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Loans and Allowance for Loan and Lease Losses | 9 Months Ended
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Sep. 30, 2019
Accounts Notes Loans And Financing Receivable Gross Allowance And Net [Abstract] |
Loans and Allowance for Loan and Lease Losses |
(6) | Loans and Allowance for Loan and Lease Losses
The types of loans in Mid Penn’s portfolio, summarized by those rated as “pass” (net of deferred fees and costs of $948,000 as of September 30, 2019 and $647,000 as of December 31, 2018), and the loans classified as “special mention” and “substandard” within Mid Penn’s internal risk rating system as of September 30, 2019 and December 31, 2018, are as follows:
(Dollars in thousands) |  |  |  | Special |  |  |  |  |  |
September 30, 2019 |  | Pass |  |  | Mention |  |  | Substandard |  |  | Total |
Commercial and industrial |  | $ | 307,083 |  |  | $ | 11,068 |  |  | $ | 2,249 |  |  | $ | 320,400 |
Commercial real estate |  |  | 875,155 |  |  |  | 8,974 |  |  |  | 7,931 |  |  |  | 892,060 |
Commercial real estate - construction |  |  | 177,111 |  |  |  | — |  |  |  | 40 |  |  |  | 177,151 |
Lease financing |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Residential mortgage |  |  | 242,076 |  |  |  | 56 |  |  |  | 1,597 |  |  |  | 243,729 |
Home equity |  |  | 69,181 |  |  |  | — |  |  |  | 59 |  |  |  | 69,240 |
Consumer |  |  | 7,854 |  |  |  | — |  |  |  | — |  |  |  | 7,854 |
|  | $ | 1,678,460 |  |  | $ | 20,098 |  |  | $ | 11,876 |  |  | $ | 1,710,434 |
(Dollars in thousands) |  |  |  |  |  | Special |  |  |  |  |  |  |  |  |
December 31, 2018 |  | Pass |  |  | Mention |  |  | Substandard |  |  | Total |
Commercial and industrial |  | $ | 276,690 |  |  | $ | 2,769 |  |  | $ | 7,059 |  |  | $ | 286,518 |
Commercial real estate |  |  | 850,150 |  |  |  | 2,432 |  |  |  | 8,787 |  |  |  | 861,369 |
Commercial real estate - construction |  |  | 141,806 |  |  |  | — |  |  |  | 367 |  |  |  | 142,173 |
Lease financing |  |  | 53 |  |  |  | — |  |  |  | — |  |  |  | 53 |
Residential mortgage |  |  | 251,151 |  |  |  | 147 |  |  |  | 2,245 |  |  |  | 253,543 |
Home equity |  |  | 70,004 |  |  |  | — |  |  |  | 92 |  |  |  | 70,096 |
Consumer |  |  | 10,315 |  |  |  | — |  |  |  | — |  |  |  | 10,315 |
|  | $ | 1,600,169 |  |  | $ | 5,348 |  |  | $ | 18,550 |  |  | $ | 1,624,067 |
Mid Penn had no loans classified as doubtful as of September 30, 2019 and December 31, 2018. Impaired loans by loan portfolio class as of September 30, 2019 and December 31, 2018 are summarized as follows:
|  | September 30, 2019 |  |  | December 31, 2018 |
(Dollars in thousands) |  | Recorded Investment |  |  | Unpaid Principal Balance |  |  | Related Allowance |  |  | Recorded Investment |  |  | Unpaid Principal Balance |  |  | Related Allowance |
With no related allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial real estate |  |  | 1,787 |  |  |  | 2,087 |  |  |  | — |  |  |  | 2,007 |  |  |  | 2,276 |  |  |  | — |
Commercial real estate - construction |  |  | 40 |  |  |  | 61 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Lease financing |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Residential mortgage |  |  | 881 |  |  |  | 896 |  |  |  | — |  |  |  | 657 |  |  |  | 811 |  |  |  | — |
Home equity |  |  | 26 |  |  |  | 27 |  |  |  | — |  |  |  | 30 |  |  |  | 106 |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
With no related allowance recorded and acquired with credit deterioration: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 5 |  |  | $ | 5 |  |  | $ | — |  |  | $ | 28 |  |  | $ | 28 |  |  | $ | — |
Commercial real estate |  |  | 1,643 |  |  |  | 1,643 |  |  |  | — |  |  |  | 1,563 |  |  |  | 1,563 |  |  |  | — |
Commercial real estate - construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Lease financing |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Residential mortgage |  |  | 494 |  |  |  | 494 |  |  |  | — |  |  |  | 1,208 |  |  |  | 1,208 |  |  |  | — |
Home equity |  |  | 4 |  |  |  | 4 |  |  |  | — |  |  |  | 4 |  |  |  | 4 |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 4,527 |  |  | $ | 4,635 |  |  | $ | 500 |
Commercial real estate |  |  | 537 |  |  |  | 578 |  |  |  | 336 |  |  |  | 721 |  |  |  | 721 |  |  |  | 204 |
Commercial real estate - construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 367 |  |  |  | 370 |  |  |  | 38 |
Lease financing |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Residential mortgage |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Home equity |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total Impaired Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 5 |  |  | $ | 5 |  |  | $ | — |  |  | $ | 4,555 |  |  | $ | 4,663 |  |  | $ | 500 |
Commercial real estate |  |  | 3,967 |  |  |  | 4,308 |  |  |  | 336 |  |  |  | 4,291 |  |  |  | 4,560 |  |  |  | 204 |
Commercial real estate - construction |  |  | 40 |  |  |  | 61 |  |  |  | — |  |  |  | 367 |  |  |  | 370 |  |  |  | 38 |
Lease financing |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Residential mortgage |  |  | 1,375 |  |  |  | 1,390 |  |  |  | — |  |  |  | 1,865 |  |  |  | 2,019 |  |  |  | — |
Home equity |  |  | 30 |  |  |  | 31 |  |  |  | — |  |  |  | 34 |  |  |  | 110 |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
The average recorded investment of impaired loans and related interest income recognized for the three and nine months ended September 30, 2019 and 2018 are summarized as follows:
|  | Three Months Ended |
|  | September 30, 2019 |  |  | September 30, 2018 |
(Dollars in thousands) |  | Average Recorded Investment |  |  | Interest Income Recognized |  |  | Average Recorded Investment |  |  | Interest Income Recognized |
With no related allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial real estate |  |  | 1,917 |  |  |  | — |  |  |  | 1,872 |  |  |  | — |
Commercial real estate - construction |  |  | 40 |  |  |  | 4 |  |  |  | — |  |  |  | — |
Lease financing |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Residential mortgage |  |  | 889 |  |  |  | 7 |  |  |  | 780 |  |  |  | 11 |
Home equity |  |  | 27 |  |  |  | — |  |  |  | 17 |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
With no related allowance recorded and acquired with credit deterioration: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 11 |  |  | $ | — |  |  | $ | 24 |  |  | $ | — |
Commercial real estate |  |  | 1,630 |  |  |  | — |  |  |  | 1,470 |  |  |  | 7 |
Commercial real estate - construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Lease financing |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Residential mortgage |  |  | 1,055 |  |  |  | — |  |  |  | 677 |  |  |  | — |
Home equity |  |  | 4 |  |  |  | — |  |  |  | 1 |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 38 |  |  | $ | — |  |  | $ | 4,425 |  |  | $ | — |
Commercial real estate |  |  | 617 |  |  |  | — |  |  |  | 703 |  |  |  | — |
Commercial real estate - construction |  |  | — |  |  |  | — |  |  |  | 367 |  |  |  | — |
Lease financing |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Residential mortgage |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Home equity |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total Impaired Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 49 |  |  | $ | — |  |  | $ | 4,449 |  |  | $ | — |
Commercial real estate |  |  | 4,164 |  |  |  | — |  |  |  | 4,045 |  |  |  | 7 |
Commercial real estate - construction |  |  | 40 |  |  |  | 4 |  |  |  | 367 |  |  |  | — |
Lease financing |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Residential mortgage |  |  | 1,944 |  |  |  | 7 |  |  |  | 1,457 |  |  |  | 11 |
Home equity |  |  | 31 |  |  |  | — |  |  |  | 18 |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  | Nine Months Ended |
|  | September 30, 2019 |  |  | September 30, 2018 |
(Dollars in thousands) |  | Average Recorded Investment |  |  | Interest Income Recognized |  |  | Average Recorded Investment |  |  | Interest Income Recognized |
With no related allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial real estate |  |  | 2,697 |  |  |  | 11 |  |  |  | 3,040 |  |  |  | 3 |
Commercial real estate - construction |  |  | 40 |  |  |  | — |  |  |  | — |  |  |  | — |
Lease financing |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Residential mortgage |  |  | 1,151 |  |  |  | 21 |  |  |  | 769 |  |  |  | 27 |
Home equity |  |  | 38 |  |  |  | — |  |  |  | 148 |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
With no related allowance recorded and acquired with credit deterioration: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 22 |  |  | $ | — |  |  | $ | 21 |  |  | $ | — |
Commercial real estate |  |  | 1,602 |  |  |  | — |  |  |  | 1,365 |  |  |  | 23 |
Commercial real estate - construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Lease financing |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Residential mortgage |  |  | 1,152 |  |  |  | — |  |  |  | 726 |  |  |  | — |
Home equity |  |  | 4 |  |  |  | — |  |  |  | — |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 1,202 |  |  | $ | 3 |  |  | $ | 4,424 |  |  | $ | — |
Commercial real estate |  |  | 633 |  |  |  | — |  |  |  | 456 |  |  |  | — |
Commercial real estate - construction |  |  | 183 |  |  |  | — |  |  |  | 367 |  |  |  | — |
Lease financing |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Residential mortgage |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Home equity |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total Impaired Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 1,224 |  |  | $ | 3 |  |  | $ | 4,445 |  |  | $ | — |
Commercial real estate |  |  | 4,932 |  |  |  | 11 |  |  |  | 4,861 |  |  |  | 26 |
Commercial real estate - construction |  |  | 223 |  |  |  | — |  |  |  | 367 |  |  |  | — |
Lease financing |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Residential mortgage |  |  | 2,303 |  |  |  | 21 |  |  |  | 1,495 |  |  |  | 27 |
Home equity |  |  | 42 |  |  |  | — |  |  |  | 148 |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Nonaccrual loans by loan portfolio class, including loans acquired with credit deterioration, as of September 30, 2019 and December 31, 2018 are summarized as follows:
(Dollars in thousands) |  | September 30, 2019 |  |  | December 31, 2018 |
Commercial and industrial |  | $ | 5 |  |  | $ | 4,555 |
Commercial real estate |  |  | 3,967 |  |  |  | 4,291 |
Commercial real estate - construction |  |  | 40 |  |  |  | 367 |
Residential mortgage |  |  | 884 |  |  |  | 1,502 |
Home equity |  |  | 30 |  |  |  | 34 |
|  | $ | 4,926 |  |  | $ | 10,749 |
The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The classes of the loan portfolio summarized by the past due status as of September 30, 2019 and December 31, 2018 are summarized as follows:
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Loans |
(Dollars in thousands) |  | 30-59 |  |  | 60-89 |  |  | Greater |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Receivable > |
|  | Days Past |  |  | Days Past |  |  | than 90 |  |  | Total Past |  |  |  |  |  |  |  |  |  |  | 90 Days and |
September 30, 2019 |  | Due |  |  | Due |  |  | Days |  |  | Due |  |  | Current |  |  | Total Loans |  |  | Accruing |
Commercial and industrial |  | $ | 301 |  |  | $ | — |  |  | $ | — |  |  | $ | 301 |  |  | $ | 320,094 |  |  | $ | 320,395 |  |  | $ | — |
Commercial real estate |  |  | 230 |  |  |  | — |  |  |  | 1,745 |  |  |  | 1,975 |  |  |  | 888,442 |  |  |  | 890,417 |  |  |  | — |
Commercial real estate - construction |  |  | — |  |  |  | — |  |  |  | 40 |  |  |  | 40 |  |  |  | 177,111 |  |  |  | 177,151 |  |  |  | — |
Lease financing |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Residential mortgage |  |  | 35 |  |  |  | 87 |  |  |  | 365 |  |  |  | 487 |  |  |  | 242,748 |  |  |  | 243,235 |  |  |  | — |
Home equity |  |  | — |  |  |  | 18 |  |  |  | — |  |  |  | 18 |  |  |  | 69,218 |  |  |  | 69,236 |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 7,854 |  |  |  | 7,854 |  |  |  | — |
Loans acquired with credit deterioration: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  | — |  |  |  | — |  |  |  | 5 |  |  |  | 5 |  |  |  | — |  |  |  | 5 |  |  |  | — |
Commercial real estate |  |  | — |  |  |  | — |  |  |  | 1,612 |  |  |  | 1,612 |  |  |  | 31 |  |  |  | 1,643 |  |  |  | — |
Commercial real estate - construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Lease financing |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Residential mortgage |  |  | — |  |  |  | 17 |  |  |  | 158 |  |  |  | 175 |  |  |  | 319 |  |  |  | 494 |  |  |  | — |
Home equity |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 4 |  |  |  | 4 |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  | $ | 566 |  |  | $ | 122 |  |  | $ | 3,925 |  |  | $ | 4,613 |  |  | $ | 1,705,821 |  |  | $ | 1,710,434 |  |  | $ | — |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Loans |
(Dollars in thousands) |  | 30-59 |  |  | 60-89 |  |  | Greater |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Receivable > |
|  | Days Past |  |  | Days Past |  |  | than 90 |  |  | Total Past |  |  |  |  |  |  |  |  |  |  | 90 Days and |
December 31, 2018 |  | Due |  |  | Due |  |  | Days |  |  | Due |  |  | Current |  |  | Total Loans |  |  | Accruing |
Commercial and industrial |  | $ | 17 |  |  | $ | — |  |  | $ | 4,527 |  |  | $ | 4,544 |  |  | $ | 281,946 |  |  | $ | 286,490 |  |  | $ | — |
Commercial real estate |  |  | 685 |  |  |  | — |  |  |  | 458 |  |  |  | 1,143 |  |  |  | 858,663 |  |  |  | 859,806 |  |  |  | — |
Commercial real estate - construction |  |  | — |  |  |  | — |  |  |  | 367 |  |  |  | 367 |  |  |  | 141,806 |  |  |  | 142,173 |  |  |  | — |
Lease financing |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 53 |  |  |  | 53 |  |  |  | — |
Residential mortgage |  |  | 461 |  |  |  | — |  |  |  | 277 |  |  |  | 738 |  |  |  | 251,597 |  |  |  | 252,335 |  |  |  | — |
Home equity |  |  | 166 |  |  |  | 22 |  |  |  | 25 |  |  |  | 213 |  |  |  | 69,879 |  |  |  | 70,092 |  |  |  | — |
Consumer |  |  | 57 |  |  |  | 5 |  |  |  | — |  |  |  | 62 |  |  |  | 10,253 |  |  |  | 10,315 |  |  |  | — |
Loans acquired with credit deterioration: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  | 23 |  |  |  | 5 |  |  |  | — |  |  |  | 28 |  |  |  | — |  |  |  | 28 |  |  |  | — |
Commercial real estate |  |  | 29 |  |  |  | — |  |  |  | 1,534 |  |  |  | 1,563 |  |  |  | — |  |  |  | 1,563 |  |  |  | — |
Commercial real estate - construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Lease financing |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Residential mortgage |  |  | 19 |  |  |  | 57 |  |  |  | 913 |  |  |  | 989 |  |  |  | 219 |  |  |  | 1,208 |  |  |  | — |
Home equity |  |  | — |  |  |  | — |  |  |  | 4 |  |  |  | 4 |  |  |  | — |  |  |  | 4 |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  | $ | 1,457 |  |  | $ | 89 |  |  | $ | 8,105 |  |  | $ | 9,651 |  |  | $ | 1,614,416 |  |  | $ | 1,624,067 |  |  | $ | — |
The following tables summarize the allowance and recorded investments in loans receivable.
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As of, and for the three months ended, September 30, 2019 |  | Commercial and industrial |  |  | Commercial real estate |  |  | Commercial real estate - construction |  |  | Lease financing |  |  | Residential mortgage |  |  | Home equity |  |  | Consumer |  |  | Unallocated |  |  | Total |
Allowance for loan and lease losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
July 1, 2019 |  | $ | 2,448 |  |  | $ | 5,312 |  |  | $ | 45 |  |  | $ | — |  |  | $ | 476 |  |  | $ | 482 |  |  | $ | 7 |  |  | $ | 1 |  |  | $ | 8,771 |
Charge-offs |  |  | (12 | ) |  |  | (42 | ) |  |  | — |  |  |  | — |  |  |  | (3 | ) |  |  | — |  |  |  | (9 | ) |  |  | — |  |  |  | (66 | )
Recoveries |  |  | 1 |  |  |  | 41 |  |  |  | — |  |  |  | — |  |  |  | 2 |  |  |  | 1 |  |  |  | 1 |  |  |  | — |  |  |  | 46 |
Provisions |  |  | 6 |  |  |  | 544 |  |  |  | 1 |  |  |  | — |  |  |  | (7 | ) |  |  | 13 |  |  |  | 6 |  |  |  | 2 |  |  |  | 565 |
Ending balance, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
September 30, 2019 |  | $ | 2,443 |  |  | $ | 5,855 |  |  | $ | 46 |  |  | $ | — |  |  | $ | 468 |  |  | $ | 496 |  |  | $ | 5 |  |  | $ | 3 |  |  | $ | 9,316 |
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As of, and for the nine months ended, September 30, 2019 |  | Commercial and industrial |  |  | Commercial real estate |  |  | Commercial real estate - construction |  |  | Lease financing |  |  | Residential mortgage |  |  | Home equity |  |  | Consumer |  |  | Unallocated |  |  | Total |
Allowance for loan and lease losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
January 1, 2019 |  | $ | 2,391 |  |  | $ | 4,703 |  |  | $ | 75 |  |  | $ | — |  |  | $ | 453 |  |  | $ | 528 |  |  | $ | 7 |  |  | $ | 240 |  |  | $ | 8,397 |
Charge-offs |  |  | (217 | ) |  |  | (53 | ) |  |  | (40 | ) |  |  | — |  |  |  | (3 | ) |  |  | — |  |  |  | (57 | ) |  |  | — |  |  |  | (370 | )
Recoveries |  |  | 44 |  |  |  | 74 |  |  |  | — |  |  |  | — |  |  |  | 2 |  |  |  | 2 |  |  |  | 12 |  |  |  | — |  |  |  | 134 |
Provisions |  |  | 225 |  |  |  | 1,131 |  |  |  | 11 |  |  |  | — |  |  |  | 16 |  |  |  | (34 | ) |  |  | 43 |  |  |  | (237 | ) |  |  | 1,155 |
Ending balance, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
September 30, 2019 |  |  | 2,443 |  |  |  | 5,855 |  |  |  | 46 |  |  |  | — |  |  |  | 468 |  |  |  | 496 |  |  |  | 5 |  |  |  | 3 |  |  |  | 9,316 |
Individually evaluated for impairment |  |  | — |  |  |  | 336 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 336 |
Ending balance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
collectively evaluated for impairment |  | $ | 2,443 |  |  | $ | 5,519 |  |  | $ | 46 |  |  | $ | — |  |  | $ | 468 |  |  | $ | 496 |  |  | $ | 5 |  |  | $ | 3 |  |  | $ | 8,980 |
Loans receivables: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending balance |  | $ | 320,400 |  |  | $ | 892,060 |  |  | $ | 177,151 |  |  | $ | — |  |  | $ | 243,729 |  |  | $ | 69,240 |  |  | $ | 7,854 |  |  | $ | — |  |  | $ | 1,710,434 |
Ending balance: individually evaluated for impairment |  |  | — |  |  |  | 2,324 |  |  |  | 40 |  |  |  | — |  |  |  | 881 |  |  |  | 26 |  |  |  | — |  |  |  | — |  |  |  | 3,271 |
Ending balance: acquired with credit deterioration |  |  | 5 |  |  |  | 1,643 |  |  |  | — |  |  |  | — |  |  |  | 494 |  |  |  | 4 |  |  |  | — |  |  |  | — |  |  |  | 2,146 |
Ending balance: collectively evaluated for impairment |  | $ | 320,395 |  |  | $ | 888,093 |  |  | $ | 177,111 |  |  | $ | — |  |  | $ | 242,354 |  |  | $ | 69,210 |  |  | $ | 7,854 |  |  | $ | — |  |  | $ | 1,705,017 |
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2018 |  | Commercial and industrial |  |  | Commercial real estate |  |  | Commercial real estate - construction |  |  | Lease financing |  |  | Residential mortgage |  |  | Home equity |  |  | Consumer |  |  | Unallocated |  |  | Total |
Allowance for loan and lease losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending balance |  | $ | 2,391 |  |  | $ | 4,703 |  |  | $ | 75 |  |  | $ | — |  |  | $ | 453 |  |  | $ | 528 |  |  | $ | 7 |  |  | $ | 240 |  |  | $ | 8,397 |
Ending balance: individually evaluated for impairment |  |  | 500 |  |  |  | 204 |  |  |  | 38 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 742 |
Ending balance: collectively evaluated for impairment |  | $ | 1,891 |  |  | $ | 4,499 |  |  | $ | 37 |  |  | $ | — |  |  | $ | 453 |  |  | $ | 528 |  |  | $ | 7 |  |  | $ | 240 |  |  | $ | 7,655 |
Loans receivable: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending balance |  | $ | 286,518 |  |  | $ | 861,369 |  |  | $ | 142,173 |  |  | $ | 53 |  |  | $ | 253,543 |  |  | $ | 70,096 |  |  | $ | 10,315 |  |  | $ | — |  |  | $ | 1,624,067 |
Ending balance: individually evaluated for impairment |  |  | 4,527 |  |  |  | 2,728 |  |  |  | 367 |  |  |  | — |  |  |  | 811 |  |  |  | 30 |  |  |  | — |  |  |  | — |  |  |  | 8,463 |
Ending balance: acquired with credit deterioration |  |  | 28 |  |  |  | 1,563 |  |  |  | — |  |  |  | — |  |  |  | 1,208 |  |  |  | 4 |  |  |  | — |  |  |  | — |  |  |  | 2,803 |
Ending balance: collectively evaluated for impairment |  | $ | 281,963 |  |  | $ | 857,078 |  |  | $ | 141,806 |  |  | $ | 53 |  |  | $ | 251,524 |  |  | $ | 70,062 |  |  | $ | 10,315 |  |  | $ | — |  |  | $ | 1,612,801 |
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As of, and for the three months ended, September 30, 2018 |  | Commercial and industrial |  |  | Commercial real estate |  |  | Commercial real estate - construction |  |  | Lease financing |  |  | Residential mortgage |  |  | Home equity |  |  | Consumer |  |  | Unallocated |  |  | Total |
Allowance for loan and lease losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
July 1, 2018 |  | $ | 2,120 |  |  | $ | 4,723 |  |  | $ | 146 |  |  | $ | — |  |  | $ | 441 |  |  | $ | 420 |  |  | $ | 4 |  |  | $ | 335 |  |  | $ | 8,189 |
Charge-offs |  |  | (12 | ) |  |  | (34 | ) |  |  | — |  |  |  | — |  |  |  | (10 | ) |  |  | — |  |  |  | (11 | ) |  |  | — |  |  |  | (67 | )
Recoveries |  |  | — |  |  |  | 2 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 5 |  |  |  | — |  |  |  | 7 |
Provisions |  |  | 232 |  |  |  | 130 |  |  |  | (12 | ) |  |  | — |  |  |  | 38 |  |  |  | 16 |  |  |  | 7 |  |  |  | (311 | ) |  |  | 100 |
Ending balance, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
September 30, 2018 |  | $ | 2,340 |  |  | $ | 4,821 |  |  | $ | 134 |  |  | $ | — |  |  | $ | 469 |  |  | $ | 436 |  |  | $ | 5 |  |  | $ | 24 |  |  | $ | 8,229 |
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As of, and for the nine months ended, September 30, 2018 |  | Commercial and industrial |  |  | Commercial real estate |  |  | Commercial real estate - construction |  |  | Lease financing |  |  | Residential mortgage |  |  | Home equity |  |  | Consumer |  |  | Unallocated |  |  | Total |
Allowance for loan and lease losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
January 1, 2018 |  |  | 1,795 |  |  |  | 4,435 |  |  |  | 178 |  |  |  | — |  |  |  | 428 |  |  |  | 423 |  |  |  | 3 |  |  |  | 344 |  |  | $ | 7,606 |
Charge-offs |  |  | (142 | ) |  |  | (34 | ) |  |  | (40 | ) |  |  | — |  |  |  | (14 | ) |  |  | (167 | ) |  |  | (21 | ) |  |  | — |  |  |  | (418 | )
Recoveries |  |  | 1 |  |  |  | 807 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 8 |  |  |  | — |  |  |  | 816 |
Provisions |  |  | 686 |  |  |  | (387 | ) |  |  | (4 | ) |  |  | — |  |  |  | 55 |  |  |  | 180 |  |  |  | 15 |  |  |  | (320 | ) |  |  | 225 |
Ending balance, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
September 30, 2018 |  |  | 2,340 |  |  |  | 4,821 |  |  |  | 134 |  |  |  | — |  |  |  | 469 |  |  |  | 436 |  |  |  | 5 |  |  |  | 24 |  |  |  | 8,229 |
Individually evaluated for impairment |  |  | 489 |  |  |  | 243 |  |  |  | 38 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 770 |
Ending balance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
collectively evaluated for impairment |  | $ | 1,851 |  |  | $ | 4,578 |  |  | $ | 96 |  |  | $ | — |  |  | $ | 469 |  |  | $ | 436 |  |  | $ | 5 |  |  | $ | 24 |  |  | $ | 7,459 |
Loans receivables: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending balance |  | $ | 269,150 |  |  | $ | 812,822 |  |  | $ | 145,368 |  |  | $ | 132 |  |  | $ | 255,386 |  |  | $ | 73,849 |  |  | $ | 10,579 |  |  | $ | — |  |  | $ | 1,567,286 |
Ending balance: individually evaluated for impairment |  |  | 4,527 |  |  |  | 2,890 |  |  |  | 367 |  |  |  | — |  |  |  | 832 |  |  |  | 25 |  |  |  | — |  |  |  | — |  |  |  | 8,641 |
Ending balance: acquired with credit deterioration |  |  | 28 |  |  |  | 1,456 |  |  |  | — |  |  |  | — |  |  |  | 1,264 |  |  |  | 4 |  |  |  | — |  |  |  | — |  |  |  | 2,752 |
Ending balance: collectively evaluated for impairment |  | $ | 264,595 |  |  | $ | 808,476 |  |  | $ | 145,001 |  |  | $ | 132 |  |  | $ | 253,290 |  |  | $ | 73,820 |  |  | $ | 10,579 |  |  | $ | — |  |  | $ | 1,555,893 |
The recorded investments in troubled debt restructured loans at September 30, 2019 and December 31, 2018 are as follows:
(Dollars in thousands) | Pre-Modification |  |  | Post-Modification |  |  |  |
September 30, 2019 | Outstanding Recorded Investment |  |  | Outstanding Recorded Investment |  |  | Recorded Investment |
Commercial real estate | $ | 2,670 |  |  | $ | 2,571 |  |  | $ | 1,894 |
Residential mortgage |  | 677 |  |  |  | 675 |  |  |  | 497 |
| $ | 3,347 |  |  | $ | 3,246 |  |  | $ | 2,391 |
(Dollars in thousands) | Pre-Modification |  |  | Post-Modification |  |  |  |
December 31, 2018 | Outstanding Recorded Investment |  |  | Outstanding Recorded Investment |  |  | Recorded Investment |
Commercial and industrial | $ | 4,110 |  |  | $ | 4,460 |  |  | $ | 4,302 |
Commercial real estate |  | 2,940 |  |  |  | 2,841 |  |  |  | 2,201 |
Residential mortgage |  | 677 |  |  |  | 675 |  |  |  | 516 |
Home equity |  | 14 |  |  |  | 14 |  |  |  | 1 |
| $ | 7,741 |  |  | $ | 7,990 |  |  | $ | 7,020 |
Mid Penn entered into forbearance or modification agreements on all loans currently classified as troubled debt restructures and all of these agreements have resulted in additional principal repayment. The terms of these forbearance agreements vary and generally involve modifications from the original loan agreements including either a reduction in the amount of principal payments for certain or extended periods, interest rate reductions, and/or the intent for the loan to be repaid as collateral is sold. Mid Penn’s troubled debt restructured loans at September 30, 2019 totaled $2,391,000 and included $1,894,000 attributable to eight loans among three relationships which were classified as nonaccrual impaired based upon a collateral evaluation in accordance with the guidance on impaired loans. One large relationship accounted for $1,423,000 of the total $1,894,000 of these nonaccrual impaired troubled debt restructured loans. The remaining troubled debt restructurings were three loans totaling $497,000 representing accruing impaired residential mortgage loans to unrelated borrowers in compliance with the terms of the modification. Mid Penn’s troubled debt restructured loans at December 31, 2018 totaled $7,020,000, and included $6,503,000 attributable to ten loans among five relationships which were classified as nonaccrual impaired based upon a collateral evaluation in accordance with the guidance on impaired loans. Two large relationships accounted for $5,463,000 of the total $6,503,000 in nonaccrual impaired troubled debt restructured loans. The remaining four loans totaling $517,000 represented accruing impaired loans to unrelated borrowers in compliance with the terms of the modification, with three loans being accruing impaired residential mortgages to unrelated borrowers totaling $516,000 and one loan being an accruing impaired home equity loan of $1,000. As of December 31, 2018, there were no defaulted troubled debt restructured loans, as all troubled debt restructured loans were current with respect to their associated forbearance agreements. There were also no defaults on troubled debt restructured loans within twelve months of restructure during 2018. The decrease in the troubled debt restructured loan balance when comparing September 30, 2019 to December 31, 2018 was largely due to the successful workout of two nonaccrual troubled debt restructured loans totaling $4,572,000 during the nine months ended September 30, 2019. There were no troubled debt restructured loans added during the three or nine months ended September 30, 2019 or 2018. As a result of management evaluations at September 30, 2019, September 30, 2018, and December 31, 2018, management believes that any necessary specific allocations or charge-offs were taken as appropriate. There were no charge-offs associated with existing troubled debt restructured loan relationships for the three or nine months ended September 30, 2019 or 2018. There were no troubled debt restructured loans that defaulted within twelve months of restructure during the three or nine months ended September 30, 2019 and 2018. The following tables provide activity for the accretable yield of acquired impaired loans from the Phoenix Bancorp, Inc. (March 2015), Scottdale (January 2018), and First Priority (July 2018) acquisitions for the three and nine months ended September 30, 2019.
(Dollars in thousands) |  |  |  |
|  | Three Months Ended September 30, |
|  | 2019 |  |  | 2018 |
Accretable yield, beginning of period |  | $ | 197 |  |  | $ | 300 |
Acquisition of impaired loans |  |  | — |  |  |  | 125 |
Accretable yield amortized to interest income |  |  | (55 | ) |  |  | (61 | )
Accretable yield, end of period |  | $ | 142 |  |  | $ | 364 |
|  | Nine Months Ended September 30, |
|  | 2019 |  |  | 2018 |
Accretable yield, beginning of period |  | $ | 309 |  |  | $ | 67 |
Acquisition of impaired loans |  |  | — |  |  |  | 430 |
Accretable yield amortized to interest income |  |  | (167 | ) |  |  | (133 | )
Accretable yield, end of period |  | $ | 142 |  |  | $ | 364 |

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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://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2196772 + Details
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