Loans and Allowance for Credit Losses

Loans, Net of Unearned Income

Loans, net of unearned income are summarized as follows:



	June 30, 2016			December 31, 2015
	(in thousands)
Real-estate - commercial mortgage	$	5,635,347		$	5,462,330
Commercial - industrial, financial and agricultural	4,099,177			4,088,962
Real-estate - home equity	1,647,319			1,684,439
Real-estate - residential mortgage	1,447,292			1,376,160
Real-estate - construction	853,699			799,988
Consumer	278,071			268,588
Leasing and other	208,602			170,914
Overdrafts	3,214			2,737
Loans, gross of unearned income	14,172,721			13,854,118
Unearned income	(17,562		)	(15,516		)
Loans, net of unearned income	$	14,155,159		$	13,838,602

Allowance for Credit Losses

The allowance for credit losses consists of the allowance for loan losses and the reserve for unfunded lending commitments. The allowance for loan losses represents management’s estimate of incurred losses in the loan portfolio as of the balance sheet date and is recorded as a reduction to loans. The reserve for unfunded lending commitments represents management’s estimate of incurred losses in its unfunded loan commitments and is recorded in other liabilities on the consolidated balance sheets. The allowance for credit losses is increased by charges to expense, through the provision for credit losses, and decreased by charge-offs, net of recoveries.

The Corporation’s allowance for credit losses includes: (1) specific allowances allocated to loans evaluated for impairment under the FASB's ASC Section 310-10-35; and (2) allowances calculated for pools of loans measured for impairment under FASB ASC Subtopic 450-20.

The Corporation segments its loan portfolio by general loan type, or "portfolio segments," as presented in the table under the heading, "Loans, Net of Unearned Income," above. Certain portfolio segments are further disaggregated and evaluated collectively for impairment based on "class segments," which are largely based on the type of collateral underlying each loan. Commercial loans include loans secured by collateral and unsecured loans. Construction loan class segments include loans secured by commercial real estate, loans to commercial borrowers secured by residential real estate and loans to individuals secured by residential real estate. Consumer loan class segments include direct consumer installment loans and indirect automobile loans.

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



	June 30, 2016		December 31, 2015
	(in thousands)
Allowance for loan losses	$	162,546	$	169,054
Reserve for unfunded lending commitments	2,562		2,358
Allowance for credit losses	$	165,108	$	171,412

The following table presents the activity in the allowance for credit losses:



	Three months ended June 30						Six months ended June 30
	2016			2015			2016			2015
	(in thousands)
Balance at beginning of period	$	166,065		$	179,658		$	171,412		$	185,931
Loans charged off	(10,746		)	(15,372		)	(21,901		)	(21,136		)
Recoveries of loans previously charged off	7,278			2,967			11,556			6,158
Net loans charged off	(3,468		)	(12,405		)	(10,345		)	(14,978		)
Provision for credit losses	2,511			2,200			4,041			(1,500		)
Balance at end of period	$	165,108		$	169,453		$	165,108		$	169,453

The following table presents the activity in the allowance for loan losses by portfolio segment:



	Real Estate - Commercial Mortgage			Commercial - Industrial, Financial and Agricultural			Real Estate - Home Equity			Real Estate - Residential Mortgage			Real Estate - Construction			Consumer			Leasing, other and overdrafts			Unallocated			Total
	(in thousands)
Three months ended June 30, 2016
Balance at March 31, 2016	$	48,311		$	54,333		$	22,524		$	19,928		$	6,282		$	2,324		$	2,974		$	7,165		$	163,841
Loans charged off	(1,474		)	(4,625		)	(1,045		)	(340		)	(742		)	(569		)	(1,951		)	—			(10,746		)
Recoveries of loans previously charged off	1,367			2,931			350			420			1,563			539			108			—			7,278
Net loans charged off	(107		)	(1,694		)	(695		)	80			821			(30		)	(1,843		)	—			(3,468		)
Provision for loan losses (1)	(4,464		)	(884		)	4,341			1,218			(1,331		)	690			1,387			1,216			2,173
Balance at June 30, 2016	$	43,740		$	51,755		$	26,170		$	21,226		$	5,772		$	2,984		$	2,518		$	8,381		$	162,546
Three months ended June 30, 2015
Balance at March 31, 2015	$	52,860		$	57,150		$	23,481		$	23,235		$	8,487		$	2,527		$	1,653		$	8,308		$	177,701
Loans charged off	(1,642		)	(11,166		)	(870		)	(783		)	(87		)	(357		)	(467		)	—			(15,372		)
Recoveries of loans previously charged off	451			1,471			189			187			231			368			70			—			2,967
Net loans charged off	(1,191		)	(9,695		)	(681		)	(596		)	144			11			(397		)	—			(12,405		)
Provision for loan losses (1)	(989		)	1,715			(294		)	148			(882		)	70			359			2,062			2,189
Balance at June 30, 2015	$	50,680		$	49,170		$	22,506		$	22,787		$	7,749		$	2,608		$	1,615		$	10,370		$	167,485
Six months ended June 30, 2016
Balance at December 31, 2015	$	47,866		$	57,098		$	22,405		$	21,375		$	6,529		$	2,585		$	2,468		$	8,728		$	169,054
Loans charged off	(2,056		)	(10,813		)	(2,586		)	(1,408		)	(1,068		)	(1,576		)	(2,394		)	—			(21,901		)
Recoveries of loans previously charged off	2,192			5,250			688			556			1,946			735			189			—			11,556
Net loans charged off	136			(5,563		)	(1,898		)	(852		)	878			(841		)	(2,205		)	—			(10,345		)
Provision for loan losses (1)	(4,262		)	220			5,663			703			(1,635		)	1,240			2,255			(347		)	3,837
Balance at June 30, 2016	$	43,740		$	51,755		$	26,170		$	21,226		$	5,772		$	2,984		$	2,518		$	8,381		$	162,546
Six months ended June 30, 2015
Balance at December 31, 2014	$	53,493		$	51,378		$	28,271		$	29,072		$	9,756		$	3,015		$	1,799		$	7,360		$	184,144
Loans charged off	(2,351		)	(13,029		)	(1,638		)	(2,064		)	(87		)	(1,137		)	(830		)	—			(21,136		)
Recoveries of loans previously charged off	887			2,257			440			346			1,378			609			241			—			6,158
Net loans charged off	(1,464		)	(10,772		)	(1,198		)	(1,718		)	1,291			(528		)	(589		)	—			(14,978		)
Provision for loan losses (1)	(1,349		)	8,564			(4,567		)	(4,567		)	(3,298		)	121			405			3,010			(1,681		)
Balance at June 30, 2015	$	50,680		$	49,170		$	22,506		$	22,787		$	7,749		$	2,608		$	1,615		$	10,370		$	167,485

(1)

The provision for loan losses excluded a $338,000 and $204,000 increase, respectively, in the reserve for unfunded lending commitments for the three and six months ended June 30, 2016 and an $11,000 and $181,000 increase, respectively, in the reserve for unfunded lending commitments for the three and six months ended June 30, 2015. The total provision for credit losses, comprised of allocations for both funded and unfunded loans, was $2.5 million and $4.0 million for the three and six months ended June 30, 2016, respectively, and $2.2 million and a negative $1.5 million for the three and six months ended June 30, 2015.

The following table presents loans, net of unearned income and their related allowance for loan losses, by portfolio segment:



	Real Estate - Commercial Mortgage		Commercial - Industrial, Financial and Agricultural		Real Estate - Home Equity		Real Estate - Residential Mortgage		Real Estate - Construction		Consumer		Leasing, other and overdrafts		Unallocated (1)		Total
	(in thousands)
Allowance for loan losses at June 30, 2016:
Measured for impairment under FASB ASC Subtopic 450-20	$	32,861	$	40,945	$	17,089	$	9,044	$	4,004	$	2,971	$	2,518	$	8,381	$	117,813
Evaluated for impairment under FASB ASC Section 310-10-35	10,879		10,810		9,081		12,182		1,768		13		—		N/A		44,733
	$	43,740	$	51,755	$	26,170	$	21,226	$	5,772	$	2,984	$	2,518	$	8,381	$	162,546

Loans, net of unearned income at June 30, 2016:
Measured for impairment under FASB ASC Subtopic 450-20	$	5,582,027	$	4,057,883	$	1,629,443	$	1,399,399	$	841,193	$	278,053	$	194,254	N/A		$	13,982,252
Evaluated for impairment under FASB ASC Section 310-10-35	53,320		41,294		17,876		47,893		12,506		18		—		N/A		172,907
	$	5,635,347	$	4,099,177	$	1,647,319	$	1,447,292	$	853,699	$	278,071	$	194,254	N/A		$	14,155,159

Allowance for loan losses at June 30, 2015:
Measured for impairment under FASB ASC Subtopic 450-20	$	37,228	$	38,090	$	15,838	$	8,763	$	5,430	$	2,588	$	1,615	$	10,370	$	119,922
Evaluated for impairment under FASB ASC Section 310-10-35	13,452		11,080		6,668		14,024		2,319		20		—		N/A		47,563
	$	50,680	$	49,170	$	22,506	$	22,787	$	7,749	$	2,608	$	1,615	$	10,370	$	167,485

Loans, net of unearned income at June 30, 2015:
Measured for impairment under FASB ASC Subtopic 450-20	$	5,172,333	$	3,764,999	$	1,676,410	$	1,315,908	$	712,975	$	272,463	$	136,521	N/A		$	13,051,609
Evaluated for impairment under FASB ASC Section 310-10-35	65,467		41,700		13,278		53,195		18,950		31		—		N/A		192,621
	$	5,237,800	$	3,806,699	$	1,689,688	$	1,369,103	$	731,925	$	272,494	$	136,521	N/A		$	13,244,230


(1)	The unallocated allowance, which was approximately 5% and 6% of the total allowance for credit losses, respectively, as of June 30, 2016 and 2015, was, in the opinion of management, reasonable and appropriate given that the estimates used in the allocation process are inherently imprecise.

N/A - Not applicable.

Impaired Loans

A loan is considered to be impaired if it is probable that all amounts will not be collected according to the contractual terms of the loan agreement. Impaired loans consist of all loans on non-accrual status and accruing troubled debt restructurings ("TDRs"). An allowance for loan losses is established for an impaired loan if its carrying value exceeds its estimated fair value. Impaired loans to borrowers with total outstanding commitments greater than or equal to $1.0 million are evaluated individually for impairment. Impaired loans to borrowers with total outstanding commitments less than $1.0 million are pooled and measured for impairment collectively.

Based on an evaluation of all relevant credit quality factors, the Corporation recorded a $2.5 million provision for credit losses during the three months ended June 30, 2016, compared to a $2.2 million provision for credit losses for the same period in 2015.

All loans individually evaluated for impairment under FASB ASC Section 310-10-35 are measured for losses on a quarterly basis.

As of June 30, 2016 and December 31, 2015, substantially all of the Corporation’s individually evaluated impaired loans with total outstanding balances greater than or equal to $1.0 million were measured based on the estimated fair value of each loan’s collateral. Collateral could be in the form of real estate, in the case of impaired 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 property.

As of June 30, 2016 and 2015, approximately 89% and 72%, respectively, of impaired loans with principal balances greater than or equal to $1.0 million, whose primary collateral is real estate, were measured at estimated fair value using state certified third-party appraisals that had been updated in the preceding 12 months.

When updated appraisals are not obtained for loans evaluated for impairment under FASB ASC Section 310-10-35 that are secured by real estate, fair values are estimated based on the original appraisal values, as long as the original appraisal indicated an acceptable loan-to-value position and, in the opinion of the Corporation's internal credit administration staff, there has not been a significant deterioration in the collateral value since the original appraisal was performed. Original appraisals are typically used only when the estimated collateral value, as adjusted for the age of the appraisal, results in a current loan-to-value ratio that is lower than the Corporation's loan-to-value requirements for new loans, generally less than 70%.

The following table presents total impaired loans by class segment:



	June 30, 2016						December 31, 2015
	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	$	25,452	$	22,501	$	—	$	27,872	$	22,596	$	—
Commercial - secured	21,458		18,137		—		18,012		13,702		—
Real estate - residential mortgage	6,353		6,171		—		4,790		4,790		—
Construction - commercial residential	7,743		6,543		—		9,916		8,865		—
	61,006		53,352				60,590		49,953
With a related allowance recorded:
Real estate - commercial mortgage	41,420		30,819		10,879		45,189		35,698		12,471
Commercial - secured	27,349		22,183		10,230		39,659		33,629		14,085
Commercial - unsecured	1,182		974		580		971		821		498
Real estate - home equity	22,944		17,876		9,081		20,347		15,766		7,993
Real estate - residential mortgage	49,976		41,722		12,182		55,242		45,635		13,422
Construction - commercial residential	8,610		5,043		1,447		9,949		6,290		2,110
Construction - commercial	731		504		166		820		638		217
Construction - other	416		416		155		331		193		68
Consumer - direct	18		18		13		19		19		14
Consumer - indirect	—		—		—		14		14		8
Leasing, other and overdrafts	—		—		—		1,658		1,425		704
	152,646		119,555		44,733		174,199		140,128		51,590
Total	$	213,652	$	172,907	$	44,733	$	234,789	$	190,081	$	51,590

As of June 30, 2016 and December 31, 2015, there were $53.4 million and $50.0 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 they were previously 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:



	Three months ended June 30								Six months ended June 30
	2016				2015				2016				2015
	Average Recorded Investment		Interest Income (1)		Average Recorded Investment		Interest Income (1)		Average Recorded Investment		Interest Income (1)		Average Recorded Investment		Interest Income (1)
	(in thousands)
With no related allowance recorded:
Real estate - commercial mortgage	$	22,762	$	72	$	27,410	$	87	$	22,707	$	141	$	26,018	178
Commercial - secured	15,182		20		16,163		24		14,688		36		15,636		45
Real estate - residential mortgage	6,191		33		5,541		32		5,724		63		5,318		60
Construction - commercial residential	6,421		16		12,171		40		7,236		35		13,048		95
Construction - commercial	—		—		925		—		—		—		1,144		—
	50,556		141		62,210		183		50,355		275		61,164		378
With a related allowance recorded:
Real estate - commercial mortgage	33,042		104		40,204		126		33,927		212		40,143		259
Commercial - secured	25,919		33		25,902		38		28,489		71		23,713		74
Commercial - unsecured	929		1		2,082		2		893		2		1,751		3
Real estate - home equity	17,950		70		13,016		33		17,222		127		13,163		64
Real estate - residential mortgage	41,928		226		47,020		270		43,164		461		46,839		543
Construction - commercial residential	5,566		14		6,031		21		5,807		29		6,655		49
Construction - commercial	548		—		960		—		578		—		981		—
Construction - other	513		—		281		—		406		—		281		—
Consumer - direct	10		—		17		—		16		—		18		—
Consumer - indirect	15		—		17		—		11		—		17		—
Leasing, other and overdrafts	711		—		—		—		949		—		—		—
	127,131		448		135,530		490		131,462		902		133,561		992
Total	$	177,687	$	589	$	197,740	$	673	$	181,817	$	1,177	$	194,725	1,370


(1)	All impaired loans, excluding accruing TDRs, were non-accrual loans. Interest income recognized for the three and six months ended June 30, 2016 and 2015 represents amounts earned on accruing TDRs.

Credit Quality Indicators and Non-performing Assets

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:



	Pass						Special Mention						Substandard or Lower						Total
	June 30, 2016			December 31, 2015			June 30, 2016			December 31, 2015			June 30, 2016			December 31, 2015			June 30, 2016			December 31, 2015
	(dollars in thousands)
Real estate - commercial mortgage	$	5,371,366		$	5,204,263		$	141,417		$	102,625		$	122,564		$	155,442		$	5,635,347		$	5,462,330
Commercial - secured	3,718,231			3,696,692			95,330			92,711			130,180			136,710			3,943,741			3,926,113
Commercial - unsecured	149,548			156,742			2,467			2,761			3,421			3,346			155,436			162,849
Total commercial - industrial, financial and agricultural	3,867,779			3,853,434			97,797			95,472			133,601			140,056			4,099,177			4,088,962
Construction - commercial residential	151,817			140,337			17,012			17,154			14,838			21,812			183,667			179,303
Construction - commercial	596,971			552,710			2,548			3,684			4,594			3,597			604,113			559,991
Total construction (excluding Construction - other)	748,788			693,047			19,560			20,838			19,432			25,409			787,780			739,294
	$	9,987,933		$	9,750,744		$	258,774		$	218,935		$	275,597		$	320,907		$	10,522,304		$	10,290,586
% of Total	94.9		%	94.8		%	2.5		%	2.1		%	2.6		%	3.1		%	100.0		%	100.0		%

The following is a summary of the Corporation's internal risk rating categories:


•	Pass: These loans do not currently pose undue credit risk and can range from the highest to average quality, depending on the degree of potential risk.


•	Special Mention: These loans constitute an undue and unwarranted credit risk, but not to a point of justifying a classification of substandard. Loans in this category are currently acceptable, but are nevertheless potentially weak.


•	Substandard or Lower: These loans are inadequately protected by current sound worth and paying capacity of the borrower. There exists a well-defined weakness or weaknesses that jeopardize the normal repayment of the debt.

The risk rating process allows management to identify credits that potentially carry more risk in a timely manner and to allocate resources to managing troubled accounts. The Corporation believes that internal risk ratings are the most relevant credit quality indicator for the class segments presented above. The migration of loans through the various internal risk rating categories is a significant component of the allowance for credit loss methodology, which bases the probability of default on this migration. Assigning risk ratings involves judgment. The Corporation's loan review officers provide an independent assessment of risk rating accuracy. Ratings may be changed based on the ongoing monitoring procedures performed by loan officers or credit administration staff, or if specific loan review activities identify a deterioration or an improvement in the loan.

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 lease receivables. 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 allowance for credit losses methodology for those loans, which bases the probability of default on this migration.

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



	Performing						Delinquent (1)						Non-performing (2)						Total
	June 30, 2016			December 31, 2015			June 30, 2016			December 31, 2015			June 30, 2016			December 31, 2015			June 30, 2016			December 31, 2015
	(dollars in thousands)
Real estate - home equity	$	1,623,095		$	1,660,773		$	10,051		$	8,983		$	14,173		$	14,683		$	1,647,319		$	1,684,439
Real estate - residential mortgage	1,408,244			1,329,371			14,018			18,305			25,030			28,484			1,447,292			1,376,160
Construction - other	63,404			59,997			1,416			88			1,099			609			65,919			60,694
Consumer - direct	92,906			94,262			1,860			2,254			1,695			2,203			96,461			98,719
Consumer - indirect	179,293			166,823			2,124			2,809			193			237			181,610			169,869
Total consumer	272,199			261,085			3,984			5,063			1,888			2,440			278,071			268,588
Leasing, other and overdrafts	193,233			155,870			863			759			158			1,506			194,254			158,135
	$	3,560,175		$	3,467,096		$	30,332		$	33,198		$	42,348		$	47,722		$	3,632,855		$	3,548,016
% of Total	98.0		%	97.7		%	0.8		%	1.0		%	1.2		%	1.3		%	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.

The following table presents non-performing assets:



	June 30, 2016		December 31, 2015
	(in thousands)
Non-accrual loans	$	111,742	$	129,523
Loans 90 days or more past due and still accruing	15,992		15,291
Total non-performing loans	127,734		144,814
Other real estate owned (OREO)	11,918		11,099
Total non-performing assets	$	139,652	$	155,913

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



	June 30, 2016
	30-59 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	$	7,813	$	2,288	$	192	$	35,512	$	35,704	$	45,805	$	5,589,542	$	5,635,347
Commercial - secured	4,532		7,207		2,997		34,675		37,672		49,411		3,894,330		3,943,741
Commercial - unsecured	372		43		367		863		1,230		1,645		153,791		155,436
Total commercial - industrial, financial and agricultural	4,904		7,250		3,364		35,538		38,902		51,056		4,048,121		4,099,177
Real estate - home equity	7,600		2,451		3,470		10,703		14,173		24,224		1,623,095		1,647,319
Real estate - residential mortgage	10,356		3,662		4,461		20,569		25,030		39,048		1,408,244		1,447,292
Construction - commercial residential	—		541		—		8,499		8,499		9,040		174,627		183,667
Construction - commercial	1,482		1,134		1,777		504		2,281		4,897		599,216		604,113
Construction - other	1,416		—		682		417		1,099		2,515		63,404		65,919
Total real estate - construction	2,898		1,675		2,459		9,420		11,879		16,452		837,247		853,699
Consumer - direct	1,169		691		1,695		—		1,695		3,555		92,906		96,461
Consumer - indirect	1,734		390		193		—		193		2,317		179,293		181,610
Total consumer	2,903		1,081		1,888		—		1,888		5,872		272,199		278,071
Leasing, other and overdrafts	400		463		158		—		158		1,021		193,233		194,254
Total	$	36,874	$	18,870	$	15,992	$	111,742	$	127,734	$	183,478	$	13,971,681	$	14,155,159



	December 31, 2015
	30-59 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	$	6,469	$	1,312	$	439	$	40,731	$	41,170	$	48,951	$	5,413,379	$	5,462,330
Commercial - secured	5,654		2,615		1,853		41,498		43,351		51,620		3,874,493		3,926,113
Commercial - unsecured	510		83		19		701		720		1,313		161,536		162,849
Total commercial - industrial, financial and agricultural	6,164		2,698		1,872		42,199		44,071		52,933		4,036,029		4,088,962
Real estate - home equity	6,438		2,545		3,473		11,210		14,683		23,666		1,660,773		1,684,439
Real estate - residential mortgage	15,141		3,164		6,570		21,914		28,484		46,789		1,329,371		1,376,160
Construction - commercial residential	1,366		494		—		11,213		11,213		13,073		166,230		179,303
Construction - commercial	50		176		—		638		638		864		559,127		559,991
Construction - other	88		—		416		193		609		697		59,997		60,694
Total real estate - construction	1,504		670		416		12,044		12,460		14,634		785,354		799,988
Consumer - direct	1,687		567		2,203		—		2,203		4,457		94,262		98,719
Consumer - indirect	2,308		501		237		—		237		3,046		166,823		169,869
Total consumer	3,995		1,068		2,440		—		2,440		7,503		261,085		268,588
Leasing, other and overdrafts	483		276		81		1,425		1,506		2,265		155,870		158,135
Total	$	40,194	$	11,733	$	15,291	$	129,523	$	144,814	$	196,741	$	13,641,861	$	13,838,602

The following table presents TDRs, by class segment:



	June 30, 2016		December 31, 2015
	(in thousands)
Real-estate - residential mortgage	$	27,324	$	28,511
Real-estate - commercial mortgage	17,808		17,563
Commercial - secured	5,645		5,833
Construction - commercial residential	3,086		3,942
Real estate - home equity	7,173		4,556
Commercial - unsecured	111		120
Consumer - indirect	—		14
Consumer - direct	18		19
Total accruing TDRs	61,165		60,558
Non-accrual TDRs ⁽¹⁾	24,887		31,035
Total TDRs	$	86,052	$	91,593


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

As of June 30, 2016 and December 31, 2015, there were $3.8 million and $5.3 million, respectively, of commitments to lend additional funds to borrowers whose loans were modified under TDRs.

The following table presents TDRs, by class segment as of June 30, 2016 and 2015, that were modified during the three and six months ended June 30, 2016 and 2015:



		Three months ended June 30						Six months ended June 30
		2016			2015			2016			2015
		Number of Loans	Post-Modification Recorded Investment		Number of Loans	Post-Modification Recorded Investment		Number of Loans	Post-Modification Recorded Investment		Number of Loans	Post-Modification Recorded Investment
		(dollars in thousands)
Commercial – secured:
	Extend maturity without rate concession	4	$	1,146	3	$	1,047	6	$	1,976	11	$	7,823
Commercial – unsecured:
	Extend maturity without rate concession	—	—		—	—		2	103		1	42
Real estate - commercial mortgage:
	Extend maturity without rate concession	—	—		1	132		—	—		4	2,627
Real estate - home equity:
	Extend maturity with rate concession	—	—		—	—		1	44		—	—
	Bankruptcy	23	969		15	739		60	3,667		25	1,231
Real estate – residential mortgage:
	Extend maturity with rate concession	—	—		—	—		—	—		1	104
	Extend maturity without rate concession	2	315		—	—		2	315		2	225
	Bankruptcy	1	373		4	456		1	373		5	737
Construction - commercial residential:
	Extend maturity without rate concession	—	—		—	—		—	—		1	889
Consumer - direct:
	Bankruptcy	—	—		—	—		1	2		—	—
Consumer - indirect:
	Bankruptcy	—	—		—	—		—	—		1	13

Total		30	$	2,803	23	$	2,374	73	$	6,480	51	$	13,691

The following table presents TDRs, by class segment, as of June 30, 2016 and 2015, that were modified in the previous 12 months and had a post-modification payment default during the six months ended June 30, 2016 and 2015. The Corporation defines a payment default as a single missed payment.



	2016			2015
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
	(dollars in thousands)
Real estate - home equity	22	$	1,448	7	$	614
Real estate - residential mortgage	5	972		6	652
Commercial - secured	4	1,096		8	4,779
Real estate - commercial mortgage	2	132		2	191
Commercial - unsecured	1	27		—	—
Total	34	$	3,675	23	$	6,236