Loans acquired in connection with business combinations are referred to as ‘acquired’ loans as a result of the manner in which they are accounted for (see further discussion under ‘Acquired Loans’ in Note 1). All other loans are referred to as ‘originated’ loans. Accordingly, selected credit quality disclosures that follow are presented separately for the ‘originated’ loan portfolio and the ‘acquired’ loan portfolio.


	2019										2018
As of December 31 (in millions)	Originated		Acquired		Total		Originated		Acquired		Total
Commercial:
Commercial real estate	$	10,012.5	$	4,749.8	$	14,762.3	$	9,798.5	$	1,851.1	$	11,649.6
Commercial and industrial	9,763.1		1,278.5		11,041.6		8,292.3		796.6		9,088.9
Equipment financing	4,706.1		204.3		4,910.4		3,937.7		401.5		4,339.2
Total Commercial Portfolio	24,481.7		6,232.6		30,714.3		22,028.5		3,049.2		25,077.7
Retail:
Residential mortgage:
Adjustable-rate	5,366.0		1,698.8		7,064.8		5,854.1		807.9		6,662.0
Fixed-rate	1,222.9		2,030.4		3,253.3		935.1		557.1		1,492.2
Total residential mortgage	6,588.9		3,729.2		10,318.1		6,789.2		1,365.0		8,154.2
Home equity and other consumer:
Home equity	1,625.1		781.4		2,406.5		1,789.5		173.0		1,962.5
Other consumer	39.7		117.5		157.2		42.8		4.2		47.0
Total home equity and other consumer	1,664.8		898.9		2,563.7		1,832.3		177.2		2,009.5
Total Retail Portfolio	8,253.7		4,628.1		12,881.8		8,621.5		1,542.2		10,163.7
Total loans	$	32,735.4	$	10,860.7	$	43,596.1	$	30,650.0	$	4,591.4	$	35,241.4

At December 31, 2019, 25%, 22% and 18% of the Company’s loans by outstanding principal amount were to customers located within Connecticut, Massachusetts and New York, respectively. Loans to customers located in the New England states as a group represented 58% and 56% of total loans at December 31, 2019 and 2018, respectively. Substantially the entire equipment financing portfolio (95% at both December 31, 2019 and 2018) was to customers located outside of New England. At December 31, 2019, 30% of the equipment financing portfolio was to customers located in Texas, California and New York, and no other state exposure was greater than 7%.

At December 31, 2019 and 2018, residential mortgage loans included $1.1 billion and $1.2 billion, respectively, of interest-only loans. People’s United’s underwriting guidelines and requirements for such loans are generally more restrictive than those applied to other types of residential mortgage products. Also included in residential mortgage loans are construction loans totaling $40.5 million and $57.3 million at December 31, 2019 and 2018, respectively, net of the unadvanced portion of such loans totaling $14.6 million and $21.5 million, respectively.

People’s United sells newly-originated residential mortgage loans in the secondary market, without recourse. Net gains on sales of residential mortgage loans totaled $1.9 million, $1.2 million and $3.2 million for the years ended  December 31, 2019, 2018 and 2017, respectively. Loans held-for-sale at December 31, 2019 and 2018 included  newly-originated residential mortgage loans with carrying amounts of $19.7 million and $19.5 million, respectively. At December 31, 2019, loans held-for-sale also included $333.7 million of consumer loans and $157.9 million of commercial loans previously acquired in the United Financial acquisition. During 2019, 2018 and 2017, the Company sold acquired loans with outstanding principal balances totaling $10.1 million, $10.0 million and $7.9 million, respectively, (carrying amounts of $7.1 million, $4.4 million and $5.0 million, respectively) and recognized net gains on sales totaling $0.4 million, $1.8 million and $2.4 million, respectively.

The following table presents a summary, by loan portfolio segment, of activity in the allowance for loan losses for the years ended December 31, 2019, 2018 and 2017. With respect to the originated portfolio, an allocation of a portion of the allowance to one segment does not preclude its availability to absorb losses in another segment.


	Commercial										Retail
(in millions)	Originated		Acquired		Total		Originated		Acquired		Total		Total
Balance at December 31, 2016	$	198.8	$	6.1	$	204.9	$	24.2	$	0.2	$	24.4	$	229.3
Charge-offs	(17.1)		(4.4)		(21.5)		(6.4)		—		(6.4)		(27.9)
Recoveries	4.6		0.3		4.9		2.1		—		2.1		7.0
Net loan charge-offs	(12.5)		(4.1)		(16.6)		(4.3)		—		(4.3)		(20.9)
Provision for loan losses	14.8		1.4		16.2		9.8		—		9.8		26.0
Balance at December 31, 2017	201.1		3.4		204.5		29.7		0.2		29.9		234.4
Charge-offs	(19.5)		(8.1)		(27.6)		(3.3)		—		(3.3)		(30.9)
Recoveries	3.5		1.3		4.8		2.1		—		2.1		6.9
Net loan charge-offs	(16.0)		(6.8)		(22.8)		(1.2)		—		(1.2)		(24.0)
Provision for loan losses	20.5		7.3		27.8		2.2		—		2.2		30.0
Balance at December 31, 2018	205.6		3.9		209.5		30.7		0.2		30.9		240.4
Charge-offs	(20.0)		(7.5)		(27.5)		(4.0)		—		(4.0)		(31.5)
Recoveries	5.0		1.3		6.3		3.1		—		3.1		9.4
Net loan charge-offs	(15.0)		(6.2)		(21.2)		(0.9)		—		(0.9)		(22.1)
Provision for loan losses	26.2		3.4		29.6		(1.1)		(0.2)		(1.3)		28.3
Balance at December 31, 2019	$	216.8	$	1.1	$	217.9	$	28.7	$	—	$	28.7	$	246.6


As of December 31, 2019 (in millions)	Commercial						Retail						Total
			Portfolio		Allowance		Portfolio		Allowance		Portfolio		Allowance
Originated loans:
Collectively evaluated for impairment	$	22,938.3	$	207.8	$	9,592.8	$	26.5	$	32,531.1	$	234.3
Individually evaluated for impairment	115.0		9.0		89.2		2.2		204.2		11.2
Acquired loans:
PCI (1)	308.5		—		87.5		—		396.0		—
Purchased performing:
Collectively evaluated for impairment	7,344.9		1.1		3,104.8		—		10,449.7		1.1
Individually evaluated for impairment	7.6		—		7.5		—		15.1		—
Total	$	30,714.3	$	217.9	$	12,881.8	$	28.7	$	43,596.1	$	246.6


As of December 31, 2018 (in millions)	Commercial						Retail						Total
			Portfolio		Allowance		Portfolio		Allowance		Portfolio		Allowance
Originated loans:
Collectively evaluated for impairment	$	21,900.1	$	198.9	$	8,535.0	$	28.4	$	30,435.1	$	227.3
Individually evaluated for impairment	128.4		6.7		86.5		2.3		214.9		9.0
Acquired loans:
PCI (1)	300.3		2.2		99.6		0.1		399.9		2.3
Purchased performing:
Collectively evaluated for impairment	2,744.4		1.7		1,439.1		—		4,183.5		1.7
Individually evaluated for impairment	4.5		—		3.5		0.1		8.0		0.1
Total	$	25,077.7	$	209.5	$	10,163.7	$	30.9	$	35,241.4	$	240.4


As of December 31 (in millions)	2019		2018		2017
Commercial:
Commercial real estate	$	29.8	$	33.5	$	23.7
Commercial and industrial	32.1		38.0		32.6
Equipment financing	46.2		42.0		44.3
Total (1)	108.1		113.5		100.6
Retail:
Residential mortgage	36.3		38.9		32.7
Home equity	12.6		15.3		15.4
Other consumer	—		—		—
Total (2)	48.9		54.2		48.1
Total	$	157.0	$	167.7	$	148.7

(1)Reported net of government guarantees totaling $1.3 million, $1.9 million and $3.1 million at December 31, 2019, 2018 and 2017, respectively. These government guarantees relate, almost entirely, to guarantees provided by the Small Business Administration as well as selected other Federal agencies and represent the carrying value of the loans that are covered by such guarantees, the extent of which (i.e. full or partial) varies by loan. At December 31, 2019, the principal loan classes to which these government guarantees relate are commercial and industrial loans (95%) and commercial real estate loans (5%).

The preceding table excludes acquired loans that are (i) accounted for as PCI loans and/or (ii) covered by an FDIC  loss-share agreement (“LSA”) which totaled $53.5 million at December 31, 2019; $44.1 million at December 31, 2018; and $25.1 million at December 31, 2017. Such loans otherwise meet People’s United’s definition of a non-performing loan but are excluded because the loans are included in loan pools that are considered performing and/or credit losses are covered by an FDIC LSA. The discounts arising from recording these loans at fair value were due, in part, to credit quality. Accordingly, such loans are generally accounted for on a pool basis and the accretable yield on the pools is being recognized as interest income over the life of the loans based on expected cash flows at the pool level. In addition, the table excludes purchased performing loans totaling $13.6 million, $6.0 million and $4.7 million at December 31, 2019, 2018 and 2017, respectively, of which $13.2 million, $6.0 million and $4.7 million, respectively at those dates, became non-performing subsequent to acquisition.

If interest payments on all loans classified as non-performing at December 31, 2019, 2018 and 2017 had been made during the respective years in accordance with the loan agreements, interest income of $18.5 million, $18.1 million and $16.2 million would have been recognized on such loans for the respective years. Interest income actually recognized on  non-performing loans totaled $2.3 million, $2.9 million and $1.7 million for the years ended December 31, 2019, 2018 and 2017, respectively.

At December 31, 2019 and 2018, People’s United’s recorded investment in loans classified as TDRs totaled $177.0 million and $179.4 million, respectively. The related allowance for loan losses was $4.3 million at December 31, 2019 and $4.5 million at December 31, 2018. Interest income recognized on TDRs totaled $5.5 million, $6.1 million and $4.7 million for the years ended December 31, 2019, 2018 and 2017, respectively. Fundings under commitments to lend additional amounts to borrowers with loans classified as TDRs were immaterial for the years ended December 31, 2019, 2018 and 2017. Loans that were modified and classified as TDRs during 2019 principally involve reduced payment and/or payment deferral, extension of term (generally no more than two years for commercial loans and five years for retail loans) and/or a temporary reduction of interest rate (generally less than 200 basis points).


	Year ended December 31, 2019
(dollars in millions)	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial:
Commercial real estate (1)	12	$	17.2	$	17.2
Commercial and industrial (2)	33	31.9		31.9
Equipment financing (3)	37	24.9		24.9
Total	82	74.0		74.0
Retail:
Residential mortgage (4)	85	26.3		26.3
Home equity (5)	102	9.0		9.0
Other consumer	—	—		—
Total	187	35.3		35.3
Total	269	$	109.3	$	109.3

(4)Represents the following concessions: loans restructured through bankruptcy (45 contracts; recorded investment of $9.9 million); reduced payment and/or payment deferral (24 contracts; recorded investment of $10.1 million); or a combination of concessions (16 contracts; recorded investment of $6.3 million).

(5)Represents the following concessions: loans restructured through bankruptcy (54 contracts; recorded investment of $3.2 million); reduced payment and/or payment deferral (18 contracts; recorded investment of $2.9 million); or a combination of concessions (30 contracts; recorded investment of $2.9 million).


	Year ended December 31, 2018
(dollars in millions)	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial:
Commercial real estate (1)	13	$	27.6	$	27.6
Commercial and industrial (2)	47	73.1		73.1
Equipment financing (3)	31	31.6		31.6
Total	91	132.3		132.3
Retail:
Residential mortgage (4)	38	9.5		9.5
Home equity (5)	79	7.3		7.3
Other consumer	—	—		—
Total	117	16.8		16.8
Total	208	$	149.1	$	149.1

(4)Represents the following concessions: loans restructured through bankruptcy (21 contracts; recorded investment of $3.7 million); reduced payment and/or payment deferral (10 contracts; recorded investment of $3.5 million); or a combination of concessions (7 contracts; recorded investment of $2.3 million).

(5)Represents the following concessions: loans restructured through bankruptcy (49 contracts; recorded investment of $3.6 million); reduced payment and/or payment deferral (10 contracts; recorded investment of $1.3 million); or a combination of concessions (20 contracts; recorded investment of $2.4 million).

The following is a summary, by class of loan, of information related to TDRs completed within the previous 12 months that subsequently defaulted during the years ended December 31, 2019 and 2018. For purposes of this disclosure, the previous 12 months is measured from January 1 of the respective prior year and a default represents a previously-modified loan that became past due 30 days or more during 2019 or 2018.


	2019				2018
Years ended December 31 (dollars in millions)	Number of Contracts	Recorded Investment as of Period End		Number of Contracts	Recorded Investment as of Period End
Commercial:
Commercial real estate	—	$	—	—	$	—
Commercial and industrial	2	2.4		12	6.7
Equipment financing	8	5.3		6	3.5
Total	10	7.7		18	10.2
Retail:
Residential mortgage	5	2.2		7	1.6
Home equity	12	1.0		13	0.7
Other consumer	—	—		—	—
Total	17	3.2		20	2.3
Total	27	$	10.9	38	$	12.5


	2019										2018
As of December 31 (in millions)	Unpaid Principal Balance		Recorded Investment		Related Allowance for Loan Losses		Unpaid Principal Balance		Recorded Investment		Related Allowance for Loan Losses
Without a related allowance for loan losses:
Commercial:
Commercial real estate	$	28.9	$	25.9	$	—	$	31.0	$	28.1	$	—
Commercial and industrial	31.0		25.9		—		45.6		42.0		—
Equipment financing	24.1		21.8		—		20.2		18.0		—
Retail:
Residential mortgage	68.4		60.8		—		66.8		59.3		—
Home equity	26.0		23.0		—		23.8		20.3		—
Other consumer	—		—		—		—		—		—
Total	$	178.4	$	157.4	$	—	$	187.4	$	167.7	$	—
With a related allowance for loan losses:
Commercial:
Commercial real estate	$	21.5	$	21.0	$	3.4	$	23.8	$	21.8	$	1.6
Commercial and industrial	20.0		16.4		3.9		12.6		10.2		2.4
Equipment financing	12.4		11.6		1.7		16.2		12.8		2.7
Retail:
Residential mortgage	11.6		11.5		1.5		8.8		8.8		1.7
Home equity	1.4		1.4		0.7		1.7		1.6		0.7
Other consumer	—		—		—		—		—		—
Total	$	66.9	$	61.9	$	11.2	$	63.1	$	55.2	$	9.1
Total impaired loans:
Commercial:
Commercial real estate	$	50.4	$	46.9	$	3.4	$	54.8	$	49.9	$	1.6
Commercial and industrial	51.0		42.3		3.9		58.2		52.2		2.4
Equipment financing	36.5		33.4		1.7		36.4		30.8		2.7
Total	137.9		122.6		9.0		149.4		132.9		6.7
Retail:
Residential mortgage	$	80.0	$	72.3	$	1.5	$	75.6	$	68.1	$	1.7
Home equity	27.4		24.4		0.7		25.5		21.9		0.7
Other consumer	—		—		—		—		—		—
Total	107.4		96.7		2.2		101.1		90.0		2.4
Total	$	245.3	$	219.3	$	11.2	$	250.5	$	222.9	$	9.1


	2019						2018						2017
Years ended December 31 (in millions)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial:
Commercial real estate	$	39.6	$	1.1	$	40.2	$	1.1	$	55.8	$	1.2
Commercial and industrial	44.5		1.6		49.6		2.8		63.4		1.9
Equipment financing	27.0		0.3		38.4		0.1		44.4		0.4
Total	111.1		3.0		128.2		4.0		163.6		3.5
Retail:
Residential mortgage	68.3		2.1		68.7		1.9		71.8		1.7
Home equity	23.0		0.6		20.9		0.5		21.2		0.4
Other consumer	—		—		—		—		—		—
Total	91.3		2.7		89.6		2.4		93.0		2.1
Total	$	202.4	$	5.7	$	217.8	$	6.4	$	256.6	$	5.6


			Past Due
As of December 31, 2019 (in millions)	Current		30-89 Days		90 Days or More		Total		Total Originated
Commercial:
Commercial real estate	$	9,983.5	$	7.8	$	21.2	$	29.0	$	10,012.5
Commercial and industrial	9,738.0		10.5		14.6		25.1		9,763.1
Equipment financing	4,591.4		94.7		20.0		114.7		4,706.1
Total	24,312.9		113.0		55.8		168.8		24,481.7
Retail:
Residential mortgage	6,534.3		31.6		23.0		54.6		6,588.9
Home equity	1,615.0		5.0		5.1		10.1		1,625.1
Other consumer	39.5		0.2		—		0.2		39.7
Total	8,188.8		36.8		28.1		64.9		8,253.7
Total originated loans	$	32,501.7	$	149.8	$	83.9	$	233.7	$	32,735.4

Included in the “Current” and “30-89 Days” categories above are early non-performing commercial real estate loans, commercial and industrial loans, and equipment financing loans totaling $8.6 million, $18.8 million and $26.2 million, respectively, and $20.8 million of retail loans in the process of foreclosure or bankruptcy. These loans are less than 90 days past due but have been placed on non-accrual status as a result of having been identified as presenting uncertainty with respect to the collectability of interest and principal.


			Past Due
As of December 31, 2018 (in millions)	Current		30-89 Days		90 Days or More		Total		Total Originated
Commercial:
Commercial real estate	$	9,762.1	$	23.0	$	13.4	$	36.4	$	9,798.5
Commercial and industrial	8,261.5		6.9		23.9		30.8		8,292.3
Equipment financing	3,855.3		68.8		13.6		82.4		3,937.7
Total	21,878.9		98.7		50.9		149.6		22,028.5
Retail:
Residential mortgage	6,723.2		38.6		27.4		66.0		6,789.2
Home equity	1,776.0		5.8		7.7		13.5		1,789.5
Other consumer	42.7		0.1		—		0.1		42.8
Total	8,541.9		44.5		35.1		79.6		8,621.5
Total originated loans	$	30,420.8	$	143.2	$	86.0	$	229.2	$	30,650.0

Included in the “Current” and “30-89 Days” categories above are early non-performing commercial real estate loans, commercial and industrial loans, and equipment financing loans totaling $20.3 million, $15.8 million and $28.4 million, respectively, and $19.1 million of retail loans in the process of foreclosure or bankruptcy. These loans are less than 90 days past due but have been placed on non-accrual status as a result of having been identified as presenting uncertainty with respect to the collectability of interest and principal.

The Company utilizes an internal loan risk rating system as a means of monitoring portfolio credit quality and identifying both problem and potential problem loans. Under the Company’s risk rating system, loans not meeting the criteria for problem and potential problem loans as specified below are considered to be “Pass”-rated loans. Problem and potential problem loans are classified as either “Special Mention,” “Substandard” or “Doubtful.” Loans that do not currently expose the Company to sufficient enough risk of loss to warrant classification as either Substandard or Doubtful, but possess weaknesses that deserve management’s close attention, are classified as Special Mention. Substandard loans represent those credits characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Loans classified as Doubtful possess all the weaknesses inherent in those classified Substandard with the added characteristic that collection or liquidation in full, on the basis of existing facts, conditions and values, is highly questionable and/or improbable.

Risk ratings on commercial loans are subject to ongoing monitoring by lending and credit personnel with such ratings updated annually or more frequently, if warranted. The Company’s internal Loan Review function is responsible for independently evaluating the appropriateness of those credit risk ratings in connection with its cyclical reviews, the approach to which is risk-based and determined by reference to underlying portfolio credit quality and the results of prior reviews. Differences in risk ratings noted in conjunction with such periodic portfolio loan reviews, if any, are reported to management each month.

Pools of retail loans possessing similar risk and loss characteristics are collectively evaluated for impairment. These loan pools include residential mortgage, home equity and other consumer loans that are not assigned individual loan risk ratings. Rather, the assessment of these portfolios is based upon a consideration of historical portfolio loss experience, broader portfolio indicators, including trends in delinquencies, non-performing loans and portfolio concentrations, and portfolio-specific risk characteristics, the combination of which determines whether a loan is classified as “High”, “Moderate” or “Low” risk.

The portfolio-specific risk characteristics considered include: (i) collateral values/LTV ratios (above and below 70%);  (ii) borrower credit scores under the FICO scoring system (above and below a score of 680); and (iii) other relevant portfolio risk elements such as income verification at the time of underwriting (stated income vs. non-stated income) and the property’s intended use (owner-occupied, non-owner occupied, second home, etc.). In classifying a loan as either “High”, “Moderate” or “Low” risk, the combination of each of the aforementioned risk characteristics is considered for that loan, resulting, effectively, in a “matrix approach” to its risk classification. These risk classifications are reviewed quarterly to ensure that they continue to be appropriate in light of changes within the portfolio and/or economic indicators as well as other industry developments.

For example, to the extent LTV ratios exceed 70% (reflecting a weaker collateral position for the Company) or borrower FICO scores are less than 680 (reflecting weaker financial standing and/or credit history of the customer), the loans are considered to have an increased level of inherent loss. As a result, a loan with a combination of these characteristics would generally be classified as “High” risk. Conversely, as LTV ratios decline (reflecting a stronger collateral position for the Company) or borrower FICO scores exceed 680 (reflecting stronger financial standing and/or credit history of the customer), the loans are considered to have a decreased level of inherent loss. A loan with a combination of these characteristics would generally be classified as “Low” risk. This analysis also considers (i) the extent of underwriting that occurred at the time of origination (direct income verification provides further support for credit decisions) and (ii) the property’s intended use (owner-occupied properties are less likely to default compared to ‘investment-type’ non-owner occupied properties, second homes, etc.). Loans not otherwise deemed to be “High” or “Low” risk are classified as “Moderate” risk.

LTV ratios and FICO scores are determined at origination and updated periodically throughout the life of the loan. LTV ratios are updated for loans 90 days past due and FICO scores are updated for the entire portfolio quarterly. The portfolio stratification (“High”, “Moderate” and “Low” risk) and identification of the corresponding credit quality indicators also occurs quarterly.

Upon acquiring a loan portfolio, the Company’s internal Loan Review function undertakes the process of assigning risk ratings to all commercial loans in accordance with the Company’s established policy, which may differ in certain respects from the risk rating policy of the predecessor company. The length of time necessary to complete this process varies based on the size of the acquired portfolio, the quality of the documentation maintained in the underlying loan files and the extent to which the predecessor company followed a risk rating approach comparable to People’s United’s. As a result, while acquired loans are risk rated, there are occasions when such ratings may be deemed “preliminary” until the Company’s re-rating process has been completed.


As of December 31, 2019 (in millions)	Commercial Real Estate		Commercial and Industrial		Equipment Financing		Total
Commercial:
Originated loans:
Pass	$	9,736.4	$	9,223.5	$	4,231.6	$	23,191.5
Special mention	197.6		294.8		76.5		568.9
Substandard	75.4		242.7		398.0		716.1
Doubtful	3.1		2.1		—		5.2
Total originated loans	10,012.5		9,763.1		4,706.1		24,481.7
Acquired loans:
Pass	4,485.9		1,168.2		201.9		5,856.0
Special mention	136.7		35.6		—		172.3
Substandard	127.2		73.1		2.4		202.7
Doubtful	—		1.6		—		1.6
Total acquired loans	4,749.8		1,278.5		204.3		6,232.6
Total	$	14,762.3	$	11,041.6	$	4,910.4	$	30,714.3


As of December 31, 2019 (in millions)	Residential Mortgage		Home Equity		Other Consumer		Total
Retail:
Originated loans:
Low risk	$	3,225.3	$	747.3	$	24.9	$	3,997.5
Moderate risk	2,649.0		548.5		5.9		3,203.4
High risk	714.6		329.3		8.9		1,052.8
Total originated loans	6,588.9		1,625.1		39.7		8,253.7
Acquired loans:
Low risk	1,184.7		—		—		1,184.7
Moderate risk	2,309.3		—		—		2,309.3
High risk	235.2		781.4		117.5		1,134.1
Total acquired loans	3,729.2		781.4		117.5		4,628.1
Total	$	10,318.1	$	2,406.5	$	157.2	$	12,881.8


As of December 31, 2018 (in millions)	Commercial Real Estate		Commercial and Industrial		Equipment Financing		Total
Commercial:
Originated loans:
Pass	$	9,607.0	$	7,855.7	$	3,549.3	$	21,012.0
Special mention	105.5		196.9		92.1		394.5
Substandard	85.2		239.3		296.3		620.8
Doubtful	0.8		0.4		—		1.2
Total originated loans	9,798.5		8,292.3		3,937.7		22,028.5
Acquired loans:
Pass	1,766.2		719.6		394.0		2,879.8
Special mention	27.3		14.6		4.7		46.6
Substandard	57.6		62.4		2.8		122.8
Doubtful	—		—		—		—
Total acquired loans	1,851.1		796.6		401.5		3,049.2
Total	$	11,649.6	$	9,088.9	$	4,339.2	$	25,077.7


As of December 31, 2018 (in millions)	Residential Mortgage		Home Equity		Other Consumer		Total
Retail:
Originated loans:
Low risk	$	2,912.8	$	834.5	$	27.3	$	3,774.6
Moderate risk	3,360.9		576.4		5.9		3,943.2
High risk	515.5		378.6		9.6		903.7
Total originated loans	6,789.2		1,789.5		42.8		8,621.5
Acquired loans:
Low risk	506.1		—		—		506.1
Moderate risk	639.6		—		—		639.6
High risk	219.3		173.0		4.2		396.5
Total acquired loans	1,365.0		173.0		4.2		1,542.2
Total	$	8,154.2	$	1,962.5	$	47.0	$	10,163.7

At the respective acquisition dates, on an aggregate basis, the PCI loan portfolio had contractually required principal and interest payments receivable of $7.95 billion; expected cash flows of $7.35 billion; and a fair value (initial carrying amount) of $5.62 billion. The difference between the contractually required principal and interest payments receivable and the expected cash flows ($603.1 million) represented the initial nonaccretable difference. The difference between the expected cash flows and fair value ($1.73 billion) represented the initial accretable yield. Both the contractually required principal and interest payments receivable and the expected cash flows reflect anticipated prepayments, determined based on historical portfolio experience. At December 31, 2019, the outstanding principal balance and carrying amount of the PCI loan portfolio were $532.2 million and $396.0 million, respectively ($491.6 million and $399.9 million, respectively, at December 31, 2018).


Years ended December 31 (in millions)	2019		2018		2017
Balance at beginning of period	$	189.7	$	219.7	$	255.4
Acquisitions	25.5		27.1		13.1
Accretion	(21.0)		(24.6)		(29.1)
Reclassification from nonaccretable difference for loans with improved cash flows (1)	—		—		—
Other changes in expected cash flows (2)	(56.7)		(32.5)		(19.7)
Balance at end of period	$	137.5	$	189.7	$	219.7

On April 16, 2010, the Bank entered into a definitive purchase and assumption agreement (the “Agreement”) with the FDIC pursuant to which the Bank assumed all of the deposits, certain assets and the banking operations of Butler Bank. The Agreement also provides for loss-share coverage by the FDIC, up to certain limits, on all covered assets (loans and REO). The FDIC is obligated to reimburse the Bank for 80% of any future losses on covered assets up to $34.0 million. The Bank will reimburse the FDIC for 80% of recoveries with respect to losses for which the FDIC paid 80% reimbursement under the  loss-sharing coverage.

The asset arising from the loss-sharing coverage, referred to as the “FDIC loss-share receivable,” totaled $0.1 million and $0.2 million at December 31, 2019 and 2018, respectively, and is included in other assets in the Consolidated Statements of Condition. The FDIC loss-share receivable is measured separately from the covered loans because the coverage is not contractually embedded in the loans and is not transferable should the Bank choose to dispose of the covered loans. The FDIC loss-share receivable will be reduced as losses are realized on covered assets and as loss-sharing payments are received from the FDIC. Realized losses in excess of the acquisition date estimates will result in an increase in the FDIC loss-share receivable. Conversely, the FDIC loss-share receivable will be reduced if realized losses are less than the estimates at acquisition. The amount ultimately collected for the FDIC loss-share receivable is dependent upon the performance of the underlying covered assets over time and claims submitted to the FDIC. In the event that losses under the loss-share coverage do not reach expected levels, the Bank has agreed to make a cash payment to the FDIC on approximately the tenth anniversary of the Agreement.