Loans and Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2014

Loans, net of unearned income are summarized as follows as of December 31:



	2014			2013
	(in thousands)
Real estate – commercial mortgage	$	5,197,155		$	5,101,922
Commercial – industrial, financial and agricultural	3,725,567			3,628,420
Real estate – home equity	1,736,688			1,764,197
Real estate – residential mortgage	1,377,068			1,337,380
Real estate – construction	690,601			573,672
Consumer	265,431			283,124
Leasing and other	127,562			99,256
Overdrafts	4,021			4,045
Loans, gross of unearned income	13,124,093			12,792,016
Unearned income	(12,377		)	(9,796		)
Loans, net of unearned income	$	13,111,716		$	12,782,220

Schedule of Allowance for Credit Losses

The following table presents the components of the allowance for credit losses as of December 31:



	2014		2013		2012
	(in thousands)
Allowance for loan losses	$	184,144	$	202,780	$	223,903
Reserve for unfunded lending commitments	1,787		2,137		1,536
Allowance for credit losses	$	185,931	$	204,917	$	225,439

Activity in the Allowance for Credit Losses

The following table presents the activity in the allowance for credit losses for the years ended December 31:



	2014			2013			2012
	(in thousands)
Balance at beginning of year	$	204,917		$	225,439		$	258,177
Loans charged off	(44,593		)	(80,212		)	(140,366		)
Recoveries of loans previously charged off	13,107			19,190			13,628
Net loans charged off	(31,486		)	(61,022		)	(126,738		)
Provision for credit losses	12,500			40,500			94,000
Balance at end of year	$	185,931		$	204,917		$	225,439

The following table presents the activity in the allowance for loan losses by portfolio segment for the years ended December 31 and loans, net of unearned income, and their related allowance for loan losses, by portfolio segment, as of December 31:



	Real Estate - Commercial Mortgage			Commercial - Industrial, Financial and Agricultural			Real Estate - Home Equity			Real Estate - Residential Mortgage			Real Estate - Construction			Consumer			Leasing and other and Overdrafts			Unallocated (1)			Total
	(in thousands)
Balance at December 31, 2012	$	62,928		$	60,205		$	22,776		$	34,536		$	17,287		$	2,367		$	2,752		$	21,052		$	223,903
Loans charged off	(20,829		)	(30,383		)	(8,193		)	(9,705		)	(6,572		)	(1,877		)	(2,653		)	—			(80,212		)
Recoveries of loans previously charged off	3,494			9,281			860			548			2,682			1,518			807			—			19,190
Net loans charged off	(17,335		)	(21,102		)	(7,333		)	(9,157		)	(3,890		)	(359		)	(1,846		)	—			(61,022		)
Provision for loan losses (2)	10,066			11,227			12,779			7,703			(748		)	1,252			2,464			(4,844		)	39,899
Balance at December 31, 2013	55,659			50,330			28,222			33,082			12,649			3,260			3,370			16,208			202,780
Loans charged off	(6,004		)	(24,516		)	(5,486		)	(2,918		)	(1,209		)	(2,325		)	(2,135		)	—			(44,593		)
Recoveries of loans previously charged off	1,960			4,256			1,025			451			3,177			1,322			916			—			13,107
Net loans charged off	(4,044		)	(20,260		)	(4,461		)	(2,467		)	1,968			(1,003		)	(1,219		)	—			(31,486		)
Provision for loan losses (2)	1,878			21,308			4,510			(1,543		)	(4,861		)	758			(352		)	(8,848		)	12,850
Balance at December 31, 2014	$	53,493		$	51,378		$	28,271		$	29,072		$	9,756		$	3,015		$	1,799		$	7,360		$	184,144

Allowance for loan losses at December 31, 2014
Measured for impairment under FASB ASC Subtopic 450-20	$	36,778		$	38,348		$	19,047		$	10,480		$	6,485		$	2,980		$	1,799		$	7,360		$	123,277
Evaluated for impairment under FASB ASC Section 310-10-35	16,715			13,030			9,224			18,592			3,271			35			—			N/A			60,867
	$	53,493		$	51,378		$	28,271		$	29,072		$	9,756		$	3,015		$	1,799		$	7,360		$	184,144
Loans, net of unearned income at December 31, 2014
Measured for impairment under FASB ASC Subtopic 450-20	$	5,133,896		$	3,690,561		$	1,723,230		$	1,325,717		$	665,012		$	265,393		$	119,206		N/A			$	12,923,015
Evaluated for impairment under FASB ASC Section 310-10-35	63,259			35,006			13,458			51,351			25,589			38			—			N/A			188,701
	$	5,197,155		$	3,725,567		$	1,736,688		$	1,377,068		$	690,601		$	265,431		$	119,206		N/A			$	13,111,716
Allowance for loan losses at December 31, 2013
Measured for impairment under FASB ASC Subtopic 450-20	$	41,215		$	36,263		$	19,163		$	11,337		$	8,778		$	3,248		$	3,370		$	16,208		$	139,582
Evaluated for impairment under FASB ASC Section 310-10-35	14,444			14,067			9,059			21,745			3,871			12			—			N/A			63,198
	$	55,659		$	50,330		$	28,222		$	33,082		$	12,649		$	3,260		$	3,370		$	16,208		$	202,780
Loans, net of unearned income at December 31, 2013
Measured for impairment under FASB ASC Subtopic 450-20	$	5,041,598		$	3,583,665		$	1,749,560		$	1,286,283		$	542,634		$	283,111		$	93,505		N/A			$	12,580,356
Evaluated for impairment under FASB ASC Section 310-10-35	60,324			44,755			14,637			51,097			31,038			13			—			N/A			201,864
	$	5,101,922		$	3,628,420		$	1,764,197		$	1,337,380		$	573,672		$	283,124		$	93,505		N/A			$	12,782,220


(1)	The Corporation’s unallocated allowance, which was approximately 4% and 8% of the total allowance for credit losses as of December 31, 2014 and December 31, 2013, respectively, was, in the opinion of management, reasonable and appropriate given that the estimates used in the allocation process are inherently imprecise.

(2)

For the year ended December 31, 2014, the provision for loan losses excluded a $350,000 decrease in the reserve for unfunded lending commitments. The total provision for credit losses, comprised of allocations for both funded and unfunded loans, was $12.5 million for the year ended December 31, 2014. For the year ended December 31, 2013, the provision for loan losses excluded a $601,000 increase in the reserve for unfunded lending commitments. The total provision for credit losses, comprised of allocations for both funded and unfunded loans, was $40.5 million for the year ended December 31, 2013.

N/A – Not applicable.

Total Impaired Loans by Class Segment

The following table presents total impaired loans by class segment as of December 31:



	2014						2013
	Unpaid Principal Balance		Recorded Investment		Related Allowance		Unpaid Principal Balance		Recorded Investment		Related Allowance
	(in thousands)
With no related allowance recorded:
Real estate - commercial mortgage	$	25,802	$	23,236	$	—	$	28,892	$	24,494	$	—
Commercial - secured	17,599		14,582		—		23,890		21,383		—
Real estate - home equity	—		—		—		399		300		—
Real estate - residential mortgage	4,873		4,873		—		—		—		—
Construction - commercial residential	18,041		14,801		—		18,468		13,265		—
Construction - commercial	1,707		1,581		—		3,471		2,451		—
	68,022		59,073				75,120		61,893
With a related allowance recorded:
Real estate - commercial mortgage	49,619		40,023		16,715		43,282		35,830		14,444
Commercial - secured	24,824		19,335		12,165		34,267		22,324		13,315
Commercial - unsecured	1,241		1,089		865		1,113		1,048		752
Real estate - home equity	19,392		13,458		9,224		20,383		14,337		9,059
Real estate - residential mortgage	56,607		46,478		18,592		63,682		51,097		21,745
Construction - commercial residential	14,007		7,903		2,675		22,594		12,777		2,646
Construction - commercial	1,501		1,023		459		3,660		1,997		924
Construction - other	452		281		137		719		548		301
Consumer - indirect	20		19		18		2		2		2
Consumer - direct	19		19		17		11		11		10
	167,682		129,628		60,867		189,713		139,971		63,198
Total	$	235,704	$	188,701	$	60,867	$	264,833	$	201,864	$	63,198

As of December 31, 2014 and 2013, there were $59.1 million and $61.9 million, respectively, of impaired loans that did not have a related allowance for loan loss. The estimated fair values of the collateral securing these loans exceeded their carrying amount, or the loans have been charged down to realizable collateral values. Accordingly, no specific valuation allowance was considered to be necessary.

The following table presents average impaired loans, by class segment, for the years ended December 31:



	2014				2013				2012
	Average Recorded Investment		Interest Income Recognized (1)		Average Recorded Investment		Interest Income Recognized (1)		Average Recorded Investment		Interest Income Recognized (1)
	(in thousands)
With no related allowance recorded:
Real estate - commercial mortgage	$	23,467	$	320	$	28,603	$	489	$	41,575	$	538
Commercial - secured	18,928		119		30,299		173		26,443		50
Commercial - unsecured	—		—		26		—		52		—
Real estate - home equity	180		1		262		1		433		2
Real estate - residential mortgage	1,532		31		695		25		989		45
Construction - commercial residential	15,421		227		19,847		256		27,361		185
Construction - commercial	1,907		—		3,480		2		3,492		19
	61,435		698		83,212		946		100,345		839
With a related allowance recorded:
Real estate - commercial mortgage	38,240		524		44,136		706		64,739		755
Commercial - secured	20,991		129		27,919		153		45,217		97
Commercial - unsecured	895		3		1,411		5		2,604		6
Real estate - home equity	13,976		108		14,092		65		8,017		23
Real estate - residential mortgage	50,281		1,178		52,251		1,210		44,791		1,446
Construction - commercial residential	8,723		136		11,219		168		19,284		130
Construction - commercial	1,900		—		2,468		3		2,233		17
Construction - other	387		—		523		1		974		7
Consumer - indirect	7		—		1		—		—		—
Consumer - direct	16		1		19		—		84		—
Leasing and other and overdrafts	—		—		11		—		83		—
	135,416		2,079		154,050		2,311		188,026		2,481
Total	$	196,851	$	2,777	$	237,262	$	3,257	$	288,371	$	3,320


(1)	All impaired loans, excluding accruing TDRs, were non-accrual loans. Interest income recognized for the years ended December 31, 2014, 2013 and 2012 represents amounts earned on accruing TDRs.

Financing Receivable Credit Quality Indicators

The following table presents internal credit risk ratings for real estate - commercial mortgages, commercial - secured loans,

commercial - unsecured loans, construction - commercial residential loans and construction - commercial loans as of December 31:



	Pass						Special Mention						Substandard or Lower						Total
	2014			2013			2014			2013			2014			2013			2014			2013
	(dollars in thousands)
Real estate - commercial mortgage	$	4,899,016		$	4,763,987		$	127,302		$	141,013		$	170,837		$	196,922		$	5,197,155		$	5,101,922
Commercial - secured	3,333,486			3,167,168			120,584			111,613			110,544			125,382			3,564,614			3,404,163
Commercial -unsecured	146,680			209,836			7,463			11,666			6,810			2,755			160,953			224,257
Total commercial - industrial, financial and agricultural	3,480,166			3,377,004			128,047			123,279			117,354			128,137			3,725,567			3,628,420
Construction - commercial residential	136,109			117,680			27,495			30,946			40,066			55,309			203,670			203,935
Construction - commercial	409,631			286,802			12,202			3,508			5,586			10,621			427,419			300,931
Total real estate - construction (excluding construction - other)	545,740			404,482			39,697			34,454			45,652			65,930			631,089			504,866
Total	$	8,924,922		$	8,545,473		$	295,046		$	298,746		$	333,843		$	390,989		$	9,553,811		$	9,235,208

% of Total	93.4		%	92.6		%	3.1		%	3.2		%	3.5		%	4.2		%	100.0		%	100.0		%

The following table presents the delinquency and non-performing status of home equity, real estate - residential mortgages, construction loans to individuals, consumer, leasing and other loans by class segment as of December 31:



	Performing						Delinquent (1)						Non-performing (2)						Total
	2014			2013			2014			2013			2014			2013			2014			2013
	(dollars in thousands)
Real estate - home equity	$	1,711,017		$	1,731,185		$	10,931		$	16,029		$	14,740		$	16,983		$	1,736,688		$	1,764,197
Real estate - residential mortgage	1,321,139			1,282,754			26,934			23,279			28,995			31,347			1,377,068			1,337,380
Real estate - construction - other	59,180			68,258			—			—			332			548			59,512			68,806
Consumer - direct	104,018			126,666			2,891			3,586			2,414			2,391			109,323			132,643
Consumer - indirect	153,358			147,017			2,574			3,312			176			152			156,108			150,481
Total consumer	257,376			273,683			5,465			6,898			2,590			2,543			265,431			283,124
Leasing and other and overdrafts	118,550			92,876			523			581			133			48			119,206			93,505
Total	$	3,467,262		$	3,448,756		$	43,853		$	46,787		$	46,790		$	51,469		$	3,557,905		$	3,547,012

% of Total	97.5		%	97.2		%	1.2		%	1.3		%	1.3		%	1.5		%	100.0		%	100.0		%

(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

Non-Performing Assets

The following table presents non-performing assets as of December 31:



	2014		2013
	(in thousands)
Non-accrual loans	$	121,080	$	133,753
Accruing loans greater than 90 days past due	17,402		20,524
Total non-performing loans	138,482		154,277
Other real estate owned	12,022		15,052
Total non-performing assets	$	150,504	$	169,329

Troubled Debt Restructurings on Financing Receivables

The following table presents loans whose terms were modified under TDRs as of December 31:



	2014		2013
	(in thousands)
Real-estate - residential mortgage	$	31,308	$	28,815
Real-estate - commercial mortgage	18,822		19,758
Construction - commercial residential	9,241		9,889
Commercial - secured	5,170		7,933
Real estate - home equity	2,975		1,365
Commercial - unsecured	67		112
Consumer - direct	19		11
Consumer - indirect	19		—
Construction - commercial	—		228
Total accruing TDRs	67,621		68,111
Non-accrual TDRs (1)	24,616		30,209
Total TDRs	$	92,237	$	98,320

(1)Included within non-accrual loans in the preceding table

Loan Terms Modified Under Troubled Debt Restructurings during The Period By Class Segment

The following table presents TDRs by class segment as of December 31, 2014 and 2013 that were modified during the years ended December 31, 2014 and 2013:



	2014			2013
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
	(dollars in thousands)
Real estate - commercial mortgage	8	$	6,841	16	$	9,439
Construction - commercial residential	3	3,616		3	5,285
Real estate - residential mortgage	23	2,407		49	9,611
Real estate - home equity	30	1,551		36	2,602
Commercial - secured	11	1,955		8	1,699
Consumer - indirect	4	20		—	—
Consumer - direct	7	7		12	1
Commercial - unsecured	—	—		1	12
	86	$	16,397	125	$	28,649

Schedule Of TDRs Modified Last 12 Months Which Had Payment Default In 2014

The following table presents TDRs, by class segment, as of December 31, 2014 and 2013 that were modified during the years ended December 31, 2014 and 2013 and had a post-modification payment default during their respective year of modification. The Corporation defines a payment default as a single missed scheduled payment:



	2014			2013
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
	(dollars in thousands)
Construction - commercial residential	2	$	1,803	1	$	568
Real estate - commercial mortgage	2	1,660		6	3,683
Real estate - residential mortgage	11	1,430		19	4,211
Commercial - secured	4	1,208		2	108
Real estate - home equity	11	961		15	1,249
Consumer - direct	1	1		—	—
	31	$	7,063	43	$	9,819

Past due Loan Status and Non-Accrual Loans by Portfolio Segment

The following table presents past due status and non-accrual loans by portfolio segment and class segment as of December 31:



	2014
	31-59 Days Past Due		60-89 Days Past Due		≥ 90 Days Past Due and Accruing		Non- accrual		Total ≥ 90 Days		Total Past Due		Current		Total
	(in thousands)
Real estate - commercial mortgage	$	14,399	$	3,677	$	800	$	44,437	$	45,237	$	63,313	$	5,133,842	$	5,197,155
Commercial - secured	4,839		958		610		28,747		29,357		35,154		3,529,460		3,564,614
Commercial - unsecured	395		65		9		1,022		1,031		1,491		159,462		160,953
Total Commercial - industrial, financial and agricultural	5,234		1,023		619		29,769		30,388		36,645		3,688,922		3,725,567
Real estate - home equity	8,048		2,883		4,257		10,483		14,740		25,671		1,711,017		1,736,688
Real estate - residential mortgage	18,789		8,145		8,952		20,043		28,995		55,929		1,321,139		1,377,068
Construction - commercial	—		—		—		2,604		2,604		2,604		424,815		427,419
Construction - commercial residential	160		—		—		13,463		13,463		13,623		190,047		203,670
Construction - other	—		—		51		281		332		332		59,180		59,512
Total Real estate - construction	160		—		51		16,348		16,399		16,559		674,042		690,601
Consumer - direct	2,034		857		2,414		—		2,414		5,305		104,018		109,323
Consumer - indirect	2,156		418		176		—		176		2,750		153,358		156,108
Total Consumer	4,190		1,275		2,590		—		2,590		8,055		257,376		265,431
Leasing and other and overdrafts	357		166		133		—		133		656		118,550		119,206
	$	51,177	$	17,169	$	17,402	$	121,080	$	138,482	$	206,828	$	12,904,888	$	13,111,716



	2013
	31-59 Days Past Due		60-89 Days Past Due		≥ 90 Days Past Due and Accruing		Non- accrual		Total ≥ 90 Days		Total Past Due		Current		Total
	(in thousands)
Real estate - commercial mortgage	$	15,474	$	4,009	$	3,502	$	40,566	$	44,068	$	63,551	$	5,038,371	$	5,101,922
Commercial - secured	8,916		1,365		1,311		35,774		37,085		47,366		3,356,797		3,404,163
Commercial - unsecured	332		125		—		936		936		1,393		222,864		224,257
Total Commercial - industrial, financial and agricultural	9,248		1,490		1,311		36,710		38,021		48,759		3,579,661		3,628,420
Real estate - home equity	13,555		2,474		3,711		13,272		16,983		33,012		1,731,185		1,764,197
Real estate - residential mortgage	16,969		6,310		9,065		22,282		31,347		54,626		1,282,754		1,337,380
Construction - commercial	14		375		—		4,220		4,220		4,609		296,322		300,931
Construction - commercial residential	—		270		346		16,153		16,499		16,769		187,166		203,935
Construction - other	—		—		—		548		548		548		68,258		68,806
Total Real estate - construction	14		645		346		20,921		21,267		21,926		551,746		573,672
Consumer - direct	2,091		1,495		2,391		—		2,391		5,977		126,666		132,643
Consumer - indirect	2,864		448		150		2		152		3,464		147,017		150,481
Total Consumer	4,955		1,943		2,541		2		2,543		9,441		273,683		283,124
Leasing and other and overdrafts	559		22		48		—		48		629		92,876		93,505
	$	60,774	$	16,893	$	20,524	$	133,753	$	154,277	$	231,944	$	12,550,276	$	12,782,220