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Loans and Loans Held for Sale | 6 Months Ended
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Jun. 30, 2018
Receivables [Abstract] |
LOANS AND LOANS HELD FOR SALE | Loans are presented net of unearned income of $5.4 million and $5.2 million at June 30, 2018 and December 31, 2017. The following table indicates the composition of loans as of the dates presented:
(dollars in thousands) | June 30, 2018 |  | December 31, 2017
Commercial |  |  |
Commercial real estate | $ | 2,788,641 |  |  | $ | 2,685,994 |
Commercial and industrial | 1,455,578 |  |  | 1,433,266 |
Commercial construction | 299,787 |  |  | 384,334 |
Total Commercial Loans | 4,544,006 |  |  | 4,503,594 |
Consumer |  |  |
Residential mortgage | 698,440 |  |  | 698,774 |
Home equity | 471,622 |  |  | 487,326 |
Installment and other consumer | 66,638 |  |  | 67,204 |
Consumer construction | 5,412 |  |  | 4,551 |
Total Consumer Loans | 1,242,112 |  |  | 1,257,855 |
Total Portfolio Loans | 5,786,118 |  |  | 5,761,449 |
Loans held for sale | 3,801 |  |  | 4,485 |
Total Loans | $ | 5,789,919 |  |  | $ | 5,765,934 |
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 79 percent of total portfolio loans at June 30, 2018 and 78 percent at December 31, 2017. Within our commercial portfolio, the Commercial Real Estate, or CRE, and Commercial Construction portfolios combined comprised $3.1 billion or 68 percent of total commercial loans and 53 percent of total portfolio loans at both June 30, 2018 and at December 31, 2017. Further segmentation of the CRE and Commercial Construction portfolios by collateral type reveals no concentration in excess of 13 percent of both total CRE and Commercial Construction loans at June 30, 2018 and 14 percent at December 31, 2017. 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 5.3 percent of their combined portfolios and 2.8 percent of total portfolio loans at June 30, 2018. This compares to 5.2 percent of their combined portfolios and 2.8 percent of total portfolio loans at December 31, 2017. We individually evaluate all substandard commercial loans that have experienced a forbearance or change in terms agreement, and all substandard consumer and residential mortgage loans that entered into an agreement to modify their existing loan, to determine if they should be designated as troubled debt restructurings, or TDRs. All TDRs are considered to be impaired loans and will be reported as impaired loans for the remaining life of the loan, unless the restructuring agreement specifies an interest rate equal to or greater than the rate that would be accepted at the time of the restructuring for a new loan with comparable risk and it is fully expected that the remaining principal and interest will be collected according to the restructured agreement. Further, all impaired loans are reported as nonaccrual loans unless the loan is a TDR that has met the requirements to be returned to accruing status. TDRs can be returned to accruing status if the ultimate collectability of all contractual amounts due, according to the restructured agreement, is not in doubt and there is a period of a minimum of six months of satisfactory payment performance by the borrower either immediately before or after the restructuring. The following table summarizes restructured loans as of the dates presented:
| June 30, 2018 |  | December 31, 2017
(dollars in thousands) | Performing TDRs |  | Nonperforming TDRs |  | Total TDRs |  | Performing TDRs |  | Nonperforming TDRs |  | Total TDRs
Commercial real estate | $ | 2,136 |  |  | $ | 925 |  |  | $ | 3,061 |  |  | $ | 2,579 |  |  | $ | 967 |  |  | $ | 3,546 |
Commercial and industrial | 14,149 |  |  | 2,599 |  |  | 16,748 |  |  | 3,946 |  |  | 3,197 |  |  | 7,143 |
Commercial construction | 2,400 |  |  | 410 |  |  | 2,810 |  |  | 2,420 |  |  | 2,413 |  |  | 4,833 |
Residential mortgage | 2,157 |  |  | 1,924 |  |  | 4,081 |  |  | 2,039 |  |  | 3,585 |  |  | 5,624 |
Home equity | 3,569 |  |  | 1,536 |  |  | 5,105 |  |  | 3,885 |  |  | 979 |  |  | 4,864 |
Installment and other consumer | 43 |  |  | 1 |  |  | 44 |  |  | 32 |  |  | 9 |  |  | 41 |
Total | $ | 24,454 |  |  | $ | 7,395 |  |  | $ | 31,849 |  |  | $ | 14,901 |  |  | $ | 11,150 |  |  | $ | 26,051 |
There were no TDRs that returned to accruing status during the three and six months ended June 30, 2018. There was one TDR that returned to accruing status totaling $2.0 million during the three and six months ended June 30, 2017. The following tables present the restructured loans by loan segment and by type of concession for the three and six months ended June 30, 2018 and 2017:
| Three Months Ended June 30, 2018 |  | Three Months Ended June 30, 2017
(dollars in thousands) | Number of Loans |  | Pre-Modification Outstanding Recorded Investment(1) |  | Post-Modification Outstanding Recorded Investment(1) |  | Total Difference in Recorded Investment |  | Number of Loans |  | Pre-Modification Outstanding Recorded Investment(1) |  | Post-Modification Outstanding Recorded Investment(1) |  | Total Difference in Recorded Investment
Totals by Loan Segment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Principal deferral | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | 1 |  |  | $ | 100 |  |  | $ | 100 |  |  | $ | — |
Total Commercial Real Estate | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 100 |  |  | 100 |  |  | — |
Commercial and industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Maturity date extension and interest rate reduction | — |  |  | — |  |  | — |  |  | — |  |  | 2 |  |  | 1,800 |  |  | 1,800 |  |  | — |
Principal deferral | 3 |  |  | 4,815 |  |  | 5,034 |  |  | 219 |  |  | 1 |  |  | 429 |  |  | 429 |  |  | — |
Total Commercial and Industrial | 3 |  |  | 4,815 |  |  | 5,034 |  |  | 219 |  |  | 3 |  |  | 2,229 |  |  | 2,229 |  |  | — |
Commercial Construction |  |  | . |  |  |  |  |  |  |  |  |  |  |  |
Total Commercial Construction | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Residential mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Chapter 7 bankruptcy(2) | 1 |  |  | 41 |  |  | 41 |  |  | — |  |  | 1 |  |  | 33 |  |  | 33 |  |  | — |
Total Residential Mortgage | 1 |  |  | 41 |  |  | 41 |  |  | — |  |  | 1 |  |  | 33 |  |  | 33 |  |  | — |
Home equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Chapter 7 bankruptcy(2) | 2 |  |  | 26 |  |  | 26 |  |  | — |  |  | 3 |  |  | 40 |  |  | 38 |  |  | (2 | )
Maturity date extension | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 231 |  |  | 231 |  |  | — |
Maturity date extension and interest rate reduction | 2 |  |  | 47 |  |  | 47 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total Home Equity | 4 |  |  | 73 |  |  | 73 |  |  | — |  |  | 4 |  |  | 271 |  |  | 269 |  |  | (2 | )
Installment and other consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Chapter 7 bankruptcy(2) | 2 |  |  | 8 |  |  | 7 |  |  | (1 | ) |  | 2 |  |  | 37 |  |  | 34 |  |  | (3 | )
Total Installment and Other Consumer | 2 |  |  | 8 |  |  | 7 |  |  | (1 | ) |  | 2 |  |  | 37 |  |  | 34 |  |  | (3 | )
Totals by Concession Type |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Chapter 7 bankruptcy(2) | 5 |  |  | 75 |  |  | 74 |  |  | (1 | ) |  | 6 |  |  | 110 |  |  | 105 |  |  | $ | (5 | )
Maturity date extension and interest rate reduction | 2 |  |  | 47 |  |  | 47 |  |  | — |  |  | 2 |  |  | 1,800 |  |  | 1,800 |  |  | — |
Maturity date extension | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 231 |  |  | 231 |  |  | — |
Principal deferral | 3 |  |  | 4,815 |  |  | 5,034 |  |  | 219 |  |  | 2 |  |  | 529 |  |  | 529 |  |  | — |
Total | 10 |  |  | $ | 4,937 |  |  | $ | 5,155 |  |  | $ | 218 |  |  | 11 |  |  | $ | 2,670 |  |  | $ | 2,665 |  |  | $ | (5 | )
(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.
| Six Months Ended June 30, 2018 |  | Six Months Ended June 30, 2017
(dollars in thousands) | Number of Loans |  | Pre-Modification Outstanding Recorded Investment(1) |  | Post-Modification Outstanding Recorded Investment(1) |  | Total Difference in Recorded Investment |  | Number of Loans |  | Pre-Modification Outstanding Recorded Investment(1) |  | Post-Modification Outstanding Recorded Investment(1) |  | Total Difference in Recorded Investment
Totals by Loan Segment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Principal deferral | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | 1 |  |  | $ | 100 |  |  | $ | 100 |  |  | $ | — |
Total Commercial Real Estate | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 100 |  |  | 100 |  |  | — |
Commercial and industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Maturity date extension | 2 |  |  | 768 |  |  | 582 |  |  | (186 | ) |  | — |  |  | — |  |  | — |  |  | — |
Maturity date extension and interest rate reduction | — |  |  | — |  |  | — |  |  | — |  |  | 2 |  |  | 1,800 |  |  | 1,800 |  |  | — |
Principal deferral | 3 |  |  | 4,815 |  |  | 5,034 |  |  | 219 |  |  | 1 |  |  | 429 |  |  | 429 |  |  | — |
Principal deferral and maturity date extension | 6 |  |  | 5,355 |  |  | 5,229 |  |  | (126 | ) |  | — |  |  | — |  |  | — |  |  | — |
Total Commercial and Industrial | 11 |  |  | 10,938 |  |  | 10,845 |  |  | (93 | ) |  | 3 |  |  | 2,229 |  |  | 2,229 |  |  | — |
Commercial Construction |  |  | . |  |  |  |  |  |  |  |  |  |  |  |
Total Commercial Construction | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Residential mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Chapter 7 bankruptcy(2) | 3 |  |  | 199 |  |  | 196 |  |  | (3 | ) |  | 1 |  |  | 33 |  |  | 33 |  |  | — |
Total Residential Mortgage | 3 |  |  | 199 |  |  | 196 |  |  | (3 | ) |  | 1 |  |  | 33 |  |  | 33 |  |  | — |
Home equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Chapter 7 bankruptcy(2) | 11 |  |  | 605 |  |  | 574 |  |  | (31 | ) |  | 9 |  |  | 309 |  |  | 304 |  |  | (5 | )
Maturity date extension | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 231 |  |  | 231 |  |  | — |
Maturity date extension and interest rate reduction | 2 |  |  | 47 |  |  | 47 |  |  | — |  |  | 1 |  |  | 173 |  |  | 172 |  |  | (1 | )
Total Home Equity | 13 |  |  | 652 |  |  | 621 |  |  | (31 | ) |  | 11 |  |  | 713 |  |  | 707 |  |  | (6 | )
Installment and other consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Chapter 7 bankruptcy(2) | 4 |  |  | 25 |  |  | 23 |  |  | (2 | ) |  | 2 |  |  | 37 |  |  | 34 |  |  | (3 | )
Total Installment and Other Consumer | 4 |  |  | 25 |  |  | 23 |  |  | (2 | ) |  | 2 |  |  | 37 |  |  | 34 |  |  | (3 | )
Totals by Concession Type |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Chapter 7 bankruptcy(2) | 18 |  |  | 829 |  |  | 793 |  |  | (36 | ) |  | 12 |  |  | 379 |  |  | 371 |  |  | (8 | )
Maturity date extension | 2 |  |  | 768 |  |  | 582 |  |  | (186 | ) |  | 1 |  |  | 231 |  |  | 231 |  |  | — |
Maturity date extension and interest rate reduction | 2 |  |  | 47 |  |  | 47 |  |  | — |  |  | 3 |  |  | 1,973 |  |  | 1,972 |  |  | (1 | )
Principal deferral | 3 |  |  | 4,815 |  |  | 5,034 |  |  | 219 |  |  | 2 |  |  | 529 |  |  | 529 |  |  | — |
Principal deferral and maturity date extension | 6 |  |  | 5,355 |  |  | 5,229 |  |  | (126 | ) |  | — |  |  | — |  |  | — |  |  | — |
Total | 31 |  |  | $ | 11,814 |  |  | $ | 11,685 |  |  | $ | (129 | ) |  | 18 |  |  | $ | 3,112 |  |  | $ | 3,103 |  |  | $ | (9 | )
(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.
As of June 30, 2018, we had seven commitments to lend an additional $5.6 million on TDRs. 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 three and six months ended June 30, 2018 and 2017 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:
| Nonperforming Assets
(dollars in thousands) | June 30, 2018 |  | December 31, 2017
Nonperforming Assets |  |  |
Nonaccrual loans | $ | 13,977 |  |  | $ | 12,788 |
Nonaccrual TDRs | 7,395 |  |  | 11,150 |
Total Nonaccrual Loans | 21,372 |  |  | 23,938 |
OREO | 2,999 |  |  | 469 |
Total Nonperforming Assets | $ | 24,371 |  |  | $ | 24,407 |
Other real estate owned, or OREO increased $2.5 million since December 31, 2017. This increase is related to two land lots that are no longer intended to be future branch locations. These land lots were reclassified from other assets to OREO during the three months ended March 31, 2018.

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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=84173941&loc=d3e5074-111524 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(4)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.7-03(a)(5)) -URI http://asc.fasb.org/extlink&oid=6879938&loc=d3e572229-122910 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=84173941&loc=d3e5162-111524 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=84173941&loc=d3e5066-111524 Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(3)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.9-03(7)) -URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.6-04(6)) -URI http://asc.fasb.org/extlink&oid=6488278&loc=d3e603758-122996 + Details
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