XML 24 R13.htm IDEA: XBRL DOCUMENT
v3.21.2

Loans and Allowance for Loan and Lease Losses | 6 Months Ended
--- | ---
Jun. 30, 2021
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
As of June 30, 2021 and December 31, 2020, the types of loans in Mid Penn’s portfolio, summarized using Mid Penn’s internal risk rating system between those rated “pass” (net of deferred fees and costs of $16,554,000 as of June 30, 2021 and $9,084,000 as of December 31, 2020), which comprise the vast majority of the portfolio, and those classified as “special mention” and “substandard”, are as follows:
(Dollars in thousands) |  |  |  | Special |  |  |  |  |  |
June 30, 2021 |  | Pass |  |  | Mention |  |  | Substandard |  |  | Total |
Commercial and industrial |  | $ | 770,859 |  |  | $ | 10,014 |  |  | $ | 2,233 |  |  | $ | 783,106 |
Commercial real estate |  |  | 1,131,528 |  |  |  | 7,123 |  |  |  | 8,438 |  |  |  | 1,147,089 |
Commercial real estate - construction |  |  | 282,753 |  |  |  | — |  |  |  | 23 |  |  |  | 282,776 |
Residential mortgage |  |  | 195,489 |  |  |  | 51 |  |  |  | 1,151 |  |  |  | 196,691 |
Home equity |  |  | 74,933 |  |  |  | — |  |  |  | 2,339 |  |  |  | 77,272 |
Consumer |  |  | 8,258 |  |  |  | — |  |  |  | — |  |  |  | 8,258 |
|  | $ | 2,463,820 |  |  | $ | 17,188 |  |  | $ | 14,184 |  |  | $ | 2,495,192 |
(Dollars in thousands) |  |  |  |  |  | Special |  |  |  |  |  |  |  |  |
December 31, 2020 |  | Pass |  |  | Mention |  |  | Substandard |  |  | Total |
Commercial and industrial |  | $ | 739,306 |  |  | $ | 9,928 |  |  | $ | 3,120 |  |  | $ | 752,354 |
Commercial real estate |  |  | 1,084,123 |  |  |  | 1,708 |  |  |  | 13,825 |  |  |  | 1,099,656 |
Commercial real estate - construction |  |  | 248,882 |  |  |  | — |  |  |  | 31 |  |  |  | 248,913 |
Residential mortgage |  |  | 200,544 |  |  |  | 53 |  |  |  | 1,244 |  |  |  | 201,841 |
Home equity |  |  | 71,856 |  |  |  | 3 |  |  |  | 2,365 |  |  |  | 74,224 |
Consumer |  |  | 7,053 |  |  |  | — |  |  |  | — |  |  |  | 7,053 |
|  | $ | 2,351,764 |  |  | $ | 11,692 |  |  | $ | 20,585 |  |  | $ | 2,384,041 |
The increase in deferred fees and costs from December 31, 2020 to June 30, 2021 was the result of collected but unearned PPP loan processing fees related to the PPP 2021 loans, which Mid Penn processed and disbursed during the first half of 2021. All PPP loans, whether disbursed in 2020 or 2021, are included in commercial and industrial loans and are fully guaranteed by the SBA; therefore, all PPP loans outstanding (net of the related deferred PPP fees) are classified as “pass” within Mid Penn’s internal risk rating system as of June 30, 2021. Mid Penn had no loans classified as “doubtful” as of June 30, 2021 and December 31, 2020. Impaired loans by loan portfolio class as of June 30, 2021 and December 31, 2020 are summarized as follows:
|  | June 30, 2021 |  |  | December 31, 2020 |
(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 |  | $ | — |  |  | $ | 31 |  |  | $ | — |  |  | $ | 899 |  |  | $ | 931 |  |  | $ | — |
Commercial real estate |  |  | 961 |  |  |  | 1,340 |  |  |  | — |  |  |  | 8,215 |  |  |  | 8,574 |  |  |  | — |
Commercial real estate - construction |  |  | 23 |  |  |  | 27 |  |  |  | — |  |  |  | 31 |  |  |  | 34 |  |  |  | — |
Residential mortgage |  |  | 759 |  |  |  | 791 |  |  |  | — |  |  |  | 818 |  |  |  | 842 |  |  |  | — |
Home equity |  |  | 2,339 |  |  |  | 2,341 |  |  |  | — |  |  |  | 2,365 |  |  |  | 2,395 |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
With no related allowance recorded and acquired with credit deterioration: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial real estate |  |  | 1,381 |  |  |  | 1,687 |  |  |  | — |  |  |  | 1,419 |  |  |  | 1,693 |  |  |  | — |
Commercial real estate - construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Residential mortgage |  |  | 289 |  |  |  | 538 |  |  |  | — |  |  |  | 323 |  |  |  | 568 |  |  |  | — |
Home equity |  |  | — |  |  |  | 12 |  |  |  | — |  |  |  | — |  |  |  | 13 |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 218 |  |  | $ | 249 |  |  | $ | 62 |  |  | $ | 553 |  |  | $ | 574 |  |  | $ | 533 |
Commercial real estate |  |  | 2,712 |  |  |  | 2,768 |  |  |  | 1,332 |  |  |  | 887 |  |  |  | 994 |  |  |  | 274 |
Commercial real estate - construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Residential mortgage |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Home equity |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total Impaired Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 218 |  |  | $ | 280 |  |  | $ | 62 |  |  | $ | 1,452 |  |  | $ | 1,505 |  |  | $ | 533 |
Commercial real estate |  |  | 5,054 |  |  |  | 5,795 |  |  |  | 1,332 |  |  |  | 10,521 |  |  |  | 11,261 |  |  |  | 274 |
Commercial real estate - construction |  |  | 23 |  |  |  | 27 |  |  |  | — |  |  |  | 31 |  |  |  | 34 |  |  |  | — |
Residential mortgage |  |  | 1,048 |  |  |  | 1,329 |  |  |  | — |  |  |  | 1,141 |  |  |  | 1,410 |  |  |  | — |
Home equity |  |  | 2,339 |  |  |  | 2,353 |  |  |  | — |  |  |  | 2,365 |  |  |  | 2,408 |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
The average recorded investment of impaired loans and related interest income recognized for the three and six months ended June 30, 2021 and 2020 are summarized as follows:
|  | Three Months Ended |
|  | June 30, 2021 |  |  | June 30, 2020 |
(Dollars in thousands) |  | Average Recorded Investment |  |  | Interest Income Recognized |  |  | Average Recorded Investment |  |  | Interest Income Recognized |
With no related allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 72 |  |  | $ | — |  |  | $ | 955 |  |  | $ | — |
Commercial real estate |  |  | 778 |  |  |  | 1 |  |  |  | 7,004 |  |  |  | — |
Commercial real estate - construction |  |  | 26 |  |  |  | — |  |  |  | 36 |  |  |  | — |
Residential mortgage |  |  | 759 |  |  |  | 6 |  |  |  | 762 |  |  |  | 6 |
Home equity |  |  | 2,336 |  |  |  | — |  |  |  | 1,215 |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
With no related allowance recorded and acquired with credit deterioration: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial real estate |  |  | 1,398 |  |  |  | — |  |  |  | 1,423 |  |  |  | — |
Commercial real estate - construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Residential mortgage |  |  | 300 |  |  |  | — |  |  |  | 360 |  |  |  | — |
Home equity |  |  | — |  |  |  | — |  |  |  | 1 |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 221 |  |  | $ | — |  |  | $ | 99 |  |  | $ | — |
Commercial real estate |  |  | 1,793 |  |  |  | — |  |  |  | 835 |  |  |  | — |
Commercial real estate - construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Residential mortgage |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Home equity |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total Impaired Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 293 |  |  | $ | — |  |  | $ | 1,054 |  |  | $ | — |
Commercial real estate |  |  | 3,969 |  |  |  | 1 |  |  |  | 9,262 |  |  |  | — |
Commercial real estate - construction |  |  | 26 |  |  |  | — |  |  |  | 36 |  |  |  | — |
Residential mortgage |  |  | 1,059 |  |  |  | 6 |  |  |  | 1,122 |  |  |  | 6 |
Home equity |  |  | 2,336 |  |  |  | — |  |  |  | 1,216 |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  | Six Months Ended |
|  | June 30, 2021 |  |  | June 30, 2020 |
(Dollars in thousands) |  | Average Recorded Investment |  |  | Interest Income Recognized |  |  | Average Recorded Investment |  |  | Interest Income Recognized |
With no related allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 502 |  |  | $ | — |  |  | $ | 933 |  |  | $ | — |
Commercial real estate |  |  | 3,257 |  |  |  | 1 |  |  |  | 7,362 |  |  |  | — |
Commercial real estate - construction |  |  | 28 |  |  |  | — |  |  |  | 37 |  |  |  | — |
Residential mortgage |  |  | 778 |  |  |  | 14 |  |  |  | 780 |  |  |  | 13 |
Home equity |  |  | 2,346 |  |  |  | — |  |  |  | 818 |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
With no related allowance recorded and acquired with credit deterioration: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | — |  |  | $ | — |  |  | $ | 1 |  |  | $ | — |
Commercial real estate |  |  | 1,406 |  |  |  | — |  |  |  | 1,421 |  |  |  | — |
Commercial real estate - construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Residential mortgage |  |  | 309 |  |  |  | — |  |  |  | 367 |  |  |  | — |
Home equity |  |  | — |  |  |  | — |  |  |  | 1 |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 177 |  |  | $ | — |  |  | $ | 66 |  |  | $ | — |
Commercial real estate |  |  | 1,491 |  |  |  | — |  |  |  | 634 |  |  |  | — |
Commercial real estate - construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Residential mortgage |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Home equity |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total Impaired Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 679 |  |  | $ | — |  |  | $ | 1,000 |  |  | $ | — |
Commercial real estate |  |  | 6,154 |  |  |  | 1 |  |  |  | 9,417 |  |  |  | — |
Commercial real estate - construction |  |  | 28 |  |  |  | — |  |  |  | 37 |  |  |  | — |
Residential mortgage |  |  | 1,087 |  |  |  | 14 |  |  |  | 1,147 |  |  |  | 13 |
Home equity |  |  | 2,346 |  |  |  | — |  |  |  | 819 |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Nonaccrual loans by loan portfolio class, including loans acquired with credit deterioration, as of June 30, 2021 and December 31, 2020 are summarized as follows:
(Dollars in thousands) |  | June 30, 2021 |  |  | December 31, 2020 |
Commercial and industrial |  | $ | 324 |  |  | $ | 1,452 |
Commercial real estate |  |  | 4,948 |  |  |  | 10,520 |
Commercial real estate - construction |  |  | 23 |  |  |  | 31 |
Residential mortgage |  |  | 599 |  |  |  | 679 |
Home equity |  |  | 2,339 |  |  |  | 2,365 |
|  | $ | 8,233 |  |  | $ | 15,047 |
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 June 30, 2021 and December 31, 2020 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 |
June 30, 2021 |  | Due |  |  | Due |  |  | Days |  |  | Due |  |  | Current |  |  | Total Loans |  |  | Accruing |
Commercial and industrial |  | $ | — |  |  | $ | 1,003 |  |  | $ | 192 |  |  | $ | 1,195 |  |  | $ | 781,911 |  |  | $ | 783,106 |  |  | $ | — |
Commercial real estate |  |  | 80 |  |  |  | — |  |  |  | 1,358 |  |  |  | 1,438 |  |  |  | 1,144,270 |  |  |  | 1,145,708 |  |  |  | — |
Commercial real estate - construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 282,776 |  |  |  | 282,776 |  |  |  | — |
Residential mortgage |  |  | 13 |  |  |  | 1 |  |  |  | 272 |  |  |  | 286 |  |  |  | 196,116 |  |  |  | 196,402 |  |  |  | — |
Home equity |  |  | — |  |  |  | 255 |  |  |  | 2,338 |  |  |  | 2,593 |  |  |  | 74,679 |  |  |  | 77,272 |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 8,258 |  |  |  | 8,258 |  |  |  | — |
Loans acquired with credit deterioration: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Commercial real estate |  |  | 6 |  |  |  | — |  |  |  | 1,371 |  |  |  | 1,377 |  |  |  | 4 |  |  |  | 1,381 |  |  |  | — |
Commercial real estate - construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Residential mortgage |  |  | — |  |  |  | — |  |  |  | 145 |  |  |  | 145 |  |  |  | 144 |  |  |  | 289 |  |  |  | — |
Home equity |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  | $ | 99 |  |  | $ | 1,259 |  |  | $ | 5,676 |  |  | $ | 7,034 |  |  | $ | 2,488,158 |  |  | $ | 2,495,192 |  |  | $ | — |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Loans |
(Dollars in thousands) |  | 30-59 |  |  | 60-89 |  |  | Greater |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Receivable > |
|  | Days Past |  |  | Days Past |  |  | than 90 |  |  | Total Past |  |  |  |  |  |  |  |  |  |  | 90 Days and |
December 31, 2020 |  | Due |  |  | Due |  |  | Days |  |  | Due |  |  | Current |  |  | Total Loans |  |  | Accruing |
Commercial and industrial |  | $ | 365 |  |  | $ | 1,017 |  |  | $ | 1,377 |  |  | $ | 2,759 |  |  | $ | 749,595 |  |  | $ | 752,354 |  |  | $ | — |
Commercial real estate |  |  | 1,096 |  |  |  | — |  |  |  | 7,668 |  |  |  | 8,764 |  |  |  | 1,089,473 |  |  |  | 1,098,237 |  |  |  | — |
Commercial real estate - construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 248,913 |  |  |  | 248,913 |  |  |  | — |
Residential mortgage |  |  | 126 |  |  |  | — |  |  |  | 282 |  |  |  | 408 |  |  |  | 201,110 |  |  |  | 201,518 |  |  |  | — |
Home equity |  |  | 71 |  |  |  | 22 |  |  |  | 2,343 |  |  |  | 2,436 |  |  |  | 71,788 |  |  |  | 74,224 |  |  |  | — |
Consumer |  |  | — |  |  |  | 6 |  |  |  | — |  |  |  | 6 |  |  |  | 7,047 |  |  |  | 7,053 |  |  |  | — |
Loans acquired with credit deterioration: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Commercial real estate |  |  | 9 |  |  |  | — |  |  |  | 1,402 |  |  |  | 1,411 |  |  |  | 8 |  |  |  | 1,419 |  |  |  | — |
Commercial real estate - construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Residential mortgage |  |  | — |  |  |  | — |  |  |  | 168 |  |  |  | 168 |  |  |  | 155 |  |  |  | 323 |  |  |  | — |
Home equity |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  | $ | 1,667 |  |  | $ | 1,045 |  |  | $ | 13,240 |  |  | $ | 15,952 |  |  | $ | 2,368,089 |  |  | $ | 2,384,041 |  |  | $ | — |
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, and Mid Penn has not elected to early adopt CECL. PPP loans, both those disbursed in 2020 and those disbursed in 2021, are included in the commercial and industrial classification and, as the PPP loans are fully guaranteed by the Small Business Administration, no allowance for loan losses was recorded against the $391,826,000 balance of PPP loans outstanding (net of related deferred PPP fees) as of June 30, 2021. The following tables summarize the allowance and recorded investments in loans receivable.
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As of, and for the three months ended, June 30, 2021 |  | 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, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
April 1, 2021 |  | $ | 2,988 |  |  | $ | 8,944 |  |  | $ | 122 |  |  | $ | 438 |  |  | $ | 528 |  |  | $ | 1 |  |  | $ | 570 |  |  | $ | 13,591 |
Charge-offs |  |  | — |  |  |  | — |  |  |  | (23 | ) |  |  | (7 | ) |  |  | — |  |  |  | (9 | ) |  |  | — |  |  |  | (39 | )
Recoveries |  |  | 1 |  |  |  | 10 |  |  |  | — |  |  |  | 1 |  |  |  | — |  |  |  | 2 |  |  |  | — |  |  |  | 14 |
Provisions (credits) |  |  | 176 |  |  |  | 1,023 |  |  |  | 31 |  |  |  | 67 |  |  |  | 60 |  |  |  | 8 |  |  |  | (215 | ) |  |  | 1,150 |
Ending balance, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
June 30, 2021 |  | $ | 3,165 |  |  | $ | 9,977 |  |  | $ | 130 |  |  | $ | 499 |  |  | $ | 588 |  |  | $ | 2 |  |  | $ | 355 |  |  | $ | 14,716 |
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As of, and for the six months ended, June 30, 2021 |  | 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, 2021 |  | $ | 3,066 |  |  | $ | 8,655 |  |  | $ | 134 |  |  | $ | 429 |  |  | $ | 507 |  |  | $ | 1 |  |  | $ | 590 |  |  | $ | 13,382 |
Charge-offs |  |  | (859 | ) |  |  | — |  |  |  | (23 | ) |  |  | (11 | ) |  |  | — |  |  |  | (12 | ) |  |  | — |  |  |  | (905 | )
Recoveries |  |  | 1 |  |  |  | 66 |  |  |  | — |  |  |  | 11 |  |  |  | — |  |  |  | 11 |  |  |  | — |  |  |  | 89 |
Provisions (credits) |  |  | 957 |  |  |  | 1,256 |  |  |  | 19 |  |  |  | 70 |  |  |  | 81 |  |  |  | 2 |  |  |  | (235 | ) |  |  | 2,150 |
Ending balance, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
June 30, 2021 |  |  | 3,165 |  |  |  | 9,977 |  |  |  | 130 |  |  |  | 499 |  |  |  | 588 |  |  |  | 2 |  |  |  | 355 |  |  |  | 14,716 |
Individually evaluated for impairment |  |  | 62 |  |  |  | 1,332 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,394 |
Ending balance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Collectively evaluated for impairment |  | $ | 3,103 |  |  | $ | 8,645 |  |  | $ | 130 |  |  | $ | 499 |  |  | $ | 588 |  |  | $ | 2 |  |  | $ | 355 |  |  | $ | 13,322 |
Loans receivables: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending balance |  | $ | 783,106 |  |  | $ | 1,147,089 |  |  | $ | 282,776 |  |  | $ | 196,691 |  |  | $ | 77,272 |  |  | $ | 8,258 |  |  | $ | — |  |  | $ | 2,495,192 |
Ending balance: individually evaluated for impairment |  |  | 218 |  |  |  | 3,673 |  |  |  | 23 |  |  |  | 759 |  |  |  | 2,339 |  |  |  | — |  |  |  | — |  |  |  | 7,012 |
Ending balance: acquired with credit deterioration |  |  | — |  |  |  | 1,381 |  |  |  | — |  |  |  | 289 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,670 |
Ending balance: collectively evaluated for impairment |  | $ | 782,888 |  |  | $ | 1,142,035 |  |  | $ | 282,753 |  |  | $ | 195,643 |  |  | $ | 74,933 |  |  | $ | 8,258 |  |  | $ | — |  |  | $ | 2,486,510 |
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 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: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending balance |  | $ | 3,066 |  |  | $ | 8,655 |  |  | $ | 134 |  |  | $ | 429 |  |  | $ | 507 |  |  | $ | 1 |  |  | $ | 590 |  |  | $ | 13,382 |
Ending balance: individually evaluated for impairment |  |  | 533 |  |  |  | 274 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 807 |
Ending balance: collectively evaluated for impairment |  | $ | 2,533 |  |  | $ | 8,381 |  |  | $ | 134 |  |  | $ | 429 |  |  | $ | 507 |  |  | $ | 1 |  |  | $ | 590 |  |  | $ | 12,575 |
Loans receivable: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending balance |  | $ | 752,354 |  |  | $ | 1,099,656 |  |  | $ | 248,913 |  |  | $ | 201,841 |  |  | $ | 74,224 |  |  | $ | 7,053 |  |  | $ | — |  |  | $ | 2,384,041 |
Ending balance: individually evaluated for impairment |  |  | 1,452 |  |  |  | 9,102 |  |  |  | 31 |  |  |  | 818 |  |  |  | 2,365 |  |  |  | — |  |  |  | — |  |  |  | 13,768 |
Ending balance: acquired with credit deterioration |  |  | — |  |  |  | 1,419 |  |  |  | — |  |  |  | 323 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,742 |
Ending balance: collectively evaluated for impairment |  | $ | 750,902 |  |  | $ | 1,089,135 |  |  | $ | 248,882 |  |  | $ | 200,700 |  |  | $ | 71,859 |  |  | $ | 7,053 |  |  | $ | — |  |  | $ | 2,368,531 |
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As of, and for the three months ended, June 30, 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, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
April 1, 2020 |  | $ | 2,427 |  |  | $ | 6,630 |  |  | $ | 57 |  |  | $ | 436 |  |  | $ | 448 |  |  | $ | 2 |  |  | $ | 14 |  |  | $ | 10,014 |
Charge-offs |  |  | (1 | ) |  |  | — |  |  |  | (7 | ) |  |  | — |  |  |  | — |  |  |  | (4 | ) |  |  | — |  |  |  | (12 | )
Recoveries |  |  | 2 |  |  |  | — |  |  |  | 2 |  |  |  | — |  |  |  | 1 |  |  |  | 10 |  |  |  | — |  |  |  | 15 |
Provisions (credits) |  |  | 358 |  |  |  | 611 |  |  |  | 13 |  |  |  | (9 | ) |  |  | 68 |  |  |  | (6 | ) |  |  | 15 |  |  |  | 1,050 |
Ending balance, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
June 30, 2020 |  | $ | 2,786 |  |  | $ | 7,241 |  |  | $ | 65 |  |  | $ | 427 |  |  | $ | 517 |  |  | $ | 2 |  |  | $ | 29 |  |  | $ | 11,067 |
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As of, and for the six months ended, June 30, 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 |  |  | (45 | ) |  |  | — |  |  |  | (7 | ) |  |  | — |  |  |  | — |  |  |  | (18 | ) |  |  | — |  |  |  | (70 | )
Recoveries |  |  | 2 |  |  |  | 1 |  |  |  | 2 |  |  |  | 3 |  |  |  | 1 |  |  |  | 13 |  |  |  | — |  |  |  | 22 |
Provisions (credits) |  |  | 488 |  |  |  | 981 |  |  |  | 19 |  |  |  | 7 |  |  |  | 74 |  |  |  | 5 |  |  |  | 26 |  |  |  | 1,600 |
Ending balance, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
June 30, 2020 |  |  | 2,786 |  |  |  | 7,241 |  |  |  | 65 |  |  |  | 427 |  |  |  | 517 |  |  |  | 2 |  |  |  | 29 |  |  |  | 11,067 |
Individually evaluated for impairment |  |  | 53 |  |  |  | 190 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 243 |
Ending balance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
collectively evaluated for impairment |  | $ | 2,733 |  |  | $ | 7,051 |  |  | $ | 65 |  |  | $ | 427 |  |  | $ | 517 |  |  | $ | 2 |  |  | $ | 29 |  |  | $ | 10,824 |
Loans receivables: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending balance |  | $ | 929,390 |  |  | $ | 998,673 |  |  | $ | 224,357 |  |  | $ | 218,352 |  |  | $ | 68,165 |  |  | $ | 6,828 |  |  | $ | — |  |  | $ | 2,445,765 |
Ending balance: individually evaluated for impairment |  |  | 1,210 |  |  |  | 8,028 |  |  |  | 32 |  |  |  | 776 |  |  |  | 2,406 |  |  |  | — |  |  |  | — |  |  |  | 12,452 |
Ending balance: acquired with credit deterioration |  |  | — |  |  |  | 1,430 |  |  |  | — |  |  |  | 354 |  |  |  | 1 |  |  |  | — |  |  |  | — |  |  |  | 1,785 |
Ending balance: collectively evaluated for impairment |  | $ | 928,180 |  |  | $ | 989,215 |  |  | $ | 224,325 |  |  | $ | 217,222 |  |  | $ | 65,758 |  |  | $ | 6,828 |  |  | $ | — |  |  | $ | 2,431,528 |
Mid Penn entered into forbearance or modification agreements on loans currently classified as troubled debt restructures, and 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 June 30, 2021 totaled $1,412,000 and included: (i) three accruing impaired residential mortgage loans to unrelated borrowers in compliance with the terms of the modifications totaling $449,000, and (ii) $963,000 of troubled debt restructurings attributable to nine loans among seven relationships which were classified as nonaccrual impaired based upon a collateral evaluation in accordance with the guidance on impaired loans. The balance of these nonaccrual impaired troubled debt restructured loans as of June 30, 2021 was comprised of $893,000 in commercial real estate loans amongst three borrowers; one commercial real estate construction loan for $23,000, two residential mortgage loans for $41,000, and one commercial and industrial loan for $6,000. As of June 30, 2021, there were no defaulted troubled debt restructured loans, as all troubled debt restructured loans were current with respect to their associated forbearance agreements. Mid Penn’s troubled debt restructured loans at December 31, 2020 totaled $1,480,000, and included: (i) three accruing impaired residential mortgage loans to unrelated borrowers in compliance with the terms of the modifications totaling $463,000, and (ii) $1,017,000 of troubled debt restructurings attributable to nine loans among seven relationships which were classified as nonaccrual impaired based upon a collateral evaluation in accordance with the guidance on impaired loans. One large commercial real estate relationship accounted for $535,000 of the total $1,017,000 in nonaccrual impaired troubled debt restructured loans, with the remainder consisting of (i) four commercial real estate loans totaling $398,000 among two relationships, (ii) one commercial real estate – construction loan totaling $31,000, (iii) one commercial and industrial loan totaling $6,000, and (iv) two unrelated residential mortgage loans totaling $47,000. As of December 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. The recorded investments in troubled debt restructured loans at June 30, 2021 and December 31, 2020 are as follows:
(Dollars in thousands) | Pre-Modification |  |  | Post-Modification |  |  |  |
June 30, 2021 | Outstanding Recorded Investment |  |  | Outstanding Recorded Investment |  |  | Recorded Investment |
Commercial and industrial | $ | 8 |  |  | $ | 8 |  |  | $ | 6 |
Commercial real estate |  | 1,806 |  |  |  | 1,707 |  |  |  | 893 |
Commercial real estate - construction |  | 40 |  |  |  | 40 |  |  |  | 23 |
Residential mortgage |  | 728 |  |  |  | 725 |  |  |  | 490 |
| $ | 2,582 |  |  | $ | 2,480 |  |  | $ | 1,412 |
(Dollars in thousands) | Pre-Modification |  |  | Post-Modification |  |  |  |
December 31, 2020 | Outstanding Recorded Investment |  |  | Outstanding Recorded Investment |  |  | Recorded Investment |
Commercial and industrial | $ | 8 |  |  | $ | 8 |  |  | $ | 6 |
Commercial real estate |  | 1,806 |  |  |  | 1,707 |  |  |  | 933 |
Commercial real estate - construction |  | 40 |  |  |  | 40 |  |  |  | 31 |
Residential mortgage |  | 728 |  |  |  | 725 |  |  |  | 510 |
| $ | 2,582 |  |  | $ | 2,480 |  |  | $ | 1,480 |
The 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. Depending upon the specific needs and circumstances affecting each borrower, the majority of these modifications ranged from deferrals of both principal and interest payments, with some borrowers reverting to interest-only payments. The majority of the deferrals granted by Mid Penn were for a period of three months, but some as long as six months, depending upon management’s specific evaluation of each borrower’s circumstances. Interest does continue to accrue on loans modified under the CARES Act during the deferral period. As of June 30, 2021, the principal balance of loans remaining in a CARES Act qualifying deferment status totaled $314,000, or less than 1 percent of the total loan portfolio, a reduction compared to December 31, 2020, when $11,681,000 of loans, also representing less than 1 percent of the total loan portfolio, were in this deferment status. Most borrowers who were granted a CARES Act deferral have returned to regular payment status. Mid Penn remains in communication with each of the borrowers still in deferral status to assess the ongoing credit standing of the borrowers, and may make further adjustments to a borrower’s relationship at some future time if warranted for the specific situation. The following tables provide activity for the accretable yield of acquired impaired loans from the Phoenix (March 2015), Scottdale (January 2018), and First Priority (July 2018) acquisitions for the three and six months ended June 30, 2021 and 2020.
(Dollars in thousands) |  |  |  |
|  | Three Months Ended June 30, |
|  | 2021 |  |  | 2020 |
Accretable yield, beginning of period |  | $ | 40 |  |  | $ | 72 |
Accretable yield amortized to interest income |  |  | — |  |  |  | (16 | )
Accretable yield, end of period |  | $ | 40 |  |  | $ | 56 |
(Dollars in thousands) |  | Six Months Ended June 30, |
|  | 2021 |  |  | 2020 |
Accretable yield, beginning of period |  | $ | 40 |  |  | $ | 89 |
Accretable yield amortized to interest income |  |  | — |  |  |  | (33 | )
Accretable yield, end of period |  | $ | 40 |  |  | $ | 56 |

X
- References No definition available. + Details
Name: | us-gaap_AccountsNotesLoansAndFinancingReceivableGrossAllowanceAndNetAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_LoansNotesTradeAndOtherReceivablesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration