Loans are presented net of unearned income of $3.7 million and $3.2 million at March 31, 2016 and December 31, 2015 and net of a discount related to purchase accounting fair value adjustments of $10.4 million and $10.9 million at March 31, 2016 and December 31, 2015. The following table indicates the composition of the acquired and originated loans as of the dates presented:



(dollars in thousands)	March 31, 2016		December 31, 2015
Commercial
Commercial real estate	$	2,260,231	$	2,166,603
Commercial and industrial	1,334,119		1,256,830
Commercial construction	379,293		413,444
Total Commercial Loans	3,973,643		3,836,877
Consumer
Residential mortgage	650,544		639,372
Home equity	467,671		470,845
Installment and other consumer	76,189		73,939
Consumer construction	8,701		6,579
Total Consumer Loans	1,203,105		1,190,735
Total Portfolio Loans	5,176,748		5,027,612
Loans held for sale	11,739		35,321
Total Loans	$	5,188,487	$	5,062,933

The decrease in loans held for sale of $23.6 million primarily related to the sale of our credit card portfolio of $22.9 million and resulted in a $2.1 million gain for the three months ended March 31, 2016.

We attempt to limit our exposure to credit risk by diversifying our loan portfolio by segment, geography, collateral and industry and actively managing concentrations. When concentrations exist in certain segments, we mitigate this risk by monitoring the relevant economic indicators and internal risk rating trends and through stress testing of the loans in these segments. Total commercial loans represented 77 percent of total portfolio loans at March 31, 2016 and 76 percent of total portfolio loans at December 31, 2015. Within our commercial portfolio, the CRE and Commercial Construction portfolios combined comprised $2.6 billion or 66 percent of total commercial loans and 51 percent of total portfolio loans at March 31, 2016 and 67 percent of total commercial loans and 51 percent of total portfolio loans at December 31, 2015. Further segmentation of the CRE and Commercial Construction portfolios by industry and collateral type reveal no concentration in excess of seven percent of total loans at March 31, 2016 and December 31, 2015.

Our market area includes Pennsylvania and the contiguous states of Ohio, West Virginia, New York and Maryland. The majority of our commercial and consumer loans are made to businesses and individuals in this market area, resulting in a geographic concentration. We believe our knowledge and familiarity with customers and conditions locally outweighs this geographic concentration risk. The conditions of the local and regional economies are monitored closely through publicly available data as well as information supplied by our customers. Management believes underwriting guidelines, active monitoring of economic conditions and ongoing review by credit administration mitigates the concentration risk present in the loan portfolio. Our CRE and Commercial Construction portfolios have out-of-market exposure of 5.4 percent of the combined portfolio and 2.7 percent of total loans at March 31, 2016 and 5.8 percent of the combined portfolio and 3.0 percent of total loans at December 31, 2015.

Troubled debt restructurings, or TDRs, are loans where we, for economic or legal reasons related to a borrower’s financial difficulties, grant a concession to the borrower that we would not otherwise grant. We strive to identify borrowers in financial difficulty early and work with them to modify the terms before their loan reaches nonaccrual status. These modified terms generally include extensions of maturity dates at a stated interest rate lower than the current market rate for a new loan with similar risk characteristics, reductions in contractual interest rates or principal deferment. While unusual, there may be instances of principal forgiveness. These modifications are generally for longer term periods that would not be considered insignificant. Additionally, we classify loans where the debt obligation has been discharged through a Chapter 7 Bankruptcy and not reaffirmed as TDRs.

We individually evaluate all substandard commercial loans that have experienced a forbearance or change in terms agreement, as well as all substandard consumer and residential mortgage loans that entered into an agreement to modify their existing loan to determine if they should be designated as TDRs. All TDRs are considered to be impaired loans and will be reported as impaired loans for the remaining life of the loan, unless the restructuring agreement specifies an interest rate equal to or greater than the rate that would be accepted at the time of the restructuring for a new loan with comparable risk and it is fully expected that the remaining principal and interest will be collected according to the restructured agreement. Further, all impaired loans are reported as nonaccrual loans unless the loan is a TDR that has met the requirements to be returned to accruing status. TDRs can be returned to accruing status if the ultimate collectability of all contractual amounts due, according to the restructured agreement, is not in doubt and there is a period of a minimum of six months of satisfactory payment performance by the borrower either immediately before or after the restructuring.

The following table summarizes the restructured loans as of the dates presented:



	March 31, 2016						December 31, 2015
(dollars in thousands)	Performing TDRs		Nonperforming TDRs		Total TDRs		Performing TDRs		Nonperforming TDRs		Total TDRs
Commercial real estate	$	6,339	$	3,747	$	10,086	$	6,822	$	3,548	$	10,370
Commercial and industrial	6,280		1,695		7,975		6,321		1,570		7,891
Commercial construction	4,367		1,742		6,109		5,013		1,265		6,278
Residential mortgage	2,537		1,193		3,730		2,590		665		3,255
Home equity	3,215		911		4,126		3,184		523		3,707
Installment and other consumer	23		3		26		25		88		113
Total	$	22,761	$	9,291	$	32,052	$	23,955	$	7,659	$	31,614

There were no TDRs returned to accruing status during the three months ended March 31, 2016 or three months ended March 31, 2015.

The following tables present the restructured loans during the periods presented:



	Three Months Ended March 31, 2016								Three Months Ended March 31, 2015
(dollars in thousands)	Number of Loans	Pre-Modification Outstanding Recorded Investment⁽¹⁾		Post-Modification Outstanding Recorded Investment⁽¹⁾		Total Difference in Recorded Investment			Number of Loans	Pre-Modification Outstanding Recorded Investment⁽¹⁾		Post-Modification Outstanding Recorded Investment⁽¹⁾		Total Difference in Recorded Investment
Commercial real estate
Principal deferral	—	$	—	$	—	$	—		2	$	2,851	$	2,851	$	—
Chapter 7 bankruptcy⁽²⁾	1	709		702		(7		)	—	—		—		—
Commercial and industrial
Principal deferral	—	—		—		—			6	661		661		—
Chapter 7 bankruptcy⁽²⁾	—	—		—		—			1	3		1		(2		)
Maturity date extension	2	625		605		(20		)	1	780		765		(15		)
Commercial Construction
Principal deferral	—	—		—		—			1	104		103		(1		)
Maturity date extension	1	33		33		—			—	—		—		—
Residential mortgage
Chapter 7 bankruptcy⁽²⁾	3	221		219		(2		)	—	—		—		—
Maturity date extension	1	483		483		—			—	—		—		—
Home equity
Principal deferral	—	—		—		—			—	—		—		—
Chapter 7 bankruptcy⁽²⁾	5	245		243		(2		)	8	142		133		(9		)
Maturity date extension and interest rate reduction	1	130		130		—			—	—		—		—
Maturity date extension	2	200		199		(1		)	1	71		71		—
Total by Concession Type
Principal deferral	—	$	—	$	—	$	—		9	$	3,616	$	3,615	$	(1	)
Maturity date extension and interest rate reduction	1	130		130		—			—	—		—		—
Chapter 7 bankruptcy⁽²⁾	9	1,175		1,164		(11		)	9	145		134		(11		)
Maturity date extension	6	1,341		1,320		(21		)	2	851		836		(15		)
Total	16	$	2,646	$	2,614	$	(32	)	20	$	4,612	$	4,585	$	(27	)
⁽¹⁾ Excludes loans that were fully paid off or fully charged-off by period end. The pre-modification balance represents the balance outstanding prior to modification. The post-modification balance represents the outstanding balance at period end. ⁽²⁾ Chapter 7 bankruptcy loans where the debt has been legally discharged through the bankruptcy court and not reaffirmed.

For the three months ended March 31, 2016, we modified one C&I loan totaling $2.2 million that was not considered to be a TDR. The modification was not deemed a TDR since we were adequately compensated through additional collateral and a higher interest rate. As of March 31, 2016 we have no commitments to lend additional funds on any TDRs.

Defaulted TDRs are defined as loans having a payment default of 90 days or more after the restructuring takes place. The following tables present a summary of TDRs which defaulted during the periods presented that had been restructured within the last 12 months prior to defaulting:



	Defaulted TDRs
	March 31, 2016			March 31, 2015
(dollars in thousands)	Number of Defaults	Recorded Investment		Number of Defaults	Recorded Investment
Commercial real estate	—	$	—	—	$	—
Commercial and Industrial	—	—		—	—
Commercial construction	1	616		—	—
Residential mortgage	—	—		1	183
Home equity	—	—		1	5
Installment and other consumer	—	—		—	—
Consumer construction	—	—		—	—
Total	1	$	616	2	$	188

The following table is a summary of nonperforming assets as of the dates presented:



	Nonperforming Assets
(dollars in thousands)	March 31, 2016		December 31, 2015
Nonperforming Assets
Nonaccrual loans	$	42,543	$	27,723
Nonaccrual TDRs	9,291		7,659
Total nonaccrual loans	51,834		35,382
OREO	297		354
Total Nonperforming Assets	$	52,131	$	35,736