Loans are presented net of unearned income of $5.4 million and $5.2 million at June 30, 2018 and December 31, 2017.

The following table indicates the composition of loans as of the dates presented:



(dollars in thousands)	June 30, 2018		December 31, 2017
Commercial
Commercial real estate	$	2,788,641	$	2,685,994
Commercial and industrial	1,455,578		1,433,266
Commercial construction	299,787		384,334
Total Commercial Loans	4,544,006		4,503,594
Consumer
Residential mortgage	698,440		698,774
Home equity	471,622		487,326
Installment and other consumer	66,638		67,204
Consumer construction	5,412		4,551
Total Consumer Loans	1,242,112		1,257,855
Total Portfolio Loans	5,786,118		5,761,449
Loans held for sale	3,801		4,485
Total Loans	$	5,789,919	$	5,765,934

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. Total commercial loans represented 79 percent of total portfolio loans at June 30, 2018 and 78 percent at December 31, 2017. Within our commercial portfolio, the Commercial Real Estate, or 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 both June 30, 2018 and at December 31, 2017. Further segmentation of the CRE and Commercial Construction portfolios by collateral type reveals no concentration in excess of 13 percent of both total CRE and Commercial Construction loans at June 30, 2018 and 14 percent at December 31, 2017.

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 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 and information supplied by our customers. Our CRE and Commercial Construction portfolios have out-of-market exposure of 5.3 percent of their combined portfolios and 2.8 percent of total portfolio loans at June 30, 2018. This compares to 5.2 percent of their combined portfolios and 2.8 percent of total portfolio loans at December 31, 2017.

We individually evaluate all substandard commercial loans that have experienced a forbearance or change in terms agreement, and 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 restructured loans as of the dates presented:



	June 30, 2018						December 31, 2017
(dollars in thousands)	Performing TDRs		Nonperforming TDRs		Total TDRs		Performing TDRs		Nonperforming TDRs		Total TDRs
Commercial real estate	$	2,136	$	925	$	3,061	$	2,579	$	967	$	3,546
Commercial and industrial	14,149		2,599		16,748		3,946		3,197		7,143
Commercial construction	2,400		410		2,810		2,420		2,413		4,833
Residential mortgage	2,157		1,924		4,081		2,039		3,585		5,624
Home equity	3,569		1,536		5,105		3,885		979		4,864
Installment and other consumer	43		1		44		32		9		41
Total	$	24,454	$	7,395	$	31,849	$	14,901	$	11,150	$	26,051

There were no TDRs that returned to accruing status during the three and six months ended June 30, 2018. There was one TDR that returned to accruing status totaling $2.0 million during the three and six months ended June 30, 2017.

The following tables present the restructured loans by loan segment and by type of concession for the three and six months ended June 30, 2018 and 2017:



	Three Months Ended June 30, 2018								Three Months Ended June 30, 2017
(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
Totals by Loan Segment
Commercial real estate
Principal deferral	—	$	—	$	—	$	—		1	$	100	$	100	$	—
Total Commercial Real Estate	—	—		—		—			1	100		100		—
Commercial and industrial
Maturity date extension and interest rate reduction	—	—		—		—			2	1,800		1,800		—
Principal deferral	3	4,815		5,034		219			1	429		429		—
Total Commercial and Industrial	3	4,815		5,034		219			3	2,229		2,229		—
Commercial Construction		.
Total Commercial Construction	—	—		—		—			—	—		—		—
Residential mortgage
Chapter 7 bankruptcy⁽²⁾	1	41		41		—			1	33		33		—
Total Residential Mortgage	1	41		41		—			1	33		33		—
Home equity
Chapter 7 bankruptcy⁽²⁾	2	26		26		—			3	40		38		(2		)
Maturity date extension	—	—		—		—			1	231		231		—
Maturity date extension and interest rate reduction	2	47		47		—			—	—		—		—
Total Home Equity	4	73		73		—			4	271		269		(2		)
Installment and other consumer
Chapter 7 bankruptcy⁽²⁾	2	8		7		(1		)	2	37		34		(3		)
Total Installment and Other Consumer	2	8		7		(1		)	2	37		34		(3		)
Totals by Concession Type
Chapter 7 bankruptcy⁽²⁾	5	75		74		(1		)	6	110		105		$	(5	)
Maturity date extension and interest rate reduction	2	47		47		—			2	1,800		1,800		—
Maturity date extension	—	—		—		—			1	231		231		—
Principal deferral	3	4,815		5,034		219			2	529		529		—
Total	10	$	4,937	$	5,155	$	218		11	$	2,670	$	2,665	$	(5	)
⁽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, 2018								Six Months Ended June 30, 2017
(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
Totals by Loan Segment
Commercial real estate
Principal deferral	—	$	—	$	—	$	—		1	$	100	$	100	$	—
Total Commercial Real Estate	—	—		—		—			1	100		100		—
Commercial and industrial
Maturity date extension	2	768		582		(186		)	—	—		—		—
Maturity date extension and interest rate reduction	—	—		—		—			2	1,800		1,800		—
Principal deferral	3	4,815		5,034		219			1	429		429		—
Principal deferral and maturity date extension	6	5,355		5,229		(126		)	—	—		—		—
Total Commercial and Industrial	11	10,938		10,845		(93		)	3	2,229		2,229		—
Commercial Construction		.
Total Commercial Construction	—	—		—		—			—	—		—		—
Residential mortgage
Chapter 7 bankruptcy⁽²⁾	3	199		196		(3		)	1	33		33		—
Total Residential Mortgage	3	199		196		(3		)	1	33		33		—
Home equity
Chapter 7 bankruptcy⁽²⁾	11	605		574		(31		)	9	309		304		(5		)
Maturity date extension	—	—		—		—			1	231		231		—
Maturity date extension and interest rate reduction	2	47		47		—			1	173		172		(1		)
Total Home Equity	13	652		621		(31		)	11	713		707		(6		)
Installment and other consumer
Chapter 7 bankruptcy⁽²⁾	4	25		23		(2		)	2	37		34		(3		)
Total Installment and Other Consumer	4	25		23		(2		)	2	37		34		(3		)
Totals by Concession Type
Chapter 7 bankruptcy⁽²⁾	18	829		793		(36		)	12	379		371		(8		)
Maturity date extension	2	768		582		(186		)	1	231		231		—
Maturity date extension and interest rate reduction	2	47		47		—			3	1,973		1,972		(1		)
Principal deferral	3	4,815		5,034		219			2	529		529		—
Principal deferral and maturity date extension	6	5,355		5,229		(126		)	—	—		—		—
Total	31	$	11,814	$	11,685	$	(129	)	18	$	3,112	$	3,103	$	(9	)
⁽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.

As of June 30, 2018, we had seven commitments to lend an additional $5.6 million 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 and six months ended June 30, 2018 and 2017 that were restructured within the last 12 months prior to defaulting.

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



	Nonperforming Assets
(dollars in thousands)	June 30, 2018		December 31, 2017
Nonperforming Assets
Nonaccrual loans	$	13,977	$	12,788
Nonaccrual TDRs	7,395		11,150
Total Nonaccrual Loans	21,372		23,938
OREO	2,999		469
Total Nonperforming Assets	$	24,371	$	24,407

Other real estate owned, or OREO increased $2.5 million since December 31, 2017. This increase is related to two land lots that are no longer intended to be future branch locations. These land lots were reclassified from other assets to OREO during the three months ended March 31, 2018.