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 years ended December 31, 2015, 2014 and 2013, as well as the corresponding recorded investment in originated loans at the end of the period:



As of December 31, 2015
(In thousands)
Originated Loans		C&I			CRE			Construction			Leases			Installment			Home Equity Lines			Credit Cards			Residential Mortgages			Total
Year 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		(14,913		)	(625		)	—			(1,268		)	(21,630		)	(4,032		)	(4,867		)	(1,443		)	(48,778		)
Recoveries		1,196			517			178			787			11,547			2,606			1,395			257			18,483
Provision for loan losses		21,102			(753		)	(786		)	1,120			11,348			2,196			4,337			1,170			39,734
Allowance for originated loan losses, ending balance		$	44,760		$	9,631		$	1,594		$	1,313		$	14,183		$	20,094		$	8,831		$	4,729		$	105,135

Ending allowance for originated loan losses balance attributable to loans:
	Individually evaluated for impairment	$	11,837		$	128		$	—		$	—		$	1,009		$	188		$	243		$	944		$	14,349
	Collectively evaluated for impairment	32,923			9,503			1,594			1,313			13,174			19,906			8,588			3,785			90,786
Total ending allowance for originated loan losses balance		$	44,760		$	9,631		$	1,594		$	1,313		$	14,183		$	20,094		$	8,831		$	4,729		$	105,135
Originated loans:
	Originated loans individually evaluated for impairment	$	43,818		$	16,614		$	—		$	—		$	36,904		$	7,080		$	717		$	23,905		$	129,038
	Originated loans collectively evaluated for impairment	5,749,590			2,060,730			645,337			491,741			2,953,445			1,241,358			182,126			665,140			13,989,467
Total originated loans		$	5,793,408		$	2,077,344		$	645,337		$	491,741		$	2,990,349		$	1,248,438		$	182,843		$	689,045		$	14,118,505



As of December 31, 2014
(In thousands)
Originated Loans		C&I			CRE			Construction			Leases			Installment			Home Equity Lines			Credit Cards			Residential Mortgages			Total
Year 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		(9,617		)	(3,512		)	—			—			(20,328		)	(4,831		)	(4,604		)	(2,031		)	(44,923		)
Recoveries		3,872			515			39			379			11,185			2,940			1,716			318			20,964
Provision for loan losses		139			1,224			(647		)	(786		)	10,126			8,315			3,114			1,686			23,171
Allowance for originated loan losses, ending balance		$	37,375		$	10,492		$	2,202		$	674		$	12,918		$	19,324		$	7,966		$	4,745		$	95,696

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:
	Originated loans individually evaluated for impairment	$	11,759		$	23,300		$	—		$	—		$	24,905		$	7,379		$	854		$	25,251		$	93,448
	Originated 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



As of December 31, 2013
(In thousands)
Originated Loans		C&I			CRE			Construction			Leases			Installment			Home Equity Lines			Credit Cards			Residential Mortgages			Total
Year ended
Allowance for originated loan losses, beginning balance		$	36,209		$	20,126		$	3,821		$	639		$	11,154		$	13,724		$	7,384		$	5,885		$	98,942
Charge-offs		(5,840		)	(1,281		)	(516		)	(1,237		)	(16,683		)	(7,172		)	(5,541		)	(1,903		)	(40,173		)
Recoveries		7,981			524			507			100			10,519			2,979			1,841			230			24,681
Provision for loan losses		4,631			(7,104		)	(1,002		)	1,579			6,945			3,369			4,056			560			13,034
Allowance for originated loan losses, ending balance		$	42,981		$	12,265		$	2,810		$	1,081		$	11,935		$	12,900		$	7,740		$	4,772		$	96,484

Ending allowance for originated loan losses balance attributable to loans:
	Individually evaluated for impairment	$	3,235		$	229		$	—		$	—		$	1,014		$	223		$	312		$	1,133		$	6,146
	Collectively evaluated for impairment	39,746			12,036			2,810			1,081			10,921			12,677			7,428			3,639			90,338
Total ending allowance for originated loan losses balance		$	42,981		$	12,265		$	2,810		$	1,081		$	11,935		$	12,900		$	7,740		$	4,772		$	96,484
Originated loans:
	Originated loans individually evaluated for impairment	$	8,053		$	20,616		$	906		$	—		$	27,285		$	6,726		$	1,112		$	23,066		$	87,764
	Originated loans collectively evaluated for impairment	4,131,514			2,149,171			338,019			239,551			1,700,640			913,340			147,201			506,187			10,125,623
Total ending originated loan balance		$	4,139,567		$	2,169,787		$	338,925		$	239,551		$	1,727,925		$	920,066		$	148,313		$	529,253		$	10,213,387

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 December 31, 2015 and 2014, the computed ALL was less than the remaining fair value discount; therefore, no allowance for acquired nonimpaired loan losses 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 years ended December 31, 2015 and 2014, provision for loan losses, equal to net charge-offs, of $6.5 million and $14.7 million, respectively, 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 years ended December 31, 2015, 2014 and 2013:



Allowance for Acquired Impaired Loan Losses	Years Ended December 31,
(In thousands)	2015			2014		2013
Balance at beginning of the period	$	7,457		$	741	$	—
Charge-offs	—			—		—
Recoveries	—			—		—
Provision/(recapture) for loan losses	(3,580		)	6,716		741
Balance at end of the period	$	3,877		$	7,457	$	741

Allowance for FDIC Acquired Loan Losses

The ALL for FDIC acquired nonimpaired loans is estimated similar to acquired loans as described above except any increase to the allowance 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 December 31, 2015 and 2014, 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 years ended December 31, 2015, 2014, and 2013:



Allowance for FDIC Acquired Impaired Loan Losses		Years Ended December 31,
(In thousands)		2015			2014			2013
Balance at beginning of the period		$	40,496		$	44,027		$	43,255
	Net provision/(recapture) for loan losses before benefit attributable to FDIC loss share agreements	8,830			10,568			23,892
	Net (benefit)/recapture attributable to FDIC loss share agreements	(6,373		)	(2,920		)	(10,790		)
Net provision/(recapture) for loan losses		2,457			7,648			13,102
Increase/(decrease) in loss share receivable		6,373			2,920			10,790
Loans charged-off		(4,647		)	(14,099		)	(23,120		)
Balance at end of the period		$	44,679		$	40,496		$	44,027

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 $0.6 million, $0.9 million, and $1.3 million during the years ended 2015, 2014, and 2013, respectively. Interest income which would have been earned in accordance with the original terms was $3.2 million, $2.8 million, and $5.5 million during the years ended December 31, 2015, 2014, and 2013, 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 and individually evaluated 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 December 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	$	21,066	$	23,854	$	—	$	27,215
	CRE	15,465		17,456		—		13,031
	Construction	—		—		—		—
Consumer
	Installment	1,369		1,658		—		1,807
	Home equity line	670		919		—		999
	Credit card	21		21		—		20
	Residential mortgages	11,550		13,901		—		11,979
Subtotal		50,141		57,809		—		55,051
Impaired loans with a related allowance
Commercial
	C&I	22,752		28,881		11,837		11,284
	CRE	1,149		1,173		128		3,037
	Construction	—		—		—		—
Consumer
	Installment	35,535		35,592		1,009		28,808
	Home equity line	6,410		6,411		188		6,382
	Credit card	696		696		243		757
	Residential mortgages	12,355		12,458		944		12,619
Subtotal		78,897		85,211		14,349		62,887
	Total impaired loans	$	129,038	$	143,020	$	14,349	$	117,938

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.

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 or reported as 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 December 31, 2015, and 2014.



			As of December 31, 2015
(Dollars in thousands)			Number of Loans	Recorded Investment		Unpaid Principal Balance
Originated loans
	Commercial
		C&I	26	$	33,087	$	33,740
		CRE	24	14,671		16,648
		Construction	—	—		—
		Total originated commercial	50	47,758		50,388
	Consumer
		Installment	1,223	36,904		37,250
		Home equity lines	257	7,080		7,330
		Credit card	212	717		717
		Residential mortgages	312	23,905		26,359
		Total originated consumer	2,004	68,606		71,656
Total originated loans			2,054	$	116,364	$	122,044
Acquired Loans
	Commercial
		C&I	1	$	7,611	$	7,611
		CRE	3	918		1,044
		Construction	—	—		—
		Total acquired commercial	4	8,529		8,655
	Consumer
		Installment	51	1,117		1,211
		Home equity lines	176	7,718		7,778
		Residential mortgages	31	2,154		2,382
		Total acquired consumer	258	10,989		11,371
Total acquired loans			262	$	19,518	$	20,026
FDIC Acquired loans
	Commercial
		C&I	—	$	—	$	—
		CRE	3	14,056		12,479
		Construction	1	593		682
		Total FDIC acquired commercial	4	14,649		13,161
	Consumer
		Home equity lines	81	10,215		10,281
		Residential mortgages	1	182		182
		Total FDIC acquired consumer	82	10,397		10,463
Total FDIC acquired loans			86	$	25,046	$	23,624
Total loans
	Commercial
		C&I	27	$	40,698	$	41,351
		CRE	30	29,645		30,171
		Construction	1	593		682
		Total commercial	58	70,936		72,204
	Consumer
		Installment	1,274	38,021		38,461
		Home equity lines	514	25,013		25,389
		Credit card	212	717		717
		Residential mortgages	344	26,241		28,923
		Total consumer	2,344	89,992		93,490
Total loans			2,402	$	160,928	$	165,694

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.

The pre-modification and post-modification outstanding recorded investments of loans modified as TDRs during the years ended December 31, 2015, 2014 and 2013 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 years ended December 31, 2015, 2014 and 2013 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 years ended December 31, 2015, 2014 and 2013 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 December 31, 2015 and 2014, the Corporation had $7.0 million and $0.2 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 December 31, 2015 and 2014, including TDRs that continue to accrue interest and TDRs included in nonperforming assets.



As of December 31, 2015
	Accruing TDRs						Nonaccruing TDRs						Total		Total
(In thousands)	Current		Delinquent		Total		Current		Delinquent		Total		TDRs		Allowance
Originated loans
Commercial
C&I	$	22,566	$	107	$	22,673	$	4,229	$	6,185	$	10,414	$	33,087	$	6,052
CRE	10,271		2,247		12,518		746		1,407		2,153		14,671		20
Construction	—		—		—		—		—		—		—		—
Total originated commercial	32,837		2,354		35,191		4,975		7,592		12,567		47,758		6,072
Consumer
Installment	34,902		794		35,696		1,125		83		1,208		36,904		1,009
Home equity lines	6,511		114		6,625		399		56		455		7,080		188
Credit card	575		140		715		—		2		2		717		243
Residential mortgages	12,869		2,896		15,765		4,611		3,529		8,140		23,905		944
Total originated consumer	54,857		3,944		58,801		6,135		3,670		9,805		68,606		2,384
Total originated TDRs	$	87,694	$	6,298	$	93,992	$	11,110	$	11,262	$	22,372	$	116,364	$	8,456
Acquired loans
Commercial
C&I	$	7,611	$	—	$	7,611	$	—	$	—	$	—	$	7,611	$	—
CRE	—		—		—		659		259		918		918		201
Construction	—		—		—		—		—		—		—		—
Total acquired commercial	7,611		—		7,611		659		259		918		8,529		201
Consumer
Installment	967		126		1,093		14		10		24		1,117		45
Home equity lines	6,941		655		7,596		122		—		122		7,718		70
Residential mortgages	1,096		256		1,352		802		—		802		2,154		—
Total acquired consumer	9,004		1,037		10,041		938		10		948		10,989		115
Total acquired TDRs	$	16,615	$	1,037	$	17,652	$	1,597	$	269	$	1,866	$	19,518	$	316
FDIC acquired loans
Commercial
C&I	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
CRE	—		14,056		14,056		—		—		—		14,056		2,333
Construction	593		—		593		—		—		—		593		—
Total FDIC acquired commercial	593		14,056		14,649		—		—		—		14,649		2,333
Consumer
Home equity lines	10,065		70		10,135		6		74		80		10,215		23
Residential mortgages	182		—		182		—		—		—		182		—
Total FDIC acquired consumer	10,247		70		10,317		6		74		80		10,397		23
Total FDIC acquired TDRs	$	10,840	$	14,126	$	24,966	$	6	$	74	$	80	$	25,046	$	2,356
Total loans
Commercial
C&I	$	30,177	$	107	$	30,284	$	4,229	$	6,185	$	10,414	$	40,698	$	6,052
CRE	10,271		16,303		26,574		1,405		1,666		3,071		29,645		2,554
Construction	593		—		593		—		—		—		593		—
Total commercial	41,041		16,410		57,451		5,634		7,851		13,485		70,936		8,606
Consumer
Installment	35,869		920		36,789		1,139		93		1,232		38,021		1,054
Home equity lines	23,517		839		24,356		527		130		657		25,013		281
Credit card	575		140		715		—		2		2		717		243
Residential mortgages	14,147		3,152		17,299		5,413		3,529		8,942		26,241		944
Total consumer	74,108		5,051		79,159		7,079		3,754		10,833		89,992		2,522
Total TDRs	$	115,149	$	21,461	$	136,610	$	12,713	$	11,605	$	24,318	$	160,928	$	11,128



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

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 table provides the number of loans modified in a TDR during the previous 12 months that subsequently defaulted during the years ended December 31, 2015 and 2014, as well as the amount defaulted in these restructured loans as of December 31, 2015 and 2014.



	As of December 31, 2015
(Dollars in thousands)	Number of Loans	Amount Defaulted
Originated loans
Commercial
C&I	—	$	—
CRE	—	—
Construction	—	—
Total originated commercial	—	—
Consumer
Installment	8	113
Home equity lines	—	—
Credit card	10	51
Residential mortgages	—	—
Total originated consumer	18	$	164
FDIC acquired loans
Commercial
C&I	—	$	—
CRE	—	—
Construction	—	—
Total FDIC acquired commercial	—	$	—
Acquired loans
Consumer
Installment	2	$	61
Home equity lines	1	105
Residential mortgages	—	—
Total acquired consumer	3	$	166
Total loans
Commercial
C&I	—	$	—
CRE	—	—
Construction	—	—
Total commercial	—	—
Consumer
Installment	10	174
Home equity lines	2	348
Credit card	10	51
Residential mortgages	—	—
Total consumer	22	573
Total	22	$	573



	As of December 31, 2014
(Dollars in thousands)	Number of Loans	Amount Defaulted
Originated loans
Commercial
C&I	3	$	4,930
CRE	1	363
Construction	—	—
Total originated commercial	4	5,293
Consumer
Installment	11	40
Home equity lines	1	29
Credit card	28	140
Residential mortgages	3	183
Total originated consumer	43	$	392
FDIC acquired loans
Commercial
C&I	1	$	427
CRE	—	—
Construction	—	—
Total FDIC acquired commercial	1	$	427
Acquired loans
Consumer
Installment	2	165
Home equity lines	1	61
Residential mortgages	—	—
Total acquired consumer	3	$	226
Total loans
Commercial
C&I	4	$	5,357
CRE	1	363
Construction	—	—
Total commercial	5	5,720
Consumer
Installment	13	205
Home equity lines	2	90
Credit card	28	140
Residential mortgages	3	183
Total consumer	46	618
Total	51	$	6,338