| Loans | Loans Loan portfolio segments are defined as the level at which an entity develops and documents a systematic methodology to determine its allowance. The Corporation has two loan portfolio segments (commercial loans and consumer loans) that it uses in determining the allowance. Both quantitative and qualitative factors are used by management at the loan portfolio segment level in determining the adequacy of the allowance for the Corporation. Classes of loans are a disaggregation of an entity’s loan portfolio segments. Classes of loans are defined as a group of loans which share similar initial measurement attributes, risk characteristics, and methods for monitoring and assessing credit risk. The Corporation has seven classes of loans, which are set forth below. Commercial — Loans and lines of credit to varying types of businesses, including municipalities, school districts and nonprofit organizations, for the purpose of supporting working capital, operational needs and term financing of equipment. Repayment of such loans is generally provided through operating cash flows of the business. Commercial loans are predominately secured by equipment, inventory, accounts receivable, personal guarantees of the owner and other sources of repayment, although the Corporation may also secure commercial loans with real estate. Commercial real estate — Loans secured by real estate occupied by the borrower for ongoing operations, non-owner occupied real estate leased to one or more tenants and vacant land that has been acquired for investment or future land development. Real estate construction — Secured loans for the construction of business properties. Real estate construction loans often convert to a commercial real estate loan at the completion of the construction period. Land development — Secured development loans made to borrowers for the purpose of infrastructure improvements to vacant land to create finished marketable residential and commercial lots/land. Most land development loans are originated with the intention that the loans will be paid through the sale of developed lots/land by the developers within twelve months of the completion date. Land development loans at September 30, 2015 , December 31, 2014 and September 30, 2014 were primarily comprised of loans to develop residential properties. Residential mortgage — Loans secured by one - to four -family residential properties, generally with fixed interest rates for periods of fifteen years or less. The loan-to-value ratio at the time of origination is generally 80% or less. Residential mortgage loans with a loan-to-value ratio of more than 80% generally require private mortgage insurance. Consumer installment — Loans to consumers primarily for the purpose of acquiring automobiles, recreational vehicles and personal watercraft and comprised primarily of indirect loans purchased from dealers. These loans consist of relatively small amounts that are spread across many individual borrowers. Home equity — Loans and lines of credit whereby consumers utilize equity in their personal residence, generally through a second mortgage, as collateral to secure the loan. Commercial, commercial real estate, real estate construction and land development loans are referred to as the Corporation’s commercial loan portfolio, while residential mortgage, consumer installment and home equity loans are referred to as the Corporation’s consumer loan portfolio. A summary of loans follows: September 30, December 31, September 30, (In thousands) Commercial loan portfolio: Commercial $ 1,829,870 $ 1,354,881 $ 1,239,946 Commercial real estate 2,227,364 1,557,648 1,322,646 Real estate construction 133,405 152,745 125,782 Land development 12,176 18,750 10,434 Subtotal 4,202,815 3,084,024 2,698,808 Consumer loan portfolio: Residential mortgage 1,394,427 1,110,390 984,049 Consumer installment 899,751 829,570 783,443 Home equity 719,202 664,246 574,620 Subtotal 3,013,380 2,604,206 2,342,112 Total loans $ 7,216,195 $ 5,688,230 $ 5,040,920 Credit Quality Monitoring The Corporation maintains loan policies and credit underwriting standards as part of the process of managing credit risk. These standards include making loans generally only within the Corporation’s market areas. The Corporation’s lending markets generally consist of communities across the lower peninsula of Michigan, except for the southeastern portion of Michigan. The Corporation has no foreign loans. The Corporation, through its subsidiary banks, has a commercial loan portfolio approval process involving underwriting and individual and group loan approval authorities to consider credit quality and loss exposure at loan origination. The loans in the Corporation’s commercial loan portfolio are risk rated at origination based on the grading system set forth below. The approval authority of relationship managers is established based on experience levels, with credit decisions greater than $1.0 million requiring group loan authority approval, except for six executive and senior officers who have varying limits exceeding $1.5 million and up to $3.5 million . During the first quarter of 2015, the Corporation increased the upper range for each level of group loan authority by $5.0 million , resulting in group loan authorities as follows. Chemical Bank has a loan committee, consisting of certain executive and senior officers, that meets weekly to consider loans ranging in amounts from $1.0 million to $10.0 million , depending on risk rating and credit action required. A directors’ loan committee of Chemical Bank, consisting of eight independent members of the board of directors of Chemical Bank, the chief executive officer of Chemical Bank and senior credit officer of Chemical Bank, meets bi-weekly to consider loans in amounts over $10.0 million , and certain loans under $10.0 million depending on a loan’s risk rating and credit action required. Loans over $15.0 million require majority approval of the board of directors of Chemical Bank. The approval authorities of relationship managers at The Bank of Holland and The Bank of Northern Michigan are similar to those at Chemical Bank, while approval authority for the loan committees at The Bank of Holland and The Bank of Northern Michigan are lower than those at Chemical Bank. Further, certain loan relationships of The Bank of Holland and The Bank of Northern Michigan, depending on a loan’s risk rating and credit action needed, require approval by the directors' loan committee of Chemical Bank, in addition to approval by the respective board of directors of The Bank of Holland or The Bank of Northern Michigan. The majority of the Corporation’s consumer loan portfolio is comprised of secured loans that are relatively small. The Corporation’s consumer loan portfolio has a centralized approval process which utilizes standardized underwriting criteria. The ongoing measurement of credit quality of the consumer loan portfolio is largely done on an exception basis. If payments are made on schedule, as agreed, then no further monitoring is performed. However, if delinquency occurs, the delinquent loans are turned over to the Corporation’s collection department for resolution, resulting in repossession or foreclosure if payments are not brought current. Credit quality for the entire consumer loan portfolio is measured by the periodic delinquency rate, nonaccrual amounts and actual losses incurred. Loans in the commercial loan portfolio tend to be larger and more complex than those in the consumer loan portfolio, and therefore, are subject to more intensive monitoring. All loans in the commercial loan portfolio have an assigned relationship manager, and most borrowers provide periodic financial and operating information that allows the relationship managers to stay abreast of credit quality during the life of the loans. The risk ratings of loans in the commercial loan portfolio are reassessed at least annually, with loans below an acceptable risk rating reassessed more frequently and reviewed by various loan committees within the Corporation at least quarterly. The Corporation maintains a centralized independent loan review function that monitors the approval process and ongoing asset quality of the loan portfolio, including the accuracy of loan grades. The Corporation also maintains an independent appraisal review function that participates in the review of all appraisals obtained by the Corporation for loans in the commercial loan portfolio. Credit Quality Indicators Commercial Loan Portfolio The Corporation uses a nine grade risk rating system to monitor the ongoing credit quality of its commercial loan portfolio. These loan grades rank the credit quality of a borrower by measuring liquidity, debt capacity, coverage and payment behavior as shown in the borrower’s financial statements. The loan grades also measure the quality of the borrower’s management and the repayment support offered by any guarantors. A summary of the Corporation’s loan grades (or characteristics of the loans within each grade) follows: Risk Grades 1-5 (Acceptable Credit Quality) — All loans in risk grades 1 through 5 are considered to be acceptable credit risks by the Corporation and are grouped for purposes of allowance for loan loss considerations and financial reporting. The five grades essentially represent a ranking of loans that are all viewed to be of acceptable credit quality, taking into consideration the various factors mentioned above, but with varying degrees of financial strength, debt coverage, management and factors that could impact credit quality. Business credits within risk grades 1 through 5 range from Risk Grade 1: Prime Quality (factors include: excellent business credit; excellent debt capacity and coverage; outstanding management; strong guarantors; superior liquidity and net worth; favorable loan-to-value ratios; debt secured by cash or equivalents, or backed by the full faith and credit of the U.S. Government) to Risk Grade 5: Acceptable Quality With Care (factors include: acceptable business credit, but with added risk due to specific industry or internal situations). Risk Grade 6 (Watch) — A business credit that is not acceptable within the Corporation’s loan origination criteria; cash flow may not be adequate or is continually inconsistent to service current debt; financial condition has deteriorated as company trends/management have become inconsistent; the company is slow in furnishing quality financial information; working capital needs of the company are reliant on short-term borrowings; personal guarantees are weak and/or with little or no liquidity; the net worth of the company has deteriorated after recent or continued losses; the loan requires constant monitoring and attention from the Corporation; payment delinquencies becoming more serious; if left uncorrected, these potential weaknesses may, at some future date, result in deterioration of repayment prospects. Risk Grade 7 (Substandard — Accrual) — A business credit that is inadequately protected by the current financial net worth and paying capacity of the obligor or of the collateral pledged, if any; management has deteriorated or has become non-existent; quality financial information is not available; a high level of maintenance is required by the Corporation; cash flow can no longer support debt requirements; loan payments are continually and/or severely delinquent; negative net worth; personal guaranty has become insignificant; a credit that has a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. The Corporation still expects a full recovery of all contractual principal and interest payments; however, a possibility exists that the Corporation will sustain some loss if deficiencies are not corrected. Risk Grade 8 (Substandard — Nonaccrual ) — A business credit accounted for on a nonaccrual basis that has all the weaknesses inherent in a loan classified as risk grade 7 with the added characteristic that the weaknesses are so pronounced that, on the basis of current financial information, conditions, and values, collection in full is highly questionable; a partial loss is possible and interest is no longer being accrued. This loan meets the definition of an impaired loan. The risk of loss requires analysis to determine whether a valuation allowance needs to be established. Risk Grade 9 (Substandard — Doubtful) — A business credit that has all the weaknesses inherent in a loan classified as risk grade 8 and interest is no longer being accrued, but additional deficiencies make it highly probable that liquidation will not satisfy the majority of the obligation; the primary source of repayment is nonexistent and there is doubt as to the value of the secondary source of repayment; the possibility of loss is likely, but current pending factors could strengthen the credit. This loan meets the definition of an impaired loan. A loan charge-off is recorded when management deems an amount uncollectible; however, the Corporation will establish a valuation allowance for probable losses, if required. The Corporation considers all loans graded 1 through 5 as acceptable credit risks and structures and manages such relationships accordingly. Periodic financial and operating data combined with regular loan officer interactions are deemed adequate to monitor borrower performance. Loans graded 6 and 7 are considered higher-risk credits than loans graded 1 through 5 and the frequency of loan officer contact and receipt of financial data is increased to stay abreast of borrower performance. Loans graded 8 and 9 are considered problematic and require special care. Further, loans graded 6 through 9 are managed and monitored regularly through a number of processes, procedures and committees, including oversight by a loan administration committee comprised of executive and senior management of the Corporation, which include highly structured reporting of financial and operating data, intensive loan officer intervention and strategies to exit, as well as potential management by the Corporation’s special assets group. The following schedule presents the recorded investment of loans in the commercial loan portfolio by risk rating categories at September 30, 2015 , December 31, 2014 and September 30, 2014 : Commercial Commercial Real Estate Real Estate Construction Land Development Total (In thousands) September 30, 2015 Originated Portfolio: Risk Grades 1-5 $ 1,356,073 $ 1,345,565 $ 126,836 $ 6,233 $ 2,834,707 Risk Grade 6 39,781 31,303 — 433 71,517 Risk Grade 7 42,923 26,951 737 868 71,479 Risk Grade 8 24,341 24,966 247 297 49,851 Risk Grade 9 2,122 3 — — 2,125 Subtotal 1,465,240 1,428,788 127,820 7,831 3,029,679 Acquired Portfolio: Risk Grades 1-5 327,862 736,248 5,432 1,416 1,070,958 Risk Grade 6 18,970 28,901 — 106 47,977 Risk Grade 7 11,554 28,168 — 2,099 41,821 Risk Grade 8 6,244 5,259 153 724 12,380 Risk Grade 9 — — — — — Subtotal 364,630 798,576 5,585 4,345 1,173,136 Total $ 1,829,870 $ 2,227,364 $ 133,405 $ 12,176 $ 4,202,815 December 31, 2014 Originated Portfolio: Risk Grades 1-5 $ 1,171,817 $ 1,114,529 $ 134,668 $ 2,952 $ 2,423,966 Risk Grade 6 37,800 34,996 1,408 738 74,942 Risk Grade 7 29,863 29,935 2,502 613 62,913 Risk Grade 8 16,417 24,958 162 225 41,762 Risk Grade 9 1 8 — — 9 Subtotal 1,255,898 1,204,426 138,740 4,528 2,603,592 Acquired Portfolio: Risk Grades 1-5 76,780 321,018 14,005 11,789 423,592 Risk Grade 6 12,687 8,698 — 583 21,968 Risk Grade 7 4,089 12,478 — 197 16,764 Risk Grade 8 5,427 11,028 — 1,653 18,108 Risk Grade 9 — — — — — Subtotal 98,983 353,222 14,005 14,222 480,432 Total $ 1,354,881 $ 1,557,648 $ 152,745 $ 18,750 $ 3,084,024 September 30, 2014 Originated Portfolio: Risk Grades 1-5 $ 1,098,885 $ 1,090,397 $ 110,402 $ 3,228 $ 2,302,912 Risk Grade 6 16,469 27,087 666 943 45,165 Risk Grade 7 34,409 42,134 3,751 618 80,912 Risk Grade 8 18,006 23,847 162 1,467 43,482 Risk Grade 9 207 11 — — 218 Subtotal 1,167,976 1,183,476 114,981 6,256 2,472,689 Acquired Portfolio: Risk Grades 1-5 58,342 130,887 10,801 2,303 202,333 Risk Grade 6 3,909 2,086 — — 5,995 Risk Grade 7 5,885 6,197 — 148 12,230 Risk Grade 8 3,834 — — 1,727 5,561 Risk Grade 9 — — — — — Subtotal 71,970 139,170 10,801 4,178 226,119 Total $ 1,239,946 $ 1,322,646 $ 125,782 $ 10,434 $ 2,698,808 Consumer Loan Portfolio The Corporation evaluates the credit quality of loans in the consumer loan portfolio based on the performing or nonperforming status of the loan. Loans in the consumer loan portfolio that are performing in accordance with original contractual terms and are less than 90 days past due and accruing interest are considered to be in a performing status, while those that are in nonaccrual status, contractually past due 90 days or more as to interest or principal payments or classified as a nonperforming TDR are considered to be in a nonperforming status. Nonaccrual TDRs in the consumer loan portfolio are included with nonaccrual loans, while other TDRs in the consumer loan portfolio are considered in a nonperforming status until they meet the Corporation’s definition of a performing TDR, at which time they are considered in a performing status. The following schedule presents the recorded investment of loans in the consumer loan portfolio based on loans in a performing status and loans in a nonperforming status at September 30, 2015 , December 31, 2014 and September 30, 2014 : Residential Mortgage Consumer Installment Home Equity Total Consumer (In thousands) September 30, 2015 Originated Loans: Performing $ 1,150,736 $ 886,921 $ 586,479 $ 2,624,136 Nonperforming 10,374 536 2,434 13,344 Subtotal 1,161,110 887,457 588,913 2,637,480 Acquired Loans: Performing 229,930 12,227 129,033 371,190 Nonperforming 3,387 67 1,256 4,710 Subtotal 233,317 12,294 130,289 375,900 Total $ 1,394,427 $ 899,751 $ 719,202 $ 3,013,380 December 31, 2014 Originated Loans: Performing $ 987,542 $ 818,878 $ 566,083 $ 2,372,503 Nonperforming 10,459 500 3,013 13,972 Subtotal 998,001 819,378 569,096 2,386,475 Acquired Loans: Performing 111,101 10,174 94,696 215,971 Nonperforming 1,288 18 454 1,760 Subtotal 112,389 10,192 95,150 217,731 Total $ 1,110,390 $ 829,570 $ 664,246 $ 2,604,206 September 30, 2014 Originated Loans: Performing $ 963,469 $ 782,087 $ 544,227 $ 2,289,783 Nonperforming 10,720 527 3,895 15,142 Subtotal 974,189 782,614 548,122 2,304,925 Acquired Loans: Performing 9,658 728 26,327 36,713 Nonperforming 202 101 171 474 Subtotal 9,860 829 26,498 37,187 Total $ 984,049 $ 783,443 $ 574,620 $ 2,342,112 Nonperforming Loans A summary of nonperforming loans follows: September 30, December 31, September 30, (In thousands) Nonaccrual loans: Commercial $ 26,463 $ 16,418 $ 18,213 Commercial real estate 24,969 24,966 23,858 Real estate construction 247 162 162 Land development 297 225 1,467 Residential mortgage 6,248 6,706 6,693 Consumer installment 536 500 527 Home equity 1,876 1,667 2,116 Total nonaccrual loans 60,636 50,644 53,036 Accruing loans contractually past due 90 days or more as to interest or principal payments: Commercial 122 170 16 Commercial real estate 216 — 87 Real estate construction — — — Land development — — — Residential mortgage 572 557 380 Consumer installment — — — Home equity 558 1,346 1,779 Total accruing loans contractually past due 90 days or more as to interest or principal payments 1,468 2,073 2,262 Nonperforming TDRs: Commercial loan portfolio 15,559 15,271 11,797 Consumer loan portfolio 3,554 3,196 3,647 Total nonperforming TDRs 19,113 18,467 15,444 Total nonperforming loans $ 81,217 $ 71,184 $ 70,742 The Corporation’s nonaccrual loans at September 30, 2015 , December 31, 2014 and September 30, 2014 included $35.1 million , $37.2 million and $40.5 million , respectively, of nonaccrual TDRs. The Corporation had $3.4 million of residential mortgage loans that were in the process of foreclosure at September 30, 2015 , compared to $2.3 million and $1.9 million at December 31, 2014 and September 30, 2014 , respectively. Impaired Loans The following schedule presents impaired loans by classes of loans at September 30, 2015 , December 31, 2014 and September 30, 2014 : Recorded Investment Unpaid Principal Balance Related Valuation Allowance (In thousands) September 30, 2015 Impaired loans with a valuation allowance: Commercial $ 19,784 $ 20,059 $ 5,711 Commercial real estate 4,634 5,481 711 Residential mortgage 21,261 21,261 226 Subtotal 45,679 46,801 6,648 Impaired loans with no related valuation allowance: Commercial 28,742 35,072 — Commercial real estate 52,651 72,381 — Real estate construction 400 480 — Land development 1,354 2,285 — Residential mortgage 9,635 9,635 — Consumer installment 603 603 — Home equity 3,132 3,132 — Subtotal 96,517 123,588 — Total impaired loans: Commercial 48,526 55,131 5,711 Commercial real estate 57,285 77,862 711 Real estate construction 400 480 — Land development 1,354 2,285 — Residential mortgage 30,896 30,896 226 Consumer installment 603 603 — Home equity 3,132 3,132 — Total $ 142,196 $ 170,389 $ 6,648 December 31, 2014 Impaired loans with a valuation allowance: Commercial $ 966 $ 1,040 $ 293 Commercial real estate 2,587 2,927 710 Residential mortgage 19,681 19,681 335 Subtotal 23,234 23,648 1,338 Impaired loans with no related valuation allowance: Commercial 38,094 44,557 — Commercial real estate 60,616 82,693 — Real estate construction 162 255 — Land development 1,928 3,484 — Residential mortgage 7,994 7,994 — Consumer installment 518 518 — Home equity 2,121 2,121 — Subtotal 111,433 141,622 — Total impaired loans: Commercial 39,060 45,597 293 Commercial real estate 63,203 85,620 710 Real estate construction 162 255 — Land development 1,928 3,484 — Residential mortgage 27,675 27,675 335 Consumer installment 518 518 — Home equity 2,121 2,121 — Total $ 134,667 $ 165,270 $ 1,338 Recorded Investment Unpaid Principal Balance Related Valuation Allowance (In thousands) September 30, 2014 Impaired loans with a valuation allowance: Commercial $ 1,253 $ 1,396 $ 313 Commercial real estate 3,779 4,094 862 Residential mortgage 19,629 19,629 328 Subtotal 24,661 25,119 1,503 Impaired loans with no related valuation allowance: Commercial 40,344 45,259 — Commercial real estate 45,550 59,037 — Real estate construction 162 369 — Land development 3,244 5,969 — Residential mortgage 6,693 6,693 — Consumer installment 527 527 — Home equity 2,116 2,116 — Subtotal 98,636 119,970 — Total impaired loans: Commercial 41,597 46,655 313 Commercial real estate 49,329 63,131 862 Real estate construction 162 369 — Land development 3,244 5,969 — Residential mortgage 26,322 26,322 328 Consumer installment 527 527 — Home equity 2,116 2,116 — Total $ 123,297 $ 145,089 $ 1,503 The difference between an impaired loan’s recorded investment and the unpaid principal balance for originated loans represents a partial charge-off resulting from a confirmed loss due to the value of the collateral securing the loan being below the loan balance and management’s assessment that full collection of the loan balance is not likely, and for acquired loans that meet the definition of an impaired loan represents fair value adjustments recognized at the acquisition date attributable to expected credit losses and the discounting of expected cash flows at market interest rates. The difference between the recorded investment and the unpaid principal balance of $28.2 million , $30.6 million and $21.8 million at September 30, 2015 , December 31, 2014 and September 30, 2014 , respectively, includes confirmed losses (partial charge-offs) of $14.6 million , $15.4 million and $18.2 million , respectively, and fair value discount adjustments of $13.6 million , $15.2 million and $3.6 million , respectively. Impaired loans included $17.6 million , $19.9 million and $10.2 million at September 30, 2015 , December 31, 2014 and September 30, 2014 , respectively, of acquired loans that were not performing in accordance with original contractual terms. Acquired loans that are not performing in accordance with contractual terms are not reported as nonperforming loans because these loans are recorded in pools at their net realizable value based on the principal and interest the Corporation expects to collect on these loans. Impaired loans also included $44.8 million , $45.7 million and $44.6 million at September 30, 2015 , December 31, 2014 and September 30, 2014 , respectively, of performing TDRs. The following schedule presents information related to impaired loans for the three and nine months ended September 30, 2015 and 2014 : Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 Average Recorded Investment Interest Income Recognized While on Impaired Status Average Recorded Investment Interest Income Recognized While on Impaired Status (In thousands) Commercial $ 42,847 $ 310 $ 39,387 $ 862 Commercial real estate 59,150 470 59,927 1,453 Real estate construction 445 3 491 5 Land development 1,765 23 1,847 84 Residential mortgage 30,467 387 29,084 1,098 Consumer installment 497 — 474 1 Home equity 3,026 20 2,635 42 Total $ 138,197 $ 1,213 $ 133,845 $ 3,545 Three Months Ended September 30, 2014 Nine Months Ended September 30, 2014 Average Recorded Investment Interest Income Recognized While on Impaired Status Average Recorded Investment Interest Income Recognized While on Impaired Status (In thousands) Commercial $ 41,903 $ 346 $ 42,046 $ 1,026 Commercial real estate 50,133 263 51,571 990 Real estate construction 162 — 164 — Land development 3,284 30 4,079 101 Residential mortgage 26,166 310 26,561 941 Consumer installment 481 — 630 — Home equity 2,246 — 2,212 — Total $ 124,375 $ 949 $ 127,263 $ 3,058 The following schedule presents the aging status of the recorded investment in loans by classes of loans at September 30, 2015 , December 31, 2014 and September 30, 2014 : 31-60 Days Past Due 61-89 Days Past Due Accruing Loans Past Due 90 Days or More Non-accrual Loans Total Past Due Current Total Loans (In thousands) September 30, 2015 Originated Portfolio: Commercial $ 4,580 $ 1,297 $ 122 $ 26,463 $ 32,462 $ 1,432,778 $ 1,465,240 Commercial real estate 7,716 344 216 24,969 33,245 1,395,543 1,428,788 Real estate construction — — — 247 247 127,573 127,820 Land development — — — 297 297 7,534 7,831 Residential mortgage 1,818 85 572 6,248 8,723 1,152,387 1,161,110 Consumer installment 3,075 375 — 536 3,986 883,471 887,457 Home equity 2,427 750 558 1,876 5,611 583,302 588,913 Total $ 19,616 $ 2,851 $ 1,468 $ 60,636 $ 84,571 $ 5,582,588 $ 5,667,159 Acquired Portfolio: Commercial $ 209 $ — $ 6,273 $ — $ 6,482 $ 358,148 $ 364,630 Commercial real estate 722 760 5,783 — 7,265 791,311 798,576 Real estate construction — — 153 — 153 5,432 5,585 Land development — — 725 — 725 3,620 4,345 Residential mortgage 908 — 3,387 — 4,295 229,022 233,317 Consumer installment 30 — 67 — 97 12,197 12,294 Home equity 675 340 1,256 — 2,271 128,018 130,289 Total $ 2,544 $ 1,100 $ 17,644 $ — $ 21,288 $ 1,527,748 $ 1,549,036 31-60 Days Past Due 61-89 Days Past Due Accruing Loans Past Due 90 Days or More Non-accrual Loans Total Past Due Current Total Loans (In thousands) December 31, 2014 Originated Portfolio: Commercial $ 4,033 $ 743 $ 170 $ 16,418 $ 21,364 $ 1,234,534 $ 1,255,898 Commercial real estate 7,515 1,383 — 24,966 33,864 1,170,562 1,204,426 Real estate construction 262 — — 162 424 138,316 138,740 Land development — — — 225 225 4,303 4,528 Residential mortgage 2,126 54 557 6,706 9,443 988,558 998,001 Consumer installment 3,620 512 — 500 4,632 814,746 819,378 Home equity 3,039 660 1,346 1,667 6,712 562,384 569,096 Total $ 20,595 $ 3,352 $ 2,073 $ 50,644 $ 76,664 $ 4,913,403 $ 4,990,067 Acquired Portfolio: Commercial $ 133 $ — $ 5,427 $ — $ 5,560 $ 93,423 $ 98,983 Commercial real estate 2,014 352 11,052 — 13,418 339,804 353,222 Real estate construction — — — — — 14,005 14,005 Land development — — 1,653 — 1,653 12,569 14,222 Residential mortgage 156 — 18 — 174 112,215 112,389 Consumer installment 55 3 454 — 512 9,680 10,192 Home equity 636 106 1,288 — 2,030 93,120 95,150 Total $ 2,994 $ 461 $ 19,892 $ — $ 23,347 $ 674,816 $ 698,163 September 30, 2014 Originated Portfolio: Commercial $ 3,717 $ 1,145 $ 16 $ 18,213 $ 23,091 $ 1,144,885 $ 1,167,976 Commercial real estate 3,837 29 87 23,858 27,811 1,155,665 1,183,476 Real estate construction 1,075 — — 162 1,237 113,744 114,981 Land development — — — 1,467 1,467 4,789 6,256 Residential mortgage 1,669 — 380 6,693 8,742 965,447 974,189 Consumer installment 2,859 437 — 527 3,823 778,791 782,614 Home equity 2,592 361 1,779 2,116 6,848 541,274 548,122 Total $ 15,749 $ 1,972 $ 2,262 $ 53,036 $ 73,019 $ 4,704,595 $ 4,777,614 Acquired Portfolio: Commercial $ — $ — $ 6,514 $ — $ 6,514 $ 65,456 $ 71,970 Commercial real estate — — 1,559 — 1,559 137,611 139,170 Real estate construction — — — — — 10,801 10,801 Land development — — 1,727 — 1,727 2,451 4,178 Residential mortgage — — 202 — 202 9,658 9,860 Consumer installment — — — — — 829 829 Home equity 335 — 227 — 562 25,936 26,498 Total $ 335 $ — $ 10,229 $ — $ 10,564 $ 252,742 $ 263,306 Loans Modified Under Troubled Debt Restructurings (TDRs) The following schedule presents the Corporation’s loans reported as TDRs at September 30, 2015 , December 31, 2014 and September 30, 2014 : Performing TDRs Non-Performing TDRs Nonaccrual TDRs Total (In thousands) September 30, 2015 Commercial loan portfolio $ 27,096 $ 15,559 $ 31,743 $ 74,398 Consumer loan portfolio 17,707 3,554 3,329 24,590 Total $ 44,803 $ 19,113 $ 35,072 $ 98,988 December 31, 2014 Commercial loan portfolio $ 29,179 $ 15,271 $ 32,597 $ 77,047 Consumer loan portfolio 16,485 3,196 4,594 24,275 Total $ 45,664 $ 18,467 $ 37,191 $ 101,322 September 30, 2014 Commercial loan portfolio $ 28,606 $ 11,797 $ 36,549 $ 76,952 Consumer loan portfolio 15,982 3,647 3,996 23,625 Total $ 44,588 $ 15,444 $ 40,545 $ 100,577 The following schedule provides information on the Corporation's TDRs that were modified during the three and nine months ended September 30, 2015 and 2014 : Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 Number of Loans Pre- Modification Recorded Investment Post- Modification Recorded Investment Number of Loans Pre- Modification Recorded Investment Post- Modification Recorded Investment (Dollars in thousands) Commercial loan portfolio: Commercial 3 $ 882 $ 882 21 $ 5,146 $ 5,146 Commercial real estate 3 2,044 2,044 12 5,105 5,105 Land development — — — 1 305 305 Subtotal – commercial loan portfolio 6 2,926 2,926 34 10,556 10,556 Consumer loan portfolio 15 481 481 54 2,450 2,448 Total 21 $ 3,407 $ 3,407 88 $ 13,006 $ 13,004 Three Months Ended September 30, 2014 Nine Months Ended September 30, 2014 Number of Loans Pre- Modification Recorded Investment Post- Modification Recorded Investment Number of Loans Pre- Modification Recorded Investment Post- Modification Recorded Investment (Dollars in thousands) Commercial loan portfolio: Commercial 7 $ 448 $ 448 34 $ 12,379 $ 12,379 Commercial real estate 7 1,138 1,138 28 7,062 7,062 Land development — — — 1 72 72 Subtotal – commercial loan portfolio 14 1,586 1,586 63 19,513 19,513 Consumer loan portfolio 14 572 565 107 3,208 3,191 Total 28 $ 2,158 $ 2,151 170 $ 22,721 $ 22,704 The pre-modification and post-modification recorded investment represents amounts as of the date of loan modification. The difference between the pre-modification and post-modification recorded investment of residential mortgage TDRs represents impairment recognized by the Corporation through the provision for loan losses computed based on a loan's post-modification present value of expected future cash flows discounted at the loan's original effective interest rate. The following schedule includes TDRs for which there was a payment default during the three and nine months ended September 30, 2015 and 2014 , whereby the borrower was past due with respect to principal and/or interest for 90 days or more, and the loan became a TDR during the twelve-month period prior to the default: Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 Number of Loans Principal Balance at End of Period Number of Loans Principal Balance at End of Period (Dollars in thousands) Commercial loan portfolio: Commercial — $ — — $ — Commercial real estate 1 74 5 1,016 Subtotal – commercial loan portfolio 1 74 5 1,016 Consumer loan portfolio 1 13 2 46 Total 2 $ 87 7 $ 1,062 Three Months Ended September 30, 2014 Nine Months Ended September 30, 2014 Number of Loans Principal Balance at End of Period Number of Loans Principal Balance at End of Period (Dollars in thousands) Commercial loan portfolio: Commercial — $ — 6 $ 875 Commercial real estat |
