Loans | Note 4 – Loans The following table provides the balance of loans by portfolio segment as of March 31, 2016 and 2015, and December 31, 2015: March 31 December 31 (Dollars in thousands) 2016 2015 2015 Commercial: Commercial, financial, and industrial $ 10,239,183 $ 9,638,355 $ 10,436,390 Commercial real estate 1,848,569 1,320,897 1,674,935 Retail: Consumer real estate (a) 4,690,230 4,922,817 4,766,518 Permanent mortgage 442,791 511,708 454,123 Credit card & other 354,221 338,346 354,536 Loans, net of unearned income $ 17,574,994 $ 16,732,123 $ 17,686,502 Allowance for loan losses 204,034 228,328 210,242 Total net loans $ 17,370,960 $ 16,503,795 $ 17,476,260 Balances as of March 31, 2016 and 2015, and December 31, 2015, include $ 47.8 million , $ 71 . 6 million, and $ 52 .8 million of restricted real estate loans, respectively. See Note 13 - Variable Interest Entities for additional information. C OMPONENTS OF THE LOAN PORTFOLIO T he 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 as sessing 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 (" TRU P S") (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 tempora ry 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 . Retail loan portfolio segments include consumer real e state, permanent mortgage, and the credit card and other portfolio. Retail classes include HELOC , 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 ca rd and other. Concentrations FHN has a concentration of residential real estate loans ( 29 percent of total loans), the majority of which is in the consumer real estate segment ( 27 percent of total loans). Loans to finance and insurance companies total $ 2.2 billion ( 21 percent of the C&I portfolio, or 12 percent of the total loans). FHN had loans to mortgage companies totaling $1. 5 billion ( 1 5 percent of the C&I segment, or 9 percent of total loans) as of March 31 , 2016 . As a result, 36 percent of the C &I segment was sensitive to impacts on the financial services industry. Acquisition On October 2, 2015, FHN completed its acquisition of TAF, and its wholly-owned bank subsidiary TAB. The acquisition included $ 298.1 million in unpaid principal balance of loans with a fair value of $ 281.9 million. Generally, the fair value for the acquired loans is estimated using a discounted cash flow analysis with significant unobservable inputs (Level 3) including adjustments for expected credit losses, prepayment speed s, current market rates for similar loans, and an adjustment for investor-required yield given product-type and various risk characteristics. See Note 2 - Acquisitions and Divestitures for additional information. At acquisition, FHN designate d certain loans as PCI with the remaining loans accounted for under ASC 310-20, "Nonrefundable Fees and Other Costs." For loans accounted for under ASC 310-20, the difference between each loan’s book value to TAB 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 three months ended March 31, 2016 and 2015: Three Months Ended March 31 (Dollars in thousands) 2016 2015 Balance, beginning of period $ 8,542 $ 14,714 Accretion (1,151) (3,371) Adjustment for payoffs (1,777) (1,336) Adjustment for charge-offs (663) - Increase in accretable yield (a) 4,007 461 Balance, end of period $ 8,958 $ 10,468 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 March 31, 2016, the ALLL related to PCI loans was $1.1 million compared to $3.1 million at March 31, 2015. The loan loss provision expense for the three months ended March 31, 2016 was not material. There was a loan loss provision credit of $.2 million recognized during the three months ended March 31, 2015. The following table reflects the outstanding principal balance and carrying amounts of the acquired PCI loans as of March 31, 2016 and 2015, and December 31, 2015: March 31, 2016 March 31, 2015 December 31, 2015 (Dollars in thousands) Carrying value Unpaid balance Carrying value Unpaid balance Carrying value Unpaid balance Commercial, financial and industrial $ 12,917 $ 14,953 $ 4,665 $ 5,437 $ 16,063 $ 18,573 Commercial real estate 12,645 16,700 23,013 29,205 19,929 25,504 Consumer real estate 3,491 4,512 1,910 2,897 3,672 4,533 Credit card and other 53 74 9 12 52 76 Total $ 29,106 $ 36,239 $ 29,597 $ 37,551 $ 39,716 $ 48,686 Impaired Loans The following tables provide information at March 31, 2016 and 2015, by class related to individually impaired loans and consumer TDRs. Recorded investment is defined as the amount of the investment in a loan, before valuation allowance but which does reflect any direct write-down of the investment. For purposes of this disclosure, PCI loans and net LOCOM have been excluded. March 31, 2016 Unpaid Average Interest Recorded Principal Related Recorded Income (Dollars in thousands) Investment Balance Allowance Investment Recognized Impaired loans with no related allowance recorded: Commercial: General C&I $ 12,377 $ 19,620 $ - $ 9,224 $ - Income CRE 2,468 9,389 - 2,468 - Total $ 14,845 $ 29,009 $ - $ 11,692 $ - Retail: HELOC (a) $ 11,024 $ 28,514 $ - $ 10,921 $ - R/E installment loans (a) 4,582 5,829 - 4,434 - Permanent mortgage (a) 4,041 6,460 - 4,436 - Total $ 19,647 $ 40,803 $ - $ 19,791 $ - Impaired loans with related allowance recorded: Commercial: General C&I $ 28,781 $ 32,664 $ 8,223 $ 24,921 $ 87 TRUPS 3,307 3,700 925 3,323 - Income CRE 5,106 6,412 383 5,138 20 Residential CRE 1,376 1,844 105 1,397 6 Total $ 38,570 $ 44,620 $ 9,636 $ 34,779 $ 113 Retail: HELOC $ 87,726 $ 90,338 $ 15,678 $ 88,580 $ 487 R/E installment loans 58,796 60,147 15,441 59,971 317 Permanent mortgage 92,833 105,839 16,975 95,232 547 Credit card & other 345 348 146 360 3 Total $ 239,700 $ 256,672 $ 48,240 $ 244,143 $ 1,354 Total commercial $ 53,415 $ 73,629 $ 9,636 $ 46,471 $ 113 Total retail $ 259,347 $ 297,475 $ 48,240 $ 263,934 $ 1,354 Total impaired loans $ 312,762 $ 371,104 $ 57,876 $ 310,405 $ 1,467 All discharged bankruptcy loans are charged down to an estimate of net realizable value and do not carry any allowance. March 31, 2015 Unpaid Average Interest Recorded Principal Related Recorded Income (Dollars in thousands) Investment Balance Allowance Investment Recognized Impaired loans with no related allowance recorded: Commercial: General C&I $ 13,630 $ 16,803 $ - $ 11,594 $ - Income CRE 4,209 11,366 - 6,369 - Residential CRE - - - 574 - Total $ 17,839 $ 28,169 $ - $ 18,537 $ - Retail: HELOC (a) $ 12,600 $ 31,419 $ - $ 12,989 $ - R/E installment loans (a) 4,518 5,827 - 4,669 3 Permanent mortgage (a) 7,205 9,336 - 7,231 - Total $ 24,323 $ 46,582 $ - $ 24,889 $ 3 Impaired loans with related allowance recorded: Commercial: General C&I $ 26,252 $ 30,759 $ 1,709 $ 19,772 $ 253 TRUPS 13,429 13,700 4,310 13,444 - Income CRE 6,695 8,180 502 7,540 30 Residential CRE 1,624 1,991 109 1,497 7 Total $ 48,000 $ 54,630 $ 6,630 $ 42,253 $ 290 Retail: HELOC $ 85,102 $ 87,242 $ 20,513 $ 84,636 $ 448 R/E installment loans 69,391 70,384 21,224 70,124 327 Permanent mortgage 103,633 116,482 17,766 104,917 591 Credit card & other 484 484 228 508 4 Total $ 258,610 $ 274,592 $ 59,731 $ 260,185 $ 1,370 Total commercial $ 65,839 $ 82,799 $ 6,630 $ 60,790 $ 290 Total retail $ 282,933 $ 321,174 $ 59,731 $ 285,074 $ 1,373 Total impaired loans $ 348,772 $ 403,973 $ 66,361 $ 345,864 $ 1,663 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. Each PD grade corresponds to an estimated one-year default probability percentage; a PD 1 has the lowes t expected default probability, and probabilities increase as grades progress down the scale. PD 1 through PD 12 are “pass” grades. P D grades 13-16 correspond to the regulatory-defined categories of special mention (13), substandard (14), doubtful (15), an d 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 certa in commercial loans over $ 500,000 that are graded 13 or worse are reassessed on a quarterly basis. 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 - Al lowance 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 March 31, 2016 and 2015: March 31, 2016 Loans to Allowance General Mortgage Income Residential Percentage for Loan (Dollars in thousands) C&I Companies TRUPS (a) CRE CRE Total of Total Losses PD Grade: 1 $ 595,106 $ - $ - $ 580 $ - $ 595,686 5 % $ 127 2 607,670 - - 10,292 117 618,079 5 324 3 516,275 379,810 - 166,396 - 1,062,481 9 329 4 936,719 366,958 - 180,323 8,283 1,492,283 12 987 5 1,078,567 252,228 - 241,553 3,588 1,575,936 13 6,184 6 1,195,082 350,253 - 326,060 12,608 1,884,003 16 9,711 7 1,370,338 108,550 - 421,650 11,942 1,912,480 15 12,953 8 771,016 38,059 - 215,048 1,902 1,026,025 8 16,815 9 502,867 - - 64,420 1,808 569,095 5 10,571 10 249,608 - - 67,575 16,505 333,688 3 5,286 11 168,079 - - 18,479 2,766 189,324 2 4,895 12 96,442 - - 20,685 3,588 120,715 1 3,588 13 108,610 - 304,527 7,756 614 421,507 3 4,056 14,15,16 184,913 - - 21,232 907 207,052 2 20,629 Collectively evaluated for impairment 8,381,292 1,495,858 304,527 1,762,049 64,628 12,008,354 99 96,455 Individually evaluated for impairment 41,158 - 3,307 7,574 1,376 53,415 1 9,636 Purchased credit-impaired loans 13,041 - - 9,870 3,072 25,983 - 422 Total commercial loans $ 8,435,491 $ 1,495,858 $ 307,834 $ 1,779,493 $ 69,076 $ 12,087,752 100 % $ 106,513 March 31, 2015 Loans to Allowance General Mortgage Income Residential Percentage for Loan (Dollars in thousands) C&I Companies TRUPS (a) CRE CRE Total of Total Losses PD Grade: 1 $ 446,725 $ - $ - $ 605 $ 59 $ 447,389 4 % $ 75 2 550,069 - - 1,896 233 552,198 5 173 3 528,347 276,653 - 63,112 261 868,373 8 228 4 663,213 235,434 - 64,020 229 962,896 9 435 5 1,050,800 384,418 - 253,658 1,840 1,690,716 15 2,743 6 1,111,069 498,752 - 213,787 5,333 1,828,941 17 5,488 7 1,278,125 192,154 - 231,551 14,316 1,716,146 16 9,169 8 735,695 27,813 - 173,744 518 937,770 9 9,786 9 474,912 26,448 - 131,893 922 634,175 6 8,642 10 228,176 - - 26,641 165 254,982 2 4,811 11 209,639 - - 27,255 946 237,840 2 5,783 12 93,055 - - 29,205 493 122,753 1 4,103 13 114,775 - 325,382 4,530 1,076 445,763 4 4,989 14,15,16 129,146 - - 31,015 3,641 163,802 1 19,657 Collectively evaluated for impairment 7,613,746 1,641,672 325,382 1,252,912 30,032 10,863,744 99 76,082 Individually evaluated for impairment 39,882 - 12,815 10,904 1,624 65,225 1 6,630 Purchased credit-impaired loans 4,858 - - 23,696 1,729 30,283 - 2,605 Total commercial loans $ 7,658,486 $ 1,641,672 $ 338,197 $ 1,287,512 $ 33,385 $ 10,959,252 100 % $ 85,317 Balances as of March 31 , 2016 and 2015 , presented net of $ 25.5 million and $ 26.2 million, respectively, in lower of cost or market (“LOCOM”) valuation allowance. Based on the underlying structure of the notes, the highest possible internal grade is " 13 ". The retail 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 retail loan-types, FHN is able to utili ze 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 retail portfolio. The following tables reflect period end balances and average FICO scores by origination vintage for the HELOC, real estate installment, and permanent mortgage classes of loans as of March 31, 2016 and 2015: HELOC March 31, 2016 March 31, 2015 Average Average Average Average (Dollars in thousands) Period End Origination Refreshed Period End Origination Refreshed Origination Vintage Balance FICO FICO Balance FICO FICO pre-2003 $ 35,875 708 704 $ 51,626 707 700 2003 67,315 718 711 95,043 721 707 2004 184,785 721 710 258,974 723 707 2005 276,596 728 711 421,315 731 720 2006 246,861 737 725 321,702 739 726 2007 286,148 744 730 342,531 744 728 2008 164,166 753 748 188,111 753 748 2009 80,993 751 745 97,279 751 742 2010 76,987 753 746 92,777 753 749 2011 74,531 759 750 92,484 758 753 2012 91,976 759 758 112,955 760 758 2013 117,405 756 756 142,772 757 756 2014 107,725 761 763 121,991 762 763 2015 151,444 761 760 25,250 759 756 2016 26,273 764 760 - - - Total $ 1,989,080 743 734 $ 2,364,810 742 732 R/E Installment Loans March 31, 2016 March 31, 2015 Average Average Average Average (Dollars in thousands) Period End Origination Refreshed Period End Origination Refreshed Origination Vintage Balance FICO FICO Balance FICO FICO pre-2003 $ 6,145 673 690 $ 11,786 679 687 2003 27,457 709 720 44,729 713 721 2004 27,004 697 694 37,944 699 695 2005 84,140 714 709 115,702 715 710 2006 93,146 711 704 126,225 712 702 2007 143,754 722 709 187,510 722 707 2008 48,829 718 719 60,538 718 712 2009 20,564 733 732 26,812 737 727 2010 72,595 750 755 95,017 747 756 2011 216,423 761 758 267,079 760 759 2012 491,925 764 765 586,729 764 765 2013 402,530 755 759 460,196 756 758 2014 403,306 756 760 450,765 756 754 2015 557,931 758 757 86,975 757 758 2016 105,401 763 762 - - - Total $ 2,701,150 751 751 $ 2,558,007 749 747 Permanent Mortgage March 31, 2016 March 31, 2015 Average Average Average Average (Dollars in thousands) Period End Origination Refreshed Period End Origination Refreshed Origination Vintage Balance FICO FICO Balance FICO FICO pre-2004 $ 105,876 721 719 $ 136,848 723 718 2004 12,211 709 701 16,484 712 715 2005 27,317 738 732 32,563 736 732 2006 47,704 732 734 59,636 732 726 2007 157,235 733 713 183,359 733 719 2008 74,962 741 717 82,818 741 712 2016 17,486 721 721 - - - Total $ 442,791 730 718 $ 511,708 730 717 Nonaccrual and Past Due Loans The following table reflects accruing and non-accruing loans by class on March 31, 2016: Accruing Non-Accruing 30-89 90+ 30-89 90+ Total Days Days Total Days Days Non- Total (Dollars in thousands) Current Past Due Past Due Accruing Current Past Due Past Due Accruing Loans Commercial (C&I): General C&I $ 8,356,560 $ 30,463 $ 314 $ 8,387,337 $ 16,702 $ 557 $ 17,854 $ 35,113 $ 8,422,450 Loans to mortgage companies 1,489,354 6,411 - 1,495,765 - - 93 93 1,495,858 TRUPS (a) 304,527 - - 304,527 - - 3,307 3,307 307,834 Purchased credit-impaired loans 12,784 - 257 13,041 - - - - 13,041 Total commercial (C&I) 10,163,225 36,874 571 10,200,670 16,702 557 21,254 38,513 10,239,183 Commercial real estate: Income CRE 1,759,601 1,188 105 1,760,894 3,047 64 5,618 8,729 1,769,623 Residential CRE 65,261 - - 65,261 - - 743 743 66,004 Purchased credit-impaired loans 10,828 1,673 441 12,942 - - - - 12,942 Total commercial real estate 1,835,690 2,861 546 1,839,097 3,047 64 6,361 9,472 1,848,569 Consumer real estate: HELOC 1,882,664 18,447 8,170 1,909,281 63,021 5,542 11,236 79,799 1,989,080 R/E installment loans 2,651,317 9,103 2,298 2,662,718 26,223 2,856 5,136 34,215 2,696,933 Purchased credit-impaired loans 3,984 233 - 4,217 - - - - 4,217 Total consumer real estate 4,537,965 27,783 10,468 4,576,216 89,244 8,398 16,372 114,014 4,690,230 Permanent mortgage 401,496 5,117 5,938 412,551 12,039 4,192 14,009 30,240 442,791 Credit card & other Credit card 185,652 1,463 1,396 188,511 - - - - 188,511 Other 163,156 962 192 164,310 613 - 733 1,346 165,656 Purchased credit-impaired loans 54 - - 54 - - - - 54 Total credit card & other 348,862 2,425 1,588 352,875 613 - 733 1,346 354,221 Total loans, net of unearned income $ 17,287,238 $ 75,060 $ 19,111 $ 17,381,409 $ 121,645 $ 13,211 $ 58,729 $ 193,585 $ 17,574,994 Total TRUPS i nclude s LOCOM valuation allowance of $ 25.5 million. The following table reflects accruing and non-accruing loans by class on March 31, 2015: Accruing Non-Accruing 30-89 90+ 30-89 90+ Total Days Days Total Days Days Non- Total (Dollars in thousands) Current Past Due Past Due Accruing Current Past Due Past Due Accruing Loans Commercial (C&I): General C&I $ 7,627,209 $ 5,291 $ 251 $ 7,632,751 $ 1,441 $ 10,445 $ 8,991 $ 20,877 $ 7,653,628 Loans to mortgage companies 1,640,638 915 - 1,641,553 - - 119 119 1,641,672 TRUPS (a) 325,382 - - 325,382 - - 12,815 12,815 338,197 Purchased credit-impaired loans 4,192 - 666 4,858 - - - - 4,858 Total commercial (C&I) 9,597,421 6,206 917 9,604,544 1,441 10,445 21,925 33,811 9,638,355 Commercial real estate: Income CRE 1,249,793 687 - 1,250,480 1,454 2,817 9,065 13,336 1,263,816 Residential CRE 31,591 65 - 31,656 - - - - 31,656 Purchased credit-impaired loans 21,817 - 3,608 25,425 - - - - 25,425 Total commercial real estate 1,303,201 752 3,608 1,307,561 1,454 2,817 9,065 13,336 1,320,897 Consumer real estate: HELOC 2,250,415 20,698 10,362 2,281,475 66,743 5,075 11,517 83,335 2,364,810 R/E installment loans 2,502,363 11,975 5,204 2,519,542 27,748 2,576 5,741 36,065 2,555,607 Purchased credit-impaired loans 2,308 4 88 2,400 - - - - 2,400 Total consumer real estate 4,755,086 32,677 15,654 4,803,417 94,491 7,651 17,258 119,400 4,922,817 Permanent mortgage 464,677 8,019 6,085 478,781 16,710 2,752 13,465 32,927 511,708 Credit card & other Credit card 177,042 1,467 1,440 179,949 - - - - 179,949 Other 156,478 916 239 157,633 - - 755 755 158,388 Purchased credit-impaired loans 9 - - 9 - - - - 9 Total credit card & other 333,529 2,383 1,679 337,591 - - 755 755 338,346 Total loans, net of unearned income $ 16,453,914 $ 50,037 $ 27,943 $ 16,531,894 $ 114,096 $ 23,665 $ 62,468 $ 200,229 $ 16,732,123 Total TRUPS i nclu des LOCOM valuation allowance of $ 26.2 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 fin ancial 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 borrowe r 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 ) , reductio n 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 re duced 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 Home Af fordable 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 ratio. After 5 years, the interest rate will increase 2 percent per year until the original interest rate prior to modification is achieved. Permanent mortgage TDRs are typic ally 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 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 co nsumer 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 mon ths 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 classifie s all non-reaffirmed residential real estate loans discharged in Chapter 7 bankruptcy as nonaccruing TDRs . On March 31 , 2016 and 2015 , FHN had $ 289.0 million and $ 3 17 . 8 million portfolio loans classified as TDRs, respectively. For TDRs in the loan portfolio, FHN had loan loss reserves of $ 54.6 million and $ 62 . 1 million, or 19 percent as of March 31 , 2016 , and 20 percent as of March 31 , 2015 . Additionally, $ 76.4 million and $ 78 . 0 million of loans held-for-sale as of March 31 , 2016 and 2015 , respectively were classified as TDRs. The following tables reflect portfolio loans that were classified as TDRs during the three months ended March 31, 2016 and 2015: 2016 2015 Pre-Modification Post-Modification Pre-Modification Post-Modification Outstanding Outstanding Outstanding Outstanding (Dollars in thousands) Number Recorded Investment Recorded Investment Number Recorded Investment Recorded Investment Commercial (C&I): General C&I 1 $ 708 $ 708 2 $ 1,388 $ 1,325 Total commercial (C&I) 1 708 708 2 1,388 1,325 Consumer real estate: HELOC 99 7,440 7,370 37 3,727 3,707 R/E installment loans 15 898 895 16 1,354 1,377 Total consumer real estate 114 8,338 8,265 53 5,081 5,084 Permanent mortgage - - - 2 321 321 Credit card & other 4 19 18 6 28 27 Total troubled debt restructurings 119 $ 9,065 $ 8,991 63 $ 6,818 $ 6,757 The following tables present TDRs which re-defaulted during the three months ended March 31, 2016 and 2015, 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. 2016 2015 Recorded Recorded (Dollars in thousands) Number Investment Number Investment Consumer real estate: HELOC 1 36 1 30 R/E installment loans - - 1 86 Total consumer real estate 1 36 2 116 Credit card & other - - 1 3 Total troubled debt restructurings 1 $ 36 3 $ 119 |