Loans and Allowance for Credit Losses

Loans, Net of Unearned Income

Loans, net of unearned income are summarized as follows:



	June 30, 2018			December 31, 2017
	(in thousands)
Real-estate - commercial mortgage	$	6,304,475		$	6,364,804
Commercial - industrial, financial and agricultural	4,264,602			4,300,297
Real-estate - residential mortgage	2,094,530			1,954,711
Real-estate - home equity	1,491,395			1,559,719
Real-estate - construction	990,705			1,006,935
Consumer	360,315			313,783
Leasing and other	315,243			291,556
Overdrafts	1,778			4,113
Loans, gross of unearned income	15,823,043			15,795,918
Unearned income	(30,074		)	(27,671		)
Loans, net of unearned income	$	15,792,969		$	15,768,247

The Corporation segments its loan portfolio by general loan type, or "portfolio segments," as presented in the table under the heading, "Loans, Net of Unearned Income," above. Certain portfolio segments are further disaggregated and evaluated collectively for impairment based on "class segments," which are largely based on the type of collateral underlying each loan. Commercial loans include both secured and unsecured loans. Construction loan class segments include loans secured by commercial real estate, loans to commercial borrowers secured by residential real estate and loans to individuals secured by residential real estate. Consumer loan class segments include direct consumer installment loans and indirect vehicle loans.

Allowance for Credit Losses

The allowance for credit losses consists of the allowance for loan losses and the reserve for unfunded lending commitments. The allowance for loan losses represents management’s estimate of incurred losses in the loan portfolio as of the balance sheet date and is recorded as a reduction to loans. The reserve for unfunded lending commitments represents management’s estimate of incurred losses in its unfunded loan commitments and letters of credit and is recorded in other liabilities on the consolidated balance sheets. The allowance for credit losses is increased by charges to expense, through the provision for credit losses, and decreased by charge-offs, net of recoveries.

The Corporation’s allowance for credit losses includes: (1) specific allowances allocated to loans individually evaluated for impairment (FASB ASC Section 310-10-35); and (2) allowances calculated for pools of loans collectively evaluated for impairment (FASB ASC Subtopic 450-20).

The following table presents the components of the allowance for credit losses:



	June 30, 2018		December 31, 2017
	(in thousands)
Allowance for loan losses	$	156,050	$	169,910
Reserve for unfunded lending commitments	13,197		6,174
Allowance for credit losses	$	169,247	$	176,084

The following table presents the activity in the allowance for credit losses:



	Three months ended June 30						Six months ended June 30
	2018			2017			2018			2017
	(in thousands)
Balance at beginning of period	$	176,019		$	172,647		$	176,084		$	171,325
Loans charged off	(42,160		)	(8,715		)	(48,557		)	(18,122		)
Recoveries of loans previously charged off	2,271			4,366			4,633			10,295
Net loans charged off	(39,889		)	(4,349		)	(43,924		)	(7,827		)
Provision for credit losses	33,117			6,700			37,087			11,500
Balance at end of period	$	169,247		$	174,998		$	169,247		$	174,998

Included in the provision for credit losses for the three and six months ended June 30, 2018 was a $36.8 million provision related to a single, large commercial lending relationship ("Commercial Relationship"). In addition, loans charged off for the same periods included a $33.9 million charge-off related to the Commercial Relationship.

The Corporation has historically maintained an unallocated allowance for credit losses for factors and conditions that exist at the balance sheet date, but are not specifically identifiable, and to recognize the inherent imprecision in estimating and measuring loss exposure. In the second quarter of 2017, enhancements were made to allow for the impact of these factors and conditions to be quantified in the allowance allocation process. Accordingly, an unallocated allowance for credit losses is no longer necessary.

The following table presents the activity in the allowance for loan losses by portfolio segment:



	Real Estate - Commercial Mortgage			Commercial - Industrial, Financial and Agricultural			Real Estate - Home Equity			Real Estate - Residential Mortgage			Real Estate - Construction			Consumer			Leasing, other and overdrafts			Unallocated			Total
	(in thousands)
Three months ended June 30, 2018
Balance at March 31, 2018	$	58,717		$	61,830		$	17,528		$	15,261		$	5,924		$	1,903		$	2,054		$	—		$	163,217
Loans charged off	(366		)	(38,632		)	(816		)	(483		)	(606		)	(712		)	(545		)	—			(42,160		)
Recoveries of loans previously charged off	321			541			271			96			444			446			152			—			2,271
Net loans charged off	(45		)	(38,091		)	(545		)	(387		)	(162		)	(266		)	(393		)	—			(39,889		)
Provision for loan losses ⁽¹⁾	(2,089		)	35,306			(736		)	(370		)	226			62			323			—			32,722
Balance at June 30, 2018	$	56,583		$	59,045		$	16,247		$	14,504		$	5,988		$	1,699		$	1,984		$	—		$	156,050
Three months ended June 30, 2017
Balance at March 31, 2017	$	47,373		$	55,309		$	23,821		$	22,018		$	7,501		$	3,031		$	3,268		$	7,755		$	170,076
Loans charged off	(242		)	(5,353		)	(592		)	(124		)	(774		)	(430		)	(1,200		)	—			(8,715		)
Recoveries of loans previously charged off	934			1,974			215			151			373			470			249			—			4,366
Net loans charged off	692			(3,379		)	(377		)	27			(401		)	40			(951		)	—			(4,349		)
Provision for loan losses ⁽¹⁾	9,307			15,712			(5,988		)	(5,606		)	2,434			(1,277		)	(212		)	(7,755		)	6,615
Balance at June 30, 2017	$	57,372		$	67,642		$	17,456		$	16,439		$	9,534		$	1,794		$	2,105		$	—		$	172,342
Six months ended June 30, 2018
Balance at December 31, 2017	$	58,793		$	66,280		$	18,127		$	16,088		$	6,620		$	2,045		$	1,957		$	—		$	169,910
Loans charged off	(633		)	(42,637		)	(1,224		)	(645		)	(764		)	(1,604		)	(1,050		)	—			(48,557		)
Recoveries of loans previously charged off	600			1,616			477			203			750			625			362			—			4,633
Net loans charged off	(33		)	(41,021		)	(747		)	(442		)	(14		)	(979		)	(688		)	—			(43,924		)
Provision for loan losses ⁽¹⁾	(2,177		)	33,786			(1,133		)	(1,142		)	(618		)	633			715			—			30,064
Balance at June 30, 2018	$	56,583		$	59,045		$	16,247		$	14,504		$	5,988		$	1,699		$	1,984		$	—		$	156,050
Six months ended June 30, 2017
Balance at December 31, 2016	$	46,842		$	54,353		$	26,801		$	22,929		$	6,455		$	3,574		$	3,192		$	4,533		$	168,679
Loans charged off	(1,466		)	(10,880		)	(1,290		)	(340		)	(1,021		)	(1,286		)	(1,839		)	—			(18,122		)
Recoveries of loans previously charged off	1,384			6,165			352			381			921			706			386			—			10,295
Net loans charged off	(82		)	(4,715		)	(938		)	41			(100		)	(580		)	(1,453		)	—			(7,827		)
Provision for loan losses ⁽¹⁾	10,612			18,004			(8,407		)	(6,531		)	3,179			(1,200		)	366			(4,533		)	11,490
Balance at June 30, 2017	$	57,372		$	67,642		$	17,456		$	16,439		$	9,534		$	1,794		$	2,105		$	—		$	172,342

(1)

The provision for loan losses excluded a $395,000 and a $7.0 million increase in the reserve for unfunded lending commitments for the three and six months ended June 30, 2018, respectively, and an $85,000 and a $10,000 increase in the reserve for unfunded lending commitments for the three and six months ended June 30, 2017, respectively. These amounts were reclassified to other liabilities on the consolidated balance sheets.

The following table presents loans, net of unearned income and their related allowance for loan losses, by portfolio segment:



	Real Estate - Commercial Mortgage		Commercial - Industrial, Financial and Agricultural		Real Estate - Home Equity		Real Estate - Residential Mortgage		Real Estate - Construction		Consumer		Leasing, other and overdrafts		Total
	(in thousands)
Allowance for loan losses at June 30, 2018:
Loans collectively evaluated for impairment	$	48,489	$	49,354	$	5,093	$	5,171	$	5,338	$	1,691	$	1,984	$	117,120
Loans individually evaluated for impairment	8,094		9,691		11,154		9,333		650		8		—		38,930
	$	56,583	$	59,045	$	16,247	$	14,504	$	5,988	$	1,699	$	1,984	$	156,050

Loans, net of unearned income at June 30, 2018
Loans collectively evaluated for impairment	$	6,252,747	$	4,209,786	$	1,466,393	$	2,055,206	$	981,584	$	360,304	$	286,947	$	15,612,967
Loans individually evaluated for impairment	51,728		54,816		25,002		39,324		9,121		11		—		180,002
	$	6,304,475	$	4,264,602	$	1,491,395	$	2,094,530	$	990,705	$	360,315	$	286,947	$	15,792,969

Allowance for loan losses at June 30, 2017:
Loans collectively evaluated for impairment	$	49,055	$	57,341	$	7,607	$	6,013	$	5,370	$	1,773	$	2,105	$	129,264
Loans individually evaluated for impairment	8,317		10,301		9,849		10,426		4,164		21		—		43,078
	$	57,372	$	67,642	$	17,456	$	16,439	$	9,534	$	1,794	$	2,105	$	172,342

Loans, net of unearned income at June 30, 2017:
Loans collectively evaluated for impairment	$	6,212,998	$	4,189,676	$	1,557,989	$	1,741,404	$	921,839	$	283,123	$	252,253	$	15,159,282
Loans individually evaluated for impairment	49,010		56,173		21,750		43,308		17,061		33		—		187,335
	$	6,262,008	$	4,245,849	$	1,579,739	$	1,784,712	$	938,900	$	283,156	$	252,253	$	15,346,617

Impaired Loans

A loan is considered to be impaired if it is probable that all amounts will not be collected according to the contractual terms of the loan agreement. Impaired loans consist of all loans on non-accrual status and accruing troubled debt restructurings ("TDRs"). An allowance for loan losses is established for an impaired loan if its carrying value exceeds its estimated fair value. Impaired loans to borrowers with total commitments greater than or equal to $1.0 million are evaluated individually for impairment. Impaired loans to borrowers with total commitments less than $1.0 million are pooled and measured for impairment collectively.

All loans individually evaluated for impairment are measured for losses on a quarterly basis. As of June 30, 2018 and December 31, 2017, substantially all of the Corporation’s individually evaluated impaired loans with total commitments greater than or equal to $1.0 million were measured based on the estimated fair value of each loan’s collateral. Collateral could be in the form of real estate, in the case of impaired commercial mortgages and construction loans, or business assets, such as accounts receivable or inventory, in the case of commercial and industrial loans. Commercial and industrial loans may also be secured by real estate.

As of June 30, 2018 and 2017, approximately 88% and 87%, respectively, of impaired loans with principal balances greater than or equal to $1.0 million, whose primary collateral is real estate, were measured at estimated fair value of the collateral using appraisals that had been updated in the preceding 12 months, performed by state certified third-party appraisers.

When updated appraisals are not obtained for loans evaluated for impairment that are secured by real estate, fair values are estimated based on the original appraisal values, as long as the original appraisal indicated an acceptable loan-to-value position and, in the opinion of the Corporation's internal credit administration staff, there has not been a significant deterioration in the collateral value since the original appraisal was performed. Original appraisals are typically used only when the estimated collateral value, as adjusted for the age of the appraisal, results in a current loan-to-value ratio that is lower than the Corporation's loan-to-value requirements for new loans (generally less than 70%).

The following table presents total impaired loans by class segment:



	June 30, 2018						December 31, 2017
	Unpaid Principal Balance		Recorded Investment		Related Allowance		Unpaid Principal Balance		Recorded Investment		Related Allowance
	(in thousands)
With no related allowance recorded:
Real estate - commercial mortgage	$	27,582	$	26,435	$	—	$	26,728	$	22,886	$	—
Commercial	41,971		26,761		—		44,936		39,550		—
Real estate - residential mortgage	3,193		3,193		—		4,575		4,575		—
Construction	11,162		7,213		—		12,477		8,100		—
	83,908		63,602		—		88,716		75,111		—
With a related allowance recorded:
Real estate - commercial mortgage	32,432		25,293		8,094		33,710		25,895		8,112
Commercial	50,734		28,055		9,691		29,816		24,175		11,406
Real estate - home equity	28,776		25,002		11,154		28,282		24,693		11,124
Real estate - residential mortgage	41,025		36,131		9,333		42,597		37,132		9,895
Construction	5,595		1,908		650		7,308		4,097		967
Consumer	11		11		8		26		26		17
	158,573		116,400		38,930		141,739		116,018		41,521
Total	$	242,481	$	180,002	$	38,930	$	230,455	$	191,129	$	41,521

As of June 30, 2018 and December 31, 2017, there were $63.6 million and $75.1 million, respectively, of impaired loans that did not have a related allowance for loan loss. The estimated fair values of the collateral securing these loans exceeded their carrying amount, or the loans were previously charged down to realizable collateral values. Accordingly, no specific valuation allowance was considered to be necessary.

The following table presents average impaired loans by class segment:



	Three months ended June 30								Six months ended June 30
	2018				2017				2018				2017
	Average Recorded Investment		Interest Income (1)		Average Recorded Investment		Interest Income (1)		Average Recorded Investment		Interest Income (1)		Average Recorded Investment		Interest Income (1)
	(in thousands)
With no related allowance recorded:
Real estate - commercial mortgage	$	27,127	$	97	$	22,316	$	71	$	25,713	$	180	$	23,360	141
Commercial	33,644		69		30,829		46		35,612		142		29,061		82
Real estate - residential mortgage	3,870		24		4,643		26		4,105		51		4,658		52
Construction	7,528		—		6,965		4		7,718		—		6,242		6
	72,169		190		64,753		147		73,148		373		63,321		281
With a related allowance recorded:
Real estate - commercial mortgage	25,419		91		27,710		88		25,578		175		28,288		173
Commercial	26,120		54		21,387		31		25,471		97		22,074		63
Real estate - home equity	24,907		195		20,352		117		24,835		379		19,969		212
Real estate - residential mortgage	36,261		223		39,500		225		36,551		444		40,119		455
Construction	2,400		—		8,446		4		2,966		—		7,542		7
Consumer	18		—		36		—		20		—		36		—
Leasing, other and overdrafts	—		—		—		—		—		—		475		—
	115,125		563		117,431		465		115,421		1,095		118,503		910
Total	$	187,294	$	753	$	182,184	$	612	$	188,569	$	1,468	$	181,824	1,191


(1)	All impaired loans, excluding accruing TDRs, were non-accrual loans. Interest income recognized for the three and six months ended June 30, 2018 and 2017 represents amounts earned on accruing TDRs.

Credit Quality Indicators and Non-performing Assets

The following is a summary of the Corporation's internal risk rating categories:


•	Pass: These loans do not currently pose undue credit risk and can range from the highest to average quality, depending on the degree of potential risk.


•	Special Mention: These loans constitute an undue and unwarranted credit risk, but not to a point of justifying a classification of substandard. Loans in this category are currently acceptable, but are nevertheless potentially weak.


•	Substandard or Lower: These loans are inadequately protected by current sound worth and paying capacity of the borrower. There exists a well-defined weakness or weaknesses that jeopardize the normal repayment of the debt.

The risk rating process allows management to identify credits that potentially carry more risk in a timely manner and to allocate resources to managing troubled accounts. The Corporation believes that internal risk ratings are the most relevant credit quality indicator for the class segments presented in the preceding tables. The migration of loans through the various internal risk rating categories is a significant component of the allowance for credit loss methodology, which bases the probability of default on this migration. Assigning risk ratings involves judgment. The Corporation's loan review officers provide an independent assessment of risk rating accuracy. Ratings may be changed based on the ongoing monitoring procedures performed by loan officers or credit administration staff, or if specific loan review activities identify a deterioration or an improvement in the loan.

The following table presents internal credit risk ratings for the indicated loan class segments:



	Pass						Special Mention						Substandard or Lower						Total
	June 30, 2018			December 31, 2017			June 30, 2018			December 31, 2017			June 30, 2018			December 31, 2017			June 30, 2018			December 31, 2017
	(dollars in thousands)
Real estate - commercial mortgage	$	5,990,838		$	6,066,396		$	164,908		$	147,604		$	148,729		$	150,804		$	6,304,475		$	6,364,804
Commercial - secured	3,823,052			3,831,485			139,345			121,842			146,190			179,113			4,108,587			4,132,440
Commercial - unsecured	147,914			159,620			3,726			5,478			4,375			2,759			156,015			167,857
Total commercial - industrial, financial and agricultural	3,970,966			3,991,105			143,071			127,320			150,565			181,872			4,264,602			4,300,297
Construction - commercial residential	128,641			143,759			3,996			5,259			10,429			14,084			143,066			163,102
Construction - commercial	762,920			761,218			344			846			5,382			3,752			768,646			765,816
Total construction (excluding Construction - other)	891,561			904,977			4,340			6,105			15,811			17,836			911,712			928,918
	$	10,853,365		$	10,962,478		$	312,319		$	281,029		$	315,105		$	350,512		$	11,480,789		$	11,594,019
% of Total	94.5		%	94.6		%	2.7		%	2.4		%	2.7		%	3.0		%	100.0		%	100.0		%

The Corporation does not assign internal risk ratings to smaller balance, homogeneous loans, such as home equity, residential mortgage, construction loans to individuals secured by residential real estate, consumer and lease receivables. For these loans, the most relevant credit quality indicator is delinquency status. The migration of loans through the various delinquency status categories is a significant component of the allowance for credit losses methodology for those loans, which bases the probability of default on this migration.

The following table presents a summary of performing, delinquent and non-performing loans for the indicated loan class segments:



	Performing						Delinquent (1)						Non-performing (2)						Total
	June 30, 2018			December 31, 2017			June 30, 2018			December 31, 2017			June 30, 2018			December 31, 2017			June 30, 2018			December 31, 2017
	(dollars in thousands)
Real estate - home equity	$	1,470,006		$	1,535,557		$	9,703		$	12,655		$	11,686		$	11,507		$	1,491,395		$	1,559,719
Real estate - residential mortgage	2,054,810			1,914,888			20,832			18,852			18,888			20,971			2,094,530			1,954,711
Construction - other	78,503			77,403			—			203			490			411			78,993			78,017
Consumer - direct	62,142			54,828			108			315			83			70			62,333			55,213
Consumer - indirect	294,686			254,663			3,027			3,681			269			226			297,982			258,570
Total consumer	356,828			309,491			3,135			3,996			352			296			360,315			313,783
Leasing, other and overdrafts	285,722			267,111			1,049			855			176			32			286,947			267,998
	$	4,245,869		$	4,104,450		$	34,719		$	36,561		$	31,592		$	33,217		$	4,312,180		$	4,174,228
% of Total	98.5		%	98.3		%	0.8		%	0.9		%	0.7		%	0.8		%	100.0		%	100.0		%


(1)	Includes all accruing loans 30 days to 89 days past due.


(2)	Includes all accruing loans 90 days or more past due and all non-accrual loans.

The following table presents non-performing assets:



	June 30, 2018		December 31, 2017
	(in thousands)
Non-accrual loans	$	111,116	$	124,749
Loans 90 days or more past due and still accruing	12,628		10,010
Total non-performing loans	123,744		134,759
Other real estate owned (OREO)	11,181		9,823
Total non-performing assets	$	134,925	$	144,582

The following tables present past due status and non-accrual loans by portfolio segment and class segment:



	June 30, 2018
	30-59 Days Past Due		60-89 Days Past Due		≥ 90 Days Past Due and Accruing		Non- accrual		Total ≥ 90 Days		Total Past Due		Current		Total
	(in thousands)
Real estate - commercial mortgage	$	8,537	$	961	$	3,970	$	35,308	$	39,278	$	48,776	$	6,255,699	$	6,304,475
Commercial - secured	14,687		2,249		299		43,005		43,304		60,240		4,048,347		4,108,587
Commercial - unsecured	350		162		129		612		741		1,253		154,762		156,015
Total commercial - industrial, financial and agricultural	15,037		2,411		428		43,617		44,045		61,493		4,203,109		4,264,602
Real estate - home equity	8,053		1,650		2,885		8,801		11,686		21,389		1,470,006		1,491,395
Real estate - residential mortgage	15,333		5,499		4,619		14,269		18,888		39,720		2,054,810		2,094,530
Construction - commercial residential	560		184		—		8,810		8,810		9,554		133,511		143,065
Construction - commercial	—		—		—		19		19		19		768,628		768,647
Construction - other	—		—		198		292		490		490		78,503		78,993
Total real estate - construction	560		184		198		9,121		9,319		10,063		980,642		990,705
Consumer - direct	45		63		83		—		83		191		62,142		62,333
Consumer - indirect	2,535		492		269		—		269		3,296		294,686		297,982
Total consumer	2,580		555		352		—		352		3,487		356,828		360,315
Leasing, other and overdrafts	805		244		176		—		176		1,225		285,722		286,947
Total	$	50,905	$	11,504	$	12,628	$	111,116	$	123,744	$	186,153	$	15,606,816	$	15,792,969



	December 31, 2017
	30-59 Days Past Due		60-89 Days Past Due		≥ 90 Days Past Due and Accruing		Non- accrual		Total ≥ 90 Days		Total Past Due		Current		Total
	(in thousands)
Real estate - commercial mortgage	$	9,456	$	4,223	$	625	$	34,822	$	35,447	$	49,126	$	6,315,678	$	6,364,804
Commercial - secured	4,778		5,254		1,360		52,255		53,615		63,647		4,068,793		4,132,440
Commercial - unsecured	305		10		45		649		694		1,009		166,848		167,857
Total commercial - industrial, financial and agricultural	5,083		5,264		1,405		52,904		54,309		64,656		4,235,641		4,300,297
Real estate - home equity	9,640		3,015		2,372		9,135		11,507		24,162		1,535,557		1,559,719
Real estate - residential mortgage	11,961		6,891		5,280		15,691		20,971		39,823		1,914,888		1,954,711
Construction - commercial residential	—		439		—		11,767		11,767		12,206		150,896		163,102
Construction - commercial	483		—		—		19		19		502		765,314		765,816
Construction - other	203		—		—		411		411		614		77,403		78,017
Total real estate - construction	686		439		—		12,197		12,197		13,322		993,613		1,006,935
Consumer - direct	260		55		70		—		70		385		54,828		55,213
Consumer - indirect	3,055		626		226		—		226		3,907		254,663		258,570
Total consumer	3,315		681		296		—		296		4,292		309,491		313,783
Leasing, other and overdrafts	568		287		32		—		32		887		267,111		267,998
Total	$	40,709	$	20,800	$	10,010	$	124,749	$	134,759	$	196,268	$	15,571,979	$	15,768,247

The following table presents TDRs, by class segment:



	June 30, 2018		December 31, 2017
	(in thousands)
Real-estate - residential mortgage	$	25,055	$	26,016
Real-estate - commercial mortgage	16,420		13,959
Real estate - home equity	16,201		15,558
Commercial	11,199		10,820
Consumer	11		26
Total accruing TDRs	68,886		66,379
Non-accrual TDRs ⁽¹⁾	24,743		29,051
Total TDRs	$	93,629	$	95,430


(1)	Included in non-accrual loans in the preceding table detailing non-performing assets.

The following table presents TDRs, by class segment and type of concession for loans that were modified during the three and six months ended June 30, 2018 and 2017:



		Three months ended June 30						Six months ended June 30
		2018			2017			2018			2017
		Number of Loans	Post-Modification Recorded Investment		Number of Loans	Post-Modification Recorded Investment		Number of Loans	Post-Modification Recorded Investment		Number of Loans	Post-Modification Recorded Investment
		(dollars in thousands)
Real estate – residential mortgage:
	Extend maturity without rate concession	1	$	77	—	$	—	1	$	77	2	$	337
	Bankruptcy	—	—		1	157		1	5		2	335
Real estate - commercial mortgage:
	Extend maturity without rate concession	1	4		3	663		6	8,261		4	981
	Bankruptcy	—	—		1	12		—	—		1	12
Real estate - home equity:
	Extend maturity without rate concession	23	1,346		17	1,275		40	2,622		33	2,559
	Bankruptcy	5	313		10	1,063		7	421		17	1,516
Commercial:
	Extend maturity without rate concession	1	49		5	2,600		5	1,151		8	5,693
	Bankruptcy	—	—		1	490		—	—		2	523
Construction - commercial residential:
	Extend maturity without rate concession	—	—		1	1,204		—	—		1	1,204

Total		31	$	1,789	39	$	7,464	60	$	12,537	70	$	13,160

The following table presents TDRs, by class segment, as of June 30, 2018 and 2017 that were modified in the previous 12 months and had a post-modification payment default during the six months ended June 30, 2018 and 2017. The Corporation defines a payment default as a single missed payment.



	2018			2017
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
	(dollars in thousands)
Real estate - residential mortgage	8	$	863	7	$	1,911
Real estate - commercial mortgage	1	176		3	674
Real estate - home equity	29	1,955		16	922
Commercial	5	146		5	2,772
Consumer	—	—		1	16
Total	43	$	3,140	32	$	6,295