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 six 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 and land development — Real estate construction loans represent 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 loans represent 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 are 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: June 30, December 31, June 30, (In thousands) Commercial loan portfolio: Commercial $ 1,953,301 $ 1,905,879 $ 1,754,873 Commercial real estate 2,157,733 2,112,162 2,243,513 Real estate construction and land development 285,848 232,076 112,312 Subtotal 4,396,882 4,250,117 4,110,698 Consumer loan portfolio: Residential mortgage 1,494,192 1,429,636 1,310,167 Consumer installment 1,048,622 877,457 887,907 Home equity 707,573 713,937 725,971 Subtotal 3,250,387 3,021,030 2,924,045 Total loans $ 7,647,269 $ 7,271,147 $ 7,034,743 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 Chemical Bank, 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 loan limits exceeding $1.5 million and up to $3.5 million . With respect to the group loan authorities, 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 the 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 the approval of the board of directors of Chemical Bank. 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, and 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 June 30, 2016 , December 31, 2015 and June 30, 2015 : Commercial Commercial Real Estate Real Estate Construction and Land Development Total (In thousands) June 30, 2016 Originated Portfolio: Risk Grades 1-5 $ 1,537,612 $ 1,479,365 $ 239,194 $ 3,256,171 Risk Grade 6 46,202 36,814 843 83,859 Risk Grade 7 35,602 15,434 517 51,553 Risk Grade 8 14,577 21,324 496 36,397 Risk Grade 9 — 1 — 1 Subtotal 1,633,993 1,552,938 241,050 3,427,981 Acquired Portfolio: Risk Grades 1-5 292,492 554,352 40,671 887,515 Risk Grade 6 15,352 20,746 1,500 37,598 Risk Grade 7 8,448 23,879 1,229 33,556 Risk Grade 8 3,016 5,818 1,398 10,232 Risk Grade 9 — — — — Subtotal 319,308 604,795 44,798 968,901 Total $ 1,953,301 $ 2,157,733 $ 285,848 $ 4,396,882 December 31, 2015 Originated Portfolio: Risk Grades 1-5 $ 1,418,301 $ 1,341,202 $ 183,323 $ 2,942,826 Risk Grade 6 34,727 31,036 180 65,943 Risk Grade 7 39,933 26,658 1,123 67,714 Risk Grade 8 26,459 25,163 521 52,143 Risk Grade 9 2,095 — — 2,095 Subtotal 1,521,515 1,424,059 185,147 3,130,721 Acquired Portfolio: Risk Grades 1-5 340,782 629,430 41,683 1,011,895 Risk Grade 6 28,321 23,926 2,556 54,803 Risk Grade 7 11,607 29,975 1,537 43,119 Risk Grade 8 3,654 4,772 1,153 9,579 Risk Grade 9 — — — — Subtotal 384,364 688,103 46,929 1,119,396 Total $ 1,905,879 $ 2,112,162 $ 232,076 $ 4,250,117 June 30, 2015 Originated Portfolio: Risk Grades 1-5 $ 1,269,091 $ 1,273,725 $ 97,364 $ 2,640,180 Risk Grade 6 32,189 34,677 433 67,299 Risk Grade 7 41,316 29,737 2,127 73,180 Risk Grade 8 17,260 25,283 502 43,045 Risk Grade 9 — 4 — 4 Subtotal 1,359,856 1,363,426 100,426 2,823,708 Acquired Portfolio: Risk Grades 1-5 347,914 820,400 10,139 1,178,453 Risk Grade 6 29,412 22,796 71 52,279 Risk Grade 7 13,910 30,288 119 44,317 Risk Grade 8 3,781 6,603 1,557 11,941 Risk Grade 9 — — — — Subtotal 395,017 880,087 11,886 1,286,990 Total $ 1,754,873 $ 2,243,513 $ 112,312 $ 4,110,698 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 to be in a nonperforming status until they meet the Corporation’s definition of a performing TDR, at which time they are considered to be 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 June 30, 2016 , December 31, 2015 and June 30, 2015 : Residential Mortgage Consumer Installment Home Equity Total Consumer (In thousands) June 30, 2016 Originated Loans: Performing $ 1,299,382 $ 1,041,978 $ 598,283 $ 2,939,643 Nonperforming 7,983 285 3,042 11,310 Subtotal 1,307,365 1,042,263 601,325 2,950,953 Acquired Loans: Performing 185,492 6,298 105,360 297,150 Nonperforming 1,335 61 888 2,284 Subtotal 186,827 6,359 106,248 299,434 Total $ 1,494,192 $ 1,048,622 $ 707,573 $ 3,250,387 December 31, 2015 Originated Loans: Performing $ 1,207,945 $ 868,975 $ 587,566 $ 2,664,486 Nonperforming 9,030 451 3,246 12,727 Subtotal 1,216,975 869,426 590,812 2,677,213 Acquired Loans: Performing 210,580 7,984 122,118 340,682 Nonperforming 2,081 47 1,007 3,135 Subtotal 212,661 8,031 123,125 343,817 Total $ 1,429,636 $ 877,457 $ 713,937 $ 3,021,030 June 30, 2015 Originated Loans: Performing $ 1,058,696 $ 871,543 $ 584,520 $ 2,514,759 Nonperforming 9,793 393 2,357 12,543 Subtotal 1,068,489 871,936 586,877 2,527,302 Acquired Loans: Performing 238,698 15,966 138,086 392,750 Nonperforming 2,980 5 1,008 3,993 Subtotal 241,678 15,971 139,094 396,743 Total $ 1,310,167 $ 887,907 $ 725,971 $ 2,924,045 Nonperforming Loans A summary of nonperforming loans follows: June 30, December 31, June 30, (In thousands) Nonaccrual loans: Commercial $ 14,577 $ 28,554 $ 17,260 Commercial real estate 21,325 25,163 25,287 Real estate construction and land development 496 521 502 Residential mortgage 5,343 5,557 6,004 Consumer installment 285 451 393 Home equity 1,971 1,979 1,769 Total nonaccrual loans 43,997 62,225 51,215 Accruing loans contractually past due 90 days or more as to interest or principal payments: Commercial 3 364 711 Commercial real estate 3 254 56 Residential mortgage 407 402 424 Home equity 1,071 1,267 588 Total accruing loans contractually past due 90 days or more as to interest or principal payments 1,484 2,287 1,779 Nonperforming TDRs: Commercial loan portfolio 14,240 16,297 14,547 Consumer loan portfolio 2,233 3,071 3,365 Total nonperforming TDRs 16,473 19,368 17,912 Total nonperforming loans $ 61,954 $ 83,880 $ 70,906 The Corporation’s nonaccrual loans at June 30, 2016 , December 31, 2015 and June 30, 2015 included $32.4 million , $35.9 million and $35.7 million , respectively, of nonaccrual TDRs. The Corporation had $0.9 million of residential mortgage loans that were in the process of foreclosure at June 30, 2016 , compared to $2.9 million and $2.0 million at December 31, 2015 and June 30, 2015 , respectively. Impaired Loans The following schedule presents impaired loans by classes of loans at June 30, 2016 , December 31, 2015 and June 30, 2015 : Recorded Investment Unpaid Principal Balance Related Valuation Allowance (In thousands) June 30, 2016 Impaired loans with a valuation allowance: Commercial $ 3,764 $ 3,769 $ 2,582 Commercial real estate 3,270 3,438 472 Residential mortgage 20,745 20,745 163 Subtotal 27,779 27,952 3,217 Impaired loans with no related valuation allowance: Commercial 34,633 43,576 — Commercial real estate 47,894 58,312 — Real estate construction and land development 2,196 3,770 — Residential mortgage 6,678 7,365 — Consumer installment 347 365 — Home equity 2,859 3,084 — Subtotal 94,607 116,472 — Total impaired loans: Commercial 38,397 47,345 2,582 Commercial real estate 51,164 61,750 472 Real estate construction and land development 2,196 3,770 — Residential mortgage 27,423 28,110 163 Consumer installment 347 365 — Home equity 2,859 3,084 — Total $ 122,386 $ 144,424 $ 3,217 December 31, 2015 Impaired loans with a valuation allowance: Commercial $ 18,898 $ 19,426 $ 5,700 Commercial real estate 4,448 4,688 497 Residential mortgage 21,037 21,037 192 Subtotal 44,383 45,151 6,389 Impaired loans with no related valuation allowance: Commercial 31,039 37,703 — Commercial real estate 53,518 69,130 — Real estate construction and land development 2,136 3,108 — Residential mortgage 7,638 8,644 — Consumer installment 498 512 — Home equity 2,986 3,270 — Subtotal 97,815 122,367 — Total impaired loans: Commercial 49,937 57,129 5,700 Commercial real estate 57,966 73,818 497 Real estate construction and land development 2,136 3,108 — Residential mortgage 28,675 29,681 192 Consumer installment 498 512 — Home equity 2,986 3,270 — Total $ 142,198 $ 167,518 $ 6,389 Recorded Investment Unpaid Principal Balance Related Valuation Allowance (In thousands) June 30, 2015 Impaired loans with a valuation allowance: Commercial $ 4,044 $ 4,137 $ 718 Commercial real estate 2,789 2,948 603 Residential mortgage 20,970 20,970 260 Subtotal 27,803 28,055 1,581 Impaired loans with no related valuation allowance: Commercial 32,461 38,160 — Commercial real estate 56,052 78,490 — Real estate construction and land development 2,393 4,175 — Residential mortgage 8,984 8,984 — Consumer installment 398 398 — Home equity 2,778 2,778 — Subtotal 103,066 132,985 — Total impaired loans: Commercial 36,505 42,297 718 Commercial real estate 58,841 81,438 603 Real estate construction and land development 2,393 4,175 — Residential mortgage 29,954 29,954 260 Consumer installment 398 398 — Home equity 2,778 2,778 — Total $ 130,869 $ 161,040 $ 1,581 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 $22.0 million , $25.3 million and $30.2 million at June 30, 2016 , December 31, 2015 and June 30, 2015 , respectively, includes confirmed losses (partial charge-offs) of $16.3 million , $17.1 million and $15.2 million , respectively, and fair value discount adjustments of $5.7 million , $8.2 million and $15.0 million , respectively. Impaired loans included $12.5 million , $12.8 million and $15.9 million at June 30, 2016 , December 31, 2015 and June 30, 2015 , 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 $49.4 million , $47.8 million and $45.8 million at June 30, 2016 , December 31, 2015 and June 30, 2015 , respectively, of performing TDRs. The following schedule presents information related to impaired loans for the three and six months ended June 30, 2016 and 2015 : Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 Average Recorded Investment Interest Income Recognized While on Impaired Status Average Recorded Investment Interest Income Recognized While on Impaired Status (In thousands) Commercial $ 38,606 $ 348 $ 41,811 $ 677 Commercial real estate 53,723 391 55,839 849 Real estate construction and land development 2,265 26 2,166 51 Residential mortgage 27,418 356 27,755 722 Consumer installment 330 1 359 2 Home equity 2,791 13 3,022 28 Total $ 125,133 $ 1,135 $ 130,952 $ 2,329 Three Months Ended June 30, 2015 Six Months Ended June 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 $ 36,735 $ 263 $ 37,655 $ 552 Commercial real estate 60,393 458 60,317 983 Real estate construction and land development 2,290 36 2,403 63 Residential mortgage 29,432 380 28,392 711 Consumer installment 426 1 463 1 Home equity 2,529 14 2,440 22 Total $ 131,805 $ 1,152 $ 131,670 $ 2,332 The following schedule presents the aging status of the recorded investment in loans by classes of loans at June 30, 2016 , December 31, 2015 and June 30, 2015 : 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) June 30, 2016 Originated Portfolio: Commercial $ 4,522 $ 822 $ 3 $ 14,577 $ 19,924 $ 1,614,069 $ 1,633,993 Commercial real estate 8,842 343 3 21,325 30,513 1,522,425 1,552,938 Real estate construction and land development 62 — — 496 558 240,492 241,050 Residential mortgage 1,955 — 407 5,343 7,705 1,299,660 1,307,365 Consumer installment 2,856 554 — 285 3,695 1,038,568 1,042,263 Home equity 2,594 366 1,071 1,971 6,002 595,323 601,325 Total $ 20,831 $ 2,085 $ 1,484 $ 43,997 $ 68,397 $ 6,310,537 $ 6,378,934 Acquired Portfolio: Commercial $ 547 $ — $ 3,038 $ — $ 3,585 $ 315,723 $ 319,308 Commercial real estate 90 — 5,817 — 5,907 598,888 604,795 Real estate construction and land development 389 — 1,398 — 1,787 43,011 44,798 Residential mortgage 407 — 1,335 — 1,742 185,085 186,827 Consumer installment 58 25 62 — 145 6,214 6,359 Home equity 416 38 888 — 1,342 104,906 106,248 Total $ 1,907 $ 63 $ 12,538 $ — $ 14,508 $ 1,253,827 $ 1,268,335 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, 2015 Originated Portfolio: Commercial $ 3,685 $ 1,230 $ 364 $ 28,554 $ 33,833 $ 1,487,682 $ 1,521,515 Commercial real estate 4,168 1,603 254 25,163 31,188 1,392,871 1,424,059 Real estate construction and land development — — — 521 521 184,626 185,147 Residential mortgage 1,737 — 402 5,557 7,696 1,209,279 1,216,975 Consumer installment 3,145 644 — 451 4,240 865,186 869,426 Home equity 1,767 788 1,267 1,979 5,801 585,011 590,812 Total $ 14,502 $ 4,265 $ 2,287 $ 62,225 $ 83,279 $ 5,724,655 $ 5,807,934 Acquired Portfolio: Commercial $ 490 $ 532 $ 3,735 $ — $ 4,757 $ 379,607 $ 384,364 Commercial real estate 3,557 691 4,771 — 9,019 679,084 688,103 Real estate construction and land development — — 1,154 — 1,154 45,775 46,929 Residential mortgage 1,370 — 2,081 — 3,451 209,210 212,661 Consumer installment 55 — 47 — 102 7,929 8,031 Home equity 847 78 1,007 — 1,932 121,193 123,125 Total $ 6,319 $ 1,301 $ 12,795 $ — $ 20,415 $ 1,442,798 $ 1,463,213 June 30, 2015 Originated Portfolio: Commercial $ 4,055 $ 2,317 $ 711 $ 17,260 $ 24,343 $ 1,335,513 $ 1,359,856 Commercial real estate 2,754 1,117 56 25,287 29,214 1,334,212 1,363,426 Real estate construction and land development 413 — — 502 915 99,511 100,426 Residential mortgage 1,536 — 424 6,004 7,964 1,060,525 1,068,489 Consumer installment 2,526 302 — 393 3,221 868,715 871,936 Home equity 2,334 204 588 1,769 4,895 581,982 586,877 Total $ 13,618 $ 3,940 $ 1,779 $ 51,215 $ 70,552 $ 5,280,458 $ 5,351,010 Acquired Portfolio: Commercial $ 690 $ — $ 3,781 $ — $ 4,471 $ 390,546 $ 395,017 Commercial real estate 969 291 6,603 — 7,863 872,224 880,087 Real estate construction and land development — — 1,557 — 1,557 10,329 11,886 Residential mortgage 1,077 138 2,980 — 4,195 237,483 241,678 Consumer installment — 56 5 — 61 15,910 15,971 Home equity 1,153 210 1,008 — 2,371 136,723 139,094 Total $ 3,889 $ 695 $ 15,934 $ — $ 20,518 $ 1,663,215 $ 1,683,733 Loans Modified Under Troubled Debt Restructurings (TDRs) The following schedule presents the Corporation’s TDRs at June 30, 2016 , December 31, 2015 and June 30, 2015 : Performing TDRs Non-Performing TDRs Nonaccrual TDRs Total (In thousands) June 30, 2016 Commercial loan portfolio $ 30,866 $ 14,240 $ 28,979 $ 74,085 Consumer loan portfolio 18,512 2,233 3,402 24,147 Total $ 49,378 $ 16,473 $ 32,381 $ 98,232 December 31, 2015 Commercial loan portfolio $ 29,844 $ 16,297 $ 32,682 $ 78,823 Consumer loan portfolio 17,966 3,071 3,251 24,288 Total $ 47,810 $ 19,368 $ 35,933 $ 103,111 June 30, 2015 Commercial loan portfolio $ 28,203 $ 14,547 $ 32,001 $ 74,751 Consumer loan portfolio 17,605 3,365 3,707 24,677 Total $ 45,808 $ 17,912 $ 35,708 $ 99,428 The following schedule provides information on the Corporation's TDRs that were modified during the three and six months ended June 30, 2016 and 2015 : Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 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 21 $ 4,149 $ 4,149 28 $ 7,981 $ 7,981 Commercial real estate 2 1,454 1,454 6 2,441 2,441 Subtotal – commercial loan portfolio 23 5,603 5,603 34 10,422 10,422 Consumer loan portfolio 14 490 490 21 694 694 Total 37 $ 6,093 $ 6,093 55 $ 11,116 $ 11,116 Three Months Ended June 30, 2015 Six Months Ended June 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 13 $ 2,332 $ 2,332 18 $ 4,264 $ 4,264 Commercial real estate 4 527 527 9 3,061 3,061 Real estate construction and land development 1 305 305 1 305 305 Subtotal – commercial loan portfolio 18 3,164 3,164 28 7,630 7,630 Consumer loan portfolio 29 1,633 1,631 39 1,969 1,967 Total 47 $ 4,797 $ 4,795 67 $ 9,599 $ 9,597 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 six months ended June 30, 2016 and 2015 , 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 June 30, 2016 Six Months Ended June 30, 2016 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 1 788 2 1,721 Subtotal – commercial loan portfolio 1 788 2 1,721 Consumer loan portfolio 1 — 2 — Total 2 $ 788 4 $ 1,721 Three Months Ended June 30, 2015 Six Months Ended June 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 1 183 4 942 Subtotal – commercial loan portfolio 1 183 4 942 Consumer loan portfolio — — 1 33 Total 1 $ 183 5 $ 975 Allowance for Loan Losses The following schedule presents, by loan portfolio segment, the changes in the allowance for the three and six months ended June 30, 2016 and details regarding the balance in the allowance and the recorded investment in loans at June 30, 2016 by impairment evaluation method. Commercial Loan Portfolio Consumer Loan Portfolio Unallocated Total (In thousands) Changes in allowance for loan losses for the three months ended June 30, 2016: Beginning balance $ 44,668 $ 25,650 $ — $ 70,318 Provision for loan losses 900 2,100 — 3,000 Charge-offs (2,542 ) (1,078 ) — (3,620 ) Recoveries 1,202 606 — 1,808 Ending balance $ 44,228 $ 27,278 $ — $ 71,506 Changes in allowance for loan losses for the six months ended June 30, 2016: Beginning balance $ 47,234 $ 26,094 $ — $ 73,328 Provision for loan losses 1,900 2,600 — 4,500 Charge-offs (6,438 ) (2,640 ) — (9,078 ) Recoveries 1,532 1,224 — 2,756 Ending balance $ 44,228 $ 27,278 $ — $ 71,506 Allowance for loan losses balance at June 30, 2016 attributable to: Loans individually evaluated for impairment $ 3,054 $ 163 $ — $ 3,217 Loans collectively evaluated for impairment 41,174 27,115 — 68,289 Loans acquired with deteriorated credit quality — — — — Total $ 44,228 $ 27,278 $ — |