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Loans and Loans Held for Sale | 12 Months Ended
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Dec. 31, 2016
Receivables [Abstract] |
Loans and Loans Held for Sale | LOANS AND LOANS HELD FOR SALE Loans are presented net of unearned income of $5.2 million and $3.2 million at December 31, 2016 and 2015 and net of a discount related to purchase accounting fair value adjustments of $7.1 million and $10.9 million at December 31, 2016 and December 31, 2015. The following table indicates the composition of the acquired and originated loans as of the dates presented:
| December 31,
(dollars in thousands) | 2016 | 2015
Commercial |  |
Commercial real estate | $ | 2,498,476 |  | $ | 2,166,603 |
Commercial and industrial | 1,401,035 |  | 1,256,830 |
Commercial construction | 455,884 |  | 413,444 |
Total Commercial Loans | 4,355,395 |  | 3,836,877 |
Consumer |  |
Residential mortgage | 701,982 |  | 639,372 |
Home equity | 482,284 |  | 470,845 |
Installment and other consumer | 65,852 |  | 73,939 |
Consumer construction | 5,906 |  | 6,579 |
Total Consumer Loans | 1,256,024 |  | 1,190,735 |
Total Portfolio Loans | 5,611,419 |  | 5,027,612 |
Loans held for sale | 3,793 |  | 35,321 |
Total Loans | $ | 5,615,212 |  | $ | 5,062,933 |
As of December 31, 2016, our acquired loans from the Merger were $543.3 million including $273.0 million of CRE, $140.8 million of C&I, $33.5 million of commercial construction, $74.0 million of residential mortgage and $22.0 million of home equity, installment and other consumer construction. These acquired loans decreased from acquired loans at December 31, 2015 of $673.3 million, including $293.2 million of CRE, $167.7 million of C&I, $69.2 million of commercial construction, $115.6 million of residential mortgage, $27.5 million of home equity, installment and other consumer construction. We attempt to limit our exposure to credit risk by diversifying our loan portfolio by segment, geography, collateral and industry and actively managing concentrations. When concentrations exist in certain segments, we mitigate this risk by reviewing the relevant economic indicators and internal risk rating trends and through stress testing of the loans in these segments. Total commercial loans represented 78 percent of total portfolio loans at December 31, 2016 and 76 percent of total portfolio loans at December 31, 2015. Within our commercial portfolio, the CRE and Commercial Construction portfolios combined comprised $3.0 billion or 68 percent of total commercial loans and 53 percent of total portfolio loans at December 31, 2016 and comprised of $2.6 billion or 67 percent of total commercial loans and 51 percent of total portfolio loans at December 31, 2015. Further segmentation of the CRE and Commercial Construction portfolios by collateral type reveals no concentration in excess of seven percent of total loans at either December 31, 2016 or December 31, 2015. Our market area includes Pennsylvania and the contiguous states of Ohio, West Virginia, New York and Maryland. The majority of our commercial and consumer loans are made to businesses and individuals in this market area, resulting in a geographic concentration. We believe our knowledge and familiarity with customers and conditions locally outweighs this geographic concentration risk. The conditions of the local and regional economies are monitored closely through publicly available data and information supplied by our customers. Our CRE and Commercial Construction portfolios have out-of-market exposure of 5.2 percent of the combined portfolio and 2.7 percent of total portfolio loans at December 31, 2016 and 5.8 percent of the combined portfolio and 3.0 percent of total portfolio loans at December 31, 2015. The decrease in loans held for sale of $31.5 million from December 31, 2015 primarily related to the sale of our credit card portfolio in the first quarter of 2016, which was sold for $25.0 million and resulted in a $2.1 million gain in 2016. The remaining balance related to mortgages held for sale. The following table summarizes the restructured loans as of the dates presented:
| December 31, 2016 |  | December 31, 2015
(dollars in thousands) | Performing TDRs |  | Nonperforming TDRs |  | Total TDRs |  |  | Performing TDRs |  | Nonperforming TDRs |  | Total TDRs |
Commercial real estate | $ | 2,994 |  | $ | 646 |  | $ | 3,640 |  |  | $ | 6,822 |  | $ | 3,548 |  | $ | 10,370 |
Commercial and industrial | 1,387 |  | 4,493 |  | 5,880 |  |  | 6,321 |  | 1,570 |  | 7,891 |
Commercial construction | 2,966 |  | 430 |  | 3,396 |  |  | 5,013 |  | 1,265 |  | 6,278 |
Residential mortgage | 2,375 |  | 5,068 |  | 7,443 |  |  | 2,590 |  | 665 |  | 3,255 |
Home equity | 3,683 |  | 954 |  | 4,637 |  |  | 3,184 |  | 523 |  | 3,707 |
Installment and other consumer | 18 |  | 7 |  | 25 |  |  | 25 |  | 88 |  | 113 |
Total | $ | 13,423 |  | $ | 11,598 |  | $ | 25,021 |  |  | $ | 23,955 |  | $ | 7,659 |  | $ | 31,614 |
The following tables present the restructured loans for the 12 months ended December 31:
| 2016
(dollars in thousands) | Number of Loans |  |  | Pre-Modification Outstanding Recorded Investment(1) |  |  | Post-Modification Outstanding Recorded Investment(1) |  |  | Total Difference in Recorded Investment |
Commercial real estate |  |  |  |  |  |  |
Interest Rate Reduction | 1 |  |  | $ | 250 |  |  | $ | 242 |  |  | $ | (8 | )
Chapter 7 bankruptcy(2) | 1 |  |  | 709 |  |  | 646 |  |  | (63 | )
Commercial and industrial |  |  |  |  |  |  |
Principal deferral | 5 |  |  | 985 |  |  | 986 |  |  | 1 |
Maturity date extension | 4 |  |  | 4,756 |  |  | 3,334 |  |  | (1,422 | )
Commercial construction |  |  |  |  |  |  |
Maturity date extension | 3 |  |  | 1,251 |  |  | 1,151 |  |  | (100 | )
Residential mortgage |  |  |  |  |  |  |
Principal deferral | 1 |  |  | 3,273 |  |  | 3,133 |  |  | (140 | )
Maturity date extension | 1 |  |  | 483 |  |  | 414 |  |  | (69 | )
Maturity date extension and interest rate reduction | 1 |  |  | 280 |  |  | 279 |  |  | (1 | )
Chapter 7 bankruptcy(2) | 7 |  |  | 439 |  |  | 413 |  |  | (26 | )
Home equity |  |  |  |  |  |  |
Maturity date extension | 5 |  |  | 305 |  |  | 298 |  |  | (7 | )
Maturity date extension and interest rate reduction | 2 |  |  | 604 |  |  | 598 |  |  | (6 | )
Principal deferral | 1 |  |  | 47 |  |  | 45 |  |  | (2 | )
Chapter 7 bankruptcy(2) | 19 |  |  | 676 |  |  | 643 |  |  | (33 | )
Installment and other consumer |  |  |  |  |  |  |
Chapter 7 bankruptcy(2) | 2 |  |  | 16 |  |  | 10 |  |  | (6 | )
Total by Concession Type |  |  |  |  |  |  |
Principal deferral | 7 |  |  | 4,305 |  |  | 4,164 |  |  | (141 | )
Interest rate reduction | 1 |  |  | 250 |  |  | 242 |  |  | (8 | )
Maturity date extension and interest rate reduction | 3 |  |  | 884 |  |  | 877 |  |  | (7 | )
Maturity date extension | 13 |  |  | 6,795 |  |  | 5,197 |  |  | (1,598 | )
Chapter 7 bankruptcy(2) | 29 |  |  | 1,840 |  |  | 1,712 |  |  | (128 | )
Total | 53 |  |  | $ | 14,074 |  |  | $ | 12,192 |  |  | $ | (1,882 | )
(1)Excludes loans that were fully paid off or fully charged-off by period end. The pre-modification balance represents the balance outstanding prior to modification. The post-modification balance represents the outstanding balance at period end. (2)Chapter 7 bankruptcy loans where the debt has been legally discharged through the bankruptcy court and not reaffirmed.
| 2015
(dollars in thousands) | Number of Loans |  |  | Pre-Modification Outstanding Recorded Investment(1) |  |  | Post-Modification Outstanding Recorded Investment(1) |  |  | Total Difference in Recorded Investment |
Commercial real estate |  |  |  |  |  |  |
Principal deferral | 2 |  |  | $ | 2,851 |  |  | $ | 1,841 |  |  | $ | (1,010 | )
Maturity date extension | 3 |  |  | 438 |  |  | 427 |  |  | (11 | )
Commercial and industrial |  |  |  |  |  |  |
Principal deferral | 6 |  |  | 661 |  |  | 363 |  |  | (298 | )
Maturity date extension | 2 |  |  | 824 |  |  | 728 |  |  | (96 | )
Commercial construction |  |  |  |  |  |  |
Maturity date extension | 3 |  |  | 1,434 |  |  | 1,432 |  |  | (2 | )
Residential mortgage |  |  |  |  |  |  |
Maturity date extension | 8 |  |  | 545 |  |  | 265 |  |  | (280 | )
Maturity date extension and interest rate reduction | 1 |  |  | 207 |  |  | 205 |  |  | (2 | )
Chapter 7 bankruptcy(2) | 7 |  |  | 428 |  |  | 226 |  |  | (202 | )
Home Equity |  |  |  |  |  |  |
Maturity date extension and interest rate reduction | 3 |  |  | 203 |  |  | 201 |  |  | (2 | )
Maturity date extension | 1 |  |  | 71 |  |  | 70 |  |  | (1 | )
Chapter 7 bankruptcy(2) | 23 |  |  | 619 |  |  | 576 |  |  | (43 | )
Installment and other consumer |  |  |  |  |  |  |
Chapter 7 bankruptcy(2) | 1 |  |  | 9 |  |  | 4 |  |  | (5 | )
Total by Concession Type |  |  |  |  |  |  |
Principal deferral | 8 |  |  | 3,512 |  |  | 2,204 |  |  | (1,308 | )
Maturity date extension and interest rate reduction | 4 |  |  | 410 |  |  | 406 |  |  | (4 | )
Maturity date extension | 17 |  |  | 3,312 |  |  | 2,922 |  |  | (390 | )
Chapter 7 bankruptcy(2) | 31 |  |  | 1,056 |  |  | 806 |  |  | (250 | )
Total | 60 |  |  | $ | 8,290 |  |  | $ | 6,338 |  |  | $ | (1,952 | )
(1)Excludes loans that were fully paid off or fully charged-off by period end. The pre-modification balance represents the balance outstanding prior to modification. The post-modification balance represents the outstanding balance at period end. (2)Chapter 7 bankruptcy loans where the debt has been legally discharged through the bankruptcy court and not reaffirmed. During 2016, we modified 18 loans that were not considered to be TDRs, including 15 C&I loans for $25.6 million, and three CRE loans for $3.1 million. The modifications primarily represented instances where we were adequately compensated through additional collateral or a higher interest rate or there was an insignificant delay in payment. As of December 31, 2016, we have one commitment for $0.8 million to lend additional funds on any TDRs. We returned five TDRs totaling $0.9 million to accruing status during 2016. We returned eight TDRs to accruing status during 2015 totaling $0.4 million. Defaulted TDRs are defined as loans having a payment default of 90 days or more after the restructuring takes place. There were no TDRs that defaulted during the years ended December 31, 2016 and 2015 that were restructured within the last 12 months prior to defaulting. The following table is a summary of nonperforming assets as of the dates presented:
| December 31,
(dollars in thousands) | 2016 |  | 2015
Nonperforming Assets |  |  |
Nonaccrual loans | $ | 31,037 |  |  | $ | 27,723 |
Nonaccrual TDRs | 11,598 |  |  | 7,659 |
Total nonaccrual loans | 42,635 |  |  | 35,382 |
OREO | 679 |  |  | 354 |
Total Nonperforming Assets | $ | 43,314 |  |  | $ | 35,736 |
NPAs increased $7.6 million to $43.3 million during 2016 compared to $35.7 million for the year ended 2015, primarily due to subsequent deterioration on acquired loans since the acquisition date of $16.9 million offset by loan payoffs and charge-offs. We have granted loans to certain officers and directors of S&T and to certain affiliates of the officers and directors in the ordinary course of business. These loans were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated persons and did not involve more than normal risk of collectability. The following table presents a summary of the aggregate amount of loans to any such persons as of December 31:
(dollars in thousands) | 2016 |  | 2015
Balance at beginning of year | $ | 24,517 |  |  | $ | 27,368 |
New loans | 22,740 |  |  | 24,743 |
Repayments | (22,090 | ) |  | (27,594 | )
Balance at End of Year | $ | 25,167 |  |  | $ | 24,517 |

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