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Loans and Loans Held for Sale | 12 Months Ended
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Dec. 31, 2021
Receivables [Abstract] |
LOANS AND LOANS HELD FOR SALE | LOANS AND LOANS HELD FOR SALE Loans are presented net of unearned income of $14.1 million and $16.0 million at December 31, 2021 and 2020 and net of a discount related to purchase accounting fair value adjustments of $6.7 million and $8.6 million at December 31, 2021 and December 31, 2020. The following table summarizes the composition of originated and acquired loans as of the dates presented:
(dollars in thousands) | December 31, 2021 |  | December 31, 2020
Commercial |  |  |
Commercial real estate | $ | 3,236,653 |  |  | $ | 3,244,974 |
Commercial and industrial | 1,728,969 |  |  | 1,954,453 |
Commercial construction | 440,962 |  |  | 474,280 |
Total Commercial Loans | 5,406,584 |  |  | 5,673,707 |
Consumer |  |  |
Consumer real estate | 1,485,478 |  |  | 1,471,238 |
Installment and other consumer | 107,928 |  |  | 80,915 |
Total Consumer Loans | 1,593,406 |  |  | 1,552,153 |
Total Portfolio Loans | 6,999,990 |  |  | 7,225,860 |
Loans held for sale | 1,522 |  |  | 18,528 |
Total Loans (1) | $ | 7,001,512 |  |  | $ | 7,244,388 |
(1) Excludes interest receivable of $18.7 million at December 31, 2021 and $24.7 million at December 31, 2020. Interest receivable is included in other assets in the Consolidated Balance Sheets. Commercial and industrial loans, or C&I, included $88.3 million of loans originated under the Paycheck Protection Program, or PPP, at December 31, 2021 compared to $465.0 million at December 31, 2020. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security, or CARES Act was signed into law. The CARES Act included the PPP, a program designed to aid small and medium sized businesses through federally guaranteed loans distributed through banks. PPP loans are forgivable, in whole or in part, if the proceeds are used for payroll and other permitted expenses in accordance with the requirements of the PPP. The loans are 100 percent guaranteed by the Small Business Administration, or SBA. These loans carry a fixed rate of 1.00 percent and a term of two years, or five years for loans approved by the SBA, on or after June 5, 2020. Payments are deferred for at least six months of the loan. The SBA pays us a processing fee ranging from 1 percent to 5 percent based on the size of the loan. Interest is accrued as earned and loan origination fees and direct costs are deferred and accreted or amortized into interest income over the life of the loan using the level yield method. When a PPP loan is paid off or forgiven by the SBA, the remaining unaccreted or unamortized net origination fees or costs will be immediately recognized into income. At December 31, 2021, our business banking segment was $1.1 billion compared to $1.2 billion at December 31, 2020. Business banking consists of commercial loans made to small businesses that are standard, non-complex products evaluated through a streamlined credit approval process that has been designed to maximize efficiency while maintaining high credit quality standards that meet small business market customers’ needs. Business banking consisted of $546.1 million of commercial real estate loans, $215.4 million of C&I loans of which $39.7 million are PPP loans, $16.2 million of commercial construction loans and $357.9 million of consumer real estate loans at December 31, 2021. At December 31, 2020 business banking consisted of $453.0 million of commercial real estate loans, $394.9 million of C&I loans of which $178.4 million are PPP Loans, $8.2 million of commercial construction loans and $303.9 million of consumer real estate loans that have a commercial purpose. 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 77.2 percent of total portfolio loans at December 31, 2021 and 78.5 percent at December 31, 2020. Within our commercial portfolio, the CRE and Commercial Construction portfolios combined comprised $3.7 billion or 68.0 percent of total commercial loans and 52.5 percent of total portfolio loans at December 31, 2021 and comprised $3.7 billion or 65.6 percent of total commercial loans and 51.5 percent of total portfolio loans at December 31, 2020. We lend primarily in Pennsylvania and the contiguous states of Ohio, New York, West Virginia and Maryland. The majority of our commercial and consumer loans are made to businesses and individuals in this geography, resulting in a 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. We also use subscription services for additional geographic and industry specific information. Our CRE and Commercial Construction portfolios have exposure outside this geography of 5.7 percent of the combined portfolios at December 31, 2021 and 5.9 percent at December 31, 2020. Exposure of total portfolio loans was 3.0 percent at December 31, 2021and December 31, 2020. The following table summarizes our restructured loans as of the dates presented:
| December 31, 2021 |  | December 31, 2020
(dollars in thousands) | Performing TDRs |  | Nonperforming TDRs |  | Total TDRs |  | Performing TDRs |  | Nonperforming TDRs |  | Total TDRs
Commercial real estate | $ | — |  |  | $ | 1,697 |  |  | $ | 1,697 |  |  | $ | 14 |  |  | $ | 16,654 |  |  | $ | 16,668 |
Commercial and industrial | 748 |  |  | 14,889 |  |  | 15,637 |  |  | 7,090 |  |  | 9,885 |  |  | 16,975 |
Commercial construction | 2,190 |  |  | 2,087 |  |  | 4,277 |  |  | 3,267 |  |  | — |  |  | 3,267 |
Business banking | 858 |  |  | 1,696 |  |  | 2,554 |  |  | 1,503 |  |  | 430 |  |  | 1,933 |
Consumer real estate | 6,122 |  |  | 1,405 |  |  | 7,527 |  |  | 5,581 |  |  | 2,319 |  |  | 7,900 |
Other consumer | 3 |  |  | — |  |  | 3 |  |  | 5 |  |  | — |  |  | 5 |
Total | $ | 9,921 |  |  | $ | 21,774 |  |  | $ | 31,695 |  |  | $ | 17,460 |  |  | $ | 29,289 |  |  | $ | 46,748 |
The following tables present the restructured loans by loan segment and by type of concession for the years ended:
| December 31, 2021
| Number of Contracts | Type of Modification | Total Post-Modification Outstanding Recorded Investment(2) | Total Pre-Modification Outstanding Recorded Investment(2)
(dollars in thousands) | Bankruptcy(1) | Other | Extend Maturity | Modify Rate | Modify Payments
Commercial real estate | 1 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 1,300 |  | $ | 1,300 |  | $ | 1,824 |
Commercial industrial | 3 |  | — |  | — |  | 2,039 |  | — |  | 9,182 |  | 11,221 |  | 21,297 |
Commercial construction | 1 |  | — |  | — |  | 2,087 |  | — |  | — |  | 2,087 |  | 5,279 |
Business banking | 9 |  | 8 |  | — |  | 558 |  | — |  | 1,155 |  | 1,721 |  | 1,792 |
Consumer real estate | 26 |  | 1,099 |  | — |  | — |  | — |  | 147 |  | 1,246 |  | 1,280 |
Other consumer | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total | 40 |  | $ | 1,107 |  | $ | — |  | $ | 4,684 |  | $ | — |  | $ | 11,784 |  | $ | 17,575 |  | $ | 31,472 |
(1) Bankruptcy is consumer bankruptcy loans where the debt has been legally discharged through the bankruptcy court and not reaffirmed. (2) 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.
| December 31, 2020
| Number of Contracts | Type of Modification | Total Post-Modification Outstanding Recorded Investment(2) | Total Pre-Modification Outstanding Recorded Investment(2)
(dollars in thousands) | Bankruptcy(1) | Other | Extend Maturity | Modify Rate | Modify Payments
Commercial real estate | 1 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 4,791 |  | $ | 4,791 |  | $ | 5,292 |
Commercial industrial | 3 |  | — |  | — |  | 13,339 |  | — |  | 281 |  | 13,620 |  | 15,217 |
Commercial construction | 3 |  | — |  | — |  | 2,330 |  | — |  | — |  | 2,330 |  | 2,592 |
Business banking | 3 |  | — |  | — |  | 165 |  | — |  | 95 |  | 260 |  | 501 |
Consumer real estate | 29 |  | 956 |  | — |  | 690 |  | — |  | — |  | 1,646 |  | 1,688 |
Other consumer | 1 |  | 4 |  | — |  | — |  | — |  | — |  | 4 |  | 5 |
Total | 40 |  | $ | 960 |  | $ | — |  | $ | 16,524 |  | $ | — |  | $ | 5,167 |  | $ | 22,651 |  | $ | 25,295 |
(1) Bankruptcy is consumer bankruptcy loans where the debt has been legally discharged through the bankruptcy court and not reaffirmed. (2) 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.
In response to the coronavirus, or COVID-19 pandemic, and its economic impact on our customers, we implemented a short-term modification program that complies with the CARES Act to provide temporary payment relief to those borrowers directly impacted by COVID-19 pandemic who were not more than 30 days past due as of December 31, 2019. This program allows for a deferral of payments for 90 days and up to a maximum of 180 days for our commercial customers. The customer remains responsible for deferred payments along with any additional interest accrued during the deferral period. For our consumer customers, interest does not accrue during the deferral period and the maturity date is extended by the length of the deferral period. Under the applicable guidance, none of these loans were considered restructured during 2021. We had eight loans that were modified totaling $28.8 million at December 31, 2021 compared to 52 loans that were modified totaling $195.6 million at December 31, 2020. We had 12 commitments for $2.6 million to lend additional funds on TDRs at December 31, 2021 compared to 20 commitments for $0.8 million at December 31, 2020. We had no TDR's that returned to accruing status during 2021. We returned one TDR totaling $0.1 million to accruing status during 2020. Defaulted TDRs are defined as loans having a payment default of 90 days or more after the restructuring takes place that were restructured within the last 12 months prior to defaulting. There were no TDRs that defaulted during the year ended December 31, 2021 and there were six TDRs totaling $11.8 million that defaulted during the year ended 2020. The following table is a summary of nonperforming assets as of the dates presented:
| December 31,
(dollars in thousands) | 2021 |  | 2020
Nonperforming Assets |  |  |
Nonaccrual loans | $ | 44,517 |  |  | $ | 117,485 |
Nonaccrual TDRs | 21,774 |  |  | 29,289 |
Total nonaccrual loans | 66,291 |  |  | 146,774 |
OREO | 13,313 |  |  | 2,155 |
Total Nonperforming Assets | $ | 79,604 |  |  | $ | 148,929 |
The following table presents a summary of the aggregate amount of loans to certain officers, directors of S&T or any affiliates of such persons as of December 31:
| 2021 |  | 2020
Balance at beginning of year | $ | 6,329 |  |  | $ | 8,225 |
New loans | 1,826 |  |  | 3,343 |
Repayments or no longer considered a related party | (1,998) |  |  | (5,239) |
Balance at end of year | $ | 6,157 |  |  | $ | 6,329 |

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