The Corporation’s Credit Policy Division manages credit risk by establishing common credit policies for its subsidiary bank, participating in approval of its loans, conducting reviews of loan portfolios, providing centralized consumer underwriting, collections and loan operation services, and overseeing loan workouts. The Corporation’s objective is to minimize losses from its commercial lending activities and to maintain consumer losses at acceptable levels that are stable and consistent with growth and profitability objectives.

The allowance for loan losses is Management’s estimate of the amount of probable credit losses inherent in the portfolio at the balance sheet date. Management estimates credit losses based on individual loans determined to be impaired and on all other loans grouped based on similar risk characteristics. Management also considers internal and external factors such as economic conditions, loan management practices, portfolio monitoring, and other risks, collectively known as qualitative factors, or Q-factors, to estimate credit losses in the loan portfolio. Q-factors are used to reflect changes in the portfolio’s collectability characteristics not captured by historical loss data.

The Corporation’s historical loss component is the most significant of the allowance for loan losses components and is based on historical loss experience by credit-risk grade (for commercial loan pools) and payment status (for mortgage and consumer loan pools). Balances by credit-risk grade and payment status, as well as descriptions of the credit-risk grades are included in Note 5 (Loans). The historical loss experience component of the allowance for loan losses represents the results of migration analysis of historical net charge-offs for portfolios of loans (including groups of commercial loans within each credit-risk grade and groups of consumer loans by payment status). For measuring loss exposure in a pool of loans, the historical net charge-off or migration experience is utilized to estimate expected losses to be realized from the pool of loans.

If a nonperforming, substandard loan has an outstanding balance of $0.3 million or greater or if a doubtful loan has an outstanding balance of $0.1 million or greater, as determined by the Corporation’s credit-risk grading process, further analysis is performed to determine the probable loss content and assign a specific allowance to the loan, if deemed appropriate. The allowance for loan losses relating to originated loans that have become impaired is based on either expected cash flows discounted using the original effective interest rate, the observable market price, or the fair value of the collateral for certain collateral dependent loans. To the extent credit deterioration occurs on purchased loans after the date of acquisition, the Corporation records an allowance for loan losses, net of any expected reimbursement under any loss sharing agreements with the FDIC.

The activity within the allowance for noncovered loan losses, by portfolio type, for the three and nine months ended September 30, 2012 and 2011 is shown in the following tables:



	Nine Months Ended September 30, 2012
	C&I			CRE			Construction			Leases		Installment			Home Equity Lines			Credit Cards			Residential Mortgages			Total
Allowance for loan losses, beginning balance	$	32,363		$	31,857		$	5,173		$	341	$	17,981		$	6,766		$	7,369		$	5,849		$	107,699
Charge-offs	(19,906		)	(3,496		)	(165		)	—		(14,441		)	(7,373		)	(4,618		)	(3,431		)	(53,430		)
Recoveries	3,120			825			364			38		9,104			2,588			1,583			191			17,813
Provision for noncovered loan losses	23,582			(4,008		)	(568		)	127		(809		)	2,904			2,901			2,731			26,860
Allowance for loan losses, ending balance	$	39,159		$	25,178		$	4,804		$	506	$	11,835		$	4,885		$	7,235		$	5,340		$	98,942



	Three Months Ended September 30, 2012
	C&I			CRE			Construction			Leases		Installment			Home Equity Lines			Credit Cards			Residential Mortgages			Total
Allowance for loan losses, beginning balance	$	40,327		$	27,186		$	5,147		$	358	$	13,029		$	5,449		$	6,690		$	5,663		$	103,849
Charge-offs	(8,773		)	(727		)	(127		)	—		(5,507		)	(2,784		)	(1,390		)	(1,691		)	(20,999		)
Recoveries	1,408			180			61			—		2,883			1,007			488			100			6,127
Provision for noncovered loan losses	6,197			(1,461		)	(277		)	148		1,430			1,213			1,447			1,268			9,965
Allowance for loan losses, ending balance	$	39,159		$	25,178		$	4,804		$	506	$	11,835		$	4,885		$	7,235		$	5,340		$	98,942



	Nine Months Ended September 30, 2011
	C&I			CRE			Construction			Leases			Installment			Home Equity Lines			Credit Cards			Residential Mortgages			Total
Allowance for loan losses, beginning balance	$	29,764		$	32,026		$	7,180		$	475		$	21,555		$	7,217		$	11,107		$	5,366		$	114,690
Charge-offs	(13,517		)	(7,763		)	(3,245		)	(778		)	(20,204		)	(8,356		)	(6,135		)	(3,786		)	(63,784		)
Recoveries	1,254			54			545			35			10,812			1,840			1,789			192			16,521
Provision for noncovered loan losses	12,837			8,984			2,335			593			6,160			5,542			1,235			4,074			41,760
Allowance for loan losses, ending balance	$	30,338		$	33,301		$	6,815		$	325		$	18,323		$	6,243		$	7,996		$	5,846		$	109,187



	Three Months Ended September 30, 2011
	C&I			CRE			Construction			Leases			Installment			Home Equity Lines			Credit Cards			Residential Mortgages			Total
Allowance for loan losses, beginning balance	$	28,366		$	32,946		$	7,876		$	353		$	18,089		$	7,142		$	8,403		$	6,012		$	109,187
Charge-offs	(4,528		)	(3,304		)	(550		)	(651		)	(5,911		)	(2,779		)	(1,520		)	(771		)	(20,014		)
Recoveries	540			6			171			1			3,375			658			585			74			5,410
Provision for noncovered loan losses	5,960			3,653			(682		)	622			2,770			1,222			528			531			14,604
Allowance for loan losses, ending balance	$	30,338		$	33,301		$	6,815		$	325		$	18,323		$	6,243		$	7,996		$	5,846		$	109,187

The following tables present the allowance for noncovered loan losses and the recorded investment in noncovered loans, by portfolio type, based on impairment method as of September 30, 2012, December 31, 2011 and September 30, 2011.



	As of September 30, 2012
	C&I		CRE		Construction		Leases		Installment		Home Equity Lines		Credit Cards		Residential Mortgages		Total
Ending allowance for noncovered loan losses balance attributable to loans:
Individually evaluated for impairment	$	2,900	$	1,953	$	117	$	—	$	1,674	$	95	$	106	$	1,599	$	8,444
Collectively evaluated for impairment	36,259		23,225		4,687		506		10,161		4,790		7,129		3,741		90,498
Total ending allowance for noncovered loan losses balance	$	39,159	$	25,178	$	4,804	$	506	$	11,835	$	4,885	$	7,235	$	5,340	$	98,942
Noncovered loans:
Individually evaluated for impairment	$	9,994	$	28,972	$	3,577	$	—	$	32,577	$	6,922	$	1,767	$	24,569	$	108,378
Collectively evaluated for impairment	3,039,235		2,124,370		305,528		110,938		1,288,505		782,820		142,152		414,494		8,208,042
Total ending noncovered loan balance	$	3,049,229	$	2,153,342	$	309,105	$	110,938	$	1,321,082	$	789,742	$	143,919	$	439,063	$	8,316,420



	As of December 31, 2011
	C&I		CRE		Construction		Leases		Installment		Home Equity Lines		Credit Cards		Residential Mortgages		Total
Ending allowance for noncovered loan losses balance attributable to loans:
Individually evaluated for impairment	$	2,497	$	1,599	$	99	$	—	$	1,382	$	31	$	108	$	1,364	$	7,080
Collectively evaluated for impairment	29,866		30,258		5,074		341		16,599		6,735		7,261		4,485		100,619
Total ending allowance for noncovered loan losses balance	$	32,363	$	31,857	$	5,173	$	341	$	17,981	$	6,766	$	7,369	$	5,849	$	107,699
Noncovered loans:
Individually evaluated for impairment	$	8,269	$	36,087	$	9,320	$	—	$	33,571	$	4,763	$	2,202	$	17,398	$	111,610
Collectively evaluated for impairment	2,767,207		2,018,849		268,015		73,530		1,230,094		739,219		144,154		396,266		7,637,334
Total ending noncovered loan balance	$	2,775,476	$	2,054,936	$	277,335	$	73,530	$	1,263,665	$	743,982	$	146,356	$	413,664	$	7,748,944



	As of September 30, 2011
	C&I		CRE		Construction		Leases		Installment		Home Equity Lines		Credit Cards		Residential Mortgages		Total
Ending allowance for noncovered loan losses balance attributable to loans:
Individually evaluated for impairment	$	256	$	2,064	$	1,264	$	—	$	1,568	$	52	$	121	$	1,346	$	6,671
Collectively evaluated for impairment	30,082		31,237		5,551		325		16,755		6,191		7,875		4,500		102,516
Total ending allowance for noncovered loan losses balance	$	30,338	$	33,301	$	6,815	$	325	$	18,323	$	6,243	$	7,996	$	5,846	$	109,187
Noncovered loans:
Individually evaluated for impairment	$	4,271	$	39,288	$	11,789	$	—	$	34,654	$	4,413	$	2,356	$	16,316	$	113,087
Collectively evaluated for impairment	2,697,987		2,024,734		240,788		57,992		1,236,673		738,964		140,354		380,993		7,518,485
Total ending noncovered loan balance	$	2,702,258	$	2,064,022	$	252,577	$	57,992	$	1,271,327	$	743,377	$	142,710	$	397,309	$	7,631,572

To the extent there is a decrease in the present value of cash flows from Acquired Impaired Loans after the date of acquisition, the Corporation records an allowance for loan losses, net of expected reimbursement under any loss sharing agreements. These expected reimbursements are recorded as part of covered loans in the accompanying consolidated balance sheets. During the three months ended September 30, 2012, the Corporation increased its allowance for covered loan losses to $43.6 million to reserve for estimated additional losses on certain Acquired Impaired Loans. The increase in the allowance was recorded in the three months ended September 30, 2012 by a charge to the provision for covered loan losses of $7.7 million and an increase of $1.5 million in the loss share receivable for the portion of the losses recoverable under the loss sharing agreements.

To the extent credit deterioration occurs in Acquired Non-Impaired loans after the date of acquisition, the Corporation records a provision for loan losses only when the required allowance, net of any expected reimbursement under the loss sharing agreements exceeds any remaining credit discount. The allowance for losses on Acquired Nonimpaired loans, included in the allowance for noncovered covered loan losses on the consolidated balance sheets was $0.3 million, $0.7 million and $0.6 million as of September 30, 2012, December 31, 2011 and September 30, 2011, respectively.

The activity within the allowance for covered loan losses for the three and nine months ended September 30, 2012 and 2011 is shown in the following table:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Balance at beginning of the period	$	42,606		$	33,360		$	36,417		$	13,733
Provision for loan losses before benefit attributable to FDIC loss share agreements	7,698			12,992			28,177			48,657
Benefit attributable to FDIC loss share agreements	(1,484		)	(8,224		)	(12,601		)	(31,077		)
Net provision for covered loan losses	6,214			4,768			15,576			17,580
Increase in indemnification asset	1,484			8,224			12,601			31,077
Loans charged-off	(6,660		)	(11,749		)	(20,950		)	(27,787		)
Balance at end of the period	$	43,644		$	34,603		$	43,644		$	34,603

Credit Quality Disclosures

A loan is considered to be impaired when, based on current events or information, it is probable the Corporation will be unable to collect all amounts due (principal and interest) per the contractual terms of the loan agreement. Loan impairment for all loans is measured based on either the present value of expected future cash flows discounted at the loan’s effective interest rate, at the observable market price of the loan, or the fair value of the collateral for certain collateral dependent loans. Impaired loans include all nonaccrual commercial, agricultural, construction, and commercial real estate loans, and loans modified as troubled debt restructurings (“TDRs”). Aggregated consumer loans, mortgage loans, and leases that are collectively evaluated for impairment are not included in the following tables.



	As of September 30, 2012
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
Impaired loans with no related allowance
Commercial
C&I	$	1,443	$	10,154	$	—	$	9,903
CRE	16,910		22,337		—		19,217
Construction	3,370		3,944		—		4,080
Consumer
Installment	2,902		4,739		—		4,888
Home equity line	959		1,239		—		1,237
Credit card	4		4		—		4
Residential mortgages	10,693		12,838		—		11,542
Subtotal	$	36,281	$	55,255	$	—	$	50,871
Impaired loans with a related allowance
Commercial
C&I	8,551		12,555		2,900		10,163
CRE	11,543		14,113		1,953		10,559
Construction	726		726		117		733
Consumer
Installment	29,675		29,675		1,674		30,361
Home equity line	5,963		5,963		95		6,206
Credit card	1,763		1,763		106		1,975
Residential mortgages	13,876		13,967		1,599		13,946
Subtotal	72,097		78,762		8,444		73,943
Total impaired loans	$	108,378	$	134,017	$	8,444	$	124,814

(a) These tables exclude loans fully charged off.

(b) The differences between the recorded investment and unpaid principal balance amounts represents partial charge offs.



	As of December 31, 2011
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
Impaired loans with no related allowance
Commercial
C&I	$	6,999	$	9,121	$	—	$	8,442
CRE	29,566		46,744		—		37,720
Construction	7,522		13,675		—		9,908
Consumer
Installment	—		—		—		—
Home equity line	—		—		—		—
Credit card	—		—		—		—
Residential mortgages	4,244		5,746		—		4,450
Subtotal	48,331		75,286		—		60,520
Impaired loans with a related allowance
Commercial
C&I	1,270		1,769		2,497		752
CRE	6,521		6,789		1,599		3,247
Construction	1,798		2,864		99		1,929
Consumer
Installment	33,571		33,723		1,382		33,742
Home equity line	4,763		4,763		31		4,996
Credit card	2,202		2,202		108		2,497
Residential mortgages	13,154		13,167		1,364		13,155
Subtotal	63,279		65,277		7,080		60,318
Total impaired loans	$	111,610	$	140,563	$	7,080	$	120,838

(a) These tables exclude loans fully charged off.

(b) The differences between the recorded investment and unpaid principal balance amounts represents partial charge offs.



	As of September 30, 2011
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
Impaired loans with no related allowance
Commercial
C&I	$	843	$	1,831	$	—	$	1,613
CRE	28,728		40,092		—		34,838
Construction	5,883		8,657		—		6,850
Consumer
Installment	—		—		—		—
Home equity line	—		—		—		—
Credit card	—		—		—		—
Residential mortgages	2,872		4,229		—		2,999
Subtotal	$	38,326	$	54,809	$	—	$	46,300
Impaired loans with a related allowance
Commercial
C&I	3,428		4,725		256		4,053
CRE	10,560		15,444		2,064		12,286
Construction	5,906		8,840		1,264		6,386
Consumer
Installment	34,654		34,703		1,568		34,485
Home equity line	4,413		4,412		52		4,581
Credit card	2,359		2,359		121		2,560
Residential mortgages	13,444		13,469		1,346		13,409
Subtotal	74,764		83,952		6,671		77,760
Total impaired loans	$	113,090	$	138,761	$	6,671	$	124,060

(a) These tables exclude loans fully charged off.

(b) The differences between the recorded investment and unpaid principal balance amounts represents partial charge offs.

In certain circumstances, the Corporation may modify the terms of a loan to maximize the collection of amounts due when a borrower is experiencing financial difficulties or is expected to experience difficulties in the near term. In most cases the modification is either a concessionary reduction in interest rate, extension of the maturity date or modification of the adjustable rate provisions of the loan that would otherwise not be considered; however, forgiveness of principal is rarely granted. Concessionary modifications are classified as TDRs unless the modification is short-term, typically less than 90 days. TDRs accrue interest if the borrower complies with the revised terms and conditions and has demonstrated repayment performance at a level commensurate with the modified terms for a minimum of six consecutive payment cycles after the restructuring date.

The substantial majority of the Corporation’s residential mortgage TDRs involve reducing the client’s loan payment through an interest rate reduction for a set period of time based on the borrower’s ability to service the modified loan payment. As a result of guidance from the Office of the Comptroller of the Currency ("OCC"), in the quarter ended September 30, 2012, approximately $10.6 million of consumer loans were identified as troubled debt restructurings whereby the borrower's obligation to the Corporation has been discharged in bankruptcy and the borrower has not reaffirmed the debt. These loans were reclassified from performing loans to nonaccrual status as of September 30, 2012 and consisted of $6.7 million of first mortgages, $1.0 million of junior liens and $2.9 million of automobile loans. Modifications of mortgages retained in portfolio are handled using proprietary modification guidelines, or the FDIC’s Modification Program for residential first mortgages covered by loss share agreements (agreements between the Bank and the FDIC that afford the Bank significant protection against future losses). The Corporation participates in the U.S. Treasury’s Home Affordable Modification Program for originated mortgages sold to and serviced for Fannie Mae and Freddie Mac. Commercial and industrial loans modified in a TDR often involve temporary interest-only payments, term extensions and converting revolving credit lines to term loans. Additional collateral, a co-borrower, or a guarantor is often requested. Commercial real estate and construction loans modified in a TDR often involve reducing the interest rate for the remaining term of the loan, extending the maturity date at an interest rate lower than the current market rate for new debt with similar risk, or substituting or adding a new borrower or guarantor. Construction loans modified in a TDR may also involve extending the interest-only payment period. Acquired loans restructured after acquisition are not considered TDRs for purposes of the Corporation’s accounting and disclosure if the loans evidenced credit deterioration as of the acquisition date and are accounted for in pools. The Corporation has modified certain loans according to provisions in loss share agreements. Losses associated with modifications on these loans, including the economic impact of interest rate reductions, are generally eligible for reimbursement under the loss share agreements.

The following tables provide the number of loans modified in a TDR and the recorded investment and unpaid principal balance by loan portfolio as of September 30, 2012, December 31, 2011 and September 30, 2011, respectively.



			As of September 30, 2012
			Number of Loans	Recorded Investment		Unpaid Principal Balance
Noncovered loans
	Commercial
		C&I	22	$	2,413	$	8,478
		CRE	36	17,763		21,307
		Construction	27	3,577		4,025
		Subtotal	85	23,753		33,810
	Consumer
		Installment	1,840	32,577		34,414
		Home equity lines	229	6,922		7,202
		Credit card	426	1,767		1,767
		Residential mortgages	308	24,569		26,805
		Subtotal	2,803	65,835		70,188
Covered loans
	Commercial
		C&I	11	5,278		6,216
		CRE	25	52,079		57,681
		Construction	10	14,640		42,567
		Subtotal	46	71,997		106,464
	Consumer
		Home equity lines	30	4,742		4,774
		Total	2,964	$	166,327	$	215,236

(a) The differences between the recorded investment and unpaid principal balance amounts represents partial charge offs.



			As of December 31, 2011
			Number of Loans	Recorded Investment		Unpaid Principal Balance
Noncovered loans
	Commercial
		C&I	14	$	2,512	$	4,336
		CRE	28	9,167		12,659
		Construction	22	3,323		3,985
		Subtotal	64	15,002		20,980
	Consumer
		Installment	1,547	33,571		33,723
		Home equity lines	174	4,763		4,763
		Credit card	496	2,202		2,202
		Residential mortgages	177	17,398		18,913
		Subtotal	2,394	57,934		59,601
Covered loans
	Commercial
		C&I	15	7,578		10,812
		CRE	21	57,786		62,159
		Construction	8	12,056		32,035
		Subtotal	44	77,420		105,006
		Total	2,502	$	150,356	$	185,587

(a) The differences between the recorded investment and unpaid principal balance amounts represents partial charge offs.



			As of September 30, 2011
			Number of Loans	Recorded Investment		Unpaid Principal Balance
Noncovered loans
	Commercial
		C&I	8	$	1,096	$	2,654
		CRE	20	8,068		10,725
		Construction	16	3,443		3,657
		Subtotal	44	12,607		17,036
	Consumer
		Installment	1,568	34,654		34,703
		Home equity lines	166	4,413		4,412
		Credit card	529	2,359		2,359
		Residential mortgages	161	16,316		17,698
		Subtotal	2,424	57,742		59,172
Covered loans
	Commercial
		C&I	8	7,287		10,901
		CRE	15	41,403		45,282
		Construction	11	10,940		21,918
		Subtotal	34	59,630		78,101
		Total	2,502	$	129,979	$	154,309

(a) The differences between the recorded investment and unpaid principal balance amounts represents partial charge offs.

The pre-modification and post-modification outstanding recorded investments of loans modified as TDRs during the quarters ended September 30, 2012 and 2011 were not materially different. Post-modification balances may include capitalization of unpaid accrued interest and fees associated with the modification as well as forgiveness of principal. Loans modified as TDRs during the quarters ended September 30, 2012 and 2011 did not involve the forgiveness of principal, accordingly, the Corporation did not record a charge-off at the modification date. Additionally, capitalization of any unpaid accrued interest and fees assessed to loans modified in the quarters ended September 30, 2012 and 2011 were not material to the accompanying consolidated financial statements. Specific allowances for loan losses are established for loans whose terms have been modified in a TDR. Specific reserve allocations are generally assessed prior to loans being modified in a TDR, as most of these loans migrate from the Corporation’s internal watch list and have been specifically allocated for as part of the Corporation’s normal loan loss provisioning methodology. At September 30, 2012, the Corporation had $0.3 million in commitments to lend additional funds to debtors owing receivables whose terms have been modified in a TDR.

The following tables provide a summary of the delinquency status of TDRs along with the specific allowance for loan loss, by loan type, as of September 30, 2012, December 31, 2011 and September 30, 2011, respectively, including TDRs that continue to accrue interest and TDRs included in nonperforming assets.



	As of September 30, 2012
	Accruing TDRs						Nonaccruing TDRs						Total		Total
	Current		Delinquent		Total		Current		Delinquent		Total		TDRS		Allowance
Noncovered loans
Commercial
C&I	$	955	$	—	$	955	$	865	$	593	$	1,458	$	2,413	$	126
CRE	11,609		2,464		14,073		473		3,217		3,690		17,763		401
Construction	3,507		—		3,507		70		—		70		3,577		117
Total noncovered commercial	16,071		2,464		18,535		1,408		3,810		5,218		23,753		644
Consumer
Installment	28,604		1,071		29,675		2,882		20		2,902		32,577		1,674
Home equity lines	5,394		171		5,565		1,131		226		1,357		6,922		95
Credit card	1,655		109		1,764		—		3		3		1,767		106
Residential mortgages	11,386		3,339		14,725		6,611		3,233		9,844		24,569		1,599
Total noncovered consumer	47,039		4,690		51,729		10,624		3,482		14,106		65,835		3,474
Covered loans
Commercial
C&I	1,000		4,278		5,278		—		—		—		5,278		1,527
CRE	17,298		34,782		52,080		—		—		—		52,080		8,088
Construction	6,324		8,315		14,639		—		—		—		14,639		1,632
Total covered commercial	24,622		47,375		71,997		—		—		—		71,997		11,247
Consumer
Home equity lines	4,698		44		4,742		—		—		—		4,742		—
Total TDRs	$	92,430	$	54,573	$	147,003	$	12,032	$	7,292	$	19,324	$	166,327	$	15,365



	As of December 31, 2011
	Accruing TDRs						Nonaccruing TDRs						Total		Total
	Current		Delinquent		Total		Current		Delinquent		Total		TDRS		Allowance
Noncovered loans
Commercial
C&I	$	91	$	—	$	91	$	—	$	2,421	$	2,421	$	2,512	$	247
CRE	3,305		513		3,818		3,590		1,759		5,349		9,167		236
Construction	2,782		—		2,782		304		237		541		3,323		99
Total noncovered commercial	6,178		513		6,691		3,894		4,417		8,311		15,002		582
Consumer
Installment	31,637		1,800		33,437		—		134		134		33,571		1,382
Home equity lines	4,226		222		4,448		76		239		315		4,763		31
Credit card	2,073		110		2,183		—		19		19		2,202		108
Residential mortgages	13,736		688		14,424		1,622		1,352		2,974		17,398		1,364
Total noncovered consumer	51,672		2,820		54,492		1,698		1,744		3,442		57,934		2,885
Covered loans
Commercial
C&I	1,587		5,991		7,578		—		—		—		7,578		1,384
CRE	35,083		22,703		57,786		—		—		—		57,786		6,567
Construction	5,838		6,218		12,056		—		—		—		12,056		696
Total covered commercial	42,508		34,912		77,420		—		—		—		77,420		8,647
Total TDRs	$	100,358	$	38,245	$	138,603	$	5,592	$	6,161	$	11,753	$	150,356	$	12,114



	As of September 30, 2011
	Accruing TDRs						Nonaccruing TDRs						Total		Total
	Current		Delinquent		Total		Current		Delinquent		Total		TDRS		Allowance
Noncovered loans
Commercial
C&I	$	129	$	—	$	129	$	—	$	967	$	967	$	1,096	$	215
CRE	4,778		—		4,778		1,215		2,075		3,290		8,068		125
Construction	2,760		—		2,760		180		503		683		3,443		772
Total noncovered commercial	7,667		—		7,667		1,395		3,545		4,940		12,607		1,112
Consumer
Installment	32,882		1,772		34,654		—		—		—		34,654		1,568
Home equity lines	3,885		528		4,413		—		—		—		4,413		52
Credit card	2,201		158		2,359		—		—		—		2,359		121
Residential mortgages	12,313		1,570		13,883		1,485		948		2,433		16,316		1,346
Total noncovered consumer	51,281		4,028		55,309		1,485		948		2,433		57,742		3,087
Covered loans
Commercial
C&I	6,052		1,235		7,287		—		—		—		7,287		746
CRE	41,403		—		41,403		—		—		—		41,403		1,542
Construction	10,940		—		10,940		—		—		—		10,940		394
Total covered commercial	58,395		1,235		59,630		—		—		—		59,630		2,682
Total TDRs	$	117,343	$	5,263	$	122,606	$	2,880	$	4,493	$	7,373	$	129,979	$	6,881

Loans modified in a TDR are closely monitored for delinquency as an early indicator of possible future default. If loans modified in a TDR subsequently default, the Corporation evaluates the loan for possible further impairment. The allowance for loan losses may be increased, adjustments may be made in the allocation of the allowance for loan losses, or partial charge-offs may be taken to further write-down the carrying value of the loan. The following table provides the number of loans modified in a TDR during the previous 12 months which subsequently defaulted during the quarter ended September 30, 2012, as well as the recorded investment in these restructured loans as of September 30, 2012.



	As of September 30, 2012
	Number of Loans	Recorded Investment
Noncovered loans
Commercial
C&I	—	$	—
CRE	—	—
Construction	—	—
Total noncovered commercial	—	—
Consumer
Installment	122	4,385
Home equity lines	15	669
Credit card	18	122
Residential mortgages	1	80
Total noncovered consumer	156	5,256
Covered loans
Commercial
C&I	—	—
CRE	—	—
Construction	—	—
Total covered commercial	—	—
Total	156	$	5,256