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Loans | 3 Months Ended
--- | ---
Mar. 31, 2017
Loans [Abstract] |
Loans | Note 4 – Loans
The following table provides the balance of loans by portfolio segment as of March 31, 2017 and December 31, 2016:
|  | March 31 |  | December 31
(Dollars in thousands) | 2017 |  | 2016
Commercial: |  |  |  |  |
| Commercial, financial, and industrial | $ | 11,703,996 |  | $ | 12,148,087
| Commercial real estate |  | 2,173,311 |  |  | 2,135,523
Consumer: |  |  |  |  |
| Consumer real estate (a) |  | 4,456,811 |  |  | 4,523,752
| Permanent mortgage |  | 409,235 |  |  | 423,125
| Credit card & other |  | 346,721 |  |  | 359,033
Loans, net of unearned income | $ | 19,090,074 |  | $ | 19,589,520
Allowance for loan losses |  | 201,968 |  |  | 202,068
Total net loans | $ | 18,888,106 |  | $ | 19,387,452
Balances as of March 3 1, 201 7 and December 31, 201 6, include $32.5 million and $35.9 million of restricted real estate loans, respectively. See Note 13 - Variable Interest Entities for additional information. C OMPONENTS OF THE LOAN PORTFOLIO T he loan portfolio is disaggregated into segments and then further disaggregated into classes for certain disclosures. GAAP defines a portfolio segment as the level at which an entity develops and documents a systematic method for determining its allowance for credit losses. A class is generally determined based on the initial measurement attribute (i.e., amortized cost or purchased credit-impaired), risk characteristics of the loan, and FHN’s method for monitoring and as sessing credit risk. Commercial loan portfolio segments include commercial, financial and industrial ("C&I") and commercial real estate ("CRE"). Commercial classes within C&I include general C&I, loans to mortgage companies, the trust preferred loans ("TRU P S") (i.e. long-term unsecured loans to bank and insurance - related businesses) portfolio and purchased credit-impaired (“PCI”) loans. Loans to mortgage companies include commercial lines of credit to qualified mortgage companies primarily for the tempora ry warehousing of eligible mortgage loans prior to the borrower’s sale of those mortgage loans to third party investors. Commercial classes within CRE include income CRE, residential CRE and PCI loans. Consumer loan portfolio segments include consumer real estate, permanent mortgage, and the credit card and other portfolio. Consumer classes include home equity lines of credit (“HELOC s”), real estate ("R/E") installment and PCI loans within the consumer real estate segment, permanent mortgage (which is both a segment and a class), and credit card and other. Concentrations FHN has a concentration of residential real estate loans (25 percent of total loans), the majority of which is in the consumer real estate segment (23 percent of total loans). Loans to fin ance and insurance companies total $2.6 billion (22 percent of the C&I portfolio, or 13 percent of the total loans). FHN had loans to mortgage companies totaling $1.5 billion (13 percent of the C&I segment, or 8 percent of total loans) as of March 31, 2017. As a result, 35 percent of the C&I segment is sensitive to impacts on the financial services industry. Purchased Credit-Impaired Loans
The following table presents a rollforward of the accretable yield for the three months ended March 31, 2017 and 2016:
|  | Three Months Ended
|  | March 31
(Dollars in thousands) |  | 2017 |  |  | 2016
Balance, beginning of period | $ | 6,871 |  | $ | 8,542
Accretion |  | (851) |  |  | (1,151)
Adjustment for payoffs |  | (273) |  |  | (1,777)
Adjustment for charge-offs |  | - |  |  | (663)
Adjustment for pool excess recovery (a) |  | (222) |  |  | -
Increase/(decrease) in accretable yield (b) |  | (295) |  |  | 4,007
Other |  | (32) |  |  | -
Balance, end of period | $ | 5,198 |  | $ | 8,958
Represents the removal of accretable difference for the remaining loans in a pool which is now in a recovery state. Includes changes in the accretable yield due to both transfers from the nonaccretable difference and the impact of changes in the expected timing of the cash flows. At March 3 1, 201 7, the ALLL related to PCI loans was $.6 milli on compared to $.7 million at December 3 1, 201 6. The loan loss provision amounts related to PCI loans recognized during the three months ended March 31, 2017, and 2016, respectively, were not significant.
The following table reflects the outstanding principal balance and carrying amounts of the acquired PCI loans as of March 31, 2017 and December 31, 2016:
| March 31, 2017 |  | December 31, 2016
(Dollars in thousands) | Carrying value |  | Unpaid balance |  | Carrying value |  | Unpaid balance
Commercial, financial and industrial | $ | 38,088 |  | $ | 39,257 |  | $ | 40,368 |  | $ | 41,608
Commercial real estate |  | 4,096 |  |  | 5,466 |  |  | 4,763 |  |  | 6,514
Consumer real estate |  | 1,072 |  |  | 1,442 |  |  | 1,172 |  |  | 1,677
Credit card and other |  | 53 |  |  | 64 |  |  | 52 |  |  | 64
Total | $ | 43,309 |  | $ | 46,229 |  | $ | 46,355 |  | $ | 49,863
Impaired Loans
The following tables provide information at March 31, 2017 and December 31, 2016, by class related to individually impaired loans and consumer TDRs, regardless of accrual status. Recorded investment is defined as the amount of the investment in a loan, before valuation allowance but which does reflect any direct write-down of the investment. For purposes of this disclosure, PCI loans and the TRUPs valuation allowance have been excluded.
|  |  | Three Months Ended March 31
|  | March 31, 2017 |
|  |  | 2017 |  | 2016
|  |  |  |  | Unpaid |  |  |  |  | Average |  | Interest |  | Average |  | Interest
|  | Recorded | Principal | Related |  | Recorded |  | Income |  | Recorded |  | Income
(Dollars in thousands) | Investment | Balance | Allowance |  | Investment |  | Recognized |  | Investment |  | Recognized
Impaired loans with no related allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| General C&I | $ | 10,395 |  | $ | 16,612 |  | $ | - |  | $ | 10,407 |  | $ | - |  | $ | 9,224 |  | $ | -
| Income CRE |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 2,468 |  |  | -
| Total | $ | 10,395 |  | $ | 16,612 |  | $ | - |  | $ | 10,407 |  | $ | - |  | $ | 11,692 |  | $ | -
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| HELOC (a) | $ | 10,724 |  | $ | 22,020 |  | $ | - |  | $ | 11,054 |  | $ | - |  | $ | 10,921 |  | $ | -
| R/E installment loans (a) |  | 3,916 |  |  | 4,987 |  |  | - |  |  | 3,937 |  |  | - |  |  | 4,434 |  |  | -
| Permanent mortgage (a) |  | 5,803 |  |  | 8,607 |  |  | - |  |  | 5,557 |  |  | - |  |  | 4,436 |  |  | -
| Total | $ | 20,443 |  | $ | 35,614 |  | $ | - |  | $ | 20,548 |  | $ | - |  | $ | 19,791 |  | $ | -
Impaired loans with related allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| General C&I | $ | 31,392 |  | $ | 31,532 |  | $ | 2,850 |  | $ | 32,863 |  | $ | 215 |  | $ | 24,921 |  | $ | 87
| TRUPS |  | 3,183 |  |  | 3,700 |  |  | 925 |  |  | 3,196 |  |  | - |  |  | 3,323 |  |  | -
| Income CRE |  | 1,803 |  |  | 2,181 |  |  | 61 |  |  | 1,817 |  |  | 14 |  |  | 5,138 |  |  | 20
| Residential CRE |  | 1,293 |  |  | 1,761 |  |  | 131 |  |  | 1,293 |  |  | 5 |  |  | 1,397 |  |  | 6
| Total | $ | 37,671 |  | $ | 39,174 |  | $ | 3,967 |  | $ | 39,169 |  | $ | 234 |  | $ | 34,779 |  | $ | 113
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| HELOC | $ | 81,438 |  | $ | 83,888 |  | $ | 16,641 |  | $ | 83,075 |  | $ | 564 |  | $ | 88,580 |  | $ | 487
| R/E installment loans |  | 50,394 |  |  | 51,317 |  |  | 12,060 |  |  | 51,902 |  |  | 318 |  |  | 59,971 |  |  | 317
| Permanent mortgage |  | 82,940 |  |  | 94,755 |  |  | 11,532 |  |  | 85,778 |  |  | 615 |  |  | 95,232 |  |  | 547
| Credit card & other |  | 269 |  |  | 269 |  |  | 122 |  |  | 288 |  |  | 2 |  |  | 360 |  |  | 3
| Total | $ | 215,041 |  | $ | 230,229 |  | $ | 40,355 |  | $ | 221,043 |  | $ | 1,499 |  | $ | 244,143 |  | $ | 1,354
Total commercial | $ | 48,066 |  | $ | 55,786 |  | $ | 3,967 |  | $ | 49,576 |  | $ | 234 |  | $ | 46,471 |  | $ | 113
Total consumer | $ | 235,484 |  | $ | 265,843 |  | $ | 40,355 |  | $ | 241,591 |  | $ | 1,499 |  | $ | 263,934 |  | $ | 1,354
Total impaired loans | $ | 283,550 |  | $ | 321,629 |  | $ | 44,322 |  | $ | 291,167 |  | $ | 1,733 |  | $ | 310,405 |  | $ | 1,467
All discharged bankruptcy loans are charged down to an estimate of net realizable value and do not carry any allowance.
|  | December 31, 2016
|  |  |  |  | Unpaid |  |  |  | Average |  | Interest
|  | Recorded | Principal | Related | Recorded | Income
(Dollars in thousands) | Investment | Balance | Allowance |  | Investment | Recognized
Impaired loans with no related allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| General C&I | $ | 10,419 |  | $ | 16,636 |  | $ | - |  | $ | 12,009 |  | $ | -
| Income CRE |  | - |  |  | - |  |  | - |  |  | 1,543 |  |  | -
| Total | $ | 10,419 |  | $ | 16,636 |  | $ | - |  | $ | 13,552 |  | $ | -
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| HELOC (a) | $ | 11,383 |  | $ | 21,662 |  | $ | - |  | $ | 11,168 |  | $ | -
| R/E installment loans (a) |  | 3,957 |  |  | 4,992 |  |  | - |  |  | 4,255 |  |  | -
| Permanent mortgage (a) |  | 5,311 |  |  | 7,899 |  |  | - |  |  | 4,418 |  |  | -
| Total | $ | 20,651 |  | $ | 34,553 |  | $ | - |  | $ | 19,841 |  | $ | -
Impaired loans with related allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| General C&I | $ | 34,334 |  | $ | 34,470 |  | $ | 3,294 |  | $ | 30,836 |  | $ | 902
| TRUPS |  | 3,209 |  |  | 3,700 |  |  | 925 |  |  | 3,274 |  |  | -
| Income CRE |  | 1,831 |  |  | 2,209 |  |  | 62 |  |  | 3,757 |  |  | 70
| Residential CRE |  | 1,293 |  |  | 1,761 |  |  | 132 |  |  | 1,360 |  |  | 22
| Total | $ | 40,667 |  | $ | 42,140 |  | $ | 4,413 |  | $ | 39,227 |  | $ | 994
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| HELOC | $ | 84,711 |  | $ | 87,126 |  | $ | 15,927 |  | $ | 87,659 |  | $ | 2,092
| R/E installment loans |  | 53,409 |  |  | 54,559 |  |  | 12,875 |  |  | 57,906 |  |  | 1,370
| Permanent mortgage |  | 88,615 |  |  | 100,983 |  |  | 12,470 |  |  | 91,838 |  |  | 2,310
| Credit card & other |  | 306 |  |  | 306 |  |  | 133 |  |  | 345 |  |  | 13
| Total | $ | 227,041 |  | $ | 242,974 |  | $ | 41,405 |  | $ | 237,748 |  | $ | 5,785
Total commercial | $ | 51,086 |  | $ | 58,776 |  | $ | 4,413 |  | $ | 52,779 |  | $ | 994
Total consumer | $ | 247,692 |  | $ | 277,527 |  | $ | 41,405 |  | $ | 257,589 |  | $ | 5,785
Total impaired loans | $ | 298,778 |  | $ | 336,303 |  | $ | 45,818 |  | $ | 310,368 |  | $ | 6,779
All discharged bankruptcy loans are charged down to an estimate of net realizable value and do not carry any allowance. Asset Quality Indicators FHN employs a dual grade commercial risk grading methodology to assign an estimate for the probability of default ("PD") and the loss given default ("LGD") for each commercial loan using factors specific to various industry, portfolio, or product segments that result in a rank ordering of risk and the assignment of grades PD 1 to PD 16. This credit grading system is intended to identify and measure the credit quality of the loan portfolio by analyzing the migration of loans be tween grading categories. It is also integral to the estimation methodology utilized in determining the allowance for loan losses since an allowance is established for pools of commercial loans based on the credit grade assigned. Each PD grade corresponds to an estimated one-year default probability percentage; a PD 1 has the lowest expected default probability, and probabilities increase as grades progress down the scale. PD 1 through PD 12 are “pass” grades. P D grades 13-16 correspond to the regulatory-de fined categories of special mention (13), substandard (14), doubtful (15), and loss (16). Pass loan grades are required to be reassessed annually or earlier whenever there has been a material change in the financial condition of the borrower or risk charac teristics of the relationship. All commercial loans over $1 million and certain commercial loans over $500,000 that are graded 13 or worse are reassessed on a quarterly basis. Loan grading discipline is regularly reviewed internally by Credit Assurance Ser vices to determine if the process continues to result in accurate loan grading across the portfolio. FHN may utilize availability of guarantors/sponsors to support lending decisions during the credit underwriting process and when determining the assignment of internal loan grades. LGD grades are assigned based on a scale of 1-12 and represent FHN’s expected recovery based on collateral type in the event a loan defaults. See Note 5 – Allowance for Loan Losses for further discussion on the credit grading syste m.
The following tables provide the balances of commercial loan portfolio classes with associated allowance, disaggregated by PD grade as of March 31, 2017 and December 31, 2016:
| March 31, 2017
|  |  |  | Loans to |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Allowance
| General |  | Mortgage |  |  |  |  | Income | Residential |  |  |  | Percentage |  |  | for Loan
(Dollars in thousands) | C&I |  | Companies |  | TRUPS (a) |  | CRE | CRE | Total |  | of Total |  |  | Losses
PD Grade: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1 | $ | 478,025 |  | $ | - |  | $ | - |  | $ | 610 |  | $ | - |  | $ | 478,635 |  |  | 3 | % |  | $ | 78
2 |  | 891,450 |  |  | - |  |  | - |  |  | 11,293 |  |  | 81 |  |  | 902,824 |  |  | 7 |  |  |  | 442
3 |  | 403,403 |  |  | 398,860 |  |  | - |  |  | 160,115 |  |  | - |  |  | 962,378 |  |  | 7 |  |  |  | 239
4 |  | 998,015 |  |  | 227,257 |  |  | - |  |  | 242,069 |  |  | 221 |  |  | 1,467,562 |  |  | 11 |  |  |  | 879
5 |  | 1,269,384 |  |  | 139,434 |  |  | - |  |  | 426,147 |  |  | 333 |  |  | 1,835,298 |  |  | 13 |  |  |  | 7,260
6 |  | 1,535,573 |  |  | 521,253 |  |  | - |  |  | 368,073 |  |  | 8,072 |  |  | 2,432,971 |  |  | 17 |  |  |  | 10,600
7 |  | 1,479,242 |  |  | 169,444 |  |  | - |  |  | 396,654 |  |  | 2,161 |  |  | 2,047,501 |  |  | 15 |  |  |  | 12,767
8 |  | 1,042,772 |  |  | 49,588 |  |  | - |  |  | 352,370 |  |  | 4,383 |  |  | 1,449,113 |  |  | 10 |  |  |  | 24,532
9 |  | 641,463 |  |  | 4,643 |  |  | - |  |  | 82,734 |  |  | 3,357 |  |  | 732,197 |  |  | 5 |  |  |  | 14,396
10 |  | 344,633 |  |  | 4,499 |  |  | - |  |  | 35,489 |  |  | 9,695 |  |  | 394,316 |  |  | 3 |  |  |  | 8,510
11 |  | 228,258 |  |  | - |  |  | - |  |  | 17,501 |  |  | 5,454 |  |  | 251,213 |  |  | 2 |  |  |  | 6,289
12 |  | 162,238 |  |  | 13,956 |  |  | - |  |  | 15,831 |  |  | 2,965 |  |  | 194,990 |  |  | 1 |  |  |  | 6,862
13 |  | 115,844 |  |  | - |  |  | 304,236 |  |  | 4,755 |  |  | 128 |  |  | 424,963 |  |  | 3 |  |  |  | 3,757
14,15,16 |  | 197,230 |  |  | 48 |  |  | - |  |  | 14,395 |  |  | 1,183 |  |  | 212,856 |  |  | 2 |  |  |  | 23,177
Collectively evaluated for impairment |  | 9,787,530 |  |  | 1,528,982 |  |  | 304,236 |  |  | 2,128,036 |  |  | 38,033 |  |  | 13,786,817 |  |  | 99 |  |  |  | 119,788
Individually evaluated for impairment |  | 41,787 |  |  | - |  |  | 3,183 |  |  | 1,803 |  |  | 1,293 |  |  | 48,066 |  |  | 1 |  |  |  | 3,967
Purchased credit-impaired loans |  | 38,278 |  |  | - |  |  | - |  |  | 4,052 |  |  | 94 |  |  | 42,424 |  |  | - |  |  |  | 240
Total commercial loans | $ | 9,867,595 |  | $ | 1,528,982 |  | $ | 307,419 |  | $ | 2,133,891 |  | $ | 39,420 |  | $ | 13,877,307 |  |  | 100 | % |  | $ | 123,995
| December 31, 2016
|  |  |  | Loans to |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Allowance
| General | Mortgage |  |  | Income | Residential |  |  |  | Percentage |  | for Loan
(Dollars in thousands) | C&I | Companies | TRUPS (a) | CRE | CRE | Total |  | of Total |  | Losses
PD Grade: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1 | $ | 465,179 |  | $ | - |  | $ | - |  | $ | 1,078 |  | $ | - |  | $ | 466,257 |  |  | 3 | % |  | $ | 77
2 |  | 791,183 |  |  | - |  |  | - |  |  | 11,742 |  |  | 87 |  |  | 803,012 |  |  | 6 |  |  |  | 403
3 |  | 491,386 |  |  | 462,486 |  |  | - |  |  | 153,670 |  |  | - |  |  | 1,107,542 |  |  | 8 |  |  |  | 304
4 |  | 978,282 |  |  | 332,107 |  |  | - |  |  | 222,422 |  |  | - |  |  | 1,532,811 |  |  | 11 |  |  |  | 953
5 |  | 1,232,401 |  |  | 275,209 |  |  | - |  |  | 365,653 |  |  | 702 |  |  | 1,873,965 |  |  | 13 |  |  |  | 6,670
6 |  | 1,540,519 |  |  | 614,109 |  |  | - |  |  | 338,344 |  |  | 9,338 |  |  | 2,502,310 |  |  | 17 |  |  |  | 10,403
7 |  | 1,556,117 |  |  | 317,283 |  |  | - |  |  | 352,390 |  |  | 2,579 |  |  | 2,228,369 |  |  | 16 |  |  |  | 14,010
8 |  | 963,359 |  |  | 30,974 |  |  | - |  |  | 425,503 |  |  | 2,950 |  |  | 1,422,786 |  |  | 10 |  |  |  | 25,986
9 |  | 611,774 |  |  | 4,299 |  |  | - |  |  | 105,277 |  |  | 4,417 |  |  | 725,767 |  |  | 5 |  |  |  | 13,857
10 |  | 355,359 |  |  | 8,663 |  |  | - |  |  | 50,484 |  |  | 9,110 |  |  | 423,616 |  |  | 3 |  |  |  | 8,400
11 |  | 238,230 |  |  | - |  |  | - |  |  | 20,600 |  |  | 6,541 |  |  | 265,371 |  |  | 2 |  |  |  | 6,556
12 |  | 170,531 |  |  | - |  |  | - |  |  | 15,395 |  |  | 4,168 |  |  | 190,094 |  |  | 1 |  |  |  | 6,377
13 |  | 121,276 |  |  | - |  |  | 304,236 |  |  | 6,748 |  |  | 311 |  |  | 432,571 |  |  | 3 |  |  |  | 4,225
14,15,16 |  | 194,572 |  |  | 59 |  |  | - |  |  | 16,313 |  |  | 1,659 |  |  | 212,603 |  |  | 1 |  |  |  | 20,297
Collectively evaluated for impairment |  | 9,710,168 |  |  | 2,045,189 |  |  | 304,236 |  |  | 2,085,619 |  |  | 41,862 |  |  | 14,187,074 |  |  | 99 |  |  |  | 118,518
Individually evaluated for impairment |  | 44,753 |  |  | - |  |  | 3,209 |  |  | 1,831 |  |  | 1,293 |  |  | 51,086 |  |  | 1 |  |  |  | 4,413
Purchased credit-impaired loans |  | 40,532 |  |  | - |  |  | - |  |  | 4,583 |  |  | 335 |  |  | 45,450 |  |  | - |  |  |  | 319
Total commercial loans | $ | 9,795,453 |  | $ | 2,045,189 |  | $ | 307,445 |  | $ | 2,092,033 |  | $ | 43,490 |  | $ | 14,283,610 |  |  | 100 | % |  | $ | 123,250
Balances as of March 31, 2017 and December 31, 2016, presented net of a $25.5 million valuation allowance. Based on the underlying structure of the notes, the highest possible internal grade is "13". The consumer portfolio is comprised primarily of smaller-balance loans which are very similar in nature in that most are standard products and are backed by residential real estate. Because of the similarities of consumer loan-types, FHN is able to utilize the Fair Isaac Corporation (“FICO”) score, among other attributes, to assess the credit quality of consumer borrowers. FICO scores are refreshed on a quarterly basis in an attempt to reflect the recent risk profile of th e borrowers. Accruing delinquency amounts are indicators of asset quality within the credit card and other consumer portfolio.
The following table reflects the percentage of balances outstanding by average, refreshed FICO scores for the HELOC, real estate installment, and permanent mortgage classes of loans as of March 31, 2017 and December 31, 2016:
| March 31, 2017 |  | December 31, 2016
| HELOC | R/E Installment Loans | Permanent Mortgage |  | HELOC | R/E Installment Loans | Permanent Mortgage
FICO score 740 or greater | 57.6 | % | 70.1 | % | 45.5 | % |  | 56.9 | % | 70.3 | % | 45.0 | %
FICO score 720-739 | 8.8 |  | 8.0 |  | 8.7 |  |  | 8.8 |  | 8.3 |  | 9.5 |
FICO score 700-719 | 8.2 |  | 7.2 |  | 9.5 |  |  | 8.6 |  | 6.8 |  | 9.2 |
FICO score 660-699 | 12.6 |  | 9.0 |  | 16.8 |  |  | 13.2 |  | 8.4 |  | 17.1 |
FICO score 620-659 | 5.7 |  | 3.0 |  | 8.9 |  |  | 5.6 |  | 3.5 |  | 9.1 |
FICO score less than 620 (a) | 7.1 |  | 2.7 |  | 10.6 |  |  | 6.9 |  | 2.7 |  | 10.1 |
Total | 100.0 | % | 100.0 | % | 100.0 | % |  | 100.0 | % | 100.0 | % | 100.0 | %
For this group, a majority of the loan balances had FICO scores at the time of the origination that exceeded 620 but have since deteriorated as the loans have seasoned. Nonaccrual and Past Due Loans
The following table reflects accruing and non-accruing loans by class on March 31, 2017:
| Accruing |  | Non-Accruing |  |
|  |  |  | 30-89 |  | 90+ |  |  |  |  |  |  |  | 30-89 |  | 90+ |  | Total |  |  |
|  |  |  | Days |  | Days |  | Total |  |  |  |  | Days |  | Days |  | Non- |  | Total
(Dollars in thousands) | Current |  | Past Due |  | Past Due |  | Accruing |  | Current |  | Past Due |  | Past Due |  | Accruing |  | Loans
Commercial (C&I): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
General C&I | $ | 9,781,688 |  | $ | 20,073 |  | $ | 101 |  | $ | 9,801,862 |  | $ | 14,511 |  | $ | 113 |  | $ | 12,831 |  | $ | 27,455 |  | $ | 9,829,317
Loans to mortgage companies |  | 1,528,934 |  |  | - |  |  | - |  |  | 1,528,934 |  |  | - |  |  | - |  |  | 48 |  |  | 48 |  |  | 1,528,982
TRUPS (a) |  | 304,236 |  |  | - |  |  | - |  |  | 304,236 |  |  | - |  |  | - |  |  | 3,183 |  |  | 3,183 |  |  | 307,419
Purchased credit-impaired loans |  | 38,045 |  |  | 8 |  |  | 225 |  |  | 38,278 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 38,278
Total commercial (C&I) |  | 11,652,903 |  |  | 20,081 |  |  | 326 |  |  | 11,673,310 |  |  | 14,511 |  |  | 113 |  |  | 16,062 |  |  | 30,686 |  |  | 11,703,996
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income CRE |  | 2,128,111 |  |  | 128 |  |  | - |  |  | 2,128,239 |  |  | 100 |  |  | - |  |  | 1,500 |  |  | 1,600 |  |  | 2,129,839
Residential CRE |  | 38,531 |  |  | - |  |  | - |  |  | 38,531 |  |  | - |  |  | - |  |  | 795 |  |  | 795 |  |  | 39,326
Purchased credit-impaired loans |  | 3,605 |  |  | 541 |  |  | - |  |  | 4,146 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 4,146
Total commercial real estate |  | 2,170,247 |  |  | 669 |  |  | - |  |  | 2,170,916 |  |  | 100 |  |  | - |  |  | 2,295 |  |  | 2,395 |  |  | 2,173,311
Consumer real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
HELOC |  | 1,521,042 |  |  | 16,612 |  |  | 10,247 |  |  | 1,547,901 |  |  | 46,661 |  |  | 4,187 |  |  | 8,345 |  |  | 59,193 |  |  | 1,607,094
R/E installment loans |  | 2,814,663 |  |  | 7,056 |  |  | 4,427 |  |  | 2,826,146 |  |  | 17,477 |  |  | 1,993 |  |  | 2,679 |  |  | 22,149 |  |  | 2,848,295
Purchased credit-impaired loans |  | 1,328 |  |  | - |  |  | 94 |  |  | 1,422 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 1,422
Total consumer real estate |  | 4,337,033 |  |  | 23,668 |  |  | 14,768 |  |  | 4,375,469 |  |  | 64,138 |  |  | 6,180 |  |  | 11,024 |  |  | 81,342 |  |  | 4,456,811
Permanent mortgage |  | 369,882 |  |  | 4,802 |  |  | 5,718 |  |  | 380,402 |  |  | 14,166 |  |  | 1,006 |  |  | 13,661 |  |  | 28,833 |  |  | 409,235
Credit card & other: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit card |  | 182,129 |  |  | 1,393 |  |  | 1,449 |  |  | 184,971 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 184,971
Other |  | 160,929 |  |  | 482 |  |  | 150 |  |  | 161,561 |  |  | - |  |  | - |  |  | 136 |  |  | 136 |  |  | 161,697
Purchased credit-impaired loans |  | 53 |  |  | - |  |  | - |  |  | 53 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 53
Total credit card & other |  | 343,111 |  |  | 1,875 |  |  | 1,599 |  |  | 346,585 |  |  | - |  |  | - |  |  | 136 |  |  | 136 |  |  | 346,721
Total loans, net of unearned income | $ | 18,873,176 |  | $ | 51,095 |  | $ | 22,411 |  | $ | 18,946,682 |  | $ | 92,915 |  | $ | 7,299 |  | $ | 43,178 |  | $ | 143,392 |  | $ | 19,090,074
TRUPS is presented net of the valuation allowance of $25.5 million.
The following table reflects accruing and non-accruing loans by class on December 31, 2016:
| Accruing |  | Non-Accruing |  |
|  |  |  | 30-89 |  | 90+ |  |  |  |  |  |  |  | 30-89 |  | 90+ |  | Total |  |  |
|  |  |  | Days |  | Days |  | Total |  |  |  |  | Days |  | Days |  | Non- |  | Total
(Dollars in thousands) | Current | Past Due | Past Due | Accruing | Current | Past Due | Past Due | Accruing | Loans
Commercial (C&I): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
General C&I | $ | 9,720,231 |  | $ | 5,199 |  | $ | 23 |  | $ | 9,725,453 |  | $ | 16,106 |  | $ | 374 |  | $ | 12,988 |  | $ | 29,468 |  | $ | 9,754,921
Loans to mortgage companies |  | 2,041,408 |  |  | 3,722 |  |  | - |  |  | 2,045,130 |  |  | - |  |  | - |  |  | 59 |  |  | 59 |  |  | 2,045,189
TRUPS (a) |  | 304,236 |  |  | - |  |  | - |  |  | 304,236 |  |  | - |  |  | - |  |  | 3,209 |  |  | 3,209 |  |  | 307,445
Purchased credit-impaired loans |  | 40,113 |  |  | 185 |  |  | 234 |  |  | 40,532 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 40,532
Total commercial (C&I) |  | 12,105,988 |  |  | 9,106 |  |  | 257 |  |  | 12,115,351 |  |  | 16,106 |  |  | 374 |  |  | 16,256 |  |  | 32,736 |  |  | 12,148,087
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income CRE |  | 2,085,455 |  |  | 14 |  |  | - |  |  | 2,085,469 |  |  | 232 |  |  | 460 |  |  | 1,289 |  |  | 1,981 |  |  | 2,087,450
Residential CRE |  | 42,182 |  |  | 178 |  |  | - |  |  | 42,360 |  |  | - |  |  | - |  |  | 795 |  |  | 795 |  |  | 43,155
Purchased credit-impaired loans |  | 4,809 |  |  | 109 |  |  | - |  |  | 4,918 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 4,918
Total commercial real estate |  | 2,132,446 |  |  | 301 |  |  | - |  |  | 2,132,747 |  |  | 232 |  |  | 460 |  |  | 2,084 |  |  | 2,776 |  |  | 2,135,523
Consumer real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
HELOC |  | 1,602,640 |  |  | 17,997 |  |  | 10,859 |  |  | 1,631,496 |  |  | 46,964 |  |  | 4,201 |  |  | 8,922 |  |  | 60,087 |  |  | 1,691,583
R/E installment loans |  | 2,794,866 |  |  | 7,844 |  |  | 5,158 |  |  | 2,807,868 |  |  | 17,989 |  |  | 2,383 |  |  | 2,353 |  |  | 22,725 |  |  | 2,830,593
Purchased credit-impaired loans |  | 1,319 |  |  | 164 |  |  | 93 |  |  | 1,576 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 1,576
Total consumer real estate |  | 4,398,825 |  |  | 26,005 |  |  | 16,110 |  |  | 4,440,940 |  |  | 64,953 |  |  | 6,584 |  |  | 11,275 |  |  | 82,812 |  |  | 4,523,752
Permanent mortgage |  | 385,972 |  |  | 4,544 |  |  | 5,428 |  |  | 395,944 |  |  | 11,867 |  |  | 2,194 |  |  | 13,120 |  |  | 27,181 |  |  | 423,125
Credit card & other: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit card |  | 188,573 |  |  | 1,622 |  |  | 1,456 |  |  | 191,651 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 191,651
Other |  | 166,062 |  |  | 992 |  |  | 134 |  |  | 167,188 |  |  | - |  |  | - |  |  | 142 |  |  | 142 |  |  | 167,330
Purchased credit-impaired loans |  | 52 |  |  | - |  |  | - |  |  | 52 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 52
Total credit card & other |  | 354,687 |  |  | 2,614 |  |  | 1,590 |  |  | 358,891 |  |  | - |  |  | - |  |  | 142 |  |  | 142 |  |  | 359,033
Total loans, net of unearned income | $ | 19,377,918 |  | $ | 42,570 |  | $ | 23,385 |  | $ | 19,443,873 |  | $ | 93,158 |  | $ | 9,612 |  | $ | 42,877 |  | $ | 145,647 |  | $ | 19,589,520
TRUPS is presented net of the valuation allowance of $25.5 million. Troubled Debt Restructurings As part of FHN’s ongoing risk management practices, FHN attempts to work with borrowers when necessary to extend or modify loan terms to better align with their current ability to repay. Extensions and modifications to loans are made in accordance with internal policies and guidelines which conform to regulatory guidance. Each occurrence is unique to the borrower and is evaluated separately. A modification is classified as a TDR if the borrower is experiencing financial diffi culty and it is determined that FHN has granted a concession to the borrower. FHN may determine that a borrower is experiencing financial difficulty if the borrower is currently in default on any of its debt, or if it is probable that a borrower may defaul t in the foreseeable future. Many aspects of a borrower’s financial situation are assessed when determining whether they are experiencing financial difficulty. Concessions could include extension of the maturity date, reductions of the interest rate (which may make the rate lower than current market for a new loan with similar risk), reduction or forgiveness of accrued interest, or principal forgiveness. The assessments of whether a borrower is experiencing (or is likely to experience) financial difficulty, and whether a concession has been granted, are subjective in nature and management’s judgment is required when determining whether a modification is classified as a TDR. For all classes within the commercial portfolio segment, TDRs are typically modified through forbearance agreements (generally 6 to 12 months). Forbearance agreements could include reduced interest rates, reduced payments, release of guarantor, or entering into short sale agreements. FHN’s proprietary modification programs for consumer loa ns are generally structured using parameters of U.S. government-sponsored programs such as the former Home Affordable Modification Program (“HAMP”). Within the HELOC and R/E installment loans classes of the consumer portfolio segment, TDRs are typically mo dified by reducing the interest rate (in increments of 25 basis points to a minimum of 1 percent for up to 5 years) and a possible maturity date extension to reach an affordable housing debt-to-income ratio. After 5 years, the interest rate generally returns to the original interest rate prior to modification; for certain modifications, the modified interest rate increase s 2 percent per year until the original interest rate prior to modification is achieved. Permanent mortgage TDRs are typically modified by reducing the interest rate (in increments of 25 basis points to a minimum of 2 percent for up to 5 years) and a possible maturity date extension to reach an affordable housing debt-to-income ratio. After 5 years, the interest rate steps up 1 percent every year until it reach es the Federal Home Loan Mortgage Corporation Weekly Survey Rate cap. Contractual maturities may be extended to 40 years on permanent mortgages and to 30 years for consumer real estate loans. Within the credit card class of the consumer portfolio segment, TDRs are typically modified through either a short-term credit card hardship program or a longer-term credit card workout program. In the credit card hardship program, borrowers may be granted rate and payment reductions for 6 months to 1 year. In the cred it card workout program, customers are granted a rate reduction to 0 percent and term extensions for up to 5 years to pay off the remaining balance. Despite the absence of a loan modification, the discharge of personal liability through bankruptcy proceedi ngs is considered a concession. As a result, FHN classifies all non-reaffirmed residential real estate loans discharged in Chapter 7 bankruptcy as nonaccruing TDRs. On March 31, 2017 and December 31, 2016, FHN had $270.0 million and $285.2 million of portfolio loans classified as TDRs, respectively. For TDRs in the loan portfolio, FHN had loan loss reserves of $43.4 million, or 16 percent as of March 31, 2017, and $44.9 million, or 16 percent as of December 31, 2016. Additionally, $67.2 million and $69.3 million of loans held-for-sale as of March 31, 2017 and December 31, 2016, respectively, were classified as TDRs.
The following tables reflect portfolio loans that were classified as TDRs during the three months ended March 31, 2017 and 2016:
|  | March 31, 2017 |  | March 31, 2016
|  |  |  | Pre-Modification |  | Post-Modification |  |  |  | Pre-Modification |  | Post-Modification
|  |  |  | Outstanding |  | Outstanding |  |  |  | Outstanding |  | Outstanding
(Dollars in thousands) | Number |  | Recorded Investment |  | Recorded Investment |  | Number |  | Recorded Investment |  | Recorded Investment
Commercial (C&I): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
General C&I | 1 |  | $ | 27 |  | $ | 37 |  | 1 |  | $ | 708 |  | $ | 708
| Total commercial (C&I) | 1 |  |  | 27 |  |  | 37 |  | 1 |  |  | 708 |  |  | 708
Consumer real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
HELOC | 35 |  |  | 2,589 |  |  | 2,473 |  | 99 |  |  | 7,440 |  |  | 7,370
R/E installment loans | 14 |  |  | 957 |  |  | 902 |  | 15 |  |  | 898 |  |  | 895
| Total consumer real estate | 49 |  |  | 3,546 |  |  | 3,375 |  | 114 |  |  | 8,338 |  |  | 8,265
Permanent mortgage | 5 |  |  | 1,310 |  |  | 1,303 |  | - |  |  | - |  |  | -
Credit card & other | 6 |  |  | 21 |  |  | 20 |  | 4 |  |  | 19 |  |  | 18
Total troubled debt restructurings | 61 |  | $ | 4,904 |  | $ | 4,735 |  | 119 |  | $ | 9,065 |  | $ | 8,991
The following tables present TDRs which re-defaulted during the three months ended March 31, 2017 and 2016, and as to which the modification occurred 12 months or less prior to the re-default. For purposes of this disclosure, FHN generally defines payment default as 30 or more days past due.
|  | March 31, 2017 |  | March 31, 2016
|  |  |  | Recorded |  |  |  | Recorded
(Dollars in thousands) | Number |  | Investment |  | Number |  | Investment
Commercial (C&I): |  |  |  |  |  |  |  |  |
General C&I | 1 |  | $ | 5,779 |  | - |  | $ | -
| Total commercial (C&I) | 1 |  |  | 5,779 |  | - |  |  | -
Consumer real estate: |  |  |  |  |  |  |  |  |
HELOC | 4 |  |  | 685 |  | 1 |  |  | 36
| Total consumer real estate | 4 |  |  | 685 |  | 1 |  |  | 36
Credit card & other | 2 |  |  | 7 |  | - |  |  | -
Total troubled debt restructurings | 7 |  | $ | 6,471 |  | 1 |  | $ | 36

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