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 ALL is Management's estimate of the amount of probable credit losses inherent in a loan portfolio at the balance sheet date. The following describes the distinctions in methodology used to estimate the ALL of originated, acquired and FDIC acquired loan portfolios as well as certain significant accounting policies relevant to each category.

Allowance for Originated Loan Losses

Management estimates credit losses based on originated 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 ALL 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 ALL 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 ALL 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.

The following tables show activity in the originated ALL, by portfolio segment for the three months ended March 31, 2015 and 2014, as well as the corresponding recorded investment in originated loans at the end of the period:



As of March 31, 2015
(In thousands)
Originated Loans		C&I			CRE			Construction			Leases			Installment			Home Equity Lines			Credit Cards			Residential Mortgages			Total
Three Months Ended
Allowance for originated loan losses, beginning balance		$	37,375		$	10,492		$	2,202		$	674		$	12,918		$	19,324		$	7,966		$	4,745		$	95,696
Charge-offs		(510		)	(215		)	—			—			(5,055		)	(911		)	(1,452		)	(424		)	(8,567		)
Recoveries		341			—			1			4			3,020			613			366			35			4,380
Provision for loan losses		2,632			(1,464		)	(451		)	(49		)	2,475			407			921			1,565			6,036
Allowance for originated loan losses, ending balance		$	39,838		$	8,813		$	1,752		$	629		$	13,358		$	19,433		$	7,801		$	5,921		$	97,545
Ending allowance for originated loan losses balance attributable to loans:
	Individually evaluated for impairment	$	10,042		$	317		$	—		$	—		$	1,005		$	254		$	263		$	1,416		$	13,297
	Collectively evaluated for impairment	29,796			8,496			1,752			629			12,353			19,179			7,538			4,505			84,248
Total ending allowance for originated loan losses balance		$	39,838		$	8,813		$	1,752		$	629		$	13,358		$	19,433		$	7,801		$	5,921		$	97,545
Originated loans:
	Originated loans individually evaluated for impairment	$	35,792		$	15,000		$	—		$	—		$	26,882		$	7,632		$	815		$	24,822		$	110,943
	Originated loans collectively evaluated for impairment	5,282,105			2,118,017			580,978			388,873			2,473,406			1,126,606			159,951			615,158			12,745,094
Total ending originated loan balance		$	5,317,897		$	2,133,017		$	580,978		$	388,873		$	2,500,288		$	1,134,238		$	160,766		$	639,980		$	12,856,037



As of March 31, 2014
(In thousands)
Originated Loans		C&I			CRE			Construction			Leases			Installment			Home Equity Lines			Credit Cards			Residential Mortgages			Total
Three Months Ended
Allowance for originated loan losses, beginning balance		$	42,981		$	12,265		$	2,810		$	1,081		$	11,935		$	12,900		$	7,740		$	4,772		$	96,484
Charge-offs		(5,074		)	(79		)	—			—			(4,584		)	(1,409		)	(1,455		)	(559		)	(13,160		)
Recoveries		997			4			28			—			2,749			904			418			38			5,138
Provision for loan losses		1,271			1,195			(1,368		)	(54		)	1,504			765			148			193			3,654
Allowance for originated loan losses, ending balance		$	40,175		$	13,385		$	1,470		$	1,027		$	11,604		$	13,160		$	6,851		$	4,444		$	92,116
Ending allowance for originated loan losses balance attributable to loans:
	Individually evaluated for impairment	$	2,866		$	2,918		$	—		$	—		$	1,006		$	223		$	307		$	1,241		$	8,561
	Collectively evaluated for impairment	37,309			10,467			1,470			1,027			10,598			12,937			6,544			3,203			83,555
Total ending allowance for originated loan losses balance		$	40,175		$	13,385		$	1,470		$	1,027		$	11,604		$	13,160		$	6,851		$	4,444		$	92,116
Originated loans:
	Originated loans individually evaluated for impairment	$	7,143		$	31,576		$	404		$	—		$	25,818		$	6,931		$	1,034		$	26,198		$	99,104
	Originated loans collectively evaluated for impairment	4,469,013			2,215,709			359,347			257,509			1,809,704			939,871			146,883			529,773			10,727,809
Total ending originated loan balance		$	4,476,156		$	2,247,285		$	359,751		$	257,509		$	1,835,522		$	946,802		$	147,917		$	555,971		$	10,826,913

The following table presents the originated ALL and the recorded investment as of December 31, 2014:



As of December 31, 2014
	(In thousands)
	Originated Loans	C&I		CRE		Construction		Leases		Installment		Home Equity Lines		Credit Cards		Residential Mortgages		Total
Ending allowance for originated loan losses balance attributable to loans:
	Individually evaluated for impairment	$	72	$	2,914	$	—	$	—	$	1,178	$	207	$	296	$	1,283	$	5,950
	Collectively evaluated for impairment	37,303		7,578		2,202		674		11,740		19,117		7,670		3,462		89,746
Total ending allowance for originated loan losses balance		$	37,375	$	10,492	$	2,202	$	674	$	12,918	$	19,324	$	7,966	$	4,745	$	95,696
Originated loans:
	Loans individually evaluated for impairment	$	11,759	$	23,300	$	—	$	—	$	24,905	$	7,379	$	854	$	25,251	$	93,448
	Loans collectively evaluated for impairment	5,163,442		2,093,818		537,766		370,179		2,368,546		1,102,957		163,624		600,032		12,400,364
Total ending originated loan balance		$	5,175,201	$	2,117,118	$	537,766	$	370,179	$	2,393,451	$	1,110,336	$	164,478	$	625,283	$	12,493,812

Allowance for Acquired Loan Losses

The Citizens' loans were recorded at their fair value as of the Acquisition Date and the prior ALL was eliminated. An ALL for acquired nonimpaired loans is estimated using a methodology similar to that used for originated loans. The allowance determined for each acquired nonimpaired loan is compared to the remaining fair value adjustment for that loan. If the computed allowance is greater, the excess is added to the allowance through a provision for loan losses. If the computed allowance is less, no additional allowance is recognized. As of March 31, 2015, the computed ALL was less than the remaining fair value discount; therefore, no ALL for acquired nonimpaired loans was recorded.

Charge-offs and actual losses on an acquired nonimpaired loan first reduce any remaining fair value discount for that loan. Once a loan's discount is depleted, charge-offs and actual losses are applied against the acquired ALL. During the three months ended March 31, 2015, provision for loan losses, equal to net charge-offs, of $2.2 million was recorded. Charge-offs on acquired nonimpaired loans were mainly related to consumer loans that were written off in accordance with the Corporation's credit policies based on a predetermined number of days past due.

The ALL for acquired impaired loans is determined by comparing the present value of the cash flows expected to be collected to the carrying amount for a given pool of loans. Management reforecasts the estimated cash flows expected to be collected on acquired impaired loans on a quarterly basis. If the present value of expected cash flows for a pool is less than its carrying value, impairment is recognized by an increase in the ALL and a charge to the provision for loan losses. If the present value of expected cash flows for a pool is greater than its carrying value, any previously established ALL is reversed and any remaining difference increases the accretable yield which will be taken into interest income over the remaining life of the loan pool. See Note 3 (Loans) for further information on changes in accretable yield.

The following table presents activity in the allowance for acquired impaired loan losses for the three months ended March 31, 2015 and 2014:



Allowance for Acquired Impaired Loan Losses	Three Months Ended March 31,
(In thousands)	2015		2014
Balance at beginning of the period	$	7,457	$	741
Charge-offs	—		—
Recoveries	—		—
Provision for loan losses	36		2,233
Balance at end of the period	$	7,493	$	2,974

Allowance for FDIC Acquired Loan Losses

The ALL on FDIC acquired nonimpaired loans is estimated similar to acquired loans as described above except any increase to the ALL and provision for loan losses is partially offset by an increase in the loss share receivable for the portion of the losses recoverable under the loss sharing agreements with the FDIC. As of March 31, 2015, the computed ALL was less than the remaining fair value discount, therefore, no ALL for FDIC acquired nonimpaired loans was recorded.

The following table presents activity in the allowance for FDIC acquired impaired loan losses for the three months ended March 31, 2015 and 2014:



Allowance for FDIC acquired Impaired Loan Losses		Three Months Ended March 31,
(In thousands)		2015			2014
Balance at beginning of the period		$	40,496		$	44,027
	Net provision/(recapture) of loan losses before benefit attributable to FDIC loss share agreements	4,225			7,879
	Net (benefit)/recapture attributable to FDIC loss share agreements	(4,227		)	(4,824		)
Net provision/(recapture) for loan losses		(2		)	3,055
Increase (decrease) in loss share receivable		4,227			4,824
Loans charged-off		(3,207		)	(1,936		)
Balance at end of the period		$	41,514		$	49,970

An acquired or FDIC acquired loan may be resolved either through receipt of payment (in full or in part) from the borrower, the sale of the loan to a third party, or foreclosure of the collateral. In the period of resolution of a nonimpaired loan, any remaining unamortized fair value adjustment is recognized as interest income. In the period of resolution of an impaired loan accounted for on an individual basis, the difference between the carrying amount of the loan and the proceeds received is recognized as a gain or loss within noninterest income. The majority of impaired loans are accounted for within a pool of loans which results in any difference between the proceeds received and the loan carrying amount being deferred as part of the carrying amount of the pool. The accretable amount of the pool remains unaffected from the resolution until the subsequent quarterly cash flow re-estimation. Favorable results from removal of the resolved loan from the pool increase the future accretable yield of the pool, while unfavorable results are recorded as impairment in the quarter of the cash flow re-estimation. Acquired or FDIC acquired impaired loans subject to modification are not removed from a pool even if those loans would otherwise be deemed TDRs as the pool, and not the individual loan, represents the unit of account.

Credit Quality

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.

Interest income recognized on impaired loans was $118.0 thousand for the three months ended March 31, 2015, compared to $103.0 thousand for the three months ended March 31, 2014. Interest income which would have been earned in accordance with the original terms was $0.9 million for the three months ended March 31, 2015, compared to $0.8 million for the three months ended March 31, 2014.

Loan impairment 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 a TDR, regardless of nonperforming status. Acquired and FDIC acquired impaired loans are not considered or reported as impaired loans. Nonimpaired acquired loans that are subsequently placed on nonaccrual status are reported as impaired loans and included in the Troubled Debt Restructurings section below. Acquired loans restructured after acquisition are not considered or reported as TDRs if the loans evidenced credit deterioration as of the date of acquisition and are accounted for in pools.

The following tables provide further detail on impaired loans individually evaluated for impairment and the associated ALL. Certain impaired loans do not have a related ALL as the valuation of these impaired loans exceeded the recorded investment.



As of March 31, 2015
Originated Loans				Unpaid				Average
		Recorded		Principal		Related		Recorded
(In thousands)		Investment		Balance		Allowance		Investment
Impaired loans with no related allowance
Commercial
	C&I	$	28,513	$	35,307	$	—	$	25,006
	CRE	9,343		15,478		—		9,634
	Construction	—		—		—		—
Consumer
	Installment	1,846		2,428		—		1,881
	Home equity line	977		1,222		—		987
	Credit card	21		21		—		23
	Residential mortgages	12,424		15,125		—		12,488
Subtotal		53,124		69,581		—		50,019
Impaired loans with a related allowance
Commercial
	C&I	7,279		7,350		10,042		5,984
	CRE	5,657		5,664		317		5,668
	Construction	—		—		—		—
Consumer
	Installment	25,036		25,100		1,005		24,181
	Home equity line	6,655		6,655		254		6,715
	Credit card	794		794		263		823
	Residential mortgages	12,398		12,487		1,416		12,414
Subtotal		57,819		58,050		13,297		55,785
	Total impaired loans	$	110,943	$	127,631	$	13,297	$	105,804

Note 1: These tables exclude loans fully charged off.

Note 2: The differences between the recorded investment and unpaid principal balance amounts represent partial charge offs.



As of December 31, 2014
Originated Loans				Unpaid				Average
		Recorded		Principal		Related		Recorded
(In thousands)		Investment		Balance		Allowance		Investment
Impaired loans with no related allowance
Commercial
	C&I	$	11,451	$	18,207	$	—	$	14,193
	CRE	16,874		22,696		—		18,027
	Construction	—		—		—		—
Consumer
	Installment	4,460		4,584		—		4,272
	Home equity line	1,723		1,754		—		1,792
	Credit card	16		16		—		32
	Residential mortgages	12,204		15,119		—		12,425
Subtotal		46,728		62,376		—		50,741
Impaired loans with a related allowance
Commercial
	C&I	308		344		72		326
	CRE	6,426		6,440		2,914		4,497
	Construction	—		—		—		—
Consumer
	Installment	20,445		21,024		1,178		19,513
	Home equity line	5,656		5,875		207		5,944
	Credit card	838		838		296		966
	Residential mortgages	13,047		13,158		1,283		13,121
Subtotal		46,720		47,679		5,950		44,367
	Total impaired loans	$	93,448	$	110,055	$	5,950	$	95,108

Note 1: These tables exclude loans fully charged off.

Note 2: The differences between the recorded investment and unpaid principal balance amounts represent partial charge offs.



As of March 31, 2014
Originated Loans				Unpaid				Average
		Recorded		Principal		Related		Recorded
(In thousands)		Investment		Balance		Allowance		Investment
Impaired loans with no related allowance
Commercial
	C&I	$	2,776	$	5,078	$	—	$	4,690
	CRE	21,777		20,050		—		20,196
	Construction	404		2,777		—		2,943
Consumer
	Installment	2,498		3,502		—		2,579
	Home equity line	997		1,309		—		1,004
	Credit card	42		42		—		50
	Residential mortgages	12,137		14,845		—		12,201
Subtotal		40,631		47,603		—		43,663
Impaired loans with a related allowance
Commercial
	C&I	4,367		9,022		2,866		7,406
	CRE	9,799		9,878		2,918		9,864
	Construction	—		—		—		—
Consumer
	Installment	23,320		23,409		1,006		23,548
	Home equity line	5,934		5,934		223		5,891
	Credit card	992		992		307		1,025
	Residential mortgages	14,061		14,161		1,241		14,067
Subtotal		58,473		63,396		8,561		61,801
	Total impaired loans	$	99,104	$	110,999	$	8,561	$	105,464

Note 1: These tables exclude loans fully charged off.

Note 2: The differences between the recorded investment and unpaid principal balance amounts represent partial charge offs.

Troubled Debt Restructurings

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. Acquired loans restructured after acquisition are not considered TDRs if the loans evidenced credit deterioration as of the Acquisition Date and are accounted for in pools.

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. 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 FNMA and FHLMC.

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. 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, 2015, December 31, 2014, and March 31, 2014.



			As of March 31, 2015
(Dollars in thousands)			Number of Loans	Recorded Investment		Unpaid Principal Balance
Originated loans
	Commercial
		C&I	47	$	16,923	$	23,666
		CRE	64	12,076		17,325
		Construction	31	—		—
		Total originated commercial	142	28,999		40,991
	Consumer
		Installment	1,186	26,882		27,528
		Home equity lines	276	7,632		7,877
		Credit card	230	815		815
		Residential mortgages	316	24,822		27,612
		Total originated consumer	2,008	60,151		63,832
Total originated loans			2,150	$	89,150	$	104,823
Acquired loans
	Commercial
		C&I	1	$	2	$	3
		CRE	3	2,453		2,635
		Total acquired commercial	4	2,455		2,638
	Consumer
		Installment	51	1,195		1,281
		Home equity lines	162	7,310		7,370
		Residential mortgages	30	2,186		2,403
		Total acquired consumer	243	10,691		11,054
Total acquired loans			247	$	13,146	$	13,692
FDIC acquired loans
	Commercial
		C&I	8	$	—	$	1,355
		CRE	24	23,895		39,596
		Construction	9	346		9,552
		Total FDIC acquired commercial	41	24,241		50,503
	Consumer
		Home equity lines	70	8,909		8,914
		Residential mortgages	1	185		185
		Total FDIC acquired consumer	71	9,094		9,099
Total FDIC acquired loans			112	$	33,335	$	59,602
Total loans
	Commercial
		C&I	56	$	16,925	$	25,024
		CRE	91	38,424		59,556
		Construction	40	346		9,552
		Total commercial	187	55,695		94,132
	Consumer
		Installment	1,237	28,077		28,809
		Home equity lines	508	23,851		24,161
		Credit card	230	815		815
		Residential mortgages	347	27,193		30,200
		Total consumer	2,322	79,936		83,985
Total loans			2,509	$	135,631	$	178,117

Note 1: The differences between the recorded investment and unpaid principal balance amounts represents partial charge offs.



			As of December 31, 2014
(Dollars in thousands)			Number of Loans	Recorded Investment		Unpaid Principal Balance
Originated loans
	Commercial
		C&I	41	$	7,123	$	13,887
		CRE	67	17,607		22,645
		Construction	31	—		—
		Total originated commercial	139	24,730		36,532
	Consumer
		Installment	1,205	24,905		25,608
		Home equity lines	270	7,379		7,629
		Credit card	238	854		854
		Residential mortgages	315	25,251		28,277
		Total originated consumer	2,028	58,389		62,368
Total originated loans			2,167	$	83,119	$	98,900
Acquired loans
	Commercial
		C&I	2	18		19
		CRE	3	2,542		2,595
		Total acquired commercial	5	2,560		2,614
	Consumer
		Installment	40	975		1,054
		Home equity lines	145	6,932		6,983
		Residential mortgages	26	1,633		1,823
		Total acquired consumer	211	9,540		9,860
Total acquired loans			216	$	12,100	$	12,474
FDIC acquired loans
	Commercial
		C&I	8	$	177	$	1,589
		CRE	24	25,499		42,226
		Construction	9	339		9,552
		Total FDIC acquired commercial	41	26,015		53,367
	Consumer
		Home equity lines	68	8,890		8,901
		Residential Mortgages	2	334		334
		Total FDIC acquired consumer	70	9,224		9,235
Total FDIC acquired loans			111	$	35,239	$	62,602
Total loans
	Commercial
		C&I	51	$	7,318	$	15,495
		CRE	94	45,648		67,466
		Construction	40	339		9,552
		Total commercial	185	53,305		92,513
	Consumer
		Installment	1,245	25,880		26,662
		Home equity lines	483	23,201		23,513
		Credit card	238	854		854
		Residential mortgages	343	27,218		30,434
		Total consumer	2,309	77,153		81,463
Total loans			2,494	$	130,458	$	173,976

Note 1: The differences between the recorded investment and unpaid principal balance amounts represent partial charge offs.



			As of March 31, 2014
(Dollars in thousands)			Number of Loans	Recorded Investment		Unpaid Principal Balance
Originated loans
	Commercial
		C&I	40	$	5,588	$	12,546
		CRE	57	16,432		17,079
		Construction	32	2,769		2,777
		Total originated commercial	129	24,789		32,402
	Consumer
		Installment	1,434	25,818		26,911
		Home equity lines	244	6,931		7,243
		Credit card	278	1,034		1,034
		Residential mortgages	320	26,199		29,006
		Total originated consumer	2,276	59,982		64,194
Total originated loans			2,405	$	84,771	$	96,596
Acquired loans
	Commercial
		C&I	1	5		5
		CRE	1	1,695		1,687
		Total acquired commercial	2	1,700		1,692
	Consumer
		Installment	23	797		828
		Home equity lines	40	1,926		1,953
		Residential mortgages	11	758		864
		Total acquired consumer	74	3,481		3,645
Total acquired loans			76	$	5,181	$	5,337
FDIC acquired loans
	Commercial
		C&I	4	$	677	$	2,232
		CRE	25	39,939		56,485
		Construction	10	2,560		21,340
		Total FDIC acquired commercial	39	43,176		80,057
	Consumer
		Home equity lines	52	6,269		6,269
		Residential mortgages	2	339		339
		Total FDIC acquired consumer	54	6,608		6,608
Total FDIC acquired loans			93	$	49,784	$	86,665
Total loans
	Commercial
		C&I	45	$	6,270	$	14,783
		CRE	83	58,066		75,251
		Construction	42	5,329		24,117
		Total commercial	170	69,665		114,151
	Consumer
		Installment	1,457	26,615		27,739
		Home equity lines	336	15,126		15,465
		Credit card	278	1,034		1,034
		Residential mortgages	333	27,296		30,209
		Total consumer	2,404	70,071		74,447
Total loans			2,574	$	139,736	$	188,598

Note 1: 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 three months ended March 31, 2015 and 2014 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 three months ended March 31, 2015 and 2014 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 three months ended March 31, 2015 and 2014 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, 2015, December 31, 2014, and March 31, 2014, the Corporation had $6.1 million, $0.2 million, and $0.4 million, respectively, 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, 2015, December 31, 2014, and March 31, 2014, including TDRs that continue to accrue interest and TDRs included in nonperforming assets.



As of March 31, 2015
	Accruing TDRs						Nonaccruing TDRs						Total		Total
(In thousands)	Current		Delinquent		Total		Current		Delinquent		Total		TDRs		Allowance
Originated loans
Commercial
C&I	$	16,558	$	—	$	16,558	$	—	$	365	$	365	$	16,923	$	124
CRE	6,031		1,493		7,524		3,724		828		4,552		12,076		71
Construction	—		—		—		—		—		—		—		—
Total originated commercial	22,589		1,493		24,082		3,724		1,193		4,917		28,999		195
Consumer
Installment	24,701		409		25,110		1,528		244		1,772		26,882		1,005
Home equity lines	6,680		113		6,793		811		28		839		7,632		254
Credit card	721		77		798		—		17		17		815		263
Residential mortgages	14,299		2,286		16,585		5,020		3,217		8,237		24,822		1,416
Total originated consumer	46,401		2,885		49,286		7,359		3,506		10,865		60,151		2,938
Total originated TDRs	$	68,990	$	4,378	$	73,368	$	11,083	$	4,699	$	15,782	$	89,150	$	3,133
Acquired loans
Commercial
C&I	—		—		—		2		—		2		2		2
CRE	—		—		—		954		1,499		2,453		2,453		135
Total acquired commercial	—		—		—		956		1,499		2,455		2,455		137
Consumer
Installment	1,139		33		1,172		23		—		23		1,195		48
Home equity lines	6,610		564		7,174		136		—		136		7,310		—
Residential mortgages	1,335		—		1,335		616		235		851		2,186		—
Total acquired consumer	9,084		597		9,681		775		235		1,010		10,691		48
Total acquired TDRs	$	9,084	$	597	$	9,681	$	1,731	$	1,734	$	3,465	$	13,146	$	185
FDIC acquired loans
Commercial
C&I	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
CRE	—		23,895		23,895		—		—		—		23,895		2,026
Construction	—		346		346		—		—		—		346		293
Total FDIC acquired commercial	—		24,241		24,241		—		—		—		24,241		2,319
Consumer
Home equity lines	7,703		939		8,642		267		—		267		8,909		24
Residential mortgages	185		—		185		—		—		—		185		—
Total FDIC acquired consumer	7,888		939		8,827		267		—		267		9,094		24
Total FDIC acquired TDRs	$	7,888	$	25,180	$	33,068	$	267	$	—	$	267	$	33,335	$	2,343
Total loans
Commercial
C&I	$	16,558	$	—	$	16,558	$	2	$	365	$	367	$	16,925	$	126
CRE	6,031		25,388		31,419		4,678		2,327		7,005		38,424		2,232
Construction	—		346		346		—		—		—		346		293
Total commercial	22,589		25,734		48,323		4,680		2,692		7,372		55,695		2,651
Consumer
Installment	25,840		442		26,282		1,551		244		1,795		28,077		1,053
Home equity lines	20,993		1,616		22,609		1,214		28		1,242		23,851		278
Credit card	721		77		798		—		17		17		815		263
Residential mortgages	15,819		2,286		18,105		5,636		3,452		9,088		27,193		1,416
Total consumer	63,373		4,421		67,794		8,401		3,741		12,142		79,936		3,010
Total TDRs	$	85,962	$	30,155	$	116,117	$	13,081	$	6,433	$	19,514	$	135,631	$	5,661



As of December 31, 2014
	Accruing TDRs						Nonaccruing TDRs						Total		Total
(In thousands)	Current		Delinquent		Total		Current		Delinquent		Total		TDRs		Allowance
Originated loans
Commercial
C&I	$	6,740	$	—	$	6,740	$	—	$	383	$	383	$	7,123	$	72
CRE	12,885		952		13,837		394		3,376		3,770		17,607		159
Construction	—		—		—		—		—		—		—		—
Total originated commercial	19,625		952		20,577		394		3,759		4,153		24,730		231
Consumer
Installment	22,254		726		22,980		1,663		262		1,925		24,905		1,178
Home equity lines	6,239		269		6,508		871		—		871		7,379		207
Credit card	775		60		835		15		4		19		854		296
Residential mortgages	13,440		3,538		16,978		5,006		3,267		8,273		25,251		1,283
Total originated consumer	42,708		4,593		47,301		7,555		3,533		11,088		58,389		2,964
Total originated TDRs	$	62,333	$	5,545	$	67,878	$	7,949	$	7,292	$	15,241	$	83,119	$	3,195
Acquired loans
Commercial
C&I	$	15	$	—	$	15	$	3	$	—	$	3	$	18	$	18
CRE	—		—		—		978		1,564		2,542		2,542		134
Total acquired commercial	15		—		15		981		1,564		2,545		2,560		152
Consumer
Installment	841		87		928		24		23		47		975		65
Home equity lines	6,186		607		6,793		139		—		139		6,932		9
Residential mortgages	868		—		868		470		295		765		1,633		2
Total acquired consumer	7,895		694		8,589		633		318		951		9,540		76
Total acquired TDRs	$	7,910	$	694	$	8,604	$	1,614	$	1,882	$	3,496	$	12,100	$	228
FDIC acquired loans
Commercial
C&I	$	—	$	177	$	177	$	—	$	—	$	—	$	177	$	—
CRE	5,123		20,376		25,499		—		—		—		25,499		2,879
Construction	339		—		339		—		—		—		339		295
Total FDIC acquired commercial	5,462		20,553		26,015		—		—		—		26,015		3,174
Consumer
Home equity lines	8,561		—		8,561		329		—		329		8,890		27
Residential mortgages	334		—		334		—		—		—		334		21
Total FDIC acquired consumer	8,895		—		8,895		329		—		329		9,224		48
Total FDIC acquired TDRs	$	14,357	$	20,553	$	34,910	$	329	$	—	$	329	$	35,239	$	3,222

Commercial
C&I	$	6,755	$	177	$	6,932	$	3	$	383	$	386	$	7,318	$	90
CRE	18,008		21,328		39,336		1,372		4,940		6,312		45,648		3,172
Construction	339		—		339		—		—		—		339		295
Total commercial	25,102		21,505		46,607		1,375		5,323		6,698		53,305		3,557
Consumer
Installment	23,095		813		23,908		1,687		285		1,972		25,880		1,243
Home equity lines	20,986		876		21,862		1,339		—		1,339		23,201		243
Credit card	775		60		835		15		4		19		854		296
Residential mortgages	14,642		3,538		18,180		5,476		3,562		9,038		27,218		1,306
Total consumer	59,498		5,287		64,785		8,517		3,851		12,368		77,153		3,088
Total TDRs	$	84,600	$	26,792	$	111,392	$	9,892	$	9,174	$	19,066	$	130,458	$	6,645



As of March 31, 2014
	Accruing TDRs						Nonaccruing TDRs						Total		Total
(In thousands)	Current		Delinquent		Total		Current		Delinquent		Total		TDRs		Allowance
Originated loans
Commercial
C&I	$	1,779	$	—	$	1,779	$	541	$	3,268	$	3,809	$	5,588	$	2,265
CRE	9,254		1,884		11,138		2,124		3,170		5,294		16,432		37
Construction	2,363		350		2,713		56		—		56		2,769		—
Total originated commercial	13,396		2,234		15,630		2,721		6,438		9,159		24,789		2,302
Consumer
Installment	22,757		480		23,237		2,352		229		2,581		25,818		1,006
Home equity lines	5,571		150		5,721		1,210		—		1,210		6,931		223
Credit card	930		95		1,025		—		9		9		1,034		307
Residential mortgages	14,749		2,876		17,625		4,968		3,606		8,574		26,199		1,241
Total originated consumer	44,007		3,601		47,608		8,530		3,844		12,374		59,982		2,777
Total originated TDRs	$	57,403	$	5,835	$	63,238	$	11,251	$	10,282	$	21,533	$	84,771	$	5,079
Acquired loans
Commercial
C&I	$	—	$	—	$	—	$	5	$	—	$	5	$	5	$	—
CRE	1,695		—		1,695		—		—		—		1,695		—
Total acquired commercial	1,695		—		1,695		5		—		5		1,700		—
Consumer
Installment	707		77		784		—		13		13		797		—
Home equity lines	1,322		494		1,816		110		—		110		1,926		—
Residential mortgages	758		—		758		—		—		—		758		—
Total acquired consumer	2,787		571		3,358		110		13		123		3,481		—
Total acquired TDRs	$	4,482	$	571	$	5,053	$	115	$	13	$	128	$	5,181	$	—
FDIC acquired loans
Commercial
C&I	$	300	$	377	$	677	$	—	$	—	$	—	$	677	$	12
CRE	5,035		34,904		39,939		—		—		—		39,939		3,915
Construction	682		1,878		2,560		—		—		—		2,560		68
Total FDIC acquired commercial	6,017		37,159		43,176		—		—		—		43,176		3,995
Consumer
Home equity lines	5,793		140		5,933		336		—		336		6,269		—
Residential mortgages	339		—		339		—		—		—		339		—
Total FDIC acquired consumer	6,132		140		6,272		336		—		336		6,608		—
Total FDIC acquired TDRs	$	12,149	$	37,299	$	49,448	$	336	$	—	$	336	$	49,784	$	3,995
Total loans
Commercial
C&I	$	2,079	$	377	$	2,456	$	546	$	3,268	$	3,814	$	6,270	$	2,277
CRE	15,984		36,788		52,772		2,124		3,170		5,294		58,066		3,952
Construction	3,045		2,228		5,273		56		—		56		5,329		68
Total commercial	21,108		39,393		60,501		2,726		6,438		9,164		69,665		6,297
Consumer
Installment	23,464		557		24,021		2,352		242		2,594		26,615		1,006
Home equity lines	12,686		784		13,470		1,656		—		1,656		15,126		223
Credit card	930		95		1,025		—		9		9		1,034		307
Residential mortgages	15,846		2,876		18,722		4,968		3,606		8,574		27,296		1,241
Total consumer	52,926		4,312		57,238		8,976		3,857		12,833		70,071		2,777
Total TDRs	$	74,034	$	43,705	$	117,739	$	11,702	$	10,295	$	21,997	$	139,736	$	9,074

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 ALL may be increased, adjustments may be made in the allocation of the ALL, or partial charge-offs may be taken to further write-down the carrying value of the loan.

On an ongoing basis, the Corporation monitors the performance of modified loans to their restructured terms. In the event of a subsequent default, the ALL continues to be reassessed on the basis of an individual evaluation of the loan.

The following tables provide the number of loans modified in a TDR within the previous 12 months that subsequently defaulted during the three months ended March 31, 2015 and March 31, 2014, as well as the amount defaulted in these restructured loans.



	As of March 31, 2015
(Dollars in thousands)	Number of Loans	Amount Defaulted
Originated loans
Commercial
C&I	—	$	—
CRE	—	—
Construction	—	—
Total originated commercial	—	—
Consumer
Installment	2	—
Home equity lines	—	—
Credit card	2	17
Residential mortgages	—	—
Total originated consumer	4	$	17
FDIC acquired loans
Commercial
C&I	1	$	427
CRE	—	—
Construction	—	—
Total FDIC acquired commercial	1	$	427
Acquired loans
Commercial
C&I	1	$	55
CRE	—	—
Construction	—	—
Total acquired commercial	1	$	55
Total loans
Commercial
C&I	2	$	482
CRE	—	—
Construction	—	—
Total commercial	2	482
Consumer
Installment	2	—
Home equity lines	—	—
Credit card	2	17
Residential mortgages	—	—
Total consumer	4	17
Total	6	$	499



	As of March 31, 2014
(Dollars in thousands)	Number of Loans	Recorded Investment
Originated loans
Commercial
C&I	1	$	1,557
CRE	1	376
Construction	—	—
Total originated commercial	2	1,933
Consumer
Installment	—	—
Home equity lines	—	—
Credit card	3	4,839
Residential mortgages	—	—
Total originated consumer	3	$	4,839
FDIC acquired loans
Commercial
C&I	—	$	—
CRE	—	—
Construction	—	—
Total FDIC acquired commercial	—	$	—
Total loans
Commercial
C&I	1	$	1,557
CRE	1	376
Construction	—	—
Total commercial	2	1,933
Consumer
Installment	—	—
Home equity lines	—	—
Credit card	3	4,839
Residential mortgages	—	—
Total consumer	3	4,839
Total	5	$	6,772