,619		—		5,900		3,226		—		—		38,777		59,521
Potential Problem	37		3,793		17,540		1,369		3,540		45,200		20,584		1,372		93,396
Nonaccrual	71		—		71		—		154		—		—		—		225
Commercial and industrial	$	108	$	2,128,462	$	337,623	$	2,630,255	$	809,074	$	950,944	$	603,306	$	642,716	$	8,102,380
Commercial real estate - owner occupied:
Risk rating:
Pass	$	—	$	19,947	$	28,850	$	273,534	$	183,174	$	181,284	$	106,991	$	154,061	$	947,840
Special Mention	—		247		—		—		1,310		—		—		169		1,726
Potential Problem	—		—		635		5,632		2,195		10,571		—		4,972		24,005

Commercial real estate - owner occupied	$	—	$	20,194	$	29,485	$	279,166	$	186,678	$	191,855	$	106,991	$	159,202	$	973,572
Commercial and business lending:
Risk rating:
Pass	$	—	$	2,160,622	$	371,825	$	3,029,488	$	1,030,039	$	1,088,271	$	689,936	$	756,778	$	9,126,959
Special Mention	—		11,865		—		5,900		4,537		—		—		38,946		61,248
Potential Problem	37		5,850		18,175		7,001		22,788		55,771		20,584		6,344		136,513
Nonaccrual	71		—		71		—		195		—		—		—		266
Commercial and business lending	$	108	$	2,178,337	$	390,071	$	3,042,390	$	1,057,559	$	1,144,041	$	710,520	$	802,068	$	9,324,986
Commercial real estate - investor:
Risk rating:
Pass	$	—	$	90,319	$	391,108	$	1,616,587	$	704,283	$	713,819	$	308,963	$	318,092	$	4,143,170
Special Mention	—		—		2,750		55,652		16,289		32,847		—		6,855		114,393
Potential Problem	—		—		21,291		21,155		28,694		25,722		28,804		5,125		130,792
Nonaccrual	—		—		573		65,404		7,906		7,003		—		—		80,886
Commercial real estate - investor	$	—	$	90,319	$	415,721	$	1,758,799	$	757,172	$	779,391	$	337,767	$	330,071	$	4,469,241
Real estate construction:
Risk rating:
Pass	$	—	$	27,848	$	105,439	$	867,680	$	517,765	$	152,883	$	45,941	$	12,395	$	1,729,950
Special Mention	—		—		—		934		11,929		16,454		—		—		29,317
Potential Problem	—		—		—		84		116		—		—		—		200
Nonaccrual	—		—		—		—		—		—		—		609		609
Real estate construction	$	—	$	27,848	$	105,439	$	868,698	$	529,810	$	169,337	$	45,941	$	13,004	$	1,760,076


					Term Loans Amortized Cost Basis by Origination Year(a)
($ in Thousands)	Rev Loans Converted to Term(a)		Rev Loans Amortized Cost Basis		YTD 2022		2021		2020		2019		2018		Prior		Total
Commercial real estate lending:
Risk rating:
Pass	$	—	$	118,167	$	496,547	$	2,484,267	$	1,222,047	$	866,702	$	354,904	$	330,487	$	5,873,120
Special Mention	—		—		2,750		56,586		28,218		49,302		—		6,855		143,711
Potential Problem	—		—		21,291		21,239		28,810		25,722		28,804		5,125		130,992
Nonaccrual	—		—		573		65,404		7,906		7,003		—		609		81,495
Commercial real estate lending	$	—	$	118,167	$	521,160	$	2,627,496	$	1,286,982	$	948,729	$	383,708	$	343,075	$	6,229,317
Total commercial:
Risk rating:
Pass	$	—	$	2,278,789	$	868,372	$	5,513,755	$	2,252,087	$	1,954,972	$	1,044,840	$	1,087,265	$	15,000,080
Special Mention	—		11,865		2,750		62,486		32,755		49,302		—		45,800		204,958
Potential Problem	37		5,850		39,466		28,241		51,598		81,493		49,388		11,469		267,505
Nonaccrual	71		—		644		65,404		8,101		7,003		—		609		81,761
Total commercial	$	108	$	2,296,504	$	911,231	$	5,669,886	$	2,344,541	$	2,092,770	$	1,094,228	$	1,145,143	$	15,554,303
Residential mortgage:
Risk rating:
Pass	$	—	$	—	$	247,943	$	1,874,892	$	1,859,312	$	916,031	$	407,380	$	2,246,835	$	7,552,394
Special Mention	—		—		—		—		—		—		—		90		90
Potential Problem	—		—		276		468		288		578		280		1,142		3,032
Nonaccrual	—		—		979		2,160		3,102		3,955		6,946		36,684		53,827
Residential mortgage	$	—	$	—	$	249,198	$	1,877,520	$	1,862,703	$	920,564	$	414,606	$	2,284,751	$	7,609,343
Auto finance:
Risk rating:
Pass	$	—	$	—	$	357,813	$	135,564	$	578	$	2,262	$	921	$	295	$	497,432
Special Mention	—		—		—		42		—		—		—		1		42

Nonaccrual	—		—		—		—		—		35		14		—		49
Auto finance	$	—	$	—	$	357,813	$	135,606	$	578	$	2,296	$	934	$	296	$	497,523
Home equity:
Risk rating:
Pass	$	2,698	$	486,976	$	2,212	$	2,245	$	1,480	$	6,900	$	8,143	$	64,691	$	572,646
Special Mention	91		122		—		—		—		14		56		384		575
Potential Problem	—		—		—		—		—		—		10		146		156
Nonaccrual	171		55		—		9		119		145		328		6,834		7,490
Home equity	$	2,960	$	487,152	$	2,212	$	2,254	$	1,599	$	7,058	$	8,537	$	72,054	$	580,867
Other consumer:
Risk rating:
Pass	$	76	$	174,209	$	1,843	$	9,113	$	3,504	$	2,109	$	340	$	98,217	$	289,335
Special Mention	4		429		—		10		12		—		—		8		459

Nonaccrual	1		49		—		—		12		6		—		28		95
Other consumer	$	80	$	174,687	$	1,843	$	9,123	$	3,528	$	2,115	$	340	$	98,253	$	289,889
Total consumer:
Risk rating:
Pass	$	2,774	$	661,185	$	609,810	$	2,021,815	$	1,864,874	$	927,302	$	416,784	$	2,410,038	$	8,911,807
Special Mention	94		551		—		52		12		14		56		482		1,167
Potential Problem	—		—		276		468		288		578		290		1,288		3,188
Nonaccrual	171		103		979		2,169		3,234		4,141		7,288		43,546		61,460
Total consumer	$	3,040	$	661,840	$	611,065	$	2,024,504	$	1,868,408	$	932,034	$	424,418	$	2,455,354	$	8,977,622
Total loans:
Risk rating:
Pass(c)	$	2,774	$	2,939,973	$	1,478,182	$	7,535,570	$	4,116,960	$	2,882,275	$	1,461,624	$	3,497,303	$	23,911,887
Special Mention	94		12,417		2,750		62,538		32,767		49,315		56		46,283		206,125
Potential Problem	37		5,850		39,742		28,709		51,886		82,071		49,678		12,757		270,693
Nonaccrual	242		103		1,623		67,573		11,335		11,143		7,288		44,154		143,221
Total loans	$	3,148	$	2,958,343	$	1,522,296	$	7,694,390	$	4,212,949	$	3,024,804	$	1,518,646	$	3,600,497	$	24,531,926

(a) Revolving loans converted to term loans are also reported in their year of origination.

(b) The Corporation’s policy is to assign risk ratings at the borrower level. PPP loans are 100% guaranteed by the SBA and therefore the Corporation considers these loans to have a risk profile similar to pass rated loans.

The following table presents commercial and consumer loans by credit quality indicator by vintage year at December 31, 2021:


					Term Loans Amortized Cost Basis by Origination Year(a)
($ in Thousands)	Rev Loans Converted to Term(a)		Rev Loans Amortized Cost Basis		2021		2020		2019		2018		2017		Prior		Total
PPP:(b)
Risk rating:
Pass	$	—	$	—	$	44,921	$	18,610	$	—	$	—	$	—	$	—	$	63,531
Special Mention	—		—		212		281		—		—		—		—		493
Potential Problem	—		—		2,000		—		—		—		—		—		2,000
Nonaccrual	—		—		—		46		—		—		—		—		46
PPP	$	—	$	—	$	47,134	$	18,936	$	—	$	—	$	—	$	—	$	66,070
Commercial and industrial:(c)
Risk rating:
Pass	$	2,084	$	2,371,605	$	2,631,753	$	852,758	$	986,300	$	710,491	$	177,568	$	493,876	$	8,224,351
Special Mention	—		7,068		5,900		1,695		—		—		—		2,811		17,474
Potential Problem	2,706		26,387		23,415		19,960		46,296		20,924		104		1,172		138,258
Nonaccrual	76		—		5,996		161		52		24		—		—		6,233
Commercial and industrial	$	4,867	$	2,405,059	$	2,667,064	$	874,575	$	1,032,647	$	731,439	$	177,671	$	497,860	$	8,386,316
Commercial real estate - owner occupied:
Risk rating:
Pass	$	10,092	$	30,869	$	261,418	$	178,424	$	187,073	$	110,169	$	54,538	$	117,011	$	939,503
Special Mention	—		226		—		4,628		—		—		—		245		5,100
Potential Problem	—		526		5,953		4,721		10,047		727		2,204		2,546		26,723

Commercial real estate - owner occupied	$	10,092	$	31,621	$	267,371	$	187,773	$	197,120	$	110,896	$	56,742	$	119,802	$	971,326
Commercial and business lending:
Risk rating:
Pass	$	12,176	$	2,402,474	$	2,938,092	$	1,049,792	$	1,173,373	$	820,660	$	232,106	$	610,887	$	9,227,385
Special Mention	—		7,294		6,112		6,604		—		—		—		3,056		23,066
Potential Problem	2,706		26,913		31,368		24,681		56,343		21,651		2,307		3,718		166,981
Nonaccrual	76		—		5,996		207		52		24		—		—		6,279
Commercial and business lending	$	14,958	$	2,436,680	$	2,981,569	$	1,081,284	$	1,229,767	$	842,335	$	234,414	$	617,662	$	9,423,711
Commercial real estate - investor:
Risk rating:
Pass	$	37,430	$	105,521	$	1,650,936	$	685,423	$	867,606	$	414,079	$	139,320	$	230,452	$	4,093,337
Special Mention	—		—		57,163		27,384		33,016		72		—		6,781		124,416
Potential Problem	—		—		21,309		9,860		22,243		34,591		3,564		14,573		106,138
Nonaccrual	—		—		45,502		8,158		6,820		—		—		197		60,677
Commercial real estate - investor	$	37,430	$	105,521	$	1,774,910	$	730,825	$	929,685	$	448,741	$	142,883	$	252,003	$	4,384,569
Real estate construction:
Risk rating:
Pass	$	—	$	31,773	$	843,664	$	614,469	$	204,337	$	48,647	$	2,229	$	12,212	$	1,757,331
Special Mention	—		—		2,203		11,929		—		15,885		41		2		30,060
Potential Problem	—		—		37		120		21,251		—		—		—		21,408
Nonaccrual	—		—		—		—		—		—		—		177		177
Real estate construction	$	—	$	31,773	$	845,903	$	626,518	$	225,588	$	64,532	$	2,270	$	12,392	$	1,808,976
Commercial real estate lending:
Risk rating:
Pass	$	37,430	$	137,294	$	2,494,600	$	1,299,893	$	1,071,943	$	462,726	$	141,549	$	242,664	$	5,850,668
Special Mention	—		—		59,366		39,313		33,016		15,957		41		6,784		154,476
Potential Problem	—		—		21,345		9,980		43,494		34,591		3,564		14,573		127,546
Nonaccrual	—		—		45,502		8,158		6,820		—		—		374		60,855
Commercial real estate lending	$	37,430	$	137,294	$	2,620,814	$	1,357,343	$	1,155,273	$	513,273	$	145,153	$	264,395	$	6,193,545


					Term Loans Amortized Cost Basis by Origination Year(a)
($ in Thousands)	Rev Loans Converted to Term(a)		Rev Loans Amortized Cost Basis		2021		2020		2019		2018		2017		Prior		Total
Total commercial:
Risk rating:
Pass	$	49,606	$	2,539,768	$	5,432,693	$	2,349,685	$	2,245,316	$	1,283,386	$	373,655	$	853,551	$	15,078,053
Special Mention	—		7,294		65,478		45,917		33,016		15,957		41		9,840		177,543
Potential Problem	2,706		26,913		52,713		34,660		99,837		56,241		5,871		18,291		294,527
Nonaccrual	76		—		51,498		8,365		6,872		24		—		374		67,134
Total commercial	$	52,388	$	2,573,974	$	5,602,382	$	2,438,627	$	2,385,040	$	1,355,608	$	379,567	$	882,057	$	15,617,256
Residential mortgage:
Risk rating:
Pass	$	—	$	—	$	1,771,447	$	1,945,029	$	974,188	$	428,459	$	673,447	$	1,716,419	$	7,508,989
Special Mention	—		—		—		—		—		285		—		461		746
Potential Problem	—		—		475		332		404		265		81		658		2,214
Nonaccrual	—		—		1,993		2,911		4,479		6,224		6,019		33,734		55,362
Residential mortgage	$	—	$	—	$	1,773,915	$	1,948,272	$	979,071	$	435,233	$	679,547	$	1,751,272	$	7,567,310
Auto finance:
Risk rating:
Pass	$	—	$	—	$	137,952	$	707	$	2,675	$	1,200	$	352	$	107	$	142,993


Nonaccrual	—		—		—		—		36		15		—		—		52
Auto finance	$	—	$	—	$	137,952	$	707	$	2,711	$	1,216	$	352	$	107	$	143,045
Home equity:
Risk rating:
Pass	$	6,728	$	498,970	$	1,216	$	1,401	$	7,640	$	8,742	$	7,660	$	61,251	$	586,880
Special Mention	133		100		—		102		4		—		—		638		844
Potential Problem	6		—		6		—		—		13		—		146		165
Nonaccrual	925		35		9		92		211		305		302		6,772		7,726
Home equity	$	7,792	$	499,104	$	1,232	$	1,595	$	7,856	$	9,059	$	7,962	$	68,807	$	595,615
Other consumer:
Risk rating:
Pass	$	443	$	180,312	$	9,297	$	4,987	$	2,884	$	371	$	265	$	103,075	$	301,191
Special Mention	7		351		—		4		—		—		—		7		363

Nonaccrual	6		120		—		14		7		—		19		11		170
Other consumer	$	456	$	180,783	$	9,297	$	5,005	$	2,890	$	371	$	284	$	103,093	$	301,723
Total consumer:
Risk rating:
Pass	$	7,171	$	679,353	$	1,919,912	$	1,952,124	$	987,387	$	438,771	$	681,725	$	1,880,781	$	8,540,053
Special Mention	140		451		—		106		4		285		—		1,106		1,952
Potential Problem	6		—		481		332		404		277		81		804		2,379
Nonaccrual	931		154		2,003		3,017		4,733		6,545		6,340		40,517		63,309
Total consumer	$	8,248	$	679,959	$	1,922,396	$	1,955,579	$	992,528	$	445,878	$	688,145	$	1,923,208	$	8,607,693
Total loans:
Risk rating:
Pass(d)	$	56,777	$	3,219,121	$	7,352,605	$	4,301,809	$	3,232,703	$	1,722,157	$	1,055,380	$	2,734,332	$	23,618,106
Special Mention	140		7,745		65,478		46,023		33,021		16,241		41		10,946		179,495
Potential Problem	2,713		26,913		53,194		34,992		100,240		56,519		5,952		19,095		296,905
Nonaccrual	1,006		154		53,501		11,382		11,605		6,569		6,340		40,891		130,443
Total loans	$	60,636	$	3,253,933	$	7,524,778	$	4,394,206	$	3,377,569	$	1,801,486	$	1,067,713	$	2,805,265	$	24,224,949

(a) Revolving loans converted to term loans are also reported in their year of origination.

(d) Accruing TDRs are included in pass unless otherwise rated as special mention.

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 policies for ACLL, nonaccrual loans, and charge offs.

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 warrant specific attention from management. 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. Management has determined commercial loan relationships in nonaccrual status, and commercial and consumer loan relationships with their terms restructured in a TDR, meet the criteria to be individually evaluated. Commercial loans classified as special mention, potential problem, and nonaccrual are reviewed at a minimum on a quarterly basis, while pass credits, which are performing rated credits, are generally 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, 2022:


	Accruing
($ in Thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Nonaccrual(a)(b)		Total
PPP	$	17,953	$	—	$	1	$	—	$	41	$	17,995
Asset-based lending & equipment finance	231,040		—		—		—		—		231,040
Commercial and industrial	8,100,945		923		162		125		225		8,102,380
Commercial real estate - owner occupied	973,374		198		—		—		—		973,572
Commercial and business lending	9,323,311		1,121		163		125		266		9,324,986
Commercial real estate - investor	4,388,355		—		—		—		80,886		4,469,241
Real estate construction	1,759,467		—		—		—		609		1,760,076
Commercial real estate lending	6,147,823		—		—		—		81,495		6,229,317
Total commercial	15,471,134		1,121		163		125		81,761		15,554,303
Residential mortgage	7,550,015		4,867		90		544		53,827		7,609,343
Auto finance	496,526		906		42		—		49		497,523
Home equity	569,170		3,632		575		—		7,490		580,867
Other consumer	287,636		707		525		926		95		289,889
Total consumer	8,903,347		10,112		1,232		1,470		61,460		8,977,622
Total loans	$	24,374,481	$	11,233	$	1,396	$	1,595	$	143,221	$	24,531,926

(a) Of the total nonaccrual loans, $98 million, or 69%, were current with respect to payment at March 31, 2022.

(b) No interest income was recognized on nonaccrual loans for the three months ended March 31, 2022. In addition, there were $24 million of nonaccrual loans for which there was no related ACLL at March 31, 2022.

The following table presents loans by past due status at December 31, 2021:


	Accruing
($ in Thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Nonaccrual(a)(b)		Total
PPP	$	65,941	$	40	$	43	$	—	$	46	$	66,070
Asset-based lending	178,027		—		—		—		—		178,027
Commercial and industrial(c)	8,201,272		579		54		151		6,233		8,208,289
Commercial real estate - owner occupied	971,163		163		—		—		—		971,326
Commercial and business lending	9,416,403		781		97		151		6,279		9,423,711
Commercial real estate - investor	4,323,276		142		474		—		60,677		4,384,569
Real estate construction	1,807,178		1,618		2		—		177		1,808,976
Commercial real estate lending	6,130,454		1,759		477		—		60,855		6,193,545
Total commercial	15,546,857		2,541		573		151		67,134		15,617,256
Residential mortgage	7,505,654		5,500		669		126		55,362		7,567,310
Auto finance	142,982		11		—		—		52		143,045
Home equity	584,177		2,867		844		—		7,726		595,615
Other consumer	298,261		1,835		472		986		170		301,723
Total consumer	8,531,074		10,213		1,985		1,111		63,309		8,607,693
Total loans	$	24,077,931	$	12,754	$	2,558	$	1,263	$	130,443	$	24,224,949

(a) Of the total nonaccrual loans, $84 million, or 65%, were current with respect to payment at December 31, 2021.

(b) No interest income was recognized on nonaccrual loans for the year ended December 31, 2021. In addition, there were $9 million of nonaccrual loans for which there was no related ACLL at December 31, 2021.

Troubled Debt Restructurings

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:


	Mar 31, 2022				Dec 31, 2021
($ in Thousands)	Performing Restructured Loans		Nonaccrual Restructured Loans(a)		Performing Restructured Loans		Nonaccrual Restructured Loans(a)

Commercial and industrial	$	7,426	$	—	$	8,687	$	—
Commercial real estate — owner occupied	473		—		967		—
Commercial real estate — investor	2,045		3,042		12,866		3,093
Real estate construction	183		44		242		45
Residential mortgage	16,644		15,336		16,316		13,483

Home equity	2,486		931		2,648		806
Other consumer	747		—		803		—
Total restructured loans	$	30,003	$	19,352	$	42,530	$	17,426

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

The Corporation had a recorded investment of $7 million in loans modified as TDRs during the three months ended March 31, 2022, of which $1 million were in accrual status, included in pass or special mention based on their risk rating within the credit quality tables, and $6 million were in nonaccrual within the credit quality tables, pending a sustained period of repayment. The following table provides the number of loans modified in a TDR by loan portfolio, the recorded investment, and unpaid principal balance for the three months ended March 31, 2022 and 2021:


	Three months ended Mar 31, 2022					Three months ended Mar 31, 2021
($ in Thousands)	Number of Loans	Recorded Investment(a)		Unpaid Principal Balance(b)		Number of Loans	Recorded Investment(a)		Unpaid Principal Balance(b)



Commercial real estate — investor	—	$	—	$	—	4	$	1,693	$	1,693

Residential mortgage	24	6,421		6,502		20	3,876		3,902
Home equity	3	80		101		1	430		430

Total loans modified	27	$	6,500	$	6,603	25	$	5,999	$	6,025

(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, 2022, there were no restructured loan

modifications of commercial loans, but when such modifications do occur, they primarily include maturity date extensions and payment schedule modifications. Restructured loan modifications of consumer 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, 2022.

The following table provides the number of loans modified in a TDR during the previous twelve months which subsequently defaulted during the three months ended March 31, 2022 and 2021, and the recorded investment in these restructured loans as of March 31, 2022 and 2021:


	Three months ended Mar 31, 2022			Three months ended Mar 31, 2021
($ in Thousands)	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment





Residential mortgage	1	$	884	1	$	97

All loans modified in a TDR are individually 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 ACLL.

The Corporation analyzes loans for classification as a probable TDR. This analysis includes identifying customers that are showing possible liquidity issues in the near term without reasonable access to alternative sources of capital. At March 31, 2022, the Corporation had no loans meeting this classification compared to $7 million at December 31, 2021.

Allowance for Credit Losses on Loans

The ACLL is comprised of the allowance for loan losses and the allowance for unfunded commitments. The level of the ACLL represents management’s estimate of an amount appropriate to provide for expected lifetime credit losses in the loan portfolio at the balance sheet date. The expected lifetime credit losses are the product of multiplying the Corporation's estimates of probability of default, loss given default, and the individual loan level exposure at default on an undiscounted basis. A main factor in the determination of the ACLL is the economic forecast. The Corporation utilized Moody's baseline forecast, updated during February 2022, in the allowance model. The forecast is applied over a 2 year reasonable and supportable period with straight-line reversion to the historical losses over the second year of the period. The allowance for unfunded commitments is maintained at a level believed by management to be sufficient to absorb expected lifetime losses related to unfunded credit facilities (including unfunded loan commitments and letters of credit). See Note 12 for additional information on the change in the allowance for unfunded commitments.

The following table presents a summary of the changes in the ACLL by portfolio segment for the three months ended March 31, 2022:


($ in Thousands)	Dec 31, 2021		Charge offs		Recoveries		Net Charge offs		Provision for credit losses		Mar 31, 2022		ACLL / Loans
Allowance for loan losses
PPP	$	51	$	—	$	—	$	—	$	(39)	$	11
Asset-based lending & equipment finance	4,182		—		—		—		901		5,083
Commercial and industrial	85,624		(1,104)		2,958		1,854		(5,485)		81,993
Commercial real estate — owner occupied	11,473		—		3		3		(349)		11,127
Commercial and business lending	101,330		(1,104)		2,961		1,857		(4,973)		98,214
Commercial real estate — investor	72,803		—		—		—		558		73,361
Real estate construction	37,643		—		32		32		2,082		39,757
Commercial real estate lending	110,446		—		32		32		2,640		113,118
Total commercial	211,776		(1,104)		2,993		1,889		(2,333)		211,332
Residential mortgage	40,787		(43)		331		288		(3,974)		37,101
Auto finance	1,999		(23)		26		4		4,188		6,190
Home equity	14,011		(125)		440		315		(995)		13,331
Other consumer	11,441		(733)		282		(451)		114		11,104
Total consumer	68,239		(924)		1,079		155		(667)		67,727
Total loans	$	280,015	$	(2,028)	$	4,072	$	2,044	$	(3,000)	$	279,058
Allowance for unfunded commitments

Asset-based lending & equipment finance	$	857	$	—	$	—	$	—	$	(62)	$	796
Commercial and industrial	17,601		—		—		—		(2,694)		14,907
Commercial real estate — owner occupied	208		—		—		—		(64)		144
Commercial and business lending	18,667		—		—		—		(2,820)		15,847
Commercial real estate — investor	936		—		—		—		(302)		634
Real estate construction	15,586		—		—		—		2,415		18,001
Commercial real estate lending	16,522		—		—		—		2,114		18,636
Total commercial	35,189		—		—		—		(707)		34,482


Home equity	2,592		—		—		—		(68)		2,523
Other consumer	1,995		—		—		—		(225)		1,770
Total consumer	4,587		—		—		—		(293)		4,293
Total loans	$	39,776	$	—	$	—	$	—	$	(1,000)	$	38,776
Allowance for credit losses on loans
PPP	$	51	$	—	$	—	$	—	$	(39)	$	11	0.06	%
Asset-based lending & equipment finance	5,040		—		—		—		839		5,879		2.54	%
Commercial and industrial	103,225		(1,104)		2,958		1,854		(8,179)		96,900		1.20	%
Commercial real estate — owner occupied	11,681		—		3		3		(413)		11,270		1.16	%
Commercial and business lending	119,997		(1,104)		2,961		1,857		(7,793)		114,061		1.22	%
Commercial real estate — investor	73,739		—		—		—		256		73,995		1.66	%
Real estate construction	53,229		—		32		32		4,497		57,758		3.28	%
Commercial real estate lending	126,968		—		32		32		4,754		131,754		2.12	%
Total commercial	246,965		(1,104)		2,993		1,889		(3,039)		245,814		1.58	%
Residential mortgage	40,787		(43)		331		288		(3,974)		37,101		0.49	%
Auto finance	1,999		(23)		26		4		4,188		6,190		1.24	%
Home equity	16,603		(125)		440		315		(1,063)		15,855		2.73	%
Other consumer	13,436		(733)		282		(451)		(111)		12,874		4.44	%
Total consumer	72,825		(924)		1,079		155		(961)		72,020		0.80	%
Total loans	$	319,791	$	(2,028)	$	4,072	$	2,044	$	(4,000)	$	317,835	1.30	%

The following table presents a summary of the changes in the ACLL by portfolio segment for the year ended December 31, 2021:


($ in Thousands)	Dec 31, 2020		Charge offs		Recoveries		Net Charge offs		Provision for credit losses		Dec 31, 2021		ACLL / Loans
Allowance for loan losses
PPP	$	531	$	—	$	—	$	—	$	(480)	$	51
Asset-based lending	2,077		—		412		412		1,693		4,182
Commercial and industrial(a)	140,716		(21,564)		8,152		(13,412)		(41,680)		85,624
Commercial real estate — owner occupied	11,274		—		120		120		80		11,473
Commercial and business lending	154,598		(21,564)		8,684		(12,880)		(40,388)		101,330
Commercial real estate — investor	93,435		(14,346)		3,162		(11,184)		(9,448)		72,803
Real estate construction	59,193		(5)		126		121		(21,672)		37,643
Commercial real estate lending	152,629		(14,351)		3,288		(11,063)		(31,120)		110,446
Total commercial	307,226		(35,915)		11,972		(23,943)		(71,508)		211,776
Residential mortgage	42,996		(880)		841		(38)		(2,170)		40,787
Auto finance	174		(22)		31		9		1,816		1,999
Home equity	18,849		(668)		2,854		2,186		(7,024)		14,011
Other consumer	14,456		(3,168)		1,267		(1,901)		(1,113)		11,441
Total consumer	76,475		(4,738)		4,993		256		(8,492)		68,239
Total loans	$	383,702	$	(40,652)	$	16,965	$	(23,687)	$	(80,000)	$	280,015
Allowance for unfunded commitments

Asset-based lending	$	901	$	—	$	—	$	—	$	(43)	$	857
Commercial and industrial(a)	21,411		—		—		—		(3,809)		17,601
Commercial real estate — owner occupied	266		—		—		—		(58)		208
Commercial and business lending	22,577		—		—		—		(3,911)		18,667
Commercial real estate — investor	636		—		—		—		300		936
Real estate construction	18,887		—		—		—		(3,301)		15,586
Commercial real estate lending	19,523		—		—		—		(3,001)		16,522
Total commercial	42,101		—		—		—		(6,912)		35,189


Home equity	3,118		—		—		—		(526)		2,592
Other consumer	2,557		—		—		—		(563)		1,995
Total consumer	5,675		—		—		—		(1,088)		4,587
Total loans	$	47,776	$	—	$	—	$	—	$	(8,000)	$	39,776
Allowance for credit losses on loans
PPP	$	531	$	—	$	—	$	—	$	(480)	$	51	0.08	%
Asset-based lending	2,978		—		412		412		1,649		5,040		2.83	%
Commercial and industrial(a)	162,126		(21,564)		8,152		(13,412)		(45,490)		103,225		1.26	%
Commercial real estate — owner occupied	11,539		—		120		120		22		11,681		1.20	%
Commercial and business lending	177,175		(21,564)		8,684		(12,880)		(44,299)		119,997		1.27	%
Commercial real estate — investor	94,071		(14,346)		3,162		(11,184)		(9,148)		73,739		1.68	%
Real estate construction	78,080		(5)		126		121		(24,972)		53,229		2.94	%
Commercial real estate lending	172,152		(14,351)		3,288		(11,063)		(34,121)		126,968		2.05	%
Total commercial	349,327		(35,915)		11,972		(23,943)		(78,419)		246,965		1.58	%
Residential mortgage	42,996		(880)		841		(38)		(2,170)		40,787		0.54	%
Auto finance	174		(22)		31		9		1,816		1,999		1.40	%
Home equity	21,967		(668)		2,854		2,186		(7,550)		16,603		2.79	%
Other consumer	17,013		(3,168)		1,267		(1,901)		(1,676)		13,436		4.45	%
Total consumer	82,150		(4,738)		4,993		256		(9,581)		72,825		0.85	%
Total loans	$	431,478	$	(40,652)	$	16,965	$	(23,687)	$	(88,000)	$	319,791	1.32	%