Loans are presented net of unearned income of $5.6 million and $5.2 million at March 31, 2017 and December 31, 2016 and net of a discount related to purchase accounting fair value adjustments of $6.0 million and $7.1 million at March 31, 2017 and December 31, 2016. The following table indicates the composition of loans as of the dates presented:



(dollars in thousands)	March 31, 2017		December 31, 2016
Commercial
Commercial real estate	$	2,614,724	$	2,498,476
Commercial and industrial	1,422,297		1,401,035
Commercial construction	455,211		455,884
Total Commercial Loans	4,492,232		4,355,395
Consumer
Residential mortgage	700,610		701,982
Home equity	479,402		482,284
Installment and other consumer	70,219		65,852
Consumer construction	4,363		5,906
Total Consumer Loans	1,254,594		1,256,024
Total Portfolio Loans	5,746,826		5,611,419
Loans held for sale	14,355		3,793
Total Loans	$	5,761,181	$	5,615,212

As of March 31, 2017, our acquired loans from the 2015 Integrity Bancshares, Inc. merger, or the Merger, were $488 million including $251 million of CRE, $118 million of C&I, $29.2 million of commercial construction, $68.5 million of residential mortgage and $21.3 million of home equity, installment and other consumer construction. These acquired loans decreased from acquired loans at December 31, 2016 of $543 million, including $273 million of CRE, $141 million of C&I, $33.0 million of commercial construction, $74.0 million of residential mortgage, $22.0 million of home equity, installment and other consumer construction.

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 monitor this risk by reviewing the relevant economic indicators and internal risk rating trends and through stress testing of the loans in these segments. Total commercial loans represented 78 percent of total portfolio loans at March 31, 2017 and December 31, 2016. Within our commercial portfolio, the CRE and Commercial Construction portfolios combined comprised $3.1 billion or 68 percent of total commercial loans and 53 percent of total portfolio loans at March 31, 2017 and comprised of $3.0 billion or 68 percent of total commercial loans and 53 percent of total portfolio loans at December 31, 2016. Further segmentation of the CRE and Commercial Construction portfolios by collateral type reveals no concentration in excess of seven percent of total loans at March 31, 2017 and December 31, 2016.

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 regional 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. Our CRE and Commercial Construction portfolios have out-of-market exposure of 5.2 percent of the combined portfolio and 2.8 percent of total loans at March 31, 2017 and 5.2 percent of the combined portfolio and 2.7 percent of total loans at December 31, 2016.

The increase in loans held for sale of $10.6 million related to two participation loans for $11.3 million that were sold subsequent to March 31, 2017.

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, 2017						December 31, 2016
(dollars in thousands)	Performing TDRs		Nonperforming TDRs		Total TDRs		Performing TDRs		Nonperforming TDRs		Total TDRs
Commercial real estate	$	2,715	$	625	$	3,340	$	2,994	$	646	$	3,640
Commercial and industrial	1,361		3,942		5,303		1,387		4,493		5,880
Commercial construction	2,959		427		3,386		2,966		430		3,396
Residential mortgage	2,242		4,321		6,563		2,375		5,068		7,443
Home equity	3,793		1,003		4,796		3,683		954		4,637
Installment and other consumer	16		6		22		18		7		25
Total	$	13,086	$	10,324	$	23,410	$	13,423	$	11,598	$	25,021

There were no TDRs returned to accruing status during the three months ended March 31, 2017 and March 31, 2016.

The following tables present the restructured loans categorized by type of concession during the periods presented:



	Three Months Ended March 31, 2017								Three months ended March 31, 2016
(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
Chapter 7 bankruptcy⁽²⁾	—	$	—	$	—	$	—		1	$	709	$	702	$	(7	)
Commercial and industrial
Maturity date extension	—	—		—		—			2	625		605		(20		)
Commercial Construction
Maturity date extension	—	—		—		—			1	33		33		—
Residential mortgage
Chapter 7 bankruptcy⁽²⁾	—	—		—		—			3	221		219		(2		)
Maturity date extension	—	—		—		—			1	483		483		—
Home equity
Chapter 7 bankruptcy⁽²⁾	6	269		266		(3		)	5	245		243		(2		)
Maturity date extension and interest rate reduction	1	173		172		(1		)	1	130		130		—
Maturity date extension	—	—		—		—			2	200		199		(1		)
Total by Concession Type
Principal deferral	—	$	—	$	—	$	—		—	$	—	$	—	$	—
Chapter 7 bankruptcy⁽²⁾	6	269		266		(3		)	9	1,175		1,164		(11		)
Maturity date extension and interest rate reduction	1	173		172		(1		)	1	130		130		—
Maturity date extension	—	—		—		—			6	1,341		1,320		(21		)
Total	7	$	442	$	438	$	(4	)	16	$	2,646	$	2,614	$	(32	)
⁽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, 2017, we modified seven C&I loans totaling $6.5 million and three CRE loans totaling $1.5 million that were not considered to be TDRs. The modifications were evaluated and determined not to be a concession. As of March 31, 2017, we have $0.5 million of commitments to lend additional funds on TDRs.

Defaulted TDRs are defined as loans having a payment default of 90 days or more after the restructuring takes place. There were no TDRs that defaulted during the three months ended March 31, 2017 and one commercial construction for $0.6 million for the three months ended March 31, 2016.

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



	Nonperforming Assets
(dollars in thousands)	March 31, 2017		December 31, 2016
Nonperforming Assets
Nonaccrual loans	$	35,668	$	31,037
Nonaccrual TDRs	10,324		11,598
Total nonaccrual loans	45,992		42,635
OREO	873		679
Total Nonperforming Assets	$	46,865	$	43,314