NOTE 7: Loans, Allowance for Credit Losses, and Credit Quality

The period end loan composition was as follows.



	March 31, 2015		December 31, 2014
	($ in Thousands)
Commercial and industrial	$	6,140,420	$	5,905,902
Commercial real estate - owner occupied	1,003,885		1,007,937
Lease financing	49,496		51,529
Commercial and business lending	7,193,801		6,965,368
Commercial real estate - investor	3,086,980		3,056,485
Real estate construction	1,019,571		1,008,956
Commercial real estate lending	4,106,551		4,065,441
Total commercial	11,300,352		11,030,809
Home equity	1,583,614		1,636,058
Installment and credit cards	436,492		454,219
Residential mortgage	4,658,574		4,472,760
Total consumer	6,678,680		6,563,037
Total loans	$	17,979,032	$	17,593,846

A summary of the changes in the allowance for credit losses was as follows.



	Three Months Ended March 31, 2015			Year Ended December 31, 2014
	($ in Thousands)
Allowance for Loan Losses:
Balance at beginning of period	$	266,302		$	268,315
Provision for loan losses	4,500			13,000
Charge offs	(13,270		)	(44,096		)
Recoveries	7,736			29,083
Net charge offs	(5,534		)	(15,013		)
Balance at end of period	$	265,268		$	266,302
Allowance for Unfunded Commitments:
Balance at beginning of period	$	24,900		$	21,900
Provision for unfunded commitments	—			3,000
Balance at end of period	$	24,900		$	24,900
Allowance for Credit Losses	$	290,168		$	291,202

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.

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 determination of the appropriate level of the allowance for unfunded commitments is based upon an evaluation of the unfunded credit facilities, including an assessment of historical commitment utilization experience and credit risk grading of the loan. Net adjustments to the allowance for unfunded commitments are included in provision for credit losses in the consolidated statements of income. See Note 13 for additional information on the allowance for unfunded commitments.

A summary of the changes in the allowance for loan losses by portfolio segment for the three months ended March 31, 2015, 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 and credit cards			Residential mortgage			Total
Balance at Dec 31, 2014	$	116,025		$	16,510		$	1,610		$	46,333		$	20,999		$	30,359		$	6,435		$	28,031		$	266,302
Provision for loan losses	6,836			3,753			(130		)	(4,503		)	(402		)	348			359			(1,761		)	4,500
Charge offs	(6,829		)	(879		)	—			(1,002		)	—			(2,674		)	(938		)	(948		)	(13,270		)
Recoveries	2,179			140			—			3,531			743			669			169			305			7,736
Balance at Mar 31, 2015	$	118,211		$	19,524		$	1,480		$	44,359		$	21,340		$	28,702		$	6,025		$	25,627		$	265,268
Allowance for loan losses:
Ending balance impaired loans individually evaluated for impairment	$	5,591		$	910		$	510		$	689		$	240		$	10		$	—		$	226		$	8,176
Ending balance impaired loans collectively evaluated for impairment	$	2,038		$	1,149		$	—		$	1,339		$	801		$	12,350		$	264		$	11,269		$	29,210
Total impaired loans	$	7,629		$	2,059		$	510		$	2,028		$	1,041		$	12,360		$	264		$	11,495		$	37,386
Ending balance all other loans collectively evaluated for impairment	$	110,582		$	17,465		$	970		$	42,331		$	20,299		$	16,342		$	5,761		$	14,132		$	227,882
Total	$	118,211		$	19,524		$	1,480		$	44,359		$	21,340		$	28,702		$	6,025		$	25,627		$	265,268
Loans:
Ending balance impaired loans individually evaluated for impairment	$	58,091		$	17,133		$	1,720		$	10,297		$	3,843		$	911		$	—		$	9,761		$	101,756
Ending balance impaired loans collectively evaluated for impairment	$	29,995		$	14,508		$	—		$	26,220		$	2,297		$	29,255		$	1,406		$	57,726		$	161,407
Total impaired loans	$	88,086		$	31,641		$	1,720		$	36,517		$	6,140		$	30,166		$	1,406		$	67,487		$	263,163
Ending balance all other loans collectively evaluated for impairment	$	6,052,334		$	972,244		$	47,776		$	3,050,463		$	1,013,431		$	1,553,448		$	435,086		$	4,591,087		$	17,715,869
Total	$	6,140,420		$	1,003,885		$	49,496		$	3,086,980		$	1,019,571		$	1,583,614		$	436,492		$	4,658,574		$	17,979,032

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. At March 31, 2015, $27 million of the commercial and industrial allowance for loan losses was attributable to Oil and Gas related credits, compared to $17 million at December 31, 2014. This allocated allowance for loan losses represented 3.46% and 2.26% of period end Oil and Gas related loans at March 31, 2015 and December 31, 2014, respectively. 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, 2014, 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 and credit cards			Residential mortgage			Total
Balance at Dec 31, 2013	$	104,501		$	19,476		$	1,607		$	58,156		$	23,418		$	32,196		$	2,416		$	26,545		$	268,315
Provision for loan losses	14,767			(1,296		)	35			(17,290		)	(1,277		)	7,087			6,279			4,695			13,000
Charge offs	(14,633		)	(3,476		)	(39		)	(4,529		)	(1,958		)	(12,332		)	(2,876		)	(4,253		)	(44,096		)
Recoveries	11,390			1,806			7			9,996			816			3,408			616			1,044			29,083
Balance at Dec 31, 2014	$	116,025		$	16,510		$	1,610		$	46,333		$	20,999		$	30,359		$	6,435		$	28,031		$	266,302
Allowance for loan losses:
Ending balance impaired loans individually evaluated for impairment	$	13,615		$	1,490		$	574		$	1,649		$	328		$	11		$	—		$	199		$	17,866
Ending balance impaired loans collectively evaluated for impairment	$	2,852		$	1,731		$	—		$	1,938		$	767		$	13,004		$	308		$	11,965		$	32,565
Total impaired loans	$	16,467		$	3,221		$	574		$	3,587		$	1,095		$	13,015		$	308		$	12,164		$	50,431
Ending balance all other loans collectively evaluated for impairment	$	99,558		$	13,289		$	1,036		$	42,746		$	19,904		$	17,344		$	6,127		$	15,867		$	215,871
Total	$	116,025		$	16,510		$	1,610		$	46,333		$	20,999		$	30,359		$	6,435		$	28,031		$	266,302
Loans:
Ending balance impaired loans individually evaluated for impairment	$	45,118		$	20,731		$	1,801		$	19,683		$	3,776		$	962		$	—		$	9,751		$	101,822
Ending balance impaired loans collectively evaluated for impairment	$	38,437		$	15,548		$	—		$	26,129		$	2,350		$	30,845		$	1,587		$	58,911		$	173,807
Total impaired loans	$	83,555		$	36,279		$	1,801		$	45,812		$	6,126		$	31,807		$	1,587		$	68,662		$	275,629
Ending balance all other loans collectively evaluated for impairment	$	5,822,347		$	971,658		$	49,728		$	3,010,673		$	1,002,830		$	1,604,251		$	452,632		$	4,404,098		$	17,318,217
Total	$	5,905,902		$	1,007,937		$	51,529		$	3,056,485		$	1,008,956		$	1,636,058		$	454,219		$	4,472,760		$	17,593,846

The following table presents commercial loans by credit quality indicator at March 31, 2015.



	Pass		Special Mention		Potential Problem		Impaired		Total
	($ in Thousands)
Commercial and industrial	$	5,820,038	$	93,893	$	138,403	$	88,086	$	6,140,420
Commercial real estate - owner occupied	911,673		17,457		43,114		31,641		1,003,885
Lease financing	44,857		910		2,009		1,720		49,496
Commercial and business lending	6,776,568		112,260		183,526		121,447		7,193,801
Commercial real estate - investor	3,013,499		10,938		26,026		36,517		3,086,980
Real estate construction	1,011,271		673		1,487		6,140		1,019,571
Commercial real estate lending	4,024,770		11,611		27,513		42,657		4,106,551
Total commercial	$	10,801,338	$	123,871	$	211,039	$	164,104	$	11,300,352

The following table presents commercial loans by credit quality indicator at December 31, 2014.



	Pass		Special Mention		Potential Problem		Impaired		Total
	($ in Thousands)
Commercial and industrial	$	5,594,497	$	119,328	$	108,522	$	83,555	$	5,905,902
Commercial real estate - owner occupied	904,526		18,437		48,695		36,279		1,007,937
Lease financing	46,931		88		2,709		1,801		51,529
Commercial and business lending	6,545,954		137,853		159,926		121,635		6,965,368
Commercial real estate - investor	2,974,493		12,137		24,043		45,812		3,056,485
Real estate construction	998,972		2,082		1,776		6,126		1,008,956
Commercial real estate lending	3,973,465		14,219		25,819		51,938		4,065,441
Total commercial	$	10,519,419	$	152,072	$	185,745	$	173,573	$	11,030,809

The following table presents consumer loans by credit quality indicator at March 31, 2015.



	Performing		30-89 Days Past Due		Potential Problem		Impaired		Total
	($ in Thousands)
Home equity	$	1,542,482	$	10,008	$	958	$	30,166	$	1,583,614
Installment and credit cards	433,268		1,818		—		1,406		436,492
Residential mortgage	4,581,063		3,403		6,621		67,487		4,658,574
Total consumer	$	6,556,813	$	15,229	$	7,579	$	99,059	$	6,678,680

The following table presents consumer loans by credit quality indicator at December 31, 2014.



	Performing		30-89 Days Past Due		Potential Problem		Impaired		Total
	($ in Thousands)
Home equity	$	1,592,788	$	10,583	$	880	$	31,807	$	1,636,058
Installment and credit cards	450,698		1,932		2		1,587		454,219
Residential mortgage	4,397,271		3,046		3,781		68,662		4,472,760
Total consumer	$	6,440,757	$	15,561	$	4,663	$	102,056	$	6,563,037

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 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 Corporation 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 March 31, 2015.



	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due ^(a)		Total Past Due		Current		Total
	($ in Thousands)
Accruing loans
Commercial and industrial	$	1,281	$	436	$	197	$	1,914	$	6,076,886	$	6,078,800
Commercial real estate - owner occupied	1,849		—		—		1,849		980,175		982,024
Lease financing	—		—		—		—		47,776		47,776
Commercial and business lending	3,130		436		197		3,763		7,104,837		7,108,600
Commercial real estate - investor	1,767		448		—		2,215		3,071,023		3,073,238
Real estate construction	317		—		—		317		1,013,831		1,014,148
Commercial real estate lending	2,084		448		—		2,532		4,084,854		4,087,386
Total commercial	5,214		884		197		6,295		11,189,691		11,195,986
Home equity	8,637		1,371		85		10,093		1,553,094		1,563,187
Installment and credit cards	1,180		638		1,433		3,251		432,726		435,977
Residential mortgage	3,302		101		—		3,403		4,606,133		4,609,536
Total consumer	13,119		2,110		1,518		16,747		6,591,953		6,608,700
Total accruing loans	$	18,333	$	2,994	$	1,715	$	23,042	$	17,781,644	$	17,804,686
Nonaccrual loans
Commercial and industrial	$	5,828	$	3,415	$	9,935	$	19,178	$	42,442	$	61,620
Commercial real estate - owner occupied	2,275		185		8,644		11,104		10,757		21,861
Lease financing	—		—		513		513		1,207		1,720
Commercial and business lending	8,103		3,600		19,092		30,795		54,406		85,201
Commercial real estate - investor	175		—		5,395		5,570		8,172		13,742
Real estate construction	1,350		173		872		2,395		3,028		5,423
Commercial real estate lending	1,525		173		6,267		7,965		11,200		19,165
Total commercial	9,628		3,773		25,359		38,760		65,606		104,366
Home equity	1,318		1,829		9,578		12,725		7,702		20,427
Installment and credit cards	33		35		154		222		293		515
Residential mortgage	3,276		3,321		17,531		24,128		24,910		49,038
Total consumer	4,627		5,185		27,263		37,075		32,905		69,980
Total nonaccrual loans ^(b)	$	14,255	$	8,958	$	52,622	$	75,835	$	98,511	$	174,346
Total loans
Commercial and industrial	$	7,109	$	3,851	$	10,132	$	21,092	$	6,119,328	$	6,140,420
Commercial real estate - owner occupied	4,124		185		8,644		12,953		990,932		1,003,885
Lease financing	—		—		513		513		48,983		49,496
Commercial and business lending	11,233		4,036		19,289		34,558		7,159,243		7,193,801
Commercial real estate - investor	1,942		448		5,395		7,785		3,079,195		3,086,980
Real estate construction	1,667		173		872		2,712		1,016,859		1,019,571
Commercial real estate lending	3,609		621		6,267		10,497		4,096,054		4,106,551
Total commercial	14,842		4,657		25,556		45,055		11,255,297		11,300,352
Home equity	9,955		3,200		9,663		22,818		1,560,796		1,583,614
Installment and credit cards	1,213		673		1,587		3,473		433,019		436,492
Residential mortgage	6,578		3,422		17,531		27,531		4,631,043		4,658,574
Total consumer	17,746		7,295		28,781		53,822		6,624,858		6,678,680
Total loans	$	32,588	$	11,952	$	54,337	$	98,877	$	17,880,155	$	17,979,032


(a)	The recorded investment in loans past due 90 days or more and still accruing totaled $2 million at March 31, 2015 (the same as the reported balances for the accruing loans noted above).


(b)	The percent of nonaccrual loans which are current was 57% at March 31, 2015.

The following table presents loans by past due status at December 31, 2014.



	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due ^(a)		Total Past Due		Current		Total
	($ in Thousands)
Accruing loans
Commercial and industrial	$	4,466	$	10,281	$	254	$	15,001	$	5,841,238	$	5,856,239
Commercial real estate - owner occupied	8,429		2,199		—		10,628		971,484		982,112
Lease financing	—		—		—		—		49,728		49,728
Commercial and business lending	12,895		12,480		254		25,629		6,862,450		6,888,079
Commercial real estate - investor	712		496		—		1,208		3,032,592		3,033,800
Real estate construction	951		33		—		984		1,002,573		1,003,557
Commercial real estate lending	1,663		529		—		2,192		4,035,165		4,037,357
Total commercial	14,558		13,009		254		27,821		10,897,615		10,925,436
Home equity	8,037		2,546		52		10,635		1,603,682		1,614,317
Installment and credit cards	1,186		746		1,317		3,249		450,357		453,606
Residential mortgage	2,840		206		—		3,046		4,420,028		4,423,074
Total consumer	12,063		3,498		1,369		16,930		6,474,067		6,490,997
Total accruing loans	$	26,621	$	16,507	$	1,623	$	44,751	$	17,371,682	$	17,416,433
Nonaccrual loans
Commercial and industrial	$	872	$	627	$	10,154	$	11,653	$	38,010	$	49,663
Commercial real estate - owner occupied	3,197		41		8,596		11,834		13,991		25,825
Lease financing	—		—		513		513		1,288		1,801
Commercial and business lending	4,069		668		19,263		24,000		53,289		77,289
Commercial real estate - investor	1,857		459		12,765		15,081		7,604		22,685
Real estate construction	87		73		798		958		4,441		5,399
Commercial real estate lending	1,944		532		13,563		16,039		12,045		28,084
Total commercial	6,013		1,200		32,826		40,039		65,334		105,373
Home equity	1,615		2,306		10,602		14,523		7,218		21,741
Installment and credit cards	96		39		141		276		337		613
Residential mortgage	5,028		2,653		19,730		27,411		22,275		49,686
Total consumer	6,739		4,998		30,473		42,210		29,830		72,040
Total nonaccrual loans ^(b)	$	12,752	$	6,198	$	63,299	$	82,249	$	95,164	$	177,413
Total loans
Commercial and industrial	$	5,338	$	10,908	$	10,408	$	26,654	$	5,879,248	$	5,905,902
Commercial real estate - owner occupied	11,626		2,240		8,596		22,462		985,475		1,007,937
Lease financing	—		—		513		513		51,016		51,529
Commercial and business lending	16,964		13,148		19,517		49,629		6,915,739		6,965,368
Commercial real estate - investor	2,569		955		12,765		16,289		3,040,196		3,056,485
Real estate construction	1,038		106		798		1,942		1,007,014		1,008,956
Commercial real estate lending	3,607		1,061		13,563		18,231		4,047,210		4,065,441
Total commercial	20,571		14,209		33,080		67,860		10,962,949		11,030,809
Home equity	9,652		4,852		10,654		25,158		1,610,900		1,636,058
Installment and credit cards	1,282		785		1,458		3,525		450,694		454,219
Residential mortgage	7,868		2,859		19,730		30,457		4,442,303		4,472,760
Total consumer	18,802		8,496		31,842		59,140		6,503,897		6,563,037
Total loans	$	39,373	$	22,705	$	64,922	$	127,000	$	17,466,846	$	17,593,846


(a)	The recorded investment in loans past due 90 days or more and still accruing totaled $2 million at December 31, 2014 (the same as the reported balances for the accruing loans noted above).


(b)	The percent of nonaccrual loans which are current was 54% at December 31, 2014.

The following table presents impaired loans at March 31, 2015.



	Recorded Investment		Unpaid Principal Balance		Related Allowance		YTD Average Recorded Investment		YTD Interest Income Recognized ^(a)
	($ in Thousands)
Loans with a related allowance
Commercial and industrial	$	58,274	$	59,809	$	7,629	$	58,815	$	265
Commercial real estate - owner occupied	20,147		22,390		2,059		20,448		123
Lease financing	1,720		1,720		510		1,747		—
Commercial and business lending	80,141		83,919		10,198		81,010		388
Commercial real estate - investor	32,244		35,466		2,028		32,338		287
Real estate construction	2,967		4,354		1,041		2,987		17
Commercial real estate lending	35,211		39,820		3,069		35,325		304
Total commercial	115,352		123,739		13,267		116,335		692
Home equity	29,430		32,827		12,360		29,709		326
Installment and credit cards	1,406		1,618		264		1,437		9
Residential mortgage	60,444		64,709		11,495		60,761		495
Total consumer	91,280		99,154		24,119		91,907		830
Total loans	$	206,632	$	222,893	$	37,386	$	208,242	$	1,522
Loans with no related allowance
Commercial and industrial	$	29,812	$	38,438	$	—	$	30,561	$	104
Commercial real estate - owner occupied	11,494		13,672		—		11,753		—
Lease financing	—		—		—		—		—
Commercial and business lending	41,306		52,110		—		42,314		104
Commercial real estate - investor	4,273		6,565		—		4,954		8
Real estate construction	3,173		3,959		—		3,111		—
Commercial real estate lending	7,446		10,524		—		8,065		8
Total commercial	48,752		62,634		—		50,379		112
Home equity	736		763		—		766		2
Installment and credit cards	—		—		—		—		—
Residential mortgage	7,043		7,297		—		7,050		25
Total consumer	7,779		8,060		—		7,816		27
Total loans	$	56,531	$	70,694	$	—	$	58,195	$	139
Total
Commercial and industrial	$	88,086	$	98,247	$	7,629	$	89,376	$	369
Commercial real estate - owner occupied	31,641		36,062		2,059		32,201		123
Lease financing	1,720		1,720		510		1,747		—
Commercial and business lending	121,447		136,029		10,198		123,324		492
Commercial real estate - investor	36,517		42,031		2,028		37,292		295
Real estate construction	6,140		8,313		1,041		6,098		17
Commercial real estate lending	42,657		50,344		3,069		43,390		312
Total commercial	164,104		186,373		13,267		166,714		804
Home equity	30,166		33,590		12,360		30,475		328
Installment and credit cards	1,406		1,618		264		1,437		9
Residential mortgage	67,487		72,006		11,495		67,811		520
Total consumer	99,059		107,214		24,119		99,723		857
Total loans ^(b)	$	263,163	$	293,587	$	37,386	$	266,437	$	1,661


(a)	Interest income recognized included $1 million of interest income recognized on accruing restructured loans for the three months ended March 31, 2015


(b)	The implied fair value mark on all impaired loans at March 31, 2015, was 77% of their unpaid principal balance. The fair value mark is calculated as the recorded investment, net of the related allowance, divided by the unpaid principal balance.

The following table presents impaired loans at December 31, 2014.



	Recorded Investment		Unpaid Principal Balance		Related Allowance		YTD Average Recorded Investment		YTD Interest Income Recognized ^(a)
	($ in Thousands)
Loans with a related allowance
Commercial and industrial	$	76,433	$	80,414	$	16,467	$	80,004	$	3,139
Commercial real estate - owner occupied	19,839		21,807		3,221		20,878		681
Lease financing	1,801		1,801		574		2,009		—
Commercial and business lending	98,073		104,022		20,262		102,891		3,820
Commercial real estate - investor	36,841		40,869		3,587		38,657		1,250
Real estate construction	3,043		5,910		1,095		3,818		105
Commercial real estate lending	39,884		46,779		4,682		42,475		1,355
Total commercial	137,957		150,801		24,944		145,366		5,175
Home equity	31,021		34,727		13,015		32,375		1,510
Installment and credit cards	1,587		1,795		308		1,736		58
Residential mortgage	61,601		65,863		12,164		62,742		2,054
Total consumer	94,209		102,385		25,487		96,853		3,622
Total loans	$	232,166	$	253,186	$	50,431	$	242,219	$	8,797
Loans with no related allowance
Commercial and industrial	$	7,122	$	12,634	$	—	$	8,851	$	82
Commercial real estate - owner occupied	16,440		19,019		—		17,970		219
Lease financing	—		—		—		—		—
Commercial and business lending	23,562		31,653		—		26,821		301
Commercial real estate - investor	8,971		14,036		—		10,014		133
Real estate construction	3,083		3,815		—		3,241		—
Commercial real estate lending	12,054		17,851		—		13,255		133
Total commercial	35,616		49,504		—		40,076		434
Home equity	786		806		—		851		18
Installment and credit cards	—		—		—		—		—
Residential mortgage	7,061		7,315		—		7,224		135
Total consumer	7,847		8,121		—		8,075		153
Total loans	$	43,463	$	57,625	$	—	$	48,151	$	587
Total
Commercial and industrial	$	83,555	$	93,048	$	16,467	$	88,855	$	3,221
Commercial real estate - owner occupied	36,279		40,826		3,221		38,848		900
Lease financing	1,801		1,801		574		2,009		—
Commercial and business lending	121,635		135,675		20,262		129,712		4,121
Commercial real estate - investor	45,812		54,905		3,587		48,671		1,383
Real estate construction	6,126		9,725		1,095		7,059		105
Commercial real estate lending	51,938		64,630		4,682		55,730		1,488
Total commercial	173,573		200,305		24,944		185,442		5,609
Home equity	31,807		35,533		13,015		33,226		1,528
Installment and credit cards	1,587		1,795		308		1,736		58
Residential mortgage	68,662		73,178		12,164		69,966		2,189
Total consumer	102,056		110,506		25,487		104,928		3,775
Total loans ^(b)	$	275,629	$	310,811	$	50,431	$	290,370	$	9,384


(a)	Interest income recognized included $5 million of interest income recognized on accruing restructured loans for the year ended December 31, 2014.


(b)	The implied fair value mark on all impaired loans at December 31, 2014, was 72% of their unpaid principal balance. The fair value mark is calculated as the recorded investment, net of the related allowance, divided by the unpaid principal balance.

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 a loan 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 repayment 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.

Troubled Debt Restructurings (“Restructured Loans”):

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 an $11 million recorded investment in loans modified in troubled debt restructurings for the three months ended March 31, 2015, of which $2 million was in accrual status and $9 million was in nonaccrual pending a sustained period of repayment.

All restructured loans are disclosed as restructured loans in the calendar year of restructuring. In subsequent years, a restructured loan modified at a market rate that has performed according to the modified terms for at least six months will cease being disclosed as a restructured loan. 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.



	March 31, 2015				December 31, 2014
	Performing Restructured Loans		Nonaccrual Restructured Loans *		Performing Restructured Loans		Nonaccrual Restructured Loans *
	($ in Thousands)
Commercial and industrial	$	26,466	$	6,631	$	33,892	$	3,260
Commercial real estate - owner occupied	9,780		5,705		10,454		5,656
Commercial real estate - investor	22,775		8,697		23,127		15,216
Real estate construction	717		2,349		727		2,438
Home equity	9,739		6,555		10,066		7,518
Installment and credit cards	891		167		974		199
Residential mortgage	18,449		23,449		18,976		23,369
Total	$	88,817	$	53,553	$	98,216	$	57,656



*	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 for the three months ended March 31, 2015 and 2014, and the recorded investment and unpaid principal balance as of March 31, 2015 and 2014.



	Three Months Ended March 31, 2015					Three Months Ended March 31, 2014
	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	2	$	196	$	208	8	$	3,446	$	7,218
Commercial real estate - owner occupied	5	3,585		3,641		4	5,298		5,781
Commercial real estate - investor	4	3,030		3,042		4	1,643		1,676
Home equity	36	1,782		1,843		30	935		1,218
Installment and credit cards	—	—		—		1	10		20
Residential mortgage	30	2,816		2,864		21	2,750		2,920
Total	77	$	11,409	$	11,598	68	$	14,082	$	18,833


(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. During the three months ended March 31, 2015, 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 for the three months ended March 31, 2015, primarily included maturity date extensions, interest rate concessions, payment schedule modifications, non-reaffirmed Chapter 7 bankruptcies, or a combination of these concessions.

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 months ended March 31, 2015 and 2014, as well as the recorded investment in these restructured loans as of March 31, 2015 and 2014.



	Three Months Ended March 31, 2015			Three Months Ended March 31, 2014
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
	($ in Thousands)
Commercial real estate - owner occupied	1	$	297	—	$	—
Real estate construction	—	—		1	161
Home equity	24	855		7	388
Installment and credit cards	—	—		1	10
Residential mortgage	16	1,239		12	1,761
Total	41	$	2,391	21	$	2,320

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.