The period end loan composition was as follows.

					September 30,		December 31,
					2012		2011
					($ in Thousands)
Commercial and industrial				$	4,265,356	$	3,724,736
Commercial real estate - owner occupied					1,197,517		1,086,829
Lease financing					60,818		58,194
	Commercial and business lending				5,523,691		4,869,759
Commercial real estate - investor					2,787,158		2,563,767
Real estate construction					611,186		584,046
	Commercial real estate lending				3,398,344		3,147,813
		Total commercial			8,922,035		8,017,572
Home equity					2,356,900		2,504,704
Installment					482,451		557,782
	Total retail				2,839,351		3,062,486
Residential mortgage					3,204,828		2,951,013
		Total consumer			6,044,179		6,013,499
			Total loans	$	14,966,214	$	14,031,071

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. In general, the change in the allowance for loan losses is a function of a number of factors, including but not limited to changes in the loan portfolio, net charge offs, trends in past due and impaired loans, and the level of potential problem loans. Management considers the allowance for loan losses a critical accounting policy, as assessing these numerous factors involves significant judgment.

A summary of the changes in the allowance for loan losses by portfolio segment for the nine months ended September 30, 2012, was as follows.

$ in Thousands	Commercial and industrial		Commercial real estate - owner occupied		Lease financing		Commercial real estate - investor		Real estate construction			Home equity	Installment		Residential mortgage			Total

Balance at Dec 31, 2011	$	124,374	$	36,200	$	2,567	$	86,689	$	21,327	$	70,144	$	6,623	$	30,227	$	378,151
Provision for loan losses		8,943		(2,492)		(1,677)		(11,965)		(6,684)		6,293		163		7,419		-
Charge offs		(35,830)		(2,402)		(21)		(10,968)		(2,139)		(25,146)		(1,763)		(8,360)		(86,629)
Recoveries		13,583		831		1,877		1,532		1,538		2,990		967		310		23,628
Balance at Sep 30, 2012	$	111,070	$	32,137	$	2,746	$	65,288	$	14,042	$	54,281	$	5,990	$	29,596	$	315,150

Allowance for loan losses:
Ending balance impaired loans individually evaluated for impairment	$	7,814	$	1,042	$	-	$	8,759	$	1,653	$	888	$	515	$	1,870	$	22,541
Ending balance impaired loans collectively evaluated for impairment	$	7,578	$	4,721	$	22	$	7,507	$	3,072	$	24,343	$	1,796	$	14,241	$	63,280
Ending balance all other loans collectively evaluated for impairment	$	95,678	$	26,374	$	2,724	$	49,022	$	9,317	$	29,050	$	3,679	$	13,485	$	229,329
Total	$	111,070	$	32,137	$	2,746	$	65,288	$	14,042	$	54,281	$	5,990	$	29,596	$	315,150

Loans:
Ending balance impaired loans individually evaluated for impairment	$	28,409	$	17,372	$	5,386	$	59,441	$	24,359	$	4,880	$	515	$	11,565	$	151,927
Ending balance impaired loans collectively evaluated for impairment	$	48,300	$	25,495	$	541	$	61,330	$	10,886	$	43,054	$	3,050	$	69,380	$	262,036
Ending balance all other loans collectively evaluated for impairment	$	4,188,647	$	1,154,650	$	54,891	$	2,666,387	$	575,941	$	2,308,966	$	478,886	$	3,123,883	$	14,552,251
Total	$	4,265,356	$	1,197,517	$	60,818	$	2,787,158	$	611,186	$	2,356,900	$	482,451	$	3,204,828	$	14,966,214

The allocation methodology used by the Corporation includes allocations for specifically identified impaired loans and loss factor allocations, (used for both criticized and non-criticized loan categories) with a component primarily based on historical loss rates and a component primarily based on other qualitative factors. Management allocates the allowance for loan losses by pools of risk within each loan portfolio. The methodology used at September 30, 2012 and December 31, 2011 was generally comparable.

At September 30, 2012, the allowance for loan losses declined and the loan portfolio segment allocations also declined relative to December 31, 2011. The change in the allowance for loan losses portfolio allocations was primarily due to improved credit quality metrics. The allocation of the allowance for loan losses by loan portfolio is made for analytical purposes and is not necessarily indicative of the trend of future loan losses in any particular category. The total allowance for loan losses is available to absorb losses from any segment of the loan portfolio.

For comparison purposes, a summary of the changes in the allowance for loan losses by portfolio segment for the year ended December 31, 2011, was as follows.

$ in Thousands	Commercial and industrial		Commercial real estate - owner occupied			Lease financing	Commercial real estate - investor		Real estate construction		Home equity		Installment		Residential mortgage			Total
Balance at Dec 31, 2010	$	137,770	$	54,320	$	7,396	$	111,264	$	56,772	$	55,090	$	17,328	$	36,873	$	476,813
Provision for loan losses		8,916		(11,144)		(6,611)		(762)		(4,744)		54,476		3,845		8,024		52,000
Charge offs		(38,662)		(9,485)		(173)		(29,479)		(38,222)		(42,623)		(16,134)		(14,954)		(189,732)
Recoveries		16,350		2,509		1,955		5,666		7,521		3,201		1,584		284		39,070
Balance at Dec 31, 2011	$	124,374	$	36,200	$	2,567	$	86,689	$	21,327	$	70,144	$	6,623	$	30,227	$	378,151

Allowance for loan losses:
Ending balance impaired loans individually evaluated for impairment	$	7,619	$	3,608	$	161	$	16,623	$	4,919	$	2,922	$	-	$	957	$	36,809
Ending balance impaired loans collectively evaluated for impairment	$	7,688	$	3,962	$	34	$	8,378	$	4,266	$	27,914	$	2,021	$	13,707	$	67,970
Ending balance all other loans collectively evaluated for impairment	$	109,067	$	28,630	$	2,372	$	61,688	$	12,142	$	39,308	$	4,602	$	15,563	$	273,372
Total	$	124,374	$	36,200	$	2,567	$	86,689	$	21,327	$	70,144	$	6,623	$	30,227	$	378,151

Loans:
Ending balance impaired loans individually evaluated for impairment	$	41,474	$	26,049	$	9,792	$	85,287	$	31,933	$	9,542	$	-	$	11,401	$	215,478
Ending balance impaired loans collectively evaluated for impairment	$	37,153	$	17,807	$	852	$	57,482	$	20,850	$	46,315	$	3,730	$	70,269	$	254,458
Ending balance all other loans collectively evaluated for impairment	$	3,646,109	$	1,042,973	$	47,550	$	2,420,998	$	531,263	$	2,448,847	$	554,052	$	2,869,343	$	13,561,135
Total	$	3,724,736	$	1,086,829	$	58,194	$	2,563,767	$	584,046	$	2,504,704	$	557,782	$	2,951,013	$	14,031,071

The following table presents commercial loans by credit quality indicator at September 30, 2012.

		Pass		Special Mention		Potential Problem		Impaired		Total
		($ in Thousands)
Commercial and industrial	$	3,918,190	$	149,569	$	120,888	$	76,709	$	4,265,356
Commercial real estate - owner occupied		984,133		50,483		120,034		42,867		1,197,517
Lease financing		52,424		2,253		214		5,927		60,818
Commercial and business lending		4,954,747		202,305		241,136		125,503		5,523,691
Commercial real estate - investor		2,466,151		67,190		133,046		120,771		2,787,158
Real estate construction		551,109		6,355		18,477		35,245		611,186
Commercial real estate lending		3,017,260		73,545		151,523		156,016		3,398,344
Total commercial	$	7,972,007	$	275,850	$	392,659	$	281,519	$	8,922,035

The following table presents commercial loans by credit quality indicator at December 31, 2011.

		Pass		Special Mention		Potential Problem		Impaired		Total
		($ in Thousands)
Commercial and industrial	$	3,283,090	$	209,713	$	153,306	$	78,627	$	3,724,736
Commercial real estate - owner occupied		853,517		53,090		136,366		43,856		1,086,829
Lease financing		46,570		822		158		10,644		58,194
Commercial and business lending		4,183,177		263,625		289,830		133,127		4,869,759
Commercial real estate - investor		2,055,124		135,668		230,206		142,769		2,563,767
Real estate construction		494,839		8,775		27,649		52,783		584,046
Commercial real estate lending		2,549,963		144,443		257,855		195,552		3,147,813
Total commercial	$	6,733,140	$	408,068	$	547,685	$	328,679	$	8,017,572

The following table presents consumer loans by credit quality indicator at September 30, 2012.

		Performing		30-89 Days Past Due		Potential Problem		Impaired		Total
		($ in Thousands)
Home equity	$	2,290,800	$	14,823	$	3,343	$	47,934	$	2,356,900
Installment		477,062		1,693		131		3,565		482,451
Total retail		2,767,862		16,516		3,474		51,499		2,839,351
Residential mortgage		3,108,808		6,878		8,197		80,945		3,204,828
Total consumer	$	5,876,670	$	23,394	$	11,671	$	132,444	$	6,044,179

The following table presents consumer loans by credit quality indicator at December 31, 2011.

		Performing		30-89 Days Past Due		Potential Problem		Impaired		Total
		($ in Thousands)
Home equity	$	2,431,207	$	12,189	$	5,451	$	55,857	$	2,504,704
Installment		551,227		2,592		233		3,730		557,782
Total retail		2,982,434		14,781		5,684		59,587		3,062,486
Residential mortgage		2,849,082		7,224		13,037		81,670		2,951,013
Total consumer	$	5,831,516	$	22,005	$	18,721	$	141,257	$	6,013,499

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, and sound nonaccrual and charge off policies.

For commercial loans, management has determined the pass credit quality indicator to include credits that exhibit acceptable financial statements, cash flow, and leverage. If any risk exists, it is mitigated by the loan structure, collateral, monitoring, or control. For consumer loans, performing loans include credits that are performing in accordance with the original contractual terms. 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 bank 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 impaired 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, 2012.

		30-59 Days Past Due		60-89 Days Past Due	90 Days or More Past Due *			Total Past Due		Current		Total
	($ in Thousands)
Accruing loans
Commercial and industrial	$	2,525	$	1,270	$	-	$	3,795	$	4,219,867	$	4,223,662
Commercial real estate - owner occupied		1,453		3,390		1,052		5,895		1,164,461		1,170,356
Lease financing		-		17		-		17		54,874		54,891
Commercial and business lending		3,978		4,677		1,052		9,707		5,439,202		5,448,909
Commercial real estate - investor		7,203		1,606		615		9,424		2,706,212		2,715,636
Real estate construction		1,057		197		-		1,254		578,248		579,502
Commercial real estate lending		8,260		1,803		615		10,678		3,284,460		3,295,138
Total commercial		12,238		6,480		1,667		20,385		8,723,662		8,744,047
Home equity		11,020		3,803		55		14,878		2,303,555		2,318,433
Installment		1,235		458		612		2,305		477,253		479,558
Total retail		12,255		4,261		667		17,183		2,780,808		2,797,991
Residential mortgage		6,214		664		-		6,878		3,139,126		3,146,004
Total consumer		18,469		4,925		667		24,061		5,919,934		5,943,995
Total accruing loans	$	30,707	$	11,405	$	2,334	$	44,446	$	14,643,596	$	14,688,042

Nonaccrual loans
Commercial and industrial	$	923	$	4,013	$	10,808	$	15,744	$	25,950	$	41,694
Commercial real estate - owner occupied		1,797		1,576		11,867		15,240		11,921		27,161
Lease financing		-		-		483		483		5,444		5,927
Commercial and business lending		2,720		5,589		23,158		31,467		43,315		74,782
Commercial real estate - investor		3,338		4,104		33,045		40,487		31,035		71,522
Real estate construction		-		288		16,578		16,866		14,818		31,684
Commercial real estate lending		3,338		4,392		49,623		57,353		45,853		103,206
Total commercial		6,058		9,981		72,781		88,820		89,168		177,988
Home equity		2,072		2,068		29,292		33,432		5,035		38,467
Installment		144		173		1,590		1,907		986		2,893
Total retail		2,216		2,241		30,882		35,339		6,021		41,360
Residential mortgage		2,018		4,237		41,173		47,428		11,396		58,824
Total consumer		4,234		6,478		72,055		82,767		17,417		100,184
Total nonaccrual loans	$	10,292	$	16,459	$	144,836	$	171,587	$	106,585	$	278,172

Total loans
Commercial and industrial	$	3,448	$	5,283	$	10,808	$	19,539	$	4,245,817	$	4,265,356
Commercial real estate - owner occupied		3,250		4,966		12,919		21,135		1,176,382		1,197,517
Lease financing		-		17		483		500		60,318		60,818
Commercial and business lending		6,698		10,266		24,210		41,174		5,482,517		5,523,691
Commercial real estate - investor		10,541		5,710		33,660		49,911		2,737,247		2,787,158
Real estate construction		1,057		485		16,578		18,120		593,066		611,186
Commercial real estate lending		11,598		6,195		50,238		68,031		3,330,313		3,398,344
Total commercial		18,296		16,461		74,448		109,205		8,812,830		8,922,035
Home equity		13,092		5,871		29,347		48,310		2,308,590		2,356,900
Installment		1,379		631		2,202		4,212		478,239		482,451
Total retail		14,471		6,502		31,549		52,522		2,786,829		2,839,351
Residential mortgage		8,232		4,901		41,173		54,306		3,150,522		3,204,828
Total consumer		22,703		11,403		72,722		106,828		5,937,351		6,044,179
Total loans	$	40,999	$	27,864	$	147,170	$	216,033	$	14,750,181	$	14,966,214

* The recorded investment in loans past due 90 days or more and still accruing totaled $2 million at September 30, 2012 (the same as the reported balances for the accruing loans noted above).

The following table presents loans by past due status at December 31, 2011.

		30-59 Days Past Due		60-89 Days Past Due	90 Days or More Past Due *			Total Past Due		Current		Total
	($ in Thousands)
Accruing loans
Commercial and industrial	$	3,513	$	5,230	$	3,755	$	12,498	$	3,656,163	$	3,668,661
Commercial real estate - owner occupied		6,788		304		-		7,092		1,044,019		1,051,111
Lease financing		31		73		-		104		47,446		47,550
Commercial and business lending		10,332		5,607		3,755		19,694		4,747,628		4,767,322
Commercial real estate - investor		2,770		2,200		-		4,970		2,459,445		2,464,415
Real estate construction		873		123		481		1,477		540,763		542,240
Commercial real estate lending		3,643		2,323		481		6,447		3,000,208		3,006,655
Total commercial		13,975		7,930		4,236		26,141		7,747,836		7,773,977
Home equity		9,399		2,790		-		12,189		2,445,608		2,457,797
Installment		1,784		808		689		3,281		551,786		555,067
Total retail		11,183		3,598		689		15,470		2,997,394		3,012,864
Residential mortgage		6,320		904		-		7,224		2,880,234		2,887,458
Total consumer		17,503		4,502		689		22,694		5,877,628		5,900,322
Total accruing loans	$	31,478	$	12,432	$	4,925	$	48,835	$	13,625,464	$	13,674,299

Nonaccrual loans
Commercial and industrial	$	5,374	$	6,933	$	20,792	$	33,099	$	22,976	$	56,075
Commercial real estate - owner occupied		2,190		185		19,724		22,099		13,619		35,718
Lease financing		-		-		858		858		9,786		10,644
Commercial and business lending		7,564		7,118		41,374		56,056		46,381		102,437
Commercial real estate - investor		2,332		2,730		31,529		36,591		62,761		99,352
Real estate construction		36		482		18,625		19,143		22,663		41,806
Commercial real estate lending		2,368		3,212		50,154		55,734		85,424		141,158
Total commercial		9,932		10,330		91,528		111,790		131,805		243,595
Home equity		2,818		2,408		34,976		40,202		6,705		46,907
Installment		403		373		599		1,375		1,340		2,715
Total retail		3,221		2,781		35,575		41,577		8,045		49,622
Residential mortgage		1,981		4,301		43,153		49,435		14,120		63,555
Total consumer		5,202		7,082		78,728		91,012		22,165		113,177
Total nonaccrual loans	$	15,134	$	17,412	$	170,256	$	202,802	$	153,970	$	356,772

Total loans
Commercial and industrial	$	8,887	$	12,163	$	24,547	$	45,597	$	3,679,139	$	3,724,736
Commercial real estate - owner occupied		8,978		489		19,724		29,191		1,057,638		1,086,829
Lease financing		31		73		858		962		57,232		58,194
Commercial and business lending		17,896		12,725		45,129		75,750		4,794,009		4,869,759
Commercial real estate - investor		5,102		4,930		31,529		41,561		2,522,206		2,563,767
Real estate construction		909		605		19,106		20,620		563,426		584,046
Commercial real estate lending		6,011		5,535		50,635		62,181		3,085,632		3,147,813
Total commercial		23,907		18,260		95,764		137,931		7,879,641		8,017,572
Home equity		12,217		5,198		34,976		52,391		2,452,313		2,504,704
Installment		2,187		1,181		1,288		4,656		553,126		557,782
Total retail		14,404		6,379		36,264		57,047		3,005,439		3,062,486
Residential mortgage		8,301		5,205		43,153		56,659		2,894,354		2,951,013
Total consumer		22,705		11,584		79,417		113,706		5,899,793		6,013,499
Total loans	$	46,612	$	29,844	$	175,181	$	251,637	$	13,779,434	$	14,031,071

* The recorded investment in loans past due 90 days or more and still accruing totaled $5 million at December 31, 2011 (the same as the reported balances for the accruing loans noted above).

The following table presents impaired loans at September 30, 2012.

		Recorded Investment		Unpaid Principal Balance		Related Allowance		YTD Average Recorded Investment		YTD Interest Income Recognized*
Loans with a related allowance		($ in Thousands)
Commercial and industrial	$	64,379	$	71,469	$	15,392	$	61,871	$	2,133
Commercial real estate - owner occupied		28,651		33,207		5,763		29,659		801
Lease financing		541		541		22		629		-
Commercial and business lending		93,571		105,217		21,177		92,159		2,934
Commercial real estate - investor		99,242		122,537		16,266		100,899		2,514
Real estate construction		19,393		26,048		4,725		20,931		273
Commercial real estate lending		118,635		148,585		20,991		121,830		2,787
Total commercial		212,206		253,802		42,168		213,989		5,721
Home equity		46,117		53,402		25,231		49,216		1,276
Installment		3,565		3,939		2,311		3,812		121
Total retail		49,682		57,341		27,542		53,028		1,397
Residential mortgage		74,082		81,538		16,111		76,284		1,505
Total consumer		123,764		138,879		43,653		129,312		2,902
Total loans	$	335,970	$	392,681	$	85,821	$	343,301	$	8,623

Loans with no related allowance
Commercial and industrial	$	12,330	$	20,446	$	-	$	12,932	$	98
Commercial real estate - owner occupied		14,216		17,290		-		15,250		197
Lease financing		5,386		5,386		-		7,564		-
Commercial and business lending		31,932		43,122		-		35,746		295
Commercial real estate - investor		21,529		32,191		-		23,201		46
Real estate construction		15,852		30,052		-		16,994		22
Commercial real estate lending		37,381		62,243		-		40,195		68
Total commercial		69,313		105,365		-		75,941		363
Home equity		1,817		2,206		-		1,985		2
Installment		-		-		-		-		-
Total retail		1,817		2,206		-		1,985		2
Residential mortgage		6,863		8,296		-		7,824		40
Total consumer		8,680		10,502		-		9,809		42
Total loans	$	77,993	$	115,867	$	-	$	85,750	$	405

Total
Commercial and industrial	$	76,709	$	91,915	$	15,392	$	74,803	$	2,231
Commercial real estate - owner occupied		42,867		50,497		5,763		44,909		998
Lease financing		5,927		5,927		22		8,193		-
Commercial and business lending		125,503		148,339		21,177		127,905		3,229
Commercial real estate - investor		120,771		154,728		16,266		124,100		2,560
Real estate construction		35,245		56,100		4,725		37,925		295
Commercial real estate lending		156,016		210,828		20,991		162,025		2,855
Total commercial		281,519		359,167		42,168		289,930		6,084
Home equity		47,934		55,608		25,231		51,201		1,278
Installment		3,565		3,939		2,311		3,812		121
Total retail		51,499		59,547		27,542		55,013		1,399
Residential mortgage		80,945		89,834		16,111		84,108		1,545
Total consumer		132,444		149,381		43,653		139,121		2,944
Total loans	$	413,963	$	508,548	$	85,821	$	429,051	$	9,028

*Interest income recognized included $5 million of interest income recognized on accruing restructured loans for the nine months ended September 30, 2012.

The following table presents impaired loans at December 31, 2011.

		Recorded Investment		Unpaid Principal Balance		Related Allowance		YTD Average Recorded Investment		YTD Interest Income Recognized*
Loans with a related allowance		($ in Thousands)
Commercial and industrial	$	57,380	$	65,945	$	15,307	$	65,042	$	2,265
Commercial real estate - owner occupied		27,456		31,221		7,570		28,938		587
Lease financing		1,176		1,176		195		1,792		40
Commercial and business lending		86,012		98,342		23,072		95,772		2,892
Commercial real estate - investor		101,704		117,469		25,001		107,153		3,552
Real estate construction		30,100		38,680		9,185		35,411		1,220
Commercial real estate lending		131,804		156,149		34,186		142,564		4,772
Total commercial		217,816		254,491		57,258		238,336		7,664
Home equity		52,756		58,221		30,836		56,069		1,909
Installment		3,730		4,059		2,021		4,135		217
Total retail		56,486		62,280		32,857		60,204		2,126
Residential mortgage		74,415		81,215		14,664		77,987		2,197
Total consumer		130,901		143,495		47,521		138,191		4,323
Total loans	$	348,717	$	397,986	$	104,779	$	376,527	$	11,987

Loans with no related allowance
Commercial and industrial	$	21,247	$	27,631	$	-	$	23,514	$	532
Commercial real estate - owner occupied		16,400		20,426		-		18,609		200
Lease financing		9,468		9,468		-		11,436		-
Commercial and business lending		47,115		57,525		-		53,559		732
Commercial real estate - investor		41,065		63,872		-		50,936		242
Real estate construction		22,683		41,636		-		30,937		330
Commercial real estate lending		63,748		105,508		-		81,873		572
Total commercial		110,863		163,033		-		135,432		1,304
Home equity		3,101		5,087		-		3,314		6
Installment		-		-		-		-		-
Total retail		3,101		5,087		-		3,314		6
Residential mortgage		7,255		7,806		-		7,376		117
Total consumer		10,356		12,893		-		10,690		123
Total loans	$	121,219	$	175,926	$	-	$	146,122	$	1,427

Total
Commercial and industrial	$	78,627	$	93,576	$	15,307	$	88,556	$	2,797
Commercial real estate - owner occupied		43,856		51,647		7,570		47,547		787
Lease financing		10,644		10,644		195		13,228		40
Commercial and business lending		133,127		155,867		23,072		149,331		3,624
Commercial real estate - investor		142,769		181,341		25,001		158,089		3,794
Real estate construction		52,783		80,316		9,185		66,348		1,550
Commercial real estate lending		195,552		261,657		34,186		224,437		5,344
Total commercial		328,679		417,524		57,258		373,768		8,968
Home equity		55,857		63,308		30,836		59,383		1,915
Installment		3,730		4,059		2,021		4,135		217
Total retail		59,587		67,367		32,857		63,518		2,132
Residential mortgage		81,670		89,021		14,664		85,363		2,314
Total consumer		141,257		156,388		47,521		148,881		4,446
Total loans	$	469,936	$	573,912	$	104,779	$	522,649	$	13,414

*Interest income recognized included $6 million of interest income recognized on accruing restructured loans for the year ended December 31, 2011.

Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are generally placed on nonaccrual status when contractually past due 90 days or more as to interest or principal payments, unless the loan is well secured and in the process of collection. Additionally, whenever management becomes aware of facts or circumstances that may adversely impact the collectability of principal or interest on loans, it is management's practice to place such loans on nonaccrual status immediately, rather than delaying such action until the loans become 90 days past due. When a loan is placed on nonaccrual status, previously accrued and uncollected interest is reversed, amortization of related deferred loan fees or costs is suspended, and income is recorded only to the extent that interest payments are subsequently received in cash and a determination has been made that the principal and interest of the loan is collectible. If collectability of the principal and interest is in doubt, payments received are applied to loan principal.

While an asset is in nonaccrual status, some or all of the cash interest payments received may be treated as interest income on a cash basis as long as the remaining recorded investment in the asset (i.e., after charge off of identified losses, if any) is deemed to be fully collectible. The determination as to the ultimate collectability of the asset's remaining recorded investment must be supported by a current, well documented credit evaluation of the borrower's financial condition and prospects for repayment, including consideration of the borrower's sustained historical repayment performance and other relevant factors. A nonaccrual loan is returned to accrual status when all delinquent principal and interest payments become current in accordance with the terms of the loan agreement, the borrower has demonstrated a period of sustained performance, and the ultimate collectability of the total contractual principal and interest is no longer in doubt. A sustained period of repayment performance generally would be a minimum of six months.

Loans are considered restructured loans if concessions have been granted to borrowers that are experiencing financial difficulty. The concessions granted generally involve the modification of terms of the loan, such as changes in payment schedule or interest rate, which generally would not otherwise be considered. Restructured loans can involve loans remaining on nonaccrual, moving to nonaccrual, or continuing on accrual status, depending on the individual facts and circumstances of the borrower. Nonaccrual restructured loans are included and treated with all other nonaccrual loans. In addition, all accruing restructured loans are reported as troubled debt restructurings which are considered and accounted for as impaired loans. Generally, restructured loans remain on nonaccrual until the customer has attained a sustained period of repayment performance under the modified loan terms (generally a minimum of six months). However, performance prior to the restructuring, or significant events that coincide with the restructuring, are considered in assessing whether the borrower can meet the new terms and whether the loan should be returned to or maintained on accrual status. If the borrower's ability to meet the revised payment schedule is not reasonably assured, the loan remains on nonaccrual status. The Corporation had a $46 million recorded investment in loans modified in a troubled debt restructuring for the nine months ended September 30, 2012, of which, $25 million were in accrual status and $21 million were in nonaccrual pending a sustained period of repayment.

As of September 30, 2012 and December 31, 2011, there were $74 million and $87 million, respectively, of nonaccrual restructured loans, and $136 million and $113 million, respectively, of performing restructured loans, included within impaired loans. All restructured loans are considered impaired in the calendar year of restructuring. In subsequent years, a restructured loan may cease being classified as impaired if the loan was modified at a market rate and has performed according to the modified terms for at least six months. A loan that has been modified at a below market rate will return to performing status if it satisfies the six month performance requirement; however, it will remain classified as a restructured loan. The following table presents nonaccrual and performing restructured loans by loan portfolio.

		September 30, 2012				December 31, 2011
		Performing Restructured Loans		Nonaccrual Restructured Loans *		Performing Restructured Loans		Nonaccrual Restructured Loans *
		($ in Thousands)
Commercial and industrial	$	35,015	$	15,414	$	22,552	$	12,211
Commercial real estate - owner occupied		15,706		11,692		8,138		9,706
Commercial real estate - investor		49,249		23,985		43,417		30,303
Real estate construction		3,561		6,468		10,977		14,253
Home equity		9,467		5,477		8,950		6,268
Installment		672		1,102		1,015		1,163
Residential mortgage		22,121		10,113		18,115		13,589
Total	$	135,791	$	74,251	$	113,164	$	87,493

* Nonaccrual restructured loans have been included with nonaccrual loans.

The following table provides the number of loans modified in a troubled debt restructuring by loan portfolio during the three and nine months ended September 30, 2012, and the recorded investment and unpaid principal balance as of September 30, 2012.

	Three Months Ended September 30, 2012					Nine Months Ended September 30, 2012
	Number of Loans		Recorded Investment (1)		Unpaid Principal Balance (2)	Number of Loans		Recorded Investment (1)		Unpaid Principal Balance (2)
	($ in Thousands)
Commercial and industrial	27	$	4,984	$	5,165	82	$	15,956	$	19,053
Commercial real estate - owner occupied	11		5,747		5,958	29		11,371		12,116
Commercial real estate - investor	3		3,201		3,583	25		12,514		13,400
Real estate construction	3		45		48	8		864		1,214
Home equity	9		619		652	33		1,796		1,845
Installment	5		138		140	10		219		222
Residential mortgage	1		108		108	15		3,145		3,329
Total	59	$	14,842	$	15,654	202	$	45,865	$	51,179

(1) Represents post-modification outstanding recorded investment.
(2) 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), principal reduction, or some combination of these concessions. During the three and nine months ended September 30, 2012, restructured loan modifications of commercial and industrial, commercial real estate and real estate construction loans primarily included maturity date extensions and payment schedule modifications. Restructured loan modifications of home equity and residential mortgage loans primarily included maturity date extensions, interest rate concessions, payment schedule modifications, or a combination of these concessions for the three and nine months ended September 30, 2012.

The following table provides the number of loans modified in a troubled debt restructuring during the previous 12 months which subsequently defaulted during the three and nine months ended September 30, 2012, as well as the recorded investment in these restructured loans as of September 30, 2012.

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.