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 and six months ended June 30, 2015 and 2014, as well as the corresponding recorded investment in originated loans at the end of the period:



As of June 30, 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		$	39,838		$	8,813		$	1,752		$	629		$	13,358		$	19,433		$	7,801		$	5,921		$	97,545
Charge-offs		(3,247		)	(408		)	—			—			(5,090		)	(971		)	(1,209		)	(373		)	(11,298		)
Recoveries		453			1			39			3			2,844			839			358			89			4,626
Provision for loan losses		5,832			94			(251		)	(13		)	3,798			738			868			(257		)	10,809
Allowance for originated loan losses, ending balance		$	42,876		$	8,500		$	1,540		$	619		$	14,910		$	20,039		$	7,818		$	5,380		$	101,682
Six 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		(3,757		)	(623		)	—			—			(10,145		)	(1,882		)	(2,661		)	(797		)	(19,865		)
Recoveries		794			1			40			7			5,864			1,452			724			124			9,006
Provision for loan losses		8,464			(1,370		)	(702		)	(62		)	6,273			1,145			1,789			1,308			16,845
Allowance for originated loan losses, ending balance		$	42,876		$	8,500		$	1,540		$	619		$	14,910		$	20,039		$	7,818		$	5,380		$	101,682

Ending allowance for originated loan losses balance attributable to loans:
	Individually evaluated for impairment	$	9,117		$	151		$	—		$	—		$	1,001		$	217		$	250		$	890		$	11,626
	Collectively evaluated for impairment	33,759			8,349			1,540			619			13,909			19,822			7,568			4,490			90,056
Total ending allowance for originated loan losses balance		$	42,876		$	8,500		$	1,540		$	619		$	14,910		$	20,039		$	7,818		$	5,380		$	101,682
Originated loans:
	Originated loans individually evaluated for impairment	$	45,969		$	12,072		$	—		$	1,162		$	31,927		$	7,421		$	787		$	24,697		$	124,035
	Originated loans collectively evaluated for impairment	5,425,394			2,126,300			586,895			435,540			2,688,132			1,173,381			167,789			628,446			13,231,877
Total ending originated loan balance		$	5,471,363		$	2,138,372		$	586,895		$	436,702		$	2,720,059		$	1,180,802		$	168,576		$	653,143		$	13,355,912



As of June 30, 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		$	40,175		$	13,385		$	1,470		$	1,027		$	11,604		$	13,160		$	6,851		$	4,444		$	92,116
Charge-offs		(361		)	(2,696		)	—			—			(4,076		)	(1,870		)	(1,311		)	(834		)	(11,148		)
Recoveries		372			30			2			372			2,741			966			439			67			4,989
Provision for loan losses		3,070			(1,989		)	(149		)	(371		)	1,974			1,647			1,349			462			5,993
Allowance for originated loan losses, ending balance		$	43,256		$	8,730		$	1,323		$	1,028		$	12,243		$	13,903		$	7,328		$	4,139		$	91,950
Six 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		(5,435		)	(2,775		)	—			—			(8,660		)	(3,279		)	(2,766		)	(1,393		)	(24,308		)
Recoveries		1,369			34			30			372			5,490			1,870			857			105			10,127
Provision for loan losses		4,341			(794		)	(1,517		)	(425		)	3,478			2,412			1,497			655			9,647
Allowance for originated loan losses, ending balance		$	43,256		$	8,730		$	1,323		$	1,028		$	12,243		$	13,903		$	7,328		$	4,139		$	91,950

Ending allowance for originated loan losses balance attributable to loans:
	Individually evaluated for impairment	$	5,092		$	112		$	9		$	—		$	1,008		$	201		$	361		$	1,019		$	7,802
	Collectively evaluated for impairment	38,164			8,618			1,314			1,028			11,235			13,702			6,967			3,120			84,148
Total ending allowance for originated loan losses balance		$	43,256		$	8,730		$	1,323		$	1,028		$	12,243		$	13,903		$	7,328		$	4,139		$	91,950
Originated loans:
	Originated loans individually evaluated for impairment	$	10,404		$	25,484		$	53		$	—		$	24,394		$	6,956		$	979		$	26,297		$	94,567
	Originated loans collectively evaluated for impairment	4,847,211			2,072,534			409,813			319,795			2,027,193			991,223			150,988			553,869			11,372,626
Total ending originated loan balance		$	4,857,615		$	2,098,018		$	409,866		$	319,795		$	2,051,587		$	998,179		$	151,967		$	580,166		$	11,467,193

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 June 30, 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 and six months ended June 30, 2015, provision for loan losses, equal to net charge-offs, of $1.6 million and $3.8 million, respectively, were 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 and six months ended June 30, 2015 and 2014:



Allowance for Acquired Impaired Loan Losses	Three Months Ended June 30,					Six Months Ended June 30,
(In thousands)	2015			2014		2015			2014
Balance at beginning of the period	$	7,493		$	2,974	$	7,457		$	741
Charge-offs	—			—		—			—
Recoveries	—			—		—			—
Provision/(recapture) for loan losses	(2,543		)	2,003		(2,507		)	4,236
Balance at end of the period	$	4,950		$	4,977	$	4,950		$	4,977

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 June 30, 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 and six months ended June 30, 2015 and 2014:



Allowance for FDIC acquired Impaired Loan Losses		Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)		2015			2014			2015			2014
Balance at beginning of the period		$	41,514		$	49,970		$	40,496		$	44,027
	Net provision/(recapture) of loan losses before benefit attributable to FDIC loss share agreements	928			(451		)	5,153			7,428
	Net (benefit)/recapture attributable to FDIC loss share agreements	(1,819		)	3,897			(6,046		)	(927		)
Net (recapture)/provision for loan losses		(891		)	3,446			(893		)	6,501
Increase/(decrease) in loss share receivable		1,819			(3,897		)	6,046			927
Loans charged-off		(815		)	(4,410		)	(4,022		)	(6,346		)
Balance at end of the period		$	41,627		$	45,109		$	41,627		$	45,109

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 and $236.0 thousand for the three and six months ended June 30, 2015, respectively, compared to $20.0 thousand and $123.0 thousand for the three and six months ended June 30, 2014, respectively. Interest income which would have been earned in accordance with the original terms was $0.9 million and $1.8 million for the three and six months ended June 30, 2015, respectively, compared to $0.5 million and $1.3 million for the three and six months ended June 30, 2014, respectively.

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 June 30, 2015
Originated Loans				Unpaid				Average
		Recorded		Principal		Related		Recorded
(In thousands)		Investment		Balance		Allowance		Investment
Impaired loans with no related allowance
Commercial
	C&I	$	28,076	$	37,358	$	—	$	27,238
	CRE	11,482		17,585		—		12,983
	Construction	—		—		—		—
	Leases	1,162		1,162		—		598
Consumer
	Installment	1,678		2,183		—		1,753
	Home equity line	884		1,132		—		906
	Credit card	19		19		—		26
	Residential mortgages	12,047		14,700		—		12,146
Subtotal		55,348		74,139		—		55,650
Impaired loans with a related allowance
Commercial
	C&I	17,893		18,062		9,117		7,199
	CRE	590		593		151		600
	Construction	—		—		—		—
	Leases	—		—		—		—
Consumer
	Installment	30,249		30,302		1,001		25,722
	Home equity line	6,537		6,537		217		6,684
	Credit card	768		768		250		823
	Residential mortgages	12,650		12,739		890		12,675
Subtotal		68,687		69,001		11,626		53,703
	Total impaired loans	$	124,035	$	143,140	$	11,626	$	109,353

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 June 30, 2014
Originated Loans				Unpaid				Average
		Recorded		Principal		Related		Recorded
(In thousands)		Investment		Balance		Allowance		Investment
Impaired loans with no related allowance
Commercial
	C&I	$	2,538	$	4,980	$	—	$	3,543
	CRE	20,635		26,026		—		22,249
	Construction	53		76		—		256
Consumer
	Installment	4,510		4,620		—		4,636
	Home equity line	1,041		1,047		—		1,067
	Credit card	34		34		—		48
	Residential mortgages	12,729		15,748		—		12,828
Subtotal		41,540		52,531		—		44,627
Impaired loans with a related allowance
Commercial
	C&I	7,866		11,562		5,092		8,071
	CRE	4,849		4,851		112		829
	Construction	—		—		9		—
Consumer
	Installment	19,884		20,673		1,008		20,498
	Home equity line	5,915		6,145		201		5,995
	Credit card	945		945		361		1,019
	Residential mortgages	13,568		13,678		1,019		13,612
Subtotal		53,027		57,854		7,802		50,024
	Total impaired loans	$	94,567	$	110,385	$	7,802	$	94,651

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 June 30, 2015, December 31, 2014, and June 30, 2014.



			As of June 30, 2015
(Dollars in thousands)			Number of Loans	Recorded Investment		Unpaid Principal Balance
Originated loans
	Commercial
		C&I	56	$	29,454	$	36,538
		CRE	69	10,362		15,681
		Construction	31	—		—
		Total originated commercial	156	39,816		52,219
	Consumer
		Installment	1,215	31,927		32,485
		Home equity lines	271	7,421		7,669
		Credit card	231	787		787
		Residential mortgages	316	24,697		27,439
		Total originated consumer	2,033	64,832		68,380
Total originated loans			2,189	$	104,648	$	120,599
Acquired loans
	Commercial
		C&I	2	$	—	$	55
		CRE	3	930		1,018
		Total acquired commercial	5	930		1,073
	Consumer
		Installment	50	1,144		1,227
		Home equity lines	174	7,138		7,205
		Residential mortgages	31	2,150		2,386
		Total acquired consumer	255	10,432		10,818
Total acquired loans			260	$	11,362	$	11,891
FDIC acquired loans
	Commercial
		C&I	8	$	—	$	1,299
		CRE	24	11,704		27,933
		Construction	9	525		9,542
		Total FDIC acquired commercial	41	12,229		38,774
	Consumer
		Home equity lines	77	10,563		10,739
		Residential mortgages	1	184		184
		Total FDIC acquired consumer	78	10,747		10,923
Total FDIC acquired loans			119	$	22,976	$	49,697
Total loans
	Commercial
		C&I	66	$	29,454	$	37,892
		CRE	96	22,996		44,632
		Construction	40	525		9,542
		Total commercial	202	52,975		92,066
	Consumer
		Installment	1,265	33,071		33,712
		Home equity lines	522	25,122		25,613
		Credit card	231	787		787
		Residential mortgages	348	27,031		30,009
		Total consumer	2,366	86,011		90,121
Total loans			2,568	$	138,986	$	182,187

Note 1: For originated loans, the differences between the recorded investment and unpaid principal balance amounts represent partial charge offs.

Note 2: For acquired and FDIC acquired loans, the differences between the recorded investment and unpaid principal balance amounts represent partial charge offs and remaining purchase discount.



			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: For originated loans, the differences between the recorded investment and unpaid principal balance amounts represent partial charge offs.

Note 2: For acquired and FDIC acquired loans, the differences between the recorded investment and unpaid principal balance amounts represent partial charge offs and remaining purchase discount.



			As of June 30, 2014
(Dollars in thousands)			Number of Loans	Recorded Investment		Unpaid Principal Balance
Originated loans
	Commercial
		C&I	41	$	7,062	$	13,200
		CRE	60	21,407		25,567
		Construction	31	53		76
		Total originated commercial	132	28,522		38,843
	Consumer
		Installment	1,350	24,394		25,293
		Home equity lines	260	6,956		7,192
		Credit card	253	979		979
		Residential mortgages	326	26,297		29,426
		Total originated consumer	2,189	58,626		62,890
Total originated loans			2,321	$	87,148	$	101,733
Acquired loans
	Commercial
		C&I	1	4		4
		CRE	1	1,661		1,661
		Total acquired commercial	2	1,665		1,665
	Consumer
		Installment	30	979		1,032
		Home equity lines	90	4,710		4,750
		Residential mortgages	21	1,461		1,635
		Total acquired consumer	141	7,150		7,417
Total acquired loans			143	$	8,815	$	9,082
FDIC acquired loans
	Commercial
		C&I	6	$	177	$	1,070
		CRE	24	37,385		54,480
		Construction	10	2,605		21,331
		Total FDIC acquired commercial	40	40,167		76,881
	Consumer
		Home equity lines	62	8,489		8,489
		Residential mortgages	2	337		337
		Total FDIC acquired consumer	64	8,826		8,826
Total FDIC acquired loans			104	$	48,993	$	85,707
Total loans
	Commercial
		C&I	48	$	7,243	$	14,274
		CRE	85	60,453		81,708
		Construction	41	2,658		21,407
		Total commercial	174	70,354		117,389
	Consumer
		Installment	1,380	25,373		26,325
		Home equity lines	412	20,155		20,431
		Credit card	253	979		979
		Residential mortgages	349	28,095		31,398
		Total consumer	2,394	74,602		79,133
Total loans			2,568	$	144,956	$	196,522

Note 1: For originated loans, the differences between the recorded investment and unpaid principal balance amounts represent partial charge offs.

Note 2: For acquired and FDIC acquired loans, the differences between the recorded investment and unpaid principal balance amounts represent partial charge offs and remaining purchase discount.

The pre-modification and post-modification outstanding recorded investments of loans modified as TDRs during the three and six months ended June 30, 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 and six months ended June 30, 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 and six months ended June 30, 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 June 30, 2015, December 31, 2014, and June 30, 2014, the Corporation had $3.7 million, $0.2 million, and $1.6 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 June 30, 2015, December 31, 2014, and June 30, 2014, including TDRs that continue to accrue interest and TDRs included in nonperforming assets.



As of June 30, 2015
	Accruing TDRs						Nonaccruing TDRs						Total		Total
(In thousands)	Current		Delinquent		Total		Current		Delinquent		Total		TDRs		Allowance
Originated loans
Commercial
C&I	$	17,346	$	—	$	17,346	$	9,260	$	2,848	$	12,108	$	29,454	$	2,893
CRE	5,968		—		5,968		1,598		2,796		4,394		10,362		63
Construction	—		—		—		—		—		—		—		—
Total originated commercial	23,314		—		23,314		10,858		5,644		16,502		39,816		2,956
Consumer
Installment	29,715		603		30,318		1,390		219		1,609		31,927		1,001
Home equity lines	6,611		107		6,718		557		146		703		7,421		217
Credit card	684		100		784		—		3		3		787		250
Residential mortgages	13,925		2,105		16,030		4,957		3,710		8,667		24,697		890
Total originated consumer	50,935		2,915		53,850		6,904		4,078		10,982		64,832		2,358
Total originated TDRs	$	74,249	$	2,915	$	77,164	$	17,762	$	9,722	$	27,484	$	104,648	$	5,314
Acquired loans
Commercial
C&I	—		—		—		—		—		—		—		—
CRE	—		—		—		930		—		930		930		98
Total acquired commercial	—		—		—		930		—		930		930		98
Consumer
Installment	1,082		47		1,129		15		—		15		1,144		44
Home equity lines	6,387		618		7,005		133		—		133		7,138		—
Residential mortgages	1,313		—		1,313		615		222		837		2,150		—
Total acquired consumer	8,782		665		9,447		763		222		985		10,432		44
Total acquired TDRs	$	8,782	$	665	$	9,447	$	1,693	$	222	$	1,915	$	11,362	$	142
FDIC acquired loans
Commercial
C&I	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
CRE	—		11,704		11,704		—		—		—		11,704		2,393
Construction	525		—		525		—		—		—		525		96
Total FDIC acquired commercial	525		11,704		12,229		—		—		—		12,229		2,489
Consumer
Home equity lines	9,505		89		9,594		143		826		969		10,563		23
Residential mortgages	184		—		184		—		—		—		184		—
Total FDIC acquired consumer	9,689		89		9,778		143		826		969		10,747		23
Total FDIC acquired TDRs	$	10,214	$	11,793	$	22,007	$	143	$	826	$	969	$	22,976	$	2,512
Total loans
Commercial
C&I	$	17,346	$	—	$	17,346	$	9,260	$	2,848	$	12,108	$	29,454	$	2,893
CRE	5,968		11,704		17,672		2,528		2,796		5,324		22,996		2,554
Construction	525		—		525		—		—		—		525		96
Total commercial	23,839		11,704		35,543		11,788		5,644		17,432		52,975		5,543
Consumer
Installment	30,797		650		31,447		1,405		219		1,624		33,071		1,045
Home equity lines	22,503		814		23,317		833		972		1,805		25,122		240
Credit card	684		100		784		—		3		3		787		250
Residential mortgages	15,422		2,105		17,527		5,572		3,932		9,504		27,031		890
Total consumer	69,406		3,669		73,075		7,810		5,126		12,936		86,011		2,425
Total TDRs	$	93,245	$	15,373	$	108,618	$	19,598	$	10,770	$	30,368	$	138,986	$	7,968



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
Total Loans
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 June 30, 2014
	Accruing TDRs						Nonaccruing TDRs						Total		Total
(In thousands)	Current		Delinquent		Total		Current		Delinquent		Total		TDRs		Allowance
Originated loans
Commercial
C&I	$	1,659	$	—	$	1,659	$	3,375	$	2,028	$	5,403	$	7,062	$	2,443
CRE	15,387		1,529		16,916		1,419		3,072		4,491		21,407		93
Construction	—		—		—		53		—		53		53		9
Total originated commercial	17,046		1,529		18,575		4,847		5,100		9,947		28,522		2,545
Consumer
Installment	21,404		694		22,098		2,074		222		2,296		24,394		1,008
Home equity lines	5,767		188		5,955		1,001		—		1,001		6,956		201
Credit card	857		86		943		—		36		36		979		361
Residential mortgages	15,256		2,349		17,605		5,335		3,357		8,692		26,297		1,019
Total originated consumer	43,284		3,317		46,601		8,410		3,615		12,025		58,626		2,589
Total originated TDRs	$	60,330	$	4,846	$	65,176	$	13,257	$	8,715	$	21,972	$	87,148	$	5,134
Acquired loans
Commercial
C&I	$	—	$	—	$	—	$	4	$	—	$	4	$	4	$	4
CRE	1,661		—		1,661		—		—		—		1,661		182
Total acquired commercial	1,661		—		1,661		4		—		4		1,665		186
Consumer
Installment	702		250		952		27		—		27		979		14
Home equity lines	4,026		576		4,602		108		—		108		4,710		—
Residential mortgages	670		—		670		764		27		791		1,461		—
Total acquired consumer	5,398		826		6,224		899		27		926		7,150		14
Total acquired TDRs	$	7,059	$	826	$	7,885	$	903	$	27	$	930	$	8,815	$	200
FDIC acquired loans
Commercial
C&I	$	—	$	177	$	177	$	—	$	—	$	—	$	177	$	—
CRE	4,909		32,476		37,385		—		—		—		37,385		1,129
Construction	666		1,939		2,605		—		—		—		2,605		68
Total FDIC acquired commercial	5,575		34,592		40,167		—		—		—		40,167		1,197
Consumer
Home equity lines	8,038		115		8,153		336		—		336		8,489		—
Residential mortgages	337		—		337		—		—		—		337		—
Total FDIC acquired consumer	8,375		115		8,490		336		—		336		8,826		—
Total FDIC acquired TDRs	$	13,950	$	34,707	$	48,657	$	336	$	—	$	336	$	48,993	$	1,197
Total loans
Commercial
C&I	$	1,659	$	177	$	1,836	$	3,379	$	2,028	$	5,407	$	7,243	$	2,447
CRE	21,957		34,005		55,962		1,419		3,072		4,491		60,453		1,404
Construction	666		1,939		2,605		53		—		53		2,658		77
Total commercial	24,282		36,121		60,403		4,851		5,100		9,951		70,354		3,928
Consumer
Installment	22,106		944		23,050		2,101		222		2,323		25,373		1,022
Home equity lines	17,831		879		18,710		1,445		—		1,445		20,155		201
Credit card	857		86		943		—		36		36		979		361
Residential mortgages	16,263		2,349		18,612		6,099		3,384		9,483		28,095		1,019
Total consumer	57,057		4,258		61,315		9,645		3,642		13,287		74,602		2,603
Total TDRs	$	81,339	$	40,379	$	121,718	$	14,496	$	8,742	$	23,238	$	144,956	$	6,531

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. 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 June 30, 2015 and June 30, 2014, as well as the amount defaulted in these restructured loans.



	As of June 30, 2015
(Dollars in thousands)	Number of Loans	Amount Defaulted
Originated loans
Commercial
C&I	—	$	—
CRE	—	—
Construction	—	—
Total originated commercial	—	—
Consumer
Installment	1	6
Home equity lines	—	—
Credit card	1	1
Residential mortgages	1	368
Total originated consumer	3	$	375
FDIC acquired loans
Commercial
C&I	—	$	—
CRE	—	—
Construction	—	—
Total FDIC acquired commercial	—	$	—
Acquired loans
Commercial
C&I	—	$	—
CRE	—	—
Construction	—	—
Total acquired commercial	—	$	—
Consumer
Installment	1	33
Home equity lines	—	—
Residential mortgages	—	—
Total acquired consumer	1	$	33
Total loans
Commercial
C&I	—	$	—
CRE	—	—
Construction	—	—
Total commercial	—	—
Consumer
Installment	2	39
Home equity lines	—	—
Credit card	1	1
Residential mortgages	1	368
Total consumer	4	408
Total	4	$	408



	As of June 30, 2014
(Dollars in thousands)	Number of Loans	Recorded Investment
Originated loans
Commercial
C&I	1	$	170
CRE	1	363
Construction	—	—
Total originated commercial	2	533
Consumer
Installment	1	3
Home equity lines	—	—
Credit card	7	31
Residential mortgages	1	99
Total originated consumer	9	$	133
FDIC acquired loans
Commercial
C&I	—	$	—
CRE	—	—
Construction	—	—
Total FDIC acquired commercial	—	$	—
Acquired loans
Commercial
C&I	—	$	—
CRE	—	—
Construction	—	—
Total acquired commercial	—	—
Consumer
Installment	—	—
Home equity lines	—	—
Residential mortgages	—	—
Total acquired consumer	—	$	—
Total loans
Commercial
C&I	1	$	170
CRE	1	363
Construction	—	—
Total commercial	2	533
Consumer
Installment	1	3
Home equity lines	—	—
Credit card	7	31
Residential mortgages	1	99
Total consumer	9	133
Total	11	$	666