Loans, Allowance for Credit Losses, and Credit Quality

6 Months Ended

Jun. 30, 2015

Receivables [Abstract]

Loans, Allowance for Credit Losses, and Credit Quality

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

The period end loan composition was as follows.

	June 30, 2015		December 31, 2014
	($ in Thousands)
Commercial and industrial	$	6,208,192	$	5,905,902
Commercial real estate - owner occupied	978,183		1,007,937
Lease financing	46,900		51,529
Commercial and business lending	7,233,275		6,965,368
Commercial real estate - investor	3,126,440		3,056,485
Real estate construction	1,092,308		1,008,956
Commercial real estate lending	4,218,748		4,065,441
Total commercial	11,452,023		11,030,809
Home equity	1,530,463		1,636,058
Installment and credit cards	430,823		454,219
Residential mortgage	4,889,943		4,472,760
Total consumer	6,851,229		6,563,037
Total loans	$	18,303,252	$	17,593,846

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

	Six Months Ended June 30, 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	9,500			13,000
Charge offs	(27,807		)	(44,096		)
Recoveries	13,543			29,083
Net charge offs	(14,264		)	(15,013		)
Balance at end of period	$	261,538		$	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	$	286,438		$	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 six months ended June 30, 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	7,855			4,583			(128		)	(3,199		)	(530		)	(319		)	1,214			24			9,500
Charge offs	(13,012		)	(2,249		)	—			(3,430		)	(447		)	(4,387		)	(1,928		)	(2,354		)	(27,807		)
Recoveries	4,441			312			—			4,103			1,863			1,849			373			602			13,543
Balance at Jun 30, 2015	$	115,309		$	19,156		$	1,482		$	43,807		$	21,885		$	27,502		$	6,094		$	26,303		$	261,538
Allowance for loan losses:
Ending balance impaired loans individually evaluated for impairment	$	6,381		$	455		$	464		$	44		$	—		$	3		$	—		$	173		$	7,520
Ending balance impaired loans collectively evaluated for impairment	1,415			587			—			1,911			518			11,398			234			11,242			27,305
Total impaired loans	$	7,796		$	1,042		$	464		$	1,955		$	518		$	11,401		$	234		$	11,415		$	34,825
Ending balance all other loans collectively evaluated for impairment	107,513			18,114			1,018			41,852			21,367			16,101			5,860			14,888			226,713
Total	$	115,309		$	19,156		$	1,482		$	43,807		$	21,885		$	27,502		$	6,094		$	26,303		$	261,538
Loans:
Ending balance impaired loans individually evaluated for impairment	$	62,483		$	16,485		$	1,656		$	2,914		$	1,925		$	321		$	—		$	8,740		$	94,524
Ending balance impaired loans collectively evaluated for impairment	34,318			7,769			—			25,185			1,695			27,686			1,250			58,154			156,057
Total impaired loans	$	96,801		$	24,254		$	1,656		$	28,099		$	3,620		$	28,007		$	1,250		$	66,894		$	250,581
Ending balance all other loans collectively evaluated for impairment	6,111,391			953,929			45,244			3,098,341			1,088,688			1,502,456			429,573			4,823,049			18,052,671
Total	$	6,208,192		$	978,183		$	46,900		$	3,126,440		$	1,092,308		$	1,530,463		$	430,823		$	4,889,943		$	18,303,252

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 June 30, 2015, $26 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 3.43% and 2.26% of period end Oil and Gas related loans at June 30, 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 June 30, 2015.

	Pass		Special Mention		Potential Problem		Impaired		Total
	($ in Thousands)
Commercial and industrial	$	5,753,506	$	232,242	$	125,643	$	96,801	$	6,208,192
Commercial real estate - owner occupied	886,336		25,596		41,997		24,254		978,183
Lease financing	39,549		4,310		1,385		1,656		46,900
Commercial and business lending	6,679,391		262,148		169,025		122,711		7,233,275
Commercial real estate - investor	3,060,371		14,427		23,543		28,099		3,126,440
Real estate construction	1,086,630		731		1,327		3,620		1,092,308
Commercial real estate lending	4,147,001		15,158		24,870		31,719		4,218,748
Total commercial	$	10,826,392	$	277,306	$	193,895	$	154,430	$	11,452,023

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 June 30, 2015.

	Performing		30-89 Days Past Due		Potential Problem		Impaired		Total
	($ in Thousands)
Home equity	$	1,493,285	$	8,739	$	432	$	28,007	$	1,530,463
Installment and credit cards	427,918		1,655		—		1,250		430,823
Residential mortgage	4,812,794		4,914		5,341		66,894		4,889,943
Total consumer	$	6,733,997	$	15,308	$	5,773	$	96,151	$	6,851,229

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 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 June 30, 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	$	5,272	$	1,085	$	262	$	6,619	$	6,136,835	$	6,143,454
Commercial real estate - owner occupied	855		235		—		1,090		958,272		959,362
Lease financing	—		—		—		—		45,244		45,244
Commercial and business lending	6,127		1,320		262		7,709		7,140,351		7,148,060
Commercial real estate - investor	17,449		2,394		—		19,843		3,100,507		3,120,350
Real estate construction	203		109		—		312		1,089,090		1,089,402
Commercial real estate lending	17,652		2,503		—		20,155		4,189,597		4,209,752
Total commercial	23,779		3,823		262		27,864		11,329,948		11,357,812
Home equity	6,527		2,212		31		8,770		1,503,287		1,512,057
Installment and credit cards	1,055		600		1,369		3,024		427,345		430,369
Residential mortgage	4,725		189		—		4,914		4,837,739		4,842,653
Total consumer	12,307		3,001		1,400		16,708		6,768,371		6,785,079
Total accruing loans	$	36,086	$	6,824	$	1,662	$	44,572	$	18,098,319	$	18,142,891
Nonaccrual loans
Commercial and industrial	$	1,276	$	3,684	$	8,907	$	13,867	$	50,871	$	64,738
Commercial real estate - owner occupied	258		1,058		7,942		9,258		9,563		18,821
Lease financing	—		—		504		504		1,152		1,656
Commercial and business lending	1,534		4,742		17,353		23,629		61,586		85,215
Commercial real estate - investor	2,462		640		2,066		5,168		922		6,090
Real estate construction	81		50		459		590		2,316		2,906
Commercial real estate lending	2,543		690		2,525		5,758		3,238		8,996
Total commercial	4,077		5,432		19,878		29,387		64,824		94,211
Home equity	1,817		1,780		8,025		11,622		6,784		18,406
Installment and credit cards	39		32		168		239		215		454
Residential mortgage	3,762		3,958		17,505		25,225		22,065		47,290
Total consumer	5,618		5,770		25,698		37,086		29,064		66,150
Total nonaccrual loans (b)	$	9,695	$	11,202	$	45,576	$	66,473	$	93,888	$	160,361
Total loans
Commercial and industrial	$	6,548	$	4,769	$	9,169	$	20,486	$	6,187,706	$	6,208,192
Commercial real estate - owner occupied	1,113		1,293		7,942		10,348		967,835		978,183
Lease financing	—		—		504		504		46,396		46,900
Commercial and business lending	7,661		6,062		17,615		31,338		7,201,937		7,233,275
Commercial real estate - investor	19,911		3,034		2,066		25,011		3,101,429		3,126,440
Real estate construction	284		159		459		902		1,091,406		1,092,308
Commercial real estate lending	20,195		3,193		2,525		25,913		4,192,835		4,218,748
Total commercial	27,856		9,255		20,140		57,251		11,394,772		11,452,023
Home equity	8,344		3,992		8,056		20,392		1,510,071		1,530,463
Installment and credit cards	1,094		632		1,537		3,263		427,560		430,823
Residential mortgage	8,487		4,147		17,505		30,139		4,859,804		4,889,943
Total consumer	17,925		8,771		27,098		53,794		6,797,435		6,851,229
Total loans	$	45,781	$	18,026	$	47,238	$	111,045	$	18,192,207	$	18,303,252

(a) The recorded investment in loans past due 90 days or more and still accruing totaled $2 million at June 30, 2015 (the same as the reported balances for the accruing loans noted above).

(b) The percent of nonaccrual loans which are current was 59% at June 30, 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 June 30, 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	$	69,425	$	71,027	$	7,796	$	66,408	$	651
Commercial real estate - owner occupied	11,096		11,338		1,042		11,324		139
Lease financing	1,656		1,656		464		1,710		—
Commercial and business lending	82,177		84,021		9,302		79,442		790
Commercial real estate - investor	25,868		27,546		1,955		25,995		587
Real estate construction	1,695		2,389		518		1,931		32
Commercial real estate lending	27,563		29,935		2,473		27,926		619
Total commercial	109,740		113,956		11,775		107,368		1,409
Home equity	27,797		30,873		11,401		28,356		644
Installment and credit cards	1,250		1,394		234		1,301		15
Residential mortgage	59,735		63,695		11,415		60,151		990
Total consumer	88,782		95,962		23,050		89,808		1,649
Total loans	$	198,522	$	209,918	$	34,825	$	197,176	$	3,058
Loans with no related allowance
Commercial and industrial	$	27,376	$	28,034	$	—	$	27,722	$	337
Commercial real estate - owner occupied	13,158		14,519		—		13,335		36
Lease financing	—		—		—		—		—
Commercial and business lending	40,534		42,553		—		41,057		373
Commercial real estate - investor	2,231		2,626		—		2,273		—
Real estate construction	1,925		2,237		—		1,954		—
Commercial real estate lending	4,156		4,863		—		4,227		—
Total commercial	44,690		47,416		—		45,284		373
Home equity	210		210		—		211		4
Installment and credit cards	—		—		—		—		—
Residential mortgage	7,159		7,413		—		7,173		41
Total consumer	7,369		7,623		—		7,384		45
Total loans	$	52,059	$	55,039	$	—	$	52,668	$	418
Total impaired loans
Commercial and industrial	$	96,801	$	99,061	$	7,796	$	94,130	$	988
Commercial real estate - owner occupied	24,254		25,857		1,042		24,659		175
Lease financing	1,656		1,656		464		1,710		—
Commercial and business lending	122,711		126,574		9,302		120,499		1,163
Commercial real estate - investor	28,099		30,172		1,955		28,268		587
Real estate construction	3,620		4,626		518		3,885		32
Commercial real estate lending	31,719		34,798		2,473		32,153		619
Total commercial	154,430		161,372		11,775		152,652		1,782
Home equity	28,007		31,083		11,401		28,567		648
Installment and credit cards	1,250		1,394		234		1,301		15
Residential mortgage	66,894		71,108		11,415		67,324		1,031
Total consumer	96,151		103,585		23,050		97,192		1,694
Total impaired loans (b)	$	250,581	$	264,957	$	34,825	$	249,844	$	3,476

(a) Interest income recognized included $2 million of interest income recognized on accruing restructured loans for the six months ended June 30, 2015.

(b) The implied fair value mark on all impaired loans at June 30, 2015 was 81% 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 impaired loans
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 impaired 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 $15 million recorded investment in loans modified in troubled debt restructurings for the six months ended June 30, 2015, of which $3 million was in accrual status and $12 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.

	June 30, 2015				December 31, 2014
	Performing Restructured Loans		Nonaccrual Restructured Loans *		Performing Restructured Loans		Nonaccrual Restructured Loans *
	($ in Thousands)
Commercial and industrial	$	32,063	$	6,496	$	33,892	$	3,260
Commercial real estate - owner occupied	5,433		3,900		10,454		5,656
Commercial real estate - investor	22,009		4,528		23,127		15,216
Real estate construction	714		179		727		2,438
Home equity	9,601		5,551		10,066		7,518
Installment and credit cards	796		146		974		199
Residential mortgage	19,604		22,899		18,976		23,369
Total	$	90,220	$	43,699	$	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 and six months ended June 30, 2015, and the recorded investment and unpaid principal balance as of June 30, 2015.

	Three Months Ended June 30, 2015					Six Months Ended June 30, 2015
	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	4	$	1,666	$	2,101	6	$	1,847	$	2,296
Commercial real estate - owner occupied	—	—		—		5	3,506		3,636
Commercial real estate - investor	—	—		—		1	2,237		2,237
Real estate construction	1	6		6		1	6		6
Home equity	26	850		850		49	1,897		1,898
Residential mortgage	28	2,861		2,932		52	5,249		5,380
Total	59	$	5,383	$	5,889	114	$	14,742	$	15,453

(1) Represents post-modification outstanding recorded investment.

(2) Represents pre-modification outstanding recorded investment.

The following table provides the number of loans modified in a troubled debt restructuring by loan portfolio for the three and six months ended June 30, 2014, and the recorded investment and unpaid principal balance as of June 30, 2014.

	Three Months Ended June 30, 2014					Six Months Ended June 30, 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	3	$	526	$	534	11	$	3,889	$	7,736
Commercial real estate - owner occupied	1	894		894		5	6,096		6,652
Commercial real estate - investor	—	—		—		1	493		508
Real estate construction	1	6		6		1	6		6
Home equity	35	1,630		1,723		62	2,476		2,693
Installment and credit cards	1	16		16		2	25		35
Residential mortgage	28	1,942		2,435		48	4,430		5,103
Total	69	$	5,014	$	5,608	130	$	17,415	$	22,733

(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 and six months ended June 30, 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 and six months endedJune 30, 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 and six months ended June 30, 2015 , as well as the recorded investment in these restructured loans as of June 30, 2015.

	Three Months Ended June 30, 2015			Six Months Ended June 30, 2015
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
	($ in Thousands)
Commercial and industrial	1	$	43	1	$	43
Commercial real estate - owner occupied	—	—		1	297
Home equity	15	341		22	1,001
Residential mortgage	13	992		29	2,230
Total	29	$	1,376	53	$	3,571

The following table provides the number of loans modified in a troubled debt restructuring during the previous 12 months which subsequently defaulted during the three and six months ended June 30, 2014, as well as the recorded investment in these restructured loans as of June 30, 2014.

	Three Months Ended June 30, 2014			Six Months Ended June 30, 2014
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
	($ in Thousands)
Commercial and industrial	2	$	135	2	$	135
Commercial real estate - owner occupied	2	612		2	612
Commercial real estate - investor	1	1,291		1	1,291
Real estate construction	—	—		1	161
Home equity	13	414		18	651
Installment and credit cards	1	16		2	25
Residential mortgage	20	1,565		32	3,334
Total	39	$	4,033	58	$	6,209

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.