Loans | Note 4 – Loans The following table provides the balance of loans by portfolio segment as of June 30, 2016 and 2015, and December, 31 2015: June 30 December 31 (Dollars in thousands) 2016 2015 2015 Commercial: Commercial, financial, and industrial $ 11,179,445 $ 9,832,563 $ 10,436,390 Commercial real estate 1,969,412 1,400,715 1,674,935 Consumer: Consumer real estate (a) 4,640,779 4,870,271 4,766,518 Permanent mortgage 439,014 487,679 454,123 Credit card & other 360,687 345,544 354,536 Loans, net of unearned income $ 18,589,337 $ 16,936,772 $ 17,686,502 Allowance for loan losses 199,807 221,351 210,242 Total net loans $ 18,389,530 $ 16,715,421 $ 17,476,260 Balances as of June 3 0 , 2016 and 2015, and December 31, 2015, include $ 43.5 million, $ 66 . 4 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 . Consumer loan portfolio segments include consumer real estate, permanent mortgage, and the credit card and other portfolio. Consumer 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 credi t card and other. Concentrations FHN has a concentration of residential real estate loans ( 27 percent of total loans), the majority of which is in the consumer real estate segment ( 25 percent of total loans). Lo ans to finance and insurance companies total $ 2.3 billion ( 20 percent of the C&I portfolio, or 12 percent of the total loans). FHN had loans to mortgage companies totaling $ 2.2 billion ( 20 percent of the C&I segment, or 12 percent of total loans) as of June 30 , 2016 . As a result, 40 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 bal ance 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, prepayme nt speeds, 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 d esignated 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 and six months ended June 30, 2016 and 2015: Three Months Ended Six Months Ended June 30 June 30 (Dollars in thousands) 2016 2015 2016 2015 Balance, beginning of period $ 8,958 $ 10,468 $ 8,542 $ 14,714 Accretion (996) (1,576) (2,147) (4,948) Adjustment for payoffs (2,452) (760) (4,229) (2,096) Adjustment for charge-offs (11) - (674) - Increase in accretable yield (a) 705 216 4,712 678 Other (33) - (33) - Balance, end of period $ 6,171 $ 8,348 $ 6,171 $ 8,348 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 June 30, 2016, the ALLL related to PCI loans was $.8 million compared to $2.8 million at June 30, 2015. A loan loss provision credit of $.4 million was recognized during the three months ended June 30, 2016, as compared to a loan loss provision credit of $.3 million recognized during the three months ended June 30, 2015. A loan loss provision credit of $.3 million was recognized during the six months ended June 30, 2016, as compared to a loan loss provision credit of $.6 million recognized during the six months ended June 30, 2015. The following table reflects the outstanding principal balance and carrying amounts of the acquired PCI loans as of June 30, 2016 and 2015, and December 31, 2015: June 30, 2016 June 30, 2015 December 31, 2015 (Dollars in thousands) Carrying value Unpaid balance Carrying value Unpaid balance Carrying value Unpaid balance Commercial, financial and industrial $ 10,437 $ 12,140 $ 4,870 $ 5,507 $ 16,063 $ 18,573 Commercial real estate 9,428 12,382 20,262 24,830 19,929 25,504 Consumer real estate 1,247 1,800 1,927 2,796 3,672 4,533 Credit card and other 55 72 9 11 52 76 Total $ 21,167 $ 26,394 $ 27,068 $ 33,144 $ 39,716 $ 48,686 Impaired Loans The following tables provide information at June 30, 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. June 30, 2016 Three Months Ended Six Months Ended June 30, 2016 June 30, 2016 Unpaid Average Interest Average Interest Recorded Principal Related Recorded Income Recorded Income (Dollars in thousands) Investment Balance Allowance Investment Recognized Investment Recognized Impaired loans with no related allowance recorded: Commercial: General C&I $ 14,289 $ 22,141 $ - $ 13,333 $ - $ 11,278 $ - Income CRE 2,468 9,389 - 2,468 - 2,468 - Total $ 16,757 $ 31,530 $ - $ 15,801 $ - $ 13,746 $ - Consumer: HELOC (a) $ 11,186 $ 25,367 $ - $ 11,105 $ - $ 11,013 $ - R/E installment loans (a) 4,232 5,411 - 4,407 - 4,420 - Permanent mortgage (a) 4,280 6,657 - 4,161 - 4,298 - Total $ 19,698 $ 37,435 $ - $ 19,673 $ - $ 19,731 $ - Impaired loans with related allowance recorded: Commercial: General C&I $ 33,884 $ 35,585 $ 3,151 $ 31,333 $ 292 $ 28,127 $ 379 TRUPS 3,274 3,700 925 3,291 - 3,307 - Income CRE 4,454 4,796 329 4,780 20 4,959 40 Residential CRE 1,376 1,844 105 1,376 6 1,386 12 Total $ 42,988 $ 45,925 $ 4,510 $ 40,780 $ 318 $ 37,779 $ 431 Consumer: HELOC $ 88,871 $ 91,771 $ 16,375 $ 88,299 $ 494 $ 88,439 $ 981 R/E installment loans 59,050 60,338 15,536 58,923 345 59,447 662 Permanent mortgage 91,602 104,243 15,583 92,218 541 93,725 1,058 Credit card & other 356 356 147 351 3 355 6 Total $ 239,879 $ 256,708 $ 47,641 $ 239,791 $ 1,383 $ 241,966 $ 2,707 Total commercial $ 59,745 $ 77,455 $ 4,510 $ 56,581 $ 318 $ 51,525 $ 431 Total consumer $ 259,577 $ 294,143 $ 47,641 $ 259,464 $ 1,383 $ 261,697 $ 2,707 Total impaired loans $ 319,322 $ 371,598 $ 52,151 $ 316,045 $ 1,701 $ 313,222 $ 3,138 All discharged bankruptcy loans are charged down to an estimate of net realizable value and do not carry any allowance. June 30, 2015 Three Months Ended Six Months Ended June 30, 2015 June 30, 2015 Unpaid Average Interest Average Interest Recorded Principal Related Recorded Income Recorded Income (Dollars in thousands) Investment Balance Allowance Investment Recognized Investment Recognized Impaired loans with no related allowance recorded: Commercial: General C&I $ 12,402 $ 15,690 $ - $ 13,016 $ - $ 12,305 $ - Income CRE 4,187 11,262 - 4,198 - 5,283 - Residential CRE - - - - - 287 - Total $ 16,589 $ 26,952 $ - $ 17,214 $ - $ 17,875 $ - Consumer: HELOC (a) $ 12,577 $ 30,604 $ - $ 12,588 $ - $ 12,788 $ - R/E installment loans (a) 4,959 6,211 - 4,739 - 4,704 - Permanent mortgage (a) 6,403 8,603 - 6,804 - 7,018 - Total $ 23,939 $ 45,418 $ - $ 24,131 $ - $ 24,510 $ - Impaired loans with related allowance recorded: Commercial: General C&I $ 30,549 $ 37,741 $ 8,117 $ 28,400 $ 237 $ 24,087 $ 490 TRUPS 13,399 13,700 4,810 13,414 - 13,429 - Income CRE 6,788 8,298 533 6,742 33 7,140 63 Residential CRE 1,518 1,886 102 1,571 6 1,534 13 Total $ 52,254 $ 61,625 $ 13,562 $ 50,127 $ 276 $ 46,190 $ 566 Consumer: HELOC $ 87,292 $ 89,454 $ 21,967 $ 86,197 $ 461 $ 85,417 $ 909 R/E installment loans 67,269 68,151 19,439 68,330 331 69,227 658 Permanent mortgage 100,754 113,290 17,857 102,194 637 103,555 1,228 Credit card & other 418 418 155 451 4 479 8 Total $ 255,733 $ 271,313 $ 59,418 $ 257,172 $ 1,433 $ 258,678 $ 2,803 Total commercial $ 68,843 $ 88,577 $ 13,562 $ 67,341 $ 276 $ 64,065 $ 566 Total consumer $ 279,672 $ 316,731 $ 59,418 $ 281,303 $ 1,433 $ 283,188 $ 2,803 Total impaired loans $ 348,515 $ 405,308 $ 72,980 $ 348,644 $ 1,709 $ 347,253 $ 3,369 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 June 30, 2016 and 2015: June 30, 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 $ 538,386 $ - $ - $ 949 $ - $ 539,335 4 % $ 109 2 709,997 - - 9,806 115 719,918 5 389 3 425,912 436,545 - 159,880 - 1,022,337 8 261 4 985,360 422,844 - 219,102 211 1,627,517 12 1,076 5 1,094,829 248,926 - 259,861 589 1,604,205 12 6,203 6 1,156,675 837,453 - 290,774 22,028 2,306,930 18 9,654 7 1,399,125 172,039 - 437,637 8,157 2,016,958 15 14,307 8 803,708 46,947 - 303,946 4,330 1,158,931 9 20,979 9 564,474 6,661 - 82,351 4,625 658,111 5 12,885 10 258,486 38,285 - 61,260 14,011 372,042 3 5,637 11 222,391 17,390 - 20,364 4,838 264,983 2 6,971 12 111,980 - - 14,530 4,363 130,873 1 4,337 13 157,028 - 304,527 7,437 302 469,294 4 5,669 14,15,16 157,403 81 - 18,369 1,471 177,324 1 17,758 Collectively evaluated for impairment 8,585,754 2,227,171 304,527 1,886,266 65,040 13,068,758 99 106,235 Individually evaluated for impairment 48,173 - 3,274 6,922 1,376 59,745 1 4,510 Purchased credit-impaired loans 10,546 - - 9,199 609 20,354 - 491 Total commercial loans $ 8,644,473 $ 2,227,171 $ 307,801 $ 1,902,387 $ 67,025 $ 13,148,857 100 % $ 111,236 June 30, 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 $ 495,855 $ - $ - $ 554 $ - $ 496,409 4 % $ 126 2 590,328 - - 11,602 41 601,971 5 332 3 484,072 317,856 - 84,178 181 886,287 8 350 4 670,972 366,791 - 96,689 54 1,134,506 10 868 5 1,135,773 304,500 - 213,213 5,288 1,658,774 15 6,372 6 1,223,233 618,616 - 267,983 4,499 2,114,331 20 10,234 7 1,186,480 139,217 - 365,840 2,844 1,694,381 15 13,203 8 749,504 28,068 - 163,904 272 941,748 8 13,942 9 419,687 24,617 - 43,752 383 488,439 4 7,900 10 222,799 - - 27,840 202 250,841 2 5,147 11 179,139 - - 24,010 1,071 204,220 2 5,438 12 76,209 - - 17,884 543 94,636 1 2,704 13 122,862 - 305,382 3,633 287 432,164 4 4,944 14,15,16 109,820 - - 27,045 2,054 138,919 1 12,829 Collectively evaluated for impairment 7,666,733 1,799,665 305,382 1,348,127 17,719 11,137,626 99 84,389 Individually evaluated for impairment 42,951 - 12,785 10,975 1,518 68,229 1 13,562 Purchased credit-impaired loans 5,047 - - 20,612 1,764 27,423 - 2,291 Total commercial loans $ 7,714,731 $ 1,799,665 $ 318,167 $ 1,379,714 $ 21,001 $ 11,233,278 100 % $ 100,242 Balances as of June 30 , 2016 and 2015 , presented net of $ 25.5 million and $ 26.2 million, respectively, in lower of cost or market (“LOCOM”) valuation adjustment . Based on the underlying structure of the notes , the highest possible internal grade is " 13 ". 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 th e 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 June 30, 2016 and 2015: June 30, 2016 June 30, 2015 HELOC R/E Installment Loans Permanent Mortgage HELOC R/E Installment Loans Permanent Mortgage FICO score greater than or equal to 740 56.3 % 68.9 % 43.8 % 54.7 % 66.6 % 44.2 % FICO score 720-739 8.6 8.8 10.9 9.2 8.5 9.3 FICO score 700-719 9.0 6.8 9.3 9.0 7.4 9.0 FICO score 660-699 13.0 9.0 17.6 13.2 9.6 16.9 FICO score 620-659 6.2 3.7 9.6 6.4 3.9 8.6 FICO score less than 620 (a) 6.9 2.8 8.8 7.5 4.0 12.0 Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % For this group, a majority of the FICO scores at the time of the origination 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 June 30, 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 $ 8,603,288 $ 3,415 $ 75 $ 8,606,778 $ 2,868 $ 2,366 $ 21,915 $ 27,149 $ 8,633,927 Loans to mortgage companies 2,226,841 249 - 2,227,090 - - 81 81 2,227,171 TRUPS (a) 304,527 - - 304,527 - - 3,274 3,274 307,801 Purchased credit-impaired loans 9,651 431 464 10,546 - - - - 10,546 Total commercial (C&I) 11,144,307 4,095 539 11,148,941 2,868 2,366 25,270 30,504 11,179,445 Commercial real estate: Income CRE 1,885,005 1,186 - 1,886,191 2,186 - 4,811 6,997 1,893,188 Residential CRE 65,621 - - 65,621 - - 795 795 66,416 Purchased credit-impaired loans 8,104 311 1,393 9,808 - - - - 9,808 Total commercial real estate 1,958,730 1,497 1,393 1,961,620 2,186 - 5,606 7,792 1,969,412 Consumer real estate: HELOC 1,792,492 18,345 7,927 1,818,764 59,310 5,318 9,826 74,454 1,893,218 R/E installment loans 2,702,710 7,851 2,874 2,713,435 26,206 2,661 3,675 32,542 2,745,977 Purchased credit-impaired loans 1,336 90 158 1,584 - - - - 1,584 Total consumer real estate 4,496,538 26,286 10,959 4,533,783 85,516 7,979 13,501 106,996 4,640,779 Permanent mortgage 398,712 3,719 6,003 408,434 12,985 3,518 14,077 30,580 439,014 Credit card & other: Credit card 189,555 2,116 1,094 192,765 - - - - 192,765 Other 166,052 838 251 167,141 - - 725 725 167,866 Purchased credit-impaired loans 56 - - 56 - - - - 56 Total credit card & other 355,663 2,954 1,345 359,962 - - 725 725 360,687 Total loans, net of unearned income $ 18,353,950 $ 38,551 $ 20,239 $ 18,412,740 $ 103,555 $ 13,863 $ 59,179 $ 176,597 $ 18,589,337 Total TRUPS i nclude s LOCOM valuation adjustment of $25.5 million . The following table reflects accruing and non-accruing loans by class on June 30, 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 $ 7,673,986 $ 4,830 $ 199 $ 7,679,015 $ 13,781 $ 2,536 $ 14,352 $ 30,669 $ 7,709,684 Loans to mortgage companies 1,797,877 1,669 - 1,799,546 - - 119 119 1,799,665 TRUPS (a) 305,382 - - 305,382 - - 12,785 12,785 318,167 Purchased credit-impaired loans 4,153 201 693 5,047 - - - - 5,047 Total commercial (C&I) 9,781,398 6,700 892 9,788,990 13,781 2,536 27,256 43,573 9,832,563 Commercial real estate: Income CRE 1,344,440 2,916 - 1,347,356 1,285 2,041 8,420 11,746 1,359,102 Residential CRE 19,114 123 - 19,237 - - - - 19,237 Purchased credit-impaired loans 22,238 - 138 22,376 - - - - 22,376 Total commercial real estate 1,385,792 3,039 138 1,388,969 1,285 2,041 8,420 11,746 1,400,715 Consumer real estate: HELOC 2,150,344 22,240 9,785 2,182,369 65,345 5,243 9,543 80,131 2,262,500 R/E installment loans 2,557,513 9,172 4,272 2,570,957 27,294 1,873 5,227 34,394 2,605,351 Purchased credit-impaired loans 2,012 4 404 2,420 - - - - 2,420 Total consumer real estate 4,709,869 31,416 14,461 4,755,746 92,639 7,116 14,770 114,525 4,870,271 Permanent mortgage 444,187 5,450 5,569 455,206 15,495 1,981 14,997 32,473 487,679 Credit card & other: Credit card 182,477 1,446 1,284 185,207 - - - - 185,207 Other 158,530 873 177 159,580 - - 749 749 160,329 Purchased credit-impaired loans 8 - - 8 - - - - 8 Total credit card & other 341,015 2,319 1,461 344,795 - - 749 749 345,544 Total loans, net of unearned income $ 16,662,261 $ 48,924 $ 22,521 $ 16,733,706 $ 123,200 $ 13,674 $ 66,192 $ 203,066 $ 16,936,772 Total TRUPS i nclu des LOCOM valuation adjustment 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 financial diffi culty 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 defaul t 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 loa ns are generally structured using parameters of U.S. government-sponsored programs such as Home Affordable Modification Program (“HAMP”). Within the HELOC and R/E installment loans classes of the consumer portfolio segment, TDRs are typically modified by r educing 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 unt il 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 extens ion 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 permanen t 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. I n 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 re maining 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 June 30 , 2016 and 2015 , FHN had $ 299.3 million and $ 310.6 million portfolio loans classified as TDRs, respectively. For TDRs in the loan portfolio, FHN had loan loss reserves of $ 51.2 million and $ 61.0 million, or 17 percent as of June 30 , 2016 , and 20 percent as of June 30 , 2015 . Additionally, $ 73.8 million and $ 80.8 million of loans held-for-sale as of June 30 , 2016 and 2015 , respectively , were classified as TDRs. The following tables reflect portfolio loans that were classified as TDRs during the three and six months ended June 30, 2016 and 2015: Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 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 4 $ 19,175 $ 18,067 5 $ 19,883 $ 18,775 Total commercial (C&I) 4 19,175 18,067 5 19,883 18,775 Consumer real estate: HELOC 53 5,258 5,246 152 12,698 12,616 R/E installment loans 19 3,326 3,614 34 4,224 4,509 Total consumer real estate 72 8,584 8,860 186 16,922 17,125 Permanent mortgage 4 841 840 4 841 840 Credit card & other 1 2 2 5 21 20 Total troubled debt restructurings 81 $ 28,602 $ 27,769 200 $ 37,667 $ 36,760 Three Months Ended June 30, 2015 Six Months Ended June 30, 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 - $ - $ - 2 $ 1,388 $ 1,325 Total commercial (C&I) - - - 2 1,388 1,325 Consumer real estate: HELOC 65 7,237 7,147 102 10,964 10,854 R/E installment loans 22 1,912 1,916 38 3,266 3,293 Total consumer real estate 87 9,149 9,063 140 14,230 14,147 Permanent mortgage 4 1,718 1,733 6 2,039 2,054 Credit card & other 6 20 19 12 48 46 Total troubled debt restructurings 97 $ 10,887 $ 10,815 160 $ 17,705 $ 17,572 The following tables present TDRs which re-defaulted during the three and six months ended June 30, 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. Three Months Ended Six Months Ended June 30, 2016 June 30, 2016 Recorded Recorded (Dollars in thousands) Number Investment Number Investment Commercial real estate: Residential CRE - $ - - $ - Total commercial real estate - - - - Consumer real estate: HELOC 1 102 2 138 R/E installment loans 1 180 1 180 Total consumer real estate 2 282 3 318 Credit card & other - - - - Total troubled debt restructurings 2 $ 282 3 $ 318 Three Months Ended Six Months Ended June 30, 2015 June 30, 2015 Recorded Recorded (Dollars in thousands) Number Investment Number Investment Commercial real estate: Residential CRE 1 $ 896 1 $ 896 Total commercial real estate 1 896 1 896 Consumer real estate: HELOC 6 278 7 308 R/E installment loans 1 26 2 112 Total consumer real estate 7 304 9 420 Credit card & other 2 5 3 8 Total troubled debt restructurings 10 $ 1,205 13 $ 1,324 |