Loans | Loans The following table provides the balance of loans, net of unearned income, by portfolio segment as of December 31, 2019 and 2018 : December 31 (Dollars in thousands) 2019 2018 Commercial: (a) Commercial, financial, and industrial $ 20,051,091 $ 16,514,328 Commercial real estate 4,337,017 4,030,870 Consumer: Consumer real estate (b) 6,006,749 6,249,516 Permanent mortgage 170,390 222,448 Credit card & other 495,864 518,370 Loans, net of unearned income $ 31,061,111 $ 27,535,532 Allowance for loan losses 200,307 180,424 Total net loans $ 30,860,804 $ 27,355,108 (a) In third quarter 2019, FHN corrected a previous mis-classification of commercial loans and reclassified approximately $410 million of market investor CRE loans from the C&I portfolio to the CRE portfolio. These loans were identified during an internal review and assessment by management of certain loan populations, a portion of which relate to loans acquired as part of the Capital Bank merger. The reclassification of these loan balances between regional banking portfolios did not have an impact on FHN’s consolidated period-end or average balance sheet and had an immaterial effect on the allowance for loan losses. No adjustments were made to prior periods as the impact of the reclassification, including the effect on the allowance for loan losses was deemed to be immaterial in all periods. (b) Balance as of December 31, 2018 includes $16.2 million of restricted real estate loans. See Note 21—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 ("CRE"). 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 ( 20 percent of total loans), the majority of which is in the consumer real estate segment ( 19 percent of total loans). Loans to finance and insurance companies total $2.8 billion ( 14 percent of the C&I portfolio, or 9 percent of the total loans). FHN had loans to mortgage companies totaling $4.4 billion ( 22 percent of the C&I segment, or 14 percent of total loans) as of December 31, 2019 . As a result, 36 percent of the C&I segment is sensitive to impacts on the financial services industry. Restrictions On December 31, 2019, $5.2 billion of commercial loans were pledged to secure potential discount window borrowings from the Federal Reserve Bank. As of December 31, 2019 and 2018, FHN pledged all of its first and second lien mortgages, HELOCs, excluding restricted real estate loans, and commercial real estate loans to secure potential borrowings from the FHLB-Cincinnati. Restricted loans secured borrowings associated with consolidated VIEs. See Note 21 - Variable Interest Entities for additional discussion. Acquisition Generally, the fair value for acquired loans is estimated using a discounted cash flow analysis with significant unobservable inputs (Level 3) including adjustments for expected credit losses, prepayment speeds, current market rates for similar loans, and an adjustment for investor-required yield given product-type and various risk characteristics. At acquisition, FHN designated certain loans as PCI with the remaining loans accounted for under ASC 310-20, “Nonrefundable Fees and Other Costs”. Of the loans designated as PCI at acquisition, $4.7 million is held-for-sale. For loans accounted for under ASC 310-20, the difference between each loan’s book value and the estimated fair value at the time of the acquisition will be accreted into interest income over its remaining contractual life and the subsequent accounting and reporting will be similar to a loan in FHN’s originated portfolio. Purchased Credit-Impaired Loans The following table presents a rollforward of the accretable yield for the year ended December 31, 2019 and 2018 : Year Ended December 31 (Dollars in thousands) 2019 2018 Balance, beginning of period $ 13,375 $ 15,623 Accretion (5,792 ) (9,467 ) Adjustment for payoffs (2,438 ) (3,896 ) Adjustment for charge-offs (479 ) (1,115 ) Adjustment for pool excess recovery (a) — (123 ) Increase in accretable yield (b) 5,513 12,791 Disposals (4 ) (240 ) Other (367 ) (198 ) Balance, end of period $ 9,808 $ 13,375 (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 of the cash flows. At December 31, 2019 , the ALLL related to PCI loans was $2.0 million compared to $4.0 million at December 31, 2018 . Net charge-offs related to PCI loans during 2019 were $ 5.8 million , compared to $ 6.7 million in 2018. The loan loss provision expense related to PCI loans during 2019 was $1.3 million , compared to $4.8 million during 2018. The following table reflects the outstanding principal balance and carrying amounts of the acquired PCI loans as of December 31, 2019 and 2018 : December 31, 2019 December 31, 2018 (Dollars in thousands) Carrying value Unpaid balance Carrying value Unpaid balance Commercial, financial and industrial $ 24,973 $ 25,938 $ 38,873 $ 44,259 Commercial real estate 5,078 5,466 15,197 17,232 Consumer real estate 23,681 26,245 30,723 34,820 Credit card and other 489 567 1,627 1,879 Total $ 54,221 $ 58,216 $ 86,420 $ 98,190 Impaired Loans The following tables provide information at December 31, 2019 and 2018 , 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. December 31, 2019 (Dollars in thousands) Recorded Unpaid Related Average Recorded Interest Impaired loans with no related allowance recorded: Commercial: General C&I $ 52,672 $ 63,602 $ — $ 61,382 $ 690 Loans to mortgage companies — — — 9,314 — Income CRE 1,563 1,563 — 1,620 33 Total $ 54,235 $ 65,165 $ — $ 72,316 $ 723 Consumer: HELOC (a) $ 4,940 $ 10,438 $ — $ 6,582 $ — R/E installment loans (a) 5,329 6,105 — 5,335 — Permanent mortgage (a) 2,264 3,949 — 3,017 — Total $ 12,533 $ 20,492 $ — $ 14,934 $ — Impaired loans with related allowance recorded: Commercial: General C&I $ 29,766 $ 31,536 $ 6,196 $ 14,328 $ 4 TRUPS — — — 2,445 — Income CRE — — — 221 9 Total $ 29,766 $ 31,536 $ 6,196 $ 16,994 $ 13 Consumer: HELOC $ 55,522 $ 59,122 $ 7,016 $ 61,294 $ 1,868 R/E installment loans 34,862 35,780 4,521 40,181 1,016 Permanent mortgage 59,329 68,341 7,761 63,630 2,149 Credit card & other 653 653 422 694 18 Total $ 150,366 $ 163,896 $ 19,720 $ 165,799 $ 5,051 Total commercial $ 84,001 $ 96,701 $ 6,196 $ 89,310 $ 736 Total consumer $ 162,899 $ 184,388 $ 19,720 $ 180,733 $ 5,051 Total impaired loans $ 246,900 $ 281,089 $ 25,916 $ 270,043 $ 5,787 (a) All discharged bankruptcy loans are charged down to an estimate of net realizable value and do not carry any allowance. December 31, 2018 (Dollars in thousands) Recorded Unpaid Related Average Interest Impaired loans with no related allowance recorded: Commercial: General C&I $ 42,902 $ 45,387 $ — $ 24,186 $ 757 Income CRE 1,589 1,589 — 1,434 51 Residential CRE — — — 374 — Total $ 44,491 $ 46,976 $ — $ 25,994 $ 808 Consumer: HELOC (a) $ 8,645 $ 16,648 $ — $ 8,723 $ — R/E installment loans (a) 4,314 4,796 — 4,300 — Permanent mortgage (a) 3,601 6,003 — 4,392 — Total $ 16,560 $ 27,447 $ — $ 17,415 $ — Impaired loans with related allowance recorded: Commercial: General C&I $ 2,802 $ 2,802 $ 149 $ 16,011 $ — TRUPS 2,888 3,700 925 2,981 — Income CRE 377 377 — 348 10 Residential CRE — — — 99 — Total $ 6,067 $ 6,879 $ 1,074 $ 19,439 $ 10 Consumer: HELOC $ 66,482 $ 69,610 $ 11,241 $ 69,535 $ 2,273 R/E installment loans 38,993 39,851 6,743 40,118 1,024 Permanent mortgage 67,245 78,010 9,419 73,259 2,290 Credit card & other 695 695 337 626 14 Total $ 173,415 $ 188,166 $ 27,740 $ 183,538 $ 5,601 Total commercial $ 50,558 $ 53,855 $ 1,074 $ 45,433 $ 818 Total consumer $ 189,975 $ 215,613 $ 27,740 $ 200,953 $ 5,601 Total impaired loans $ 240,533 $ 269,468 $ 28,814 $ 246,386 $ 6,419 (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 December 31, 2019 and 2018 : December 31, 2019 (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 $ 696,040 $ — $ — $ 1,848 $ — $ 697,888 3 % $ 69 2 767,048 — — 48,906 38 815,992 4 165 3 743,123 877,210 3,314 474,067 806 2,098,520 9 274 4 1,237,772 692,971 46,375 680,223 477 2,657,818 11 738 5 1,986,761 670,402 72,512 993,628 1,700 3,725,003 15 8,265 6 2,511,290 1,410,387 27,263 717,062 17,027 4,683,029 19 12,054 7 2,708,707 509,616 18,378 641,345 30,925 3,908,971 16 20,409 8 1,743,364 136,771 — 269,407 16,699 2,166,241 9 22,514 9 1,101,873 77,139 31,909 169,586 13,007 1,393,514 6 17,484 10 563,635 21,229 18,536 59,592 2,153 665,145 3 10,197 11 495,140 — — 81,682 2,302 579,124 2 13,454 12 262,906 15,158 — 28,807 1,074 307,945 1 8,471 13 232,823 — — 32,966 1,126 266,915 1 8,142 14,15,16 263,076 — — 43,400 626 307,102 1 29,318 Collectively evaluated for impairment 15,313,558 4,410,883 218,287 4,242,519 87,960 24,273,207 100 151,554 Individually evaluated for impairment 82,438 — — 1,563 — 84,001 — 6,196 Purchased credit-impaired loans 25,925 — — 4,155 820 30,900 — 848 Total commercial loans $ 15,421,921 $ 4,410,883 $ 218,287 $ 4,248,237 $ 88,780 $ 24,388,108 100 % $ 158,598 (a) Balances presented net of a $ 19.1 million valuation allowance. December 31, 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 $ 610,177 $ — $ — $ 12,586 $ — $ 622,763 3 % $ 100 2 835,776 — — 1,688 29 837,493 4 274 3 782,362 716,971 — 289,594 147 1,789,074 9 315 4 1,223,092 394,862 43,220 563,243 — 2,224,417 11 686 5 1,920,034 277,814 77,751 798,509 14,150 3,088,258 15 8,919 6 1,722,136 365,341 45,609 657,628 33,759 2,824,473 14 8,141 7 2,690,784 96,603 11,446 538,909 26,135 3,363,877 16 16,906 8 1,337,113 53,224 — 265,901 20,320 1,676,558 8 18,545 9 1,472,852 96,292 45,117 455,184 29,849 2,099,294 10 15,454 10 490,795 13,260 18,536 60,803 3,911 587,305 3 8,675 11 311,967 — — 66,986 788 379,741 2 7,973 12 244,867 9,379 — 82,574 5,717 342,537 2 6,972 13 285,987 — 5,786 55,408 251 347,432 2 10,094 14,15,16 224,853 — — 28,835 837 254,525 1 23,307 Collectively evaluated for impairment 14,152,795 2,023,746 247,465 3,877,848 135,893 20,437,747 100 126,361 Individually evaluated for impairment 45,704 — 2,888 1,966 — 50,558 — 1,074 Purchased credit-impaired loans 41,730 — — 12,730 2,433 56,893 — 2,823 Total commercial loans $ 14,240,229 $ 2,023,746 $ 250,353 $ 3,892,544 $ 138,326 $ 20,545,198 100 % $ 130,258 (a) Balances presented net of a $20.2 million valuation allowance. 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 Statement of Income. An additional TRUPS loan with a principal balance of $3.0 million and a valuation of $.3 million was paid off in fourth quarter 2018. 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 December 31, 2019 and 2018 : December 31, 2019 December 31, 2018 HELOC R/E Installment Loans Permanent Mortgage HELOC R/E Installment Loans Permanent Mortgage FICO score 740 or greater 62.0 % 72.9 % 44.8 % 61.4 % 71.3 % 51.8 % FICO score 720-739 8.6 8.3 9.7 8.5 8.8 7.6 FICO score 700-719 7.6 6.1 12.3 7.6 7.0 10.6 FICO score 660-699 10.8 7.7 16.3 10.9 7.6 14.7 FICO score 620-659 4.7 2.6 9.7 5.1 2.8 6.5 FICO score less than 620 (a) 6.3 2.4 7.2 6.5 2.5 8.8 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 December 31, 2019 : 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 $ 15,314,292 $ 7,155 $ 237 $ 15,321,684 $ 36,564 $ 14,385 $ 23,363 $ 74,312 $ 15,395,996 Loans to mortgage companies 4,410,883 — — 4,410,883 — — — — 4,410,883 TRUPS (a) 218,287 — — 218,287 — — — — 218,287 Purchased credit-impaired loans 23,840 287 1,798 25,925 — — — — 25,925 Total commercial (C&I) 19,967,302 7,442 2,035 19,976,779 36,564 14,385 23,363 74,312 20,051,091 Commercial real estate: Income CRE 4,242,044 679 — 4,242,723 — 19 1,340 1,359 4,244,082 Residential CRE 87,487 7 — 87,494 — 466 — 466 87,960 Purchased credit-impaired loans 4,752 128 95 4,975 — — — — 4,975 Total commercial real estate 4,334,283 814 95 4,335,192 — 485 1,340 1,825 4,337,017 Consumer real estate: HELOC 1,217,344 9,156 5,669 1,232,169 43,007 4,227 7,472 54,706 1,286,875 R/E installment loans 4,662,783 10,580 5,138 4,678,501 13,001 1,005 2,601 16,607 4,695,108 Purchased credit-impaired loans 18,720 2,770 3,276 24,766 — — — — 24,766 Total consumer real estate 5,898,847 22,506 14,083 5,935,436 56,008 5,232 10,073 71,313 6,006,749 Permanent mortgage 149,663 2,314 4,032 156,009 7,709 71 6,601 14,381 170,390 Credit card & other: Credit card 198,917 1,076 1,178 201,171 — — — — 201,171 Other 291,700 1,802 337 293,839 101 44 189 334 294,173 Purchased credit-impaired loans 323 98 99 520 — — — — 520 Total credit card & other 490,940 2,976 1,614 495,530 101 44 189 334 495,864 Total loans, net of unearned income $ 30,841,035 $ 36,052 $ 21,859 $ 30,898,946 $ 100,382 $ 20,217 $ 41,566 $ 162,165 $ 31,061,111 (a) TRUPS is presented net of the valuation allowance of $ 19.1 million . The following table reflects accruing and non-accruing loans by class on December 31, 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 $ 14,153,275 $ 8,234 $ 102 $ 14,161,611 $ 26,325 $ 5,537 $ 5,026 $ 36,888 $ 14,198,499 Loans to mortgage companies 2,023,746 — — 2,023,746 — — — — 2,023,746 TRUPS (a) 247,465 — — 247,465 — — 2,888 2,888 250,353 Purchased credit-impaired loans 39,433 624 1,673 41,730 — — — — 41,730 Total commercial (C&I) 16,463,919 8,858 1,775 16,474,552 26,325 5,537 7,914 39,776 16,514,328 Commercial real estate: Income CRE 3,876,229 626 — 3,876,855 30 — 2,929 2,959 3,879,814 Residential CRE 135,861 — — 135,861 32 — — 32 135,893 Purchased credit-impaired loans 13,308 103 1,752 15,163 — — — — 15,163 Total commercial real estate 4,025,398 729 1,752 4,027,879 62 — 2,929 2,991 4,030,870 Consumer real estate: HELOC 1,443,651 11,653 10,129 1,465,433 49,009 3,314 8,781 61,104 1,526,537 R/E installment loans 4,652,658 10,470 6,497 4,669,625 15,146 1,924 4,474 21,544 4,691,169 Purchased credit-impaired loans 24,096 2,094 5,620 31,810 — — — — 31,810 Total consumer real estate 6,120,405 24,217 22,246 6,166,868 64,155 5,238 13,255 82,648 6,249,516 Permanent mortgage 193,591 2,585 4,562 200,738 11,227 996 9,487 21,710 222,448 Credit card & other: Credit card 188,009 2,133 1,203 191,345 — — — — 191,345 Other 320,551 3,570 526 324,647 110 60 454 624 325,271 Purchased credit-impaired loans 746 611 397 1,754 — — — — 1,754 Total credit card & other 509,306 6,314 2,126 517,746 110 60 454 624 518,370 Total loans, net of unearned income $ 27,312,619 $ 42,703 $ 32,461 $ 27,387,783 $ 101,879 $ 11,831 $ 34,039 $ 147,749 $ 27,535,532 (a) TRUPS is presented net of the valuation allowance of $20.2 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 December 31, 2019 and 2018 , FHN had $206.3 million and $228.2 million of portfolio loans classified as TDRs, respectively. For TDRs in the loan portfolio, FHN had loan loss reserves of $19.7 million , or 10 percent as of December 31, 2019 , and $27.7 million , or 12 percent as of December 31, 2018 . Additionally, $51.1 million and $57.8 million of loans held-for-sale as of December 31, 2019 and 2018 , respectively, were classified as TDRs. The following tables reflect portfolio loans that were classified as TDRs during the year ended December 31, 2019 and 2018 : 2019 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 4 $ 14,179 $ 14,101 9 $ 27,639 $ 27,190 Total commercial (C&I) 4 14,179 14,101 9 27,639 27,190 Commercial real estate: Income CRE — — — 4 643 637 Total commercial real estate — — — 4 643 637 Consumer real estate: HELOC 74 8,028 7,946 103 9,406 9,283 R/E installment loans 96 10,408 10,445 92 8,077 7,848 Total consumer real estate 170 18,436 18,391 195 17,483 17,131 Permanent mortgage 8 1,771 1,798 8 1,001 1,184 Credit card & other 85 379 358 132 604 570 Total troubled debt restructurings 267 $ 34,765 $ 34,648 348 $ 47,370 $ 46,712 The following tables present TDRs which re-defaulted during 2019 and 2018 , 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. 2019 2018 (Dollars in thousands) Number Recorded Investment Number Recorded Investment Commercial (C&I): General C&I — $ — 2 $ 579 Total commercial (C&I) — — 2 579 Consumer real estate: HELOC 7 1,141 6 239 R/E installment loans 3 98 2 146 Total consumer real estate 10 1,239 8 385 Permanent mortgage 1 7 6 749 Credit card & other 32 115 49 239 Total troubled debt restructurings 43 $ 1,361 65 $ 1,952 |