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Loans Allowance for Loan Losses and Credit Quality
 12 Months Ended
Dec. 31, 2013
Loans Allowance for Loan Losses and Credit Quality Disclosure [Abstract]  
Loans, Allowance for Loan Losses, and Credit Quality

NOTE 3  LOANS:

 

Loans at December 31 are summarized below.

 

    20132012 
    ($ in Thousands) 
Commercial and industrial$4,822,680$4,502,021 
Commercial real estate - owner occupied 1,114,715 1,219,747 
Lease financing 55,483 64,196 
 Commercial and business lending 5,992,878 5,785,964 
Commercial real estate - investor 2,939,456 2,906,759 
Real estate construction 896,248 655,381 
 Commercial real estate lending 3,835,704 3,562,140 
  Total commercial 9,828,582 9,348,104 
Home equity 1,825,014 2,219,494 
Installment 407,074 466,727 
Residential mortgage 3,835,591 3,376,697 
  Total consumer 6,067,679 6,062,918 
   Total loans$15,896,261$15,411,022 

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

  2013 
   ($ in Thousands) 
Balance at beginning of year$36,971 
New loans 15,887 
Repayments (14,219) 
Balance at end of year$38,639 

A summary of the changes in the allowance for loan losses for the years indicated was as follows.
         
  201320122011 
  ($ in Thousands) 
Balance at beginning of year$297,409$378,151$476,813 
Provision for loan losses 10,000 3,000 52,000 
Charge offs (88,061) (117,046) (189,732) 
Recoveries 48,967 33,304 39,070 
 Net charge offs (39,094) (83,742) (150,662) 
Balance at end of year$268,315$297,409$378,151 

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 year ended December 31, 2013, was as follows.
                   
$ in ThousandsCommercial and industrialCommercial real estate - owner occupiedLease financingCommercial real estate- investorReal estate constructionHome equityInstallmentResidential mortgage Total
Balance at Dec 31, 2012$ 97,852$ 27,389$ 3,024$ 63,181$ 20,741$ 56,826$ 4,299$ 24,097$ 297,409
Provision for loan losses  12,930  (1,778)  (1,429)  (2,140)  541  (8,213)  (2,127)  12,216  10,000
Charge offs  (35,146)  (6,474)  (206)  (9,846)  (3,375)  (20,629)  (1,389)  (10,996)  (88,061)
Recoveries  28,865  339  218  6,961  5,511  4,212  1,633  1,228  48,967
Balance at Dec 31, 2013$ 104,501$ 19,476$ 1,607$ 58,156$ 23,418$ 32,196$ 2,416$ 26,545$ 268,315
                   
Allowance for loan losses:              
Ending balance impaired loans individually evaluated for impairment$ 7,994$ 1,019$ -$ 3,932$ 254$ 123$ -$ 315$ 13,637
Ending balance impaired loans collectively evaluated for impairment$ 3,923$ 1,936$ 29$ 3,963$ 2,162$ 13,866$ 487$ 11,872$ 38,238
Total impaired loans$ 11,917$ 2,955$ 29$ 7,895$ 2,416$ 13,989$ 487$ 12,187$ 51,875
Ending balance all other loans collectively evaluated for impairment$ 92,584$ 16,521$ 1,578$ 50,261$ 21,002$ 18,207$ 1,929$ 14,358$ 216,440
Total$ 104,501$ 19,476$ 1,607$ 58,156$ 23,418$ 32,196$ 2,416$ 26,545$ 268,315
                   
Loans:                  
Ending balance impaired loans individually evaluated for impairment$ 29,343$ 24,744$ -$ 32,367$ 3,777$ 929$ -$ 10,526$ 101,686
Ending balance impaired loans collectively evaluated for impairment$ 40,893$ 17,929$ 69$ 50,175$ 6,483$ 33,871$ 1,360$ 56,947$ 207,727
Impaired loan subtotal$ 70,236$ 42,673$ 69$ 82,542$ 10,260$ 34,800$ 1,360$ 67,473$ 309,413
Ending balance all other loans collectively evaluated for impairment$ 4,752,444$ 1,072,042$ 55,414$ 2,856,914$ 885,988$ 1,790,214$ 405,714$ 3,768,118$ 15,586,848
Total$ 4,822,680$ 1,114,715$ 55,483$ 2,939,456$ 896,248$ 1,825,014$ 407,074$ 3,835,591$ 15,896,261

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 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, 2012, was as follows.
                   
$ in ThousandsCommercial and industrialCommercial real estate - owner occupiedLease financingCommercial real estate- investorReal estate constructionHome equityInstallmentResidential 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  (1,645)  (5,184)  (645)  (14,304)  873  16,909  (501)  7,497  3,000
Charge offs  (43,240)  (4,080)  (797)  (14,000)  (3,588)  (34,125)  (3,057)  (14,159)  (117,046)
Recoveries  18,363  453  1,899  4,796  2,129  3,898  1,234  532  33,304
Balance at Dec 31, 2012$ 97,852$ 27,389$ 3,024$ 63,181$ 20,741$ 56,826$ 4,299$ 24,097$ 297,409
                   
Allowance for loan losses:              
Ending balance impaired loans individually evaluated for impairment$ 8,790$ 654$ -$ 5,241$ 1,079$ 868$ -$ 155$ 16,787
Ending balance impaired loans collectively evaluated for impairment$ 4,951$ 3,157$ -$ 4,446$ 2,332$ 23,712$ 1,155$ 12,751$ 52,504
Total impaired loans$ 13,741$ 3,811$ -$ 9,687$ 3,411$ 24,580$ 1,155$ 12,906$ 69,291
Ending balance all other loans collectively evaluated for impairment$ 84,111$ 23,578$ 3,024$ 53,494$ 17,330$ 32,246$ 3,144$ 11,191$ 228,118
Total$ 97,852$ 27,389$ 3,024$ 63,181$ 20,741$ 56,826$ 4,299$ 24,097$ 297,409
                   
Loans:                  
Ending balance impaired loans individually evaluated for impairment$ 27,213$ 16,602$ 3,024$ 48,894$ 20,794$ 4,671$ -$ 11,330$ 132,528
Ending balance impaired loans collectively evaluated for impairment$ 40,109$ 21,504$ 7$ 51,453$ 11,038$ 44,512$ 2,491$ 70,313$ 241,427
Impaired loan subtotal$ 67,322$ 38,106$ 3,031$ 100,347$ 31,832$ 49,183$ 2,491$ 81,643$ 373,955
Ending balance all other loans collectively evaluated for impairment$ 4,434,699$ 1,181,641$ 61,165$ 2,806,412$ 623,549$ 2,170,311$ 464,236$ 3,295,054$ 15,037,067
Total$ 4,502,021$ 1,219,747$ 64,196$ 2,906,759$ 655,381$ 2,219,494$ 466,727$ 3,376,697$ 15,411,022

The following table presents commercial loans by credit quality indicator at December 31, 2013.
             
    Pass Special Mention Potential Problem Impaired Total
    ($ Thousands)
Commercial and industrial$ 4,485,160$ 153,615  113,669$ 70,236$ 4,822,680
Commercial real estate - owner occupied  959,849  55,404  56,789  42,673  1,114,715
Lease financing  52,733  897  1,784  69  55,483
 Commercial and business lending  5,497,742  209,916  172,242  112,978  5,992,878
Commercial real estate - investor  2,740,255  64,230  52,429  82,542  2,939,456
Real estate construction  877,911  2,814  5,263  10,260  896,248
 Commercial real estate lending  3,618,166  67,044  57,692  92,802  3,835,704
  Total commercial$ 9,115,908$ 276,960$ 229,934$ 205,780$ 9,828,582
             
The following table presents commercial loans by credit quality indicator at December 31, 2012.
             
    Pass Special Mention Potential Problem Impaired Total
    ($ Thousands)
Commercial and industrial$ 4,208,478$ 97,787  128,434$ 67,322$ 4,502,021
Commercial real estate - owner occupied  1,030,632  51,417  99,592  38,106  1,219,747
Lease financing  58,099  2,802  264  3,031  64,196
 Commercial and business lending  5,297,209  152,006  228,290  108,459  5,785,964
Commercial real estate - investor  2,634,035  65,309  107,068  100,347  2,906,759
Real estate construction  603,481  6,976  13,092  31,832  655,381
 Commercial real estate lending  3,237,516  72,285  120,160  132,179  3,562,140
  Total commercial$ 8,534,725$ 224,291$ 348,450$ 240,638$ 9,348,104

The following table presents consumer loans by credit quality indicator at December 31, 2013.
             
    Performing 30-89 Days Past Due Potential Problem Impaired Total
    ($ Thousands)
Home equity$ 1,777,421$ 10,680  2,113$ 34,800$ 1,825,014
Installment  404,514  1,150  50  1,360  407,074
Residential mortgage  3,758,688  6,118  3,312  67,473  3,835,591
 Total consumer$ 5,940,623$ 17,948$ 5,475$ 103,633$ 6,067,679
             
The following table presents consumer loans by credit quality indicator at December 31, 2012.
             
    Performing 30-89 Days Past Due Potential Problem Impaired Total
    ($ Thousands)
Home equity$ 2,153,103$ 13,538  3,670$ 49,183$ 2,219,494
Installment  462,016  2,109  111  2,491  466,727
Residential mortgage  3,276,889  9,403  8,762  81,643  3,376,697
 Total consumer$ 5,892,008$ 25,050$ 12,543$ 133,317$ 6,062,918

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, 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. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Special mention credits have potential weaknesses that deserve management's attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the credit. Potential problem loans are considered inadequately protected by the current net worth and paying capacity of the obligor or the collateral pledged. These loans generally have a well-defined weakness, or weaknesses, that may jeopardize liquidation of the debt and are characterized by the distinct possibility that the 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. See Note 1 for the Corporation's accounting policy for loans.

 

The following table presents loans by past due status at December 31, 2013.
                
     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$ 3,390$ 3,436$ 1,199$ 8,025$ 4,776,936$ 4,784,961
Commercial real estate - owner occupied  1,015  2,091  -  3,106  1,081,945  1,085,051
Lease financing  -  -  -  -  55,414  55,414
 Commercial and business lending  4,405  5,527  1,199  11,131  5,914,295  5,925,426
Commercial real estate - investor  9,081  14,134  -  23,215  2,878,645  2,901,860
Real estate construction  836  1,118  -  1,954  887,827  889,781
 Commercial real estate lending  9,917  15,252  -  25,169  3,766,472  3,791,641
  Total commercial  14,322  20,779  1,199  36,300  9,680,767  9,717,067
Home equity  8,611  2,069  346  11,026  1,788,821  1,799,847
Installment  885  265  637  1,787  404,173  405,960
Residential mortgage  5,253  865  168  6,286  3,781,673  3,787,959
  Total consumer  14,749  3,199  1,151  19,099  5,974,667  5,993,766
   Total accruing loans$ 29,071$ 23,978$ 2,350$ 55,399$ 15,655,434$ 15,710,833
                
Nonaccrual loans            
Commercial and industrial$ 998$ 1,764$ 9,765$ 12,527$ 25,192$ 37,719
Commercial real estate - owner occupied  2,482  1,724  11,125  15,331  14,333  29,664
Lease financing  -  -  69  69  -  69
 Commercial and business lending  3,480  3,488  20,959  27,927  39,525  67,452
Commercial real estate - investor  3,408  899  20,466  24,773  12,823  37,596
Real estate construction  2,376  -  2,267  4,643  1,824  6,467
 Commercial real estate lending  5,784  899  22,733  29,416  14,647  44,063
  Total commercial  9,264  4,387  43,692  57,343  54,172  111,515
Home equity  1,725  1,635  14,331  17,691  7,476  25,167
Installment  129  24  289  442  672  1,114
Residential mortgage  3,199  3,257  26,201  32,657  14,975  47,632
  Total consumer  5,053  4,916  40,821  50,790  23,123  73,913
   Total nonaccrual loans$ 14,317$ 9,303$ 84,513$ 108,133$ 77,295$ 185,428
                
Total loans            
Commercial and industrial$ 4,388$ 5,200$ 10,964$ 20,552$ 4,802,128$ 4,822,680
Commercial real estate - owner occupied  3,497  3,815  11,125  18,437  1,096,278  1,114,715
Lease financing  -  -  69  69  55,414  55,483
 Commercial and business lending  7,885  9,015  22,158  39,058  5,953,820  5,992,878
Commercial real estate - investor  12,489  15,033  20,466  47,988  2,891,468  2,939,456
Real estate construction  3,212  1,118  2,267  6,597  889,651  896,248
 Commercial real estate lending  15,701  16,151  22,733  54,585  3,781,119  3,835,704
  Total commercial  23,586  25,166  44,891  93,643  9,734,939  9,828,582
Home equity  10,336  3,704  14,677  28,717  1,796,297  1,825,014
Installment  1,014  289  926  2,229  404,845  407,074
Residential mortgage  8,452  4,122  26,369  38,943  3,796,648  3,835,591
  Total consumer  19,802  8,115  41,972  69,889  5,997,790  6,067,679
   Total loans$ 43,388$ 33,281$ 86,863$ 163,532$ 15,732,729$ 15,896,261
                
* The recorded investment in loans past due 90 days or more and still accruing totaled $2 million at December 31, 2013 (the same as the reported balances for the accruing loans noted above).

The following table presents loans by past due status at December 31, 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$ 9,557$ 1,782$ 79$ 11,418$ 4,451,421$ 4,462,839
Commercial real estate - owner occupied  10,420  633  308  11,361  1,184,132  1,195,493
Lease financing  -  12  -  12  61,153  61,165
 Commercial and business lending  19,977  2,427  387  22,791  5,696,706  5,719,497
Commercial real estate - investor  8,424  5,048  366  13,838  2,834,234  2,848,072
Real estate construction  1,628  1,527  283  3,438  624,641  628,079
 Commercial real estate lending  10,052  6,575  649  17,276  3,458,875  3,476,151
  Total commercial  30,029  9,002  1,036  40,067  9,155,581  9,195,648
Home equity  10,151  3,387  96  13,634  2,166,645  2,180,279
Installment  1,300  809  1,013  3,122  461,767  464,889
Residential mortgage  8,473  930  144  9,547  3,307,791  3,317,338
  Total consumer  19,924  5,126  1,253  26,303  5,936,203  5,962,506
   Total accruing loans$ 49,953$ 14,128$ 2,289$ 66,370$ 15,091,784$ 15,158,154
                
Nonaccrual loans            
Commercial and industrial$ 8,559$ 791$ 11,962$ 21,312$ 17,870$ 39,182
Commercial real estate - owner occupied  1,489  1,749  11,819  15,057  9,197  24,254
Lease financing  15  -  9  24  3,007  3,031
 Commercial and business lending  10,063  2,540  23,790  36,393  30,074  66,467
Commercial real estate - investor  197  3,072  30,928  34,197  24,490  58,687
Real estate construction  16  -  9,639  9,655  17,647  27,302
 Commercial real estate lending  213  3,072  40,567  43,852  42,137  85,989
  Total commercial  10,276  5,612  64,357  80,245  72,211  152,456
Home equity  1,456  2,518  28,474  32,448  6,767  39,215
Installment  153  141  586  880  958  1,838
Residential mortgage  2,135  4,321  38,739  45,195  14,164  59,359
  Total consumer  3,744  6,980  67,799  78,523  21,889  100,412
   Total nonaccrual loans$ 14,020$ 12,592$ 132,156$ 158,768$ 94,100$ 252,868
                
Total loans            
Commercial and industrial$ 18,116$ 2,573$ 12,041$ 32,730$ 4,469,291$ 4,502,021
Commercial real estate - owner occupied  11,909  2,382  12,127  26,418  1,193,329  1,219,747
Lease financing  15  12  9  36  64,160  64,196
 Commercial and business lending  30,040  4,967  24,177  59,184  5,726,780  5,785,964
Commercial real estate - investor  8,621  8,120  31,294  48,035  2,858,724  2,906,759
Real estate construction  1,644  1,527  9,922  13,093  642,288  655,381
 Commercial real estate lending  10,265  9,647  41,216  61,128  3,501,012  3,562,140
  Total commercial  40,305  14,614  65,393  120,312  9,227,792  9,348,104
Home equity  11,607  5,905  28,570  46,082  2,173,412  2,219,494
Installment  1,453  950  1,599  4,002  462,725  466,727
Residential mortgage  10,608  5,251  38,883  54,742  3,321,955  3,376,697
  Total consumer  23,668  12,106  69,052  104,826  5,958,092  6,062,918
   Total loans$ 63,973$ 26,720$ 134,445$ 225,138$ 15,185,884$ 15,411,022
                
* The recorded investment in loans past due 90 days or more and still accruing totaled $2 million at December 31, 2012 (the same as the reported balances for the accruing loans noted above).

The following table presents impaired loans at December 31, 2013.
              
     Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized*
Loans with a related allowance  ($ in Thousands)
Commercial and industrial$ 57,857$ 65,443$ 11,917$ 61,000$ 1,741
Commercial real estate - owner occupied  22,651  25,072  2,955  24,549  995
Lease financing  69  69  29  76  -
 Commercial and business lending  80,577  90,584  14,901  85,625  2,736
Commercial real estate - investor  64,647  68,228  7,895  68,776  2,735
Real estate construction  8,815  12,535  2,416  9,796  236
 Commercial real estate lending  73,462  80,763  10,311  78,572  2,971
  Total commercial  154,039  171,347  25,212  164,197  5,707
Home equity  34,707  40,344  13,989  36,623  1,518
Installment  1,360  1,676  487  1,753  100
Residential mortgage  60,157  69,699  12,187  62,211  1,861
  Total consumer  96,224  111,719  26,663  100,587  3,479
   Total loans$ 250,263$ 283,066$ 51,875$ 264,784$ 9,186
              
Loans with no related allowance           
Commercial and industrial$ 12,379$ 19,556$ -$ 14,291$ 306
Commercial real estate - owner occupied  20,022  22,831  -  20,602  315
Lease financing  -  -  -  -  -
 Commercial and business lending  32,401  42,387  -  34,893  621
Commercial real estate - investor  17,895  25,449  -  19,354  130
Real estate construction  1,445  1,853  -  1,576  13
 Commercial real estate lending  19,340  27,302  -  20,930  143
  Total commercial  51,741  69,689  -  55,823  764
Home equity  93  92  -  94  2
Installment  -  -  -  -  -
Residential mortgage  7,316  8,847  -  7,321  185
  Total consumer  7,409  8,939  -  7,415  187
   Total loans$ 59,150$ 78,628$ -$ 63,238$ 951
              
Total          
Commercial and industrial$ 70,236$ 84,999$ 11,917$ 75,291$ 2,047
Commercial real estate - owner occupied  42,673  47,903  2,955  45,151  1,310
Lease financing  69  69  29  76  -
 Commercial and business lending  112,978  132,971  14,901  120,518  3,357
Commercial real estate - investor  82,542  93,677  7,895  88,130  2,865
Real estate construction  10,260  14,388  2,416  11,372  249
 Commercial real estate lending  92,802  108,065  10,311  99,502  3,114
  Total commercial  205,780  241,036  25,212  220,020  6,471
Home equity  34,800  40,436  13,989  36,717  1,520
Installment  1,360  1,676  487  1,753  100
Residential mortgage  67,473  78,546  12,187  69,532  2,046
  Total consumer  103,633  120,658  26,663  108,002  3,666
   Total loans$ 309,413$ 361,694$ 51,875$ 328,022$ 10,137
              
*Interest income recognized included $6 million of interest income recognized on accruing restructured loans for the year ended December 31, 2013.

The following table presents impaired loans at December 31, 2012.
              
     Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized*
Loans with a related allowance  ($ in Thousands)
Commercial and industrial$ 57,985$ 65,521$ 13,741$ 56,508$ 2,187
Commercial real estate - owner occupied  24,600  27,700  3,811  26,531  1,043
Lease financing  7  7  -  120  -
 Commercial and business lending  82,592  93,228  17,552  83,159  3,230
Commercial real estate - investor  80,766  96,581  9,687  85,642  2,891
Real estate construction  16,299  22,311  3,411  19,122  437
 Commercial real estate lending  97,065  118,892  13,098  104,764  3,328
  Total commercial  179,657  212,120  30,650  187,923  6,558
Home equity  47,113  54,456  24,580  50,334  1,962
Installment  2,491  2,847  1,155  2,773  172
Residential mortgage  72,408  81,959  12,906  76,989  2,211
  Total consumer  122,012  139,262  38,641  130,096  4,345
   Total loans$ 301,669$ 351,382$ 69,291$ 318,019$ 10,903
              
Loans with no related allowance           
Commercial and industrial$ 9,337$ 16,339$ -$ 10,883$ 229
Commercial real estate - owner occupied  13,506  16,582  -  14,425  68
Lease financing  3,024  3,024  -  3,896  -
 Commercial and business lending  25,867  35,945  -  29,204  297
Commercial real estate - investor  19,581  28,531  -  20,490  173
Real estate construction  15,533  24,724  -  18,350  109
 Commercial real estate lending  35,114  53,255  -  38,840  282
  Total commercial  60,981  89,200  -  68,044  579
Home equity  2,070  2,269  -  2,164  36
Installment  -  -  -  -  -
Residential mortgage  9,235  12,246  -  11,566  208
  Total consumer  11,305  14,515  -  13,730  244
   Total loans$ 72,286$ 103,715$ -$ 81,774$ 823
              
Total          
Commercial and industrial$ 67,322$ 81,860$ 13,741$ 67,391$ 2,416
Commercial real estate - owner occupied  38,106  44,282  3,811  40,956  1,111
Lease financing  3,031  3,031  -  4,016  -
 Commercial and business lending  108,459  129,173  17,552  112,363  3,527
Commercial real estate - investor  100,347  125,112  9,687  106,132  3,064
Real estate construction  31,832  47,035  3,411  37,472  546
 Commercial real estate lending  132,179  172,147  13,098  143,604  3,610
  Total commercial  240,638  301,320  30,650  255,967  7,137
Home equity  49,183  56,725  24,580  52,498  1,998
Installment  2,491  2,847  1,155  2,773  172
Residential mortgage  81,643  94,205  12,906  88,555  2,419
  Total consumer  133,317  153,777  38,641  143,826  4,589
   Total loans$ 373,955$ 455,097$ 69,291$ 399,793$ 11,726
              
*Interest income recognized included $6 million of interest income recognized on accruing restructured loans for the year ended December 31, 2012.

 

Troubled Debt Restructurings (“Restructured Loans”):

Loans are considered restructured loans if concessions have been granted to borrowers that are experiencing financial difficulty. See Note 1 for the Corporation's accounting policy for troubled debt restructurings. The Corporation had a $64 million recorded investment in loans modified in a troubled debt restructuring during the year ended December 31, 2013, of which, $42 million were in accrual status and $22 million were in nonaccrual status pending a sustained period of repayment. As of December 31, 2013, there were $8 million of commitments to lend additional funds to borrowers with restructured loans. The following table presents nonaccrual and performing restructured loans by loan portfolio.

 

  December 31, 2013 December 31, 2012 
  Performing Restructured Loans Nonaccrual Restructured Loans * Performing Restructured Loans Nonaccrual Restructured Loans * 
  ($ in Thousands) 
Commercial and industrial$ 32,517$ 6,900$ 28,140$ 12,496 
Commercial real estate - owner occupied  13,009  10,999  13,852  11,514 
Commercial real estate - investor  44,946  18,069  41,660  25,221 
Real estate construction   3,793  2,065  4,530  6,798 
Home equity  9,633  5,419  9,968  6,698 
Installment  246  451  653  674 
Residential mortgage  19,841  15,682  22,284  17,189 
 $ 123,985$ 59,585$ 121,087$ 80,590 
          
* Nonaccrual restructured loans have been included within nonaccrual loans.   

The following table provides the number of loans modified in a troubled debt restructuring by loan portfolio during the years ended December 31, 2013 and 2012, respectively, and the recorded investment and unpaid principal balance as of December 31, 2013 and 2012, respectively.

  Year Ended December 31, 2013 Year Ended December 31, 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  48$ 11,833$ 14,543  85$ 12,827$ 15,834
Commercial real estate - owner occupied  12  8,823  9,035  27  11,978  12,766
Commercial real estate - investor  25  26,480  28,516  25  12,379  13,569
Real estate construction   9  1,822  1,961  31  2,955  3,549
Home equity  88  4,642  4,958  111  4,870  6,143
Installment  3  193  200  13  298  302
Residential mortgage  93  10,259  12,106  121  14,292  16,787
   278$ 64,052$ 71,319  413$ 59,599$ 68,950
             
(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), non-reaffirmed Chapter 7 bankruptcies, principal reduction, or some combination of these concessions. For the year ended December 31, 2013, 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, non-reaffirmed Chapter 7 bankruptcies, or a combination of these concessions for the year ended December 31, 2013.

 

The following table provides the number of loans modified in a troubled debt restructuring during the previous 12 months which subsequently defaulted during the years ended December 31, 2013 and 2012, respectively, as well as the recorded investment in these restructured loans as of December 31, 2013 and 2012, respectively.

 

  Year Ended December 31, 2013 Year Ended December 31, 2012
  Number of Loans Recorded Investment Number of Loans Recorded Investment
  ($ in Thousands)
Commercial and industrial 15$ 1,493 16$ 1,736
Commercial real estate - owner occupied 4  542 10  4,729
Commercial real estate - investor 4  1,784 13  10,854
Real estate construction  4  80 5  1,695
Home equity 14  1,220 14  2,049
Installment  ―  ― 1  12
Residential mortgage 23  4,137 10  1,499
  64$ 9,256 69$ 22,574
         

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.