Loans are presented net of unearned income of $8.5 million at June 30, 2022 and $14.1 million at December 31, 2021 and net of a discount related to purchase accounting fair value adjustments of $5.3 million at June 30, 2022 and $6.7 million at December 31, 2021. The following table summarizes the composition of originated and acquired loans as of the dates presented:


(dollars in thousands)	June 30, 2022		December 31, 2021
Commercial
Commercial real estate	$	3,191,670	$	3,236,653
Commercial and industrial	1,695,031		1,728,969
Commercial construction	410,425		440,962
Total Commercial Loans	5,297,126		5,406,584
Consumer
Consumer real estate	1,623,830		1,485,478
Other consumer	119,938		107,928
Total Consumer Loans	1,743,768		1,593,406
Total Portfolio Loans	7,040,894		6,999,990
Loans held for sale	1,311		1,522
Total Loans (1)	$	7,042,205	$	7,001,512

Commercial and industrial loans, or C&I, included $11.7 million of loans originated under the Paycheck Protection Program, or PPP, at June 30, 2022 compared to $88.3 million at December 31, 2021. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security, or CARES Act was signed into law. The CARES Act included the PPP, a program designed to aid small and medium sized businesses through federally guaranteed loans distributed through banks. PPP loans are forgivable, in whole or in part, if the proceeds are used for payroll and other permitted expenses in accordance with the requirements of the PPP. The loans are 100 percent guaranteed by the Small Business Administration, or SBA.

Our business banking segment was $1.2 billion at June 30, 2022 compared to $1.1 billion at December 31, 2021. Business banking consists of commercial purpose loans made to small businesses that are standard, non-complex products evaluated through a streamlined credit approval process that has been designed to maximize efficiency while maintaining high credit quality standards that meet small business market customers’ needs. Business banking consisted of $565.7 million of commercial real estate loans, $217.9 million of C&I loans of which $11.7 million are PPP loans, $15.1 million of commercial construction loans and $364.6 million of loans secured by consumer real estate at June 30, 2022. At December 31, 2021 business banking consisted of $546.1 million of commercial real estate loans, $215.4 million of C&I loans of which $39.7 million are PPP loans, $16.2 million of commercial construction loans and $357.9 million of loans secured by consumer real estate.

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 reviewing the relevant economic indicators and internal risk rating trends and through stress testing of the loans in these segments to determine if additional ACL is needed. Total commercial loans represented 75.2 percent of total portfolio loans at June 30, 2022 compared to 77.2 percent at December 31, 2021. Within our commercial portfolio, the CRE and commercial construction portfolios combined comprised $3.6 billion, or 68.0 percent, of total commercial loans and 51.2 percent of total portfolio loans at June 30, 2022 and $3.7 billion, or 68.0 percent, of total commercial loans and 52.5 percent of total portfolio loans at December 31, 2021.

We lend primarily in Pennsylvania and the contiguous states of Ohio, New York, West Virginia and Maryland. The majority of our commercial and consumer loans are made to businesses and individuals in this geography, resulting in a 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 and information supplied by our customers. We also use subscription services for additional geographic and industry specific information. Our CRE and commercial construction portfolios have exposure outside of this geography of 6.4 percent of the combined portfolios and 3.3 percent of total portfolio loans at June 30, 2022. This compares to 5.7 percent of the combined portfolios and 3.0 percent of total portfolio loans at December 31, 2021.

We evaluate all substandard commercial, consumer and residential mortgage loans that have experienced a forbearance or change in terms to modify their existing loan to determine if they should be designated as troubled debt restructurings, or TDRs.

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.


	June 30, 2022						December 31, 2021
(dollars in thousands)	Accruing TDRs		Nonaccruing TDRs		Total TDRs		Accruing TDRs		Nonaccruing TDRs		Total TDRs
Commercial real estate	$	—	$	16	$	16	$	—	$	1,697	$	1,697
Commercial and industrial	690		—		690		748		14,889		15,637
Commercial construction	1,694		480		2,174		2,190		2,087		4,277
Business banking	680		1,325		2,005		858		1,696		2,554
Consumer real estate	6,269		2,189		8,458		6,122		1,405		7,527
Other consumer	5		—		5		3		—		3
Total	$	9,338	$	4,010	$	13,348	$	9,921	$	21,774	$	31,695

During the three months ended June 30, 2022, there were no TDRs that returned to accruing status compared to four TDRs totaling $0.5 million during the three months ended June 30, 2021. During the six months ended June 30, 2022, there were no TDRs that returned to accruing status compared to five TDRs totaling $0.5 million during the six months ended June 30, 2021.


	Three Months Ended June 30, 2022
	Number of Contracts	Type of Modification										Total Post-Modification Outstanding Recorded Investment(2)		Total Pre-Modification Outstanding Recorded Investment(2)
(dollars in thousands)		Bankruptcy(1)		Other		Extend Maturity		Modify Rate		Modify Payments
Commercial real estate	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial industrial	—	—		—		—		—		—		—		—
Commercial construction	—	—		—		—		—		—		—		—
Business banking	—	—		—		—		—		—		—		—
Consumer real estate	8	286		—		139		—		—		425		429
Other consumer	1	2		—		—		—		—		2		3
Total	9	$	288	$	—	$	139	$	—	$	—	$	427	$	432
(1) Bankruptcy is consumer bankruptcy loans where the debt has been legally discharged through the bankruptcy court and not reaffirmed. (2) 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.


	Three Months Ended June 30, 2021
	Number of Contracts	Type of Modification										Total Post-Modification Outstanding Recorded Investment(2)		Total Pre-Modification Outstanding Recorded Investment(2)
(dollars in thousands)		Bankruptcy(1)		Other		Extend Maturity		Modify Rate		Modify Payments
Commercial real estate	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial industrial	—	—		—		—		—		—		—		—
Commercial construction	—	—		—		—		—		—		—		—
Business banking	4	—		—		1,130		—		—		1,130		1,130
Consumer real estate	4	247		—		—		—		—		247		254
Other consumer	—	—		—		—		—		—		—		—
Total	8	$	247	$	—	$	1,130	$	—	$	—	$	1,377	$	1,384
(1) Bankruptcy is consumer bankruptcy loans where the debt has been legally discharged through the bankruptcy court and not reaffirmed. (2) 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.


	Six Months Ended June 30, 2022
	Number of Contracts	Type of Modification										Total Post-Modification Outstanding Recorded Investment(2)		Total Pre-Modification Outstanding Recorded Investment(2)
(dollars in thousands)		Bankruptcy(1)		Other		Extend Maturity		Modify Rate		Modify Payments
Commercial real estate	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial industrial	—	—		—		—		—		—		—		—
Commercial construction	—	—		—		—		—		—		—		—
Business banking	—	—		—		—		—		—		—		—
Consumer real estate	15	1,043		—		884		—		—		1,927		2,357
Other consumer	1	3		—		—		—		—		3		3
Total	16	$	1,046	$	—	$	884	$	—	$	—	$	1,930	$	2,360
(1) Bankruptcy is consumer bankruptcy loans where the debt has been legally discharged through the bankruptcy court and not reaffirmed. (2) 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.


	Six Months Ended June 30, 2021
	Number of Contracts	Type of Modification										Total Post-Modification Outstanding Recorded Investment(2)		Total Pre-Modification Outstanding Recorded Investment(2)
(dollars in thousands)		Bankruptcy(1)		Other		Extend Maturity		Modify Rate		Modify Payments
Commercial real estate	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial industrial	2	—		—		796		5,433		—		6,229		6,304
Commercial construction	—	—		—		—		—		—		—		—
Business banking	5	—		80		1,130		—		—		1,210		1,210
Consumer real estate	13	573		—		—		—		147		720		739
Other consumer	1	—		—		—		—		—		—		1
Total	21	$	573	$	80	$	1,926	$	5,433	$	147	$	8,159	$	8,254
(1) Bankruptcy is consumer bankruptcy loans where the debt has been legally discharged through the bankruptcy court and not reaffirmed. (2) 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.

As of June 30, 2022, we had 13 commitments to lend an additional $0.3 million on TDRs compared to 14 commitments to lend an additional $0.7 million as of June 30, 2021. Defaulted TDRs are defined as loans having a payment default of 90 days or more after the restructuring takes place that were restructured within the last 12 months prior to defaulting. There were no TDRs that defaulted during the three months ended June 30,2022 and one TDR for $0.1 million that defaulted during the six months ended June 30, 2022 and no TDRs that defaulted during the three and six months ended June 30, 2021.


	Nonperforming Assets
(dollars in thousands)	June 30, 2022			December 31, 2021
Nonperforming Assets
Nonaccrual loans		$	27,765		$	44,517
Nonaccrual TDRs		4,010			21,774
Total Nonaccrual Loans		31,775			66,291
OREO		7,046			13,313
Total Nonperforming Assets		$	38,821		$	79,604