Loans

6 Months Ended

Jun. 30, 2018

Receivables [Abstract]

Loans

Loans

The following table provides the balance of loans, net of unearned income, by portfolio segment as of June 30, 2018 and December 31, 2017:

	June 30		December 31
(Dollars in thousands)	2018		2017
Commercial:
Commercial, financial, and industrial	$	16,438,745	$	16,057,273
Commercial real estate	4,136,356		4,214,695
Consumer:
Consumer real estate (a)	6,222,611		6,367,755
Permanent mortgage	354,916		399,307
Credit card & other	549,112		619,899
Loans, net of unearned income	$	27,701,740	$	27,658,929
Allowance for loan losses	185,462		189,555
Total net loans	$	27,516,278	$	27,469,374

(a) Balances as of June 30, 2018 and December 31, 2017, include $18.9 million and $24.2 million of restricted real estate loans, respectively. See Note 13—Variable Interest Entities for additional information.

COMPONENTS OF THE LOAN PORTFOLIO

The loan portfolio is disaggregated into segments and then further disaggregated into classes for certain disclosures. GAAP defines a portfolio segment as the level at which an entity develops and documents a systematic method for determining its allowance for credit losses. A class is generally determined based on the initial measurement attribute (i.e., amortized cost or purchased credit-impaired), risk characteristics of the loan, and FHN’s method for monitoring and assessing credit risk. Commercial loan portfolio segments include commercial, financial and industrial (“C&I”) and commercial real estate. Commercial classes within C&I include general C&I, loans to mortgage companies, the trust preferred loans (“TRUPS”) (i.e. long-term unsecured loans to bank and insurance-related businesses) portfolio and purchased credit-impaired (“PCI”) loans. Loans to mortgage companies include commercial lines of credit to qualified mortgage companies primarily for the temporary warehousing of eligible mortgage loans prior to the borrower’s sale of those mortgage loans to third party investors. Commercial classes within CRE include income CRE, residential CRE and PCI loans. Consumer loan portfolio segments include consumer real estate, permanent mortgage, and the credit card and other portfolio. Consumer classes include home equity lines of credit (“HELOCs”), real estate (“R/E”) installment and PCI loans within the consumer real estate segment, permanent mortgage (which is both a segment and a class), and credit card and other.

Concentrations

FHN has a concentration of residential real estate loans (24 percent of total loans), the majority of which is in the consumer real estate segment (23 percent of total loans). Loans to finance and insurance companies total $2.8 billion (17 percent of the C&I portfolio, or 10 percent of the total loans). FHN had loans to mortgage companies totaling $2.4 billion (14 percent of the C&I segment, or 9 percent of total loans) as of June 30, 2018. As a result, 31 percent of the C&I segment is sensitive to impacts on the financial services industry.

Purchased Credit-Impaired Loans

The following table presents a rollforward of the accretable yield for the three months ended June 30, 2018 and 2017:

	Three Months Ended June 30						Six Months Ended June 30
(Dollars in thousands)	2018			2017			2018			2017
Balance, beginning of period	$	15,323		$	5,198		$	15,623		$	6,871
Accretion	(2,607		)	(919		)	(4,744		)	(1,770		)
Adjustment for payoffs	(1,107		)	(761		)	(1,719		)	(1,034		)
Adjustment for charge-offs	(373		)	—			(924		)	—
Adjustment for pool excess recovery (a)	—			—			—			(222		)
Increase/(decrease) in accretable yield (b)	3,481			409			6,659			114
Disposals	(214		)	—			(240		)	—
Other	(29		)	118			(181		)	86
Balance, end of period	$	14,474		$	4,045		$	14,474		$	4,045

Certain previously reported amounts have been reclassified to agree with current presentation. 

(a) Represents the removal of accretable difference for the remaining loans in a pool which is now in a recovery state.

(b) Includes changes in the accretable yield due to both transfers from the nonaccretable difference and the impact of changes in the expected timing and amounts of the cash flows.

At June 30, 2018, the ALLL related to PCI loans was $3.0 million compared to $3.2 million at December 31, 2017. A loan loss provision expense related to PCI loans of $1.8 million was recognized during the three months ended June 30, 2018, as compared to a loan loss provision credit of $.1 million recognized during the three months ended June 30, 2017. A loan loss provision expense related to PCI loans of $2.6 million was recognized during the six months ended June 30, 2018, as compared to a loan loss provision credit of $.2 million recognized during the six months ended June 30, 2017.

The following table reflects the outstanding principal balance and carrying amounts of the acquired PCI loans as of June 30, 2018 and December 31, 2017:

	June 30, 2018				December 31, 2017
(Dollars in thousands)	Carrying value		Unpaid balance		Carrying value		Unpaid balance
Commercial, financial and industrial	$	54,143	$	60,727	$	96,598	$	109,280
Commercial real estate	27,042		31,181		36,107		41,488
Consumer real estate	35,674		39,920		38,176		42,568
Credit card and other	2,969		3,381		5,500		6,351
Total	$	119,828	$	135,209	$	176,381	$	199,687

Certain previously reported amounts have been reclassified to agree with current presentation. 

Impaired Loans

The following tables provide information at June 30, 2018 and December 31, 2017, by class related to individually impaired loans and consumer TDRs, regardless of accrual status. Recorded investment is defined as the amount of the investment in a loan, excluding any valuation allowance but including any direct write-down of the investment. For purposes of this disclosure, PCI loans and the TRUPs valuation allowance have been excluded.

	June 30, 2018						December 31, 2017
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
Impaired loans with no related allowance recorded:
Commercial:
General C&I	$	25,924	$	37,325	$	—	$	8,183	$	17,372	$	—
Income CRE	1,748		1,748		—		—		—		—
Residential CRE	504		972		—		—		—		—
Total	$	28,176	$	40,045	$	—	$	8,183	$	17,372	$	—
Consumer:
HELOC (a)	$	8,811	$	17,299	$	—	$	9,258	$	19,193	$	—
R/E installment loans (a)	3,370		3,834		—		4,093		4,663		—
Permanent mortgage (a)	4,195		6,586		—		5,132		7,688		—
Total	$	16,376	$	27,719	$	—	$	18,483	$	31,544	$	—
Impaired loans with related allowance recorded:
Commercial:
General C&I	$	3,692	$	3,692	$	288	$	31,774	$	38,256	$	5,119
TRUPS	2,983		3,700		925		3,067		3,700		925
Income CRE	—		—		—		1,612		1,612		49
Residential CRE	—		—		—		795		1,263		83
Total	$	6,675	$	7,392	$	1,213	$	37,248	$	44,831	$	6,176
Consumer:
HELOC	$	70,739	$	73,717	$	12,641	$	72,469	$	75,207	$	14,382
R/E installment loans	39,415		40,168		7,758		43,075		43,827		8,793
Permanent mortgage	72,666		83,678		10,787		79,662		90,934		12,105
Credit card & other	604		604		305		593		593		311
Total	$	183,424	$	198,167	$	31,491	$	195,799	$	210,561	$	35,591
Total commercial	$	34,851	$	47,437	$	1,213	$	45,431	$	62,203	$	6,176
Total consumer	$	199,800	$	225,886	$	31,491	$	214,282	$	242,105	$	35,591
Total impaired loans	$	234,651	$	273,323	$	32,704	$	259,713	$	304,308	$	41,767

(a) All discharged bankruptcy loans are charged down to an estimate of net realizable value and do not carry any allowance.

	Three Months Ended June 30								Six Months Ended June 30
	2018				2017				2018				2017
(Dollars in thousands)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Impaired loans with no related allowance recorded:
Commercial:
General C&I	$	24,825	$	183	$	9,941	$	—	$	20,389	$	358	$	10,174	$	—
Income CRE	1,665		13		—		—		1,228		25		—		—
Residential CRE	500		—		—		—		374		—		—		—
Total	$	26,990	$	196	$	9,941	$	—	$	21,991	$	383	$	10,174	$	—
Consumer:
HELOC (a)	$	9,034	$	—	$	10,331	$	—	$	9,145	$	—	$	10,692	$	—
R/E installment loans (a)	3,553		—		3,925		—		3,733		—		3,931		—
Permanent mortgage (a)	4,749		—		5,854		—		4,983		—		5,705		—
Total	$	17,336	$	—	$	20,110	$	—	$	17,861	$	—	$	20,328	$	—
Impaired loans with related allowance recorded:
Commercial:
General C&I	$	8,850	$	—	$	28,402	$	189	$	15,870	$	—	$	30,632	$	403
TRUPS	3,005		—		3,160		—		3,026		—		3,178		—
Income CRE	—		—		1,767		14		403		—		1,792		28
Residential CRE	—		—		1,293		5		199		—		1,293		10
Total	$	11,855	$	—	$	34,622	$	208	$	19,498	$	—	$	36,895	$	441
Consumer:
HELOC	$	70,789	$	578	$	78,608	$	577	$	71,222	$	1,155	$	80,841	$	1,141
R/E installment loans	40,280		251		49,373		317		41,195		518		50,637		635
Permanent mortgage	74,227		574		81,475		574		75,976		1,152		83,626		1,189
Credit card & other	653		3		315		3		650		6		301		5
Total	$	185,949	$	1,406	$	209,771	$	1,471	$	189,043	$	2,831	$	215,405	$	2,970
Total commercial	$	38,845	$	196	$	44,563	$	208	$	41,489	$	383	$	47,069	$	441
Total consumer	$	203,285	$	1,406	$	229,881	$	1,471	$	206,904	$	2,831	$	235,733	$	2,970
Total impaired loans	$	242,130	$	1,602	$	274,444	$	1,679	$	248,393	$	3,214	$	282,802	$	3,411

(a) All discharged bankruptcy loans are charged down to an estimate of net realizable value and do not carry any allowance.

Asset Quality Indicators

FHN employs a dual grade commercial risk grading methodology to assign an estimate for the probability of default (“PD”) and the loss given default (“LGD”) for each commercial loan using factors specific to various industry, portfolio, or product segments that result in a rank ordering of risk and the assignment of grades PD 1 to PD 16. This credit grading system is intended to identify and measure the credit quality of the loan portfolio by analyzing the migration of loans between grading categories. It is also integral to the estimation methodology utilized in determining the allowance for loan losses since an allowance is established for pools of commercial loans based on the credit grade assigned. Each PD grade corresponds to an estimated one-year default probability percentage; a PD 1 has the lowest expected default probability, and probabilities increase as grades progress down the scale. PD 1 through PD 12 are “pass” grades. PD grades 13-16 correspond to the regulatory-defined categories of special mention (13), substandard (14), doubtful (15), and loss (16). Pass loan grades are required to be reassessed annually or earlier whenever there has been a material change in the financial condition of the borrower or risk characteristics of the relationship. All commercial loans over $1 million and certain commercial loans over $500,000 that are graded 13 or worse are reassessed on a quarterly basis. Loan grading discipline is regularly reviewed internally by Credit Assurance Services to determine if the process continues to result in accurate loan grading across the portfolio. FHN may utilize availability of guarantors/sponsors to support lending decisions during the credit underwriting process and when determining the assignment of internal loan grades. LGD grades are assigned based on a scale of 1-12 and represent FHN’s expected recovery based on collateral type in the event a loan defaults. See Note 5 – Allowance for Loan Losses for further discussion on the credit grading system.

The following tables provide the balances of commercial loan portfolio classes with associated allowance, disaggregated by PD grade as of June 30, 2018 and December 31, 2017:

	June 30, 2018
(Dollars in thousands)	General C&I		Loans to Mortgage Companies		TRUPS (a)		Income CRE		Residential CRE		Total		Percentage of Total		Allowance for Loan Losses
PD Grade:
1	$	547,654	$	—	$	—	$	2,104	$	—	$	549,758	3	%	$	64
2	840,122		—		—		10,236		41		850,399		4		280
3	633,000		727,078		—		255,090		214		1,615,382		8		255
4	845,405		586,315		—		457,716		—		1,889,436		9		700
5	1,892,574		347,919		63,017		463,421		1,421		2,768,352		13		8,003
6	1,475,963		426,654		90,296		447,840		6,117		2,446,870		12		8,830
7	2,387,509		109,693		65,193		499,585		5,054		3,067,034		15		14,442
8	1,078,583		70,924		4,068		220,208		11,600		1,385,383		7		19,828
9	2,604,602		86,253		45,117		1,382,306		60,385		4,178,663		20		22,349
10	371,017		—		18,536		54,896		3,488		447,937		2		8,782
11	257,439		—		—		40,893		341		298,673		1		7,509
12	300,482		—		—		110,184		6,306		416,972		2		5,802
13	247,731		—		17,621		57,845		9		323,206		2		8,895
14,15,16	209,046		—		—		8,874		800		218,720		1		21,434
Collectively evaluated for impairment	13,691,127		2,354,836		303,848		4,011,198		95,776		20,456,785		99		127,173
Individually evaluated for impairment	29,617		—		2,982		1,748		504		34,851		—		1,213
Purchased credit-impaired loans	56,335		—		—		23,781		3,349		83,465		1		2,280
Total commercial loans	$	13,777,079	$	2,354,836	$	306,830	$	4,036,727	$	99,629	$	20,575,101	100	%	$	130,666

(a) Balances presented net of a $25.5 million valuation allowance. Based on the underlying structure of the notes, the highest possible internal grade was “13” prior to second quarter 2018. In second quarter 2018, this portfolio was re-graded to align with the scorecard grading methodologies which resulted in upgrades to a majority of this portfolio.

	December 31, 2017
(Dollars in thousands)	General C&I		Loans to Mortgage Companies		TRUPS (a)		Income CRE		Residential CRE		Total		Percentage of Total		Allowance for Loan Losses
PD Grade:
1	$	536,244	$	—	$	—	$	2,500	$	—	$	538,744	3	%	$	70
2	877,635		—		—		1,798		69		879,502		4		339
3	582,224		652,982		—		210,073		40		1,445,319		7		272
4	959,581		629,432		—		309,699		—		1,898,712		9		854
5	1,461,632		328,477		—		415,764		2,474		2,208,347		11		7,355
6	1,668,247		335,169		—		456,706		3,179		2,463,301		12		10,495
7	2,257,400		47,720		—		554,590		9,720		2,869,430		14		13,490
8	1,092,994		35,266		—		241,938		6,454		1,376,652		7		21,831
9	2,633,854		70,915		—		1,630,176		61,475		4,396,420		22		9,804
10	373,537		—		—		43,297		4,590		421,424		2		8,808
11	226,382		—		—		31,785		2,936		261,103		1		6,784
12	409,838		—		—		156,717		6,811		573,366		3		5,882
13	202,613		—		303,848		15,707		268		522,436		3		7,265
14,15,16	228,852		—		—		6,587		823		236,262		1		24,400
Collectively evaluated for impairment	13,511,033		2,099,961		303,848		4,077,337		98,839		20,091,018		99		117,649
Individually evaluated for impairment	39,957		—		3,067		1,612		795		45,431		—		6,176
Purchased credit-impaired loans	99,407		—		—		31,615		4,497		135,519		1		2,813
Total commercial loans	$	13,650,397	$	2,099,961	$	306,915	$	4,110,564	$	104,131	$	20,271,968	100	%	$	126,638

(a) Balances presented net of a $25.5 million valuation allowance. Based on the underlying structure of the notes, the highest possible internal grade was “13” prior to second quarter 2018. In second quarter 2018, this portfolio was re-graded to align with the scorecard grading methodologies which resulted in upgrades to a majority of this portfolio.

The consumer portfolio is comprised primarily of smaller-balance loans which are very similar in nature in that most are standard products and are backed by residential real estate. Because of the similarities of consumer loan-types, FHN is able to utilize the Fair Isaac Corporation (“FICO”) score, among other attributes, to assess the credit quality of consumer borrowers. FICO scores are refreshed on a quarterly basis in an attempt to reflect the recent risk profile of the borrowers. Accruing delinquency amounts are indicators of asset quality within the credit card and other consumer portfolio.

The following table reflects the percentage of balances outstanding by average, refreshed FICO scores for the HELOC, real estate installment, and permanent mortgage classes of loans as of June 30, 2018 and December 31, 2017:

	June 30, 2018						December 31, 2017
	HELOC		R/E Installment Loans		Permanent Mortgage		HELOC		R/E Installment Loans		Permanent Mortgage
FICO score 740 or greater	61.4	%	74.8	%	50.4	%	60.0	%	73.1	%	46.4	%
FICO score 720-739	8.7		7.7		10.2		8.7		8.0		12.8
FICO score 700-719	7.9		6.1		9.2		8.3		6.4		9.2
FICO score 660-699	10.7		6.7		13.9		11.1		7.2		14.8
FICO score 620-659	4.8		2.6		6.8		4.9		2.8		7.3
FICO score less than 620 (a)	6.5		2.1		9.5		7.0		2.5		9.5
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

(a) For this group, a majority of the loan balances had FICO scores at the time of the origination that exceeded 620 but have since deteriorated as the loans have seasoned.

Nonaccrual and Past Due Loans

The following table reflects accruing and non-accruing loans by class on June 30, 2018:

	Accruing								Non-Accruing
(Dollars in thousands)	Current		30-89 Days Past Due		90+ Days Past Due		Total Accruing		Current		30-89 Days Past Due		90+ Days Past Due		Total Non- Accruing		Total Loans
Commercial (C&I):
General C&I	$	13,696,352	$	7,518	$	639	$	13,704,509	$	9,358	$	510	$	6,367	$	16,235	$	13,720,744
Loans to mortgage companies	2,354,836		—		—		2,354,836		—		—		—		—		2,354,836
TRUPS (a)	303,848		—		—		303,848		—		—		2,982		2,982		306,830
Purchased credit-impaired loans	41,046		850		14,439		56,335		—		—		—		—		56,335
Total commercial (C&I)	16,396,082		8,368		15,078		16,419,528		9,358		510		9,349		19,217		16,438,745
Commercial real estate:
Income CRE	4,010,460		1,436		—		4,011,896		43		96		911		1,050		4,012,946
Residential CRE	95,887		—		—		95,887		—		—		393		393		96,280
Purchased credit-impaired loans	25,926		968		236		27,130		—		—		—		—		27,130
Total commercial real estate	4,132,273		2,404		236		4,134,913		43		96		1,304		1,443		4,136,356
Consumer real estate:
HELOC	1,557,368		13,302		7,669		1,578,339		46,823		4,157		8,852		59,832		1,638,171
R/E installment loans	4,511,603		10,938		6,014		4,528,555		14,766		1,721		3,083		19,570		4,548,125
Purchased credit-impaired loans	31,886		3,819		610		36,315		—		—		—		—		36,315
Total consumer real estate	6,100,857		28,059		14,293		6,143,209		61,589		5,878		11,935		79,402		6,222,611
Permanent mortgage	323,736		2,391		4,419		330,546		13,143		259		10,968		24,370		354,916
Credit card & other:
Credit card	189,849		1,097		1,055		192,001		—		—		—		—		192,001
Other	347,702		5,534		460		353,696		100		51		209		360		354,056
Purchased credit-impaired loans	1,310		1,366		379		3,055		—		—		—		—		3,055
Total credit card & other	538,861		7,997		1,894		548,752		100		51		209		360		549,112
Total loans, net of unearned income	$	27,491,809	$	49,219	$	35,920	$	27,576,948	$	84,233	$	6,794	$	33,765	$	124,792	$	27,701,740

(a) TRUPS is presented net of the valuation allowance of $25.5 million.

The following table reflects accruing and non-accruing loans by class on December 31, 2017:

	Accruing								Non-Accruing
(Dollars in thousands)	Current		30-89 Days Past Due		90+ Days Past Due		Total Accruing		Current		30-89 Days Past Due		90+ Days Past Due		Total Non- Accruing		Total Loans
Commercial (C&I):
General C&I	$	13,514,752	$	8,057	$	95	$	13,522,904	$	1,761	$	7,019	$	19,306	$	28,086	$	13,550,990
Loans to mortgage companies	2,099,961		—		—		2,099,961		—		—		—		—		2,099,961
TRUPS (a)	303,848		—		—		303,848		—		—		3,067		3,067		306,915
Purchased credit-impaired loans	77,843		2,207		19,357		99,407		—		—		—		—		99,407
Total commercial (C&I)	15,996,404		10,264		19,452		16,026,120		1,761		7,019		22,373		31,153		16,057,273
Commercial real estate:
Income CRE	4,077,106		1,240		—		4,078,346		56		—		546		602		4,078,948
Residential CRE	98,844		—		—		98,844		—		—		791		791		99,635
Purchased credit-impaired loans	31,173		2,686		2,253		36,112		—		—		—		—		36,112
Total commercial real estate	4,207,123		3,926		2,253		4,213,302		56		—		1,337		1,393		4,214,695
Consumer real estate:
HELOC	1,743,776		17,744		9,702		1,771,222		40,508		3,626		8,354		52,488		1,823,710
R/E installment loans	4,475,669		7,274		3,573		4,486,516		14,439		1,957		2,603		18,999		4,505,515
Purchased credit-impaired loans	35,356		2,016		1,158		38,530		—		—		—		—		38,530
Total consumer real estate	6,254,801		27,034		14,433		6,296,268		54,947		5,583		10,957		71,487		6,367,755
Permanent mortgage	365,527		3,930		3,460		372,917		13,245		1,052		12,093		26,390		399,307
Credit card & other:
Credit card	193,940		1,371		1,053		196,364		—		—		—		—		196,364
Other	415,070		2,666		103		417,839		31		—		165		196		418,035
Purchased credit-impaired loans	2,993		1,693		814		5,500		—		—		—		—		5,500
Total credit card & other	612,003		5,730		1,970		619,703		31		—		165		196		619,899
Total loans, net of unearned income	$	27,435,858	$	50,884	$	41,568	$	27,528,310	$	70,040	$	13,654	$	46,925	$	130,619	$	27,658,929

(a) TRUPS is presented net of the valuation allowance of $25.5 million.

Troubled Debt Restructurings

As part of FHN’s ongoing risk management practices, FHN attempts to work with borrowers when necessary to extend or modify loan terms to better align with their current ability to repay. Extensions and modifications to loans are made in accordance with internal policies and guidelines which conform to regulatory guidance. Each occurrence is unique to the borrower and is evaluated separately.

A modification is classified as a TDR if the borrower is experiencing financial difficulty and it is determined that FHN has granted a concession to the borrower. FHN may determine that a borrower is experiencing financial difficulty if the borrower is currently in default on any of its debt, or if it is probable that a borrower may default in the foreseeable future. Many aspects of a borrower’s financial situation are assessed when determining whether they are experiencing financial difficulty. Concessions could include extension of the maturity date, reductions of the interest rate (which may make the rate lower than current market for a new loan with similar risk), reduction or forgiveness of accrued interest, or principal forgiveness. The assessments of whether a borrower is experiencing (or is likely to experience) financial difficulty, and whether a concession has been granted, are subjective in nature and management’s judgment is required when determining whether a modification is classified as a TDR.

For all classes within the commercial portfolio segment, TDRs are typically modified through forbearance agreements (generally 6 to 12 months). Forbearance agreements could include reduced interest rates, reduced payments, release of guarantor, or entering into short sale agreements. FHN’s proprietary modification programs for consumer loans are generally structured using parameters of U.S. government-sponsored programs such as the former Home Affordable Modification Program (“HAMP”). Within the HELOC and R/E installment loans classes of the consumer portfolio segment, TDRs are typically modified by reducing the interest rate (in increments of 25 basis points to a minimum of 1 percent for up to 5 years) and a possible maturity date extension to reach an affordable housing debt-to-income ratio. After 5 years, the interest rate generally returns to the original interest rate prior to modification; for certain modifications, the modified interest rate increases 2 percent per year until the original interest rate prior to modification is achieved. Permanent mortgage TDRs are typically modified by reducing the interest rate (in increments of 25 basis points to a minimum of 2 percent for up to 5 years) and a possible maturity date extension to reach an affordable housing debt-to-income ratio. After 5 years, the interest rate steps up 1 percent every year until it reaches the Federal Home Loan Mortgage Corporation Weekly Survey Rate cap. Contractual maturities may be extended to 40 years on permanent mortgages and to 30 years for consumer real estate loans. Within the credit card class of the consumer portfolio segment, TDRs are typically modified through either a short-term credit card hardship program or a longer-term credit card workout program. In the credit card hardship program, borrowers may be granted rate and payment reductions for 6 months to 1 year. In the credit card workout program, customers are granted a rate reduction to 0 percent and term extensions for up to 5 years to pay off the remaining balance.

Despite the absence of a loan modification, the discharge of personal liability through bankruptcy proceedings is considered a concession. As a result, FHN classifies all non-reaffirmed residential real estate loans discharged in Chapter 7 bankruptcy as nonaccruing TDRs.

On June 30, 2018 and December 31, 2017, FHN had $217.6 million and $234.4 million of portfolio loans classified as TDRs, respectively. For TDRs in the loan portfolio, FHN had loan loss reserves of $31.5 million, or 14 percent as of June 30, 2018, and $37.3 million, or 16 percent as of December 31, 2017. Additionally, $60.5 million and $63.2 million of loans held-for-sale as of June 30, 2018 and December 31, 2017, respectively, were classified as TDRs.

The following tables reflect portfolio loans that were classified as TDRs during the three and six months ended June 30, 2018 and 2017:

	Three Months Ended June 30, 2018					Six Months Ended June 30, 2018
(Dollars in thousands)	Number	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial (C&I):
General C&I	3	$	544	$	537	8	$	2,048	$	1,751
Total commercial (C&I)	3	544		537		8	2,048		1,751
Commercial real estate:
Income CRE	3	201		195		3	201		195
Total commercial real estate	3	201		195		3	201		195
Consumer real estate:
HELOC	34	3,824		3,806		64	6,584		6,539
R/E installment loans	10	772		770		15	1,383		1,382
Total consumer real estate	44	4,596		4,576		79	7,967		7,921
Permanent mortgage	4	434		440		5	709		713
Credit card & other	27	95		94		68	305		291
Total troubled debt restructurings	81	$	5,870	$	5,842	163	$	11,230	$	10,871
	Three Months Ended June 30, 2017					Six Months Ended June 30, 2017
(Dollars in thousands)	Number	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial (C&I):
General C&I	1	$	815	$	799	2	$	842	$	836
Total commercial (C&I)	1	815		799		2	842		836
Consumer real estate:
HELOC	27	2,293		2,270		62	4,882		4,743
R/E installment loans	14	799		782		28	1,756		1,684
Total consumer real estate	41	3,092		3,052		90	6,638		6,427
Permanent mortgage	4	699		693		9	2,009		1,996
Credit card & other	23	144		140		29	165		160
Total troubled debt restructurings	69	$	4,750	$	4,684	130	$	9,654	$	9,419

The following tables present TDRs which re-defaulted during the three and six months ended June 30, 2018 and 2017, and as to which the modification occurred 12 months or less prior to the re-default. For purposes of this disclosure, FHN generally defines payment default as 30 or more days past due.

	Three Months Ended June 30, 2018			Six Months Ended June 30, 2018
(Dollars in thousands)	Number	Recorded Investment		Number	Recorded Investment
Commercial (C&I):
General C&I	1	$	258	1	$	258
Total commercial (C&I)	1	258		1	258
Consumer real estate:
HELOC	2	95		4	164
R/E installment loans	1	25		1	25
Total consumer real estate	3	120		5	189
Permanent mortgage	1	293		2	405
Credit card & other	12	75		26	156
Total troubled debt restructurings	17	$	746	34	$	1,008
	Three Months Ended June 30, 2017			Six Months Ended June 30, 2017
(Dollars in thousands)	Number	Recorded Investment		Number	Recorded Investment
Commercial (C&I):
General C&I	2	$	2,228	3	$	8,007
Total commercial (C&I)	2	2,228		3	8,007
Consumer real estate:
HELOC	—	—		4	685
Total consumer real estate	—	—		4	685
Permanent mortgage	1	538		1	538
Credit card & other	1	11		3	18
Total troubled debt restructurings	4	$	2,777	11	$	9,248