Loans are presented net of unearned income of $4.5 million and $5.2 million at June 30, 2017 and December 31, 2016 and net of a discount related to purchase accounting fair value adjustments of $4.9 million and $7.1 million at June 30, 2017 and December 31, 2016. The following table indicates the composition of loans as of the dates presented:



(dollars in thousands)	June 30, 2017		December 31, 2016
Commercial
Commercial real estate	$	2,664,642	$	2,498,476
Commercial and industrial	1,401,283		1,401,035
Commercial construction	426,754		455,884
Total Commercial Loans	4,492,679		4,355,395
Consumer
Residential mortgage	706,143		701,982
Home equity	484,960		482,284
Installment and other consumer	70,068		65,852
Consumer construction	3,969		5,906
Total Consumer Loans	1,265,140		1,256,024
Total Portfolio Loans	5,757,819		5,611,419
Loans held for sale	23,120		3,793
Total Loans	$	5,780,939	$	5,615,212

As of June 30, 2017, our acquired loans from the 2015 Integrity Bancshares, Inc. merger, or the Merger, were $443 million which included $231 million of Commercial Real Estate, or CRE, $109 million of Commercial & Industrial, or C&I, $18.7 million of commercial construction, $64.4 million of residential mortgage and $19.9 million of home equity, installment and other consumer construction. As of December 31, 2016 acquired loans were $543 million and which included $273 million of CRE, $141 million of C&I, $33.0 million of commercial construction, $74.0 million of residential mortgage and $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 June 30, 2017 and December 31, 2016. Within our commercial portfolio, the CRE and Commercial Construction portfolios combined comprised $3.1 billion or 69 percent of total commercial loans and 54 percent of total portfolio loans at June 30, 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 June 30, 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 5.3 percent of the combined portfolio and 2.8 percent of total loans at June 30, 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 $19.3 million relates to three commercial participation loans totaling $18.0 million that were held for sale at June 30, 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 troubled debt restructurings, or 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:



	June 30, 2017						December 31, 2016
(dollars in thousands)	Performing TDRs		Nonperforming TDRs		Total TDRs		Performing TDRs		Nonperforming TDRs		Total TDRs
Commercial real estate	$	2,672	$	704	$	3,376	$	2,994	$	646	$	3,640
Commercial and industrial	3,324		3,944		7,268		1,387		4,493		5,880
Commercial construction	2,953		423		3,376		2,966		430		3,396
Residential mortgage	2,235		4,111		6,346		2,375		5,068		7,443
Home equity	3,866		918		4,784		3,683		954		4,637
Installment and other consumer	30		5		35		18		7		25
Total	$	15,080	$	10,105	$	25,185	$	13,423	$	11,598	$	25,021

There was one TDR that returned to accruing status totaling $2.0 million during the three and six months ended June 30, 2017 and no TDRs returned to accruing status during the three and six months ended June 30, 2016.

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



	Three Months Ended June 30, 2017								Three months ended June 30, 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
Principal deferral	1	100		100		—			1	4,721		2,270		(2,451		)
Commercial and industrial
Principal deferral	1	429		429		—			5	985		985		—
Maturity date extension and interest rate reduction	2	1,800		1,800		—			—	—		—		—
Maturity date extension	—	—		—		—			1	130		130		—
Commercial Construction
Maturity date extension	—	—		—		—			4	1,324		1,269		(55		)
Residential mortgage
Principal deferral	—	—		—		—			1	3,273		3,273		—
Chapter 7 bankruptcy⁽²⁾	1	33		33		—			1	65		64		(1		)
Home equity
Chapter 7 bankruptcy⁽²⁾	3	40		38		(2		)	4	73		69		(4		)
Maturity date extension	1	231		231		—			3	120		120		—
Installment and other consumer
Chapter 7 bankruptcy⁽²⁾	2	37		34		(3		)	2	16		13		(3		)
Total by Concession Type
Principal deferral	2	$	529	$	529	$	—		7	$	8,979	$	6,528	$	(2,451	)
Chapter 7 bankruptcy⁽²⁾	6	110		105		(5		)	7	154		146		(8		)
Maturity date extension and interest rate reduction	2	1,800		1,800		—			—	—		—		—
Maturity date extension	1	231		231		—			8	1,574		1,519		(55		)
Total	11	$	2,670	$	2,665	$	(5	)	22	$	10,707	$	8,193	$	(2,514	)
⁽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.



	Six Months Ended June 30, 2017								Six Months Ended June 30, 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
Principal deferral	1	$	100	$	100	$	—		1	$	4,721	$	2,270	$	(2,451	)
Chapter 7 bankruptcy⁽²⁾	—	—		—		—			1	709		681		(28		)
Commercial and industrial
Principal deferral	1	429		429		—			5	985		985		—
Maturity Date extension and interest rate reduction	2	1,800		1,800		—			—	—		—		—
Maturity date extension	—	—		—		—			3	755		728		(27		)
Commercial Construction
Maturity date extension	—	—		—		—			5	1,357		1,303		(54		)
Residential mortgage
Principal deferral	—	—		—		—			1	3,273		3,273		—
Chapter 7 bankruptcy⁽²⁾	1	33		33		—			4	285		280		(5		)
Maturity date extension	—	—		—		—			1	483		483		—
Home equity
Principal deferral	—	—		—		—			1	47		46		(1		)
Chapter 7 bankruptcy⁽²⁾	9	309		304		(5		)	9	318		309		(9		)
Maturity date extension and interest rate reduction	1	173		172		(1		)	1	130		128		(2		)
Maturity date extension	1	231		231		—			4	274		272		(2		)
Installment and other consumer
Chapter 7 bankruptcy⁽²⁾	2	37		34		(3		)	2	16		13		(3		)
Total by Concession Type
Principal deferral	2	529		529		—			8	9,026		6,574		(2,452		)
Chapter 7 bankruptcy⁽²⁾	12	379		371		(8		)	16	1,328		1,283		(45		)
Maturity date extension and interest rate reduction	3	1,973		1,972		(1		)	1	130		128		(2		)
Maturity date extension	1	231		231		—			13	2,869		2,786		(83		)
Total	18	$	3,112	$	3,103	$	(9	)	38	$	13,353	$	10,771	$	(2,582	)
⁽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 June 30, 2017, we modified two C&I loans totaling $3.9 million that were not considered to be TDRs. For the six months ended June 30, 2017, we modified 12 loans totaling $11.8 million of which nine were C&I loans totaling $10.4 million and three CRE loans totaling $1.4 million. The modifications primarily related to maturity date extensions that were deemed to be an insignificant time period. As of June 30, 2017, we have $0.6 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 June 30, 2017 and June 30, 2016. There were no TDRs that defaulted during the six months ended June 30, 2017 and one commercial construction loan for $0.6 million that defaulted for the six months ended June 30, 2016.

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



	Nonperforming Assets
(dollars in thousands)	June 30, 2017		December 31, 2016
Nonperforming Assets
Nonaccrual loans	$	26,564	$	31,037
Nonaccrual TDRs	10,105		11,598
Total nonaccrual loans	36,669		42,635
OREO	1,620		679
Total Nonperforming Assets	$	38,289	$	43,314