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Loans and Allowance for Loan and Lease Losses | 3 Months Ended
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Mar. 31, 2020
Accounts Notes Loans And Financing Receivable Gross Allowance And Net [Abstract] |
Loans and Allowance for Loan and Lease Losses |
(4) | 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 $1,019,000 as of March 31, 2020 and $1,081,000 as of December 31, 2019), and the loans classified as “special mention” and “substandard” within Mid Penn’s internal risk rating system as of March 31, 2020 and December 31, 2019, are as follows:
(Dollars in thousands) |  |  |  | Special |  |  |  |  |  |
March 31, 2020 |  | Pass |  |  | Mention |  |  | Substandard |  |  | Total |
Commercial and industrial |  | $ | 338,713 |  |  | $ | 9,951 |  |  | $ | 2,675 |  |  | $ | 351,339 |
Commercial real estate |  |  | 925,303 |  |  |  | 1,673 |  |  |  | 13,019 |  |  |  | 939,995 |
Commercial real estate - construction |  |  | 205,209 |  |  |  | — |  |  |  | 39 |  |  |  | 205,248 |
Residential mortgage |  |  | 228,657 |  |  |  | 55 |  |  |  | 1,335 |  |  |  | 230,047 |
Home equity |  |  | 64,568 |  |  |  | 10 |  |  |  | 32 |  |  |  | 64,610 |
Consumer |  |  | 6,910 |  |  |  | — |  |  |  | — |  |  |  | 6,910 |
|  | $ | 1,769,360 |  |  | $ | 11,689 |  |  | $ | 17,100 |  |  | $ | 1,798,149 |
(Dollars in thousands) |  |  |  |  |  | Special |  |  |  |  |  |  |  |  |
December 31, 2019 |  | Pass |  |  | Mention |  |  | Substandard |  |  | Total |
Commercial and industrial |  | $ | 326,573 |  |  | $ | 9,558 |  |  | $ | 3,016 |  |  | $ | 339,147 |
Commercial real estate |  |  | 913,001 |  |  |  | 2,426 |  |  |  | 13,711 |  |  |  | 929,138 |
Commercial real estate - construction |  |  | 181,650 |  |  |  | — |  |  |  | 40 |  |  |  | 181,690 |
Residential mortgage |  |  | 235,252 |  |  |  | 55 |  |  |  | 1,417 |  |  |  | 236,724 |
Home equity |  |  | 68,224 |  |  |  | — |  |  |  | 47 |  |  |  | 68,271 |
Consumer |  |  | 7,786 |  |  |  | — |  |  |  | — |  |  |  | 7,786 |
|  | $ | 1,732,486 |  |  | $ | 12,039 |  |  | $ | 18,231 |  |  | $ | 1,762,756 |
Mid Penn had no loans classified as doubtful as of March 31, 2020 and December 31, 2019. Impaired loans by loan portfolio class as of March 31, 2020 and December 31, 2019 are summarized as follows:
|  | March 31, 2020 |  |  | December 31, 2019 |
(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 |  | $ | 890 |  |  | $ | 890 |  |  | $ | — |  |  | $ | 890 |  |  | $ | 890 |  |  | $ | — |
Commercial real estate |  |  | 6,833 |  |  |  | 7,151 |  |  |  | — |  |  |  | 7,973 |  |  |  | 8,366 |  |  |  | — |
Commercial real estate - construction |  |  | 39 |  |  |  | 39 |  |  |  | — |  |  |  | 40 |  |  |  | 61 |  |  |  | — |
Residential mortgage |  |  | 748 |  |  |  | 766 |  |  |  | — |  |  |  | 817 |  |  |  | 838 |  |  |  | — |
Home equity |  |  | 24 |  |  |  | 25 |  |  |  | — |  |  |  | 25 |  |  |  | 27 |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
With no related allowance recorded and acquired with credit deterioration: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 3 |  |  | $ | 68 |  |  | $ | — |
Commercial real estate |  |  | 1,423 |  |  |  | 1,423 |  |  |  | — |  |  |  | 1,423 |  |  |  | 1,708 |  |  |  | — |
Commercial real estate - construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Residential mortgage |  |  | 368 |  |  |  | 368 |  |  |  | — |  |  |  | 381 |  |  |  | 578 |  |  |  | — |
Home equity |  |  | 1 |  |  |  | 1 |  |  |  | — |  |  |  | 1 |  |  |  | 5 |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 7 |  |  | $ | 7 |  |  | $ | 3 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial real estate |  |  | 816 |  |  |  | 816 |  |  |  | 190 |  |  |  | 338 |  |  |  | 380 |  |  |  | 166 |
Commercial real estate - construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Residential mortgage |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Home equity |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total Impaired Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 897 |  |  | $ | 897 |  |  | $ | 3 |  |  | $ | 893 |  |  | $ | 958 |  |  | $ | — |
Commercial real estate |  |  | 9,072 |  |  |  | 9,390 |  |  |  | 190 |  |  |  | 9,734 |  |  |  | 10,454 |  |  |  | 166 |
Commercial real estate - construction |  |  | 39 |  |  |  | 39 |  |  |  | — |  |  |  | 40 |  |  |  | 61 |  |  |  | — |
Residential mortgage |  |  | 1,116 |  |  |  | 1,134 |  |  |  | — |  |  |  | 1,198 |  |  |  | 1,416 |  |  |  | — |
Home equity |  |  | 25 |  |  |  | 26 |  |  |  | — |  |  |  | 26 |  |  |  | 32 |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
The average recorded investment of impaired loans and related interest income recognized for the three months ended March 31, 2020 and 2019 are summarized as follows:
|  | Three Months Ended |
|  | March 31, 2020 |  |  | March 31, 2019 |
(Dollars in thousands) |  | Average Recorded Investment |  |  | Interest Income Recognized |  |  | Average Recorded Investment |  |  | Interest Income Recognized |
With no related allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 890 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial real estate |  |  | 7,430 |  |  |  | — |  |  |  | 2,001 |  |  |  | — |
Commercial real estate - construction |  |  | 40 |  |  |  | — |  |  |  | — |  |  |  | — |
Residential mortgage |  |  | 782 |  |  |  | 6 |  |  |  | 858 |  |  |  | 7 |
Home equity |  |  | 24 |  |  |  | — |  |  |  | 30 |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
With no related allowance recorded and acquired with credit deterioration: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 2 |  |  | $ | — |  |  | $ | 29 |  |  | $ | — |
Commercial real estate |  |  | 1,420 |  |  |  | — |  |  |  | 1,575 |  |  |  | — |
Commercial real estate - construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Residential mortgage |  |  | 374 |  |  |  | — |  |  |  | 1,214 |  |  |  | — |
Home equity |  |  | 1 |  |  |  | — |  |  |  | 4 |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 4 |  |  | $ | — |  |  | $ | 2,366 |  |  | $ | 3 |
Commercial real estate |  |  | 550 |  |  |  | — |  |  |  | 776 |  |  |  | — |
Commercial real estate - construction |  |  | — |  |  |  | — |  |  |  | 367 |  |  |  | — |
Residential mortgage |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Home equity |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total Impaired Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 896 |  |  | $ | — |  |  | $ | 2,395 |  |  | $ | 3 |
Commercial real estate |  |  | 9,400 |  |  |  | — |  |  |  | 4,352 |  |  |  | — |
Commercial real estate - construction |  |  | 40 |  |  |  | — |  |  |  | 367 |  |  |  | — |
Residential mortgage |  |  | 1,156 |  |  |  | 6 |  |  |  | 2,072 |  |  |  | 7 |
Home equity |  |  | 25 |  |  |  | — |  |  |  | 34 |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Nonaccrual loans by loan portfolio class, including loans acquired with credit deterioration, as of March 31, 2020 and December 31, 2019 are summarized as follows:
(Dollars in thousands) |  | March 31, 2020 |  |  | December 31, 2019 |
Commercial and industrial |  | $ | 898 |  |  | $ | 894 |
Commercial real estate |  |  | 9,072 |  |  |  | 9,800 |
Commercial real estate - construction |  |  | 39 |  |  |  | 40 |
Residential mortgage |  |  | 637 |  |  |  | 711 |
Home equity |  |  | 24 |  |  |  | 26 |
|  | $ | 10,670 |  |  | $ | 11,471 |
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 March 31, 2020 and December 31, 2019 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 |
March 31, 2020 |  | Due |  |  | Due |  |  | Days |  |  | Due |  |  | Current |  |  | Total Loans |  |  | Accruing |
Commercial and industrial |  | $ | 800 |  |  | $ | 251 |  |  | $ | 898 |  |  | $ | 1,949 |  |  | $ | 349,390 |  |  | $ | 351,339 |  |  | $ | — |
Commercial real estate |  |  | 2,025 |  |  |  | 525 |  |  |  | 7,119 |  |  |  | 9,669 |  |  |  | 928,903 |  |  |  | 938,572 |  |  |  | — |
Commercial real estate - construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 205,248 |  |  |  | 205,248 |  |  |  | — |
Residential mortgage |  |  | 646 |  |  |  | 61 |  |  |  | 174 |  |  |  | 881 |  |  |  | 228,798 |  |  |  | 229,679 |  |  |  | — |
Home equity |  |  | 335 |  |  |  | — |  |  |  | 23 |  |  |  | 358 |  |  |  | 64,251 |  |  |  | 64,609 |  |  |  | — |
Consumer |  |  | 29 |  |  |  | 3 |  |  |  | — |  |  |  | 32 |  |  |  | 6,878 |  |  |  | 6,910 |  |  |  | — |
Loans acquired with credit deterioration: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Commercial real estate |  |  | — |  |  |  | — |  |  |  | 1,409 |  |  |  | 1,409 |  |  |  | 14 |  |  |  | 1,423 |  |  |  | — |
Commercial real estate - construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Residential mortgage |  |  | — |  |  |  | — |  |  |  | 195 |  |  |  | 195 |  |  |  | 173 |  |  |  | 368 |  |  |  | — |
Home equity |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1 |  |  |  | 1 |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  | $ | 3,835 |  |  | $ | 840 |  |  | $ | 9,818 |  |  | $ | 14,493 |  |  | $ | 1,783,656 |  |  | $ | 1,798,149 |  |  | $ | — |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Loans |
(Dollars in thousands) |  | 30-59 |  |  | 60-89 |  |  | Greater |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Receivable > |
|  | Days Past |  |  | Days Past |  |  | than 90 |  |  | Total Past |  |  |  |  |  |  |  |  |  |  | 90 Days and |
December 31, 2019 |  | Due |  |  | Due |  |  | Days |  |  | Due |  |  | Current |  |  | Total Loans |  |  | Accruing |
Commercial and industrial |  | $ | — |  |  | $ | 1,059 |  |  | $ | 890 |  |  | $ | 1,949 |  |  | $ | 337,195 |  |  | $ | 339,144 |  |  | $ | — |
Commercial real estate |  |  | 1,298 |  |  |  | 11 |  |  |  | 7,819 |  |  |  | 9,128 |  |  |  | 918,587 |  |  |  | 927,715 |  |  |  | — |
Commercial real estate - construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 181,690 |  |  |  | 181,690 |  |  |  | — |
Residential mortgage |  |  | 145 |  |  |  | — |  |  |  | 326 |  |  |  | 471 |  |  |  | 235,872 |  |  |  | 236,343 |  |  |  | — |
Home equity |  |  | 34 |  |  |  | — |  |  |  | — |  |  |  | 34 |  |  |  | 68,236 |  |  |  | 68,270 |  |  |  | — |
Consumer |  |  | 5 |  |  |  | 3 |  |  |  | — |  |  |  | 8 |  |  |  | 7,778 |  |  |  | 7,786 |  |  |  | — |
Loans acquired with credit deterioration: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  | — |  |  |  | — |  |  |  | 3 |  |  |  | 3 |  |  |  | — |  |  |  | 3 |  |  |  | — |
Commercial real estate |  |  | 16 |  |  |  | 473 |  |  |  | 934 |  |  |  | 1,423 |  |  |  | — |  |  |  | 1,423 |  |  |  | — |
Commercial real estate - construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Residential mortgage |  |  | 5 |  |  |  | — |  |  |  | 203 |  |  |  | 208 |  |  |  | 173 |  |  |  | 381 |  |  |  | — |
Home equity |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1 |  |  |  | 1 |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  | $ | 1,503 |  |  | $ | 1,546 |  |  | $ | 10,175 |  |  | $ | 13,224 |  |  | $ | 1,749,532 |  |  | $ | 1,762,756 |  |  | $ | — |
The allowance for loan losses and the related loan loss provision for the periods presented reflect Mid Penn’s continued application of the incurred loss method for estimating credit losses, as Mid Penn is not required to adopt the current expected credit loss (“CECL”) accounting standard until January 1, 2023. The following tables summarize the allowance and recorded investments in loans receivable.
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As of, and for the three months ended, March 31, 2020 |  | Commercial and industrial |  |  | Commercial real estate |  |  | Commercial real estate - construction |  |  | Residential mortgage |  |  | Home equity |  |  | Consumer |  |  | Unallocated |  |  | Total |
Allowance for loan and lease losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
January 1, 2020 |  | $ | 2,341 |  |  | $ | 6,259 |  |  | $ | 51 |  |  | $ | 417 |  |  | $ | 442 |  |  | $ | 2 |  |  | $ | 3 |  |  | $ | 9,515 |
Charge-offs |  |  | (43 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (15 | ) |  |  | — |  |  |  | (58 | )
Recoveries |  |  | 1 |  |  |  | 1 |  |  |  | — |  |  |  | 3 |  |  |  | — |  |  |  | 2 |  |  |  | — |  |  |  | 7 |
Provisions |  |  | 128 |  |  |  | 370 |  |  |  | 6 |  |  |  | 16 |  |  |  | 6 |  |  |  | 13 |  |  |  | 11 |  |  |  | 550 |
Ending balance, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
March 31, 2020 |  |  | 2,427 |  |  |  | 6,630 |  |  |  | 57 |  |  |  | 436 |  |  |  | 448 |  |  |  | 2 |  |  |  | 14 |  |  |  | 10,014 |
Individually evaluated for impairment |  |  | 3 |  |  |  | 190 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 193 |
Ending balance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
collectively evaluated for impairment |  | $ | 2,424 |  |  | $ | 6,440 |  |  | $ | 57 |  |  | $ | 436 |  |  | $ | 448 |  |  | $ | 2 |  |  | $ | 14 |  |  | $ | 9,821 |
Loans receivables: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending balance |  | $ | 351,339 |  |  | $ | 939,995 |  |  | $ | 205,248 |  |  | $ | 230,047 |  |  | $ | 64,610 |  |  | $ | 6,910 |  |  | $ | — |  |  | $ | 1,798,149 |
Ending balance: individually evaluated for impairment |  |  | 897 |  |  |  | 7,649 |  |  |  | 39 |  |  |  | 748 |  |  |  | 24 |  |  |  | — |  |  |  | — |  |  |  | 9,357 |
Ending balance: acquired with credit deterioration |  |  | — |  |  |  | 1,423 |  |  |  | — |  |  |  | 368 |  |  |  | 1 |  |  |  | — |  |  |  | — |  |  |  | 1,792 |
Ending balance: collectively evaluated for impairment |  | $ | 350,442 |  |  | $ | 930,923 |  |  | $ | 205,209 |  |  | $ | 228,931 |  |  | $ | 64,585 |  |  | $ | 6,910 |  |  | $ | — |  |  | $ | 1,787,000 |
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2019 |  | Commercial and industrial |  |  | Commercial real estate |  |  | Commercial real estate - construction |  |  | Residential mortgage |  |  | Home equity |  |  | Consumer |  |  | Unallocated |  |  | Total |
Allowance for loan and lease losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending balance |  | $ | 2,341 |  |  | $ | 6,259 |  |  | $ | 51 |  |  | $ | 417 |  |  | $ | 442 |  |  | $ | 2 |  |  | $ | 3 |  |  | $ | 9,515 |
Ending balance: individually evaluated for impairment |  |  | — |  |  |  | 166 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 166 |
Ending balance: collectively evaluated for impairment |  | $ | 2,341 |  |  | $ | 6,093 |  |  | $ | 51 |  |  | $ | 417 |  |  | $ | 442 |  |  | $ | 2 |  |  | $ | 3 |  |  | $ | 9,349 |
Loans receivable: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending balance |  | $ | 339,147 |  |  | $ | 929,138 |  |  | $ | 181,690 |  |  | $ | 236,724 |  |  | $ | 68,271 |  |  | $ | 7,786 |  |  | $ | — |  |  | $ | 1,762,756 |
Ending balance: individually evaluated for impairment |  |  | 890 |  |  |  | 8,311 |  |  |  | 40 |  |  |  | 817 |  |  |  | 25 |  |  |  | — |  |  |  | — |  |  |  | 10,083 |
Ending balance: acquired with credit deterioration |  |  | 3 |  |  |  | 1,423 |  |  |  | — |  |  |  | 381 |  |  |  | 1 |  |  |  | — |  |  |  | — |  |  |  | 1,808 |
Ending balance: collectively evaluated for impairment |  | $ | 338,254 |  |  | $ | 919,404 |  |  | $ | 181,650 |  |  | $ | 235,526 |  |  | $ | 68,245 |  |  | $ | 7,786 |  |  | $ | — |  |  | $ | 1,750,865 |
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As of, and for the three months ended, March 31, 2019 |  | Commercial and industrial |  |  | Commercial real estate |  |  | Commercial real estate - construction |  |  | 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 |  |  | — |  |  |  | (11 | ) |  |  | (20 | ) |  |  | — |  |  |  | — |  |  |  | (10 | ) |  |  | — |  |  |  | (41 | )
Recoveries |  |  | 1 |  |  |  | 18 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2 |  |  |  | — |  |  |  | 21 |
Provisions |  |  | 51 |  |  |  | 321 |  |  |  | 26 |  |  |  | 24 |  |  |  | (78 | ) |  |  | 7 |  |  |  | (226 | ) |  |  | 125 |
Ending balance, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
March 31, 2019 |  |  | 2,443 |  |  |  | 5,031 |  |  |  | 81 |  |  |  | 477 |  |  |  | 450 |  |  |  | 6 |  |  |  | 14 |  |  |  | 8,502 |
Individually evaluated for impairment |  |  | 205 |  |  |  | 243 |  |  |  | 38 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 486 |
Ending balance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
collectively evaluated for impairment |  | $ | 2,238 |  |  | $ | 4,788 |  |  | $ | 43 |  |  | $ | 477 |  |  | $ | 450 |  |  | $ | 6 |  |  | $ | 14 |  |  | $ | 8,016 |
Loans receivables: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending balance |  | $ | 285,766 |  |  | $ | 868,498 |  |  | $ | 162,013 |  |  | $ | 252,455 |  |  | $ | 68,436 |  |  | $ | 9,518 |  |  | $ | — |  |  | $ | 1,646,686 |
Ending balance: individually evaluated for impairment |  |  | 205 |  |  |  | 2,827 |  |  |  | 367 |  |  |  | 905 |  |  |  | 29 |  |  |  | — |  |  |  | — |  |  |  | 4,333 |
Ending balance: acquired with credit deterioration |  |  | 29 |  |  |  | 1,588 |  |  |  | — |  |  |  | 1,211 |  |  |  | 4 |  |  |  | — |  |  |  | — |  |  |  | 2,832 |
Ending balance: collectively evaluated for impairment |  | $ | 285,532 |  |  | $ | 864,083 |  |  | $ | 161,646 |  |  | $ | 250,339 |  |  | $ | 68,403 |  |  | $ | 9,518 |  |  | $ | — |  |  | $ | 1,639,521 |
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 March 31, 2020 totaled $981,000 and included $495,000 attributable to four residential mortgage loans to unrelated borrowers, $440,000 in commercial real estate loans amongst two borrowers, one commercial real estate construction loan for $39,000, and one commercial and industrial loan for $7,000. As of March 31, 2020, 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 2020. Mid Penn’s troubled debt restructured loans at December 31, 2019 totaled $2,238,000, and included three accruing impaired residential mortgage loans to unrelated borrowers in compliance with the terms of the modifications totaling $490,000. The remaining $1,748,000 of troubled debt restructurings was attributable to eight loans among five 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 $1,252,000 of the total $1,748,000 in nonaccrual impaired troubled debt restructured loans. As of December 31, 2019, 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 2019. The recorded investments in troubled debt restructured loans at March 31, 2020 and December 31, 2019 are as follows:
(Dollars in thousands) | Pre-Modification |  |  | Post-Modification |  |  |  |
March 31, 2020 | Outstanding Recorded Investment |  |  | Outstanding Recorded Investment |  |  | Recorded Investment |
Commercial and industrial | $ | 8 |  |  | $ | 8 |  |  | $ | 7 |
Commercial real estate | $ | 1,214 |  |  | $ | 1,115 |  |  | $ | 440 |
Commercial real estate - construction |  | 40 |  |  |  | 40 |  |  |  | 39 |
Residential mortgage |  | 689 |  |  |  | 687 |  |  |  | 495 |
| $ | 1,951 |  |  | $ | 1,850 |  |  | $ | 981 |
(Dollars in thousands) | Pre-Modification |  |  | Post-Modification |  |  |  |
December 31, 2019 | Outstanding Recorded Investment |  |  | Outstanding Recorded Investment |  |  | Recorded Investment |
Commercial and industrial | $ | 3 |  |  | $ | 3 |  |  | $ | 3 |
Commercial real estate |  | 2,562 |  |  |  | 2,463 |  |  |  | 1,705 |
Commercial real estate - construction |  | 40 |  |  |  | 40 |  |  |  | 40 |
Residential mortgage |  | 677 |  |  |  | 675 |  |  |  | 490 |
| $ | 3,282 |  |  | $ | 3,181 |  |  | $ | 2,238 |
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, along with a joint agency statement issued by banking agencies, provides that short-term modifications made in response to COVID-19 do not need to be accounted for as troubled debt restructurings. As of March 31, 2020, Mid Penn had provided loan modifications meeting the CARES Act qualifications to 482 borrowers with aggregate loans outstanding of $220,576,000. Depending upon the specific needs and circumstances affecting each borrower, the majority of these modifications range from deferrals of both principal and interest payments for three to six months, or borrowers reverting to interest-only payments for a period of three to six months. Interest will continue to accrue on loans modified under the CARES Act during the deferral period. Mid Penn remains in communication with each of these borrowers to assess the ongoing credit status of the borrowers, and may make further adjustments to a borrower’s modification at some future time if warranted for the specific situation. See Note 13, COVID-19 Pandemic Implications, for more information. 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 months ended March 31, 2020 and 2019.
(Dollars in thousands) |  |  |  |
|  | Three Months Ended March 31, |
|  | 2020 |  |  | 2019 |
Accretable yield, beginning of period |  | $ | 89 |  |  | $ | 309 |
Accretable yield amortized to interest income |  |  | (17 | ) |  |  | (55 | )
Accretable yield, end of period |  | $ | 72 |  |  | $ | 254 |

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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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