Loans | Loans The following table provides the balance of loans, net of unearned income, by portfolio segment as of September 30, 2018 and December 31, 2017 : September 30 December 31 (Dollars in thousands) 2018 2017 Commercial: Commercial, financial, and industrial $ 16,044,145 $ 16,057,273 Commercial real estate 4,237,036 4,214,695 Consumer: Consumer real estate (a) 6,191,183 6,367,755 Permanent mortgage 347,054 399,307 Credit card & other 530,796 619,899 Loans, net of unearned income $ 27,350,214 $ 27,658,929 Allowance for loan losses 185,959 189,555 Total net loans $ 27,164,255 $ 27,469,374 (a) Balances as of September 30, 2018 and December 31, 2017 , include $17.1 million and $24.2 million of restricted real estate loans, respectively. See Note 13—Variable Interest Entities for additional information. COMPONENTS OF THE LOAN PORTFOLIO The loan portfolio is disaggregated into segments and then further disaggregated into classes for certain disclosures. GAAP defines a portfolio segment as the level at which an entity develops and documents a systematic method for determining its allowance for credit losses. A class is generally determined based on the initial measurement attribute (i.e., amortized cost or purchased credit-impaired), risk characteristics of the loan, and FHN’s method for monitoring and assessing credit risk. Commercial loan portfolio segments include commercial, financial and industrial (“C&I”) and commercial real estate. Commercial classes within C&I include general C&I, loans to mortgage companies, the trust preferred loans (“TRUPs”) (i.e. long-term unsecured loans to bank and insurance-related businesses) portfolio and purchased credit-impaired (“PCI”) loans. Loans to mortgage companies include commercial lines of credit to qualified mortgage companies primarily for the temporary warehousing of eligible mortgage loans prior to the borrower’s sale of those mortgage loans to third party investors. Commercial classes within CRE include income CRE, residential CRE and PCI loans. Consumer loan portfolio segments include consumer real estate, permanent mortgage, and the credit card and other portfolio. Consumer classes include home equity lines of credit (“HELOCs”), real estate (“R/E”) installment and PCI loans within the consumer real estate segment, permanent mortgage (which is both a segment and a class), and credit card and other. Concentrations FHN has a concentration of residential real estate loans ( 24 percent of total loans), the majority of which is in the consumer real estate segment ( 23 percent of total loans). Loans to finance and insurance companies total $2.7 billion ( 17 percent of the C&I portfolio, or 10 percent of the total loans). FHN had loans to mortgage companies totaling $2.1 billion ( 13 percent of the C&I segment, or 8 percent of total loans) as of September 30, 2018 . As a result, 30 percent of the C&I segment is sensitive to impacts on the financial services industry. Purchased Credit-Impaired Loans The following table presents a rollforward of the accretable yield for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended Nine Months Ended (Dollars in thousands) 2018 2017 2018 2017 Balance, beginning of period $ 14,474 $ 4,045 $ 15,623 $ 6,871 Accretion (2,183 ) (642 ) (6,927 ) (2,412 ) Adjustment for payoffs (840 ) (198 ) (2,559 ) (1,232 ) Adjustment for charge-offs (122 ) — (1,046 ) — Adjustment for pool excess recovery (a) (123 ) — (123 ) (222 ) Increase/(decrease) in accretable yield (b) 4,062 (2 ) 10,721 112 Disposals — — (240 ) — Other — — (181 ) 86 Balance, end of period $ 15,268 $ 3,203 $ 15,268 $ 3,203 (a) Represents the removal of accretable difference for the remaining loans in a pool which is now in a recovery state. (b) Includes changes in the accretable yield due to both transfers from the nonaccretable difference and the impact of changes in the expected timing and amounts of the cash flows. At September 30, 2018 , the ALLL related to PCI loans was $3.4 million compared to $3.2 million at December 31, 2017 . A loan loss provision expense related to PCI loans of $.9 million was recognized during the three months ended September 30, 2018 , as compared to a loan loss provision expense of $2.6 million recognized during the three months ended September 30, 2017 . A loan loss provision expense related to PCI loans of $3.5 million was recognized during the nine months ended September 30, 2018 , as compared to a loan loss provision expense of $2.4 million recognized during the nine months ended September 30, 2017 . The following table reflects the outstanding principal balance and carrying amounts of the acquired PCI loans as of September 30, 2018 and December 31, 2017 : September 30, 2018 December 31, 2017 (Dollars in thousands) Carrying value Unpaid balance Carrying value Unpaid balance Commercial, financial and industrial $ 47,841 $ 53,265 $ 96,598 $ 109,280 Commercial real estate 23,174 26,970 36,107 41,488 Consumer real estate 33,203 37,900 38,176 42,568 Credit card and other 2,229 2,545 5,500 6,351 Total $ 106,447 $ 120,680 $ 176,381 $ 199,687 Impaired Loans The following tables provide information at September 30, 2018 and December 31, 2017 , by class related to individually impaired loans and consumer TDRs, regardless of accrual status. Recorded investment is defined as the amount of the investment in a loan, excluding any valuation allowance but including any direct write-down of the investment. For purposes of this disclosure, PCI loans and the TRUPs valuation allowance have been excluded. September 30, 2018 December 31, 2017 (Dollars in thousands) Recorded Unpaid Related Recorded Unpaid Related Impaired loans with no related allowance recorded: Commercial: General C&I $ 21,555 $ 21,910 $ — $ 8,183 $ 17,372 $ — Income CRE 1,611 1,611 — — — — Residential CRE 495 963 — — — — Total $ 23,661 $ 24,484 $ — $ 8,183 $ 17,372 $ — Consumer: HELOC (a) $ 7,874 $ 15,869 $ — $ 9,258 $ 19,193 $ — R/E installment loans (a) 5,891 6,518 — 4,093 4,663 — Permanent mortgage (a) 3,703 6,043 — 5,132 7,688 — Total $ 17,468 $ 28,430 $ — $ 18,483 $ 31,544 $ — Impaired loans with related allowance recorded: Commercial: General C&I $ 29,058 $ 29,058 $ 5,103 $ 31,774 $ 38,256 $ 5,119 TRUPs 2,936 3,700 925 3,067 3,700 925 Income CRE 397 397 — 1,612 1,612 49 Residential CRE — — — 795 1,263 83 Total $ 32,391 $ 33,155 $ 6,028 $ 37,248 $ 44,831 $ 6,176 Consumer: HELOC $ 67,086 $ 70,168 $ 11,136 $ 72,469 $ 75,207 $ 14,382 R/E installment loans 38,878 39,581 6,940 43,075 43,827 8,793 Permanent mortgage 71,130 81,971 9,996 79,662 90,934 12,105 Credit card & other 552 552 293 593 593 311 Total $ 177,646 $ 192,272 $ 28,365 $ 195,799 $ 210,561 $ 35,591 Total commercial $ 56,052 $ 57,639 $ 6,028 $ 45,431 $ 62,203 $ 6,176 Total consumer $ 195,114 $ 220,702 $ 28,365 $ 214,282 $ 242,105 $ 35,591 Total impaired loans $ 251,166 $ 278,341 $ 34,393 $ 259,713 $ 304,308 $ 41,767 (a) All discharged bankruptcy loans are charged down to an estimate of net realizable value and do not carry any allowance. Three Months Ended September 30 Nine months ended September 30 2018 2017 2018 2017 (Dollars in thousands) Average Interest Average Interest Average Interest Average Interest Impaired loans with no related allowance recorded: Commercial: General C&I $ 23,740 $ 203 $ 5,771 $ — $ 21,506 $ 561 $ 8,706 $ — Income CRE 1,680 12 — — 1,379 37 — — Residential CRE 500 — — — 416 — — — Total $ 25,920 $ 215 $ 5,771 $ — $ 23,301 $ 598 $ 8,706 $ — Consumer: HELOC (a) $ 8,343 $ — $ 10,225 $ — $ 8,878 $ — $ 10,536 $ — R/E installment loans (a) 4,631 — 4,182 — 4,032 — 4,014 — Permanent mortgage (a) 3,949 — 5,693 — 4,638 — 5,701 — Total $ 16,923 $ — $ 20,100 $ — $ 17,548 $ — $ 20,251 $ — Impaired loans with related allowance recorded: Commercial: General C&I $ 16,375 $ — $ 26,144 $ 193 $ 16,038 $ — $ 29,136 $ 597 TRUPs 2,960 — 3,117 — 3,004 — 3,157 — Income CRE 199 5 1,628 11 335 5 1,737 39 Residential CRE — — 1,044 — 133 — 1,210 10 Total $ 19,534 $ 5 $ 31,933 $ 204 $ 19,510 $ 5 $ 35,240 $ 646 Consumer: HELOC $ 68,913 $ 556 $ 74,894 $ 554 $ 70,452 $ 1,711 $ 78,859 $ 1,695 R/E installment loans 39,147 246 47,628 315 40,512 764 49,634 950 Permanent mortgage 71,898 585 79,305 616 74,617 1,737 82,186 1,805 Credit card & other 578 3 452 3 626 9 351 8 Total $ 180,536 $ 1,390 $ 202,279 $ 1,488 $ 186,207 $ 4,221 $ 211,030 $ 4,458 Total commercial $ 45,454 $ 220 $ 37,704 $ 204 $ 42,811 $ 603 $ 43,946 $ 646 Total consumer $ 197,459 $ 1,390 $ 222,379 $ 1,488 $ 203,755 $ 4,221 $ 231,281 $ 4,458 Total impaired loans $ 242,913 $ 1,610 $ 260,083 $ 1,692 $ 246,566 $ 4,824 $ 275,227 $ 5,104 (a) All discharged bankruptcy loans are charged down to an estimate of net realizable value and do not carry any allowance. Asset Quality Indicators FHN employs a dual grade commercial risk grading methodology to assign an estimate for the probability of default (“PD”) and the loss given default (“LGD”) for each commercial loan using factors specific to various industry, portfolio, or product segments that result in a rank ordering of risk and the assignment of grades PD 1 to PD 16 . This credit grading system is intended to identify and measure the credit quality of the loan portfolio by analyzing the migration of loans between grading categories. It is also integral to the estimation methodology utilized in determining the allowance for loan losses since an allowance is established for pools of commercial loans based on the credit grade assigned. Each PD grade corresponds to an estimated one-year default probability percentage; a PD 1 has the lowest expected default probability, and probabilities increase as grades progress down the scale. PD 1 through PD 12 are “pass” grades. PD grades 13 - 16 correspond to the regulatory-defined categories of special mention ( 13 ), substandard ( 14 ), doubtful ( 15 ), and loss ( 16 ). Pass loan grades are required to be reassessed annually or earlier whenever there has been a material change in the financial condition of the borrower or risk characteristics of the relationship. All commercial loans over $1 million and certain commercial loans over $500,000 that are graded 13 or worse are reassessed on a quarterly basis. Loan grading discipline is regularly reviewed internally by Credit Assurance Services to determine if the process continues to result in accurate loan grading across the portfolio. FHN may utilize availability of guarantors/sponsors to support lending decisions during the credit underwriting process and when determining the assignment of internal loan grades. LGD grades are assigned based on a scale of 1 - 12 and represent FHN’s expected recovery based on collateral type in the event a loan defaults. See Note 5 – Allowance for Loan Losses for further discussion on the credit grading system. The following tables provide the balances of commercial loan portfolio classes with associated allowance, disaggregated by PD grade as of September 30, 2018 and December 31, 2017 : September 30, 2018 (Dollars in thousands) General C&I Loans to Mortgage Companies TRUPs (a) Income CRE Residential CRE Total Percentage of Total Allowance for Loan Losses PD Grade: 1 $ 600,373 $ — $ — $ 418 $ — $ 600,791 3 % $ 64 2 840,685 — — 2,815 37 843,537 4 261 3 730,939 639,378 — 218,170 82 1,588,569 8 242 4 909,454 456,311 — 543,486 121 1,909,372 9 594 5 1,879,972 257,625 36,620 689,740 8,334 2,872,291 14 8,677 6 1,578,359 450,207 90,297 604,757 36,743 2,760,363 14 8,269 7 2,390,220 98,832 52,927 505,988 16,990 3,064,957 15 15,154 8 1,202,328 84,915 4,068 235,595 15,487 1,542,393 7 20,265 9 1,974,390 105,098 45,117 978,148 75,336 3,178,089 15 20,617 10 459,567 — 18,536 45,560 4,266 527,929 3 9,156 11 283,724 — — 52,546 396 336,666 2 8,033 12 275,015 — — 100,868 5,759 381,642 2 6,636 13 288,183 — 5,786 58,840 73 352,882 2 10,711 14,15,16 181,927 — — 9,986 796 192,709 1 17,596 Collectively evaluated for impairment 13,595,136 2,092,366 253,351 4,046,917 164,420 20,152,190 99 126,275 Individually evaluated for impairment 50,613 — 2,936 2,008 495 56,052 — 6,028 Purchased credit-impaired loans 49,743 — — 19,573 3,623 72,939 1 1,926 Total commercial loans $ 13,695,492 $ 2,092,366 $ 256,287 $ 4,068,498 $ 168,538 $ 20,281,181 100 % $ 134,229 (a) Balances presented net of a $20.5 million valuation allowance. Based on the underlying structure of the notes, the highest possible internal grade was “ 13 ” prior to second quarter 2018. In second quarter 2018, this portfolio was re-graded to align with the scorecard grading methodologies which resulted in upgrades to a majority of this portfolio. In 3Q18, FHN sold $55.5 million of TRUPs loans with a $5.0 million valuation allowance. Upon sale, a gain of $3.8 million was recognized in the Non-Strategic segment within Fixed Income in the Consolidated Condensed Statement of Income. December 31, 2017 (Dollars in thousands) General C&I Loans to Mortgage Companies TRUPs (a) Income CRE Residential CRE Total Percentage of Total Allowance for Loan Losses PD Grade: 1 $ 536,244 $ — $ — $ 2,500 $ — $ 538,744 3 % $ 70 2 877,635 — — 1,798 69 879,502 4 339 3 582,224 652,982 — 210,073 40 1,445,319 7 272 4 959,581 629,432 — 309,699 — 1,898,712 9 854 5 1,461,632 328,477 — 415,764 2,474 2,208,347 11 7,355 6 1,668,247 335,169 — 456,706 3,179 2,463,301 12 10,495 7 2,257,400 47,720 — 554,590 9,720 2,869,430 14 13,490 8 1,092,994 35,266 — 241,938 6,454 1,376,652 7 21,831 9 2,633,854 70,915 — 1,630,176 61,475 4,396,420 22 9,804 10 373,537 — — 43,297 4,590 421,424 2 8,808 11 226,382 — — 31,785 2,936 261,103 1 6,784 12 409,838 — — 156,717 6,811 573,366 3 5,882 13 202,613 — 303,848 15,707 268 522,436 3 7,265 14,15,16 228,852 — — 6,587 823 236,262 1 24,400 Collectively evaluated for impairment 13,511,033 2,099,961 303,848 4,077,337 98,839 20,091,018 99 117,649 Individually evaluated for impairment 39,957 — 3,067 1,612 795 45,431 — 6,176 Purchased credit-impaired loans 99,407 — — 31,615 4,497 135,519 1 2,813 Total commercial loans $ 13,650,397 $ 2,099,961 $ 306,915 $ 4,110,564 $ 104,131 $ 20,271,968 100 % $ 126,638 (a) Balances presented net of a $25.5 million valuation allowance. Based on the underlying structure of the notes, the highest possible internal grade was “ 13 ” prior to second quarter 2018. In second quarter 2018, this portfolio was re-graded to align with the scorecard grading methodologies which resulted in upgrades to a majority of this portfolio. The consumer portfolio is comprised primarily of smaller-balance loans which are very similar in nature in that most are standard products and are backed by residential real estate. Because of the similarities of consumer loan-types, FHN is able to utilize the Fair Isaac Corporation (“FICO”) score, among other attributes, to assess the credit quality of consumer borrowers. FICO scores are refreshed on a quarterly basis in an attempt to reflect the recent risk profile of the borrowers. Accruing delinquency amounts are indicators of asset quality within the credit card and other consumer portfolio. The following table reflects the percentage of balances outstanding by average, refreshed FICO scores for the HELOC, real estate installment, and permanent mortgage classes of loans as of September 30, 2018 and December 31, 2017 : September 30, 2018 December 31, 2017 HELOC R/E Installment Loans Permanent Mortgage HELOC R/E Installment Loans Permanent Mortgage FICO score 740 or greater 60.8 % 71.1 % 51.2 % 60.0 % 73.1 % 46.4 % FICO score 720-739 8.5 9.0 8.5 8.7 8.0 12.8 FICO score 700-719 8.1 6.6 9.0 8.3 6.4 9.2 FICO score 660-699 10.9 8.0 15.9 11.1 7.2 14.8 FICO score 620-659 5.2 2.8 6.5 4.9 2.8 7.3 FICO score less than 620 (a) 6.5 2.5 8.9 7.0 2.5 9.5 Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % (a) For this group, a majority of the loan balances had FICO scores at the time of the origination that exceeded 620 but have since deteriorated as the loans have seasoned. Nonaccrual and Past Due Loans The following table reflects accruing and non-accruing loans by class on September 30, 2018 : Accruing Non-Accruing (Dollars in thousands) Current 30-89 Days Past Due 90+ Days Past Due Total Accruing Current 30-89 Days Past Due 90+ Days Past Due Total Non- Accruing Total Loans Commercial (C&I): General C&I $ 13,597,235 $ 9,202 $ 124 $ 13,606,561 $ 25,713 $ 1,284 $ 12,191 $ 39,188 $ 13,645,749 Loans to mortgage companies 2,092,366 — — 2,092,366 — — — — 2,092,366 TRUPs (a) 253,351 — — 253,351 — — 2,936 2,936 256,287 Purchased credit-impaired loans 35,784 384 13,575 49,743 — — — — 49,743 Total commercial (C&I) 15,978,736 9,586 13,699 16,002,021 25,713 1,284 15,127 42,124 16,044,145 Commercial real estate: Income CRE 4,041,797 6,652 — 4,048,449 35 37 404 476 4,048,925 Residential CRE 164,338 47 — 164,385 35 — 495 530 164,915 Purchased credit-impaired loans 21,373 1,718 105 23,196 — — — — 23,196 Total commercial real estate 4,227,508 8,417 105 4,236,030 70 37 899 1,006 4,237,036 Consumer real estate: HELOC 1,495,298 14,582 8,531 1,518,411 48,400 4,038 7,611 60,049 1,578,460 R/E installment loans 4,541,642 8,589 8,008 4,558,239 15,219 2,239 2,692 20,150 4,578,389 Purchased credit-impaired loans 28,475 2,183 3,676 34,334 — — — — 34,334 Total consumer real estate 6,065,415 25,354 20,215 6,110,984 63,619 6,277 10,303 80,199 6,191,183 Permanent mortgage 315,746 4,051 4,935 324,732 12,217 749 9,356 22,322 347,054 Credit card & other: Credit card 193,681 1,292 1,078 196,051 — — — — 196,051 Other 326,672 4,078 718 331,468 93 78 535 706 332,174 Purchased credit-impaired loans 1,007 835 729 2,571 — — — — 2,571 Total credit card & other 521,360 6,205 2,525 530,090 93 78 535 706 530,796 Total loans, net of unearned income $ 27,108,765 $ 53,613 $ 41,479 $ 27,203,857 $ 101,712 $ 8,425 $ 36,220 $ 146,357 $ 27,350,214 (a) TRUPs is presented net of the valuation allowance of $20.5 million . The following table reflects accruing and non-accruing loans by class on December 31, 2017 : Accruing Non-Accruing (Dollars in thousands) Current 30-89 Days Past Due 90+ Days Past Due Total Accruing Current 30-89 Days Past Due 90+ Days Past Due Total Non- Accruing Total Loans Commercial (C&I): General C&I $ 13,514,752 $ 8,057 $ 95 $ 13,522,904 $ 1,761 $ 7,019 $ 19,306 $ 28,086 $ 13,550,990 Loans to mortgage companies 2,099,961 — — 2,099,961 — — — — 2,099,961 TRUPs (a) 303,848 — — 303,848 — — 3,067 3,067 306,915 Purchased credit-impaired loans 77,843 2,207 19,357 99,407 — — — — 99,407 Total commercial (C&I) 15,996,404 10,264 19,452 16,026,120 1,761 7,019 22,373 31,153 16,057,273 Commercial real estate: Income CRE 4,077,106 1,240 — 4,078,346 56 — 546 602 4,078,948 Residential CRE 98,844 — — 98,844 — — 791 791 99,635 Purchased credit-impaired loans 31,173 2,686 2,253 36,112 — — — — 36,112 Total commercial real estate 4,207,123 3,926 2,253 4,213,302 56 — 1,337 1,393 4,214,695 Consumer real estate: HELOC 1,743,776 17,744 9,702 1,771,222 40,508 3,626 8,354 52,488 1,823,710 R/E installment loans 4,475,669 7,274 3,573 4,486,516 14,439 1,957 2,603 18,999 4,505,515 Purchased credit-impaired loans 35,356 2,016 1,158 38,530 — — — — 38,530 Total consumer real estate 6,254,801 27,034 14,433 6,296,268 54,947 5,583 10,957 71,487 6,367,755 Permanent mortgage 365,527 3,930 3,460 372,917 13,245 1,052 12,093 26,390 399,307 Credit card & other: Credit card 193,940 1,371 1,053 196,364 — — — — 196,364 Other 415,070 2,666 103 417,839 31 — 165 196 418,035 Purchased credit-impaired loans 2,993 1,693 814 5,500 — — — — 5,500 Total credit card & other 612,003 5,730 1,970 619,703 31 — 165 196 619,899 Total loans, net of unearned income $ 27,435,858 $ 50,884 $ 41,568 $ 27,528,310 $ 70,040 $ 13,654 $ 46,925 $ 130,619 $ 27,658,929 (a) TRUPs is presented net of the valuation allowance of $25.5 million . Troubled Debt Restructurings As part of FHN’s ongoing risk management practices, FHN attempts to work with borrowers when necessary to extend or modify loan terms to better align with their current ability to repay. Extensions and modifications to loans are made in accordance with internal policies and guidelines which conform to regulatory guidance. Each occurrence is unique to the borrower and is evaluated separately. A modification is classified as a TDR if the borrower is experiencing financial difficulty and it is determined that FHN has granted a concession to the borrower. FHN may determine that a borrower is experiencing financial difficulty if the borrower is currently in default on any of its debt, or if it is probable that a borrower may default in the foreseeable future. Many aspects of a borrower’s financial situation are assessed when determining whether they are experiencing financial difficulty. Concessions could include extension of the maturity date, reductions of the interest rate (which may make the rate lower than current market for a new loan with similar risk), reduction or forgiveness of accrued interest, or principal forgiveness. The assessments of whether a borrower is experiencing (or is likely to experience) financial difficulty, and whether a concession has been granted, are subjective in nature and management’s judgment is required when determining whether a modification is classified as a TDR. For all classes within the commercial portfolio segment, TDRs are typically modified through forbearance agreements (generally 6 to 12 months ). Forbearance agreements could include reduced interest rates, reduced payments, release of guarantor, or entering into short sale agreements. FHN’s proprietary modification programs for consumer loans are generally structured using parameters of U.S. government-sponsored programs such as the former Home Affordable Modification Program (“HAMP”). Within the HELOC and R/E installment loans classes of the consumer portfolio segment, TDRs are typically modified by reducing the interest rate (in increments of 25 basis points to a minimum of 1 percent for up to 5 years ) and a possible maturity date extension to reach an affordable housing debt-to-income ratio. After 5 years , the interest rate generally returns to the original interest rate prior to modification; for certain modifications, the modified interest rate increases 2 percent per year until the original interest rate prior to modification is achieved. Permanent mortgage TDRs are typically modified by reducing the interest rate (in increments of 25 basis points to a minimum of 2 percent for up to 5 years ) and a possible maturity date extension to reach an affordable housing debt-to-income ratio. After 5 years , the interest rate steps up 1 percent every year until it reaches the Federal Home Loan Mortgage Corporation Weekly Survey Rate cap. Contractual maturities may be extended to 40 years on permanent mortgages and to 30 years for consumer real estate loans. Within the credit card class of the consumer portfolio segment, TDRs are typically modified through either a short-term credit card hardship program or a longer-term credit card workout program. In the credit card hardship program, borrowers may be granted rate and payment reductions for 6 months to 1 year . In the credit card workout program, customers are granted a rate reduction to 0 percent and term extensions for up to 5 years to pay off the remaining balance. Despite the absence of a loan modification, the discharge of personal liability through bankruptcy proceedings is considered a concession. As a result, FHN classifies all non-reaffirmed residential real estate loans discharged in Chapter 7 bankruptcy as nonaccruing TDRs. On September 30, 2018 and December 31, 2017 , FHN had $236.5 million and $234.4 million of portfolio loans classified as TDRs, respectively. For TDRs in the loan portfolio, FHN had loan loss reserves of $28.4 million , or 12 percent as of September 30, 2018 , and $37.3 million , or 16 percent as of December 31, 2017 . Additionally, $57.9 million and $63.2 million of loans held-for-sale as of September 30, 2018 and December 31, 2017 , respectively, were classified as TDRs. The following tables reflect portfolio loans that were classified as TDRs during the three and nine months ended September 30, 2018 and 2017 : Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 (Dollars in thousands) Number Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial (C&I): General C&I 1 $ 25,591 $ 25,439 9 $ 27,639 $ 27,190 Total commercial (C&I) 1 25,591 25,439 9 27,639 27,190 Commercial real estate: Income CRE 1 442 442 4 643 637 Total commercial real estate 1 442 442 4 643 637 Consumer real estate: HELOC 15 1,057 1,041 79 7,641 7,580 R/E installment loans 62 4,561 4,356 77 5,944 5,738 Total consumer real estate 77 5,618 5,397 156 13,585 13,318 Permanent mortgage — — — 5 709 713 Credit card & other 12 65 59 80 370 350 Total troubled debt restructurings 91 $ 31,716 $ 31,337 254 $ 42,946 $ 42,208 Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 (Dollars in thousands) Number Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial (C&I): General C&I — $ — $ — 2 $ 842 $ 836 Total commercial (C&I) — — — 2 842 836 Consumer real estate: HELOC 45 4,451 4,396 107 9,333 9,139 R/E installment loans 15 1,630 1,622 43 3,386 3,306 Total consumer real estate 60 6,081 6,018 150 12,719 12,445 Permanent mortgage 2 34 32 11 2,043 2,028 Credit card & other 37 261 251 66 426 411 Total troubled debt restructurings 99 $ 6,376 $ 6,301 229 $ 16,030 $ 15,720 The following tables present TDRs which re-defaulted during the three and nine months ended September 30, 2018 and 2017 , and as to which the modification occurred 12 months or less prior to the re-default. For purposes of this disclosure, FHN generally defines payment default as 30 or more days past due. Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 (Dollars in thousands) Number Recorded Investment Number Recorded Investment Commercial (C&I): General C&I 1 $ 321 2 $ 579 Total commercial (C&I) 1 321 2 579 Consumer real estate: HELOC 1 40 5 204 R/E installment loans — — 1 25 Total consumer real estate 1 40 6 229 Permanent mortgage 3 294 5 699 Credit card & other 13 56 39 212 Total troubled debt restructurings 18 $ 711 52 $ 1,719 Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 (Dollars in thousands) Number Recorded Investment Number Recorded Investment Commercial (C&I): General C&I 1 $ 1,763 4 $ 9,770 Total commercial (C&I) 1 1,763 4 9,770 Commercial Real Estate Income CRE 1 88 1 88 Total Commercial real estate 1 88 1 88 Consumer real estate: HELOC — — 4 685 Total consumer real estate — — 4 685 Permanent mortgage 1 89 2 627 Credit card & other 2 12 5 30 Total troubled debt restructurings 5 $ 1,952 16 $ 11,200 |