Loans and Allowance for Credit Losses

6 Months Ended

Jun. 30, 2020

Receivables [Abstract]

Loans and Allowance for Credit Losses

Allowance for Credit Losses and Asset Quality

Net Loans are summarized as follows:

	June 30, 2020		December 31, 2019
	(in thousands)
Real estate - commercial mortgage	$	6,934,936	$	6,700,776
Commercial and industrial	5,971,201		4,446,701
Real-estate - residential mortgage	2,862,226		2,641,465
Real-estate - home equity	1,251,455		1,314,944
Real-estate - construction	972,909		971,079
Consumer	465,610		463,164
Equipment lease financing and other	266,521		322,625
Overdrafts	3,622		3,582
Gross loans	18,728,480		16,864,336
Unearned income	(23,758)		(26,810)
Net Loans	$	18,704,722	$	16,837,526

The Corporation segments its loan portfolio by "portfolio segments," as presented in the table above. Certain portfolio segments are further disaggregated by "class segment" for the purpose of estimating credit losses. See "Allowance for Credit Losses" below for further discussion regarding portfolio and class segments and their impact on the determination of the ACL.

Allowance for Credit Losses, effective January 1, 2020

As discussed in Note 1, "Basis of Presentation," the Corporation adopted CECL effective January 1, 2020. CECL requires estimated credit losses on loans to be determined based on an expected life of loan model, as compared to an incurred loss model (in effect for periods prior to 2020). Accordingly, ACL disclosures subsequent to January 1, 2020 are not always comparable to prior periods. In addition, certain new disclosures required under CECL are not applicable to prior periods. As a result, the following tables present disclosures separately for each period, where appropriate. New disclosures required under CECL are only shown for the current period and are noted. See Note 1, "Basis of Presentation", for a summary of the impact of adopting CECL on January 1, 2020.

Under CECL, loans evaluated individually for impairment consist of non-accrual loans and TDRs. Under the incurred loss model in effect prior to the adoption of CECL, loans evaluated individually for impairment were referred to as impaired loans.

The ACL related to loans consists of loans evaluated collectively and individually for expected credit losses. The ACL related to loans represents an estimate of expected credit losses over the expected life of the loans as of the balance sheet date and is recorded as a reduction to Net Loans. The ACL for OBS credit exposures includes estimated losses on unfunded loan commitments, letters of credit and other OBS credit exposures. The total ACL is increased by charges to expense, through the provision for credit losses, and decreased by charge-offs, net of recoveries.

The following table presents the components of the ACL under CECL:

	June 30, 2020
	(in thousands)
ACL - loans	$	256,537
ACL - OBS credit exposure	16,383
Total ACL	$	272,920

The following table presents the activity in the ACL in 2020:

	Three months ended June 30, 2020		Six months ended June 30, 2020
	(in thousands)
Balance at beginning of period	$	257,471	$	166,209
Impact of adopting CECL (1)	—		58,348
Loans charged off	(8,047)		(22,050)
Recoveries of loans previously charged off	3,926		6,813
Net loans charged off	(4,121)		(15,237)
Provision for credit losses (2)	19,570		63,600
Balance at end of period	$	272,920	$	272,920

⁽¹⁾ Includes $12.6 million of reserves for OBS credit exposures as of January 1, 2020.

⁽²⁾ Includes $(2.6) million and $1.2 million related to OBS credit exposures for the three and six months ended June 30, 2020, respectively.

The following table presents the activity in the ACL - loans by portfolio segment, for the three and six months ended June 30, 2020:

	Real Estate - Commercial Mortgage		Commercial and Industrial		Real Estate - Home Equity		Real Estate - Residential Mortgage		Real Estate - Construction		Consumer		Equipment lease financing, other and overdrafts		Total
	(in thousands)
Three months ended June 30, 2020
Balance at March 31, 2020	$	90,319	$	63,606	$	15,253	$	42,427	$	8,398	$	9,865	$	8,640	$	238,508
Loans charged off	(2,324)		(3,480)		(458)		(235)		(17)		(845)		(688)		(8,047)
Recoveries of loans previously charged off	95		2,978		44		112		—		605		92		3,926
Net loans recovered (charged off)	(2,229)		(502)		(414)		(123)		(17)		(240)		(596)		(4,121)
Provision for loan losses (1)	14,605		(1,657)		1,552		4,139		3,933		674		(1,096)		22,150
Balance at June 30, 2020	$	102,695	$	61,447	$	16,391	$	46,443	$	12,314	$	10,299	$	6,948	$	256,537
Six months ended June 30, 2020
Balance at December 31, 2019	$	45,610	$	68,602	$	17,744	$	19,771	$	4,443	$	3,762	$	3,690	$	163,622
Impact of CECL	29,361		(18,576)		(65)		21,235		4,015		5,969		3,784		45,723
Loans charged off	(3,179)		(14,379)		(745)		(422)		(17)		(2,087)		(1,221)		(22,050)
Recoveries of loans previously charged off	339		4,712		261		197		70		1,034		200		6,813
Net loans recovered (charged off)	(2,840)		(9,667)		(484)		(225)		53		(1,053)		(1,021)		(15,237)
Provision for loan losses (1)	30,564		21,088		(804)		5,662		3,803		1,621		495		62,429
Balance at June 30, 2020	$	102,695	$	61,447	$	16,391	$	46,443	$	12,314	$	10,299	$	6,948	$	256,537

⁽¹⁾ Provision included in the table only includes the portion related to Net Loans.

The following table presents the ACL - loans and amortized cost basis of Net Loans under CECL methodology as of June 30, 2020:

		ACL - Loans						Net Loans
		Collectively Evaluated for Impairment		Individually Evaluated for Impairment		Total ACL - Loans		Collectively Evaluated for Impairment		Individually Evaluated for Impairment		Total Net Loans
		(in thousands)
June 30, 2020
	Real Estate - Commercial Mortgage	$	94,654	$	8,041	$	102,695	$	6,873,754	$	61,182	$	6,934,936
	Commercial and Industrial	54,413		7,034		61,447		5,927,424		43,777		5,971,201
	Real Estate - Home Equity	8,510		7,881		16,391		1,228,411		23,044		1,251,455
	Real Estate - Residential Mortgage	39,984		6,459		46,443		2,817,173		45,053		2,862,226
	Real Estate - Construction	12,060		254		12,314		969,427		3,482		972,909
	Consumer	10,182		117		10,299		465,418		192		465,610
	Equipment Lease Financing and Other	6,948		—		6,948		229,562		16,823		246,385
Total		$	226,751	$	29,786	$	256,537	$	18,511,169	$	193,553	$	18,704,722

Allowance for Credit Losses, prior to January 1, 2020

Prior to January 1, 2020, the ACL consisted of the allowance for loan losses and the reserve for unfunded lending commitments. The allowance for loan losses represented management’s estimate of incurred losses in the loan portfolio as of the balance sheet date and is recorded as a reduction to Net Loans. The reserve for unfunded lending commitments represented management’s estimate of incurred losses in unfunded loan commitments and letters of credit, and was recorded in other liabilities on the consolidated balance sheets. The ACL was increased by charges to expense, through the provision for credit losses, and decreased by charge-offs, net of recoveries.

The following table presents the components of the ACL:

	December 31, 2019
	(in thousands)
Allowance for loan losses	$	163,622
Reserve for unfunded lending commitments	2,587
ACL	$	166,209

The following table presents the activity in the ACL for the periods indicated in 2019:

	Three months ended June 30, 2019		Six months ended June 30, 2019
	(in thousands)
Balance at beginning of period	$	170,372	$	169,410
Loans charged off	(3,711)		(10,080)
Recoveries of loans previously charged off	5,255		7,486
Net loans charged off	1,544		(2,594)
Provision for credit losses(1)	5,025		10,125
Balance at end of period	$	176,941	$	176,941

⁽¹⁾ Includes ($1.6 million) and ($2.2 million) related to reserve for unfunded lending commitments for the three and six months ended June 30, 2019, respectively.

The following table presents the activity in the allowance for loan losses, by portfolio segment, for the three and six months ended June 30, 2019:

	Real Estate - Commercial Mortgage		Commercial & Industrial		Real Estate - Home Equity		Real Estate - Residential Mortgage		Real Estate - Construction		Consumer		Equipment lease financing, other and overdrafts		Total
	(in thousands)
Three months ended June 30, 2019
Balance at March 31, 2019	$	51,946	$	60,501	$	19,215	$	19,146	$	4,941	$	3,319	$	3,041	$	162,109
Loans charged off	(230)		(1,895)		(206)		(134)		(3)		(795)		(448)		(3,711)
Recoveries of loans previously charged off	169		2,680		223		211		1,245		579		148		5,255
Net loans recovered (charged off)	(61)		785		17		77		1,242		(216)		(300)		1,544
Provision for loan losses	2,974		5,055		(251)		(331)		(1,255)		260		128		6,580
Balance at June 30, 2019	$	54,859	$	66,341	$	18,981	$	18,892	$	4,928	$	3,363	$	2,869	$	170,233
Six months ended June 30, 2019
Balance at December 31, 2018	$	52,889	$	58,868	$	18,911	$	18,921	$	5,061	$	3,217	$	2,670	$	160,537
Loans charged off	(1,375)		(4,682)		(425)		(789)		(98)		(1,478)		(1,233)		(10,080)
Recoveries of loans previously charged off	305		3,923		420		343		1,329		789		377		7,486
Net loans recovered (charged off)	(1,070)		(759)		(5)		(446)		1,231		(689)		(856)		(2,594)
Provision for loan losses	3,040		8,232		75		417		(1,364)		835		1,055		12,290
Balance at June 30, 2019	$	54,859	$	66,341	$	18,981	$	18,892	$	4,928	$	3,363	$	2,869	$	170,233

(1) The provision in the table only includes the portion related to Net Loans.

The following table presents Net Loans and their related allowance for loan losses, by portfolio segment as of June 30, 2019:

	Real Estate - Commercial Mortgage		Commercial and Industrial		Real Estate - Home Equity		Real Estate - Residential Mortgage		Real Estate - Construction		Consumer		Equipment lease financing, other and overdrafts		Total
	(in thousands)
Allowance for loan losses:
Collectively evaluated for impairment	$	45,367	$	53,985	$	8,463	$	9,913	$	4,399	$	3,356	$	2,869	$	128,352
Individually evaluated for impairment	9,492		12,356		10,518		8,979		529		7		—		41,881
Total	$	54,859	$	66,341	$	18,981	$	18,892	$	4,928	$	3,363	$	2,869	$	170,233
Net Loans:
Collectively evaluated for impairment	$	6,438,080	$	4,313,666	$	1,363,392	$	2,414,627	$	918,380	$	452,865	$	273,118	$	16,174,128
Individually evaluated for impairment	59,893		51,582		23,582		37,339		4,167		9		17,758		194,330
Total	$	6,497,973	$	4,365,248	$	1,386,974	$	2,451,966	$	922,547	$	452,874	$	290,876	$	16,368,458

Non-accrual Loans

All loans individually evaluated for impairment are measured for losses on a quarterly basis. As of June 30, 2020 and December 31, 2019, substantially all of the Corporation’s individually evaluated loans with total commitments greater than or equal to $1.0 million were measured based on the estimated fair value of each loan’s collateral, if any. Collateral could be in the form of real estate, in the case of commercial mortgages and construction loans, or business assets, such as accounts receivable or inventory, in the case of commercial and industrial loans. Commercial and industrial loans may also be secured by real estate.

As of June 30, 2020 and December 31, 2019, approximately 97% and 93%, respectively, of loans evaluated individually for impairment with principal balances greater than or equal to $1.0 million, whose primary collateral is real estate, were measured at estimated fair value using appraisals performed by state certified third-party appraisers that had been updated in the preceding 12 months.

The following table presents total non-accrual loans, by class segment, as of the following periods:

	June 30, 2020						December 31, 2019
	Non-accrual Loans						Non-accrual Loans
	With a Related Allowance		Without a Related Allowance		Total		Total
	(in thousands)
Real estate - commercial mortgage	$	24,638	$	16,137	$	40,775	$	33,166
Commercial and industrial	18,222		21,157		39,379		48,106
Real estate - residential mortgage	15,634		1,256		16,890		16,676
Real estate - home equity	7,688		—		7,688		7,004
Real estate - construction	2,412		1,070		3,482		3,618
Equipment lease financing and other	—		16,823		16,823		16,528
	$	68,594	$	56,443	$	125,037	$	125,098

As of June 30, 2020, there were $56.4 million of non-accrual loans that did not have a related allowance for credit losses. The estimated fair values of the collateral securing these loans exceeded their carrying amount, or the loans were previously charged down to realizable collateral values. Accordingly, no specific valuation allowance was considered to be necessary.

Asset Quality

Maintaining an appropriate ACL is dependent on various factors, including the ability to identify potential problem loans in a timely manner. For commercial construction, residential construction, commercial and industrial, and commercial real estate, an internal risk rating process is used. The Corporation believes that internal risk ratings are the most relevant credit quality indicator for these types of loans. The migration of loans through the various internal risk categories is a significant component of the ACL methodology for these loans, under both the CECL and incurred loss models, which bases the probability of default on this migration. Assigning risk ratings involves judgment. The Corporation's loan review officers provide a separate assessment of risk rating accuracy. Risk ratings may be changed based on the ongoing monitoring procedures performed by loan officers or credit administration staff, or if specific loan review assessments identify a deterioration or an improvement in the loans.

The following table summarizes designated internal risk categories by portfolio segment and loan class, by origination year, as of June 30, 2020:

		Term Loans Amortized Cost Basis by Origination Year												Revolving Loans		Revolving Loans converted to Term Loans
		(dollars in thousands)												Amortized		Amortized
		2020		2019		2018		2017		2016		Prior		Cost Basis		Cost Basis		Total
Real estate - construction
	Pass	$	57,915	$	229,899	$	204,748	$	140,877	$	50,094	$	126,187	$	48,947	$	—	$	858,667
	Special Mention	—		534		—		—		783		2,635		336		—		4,288
	Substandard or Lower	—		156		—		—		778		5,601		760		—		7,295
	Total real estate - construction	57,915		230,589		204,748		140,877		51,655		134,423		50,043		—		870,250
Real estate - construction
	Current period gross charge-offs	—		—		—		—		—		(17)		—		—		(17)
	Current period recoveries	—		—		—		—		—		70		—		—		70
	Current period net charge-offs	—		—		—		—		—		53		—		—		53
Commercial and industrial
	Pass	2,286,984		559,728		362,758		257,780		230,120		625,302		1,285,256		3,412		5,611,340
	Special Mention	51,958		9,918		10,905		8,782		14,898		37,112		59,836		868		194,277
	Substandard or Lower	30,171		1,193		13,353		14,186		12,712		25,173		68,283		512		165,583
	Total commercial and industrial	2,369,113		570,839		387,016		280,748		257,730		687,587		1,413,375		4,792		5,971,200
Commercial and industrial loans
	Current period gross charge-offs	—		(107)		(9)		(55)		(334)		(210)		(13,664)		—		(14,379)
	Current period recoveries			39		242		63		43		1,673		2,652		—		4,712
	Current period net charge-offs	—		(68)		233		8		(291)		1,463		(11,012)		—		(9,667)
Real estate - commercial mortgage
	Pass	459,245		935,899		791,164		894,358		918,394		2,554,653		81,448		5,812		6,640,973
	Special Mention	755		4,819		18,187		30,164		16,142		101,456		3,207		—		174,730
	Substandard or Lower	15		469		8,393		28,954		9,470		70,781		1,150		—		119,232
	Total real estate - commercial	460,015		941,187		817,744		953,476		944,006		2,726,890		85,805		5,812		6,934,935
Real estate - commercial mortgage
	Current period gross charge-offs	—		(10)		(16)		(1,993)		(11)		(1,132)		(17)		—		(3,179)
	Current period recoveries	—		—		—		—		1		338		—		—		339
	Current period net charge-offs	—		(10)		(16)		(1,993)		(10)		(794)		(17)		—		(2,840)
Total
	Pass	$	2,804,144	$	1,725,526	$	1,358,670	$	1,293,015	$	1,198,608	$	3,306,142	$	1,415,651	$	9,224	$	13,110,980
	Special Mention	52,713		15,271		29,092		38,946		31,823		141,203		63,379		868		373,295
	Substandard or Lower	30,186		1,818		21,746		43,140		22,960		101,555		70,193		512		292,110
	Total	$	2,887,043	$	1,742,615	$	1,409,508	$	1,375,101	$	1,253,391	$	3,548,900	$	1,549,223	$	10,604	$	13,776,385

The information presented in the table above is not required for periods prior to the adoption of CECL. The following table presents the most comparable required information for the prior period, internal credit risk ratings for the indicated loan class segments as of December 31, 2019:

	Pass			Special Mention			Substandard or Lower			Total
	(dollars in thousands)
Real estate - commercial mortgage	$	6,429,407		$	137,163		$	134,206		$	6,700,776
Commercial and industrial - secured	3,830,847			171,442			195,884			4,198,173
Commercial and industrial - unsecured	234,987			9,665			3,876			248,528
Total commercial and industrial	4,065,834			181,107			199,760			4,446,701
Construction - commercial residential	100,808			2,897			3,461			107,166
Construction - commercial	765,562			1,322			2,676			769,560
Total construction (excluding construction - other)	866,370			4,219			6,137			876,726
	$	11,361,611		$	322,489		$	340,103		$	12,024,203
% of Total	94.5		%	2.7		%	2.8		%	100.0		%

The Corporation does not assign internal risk ratings to smaller balance, homogeneous loans, such as home equity, residential mortgage, construction loans to individuals secured by residential real estate, consumer and equipment lease financing. For these loans, the most relevant credit quality indicator is delinquency status. The migration of loans through the various delinquency status categories is a significant component of the ACL methodology for those loans, under both the CECL and incurred loss models, which base the PD on this migration.

The Corporation considers the performance of the loan portfolio and its impact on the ACL. For certain loans classes, the Corporation evaluates credit quality based on the aging status of the loan. The following table presents the amortized cost of these loans based on payment activity, by origination year, as of June 30, 2020:

		Term Loans Amortized Cost Basis by Origination Year												Revolving Loans		Revolving Loans converted to Term Loans
		(dollars in thousands)												Amortized		Amortized
		2020		2019		2018		2017		2016		Prior		Cost Basis		Cost Basis		Total
Real estate - home equity
	Performing	$	13,718	$	9,591	$	15,464	$	13,681	$	15,006	$	145,384	$	1,018,865	$	7,755	$	1,239,464
	Nonperforming	—		—		153		256		228		2,674		8,265		415		11,991
	Total real estate - home equity	13,718		9,591		15,617		13,937		15,234		148,058		1,027,130		8,170		1,251,455
Real estate - home equity
	Current period gross charge-offs	—		—		—		(117)		(23)		(231)		(374)		—		(745)
	Current period recoveries	—		—		—		—		—		219		42		—		261
	Current period net charge-offs	—		—		—		(117)		(23)		(12)		(332)		—		(484)
Real estate - residential mortgage
	Performing	554,061		660,974		311,804		438,785		320,134		553,448		—		—		2,839,206
	Nonperforming	—		635		2,647		2,465		398		16,876		—		—		23,021
	Total real estate - residential mortgage	554,061		661,609		314,451		441,250		320,532		570,324		—		—		2,862,227
Real estate - residential mortgage
	Current period gross charge-offs	—		(15)		(100)		(104)		(6)		(197)		—		—		(422)
	Current period recoveries	—		—		10		1		1		185		—		—		197
	Current period net charge-offs	—		(15)		(90)		(103)		(5)		(12)		—		—		(225)
Consumer
	Performing	58,202		115,866		115,707		54,108		31,027		43,344		47,021		—		465,275
	Nonperforming	—		—		73		42		31		42		147		—		335
	Total consumer credit - other consumer loans	58,202		115,866		115,780		54,150		31,058		43,386		47,168		—		465,610
Consumer
	Current period gross charge-offs	—		(532)		(335)		(326)		(303)		(591)		—		—		(2,087)
	Current period recoveries	83		89		143		51		43		625		—		—		1,034
	Current period net charge-offs	83		(443)		(192)		(275)		(260)		34		—		—		(1,053)
Equipment Lease Financing and Other
	Performing	63,153		76,157		54,353		39,435		16,132		2,537		—		—		251,767
	Nonperforming	1,526		—		207		16,048		299		296		—		—		18,376
	Total leasing and other	64,679		76,157		54,560		55,483		16,431		2,833		—		—		270,143
Equipment Lease Financing and other
	Current period gross charge-offs	(228)		(460)		—		(95)		—		(438)		—		—		(1,221)
	Current period recoveries	61		39		—		66		2		32		—		—		200
	Current period net charge-offs	(167)		(421)		—		(29)		2		(406)		—		—		(1,021)
Construction - other
	Performing	22,051		63,737		6,491		—		16		—		9,508		673		102,476
	Nonperforming	—		—		—		182		—		—		—		—		182
	Total leasing and other	22,051		63,737		6,491		182		16		—		9,508		673		102,658
Construction - other
	Current period gross charge-offs	—		—		—		—		—		—		—		—		—
	Current period recoveries	—		—		—		—		—		—		—		—		—
	Current period net charge-offs	—		—		—		—		—		—		—		—		—
Total
	Performing	$	711,185	$	926,325	$	503,819	$	546,009	$	382,315	$	744,713	$	1,075,394	$	8,428	$	4,898,188
	Nonperforming	1,526		635		3,080		18,993		956		19,888		8,412		415		53,905
	Total	$	712,711	$	926,960	$	506,899	$	565,002	$	383,271	$	764,601	$	1,083,806	$	8,843	$	4,952,093

The information presented in the table above is not required for periods prior to the adoption of CECL. The following table presents the most comparable required information for the prior period, a summary of performing, delinquent and non-performing loans for the indicated class segments:

	December 31, 2019
	Performing			Delinquent (1)			Non-performing (2)			Total
	(dollars in thousands)
Real estate - home equity	$	1,292,035		$	12,341		$	10,568		$	1,314,944
Real estate - residential mortgage	2,584,763			34,291			22,411			2,641,465
Construction - other	92,649			895			809			94,353
Consumer - direct	63,582			465			190			64,237
Consumer - indirect	393,974			4,685			268			398,927
Total consumer	457,556			5,150			458			463,164
Equipment lease financing and other	278,743			4,012			16,642			299,397
	$	4,705,746		$	56,689		$	50,888		$	4,813,323
% of Total	97.8		%	1.2		%	1.0		%	100		%

⁽¹⁾Includes all accruing loans 30 days to 89 days past due.

⁽²⁾Includes all accruing loans 90 days or more past due and all non-accrual loans.

The following table presents non-performing assets:

	June 30, 2020		December 31, 2019
	(in thousands)
Non-accrual loans	$	125,037	$	125,098
Loans 90 days or more past due and still accruing	14,767		16,057
Total non-performing loans	139,804		141,155
OREO (1)	5,418		6,831
Total non-performing assets	$	145,222	$	147,986

⁽¹⁾ Excludes $10.6 million of residential mortgage properties for which formal foreclosure proceedings were in process as of June 30, 2020.

The following tables present the aging of the amortized cost basis of loans, by class segment:

	30-59		60-89		≥ 90 Days
	Days Past		Days Past		Past Due		Non-
	Due		Due		and Accruing		Accrual		Current		Total
	(in thousands)
June 30, 2020
Real estate – commercial mortgage	$	16,431	$	1,190	$	1,599	$	40,775	$	6,874,941	$	6,934,936
Commercial and industrial	2,970		1,215		351		39,379		5,927,286		5,971,201
Real estate – residential mortgage	11,401		5,761		5,997		16,890		2,822,177		2,862,226
Real estate – home equity	3,431		1,593		3,889		7,688		1,234,854		1,251,455
Real estate – construction	2,606		414		1,043		3,482		965,364		972,909
Consumer	1,851		471		334		—		462,954		465,610
Equipment lease financing and other	795		216		1,554		16,823		226,997		246,385
Total	$	39,485	$	10,860	$	14,767	$	125,037	$	18,514,573	$	18,704,722

	30-59 Days Past Due		60-89 Days Past Due		≥ 90 Days Past Due and Accruing		Non- accrual		Current		Total
	(in thousands)
December 31, 2019
Real estate – commercial mortgage	$	10,912	$	1,543	$	4,113	$	33,166	$	6,651,042	$	6,700,776
Commercial and industrial	2,302		2,630		1,385		48,106		4,392,278		4,446,701
Real estate – residential mortgage	26,982		7,309		5,735		16,676		2,584,763		2,641,465
Real estate – home equity	9,635		2,706		3,564		7,004		1,292,035		1,314,944
Real estate – construction	1,715		900		688		3,618		964,158		971,079
Consumer	4,228		922		458		—		457,556		463,164
Equipment lease financing and other	552		3,460		114		16,528		278,743		299,397
Total	$	56,326	$	19,470	$	16,057	$	125,098	$	16,620,575	$	16,837,526

Collateral-Dependent Loans

A financial asset is considered to be collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. For all classes of financial assets deemed collateral-dependent, the Corporation elected the practical expedient to estimate expected credit losses based on the collateral’s fair value less cost to sell. In most cases, the Corporation records a partial charge-off to reduce the loan’s carrying value to the collateral’s fair value less cost to sell. Substantially all of the collateral supporting collateral-dependent financial assets consists of various types of real estate including residential properties; commercial properties such as retail centers, office buildings, and lodging; agriculture land; and vacant land.

Troubled Debt Restructurings

The following table presents TDRs, by class segment:

	June 30, 2020		December 31, 2019
	(in thousands)
Real estate - residential mortgage	$	28,030	$	21,551
Real estate - commercial mortgage	20,407		13,330
Real estate - home equity	15,548		15,068
Commercial and industrial	4,398		5,193
Consumer	—		8
Total accruing TDRs	68,383		55,150
Non-accrual TDRs (1)	31,575		20,825
Total TDRs	$	99,958	$	75,975

(1)Included in non-accrual loans in the preceding table detailing non-performing assets.

The following table presents TDRs, by class segment, for loans that were modified during the three and six months ended June 30, 2020 and 2019:

	Three months ended June 30						Six months ended June 30
	2020			2019			2020			2019
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
	(dollars in thousands)
Real estate - residential mortgage	33	$	8,505	1	$	516	40	$	9,165	5	$	1,433
Real estate - commercial mortgage	6	16,082		2	1,785		7	16,474		2	1,785
Real estate - home equity	19	1,609		22	1,125		27	2,186		34	1,954
Commercial and industrial	13	1,304		4	586		14	1,378		8	3,046
Consumer	8	185		—	—		8	185		—	—
Total	79	$	27,685	29	$	4,012	96	$	29,388	49	$	8,218

Restructured loan modifications may include payment schedule modifications, interest rate concessions, bankruptcies, principal reduction or some combination of these concessions. The restructured loan modifications primarily included maturity date extensions, rate modifications and payment schedule modifications.

In accordance with regulatory guidance, payment schedule modifications granted after March 13, 2020 to borrowers impacted by the effects of the COVID-19 pandemic and who were not delinquent at the time of the payment schedule modifications have been excluded from TDRs. For the six months ended June 30, 2020, payment schedule modifications having a recorded investment of $3.9 billion were excluded from TDRs based on this regulatory guidance.