5. Allowance for Loan Losses

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). 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 months ended March 31, 2013 and 2012 is shown in the following tables:



Three Months Ended March 31, 2013
	C&I			CRE			Construction			Leases		Installment			Home Equity Lines			Credit Cards			Residential Mortgages			Total
Allowance for loan losses, beginning balance	$	36,209		$	20,126		$	3,821		$	639	$	11,154		$	13,724		$	7,384		$	5,885		$	98,942
Charge-offs	(2,103		)	(53		)	(516		)	—		(4,594		)	(1,837		)	(1,403		)	(270		)	(10,776		)
Recoveries	1,055			132			58			89		2,496			483			513			43			4,869
Provision for loan losses	5,266			(1,806		)	(622		)	401		95			2,198			575			(299		)	5,808
Allowance for loan losses, ending balance	$	40,427		$	18,399		$	2,741		$	1,129	$	9,151		$	14,568		$	7,069		$	5,359		$	98,843



Three Months Ended March 31, 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	(6,292		)	(669		)	(38		)	—			(5,238		)	(2,735		)	(1,583		)	(862		)	(17,417		)
Recoveries	350			81			263			37			3,202			840			630			35			5,438
Provision for loan losses	10,751			(3,491		)	(274		)	(44		)	(1,192		)	1,398			104			877			8,129
Allowance for loan losses, ending balance	$	37,172		$	27,778		$	5,124		$	334		$	14,753		$	6,269		$	6,520		$	5,899		$	103,849

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 March 31, 2013, December 31, 2012 and March 31, 2012.



As of March 31, 2013
		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	$	1,957	$	769	$	90	$	—	$	1,458	$	89	$	74	$	1,713	$	6,150
	Collectively evaluated for impairment	38,470		17,630		2,651		1,129		7,693		14,479		6,995		3,646		92,693
Total ending allowance for noncovered loan losses balance		$	40,427	$	18,399	$	2,741	$	1,129	$	9,151	$	14,568	$	7,069	$	5,359	$	98,843
Noncovered loans:
	Loans individually evaluated for impairment	$	8,445	$	24,160	$	2,779	$	—	$	31,117	$	6,917	$	1,388	$	23,527	$	98,333
	Loans collectively evaluated for impairment	3,374,178		2,170,829		307,946		164,137		1,291,678		805,541		139,333		427,995		8,681,637
Total ending noncovered loan balance		$	3,382,623	$	2,194,989	$	310,725	$	164,137	$	1,322,795	$	812,458	$	140,721	$	451,522	$	8,779,970



As of December 31, 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	$	577	$	913	$	105	$	—	$	1,526	$	34	$	127	$	1,722	$	5,004
	Collectively evaluated for impairment	35,632		19,213		3,716		639		9,628		13,690		7,257		4,163		93,938
Total ending allowance for noncovered loan losses balance		$	36,209	$	20,126	$	3,821	$	639	$	11,154	$	13,724	$	7,384	$	5,885	$	98,942
Noncovered loans:
	Loans individually evaluated for impairment	$	6,187	$	24,007	$	3,405	$	—	$	30,870	$	6,281	$	1,612	$	24,009	$	96,371
	Loans collectively evaluated for impairment	3,300,339		2,200,409		332,142		139,236		1,297,388		799,797		144,775		421,202		8,635,288
Total ending noncovered loan balance		$	3,306,526	$	2,224,416	$	335,547	$	139,236	$	1,328,258	$	806,078	$	146,387	$	445,211	$	8,731,659



As of March 31, 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	$	972	$	2,478	$	224	$	—	$	1,902	$	66	$	92	$	1,505	$	7,239
	Collectively evaluated for impairment	36,200		25,300		4,900		334		12,851		6,203		6,428		4,394		96,610
Total ending allowance for noncovered loan losses balance		$	37,172	$	27,778	$	5,124	$	334	$	14,753	$	6,269	$	6,520	$	5,899	$	103,849
Noncovered loans:
	Loans individually evaluated for impairment	$	6,079	$	32,112	$	8,929	$	—	$	32,378	$	5,522	$	2,060	$	18,077	$	105,157
	Loans collectively evaluated for impairment	2,884,646		2,011,499		276,786		74,112		1,227,552		734,025		138,558		410,874		7,758,052
Total ending noncovered loan balance		$	2,890,725	$	2,043,611	$	285,715	$	74,112	$	1,259,930	$	739,547	$	140,618	$	428,951	$	7,863,209

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 share agreements. These expected reimbursements are recorded as part of covered loans in the accompanying consolidated balance sheets. In the three months ended March 31, 2013, the Corporation increased its allowance for covered loan losses to $47.9 million to reserve for estimated additional losses on certain Acquired Impaired Loans. The increase in the allowance was recorded by a charge to the provision for covered loan losses of $9.7 million that was partially offset by an increase of $5.5 million in the loss share receivable for the portion of the losses recoverable under the loss sharing agreements. During the three months ended March 31, 2012, provision for covered loan losses of $10.8 million was partially offset by an increase of $4.9 million in the loss share receivable resulting in an allowance for covered loan losses of $41.1 million.

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 $0.4 million, $0.3 million and $0.4 million as of March 31, 2013, December 31, 2012 and March 31, 2012, respectively.

The activity within the allowance for covered loan losses for the three months ended March 31, 2013 and 2012 is shown in the following table:



		Three months ended March 31,
		2013			2012
Balance at beginning of the period		$	43,255		$	36,417
	Provision for loan losses before benefit attributable to FDIC loss share agreements	9,677			10,831
	Benefit attributable to FDIC loss share agreements	(5,539		)	(4,899		)
Net provision for loan losses		4,138			5,932
Increase in indemnification asset		5,539			4,899
Loans charged-off		(4,987		)	(6,178		)
Balance at end of the period		$	47,945		$	41,070

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 March 31, 2013
				Unpaid				Average
		Recorded		Principal		Related		Recorded
		Investment		Balance		Allowance		Investment
Impaired loans with no related allowance
Commercial
	C&I	$	2,724	$	15,614	$	—	$	3,835
	CRE	19,969		27,259		—		20,681
	Construction	2,072		2,559		—		2,341
Consumer
	Installment	3,734		5,160		—		4,002
	Home equity line	1,090		1,420		—		1,172
	Credit card	58		58		—		65
	Residential mortgages	9,374		11,876		—		9,469
Subtotal		39,021		63,946		—		41,565
Impaired loans with a related allowance
Commercial
	C&I	5,721		7,578		1,957		6,143
	CRE	4,191		4,191		769		4,206
	Construction	707		707		90		712
Consumer
	Installment	27,383		27,475		1,458		27,564
	Home equity line	5,827		5,827		89		5,886
	Credit card	1,330		1,330		74		1,378
	Residential mortgages	14,153		14,242		1,713		14,168
Subtotal		59,312		61,350		6,150		60,057
	Total impaired loans	$	98,333	$	125,296	$	6,150	$	101,622

(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, 2012
				Unpaid				Average
		Recorded		Principal		Related		Recorded
		Investment		Balance		Allowance		Investment
Impaired loans with no related allowance
Commercial
	C&I	$	3,098	$	14,473	$	—	$	12,533
	CRE	19,664		26,402		—		23,911
	Construction	2,684		3,306		—		3,861
Consumer
	Installment	2,527		3,947		—		4,251
	Home equity line	642		849		—		860
	Credit card	467		467		—		568
	Residential mortgages	9,578		12,142		—		10,645
Subtotal		38,660		61,586		—		56,629
Impaired loans with a related allowance
Commercial
	C&I	3,089		4,943		577		4,231
	CRE	4,343		4,927		913		3,834
	Construction	721		721		105		730
Consumer
	Installment	28,343		28,706		1,526		29,583
	Home equity line	5,639		5,639		34		5,924
	Credit card	1,145		1,145		127		1,311
	Residential mortgages	14,431		14,520		1,722		14,537
Subtotal		57,711		60,601		5,004		60,150
	Total impaired loans	$	96,371	$	122,187	$	5,004	$	116,779

(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 March 31, 2012
				Unpaid				Average
		Recorded		Principal		Related		Recorded
		Investment		Balance		Allowance		Investment
Impaired loans with no related allowance
Commercial
	C&I	$	3,272	$	9,937	$	—	$	4,357
	CRE	25,734		36,073		—		26,449
	Construction	7,764		12,785		—		7,945
Consumer
	Installment	—		—		—		—
	Home equity line	—		—		—		—
	Credit card	223		223		—		251
	Residential mortgages	4,409		4,409		—		4,925
Subtotal		41,402		63,427		—		43,927
Impaired loans with a related allowance
Commercial
	C&I	2,807		3,206		972		2,919
	CRE	6,378		6,568		2,478		6,120
	Construction	1,165		1,165		224		1,168
Consumer
	Installment	32,378		32,378		1,901		32,504
	Home equity line	5,522		5,522		66		5,556
	Credit card	1,837		1,837		92		1,885
	Residential mortgages	13,667		13,667		1,504		13,692
Subtotal		63,754		64,343		7,237		63,844
	Total impaired loans	$	105,156	$	127,770	$	7,237	$	107,771

(a) These tables exclude loans fully charged off.

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

Interest income recognized on impaired loans during quarters ended March 31, 2013, 2012 and 2011 was not material.

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 three months 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. As of March 31, 2013 and December 31, 2012, non-reaffirmed consumer loans reported as nonaccrual were $10.0 million and $7.7 million, respectively. 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 March 31, 2013, December 31, 2012 and March 31, 2012.



			As of March 31, 2013
			Number of Loans	Recorded Investment		Unpaid Principal Balance
Noncovered loans
	Commercial
		C&I	25	$	2,627	$	7,864
		CRE	45	17,217		22,187
		Construction	31	2,779		3,266
		Total noncovered commercial	101	22,623		33,317
	Consumer
		Installment	1,840	31,117		32,635
		Home equity lines	238	6,917		7,247
		Credit card	343	1,388		1,388
		Residential mortgages	294	23,527		26,118
		Total noncovered consumer	2,715	62,949		67,388
Total noncovered loans			2,816	85,572		100,705
Covered loans
	Commercial
		C&I	3	1,723		1,958
		CRE	20	48,327		57,426
		Construction	10	6,296		26,502
		Total covered commercial	33	56,346		85,886
	Consumer
		Home equity lines	36	5,113		5,144
Total covered loans			69	$	61,459	$	91,030
Total loans			2,885	$	147,031	$	191,735

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



			As of December 31, 2012
			Number of Loans	Recorded Investment		Unpaid Principal Balance
Noncovered loans
	Commercial
		C&I	24	$	2,617	$	8,044
		CRE	40	16,305		20,701
		Construction	28	2,955		3,419
		Total noncovered commercial	92	21,877		32,164
	Consumer
		Installment	1,769	30,870		32,653
		Home equity lines	226	6,281		6,488
		Credit card	389	1,612		1,612
		Residential mortgages	298	24,009		26,662
		Total noncovered consumer	2,682	62,772		67,415
Total noncovered loans			2,774	84,649		99,579
Covered loans
	Commercial
		C&I	3	1,763		1,998
		CRE	20	50,272		57,483
		Construction	10	8,171		37,547
		Total covered commercial	33	60,206		97,028
	Consumer
		Home equity lines	35	5,632		5,666
Total covered loans			68	$	65,838	$	102,694
Total loans			2,842	$	150,487	$	202,273

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



			As of March 31, 2012
			Number of Loans	Recorded Investment		Unpaid Principal Balance
Noncovered loans
	Commercial
		C&I	15	$	3,388	$	6,031
		CRE	30	9,136		12,745
		Construction	27	4,593		5,250
		Total noncovered commercial	72	17,117		24,026
	Consumer
		Installment	1,506	32,378		32,378
		Home equity lines	184	5,522		5,522
		Credit card	454	2,060		2,060
		Residential mortgages	184	18,076		18,076
		Total noncovered consumer	2,328	58,036		58,036
Total noncovered loans			2,400	75,153		82,062
Covered loans
	Commercial
		C&I	12	7,662		14,877
		CRE	23	54,824		60,075
		Construction	9	13,687		33,791
		Total covered commercial	44	76,173		108,743
Total loans			2,444	$	151,326	$	190,805

(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 March 31, 2013 and 2012 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 March 31, 2013 and 2012 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 March 31, 2013 and 2012 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 March 31, 2013, the Corporation had $0.2 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 March 31, 2013, December 31, 2012 and March 31, 2012, including TDRs that continue to accrue interest and TDRs included in nonperforming assets.



As of March 31, 2013
	Accruing TDRs						Nonaccruing TDRs						Total		Total
	Current		Delinquent		Total		Current		Delinquent		Total		TDRs		Allowance
Noncovered loans
Commercial
C&I	$	1,580	$	—	$	1,580	$	—	$	1,047	$	1,047	$	2,627	$	293
CRE	14,441		—		14,441		991		1,785		2,776		17,217		769
Construction	1,716		707		2,423		356		—		356		2,779		90
Total noncovered commercial	17,737		707		18,444		1,347		2,832		4,179		22,623		1,152
Consumer
Installment	26,031		1,166		27,197		3,744		176		3,920		31,117		1,458
Home equity lines	5,122		240		5,362		1,329		226		1,555		6,917		89
Credit card	1,283		95		1,378		—		10		10		1,388		74
Residential mortgages	13,168		2,543		15,711		5,229		2,587		7,816		23,527		1,713
Total noncovered consumer	45,604		4,044		49,648		10,302		2,999		13,301		62,949		3,334
Total noncovered TDRs	63,341		4,751		68,092		11,649		5,831		17,480		85,572		4,486
Covered loans
C&I	984		738		1,722		—		—		—		1,722		518
CRE	5,371		42,958		48,329		—		—		—		48,329		4,701
Construction	2,482		3,813		6,295		—		—		—		6,295		1,220
Total covered commercial	8,837		47,509		56,346		—		—		—		56,346		6,439
Home equity lines	4,616		497		5,113		—		—		—		5,113		—
Total covered TDRs	$	13,453	$	48,006	$	61,459	$	—	$	—	$	—	$	61,459	$	6,439
Total TDRs	$	76,794	$	52,757	$	129,551	$	11,649	$	5,831	$	17,480	$	147,031	$	10,925



As of December 31, 2012
	Accruing TDRs						Nonaccruing TDRs						Total		Total
	Current		Delinquent		Total		Current		Delinquent		Total		TDRs		Allowance
Noncovered loans
Commercial
C&I	$	704	$	1,004	$	1,708	$	844	$	65	$	909	$	2,617	$	217
CRE	12,719		793		13,512		461		2,332		2,793		16,305		869
Construction	1,860		960		2,820		135		—		135		2,955		105
Total noncovered commercial	15,283		2,757		18,040		1,440		2,397		3,837		21,877		1,191
Consumer
Installment	27,085		1,547		28,632		2,064		174		2,238		30,870		1,526
Home equity lines	5,183		236		5,419		636		226		862		6,281		34
Credit card	1,483		118		1,601		—		11		11		1,612		127
Residential mortgages	12,510		3,413		15,923		5,196		2,890		8,086		24,009		1,722
Total noncovered consumer	46,261		5,314		51,575		7,896		3,301		11,197		62,772		3,409
Total noncovered TDRs	61,544		8,071		69,615		9,336		5,698		15,034		84,649		4,600
Covered loans
C&I	435		1,328		1,763		—		—		—		1,763		518
CRE	7,658		42,614		50,272		—		—		—		50,272		4,959
Construction	2,361		5,810		8,171		—		—		—		8,171		1,220
Total covered commercial	10,454		49,752		60,206		—		—		—		60,206		6,697
Home equity lines	5,632		—		5,632		—		—		—		5,632		—
Total covered TDRs	$	16,086	$	49,752	$	65,838	$	—	$	—	$	—	$	65,838	$	6,697
Total TDRs	$	77,630	$	57,823	$	135,453	$	9,336	$	5,698	$	15,034	$	150,487	$	11,297



As of March 31, 2012
	Accruing TDRs						Nonaccruing TDRs						Total		Total
	Current		Delinquent		Total		Current		Delinquent		Total		TDRs		Allowance
Noncovered loans
Commercial
C&I	$	1,791	$	—	$	1,791	$	—	$	1,597	$	1,597	$	3,388	$	822
CRE	3,672		510		4,182		3,152		1,802		4,954		9,136		224
Construction	4,077		—		4,077		137		379		516		4,593		224
Total noncovered commercial	9,540		510		10,050		3,289		3,778		7,067		17,117		1,270
Consumer
Installment	31,167		1,134		32,301		—		77		77		32,378		1,901
Home equity lines	4,828		387		5,215		75		232		307		5,522		66
Credit card	1,997		60		2,057		—		3		3		2,060		92
Residential mortgages	15,099		—		15,099		2,918		59		2,977		18,076		1,504
Total noncovered consumer	53,091		1,581		54,672		2,993		371		3,364		58,036		3,563
Total noncovered TDRs	62,631		2,091		64,722		6,282		4,149		10,431		75,153		4,833
Covered loans
C&I	2,405		5,257		7,662		—		—		—		7,662		1,384
CRE	36,419		18,405		54,824		—		—		—		54,824		7,720
Construction	3,835		9,852		13,687		—		—		—		13,687		1,245
Total covered TDRs	42,659		33,514		76,173		—		—		—		76,173		10,349
Total TDRs	$	105,290	$	35,605	$	140,895	$	6,282	$	4,149	$	10,431	$	151,326	$	15,182

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 that subsequently defaulted during the three months ended March 31, 2013, as well as the recorded investment in these restructured loans as of March 31, 2013.



	As of March 31, 2013
	Number of Loans	Recorded Investment
Noncovered loans
Commercial
C&I	1	$	231
CRE	—	—
Construction	1	707
Total noncovered commercial	2	938
Consumer
Installment	134	2,155
Home equity lines	16	322
Credit card	17	106
Residential mortgages	—	—
Total noncovered consumer	167	2,583
Covered loans
Commercial
C&I	—	—
CRE	—	—
Construction	—	—
Total covered commercial	—	—
Total	167	$	2,583