Loans and Allowance for Credit Losses

Loans, Net of Unearned Income

Loans, net of unearned income are summarized as follows:



	September 30, 2016			December 31, 2015
	(in thousands)
Real-estate - commercial mortgage	$	5,818,915		$	5,462,330
Commercial - industrial, financial and agricultural	4,024,119			4,088,962
Real-estate - home equity	1,640,421			1,684,439
Real-estate - residential mortgage	1,542,696			1,376,160
Real-estate - construction	861,634			799,988
Consumer	283,673			268,588
Leasing and other	235,793			170,914
Overdrafts	2,320			2,737
Loans, gross of unearned income	14,409,571			13,854,118
Unearned income	(18,333		)	(15,516		)
Loans, net of unearned income	$	14,391,238		$	13,838,602

Allowance for Credit Losses

The allowance for credit losses consists of the allowance for loan losses and the reserve for unfunded lending commitments. The allowance for loan losses represents management’s estimate of incurred losses in the loan portfolio as of the balance sheet date and is recorded as a reduction to loans. The reserve for unfunded lending commitments represents management’s estimate of incurred losses in its unfunded loan commitments and is recorded in other liabilities on the consolidated balance sheets. The allowance for credit losses is increased by charges to expense, through the provision for credit losses, and decreased by charge-offs, net of recoveries.

The Corporation’s allowance for credit losses includes: (1) specific allowances allocated to loans evaluated for impairment under the FASB's ASC Section 310-10-35; and (2) allowances calculated for pools of loans measured for impairment under FASB ASC Subtopic 450-20.

The Corporation segments its loan portfolio by general loan type, or "portfolio segments," as presented in the table under the heading, "Loans, Net of Unearned Income," above. Certain portfolio segments are further disaggregated and evaluated collectively for impairment based on "class segments," which are largely based on the type of collateral underlying each loan. Commercial loans include both secured and unsecured loans. Construction loan class segments include loans secured by commercial real estate, loans to commercial borrowers secured by residential real estate and loans to individuals secured by residential real estate. Consumer loan class segments include direct consumer installment loans and indirect vehicle loans.

The following table presents the components of the allowance for credit losses:



	September 30, 2016		December 31, 2015
	(in thousands)
Allowance for loan losses	$	162,526	$	169,054
Reserve for unfunded lending commitments	2,643		2,358
Allowance for credit losses	$	165,169	$	171,412

The following table presents the activity in the allowance for credit losses:



	Three months ended September 30						Nine months ended September 30
	2016			2015			2016			2015
	(in thousands)
Balance at beginning of period	$	165,108		$	169,453		$	171,412		$	185,931
Loans charged off	(7,672		)	(5,561		)	(29,573		)	(26,697		)
Recoveries of loans previously charged off	3,592			4,503			15,148			10,661
Net loans charged off	(4,080		)	(1,058		)	(14,425		)	(16,036		)
Provision for credit losses	4,141			1,000			8,182			(500		)
Balance at end of period	$	165,169		$	169,395		$	165,169		$	169,395

The following table presents the activity in the allowance for loan losses by portfolio segment:



	Real Estate - Commercial Mortgage			Commercial - Industrial, Financial and Agricultural			Real Estate - Home Equity			Real Estate - Residential Mortgage			Real Estate - Construction			Consumer			Leasing, other and overdrafts			Unallocated			Total
	(in thousands)
Three months ended September 30, 2016
Balance at June 30, 2016	$	43,740		$	51,755		$	26,170		$	21,226		$	5,772		$	2,984		$	2,518		$	8,381		$	162,546
Loans charged off	(1,350		)	(3,144		)	(709		)	(802		)	(150		)	(685		)	(832		)	—			(7,672		)
Recoveries of loans previously charged off	296			1,539			241			228			898			222			168			—			3,592
Net loans charged off	(1,054		)	(1,605		)	(468		)	(574		)	748			(463		)	(664		)	—			(4,080		)
Provision for loan losses (1)	3,171			(1,871		)	1,419			1,452			23			852			1,075			(2,061		)	4,060
Balance at September 30, 2016	$	45,857		$	48,279		$	27,121		$	22,104		$	6,543		$	3,373		$	2,929		$	6,320		$	162,526
Three months ended September 30, 2015
Balance at June 30, 2015	$	50,680		$	49,170		$	22,506		$	22,787		$	7,749		$	2,608		$	1,615		$	10,370		$	167,485
Loans charged off	(660		)	(1,640		)	(940		)	(1,035		)	(114		)	(650		)	(522		)	—			(5,561		)
Recoveries of loans previously charged off	842			1,598			304			201			898			314			346			—			4,503
Net loans charged off	182			(42		)	(636		)	(834		)	784			(336		)	(176		)	—			(1,058		)
Provision for loan losses (1)	825			(405		)	180			(609		)	(964		)	282			223			1,177			709
Balance at September 30, 2015	$	51,687		$	48,723		$	22,050		$	21,344		$	7,569		$	2,554		$	1,662		$	11,547		$	167,136
Nine months ended September 30, 2016
Balance at December 31, 2015	$	47,866		$	57,098		$	22,405		$	21,375		$	6,529		$	2,585		$	2,468		$	8,728		$	169,054
Loans charged off	(3,406		)	(13,957		)	(3,295		)	(2,210		)	(1,218		)	(2,261		)	(3,226		)	—			(29,573		)
Recoveries of loans previously charged off	2,488			6,789			929			784			2,844			957			357			—			15,148
Net loans charged off	(918		)	(7,168		)	(2,366		)	(1,426		)	1,626			(1,304		)	(2,869		)	—			(14,425		)
Provision for loan losses (1)	(1,091		)	(1,651		)	7,082			2,155			(1,612		)	2,092			3,330			(2,408		)	7,897
Balance at September 30, 2016	$	45,857		$	48,279		$	27,121		$	22,104		$	6,543		$	3,373		$	2,929		$	6,320		$	162,526
Nine months ended September 30, 2015
Balance at December 31, 2014	$	53,493		$	51,378		$	28,271		$	29,072		$	9,756		$	3,015		$	1,799		$	7,360		$	184,144
Loans charged off	(3,011		)	(14,669		)	(2,578		)	(3,099		)	(201		)	(1,787		)	(1,352		)	—			(26,697		)
Recoveries of loans previously charged off	1,729			3,855			744			547			2,276			923			587			—			10,661
Net loans charged off	(1,282		)	(10,814		)	(1,834		)	(2,552		)	2,075			(864		)	(765		)	—			(16,036		)
Provision for loan losses (1)	(524		)	8,159			(4,387		)	(5,176		)	(4,262		)	403			628			4,187			(972		)
Balance at September 30, 2015	$	51,687		$	48,723		$	22,050		$	21,344		$	7,569		$	2,554		$	1,662		$	11,547		$	167,136

(1)

The provision for loan losses excluded an $81,000 and $285,000 increase, respectively, in the reserve for unfunded lending commitments for the three and nine months ended September 30, 2016 and a $291,000 and $472,000 increase, respectively, in the reserve for unfunded lending commitments for the three and nine months ended September 30, 2015. The total provision for credit losses, comprised of allocations for both funded and unfunded loans, was $4.1 million and $8.2 million for the three and nine months ended September 30, 2016, respectively, and $1.0 million and a negative $500,000 for the three and nine months ended September 30, 2015.

The following table presents loans, net of unearned income and their related allowance for loan losses, by portfolio segment:



	Real Estate - Commercial Mortgage		Commercial - Industrial, Financial and Agricultural		Real Estate - Home Equity		Real Estate - Residential Mortgage		Real Estate - Construction		Consumer		Leasing, other and overdrafts		Unallocated		Total
	(in thousands)
Allowance for loan losses at September 30, 2016:
Measured for impairment under FASB ASC Subtopic 450-20	$	36,151	$	38,858	$	17,828	$	10,410	$	4,422	$	3,346	$	2,929	$	6,320	$	120,264
Evaluated for impairment under FASB ASC Section 310-10-35	9,706		9,421		9,293		11,694		2,121		27		—		N/A		42,262
	$	45,857	$	48,279	$	27,121	$	22,104	$	6,543	$	3,373	$	2,929	$	6,320	$	162,526

Loans, net of unearned income at September 30, 2016:
Measured for impairment under FASB ASC Subtopic 450-20	$	5,763,863	$	3,972,461	$	1,621,731	$	1,496,461	$	850,315	$	283,633	$	219,780	N/A		$	14,208,244
Evaluated for impairment under FASB ASC Section 310-10-35	55,052		51,658		18,690		46,235		11,319		40		—		N/A		182,994
	$	5,818,915	$	4,024,119	$	1,640,421	$	1,542,696	$	861,634	$	283,673	$	219,780	N/A		$	14,391,238

Allowance for loan losses at September 30, 2015:
Measured for impairment under FASB ASC Subtopic 450-20	$	38,490	$	36,002	$	14,867	$	7,921	$	5,119	$	2,535	$	1,662	$	11,547	$	118,143
Evaluated for impairment under FASB ASC Section 310-10-35	13,197		12,721		7,183		13,423		2,450		19		—		N/A		48,993
	$	51,687	$	48,723	$	22,050	$	21,344	$	7,569	$	2,554	$	1,662	$	11,547	$	167,136

Loans, net of unearned income at September 30, 2015:
Measured for impairment under FASB ASC Subtopic 450-20	$	5,273,819	$	3,885,956	$	1,679,471	$	1,330,778	$	750,629	$	271,667	$	149,530	N/A		$	13,341,850
Evaluated for impairment under FASB ASC Section 310-10-35	66,109		43,952		14,178		51,307		18,936		29		—		N/A		194,511
	$	5,339,928	$	3,929,908	$	1,693,649	$	1,382,085	$	769,565	$	271,696	$	149,530	N/A		$	13,536,361

N/A - Not applicable.

Impaired Loans

A loan is considered to be impaired if it is probable that all amounts will not be collected according to the contractual terms of the loan agreement. Impaired loans consist of all loans on non-accrual status and accruing troubled debt restructurings ("TDRs"). An allowance for loan losses is established for an impaired loan if its carrying value exceeds its estimated fair value. Impaired loans to borrowers with total outstanding commitments greater than or equal to $1.0 million are evaluated individually for impairment. Impaired loans to borrowers with total outstanding commitments less than $1.0 million are pooled and measured for impairment collectively.

Based on an evaluation of all relevant credit quality factors, the Corporation recorded a $4.1 million provision for credit losses during the three months ended September 30, 2016, compared to a $1.0 million provision for credit losses for the same period in 2015.

All loans individually evaluated for impairment under FASB ASC Section 310-10-35 are measured for losses on a quarterly basis. As of September 30, 2016 and December 31, 2015, substantially all of the Corporation’s individually evaluated impaired loans with total outstanding balances greater than or equal to $1.0 million were measured based on the estimated fair value of each loan’s collateral. Collateral could be in the form of real estate, in the case of impaired commercial mortgages and construction loans, or business assets, such as accounts receivable or inventory, in the case of commercial and industrial loans. Commercial and industrial loans may also be secured by real property.

As of September 30, 2016 and 2015, approximately 73% and 77%, respectively, of impaired loans with principal balances greater than or equal to $1.0 million, whose primary collateral is real estate, were measured at estimated fair value using state certified third-party appraisals that had been updated in the preceding 12 months.

When updated appraisals are not obtained for loans evaluated for impairment under FASB ASC Section 310-10-35 that are secured by real estate, fair values are estimated based on the original appraisal values, as long as the original appraisal indicated an acceptable loan-to-value position and, in the opinion of the Corporation's internal credit administration staff, there has not been a significant deterioration in the collateral value since the original appraisal was performed. Original appraisals are typically used only when the estimated collateral value, as adjusted for the age of the appraisal, results in a current loan-to-value ratio that is lower than the Corporation's loan-to-value requirements for new loans, generally less than 70%.

The following table presents total impaired loans by class segment:



	September 30, 2016						December 31, 2015
	Unpaid Principal Balance		Recorded Investment		Related Allowance		Unpaid Principal Balance		Recorded Investment		Related Allowance
	(in thousands)
With no related allowance recorded:
Real estate - commercial mortgage	$	30,913	$	27,594	$	—	$	27,872	$	22,596	$	—
Commercial - secured	33,225		29,535		—		18,012		13,702		—
Real estate - residential mortgage	6,312		6,131		—		4,790		4,790		—
Construction - commercial residential	6,393		4,923		—		9,916		8,865		—
	76,843		68,183				60,590		49,953
With a related allowance recorded:
Real estate - commercial mortgage	37,212		27,458		9,706		45,189		35,698		12,471
Commercial - secured	26,900		21,192		8,906		39,659		33,629		14,085
Commercial - unsecured	1,228		931		515		971		821		498
Real estate - home equity	23,580		18,690		9,293		20,347		15,766		7,993
Real estate - residential mortgage	47,746		40,104		11,694		55,242		45,635		13,422
Construction - commercial residential	8,053		4,850		1,560		9,949		6,290		2,110
Construction - commercial	687		450		145		820		638		217
Construction - other	1,096		1,096		416		331		193		68
Consumer - direct	21		21		15		19		19		14
Consumer - indirect	19		19		12		14		14		8
Leasing, other and overdrafts	—		—		—		1,658		1,425		704
	146,542		114,811		42,262		174,199		140,128		51,590
Total	$	223,385	$	182,994	$	42,262	$	234,789	$	190,081	$	51,590

As of September 30, 2016 and December 31, 2015, there were $68.2 million and $50.0 million, respectively, of impaired loans that did not have a related allowance for loan loss. The estimated fair values of the collateral securing these loans exceeded their carrying amount, or they were previously charged down to realizable collateral values. Accordingly, no specific valuation allowance was considered to be necessary.

The following table presents average impaired loans by class segment:



	Three months ended September 30								Nine months ended September 30
	2016				2015				2016				2015
	Average Recorded Investment		Interest Income (1)		Average Recorded Investment		Interest Income (1)		Average Recorded Investment		Interest Income (1)		Average Recorded Investment		Interest Income (1)
	(in thousands)
With no related allowance recorded:
Real estate - commercial mortgage	$	25,048	$	78	$	25,216	$	68	$	23,929	$	219	$	26,033	246
Commercial - secured	23,836		32		17,609		28		18,400		68		16,142		74
Commercial - unsecured	—		—		43		—		—		—		22		—
Real estate - residential mortgage	6,151		33		6,212		34		5,826		96		5,539		94
Construction - commercial residential	5,734		10		10,558		28		6,658		45		12,390		124
Construction - commercial	—		—		1,150		—		—		—		1,144		—
	60,769		153		60,788		158		54,813		428		61,270		538
With a related allowance recorded:
Real estate - commercial mortgage	29,139		91		40,572		110		32,310		303		40,116		368
Commercial - secured	21,688		29		22,386		36		26,665		100		23,668		111
Commercial - unsecured	953		1		2,788		1		903		3		1,981		4
Real estate - home equity	18,283		76		13,728		37		17,589		203		13,417		101
Real estate - residential mortgage	40,913		221		46,039		254		42,399		683		46,406		797
Construction - commercial residential	4,947		8		5,746		15		5,568		37		6,496		64
Construction - commercial	476		—		1,210		—		546		—		1,005		—
Construction - other	756		—		281		—		579		—		281		—
Consumer - direct	19		—		15		—		17		1		18		—
Consumer - indirect	11		—		15		—		14		—		17		—
Leasing, other and overdrafts	—		—		—		—		712		—		—		—
	117,185		426		132,780		453		127,302		1,330		133,405		1,445
Total	$	177,954	$	579	$	193,568	$	611	$	182,115	$	1,758	$	194,675	1,983


(1)	All impaired loans, excluding accruing TDRs, were non-accrual loans. Interest income recognized for the three and nine months ended September 30, 2016 and 2015 represents amounts earned on accruing TDRs.

Credit Quality Indicators and Non-performing Assets

The following table presents internal credit risk ratings for real estate - commercial mortgages, commercial - secured loans, commercial - unsecured loans, construction - commercial residential loans and construction - commercial loans:



	Pass						Special Mention						Substandard or Lower						Total
	September 30, 2016			December 31, 2015			September 30, 2016			December 31, 2015			September 30, 2016			December 31, 2015			September 30, 2016			December 31, 2015
	(dollars in thousands)
Real estate - commercial mortgage	$	5,555,760		$	5,204,263		$	131,941		$	102,625		$	131,214		$	155,442		$	5,818,915		$	5,462,330
Commercial - secured	3,648,221			3,696,692			106,701			92,711			121,611			136,710			3,876,533			3,926,113
Commercial - unsecured	139,673			156,742			5,009			2,761			2,904			3,346			147,586			162,849
Total commercial - industrial, financial and agricultural	3,787,894			3,853,434			111,710			95,472			124,515			140,056			4,024,119			4,088,962
Construction - commercial residential	131,875			140,337			15,853			17,154			14,180			21,812			161,908			179,303
Construction - commercial	629,314			552,710			2,530			3,684			5,048			3,597			636,892			559,991
Total construction (excluding Construction - other)	761,189			693,047			18,383			20,838			19,228			25,409			798,800			739,294
	$	10,104,843		$	9,750,744		$	262,034		$	218,935		$	274,957		$	320,907		$	10,641,834		$	10,290,586
% of Total	95.0		%	94.8		%	2.4		%	2.1		%	2.6		%	3.1		%	100.0		%	100.0		%

The following is a summary of the Corporation's internal risk rating categories:


•	Pass: These loans do not currently pose undue credit risk and can range from the highest to average quality, depending on the degree of potential risk.


•	Special Mention: These loans constitute an undue and unwarranted credit risk, but not to a point of justifying a classification of substandard. Loans in this category are currently acceptable, but are nevertheless potentially weak.


•	Substandard or Lower: These loans are inadequately protected by current sound worth and paying capacity of the borrower. There exists a well-defined weakness or weaknesses that jeopardize the normal repayment of the debt.

The risk rating process allows management to identify credits that potentially carry more risk in a timely manner and to allocate resources to managing troubled accounts. The Corporation believes that internal risk ratings are the most relevant credit quality indicator for the class segments presented above. The migration of loans through the various internal risk rating categories is a significant component of the allowance for credit loss methodology, which bases the probability of default on this migration. Assigning risk ratings involves judgment. The Corporation's loan review officers provide an independent assessment of risk rating accuracy. Ratings may be changed based on the ongoing monitoring procedures performed by loan officers or credit administration staff, or if specific loan review activities identify a deterioration or an improvement in the loan.

The Corporation does not assign internal risk ratings to smaller balance, homogeneous loans, such as home equity, residential mortgage, construction loans to individuals secured by residential real estate, consumer and lease receivables. For these loans, the most relevant credit quality indicator is delinquency status. The migration of loans through the various delinquency status categories is a significant component of the allowance for credit losses methodology for those loans, which bases the probability of default on this migration.

The following table presents a summary of performing, delinquency and non-performing status for home equity, real estate - residential mortgages, construction loans to individuals and consumer, leasing and other loans by class segment:



	Performing						Delinquent (1)						Non-performing (2)						Total
	September 30, 2016			December 31, 2015			September 30, 2016			December 31, 2015			September 30, 2016			December 31, 2015			September 30, 2016			December 31, 2015
	(dollars in thousands)
Real estate - home equity	$	1,615,657		$	1,660,773		$	10,504		$	8,983		$	14,260		$	14,683		$	1,640,421		$	1,684,439
Real estate - residential mortgage	1,501,486			1,329,371			17,759			18,305			23,451			28,484			1,542,696			1,376,160
Construction - other	61,738			59,997			—			88			1,096			609			62,834			60,694
Consumer - direct	91,164			94,262			1,675			2,254			1,943			2,203			94,782			98,719
Consumer - indirect	185,873			166,823			2,795			2,809			223			237			188,891			169,869
Total consumer	277,037			261,085			4,470			5,063			2,166			2,440			283,673			268,588
Leasing	218,275			155,870			1,454			759			51			1,506			219,780			158,135
	$	3,674,193		$	3,467,096		$	34,187		$	33,198		$	41,024		$	47,722		$	3,749,404		$	3,548,016
% of Total	98.0		%	97.7		%	0.9		%	1.0		%	1.1		%	1.3		%	100.0		%	100.0		%


(1)	Includes all accruing loans 30 days to 89 days past due.


(2)	Includes all accruing loans 90 days or more past due and all non-accrual loans.

The following table presents non-performing assets:



	September 30, 2016		December 31, 2015
	(in thousands)
Non-accrual loans	$	124,017	$	129,523
Loans 90 days or more past due and still accruing	14,095		15,291
Total non-performing loans	138,112		144,814
Other real estate owned (OREO)	11,981		11,099
Total non-performing assets	$	150,093	$	155,913

The following table presents past due status and non-accrual loans by portfolio segment and class segment:



	September 30, 2016
	30-59 Days Past Due		60-89 Days Past Due		≥ 90 Days Past Due and Accruing		Non- accrual		Total ≥ 90 Days		Total Past Due		Current		Total
	(in thousands)
Real estate - commercial mortgage	$	9,268	$	1,447	$	664	$	38,967	$	39,631	$	50,346	$	5,768,569	$	5,818,915
Commercial - secured	8,369		3,622		3,023		43,304		46,327		58,318		3,818,215		3,876,533
Commercial - unsecured	234		53		137		866		1,003		1,290		146,296		147,586
Total commercial - industrial, financial and agricultural	8,603		3,675		3,160		44,170		47,330		59,608		3,964,511		4,024,119
Real estate - home equity	6,016		4,488		3,237		11,023		14,260		24,764		1,615,657		1,640,421
Real estate - residential mortgage	12,920		4,839		4,070		19,381		23,451		41,210		1,501,486		1,542,696
Construction - commercial residential	2,004		629		72		8,930		9,002		11,635		150,273		161,908
Construction - commercial	—		9		675		450		1,125		1,134		635,758		636,892
Construction - other	—		—		—		1,096		1,096		1,096		61,738		62,834
Total real estate - construction	2,004		638		747		10,476		11,223		13,865		847,769		861,634
Consumer - direct	1,147		528		1,943		—		1,943		3,618		91,164		94,782
Consumer - indirect	2,466		329		223		—		223		3,018		185,873		188,891
Total consumer	3,613		857		2,166		—		2,166		6,636		277,037		283,673
Leasing, other and overdrafts	998		456		51		—		51		1,505		218,275		219,780
Total	$	43,422	$	16,400	$	14,095	$	124,017	$	138,112	$	197,934	$	14,193,304	$	14,391,238



	December 31, 2015
	30-59 Days Past Due		60-89 Days Past Due		≥ 90 Days Past Due and Accruing		Non- accrual		Total ≥ 90 Days		Total Past Due		Current		Total
	(in thousands)
Real estate - commercial mortgage	$	6,469	$	1,312	$	439	$	40,731	$	41,170	$	48,951	$	5,413,379	$	5,462,330
Commercial - secured	5,654		2,615		1,853		41,498		43,351		51,620		3,874,493		3,926,113
Commercial - unsecured	510		83		19		701		720		1,313		161,536		162,849
Total commercial - industrial, financial and agricultural	6,164		2,698		1,872		42,199		44,071		52,933		4,036,029		4,088,962
Real estate - home equity	6,438		2,545		3,473		11,210		14,683		23,666		1,660,773		1,684,439
Real estate - residential mortgage	15,141		3,164		6,570		21,914		28,484		46,789		1,329,371		1,376,160
Construction - commercial residential	1,366		494		—		11,213		11,213		13,073		166,230		179,303
Construction - commercial	50		176		—		638		638		864		559,127		559,991
Construction - other	88		—		416		193		609		697		59,997		60,694
Total real estate - construction	1,504		670		416		12,044		12,460		14,634		785,354		799,988
Consumer - direct	1,687		567		2,203		—		2,203		4,457		94,262		98,719
Consumer - indirect	2,308		501		237		—		237		3,046		166,823		169,869
Total consumer	3,995		1,068		2,440		—		2,440		7,503		261,085		268,588
Leasing, other and overdrafts	483		276		81		1,425		1,506		2,265		155,870		158,135
Total	$	40,194	$	11,733	$	15,291	$	129,523	$	144,814	$	196,741	$	13,641,861	$	13,838,602

The following table presents TDRs, by class segment:



	September 30, 2016		December 31, 2015
	(in thousands)
Real-estate - residential mortgage	$	26,854	$	28,511
Real-estate - commercial mortgage	16,085		17,563
Real estate - home equity	7,668		4,556
Commercial - secured	7,422		5,833
Construction - commercial residential	843		3,942
Commercial - unsecured	66		120
Consumer - indirect	20		14
Consumer - direct	19		19
Total accruing TDRs	58,977		60,558
Non-accrual TDRs ⁽¹⁾	27,904		31,035
Total TDRs	$	86,881	$	91,593


(1)	Included in non-accrual loans in the preceding table detailing non-performing assets.

As of September 30, 2016 and December 31, 2015, there were $3.5 million and $5.3 million, respectively, of commitments to lend additional funds to borrowers whose loans were modified under TDRs.

The following table presents TDRs, by class segment as of September 30, 2016 and 2015, that were modified during the three and nine months ended September 30, 2016 and 2015:



		Three months ended September 30						Nine months ended September 30
		2016			2015			2016			2015
		Number of Loans	Post-Modification Recorded Investment		Number of Loans	Post-Modification Recorded Investment		Number of Loans	Post-Modification Recorded Investment		Number of Loans	Post-Modification Recorded Investment
		(dollars in thousands)
Commercial – secured:
	Extend maturity with rate concession	—	$	—	2	$	1,374	—	$	—	2	$	1,374
	Extend maturity without rate concession	4	1,826		1	6		10	3,801		12	7,830
Commercial – unsecured:
	Extend maturity without rate concession	—	—		—	—		2	103		1	42
Real estate - commercial mortgage:
	Extend maturity with rate concession	—	—		2	188		—	—		2	188
	Extend maturity without rate concession	—	—		—	—		—	—		4	2,626
Real estate - home equity:
	Extend maturity without rate concession	24	1,063		5	341		63	3,058		5	341
	Bankruptcy	11	563		9	221		33	2,279		34	1,452
Real estate – residential mortgage:
	Extend maturity with rate concession	—	—		1	171		—	—		2	276
	Extend maturity without rate concession	—	—		—	—		2	315		2	225
	Bankruptcy	2	350		1	58		3	723		6	795
Construction - commercial residential:
	Extend maturity without rate concession	—	—		—	—		—	—		1	889
Consumer - direct:
	Bankruptcy	—	—		—	—		1	2		—	—
Consumer - indirect:
	Bankruptcy	1	21		—	—		1	21		1	13

Total		42	$	3,823	21	$	2,359	115	$	10,302	72	$	16,051

The following table presents TDRs, by class segment, as of September 30, 2016 and 2015, that were modified in the previous 12 months and had a post-modification payment default during the nine months ended September 30, 2016 and 2015. The Corporation defines a payment default as a single missed payment.



	2016			2015
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
	(dollars in thousands)
Commercial - secured	6	$	2,593	6	$	3,855
Commercial - unsecured	1	26		—	—
Real estate - commercial mortgage	2	129		2	233
Real estate - home equity	29	1,902		9	459
Real estate - residential mortgage	7	1,395		4	500
Total	45	$	6,045	21	$	5,047