XML 31 R17.htm IDEA: XBRL DOCUMENT v3.19.1
Loans and Allowance for Loan and Lease Losses
 12 Months Ended
Dec. 31, 2018
Accounts Notes Loans And Financing Receivable Gross Allowance And Net [Abstract]  
Loans and Allowance for Loan and Lease Losses

(9)

Loans and Allowance for Loan and Lease Losses

The classes of the loan portfolio, summarized by the aggregate pass rating, net of deferred fees and costs of $475,000 and $464,000 as of December 31, 2018 and 2017, respectively, and the classified ratings of special mention, substandard, and doubtful within Mid Penn’s internal risk rating system as of December 31, 2018  and 2017, are noted below:

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

 

Pass

 

 

Special Mention

 

 

Substandard

 

 

Doubtful

 

 

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

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

Pass

 

 

Special Mention

 

 

Substandard

 

 

Doubtful

 

 

Total

 

Commercial and industrial

 

$

182,168

 

 

$

453

 

 

$

5,412

 

 

$

—

 

 

$

188,033

 

Commercial real estate

 

 

505,397

 

 

 

1,435

 

 

 

8,180

 

 

 

—

 

 

 

515,012

 

Commercial real estate - construction

 

 

61,667

 

 

 

182

 

 

 

487

 

 

 

—

 

 

 

62,336

 

Lease financing

 

 

229

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

229

 

Residential mortgage

 

 

97,814

 

 

 

157

 

 

 

1,062

 

 

 

—

 

 

 

99,033

 

Home equity

 

 

41,479

 

 

 

105

 

 

 

309

 

 

 

—

 

 

 

41,893

 

Consumer

 

 

3,868

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,868

 

 

 

$

892,622

 

 

$

2,332

 

 

$

15,450

 

 

$

—

 

 

$

910,404

 

 

Impaired loans by loan portfolio class as of December 31, 2018 and 2017 are summarized as follows:

 

 

 

December 31, 2018

 

 

December 31, 2017

 

(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

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

13

 

 

$

—

 

Commercial real estate

 

 

2,007

 

 

 

2,276

 

 

 

—

 

 

 

3,424

 

 

 

4,056

 

 

 

—

 

Commercial real estate - construction

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Lease financing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Residential mortgage

 

 

657

 

 

 

811

 

 

 

—

 

 

 

760

 

 

 

877

 

 

 

—

 

Home equity

 

 

30

 

 

 

106

 

 

 

—

 

 

 

260

 

 

 

295

 

 

 

—

 

Consumer

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With no related allowance recorded and acquired with credit deterioration: *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

28

 

 

$

28

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Commercial real estate

 

 

1,563

 

 

 

1,563

 

 

 

—

 

 

 

555

 

 

 

555

 

 

 

—

 

Commercial real estate - construction

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Lease financing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Residential mortgage

 

 

1,208

 

 

 

1,208

 

 

 

—

 

 

 

306

 

 

 

306

 

 

 

—

 

Home equity

 

 

4

 

 

 

4

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Consumer

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

4,527

 

 

$

4,635

 

 

$

500

 

 

$

4,434

 

 

$

4,460

 

 

$

136

 

Commercial real estate

 

 

721

 

 

 

721

 

 

 

204

 

 

 

1,423

 

 

 

1,589

 

 

 

293

 

Commercial real estate - construction

 

 

367

 

 

 

370

 

 

 

38

 

 

 

487

 

 

 

492

 

 

 

100

 

Lease financing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Residential mortgage

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Home equity

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Consumer

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

4,555

 

 

$

4,663

 

 

$

500

 

 

$

4,434

 

 

$

4,473

 

 

$

136

 

Commercial real estate

 

 

4,291

 

 

 

4,560

 

 

 

204

 

 

 

5,402

 

 

 

6,200

 

 

 

293

 

Commercial real estate - construction

 

 

367

 

 

 

370

 

 

 

38

 

 

 

487

 

 

 

492

 

 

 

100

 

Lease financing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Residential mortgage

 

 

2,019

 

 

 

1,865

 

 

 

—

 

 

 

1,066

 

 

 

1,183

 

 

 

—

 

Home equity

 

 

34

 

 

 

110

 

 

 

—

 

 

 

260

 

 

 

295

 

 

 

—

 

 

*

Loans acquired with credit deterioration are presented net of credit fair value adjustment.

The average recorded investment of impaired loans and related interest income recognized for the years ended December 31, 2018, 2017, and 2016 are summarized as follows:

 

 

 

December 31, 2018

 

 

December 31, 2017

 

 

December 31, 2016

 

(Dollars in thousands)

 

Average Recorded Investment

 

 

Interest Income Recognized

 

 

Average Recorded Investment

 

 

Interest Income Recognized

 

 

Average Recorded Investment

 

 

Interest Income Recognized

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

—

 

 

$

—

 

 

$

15

 

 

$

—

 

 

$

9

 

 

$

—

 

Commercial real estate

 

 

3,048

 

 

 

3

 

 

 

1,915

 

 

 

279

 

 

 

820

 

 

 

—

 

Commercial real estate - construction

 

 

—

 

 

 

—

 

 

 

164

 

 

 

—

 

 

 

124

 

 

 

—

 

Lease financing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Residential mortgage

 

 

754

 

 

 

29

 

 

 

890

 

 

 

18

 

 

 

821

 

 

 

21

 

Home equity

 

 

101

 

 

 

—

 

 

 

218

 

 

 

6

 

 

 

75

 

 

 

—

 

Consumer

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With no related allowance recorded and acquired with credit deterioration:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

23

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Commercial real estate

 

 

1,414

 

 

 

23

 

 

 

651

 

 

 

110

 

 

 

810

 

 

 

164

 

Commercial real estate - construction

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Lease financing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Residential mortgage

 

 

832

 

 

 

—

 

 

 

332

 

 

 

—

 

 

 

378

 

 

 

4

 

Home equity

 

 

1

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Consumer

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

4,437

 

 

$

—

 

 

$

1,779

 

 

$

—

 

 

$

59

 

 

$

—

 

Commercial real estate

 

 

541

 

 

 

—

 

 

 

1,446

 

 

 

—

 

 

 

2,177

 

 

 

—

 

Commercial real estate - construction

 

 

367

 

 

 

—

 

 

 

488

 

 

 

—

 

 

 

48

 

 

 

—

 

Lease financing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Residential mortgage

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

14

 

 

 

—

 

Home equity

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

32

 

 

 

—

 

Consumer

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

4,460

 

 

$

—

 

 

$

1,794

 

 

$

—

 

 

$

68

 

 

$

—

 

Commercial real estate

 

 

5,003

 

 

 

26

 

 

 

4,012

 

 

 

389

 

 

 

3,807

 

 

 

164

 

Commercial real estate - construction

 

 

367

 

 

 

—

 

 

 

652

 

 

 

—

 

 

 

172

 

 

 

—

 

Lease financing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Residential mortgage

 

 

1,586

 

 

 

29

 

 

 

1,222

 

 

 

18

 

 

 

1,213

 

 

 

25

 

Home equity

 

 

102

 

 

 

—

 

 

 

218

 

 

 

6

 

 

 

107

 

 

 

—

 

 

Nonaccrual loans by loan portfolio class, including loans acquired with credit deterioration, as of December 31, 2018 and 2017 are summarized as follows:

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

2018

 

 

2017

 

Commercial and industrial

 

$

4,555

 

 

$

4,434

 

Commercial real estate

 

 

4,291

 

 

 

4,902

 

Commercial real estate - construction

 

 

367

 

 

 

487

 

Residential mortgage

 

 

1,502

 

 

 

492

 

Home equity

 

 

34

 

 

 

260

 

 

 

$

10,749

 

 

$

10,575

 

 

If nonaccrual loans and leases had been current in accordance with their original terms and had been outstanding throughout the period or since origination, if held for part of the period, Mid Penn would have recorded interest income on these loans of $536,000, $780,000, and $778,000, in the years ended December 31, 2018, 2017, and 2016, respectively.  Mid Penn has no commitments to lend additional funds to borrowers with impaired or nonaccrual loans.

The performance and credit quality of the loan portfolio is also monitored by the 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 December 31, 2018 and 2017 are summarized as follows:

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

 

30-59 Days Past Due

 

 

60-89 Days Past Due

 

 

Greater than 90 Days

 

 

Total Past Due

 

 

Current

 

 

Total Loans

 

 

Loans Receivable > 90 Days and Accruing

 

Commercial and industrial:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

17

 

 

$

—

 

 

$

4,527

 

 

$

4,544

 

 

$

281,946

 

 

$

286,490

 

 

$

—

 

Acquired with credit deterioration

 

 

23

 

 

 

5

 

 

 

—

 

 

 

28

 

 

 

—

 

 

 

28

 

 

 

—

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

685

 

 

 

—

 

 

 

458

 

 

 

1,143

 

 

 

858,663

 

 

 

859,806

 

 

 

—

 

Acquired with credit deterioration

 

 

29

 

 

 

—

 

 

 

1,534

 

 

 

1,563

 

 

 

—

 

 

 

1,563

 

 

 

—

 

Commercial real estate - construction:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate - construction

 

 

—

 

 

 

—

 

 

 

367

 

 

 

367

 

 

 

141,806

 

 

 

142,173

 

 

 

 

 

Lease financing:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease financing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

53

 

 

 

53

 

 

 

—

 

Residential mortgage:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage

 

 

461

 

 

 

-

 

 

 

277

 

 

 

738

 

 

 

251,597

 

 

 

252,335

 

 

 

—

 

Acquired with credit deterioration

 

 

19

 

 

 

57

 

 

 

913

 

 

 

989

 

 

 

219

 

 

 

1,208

 

 

 

—

 

Home equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home equity

 

 

166

 

 

 

22

 

 

 

25

 

 

 

213

 

 

 

69,879

 

 

 

70,092

 

 

 

—

 

Acquired with credit deterioration

 

 

—

 

 

 

—

 

 

 

4

 

 

 

4

 

 

 

—

 

 

 

4

 

 

 

—

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

57

 

 

5

 

 

 

—

 

 

62

 

 

 

10,253

 

 

 

10,315

 

 

 

—

 

Total

 

$

1,457

 

 

$

89

 

 

$

8,105

 

 

$

9,651

 

 

$

1,614,416

 

 

$

1,624,067

 

 

$

—

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

30-59 Days Past Due

 

 

60-89 Days Past Due

 

 

Greater than 90 Days

 

 

Total Past Due

 

 

Current

 

 

Total Loans

 

 

Loans Receivable > 90 Days and Accruing

 

Commercial and industrial:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

4,439

 

 

$

16

 

 

$

—

 

 

$

4,455

 

 

$

183,578

 

 

$

188,033

 

 

$

—

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

—

 

 

 

—

 

 

 

3,669

 

 

 

3,669

 

 

 

510,788

 

 

 

514,457

 

 

 

—

 

Acquired with credit deterioration

 

 

500

 

 

 

—

 

 

 

55

 

 

 

555

 

 

 

—

 

 

 

555

 

 

 

—

 

Commercial real estate - construction:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate - construction

 

 

—

 

 

 

—

 

 

 

487

 

 

 

487

 

 

 

61,849

 

 

 

62,336

 

 

 

—

 

Lease financing:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease financing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

229

 

 

 

229

 

 

 

—

 

Residential mortgage:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage

 

 

310

 

 

 

467

 

 

 

177

 

 

 

954

 

 

 

97,773

 

 

 

98,727

 

 

 

—

 

Acquired with credit deterioration

 

 

—

 

 

 

31

 

 

 

193

 

 

 

224

 

 

 

82

 

 

 

306

 

 

 

—

 

Home equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home equity

 

 

54

 

 

 

98

 

 

 

250

 

 

 

402

 

 

 

41,491

 

 

 

41,893

 

 

 

—

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

3

 

 

 

—

 

 

 

—

 

 

 

3

 

 

 

3,865

 

 

 

3,868

 

 

 

—

 

Total

 

$

5,306

 

 

$

612

 

 

$

4,831

 

 

$

10,749

 

 

$

899,655

 

 

$

910,404

 

 

$

-

 

 

Activity in the allowance for loan and lease losses for the years ended December 31, 2018, 2017, and 2016, and the recorded investment in loans receivable as of December 31, 2018, 2017, and 2016 are as follows:

 

(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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

1,795

 

 

$

4,435

 

 

$

178

 

 

$

—

 

 

$

428

 

 

$

423

 

 

$

3

 

 

$

344

 

 

$

7,606

 

Charge-offs

 

 

(142

)

 

 

(64

)

 

 

(40

)

 

 

—

 

 

 

(60

)

 

 

(185

)

 

 

(37

)

 

 

—

 

 

 

(528

)

Recoveries

 

 

1

 

 

 

808

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1

 

 

 

9

 

 

 

—

 

 

 

819

 

Provisions

 

 

737

 

 

 

(476

)

 

 

(63

)

 

 

—

 

 

 

85

 

 

 

289

 

 

 

32

 

 

 

(104

)

 

 

500

 

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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

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

 

$

1,580

 

 

$

4,323

 

 

$

144

 

 

$

1

 

 

$

541

 

 

$

379

 

 

$

3

 

 

$

212

 

 

$

7,183

 

Charge-offs

 

 

(25

)

 

 

(322

)

 

 

—

 

 

 

—

 

 

 

(102

)

 

 

(20

)

 

 

(28

)

 

 

—

 

 

 

(497

)

Recoveries

 

 

26

 

 

 

553

 

 

 

—

 

 

 

—

 

 

 

4

 

 

 

5

 

 

 

7

 

 

 

—

 

 

 

595

 

Provisions

 

 

214

 

 

 

(119

)

 

 

34

 

 

 

(1

)

 

 

(15

)

 

 

59

 

 

 

21

 

 

 

132

 

 

 

325

 

Ending balance

 

 

1,795

 

 

 

4,435

 

 

 

178

 

 

 

—

 

 

 

428

 

 

 

423

 

 

 

3

 

 

 

344

 

 

 

7,606

 

Ending balance:

   individually

   evaluated for

   impairment

 

 

136

 

 

 

293

 

 

 

100

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

529

 

Ending balance:

   collectively

   evaluated for

   impairment

 

$

1,659

 

 

$

4,142

 

 

$

78

 

 

$

—

 

 

$

428

 

 

$

423

 

 

$

3

 

 

$

344

 

 

$

7,077

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance

 

$

188,033

 

 

$

515,012

 

 

$

62,336

 

 

$

229

 

 

$

99,033

 

 

$

41,893

 

 

$

3,868

 

 

$

—

 

 

$

910,404

 

Ending balance:

   individually

   evaluated for

   impairment

 

 

4,434

 

 

 

4,847

 

 

 

487

 

 

 

—

 

 

 

760

 

 

 

260

 

 

 

—

 

 

 

—

 

 

 

10,788

 

Ending balance:

   acquired with

   credit

   deterioration

 

 

—

 

 

 

555

 

 

 

—

 

 

 

—

 

 

 

306

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

861

 

Ending balance:

   collectively

   evaluated for

   impairment

 

$

183,599

 

 

$

509,610

 

 

$

61,849

 

 

$

229

 

 

$

97,967

 

 

$

41,633

 

 

$

3,868

 

 

$

—

 

 

$

898,755

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2016

 

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

 

$

1,393

 

 

$

3,552

 

 

$

153

 

 

$

1

 

 

$

534

 

 

$

317

 

 

$

12

 

 

$

206

 

 

$

6,168

 

Charge-offs

 

 

(820

)

 

 

(216

)

 

 

—

 

 

 

—

 

 

 

(4

)

 

 

(25

)

 

 

(42

)

 

 

—

 

 

 

(1,107

)

Recoveries

 

 

4

 

 

 

211

 

 

 

—

 

 

 

—

 

 

 

26

 

 

 

—

 

 

 

11

 

 

 

—

 

 

 

252

 

Provisions

 

 

1,003

 

 

 

776

 

 

 

(9

)

 

 

—

 

 

 

(15

)

 

 

87

 

 

 

22

 

 

 

6

 

 

 

1,870

 

Ending balance

 

 

1,580

 

 

 

4,323

 

 

 

144

 

 

 

1

 

 

 

541

 

 

 

379

 

 

 

3

 

 

 

212

 

 

 

7,183

 

Ending balance:

   individually

   evaluated for

   impairment

 

 

6

 

 

 

711

 

 

 

72

 

 

 

—

 

 

 

68

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

858

 

Ending balance:

   collectively

   evaluated for

   impairment

 

$

1,574

 

 

$

3,612

 

 

$

72

 

 

$

1

 

 

$

473

 

 

$

378

 

 

$

3

 

 

$

212

 

 

$

6,325

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance

 

$

172,518

 

 

$

446,524

 

 

$

54,376

 

 

$

425

 

 

$

99,457

 

 

$

37,608

 

 

$

3,016

 

 

$

—

 

 

$

813,924

 

Ending balance:

   individually

   evaluated for

   impairment

 

 

60

 

 

 

3,246

 

 

 

860

 

 

 

—

 

 

 

916

 

 

 

140

 

 

 

—

 

 

 

—

 

 

 

5,222

 

Ending balance:

   acquired with

   credit

   deterioration

 

 

—

 

 

 

842

 

 

 

—

 

 

 

—

 

 

 

389

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,231

 

Ending balance:

   collectively

   evaluated for

   impairment

 

$

172,458

 

 

$

442,436

 

 

$

53,516

 

 

$

425

 

 

$

98,152

 

 

$

37,468

 

 

$

3,016

 

 

$

—

 

 

$

807,471

 

 

 


The recorded investments in troubled debt restructured loans at December 31, 2018 and 2017 are as follows:

 

(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

 

 

(Dollars in thousands)

Pre-Modification

 

 

Post-Modification

 

 

 

 

December 31, 2017

Outstanding Recorded

Investment

 

 

Outstanding Recorded

Investment

 

 

Recorded Investment

 

Commercial and industrial

$

4,110

 

 

$

4,460

 

 

$

4,434

 

Commercial real estate

 

5,735

 

 

 

5,581

 

 

 

4,593

 

Residential mortgage

 

677

 

 

 

675

 

 

 

540

 

Home equity

 

14

 

 

 

14

 

 

 

4

 

 

$

10,536

 

 

$

10,730

 

 

$

9,571

 

 

Mid Penn’s troubled debt restructured loans at December 31, 2018 totaled $7,020,000, and included four loans totaling $517,000 representing 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.  The remaining $6,503,000 of troubled debt restructurings was 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.  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.  

 

At December 31, 2017, Mid Penn’s troubled debt restructured loans totaled $9,571,000, and included four loans totaling $544,000 representing accruing impaired loans in compliance with the terms of the modification, with three loans being accruing impaired residential mortgages to unrelated borrowers totaling $540,000, and one loan being an accruing impaired home equity loan of $4,000.  The remaining $9,027,000 of troubled debt restructured loans is attributable to fifteen loans among seven 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 $7,284,000 of the $9,027,000 in nonaccrual impaired troubled debt restructured loans.  As of December 31, 2017, there was $66,000 of charge-offs associated with troubled debt restructured loans while under a forbearance agreement.  As of December 31, 2017, 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 2017.  

Mid Penn entered into forbearance agreements on all loans currently classified as troubled debt restructurings and all of these agreements have resulted in additional principal repayment.  The terms of these forbearance agreements vary whereby principal payments have been decreased, interest rates have been reduced and/or the loan will be repaid as collateral is sold.

There was one loan modified in 2018, ten loans modified in 2017, and three loans modified in 2016 that resulted in troubled debt restructurings.  The following table summarizes the loans whose terms have been modified resulting in troubled debt restructurings during the years ended December 31, 2018, 2017, and 2016.

(Dollars in thousands)

 

 

 

Pre-Modification

 

 

Post-Modification

 

 

 

 

December 31, 2018

 

Number of Contracts

 

Outstanding Recorded Investment

 

 

Outstanding Recorded Investment

 

 

Recorded Investment

 

Commercial real estate

 

1

 

$

270

 

 

$

270

 

 

$

266

 

 

 

1

 

$

270

 

 

$

270

 

 

$

266

 

 

(Dollars in thousands)

 

 

 

Pre-Modification

 

 

Post-Modification

 

 

 

 

December 31, 2017

 

Number of Contracts

 

Outstanding Recorded Investment

 

 

Outstanding Recorded Investment

 

 

Recorded Investment

 

Commercial and industrial

 

1

 

$

4,110

 

 

$

4,460

 

 

$

4,434

 

Commercial real estate

 

9

 

 

3,212

 

 

 

3,150

 

 

 

3,140

 

 

 

10

 

$

7,322

 

 

$

7,610

 

 

$

7,574

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

Pre-Modification

 

 

Post-Modification

 

 

 

 

December 31, 2016

 

Number of Contracts

 

Outstanding Recorded Investment

 

 

Outstanding Recorded Investment

 

 

Recorded Investment

 

Commercial and industrial

 

2

 

$

934

 

 

$

914

 

 

$

914

 

Residential mortgage

 

1

 

 

68

 

 

 

68

 

 

 

68

 

 

 

3

 

$

1,002

 

 

$

982

 

 

$

982

 

 

The following table provides activity for the accretable yield of purchased impaired loans for the year ended December 31, 2018.

 

(Dollars in thousands)

 

 

 

 

 

 

 

Accretable yield, January 1, 2018

 

$

67

 

Acquisition of impaired loans

 

$

430

 

Accretable yield amortized to interest income

 

 

(188

)

Accretable yield, December 31, 2018

 

$

309

 

 

 

 

The Bank has granted loans to certain of its executive officers, directors, and their related interests.  The aggregate amount of these loans was $17,843,000 and $15,163,000 at December 31, 2018 and 2017, respectively.   During 2018, $6,458,000 of new loans and advances were extended, $582,000 of loans were assumed from First Priority as a result of the addition of new directors, and repayments totaled $4,360,000.  None of these loans were past due, in nonaccrual status, or restructured at December 31, 2018.